Talent Sourcing For Recruitment
In this chapter, you will:
- Understand the various sources of recruitment including:
- Internal Search
- External Sources
- Advertisements
- Employee Referrals
- Employment Agencies
- Educational Institutions
- Other Sources
The objectives of recruitment are more likely to be achieved if the recruiting sources used are suitable for the kind of position that is to be filled. The selection of recruitment sources should also be economically viable for your organization. For instance, if an organization is looking for a young, fresh technician, it would be better to advertise in the local newspapers than in a magazine like Business Today. Similarly, for an organization scouting for fresh bright talent in large numbers, a visit to some of the best colleges around might perhaps prove to be more beneficial than advertising in newspapers or magazines.
Different sources of recruitment can be employed, depending on various factors like the level of the position, number of people required, time available and the funds allocated for recruitment. The different sources of recruitment are internal search, advertisements, employee reference, employment agencies, educational institutes, and interested applicants. The comparative strengths and weaknesses of these sources in attracting candidates for different levels in your organization are discussed below.
Sources of Recruitment
Internal Search
Many organizations try and identify employees from within the organization, to be groomed to take on higher responsibilities. The human resource inventory, an outcome of human resource planning, forms the basis for internal search. This along with the personal information of the individual employee collected from his employee record, provides valuable information for internal search. In today’s technologically advanced world, many organizations depend on their HRIS (Human Resource Information System), which is a ready source for storing and retrieving information about their employees.
Organizations which go in for an internal search normally announce the vacancy through the displays on notice boards, circulars sent to different departments or through the company’s intranet. Candidates from within the organization respond to this ‘job posting’ by sending in their applications. It is the responsibility of the HR department to ensure that the information about the vacancy reaches all the prospective candidates in the organization. The management then evaluates all the applicants and makes the final selection.
The policy of developing employees from inside instead of searching for new talent from outside has various advantages.
- It helps in maintaining good employee relations.
- It boosts the morale of the employees as they feel important and valued.
- It encourages competent and ambitious individuals as their performance is rewarded.
- There is complete information about the individual’s performance and his credentials are established.
- The cost of recruitment is minimal.
- Time and resources are saved on the selection and induction processes.
- The return on investment on the workforce is increased for your organization.
- If carefully planned and well-executed, promoting from within can also act as a training and development device for middle and top level management.
There are also certain disadvantages associated with the process of internal search. An organization might miss out on talent that is available in the market. It is also possible that talent pool within your organization might stagnate without fresh inflows from outside. It is important for any business to have fresh flow of ideas and opinions. New employees recruited from outside would be in a position to rejuvenate your organization by providing fresh perspectives and ideas on systems and processes.
External Sources
An organization will have a much greater choice in human resources if it decides to go in for external recruitment. There are various methods of recruiting from external sources. Some of the popular methods are advertisements, campus recruitments, employee referrals, employment exchanges, private placement agencies etc. Each of these methods is discussed in detail in the following paragraphs.
Case Study: Jobs for Netizens
JobsAhead is a top career portal connecting high quality talent with the very best organizations in all across the globe. According to Forrester Research, the online recruitment market is expected to grow from $500 million in 2000 to $1.7 billion in 2003. Leveraging the fast growing netizen population in the world, JobsAhead pioneered the development of e-recruitment.
Some of the features of JobsAhead:
- JobsAhead boasts of 24 lakh job seekers, 7.5 million page views, 6000 corporate clients and 100,000 plus jobs.
- JobsAhead offers complete confidentiality which is essential for any recruitment agency.
- JobsAhead as an e-recruitment site organizes a comprehensive job fair, ‘FastTrak’ which also serves as a promotional activity.
- JobsAhead caters to the job sections of some of the large portals like Yahoo.
- Jobs Ahead claims a customer response time of less than 48 hours.
Advertisements
Advertisements have the widest reach and are quite effective for an organization in search of external talent. Different media can be used for advertising, depending on the cost, the need, and the reach desired. The nature of the job, its level and criticality in your organization, all together determine the mode and medium of advertisement. For example, an advertisement for unskilled labor might just be displayed on the walls of the manufacturing unit. The advertisement for the position of a Manager in the same unit might find its way into the classified pages of popular regional dailies. However, the advertisement for the Vice President of the Operations division of the same company might be carried in the employment pages of a national daily or a business magazine. The costs involved would also vary with the changing importance of the position in question and the availability of manpower.
Organizations, while using the print media to advertise, sometimes resort to blind advertisements. They conceal their identity for two reasons. They do not want their competitors to know that a critical position in your organization is vacant or soon going to be vacant and at the same time, they would like to avoid the cumbersome task of responding to all the applicants for the position. Most organizations prefer to respond only to the candidates they feel could be suitable for the position, and try to avoid intimating the rejected candidates. There are other media for advertising like the television, the radio, the internet and posters.
