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By Dr. Debashish SenguptaHuman Resource Management

Recruitment5CHAPTER

Human Resource Management3Key Terms

Descriptive Statistical Methods Employability Employer Brand Factors Affecting Recruitment Inferential Statistical Methods Internal Factors Political and Social Environment Technological Environment

Human Resource ManagementRecruitment

4Recruitment 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. Blame it on the positive market indicators. But what is also significant to note here is that - the higher attrition in these buoyant times in the market is also playing its role in increasing these hiring numbers. This is where hiring assumes higher significance in todays context. Hiring is not just about increasing headcount but also finding, attracting and roping-in right candidates who are more retainable.

Human Resource ManagementSpecies of Candidates to be Avoided

5Recruiting wrong candidates and then thinking ways and means to retain them is not going to work. Let us have a look at some species of candidates whom recruiters should give a miss: a. Paper Tigers: Recruiters generally weed-out the visibly over and under qualified candidates but they often fall into the tarp of paper tigers. These are those candidates who have qualifications and degrees on their resumes however lack real knowledge and skill. They may turn turtle when it comes to real job performance.

Human Resource Management6b. Money Grubbers: These are candidates who use the new job offers to bargain with their current employers. Such candidates shall always show too much enthusiasm on the package even before the selection process has begun. These money grubbers are better avoided.

c. Ever-seekers, Never-keepers: Frequent job-hoppers are a dangerous species as although they may have worth on paper, their loyalties shift over-night. These candidates cannot be trusted.

Human Resource ManagementRecruitment Objectives

7Recruitment, 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 follows:

1.To maximize the pool of applicants so as to provide sufficient choice at the time of selection. However 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.

Human Resource Management82. To create this pool of applicants at a minimum cost possible. This is not to suggest cutting corners but keeping the cost under control, always keeping an eye on cost per hire.

3. To create a pool of applicants who 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 equal opportunity to all.

Human Resource Management95. `To ensure that the recruitment procedures and steps have clarity, validity and consistency in application.

6. To ensure that the recruitment policy is in line with the legal requirements of the land and also meets the various social obligations of the firm.

7. To train the pool of applicants so as to maximize their chances of selection and hence improve the success rate of the selection process.

Human Resource ManagementVarious Factors Affecting Recruitment

10The factors that affect recruitment can be broadly classified into External and Internal factors.External FactorsThe factors external to firm affecting recruitment are classified under external factors. They are:1. Labour Demand and Supply: Demand and supply situation of labour in the market is bound to have an impact on the recruitment. If the supply of labour is in shortage, the firm tends to look within (internal recruitment) to fulfil its demand. Shortage of labour may also increase the price which a firm is ready to pay to acquire labour from outside.

Human Resource Management112. Employability: The shortage is always not only in terms of headcount but also in terms of skill-gap i.e., the labour largely lack the skill required 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 new 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.

Human Resource Management123. Employer Brand: The image of the firm at large especially in the eyes of the probable candidates has an impact on the recruitment of the firm. Companies with strong employer brands are able to attract more and better candidates. Hence a strong employer brand has a positive impact on the recruitment function.

Human Resource Management134. Political and Social Environment: Politically the state or regional governments are dedicated to increase the prosperity of their state/ region. There are companies who enter into MoU (Memorandum of Understanding) with the state/regional governments to reserve x percentage of the total vacant positions for the persons, domicile of the respective state/region. The firms must honour such commitments. Similarly, there are companies whose recruitment is impacted by the social obligation that they feel for themselves.

Human Resource Management145. Technological 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 with new skills but also proactively keep on doing the same. New skills are not easy to recruit and companies may at several times have a problem with employability.

Human Resource Management156. Legal Environment: Legal considerations have to be kept in mind while recruiting for the firm. For example, in India there is reservation where 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.

Human Resource Management167. Unemployment Rate: Higher unemployment rate in a country definitely outs the supply on the surplus side and stimulates a firm to look for cheaper options.

8. Competitors Strategy: The companies generally are affected by the recruitment strategy adopted by the competing firms.

Human Resource ManagementInternal Factors

17The factors specific to the firm are referred to as internal factors. They are:

1. HRP or Not: Companies who 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.

Human Resource Management182. Size of the Firm: The size of the firm also impacts recruitment. If the size of the firm is small then the recruitment is mostly reactive in nature where it is mostly targeted towards fulfilling present demands. Smaller size firms also would look for more conservative sources of recruitment rather than the ones which offer more costly ones.

