This article throws light upon the five major problems faced by Indian industries in selecting employees. The problems are: 1. Defective Recruitment Practices of Indian Employers 2. Old Technique of Selection 3. Untrained Selectors 4. Lack of Planning 5. Attitude of Indian Employers.

Problem # 1. Defective Recruitment Practices of Indian Employers:

The main source of recruitment in Indian industries is jobber or Makkadam or contractor who recommends or in some cases select the operative staff. The system of recruitment through such intermediaries has led to many abuses. Several new sources of recruitment have come into practice.

They one through employment exchanges or through labour officers. Mew methods of recruitment have been introduced in some public sector undertakings but the old method of recruiting the workers through intermediaries is still alive in some private industries.

Problem # 2. Old Technique of Selection:

Old selection techniques are generally employed in Indian industries except a few public sector undertakings.

Problem # 3. Untrained Selectors:


Selectors in Indian industries are also not aware of the modern techniques of selection. Interview is regarded the most modern techniques of selection, but they are not fully trained even in the technique of interview. Their behaviour with the prospective candidates in most cases is unwarranted and in some cases it is inhuman too.

Problem # 4. Lack of Planning:

There is no manpower planning in Indian industries. Generally persons are recruited as and when the posts are vacant. Good persons are not available at all times. Therefore, there is always a problem of skilled workers.

Problem # 5. Attitude of Indian Employers:

The attitude of Indian employers towards employment is not favourable. They recruit the workers for a short time just to deprive them of the statutory benefits. Hence, they could not hire good workers.



The hiring process and the training process is very costly. It requires a lot of time, effort and money during the process of selecting the right person for the right job. So it is necessary to create a working environment, which will be conducive to maintaining the work force and keeping them in high morale.

Factors involved in retention of workforce are given below:

(i) Compensation Administration:

This involves a fair compensation and fringe benefits. Fringe benefits include insurance facilities, paid vacation, profit sharing, stock option and sick leave.


(ii) Labour Relations:

Good labour relations and fair union representative provide for proper channels for processing grievances as well as mutually beneficial negotiations with the management which provide for job security and job advancement.

(iii) Health and Safety:

Health and safety facilities should be provided for employees to keep good physical condition.


(iv) Auxiliary Employee Services:

These include recreational facilities, food services, company, newspaper, athletic facilities for the employees and their families. Other factors such as common cafeteria for workers and managers, visiting worker homes occasionally and periodic company picnics and Christmas parties etc., would help to bring the employees closer to each other, creating a family environment.