recruitment process in hrm

Complete 7 Steps in Recruitment Process in HRM | Business Studies 2024

Main 7 Steps in Recruitment Process in HRM

  1. Manpower Planning:

Definition and Importance:

In the Recruitment process in HRM, Manpower planning is a fundamental aspect of human resource management. It covers forecasting future workforce requirements and working out strategies to meet those needs effectively.

It plays an important role in synchronizing human resources with organizational objectives, enhancing productivity, efficiency, and competitiveness.

Key Steps in Manpower Planning:

  1. Demand Forecasting:
  • Demand forecasting anticipates future manpower needs based on factors such as business growth projections, market trends, and technological advancements.
  • It helps HR professionals determine the quantity and quality of talent required to support organizational goals.
  • Supply Analysis:
  • Supply analysis evaluates the existing workforce skills, capabilities, and availability to assess the organization’s internal talent.
  • This involves analyzing employee data, turnover rates, and skill gaps to understand current staffing capabilities.
  • Gap Identification:
  • Gap identification involves analyzing disparities between projected manpower demand and available supply.
  • HR professionals conduct gap analysis to identify potential skill shortages or surplus resources and develop strategies to address these discrepancies effectively.
  • Strategic Formulation:
  • Strategic formulation involves developing and implementing plans to align the workforce with organizational objectives.
  • This includes initiatives such as recruitment, training, talent development, and succession planning to make sure the organization has the right people in the right roles.

Dynamic Nature of Manpower Planning:

  • Manpower planning is a dynamic process that develops in response to changing business needs and external factors.
  • Organizations continuously monitor and adjust their plans to adapt to market conditions, technological advancements, and organizational priorities.
  • Manpower planning is a base for organizations to forecast and address future workforce requirements.

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2. Job Assessment

Examining its Elements:

Job assessment is a systematic process used to examine the nature of a job and its requirements.

It helps in understanding the tasks, duties, responsibilities, and skills associated with a particular role.

Job assessment comprises three important elements:

  1. Job Description:
  • A job description is a detailed document that outlines the tasks, duties, and responsibilities expected from an employee in a specific position.

For example, in the role of a customer service representative, the job description might include responsibilities such as addressing customer inquiries, resolving complaints, and maintaining accurate records of interactions.

b. Job Specification:

  • Job specification refers to the qualifications, skills, abilities, and other characteristics required to perform a job successfully.
  • It provides a clear outline of the qualifications and competencies expected from candidates applying for the role.

For example, the job specification for a customer service representative may include requirements such as excellent communication skills, problem solving abilities, and proficiency in relevant software applications.

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c. Personnel Specification

  • Personnel specifications expand upon job specifications by considering additional attributes such as personality traits, values, and work related behaviors that contribute to job performance.
  • These specifications provide insights into the ideal candidate profile beyond technical qualifications.

For example, for the role of a customer service representative, personnel specifications may include attributes like patience, empathy, and a customer centric approach.

Importance of Job Assessment:

  • Job assessment serves as a cornerstone in various human resource management practices, including recruitment, selection, training, performance appraisal, and compensation.
  • It provides HR professionals and managers with a broad perceptive of job requirements and helps to make informed decisions throughout the employee lifecycle.
  • It synchronizes job requirements with organizational objectives. Job analysis facilitates the recruitment of suitable candidates, enhances employee performance and satisfaction, and contributes to organizational success.
  • Job evaluation is an important tool in for effective deployment of human resources and achieving organizational goals.

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3. Spotting of Employment Openings:

Examining the Process:

In the recruitment process in HRM, identifying job vacancies is a basic step in determining where the organization needs to fill positions.

This can be done by two primary methods:

  1. Manpower Plan Requirements:
  • The organization’s manpower plan serves as a strategic framework for determining its workforce needs.
  • It outlines the number and types of positions required based on factors such as organizational goals, growth projections, and operational requirements.
  • Proper tuning between recruitment efforts with the manpower plan, organizations confirms that vacancies are identified in accordance with broader organizational objectives.

b. Job Requisition from Departments:

  • Alternatively, job vacancies can be identified through job requisitions submitted by specific departments, branches, or offices within the organization.
  • When a department identifies a need for additional manpower due to factors such as expansion, restructuring, or attrition, it initiates a job requisition outlining the position’s requirements and responsibilities.
  • This method let departments to address their specific staffing needs and  makes sure that recruitment efforts are adapted to meet departmental requirements.