Television and radio have taken a back seat in the recent times as media for job advertisements, with more and more private entertainment channels on the air. However, there are still some companies which dare to tread the path less travelled. For example, Bangalore based i-Flex solutions recently aired its recruitment advertisements on the local FM radio channel.
Job search and talent search have both benefited immensely with the onset of the internet era. Communication has become much easier and faster. Many internet portals like jobsahead.com and monster.com cater exclusively to the needs of various companies which are in search of suitable people, and individuals who are in search of a suitable job. Most of the large organizations today maintain their own websites which give information on vacancies in the organization to visitors to the website. Interested candidates can contact the organization through the internet itself. All these have made recruitment easier and faster. Above case study explains the fast expanding role of internet in recruitment.
The kind of information that has to be furnished to the candidates in an advertisement is determined by various factors. For example, some organizations would like to announce the pay package in the advertisement; others prefer not to do so, because the pay might vary over a wide range, especially for the middle and higher level management cadres and they would like to finalize it only after determining the worth of the applicant. In some cases - for example in the case of most public sector units in various countries - where the company has a fixed pay policy, it would have no hesitation in disclosing the pay for a position.
The important information that has to be furnished in an advertisement includes:
- Nature of business and size of your organization
- The nature of the job
- Location or place of work
- Tasks and responsibilities attached to the position
- Reporting hierarchy and work culture
- Emoluments, benefits and other facilities available
- Requirements of the job in terms of qualification, knowledge, skills and experience
- Last date to respond
- Ways to respond — by e-mail, telephone or post
Some of these components of information are optional. For example, if an organization is proud of its work culture, it might talk about it in the advertisement. Information on the requirements of the job, the nature of work and location etc. are however essential as the candidate would not have complete information about the job, in their absence.
Employee Referrals
Employee referrals form a very good source of recruitment, especially for the lower and middle level management. Employees working with your organization recommend their friends or acquaintances for vacant positions in the organization. The reputation and credibility of the employee is at stake when he or she recommends or refers a candidate. Hence, the employee would take care to recommend good candidates. The second advantage of the referral system is that the candidate seeking employment has an insider’s view of the job as he has gathered information from the employee and is more realistic in his expectations from the company. Consequently, there will be greater possibility of his continuing in the job. The employee would also feel that his contribution is valued, and his opinion respected, when the candidate he has referred is selected by the organization. A more direct advantage of referrals is in terms of time and cost savings for the organization. Some organizations in competitive industries, where it is difficult to find suitable manpower, even pay their employees if the candidates referred by them are selected. This is less costly than hiring a private agency and at the same time, more rewarding for the existing employees. There are however some disadvantages to this system. Employees may sometimes refer relatives or who may not be suitable for the job. It might also lead to the formation of cliques in the organization, with the members of the same group or clan getting together. Below case study describes the employee referral program at Coca Cola.
Employment Agencies
Based on the type of clientele they serve, employment agencies can be broadly classified into public or state agencies, private agencies and head hunters.
Employment Agencies
Case Study: ‘OK 4 KO’
Coca-Cola has chosen this unusual name for one of its HR programs. OK 4 KO is actually the company’s employee referral program which enables employees to be partners in the company recruitment process. Says Mr. Adil Malia, director HRD: “this program enables our employees to earn money when the person referred by them is selected by the company. The cost of recruitment has come down dramatically after the program was introduced.” The Coca Cola philosophy says “Our policy is to foster an inclusive environment that encourages all employees to develop and perform at their fullest potential. Our workplace must be a place where everyone’s ideas and contributions are valued.” This philosophy guides the company to include their employees in selecting their colleagues.
Public or State Agencies
Till a few years ago, Employment Exchanges (state sponsored placement agencies) were extremely popular in many countries. Fresh graduates and technicians in search of suitable employment would first register themselves with the local employment exchange. It was and still is mandatory for any company, which is not exempted, to register its vacancy positions in the employment exchange. The exchange facilitates communication between the candidates it finds suitable, and the company. Employment exchanges were initially established to handle the problem of unemployment in the country. Today however, they have become somewhat outdated. With the changing market needs and demand for different skill sets, more and more companies and job-seekers are looking at other contemporary avenues for recruitment.