3. Recruitment Policy of the Firm: Every firm has its own recruitment policy by which it determines the timing, cost and process of recruitment that it shall follow. For instance, the choice between internal and external sources, e-recruitment or not, temp-hiring or not, window shoppers or planned hires, etc.

Human Resource ManagementSources of Recruitment

19A. Internal Sources

Internal 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. All of them shall qualify as internal recruits.

Human Resource Management20B. External Sources

The external sources of recruitment may be classified broadly under two types: the traditional and non-traditional sources of recruitment.

a. Traditional Sources: The traditional sources of recruitment include the following:

i. Recruitment Advertisements: Most common source of recruitment. However, a company decides the reach, frequency and consequently the cost of such ads vis--vis the benefits accrued in terms of recruitment.

Human Resource Management21ii. Employee Referrals: These are candidates who are referred to the companies by their own employees.

iii. Campuses: Freshers are often recruited from the educational campuses. The companies have an opportunity thus to catch the university graduates young.

iv.Recruitment Consultants: Variety of recruitment consultants flood the market and they provide the firm with variable recruitment options.

Human Resource Management22b. Non-traditional Sources

i. Boomerangers: These are those workers who used to work for a particular firm sometime back, then left and are now eager to comeback to the fold. This may be a win-win situation for both parties as both would have learnt from each other mistakes and also may have realized each others value. A boomeranger is likely to be more retainable.

Human Resource Management23ii. Retired not Hurt: These are retired people who have much steam left in themselves.

iii. Re-entry Workers: These are those categories of workers who used to work before and left due to certain reasons but now with toughening economic situation are eager to come back to work.

iv. Students & Housewives: Part-time workers who are eager to make some money in their spare time come in such forms.

Human Resource ManagementRecruitment Function

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Human Resource ManagementRecruitment Process

25The recruitment process starts with determination of demand and nature of demand of human resource i.e., number and type of people required by the firm. An estimation of the possible sources of supply and also the sufficiency of such sources is done to find out whether the firm can meet its human capital needs or not. Such activities are covered under the broad head of human resource planning (HRP).

Human Resource ManagementRecruitment Advertisements More than a Vacancy Announcement

26Communication has that power to transform peoples perception and ignite their energies. Mark Antonys famous funeral speech Friends, Romans, Countrymen in the epic play Julius Caesar by Shakespeare is another classic example of strategic use of communication.Today, recruitment advertisements have changed from a plain announcement of vacancy to a strategic corporate communication tool. They do much more than merely announcing a vacancy. On careful study, it is found that recruitment advertisements use the marketing principle of positioning.

Human Resource Management27Career Positioning: The advantage with this type of positioning is that the prospective applicant does not only look at the job at hand, but is also attracted by the career opportunities that a company promises.

Employee Positioning: Through depiction of photographs or interviews of present employees, a kind of image about the kind of people who work for the company and the experiences they had working for the company is created.

Human Resource Management28Workplace Positioning: Todays employee does not only look at the job or its remunerative aspects alone. The work culture and workplace environment also plays a critical role in decision-making. Thisexplains the need for workplace positioning.

Corporate Positioning: A famous detergentadvertisement of yesteryear depicted a lady quizzing how her friends sari is whiter than her. Comparison is at the core of human tendencies. When competitive jobs are on offer, candidates often compare the corporate brands and image. Hence corporate positioning plays a crucial role.

Human Resource ManagementRecruiting the Right One

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Human Resource ManagementMimobile

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Human Resource ManagementAktwoods

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Human Resource Managemente-Recruitment Advertisements

32Companies are focusing on finding more cost-effective ways of conducting operations. Hiring is not untouched by the same. Companies are resorting to cost-effective hiring by using strategies like just-in-time hiring, hiring in relatively small numbers,etc. Experts suggest that during these times of cost-cutting, recruitment advertisements remain a major concern because of the cost associated with them.

Human Resource ManagementAdvantages of e-Recruitment Advertisements

33e-Recruitment advertisements have certain advantages as compared to ads in the traditional media. Some of them are:Reduced CostsResearch shows that e-recruitment advertisements are 80% cheaper than newspaper advertisements and about 10 times cheaper than hiring consultants. According to a survey by Monster India, a job portal, the average cost per hire using traditional media varies from Rs. 25,000 to Rs. 100000 for senior position.

