Topic

Employee

Recruitment

LEARNING OUTCOMES
By the end of this topic, you should be able to:
1.

Define recruitment and sources of recruitment;

2.

Discuss the choices available to an organisation other than employees

recruitment;

3.

Describe the recruitment process;

4.

Explain the internal recruitment methods; and

5.

Relate the advantages and disadvantages of internal and external

recruitment methods.

INTRODUCTION
In Topic 3, we have seen how human resource planning is done. In this topic, we
will discuss employee recruitment. When an organisation has to conduct a
recruitment process, it should know where to find qualified candidates and how
to attract them to apply for jobs in the organisation.
We will begin this topic by defining employee recruitment followed by a
discussion on alternatives to recruitment. Next, we will observe the recruitment
process and recruitment sources. We will also discuss internal and external
recruitment as well as the advantages and disadvantages of these methods.

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4.1

TOPIC 4

EMPLOYEE RECRUITMENT

RECRUITMENT
ACTIVITY 4.1

Describe what is meant by employee recruitment. Obtain information on

a recruitment process from your employer and discuss it with your tutor
in the myVLE forum.
Once the human resource planning has been done, an organisation will know
whether it has a surplus or a shortage of employees. If it needs more employees
to fill the need for human resource, it will begin the process of recruitment.
Recruitment is a process to find and attract candidates to apply for the job
vacancies in an organisation.
Recruitment is also an important process because any error in the process may
result in the increase of employee turnover, training cost and time wastage in
training new employees who may eventually quit. It is also difficult to terminate
an employee whose work performance is unsatisfactory. Thus, finding a qualified
candidate to apply for the job in the organisation is very crucial during the period
when the organisation needs employees.
Before an organisation carries out the recruitment process, job descriptions and
job specifications must be prepared (Topic 2). Do you remember what is meant
by job description and job specification? Job description contains information on
the duties, functions, and responsibilities of a job and job specification contains
information on the qualifications, skills and the level of education required to
perform the job. Job description and job specification may provide results only
after a job analysis is done. Job description helps a human resource manager to
know the duties of a job while job specification tells us the types of candidate
suitable for the job. After identifying the job and the qualifications, the task to
find a qualified individual capable to perform the job becomes very structured
and simple.
During the recruitment process, the candidates will be informed on the
qualifications required for the job and the prospects of career advancement in the
organisation. Whether or not a vacancy should be filled internally or externally
depends very much on the organisations human resource policies and the
required qualifications. It also depends on the availability of the employees in the
organisation to fill the vacancy and the expansion level of the organisation.
A new organisation that has just started operations or acquired a huge business
contract needs to acquire quickly and simultaneously a large number of

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EMPLOYEE RECRUITMENT

49

employees at all levels. Therefore, it has to carry out external recruitment process.
Alternatively, it might transfer employees from other departments or promote
qualified employees to fill the vacancies.
However, some organisations use other methods than recruitment to meet their
needs. We will study these options in the following topic.

4.2

ALTERNATIVES TO RECRUITMENT

Although the human resource planning of an organisation may verify a need for
additional employees, the organisation may avoid carrying out recruitment. One
of the reasons is that recruitment and selection processes are very costly. The
process of finding prospective employees, interviewing candidates, paying job
agencies and training new employees is very costly for small organisations.
An organisation will avoid carrying out recruitment for the need of human
resource unless it arises only at a specific period. For example, a supermarket
may need additional employees during a sale and a festive season. When a
supermarket recruit employees for that period, the employees will be terminated
after the period. The costs involved are the recruitment cost and lay-off
remuneration payment. It also gives the company a bad image. Hence, how can
this problem be solved?
Among the options include:
(i)

Transferring the Responsibility of Performing the Job or Providing the

Service to Other Companies (Outsourcing)
The decision to shift the responsibilities to a sub-contractor who could do
the job effectively and efficiently may avoid the recruitment of additional
and reducing the size of employees. For example, some companies may
transfer the responsibility of their salary payout to an outside company.
This allows the Human Resource Department to concentrate on other
functions.

(ii)

Employ Part-time and Temporary of Employees

Using part-timers and temporary employees provided by a job agency is an
alternative to employee intake and becomes more common among
companies. These types of employees are normally employed to support the
permanent staff in an organisation especially when there are additional or
specific duties to be carried out. For example, a post office may need
additional employees during the festive season to manage the greeting
cards.

