Everything you need to know about the recruitment and selection process in human resource management. Without employees the enterprise would have been a collection of materials and equipments.
While efficient employees are assets of the enterprise, inefficient employees prove to be a liability. Therefore, every organisation should recruit and select the most suitable and competent employees on the basis of the needs and nature of the job.
Recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organisation. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.
The scientific recruitment procedure will help the personnel department to find a right person for the right job. The procedure of selection depends on the job for which selection is made.
An elaborate procedure will be used for jobs, which involve responsibility and decision making, whereas the procedure for selecting a worker in a factory may be simple.
Today many organizations are going for scientific vocational selection procedure, for which a separate department is created with psychologists, job specialists and well trained personnel managers.
Learn about the various steps, process and procedure adopted for recruitment and selection of employees in any organisation.
Recruitment and Selection Process– Steps, Process and Procedure
Recruitment and Selection Process in HRM – Steps Involved in the Recruitment and Selection Process
Recruitment Process in HRM
Without employees the enterprise would have been a collection of materials and equipments .While efficient employees are assets of the enterprise, inefficient employees prove to be a liability. Therefore, every organisation should recruit and select the most suitable and competent employees on the basis of the needs and nature of the job. The process of identification of different sources of personnel is known as recruitment.
It is the process of attracting potential candidates to the business concern. In other words, recruitment implies locating, maintaining and contacting the sources of manpower. A logical sequence of events would be – Identifying the different sources of labour supply- Assessing their validity-Choosing the most suitable source-Inviting applications from the prospective candidates.
In this way, recruitment is an activity of establishing a contact between employers an applicant. The most important objective of any recruitment policy is to keep the labour turnover ratio as low as possible. It is the positive activity in the sense that it aims at reaching as many job seekers as possible for jobs in the enterprise.
Recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organisation. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.
Following steps are followed in recruitment:
1. Requisition of Employees:
In the first step of recruitment, the heads of various departments provide the information to the personnel manager regarding their requirements for the employees in their departments. Heads of the departments provide this information after analysing the workload and the availability of the staff.
2. Identification of Sources:
After receiving the requirement of staff from the various departments, personnel manager decides the sources from which the recruitments are to be made. For this, various sources are analysed keeping in view their positive and negative aspects.
3. Inviting the Applicants:
Once the sources of recruitment are decided, the next step is to invite the interested applicants for the job in the company.
In this invitation following information is included:
(i) Number of vacancies
(ii) Job profile
(iii) Proposed salary
(iv) Minimum qualification
(v) Preferred qualification
(vi) Minimum experience.
4. Preparation of the List:
After receiving the applications, they are verified and classified into two groups. In one group those applications are included, which fulfill the required minimum qualification; and in the other those which do not fulfil the minimum qualification. The first group is then included in the selection process.
Process of Recruitment:
The recruitment process encourages individuals to seek employment opportunities with the organization but the selection programme is to identify the best qualified workers who apply. Therefore, selection is a negative process. It is the process of picking best suited individuals for a particular position from a group of applicants. The selection is a long process, starting from initial screening to issuing appointment letters to selected candidates.
The process would be greatly simplified if a standardized screen process could be developed for a particular position. An important part of personnel selection is to make reasonably sure that the person appointed to any position is interested in the work he has to do. The complexity of a process usually increases with the level and responsibility of the position to be filled. Therefore, effective selection demands constant monitoring of the fit between the person and the job as per Gate wood and Field, (1998).
According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges. Candidates are screened by the application of these tools. Qualified applicants go on to the next hurdle, while the unqualified are eliminated.”
The basic of objectives of selection is to:
1. Acquire such personnel who are most likely to meet the organization’s standards of performance;
2. Satisfy employee needs and wants as well as the fullest development of his potential.
It must be said that the identifying the best candidate for the job is only one side of a coin, as the candidate needs to be motivated to accept the job offer. This point is made by Herriotin 1984 that the psychological contract can be terminated by either side at any point in the process. The process of recruitment provides a pool of applicants for selection. Therefore, selection is a part of recruitment.
