Designing and managing successful staffing process are major challenges for an organization. This process requires multiple tools, techniques, activities and participants. Careful evaluation, past experience and instinct must carefully blend together to create a process that maximizes the likelihood of effective staffing levels and be used successful person/job matches, both of which are important drivers of organizational effectiveness. And here comes the significance of recruitment and selection process.
1.2 Objective of the Study
The main objective of this report is to evaluate and analyze the effectiveness of present “Recruitment & selection process of Human Resources in ACI Limited”. The key parameters based on which the decision regarding the successfulness of the recruitment process is presented are time, budget or cost, transparency and fairness, capability of attracting applicants of sufficient number and quality and conciseness of process. Cost, reliability, transparency and fairness, validity, attrition rate, business performance (before tax net income), the degree of likely match between the selected person and job/organization, timeliness of the selection process and capability of the process of identifying the ‘type’ of candidates etc. were regarded by the researcher as the key parameter of success of the selection process of ACI.
The objectives of this report can be identified as Primary objective and specific objectives:
- To show the recruitment and selection process of Human Resources in Advanced Chemical Industries Limited.
- To identify the importance of recruitment and selection process;
- To measure the strength and weaknesses of ACI’s recruitment and selection process;
- To find out the opportunities and threats of recruitment and selection process;
- To know how to select a suitable source to communicate with candidates;
- To know how to get potential candidates for an organization;
Another objective of this report is to recommend any changes or improvement of this recruitment and selection practice.
1.3 Methodology of the Study
Both primary and secondary data was used in this report. To collect primary data the researcher prepared a questionnaire and then took in depth interview of Assistant HR Manager and Senior HR Executive of ACI Limited. The questionnaire included both open end and closed end questions. As the researcher is working in HR Department of ACI for three month, he also used his personal observation regarding the HR practice as input in this report. The secondary information was collected from HR Manual website and Annual Report of ACI Limited. Some secondary information was also collected from various books and related websites.
After collecting data the researcher has analyzed data in accordance with the parameters established in the objective to find out the successfulness of the recruitment and selection process. Then based on the evaluation recommendation for improvement were offered.
The type of the report is almost descriptive which is based on both primary and secondary data.To study and shape the report as the final format the following two main aspects are considered:
For the task I have chosen Advanced Chemical Industries (ACI) Limited, as in recent time the company is one of the top employers in Bangladesh. In preparing report, a reliable source of collecting data is vital measures. In this report, both primary and secondary sources of information have been used.
Primary data are observed and recorded as part of an original study. When the data required for a particular study can be found neither in the internal records of the enterprise, nor in published sources, it may become necessary to collect original data, i.e., to conduct first hand investigation. In the report the researcher has used the following source to collect primary data:
§ Face to face conversation with the higher authority
§ Communicating with some staff
§ Direct conversation with the HR employees
Secondary data are collected through the following sources:
§ Office Record
§ Annual Reports
§ Different books etc.
All the data have been collected during the internship period.
From different sources all the information is collected regarding the company, relative competitors, and the recruitment & selection process of candidates. After collecting all the data, they are organized and assembled for final report. All the data are checked properly by the supervisor before the submission of the final report. Finally, the report is submitted on due date.
However, the flowchart for preparing the report is:
Fig 1.1: Stages of Methodology
1.4 Scope of the Study
The report covers the recruitment and selection practice of ACI Limited. While evaluating the recruitment and selection practice the researcher covered relevant areas like manpower planning and retention policies of ACI Limited. So the scope of the report is manpower planning, recruitment process, selection process, staffing process and retention management of ACI Limited.
1.5 Limitations of the Study
While preparing this report the researcher has faced a number of limitations. The major limitations of this report are as follows:
· While evaluating the effectiveness of recruitment and selection process, the main problem was regarding setting parameters based on which recruitment and selection process effectiveness will be judged. Moreover, most of these parameters are not universal and most of them are qualitative type.
· It was difficult to collect information regarding some aspects of recruitment and selection process, as the authority regarded this information highly confidential.
· ACI did not authorize to reproduce some information and relevant formats.
· Legal issues can be a parameter of evaluation of the success of the recruitment and selection process. But it was not considered as a parameter in this report due to lack of comprehensive knowledge in legal issues.
ACI – AT A GLANCE
(AN OVER VIEW OF ADVANCED CHEMICAL INDUSTRIES LIMITED)
2.1 Background of the Company
ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on January 24, 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on December 28, 1976 and its first trading of shares took place on March 9, 1994. Later on May 5, 1992, ICI divested 70% of its shareholding to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on October 22, 1995.
