Recruitment Strategies to Create the Best Pool of Applications - Literature review Example

HOW CAN ORGANISATIONS EFFECTIVELY IMPLEMENT RECRUITMENT STRATEGIES TO CREATE THE BEST POOL OF APPLICANTS?" Chapter # 2 – Literature Review 2 Introduction Today, the globalisation of world has increased competition and rivalry among all business firms. The technological developments and construction of modern transportation networks have boosted global trade as more and more companies have been joining the business arena. In the light of above, the importance of Human Resource function has increased tremendously because companies are demanding workers who could absorb pressure and adapt to changes in fast, unstructured, unclear and unpredictable external working environment. Nevertheless, the slow and inflexible workers who resist change management policies and practices are not demanded and inducted by business companies because they are viewed as incompetent in today’s challenging business arena. It should be highlighted that companies could only induct SMART workers if they have sound and flawless recruitment procedures. Indeed, the recruitment and selection process helps in finding and employing top quality and proficient workers who meet organisational needs and focus on accomplishment of assigned goals and targets. The purpose of this essay is to critically analyse how to effectively implement recruitment strategies to create best pool of workers within an organisation. It should be emphasised that technology only accelerates the production strength but its employees who plan, organise, lead and control business operations. Therefore, there is dire need to implement right recruitment strategies to select right workers at the right time for greater business growth, survival and sustainability. The paper will first throw light over importance of Human Resource Management followed by importance of recruitment and selection process. The paper will then discuss various recruitment techniques such as internal and external recruitment, consultation from any HR agency, use of job and career fairs, referrals etc. The paper will critically analyse different recruitment strategies followed by a discussion on what techniques should be used in various business scenarios. The paper will also demonstrate underlying weaknesses in existing literature contributed by past researchers. Finally, the researcher will provide the conclusion to summarise the findings and shortcomings of discussed literature. 2.2 - Recruitment Techniques Human Resource Management refers to managing employees and organisational members. Indeed, HRM is also known as personnel management and it plays vital role in success and growth of any business firm. For instance, the first major responsibility of Human Resource Managers is to prepare a top quality workforce that could meet present and future organisational needs as well as could accomplish assigned goals and targets. It should be recalled that workers are assigned jobs and business goals for accomplishment. Hence, if right workers are not inducted in a company then it may not be able to form an excellent customer base, relationships with partners, distribution channel members and other stakeholders of the company. It should be explained that recruitment of wrong workers takes place in situations when HR managers are biased, not highly educated, competent and well-trained. The research will now review different internal and external recruitment strategies used by HR managers to recruit workers within an organisation that aims to maximise its profits and create value for its customers. 2.2.1 – Internal recruitment The first type of recruitment is known as Internal Recruitment, which refers to finding workers within an organisation for unfilled job vacancies. Indeed, this strategy is widely used by HR managers because it helps saving costs as well as reducing the time spent in recruitment and selection. For instance, HR managers are aware of strengths and weaknesses of the organisational members so they could decide which worker is suitable for what tasks and positions. One of the internal recruitment techniques is known as job rotation through which existing employees employed at various positions are rotated and assigned new positions / responsibilities / jobs. In this way, the HR executives hire most efficient, trained, specialised and experienced workers on various unfilled positions without even interviewing potential candidates outside the firm. Current employees are made aware of new openings through notices placed on company’s notice boards. The interested workers may personally request for job rotation if they want to advance within the same working group. The second technique is known as write – ups / walk – ins. In fact, the potential candidates often send their applications (called write-ups) to organisations via post or register themselves at websites so that they could be called when new openings are announced. Similarly, the potential candidates often walk into the firms to deposit their documents (qualifications, resumes, certificates, cover letter etc.) and application forms for review. It should be pointed out that many supranational / multinational corporations like Proctor & Gamble, Unilever etc. have very stringent criteria for, even, internees because they prefer to hire interns at unfilled future positions as soon as they complete their academic