Factors affecting recruitment policy - Commerce PDF Download

Recruitment Policy
 – The recruitment policy of the organization is key to set in place. The external recruitment policy will specify the objectives and provides a framework for implementation of the recruitment program. It may involve organizational system to be developed for implementing recruitment programs and procedure by filling up vacancies with best-qualified people.

Some of the factors affecting recruitment policy;

• Need of the organization.
• Organizational objectives.
• Preferred sources of recruitment.
• Government policies on reservations.
• Personnel policies of the organization and its competitors.
• Recruitment costs and financial implications.

Human Resource Planning – 
Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualifications they will need to best fit the role.

Size of the Organization
 – The size of the organization affects the recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.

Cost involved in recruitment – 
Recruitment incurs cost to the employer; therefore, it can often be cheaper to employ a recruitment agency which will bear a lower cost over time. This approach will also save time and ensure you find the best candidates for your business.

Growth and Expansion
 – Organization will employ or think of employing more personnel if it is expanding its operations. Finding those people with relevant skills is key. They will also have to fit your business culture and believe in your values specific to the business.

External factors

Supply and Demand
 – The availability of talented candidates both within and outside the organization is an important factor in the recruitment process. If the company has a demand for more professionals and there is limited supply in the local market, then the company may have to depend upon internal sources by providing them special training and development programs.

Labour Market – 
Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is a surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc. will attract more than enough applicants.

Goodwill / Image of the organization
 – Image of the organization is another factor having its influence on the recruitment process of the organization. This can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with a negative image. Image of a company is based on what organization does and affected by the industry. Managerial actions like good public relations, rendering public service like building roads, public parks, hospitals and schools help earn image or goodwill for organization.

Political-Social-Legal Environment – 
Various government regulations prohibiting discrimination in hiring and employment have a direct impact on recruitment practices. Trade unions play important role in recruitment. This restricts management freedom to select those individuals who it believes would be the best performers. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.

Unemployment Rate – 
One of the factors that influence the availability of applicants is the growth of the economy. When the company is not creating new jobs, there is often oversupply of qualified labour which in turn leads to unemployment.

Competitors – 
The recruitment policies of the competitors also affect the recruitment function of the organizations. To face the competition, many a times the organizations have to change their recruitment policies according to the policies being followed by the competitors.