Project report - (Human Resource) Current Recruitment Trends- A global view
1. CONTEMPORARY
TRENDS
IN
RECRUITMENT
(A GLOBAL VIEW)
NAME: ANISHA KUMAR KUTTY
ADMISSION NO.: HPGD/JL17/4152
SPECIALIZATION: HUMAN RESOURCE
PRIN L N WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH
YEAR OF SUBMISSION: JUNE 2019
2. Contemporary Trends in Recruitment – A Global View
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ACKNOWLEDGEMENT
I would like to take this opportunity in expressing my sincere thanks to the people, I
amobliged to herfor her encouragement and support that lead me through this project. I
express my deepsense of gratitude to my project guide Mrs Sunita Javeri.
I would also like to thanks all my friends and family members, who had directly or indirectly
given their kind co-operation and encouragement. I admit that co-operation and morality are
keyword to success.
Thanking you,
Anisha Kumar.
DATE: 27/06/2019
PLACE: Powai,Mumbai.
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CERTIFICATE FROM THE GUIDE
This is to certify that the Project work titled“Contemporary Trends in Recruitment-A
global view” is a confide work carried out by Ms. Anisha Kumar Kutty (HPGD/JL17/4152) a
candidate for the final year Post Graduate Diploma in Human Resource examination of
Welingkar Institute of Management under my guidance and direction.
SIGNATURE OF GUIDE:
NAME:Mrs. Sunita Javeri
DESIGNATION: Business Head(Powai Branch)
ADDRESS: 308, Swastik Disa Corporate Park,
LBS Marg, Ghatkopar West,
Mumbai, Maharashtra 400086
DATE: 27/06/2019
PLACE: Mumbai.
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UNDERTAKING BY CANDIDATE
I Ms. Anisha Kutty, having admission No. HPGD/JL17/4152 declare that project work
entitled “Contemporary Trends in Recruitment – A Global View” is my own work
conducted as part of my syllabus.
I further declare that project work presented has been prepared personally by me and it is not
sourced from any outside agency. I understand that, any such malpractice will have very
serious consequence and my admission to the program will be cancelled without any refund
of fees.
I am also aware that, I may face legal action, if I follow such malpractice.
I hereby abide to take the viva faculty’s decision as final for evaluation of the Project
Name: Anisha Kumar
Admission No.: HPGD/JL17/4152
Place: Powai,Mumbai.
Date: 27th June, 2019
Signature:
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CONTENTS
SR. NO. PARTICULARS PAGE NO.
1. Executive Summary 6
2. Objectives of Study 7
3. Introduction – Human Resource Management (HRM)
Importance of HRM for Organizational Success
Process and Planning in HRM
HRM Model
8
4. Introduction – Recruitment, Meaning & Definition
Need, Benefits and Importance of Recruitment
Various Approaches to Recruitment
Recruitment Process
Sources of Recruitment
12
5. History & Background 27
6. Contemporary Trends in Recruitment
Trends & Practices in Human Resources Management
Trends in Recruitment Practice
29
7. Current Trends in Recruitment Industry 2018 35
8. Three Creative Candidates Sourcing Strategies 46
9. Video Interviewing 47
10. Mobile Recruitment 50
11. International AI Trends
Uses of AI
Conclusion
41
12. Video Interviewing 43
13. Mobile Recruitment 46
14. 60 Second Guide to Hiring Right People 56
15. Limitations & Recommendations 58
16. Conclusion 59
17. Bibliography 60
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EXECUTIVE SUMMARY
I opted for this particular topic because recruitment and selection procedures have taken a
dramatic change in the industry.
As Everyone knows Human resource is the most important asset of an organization which
cannot be replaced by any object. The success or failure of any organization is largely
dependent on the calibre of the people working their in. It is only the positive and creative
contributions that organizations progress and prosper. In order to achieve the goals of an
organization, they need to recruit people with right skills, qualifications and experience.
While doing so, they have to consider both present as well as the future requirements of the
organization.
In today’s rapidly changing business environment, organizations have to respond quickly to
requirements for people. The Financial market has been witnessing growth which is manifold
for last few years. Many private players have entered the economy thereby increasing the
level of competition. In the competitive scenario it has become a challenge for each company
to adopt practices that would help the organization standout in the market.
