ACQUIRING

HUMAN
RESOURCES
Revati Patil
Namira Kadri
Sarath M
HUMAN RESOURCE ACQUISITION - AN OVERVIEW
Shift in Business Factors: Success now depends on demographics, with a shortage of qualified talent

Talent Acquisition Challenges: Firms struggle with retaining and attracting talent from a limited pool

New Employment Relationship: The shift to an economic contract has made retaining employees harder

War for Talent: Competition for skilled employees has intensified, requiring higher pay

Cost of Replacement: High employee turnover and replacement costs are increasing

Staffing in HRM: Recruiting and selecting talent is key to meeting organizational goals
 STAFFING PROCESS

Organizational Goals

STAFFING Human Resource Planning

The process of finding, attracting, and hiring Recruitment Employee

Recruitment
new employees is called 'staffing'. The staffing Requisitions
Alternative
function of HRM is concerned with 'seeking
and hiring qualified employees'. Contingent External Sources
Internal Sources
Workforce
Mello defined staffing as 'the process of
Internal Recruitment External Recruitment
recruiting applicants and selecting prospec- Methods Methods
tive employees.

Application Pool
Initial Screening

Selection Methods

Rejected Candidates Selected Candidates

Job Offer
 COMPARISON BETWEEN RECRUITMENT & SELECTION PROCESSES

RECRUITMENT SELECTION

A positive process aimed at attracting a pool of A negative process focused on filtering and choosing the
Definition
qualified candidates for job vacancies most suitable candidates from the applicant pool

Create awareness, attract qualified candidates, and Gather information about applicants, assess applicants
Objectives
promote a positive image of the organization through fair methods, and predict job success

Company databases
Job posting and bidding Application blanks
Advertisements, Referrals, and Interviews Work samples
Methods
Recommendations Employment/ Psychometric tests
Executive Search Agencies Assessment centres
Campus Recruitment
 EXTERNAL INFLUENCES OF STAFFING
1. Labour Market Conditions

Labor market conditions define the availability of the workforce based on geography, occupation, educational
qualifications, and economic trends.

Geographic Factors: Workforce availability varies by location. For instance, IT professionals are concentrated in
cities like Bangalore and Hyderabad, while Tier II and Tier III cities face workforce shortages

Occupational Factors: Jobs requiring specific skills (e.g., engineers, doctors, IT professionals) create
occupational labor markets. High demand may lead to shortages and require firms to develop creative hiring
strategies

Educational Qualifications: Some jobs necessitate specific certifications or degrees. For instance, an increase in
student intake in elite institutes has created a shortage of PhD-qualified professors

Economic Conditions: A growing economy creates more jobs, leading to higher demand and a shortage of
qualified workers.

Example: Shortages in sectors like nursing in the UK or IT professionals in India necessitate targeted recruitment or
pre-hiring training programs.
 EXTERNAL INFLUENCES OF STAFFING

2. Government Regulations and Legal Considerations

Government policies regulate hiring practices to ensure fairness and inclusivity.

Non-Discrimination: Employers cannot discriminate based on race, gender, caste, or nationality. Organizations
must analyze workforce composition to reflect labor market diversity.

Reservation Policies: Indian government mandates reservations for disadvantaged groups (e.g., SC/ST, OBCs).
Public sector institutions are legally obligated to reserve positions for weaker sections of society.

Impact on Hiring: Policies like affirmative action may require firms to adjust hiring standards or expand
recruitment to meet legal obligations.

Example: Government-mandated reservations for OBCs or other groups in India influence staffing strategies in
public and private firms.
 INTERNAL INFLUENCES OF STAFFING

1. Organizational Policies and Practices

HR policies directly influence staffing decisions.

Promote from Within: Organizations prioritizing internal hiring focus on career progression
for current employees, filling higher-level roles internally

Prioritized Hiring: Some firms give preference to specific groups, like women, war veterans, or
relatives of current employees

Impact: Internal hiring can limit opportunities for external candidates but ensures faster
integration and employee retention

Example: Firms promoting women candidates in their advertisements (e.g., UN initiatives).

 INTERNAL INFLUENCES OF STAFFING

2. Organizational Image

The company’s reputation significantly affects its ability to attract talent.

Positive Image: Firms with strong reputations (e.g., Microsoft, McKinsey) easily attract top
talent and reduce recruitment costs.

