Pgdm (aicte)

PGDM (AICTE) RECRUITMENT SELECTION & RETENTION MANAGEMENT

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UNIT -3 • Sources of Recruitment • Advantages and Disadvantages of Internal and External Sources of Recruitment • Methods of Recruitment • Recruitment Practices in India • Evaluation and Benchmarking of Recruitment in an Organization 2

SOURCES OF RECRUITMENT There are two sources of recruitment. They are: • Internal sources of recruitment. • External sources of recruitment.

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INTERNAL SOURCES OF RECRUITMENT • Hiring acquaintances and relatives/dependents of existing employees. • By promotion and transfer of existing employees • From employees on leave, long courses deputations or on lean 4

INTERNAL SOURCES OF RECRUITMENT • From those who left the organization for want of suitable vacancies/promotion changes. • Separated by resignation or on lay offs, etc. • From trade unions. In US, trade unions hire the entire needs of unskilled/semiskilled hands. 5

EXTERNAL SOURCES OF RECRUITMENT External sources of recruitment are the following: • New entrants in labor markets as fresher from schools and colleges • Educated unemployed due to lack of opportunities elsewhere. •.

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EXTERNAL SOURCES OF RECRUITMENT • Retired hands with experience and health • Persons wishing to join the organization from other organizations/ competitiors for improving their career prospects or economic returns. 7

EXTERNAL SOURCES OF RECRUITMENT • Unscheduled area/sectors like -housewives, -returnees from employment abroad like NRIs • disadvantaged sections of the society like -ex-servicemen, -minorities, -handicapped persons etc.,

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ADVANTAGES OF RECRUITMENT WITHIN THE ORGANISATION • Good public relations exercise and improve “good will” to the organization • Improve morale and motivation of employees.

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ADVANTAGES OF RECRUITMENT WITHIN THE ORGANISATION • Provide better career prospects and promotional avenues to employees. • Improve probability of better performance since the candidate is in a better position in knowing the objectives and expectations of the organization

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DISADVANTAGES OF RECRUITMENT WITHIN THE ORGANIZATION • In-breeding prevents injection of new “blood” in the organization. • Option is limited in locating “righttalents” • Inhibits innovation and creativity 11

DISADVANTAGES OF RECRUITMENT WITHIN THE ORGANIZATION • Develop a self-created “isolation” • Encourages ‘seniority’ more that ‘merit’ • Higher probability of likes/dislikes viz subjectivity in promotion.

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ADVANTAGES OF EXTERNAL SOURCES OF RECRUTIMENT • Improve knowledge and skill of the organization by up gradation from external inputs • Injection of “external blood” can improve not only the knowledge but also the philosophy, attitude and management concepts in the organization. 13

ADVANTAGES OF EXTERNAL SOURCES OF RECRUTIMENT • Improve and sustain competitive advantage. • No limitation on skill and knowledge since the external area is quite wide. • Economical in the long run 14

DISADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT • Is costly • Cause “brain-drain” due to fear of lack of growth potential • Higher probability of employees turnover.

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DISADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT • Demoralization of existing employees for alleged “double standard” and favor shown towards new recruitment from outside • by offering better position (grade) and pay over looking claim made by own employees. 16

METHODS OF RECRUITMENT Some of the popular methods of recruitment are listed under the classification of Internal and external sources of recruitment.

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INTERNAL SOURCES SEARCH METHOD Method of internal search involve the following: • Posted on bulletin/notice boards of the organization • Through memos circulated among the shop supervisors.

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INTERNAL SOURCES SEARCH METHOD • Advertised in the in-house employee magazine/bulletins/handouts. • Other methods like “word-of-mouth” and/or “who-you-know” system. • Perusal of records/P.C data bank (unpublished) 19

EXTERNAL SOURCES SEARCH External sources search consists of a number of methods. Dunn and Stephen have broadly classified them under the following broad categories:  Direct methods  Indirect methods  Third party methods 20

DIRECT METHODS OF RECRUTIMENT It consists of the following: • Scouting • Campus-recruitment • Casual-callers/unsolicited applicants 21

SCOUTING  This is one of the oldest method .  The personnel department send their representatives to potential places of recruitment and establish contact with potential candidates seeking employment. . 22

SCOUTING  Preliminary screening/interviews are arranged at selected places wherein the candidates present themselves.  In this effort local/consultants agents/institutions/colleges play the liaison work.  Organizing conventions, indoctrination seminars, fairs, etc are other means in this method 23

CAMPUS RECRUITMENT  In this method firm representatives call on potential/ colleges/institutes to establish direct contact.  In such cases “ placement cells” established in such educational institutions do the liaison work and coordination for arranging the preliminary screening and interviews. 24 .