Selection Process in HRM:
Selection starts with reference to job specifications which indicate not only immediate job requirements but other qualities which may be desirable in the long run. Usually, the personal qualities which form the basis of a selection process include – skill, experience, age, education, training, physical characteristics, intelligence, aptitude, emotional stability, attitude towards work and personality. The selection procedure may differ according to the types of jobs and candidates.
The common steps are outlined below:
1. Screening of Applications:
The first step in the process of selection involves screening, i.e., sifting of applicants to avoid further consideration of those who are obviously unsuitable. Prospective employees have to fill up some sort of application forms which include a variety of information including personal and professional details. Those applications are selected which meet the job standards.
2. Preliminary Interview:
An interview at the preliminary stage may be arranged consisting of exchange of information to determine whether it is worthwhile for the candidate to fill up the blank application. In many organisations, the process of selection begins with the preliminary interview. This interview often takes place at the reception counter of the organisation. It is generally short and is held to eliminate the obviously unfit or the unsuitable.
3. Application Blank:
The application blank is the form given to the candidate to fill the required information in his own handwriting. This application form relieves the interviewer from the burden of recording factual data. A variety of application blanks are used in practice but there is a high degree of similarity between the application blanks of different organisations, because the basic information required is similar in all cases.
The application blank should be simple and concise consisting of questions, which have bearing on the applicant’s suitability for employment. It should provide information which is relevant to the job or the vacancy. After screening the applications, the promising candidates are called for tests.
This application blank generally requires the following information from the candidates:
(i) Personal Information including name, father’s name, age, sex, marital status, etc.
(ii) Qualification, both educational and professional.
(iii) References of two or more persons who can be asked about the candidate’s character and social relations.
(iv) Other information which may be helpful for the decision for the job.
4. Employment Test:
Formal testing of the candidates has become a common practice in selection as a supplement to direct personal interview. A wide variety of tests have been developed for potential employees of different categories.
There are commonly the following types of test:
(i) Intelligence Test:
Intelligence test is used to measure the mental capacity of the individual in terms of his memory, power of understanding, verbal comprehension, reasoning ability, vocabulary, perception, etc. This is a form of psychological test. These tests are most widely used in the selection of both skilled and unskilled personnel. The basic purpose of this test is that if the management appoints intelligent people, their training and learning in the organisation will become easy.
(ii) Personality Test:
This test measures the maturity, initiative, emotional balance and temperament of an individual. This test is conducted to predict performance success for jobs that require dealing with people who are supervisory or managerial in character. This test checks the ability of the person to interact, to motivate, or to convince the other person. For example, interaction skills are very necessary for the salesman.
(iii) Aptitude Test:
Aptitude test is used to measure the applicant’s capacity and potential for learning the skills required for the job. Aptitude refers to the ability of the person of learning the skills required to perform the particular job. This test measures the individual potential for development.
(iv) Interest Test:
These tests are designed so as to identify the candidate’s pattern of interests i.e., areas in which he shows special likings, fascination, and involvement. These tests find out the likes and dislikes of the applicants for the different types of job. It finds out the jobs which will satisfy the prospective employees.
All the above tests are psychological tests which measure the emotional and psychological maturity of the potential employees.
Apart from these, following are the remaining types of test:
(a) Dexterity Test:
Dexterity test is aimed at knowing the ability of a candidate to use his limbs or different parts of the body in a coordinated manner as required in performing a particular job.
(b) Achievement Test:
It is also called performance or trade test. Achievement is concerned with the accomplishments of the particular person. If a particular candidate claims that he has accomplished something, then the achievement test checks that if he actually knows what he has accomplished. For example, a driving test may measure whether the candidate knows driving through the speed, rules, and the method of driving opted by the candidate.