Private Agencies
Private employment agencies do well in dynamic job markets, where companies scout aggressively for talent, and potential candidates constantly look out for better jobs. Private agencies provide a meeting ground for both the parties and simplify the whole process of recruitment. Private agencies or ‘management consultants’ perform many of the jobs traditionally done by the HR department of the company. They invite applications from interested candidates, scan them for the first round of shortlisting, test them or interview them for a second round of shortlisting and finally arrive at the list of the most suitable candidates for the vacant positions in your organization. The HR department of the company has to conduct a final round of interviews to select the best fit. Private agencies normally cater to the recruitment needs at the junior, middle and top levels of management. They charge a percentage of the pay package offered to the candidate as fees for their services. ‘Head Hunters’, a more specialized category of private agencies, cater mostly to top management level recruitment needs. They handle ‘executive search’ for organizations and usually charge high fees for their services.
Educational institutions
During the placement season, educational institutions, especially the reputed ones turn into hunting grounds for organizations looking for fresh talent. These institutions offer placement services to their students by trying to get some of the best companies in the market to their campus for recruitment. Organizations shortlist the institutions which can provide the kind of resources that they are looking for and visit them during the placement season. For example, a technology company would have most of the top engineering colleges on its list of institutes for campus recruitment. Similarly, an organization looking for management trainees would visit the top ranking management schools. Long-term relationships are built between organizations and educational institutions through this exercise of campus recruitment. Campus placements at some of the top institutions in the country reflect the condition of the economy and the industry. Following case study describes the trends in campus recruitment at top B-schools for the year 2003.
Case Study: Campus Placements
Two years of recession, US corporate scandals and flat senses have forced lndian B-Schools and graduates of 2003 to look at campus placements more carefully.
The B-schools went into the placements with an air of uncertainty. The atmosphere was charged with expectations and excitement, tinged with a touch of apprehension over the economic downturn spilling over from the last year. But as the placement process got under way, it proved the initial fears unfounded as it took only a matter of two days at most B-schools to place the majority of the batch.
One major trend of 2003 placements was the resurgence of IT. And IT consulting emerged as the star of the placements. Leading IT firms were there to choose the best for the range of IT areas like business development and customer relationship. Happy days are here again.
FMCG, the perennial giant, recruited quite a few. Excellent marketing profiles were there for the students with a flair for marketing. Banking spearheaded the Finance sector drive to pick the best. Overall, placement 2003 showed some sign of economic recovery as IT marched back into the B-Schools with renewed vigour and finance also performed better than expected. Probably good times have come for the class of 2004.
Interested Applicants
One of the sources of recruitment for an organization might be unsolicited applications (i.e. not in response to any advertisement or announcement of a vacancy) of candidates interested in working with the organization. Such candidates send in their applications to the management either through post or e-mail or in person and express their interest in employment with the company. If the organization does not have a suitable vacancy at that time, it can store these applications in its data bank and use them whenever the need arises. It is important that these applications are categorized and maintained in a proper way so that they can be used when there are vacancies. For example, Tata Indicom (Tata Teleservices Ltd.) has the concept of CV drop boxes. They maintain these boxes at all their offices for interested candidates to drop in their CVs. These CVs are collected, sorted and stored in the CV databank on a monthly basis. Whenever there is a need for recruitment, the HR department checks its CV bank to find suitable candidates before proceeding with the selection process.
Other Sources
Organizations can consider non-traditional sources of recruitment while searching for certain types of applicants. For instance, recruiting from associations of the handicapped can provide a highly motivated workforce and also help your organization in building the image of a good corporate citizen.
Most of the organizations, especially the large ones, use a mix of various methods and sources of recruitment and do not rely on any one particular method. Changing needs and market dynamics also determine the source of recruitment. Your organizational recruitment policy and human resource planning play an important role in defining sources and methods of recruitment.
Summary:
- Internal Search: Many organizations try and identify employees from within the organization, to be groomed to take on higher responsibilities.
- External Sources: Some of the popular methods are advertisements, campus recruitments, employee referrals, employment exchanges, private placement agencies etc.
- Advertisements: Advertisements have the widest reach and are quite effective for an organization in search of external talent.
- Employee Referrals: Employees working with an organization recommend their friends or acquaintances for vacant positions in the organization.
- Employment Agencies: Based on the type of clientele they serve, employment agencies can be broadly classified into public or state agencies, private agencies and head hunters.
- Educational Institutions: These institutions offer placement services to their students by trying to get some of the best companies in the market to their campus for recruitment.
- Interested Applicants: One of the sources of recruitment for an organization might be unsolicited applications (i.e. not in response to any advertisement or announcement of a vacancy) of candidates interested in working with the organization.
- Other Sources: Organizations can consider non-traditional sources of recruitment while searching for certain types of applicants. For instance, recruiting from associations of the handicapped can provide a highly motivated workforce and also help the organization in building the image of a good corporate citizen.