Introduction

Recruitment and selection is a very vital part of any organisation because it determines the level of expertise in a company. This process of human resource is very important to any company in order to get the right people to perform the right task. Recruitment and selection is just one part of the human resource function. This part of human resource management has become increasingly difficult to make the right decision about, and costly for managers too, causing managers and companies to face a lot of challenges.

This report will be discussing the concept of the recruitment and selection process by looking at the definitions and why companies carry out this process. The report will also be looking at how companies carry out the recruitment process giving examples to some companies.

Managers today face a lot of challenges during the recruitment and selection process, and the second part of the report will give an outline of these and how managers can, and have, faced such challenges.

The questions to be answered are: what are the challenges managers face in recruiting and selecting the right candidates, and how they can face them successfully.

Concept of Recruitment and Selection

Recruitment is arguably the most important part of human resources because other parts of the sector like selection and training plans depend on it. This is the first contact the company makes with the employees; therefore, the company’s profile is also important in searching for the right candidate.

Recruitment is a process used by a company to locate, identify and attract potential employees to the company (Marthis and Jackson, 2006; Dessler, 2007). The kind of people the organisation employs determines the type of goods and services they produce. Therefore, the recruitment process should be treated with care and attention.

There are different sources through which employees can be recruited. The first is internal employee referral where vacancies are advertised within the company and existing employees can refer other employees (Cappelli, 2001; Dessler, 2007). In this case, the employees already know their colleagues and also who can better perform in that position. Another method of internal search can be done by advertising the job for employees to make applications instead of being referred by their colleagues (Mullins, 2002; Dessler, 2007). Internal recruitment is less costly to the organisation because they already have the candidates’ information and know what they are capable of doing. However, it is worth remembering that state institutions – e.g. schools and colleges, the police, local councils – are not allowed to use this method by law, and all positions must be open to all and at least ‘seen’ to be fair and equal.

Another method of advertising jobs is by advertisement. This can be done by using newspapers and other media (Marthis and Jackson, 2006; Dessler, 2007). This way of attracting candidates is used by most companies today to get to a wide range of talent from where they can select the right one. Private employment agencies are also used to attract skilled labour. Examples of private agencies are Robert Half International, Reed, Capital, and Office Angels. This method is usually very costly for the company because the agency carefully screens the candidates for the company; but such agencies can be of benefit to the company because they can provide both fixed and temporary workers and mean the company can outsource recruitment entirely.

Companies also recruit using graduate recruitment programs where candidates go to the company’s website and fill out the application form. Successful candidates are then invited for interviews or group selection assessment (Jeanette, H et al, 2008).

Part of the recruitment process is to design a job analysis which describes the job (job description) for the company and also gives a Job specification. The job description gives the whole description of the job including the purpose of the job, the duties, the responsibilities, what it entails, activities to be carried out and its position in the organisational chart (Mullins, 2002; Dessler, 2007). The person specification gives details about what attributes the organisation are looking for in an individual that they can use to better carry out the functions of the job (Mullins, 2002; Dessler, 2007). This deals with aspects such as physical ability, skills, talents, experience, intellectual ability, personality and qualifications (Dessler, 2007). Job analysis helps to provide the basis for performance appraisal, training and employee development (Dessler, 2007). It also provides guidelines through which employees can be assessed, making the selection process easier.

Figure 1; Recruitment and Selection Process

Source; CIPD.co.uk

After candidates have made their application, the organisation then sits down to manage and sift these applications. Managing applications include; short listing (reducing the number of application made), reference verifications, qualification verifications and conducting interview (Mullins, 2002; Marthis and Jackson, 2006).

Selection is another process of human resource planning where job applications are screened to make sure the most suitable person for the job has been selected (Marthis and Jackson, 2006; Dessler, 2007). There are different ways an organisation can use to select the right candidate. The first way is by using peer rating for internal searches (Cappelli, 2001). This rating can be done using scales with the lowest number being least suitable and the highest most suitable. The second method is by using group exercises, though these are mostly used in very large companies to know how candidates can work in a group and how they adapt to each other. An example of a company that uses this type of selection method is Shell. After submitting an online application, candidates are called for interviews. Successful candidates are later called to attend group exercises where the final selections are being made. This is being monitored by the interviewer to know what the candidates’ strengths and weaknesses are.

Challenges Faced by Managers

The recruitment and selection process is not an easy process for the management team to carry out. There are difficult human resource management decisions management have to make during the recruitment process, and always they must comply – or at least be seen to comply – with the various laws that deal with equality of opportunity.

Cost and Time

There is cost incurred in the recruitment and selection process. There is the cost of advertisement, the cost incurred in the screening process, and the cost incurred during the interview process. These costs are calculated based on the time spent by the management or interviewer at each stage. The time spent on the recruitment and selection process should have been spent by the interviewer on their job especially when interviews are being carried out by members of the company. This cost, which is also known as opportunity cost, is one the company has to look into before carrying out recruitment process; it may be easier to outsource to an agency after all. What companies can do in this case it to try to reduce employee turnover rate to retain their employees. This can be done by providing good training to existing customers and motivating them through various bonuses and benefits, such as maternity leave and pay to attract and retain female employees.