Negative Image: Organizations with a poor reputation struggle to attract qualified

candidates, even for interesting roles.

Campus Placements: Well-regarded firms gain an edge in hiring the best candidates during
campus recruitment.

Example: Students prefer Fortune-ranked firms due to their prestige and career growth
opportunities.
 INTERNAL INFLUENCES OF STAFFING

3. Job Attractiveness

The nature of the job influences its appeal to prospective employees.

Unattractive Jobs: Roles seen as boring, hazardous, low-paying, or monotonous (e.g., call center jobs)
face challenges in attracting qualified talent

Personal Preferences: Factors like job location, industry preferences, or the need for frequent transfers
deter some candidates. For instance, individuals may avoid working in remote locations (e.g., Assam) or
certain sectors (e.g., heavy engineering)

Employer Adjustments: Firms often relax requirements or offer pre-hiring training to attract talent to
less attractive roles

Example: Call centers hire candidates they would not typically consider after providing pre-employment
training.
 RECRUITMENT
Recruitment is the first contact between a firm and potential employees. Therefore, it is important to manage the recruitment activity to create a positive first
impression on job applicants.

SOURCE ADVANTAGES DISADVANTAGES

Candidate performance data is already available, aiding

informed decisions
Boosts motivation and morale through internal growth Can lead to politics and morale issues among non-promoted
opportunities employees
INTERNAL
Faster hiring process, less expensive, and minimal Triggers a series of internal promotions
adjustment time Maintains culture even when change is needed
Promotes faster achievement of performance standards and
role adjustment

Non-promoted employees may feel demotivated

New people bring in new perspectives
New hires may struggle with familiarity and acceptance
EXTERNAL Facilitate organizational change
Longer socialization and integration period.
Not aligned with any group within the firm
Time-consuming and costly process
METHODS OF RECRUITMENT
Organizational databases

Methods Job posting and bidding

Internal
sources
Inside moonlighting

Informal methods

Recruitment
Direct applications

Employee referrals & recommendation

Professional association
Methods
External Executive search firms
sources
Employement agencies

Advertisements

Campus recruitment
INTERNAL METHODS OF RECRUITMENT
ORGANIZATIONAL DATABASES
Organizational databases store employee profiles, including background, skills, experience, and performance records,
enabling efficient internal recruitment

HR managers use these databases to match job openings with suitable candidates for promotions or transfers within the
firm

The top-down limitation approach limits opportunities to employees listed in the database, excluding others who may
wish to compete.

INSIDE MOONLIGHTING
Firms address workforce shortages or additional tasks by engaging current non-salaried employees
instead of hiring new staff

Employees take on extra work occasionally for a bonus, helping manage workload efficiently
JOB POSTING AND BIDDING
Management notifies current or anticipated openings using bulletin boards, newsletters, emails, intranets, or company
websites, enabling employees to compete for roles

A bottom-up approach gives employees control over their careers, with interactive tools highlighting skill gaps and
development steps for future opportunities

Common in unionized firms (legal requirement) and reflects company policy in managerial roles, prioritizing internal
recruitment over external hiring

INFORMAL METHODS

Firms use informal channels like the grapevine to share information about current or upcoming job
openings through employee interactions

Interested employees express willingness and are screened for job suitability.
EXTERNAL METHODS OF RECRUITMENT
DIRECT APPLICANTS
Candidates apply independently, including 'walk-ins,' and their applications are saved for future opportunities

Direct applications serve as an affordable and valuable pool of potential candidates for future hiring needs

Firms like Genpact and ICICI OneSource use dedicated hiring offices and call centers to actively attract and hire
candidates, conducting daily interviews and offering immediate job placements

The volume and quality of direct applications depend on the company's reputation, size, location, and economic
conditions

PROFESSIONAL ASSOCIATIONS

Groups like engineers, accountants, and medical professionals form associations to share knowledge
and updates in their fields

These associations release newsletters, trade journals, and magazines that circulate among members,
often featuring job advertisements
 EMPLOYEE REFERRALS AND RECOMMENDATIONS
Companies encourage current employees to recommend potential candidates for job openings, leveraging personal networks for hard-to-fill positions

Referrals are a quick, inexpensive, and powerful recruitment tool, often yielding skilled candidates with realistic expectations about the job

Referred candidates are often mentored by the referring employee, which aids in smoother onboarding and faster cultural integration

Firms offer rewards for successful referrals, such as bonuses, recognition, or other incentives to motivate employees to recommend candidates