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(iii) Employee Leasing

Employee leasing is a process where an employer terminates the services of
some employees in the organisation and in return, a third party known as
the Organisation for Professional Employees (OPE) rehires them. The OPE
will then lease them back to their original employer. The employee leasing
agency will then perform all the functions of the employers Human
Resource Department such as recruitment, payroll, performance appraisals,
administrative benefits, and other daily human resource activities.
Employee leasing provides the organisation with employees who have the
knowledge and skills of the organisations operations because they were
formerly employed by the organisation. Leasing is not practised in
Malaysia, but it is an alternative to employee recruitment now favoured by
American firms.
(iv) Asking Employees to Work Overtime
Overtime is a method frequently used by organisations when there is
additional workload. Permanent employees in an organisation are asked to
work overtime. This method is much preferred by organisations because
recruitment is not needed and the cost related to the selection and training
of new employees and the organisation can be avoided. For employees,
working overtime means additional income as they are paid based on
overtime rate.

ACTIVITY 4.2
We have discussed several alternatives to recruitment. Provide two
advantages and two disadvantages of each alternative. Compare your
answers with your friends in the myLMS forum.

4.3

RECRUITMENT PROCESSES

Figure 4.1 shows that before a recruitment process is done, an organisation must
formulate human resource planning. This is because through human resource
planning, an organisation will know whether it needs additional employees, the
type of employees needed and the departments that need the employees. If there
is any vacancy, the organisation may in advance study the options available,
rather than recruiting employees to fill the job vacancy. If the additional
employees are needed for a fixed or longer period, it is appropriate for the
organisation to recruit new employees.

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EMPLOYEE RECRUITMENT

51

A recruitment process begins when a manager issues an employee requisition

document. It is a document that identifies the designation of the post to be filled,
the name of the department, the time the vacancy occurred and the due date of
the vacancy to be filled. In an employee requisition document, a manager may
refer to the job specification to determine the qualifications required for the job. It
will be submitted by the department manager where the vacancy exists and be
delivered to the human resource department.
The next step is the human resource officer should determine from the
recruitment sources whether a qualified employee is available.
Recruitment sources are locations that provide qualified individuals whether
from within or outside the organisation. Recruitment methods are methods used
to attract future employees to submit an application to the organisation.
Managers must identify in advance, the recruitment sources before choosing the
method to be used.

Figure 4.1: Recruitment process

Source: Adapted from Mondy, R. W., Noe, R. M., & Premeaux, S. R. (2009). Human
resource management (11th ed.). Prentice Hall International Inc.

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4.4

TOPIC 4

EMPLOYEE RECRUITMENT

RECRUITMENT SOURCES

We had already discussed the supply of human resources that may be obtained
from two sources, within the organisation or from the labour market (outside the
organisation).
The employee recruitment sources that are chosen depend on:
(i)

The Organisations Policies on Human Resource

Organisational policies on human resources may give a huge impact on
employees recruitment. For example, if the policies on promotions of an
organisation encourages that promotion must be done from within, this will
give an opportunity for employees in the organisation to be promoted.
However if the policies discourage promotions from within, the
organisation has to recruit externally.

(ii)

Whether the Skills and Knowledge Required Could be Attained from

Within the Organisation
If a future employee with skills may be attained from within the
organisation, the recruitment process may be done from within. If not, an
external recruitment has to be done by the organisation.

4.4.1

Internal Recruitment Sources

Internal recruitment is done in the form of a job promotion or transfer. The

practice of internal recruitment is a good practice because:
(a)

The Suitability of Candidates is Evident

It is easy to evaluate the suitability of a candidate to a job because the skills
and abilities of the candidate have been identified by the organisation.

(b)

Motivate Employees and Show Organisations Dedication in Staff

Development
Internal recruitment, especially for a higher position, may be motivating.
Promotion is a kind of reward to employees for their efforts and it
encourages them to continue their efforts. It also shows to others that
hardworking employees will be promoted. This will increase employee
morale in the organisation. Internal recruitment also proves that the
organisation is committed to employees career development.

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(c)

EMPLOYEE RECRUITMENT

53

Cost and Time Saving

Internal recruitment is faster and cost saving compared to external
recruitment. The cost and time spent for employee training can be saved
because the employees have already possessed the knowledge and expertise
on the operations of the organisation.