(c) Special Trade Efficiency Test:
This test verifies the specialisation of the candidate. Both the theoretical and practical knowledge about the trade are verified under this test.
5. Employment Interview:
Face-to-face interview before the final selection is an important step, which not only acts as a check on the information already obtained but also provides the opportunity to form a better understanding of the candidate, to motivate him, to inform him about the job and the company. According to Strauss and Sayles, “The object of the interview is to measure the applicant against the specific requirement of the job and to decide whether these will be good fit.”
The different types of interview are as follows:
(i) Structured Interview – In this, question and areas to be covered in the interview are decided in advance.
(ii) Unstructured Interview – It is not planned in relation to the questions to be asked.
(iii) Depth Interview – It is semi-structured interview and questions are asked for the key areas.
(iv) Stress Interview – Deliberate attempt is made by the interviewer to provoke and embarrass the candidate. The purpose is to check the reaction of the candidate under situations of stress.
6. References Checking:
An investigation into a promising candidate’s background is too often overlooked by the employing organisation. Previous employers and school officials can often provide valuable insights into the applicant’s personality and behaviour. The usual references are the previous employer, educational institution of the candidate, and reputed persons who know the behaviour or character of the candidate.
The reliability of such checks is questionable and former employers may be reluctant to provide information particularly in writing. Because of this, personnel executives may substitute the written inquiry with a telephone call. In India, references are not given due importance because of the chances of partiality, these provide very useful information about the candidate.
Selection Decision – Views of the concerned manager are taken for the final selection regarding the candidates who pass employment test, employment interview and reference checks. This is because he will be responsible for the performance of the candidate in the future.
8. Medical Examination:
Medical examination of the candidate is required for several reasons like to ensure that he is physically fit for the job, that he does not suffer from any latent disease and the firm is not likely to be held liable for any claim under Workmen Compensation Act. The practice of physical examination varies a great deal, both in terms of coverage and time.
It is basically carried out to ascertain the physical standards and fitness of prospective employees. This examination is conducted to ensure that the individual does not have a disability because of which he may not be able to perform the job he has been hired for.
9. Job Offer:
On completion of the selection procedure, candidates are finally selected and letters of appointment are issued to them which state the terms and conditions of employment including the pay scale, starting salary, allowances, and other benefits, the period of probation, etc. The period of joining is also mentioned in the job offer.
10. Contract of Employment:
If the candidate accepts the job offer he becomes an employee of the organisation. He has to sign various documents with the organisation, mainly the attestation form and the written contract.
Written contract provides the following information:
(i) Job title
(ii) Responsibilities of the job
(iv) Allowances and incentives, and
(v) Working hours and leave rules.
Influences on the Selection Process:
Both internal and external environmental characteristics of the organization affect the selection process of the organization.
1. Internal Environment:
Under internal environment a number of characteristics of the organization influence the amount and type of selection process it uses, to hire required employees.
These are as follows:
i. Size of the organization- (It is the organization’s magnitude as reflected in the number of people in the organization. It is usually measured for the organization as a whole or for specific components such as a plant or division).
ii. Complexity of the organization- (It refers to the degree of differentiation that exists within an organization. The various types of differentiations are horizontal differentiation, vertical differentiation and spatial differentiation. An increase in any of the three factors increases organization’s complexity).
iii. Hiring from within or outside of the organization (The source of recruitment, may be internal or external).
External environment deals with size, composition, and availability of local labour markets. These in turn are affected by economic, social, and political pressures on a community. When unemployment rates are low, it may be difficult for an organization to identify, attract, and hire the number of required people it needs. When there is an oversupply of qualified applicants, selection strategies can be very different.
The effects of the labour market on selection decisions can be evaluated by using selection ratio, which is No. of applicants hired/Total no. of applicants:
(a) When the selection ratio gets close to 1:1, it is called a High selection ratio. Under this circumstance the selection process is short and unsophisticated although it may not be effective.
