PSYCH-105 Industrial Psychology
Chapter 15: Recruitment and Selection
Factors Affecting Recruitment Process
External Factors / Forces
1. Supply and Demand
If demand of a particular skill is high relative to the supply an extra ordinary recruitment effort may be needed.
2. Unemployment Rate
When unemployment rate in a given area is high, company’s recruitment process becomes simpler and increased size of labour pool provides better opportunities for attracting qualified applicants and if unemployment rate drops new sources must be explored.
3. Image / Good Will
An organization with positive image and good will as an employer finds it easier to attract and retain an employee than an organization with a negative image.
4. Political – Social – Legal Environment
Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment process practices like reservation system, preference give to local residents etc.
5. Labour Market
If there is surplus of man power at the time of recruitment even informal methods like display on notice board or announcement in the meeting will attract more than enough applicants.
To face competitors, many times organization have to change their recruitment policies according to the policies followed by competitors.
Internal Factors / Forces
1. Recruitment Policy
The recruitment policy of an organization specifies the objective of recruitment and provides a framework for the implementations of a recruitment program. A clear and concise recruitment policy helps to ensure a sound recruitment process.
2. Human Resource Planning
Effective human resource planning helps in determining the gaps present in the existing man power of an organization. It also helps in determining the number of employees to be recruited and qualifications they must possess.
3. Size of Firm
The size of the firm is an important factor in the recruiting process. e.g., large firms such as coco cola has more recruitment needs than any small company.
Organization try to employ that source of recruitment which will bear lower cost of recruitment to the organization for each candidate. Thus, recruiters must operate within budgets and so cost affects the recruitment process.
5. Growth and Expansion
Organization will employ or think of employing more personnel if it is expanding its operations. Organization’s expansion depends upon its growth and profit.