Advance Chemical Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a public Limited company with a total number of 19653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The Company has diversified into five major businesses. Besides these, the company has a large list of international associates and partners with various trade and business agreements.
2.2 Mission of the Company
ACI’s mission is to enrich the quality of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products, innovative process and empowered employees to provide the highest level of satisfaction to its customers. A mission is a blueprint for success. A company’s mission statement describes its present business scope (where we are and what we do).ACI’s mission is: “to enrich the quality of life of people through responsible application of knowledge, skills and technology”. ACI is committed to the pursuit of excellence through world-class products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers.
2.3 Vision of the Company
To realize the mission, ACI will:
· Endeavor to attain a position of leadership in each category of its businesses.
· Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies.
· Develop its employees by encouraging empowerment and rewording innovation.
· Promote an environment for learning and personal growth of its employees.
· Provide products and services of high and consistent quality, ensuring value for money to its customers.
· Encourage and assist in the qualitative improvement of the services of its suppliers and distributors.
· Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence.
2.4 Values of the Company
Quality : ACI never Compromise with the Quality. ACIalways strive to provide the best possible quality for their products and services in order to meet and exceed customer’s expectation.
Customer Focus : ACI is a Customer Focused Company. ACI’s main focus is always their customers. They are always to provide the finest products and services to their customers in order to attract and retain customers.
Fairness: ACI is Fair in Dealings with all their Stakeholders. ACI always attempts to maintain fairness in what they do and produce. This helped them to gain customer’s faith and confidence and also to operate successfully in the market with their competitors.
Transparency : ACI is a Transparent Company. ACI maintains transparencyby providingthe desired goods and services to their customers and sharing their goals with their employees.
Continuous Improvement: ACI always Strive for Contentious Improvement. ACI always attempts to make improvements in their products and services in order to meet customer’s demands and cope with the current trend. In this way, they are able to compete successfully in the market in comparison to others providing the similar kind of products and services.
Innovation : ACI always Strive for Innovation. ACI strongly believes in innovation. As a result, they go for frequent research and development in order to improve and upgrade their product on a frequent basis.
2.5 Activities of the Company
ACI Limited is committed to providing customers with a broad range of quality products from its business operations. It has diversified its business in various sectors such as the health care division, consumers’ brands division, and agribusiness division. Besides its 3 major strategic business units, it has 11 subsidiaries, 3 joint ventures and 1 associate.
2.6 Major Businesses Units
- In 2009, ACI Pharmaceuticals ranked 6th in the Bangladesh Pharmaceuticals industry. It provides the market with a wide selection of drugs across all major therapeutic classes, and also offers some specialty medicines. ACI pharmaceutical represents AstraZeneca. Eli Lily and UCB in Bangladesh.
- ACI Crop Care and public health Division is holding the leadership position in the industry; Animal health experienced one of the highest growth rates in this sector. ACI Agribusiness has partnerships with several international conglomerates including Ceva Santhe Animal, Invesa, UCB, Isagro Asia and Borregaard taicang Chemicals Co. Ltd.
- ACI Consumer brands are a leading Fast Moving Consumer goods (FMCG) company in Bangladesh. In the liquid antiseptic and mosquito repellant categories, ACI is a very strong market leader. Foreign partners represented in this division include Godrej Consumer products (for hair care and skin care products), Beiersdorf, Germany (for Nivea range of products) and Colgate.
- ACI Agribusiness is the largest integrator in agricultural sector of Bangladesh. ACI Agribusiness deals with livestock and fisheries, crop protections, seeds, fertilizer and agri-machineries. Under Agribusiness, the following business units are currently operating:
Crop Care & Public Health
ACI has formed joint ventures with leading FMCG and agribusiness players in the region.
· Asian Consumer Care private limited:
Joint venture of ACI and Redrock Limited, for distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake in the ventures.
· Tetley ACI Bangladesh Limited:
Joint venture of ACI and Tetley Group of United Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50% shareholding.
Many ACI products have crossed our national boundary and are being successfully exported to various countries in Asia, the Middle East and the CIS region. The response of foreign consumers to ACI’s products has been encouraging.
Diversification into New Industries:
ACI Limited is venturing into new areas of business, as part of its diversification initiatives. Two such businesses being set up are ACI Salt Limited, ACI Godrej Agro vet Private Limited, ACI Animal Health, ACI Cropex, ACI Fertilizer, ACI Pure Flour Limited, ACI Foods Limited, Premiaflex Plastics Limited & ACI Motors Limited.
· ACI Salt Limited:
ACI has set up its salt refining plant in Rupganj, on the banks of the Shitalakhya River. The plant produces refined iodized salt through Thermal Evaporation System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. The iodine content of ACI salt will have a stability of more than 6 months. The project has been undertaken at an approximate cost of Taka 32 cores.