CAMPUS RECRUITMENT • Sometime the firms directly contact the director/faculty/professors for recommending students with outstanding performance for employment

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CASUAL CALLERS Casual callers and job seekers at the factory and unsolicited applicants are other sources of direct recruitment.

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Indirect methods The following are the indirect methods: • Advertisement • Employers trade associations/clubs • Professional associations • Reputed other firms

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ADVERTISEMENT  It is a very popular method.  Various media are used for advertisement such as newspaper, journals, radio, TV etc.,  Senior posts are largely filled up through advertisement when suitably experienced and qualified persons are not available. 28

THIRD PARTY METHODS • Public employment agencies • Private employment agencies • Placement cells in schools and colleges • Temporary help services • Management consultants 29

THIRD PARTY METHODS • Employee referrals/recommendations • Professional bodies/associations • Computer data bank • Voluntary organizations • Trade unions 30

PUBLIC EMPLOYMENT AGENCIES • In India these are called employment Exchanges under the control of central/state governments. • It was designed to help job seekers to find suitable employments.

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PUBLIC EMPLOYMENT AGENCIES • Registration with employment agencies will provide certain privileges to such persons like: --priority in employment or --receipt of “unemployed doles” by the government.

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PRIVATE EMPLOYMENT AGENCIES  Private employment agencies do charge fees either from potential employees, or from employers or from both for their services.  The question arises then is, how these private agencies compete with government agencies who do not charge fees.

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PRIVATE EMPLOYMENT AGENCIES  Obviously these agencies must do something different from public agencies to attract both employers and job seekers.  The major difference is the “image”. Such good image is built up due to the following three reasons:

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PRIVATE EMPLOYMENT AGENCIES 1.They provide employment opportunities for all categories of employment including -managers, -top executives, -professionals, -engineers in addition to skilled and unskilled labor. 35

PRIVATE EMPLOYMENT AGENCIES 2.Private agencies provide comprehensive service like : -advertisement, -counseling, -conducting interviews, -preliminary screening, -short listing candidates etc.,

3.Some such agencies provide guaranteed performance by the candidates recommended by them for period ranging 36 6 months to an year.

PRIVATE EMPLOYMENT AGENCIES 4.Some of the agencies become specialized in certain categories of employment like the following:      

security guards/personnel Clerical office/computer operators Managers/executive Engineers Accountants Salesman etc., 37

PLACEMENT CELLS FROM COLLEGES/SCHOOLS  This is mutually beneficial to the employers as well as educational institutions.  They act as a single window for employment coordination between organization seeking recruitment and institutions 38

TEMPRORARY HELP SERVICES 

Is provided by Agencies who provide hands for jobs of temporary /short-term period.

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This kind of service is extensively used by organizations to tide over fluctuations in personnel needs.

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TEMPRORARY HELP SERVICES  In India such services are commonly used to employ unskilled/semi-skilled jobs like -masons, -construction workers, -gardeners, - plumbers and -electricians.

 Mostly these are confined to civil work on building bridges, roads and loading/unloading workers. 40

MANAGEMENT CONSULTANT  These consultants obtain job description and job specification from such companies and carry out extensive search through advertisement and other means.  They also carry out recruitment process up to the point of short listing and send such short listed names of potential candidates to the company seeking to fill up their vacancies.

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EMPLOYEE REFERALS/RECOMENDATION  Is the reference/recommendation received from an existing employee of the company.  Existing employee has a stake in the organization, therefore he cannot normally afford to recommend unsuitable and incompetent person. 42

PROFESSIONAL BODIES/ASSOCIATIONS  It is often a practice for firms approaching respective professional bodies/associations for locating/recruiting suitable hands for engineering, technical, scientific and managerial vacancies.

