Human Resource Management

Module 4
Recruitment

Recruitment is defined as a set of activities which helps in

preparing a pool of candidates from which the right candidates can
be selected.

The pool must have right match, retainable talent and must have
been prepared at minimum cost. .

Hiring is on a high and most sectors and companies are looking to

have more people on-board.

Hiring is not just about increasing headcount but also finding,

attracting and roping-in right candidates who are more
retainable.
Species of Candidates to be Avoided
Recruiting wrong candidates and then thinking was
and means to retain
them is not going to work.
some species of candidates whom
recruiters should give a miss

Species of Candidates to be Avoided

Paper Tigers: Recruiters generall
weed-out the visibl over
and under !ualified candidates
but the often fall into the tarp
of paper tigers. These are those
candidates who have !ualifications
and degrees on their resumes however
lack real knowledge and skill.
The ma turn " turtle when it
comes to real job performance.
Money Grubbers: These are
candidates who use the new job
offers to bargain with their current
emploers. #uch candidates shall
alwas show too much enthusiasm
on the package even before the
selection process has begun. These
mone grubbers are better avoided.
Ever-seekers,
Never-keepers: $re!uent
job-hoppers are a
dangerous species as
although the ma have
worth on paper, their
loalties shift over-night.
These candidates cannot
be trusted.
Recruitment Objectives
Recruitment, a precursor to selection has not only
been the objective of making itself more productive but
also to maximize the efficiency of the selection
process. The primary recruitment objectives are as
follos!
". To maximize the pool of applicants so as to
provide sufficient choice at the time of selection.
#oever care should be taken to enlarge the
pool justifiably and to a feasible level. The pool
size should be determined keeping in mind the
human resource planning and job$analysis data.
%. To create this pool of applicants at a
minimum cost possible. This is not to
suggest cutting corners but keeping the cost under
control, alays keeping an eye on cost per
hire.
&. To create a pool of applicants ho are 'right(
and 'retainable.(
4. To ensure that all recruitment procedure adhere
to the policy of 'no discrimination( against caste,
creed, ethnicity, colour of skin, language,
gender etc., and provide an e)ual opportunity
to all.
*. +To ensure that the recruitment procedures and
steps have clarity, validity and consistency in
application.
,. To ensure that the recruitment policy is in line
ith the legal re)uirements of the land and also
meets the various social obligations of the firm.
-. To train the pool of applicants so as to maximize
their chances of selection and hence improve the
success rate of the selection process.
Factors Affecting Recruitment
External Factors
1 !abour "emand and Suppl#$
.emand and supply situation of labour
in the market is bound to
have an impact on the recruitment.
/f the supply of labour is in shortage,
the firm tends to look ithin
0internal recruitment1
to fulfill its demand. 2hortage of labour
may also increase the price hich
a firm is ready to pay to ac)uire labour
from outside.
% Emplo#abilit#$ The shortage is alays not
only in terms of headcount
but also in terms of skill$gap i.e.,
the labour largely lack the skill
re)uired in the industry despite
being educated. This reflects lack
of 'employability. Skill shortage
puts additional pressure on the recruiting
firm to either 'make( their internal
resources better for the ne roles
or to even launch training
programs for their fresh recruits$to$be after the firm
identifies them as recruitment source but before
the firm contemplates final offers.
& Emplo#er 'rand$ The image
of the firm at large especially in the
eyes of the probable candidates
has an impact on the recruitment of
the firm. 3ompanies ith strong
'employer brands are able to
attract more and better candidates.
#ence a strong employer brand
has a positive impact on the
recruitment function.
( )olitical and Social
Environment$ 4olitically the state
or regional governments are
dedicated to increase the
prosperity of their state5 region.
There are companies ho enter
into Mo6 0Memorandum of
6nderstanding1 ith the
state5regional governments to
reserve 'x( percentage of the total
vacant positions for the persons,
domicile of the respective
state5region. The firms must
honour such commitments.
2imilarly, there are companies
hose recruitment is impacted by
the social obligation that they feel
for themselves.
* +ec,nological Environment$ The rate of
technological obsolescence in a particular industry
has a direct impact on recruitment as the
recruitment function must not only find people
ith ne skills but also proactively keep on doing
the same. '7e skills( are not easy to recruit and
companies may at several times have a problem
ith 'employability(.
- !egal Environment$ 8egal
considerations have to be kept in
mind hile recruiting for the firm.
9or example, in /ndia there is
'reservation here a particular
percentage of the jobs are
reserved for the people
belonging to the caste of people
traditionally left$out in the
development process. The
government firms must honour
the same and private firms have
limited impact of the same.
. /nemplo#ment Rate$
#igher unemployment rate
in a country definitely outs
the supply on the surplus
side and stimulates a firm to
look for cheaper options.
0 Competitors Strateg#$
