Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.
Once the organization has decided that it needs additional or replacement employees, it is faced with the decision of where to generate the applications from. Most organizations have to use both internal and external sources for generating a sufficient number of applicants.
The organization can look to internal company sources and, if necessary, to sources external to the company. The organization’s choice of a particular method of external recruitment to effectively “get its message across” to external candidates, can make all the difference to the success of recruiting efforts.
The advantages of recruiting outside the organization must be weighed against the advantages of recruiting inside the organization.
The methods of recruitment are divided into the following categories:- 1. Internal Recruitment and 2. External Recruitment. These are further sub-divided into-
A: Some of the methods of internal recruitment are: 1. Promotion and Transfer 2. Personnel Records and Skills Banks 3. Job Posting and Bidding 4. Informal Methods 5. Inside Moonlighting 6. Employee Referral.
B: Some of the methods of external recruitment are:- 1. Professional or Trade Associations 2. Employee Databases 3. Media Advertisements 4. Employment Agencies 5. Executive Search Firms (Head Hunters) 6. Campus Recruiting and 7. E-Recruiting.
Additionally, learn about few other recruitment methods such as:- I. Summer Internships II. Special-Events Recruiting and 3. Direct Mail Campaign.
What are the Methods of Recruitment: Internal and External Recruitment Methods
What are the Methods of Recruitment – 2 Important Methods: Internal Recruitment and External Recruitment
Once the organization has decided that it needs additional or replacement employees, it is faced with the decision of where to generate the applications from. Most organizations have to use both internal and external sources for generating a sufficient number of applicants. The organization can look to internal company sources and, if necessary, to sources external to the company.
The organization’s choice of a particular method of external recruitment to effectively “get its message across” to external candidates, can make all the difference to the success of recruiting efforts. The advantages of recruiting outside the organization must be weighed against the advantages of recruiting inside the organization.
The Various Types of Internal and External Recruitment:
Method # A. Internal Recruitment:
Although recruiting often brings to mind employment agencies and classified ads, current employees are often the largest sources of recruits. Internal recruitment involves generating active, voluntary participation of current employees. It is a process designed to create sufficient interest among current employees to cause them to formally indicate an interest in a given position.
The positions applied for may represent promotions, transfers, and perhaps demotion. It is different from internal staffing which involves the actual selection of employees for promotions, transfers, demotions, and lay-offs made without the active and voluntary participation of current employees.
Following is a discussion of various internal recruitment methods:
(1) Personnel Records and Skills Banks:
Examining personnel records may uncover employees who are working in jobs below their educational or skills level. It may also reveal persons who have potential for further training or those who already have the right background for the open jobs in question.
Organizations can also effectively use skills inventories for identifying internal applicants for job vacancies. Computerized systems can help to ensure that qualified internal candidates are identified and considered for the opening.
(2) Job Posting and Bidding:
Since HR managers may not be aware of all current employees who might be interested in the vacancy, the organization may use an approach called job posting and bidding. This is the most common method of generating a pool of internal applicants.
It requires that management post or otherwise circulates and notifies listings of available job openings and let the current employees bid for the same, should they be interested. While job posting is often a requirement in unionized firms, managerial jobs are not covered which, therefore, may not be posted.
Employees must feel that positions will be given to those best qualified, and that their interest in the position will not compromise their relationships, status, or future in their current jobs. It is clear to employees that not everyone who indicates an interest in another position will be placed in it. Job postings allow employees to evaluate job opportunities relative to their skills, attributes, experience, interests and career objectives.
In the past, job posting was little more than the use of bulletin boards, and company publications for advertising job openings. However, today, it has become one of the more innovative recruiting techniques being used by organizations. It is now seen by many companies as an integrated component of an effective career management system.
At National Semiconductor, reports Milan Moravec (1990), job postings are computerized and easily accessible to employees. Computer software allows the employees to match an available job with their skills and experience. It, then, highlights where gaps exists so the employees know what is necessary if they wish to be competitive for a given job.
(3) Informal Methods:
Job posting is a formalized process of advertising available positions to employees and a means by which employees can express an interest in being considered for those positions. There are many organizations that have not formalized that process. For example, the grapevine may provide information about anticipated openings within the firm.
An indication of interest by an employee through the use of ‘important’ channels may result in his or her screening that position. Unfortunately, the less formalized the process, the more likely that organizational politics and issues other than employee qualifications will decide who receives a particular position.
For a short – term labour shortage or for a limited amount of additional work, the organization can use inside moonlighting. While overtime procedures are well-established for those on time payrolls, bonus could be offered to people not on a time payroll.
However, promotion from within can sometimes backfire. Employees who apply for jobs and don’t get them may become discontented. Informing unsuccessful applicants as to why they were rejected and what actions they might take to be more successful in the future is, thus, essential.
Also, groups may not be satisfied when their new boss is appointed from within their own ranks and sometimes, it is also difficult for the newly chosen leader to shake off the reputation of being “one of the gang”.
