Factors that Influence the Recruitment Process

Given its key role and external visibility, recruitment is of course influenced by several factors. These include both external and internal forces.

External factors

Of particular importance is the supply and demand for certain qualifications on the labor market. If the demand for a certain qualification is high in relation to the supply, an extraordinary recruitment effort may be necessary. For example, the demand for programmers and financial analysts is likely to be higher than their supply, as opposed to the demand-supply ratio for non-technical employees.

If the unemployment rate in a particular area is high, the company's recruitment process may be easier. The number of unsolicited applicants tends to be larger, and the larger size of the labor pool provides better opportunities to attract qualified applicants. On the other hand, as the unemployment rate falls, recruitment efforts need to be stepped up and new sources developed.

For a long time, the problem of unemployment haunted everyone around the world. Policy makers, politicians, administrators, trade union leaders and academics frequently addressed the problem. Not any more today. One and a half decades of liberalization have resulted in economic prosperity making people forget unemployment. It is now about employability and no longer about unemployment. Every person who is capable of doing something has the certainty of getting a job, in the private sector of course.

Labour market conditions in a local area are of paramount importance when recruiting for most non-executive, supervisory and middle management positions. However, when it comes to recruitment for senior and professional positions, the conditions of all markets are important.

Another external factor is political and legal considerations. Reserving jobs for SCs, STs, minorities and other backward classes (OBCs) is a political decision. There are good reasons to give preference to people from disadvantaged social classes. Reservations have been accepted by all sections of society as inevitable. The Supreme Court has also agreed to a 50 percent reservation of seats and jobs.

We have central and state laws that deal with labor. They concern working conditions, pay, pensions and the health and safety of workers in industrial enterprises. There are laws that deal with recruitment and selection. For example, the 1986 Child Labor (Prohibition and Regulation) Act prohibits the employment of children in certain jobs and seeks to regulate their working conditions in certain other jobs. Similarly, we have the Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, which requires employers (industrial companies with 25 or more employees each) to report vacancies to employment agencies. The Apprentices Act, 1961, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Factories Act, 1948, and the Mines Act, 1952, also deal with recruitment. Above all, however, we have the Constitution, which prohibits discrimination in employment matters and also provides for protective discrimination against the less privileged sections of society. The preferential treatment of the sons of the soil is another political factor. The political leaders demand that the people of their respective states must be preferred in employment matters.

The company's image is also important in attracting a large number of job seekers. Blue chip companies attract a large number of applications. Often it is not the money that is important. It is the job seekers' perception of the company that plays a role in recruiting qualified potential employees.

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Internal factors

These are some of the external forces that influence the recruitment function of an organization. In addition, there are certain internal forces that should be considered when recruiting personnel.

One such internal factor is the recruitment policy of the organization. Most companies have a policy of internal recruitment (from their own employees) or external recruitment (from outside the organization), similar to the make-or-buy policy in inventory management. In general, this policy consists in giving preference to internal recruitment, as the company's own employees know the company well and can recommend candidates that fit the culture of the organization.

Another related policy is to employ temporary and part-time staff. A company that hires temporary and part-time employees is in a less advantageous position to receive enough applications.

In multinational companies (MNCs) there is a policy regarding the recruitment of local citizens. MNCs operating in our country prefer local citizens because they can better understand local languages, customs and business practices.

An important internal factor that can determine the success of the recruitment program is whether or not the company participates in the HRP. In most cases, a company cannot recruit potential employees in sufficient numbers and with the required skills overnight. It takes time to examine the alternatives in terms of suitable recruitment sources and the most productive methods. Once the best alternatives have been identified, recruitment plans can be drawn up. An effective HRP greatly facilitates the recruiting efforts.

Size is another internal factor that influences the recruitment process. An organization with a hundred thousand employees will find recruiting less of a problem than a company with only a hundred employees.

Recruitment costs are another internal factor that needs to be taken into account. Recruitment costs are calculated per new hire, and this figure is considerable nowadays. Recruiters must therefore stay within budget. A careful HRP and the foresight of the recruiters can minimize the recruitment costs. One cost-saving measure is, for example, recruiting for several open positions at the same time. The best solution is to reduce employee turnover through proactive staffing practices to minimize the need for recruitment. Assessing the quality, quantity and cost of recruitment helps ensure that it is efficient and cost-effective.

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Finally, an organization that grows and expands will have more recruits available than an organization whose assets are declining.