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Recruitment refers to the overall process of attracting, selecting and appointing suitable candidates to a one or more jobs within an organisation, either permenant or temporary. The term may sometimes be defined as incorporating activities which take place ahead of attracting people, such as defining the job requirements and person specification, as well as after the individual has joined the organisation, such as induction and onboarding. Recruitment can also refer to processes involved in choosing individuals for unpaid positions, such as voluntary roles or training programmes.
Depending on the size and practices of the organization, recruitment may be undertaken in-house by managers, human resource generalists and/or recruitment specialists. Alternatively, parts of the process may be undertaken by either public-sector employment agencies, commercial recruitment agencies, or specialist search consultancies.
The use of internet-based services and computer technologies to support all aspects of recruitment activity and processes has become widespread and has revolutionised recruitment activities ranging from recruitment agencies sourcing candidates through online job boards and social media, or human resource professionals using assessment or job simulation programs as part of the selection process.
Internal recruitment refers to the process of a candidate being selected from the existing workforce to take up a new job in the same organization, perhaps as a promotion, or to provide career development opportunity, or to meet a specific or urgent organizational need. An advantage of this approach includes the organization's familiarity with the employee, their competencies (insofar as they are revealed in their current job) and their ability to trust said employee. It can also be quicker and can have a lower cost-to-hire someone from another part of the same organization.
A temporary internal appointment for a period of a few months sometimes occurs, after which the employee would normally be expected to return to their previous job, is known as a secondment; someone on a secondment is said to be seconded to the new team. Secondments may also take place between related organizations.
In situations where multiple new jobs are created and recruited for the first time, a job analysis might be undertaken to document the knowledge, skill, ability, and other personal characteristics required for the job. From these the relevant information is captured in such documents as job descriptions and job specifications. Often a company will already have job descriptions that represent a historical collection of tasks performed. Where already drawn up, these documents need to be reviewed or updated to reflect present day requirements. Prior to initiating the recruitment stages a person specification should be finalized to provide the recruiters commissioned with the requirements and objectives of the project.
Sourcing is the use of one or more strategies to attract or identify candidates to fill job vacancies. It may involve internal and/or external advertising, using appropriate media, such as local or national newspapers, specialist recruitment media, professional publications, window advertisements, job centers, or in a variety of ways via the internet. Alternatively, employers may use recruitment consultancies or agencies to find otherwise scarce candidates who may be content in their current positions and are not actively looking to move companies. This initial research for so-called passive candidates, also called name generation, results in a contact information of potential candidates who can then be contacted discreetly to be screened and approached.
Suitability for a job is typically assessed by looking for that are required for a job. These can be determined via: screening résumés (also known as curriculum vita or CV); job application; Biographical Information Blanks which is an assessment that asks for a more extensive background than an application; or a interviews. Various psychological can be used to assess to assess a variety of KSAOs, including literacy. Assessment are available to measure physical. Many recruiters and agencies use applicant tracking systems to perform the filtering process, along with software tools for psychometric testing and performance based assessment. Performance based assessment is a process to find out if job applicants perform the responsibilities for which they are applying. In many countries, employers are legally mandated to ensure their screening and selection processes meet equal opportunity and ethical standards.
In addition to the above selection assessment criteria, employers are likely to recognize the value of candidates who encompass "soft skills" such as interpersonal or team leadership, and have the ability to reinforce the company brand through behavior and attitude portrayal to customers and suppliers. Multinational organizations and those that recruit from a range of nationalities are also concerned candidates will fit into the prevailing company culture.
"Lateral hiring" refers to the hiring of someone into a position that is at the same organizational level or salary. It could mean hiring someone from another, similar organization, possibly luring them with a better salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law firm. A lateral hire may also refer to an employee moving from one position to another within the same organization.
There are a variety of recruitment approaches and most organizations will utilize a combination of two or more of these as part of a recruitment exercise or to deliver their overall recruitment strategy. There are six common models:
Many employers undertake their own in-house recruitment, using their human resources department, front-line hiring managers and recruitment personnel who handle targeted functions and populations. In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own website and other job boards, coordinate internal employee referrals, target and headhunt external candidates (much like an external agency or search firm), work with external associations, trade groups and/or focus on campus graduate recruitment. Some large employers choose to outsource all or some of their recruitment process (recruitment process outsourcing), however a more common approach is for employers to introduce referral schemes where employees are encouraged to source new staff from within their own network.
An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a company or organization and typically works in the human resources department. Internal recruiters may be multifunctional, serving in an HR generalist role or in a specific role focusing all their time on recruiting. Activities vary from firm to firm but may include, screening CVs or résumés, conducting aptitude or psychological testing, interviewing, undertaking reference and background checks, hiring; administering contracts, advising candidates on benefits, onboarding new recruits and conducting exit interviews with employees leaving the organization. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
An employee referral program is a system where existing employees recommend prospective candidates for the job offered, and in some organizations if the suggested candidate is hired, the employee receives a cash bonus. Job seekers may also be referred or recommended by a third-party affiliate within a particular field based on certain criteria resulting in a lead or interview with a potential future employer.
In some cases the organization provides the employee referral bonus only if the referred employee stays with the organization for stipulated time duration (most cases 3–6 months). Referral bonus depends on the grade of the referred employee, higher the grade then higher the bonus however, this method is not used for senior level hiring.