· ACI Godrej Agro vet Private Limited:
‘Godrej’ is a pioneer in the packaged meat business in the India. It is also the market leader in the poultry industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint venture in the Bangladesh to set up an Integrated Poultry project. Under this project, ACI Godrej Agro vet has already set up a feed mill at Sirajgonj. This is fully automatic pellet poultry and fisheries feed mill, which uses technology from Jiangsu Muyang group of China. The company has also set up a hatchery at Joynabazar, on the Dhaka Mymensingh road, with technology from Godrej. The plants for this project also include establishing Grandparents and Parents Stock breeding farms. The investment in the project was Taka 8 cores, with ACI Limited having 50% share holding of the company.
· ACI Formulations Limited
‘ACI Formulations Limited’ (ACIFL) is a subsidiary of ACI limited, located at Gazipur, in the outskirt of Dhaka.
ACIFL manufactures majority of the products of ACI strategic Business unit except for the Pharmaceutical Division. The factory is equipped with the state–of-the-art facilities for product formulations and process innovation. These include modern computerized equipment like HPLC and GLC.
The product range manufactured at ACI FL includes Crop Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and liquid form. Mosquito Pesticides in the forms of aerosols, vaporizers and coils: and household chemicals like toilet cleaners and hand wash.
· ACI Animal Health
Since there is a short supply of protein in Bangladesh, ACI expect substantial growth of the animal health industry in the near future. To prepare for this growth, investment has been made for machines to enhance capacity. ACI plan to launch the entire range of products for aquaculture, consisting of water sanitation, pond preparation, nutritional and medicinal products. To expand the existing business ACI will introduce hatchery vaccination to make the poultry farming safer and more profitable.
ACI are screening numerous varieties of crops and identifying the appropriate crop protection chemicals to ensure that we can provide greater variety and adaptability to the farmers.
· ACI Fertilizer
Balanced fertilizer usage is the key to successful crop production and maintenance of soil health. Cropping intensity in our country is very high and consequently the soil fertility status is declining day by day. Fertilizers play the most important role in increasing crop yields. However, fertilizer marketing and distribution system is poorly organized. The problem is further accentuated because of the time sensitivity of fertilizer application. ACI Fertilizer has entered into this business with the intention to improve this sector through our strong farmer and distribution network and our ability to produce and market superior quality chemicals.
ACI have launched micronutrient fertilizers like Zinc Sulphate, Magnesium Sulphate, Ammonium Sulphate, Boron, Sulphur 90% and Sulphate of Potash. They were imported from China, U.S.A, Canada, Taiwan, Argentina, Saudi Arabia and Turkey. ACI launched our products under the umbrella brand “Bumper” through integrated market communication.
Micronutrient fertilizers industry is still at its early stages. With increase in yield and cultivation of hybrid crops, replenishment of nutrients will drive this business. ACI Fertilizer enters into the basic fertilizer business like TSP, DAP & MOP which will be facilitating this growth, with a view to enrich our portfolio.
ACI Fertilizer will also be prepared to facilitate this growth, with a view to enrich our portfolio with supplying Urea fertilizer, Rock Sulphur & Phosphoric Acid to Bangladesh Chemical Industries Corporation (BCIC) from Russia, Ukraine, and China.
· ACI Cropex
‘ACI Cropex’ is a remarkable addition to the agricultural advancement in the country. The project assists the farmers in various ways – exchanging their crops at the time of their necessity, providing them with technological assistance and advisory services and so on. ‘ACI Cropex’ division has commenced its business with an aim to preserve and exchange potato, wheat, mustard, pulses, chili, turmeric, coriander etc. It has crop exchange centers from where farmers are able to exchange their crops as per their necessity.
The business also intends to produce various agricultural crops through contract growers and preserve the crops in warehouse and cold storage and market the preserved items at the point of sales/storage. The objective of this business is to ensure availability of crop across the country, preserve the quality of crops, balance the price of the crops and finally contribute to the national food security by introducing professionalism in cultivation, preservation and marketing.
· ACI Pure Flour Limited
‘ACI Pure Flour Ltd’ is the largest flour producing company in Bangladesh delivering cleanest, healthiest and most hygienic flour by adopting state of the art technology. Coupled with double digit growth and continuously producing pure product make ‘Pure’ brand a huge success & make it a household product overnight. In a very short time ‘Pure’ is able to become consumers’ morning bell and snatched prestigious second position overtaking all other players in the market. ‘Pure’ flour is able to communicate to its consumers that ACI Pure is synonymous to Purity. Our plant stands by the bank of Sitalaksha River with most advanced European technology coupling with a well-equipped laboratory keeping in mind to provide the best quality flour to the consumers.