Now, let us discuss the external recruitment sources.

ACTIVITY 4.3
Does your organisation practice the internal recruitment? Discuss the
advantages and disadvantages of internal recruitment based on your
organisations or others' experiences in the class or myVLE forum.

4.4.2

External Recruitment Sources

An organisation has to depend on the conditions of the labour market to recruit

externally. A countrys weak economy and high level of unemployment will
make the process of recruitment easier for an organisation. However, if the
unemployment rate is low and the economy is prosperous, the recruitment
process becomes difficult. Why does an organisation practice external
recruitment? External recruitment is done when an organisation wants:

To fill a vacancy left by an individual who moves or being promoted;

To acquire the skills that are not possessed by the companys employees;

To acquire new ideas and employ employees from various backgrounds; and

To fill the entry level positions.

An organisation may get prospective employees through some external

recruitment sources. Some of them are:
(a)

Colleges, Universities, Vocational Schools and Technological Institutes

These sources are suitable to find candidates with technical and academic
qualifications but have no working experience. Most colleges, universities,
and vocational schools are now more sensitive to certain job needs and they
normally provide students with specific work skills. There are companies
that collaborate with colleges, universities, and vocational schools to ensure
continuous supply of trained individuals in their organisations. There are
companies that offer scholarships to students who are undergoing training,

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EMPLOYEE RECRUITMENT

requiring them to work with the companies for several years upon
completion of their studies.
(b)

Other Companies
Competitors or other companies in the same industry or geographical
location are the most important sources of employees with working
experience. Small companies usually look after employees trained by larger
companies.

(c)

The Unemployed
Everyday there are individuals who leave their current jobs due to many
reasons. Unemployed individuals normally seek for jobs and they become
one of recruitment sources.

(d)

Ex-military Personnel
Some organisations like to employ ex-military personnel as staff because
they believe that these people are disciplined, motivated and have various
skills.

(e)

Self Employed Individuals

Some organisations might consider self-employed individuals for jobs that
require technical, professional and management skills or for jobs that
require entrepreneurship experience in a firm.

(f)

Customers
A customer who knows well an organisation, its services and products may
be an innovative source of recruitment. These customers who are satisfied
and happy with the service or products of the organisation may bring
enthusiasm to the workplace compared to individuals who have lesser
knowledge of the organisation. Customers are also people who use the
companys products or services. As such, they can provide valuable
information as to how the organisation may improve further.
External recruitment depends on the types of vacancy to be filled. For
example, the recruitment sources for the position of marketing manager are
different from clerk. Colleges, universities, vocational schools and
technological institutes are suitable for entry-level positions but these are
not the appropriate places to get employees with high levels of skill and
working experience.
Figure 4.1 summarises the advantages and disadvantages of internal and
external recruitment.

TOPIC 4

EMPLOYEE RECRUITMENT

55

Table 4.1: Advantages and Disadvantages of Internal and External Recruitment

1.

INTERNAL RECRUITMENT

EXTERNAL RECRUITMENT

ADVANTAGES

ADVANTAGES

An organisation may evaluate

accurately the suitability of the
candidates
as
it
has
their
performance records.

2.

Orientation time and cost can be

saved.

3.

To raise employee morale and to

motivate
employees
in
an
organisation as internal recruitment
means that good performance will be
rewarded. This also encourages
loyalty among employees to the
organisation.

4.

No cost incurred or the cost of

recruitment is low. The recruitment
time is also reduced.

1.

Potential candidate is a source of new

idea. To avoid recruitment among
staff.

2.

External candidates may have more

working experience than internal
employees.

3.

The new candidate may posses the

required skills and new knowledge.

DISADVANTAGES

DISADVANTAGES

1.

Lack of new ideas.

1.

External recruitment incurs high cost.

2.

Candidates who do not succeed may be

disappointed
and
leave
the
organisation.

2.

More time is needed to select suitable

candidates among the applicants.

3.

3.

The recruitment may be influenced by

office politics.

4.

No employees have the ability or skills

required by the organisation.

Chances of selecting unsuitable

candidates may be higher as the
organisation doesnt have reliable
information on the performance of the
candidates.

4.

The organisation may offend internal

candidates for choosing external
candidates.

5.

