Recruitment in Human Resource Management

Recruitment: The Basics

  • Recruitment Definition:
    • Recruitment refers to the process of finding and attracting suitable candidates for employment.
    • It involves understanding the job requirements thoroughly before beginning recruitment efforts.
  • Purpose of Recruitment:
    • The aim is to establish a pool of suitable and interested candidates, and to subsequently select the "best" candidate available.
    • An important note is that in recruitment, quality matters more than quantity; it is essential to have a sufficiently large pool of candidates to avoid issues in the selection process.
  • Variables in Recruitment:
    • The time, costs, and efforts required to fill an open position vary significantly depending on the role.
    • Rule of Thumb: The more specialized the skill set required, the longer and more expensive the hiring process will be.
    • Challenges: Skill shortages in certain industries can make recruitment difficult, unlike sectors with a plentiful labor supply.
  • Analogy:
    • Recruitment is likened to dating; it is successful only when both parties agree they are a good match.
  • Trends in Recruitment:
    • There has been an increase in scrutiny of company policies by applicants.
    • Examples include concerns about the organization's environmental record, board diversity, corporate social responsibility, and sustainability efforts.
  • Networking:
    • More than 80% of non-entry level jobs are filled through networking rather than traditional recruitment methods.

Internal vs. External Recruitment

Internal Recruitment:

  • Pros:
    • Typically faster and less costly.
    • The employee is already familiar with the organization.
    • Better understanding of job requirements by the current employee.
    • Limited or no cultural adjustment needed; smoother transitions.
    • Provides career advancement opportunities, potentially increasing morale and loyalty.
    • Direct access to existing networks within the organization.
  • Cons:
    • May lack fresh perspectives as there is no influx of new ideas.
    • Existing team dynamics may not always support optimal outcomes; good professionals don’t always make effective managers.
    • Can reinforce existing organizational structures and biases, limiting diversity.
    • Can be time-consuming and expensive if current employees need training.
    • Potential issues with union opposition and internal politics.

External Recruitment:

  • Pros:
    • Brings new perspectives and ideas into the organization.
    • Useful when required skills are not available internally.
    • Can enhance diversity and inclusion within the workforce.
  • Cons:
    • Potentially more costly and time-consuming.
    • Internal candidates may feel overlooked, leading to dissatisfaction.
    • Involves building an external network, which takes time and effort.

Challenges Faced by Recruiters

  • Unrealistic Requirements:
    • Hiring managers may request candidates with unrealistic qualifications or experiences (e.g., "30-year-old, with 2 Ph.D. degrees and 20 years of relevant experience").
    • Urgency in hiring can lead to expectations for immediate results (e.g., "please find this person until yesterday").
  • Internal Compensation Policies:
    • Recruiters must maintain internal compensation alignment and navigate salary structures which may limit offers to candidates.
  • External Economic Factors:
    • Labor market conditions, such as the unemployment rate, macroeconomic environment, and skill shortages influence recruitment success.
    • Legal limitations can restrict hiring practices (e.g., work permits for foreign hires).
    • Competitive actions (like sign-on bonuses) can impact recruitment.
  • Budget Constraints:
    • High expectations for internal promotions may limit the exploration of external candidates.
    • Limited budgets can restrict recruitment efforts and lessen the recruitment function's effectiveness.

Traditional Recruitment Methods

  1. Employee Referrals:
    • Often effective; can lead to better fits between new employees and organizations.
    • Some organizations offer referral bonuses, though may not attract diverse candidates.
  2. Advertising:
    • Includes placements in newspapers, TV, radio, and online media; often targeted based on the audience's interest.
    • Can be expensive and may not yield high success rates.
  3. Job Fairs:
    • Allow direct interaction with multiple employers, facilitating quick engagement with potential candidates.
  4. Walk-ins & Write-ins:
    • In general, applicants drop off CVs without applying for specific jobs; success rates tend to be low.

Recruitment via Internet and Social Media

The Good:

  • Recruitment through online channels is inexpensive, accessible 24/7, and can reach a wide audience, including international applicants.
  • Platforms include social media (LinkedIn, Facebook), job boards (Monster, Indeed), and company career pages (often the most reliable).

The Bad:

  • Not all groups of applicants have equal access to the internet, leading to disparities.
  • Applicant Tracking Systems (ATS) can result in overwhelming applications, potentially weeding out suitable candidates.
  • Legal concerns may arise from using social media information about applicants not directly related to job performance.

Other Methods of Recruitment

  • ESDC Services:
    • Employers can post open roles on the Job Bank, benefiting both parties.
  • Employment Agencies:
    • Serve as a resource for employers without the capacity to conduct their own searches; may charge a fee equivalent to one month's salary.
    • Quality and sophistication of service can vary compared to headhunters.
  • Headhunters:
    • Conduct thorough searches and candidate analysis; can be costly, typically charging 25% of annual salary.
    • Often focus on specialized markets, like executives or technical roles.
  • Professional Associations:
    • Offer job postings on their platforms for members; useful for HR roles, with specific associations in different provinces (e.g., CPHR SK, HRPA in ON).
  • Temporary Help Agencies:
    • Provide quick talent solutions for temporary roles, usually low-skilled; the temp agency retains employer status and typically charges fees.

Choosing a Recruitment Method

  • Decision factors include:
    • Available time.
    • Specific skills required for the position.
    • Number of positions needing to be filled.
    • Internal constraints (e.g., evaluating internal candidates first).
    • Available budget for recruitment efforts.
    • Previous successful methods of recruitment can guide choices, but experimenting with new methods is encouraged.
  • In practice, recruiters often utilize a combination of methods for effective results.

Effectiveness of the Recruitment Function

Common Measures of Success:

  • Cost per Hire:
    • Not a reliable measure as it does not indicate the quality of hires made.
    • Unsuitable hires can cost significantly more than initial hiring expenditures.
  • Quality of Hire:
    • Better measure than cost, but more difficult to quantify; requires long-term evaluation of new hires.
  • Time per Hire:
    • This metric is beneficial only when compared to external benchmarks and is influenced by external factors, including economic conditions.
  • Offers Accepted Ratio:
    • The proportion of job offers accepted versus those extended provides insight into the recruitment function's overall effectiveness.

Conclusion

  • Recruitment is a critical function in Human Resource Management, affecting organizational success through effective talent acquisition processes.
  • Understanding the diverse methods and key challenges in recruitment can empower organizations to refine their strategies for attracting the right candidates.