- The recruitment process is an important part of human resource management (HRM). It does not happen without proper strategic planning. Recruitment is defined as a process that provides the organization with a pool of qualified job candidates from which to choose. Before companies recruit, they must implement proper staffing plans and forecasting to determine how many people they will need. The basis of the forecast will be the annual budget of the organization and the short- to long-term plans of the organization—for example, the possibility of expansion.
Forecasting is based on both internal and external factors. Internal factors include the following:
- Budget constraints
- Expected or trend of employee separations
- Production levels
- Sales increases or decreases
- Global expansion plans
External factors might include the following:
- Changes in technology
- Changes in laws
- Unemployment rates
- Shifts in population
- Shifts in urban, suburban, and rural areas
- Once the forecasting data are gathered and analyzed, the HR professional can see where gaps exist and then begin to recruit individuals with the right skills, education, and backgrounds. This section will discuss this step in HR planning.
- A recruitment basically consists of three distinct phases. The work before posting an ad for the vacant position, the selection process and finally choosing the right candidate. Below we have put together a template for what a recruitment process might look like as inspiration for how to organize your future recruitments.
- This is where you first identify the need for a new employee. You set the frame for the position and a profile of required competencies and skills for the new hire. A part of the preparation process is also to put together a job ad and choosing the proper communication channels to spread the message. Do not forget to include hiring managers early on so they are in the know as to how the recruitment will unfold and what they are expected to do.
2) Receive applications
- Your ad has been posted and the pile of applications is steadily growing. An important step of creating a good candidate experience is to confirm to applicants that their application has been received.
- For those using an ATS (application tracking system, also known as a recruitment system) this phase of the recruitment process is more or less completely automated. Collecting and organizing applications as well as sending automated replies is done without effort. For those still receiving applications by email this step can be a real energy drainer, with a lot of time going to administration (organizing and registering applications) and replying to candidates.
3) Selection stage
- 1: Weed out unqualified applicants
- We have now started the selection process of the recruitment. The selection process can in turn be divided into several smaller steps, where each stage eliminates further candidates who are not suited for the position. A first selection is done to eliminate unqualified applicants who do not meet the basic requirements for the position.
- Basic requirements can for example be that a taxi-driver should have a driver’s license, that an installer of air conditioning units need to have the proper training background or that a nurse has a valid medical license.
- By using selection questions as part of the application process, basically asking if the applicant meets the requirement or not, you can quickly discern who does and does not meet the basic requirements. Remember to always get in touch with these applicants to inform them that they have not made it through to the next round, preferably making it clear that it is because they don’t meet the basic requirements.
4) Selection stage
- 2: Rating and ranking candidates
- The next step of the selection process is to figure out which applicants should be asked to come to an interview. In other words, you should rank candidates according to which are the most to least interest to meet with. The rating should be based on how well the candidate fits the profile of requirements and skills needed for the position.
- This is one of the most time-consuming steps where most spend their time reading through resumes and cover letters. An alternative method with much less need for hands on assessment, and thusly a time saver, is to use screening tests.
- Depending on the number of applicants or how many suits the profile, you may want to meet all remaining candidates, or just a chosen few at the top of the list.
5) Selection stage
- 3: Interviews
- Without going into detail about how to conduct a good interview, it is at least worth mentioning the role of the interview in the recruitment process. More often than not, it’s the first time you meet the candidate in person, and the meeting exists just as much for your sake as for theirs. With several rounds of interviews the candidate can get the opportunity to meet their future manager, ask If you reject a candidate after conducting an interview, you should provide some form of personalized message or be in touch with them through telephone. For a better candidate experience, it’s appreciated if you also include feedback to why the applicant didn’t move forward in the process.
6) Selection stage
- 4: Simulated work exercise
- Follow up on your top candidates from the last round of interview with conducted a simulated work exercise. It’s a way to check if the candidate you’ve assessed as being highly qualified and suited for the job can actually deliver in a future work situation.
- For some roles, the work exercise could be changed to conducting a “technical interview” where the candidate is questioned by a peer about their area of expertise to assess whether the candidate possesses the right problem-solving skills and understands working processes.
7) Offer and tying off loose ends
- The top candidate gets an offer, and once all papers have been signed it’s time to finish up the recruitment. All applicants should at some point be informed that they were not chosen for the position and that the position has been filled.