The decision to recruit internally can, thus, cause much debate. While, promoting from within policy can serve as an effective reward, points out Schuler and Jackson (1989), it also commits a firm to providing training and career development opportunities if the promoted employees are to perform well, and are truly competitive for positions and do not perceive internal recruitment for higher level positions as – ‘mere talk’ on the part of the management.
Method # 2. External Recruitment:
When an organization has exhausted its internal supply of applicants, it must turn to external sources to supplement its workforce. As the human resource shortages of the 1990s increase, organizations are becoming more proactive in their recruitment efforts.
A number of methods are available for external recruiting. There is no single combination of resources and methods that will work well for all organizations, or for that matter, across all types of jobs and labour market, or even within a labour market. Research and experience indicates that there are particular methods that are more effective for some types of jobs and potential applicants than for others.
A survey reported that the top three sources for professional hires were employee referrals (27.8%), advertising (25%), and employment agencies (22.5%). The top three sources for management hires were employee referrals (57%), executive search (19.6%), and advertising (15%).
Nevertheless, Hodes (1983), advises that employers must keep four questions in mind- What are the recruitment goals? Who are the people we want to reach? What message do we want them to receive? How can the message best be delivered?
This methods of external recruitment are:
(1) Professional or Trade Associations:
Many associations provide placement services for their members. These services may consist of compiling listings of job – hunting members and their qualifications, and providing access to members during regional or national conventions. Many associations also publish trade journals or magazines for their membership.
These publications often carry classified advertisements from employers interested in recruiting their members, along with articles of interest for its membership. Accountants, engineers, and many other professionals have such associations and publications. Professional or trade associations are especially useful for attracting highly educated, experienced, or skilled individuals.
(2) Employee Databases:
Employers are increasingly turning to computerized resume registries to identify candidates. Today, there is a dramatic increase in the number of firms selling resume databases. The reason – organizations can quickly and efficiently gain access to national samples of prospective applicants by using these databases.
Organizations maintaining resume databases are not an employment agency, but rather a company that compiles a data base of resumes from people who are looking for jobs. That database is then available on – line to all businesses, service organizations, and government agencies that subscribe to the company’s large computerized information network.
Any employer can have access to the database of resumes, with or without subscribing to the company’s database, at a cost. The company requires the job-seekers to fill out data entry forms covering items such as name, address, career objectives, work experience, type of position desired, location and educational background. Candidates can also specify preference for geographic areas.
Along with the “personal summary of qualifications” the form presents a fairly complete picture of each candidate’s qualifications, occupational preferences, and desired salary range. This data/resume for each job – seeker is entered into the company’s database for a fixed registration fee to be paid by the job seeker. The amount of registration fee frequently is determined by the salary level desired by the job – seeker.
However, some companies do not charge any fee from the job-seekers for including their names in the database. Resumes of each job seeker remain in the database for 6 months, and are available to employers 24 hours a day, seven days a week.
Employers who access the data can customize their search based on the skills and experience required as well as preferred geographic areas. Employers pay no subscriptions fee – just the cost of being on-line plus a print charge.
Some agencies may charge the employers a fixed amount for each name (or candidate) shortlisted by the employer from the database. This, in short, is the way most computer database firms operate, though, some variations are quite possible.
However, depending upon who owns the database and how much public access there is to it, the resume databases can be classified into five different categories:
i. Databases maintained by executive search firms
ii. Those maintained by university alumni groups
iii. Those owned by private employment agencies
iv. Corporate job banks
v. Databases open to the general public.
A resume database operated by either an executive search firm or a private employment agency can only be used by clients.
(3) Media Advertisements:
Organizations advertise to acquire recruits. Various media – both print media and audio-visual, are used, the most common of which are the daily newspaper help-wanted ads. Organizations routinely advertise in daily newspapers, several unskilled, semi-skilled, clerical, administrative, and entry-level managerial job openings.
There are several reasons why employers use newspaper advertisements. Job openings can be announced quickly appearing in the newspaper within 1 or 2 days. They are fairly inexpensive when compared with other methods, and more than one position can be included in the same advertisement.
These also have the advantage of reaching many people in a short period of time and depending upon the newspaper; can reach a very representative sample of job candidates. Further, newspaper advertisements offer flexibility to employers, who may specify that applicants apply for the position in person, send their resume and salary requirements through mail, or telephone or personally drop in the personnel office during prescribed hours on certain days.
There is now a trend towards special recruitment editions of newspapers, for example, the Ascent in the Times of India. The particular weekday of their insertion in the national daily is usually based on research of readership habits of the target audience. Placing help wanted ads in papers like the Times of India or Hindustan Times can be good sources of middle or senior management personnel.
These national dailies have several regional editions so that either the entire country or the appropriate geographic area can be targeted for coverage. Organizations may choose to advertise a position without identifying themselves. These advertisements, called Blind Advertisements, usually request interested applicants to send a letter or resume to a post office box.
