Recruitment And Selection

Employees make up the backbone of any company. They play a hugely important role in conducting the business's operations. Senior management sets the vision and the objectives, but the employees are responsible for putting in the work to keep the company on the right path to achieving its vision and objectives. Therefore it is crucial to understand the recruitment and selection process that companies use.

The importance of recruitment

What is recruitment?

Before discussing the recruitment process, you must first understand what has brought about the need for recruitment. In the case of a new business, employees would need to be recruited to perform operational tasks.

If a company wants to expand its operations, it will look to recruit employees. The expansion may be planned in terms of increasing production or manufacturing different products for new markets. The need for recruitment also arises when existing employees are leaving or have left the company. The company will then naturally want to replace these staff with new employees.

Types of recruitment

Recruitment may be done internally by the company’s Human Resources (HR) department, or it can be delegated to other recruitment companies with the expertise to effectively complete the process of recruitment. There are two primary types of recruitment:

Internal recruitment – In this type of recruitment, a company recruits employees from the existing employees. It is usually done by promoting the existing employees to more senior positions or by transferring them to different departments. A vacancy notice is posted on the company’s internal communication platforms, and in some cases senior managers recommend an employee for a new job role.

There are many benefits to internal recruitment. For example, the company does not have to advertise externally, thereby reducing costs. Existing employees are already familiar with the company and its working environment; therefore, they would not take too long to adjust to new roles.

External recruitment – In this type of recruitment, a company wants to hire people from outside the company. External recruitment is necessary when a company is either new or wants to expand its operations by producing new products for new markets.

The job is typically advertised on the internet, in newspapers, magazines, etc. This recruitment can be done either by the company’s HR department or the external recruiters. It is a good method to add fresh talent to the existing pool of employees but it is more costly than internal recruitment.

The method of recruitment

Figure 1 below outlines the recruitment process:

Recruitment needs identification – The process starts with identifying the need for recruitment. A new business opening, expansion, or job role in the company are all examples of recruitment needs.

Job analysis – Job analysis should be conducted in the next step. This analysis helps in interpreting the role of the job. Important details such as job description and applicant specifications are identified through job analysis. These analyses help in determining the duties associated with the job and the key attributes a potential applicant must have to be considered for the job.

Job advertisement – In this step, the jobs are advertised. Appropriate advertising channels are used for specific recruitments. Internal and external advertisements are employed depending on the type of recruitment a business is looking for.

Creation of a pool of applicants – People apply for the jobs after reading about them via advertisement. This process continues till the application deadline. Finally, a pool is created of all the applicants.

Selection is an integral part of the overall recruitment process, happening after the creation of a pool of applicants. Once the HR department or the external recruiter has a list of applicants, they start the process of selection.

The whole process depends on the effectiveness of selection. Applicants are shortlisted at this stage, and they are put through different tests to check their competence. A wrong selection could put the entire recruitment process at risk, meaning a loss of financial resources, time, and effort.

Recruitment and Selection: Method of selection

The following methods are the most used by employers in the selection process.

Interview – This is the most common method used in selection. A panel comprised of two or more people interviews applicants. Different questions related to the applicant and the job are asked during the interview. This helps give a general impression of the applicant.

Psychometric test – In this kind of test, multiple-choice questions are asked from the applicant. This test helps in determining the personality of the applicant. It is an effective method to use in the selection because it shows whether the applicant is a right fit for the role and the company culture or not.

Assessment centre – In this method, applicants are required to complete a set of tasks. These tasks are usually like the actual tasks on the job. It could give a comprehensive analysis of the applicant’s expertise and personality for the role.

Why an effective recruitment and selection process is important

An effective recruitment and selection process ensures the appointment of the right employees for the job. It means employees who are skilled and experienced in the field join the workforce. It could be a costly process, but its benefits outweigh its costs.

Increase in productivity – Having skilled and experienced employees would increase productivity in any business. Employees can produce more in less time. This means the cost of production could decrease as the production becomes efficient.

Quality products – Employees with expertise and knowledge produce quality products. It often happens that quality is compromised during production due to a lack of knowledge and skill. Having competent employees certainly reduces the likelihood of a lapse in the production process.

Better customer service – Customer service is an important factor in the success of a business. Employees, who are best at their jobs, are better equipped to give value to customers. They know the product and can assist the customers in a better way. This will result in customer satisfaction and better customer service overall.

Higher employee retention – Effective recruitment and selection process ensures appointing employees who are more suited and motivated for the job. Employees with motivation who enjoy their work are less likely to leave their jobs. For businesses, this means a higher employee retention rate. This is significant because the whole process of recruitment can cost a lot. Having long-term employees mean that employers do not have to spend on recruitment repeatedly.

Recruitment and Selection: Employment contracts

An employment contract is a legal agreement between an employer and an employee. Important details about the job are included, such as salary, duties, holidays, and the duration of the contract. Businesses hire candidates as either full-time or part-time. A full-time employee is usually expected to work five days a week and eight hours a day, whereas part-time employees' weekly working hours are less than 40 hours a week.

There is also another kind of employment contract called a job-share. This is a contract in which two or more people share a part-time job. From duties to salary, everything is divided according to the level of work they are doing.

Finally, there is a zero-hour contract in which the employer is not obligated to give any minimum number of working hours to the employee. Such employees are called into work when there is more work available than usual.

The process of recruitment and selection is crucial for any business. It ensures that the business has the right employees to perform the operational tasks. Financial costs can be saved by using this process effectively. There are many benefits associated with it that have a significant impact on the success of the business.