programme (Frolich, 2010). The first advantage of internal recruitment is that it is cheaper as HR managers do not have to advertise in newspapers, magazines and internet. Second, it could be completed in shorter time period because usually the selection and supervisory interviews are conducted followed by realistic job previews so that employees could have an insight over additional job duties and responsibilities. The second advantage is that employees are already familiar with the company’s business model / system, functioning and routine operations. Therefore, they do not require additional time to adjust in system unlike time required in new firms. Third, the employers gain trust and confidence of existing employees who are promoted to higher positions after job rotation and other internal recruitment techniques. In this way, workers become motivated, committed, dedicated and satisfied because of career advancement. The last advantage is awareness about strengths and shortcomings of existing workers; therefore, HR managers could easily develop training performs that will enhance their skills, expertise and proficiency level (Johnson et al, 2008). The first disadvantage of internal recruitment is that it limits many potential candidates outside the firm who are not provided any opportunity to showcase their skills, specialisation and talent. The next demerit is that restricting outside applicants also reduces the probability that employers will be introduced with new perspectives and ideas. The next demerit is that SMART applicants outside the firm are not inducted that may prove themselves better than internal candidates. In addition, the internal recruitment may also demotivate internal workers who are not consulted for new positions and job vacancies. In this way, the morale and trust on employers may reduce, which may adversely impact their efficiency and performance. Another disadvantage is that job rotation although helps filling new positions; however, this strategy will now create space for old jobs that need to be filled through either internal or external recruitment. 2.2.2 – External recruitment External recruitment refers to hiring workers outside the organisation because internal channels could not be able to fill all old and new job positions. Indeed, this strategy is time consuming and expensive because entire recruitment and selection process begins from the scratch (from advertising to screening applications, from employment tests to selection interviews, from references / background checks to medical evaluation, supervisory interviews, job previews and final hiring decision). For instance, it should be mentioned that external recruitment could attract a talented pool of applicants with novel ideas, better knowledge, understanding and expertise. The first external recruitment technique is to advertise about new job openings and available slots in the media (newspapers, magazines, company website and online agencies). In fact, this technique actually appeals to masses and the aim of HR managers is to hire SMART workers who could accomplish goals and targets. The second most famous technique is known as ‘referrals’ through which the current employees are requested to refer potential candidates (in their social networks) who could easily adjust in organisation’s corporate structure / system / working environment and could contribute their skills, knowledge, expertise and abilities for welfare and well-being of the business unit. It is worthwhile to mention that referrals not always provide talented workers because of personal biases of employees (who even refer their incompetent relatives and friends). The third technique is use of job and career fairs. In fact, the organisations establish stalls in job / career fairs to attract potential candidates interested in finding their dream jobs. The applicants deposit their CVs / resumes / forms that are thoroughly reviewed and screened after which top candidates are contacted for further recruitment process. Nevertheless, the job fairs often help attracting many potential employees that then become part of business organisations, contribute and serve for their betterment. Another strategy is known as recruitment programmes (bachelors and graduate programmes) that are initiated exclusively for educational institutions (Heaton et al, 2008). Usually, the HR managers place notices at university notice boards so that they could entice fresh / inexperienced but talented workers to become part of their companies. This is, indeed, done with collaboration of university alumni association / society / network. The fifth technique is about offering internships to talented candidates during their academic life (diploma, under – graduation, graduation, doctorate etc.). This facilitates the company in finding and training future part – time or full – time workers. Also, some organisations train their internees in a way they do not need to recommence recruitment process from scratch. Also, the HR managers provide career counseling, mentoring and coaching to their internees so that they could return immediately after completion of academic programmes. The last technique is to recruit workers from external Human Resource and Employment agencies. In fact, this strategy has also become extremely popular because firms delegate responsibility to external agencies for finding workers according to demands and needs of a business organisation (Bergwerk, 2007). The first major advantage of external recruitment is that it helps recruiting people that have novel ideas and different perspectives. The next merit is that it appeals to mass audience that later enables HR managers to recruit and employ the SMART candidates. Next, this strategy enables the executives in attracting candidates from diverse backgrounds and personal experiences. In fact, diverse employees also significantly contribute in success and growth of a business entity. On the negative side, the first demerit is that external recruitment is a tedious, longer and expensive process because recruiters have to start with advertisements and then move on to later stages of recruitment & selection process. Another disadvantage is referrals may be biased and may lead to induction of wrong employees. In other words, external recruitment is also not viewed as 100% accurate process of employing best candidates. 2.3 – How to decide Recruitment Strategies As far as the recruitment of employees is concerned, it should be noted that it comprises of policies and strategies that affect organisational members as well as candidates / job hunters with an inclination to apply for a firm. For instance, it is worthwhile to mention that recruitment of top quality workforce is directly related with firm’s performance because SMART employees with greater normative and affective commitment, vision, critical thinking skills and leadership qualities showcase their best and contribute significantly in goal accomplishment. Rynes et al (1990) revealed from his research study that “recruiters, recruitment timing and other steps during job hunting stage have substantial effects on the allocation of applicants to vacancies”. Arvey et al (1975) demonstrated a very important finding that entire recruitment process should be conducted in the planned time period because postponement, discontinuation and delays may force applicants to apply to new organisations. Indeed, every applicant expects and waits for prompt communication from HR departments of their chosen firms because he or she has applied in, at least, 2-4 different organisations simultaneously for jobs. Hence, lack of timely communication gives negative message to many potential (talented) applicants and compels to switch to other companies. In this way, delays in recruitment process may deprive a firm from many SMART workers. Russo et al (1995) had mentioned that the firms major issue is about finding the best pool of employees who could assist in decision – making, problem – solving and defining strategic goals. For instance, organisations need right workers who support change management approaches, who participate openly in business affairs and who work diligently for attainment of desired outcomes. HR managers are considered as employee champions and advocates because they need to work with the organisational members on regular basis. Indeed, they could not recruit right employees if they do not use right channels followed by right external and internal procedures. In addition, there is internal and external information flow and interaction among employers, departments and potential candidates. The external communication results when employers with vacancies tend to communicate with job hunters who have inclination to serve an organisation. In contrast, the internal communication takes place when the human resource personnel interact with members of other departments; thereby seeking their help in designing the recruitment strategy. It is justified to argue that the departments inform HR function about the changes in technology and departmental needs due to changes in external environment. Hence, recruitments programmes have to be amended to obtain the right strategic fit of workers. This internal communication resolves the problem of analysing and evaluating market changes by Human Resource business partners, despite the fact they should have ability to foresee anticipated changes in market conditions. It should be recalled that organisation hires employees to fulfill its needs; therefore, change in needs also triggers the change in recruitment strategies and dominates the selection process. For example, if there is need of part – time or contractual workers than external recruitment such as external agencies could prove to be the best option. However, if there is demand of permanent workers than HR department has to conduct thorough internal evaluation so that it could find right candidates for strategic positions. In short, needs determine what type of workers (part – time, full time, temporary or permanent) should be hired at what time by using different available recruitment techniques (Jago, 1996). It should be presented that graduates of 19th or 20th century are different from contemporary graduates because of changes in perceptions, behavious and attitudes. Indeed, Heaton et al (2008) summarised the findings of Institute of Employment Studies which revealed that over 85% fresh graduate workers in 2nd or 3rd year of their careers abandon their jobs offered by initial hirers and switch to different companies that offer better pay, promotion, fringe benefits and career advancement opportunities. Nevertheless, the change in perceptions about job market has also affected the psychological contract with entities. HR managers, therefore, feel this pinch and select recruitment strategies in a judicious manner so that they