These advertisements are useful when the organization does not want to be found recruiting in particular geographical areas (example, because of as yet unannounced expansion plans), or when the name of the firm may provide information to applicants, that the firm does not want them to have (when, for example, the firm has a bad reputation), or to prevent current employees from seeing particular job openings or becoming aware of their company’s recruitment plans.
The selection of the best medium-be it the local paper, national daily, business periodical, or a technical journal – depends on the type of positions for which the organization is recruiting. The local newspaper is usually the best source of blue – collar help, clerical employees, and lower -level administrative employees.
For specialized employees, companies can advertise in trade and professional journals such as using a computer engineering magazine to reach computer engineers or using HRM magazines like ‘Human Capital’ to reach HR professionals. Business magazines like ‘business Today’, ‘Business World’, etc., are used for placing ads for management professionals.
One drawback to periodical advertising is the long lead time that is usually required; there may be a month or more between insertion of the ad and publication of the journal or specialized magazine. Yet, ads remain good sources.
Other media, like, Radio and Television are also being used for recruitment advertising. Moreover, they are becoming more sophisticated and focus on the type of candidate required for the job as well as give information about the recruiting organization.
The ‘Top job show’ on doordarshan is a living example of the transformation that has occurred in the nature and content of ads, since the time when the weekly ‘Rozgar Samachar’ was conceptualized and broadcast.
(4) Employment Agencies:
There are two types of employment agencies:
i. Those operated by the government
ii. Privately owned agencies.
Public employment agencies exist in the form of Employment Exchanges in India. The Compulsory Notification of Vacancies Act of 1959 requires all public sector and government owned firms to notify all vacancies in the employment exchanges. These exchanges register the job seekers and help in their placement in notified vacancies.
They, thus, help both the job seekers (to find suitable employment) and employers (find suitable workers), by forwarding the names of eligible candidates to the organization, when there is a vacancy.
However, the public employment agencies are dogged by poor image. Employers sometimes claim that the quality of candidates employed through these agencies is not up to the standards. Even the applicants believe that these get them jobs that are not very prestigious.
Further, most mid-level or higher managerial or professional job openings are unlikely to be filled through these agencies. Yet, these are an excellent source of blue – collar and hourly workers.
Private employment agencies can serve as an excellent source of qualified applicants for a wide range of job openings. These agencies typically specialize in the skill level or profession of the applicants that they provide, and they charge fees to either the applicant or the organization for successful placements.
Such fees vary from established fixed fees to percentages of the successful applicant’s yearly salary. Whether the employer, or the candidate, pays the fee is usually determined by market conditions, although the trend in the last few years has been toward “fee-paid jobs”. Here the employer and not the candidate pays the fees.
Many private agencies now offer or specialize in temporary help service and provide secretarial, clerical, or other skilled labour on a per diem basis. These agencies can be useful in helping the organization cope with peak loads and fill in for vacationing employees.
A good employment agency can save the personnel office valuable time by screening out unqualified applicants and locating qualified ones. Effective agencies may actually save the organization money by reducing recruitment and selection costs.
An organization should rely on only two or three competent agencies. This will ensure that the agency will work harder to retain repeat business than it will to fill just one immediate opening. Repeated contacts will help the agency acquire a better understanding of the company and its requirements.
Though, a main advantage of an employment agency is that it pre – screens applicants for the job, but this advantage can also backfire. The agency may allow poor applicants to pass through the screening and may block good applicants from entering the organizations’ applicant pool.
Human resource managers should limit the applicants they allow an agency to send to four or five; this will keep them from being flooded with marginal applicants who probably could have been located without the agency. When limited to only 4 or 5 applicants, the agency will do a better job of screening and will send only the people who have the best opportunity to be hired.
(5) Executive Search Firms (Head Hunters):
The executive recruitment agencies direct their efforts toward finding high – level managerial and professional talent for organizations. They also provide a more complete range of services to their client organization. The search firms attempt to find the person who best suits the requirements of the organizations and will adjust best.
Their fees are rather high (equal to one month’s salary of the successful applicant or sometimes as much as 30 percent of a year’s salary of the successful applicant). But, they provide a specialized service that may require personnel skills not available in the organizations’ own personnel department.
Further, the best talent is already employed. To the extent that this is true, executive search firms may provide high quality talent by luring away employees from other organizations. Because of this, these firms are called “Headhunters”.
The term “Headhunters” refers to the tribe that beheaded its enemies and kept their heads as trophies. Now, it symbolises a method of recruiting for top – level positions through informal channels or personal contacts. Normally the firm is asked to get a person for the client organization at any cost.
Some unethical practices have crept into the functioning of executive search firms. Frequently, they provide a top – management executive (for a high fees, of course!) to a client organization. Within a few months, the same search firm ‘poaches’ the executive it placed earlier. This executive is then placed in another client organization, again for a high commission.
To top it all, there is a repeat business waiting for the search firm at the earlier organization. In order to prevent such practices, the executive search firms now undertake to provide a “free replacement” if the executive they placed in an organization leaves within a period of six months.