The companies generally
are affected by the
recruitment strategy adopted
by the competing firms.
1nternal Factors
1 HR) or 2ot$ 3ompanies
ho have proper human resource
planning in place are able to do a
full forecasting and estimation of
future demands and supply of
human resources. Their
recruitment is mostly proactive
and targeted at fulfilling future
demands.
% Si3e of t,e Firm$ The size
of the firm also impacts
recruitment. /f the size of the firm
is small then the recruitment is
mostly 'reactive( in nature here
it is mostly targeted toards
fulfilling present demands.
2maller size firms also ould
look for more conservative
sources of recruitment rather
than the ones hich offer more
costly ones.
& Recruitment )olic# of t,e
Firm$ :very firm has its on
recruitment policy by hich it
determines the timing, cost and
process of recruitment that it shall
follo. 9or instance, the choice
beteen 'internal( and 'external(
sources,e$recruitmentor not,
temp$hiring or not, 'indo
shoppers( or planned hires, etc.
Sources of Recruitment
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PRESENT
EMPLOYEES
EMPLOYEE
REFERRALS
FORMER
EMPLOYEES
PREVIOUS
APPLICANTS
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Contracts / Temps
E-Recruiting
Competitors
Acquisition & Mergers
Radio & Television
Displaced Persons
Contractors
Consultants
Walk-ins & Write-ins
Campus Recruitment
Emploment E!c"anges
Advertisements
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A 1nternal Sources
/nternal sources of
recruitment relate to the
existing employees of the
firm. The company may get
recruits for certain positions
through transfers,
promotions, re$deployment
or through succession$
panning. ;ll of them shall
)ualify as 'internal recruits(.
' External Sources
The external sources of recruitment may be classified
broadly under to types! the traditional and non$traditional
sources of recruitment.
a +raditional Sources$ +,e traditional sources of
recruitment include t,e folloing!
i Recruitment Advertisements$ Most
common source of recruitment #oever, a company
decides the reach, fre)uency and conse)uently the cost
of such ads vis$<$vis the benefits accrued in terms of
recruitment.
ii Emplo#ee Referrals$ These are candidates
ho are referred to the companies by their on
employees.
iii Campuses$ 9reshers are often recruited from
the educational campuses. The companies have an
opportunity thus to catch the university
graduates young.
iv Recruitment Consultants$ =ariety of
recruitment consultants flood the market and they
provide the firm ith variable recruitment options.
b 2on4traditional Sources
i 'oomerangers$ These
are those orkers ho used to ork
for a particular firm sometime back,
then left and are no eager to
comeback to the fold. This may be a
in$in situation for both parties as
both ould have learnt from each
other mistakes and also may have
realized each other(s value. ;
boomeranger is likely to be more
retainable.
ii Retired not Hurt$ These are retired people ho
have much steam left in themselves.
iii Re4entr# 5or6ers$ These are those categories
of orkers ho used to ork before and left due
to certain reasons but no ith toughening
economic situation are eager to come back to
ork.
iv Students 7 House8ives$ 4art$time orkers
ho are eager to make some money in their
spare time come in such forms.
e4Recruitment Advertisements
3ompanies are focusing on finding more
cost$effective ays of conducting operations. #iring is
not untouched by the same. 3ompanies are resorting
to cost$effective hiring by using strategies like
just$in$time hiring, hiring in relatively small numbers,
etc. :xperts suggest that during these times of
cost$cutting, recruitment advertisements remain a
major concern because of the cost associated ith
them.
Advantages of e4Recruitment
Advertisements
e$Recruitment advertisements have certain
advantages as compared to ads in the traditional
media. 2ome of them are!
Reduced Costs
Research shos that e$recruitment advertisements
are >?@ cheaper than nespaper advertisements
and about "? times cheaper than hiring consultants.
;ccording to a survey by Monster /ndia, a job portal,
the average cost per hire using traditional media
varies from Rs. %*,??? to Rs. "????? for senior
position.
Reduced +ime to Hire
e$Recruitment advertisements can be accessed from
anyhere, anytime. They are geographically
independent, time$zone independent and ensure
independent access. The responses can also be
immediate. This speeds up the entire hiring process.
1ncrease Efficienc# of t,e )rocess
e$Recruitment advertisements can be combined ith
data arehousing and data mining tools, online
screening and testing tools, hich increase the efficiency
of the process.
Social Media Recruitment
2ocial Media is revolutionizing the orld in a big ay
and recruitment is not untouched by the same.
3ompanies are using the Aeb %.? applications
including social media5netorking sites 09ace book,
Titter, Brkut, 8inked/n, My2pace1, blogs, podcasts
04odcast ;lley, iTunes1, video sharing sites 0CouTube,
Ted, 9lickR1, mobile apps etc for recruiting people.
2ocial Media recruitment not only idens reach but
helps segmentation, targeting and positioning of
potential job seekers.
R:3R6/TM:7T 4RB3:22
Person
nel
Plannin
g
#o$
Analsis
Emplo
ee
Requisit
ion
#o$
%acanci
es
Recruitme
nt
Planning
D&um$ers
D Tpes
'trateg
Developme
nt
DW"ere
D(o)
DW"en
'earc"ing
*'ource
Activation+
*'elling+
DMessage
DMedia
Applic
ant
Popula
tion
Applic
ant
Pool
'creeni
ng
Potenti
al
(ires
Evaluatio
n &
Control
To 'election
R:3R6/TM:7T 4RB3:22