An orientation must be done to inform

the new employees on the work
culture
and
the
organisations
operations.

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4.5

TOPIC 4

EMPLOYEE RECRUITMENT

RECRUITMENT METHODS

As mentioned in the beginning of this topic, managers must identify the

recruitment sources before choosing the recruitment method. For example, if a
company is looking for a director of human resource with not less than eight
years experience and no employees in the organisation fits the criteria, most
probably the candidate is working for a competitor or is self-employed. After
determining the recruitment sources, the recruitment officer will choose the best
method to attract qualified candidates.
In this topic, we will examine the recruitment methods suitable for internal and
external recruitment sources.

4.5.1

Internal Recruitment Methods

An effective internal recruitment method must be able to discover qualified

individuals who considered themselves qualified to apply for the job vacancy.
(a)

Skills Inventory System and Management Inventory

An organisation may use a skills inventory system and management
inventory to find qualified individuals in an organisation. Do you
remember the skills inventory system and management inventory discussed
in Topic 3? Management inventory contains detailed information on
managers and is used to identify individuals who have the potential to
move up to higher position. Skills inventory system contains information on
the readiness of a non-managerial employee to move to higher position or
other level in the organisation. As a recruitment tool, both inventories are
very useful as an organisation can determine whether qualified employees
are readily available to fill a job vacancy. However, the information in the
inventory must be updated and well kept or it might be difficult to decide
which employee has the required ability for the vacancy.

(b)

Job Vacancy Announcement and Job Bidding

An organisation may use the announcement method to publicise vacancies
to its employees. Previously, job vacancy was advertised by posting a notice
on a notice board of the organisation. It contains the job specifications, the
job descriptions and the details of the contact person.
Now, as computers are widely used, some organisations develop computer
announcement systems and job bidding. Some organisations display the
notice of vacancies in their website.

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EMPLOYEE RECRUITMENT

57

Bidding is a method that enables any qualified individuals in an

organisation to apply for the vacancy. Normally, interested employees have
to make an application through their supervisors. This is to ensure that the
supervisors are informed about the employee who applied for the position.
Among the advantages of the job vacancy notice are:

To avoid employees from saying that they are not aware of the job
vacancy until the post has been filled;

It reflects the transparency of the organisation; and

It gives employees the opportunity to develop their career in the

organisation.

However, this method has some disadvantages. The computer based jobannouncement system and job bidding is costly and time consuming. When
an applicant fails to get the job, he must be given an explanation why he is
rejected. If attention is not given to ensure that the most qualified employee
is chosen for the position, other employees may lose trust in the
organisation.

4.5.2

External Recruitment Methods

Sometimes, an organisation has to carry out external recruitment, especially

when an organisation wants to increase the size of the labour force. As discussed
earlier, there are several sources for external recruitment. In this section, we will
study the methods that can be used by the recruitment officers to attract
individuals in the labour market to apply for jobs in the organisation.
(i)

Advertisement in Mass Media

The advertisement of a job vacancy is a method that uses the media like
radio, television, newspapers, or trade journals to inform the public of job
vacancies in an organisation. However, the cost of advertising on television
is very high and this method is rarely adopted by the public sector.
The private sector normally opts for newspapers. One of the advantages is it
gives a wider coverage because of the circulation, and the cost is low.
However, advertising method has some disadvantages. Among them is
non-qualified candidates may apply for the vacancy. This complicates the
selection process and results in unsuitable candidates being chosen.
Longer time is needed to prepare the advertisement in a newspaper. The
choice of phrases, content and the design of a job vacancy advertisement

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must be attractive, it must be precise and not lengthy. To prepare a job

vacancy advertisement, the Human Resource Management Department can
collaborate with experts from the advertising companies.
Organisations can also use radio, journals, and billboards to advertise their
job vacancies. For example, if an organisation is looking for a manager of
human resource, they may place an advertisement in the MIHRM journal
(Malaysian Institute of Human Resource Management). Some organisations
advertise their job vacancies through radio.
(ii)

Headhunter and Professional Recruitment Agency

Headhunter is an organisation that assists companies to recruit employees
and individuals to find jobs. Headhunters services are usually needed for
non-managerial, part-time and temporary staff recruitment. Using
headhunters services can save time in the selection process as recruitment
officers dont have to advertise or screen the application forms.
Professional Recruitment Agency helps organisations to find qualified
individuals for job vacancies by matching their qualifications with the
vacancies. Usually, this agency helps organisations to find individuals for
management posts.