The competitiveness of a company of an organization is measured through the quality of
products and services offered to customers that are unique from others. Thus, the best services
offered to the consumers are result of the genius brains working behind them. Human
Resource in this regard has become an important function in any organization
Hence, it is important to have a well-defined recruitment policy in place, which can be
executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate
or rejecting the right candidate could turn out to be costly mistakes for the organization.
Therefore, a recruitment practice in an organization must be effective and efficient in
attracting the best manpower.
In the current scenario, companies prefer to adopt social media, job portals and campus
recruitment to hire candidates across skill sets. This system has helped the organizations to
get the right talent pool while being cost effective. In other words, by using channels such as
social media, job sites, and campus recruitment, companies have been able to get the effective
resources with minimum cost. This has helped organizations to grow as they have been able
to get the right people for their vacancies. In addition, the appropriate channels have helped
the organizations to get the different and varied sources to which they can turn to for effective
hiring. What is evident from these channel distribution figures is that no single channel alone
will reach all the candidates and that a multi-channel approach is essential to cover up the
market. Recruiters must consider both market flow and share of applications when deciding
which channels to use and to what extent. Although the Web-based job portals generate many
applications, they still do not reach all the candidates. To conclude, the channel distribution
figures show recruiters not just the percentage of candidates that they are reaching via each
channel, but also the percentage of candidates that they are failing to reach and the need to
shift their source of recruitment.
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OBJECTIVES OF STUDY
The main objective is fairly obvious: to hire the most-qualified candidate to fill an
available position. To understand the importance of Recruitment process.
To study the Emergingtrends of sourcing channels for effective hiring,
To study the effectiveness of each recruitment source in companies in the global
business environment and
To investigate sources of recruitment which are appropriate for different levels of
workforce.
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INTRODUCTION: TO HUMAN RESOURCE MANAGEMENT
As Mentioned Earlier, an organization is nothing without human resources. People are a
company’s most important assets. They can make or break the fortunes of a business. In
today’s highly competitive business environment, placing the right people in the right position
is very critical for the success of any organization.
We often hear the term Human Resource Management, Employee Relations and Personnel
Management used in the popular press as well as by Industry experts.
What is HRM?” by giving a broad overview of the topic and introducing the readers to the
practice of HRM in contemporary organizations. Though as with all popular perceptions, the
above imagery has some validity, the fact remains that there is much more to the field of
HRM and despite popular depictions of the same, the “art and science” of HRM is indeed
complex.
I have chosen the term “art and science” as HRM is both the art of managing people by
recourse to creative and innovative approaches; it is a science as well because of the precision
and rigorous application of theory that is required.
As outlined above, the process of defining HRM leads us to two different definitions.
The first definition of HRM is that it is the process of managing people in organizations
in a structured and thorough manner. This covers the fields of staffing (hiring people),
retention of people, pay and perks setting and management, performance management,
change management and taking care of exits from the company to round off the activities.
This is the traditional definition of HRM which leads some experts to define it as a modern
version of the Personnel Management function that was used earlier.
The second definition of HRM encompasses the management of people in organizations
from a macro perspective i.e. managing people in the form of a collective relationship
between management and employees. This approach focuses on the objectives and outcomes
of the HRM function. What this means is that the HR function in contemporary organizations
is concerned with the notions of people enabling, people development and a focus on making
the “employment relationship” fulfilling for both the management and employees.
These definitions emphasize the difference between Personnel Management as defined in the
second paragraph and human resource management as described in the third paragraph. To
put it in one sentence, personnel management is essentially “workforce” centeredwhereas
human resource management is “resource” centered. The key difference is HRM in recent
times is about fulfilling management objectives of providing and deploying people and a
greater emphasis on planning, monitoring and control.
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Importance of HRM for Organizational Success
The practice of HRM must be viewed through the prism of overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro approach. The idea
here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal
strategies and the HRM policy enmeshes itself fully with those of the organizational goals.
For instance, if the training needs of the employees are simply met with perfunctory trainings
on omnibus topics, the firm stands to lose not only from the time that the employees spend in
training but also a loss of direction. Hence, the organization that takes its HRM policies
seriously will ensure that training is based on focused and topical methods.