Helps to build your employer brand
- When a start-up starts to hire, the public and potential job candidates research the company. Your company's public profile and online presence are very crucial at this point as it marks the first impression of your company.
- What are the common types of recruiting challenges that organizations face?
- Each new generation brings its own nuances and challenges to the workplace and jobs market. Generation Y employees are no different. This generation—dubbed “millennials”—includes workers born between 1981 and 1996, according to the Pew Research Center. And while they’ve garnered plenty of flack as pampered or self-absorbed, they’re much more interesting than that.
- By 2025, millennials will constitute a majority of the workforce. So, as a recruiter or hiring manager, it’s crucial to understand what makes Generation Y tick. The essential element to recruiting and attracting the best millennial talent is effective communication that speaks to and understands their language and values. Here’s what you need to know to get started.
- Generation Y employees and the social media connection
- While it’s no secret that communication is increasingly facilitated by social tools and technologies, social networking is particularly relevant for millennials. According to the Pew Research Center, 86% of millennials use social media, compared to 76% of Gen X and 59% of Baby Boomers.
- The ubiquity of social media puts the onus on recruiters to improve social media recruiting, delivering a clear, compelling message that speaks to this generation’s expectations. But in order to fill the requisitions of today with the talent of tomorrow, creating and executing a strategy involves an understanding of the mindset—and motivations—of the young professionals you’re looking to place. When it comes to millennials, that means rethinking and reframing many of the pervasive misperceptions about Generation Y.
The debt-riddled trophy generation
- While millennials are commonly referred to as “The Trophy Generation,” the entitlement often associated with them waned at about the same time many of them obtained their inordinately expensive college degreesand entered one of the worst job markets on record. These factors have forced a shift from career idealism to career pragmatism; for many millennials, any job is a good job.
- For recruiters, this means you have a highly skilled, highly educated pool of available candidates who are likely to take assignments that more experienced workers might not accept, at salaries that are more aligned with current market conditions.
- That’s not to say Generation Y employees are easily exploited; in fact, it’s key for staffing professionals to add value to the recruiting conversation. Start by providing feedback, coaching, and a clear understanding of the hiring process. This will also help make them more informed job seekers and better candidates.
Speak to Gen Y priorities
- Besides their pragmatism, technological savvy, and education levels, millennials have certain characteristicsthat recruiters would be wise to understand, including that they are:
- Socially conscious: They care about the effect companies have on society and the environment.
- Ethnically diverse: The digital world enables friendships across races, ethnicities, and genders, and encourages millennials to value equality and diversity.
- Experience-driven: They prioritize experiences such as traveling and unique learning environments.
- Health conscious: They care about healthy food and exercise, placing particular emphasis on a work-life balance that values mental and physical health.
- Of course, there’s more to the millennial mindset, and individual priorities can vary greatly, but keeping these key values in mind will help you cater your recruitment efforts to common Gen Y characteristics.
- Focus on millennial messaging
- Social media provides an opportunity to go where millennial recruits “hang out” and communicate about topicsthat matter to them. The key for recruiters is to present opportunities as learning experiences and help Gen Y candidates understand how these roles can translate into a career — or at least, the next step on the ladder.
- Sharing job search tips and career content via Facebook or Twitter, whether original or repurposed, gives the candidate the incentive to stay active and engaged with your company brand. Consider providing content that’s worth sharing with their wider network of friends, who are also likely to be Gen Y talent.
- Focusing on the big picture is important, but the details are what really matter. Showcase success stories through social networks featuring real Gen Y workers. Create compelling evidence about what to expect, and how to exceed those expectations. And on an individual level, take the time to understand which priorities matter most to a given millennial recruit, and speak to those values.
Match Generation Y employees with jobs that fit
- Taking the time to better understand the next generation of workers will set you up for success as that generation takes over the workforce. By adjusting your recruiting strategies to the priorities and needs of the millennial candidate, you can make smarter hiring decisions and reduce costly turnover.