(b) As the number of applicants increases relative to the numbers who are hired, the selection ratio is said to be Low. With a low selection ratio, for example 1:2, the process becomes more detailed. The organization can become more effective in its choice than when the ratio is 1:1 and has to invest more time and money in the selection decision.
Recruitment and Selection Process in HRM – Systematic Process for Recruiting and Selecting Employees in an Organisation
Recruitment Process in HRM
Once the manpower need has been determined and job vacancies created and approved, the need for filling the vacancies arises. A systematic programme of recruitment, selection, and placement begins. The acquisition of human resources is the first operative function of human resource management.
It is also considered as the bread and butter activity of human resource professionals. Recruitment may be defined simply as the ‘task of hiring labour to fill current or future job vacancies’. All organizations need resources to function, resources in the form of employees, i.e., men, money, machinery, materials, etc. The employees are the human resources of the organization and crucial to its functioning.
A systematic process of hiring employees calls for the following steps:
(1) Analysing the job – i.e., screening facts about the job, study of the job itself, and the qualities needed to perform it.
(2) Developing sources of supply and attracting applicants for the job.
(3) Assessing the candidates to see how far each one measures up to the expectations of the job – This is done with the help of application blank, interviews, tests, investigating references, physical examination, etc. The next step is to compare what each candidate has to offer against the specifications of the job.
The selection of the candidate best suited to fill the position may be carried out either by one individual or by a panel; the essential element in selection is the assessment of each candidate against previously set criteria. In this light, selection may be defined as the ‘process by which candidates for employment are divided into two classes—those who are to be offered employment, and others. The process might be called as the process of elimination. Thus, selection frequently is described as a negative process in contrast with the positive programmes of recruitment’.
(4) Placement and follow up – Placement and follow up aims at ensuring whether the individual who has been selected is placed suitably on the job, and does the job well. This step has to do with his/ her orientation to the organization, its climate, and culture. It is a check on the previous three steps, and the only way by which selection in future can be made more effectively.
Selection Process in HRM
Selection refers to the process of picking individuals, from the pool of qualified candidates, who have required qualifications to fill different jobs in an organization. It is the way by which an organization chooses from a list of applicants the person (s) who best meets the selection criteria for the position available, considering current environmental conditions.
It is hiring and no-hiring decision about each job applicant. Hiring a wrong person is very harmful for the organization. It is wastage of time, money and energy. From this angle selection is very important as it examines the best compatible aspects between the job and the candidate.
Selection forms a crucial manpower function. The trends towards automation and computerisation have increased the significance of this process. Selection is the process of securing relevant information about an applicant to evaluate his qualifications, experience and other qualities with a view to matching these with the requirements of a job. It is essentially a process of picking out the man or men best suited for the organizations’ requirements.
Selection standards and personal qualities of a candidate determine whether or not he is placed on a job. Explicitly, selection standards are adjusted to the needs of the organization and labour market situations. The applicants pass or fail on specific selection standards of “hurdles” and those surviving these standards or hurdles for specific jobs are placed in vacant positions.
Thus, an effective selection programme is a non – random process because those selected have been chosen on the basis of the assumption that they are more likely to be “better” employees than those who have been rejected.
The concept of strategic selection aims to provide a link between the company’s business demands and the ‘kind’ of personnel who can deliver the demands there on. Because improper selection is so costly, management must make better use of all available techniques to ensure that the majority of those who are hired will work to the ultimate advantage of themselves and their organization.
A proper selection process includes:
Process I – Examination of the Job(s) Having Vacancies:
This step consists of job analysis. A thorough knowledge and understanding of a job is of paramount importance and must precede the use of any test in the selection of workers.
Process II – Selection of Criterion and Predictor:
The second step involves two things – choosing an indicator which measures the extend of how “good” or successful a worker is (typically referred to as the criterion) and choosing a particular measure that can be to predict how successful a worker will be on the job. (typically referred to as the selection device or predictor).