The employment agencies and executive search firms, though similar in purpose, differ in many important ways. Executive search firms concentrate their efforts on higher – level managerial positions, while private agencies deal primarily with middle – management level or below. Most search firms are on retainer, which means the organization pays them a fee whether or not their efforts are successful.
In contrast, agencies are usually paid only when they have actually provided a new hire. Moreover, search firms usually charge higher fees for their services, and are paid by the organization, mainly because they maintain the confidentiality of both the recruiting organization and the person being recruited, during their recruiting efforts.
(6) Campus Recruiting:
Many entry – level professional and managerial jobs require a college degree. Perhaps the best source of college graduates is the college campus. Campus recruiting began to increase substantially in the mid -1980s, and in the 1990s, it has reached aggressive proportions.
Unfortunately for the organization, college recruiting can be extremely difficult, time consuming, and expensive. But pressures from the external environment will continue to force organizations to be highly visible and active in this kind of recruiting.
In college recruiting, the organization sends an employee (recruiter), or a team (recruiting team), to a campus to interview candidates and describe the organization to them. They act as the organizations representatives to individuals (who typically may have no first-hand knowledge of the firm), as well as a first – level screening agent for the organization.
Coinciding with the recruiters visit, brochures and other company literature are often distributed to students. The organization may also run ads to attract students or conduct seminars often called pre-placement talks (PPTs), at which company executives talk about various facets of the organization. As recruiters, they must present a favourable, yet realistic view of the organization they represent.
In the typical procedure, the students seeking placement, register at the college placement service. During the recruiting season, candidates are advised of scheduled visits through student newspapers, mailings, bulletin boards, etc. The placement cell also prepares a brochure detailing the background and specialization of all students seeking employment.
This brochure is circulated to organizations to enable them, not only to target a particular campus, but also to screen and shortlist potential candidates. Further, the placement service, reserves preliminary interviews with employers the candidates want to see. The candidates are given brochures and other literature about the firms.
Usually, at this time, the candidates fill up a preliminary application form for each organization they may be interested in. After the preliminary interview, there may follow a final interview and a placement offer at the campus itself. However, after the preliminary interview, and before leaving the campus, the recruiter may invite the chosen candidate to make a site visit at a later date for a final interview.
Students invited to the site are given more job information and meet appropriate potential supervisors and other executives. The organization bears all expenses. If the organization wants to hire an individual, he or she is given an offer prior to leaving the site or shortly thereafter by mail or phone.
There are several things that attract college students when selecting companies for interviews. Among the most important are the company’s reputation, advancement and learning opportunities offered, and the company’s overall potential for growth.
In one of the surveys, it was found that the most important inducements for students from premier business schools for opting for a particular company on campus, were; career growth, cross – functional exposure, perceived status of potential employer and value addition on the job. Remuneration was only one of the factors, not; the factor.
Despite lower remuneration, companies like HLL and ICICI Securities, got day one at all campuses in 1995. Therefore, campus recruitment materials should emphasize these factors. Since college students rely heavily upon the campus recruiter, company brochures, and campus placement office for information about the company, it is important that the company recruiters should be carefully chosen by the organization.
Good recruiters convey an image and appearance that reflects favourably on the organization. They should possess good interpersonal skills.
Recruiters should be very familiar with the company they represent for two reasons:
i. Applicants want to discuss opportunities with someone they perceive to be knowledgeable about the company
ii. Recruiters need to be able to determine whether the applicant will fit into the value system of the organization
Hence, the practice of sending recent graduates back to their respective campuses often works to the disadvantage of the employer. Such graduates are seldom well enough informed to act as representatives of and information agents for organizations that they themselves have just joined.
Neither are they sufficiently skilled to objectively evaluate the qualifications of peer group applicants. Research has shown that college graduate applicants prefer well – informed, objective, well – mannered, and sincerely interested interviewers.
As with other forms of recruiting, organizations are becoming more creative in their use of colleges and universities. There is now a new level of sophistication in campus recruiting. Employers now prefer to pre-screen the students themselves, rather than depend on selection from the campus placement office’s resume book.
Pre-screening programmes are designed to identify the top students. Professors play a critical role in identifying such students and their recommendations are used by the organizations to identify top students, often as juniors (in the first year itself).
Many changes are designed to reduce the overall recruiting costs while maintaining a strong applicant flow into the organization. The trend is for an organization to develop a stronger, on -going relationship with a relatively select number of schools.
Rather than visiting several campuses, organizations now prefer to restrict their visits to, say 20 odd schools with which they have had more successful recruiting experiences in the past. Organizations select those campuses where the number of job acceptances have been high, the cost per hire and the turnover of recently appointed graduates have been low.
In return for the schools co-operation, the organization may, assist with career – related activities throughout the year. The organization may, thus, sponsor career days, provide speakers for special events and seminars provide funds for research activities in the campus; and invite professors to lecture their executives.
Citibank in New York, for example, hires professors to teach specific programmes. Texas Instruments encourages company executives to teach at the University level, thereby identifying top students on the basis of first-hand experience.
