Professional Documents
Culture Documents
Internal promotions
Referrals
Former employees
MERITS
It improves the morale of employees, for they are assured of the fact that they would be
preferred over outsiders when vacancies occur
The employers are in a better position to evaluate those presently employed than outside
candidates. This is because the company maintains a record of the progress,
experience and service of its employees
It promotes loyalty among the employees, for it gives them a sense of job security and
opportunities for advancement
As the person in the employment of the company are fully aware of, and well acquainted
with, its policies and know its operating procedures, they require little
training, and the chances are that they would stay longer in the employment
of the organization than a new outsider would
It is less costly than going outside to recruit.
DEMERITS
It often leads to inbreeding, and discourages new blood from entering an organization
There are possibilities that internal sources may “dry up”, and it may be difficult to find
the requisite personnel from within an organization
Since the learner does not know more than the lecture, no innovation worth the name
can made. Therefore, on jobs which require marginal thinking, this practice
is not followed
As promotion is based on seniority, the danger is that really capable hands may not be
chosen.
EXTERNAL SOURCES
External Sources of recruitment refer to Prospective candidates outside the enterprise.
They usually include new entrants to the labor force.
The external sources are
Advertisement in newspapers
Campus and Online recruiting
Casual job seekers
Consultants and Job fair
MERITS
.External sources provide the requisite type of personnel for an organization, having skill,
training and education up to the required standard
Since persons are recruited from a large market, the best selection can be made without
any distinctions of caste, sex or color
In the long run, this source proves economical because potential employees do not need
extra training for their job
DEMERITS
However, this system suffers from what is called “brain drain,” especially when
experienced persons are raided or hunted by sister concerns.
RECRUITMENT TECHNIQUES
RECRUITMENT TECHNIQUES
These techniques are classified as traditional techniques and modern techniques.
v Traditional Techniques include:
Promotion
Transfers and
Advertising
Promotion: Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher level jobs if the
management gives them the assurance that they will be promoted to the next higher
level.
Transfers: Employees will be stimulated to work in the new sections or places if the
management wishes to transfer them to the place of their choice.
Advertising: Advertising is a widely accepted technique of recruitment, though it mostly
provides one way communication. It provides the candidates in different sources, the
information about the job and company and stimulates them to apply for job. It includes
advertising through different media like newspaper, magazines of all kinds radio,
television etc.
v Modern techniques:
Modern recruitment techniques to stimulate prospective employees to apply for jobs in
the company include:
1) Scouting
2) Salary and perks and
3) ESOPs
Scouting
It means sending the representations of the organizations to various sources of
recruitment with a view to persuading or stimulating the candidates to apply for jobs.
Salary and perks:
Companies stimulate the prospective candidates by offering higher-level salary, more
perks, quick promotions etc.
ESOPs:
Companies recently started stimulating employees by offering stock ownership to the
employees through their employees stock ownership programmes
PROCESS OF RECRUITMENT
STEPS IN RECRUITMENT PROCESS
The process can be separated into three components:
The process starts with job planning, which among other things involves analysis of the
present and future needs for personnel with different kinds of competence and for
different tasks. This first component of the process may result in a decision to
prepare for new jobs and announce job opportunities.
In the second step of the search process after a vacancy has been defined on the basis of
job planning, the employer has to make his choice between alternate ways to
spread and formulate information about the vacant position. He can, for example
choose between different ways to formulate the information about what experience
and personal abilities of the potential employee, etc.,
The third and final search decision confronting the employer is to determine which one of
the applicants to hire for the job opening.
Basically, employers’ decisions regarding the use of different search channels and
judgments regarding the suitability of job applicant relate to the problems of asymmetric
information; job applicants have more knowledge of their capabilities than the
prospective employers do. The interaction of productivity difference among job applicants
and employers’ uncertainty as regards the productive capabilities of individuals may
explain decisions taken by the employers both in steps two and three of the recruitment
process. Hiring is a decision under uncertainty in the sense that the productivity of job
applicants in not directly observable. Therefore the employers are interested in obtaining
information that can serve as good statistic for applicant’s job capabilities.
The probability that a job seeker and employer shall find each other and that an
agreement about employment shall be reached, depends on the behavior of both agent
and on their characteristics. In the traditional search theory regarding value of his/her
lifetime income, the reservation wage is important for the probability that a person shall
get a job within a given period of time and thereby for the expected length of the
unemployment spell.
In a corresponding way, the concept of reservation productivity can be used for
employers’ recruitment of personnel. The assumption regarding employers is that they
try to maximize their profit by employing persons with a value of their expected marginal
product that is higher than or equal to their expected total wage or cost. Everything else
being equal higher requirements put on the process to be employed means lower
probability to find competent job seekers and longer expected vacancy durations. Efforts
to maximize income and profit also influence their choice of search channels.