Process III – Measurement of Performance:
Once the criterion and the predictor have been selected it is necessary to obtain measures on both from a sample of workers on the job. This can be done either by giving the predictor to present employees and simultaneously obtaining criterion measures, or by giving the predictor to new hires and waiting for a specific time before obtaining the criterion measures.
Process IV – Relating Predictor to Criterion:
The fourth step involves determining whether a true and meaningful relationship exists between the employee scores on the predictor and the criterion. Establishing the existence of such a relationship is called assessing the validity of a predictor.
Process V – Deciding upon the Utility of the Selection Device:
Making the final decisions as to whether to use the predictor to select new job hires depends not only upon the size of the relationship found and its significance, but also upon many other conditions; the number of applicants, number of job opening, base rate, respective vacancies of the successful and unsuccessful worker groups.
Process VI – Re-Evaluation:
The fact that the predictive situation is a dynamic, ever – changing, one should never be forgotten. What makes for good selection today may not be at all appropriate tomorrow, applicants change, jobs change, and employment conditions change. Thus any good selection programme should be re-evaluated periodically to make certain it is doing the job for which it has been designed.
Recruitment and Selection Process in HRM – Top 8 Procedure: Requisition, Recruitment, Application Blanks, Trade Tests, Psychological Tests and a Few Others
The scientific recruitment procedure will help the personnel department to find a right person for the right job. The procedure of selection depends on the job for which selection is made. An elaborate procedure will be used for jobs, which involve responsibility and decision making, whereas the procedure for selecting a worker in a factory may be simple. Today many organizations are going for scientific vocational selection procedure, for which a separate department is created with psychologists, job specialists and well trained personnel managers.
Procedure # 1. Requisition:
The first step in the procedure of employing people is requisition from the departmental head or foreman concerned regarding the type and number of workers required. While preparing the requisition, the concerned manager must be careful enough to estimate his present and proposed need in the near future. Along with the requisition, he has to give a description of the job, so as to enable the persons in the selection committee to select most suitable person for the job.
Procedure # 2. Recruitment:
The next step is to identify a proper source, where from they have to select the people.
For this depending on the type of job for which they have to select the persons, the recruitment department may contact different sources as follows:
(a) For Casual Workers:
The main source for casual workers is factory gate. Skilled and semiskilled workers will be waiting for an opportunity at the factory gate. The foreman can go to the factory gate and select the appropriate person the factory needs. Or sometimes, the workers are selected on the recommendations of the permanent employees.
(b) For Skilled Tradesmen:
For this category, the recruitment department may approach local employment exchange or local technical training institutes. When they approach employment exchange, the exchange will give a list of candidates registered with them. The company may call these candidates for interview and select their need. When the recruitment department approaches, industrial training institutes, they can conduct various testes to the outgoing students of the institute to make the selection.
(c) For Clerical Staff:
The employment exchanges are the best sources for the candidates for clerical staff, typists etc. Sometimes paper advertisement is also given to tap the talents of the aspirants. Applications received are scrutinized and a list of eligible candidates is prepared for further processing.
(d) For Technical Professionals:
Many companies in India go for advertising their requirement and invite applications (may the company supply forms or format prepared by the candidate him or herself). Some of the companies prefer campus selection. These companies visit leading technical institutes or colleges to cater their need. They conduct various tests at the campus and select the promising candidates. Some companies conduct the written tests and other testes at their premises for the applicants to select required personnel.
(e) For Managers:
This category also recruited from campus interviews or through advertisement, as above.
(f) Senior Managers:
Advertisement is the best source to recruit the senior managers. Job description is given in the advertisement. Candidates applied for the post are called for face-to-face interview and selections are made.
Procedure # 3. Application Blanks:
When an announcement of vacancies is given in the newspaper, the recruitment department may receive number of applications from the candidates. After careful screening the application forms, a list of eligible candidates is prepared and for them an application form is sent from the company. Or when the company visits the technical institutes for campus recruitment it may get a list of successful candidates who pass the entrance test conducted by the company personnel.