Some companies have unique referral programs like deferred bonuses or social events to encourage referrals and ensure long-term retention of hired
candidates

Examples:
1. Flextronics: "Head U Win": Employees who refer at least two candidates are eligible for a lucky draw with prizes
exGroups like engineers,
like plasma accountants,
TVs, iPods, and andcar
even a Santro medical professionals form associations to share knowledge and
updates
2. Cisco:inPays
their fields
$2000 forThese associations
every successful release
referral newsletters,
(except trade
for managerial journals,
or senior and magazines
executive that circulate
positions), offering
among members, often featuring job advertisements
financial incentives for employee-driven recruitment
3. Juniper Networks (India): Organized an event at a fancy restaurant where employees could bring friends or
acquaintances to be considered for hiring, creating an informal yet effective recruitment environment
 EMPLOYMENT AGENCIES
Job seekers register with public or private employment agencies, which maintain databases of candidates. Employers access these databases for a fee
to find suitable candidates based on job requirements
In India, government-run employment exchanges must notify certain vacancies under the Compulsory Notification of Vacancies Act 1959. These
exchanges prioritize candidates registered with them, although placement rates are low
Private employment agencies focus on specific industries or skill sets, offering higher-quality candidates for mid- to senior-level roles, and often
providing additional services like candidate screening to reduce hiring costs
There is potential for growth in the recruitment sector by opening up employment exchange infrastructure to private sector involvement, similar to
models in the UK, to enhance job placement opportunities

EXECUTIVE SEARCH FIRMS

Executive search firms focus on recruiting top-level talent, ensuring candidates align with the company’s culture, goals, and values
These firms charge up to 30% of the candidate's salary and typically work on a retainer basis, getting paid whether or not the hire is successful
Known as ‘headhunters,’ executive search firms are growing rapidly due to the high demand for skilled talent, especially in emerging markets like
India and China

Executive search firms focus on recruiting top-level talent for senior roles, offering tailored services and high fees. Employment
agencies handle a wider range of positions, offering lower-cost recruitment and often screening candidates.
 ADVERTISEMENTS
Traditionally, print media, especially daily newspapers, have been the most common recruitment method, reaching a
large audience quickly
Business newspapers and trade journals (e.g., The Economic Times, Business Today) focus on attracting professionals
and specialized skill sets
Increasingly, companies are turning to their websites to post job openings, reducing reliance on traditional media like
radio and TV
Even the larger players like Infosys and TCS pay more attention to recruitment advertising to be more strategic and
creative

CAMPUS RECRUITMENT
Campus recruitment is a popular but expensive way to hire entry-level professionals and managers, including
lateral placements for graduates with prior job experience
Firms and campuses engage in a year-long exchange of information about student profiles, firm culture, job
opportunities, and career growth with pre-placement talks (PPTs) and brochures
Firms assess past recruiting success by factors like job offer acceptance rate, cost per hire, and turnover, choosing
campuses with proven results for future recruitment
In addition to management and engineering colleges, companies, especially in call centers and BPOs, are
increasingly recruiting from undergraduate colleges
 NEW APPROACHES TO RECRUITMENT
EMPLOYER BRANDING
In the era of employee consumerism, top talent selects firms, making it essential for organizations to position themselves as desirable workplaces
amidst competition
Firms must merge marketing strategies with HR practices to build a strong employer brand that communicates consistent and attractive
messages, drawing top talent effectively
Cognizant's employer brand, Celebrating Work, emphasizes making work enjoyable, focusing on the philosophy of finding enjoyment in work
rather than outside of it

SPECIAL EVENTS RECRUITING

Firms use open houses and career fairs to attract potential employees, especially when they are new or facing a skills shortage. Open houses are
held on weekends to showcase the work environment to candidates
Conducted by groups of firms, career fairs allow multiple companies to showcase job opportunities in one location, targeting entry-level hires
while reducing hiring costs

CONTEST RECRUITMENT

Firms use contests to blend HR and PR strategies, engaging candidates through challenges while showcasing their brand and culture
Google's Code Jam - In 2004, Google hosted a global programming contest with rounds narrowing participants to 50 finalists, offering the winner
a $10,000 prize and a job offer
E-RECRUITMENT
E-recruitment has revolutionized hiring, with companies and job seekers increasingly relying on online platforms like Naukri and Monster for cost-
effective, widespread access to opportunities and talent. Affordable technology, booming internet usage, and convenience have driven its growth
across various sectors.