Companies are also refining their recruitment brochures, to emphasize quality of life factors and cost of living, as well as job related information. PPTs have gone hi-tech, using audio-visuals. Some organizations commission media agencies for designing their company presentations.
Recruitment videos have been effectively used by employers who want to emphasize the quality of their work environment or community. Organizations are also luring students by distributing free gifts, or snacks on campus!
Here, one cannot help mentioning the college recruiting as it exists in Japan. Japanese employers usually rely very heavily on University recruitment programmes for identifying and attracting managerial talent. As a result, the amount of money that Japanese firms spend on college recruiting is more pronounced than ever.
According to an estimate, Japanese employers spend up to 13 months and in excess of $ 50,000 to attract a single university graduate. Japanese firms worsen matters by being unwilling to experiment with alternative sources of executive talent.
Other Recruitment Methods:
Employers are responding to the competition for human resources with a number of non-traditional recruitment strategies, including:
a. Summer Internships:
Some organizations hire students during the summer as interns, especially the engineering and management students. Such programmes serve several purposes. They allow organizations to get specific project done, expose themselves to talented potential employees who may become their “recruiters” at school, and provide trial-run employment to determine if they want to hire particular people full-time. This results in pre- placement offers (PPOs) to interns during campus recruiting.
For the student, an internship can mean real work experience, a possible future job, and a chance to use ones talents in a realistic environment. However, a major problem with such programmes is that students come to the organization expecting everything to be perfect at work.
When it is not, they get negative impressions about the organization they have worked for, assuming that it is less well-organized than others in the field. Such disillusioned students become reverse recruiters. This effect has caused some organizations to drop the programme.
b. Special – Events Recruiting:
When the supply of employees available is not large or when the organization is new or not well-known; some organizations have successfully used special events to attract potential employees.
They may stage open houses, provide literature and schedule headquarter visits. To attract professionals, organizations may have hospitality suites at professional meetings. Executives may make speeches at association meetings or schools to get the organization’s image across.
A group of firms often get together and organize job fairs, an exhibition at which each has a booth to publicize jobs available. This technique is especially useful for smaller, less-well known employers. Some experts claim recruiting costs have been cut 80% using these methods. They may be scheduled on holidays, to reach college students as well as those presently employed, so they have a chance to look around.
c. Direct Mail Campaign:
This is the most personalized form of recruitment advertising. For mid – and top – level management jobs, the best candidates may not respond to newspaper or trade journal ads, because, those candidates are not actively seeking jobs. This technique is used to lure professionals who are employed but willing to consider a job with greater opportunities.
These are those professionals who are successful in their current jobs, who are not actively looking in the market and, thus not responding to conventional ads, and who would be motivated by a new and greater challenge. Direct mail campaign enables a recruiter to get the attention of desirable candidates and gives the employer an advantage over other employers looking for some prospects.
The procedure requires obtaining a target mailing list and then developing a mail package. The mail package usually has an attractive outer envelope, contains a company brochure and a response card requesting a mini-resume. The response card facilitates immediate response from individuals who are unlikely to have current resumes.
The representative of the recruiting organization telephones each respondent quickly to keep interest high. Researches show that a successful direct mail campaign has a high response rate, low cost – per – hire for executive positions, and the filling of all open positions with highly qualified candidates.
What are the Methods of Recruitment – 4 Types of Methods: Internal, Direct, Indirect and Third Party Methods (With Pros and Cons)
Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.
Recruitment is the process through which the organization seeks applicants for potential employment.
The term recruitment may be defined as the process to discover sources of manpower to meet the requirements or the staffing schedule and to employ effective measures for attracting that manpower in adequate number to facilitate the selection of an efficient working force.
Thus, recruitment is a process of attracting job seekers with appropriate qualifications who are capable of meeting the organizational staffing needs and are likely to achieve the business goals. They should be recruited in sufficient numbers on a timely basis. The recruitment process is followed by selection, induction, and placement.
The methods of recruitment can be divided into four types as described below:
The internal methods are promotion and transfer, job posting, inside moonlighting and employee referrals.
I. Promotion and Transfer:
About 80% of organizations in India Inc. fill their vacancies through promotion and transfer. Promotion is the movement of the employee to a higher position backed by increased status, responsibility and salary. Companies like Tata, Birla, and Hindustan Lever etc. follow a first track promotion system. They promote star performers quickly and give them ample scope for vertical growth.
Transfer is the movement of employee from one position to other backed by same position and changes in duties but not necessarily salary. In Reliance Communications, there is no salary hike for internal transfer.
Pros and Cons of Promotion and Transfer:
i. This method gives scope to employees to groom their career with the same organization without looking greener pasture outside the organization.
ii. It motivates the internal employees. They become more sincere and committed.
iii. This method is reliable as the organization knows all the internal candidates.
i. This method doesn’t allow entry of new blood and ideas into the organization.
ii. Sometimes employees may lack seriousness due to lack of competition.
iii. This method limits the choice of the organization with respect to candidates.