(iii) Job Recommender

Job recommenders service is suitable for job vacancies that face a tight new
market. The employees in an organisation will announce the job vacancies
to their friends or relatives. Normally the candidates they recommend are
good employees. Some organisations pay incentives to job recommenders to
encourage their efforts.
(iv) Unsolicited
An organisation with a reputation of being a good place to work will
receive applications from individuals searching for jobs. If there is no
vacancy at that time, their applications will be filed and reviewed when
there is any suitable vacancy in the future.
(v)

Career Day/Week
Sometimes an organisation or a group of organisations organises a career
day/week to attract a large number of candidates. Guidance and
counselling units of a college or university may also organise career
exhibitions to help final year students find jobs. As a method of recruitment,
career day/week gives organisations the opportunity to meet a lot of
candidates in a short period. The cost involved is lower than other
recruitment methods.

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59

(vi) Practical Training

In many local universities and colleges, students are required to undergo
practical training in private organisations, or government departments for a
specific period. They will be placed in organisations that have agreed to
accept them to expose them to business practices. They may contribute to
the organisations by carrying out their duties. Organisations that accept
these practical students may observe their performances and after
completing their studies, potential candidates may be offered to work in the
organisation.
(vii) Recruitment through Internet
Advertising on the net is a method of recruitment used by companies to
attract future employees. The recruitment officer may advertise a job
vacancy on the organisations website or a special website specially
designed for advertising job vacancies. For example, on Job Street
(www.jobstreet.com) and jobsDb (www.jobsdb.com), vacancies are
arranged according to job categories (management, marketing, technical
etc.), locations or salaries offered.
Advertising via the Internet is cheap compared to advertising through print
media. A vacancy may be advertised for a period of time on a fixed rate of
payment. Advertising on organisational websites also allows easy updating
of the advertisement, and it may attract individuals from around the world.
Websites like jobstreet and jobsdb.com also enables job seekers to send their
applications via email. However, the recruitment officer must constantly
update the website to maintain the image of the organisation. Vacancies that
have been filled must be taken off the website.
The recruitment method used depends on the labour market and the
position of the job vacancy in the organisation. In a tight labour market, an
organisation may have to use a combination of methods to attract qualified
candidates. For example, an organisation may have to advertise, use job
recommenders and get the service of employment agencies to fill the need
of the labour force. However, during an economic downturn, with a high
level of unemployment, many individuals are looking for jobs. During this
time, an organisation dont have to use creative recruitment methods to fill
the needs of the workforce.

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Every organisation is different. Therefore, the types and qualifications of

employees required to fill a job vacancy in an organisation also differ. So,
recruitment must suits the needs of the company.

The sources and methods used are also different, depends on the types of
position to be filled.

In this topic, we have discussed the recruitment process, how to carry out
staff recruitment and the methods of recruitment.

You should be able to differentiate the different methods and sources of

recruitment and to describe the situation when an organisation may carry out
external or internal recruitment.

Announcement method

Job bidding

Recruitment sources

Recruitment methods

Management inventory

Headhunter

1.

Explain the terms:

Management inventory:
Skills inventory system:
Job vacancy announcement:

2.

Fill in the blank for each statement by selecting an appropriate answer from
those given in the box below:

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61

Employee leasing

Recruitment sources

Management inventory

Job bidding

Recruitment methods

Recruitment

Employee requisition
documents

Headhunter

(a)

______________ is a process to find and encourage candidates to apply for a

job vacancy in an organisation.

(b)

______________ is a process when an employer terminates the services of

several employees who are then hired by a third party known as the
Organisation for Professional Employees who will hire them to the original
employer.

(c)

______________ is a document that contains the name of the post to be

filled, the name of the department where the vacancy exists, and the due
date to fill the vacancy.

(d)

______________ are places where you can get qualified individuals.

(e)

______________ are methods that may be used to attract prospective

employees to apply for jobs.

(f)

______________ contains detailed information on managers and is used to

identify potential individuals to be promoted.

(g)

_____________ is a method that allows qualified individuals in an

organisation to apply for a suitable position.

(h)

An organisation that helps companies to recruit employees and individuals

to find jobs is called ___________________.