 Approach is made to members and officials of national bodies like AIMA, Institution of Engineers, computer society etc.,

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COMPUTER DATA BANK SERVICES  Some important organizations have built up their own Data-Bank system viz IRIS(IBM recruitment Information System)  This is a computer-operated system inn which data regarding all its employees are entered in categories bad grade-wise.

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 Information contained in the databank is comprehensive enough to include educational qualifications, training achievements, posts held,  experience gained, biographical data,  family background,

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 aptitude, personality factors, potential qualities and attributes, etc.,

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VOLUNTARY ORGANIZATION Certain voluntary organizations can assist in recruitment. Examples are: • schools for handicaps like deaf, dumb and blind; • churches; • fraternity organizations and • social clubs.

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TRADE UNIONS In certain industries unions play a vital role in recruitment.  In USA union has taken over the function of recruitment of unskilled and semi-skilled labor.  There are “Hiring Halls” in USA where union advice job seekers on job opportunities. 

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RECRUITMENT PRACTICES IN INDIA Practices followed by various firms recruitment vary in India based on the type whether it is a government ,Public sector or a Private sector.

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RECRUITMENT IN GOVERNMENT ORGANIZATIONS  By and large in case of recruitment in government organizations follow Public Recruitment Agencies.  Employment exchanges in recruiting lower level from semi-skilled jobs.

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RECRUITMENT IN GOVERNMENT ORGANIZATIONS  Higher post jobs are advertised.  Most of the jobs, off late are filled through promotion from - internal sources. - through deputations from other organizations.

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RECRUITMENT IN PUBLIC SECTORS Public sectors use the following methods of recruitment given in their hierarchical order of importance: – Employment exchanges – Advertisement – Promotion and transfer from internal sources. – Deputation from external sources. 52

RECRUITMENT IN PRIVATE SECTORS  Procedure and methods are not formalized fully in private sectors.  Each follow their own methods.  Following methods are popular given in the order of priorities: – Advertisements – Casual callers. 53

RECRUITMENT IN PRIVATE SECTORS – Relatives of current employees and their recommendations – Internal sources through promotions and transfers. – Employment exchanges

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EVALUATION OF RECRUITMENT PROCESS Keeping in view of the recruitment objective in mind , evaluation might include: 1. Return rate of applicants sent out. 2. Number of suitable candidates for selection. 3. Retention and performance of the candidates selected 55

4. Cost of the recruitment process. 5. Time lapsed data. 6. Comments on image projected

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EVALUATION OF RECRUITMENT METHODS The evaluation of recruitment might include: 1. Number of initial enquiries received which resulted in completed application forms 2. Number of candidates at various stages of the recruitment and selection process, especially those shortlisted

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3. Number of candidates recruited. 4. Number of candidates retained in the organization after six months.

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EVALUATION AND BENCHMARKING OF RECRUITMENT IN AN ORGANIZATION

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A firm should evaluate its recruitment process along with all its other human resource management activities.

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Collecting appropriate evaluation measures on past recruiting efforts can help an organization to predict the time and budget needed to fill future openings, identify the recruiting methods that yield the greatest number or the best quality of candidates and  evaluate the job performance of the individual recruiters.  

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EVALUATION AND BENCHMARKING OF RECRUITMENT IN AN ORGANIZATION Benchmarking against similar firms can also be informative. The granddaddy of all recruiting evaluation measures is cost per hire, though speed of filling vacancies is also an important measure. The quality of hire can provide the assessment of the quality of new employees being recruited and hired. 60

CALCULATION OF QUALITY OF HIRE Formula: Where:

QH=(PR+HP+HR)/N

QH=quality of recruits hired PR= average job performance ratings (20 items on scale ) of new hires (e.g. 4 on a 5 point scale or 20 items x 4) HP= percent of new hires promoted within one year (such as 35%) 61

HR= percent of hires retained after one year (e.g. 85 %) N= number of indicators used Therefore, QH= (80+35+85)/3 = 200/3 = 66.6%

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