Human Resource Management34Reduced Time to Hiree-Recruitment advertisements can be accessed from anywhere, 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.

Increase Efficiency of the Process e-Recruitment advertisements can be combined with data warehousing and data mining tools, online screening and testing tools, which increase the efficiency of the process.

Human Resource ManagementSWOT Analysis of e-recruitment Advertisements

35StrengthsAccording to the latest data released by Internet Governance Forum, India as on 31 March 2012 had 121,000,000 (Twelve Crore Ten Lakh) internet users, out of its total population of 118,917,906 (nearly 119 Crore), which is 10.2% of the population. India ranks third in the world in terms of number of internet users.

The number of Internet users has grown from about 5 million in the year 2000 to 121 million in March 2012, which is a phenomenal growth.

Human Resource Management36WeaknessesWhile the number, 121 million Internet users looks huge, it represents only 10.2% of the population, which definitely is very small. In US, around 78.3%, and in Japan 80% of the population uses the Internet).

The number 121 million users also include occasional Internet users. Hence the number of active Internet users may actually be quite low.

Human Resource Management37OpportunitiesIn emerging markets like India, the average annual growth rates are expected to be between 10-20% in the coming few years. It is also estimated that by 2015, with more than 300 million users, India will be ranked second in the world after China on the parameter of Internet usage.

The recent launch of a translator that can instantly translate an English webpage or document into 47 Indian regional languages will definitely attract many more users.

Human Resource Management38ThreatsLack of awareness of Internet as a medium among a large section of the population.

Overall low comfort level with the English language, especially in smaller cities and villages.

The number of cyber cafes in the country has come down due to tightened security measures and thinner profit margins. (IMRB international).

Human Resource ManagementSocial Media Recruitment

39Social Media is revolutionising the world in a big way and recruitment is not untouched by the same. Companies are using the Web 2.0 applications including social media/networking sites (Face book, Twitter, Orkut, LinkedIn, MySpace), blogs, podcasts (Podcast Alley, iTunes), video sharing sites (YouTube, Ted, FlickR), mobile apps etc for recruiting people. Social Media recruitment not only widens reach but helps segmentation, targeting and positioning of potential job seekers.

Human Resource ManagementDefining RPO

40What talent acquisition activities are organizations referring to when they say they use RPO? Our study found a general consensus that RPO is the selective outsourcing of some recruiting activities. Results reveal that 73 percent of responding organizations believe that RPO is the outsourcing of some or most recruiting processes, while only 16 percent define RPO as the outsourcing of all recruiting activities for, at least, some levels of employees

Human Resource ManagementWhy Use RPO?

41Now that we know how users define RPO, the next question is: Why do they use RPO? It is unlikely that the decision to turn over parts of such a key talent management process (recruiting) to a third-party service provider is taken lightly.

Human Resource ManagementWhat Recruiting Practices Drive RPO Today?

42Before determining the specific recruiting practices included in most RPO programs today, we sought to discover which practices organizations viewed as most critical. Figure 5.9 clearly shows that most organizations agree or strongly agree that all of the major practices presented are important. Even the lowestranked practice - permanent hiring services - was viewed by most respondents as 21 critical part of their talent acquisition program.

Human Resource ManagementLinking Strategic Priorities and Recruiting Practices

43Strategy & AnalysisTalent strategy development/consulting, employer branding, talent research, and measuring success of recruitment process (metrics)

Tactical Recruiting: Active recruiting, passive recruiting, and applicant tracking management.Skill-based: Skill training and skill assessment.Staffing Services: Permanent hiring services and temporary and contingent staffing services.

Human Resource ManagementRPO - Challenges and Opportunities

44Results from the survey point to key challenges in the use of RPO in the future. The first challenge is the need to address strategic, rather than tactical, priorities with RPO. Three recruiting practices that comprise the core of a strategic approach to talent acquisition - talent strategy development/consulting, employer branding, and measuring success of recruitment process (metrics) - currently are the least likely practices to be outsourced.

Human Resource ManagementConclusion

45Our study confirms the findings of other recent reports on RPO (Recruitment Process Outsourcing). For most organizations, RPO means the outsourcing of selected recruiting activities for selected levels of employees - the definition used by 73 percent of our surveys respondents, Given that definition, we found that RPO is an important component of most talent acquisition processes today, with 59 percent of organizations currently outsourcing some or all oftheir recruiting services.

Human Resource Management