· ACI Foods Limited
The necessity of pure food in the minds of Bangladesh consumers especially in the commodity food business has pushed ACI to fill up the market demand by producing food products such as spice, edible oil, snacks, confectionary etc. ACI is engaged in manufacturing, marketing, and distribution of various branded food products and condiment. Now the customers of Bangladesh are ensured with 100% pure food products under the brand name of ‘Pure’. Within the very short period of its entrance this brand has been enjoying second leading position in the market. Fun Candy and Fun Chanachur produced from high quality imported raw materials with state of the art technology have attained enormous popularity among the consumers. ACI Foods Ltd. is focusing on improving the food habit of Bangladeshi Consumers through providing more ready to cook products and ready to eat as well. ACI is also exporting its Pure Brand products to Australia, UAE, Kuwait, Saudi Arabia, Bahrain, Qatar and many other countries to come into the list.
· Premiaflex Plastics Limited
‘Premiaflex Plastics Limited’ is a private Limited company incorporated in 2007 with the register of Joint Stock Companies, Dhaka, Bangladesh under Companies Act 1994 having 80% shares by ACI Limited. The principle activities of the company are manufacturing and marketing of plastic products, flexible printing and other ancillary business associated with plastic and flexible printing. The factory of the Company is located at Sreepur, Gazipur
· ACI Motors Limited
ACI Agribusinesses has launched a new subsidiary business, ACI Motors, from 6th November 2007 with an objective to market high quality farm machineries and light commercial vehicles. ACI Agribusinesses now ensures complete solution to the farmers with the introduction of the agri machineries. ACI Motors are now marketing the various models of Sonalika tractor which is 3rd leading position in India as well as the fastest growing brand. It also has introduced high quality Bull Power brand power tiller and mini combine harvester, Hardy Sprayer from China.
It has own sales and service center at Bogra, Comilla, Jessore, and Dinajpur by which ensure highest quality after sales service, repairs and spare parts. It also provides flexible credit facilities for farmers for better customer satisfaction and service. ACI Motors are planning to introduce light commercial vehicles like pickups and mini trucks to support farmers to carrying agricultural goods. Also, high quality diesel engines and pumps for irrigation purpose will be offered in the near future. This business shows considerable promise in contributing to the agricultural productivity of Bangladesh.
ACI represents Colgate Palmolive Company as exclusive marketing partner and distributor for the territory of Bangladesh. Colgate is the worldwide leader of the oral care products category. ACI was appointed as sole distributor and marketing partner of Beiersdorf AG, Germany; the manufacturer of Nivea brand products. ACI represent Godrej Consumer Products Limited. ACI consumer Brand is also selling low calorie sweetener products of Merisant for weight conscious customers and also for them who want to avoid direct sugar. In additions to these, ACI represents significant number of world’s reputed companies in Pharma and Agriculture sectors.
2.7 Organization’s Structure
Fig: Overall Organization’s Structure
2.8 Code of Conduct
i. ACI shall support each other
ii. ACI shall appreciate good performance
iii. ACI shall be helpful to each other
iv. ACI shall comment judiciously
v. ACI shall always uphold the dignity of the individual
vi. ACI shall behave as we expect from others
vii. ACI shall ensure an open culture
viii. ACI shall maintain authenticity in communication
ix. ACI shall adopt SOPs
x. ACI shall maintain proper communication channel
xi. ACI shall adopt a positive attitude
The following acts and omissions on part of an employee shall amount to misconduct and therefore a punishable act:
i. Willful insubordination or disobedience, whether alone or in combination with others to any lawful or reasonable order of a supervisor
ii. Theft, fraud or dishonesty in connection with the employers business or property
iii. Taking or giving bribe in connection with his or any other employees employment under the employer
iv. Habitual absence without leave or absence without leave for more than ten days
v. Habitual late attendance
vi. Habitual breach of any law or rule or regulation applicable to the company
vii. Habitual negligence of work
viii. Falsifying, tampering with, damaging or causing loss of employers official records
ix. Going on an illegal strike or abetting, aiding/instigating or acting in furtherance thereof
x. Willful slowing down in performance of work
xi. Engaging in trade within the premises of the establishment
xii. Riotous or disorderly behavior in the company or any act subversive of discipline
xiii. False claims/declarations
xiv. Misuse of power/authority for personal gains
xv. Taking out any property/document outside of the premises without prior approval of the competent authority.
Theoretical Term of Recruitment and Selection Process
The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side.
The Recruitment and Selection Process must be simple and must be robust enough to operate excellently in the moment of the insufficient number of candidates on the job market and the process must be also able to process a large number of candidates within given time limit.