Importance of Job Spotting:

  • The identification of vacancies is a fundamental aspect of the recruitment process in HRM as it provides clarity on where recruitment efforts should be directed.
  • Through accurately identifying vacancies, organizations can make certain that recruitment strategies are coordinated with organizational objectives and focused on areas significant to the organization’s success.
  • Whether derived from the manpower plan or departmental requisitions, the identification of vacancies supports strategic workforce planning initiatives and facilitates the efficient allocation of resources.
  • Effective vacancy identification is always important for achieving organizational goals and maintaining a competitive edge in the market.

4. Budget Formulation in the Recruitment Process in HRM:

    Examining the Process:

    In the Recruitment process in HRM, setting a budget is really important. This means that how much a company wants to spend on recruiting new human resources.

    There are two main points to consider:

    1. Allocation of Financial Resources:
    • At the core of budget preparation lays the organizational decision making process regarding the allocation of financial resources designated for recruitment activities.
    • This decision considers various aspects, including the organization’s financial capability, strategic priorities and anticipated recruitment demands.
    • Setting a budget confirms that there are enough financial resources available to carry out recruitment activities effectively.

      b. Consideration of Time Constraints:

      • Beside budget allocation, the choice of recruitment methods depends on time constraints, urgency to fill positions, and budgetary provisions.

      For example, organizations with tight deadlines may choose costly methods like hiring external agencies or extensive advertising.

      • Those with more time flexibility may opt for cheaper strategies like internal promotions or employee referrals.

      Importance of Budget Formulation:

      • The preparatory phase of budgeting in recruitment is instrumental in facilitating cautious resource allocation and guiding decision making processes throughout the recruitment cycle.
      • As a result of establishing clear financial parameters, organizations lessen the risk of overspending on recruitment initiatives while promising the provision of adequate resources to attract and retain top talent.
      • Budget preparation facilitates the prioritization of recruitment activities based on available resources and strategic objectives.
      • Effective budget preparation allows organizations to optimize their recruitment efforts and achieve their staffing objectives within financial constraints.

      5. Spreading and Sharing of Job Information:

      1. Print Media Advertisement:
      • Advertising is a powerful way to attract potential human resources. A clear and detailed advertisement is a key to find the right candidates.

      Be Clear and Detailed:

      • Make sure your ad clearly explains the job description including all the requirements like qualifications, skills, job locations, age, experience and specifications needed for the role.

      Choose the Right Platform:

      • Place your ad in newspapers where your target candidate is likely to see it. You can also put up posters around your company, nearby businesses, colleges, and other relevant places.

      b. Electronic Media Advertisement:

      • The internet has become a popular tool for recruitment. Many companies have their own websites where job seekers can study about the company’s profile and available positions.
      • The internet and social media have also become indispensable tools for recruitment. Many companies use various online platforms to reach potential candidates.

      Job Portals:

      • Platforms like naukri.com, shine.com, timesjobs.com etc connect job seekers with employers.
      • Job seekers can upload their resumes and apply for positions, while employers can post job listings and search for candidates.

      Social Media Platforms:

      • Social media platforms like LinkedIn.com, Facebook, Twitter, and Instagram are also valuable resources for recruitment.
      • Employers can use these platforms to share job openings and to connect with potential candidates and can also display their company culture.
      • Job seekers can follow company pages, join relevant groups, and network with professionals in their field to find new and better job opportunities.

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      Benefits for Both:

      • Social Media and Job Portals provide a convenient and accessible way for both employers and job seekers to connect and interact.
      • With the majority of people are active on social media platforms and accessing the internet via smart phones. These platforms offer 24/7 accessibility for both.
      • A combination of traditional advertising methods, online job portals, and social media platforms, companies can reach a multiple candidates and make the recruitment process in HRM more effective and efficient.

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      6. Application Processing, Screening and Shortlisting:

      • Once the company receives application forms from potential candidates, the next step is to carefully review each one to check they meet the required eligibility criteria.
      • This includes factors like relevant experience, credentials, skill set, and age. Any applications that do not meet these criteria are respectfully declined.

      a. Conducting Formal Interviews:

      • For candidates who pass the initial screening, the company arranges formal interviews. Candidates are informed of the interview details, such as the date, time, and location.
      • Nowadays, to make the process more efficient, companies often start with a telephonic interview or a video call. This helps save time and resources for both the candidate and the company.

      b. Adapting to Telephonic and Video Interviews:

      • Using telephonic or video interviews allows recruiters to assess candidates remotely. If a candidate passes this initial screening, they may then be invited for a face-to-face interview.
      • Some companies may also conduct multiple rounds of interviews, involving different levels of management.

      c. Final Face-to-Face Interview:

      • The last step in the interview process is usually a face-to-face meeting. This allows recruiters to evaluate the candidate’s suitability for the role in person by assessing their communication skills and overall conduct.
      • Thorough screening and interview process the companies can effectively identify and select the best candidates for their vacant positions.