The practice of HRM needs to be integrated with the overall strategy to ensure effective use
of people and provide better returns to the organizations in terms of ROI (Return on
Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in
this way, the firms stand to lose from not utilizing people fully. And this does not bode well
for the success of the organization.
Processes in Human Resource Management
Each organization works towards the realization of one vision. The same is achieved by
formulation of certain strategies and execution of the same, which is done by the HR
department. At the base of this strategy formulation lie various processes and the
effectiveness of the former lies in the meticulous design of these processes. But what exactly
are and entails these processes?
The following are the various HR processes:
Human resource planning (Recruitment, Selecting, Hiring, Training, Induction,
Orientation, Evaluation, Promotion and Layoff).
Employee remuneration and Benefits Administration
Performance Management.
Employee Relations
The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You
start from Human resource Planning and there is a continual value addition at each step. To
exemplify, the PMS (performance Management System) of an organization like Infosys
would different from an organization like Walmart.
Human Resource Planning: Generally, we consider Human Resource Planning as the
process of people forecasting. Right but incomplete! It also involves the processes of
Evaluation, Promotion and Layoff.
Recruitment: It aims at attracting applicants that match a certain Job criteria.
Selection: The next level of filtration. Aims at short listing candidates who are the
nearest match in terms qualifications, expertise and potential for a certain job.
Hiring: Deciding upon the final candidate who gets the job.
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Training and Development: Those processes that work on an employee onboard for
his skills and abilities upgradation.
HRM MODEL:
In recent years there has been relative agreement among HRM specialists that what
constitutes the field of HRM. The model that provided the focus was developed by the
American Society for Training and Development (ASTD).' In its study, ASTD identified nine
human resource areas:
1. Training and development: Human Resource Management tries trained, and develop its
employees considering individual, organization and training institute needs.
2. Organization development: Through organizational development is a systematic process
can be under taken and some interventions can be practiced for the development of human
resources and organizational activities. That can help proper functioning of the organization.
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3. Organization /Job Design: Organizational job design focuses on defining how tasks
authority and systems will be organized and integrated across organization units and in
individual jobs.
4. Human resource planning: Human resource planning focuses arranging the organizations
major human resource need strategies and philosophies.
5. Selection and Staffing: After job design or recruitment, most appropriate candidates are
chosen from available candidates, is called selection. Selection and staffing needs focus
matching people and their career needs and capabilities with job and career paths.
6. Personnel Research and Information Systems: Its focus assuring and personnel
information base.
7. Compensation / Benefits: Compensation refers to all the extrinsic rewards that employee
in change for their work. Its focus assuring compensation benefits fairness and consistency.
8. Employee Assistance: Its focus assuring providing personal problem solving, counselling
to individual employee.
9. Union / Labor Relations: It focuses ensuring healthy organizational relationships. A
human relation is important for industrial peace and good working environment.
These nine areas have been termed spokes of the wheel in that each area impacts on human
resource outputs: quality of work life, productivity, and readiness for change.
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INTRODUCTION – RECRUITMENT
Recruitment is an important part of an organization’s human resource planning and their
competitive strength. Competent human resources at the right positions in the organization are
a vital resource and can be a core competency or a strategic advantage for it.
Recruitment acts as a link between the employers and the job seekers and ensures the
placement of right candidate at the right place at the right time. Using and following the right
recruitment processes can facilitate the selection of the best candidates for the organization.
GLOBAL RECRUITMENT AND SELECTION
While HR professionals strongly agree that finding the right talent is the stepping stone for
organizations to succeed, many line managers may not give recruitment its due credit. And
when an organization is spread beyond one’s home country, finding the right person becomes
even more important. This is because every employee at all times is representing his
organization’s brand. His behaviour, skills, manners, communication style – everything
represents the organization. When someone has an experience with an “employee”, he may or
may not remember the employee’s name but will definitely remember his organization’s
name. In this context then recruitment becomes a process of high importance.
Meaning:
Recruitment is a positive process of searching for prospective employees and stimulating
them to apply for the jobs in the organisation. When more persons apply for jobs then there
will be a scope for recruiting better persons. Recruitment is understood as the process of
searching for and obtaining applicants for the jobs, from among whom the right people can be
selected.
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Definition:
According to Edwin B. Flippo, “It is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation.” He further elaborates
it, terming it both negative and positive.