RECR/1+ME2+ )!A22129
4lanning involves the translation of likely job vacancies and information about
the nature of these jobs into a set of objectives that specify!
:1; 2umber and :%; +#pe of Applicants
2umber of Contacts $ Brganizations often plan to attract more applicants than they
ill hire. The task is to estimate the number of applicants necessary to fill all
vacancies ith )ualified people.
Yield Ratios (yRs) express the relationship of applicant inputs to outputs at
various decision points.
+#pe of Applicants$ Type of people depends on the tasks and responsibilities
involved and the )ualification and experience expected.
RECR/1+129 <1E!" )<RAM1"
R:3R6/TM:7T 4RB3:22

S+RA+E9< "E=E!O)ME2+ $
i. 'Make( or 'Euy( employees
ii. Technological 2ophistication
iii. Feographical .istribution
iv. 2ources of Recruitment
v. 2e)uencing the activities
5HERE +O !OO>$ 7ational market for managerial and professional employees, Regional
market for Technical employees, and local market for clerical and blue$collar employees
HO5 +O !OO>$ Refers to methods or sources of recruitment
5HE2 +O !OO> $ .ecide on the timings of events. 0T8.1 Time lapsed data ill be highly
useful in determining the timings. T8. sho the average time that elapses beteen major
decision points in the recruitment process
R:3R6/TM:7T 4RB3:22

SEARCH129$ 2earching involves to steps

Source Activation$ 2ource and search methods are activated by the issuance of
an employee re)uisition. 7o actual recruiting takes place until line managers
have verified that a vacancy does exist or ill exist.
Selling$ 2econd issue to be addressed in the searching process concerns
communication. Brganizations alk a tightrope. /n selling the company, both
the message and the media deserve the attention
R:3R6/TM:7T 4RB3:22

E=A!/A+1O2 A2" CO2+RO!

Recruitment process has the objective of searching for and obtaining
applications from job$seekers in sufficient numbers and )uality. Geeping this
objective in mind, the evaluation might include!
/. Return rate of applications sent out
//. 7umber of suitable candidates for selection
///. Retention and performance of the candidates selected
/=.3ost of the recruitment process
=. Time lapsed .ata
Recruitment Met,ods evaluation might include!
a. 7umber of initial en)uiries received hich resulted in completed application forms
b. 7umber of candidates at various stages of the recruitment and selection process,
especially those shortlisted
c. 7umber of candidates recruited
d. 7umber of candidates retained in the organization after six months
Alternatives to
recruitment