      7. Additional Hiring Approaches:

      a. External Agencies:

      1. Recruiting through external agencies becomes a viable option for companies dealing with time constraints, resource limitations, or the need for confidentiality.
      2. These agencies specialize in sourcing qualified candidates for different roles within the organization.
      3. These agencies play an important role as partners in the recruitment cycle.
      4. Their expertise and extensive networks support in pinpointing the right talent for the job.
      5. Companies benefit from the external perspective and the ability to tap into a wider range of candidates.
      6. Partnering with recruitment agencies can streamline the hiring process by saving time and effort for internal HR teams.

      Role of Employment Agencies:

      • Employment agencies primarily focus on recruiting candidates for lower and middle management roles.
      • They act as intermediaries between job seekers and companies, matching candidates with suitable job opportunities.

      Role of Head Hunters:

      • Head hunters specialize in recruiting candidates for higher-level managerial positions.
      • They conduct targeted searches to identify best talent and approach potential candidates directly.

      Payment and Fees:

      • Recruitment agencies typically charge a percentage of the selected candidate’s annual salary as their fee.
      • This fee, which is usually around 8.33% of the candidate’s annual CTC, serves as compensation for their services.

      Legal Formalities:

      • In some states of India, companies are required to inform the employment exchange of vacancies at the workman level.
      • This makes certain compliance with legal regulations and provides job opportunities to a wider range of candidates.
      • By expertise of the services of employment agencies and head hunters the companies can access a broader talent area and streamline their recruitment process in HRM.

      b) Campus Hiring:

      • Campus recruitment is a common practice where organizations visit colleges and universities to hire fresh graduates.
      • During these recruitment procedures the company representatives provide an overview of the organization, its culture, and available opportunities.
      • Candidates then participate in group discussions to demonstrate their communication and teamwork skills.
      • Qualified candidates proceed to personal interviews where recruiters further evaluate their suitability for the roles.
      • Campus recruitment offers several benefits like, access to a different fresh talent and the opportunity to establish long term partnerships with educational institutions.
      • This process is often repeated annually to maintain a steady flow of new talent into the organization.

      c. Walk in Interview:

      • Walk-in interviews are a convenient and efficient method for companies to connect with potential candidates and expedite the recruitment process HRM.
      • Companies identify job vacancies and advertise walk-in interviews through various channels such as job portals and social media platforms, detailing the job description, the date, time, and location.
      • On the scheduled day of interview candidates visit the company premises without prior appointments.
      • Interviews are conducted on a first come first serve basis. HR personnel or hiring managers assess candidates based on their qualifications, experience, and skills.
      • The most suitable candidates are then shortlisted for further consideration.
      • Following the interviews selected candidates undergo documentation and on boarding processes.
      • Walk-in interviews provide a direct interaction opportunity for both candidates and recruiters and the companies to quickly fill vacant positions and candidates to explore job opportunities efficiently.
      • Walk-in interviews are not just held at company offices. They can happen in hotels, conference centers, or even schools.
      • Big companies sometimes go to different cities to find the right people for the job.
      • This helps them reach more candidates and hire locals. So, if you see a job interview happening at a hotel nearby, it could be a walk-in interview.

      d. Employee’s Referrals

      • Employee referrals means when companies ask their employees to suggest friends or known one for job openings.
      • Employees share resumes of people they know with the HR department. The HR team checks these resumes to see if they match the job requirements.
      • If they do then the candidates are invited for interviews.
      • Successful candidates may then get job offers.
      • Employee referrals help companies to find good fits quickly and often lead to better hires because the candidates already have some idea about the company.

      Companies follow above 7 steps in recruitment process in HRM to find the right people for job openings. It starts with planning and understanding the jobs they need to fill. Then they advertise the positions and collect applications from interested candidates. Companies may also use methods like walk-in interviews or employee referrals to find potential hires. After that they interview candidates and select the best ones for the job. And companies can build a strong team of skilled workers to help them succeed.

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