He says, “It is often termed positive in that it stimulates people to apply for jobs, to increase
the hiring ratio, i.e. the number of applicants for a job. Selection, on the other hand, tends to
be negative because it rejects a good number of those who apply, leaving only the best to be
hired.”
Need for recruitment:
The need for recruitment may be due to the following reasons / situation:
Vacancies due to promotions, transfer, retirement, termination, permanent disability,
death and labour turnover.
Creation of new vacancies due to the growth, expansion and diversification of
business activities of an enterprise. In addition, new vacancies are possible due to job
specification.
Benefits and Importance of Recruitment:
Helps to create a talent pool of potential candidates for the benefits of the
organization.
Determine the present and future requirements of the organization on conjunction with
its personnel-planning and job analysis activities.
To increases the pool of job seeking candidates at minimum cost.
It helpsto increasethe success rate of selection process by decreasing the no of visits
qualified or over qualified job applicants.
Increase organizational and individual effectiveness in the short term and long term.
Evaluate the effectiveness of various recruiting techniques and sources for all types of
job applicants.
Recruitment is a positive function in which publicity is given to the jobs available in
the organization and interested candidates are encouraged to submit applications for
the purpose of selection.
Helps in identifying and preparing potential job applicants who will be the appropriate
candidature for the job.
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Finally,it helps in increasing organization and individual effectiveness of various
recruiting techniques and for all the types of job applicants
Approaches to recruitment
The main aim of any recruitment team is to find the right people for the right task at the right
time. However, HR departments of international organizations may adopt one of the
following approaches for recruiting employees for global operations.
1. EthnocentricApproach
When a company follows the strategy of choosing only from the citizens of the parent country
to work in host nations, it is called an ethnocentric approach. Normally, higher-level foreign
positions are filled with expatriate employees from the parent country. The general rationale
behind the ethnocentric approach is that the staff from the parent country would represent the
interests of the headquarters effectively and link well with the parent country. The recruitment
process in this method involves four stages: self-selection, creating a candidate pool, technical
skills assessment, and making a mutual decision.
Self-selection involves the decision by the employee about his future course of action in the
international arena. In the next stage, the employee database is prepared according to the
manpower requirement of the company for international operations. Then the database is
analysed for choosing the best and most suitable persons for global assignments and this
process is called technical skills assessment. Finally, the best candidate is identified for
foreign assignment and sent abroad with his consent.
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The ethnocentric approach places natives of the home country of a business in key positions
at home and abroad. In this example, the U.S. parent company places natives from the United
States in key positions in both the United States and Mexico.
Ethnocentric staffing presents advantages and disadvantages.
Advantages of Ethnocentric Approach
The obvious advantage to ethnocentric staffing is the alignment of interests and
perspectiveof the home office with all foreign subsidiaries abroad.
Communication is also easier because there should be no language and cultural
barriers.
The company may also be able to transfer employees with a clear performance record
that will provide some level of predictability.
Disadvantages of Ethnocentric Approach
You can lose local perspective and insights that local employees can provide that may
help overcome unique hurdles in each foreign office.
Hiring expatriates tends to be expensive compared to hiring locally. Additionally, a
high ratio of expatriates may create local resentment at foreign subsidiaries, which
may hurt morale.
An ethnocentric company assumes that the host country will be unable to supply
skilled labour. Although it will recruit local people for low-level positions, an
ethnocentric company will reserve skilled positions and managerial roles for
employees from its home country.
During the recruitment and selection process, an ethnocentric company risks imposing
cultural norms from its home country.
It may struggle to find suitable employees because it seeks qualifications that are not
undertaken in the host country or insists that low-level employees speak a second
language to enable them to communicate with expatriate managers.
Did you know?
Firms such as P&G, Philips and Matsushita originally followed the Ethnocentric Approach. In
the Dutch firm Philips, for example, all important positions in most foreign subsidiaries were
at one time held by Dutch nationals who were referred to by their non-Dutch colleagues as the
Dutch Mafia. In many Japanese and South Korean firms today, such as Toyota, Matsushita,
and Samsung, key positions in international operations are still often held by home-country
nationals. According to the Japanese Overseas Enterprise Association, in 1996 only 29 per
cent of foreign subsidiaries of Japanese companies had presidents that were not Japanese.