A job seeker can be assumed to have higher probability to find a job soon, when actively
using several different search channels and an employer can be assumed to rise that
planning in general is significant. The efficient utilization of organizational resources-
human, capital and technological does not just happen without the continual estimation
of future requirements and the development of systematic strategies designed toward
goal accomplishments.
The HR planning is the preliminary step of recruitment process. It is the process by which
an organization should move from its current manpower position to its desired manpower
position. It may be viewed as for seeing the human resource requirements of as
organization an its feature supply making necessary adjustments between the two
organizational plans and also foreseeing the possibility of developing the supply of human
resources in order to match it with the requirements by introducing necessary changes in
the functions of HR.
PERFORMANCE OF RECRUITMENT
Recruitment has always been a never-ending process in the organization scenario.
Significant transitions have been brought in the long run of recruitment but the major
concentration has always been engaging persons in employment and the initial setup for
this. Recruitment is followed in the all-different sector, be it manufacturing concern or a
service sector. Recruitment is not just confined to its sense it covers the aspects from
selection to training. Despite the usage of various terminologies describing each step of
the recruitment process, it is a chain link where the start is not distinct.
Recruitment involves seeking and attracting a pool of people from which qualified
candidates for job vacancies can be chosen. Recruitment system can be subdivided into
4 major sub systems.
INTERVIEW
The interview should first of all, make the prospect listen. This happens if the agent
refers to things which interest him, his needs, and lot of things that matter to him,
without making it appear like patronizing or flattering. Any hint that the prospect’s
decisions of the (relating to insurance or investments) appropriate or need to be
changed, will have the opposite effect. The proposal being made by the agent should be
seen as beneficial and complimentary to the existing arrangements.
The agent should follow some simple rules like the ones mentioned below
Do not talk more than necessary.
Ask questions, and make the prospect talk. Make it interactive.
Create doubts and get him to ask questions for clarification.
Listen to the prospect’s point of view carefully. Do not interrupt, contradict or argue.
People feel good when they are listened too any then they listen better.
Make your talk interesting. Tell a true story of how life insurance has helped families in
various situations and how families have suffered without it. Make the story have a
personal appeal. Use names for his children or relatives. That will make the story
more appealing.
Use pictorial aids, graphics and written presentations. If you have a lap top use Power
Point presentation.
Let the prospect write down the figures of his needs, of his liabilities, of benefits of the
insurance plan and of the premium. This ensures concentrated attention.
Let your advice be in the best interest of the prospect not your interest.
Successful agents prepare their presentations carefully every time. They rehearse in
their minds the way the interview should proceed. This ensures that they do not fumble
for ideas or the right words. The ideas, too, come in the most natural and logical
sequence. Lastly, a prepared sales talk conveys more enthusiasm and conviction than a
talk without preparation. A well prepared approach ensures a favorable interview.
OBJECTIONS
Prospects will raise objections, one after another. Objections are a part of every sale. If
prospects did not object, there would be no need for salesmen. People would buy on their
own. Also, if the prospect remained silent, you will not know how his mind is working.
The objection is his way of referring to the further information that he needs.
The entire selling process is, therefore, interspersed with objections. At the stage of
approach itself the prospect may say –‘I do not believe in life insurance’, ‘I do not need
life insurance’, and the like. Such objections are not against life insurance but rather
against the agent whom he wants to put off gracefully, or signs of indecision, or of a fear
of being “forced” into buying.
Then there are objections raised at the closing stage, such as, ‘I will think it over’, ’I will
consult my father’, ‘See me next month when I get my confirmation/increment/
promotion’, etc. these objections reveal an inability to take a major decision.
CLOSING
The ‘close’ has to be sensed and timed, because very few prospects will , of their own
accord, say ‘I will insure’. The agent sensing the close, takes the prospect’s positive
decision for granted by asking for his implied (not direct) consent. “Will you pay the
premium by cash or cheque?” do you have your school certificate at hand now or can you
give it tomorrow?” (Affirmative choice). A positive answer to any of these questions is an
indication to go ahead. If the interview does not end with a close and is put off to
another time, the interview will have to be gone through all over again.
In selling life insurance, an appeal to the heart of the prospect is more useful than an
appeal to the head. Life insurance is bought for the prime reason of protecting the loved
ones, affording a good start in love to the children, duty to aged parents, or perhaps a
desire for self –preservation in old age. So a sale can be accomplished only when an
appeal is made to one of these motives; an appeal to sentiments of love, of affection and
of concern. The agent need not be an expert in psychology to do this.
CONCLUSION
From this I conclude Recruitment is one of the main departments which place the right
candidates to the right job. The recruiters should identify the best candidates from
different sources and job sites .Recruiters should identify the problems faced during
recruitment and find an alternative to make work efficiently.
REFERENCE
BOOKS REFERRED
1. Aswathappa, HUMAN RESOURCES AND PERSONNEL MANAGEMENT, TATA McGraw
Hill, 2003.