%vertime - high wage amount to be paid

&mploee leasing- useful for small and medium

enterprises

Temporar emploment

'eputation from other organi(ations- easil

accessible for e)perienced persons, low cost etc
/t is easier to go don a hill
than up, but the vie
/s best from the top.
;rnold Eennet
Its better not to select
then selecting a bad candidate
FRB64 ./23622/B7
'7B 2hos( H a serious concern for
#R Managers.
Too many jobs chasing too fe
3ompetent 4eople
2:8:3T/B7
#election is the process of
differentiating between applicants in
order to identif * hire those with a
greater likelihood of success in a
job.
#election is the process of picking
individuals , with re!uisite
!ualification * competence to fill
jobs in the organi(ation.
2:8:3T/B7 4RB3:22
2election 4rocess
2election Test
1 Abilit#?Ac,ievement?+rade +ests$ The ability tests measure ho
ell can the candidate perform the tasks in a particular job. /n other ords, it is
a proficiency test of a candidate.
% Aptitude +ests$ All apples are not ripe when they are plucked.
2imilarly all candidates do not come ith prior experience or proven track$
record of their abilities.
& Situation +ests$ 2ituational tests are thought to be very effective in
selection process as they exhibit a candidate(s ability to think, ideate, his5her
decision making ability and many$a$times a reflection of their attitude and
approach.
( 1nterest +ests$ ; candidate(s interest toards a particular career or
occupation may at times be tested by the employers, since a genuine
interest is seen as a precursor to someone doing a good job.
* )ersonalit# +ests$ Most jobs demand a certain set of personality
traits for example a sales person must be extrovert, gregarious, a E4B
executive must be type E to avoid early burnout etc.
- 9eneral A8areness +est$ ; candidate knoledge about the general
economic, social, political and legal environment may be tested at times by
the employers.
. )rojective +ests$ These tests are designed to test the interpretation
that a candidate makes about photos or pictures that he5she is confronted
ith. /t is a type of personality test designed to let a person respond to
ambiguous stimuli, presumably revealing hidden emotions and internal
conflicts.
0 9rap,olog# +est$ Fraphology test is essentially a test of a
person(s handriting. The term graphology as first used by a
9renchman Michon in ">-* and has been derived from the Freek ords
'grapho( meaning '/rite( and 'logos( meaning 'theory(. Fraphology test
can tell a lot about the person H his emotions, his ego, his
idiosyncrasies, his attitude, perception etc.
3#BB2/7F T:2T
Test must be chosen based on the criteria of Reliabilit#@ =alidit#@ Objectivit# and
Standardi3ation
Reliabilit#$ Refers to the standardization of the procedure of administering and scoring the
test results. ; person ho takes a test one day and makes a certain score should be able to
take the same the next day or the next eekend make more or less the same score. Tests
hich produce ide variations in results serve little purpose in selection
=alidit#$ is a test hich helps predict hether a person ill be successful in a given job. ; test
that has been validated can be helpful in differentiating beteen prospective employees
ho ill be able to perform the job and those ho ill not.
Objectivit#$ Ahen to or more people can interpret the results of the same test and derive
the same conclusion0s1. :valuators subjective opinions may render the test useless.
Standardi3ation$ ; test that is standardized is administered under standard conditions to a
large group of persons ho are representatives of the individuals for hom it is intended.
4urpose of standardization is to obtain norms or standards, so that a specific test score can
be meaningful hen compared to other scores in the group. ; standardized test is
administered to a large number of people ho are performing similar tasks
:mployment /ntervie

Intervie is a ,ormal - in-dept" conversation

conducted to evaluate t"e candidate.s accepta$ilit/
0ts popularit stems ,rom its 1e!i$ilit/ 0t allo)s a t)o-
)a e!c"ange o, in,ormation- t"e intervie)er learns
a$out t"e applicant and t"e applicant learns a$out t"e
emploer/

2$3ectives o, 0ntervie)
i/ (elps o$tain additional in,ormation ,rom t"e applicant
ii/4acilitates giving general in,ormation to t"e applicant
suc" as compan policies- #o$- Products manu,actured
etc-/
iii/(elps $uild t"e compan.s image among t"e
applicants
Types of /ntervie

S+R/C+/RE"$ The intervieer uses a preset standardized )uestions hich are

asked or put to all the intervieees. ;lso knon as 'guided( or 'patterned(
intervie.

/2S+R/C+/RE"$ The intervie is largely unplanned and the intervieee does

most of the talking. ;lso knon as 'unguided( or 'unpatterned( intervie

M1AE"$ ; blend of structured and unstructured )uestions is used by the

intervieer hile intervieing the job seekers.