2. Polycentric Approach
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When a company adopts the strategy of limiting recruitment to the nationals of the host
country (local people), it is called a polycentric approach. The purpose of adopting this
approach is to reduce the cost of foreign operations gradually. Even those organizations which
initially adopt the ethnocentric approach may eventually switch over to the polycentric
approach. The primary purpose of handing over the management to the local people is to
ensure that the company understands the local market conditions, political scenario, cultural
and legal requirements better. The companies that adopt this method normally have a
localized HR department, which manages the human resource of the company in that country.
Many international companies operating their branches in advanced countries like Britain and
Japan predominantly adopt this approach for recruiting executives to manage the branches.”
The polycentric approach uses natives of the host country to manage operations in their
country and natives of the parent country to manage in the home office. In this example, the
Australian parent company uses natives of India to manage operations at the Indian
subsidiary. Natives of Australia manage the home office.
Polycentric staffing has advantages and disadvantages.
Advantages of Polycentric Approach
Host-country nationals (HCN) will be able to better guide the company on local
market conditions, politics, laws and culture at each foreign location.
Use of local employees also sends a message to the country and its consumers that the
company is willing to make a commitment to the country and its people.
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Local employees are also cheaper, as there are no relocation expenses and premium
compensation for working abroad.
Employment of HCNs eliminates language barriers, avoids adaptation of Parent
Company Nationals (PCN), reduces the need for cultural awareness training programs.
Employment of HCNs allows a multinational company to take a lower profile in
sensitive political situations.
Employment of HCNs gives continuity to the management of foreign subsidiaries
(lower turnover of key managers).
Disadvantages of Polycentric Approach
• Relying on locals means there may be some disconnect in perspective and interests with the
home country. Locals may put local interests above the company's broader interests.
• Difficult to bridge the gap between HCN subsidiary managers and PCN managers at
headquarters (language barriers, conflicting national loyalties, cultural differences).
• HCN managers have limited opportunities to gain experience outside their own country.
• PCN managers have limited opportunities to gain international experience
• Resource allocation and strategic decision making will be constrained when headquarter is
filled only by PCNs who have limited exposure to international assignment.
Did you know?
Some US MNCs use home-country managers to get the operations started, then shift to a
Polycentric Approach and hand it to the host country managers. Hindustan Lever Ltd. (HLL),
the Indian subsidiary of Unilever, has locals as its top management.
3. Geocentric Approach
When a company adopts the strategy of recruiting the most suitable persons for the positions
available in it, irrespective of their nationalities, it is called a geocentric approach. Companies
that are truly global in nature adopt this approach since it utilizes a globally integrated
business strategy. Since the HR operations are constrained by several factors like political and
ethnical factors and government laws, it is difficult to adopt this approach. However, large
international companies generally adopt the geocentric strategy with considerable success.
For international recruitment, especially on foreign soil, organizations generally use
manpower agencies or consultants with international connections and repute to source
candidates, in addition to the conventional sources. For an effective utilization of the internal
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source of recruitment, global companies need to develop an internal database of employees
and an effective tracking system to identify the most suitable persons for global postings.
The geocentric approach uses the best available managers for a business without regard for
their country of origin. In this example, the UK parent company uses natives of many
countries at company headquarters and at the U.S. subsidiary. There are advantages and
disadvantages to this approach:
Advantages of a Geocentric Approach
• Enhances ability of the firm to develop an international executive team.
• Overcomes the federation drawback of the polycentric approach.
• Support cooperation and resource sharing across units.
Disadvantages of a Geocentric Approach
• Host government may use immigration controls in order to increase HCNs employment.
• Expensive to implement due to increased training and relocation costs.
• Large numbers of PCNs, HCNs, and TCNs need to be sent across borders.
• Reduced independence of subsidiary management.
Did you know?
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The Swedish multinational Electrolux is a global company where there is not a tradition to
hire managing directors from Sweden, or locally, but to find the person best suited for the job.
They claim that the 'color of one's passport' does not matter when it comes to rewards,
promotion and development. PCNs, HCNs and TCNs can be found in key positions
anywhere, including those at senior management level at headquarters and on the board of
directors. It enables a multinational firm to develop an international executive team which
assists in developing a global perspective and an internal pool of labor for deployment
throughout the global organization. It overcomes the 'federation' drawback of the polycentric
approach. It supports cooperation and resource sharing across units.