An external recruitment provider may suit small organizations without the facilities to recruit. Typically in large organizations, a formal contract for services is negotiated with a specialist recruitment consultancy. These are known in the industry as Recruitment Process Outsourcing. Recruitment process outsourcing may involve strategic consulting for talent acquisition, sourcing for select departments or skills, or total outsourcing of the recruiting function.
Sometimes companies send recruiters to colleges to interview prospective employees.
Employment agencies operate in both the public and private sectors. Publicly funded services have a long history, often having been introduced to mitigate the impact of unemployment in economic downturns, such as those which form part of the New Deal program in the United States, and the Jobcentre Plus service in the UK.
The commercial recruitment industry is based on the goal of providing a candidate to a client for a price. At one end of the spectrum, there are agencies that are paid only if they deliver a candidate that successfully stays with the client beyond the agreed probationary period. On the other end, there are agencies that are paid a retainer to focus on a client's needs and achieve milestones in the search for the right candidate, and then again are paid a percentage of the candidate's salary when a candidate is placed and stays with the organization beyond the probationary period.
The agency recruitment industry is highly competitive, therefore agencies have sought out ways to differentiate themselves and add value by focusing on some area of the recruitment life cycle. Though most agencies provide a broader range of service offerings, at the two extremes are the traditional providers and the niche operators.
Also known as employment agencies, recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agency’s books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a contract or direct basis.
'Specialized recruiters' exist to seek staff with a very narrow specialty. Because of their focus, these firms can very often produce superior results due to their ability to channel all of their resources into networking for a very specific skill set. This specialization in staffing allows them to offer more jobs for their specific demographic, which in turn attracts more specialized candidates from that specific demographic over time building large proprietary databases. These niche firms tend to be more focused on building ongoing relationships with their candidates as is very common the same candidates are placed many times throughout their careers. Online resources have developed to help find niche recruiters. Niche firms also develop knowledge on specific employment trends within their industry of focus (e.g., the energy industry) and are able to identify demographic shifts such as aging and its impact on the industry.
Financial arrangements operated by agencies take several forms, the most popular are:
An executive search firm or "headhunter" are industry terms for a third-party recruiter who seeks out candidates often once normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have existing industry experience and contacts. They may use advanced sales techniques. They may also purchase expensive lists of names and job titles but more often will generate their own lists. They may arrange a meeting or a formal interview between their client and the candidate and will usually prepare the candidate for the interview, help negotiate the salary and conduct closure of the search. They are frequently members in good standing of industry trade groups and associations. Headhunters will often attend trade shows and other meetings nationally or even internationally that may be attended by potential candidates and hiring managers.
Headhunters are typically small operations that make high margins on candidate placements (sometimes more than 30% of the candidate’s annual compensation). Due to their higher costs, headhunters are usually employed to fill senior management and executive level roles. Headhunters are also used to recruit very specialized individuals; for example, in some fields, such as emerging scientific research areas, there may only be a handful of top-level professionals who are active in the field. In this case, since there are so few qualified candidates, it makes more sense to directly recruit them one-by-one, rather than advertise internationally for candidates. While in-house recruiters tend to attract candidates for specific jobs, headhunters will attract both candidates and actively seek them out as well. To do so, they may network, cultivate relationships with various companies, maintain large databases, purchase company directories or candidate lists and cold call prospective recruits.
These firms are the new hybrid operators in the recruitment world, able to combine the research aspects (discovering passive candidates) of recruiting and combine them with the ability to make hires for their clients. These firms provide competitive passive candidate intelligence to support companies' recruiting efforts. Normally they will generate varying degrees of candidate information from those people currently engaged in the position a company is looking to fill. These firms usually charge a daily rate or fixed fee. Executive research can help companies uncover names that cannot be found through traditional recruitment methods and will allow internal recruitment and resourcing managers more time to deal with face to face interviews.
Such sites have two main features: job boards and a résumé/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a résumé to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide e-recruitment software and services to organizations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business performance.
The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their companies, co-workers, customers or others might see their resumes.
The emergence of meta-search engines allows job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many other job search engines which index solely from employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow job-seekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites.
The emergence of the Internet provided the functionality to provide recruitment agencies with a low-cost alternative to advertising. Unlike a standard directory, these niche directories have helped those searching for employment representation, a way to narrow down their requirements based on their own job-searching requirements. Recruitment agencies are then able to showcase their services directly to those looking.
Social recruiting is the use of social media for recruiting including sites like Facebook, Twitter, and LinkedIn. It is a rapidly-growing sourcing technique, especially with middle-aged people. On Google+, the fastest-growing age group is 45-54. On Twitter, the expanding generation is people from ages 55–64.
Mobile social recruiting is rapidly expanding. CareerBuilder ran a recent survey of the Fortune 500 companies and discovered that 39% of people in the United States uses tablet computers. Another recent survey done by Glassdoor.com revealed that 43% of candidates research company policy, culture, and history all within the fifteen minute time period before an interview begins. However, 80% of Fortune 500 companies fail to use mobile-optimized career sites.
Talent acquisition is the targeted recruitment/acquisition of high performing teams for example; in sales management or financial traders into a company from a competitor or similar type of organization. Organizations requiring external recruitment or head-hunting firms are now employing "talent acquisition" specialists whose job it is to identify, approach and recruit top performing teams from competitors. This role is a highly specialized role akin to that of a traditional recruiter/headhunter specialist but carrying greater visibility and strategic importance to a business. In many cases the talent acquisition person is linked directly to a company's executive management, given the potential positive impact a company can benefit from by getting high-performance sales people into the business, whilst removing the same performing sales people from competitors.
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