The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources Department.
3.1 Critical steps in Recruitment and Selection Process
The Recruitment and Selection Process has several critical points. The Recruitment and Selection Process is very sensible to the changes in the internal organization of the company and to the changes on the external job market.
The whole Recruitment and Selection Process must meet several criteria:
- The process must be easy to understand for the target audience of the Recruitment and Selection Process. The process is not created for employees of HRM; the process is developed mainly for the managers in the organization. The managers are the most important clients of the Recruitment and Selection Process,
- HRM has to follow the standard defined in the Recruitment and Selection Process. HRM cannot afford to draw the nice process maps and document flows in the organization and not to follow them. When HRM does not follow the rules defined, then HRM cannot expect the managers to define such a process.
- HRM must be able to get a buy-in from the managers in the organization to use standards defined and to keep the process consistent. For example the graph illustrates starts to fill the vacancy without a clear agreement about the profile and job content of one of the most common mistakes in the Recruitment and Selection Process. The HRM the vacancy to be filled. This mistake takes a long time to correct and the whole cycle time of the recruitment gets too long and produces confusion among all the participants in the process.
3.1.1 What is the Corporate Recruitment Strategy?
The Recruitment Strategy is a complete mix of the recruitment processes, targets to hire and approach to hire the best talents. The Recruitment Strategy is a document to define the approaches and to get the best talents from the job market. The recruitment strategy has to be connected fully with other strategic HR documents to provide the rest of the organization with a clear picture about the HRM approach to the issue.
Sometimes the Recruitment Strategy helps to face the issue of the organization and Human Resources – this is many times a case of the older population in the organization and how to get the young potential into the organization.
The recruitment strategy defines the following approaches:
- the target group of the recruitment
- how the target group will be approached
- the recruitment sources to be used
- the recruitment processes to be used to serve the load
3.1.2 What is Recruitment
It is the discovering of potential of applicants for actual or anticipated organizational vacancies. It actually links together those with jobs and those seeking jobs.
Flippo’s definition: “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.”
Thus the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications.
3.1.3 Factors affecting Recruitment:
1. The size of the organization.
2. The employment conditions in the community where the organization is located.
3. The effects of past recruiting efforts which show the organization’s ability to locate and retain the good performing people.
4. Working conditions, salary and benefit packages offered by the organization.
5. Rate of growth of the organization.
6. The future expansion and production programs.
7. Cultural, economic and legal factors.
However these factors may be divided specifically as Internal and External factors.
3.1.4 Steps of a Recruitment Process:
Personnel recruitment process involves five elements:
1. A recruitment policy
2. A recruitment organization
3. A forecast of manpower
4. The development of sources of recruitment
5. Different techniques used for utilizing these sources & a method of assessing the recruitment program.
These five elements are further elaborated below:
1. Recruitment Policy: It defines the objective of the recruitment and also provides a framework for the implementation of the recruitment program. The policy should be based upon corporate goals and needs. The criteria for selection and preferences should include merit and suitability.
2. Recruitment organization: It is necessary to centralize the recruitment and selection function in a single office. This will bring about maximum efficiency and success in hiring. This centralized office is known as the Employee Office or the Recruitment Section.
3. Forecast of Manpower: This usually specifies:
a. Jobs or Operations for which the person should be available.
b. Duration of their employment.
c. Salary to be offered & terms of the employment
d. Necessary qualification and experience
4. Sources of Recruitment: There can be two kinds of sources for recruitment:
a. Internal – This includes personnel already on the payroll of an organization. Whenever there is a vacancy, somebody within the organization fills in or is upgraded.
b. External – These sources lie outside the organization.
5. Methods of Recruitment: The possible recruiting methods can be divided into three categories:
a. Direct – In this method, recruiters visit colleges and technical schools, e.g. Infosys, the Tata Group, Accenture, IBM, Siemens and several other companies maintain continuous relationship with institutions to hire students for responsible positions.
b. Indirect – This involves advertising in newspaper, radio, T.V., journals etc. Advertising can be very effective if its media is properly chosen.
c. Third Party methods – This include use of commercial or private employment agencies, placement officials of schools, recruitment firms etc. Friends and relatives of present employees are also a good source from which employees may be drawn as part of the “Buddy Referral” programs.
Thus broadly the Personnel Recruitment Process can be mapped in a Flowchart as below:
3.1.5 Recruitment strategy
The recruitment strategy can also define some special programs to get the best potential candidates to the company and to attract them to be employed with the organization. The recruitment strategy cannot define the general goals as “Being the employer of choice”. The strategy should define the clear actions and steps to be the real employer of choice to keep the attraction of the target audience.