Regiocentric Approach
A Regio centric approach to hiring selects management personnel from within a region of the
world which most closely resembles that of the host country. The company has expanded its
search beyond the borders of the host country, but has stopped short of seeking management
personnel from its operations throughout the world. The theory behind this selection process
is that nationals of the region in which operations actually take place are better able to deal
with language and cultural problems than are managers from outside the region. The logic
behind this hiring approach is probably sound, but it ignores the potential growth a manager
goes through when forced to deal with different situations than those in which he or she is
comfortable.
The regiocentric approach is adaptable to the company and product strategies. When regional
expertise is needed, natives of the region are hired. If product knowledge is crucial, then
parent-country nationals, who have ready access to corporate sources of information, can be
brought in.
The regiocentric approach places managers from various countries within geographic regions
of a business. In this example, the U.S. parent company uses natives of the United States at
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company headquarters. Natives of European countries are used to manage the Italian
subsidiary.
There are advantages and disadvantages to this approach:
Advantages of a Regiocentric Approach
• Culture familiarity of the candidates with that of the host country.
• Less cost of staff compared to parent country nationals.
• Subsidiary can perform its business operations efficiently in neighbouring countries by
recruiting neighbouring country nationals.
• Loyalty and commitment of neighbouring country nationals towards subsidiary
• Stability in employment of neighbouring country nationals compared to that of other
foreigners.
Disadvantages of a Regiocentric Approach
• One shortcoming of the regiocentric approach is that managers from the region may not
understand the view of the managers at headquarters.
• Corporate headquarters may not employ enough managers with international experience
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RECRUITMENT PROCESS
Many job applicants misrepresent their true status, background and experience. This is true
for both upper and lower entry employees. One survey reported by Inc. magazine indicates
the following about job applicants:
15% of all job applicants falsify academic qualifications.
10% falsely upgrade their academic qualifications.
35% claim specific achievements or experiences that are untrue.
70% indulge in puffery (upgrading the importance of achievements).
12% have some kind of criminal record, including serious automobile convictions.
These statistics define the need of a sound recruitment process. The beginning of a powerful
employer-employee relationship begins with the hiring process. The value of placing your
efforts and resources into the hiring process cannot be overstated.
The recruitment and selection are the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organizations. Recruitment process involves a
systematic procedure from sourcing the candidates to arranging and conducting the interviews
and requires many resources and time.
A general recruitment process is as follows:
- Identify vacancy
- Prepare job description and person specification
- Advertising the vacancy
- Managing the response
- Short-listing
- Arrange interviews
- Conducting interview and decision making
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The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company. These contain:
- Posts to be filled
- Number of persons
- Duties to be performed
- Qualifications required
- Preparing the job description and person specification
- Locating and developing the sources of required number and type of employees
(Advertising etc.)
- Short-listing and identifying the prospective employee with required characteristics
- Arranging the interviews with the selected candidates
- Conducting the interview and decision making
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The recruitment process is immediately followed by the selection process i.e. the final
interviews and the decision making, conveying the decision and the appointment formalities.
The recruitment process in India is designed in such a way that each candidate gets the
desired job profile according to his or her own choice. Placing the candidate in the right job
profile, in the best company, is the end solution of most of the Indian recruitment agencies.
The recruitment process in India involves identifying the vacancies, preparing the job
description and person specification, advertising, managing the response, short-listing,
arranging interviews, conducting interviews, decision making, convey the decision and
appointment action. This means that a lot of time and resources have to be invested before the
right candidate is selected.
Most of the recruitment companies in India follow three steps in the recruitment process,
which basically are application short listing, preliminary assessment and final interview &
selection.
The recruitment process may include a written test to judge particular skills of a candidate. In
this case, the test should be prepared carefully, not deviating from the subject. A lot can be
judged about the candidate from his CV. A proper presentation of his CV in an organized and
refined manner speaks a lot about the individual. His mindset and attitude can be judged
according to his CV.
Next come the interview, which is an important and crucial part of the recruitment process.
The person taking the interview of the candidate has to be well prepared in advance. Concerns
like the location of the interview, the time table, the structure of the question strategy, style of
taking the interview needs to be decided beforehand so that nothing is left out and all the
issues are properly addressed.