could recruit employees who are penchant to work for relatively greater time period. Indeed, organisations invest on candidates for long – term benefits; thus, HR managers are responsible to use recruitment techniques that will help finding excellent workforce as well as reducing employee turnover rates (Heaton et al, 2008) referenced (Kelley-Patterson & George, 2002). Scholarios et al (2003) demonstrated that ‘self – selection’ of candidates by HR executives is one of the most beneficial of internal recruitment technique. Indeed, the recruiters use their personal information (of candidates) followed by assessment of the skills, personality traits, education and attributes. However, they could efficiently utilise this recruitment technique if they communicate the importance and benefits workers would obtain by servicing at higher level positions. As a result, many SMART workers could be employed through use of self-selection strategy while incurring fewer costs. It should be emphasised that ‘realistic job preview’ (RJP) or ‘delays in recruitment process’ are among the two factors that could positively or negatively affect hiring of workers. For instance, RJP are beneficial because they reduce the probability of recruiting wrong and incompetent candidates / workers within an organisation. On the negative note, delays in recruitment process would distract many talented workers who may find jobs in other organisations or business sectors (Russo et al, 1995). 2.4 - The Gaps in the Literature Every literature has some limitations because of differences in opinions of theorists, contributors and past researchers. The above literature also has some gaps in a way it does not discuss the selection process and it covers only the recruitment side of the picture. For instance, the researcher has thrown light over internal and external strategies but does not provide a discussion on other HR functions such as training and development, compensation, placement, performance evaluation and termination. Needless to mention, all HR processes and functions contribute in producing workforce that comprises of top quality employees. 2.5 - Conclusion In a nut shell, firms that are mostly labour intensive, therefore, focus on differentiation and specialisation to gain a competitive edge over other operators and are heavily dependent upon the functioning of their Human Resource Management departments. Indeed, HR play the most important role in any business enterprise because these managers are responsible for recruiting and selecting a talented pool of workers that then work to accomplish their assigned business targets. Different external and internal recruitment strategies are employed by HR executives in an organisation because the needs determine what type of workers (part – time, full time, temporary or permanent) should be hired at what time by using different available recruitment options. It should be argued that organisations should select those recruitment options that could help inducting best workers at lowest possible costs. Indeed, economic costs such as expenses on advertising, employment tests, payments to internal and external interviewers, medical evaluations etc. are incurred; therefore, choosing any incorrect options / technique would not only waste time but also the monetary resources. References: Jago, Alison (1996). Selecting your team: how to find the right people. Librarian Career Development, Volume 4, No. 3, pp. 27–31 Heaton, Norma, Martin McCracken and Jeanette Harrison (2008). Graduate recruitment and development. Education + Training, Vol. 50 No. 4, pp. 276-288 Russo, Giovanni, Piet Rietveld, Peter Nijkamp and Cees Gorter (1995). Issues in recruitment strategies: an economic perspective. The International Journal of Career Management, Volume 7, No. 3, pp. 3–13 Rynes, S. (1990) Recruitment, job choice, and post hire consequences: a call for new research directions”, in Dunnette, M. and Hough, L.M., Handbook of Industrial and Organizational Psychology, Vol. 2, Consulting Psychology Press, Palo Alto, CA Arvey, R., M. Gordon, Messengill, D. and Mussio, S. (1975). Differential dropout rates of minority and majority job candidates due to time lags between selection procedures. Personnel Psychology, Vol. 38, pp. 175-180 Scholarios, Dora, Cliff Lockyer and Heather Johnson (2003). Anticipatory Socialism: the effect of recruitment and selection experiences on career expectations. Career Development International, 8 / 4, pp. 182-197 Johnson, Alonzo, Winter, P., Thompson, H. and Joseph Petrosko (2008). Managerial recruitment: the influence of personality and ideal candidate characteristics. Journal of Management Development, Vol. 27 No. 6, pp. 631-648 Breaugh, James and Mary Starke (2000). Research on Employee Recruitment: So Many Studies, So Many Remaining Questions. Joumal of Managemenl, Vol. 26, No. 3, 405-434 Thompson, Lori and Kimberly Aspinwall (2009). The recruitment value of work/life benefits. Personnel Review, Vol. 38 No. 2, pp. 195-210 Bergwerk, Jonathan (2007). Recruitment and Selection for Company Culture. Journal of Managerial Psychology, 3(1) pp. 9-15 Carroll, Marilyn, Earnshaw, J. and Stephen Taylor (1999). Recruitment in small firms. Employee Relations, Vol. 21 No. 3, pp. 236-250 Frolich, Nicoline and Bjorn Stensaker (2010). Student recruitment strategies in higher education: promoting excellence and diversity?. 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