The application formant is carefully designed so as to get relevant information from the candidates. The application is so designed to get information regarding the qualification, experience and references. Some questions are involved to test the aptitude of the candidate. After receiving the application form from the candidate, they are carefully examined to prepare the list of prosperous candidates. From this list, few candidates are called for personal interview.
Procedure # 4. Trade Tests:
This type of tests is generally required when the company wants to recruit tradesmen like welder, carpenter, fitter, etc. Also to recruit people for the posts of stenographer, typist etc. When the company is interested in selecting casual labor, to find for what job the person is suitable, these tests are conducted.
Procedure # 5. Psychological Tests:
Industrial psychologists have devised certain tests to measure the psychological characteristics of individuals. These tests reveal how an individual behaves while on the job. It consists of giving to the applicant a task, which is representative of the job for which he is being considered. His performance on the job is evaluated relative to that of other candidates. There are different types of tests standardized for jobs at different levels.
Examples of such tests are:
(i) Intelligence tests – These tests measure the mental capacity of the candidate and enable the examiner to analyze the novel or abstract situations and identify the intellectual and mental suitability of the candidate for the job.
(ii) Aptitude tests – These tests are designed to test the inclination of the candidate to learn the skill of the job and his interest on the job for which he is being tested.
(iii) Dexterity tests – These tests reveal the individual’s capacity to use his fingers and hand while doing the work. It tests individuals grip in holding the tools used for the job. From these tests one can examine the mental balance of the candidate.
(iv) Achievement test – These are designed to test the level of knowledge and proficiency in certain skills already achieved by the applicants.
(v) Personality tests – These tests will test the emotional balance, maturity and temperamental qualities of a person and also test the physical fitness for the job.
Procedure # 6. Interview:
Personal interviews are conducted to find out the candidate’s mental and social make-up and to know whether the qualities possessed by him make him suitable for the job for which the interview is conducted. For many people interview is a nightmare. They think that interview is conducted to eliminate him from selection by asking unnecessary questions. But in true sense, interview is to be conducted in a friendly atmosphere, and the candidate is made to feel at ease.
The candidate receives a warm welcome from the committee members so that he can feel free to converse with them. In interview, the questions are asked on the basis of job specifications. Fair chance should be given to the candidate to clarify his doubts, if any, regarding the job and the company. Questions should not be asked in haphazard manner to confuse the candidate. Where written test and other tests are not conducted, job specialists may ask some questions related to the technicality of the job and if necessary may go deep in the subject matter.
Matters like hours of work, resting period, working on holidays and overtime should be carefully explained, if necessary, so as to enable the candidate to know all about his work. In many concerns, interview is only the way of examining the candidate for selection. But many a time one cannot judge the ability of the candidate by mere personal interview only. It should be supplemented by some other tests. If interview is only the means, mostly personnel judgement of the committee members will have influence on the selection.
Therefore, the disadvantages of interview are:
(a) Some abilities of candidate cannot be judged by members and
(b) The result of the interview heavily banks on the personal judgement of the committee members.
Procedure # 7. Medical Test:
As far as possible, all workers are to be subjected to medical test before selection. It is because, people with poor health may not work to the satisfaction of the management and they may absent frequently from the job, which may have adverse effect on the productivity. Finally, due to ill health he may leave the job, which results in wastage of all the training given to him.
When the job demands, good and healthy physic, persons with poor physic may not come up with job. In case persons employed are having diseases; they may spread it to fellow workers. Hence, it is essential that all applicants, without reference to any cadre, must undergo medical test.
Procedure # 8. On-the-Job Test and Selection (OJT):
Hitherto, many methods of selecting an employee are discussed. Basing on the results of the above tests, applicant may be selected. But before giving him a job on permanent basis, it would be better to try him out for a few weeks in the factory itself. This is because no procedure of selection can find out the whole reality about the personality of the selected candidate. We can judge the candidature by looking carefully the person at work and judger the behaviour with the fellow workers and his effectiveness of his performance of the job. After testing the applicant few weeks on the job, if found suitable, then final selection is made.