Moreover, there are a few things that need to be kept in mind during the recruitment process.
Until the final decision about a certain candidate is taken, it is important to keep in regular
touch with the candidate. The decision-making process should not take very long to avoid the
candidate from taking up some other opportunity. A candidate should be duly informed once
the decision is taken. He or she should be told the complete process of his appointment clearly
with details of all the documents that he or she needs to submit. A record file should be
maintained of the candidate for future reference.
The recruitment process must be robust and justifiable and should stand up to external
scrutiny. Only a good recruitment agency with good understanding of the domain as well as
the process can perform the same successfully. In India most of the recruitment agencies
understand the needs of the clients and of the candidates and they work in a planned way to
recruit people.
Recruitment refers to the process of attracting, screening, selecting, and onboarding a
qualified person for a job. At the strategic level, it may involve the development of an
employer brand which includes an 'employee offering’.
Understanding the Cost of Recruitment
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Measuring recruitment costs is an inexact science. There are many intangible costs associated
with recruitment, such as management time taken up with briefing recruitment consultants or
head hunters, drawing up job advertisements, interviewing (and second interviewing) and
negotiating offers. The HR staff’s time may also be diverted from core duties as a result of a
recruitment exercise – covering the work while the position remains vacant and meeting
potential candidates at second interview stage.
In addition to these intangible costs, there are the actual monetary costs of external suppliers
which could include marketing and advertising, assessment centers, test materials as well as
many other possible costs.
SOURCES OF RECRUITMENT
Depending on the type of job opening, you can recruit qualified staff from several internal and
external sources
Every organisation has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the organisation
itself (like transfer of employees from one department to other, promotions) to fill a position
are known as the internal sources of recruitment. Recruitment candidates from all the other
sources (like outsourcing agencies etc.) are known as the external sources of the recruitment.
Regional HR would tap various sources/channels for getting the right candidate. Depending
on the nature of the position/grade, volumes of recruitment and any other relevant factors, the
Regional HR would use any one of the sources.
(A) INTERNAL SOURCES:
You may have someone in mind that may be suitable for the job. It may be a relative or a
close friend. He/she is someone whom you can trust and who is qualified, with the relevant
experience.
25. Contemporary Trends in Recruitment – A Global View
25
If your business has been ongoing with an existing pool of employees, you may also wish to
allow your existing employees the opportunity to be considered for the new job opening.
INTERNAL SOURCES OF RECRUITMENT –
1. TRANSFERS The employees are transferred from one department to another according to
their efficiency and experience. It may not involve a change in salary, responsibility, and
position of the job. Transfers help in reducing the boredom and monotony of the employees or
it may be used to fill the vacancies with suitable internal candidates.
2. PROMOTIONS The employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience. Promotions involve
vacancies of the organization are filled by promoting the skilled employees to the suitable
jobs and it can motivate the employees by giving higher position, increased salary, status, and
responsibility. Promotions can help in reducing employee turnover by creating the hope of
getting higher positions.
3. DEMOTIONSOthers are Upgrading and Demotion of present employees according to
their performance. Depending on the performance of the employees of the organizations,
sometimes managers have to take decisions regarding lowering the positions of few
employees of the organization. These employees can act as a source of recruitment to the
lower positions
4. RETIRED EMPLOYESSRetired and Retrenched employees may also be recruited once
again in case of shortage of qualified personnel or increase in load of work. Recruitment such
people save time and costs of the organisations as the people are already aware of the
organisational culture and the policies and procedures. If the organizations do not find the
right persons to fulfill the key managerial positions then they call back the retired employees
for achieving the objectives.
5. EMPLOYEES OF THE ORGANISATIONEmployees of the organization communicate
or inform about the vacant positions of the organization to their friends and relatives. In many
organizations, they allowed referring potential candidates for the suitable vacancies.
(B) EXTERNAL SOURCES:
Depending on your needs and your budget, you may consider the following sources:
referrals from your business contacts or clients for a suitable candidate
advertising in the media
post the job opening on online job banks
recruit fresh graduates from tertiary institutions
walk-in interviews
26. Contemporary Trends in Recruitment – A Global View
26
job fairs
professional recruitment agencies or government agencies such as WDA
EXTERNAL SOURCES OF RECRUITMENT
1.ADVERTISEMENTS: To find the skilled and more efficient manpower giving
advertisement for the vacant job position is the better way. Advertisements help in attracting
the right candidates and in maximizing brand image. Advertisements may be given in print
media or electronic media; it gives better results and it is cheaper than approaching third
parties.