The recruitment strategy has to main sources of the information. The recruitment strategy has to be based on the organizational scan inside the organization and the market research. The recruitment strategy has to target the reachable goals and it cannot be focused on attracting the candidates, who are not available on the market. In case of lack of resources on the market, the Recruitment Strategy has to define another way to grow the potential inside the organization.
3.1.6 Internal Recruitment
The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment.
?Internal Recruitment Factors:
1. Recruitment policy of the organization
2. Human resource planning strategy of the company
3. Size of the organization and number of people employed
4. Cost involved in recruiting employees
5. Growth and expansion plans of the organization
The internal recruitment can offer the chance to change the job position to anyone in the organization, but the efficient internal recruitment process needs a strong help from other processes to provide managers with the additional information to work with. In case of the unknown additional information, the internal recruitment process can not offer much of the value added. The internal job candidate should be known to the organization and the HRM Function should provide the hiring manager with the information about the background information.
The internal recruitment process has to be driven by strict and agreed HR Rules and HR Policies as the unclear rules for the process can bring a lot of tension inside the organization as the best employees can be easily stolen among different units and different managers. This issue looks pretty simple to solve, but the reality can bring difficult issues and conflicts among the management team and can affect the performance of the organization hardly.
3.1.7 Internal Recruitment Pros and Cons
The Internal Recruitment can build a strong loyalty with the organization as the employees have a chance to change their position after a period of time. The employees are not pressed to look for opportunities on the external job market.
The Internal Recruitment can be cheaper for the organization and can save the costs dedicated to the training and induction of new employees. Also, as the candidate knows the organization, the possibility of the failure is not a significant issue to the organization.
The Internal Recruitment needs strong management from the HRM Function, which can lead to the conflicts and the HRM Function has to have a position to be able to act as a strong facilitator in the conflict resolution.
The Internal Recruitment can lead to huge issues when the candidates come from one department. The managers have to have the right to protect their own interests in the organization as they are responsible for the smooth operation.
The Internal Recruitment does not bring new skills and competencies to the organization and organization with an intensive usage of the internal recruitment can suffer from the fresh blood.
3.1.8 Successful Internal Recruitment Process
The Internal Recruitment is one of the basic HR Processes required by the employees and managers. For the employees, the Internal Recruitment process can offer more career opportunities inside the organization and for the managers can offer a delivery of skilled and oriented employees for their vacancies.
In case, the Internal Recruitment process is well managed by the HRM Function, it can offer many opportunities for both sides of the clients of the process and can improve the overall satisfaction with the services provided by HRM Function.
The Internal Recruitment Process also brings a huge workload to the HRM Function as all the candidates for the positions have to be managed and communicated with clear and strict Roles and Responsibilities in the Internal Recruitment Process.
3.1.9 Internal Recruitment Process
The implementation of the Internal Recruitment Process is easy and can be seen as a quick win. The most important part of the process is to define clearly the conditions for the Internal Recruitment.
Many employees can change themselves into tourists inside the organization and they can benefit from unclearly set rules for the Internal Recruitment Process.
The HRM Function has to define the following rules. The rules must be adjusted to the needs of the organization, but the following criteria have to be considered:
3.2 Conditions for the applicant
The conditions for the applicant have to be agreed by the management of the organization. The management has to agree with the minimal length of the employee, the length of the stay at one position and about other criteria. Also the performance evaluation has to be considered in the final decision process as many unsatisfactory performance evaluated employees can apply for a new position and there must be clear guidance for such circumstances.
3.2.1 Conditions for the management
The manager has to be aware of his or her role in the Internal Recruitment process and has to agree with the limitations put on him or her in the selection process. The manager has to agree not to steal the best employees from other manager. The current manager has to agree to allow the employees to apply for the new position and the timeframe for the transfer from one position to another.
3.2.2 Conditions for the HRM Function in Internal Recruitment Process
The HRM Function has to act as the facilitator and navigator. The Internal Recruitment Process can bring huge conflicts among the managers and can have an impact on the corporate culture hardly.
The HRM Function has to be clear about the communication of open positions and when the current manager has to be informed about the potential candidate from his or her team. In case of the issue, the HRM Function has to be able to act as the facilitator between the managers to find the solution, which will not affect the performance of teams and individuals.
3.2.3 The Internal Recruitment Process Pitfalls
The Internal Recruitment Process is about clearly set communication channels and Roles and Responsibilities in the process.
The HRM Function has to agree the rules for the process and has to stick to these rules. The break of the rules will always be seen as an unfair game from the HRM side and it will be returned in the final evaluation of the performance of Human Resources.
