RECRUITMENT

HRM

Recruitment and selection Recruitment

is the process of generating a pool of capable people to apply for employment to an organization.

Selection
is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons most likely to succeed in the jobs, given management goals and legal requirements.
HRM

Recruitment and selection

HRM

Recruitment and selection

Recruitment and selection are vital to the formation of a positive psychological contract, which provides the basis of organizational commitment and motivation. The attraction and retention of employees is part of the evolving employment relationship, based on a mutual and reciprocal understanding of expectations.

HRM

Recruitment and selection

There are wide variations in recruitment and selection practices, reflecting an organizations strategy and its philosophy towards the management of people. Progressive HR practices are crucial to a positive psychological contract this includes attention to effective recruitment and selection practices.

HRM

Factors Governing Recruitment - External

Supply

& Demand Unemployment Rate Labour Market Political-legal Sons of Soil Image

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Factors Governing Recruitment - Internal

Recruitment
HRP

Policies

Size
Cost Growth

& Expansion

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The Selection Process

The

most important HR decision is whom to hire

Initial Selection
Applicants who dont meet basic requirements are rejected.

Substantive Selection

Applicants who meet basic requirements, but are less qualified than others, are rejected. Applicants who are among best qualified, but who fail contingent selection, are rejected.

Contingent Selection

Applicant receives job offer.

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Stage 1: Initial Selection Initial selection devices are used to determine if basic qualifications for the job are met
Devices
Application Forms

include:

Good initial screen Must be careful about questions asked legal issues

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Stage 2: Substantive Selection

These

devices are the heart of the selection process

Written Tests
Testing applicants for: intelligence or cognitive ability, personality, integrity, and interests Intelligence tests are the best predictor across all jobs

Performance-Simulation Tests
Based on job-related performance requirements Work Sample Tests
Creating a miniature replica of a job to evaluate the performance abilities of job candidates

Assessment Centers
A set of performance-simulation tests designed to evaluate a candidates managerial potential
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Another Substantive Selection Device

Interviews Types
Are the most frequently used selection tool Carry a great deal of weight in the selection process Can be biased toward those who interview well Unstructured (randomly chosen questions)

of Interviews

Structured (standardized sets of questions)

Most common, least predictive, and prone to bias

Behavioral structured (asking how specific problems were handled in the past)
Past behaviors may be good predictors of future behavior

More predictive of job success; less chance for bias

Interviews

most often used to determine organization-individual fit

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Stage 3: Contingent Selection

Final
Background Checks

checks before hiring

Most employers want reference information, but few give it out litigation worries Letters of recommendation are of marginal worth May use criminal record or credit report checks

Drug testing
Controversial: perceived to be unfair or invasive U.S. Supreme Court ruled that this is not an invasion of rights Expensive but accurate Alcohol not generally tested for
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Recruitment Planning

Recruiting Yield An example Initial Contacts : 2000 Invited for Screening Interviews : 200 ( 10:1) Invited for Final Interview : 40 ( 5:1) Job Offers : 30 ( 4:3) Joinees : 20 ( 3:2) Yield ratio is 2000: 20 : 100:1 The yield ratios will differ from company to company, position to position The yield ratios would also depend on the market situation, e.g., booming market, recessionary market etc.

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Recruitment Sources
Having

arrived at number of contacts to be made, the Recruitment team has to decide on sources of contacts External Sources : Advertising
Advertising Media :
Print Media - Newspapers, Magazines, Hoardings etc Internet Portals like Naukri, Monster, Jobstreet etc. Electronic Media TV, Radio Inserts Target Localities Cafes, Restaurants How?

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Recruitment Sources
Employment

Have a large pool of resources Capable of headhunting

Agencies & Search Firms

Can Target specific organizations

Costs vary from 1 months salary going upto even 25% of annual CTC
Post the recession hiring organizations are negotiating lower fees

Good Agencies have networks with other agencies and share the fees Number of international search firms are in India now Pitfalls The agency should
Understand the job description well Be able to screen Should not be forwarding CVs downloaded from portals
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Recruitment Sources
Contractors
They keep people on their roles and offer them to the companies at a monthly fee At times there is a hire clause, say after six months of contracting with or without a fee Disadvantages in India
Good candidates may not like to get attached to a contractor Some low end contractors pay out salaries based on cash flow from their customer in India a contractor would typically need around three months salary as working capital

Very popular in the US / Europe Some overseas companies (clients/contractors) popularizing this in India
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Recruitment Sources
Employment Exchanges
Around 1000 exchanges exist in India All set up under The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 Act requires all Industrial Establishments to notify the vacancies before they are filled in Particularly useful in recruiting blue collar, white collar and technical workers In 2003, 945 exchanges had a total no. of:
5.46 M registered applicants Placed 0.15 M (8.1%) Had 0.26 M vacancies notified (60.5% filled)