Methods Advantages Disadvantages

Job boards/ Many individuals visiting job sites are

Useful for generating applicants
placement websites casual browsers

Non-target professionals typically do

Targets applicants interested in a
Professional / not visit specialized websites, leaving
specific industry or profession
Career websites them unaware of employment
Saves recruiters time and efforts
opportunities in these fields

More effective and efficient Many employer websites are difficult

Company Websites Attracts the attention of candidates to navigate since they do not present
worldwide careers, and employment information
 SELECTION

The selection process involves gathering information about job applicants and using this information to make hiring decisions.

The selection process is an exercise in prediction. It seeks to discriminate fairly among job applicants to predict which job applicants from the applicant pool
will perform the job successfully and which ones will be unsuccessful if hired.

METHODS OF SELECTION

Application Blanks
Employment Interviews
Employment Tests
EMPLOYEE
SELECTION Work Sampling
METHODS Reference Checks and Recommendations
Assessment Centres
Physical Examination
 APPLICATION BLANKS

It helps to pre-screen the candidates and is used to scale down the size of the applicants

All application blanks ask for information such as applicant's name, educational qualifications,
age, experience, etc

It identifies applicants who fulfill the minimum necessary conditions of the job and predict the
candidates who will succeed on the job

The Weighted Application Blank (WAB) is designed to systematically assign a score to each candidate based on the
data provided in the blank.

The scoring system for the WAB is developed by comparing the high and low performers who are currently employed
by the organization on a variety of characteristics

Weights are assigned relative to the degree to which each item differentiates between the two groups
 EMPLOYMENT INTERVIEWS

Interviews are the most widely used method of selection. It helps to obtain
information on various aspects such as knowledge, attitudes, communication
ability, etc

Classification of Types of Employment Interviews

Structured/directive
Degree of
Unstructured/nondirective
Structure

Situational
Content or focus of Behavioural
equations Job-related
Stress

Conduction of Interviews One to One

Sequential
Panel
 EMPLOYMENT TESTS

These tests are used to get the right person with the right attitude for the right job

The tests also seek to determine certain characteristics of applicants that may not be obtainable
from the resume

They also provide key information about a candidate's personality, emotional intelligence, ability to
work in a team, and propensity to stay with the firm

WORK SAMPLING

It required candidate’s to actually perform the part (sample) of the job to measure how well the candidate
performs

Work Sample measures actual on-the-job behavior and can be used to predict candidate’s performance, if
hired
 REFERENCE CHECKS AND RECOMMENDATIONSS

Most application forms ask for 1-2 referees (work-related or personal), whom the organization can contact to get
information about the candidates

The purpose is to verify the factual information provided by the applicant as well as to find out if the applicant has
hidden potentially damaging information, such as a criminal record

ASSESSMENT CENTRES

It require managerial candidates to attend two-to-three day simulations in which 10-12 candidates perform
realistic management tasks under the observation of experts

Typical exercises in assessment centres include in- basket exercises, paper-and-pencil tests, presentations,
interviews, group discussions, etc.

An assessment centre is an effective tool for hiring employees at managerial and high-level positions
 PHYSICAL EXAMINATION
Most application forms ask for 1-2 referees (work-related or personal), whom the organization can contact to get
information about the candidates

One objective is to ensure that the applicant does not have any medical limitations (such as a heart condition) that may
affect performance on the job

Firms use a combination of selection methods in making a hiring decision and can be used in sequence or simultaneously

Choice of methods:
1. Cost of the method
2. Job in question
3. Skills
4. Time,
5. Aailable expertise
 NEW APPROACHES TO EXECUTIVE SELECTION
Quality of leadership is a critical determinant of organizational success
Costly Exercise (Both Tangible and Intangible)
Intense competition between firms led to increased performance pressure on executive selectors
Difficult to find leaders who have experience with a particular sector
Executive selections rely on organizational values and ideologies

Selection Process

Phase 1: Candidates are shortlisted from either the internal or the external labor market

Phase 2: The final selection is made

New Approaches: New Approaches:

Computer-aided Decision Support Systems Virtual Hiring

A useful executive selection decision tool is the Analytic Hierarchy Process With the cost of employee selection becoming very high, some organizations
(AHP). One of the applications of the AHP theory is Expert Choice (EC), a are opting for interviews through video conferencing. This saves cost as well
computer-aided decision support system (DSS), as the trave-related time of interviewers.