In many cases, the strict communication is very hard, but the HRM Function has to demonstrate its role in the corporate culture. The only strict definition of roles and responsibilities can help.
3.2.4 Internal Recruitment Benefits
The internal recruitment process has a lot of benefits and it is always difficult to decide whether to use internal or external recruitment process. The internal recruitment is a right recruitment process for the large organization, which promote friendliness in their corporate culture.
The corporate culture, which supports the employees to look for the opportunities in the organization, is well designed for the internal recruitment process and the process can be a big benefit for the organization. The corporate culture, which is focused on a strong competition among employees and with the external environment, this corporate culture does not support the internal recruitment process.
The corporate culture should drive the decision process. In case of two candidates for the position, the corporate culture should navigate the HRM Function and the hiring manager to decide correctly about the winning job candidate. The corporate culture has to provide guidance for the last decision about the winning candidate.
The career development is a huge benefit of the internal recruitment process. The career development has to be communicated openly and the employees cannot be worried about their application for a new position within the organization. The career development can define special rules for the application for the new position. The rule is usually about the necessity to stay at one position for a defined period of time before applying for a new one. In case of necessity, the HRM Function can act quicker, but the current manager of the employee has to agree to allow the transfer. When the career development functions well, the employees are motivated to train themselves to get more skilled and develop their competencies as they see the career opportunity in the organization.
The cost side is a clear internal recruitment benefit. The internal recruitment can be quicker and cheaper than the external recruitment. The employee who works with the organization usually does not ask a huge salary and is available for a transfer much quicker.
Another internal recruitment benefit is a smaller pressure for the compensation and benefits. The moving employees get promoted and they do not press for a higher salary for just being with the organization.
3.2.5 Internal Recruitment Process Weaknesses
The Internal Recruitment Process does not have just benefits; this process has some disadvantages as well. The Internal Recruitment Process is a very powerful tool, but it can be misused in hands of some employees and managers.
The Internal Recruitment Process is not a process to steal the best employees from their departments. These employees should be treated as a very scarce resource and the internal recruitment procedures should work differently for them.
The managers use the internal recruitment process as a tool to transfer their own issues to the other departments. This is very dangerous as other managers will not trust the internal recruitment process and will block the ambitions of employees to be transferred.
The employees can misuse the internal recruitment process, when there are no clear rules and procedures applied. The organization can support internal rotations of employees, but the rules must be clear about the length of the stay of the employee in one department.
The employee can enjoy the benefit of quick internal job hopping and the results achieved are very difficult to be recognized by the organization. No manager is able to make a full performance appraisal as the whole year in one department is unique then. The employee is just focused on his or her promotion in the organization and the salary can be increased in every step.
The internal recruitment can be sometimes taken as an obligatory option by the organization. The employees suppose to be first in the queue before any applicant from the external job market. But this approach is very dangerous for the organization. The external candidates bring know how and external knowledge, which can help to the organization to perform even better.
The Internal Recruitment process cannot solve all the recruitment issues in the organization, but there should be a right mixture of the internal and external recruitment to keep the organization in a healthy shape.
3.2.6 Right Internal Recruitment Job Posting
The Internal Recruitment Job Posting is a key to the fair, transparent and efficient internal recruitment process. The issue is to let the employees know about new vacant positions and on the other hand not to over-communicate the vacancies in the organization.
The organizations use different techniques to announce internal vacant positions. The most common technique is an email message to all the employees. This technique is simple, but has several disadvantages. The employees are confused about the number of emails they receive and have to handle with. This email is another one and most of the employees are not interested in such kind of information. They would rather not receive any email from the HRM Function. The email cannot be specifically focused on the target group of employees and the overloaded employees can easily miss the right position for them.
The other distribution channel for the internal recruitment is the Intranet of the organization. In the basic mode, just a list of vacant position is posted on the Intranet and the employees can apply for the selected position via email client. But, the Intranet can do even more for the employees. The Intranet can work as a real job website and it can be easily linked with the HRIS.
The employee can select the job position and the system can work as the basis for monitoring of the recruitment process. The HRIS system can put all the fields like name and surname and also a career path in the organization can be taken from the HRIS system and the employee can see a huge benefit from providing the organization with so much information.
The last good old channel for the internal recruitment is the black board at the entrance to the building where every single employee has to go.
3.3 External Recruitment
? External Recruitment Factors:
1. Supply and demand of specific skills in the labor market.
2. Political and legal factors like reservations of jobs for specific sections of society etc
3. The job seekers image perception of the company.
The External Recruitment is the source of the fresh blood for the organization. As a very critical HR Process, the external recruitment process has to be set up very carefully. The external recruitment is a process, which is very sensitive to changes on the external market and the managers are very sensitive about that as well.