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Recruitment Sources
Professional & Trade Associations
Good Source for domain / technology based hiring The entire membership community of the association can be targeted through this means Job openings can be communicated through:
Advertisement in Association Publications Advertisement in the Associations Web Page Setting up a counter in an Associations exhibition Posters / Fliers in Associations events like seminars / conferences

Useful for highly qualified and trained resources Very useful for hard-to-fill technical positions

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Recruitment Sources
Job Fairs
Usually hosted by a Recruitment Agency or Print Media, e.g., The Hindu Job Fair, Times Jobs etc. Sponsored by large organizations who see it as a branding exercise also Tests / Interviews are conducted in the fair itself and even offers made in some cases Very useful for filling entry level positions like ITES executives etc. For lateral hires, recruiters use this forum to do the initial screening and shortlisting for further processing For certain levels of hiring very cost effective

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Recruitment Sources
Employee

Through an internal posting existing employees are encouraged to refer candidates from their friends circle etc. For a successful hire, the referring employee is paid an incentive Works very well in most organizations
The referring employee knows the requirements and culture of the company well and hence is able to communicate that to the referred candidate Screening requirements are much less Attrition of selected candidates is less

Referrals

Does not work well in a situation where the existing employees are not happy
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Recruitment Sources
Campus

Primarily used for hiring freshers In some campuses lateral hiring can also be done Steps:
Pre-Placement Presentation Notification of openings Receipt of Applications Initial Screening Selection Tests Interviews Offers

Hiring

Care has to be taken in choosing colleges, getting an early slot Best to avoid agents The recession effect on Campus Hiring
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Recruitment Sources
Campus

Companies very successful in this method are Hindustan Unilever, TCS, Infosys, WIPRO, HCL, ICICI Bank, MNC Banks and Financial Institutions Bigger companies have a Campus Connect program
Getting involved in various exchange programs with few selected colleges Programs to provide specific training inputs to faculty Weekend training programs for selected students helps in reducing training costs post their joining

Hiring

Post joining deployment of Campus Hires have to be well planned to avoid high bench costs Some organizations like Oracle India run Off-Campus hiring programs through walk-ins Captive campus hiring from specialized training institutes for industries like airlines, hospitality etc.
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Recruitment Sources
Other

Outplacement Firms New in India. They normally provide free job postings on their websites. Direct Mails mailing list is a bottleneck Former Applicants Database is always a problem. Companies do not want to invest in Database upkeep Former Employees Good idea to check the exit interview Interns/ Summer Trainees potential pool Special Interest groups like older workers, housewives, physically challenged people Word of mouth Reference from previous or existing manager For wider coverage best done through Internal Job Posting Scanning the present bench strength for AFDs
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Sources

Internal

Sources

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Recruitment Sources
E

Companys own website.

Make Job Listings easily accessible Keep Postings current Avoid slow-to-load images Make the site navigable with hypertexts, e.g., an opening for a Product Managers position can have a hypertext link to the Product details and markets page in the website Respond to applicants quickly Screen out unqualified candidates, e.g., Texas Instruments performs a Fit Check for all on-line applicants and recruiters proceed after reviewing the Fit Check results Allow multiple job application options like on-line resume builder, Cut and Paste options, Resume Upload etc. Provide information about the organization, its products & services, the work culture, the benefits of working here Provide other information like location of job, health cover, conveyance, housing, schools, recreational & cultural activities etc.
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Recruitment Sources
E

Job Portals

recruitment
Used by recruiters to download relevant resumes based on their selection criterion Used by companies to advertise open positions normally has a link to the companys website Pitfalls of CVs in portals is the age of the CV Some portals offer services to aspiring candidates for resume writing, forced push to 500 1000 recruiters and tailored weekly emails highlighting the weeks new openings in the candidates area of interest. Some portals provide paid screening services to their clients for an additional fee. While postings jobs on these portals the same guidelines discussed earlier for Company portals need to be followed Can be used by organizations to convey general messages, e.g., the HCL message on fraudulent mails

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Recruitment Sources
E

Social Networking Sites

Linkedin, Facebook and Twitter are three of the best known Recruiters have to tread carefully because of Privacy policies Useful for sourcing resumes of people who are not looking for a change Recruiter has to register as a user Locate a profile and seek permission for getting included in the network If the target candidate agrees then the recruiter becomes part of the network and then can approach the target candidate for possible interest. The other way is to request a networked person to recommend to the target person to include the recruiter in the network Linkedin is, construct wise, the best. A new method is to create interest groups in Facebook or Twitter and get people to enrol as fans or followers Viral Marketing

recruitment

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