Competency-based Approach to Selection Person-Culture Fit

This approach incorporates situational conditions and seeks to match a This approach is based on the premise that individual job performance is not
candidate’s competencies to the requirements of the situation, and therefore a function of person-job fit alone. Rather, it also depends on the group/team
to help making a selection decision. he/she works with, as well as the culture and values of the organization.
 STRATEGIC RECRUITMENT & SELECTION
To ensure the firm has the resources over the long run to meet the demands of the changing
environment

The key resource of the firm that helps it achieve competitive advantage is the human resource or the workforce

Recruitment and selection, along with other HR practices, facilitate the achievement of the firm’s business strategy

For recruitment and selection to be classified as strategic, they must demonstrate three primary features:

(1) strategic integration

(2) long-term focus
(3) a mechanism for translating strategic HR demands into appropriate recruitment and selection specification.

LONG TERM FOCUS MECHANISM

STRATEGIC INTEGRATION
here objective is to develop recruitment and To accomplish this, it is important to
Strategic recruitment and selection (SR&S) selection practices so that forecast the HR
involves an alignment of hiring the firm has HR attributes that are critical requirements necessary for the successful
practices with the strategic planning to the future and long-term achievement of the strategic plans
process of the firm. success of the firm. of the firm.
 BUSINESS STRATEGY TYPOLOGY

Defender Prospector Analyser

Function in relatively stable Identify and Exploit new Operate in stable and
Business Strategy markets opportunities dynamic markets

Some employees are hired at

Individuals hired at low levels Employees face relatively
Staffing Practices low levels and moved to
receive considerable on the frequent changes in job
position of higher
job training duties and assignments
responsibility

Recruitment
Practices Internal sources External sources Mixture of sources

Use future-oriented tests Rely on applicant’s work

Selection Practices and seek to assess potential
Use combination of methods
history, reference checks etc
promotability
 STAGES IN STAFFING/HIRING PROCESS

Organizational Objectives

Human Resource Planning

Employee
Clarify hiring mission and Requisitions
philosophy of the firm

Developing Recruitment
Recruitment Planning Applicant Search
Strategy
Evaluation

Type of Human Resources Where to recruit from Develop Recruitment

Number Which methods of use Method
Which to recruit Activate
What inducements of offer

Evaluation

Initial Screening
Selection Decision

Applicants Selected Multiple-hurdle approach Gathering information

Compensatory approach about candidate through
Applicants Rejected Combined ap approach selection method(s)
 COMPARISON BETWEEN RECRUITMENT & SELECTION PROCESSES

PERFORMANCE
RECRUITMENT SELECTION
INDICATORS

Are all job vacancies filled with qualified candidates

Size of applicant pool
Selection rate, or the percentage hired from a given
Quantity Yield ratio
group of candidates (number hired*100/ number of
Number of job vacancies filled
applicants)

Number of job offers made

Qualifications of candidates
Percentage of applicants offered jobs Quality of job performance of selected candidates
Quality Number of job offers made versus number of vacancies Rate of acceptance of job offers (number of offers
Job performance of new hires after 6 months on the job accepted/total number of offers made)
Number of hires who stay with the firm at the end of one
year
 COMPARISON BETWEEN RECRUITMENT & SELECTION PROCESSES

PERFORMANCE
RECRUITMENT SELECTION
INDICATORS

Cost/Benefit
Cost-per-hire (recruiting costs/number of vacancies)
Cost-benefit per recruitment method Staffing efficiency ratio (total staffing costs/total
Efficiency
Cost-per-hire by recruitment method compensation of those hired)
Time
Time-to-fill

Comparing recruiting efforts with past patterns Tracking the success rate of applicants (Success rate is
Benchmarking recruiting efforts with those of other the quality of the employees hired and who perform
Effectiveness organizations well on the job)
Information on job performance, absenteeism, cost of Success base rate
training, and turnover by recruitment method Benchmarking (comparing the success rate)
 ALTERNATIVES TO HIRING EMPLOYEES

Alternatives to
Hiring

Contingent
Workforce

Types

Independent Employee Leasing Temporary Help Rehiring Former Hiring from non-
Contractors Services Employees tradition labour pool
e.g. house-wives,
retired employee ex-
army leaders
THANK YOU