The external recruitment process is mainly about:
- How to be successful with the External Recruitment
- The Job Market Analysis
- Sources for the External Recruitment
- What kind of the sources to be used? Decision process
- Job offer
- Process monitoring
?External Recruitment Success Factors
The external recruitment is the HR Process, which is not fully manageable by the HRM Function. The external recruitment involves other external parties and they have to cooperate closely to bring a common success for the organization. The external recruitment is a difficult HR Process when it has to be done properly and meeting stretching requirements and goals of the top management.
The HRM Function has to take initiatives in four important areas to make the external recruitment efficient, quick and bringing the right quality of candidates:
- Organization Brand Name
- Correct Positioning of Job Posting
- Channels Used to promote the job vacancy
- Speed of the Recruitment Process
The brand name is very important for the external recruitment. The potential job candidates will not apply for the position with the organization, which has no name. The trust of the candidates is the essential for the successful external recruitment. The only way how to hide “no name” organization is the use of the recruitment agency, which can work without announcing the name of the client.
Correct Positioning of the job vacancies is a role of the HRM Function. The HR Recruiter has to recognize the correct media and approach to the advertisement of the job vacancy. The job posting is the same as the commercial advertisement. The target group has to have a chance to be approached by the job advertisement to know about it.
The channels used to advertise the job vacancy. The common answer of the HR Recruiters is – use the Internet, you cannot lose anything. But the candidates for the position do not have to browse the Internet every day to look for the vacancies. The HR Recruiter has to know the habits and emotions of the target group to select the best channel, which mix the quality of the candidates and the price per one candidate.
The speed of the external recruitment process is crucial condition for the success. The candidates have to catch and followed very quickly not to lose them in favor of a different organization. When the candidate decides to look for a new career opportunity, then he or she expects to find a solution pretty quickly. The candidate will not wait for a long time to be invited for the job interview and then for the final decision of the organization. The HRM Function has to arrange everything before the external recruitment starts.
?External Recruitment Process Key Issues
The external recruitment process is a very complex HR Process, which involves many parties and the clear follow up of the individual process steps is essential. The HRM Function is responsible for setting and defining the external recruitment process and it has to be sure to solve several success factors in the external recruitment process.
The HRM Function has to push the managers to deliver clearly defined job profiles of the vacancies and the job profile cannot be changed during the recruitment process. Or, the change of the job profile cancels the search and starts a new one again. The hiring manager has to know the rules. When the job profile changes during the search, it changes the focus of the recruitment agency and brings a lot of job candidates unsuitable for the job position.
The hiring manager can be a very weak point in the recruitment process. The hiring manager has to agree with the job profile and the hiring manager has to agree to decide quickly about the final job offer for the winning candidate. The hiring manager has to be aware of the danger of being late with inviting the job candidates and the late decision taken.
The good contract with the recruitment agencies is a basis for the efficient cooperation; The recruitment agency has to know about the conditions given and the fees given for not meeting them. The recruitment agency has clearly agreed with the KPIs from the contract about the delivery of candidates, expected quality of candidates and basic competencies, which has to be met. The recruitment agency is a tool for the pre selection of the job candidates and it has to be able to meet the basic expectations to reduce the time needed from the HRM employees.
The recruitment agency has to receive very clear brief about the vacancy in the organization. The HRM Function and the hiring manager have to define the best job profile and the description of the ideal candidate to navigate the recruitment agency in the external recruitment process. The HRM Function has to make a description of the team, the decision process in the department to allow the recruitment agency to find a candidate with the best fit.
The communication during the selection process is very crucial. There must be one point of the contact in the HRM Function and just one point of the contact in the recruitment agency. The resumes have to sent to the one single email address in the HRM Function and the organization has to provide the basic feedback very quickly. The recruitment agency has to follow all the resumes sent to the organization as it can provide the candidates with additional information.
The most crucial condition for the successful external recruitment process is a clear decision line and the agreement about the final person to decide about the new hire to the organization. The job candidates can lose their interest quickly, when the organization is not able to make a final decision and asks for additional information and time after all the job interviews are finished.
? Job Market Analysis
Correct job market analysis is very important for the efficient external recruitment and the future of the organization. The job market analysis should be conducted regularly at least once a year for all the organization locations and it has to be done in the case of selecting a new location of the organization.
The job market analysis always starts with the definition of internal needs of the organization and with the prediction of its targets in the near and longer future. The organization has to make the estimate of the workforce needed and the future trends in the organization, which helps to make the gap analysis in skills and competencies.
The job market analysis follows the main areas:
- inhabitants in the area
- universities in the area
- main industries