Changes in employees’ expectations

Employees were in the past not really as involved in organisations as they are today. Organisations used to employ people and tell them what to do, and it was done without any questions in an ‘age of deference’ and jobs for life. This is not the case in organisations today. Employees are now asking for more empowerment and to get more involved in the decision making process of the company. The challenge management face in this case is they are not sure if employees will do the job better if they are given this right to work without close supervision. In order to reduce this risk, the company will have to make sure that job descriptions and person specification are well specified when advertising the jobs and to make sure the right candidates are being selected for the job. This means candidates experience, qualification and character should match what the company is looking for.

Managing diversity

Diversity is very important for companies to consider in the recruitment and selection process. Organisations today employ different people with different management styles or ways of carrying out their jobs. Diversity initiatives can be found mostly in international and multinational companies. Management find it very difficult to manage such diversity because of the differences cultures, especially with mergers. Most of these companies find it difficult because of differences in how job opportunities are being advertised. For example, in a country like Iran, management positions are made by appointments to those who are loyal and the company can trust rather to those who are skilled (Namazie and Monir, 2006). This can be a challenge for a western organisation that operates in a country like Iran. The same is true in very many countries of the world, where family and friends and contacts are more important than ability. Therefore, recruitment and selection should be based on the norms and values governing the organisation in the country. A problem of diversity can also arise with companies that outsource their human resource and restructuring of the organisation in the attempt to reduce cost. Diversity, when well managed can be advantageous to the company, arguably attracting the best recruits, not to mention creating a positive image for customers.

Changes in technology

Companies are facing a problem with the fast changes in technology today. The high use of technology serves as a competitive advantage to these companies and they would like to maintain their standards. In order to maintain these standards or adapt to changes in the environment, companies need to employ those that are experienced in using the type of technology the companies use. Most candidates always claim to be efficient in using whatever software the company is using. But this may not be true of course, and may mislead the company and increase the cost of the recruitment process if such candidates are selected, but cannot handle the process. This can mostly happen when the company advertises for jobs using external means. The worst happens if the candidate is selected for the job, because this might lead to high employee turnover and higher cost. Therefore, companies that require the high use of technology and software (IT companies) are advised to carryout internal recruitment methods or employ someone who has worked in the same industry or a similar company before.

Changes in the economy

Changes in the economy are a very important factor to consider when carrying out the recruitment and selection process. Managers find it difficult to employ people during recession because of the economic environment they are operating in. The challenge faced by management during this period is the cost of recruiting and selecting the right candidate and also being able to afford to employ them. Companies always try to cut their costs during recession, but there is always a need to hire highly qualified individuals to carry out certain functions in the company. This can be seen in most large companies changing their chief executives or top managers during recession to get the best candidate that can carry the company through such difficult periods. Changes in the economy require candidates that know a lot about the business and can adapt to the changes. Most companies select candidates for such positions using internal method of recruitment. This can be done by peer referral and internal application to reduce costs and time.

Legal issues

There are so many legal acts in the United Kingdom that refer to equality and diversity and support it at work. In the United Kingdom, employees are not allowed to discriminate on the basis of sex, race, sexual orientation, disability or age. This falls under the equality and diversity legislation (Idea.gov.uk, 2009). Legal issues also concern the minimum wage and employment contracts. Companies can select the wrong candidate and may only find out later (Cappelli, 2001). This can be a great challenge for the company because if the employee is under contract, the employer will have to wait until the contract ends; if not, the employee can sue the employer for bridge of contract or demand redundancy pay. Therefore, employers should always make sure the right candidate is selected. Most companies today avoid such a disadvantage by hiring employees on a temporary basis or by providing a very short term contract of about three months to be renewed depending on the candidate’s performance. And of course, all recruitment processes and interviews may well be testing in the ability of candidates at performing well in recruitment processes and interviews, and not their actual ability to do the job well; this would seem to be evidenced by, for example, the poor performance of many managers in industry and government departments.

Conclusion

Recruitment and selection is a vital part of human resource management and should be looked at with care. Management should consider challenges they might face during the process and look at other ways through which they can minimise risks and costs. Companies that manage their challenges really well tend to succeed because they hire the right candidates who then create a competitive advantage for the company. Expertise in a company is very important because employees are the backbone of the company and create a brand for that company (Walker, 2007). Companies like Standard Chartered have used their human resource to create a strong competitive environment using their management training programme.

In conclusion, the recruitment and selection process is crucial to any company’s success and should be followed accordingly, trying to minimise as much cost and time as possible. This should be carried out in the most effective way to allow managers to make the right decision as to who will fit into the organisation and its culture: who is the right candidate with the right qualifications and experience for any given role.

Bibliography

Namazie, Pari and Tayeb Monir (2006) Managing Human Resources in the Middle East; Human Resource Management in Iran. 1^st Edition. Routledge
Mathis, R and Jackson, J H (2006). Human resource management. 11^th Edition. Thomson/South-western, 2006
Dessler, G (2007). Human Resource Management. 11^th Edition. Prentice Hall
http://www.idea.gov.uk/idk/core/page.do?pageId=5145524 Accessed 02/11/2009
Cappelli, P. (2001), People Management, No.25 January, pp.38-40
Walker, P. (2007), Employer Branding: A No Nonsense Approach, CIPD, London, Research Report
Jeanette, H et al (2008) Graduate recruitment and development: Sector influence on a local market/regional economy. Volume 50, Number 4, 2008 , pp. 276-288

Appendices

Source; CIPD.co.uk