Recruitment and Selection

Recruitment

Recruitment in human resource management is the process of finding and hiring the best and most qualified candidate for a job opening in a timely and cost-effective manner. It involves:

  • Searching for prospective employees.

  • Stimulating and encouraging them to apply for jobs in an organization.

Recruitment is a comprehensive process with a full life cycle that begins with identifying the company's needs for a specific job and concludes with the introduction of the new employee to the organization.

Methods of Recruitment

There are two primary methods of recruitment:

  1. Internal Recruitment

  2. External Recruitment

Internal Recruitment

Internal recruiting involves filling vacancies from within the existing workforce. This can include:

  • Employee referrals.

  • Promotions.

  • Transfers.

External Recruitment

External recruitment involves looking outside the company to fill vacancies. Sources include:

  • Unsolicited applications.

  • Referrals from employment agencies.

  • Schools.

Types of Internal Recruitment

  1. Employee Referral: Supervisors evaluate employee performances and maintain records. When a vacancy arises, these records are reviewed to identify hardworking or potential employees who can be referred for the vacant posts.

  2. Promotion: Promotion is the advancement of an employee's post within the company. Promotions can be mandatory (occurring at certain intervals) or based on performance.

  3. Transfer: In large organizations with multiple branches, the human resource needs of one branch can be met by transferring employees from another branch. Vacancy information is distributed across branches, and interested, suitable candidates are then transferred.

Advantages of Internal Recruitment

  1. Encourages Hard Work and Develops Employees: Internal recruitment promotes the idea that sincere employees are rewarded with promotions, leading to increased payment and recognition. This encourages employees to put in more effort and produce quality outputs, resulting in employee development.

  2. Accurate Selection: There is a lower risk of selecting the wrong person because the company has employee records and knows employees personally, which is not possible in external recruitment.

  3. Economic in Nature: Internal recruitment saves time and money compared to external recruitment, which involves job announcements, interviews, and other time-consuming and costly processes.

  4. Strengthens Employer-Employee Relationship: Employees feel valued when they are promoted or transferred to a better branch, fostering loyalty and faithfulness to the company. This strengthens the employer-employee relationship.

  5. Adaptability: Internal recruits take less time to adapt to new work environments because they are already familiar with the company's environment, employees, and culture.

Disadvantages of Internal Recruitment

  1. Promotes Unemployment: External talents are deprived of working opportunities when companies solely focus on internal recruitment.

  2. Promotes Favoritism: Favoritism, an unfair practice where people or groups are treated with bias, can occur during internal recruitment.

  3. Limited Choice: The pool of candidates is limited, and internal candidates may not possess the skills demanded by the post.

External Recruitment

External recruitment involves filling vacant positions with individuals outside the existing employee base. This introduces new skills, qualifications, and ideas into the organization.

Types of External Recruitment

  1. Advertisement: Vacancies are announced through various media, including newspapers, magazines, television, radio, and the internet.

  2. Walk-ins: Individuals who enter the organization in search of a job. This method is typically applicable for unskilled and semi-skilled positions.

  3. Private Employment Agencies: These agencies act as intermediaries between job seekers and companies, maintaining databanks of job vacancies and candidates. They charge a commission for their services.

  4. Educational Institutes: Companies conduct direct recruitment from colleges and universities, recruiting bright students at managerial levels. This saves time and money and encourages students to study hard.

  5. Labor Contractors: Similar to private employment agencies, labor contractors maintain contact with laborers and industries, providing laborers to industries whenever required and charging a commission for their services.

Advantages of External Recruitment

  1. Qualitative Human Resources: External recruitment creates a larger pool of eligible candidates, allowing for better-qualified individuals to be selected. This ensures the quality of human resources in the organization.

  2. Rejuvenates Organization: The inflow of new ideas, skills, and enthusiasm rejuvenates the organization and its system.

  3. Better Adaptation to the Changing Environment: New knowledge and skills facilitate adaptation to rapidly changing technologies.

Disadvantages of External Recruitment

  1. Demoralizes Employees: Existing employees may feel demoralized when external candidates are hired, especially if they were expecting a promotion. This can lead to resignations.

  2. High Cost: External recruitment is a lengthy and costly process, involving job announcements, orientation, training, and other expenses.

  3. Adaptability Problems: New employees may take time to adjust to the organization's culture and environment, affecting their performance.

  4. Chances of Wrong Selection: There is a risk of selecting the wrong employee, which can decrease the organization's effectiveness.

  5. Promotes Nepotism: Nepotism, the practice of favoring relatives and friends, can occur during external recruitment.

Example: Job Posting

Company: gREPCOR DIAMONde Inc.

Position: Accounting Assistant - Accounts Payable

Requirements:

  • Bachelor's Degree in Finance/Accountancy/Banking or equivalent.

  • At least 1 year of relevant experience.

  • Skills: Strong MS Excel, SAP B1, Payables transaction, Analytical skills, Integrity, Attention to detail, Organized

Job Highlights:

  • Career Advancement

  • Fast-Paced working environment

  • Competitive Benefits

Job Responsibilities:

  • Account payable analysis for financial statements and full payables transactions.

  • Reconcile general ledger accounts with cash in the bank and bank statements.

  • Monitor cash flow.

  • Prepare vouchers, checks, and issue payments.