It is one of the most important internal methods of recruitment. Organizations publicize job openings on bulletin boards and electronic media (company intranet). Employees visit the site and if they fulfill the requirement, then they apply. Many companies now see job posting as an integrated component of an effective career management system.
Many companies like Hindustan Unilever Limited, Reliance Communications, Tata, Citibank, and Wipro Technology rigorously follow this method and allow the employees to apply for different jobs.
Pros and Cons of Job Posting:
i. It offers chances to employees to groom their career inside the organization without going here and there.
ii. It makes the recruitment system open and transparent.
i. It creates problem if the most successful candidate is not selected.
ii. It demands trust between higher management, HR department and the candidate. If the trust is not maintained then employees react violently.
III. Inside Moonlighting:
This method is used if there is a short term shortage and the organization does not require great number of workforce. Organization may offer some bonuses to employees interested to do a second job.
IV. Employee Referrals:
Today the corporate world believes that their employees are the best brand ambassadors who could attract the right talent to the organization. This belief is the major reason why many firms consider employee referral as a major tool for recruitment. All jobs that open with are put up on an internal portal dedicated to the referral programme.
Employees are encouraged to refer their relatives, friends and former colleagues to these jobs and discuss the opportunity and environment with the prospective candidates. In Ness Technology (the global IT services provider), India the employees upload the CVs of their referrals on the portal. The recruitment team takes over from there and manages the rest of the process.
Organizations take initiatives to reward their employees who refer someone to the organization. It is called finders fees. The reward may be both tangible and intangible. In Collabera, fast growing IT services organization, the referring employee is being recognized in the organization’s annual and quarterly recognition programme and other employee recognition initiatives.
In Ramco Systems, existing employees are offered cash and non-cash incentives and bonuses for referring their friends/contacts/acquaintances for openings within the company. For each referral by an employee that results in the selection of the referred candidate, a cash incentive of Rs.15000/- is paid.
When the total number of references in a quarter crosses five/ten/fifteen, the referring employee gets added cash incentives, a letter of recognition from the COO and a laptop. Citibank for example offers Rs.50,000 to its employees for every vacancy filled up by the bank on the basis of their referral. To make the system effective the firm should properly check the quality of the interviewee before taking final decision regarding someone.
Pros and Cons of Employee Referrals:
i. Recommender gives a realistic job preview. Hence the applicant can check the strengths and weaknesses before applying for the job.
ii. Taking their prestige, integrity and credibility into consideration the recommenders recommend qualified persons.
iii. The recommender earns reward which motivates him.
iv. The method is quick, effective and inexpensive.
i. Sometimes the recommender forgets his/her integrity and becomes biased towards his/her relatives and friends even if they are not qualified.
ii. Sometimes in the process of providing information the recommender may reveal the secret of the organization before his/her relatives and friends, which is harmful for the organization.
2. Direct Methods:
This method involves visiting and participating in college campuses and their placement centers. The recruiters visit reputed educational institutions such as Indian Institute of Technologies (IITs), Indian Institute of Managements (IIMs), National Institute of Technologies (NITs) and other reputed engineering colleges and business schools in order to pick up job aspirants having requisite qualification and skills.
The recruiters conduct pre placement talk in the campuses and let the students know detail about the jobs. They give a realistic job preview. A preliminary screening is done within the campus and the shortlisted students are then subjected to the remainder of selection process. Many reputed organizations like AT & T, Infosys, Tata, RIL, RCOM, Cognizant, Accenture, TCS, SBI, ICICI Bank, AXIS Bank visit reputed institutions for hiring candidates.
To hire the best the companies use various tools like group discussions, case study presentations, aptitude tests, personality tests, interviews etc.
In India in the year 2011, the top ten campus recruiters are ICICI Bank, Infosys, Deloitte, Proctor & Gamble, Cognizant, Accenture, Wipro, Yes Bank, JP Morgan, IBM and Axis Bank. Cognizant emerged as the top recruiter in 2013. While companies such as Infosys, IBM, HCL and Yes Bank were missing in top 10 in 2014, new entrants such as Capegemini, Wipro, Goldman Sachs and TCS came to the forefront when came to hiring numbers from top 10 B-Schools in India. For searching talents many companies build a long-term relationship with academia.
For example “going beyond recruitment has been the philosophy of cognizant”. The organization believes in establishing a long-term relationship with academia and does not believe in onetime, placement-driven interaction.
The long-term relationship includes measures such as formulating the curriculum and syllabi for several universities, initiating faculty development programme on the latest trends in technology and business, getting alumni to act as campus ambassadors and spending some time on campus, and sponsoring key activities.
Cognizant also banks on its “no service agreements or employee bonds” policy to attract campus talents. In 2011 placement season Cognizant got sixty acceptance offers only from IIMs and 20 offer acceptances from ISB, Hyderabad.