Factors Affecting Recruitment Process
The process of recruitment begins with an attempt to find employees with the abilities and attitudes desired by the organization and to match them with the tasks to be performed. Whether the recruiting effort will be successful in getting the potential employees to respond, depends on the attitudes the latter have developed toward those tasks and the organization on the basis of their past social and working experiences.
The relative difficulty of recruiting depends on a number of factors.
(i) Government and Union Restrictions:
Various government regulations prohibiting discrimination in hiring and employment have a direct impact on recruiting practices. For example, the Government of India has introduced legislation for the reservation in employment for Scheduled Castes, Scheduled Tribes and physically handicapped persons.
A certain percentage of seats have been reserved for them by the Central Governments and State Governments for all categories of posts. As a result, the recruitment efforts of Government departments and Central and State Government organizations are influenced. Special recruitment drives are undertaken for Scheduled Tribe candidates.
Some companies have agreements with recognised unions to give prior consideration to relatives of deceased, existing or retired employees, if their qualifications and experience are suitable for vacancies. In many trade industries, it is a common practice to have the union screen and approve those individuals who can be considered for employment.
This not only restricts managements freedom to select those individuals who it believes would be the best performers if the candidate cannot meet the criteria stipulated by the union, but the union requirements can also restrict recruiting sources.
(ii) Labour Market Conditions:
The employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is a labour surplus at the time of recruitment, even informal attempts at recruiting will probably attract more than enough applicants.
However, when full employment is nearly reached in an area, skillful and prolonged recruiting may be required to attract any applicants that fulfill the expectations of the organization. One of the factors that influence the availability of applicants is, whether the economy is growing.
When companies are not creating new jobs, there is often an oversupply of qualified labour. One symptom of this condition in recent years, has been the nearly 11 percent drop in recruiting visits that organizations made to college campuses between 1992 and 1993 in the U.S.. Local conditions are more important than national conditions unless the employer is recruiting nationwide.
An organization’s recruitment efforts must compare favourably with its competitors. The Human Resources (HR) department of the organizations must realize that it is competing with other organizations in the local area for the same good job applicants. A wage survey is usually used to maintain labour market information for the local area.
Most professional organizations, however, conduct surveys not only for the local area but for regional and national areas as well. Professional positions require a greater regional and national emphasis because individuals seeking professional jobs are often more willing to relocate to take challenging jobs.
The first step in the recruiting process is to determine the relevant labour market and information about it. One widely used statistic is the unemployment rate. Tracking changes in the unemployment rate over a period of time can help an organization determine the labour-market conditions of a particular area.
The relevant labour market influences the strategy and method of recruitment a firm will use. Which recruitment method an organization will use to fill its particular jobs is greatly affected by the survey information available.
(iii) Composition of Labour Force/Workforce Diversity and Location of the Organization:
It has become important for an organization to analyze the composition of its workforce. Such an analysis helps in ensuring that the firms’ employment practices are fair and non-discriminatory.
Workforce 2000, the study by the U.S.Bureau of Labour Statistics shows that from 1986 to 2000 the labour force will experience:
a. A substantial growth of minority representation (57 per cent of all new workers).
b. A substantial growth of female workers (65 percent of all new workers).
c. An older workforce (median age of 39) due to the aging of the baby boom generation.
These significant demographic shifts in the workforce are already having a profound impact on recruitment strategies utilized by employers. The reality is an aging workforce which has fewer young people entering the job market to replace retirees, and of those new entrants 83 percent are women, members of minority groups, or immigrants.
The demographic and economic factors in today’s society require employers to utilize more flexible and innovative recruitment methods. To attract and keep good people in the 1990s requires flexibility as the recruitment motto.
The location of the organization and the relevant labour market will play a major role in the composition of the workforce and therefore, on the recruitment strategy.