Different companies work with recruitment agencies to fill different needs. Typical reasons include:
- Providing support to hiring managers if there is no internal recruiting or human resources team
- Identifying hard to find or highly-specialized talent
- Finding job candidates from outside the company’s own networks of people
- Assisting in-house recruiter during a hiring spree or growth spurt
- Maintaining confidentiality during a sensitive search
- Replacing altogether the need for an in-house recruiting function
- Many agency recruiters are able to identify resumes that match the skills, abilities and experience required by a role. However, employers now emphasize the need to hire employees who fit their corporate values, vision and culture.
- A recruitment budget is essential to cover all the costs associated with creating a recruitment strategy, engaging and recruiting talent, and retaining them once they are hired. However, it is essential to plan the recruiting budget correctly to effectively drive recruitment activities, capture crucial metrics and find areas of improvement. Without a well-planned recruitment budget you always run risk of overspending and ruining your entire hiring plan for the year. Also it can be difficult to track all the expenses that were incurred in hiring a candidate, right from the advertising the job to arranging lunch for candidates if required.
Job boards or aggregators are important part of recruitment costs:
- Which job boards will you use to publish your requirements? You can refer to your source conversion report to get an understanding of which CV sources provided the most number of job applications and the maximum conversion. Gather results from niche, regional, industry-specific job boards and try to determine which boards worked well for which locations and positions. Based on the hires from the boards and aggregators you’ve used in the past, you can project what your expenses will be in the coming year.
Staff and Resources are an important component of recruitment budget:
- Recruiters’ salary, any external vendors or consultants you may use for hiring or any agency that helps you in recruitment account for a separate cost which must be considered while designing the recruitment budget. This depends on the number of people you are planning to hire in the next year. For example, 2 internal recruiters per 100 hires might be a good ratio.
Recruitment Advertising forms vital part of hiring costs:
- Recruiting the best candidates requires a number of activities such as conducting events to developing career sites and advertising on social media. These employer branding initiatives or general employer branding also needs to be taken into account while creating the recruiting budget. As with job boards, you have to consider which advertising channels worked well in past.
Recruitment Tools is an important part of recruitment budget:
- Today, technology goes hand in hand with recruitment. Without the service of proper technology, it is not possible to get the best candidates to work for you in this highly competitive space. An ATS such as Naukri RMS will not only automate your hiring process but also impact other recruitment metrics such as quality of hire, speed of hire, and candidate engagement. However, all these goodies come at some additional costs which again should be a part of the recruitment budget estimates. The cost incurred while deploying an ATS is justified with the end results in form of saved productivity, time and other resources.
Employee Referral Program is also one of the important components of recruitment budget:
- Employee referral is considered one of the best sources of hire and therefore investing in an employee referral program to hire candidate makes sense. Many companies offer their employees monetary rewards for referring qualified candidates. There are some other costs also involved which can be calculated based on the number of referrals that were recruited in previous years.
- Recruiting is one of the most invaluable functions in your organization, and we’re not just saying this because we’re recruiters. It’s true. As they say, a company is only as good as its employees, and if you want to find the top talent in your industry, investing in recruiting is a great place to start.
- However, getting approval to increase your recruiting efforts and budget is easier said than done. You will likely be required to build a strong business case and prove to your organizational leaders that investing in recruiting will strengthen your company and provide a good return on your investment.
Make Your Business Case by Measuring Results
- How do you make your case? It starts with measuring your current hiring and recruitment efforts. Here are some things you can track:
- Cost per hire: This is the average cost to hire a candidate
- Time to fill: This is the length of time it takes your company to fill a position from the time a job becomes available
- Quality of hire: This can be measured by looking at things like performance rating, impact on the company, being promoted and other factors
- Turnover rates: This involves measuring the number of employees who leave or are terminated
Once you have data on these hiring practices, it is important to present the following:
- The recruiting and hiring problem (poor hiring track record)
- How the recruiting issue negatively impacts your organization (cost, loss of performance, etc.)
- Suggestion of possible solutions and recommendations (hiring a recruitment firm)
- How presented solutions will positively impact the company (more efficient hiring, cost effectiveness, hiring top industry talent)
Your business case for increasing your recruiting budget could also include:
- Defining and changing the recruitment team internally and externally
- Allocation of resources
- Defining hiring goals and objectives
- Re-assessment of the company interview process, onboarding, and employee training programs
- Definition of key performance indicators for hiring