Pros and Cons of Campus Recruitment:
i. It helps the organization to reach out to a large number of qualified candidates in a shorter period of time and at a single location.
ii. It is less expensive.
iii. Prospective job seekers can get quick employment based on their education, skill and knowledge.
iv. The recruiting companies can very well inform the placement officer/campus head about their future requirements in terms of quality of academic programme, type of students needed, diversity of the students body etc.
i. It leads to hiring employees with no work experience or less experience.
ii. The organization has to offer training to them to make them competent. Sometimes this is a burden for the organization.
iii. It is costly for the organizations situated in another city (airfare, boarding and lodging expenses of the recruiters etc.).
iv. Sometimes the candidates from reputed institutions demand very high salary.
The indirect methods of recruitment are newspaper advertisements and television and radio advertisements.
Organizations advertise to acquire candidates. It is one of the most common forms of recruitment. The advertisements give a brief outline about the organization, job description, job specification and compensation package.
This method is appropriate:
(b) The organization wants a fairly good number of talented people-who are geographically spread out.
The various methods of advertisement are as follows:
I. Newspapers Advertisements:
Many organizations depend on this method of advertisement. The aims of the job advertisement are to attract, create interest, communicate quickly and clearly the essential (appealing and relevant) points, and to provide a clear response process and mechanism. Design of advertisements usually concentrates on clarity of text, layout, and on conveying a professional image.
Job advertisements and recruitment processes should follow the classical AIDA selling format- Attention, Interest, Desire, and Action. This means that good job advertisements must first attract attention (from appropriate job-seekers); create relevant interest (by establishing relevance in the minds of the prospective candidates); create desire (to pursue what looks like a great opportunity); and finally provide a clear instruction for the next action or response.
Now-a- days lots of creativity are required to attract qualified applicants through recruitment ads. The main purpose is to generate interest in the most knowledgeable and experienced candidates working in other organizations.
To develop a recruitment advertisement, the company should begin with its corporate image. Since the advertisement is seen as an extension of the company, it must be representative of the values that corporation is seeking in its employees. Booz-Allen Hamilton, the leading consulting firm’s advertising campaign has successfully achieved this congruence by conveying in its ads the importance of employee work-life balance.
Pros and Cons of Newspapers Advertisements:
i. It is easy to place job ads without much of a lead time.
ii. It has flexibility in terms of information and can conveniently target a specific geographic location.
iii. Very often the local newspaper is the best medium to attract qualified candidates in a particular location. For example for hiring plumbers one need to place an ad in Pattamundai of Odisha-because prospective candidates in large numbers are available there only.
i. This ads tend to attract only those who are actively seeking employment at that point of time.
ii. Some of the best candidates who are well paid and are challenged by their current jobs may not be aware of such openings.
iii. The organization may get number of applications having marginal qualification.
Organizations also advertise in trade and professional journals like Business India, Business World, Business Today, Outlook Business etc. Many brokerage firms, banks, insurance, telecom and software companies advertise through The Economics Times, The Business Standards or The Business Line.
Many large companies of national reputation also go for blind- box ads in newspapers, especially filling up the lower level positions. In a blind-box ad, there is no identification of the advertising organization. Job aspirants are asked to respond to a post office box number or to an employment firm that is acting as an agent between job seekers and the organization.
Reasons of Blind-Box:
a. To avoid the rush of applications
b. To cut down costs
c. To maintain secrecy from the competitors.
II. Television and Radio Advertisements:
Many organizations prefer to give advertisement in television and radio.
Pros and Cons of Television and Radio Advertisements:
i. These ads are more likely to reach individuals who are not actively seeking employment but help the organization maintain their data for future use.
ii. In situations where hiring needs are urgent, television and radio ads offer quick results.
i. These ads are expensive.
ii. Since these ads are simply seen or heard, potential candidates may not remember all the details unless and until the ad is repeated.
The third party methods of recruitment are private employment search firms, employment exchanges, gate hiring and contractors, walk-ins and e-recruiting.
I. Private Employment Search Firms:
Search firms are private employment agencies. They maintain computerized database of qualified candidates and provide these to employers willing to hire. They usually gets fee for this service from the employers as well as from the candidates. They tend to concentrate their efforts on higher-level managerial positions.
They frequently engage in their recruiting efforts while maintaining the confidentiality of both the recruiting organization and the person being recruited.
Some of the top search firms are- Ma Foi, Team Lease, Kelly services, Manpower, Smart Hire, Adeeco India, TVA InfoTech (IT/ITES specific), Heidrick and Struggles, Korn/Ferry, Egon Zehnder, Stanton Chase, ABC consultants, and KPMG etc. These firms offer specialized employment related services to corporate houses. At the lower end, a number of search firms operate providing multifarious services to both recruiters and the recruitees.
Pros and Cons of Private Employment Search Firms:
i. They have many contacts and good at contacting qualified, currently employed candidates who are not actively looking to change jobs.
ii. They keep the firms’ name confidential till the finalization of the deal.
iii. They advertise vacancies on their own, pre- screen hundreds of applicants and identify the right candidates.
i. Sometimes they demand very high fee from the organizations (usually two months salary of the candidates).
ii. Sometimes they reveal the secret of the organizations to the candidates.
iii. Many executive search firms cheat the candidates.