'EHA=1ORA!$ /ntervie is focused on a problem or a hypothetical situation that

the applicant is expected to solve

S+RESS4)RO"/C129$ 2tress intervie attempts to learn ho the applicant ill

respond to the pressure. This techni)ue is more relevant in jobs involving stress.
Types of /ntervie

BT#:R2
1 O2E4+O4O2E 12+ER=1E5$ To participants H /ntervieer and the
intervieee
% )A2E! 12+ER=1E5$ To or more intervieers I the number may go up to
as many as "*.
& )HO2E 12+ER=1E5$ /ntervieer and the intervieee focus on asking and
ansering )uestions, ithout minding of one(s appearance.
( COM)/+ER 12+ER=1E5 $ ; computer intervie re)uires candidates to
anser a series 0-* to "??1 of multiple choice )uestions custom$made for
the job. The ansers are compared ith a bench mark score to determine
suitability of a candidate. This type of intervie can also be used to filter out
undesirable applicants ho have applied online.
* =1"EO 12+ER=1E5$ 4reliminary intervie can be conducted through video
conferencing and candidate surviving here may be re)uired to undergo face$
to$face intervie. =ideo intervie is flexible, fast and less expensive
- SEB/E2+1A! 12+ER=1E5$ /nvolves a series of intervieers, usually
utilizing the strength and knoledge base of each intervieer, so that each
intervieer can ask )uestions in relation to his or her subject area.
3ommon intervie problems

/ntervieers do not seek applicants information dimensions needed for

successful job performance.

/ntervieer may make snap judgments early in the intervie. 3onse)uently, they
block out further potentially useful information

/ntervieers permit one trait or job$related attribute to influence their evaluation

of the remaining )ualities of an applicant. This process is called the Halo effect .
Applicants entire potential for job performance is judged on the basis of a single
characteristic.

/ntervieers have a tendency to be sayed by negative information about the

applicants.

/nformation from intervies is not integrated or discussed in a systematic

manner.

/ntervieers judgments are often affected by the pressure to favour a candidate

or fill the position, hence they loer the standards

/ntervieers judgments regarding an applicant is often affected by the list of

available applicants

Fender, race, and attitudes similar to those of the intervieer may lead to
favourable evaluations.
2teps to overcome problems
.o(s .on(ts
4lan the intervie 2tart the intervie unprepared
:stablish an easy I informal relationship 4lunge too )uickly into demanding )uestions
:ncourage the candidate to talk ;sk leading )uestions
3over the ground as planned Jump to conclusions on inade)uate
evidences
4robe here necessary 4ay too much attention to isolated strengths
or eaknesses
;nalyze career and interests to reveal
strengths, eaknesses, patterns of behavior
;llo the candidate to gloss over important
facts
Maintain control over the direction and time
taken for the intervie
Talk too much
Reference and background 3hecks
Reference c,ec6s serves t8o important purposes$

To gain insights about the potential employee from the people ho

have had previous experience ith him or her.

To assess the potential success of a prospect.

)O12+S +O 'E CO2S1"ERE"$
a. The prospect is likely to approach those persons ho ould speak
ell about him or her
b. 4eople may rite favorably about the candidate in order to get rid of
him or her
c. 4eople may not divulge the truth about a candidate, lest it might
damage or ruin his or her career.

SE!EC+1O2 "EC1S1O2$
The vies of the line manager ill be generally considered in the final selection
because it is he 5she ho is responsible for the performance of the ne
employee. The #R manager plays a crucial role in the final selection

)H<S1CA! EAAM12A+1O2$
; job offer is, often, contingent upon the candidate being declared fit after the
physical examination. The results of the medical fitness test are recorded in a
statement and are preserved in the personnel records.

CO' OFFER$
Job offer is made through a letter of appointment to those applicants
ho have crossed all the previous hurdles. The letter contains a date
by hich the appointee must report on duty.

CO2+RAC+S OF EM)!O<ME2+$
3ertain documents need to be executed by the employers and the candidates
after the job offer been made and the candidate accepts the offer.

Concluding t,e selection process

2election process ill not end ith executing the employment contract. There
is another stepH a more sensitive one H reassuring those candidates ho
have not been selected. 2uch candidates must be told that they ere not
selected, not because of any serious deficiencies in their personalities, but
because their profiles did not match the re)uirements of the company.
:valuation of selection 4rocess
2election is said to be right hen right people are hired for right jobs and at
right time
9our criteria have been used by organizations to ensure that selection
meets the three R
s
!ost to Hire" #ime to Hire " Audit and $uality of Hire
3ost per #ire 034#1! 34# is obtained by dividing the total cost by the number of
hires. Brganizations closely atch 34# to monitor the effectiveness of hiring
function.
Time to #ire 0TT#1 ! TT# refers to the lapsed time beteen notification of vacant
position and the ne hire joins the organization. Most companies have a definite
TT# target
Kuality of #ire ! #iring is )ualitative hen the three R
s
%Right candidate" Right
&ob and Right #ime' are fulfilled
2election 4rogramme ;udit! ;udit must be conducted by people ho ork
independent of the #R department.