Guidelines to Get the Best from Private Employment Search Firms:
i. The organization must make it sure that the search firm is capable of carrying out a thorough search.
ii. The HR person of the organization should meet the person(s) who actually handle the assignment and explain fully what sort of candidate is required and why.
iii. Fee of the search firm should be finalized in writing.
II. Employment Exchanges:
They deal with middle-level management or below. The Employment Exchanges Act, 1959 requires all employers to notify their vacancies arising in their establishments to prescribed employment exchanges all over India before they are filled up. The Act covers all establishments in Public Sector and non-agricultural establishments employing 25 or more workers in the private sector.
Employment exchanges are created all over India to help unemployed youths, physically handicapped, and ex-military personnel etc. These agencies are usually paid only when they have actually provided a new hire. They do not charge a high fee.
Organizations usually face many practical difficulties in implementing the provision of the Act, such as filling a quarterly return in respect of their staff strength, vacancies and shortages, returns showing occupational distribution of their employees, etc. Many organizations have successfully fought court battles when they were asked to pick up candidates from among those sponsored by the employment exchanges.
III. Gate Hiring and Contractors:
Gate hiring is a method where the blue collared employees present themselves at the factory gate or at a particular place in the area and offer their services on a daily basis. They are basically hired through contractors. Very often they are being misused and harassed by both the contractors and the organizations.
Companies and organizations generally conduct walk-in interviews to source personnel to meet their immediate need. In today’s business world where growth and achievement of target is the mantra, companies need staff on short notice for fulfilment of their projects. It may not be suitable to wait for completion of long procedure involved in usual recruitment process.
In order to tackle a projected shortfall in target, to upgrade the target with a view to tap improving opportunities in the market, to meet the unexpected demand in products and services, to fill the gap in human resource availability in-house due to increasing attrition, etc. companies resort to walk in interviews.
Generally candidates in marketing and sales, freshers, production and technical staff, operational staff and many other categories find opportunities in walk in interview venues. Companies advertise the interview schedule and positions to be filled, along with venue details and offers. Usually successful walk in candidates get an offer instantly, and are required to join the company immediately.
For freshers and candidates who are not employed currently, these opportunities help them to get employed immediately. Naukri hub provides information of current walk in interviews available all over India. There are some disadvantages too such as many walk in opportunities are temporary or short-term and many times companies find it difficult to retain these employees.
E-recruiting is recruitment of candidates through internet. It has created a revolutionary effect on organizational recruitment practices. As per the research by Forrester Research of Cambridge, Massachusetts, there are approximately 30,000 different websites devoted in some manner to job posting activities.
Approximately 71 percent of all job listings are done by Monster(dot)com, Careerbuilder(dot)com, and Hotjobs(dot)com etc. Many companies have also developed their own websites and listed job openings on it. The website offers a fast, convenient and cost effective means for job applicants to submit their resume through the internet.
There are number of websites available in addition to companies own website, where the applicants can submit their resumes and potential employers can check for qualified applicants such as-www(dot)naukri(dot)com, www(dot)monsterindia(dot)com, www(dot)jobsahead(dot)com, www(dot)timesjobs(dot)com, www(dot)mafoi(dot)com, and www(dot)headhunters(dot)com etc.
Many social networking sites are also providing information regarding vacancies in various organizations. These are www(dot)apnacircle(dot)com and www(dot)likedin(dot)com.
It is the integration and utilization of internet technology to improve efficiency and effectiveness of the recruitment process. Most companies understand this and have begun the evolution by integrating e-recruiting strategy into their hiring process. As usage of the internet became widespread, the first wave of e-recruiting innovation was the creation of career solutions on corporate websites.
The early innovators achieved great success with the status of employer of choice and they mostly enjoyed the improved recruiting efficiency that comes with corporate website recruitment.
Leading corporations are incorporating new and innovative solutions to maintain competitive advantages, particularly in the integration of front-end career websites with back-end data management systems to complete an e-recruitment solution.
Benefits of E-Recruitment Solutions:
1. Centralized Platform:
a. Collect candidate information in a standard format.
b. Consolidates data from multiple recruitment sources.
2. Streamline Workflow:
a. Automates workflow from job requisition to completion of hiring process.
b. Captures and files candidates’ information and history for future retrieval by all users of the system.
3. Better Communication and Increased Productivity:
a. Shares knowledge and information between hiring team members online in real time.
b. Collaboration with colleagues to increase productivity.
4. Less Paper:
a. Electronically collects and files information to reduce paper usage.
b. Reduces manual administrative workload.
5. Candidates Pool:
a. Locates qualified candidates within a private pool of talents with precision.
Provides consolidated HR reports for the whole organization.
7. Save Cost and Time:
Improves productivity and reduces hiring expenses in the long run.