2. EDUCATIONAL INSTITUTES: Various management institutes, engineering colleges,
medical Colleges etc. are a good source of recruiting well qualified executives, engineers,
medical staff etc. They provide facilities for campus interviews and placements. This source
is known as Campus Recruitment.
3. PLACEMENT AGENCIES: Several private consultancy firms perform recruitment
functions on behalf of client companies by charging a fee. These agencies are particularly
suitable for recruitment of executives and specialists. And various other discussed further in
report.
4. JOB FAIRS AND WALKINS: Walk in interviews and job fairs are declared and
conducted by companies to find the skilled candidates. Following this method highly reduces
efforts in finding more efficient human resources for the bulk requirement.
5.PLACEMENT AGENCIES: Approaching placement agencies reduces the time and
efforts to find the right candidates from the pool of skilled candidates. They use various tools
and techniques to filter the resumes and they send it to the companies for further processing.
The main drawback of this method is commission basis on hiring the candidates.
6.COMPANY WEBSITES: many companies are setting up their own websites for finding
and attracting candidates with competitive skills.
7. JOB PORTALS: Job portals can inform up to date job alerts to the candidates and offer
attractive benefits and packages to the employers. The tools and techniques used by the job
portals highly reduce the efforts in finding the skilled candidates.
27. Contemporary Trends in Recruitment – A Global View
27
HISTORY AND BACKGROUND
Recruitment is something which I have always classified as 'new' or 'modern.' It was only
after researching the topic further, that I discovered the concept of recruitment to be rich in
history, dating all the way back to the 1940's," says KerrynKarssing senior consultant at the
Recruit group. The global definition of recruitment refers to a process whereby a candidate is
attracted, screened and selected for a job by a recruiter or employee. It is interesting to think
that this process has continued for decades. However, development and technology have
affected the way in which the process has been carried out from decade to decade. The current
recruitment industry is an environment of radical transformation and new and innovative
recruiting trends.
It is believed by some that recruitment dates back to ancient Egypt, Greece and Rome through
the way in which people wrote things down about themselves to give a potential employer,
initiating the concept of a CV. However, the birth of modern recruitment, and recruitment as
we know it, began in the 1940's as a result of WWII. The calling of soldiers to the war left
gaps in the work-place and a solution was born: the employment agency. Employment or
recruitment agencies began to advertise for members of society who were not called into
military service, to fill the vacancies in the workplace left by those who went to war. Once the
war had come to end, the employment agency remained with the purpose of finding the
returning war veterans (with their new skills) a place in the employment market which at the
time was lacking in talent. And so, with the expanded work-force, the recruitment industry
blossomed.
By the 1950's, people were creating resumes depicting their current personal profiles and
skills. The main focus of the recruiter then was to ensure that candidates, or the customer,
were satisfied and found employment. However, by 1970 along with the booming economy,
there was a shift in focus. Recruiters began to work for the client as an increasing amount of
corporate and expanding businesses began to outsource their hiring needs to employment
agencies. However, this was before the rise of the internet and modern technology, and
recruitment was a different game. Recruiters had limited resources in comparison to recruiters
in the modern age. The main tools of recruitment were that of bulletin boards, which slowly
led to advertisements in newspapers. Recruitment depended extensively on word-of-mouth
and face-to-face applications. The storage of information was also challenging as the agency
would have to store files and archives of masses of CVs written on paper, making applications
difficult to access and sort through.
28. Contemporary Trends in Recruitment – A Global View
28
With the invention of the computer, arrived Applicant Tracking Systems and candidate
databases which made storage and accessibility of the CVs much easier for recruiters. By the
mid 90's, with the arrival of the world-wide web or internet, recruiters were treated to the use
of online classifieds and job advertising as well as online databases. The concept of "head-
hunting" became ever popular, and a focus on skill apparent. Many years later with the
growth and improvement of the internet as an accessible research tool, recruiters started to use
online job-portals as a resource to access candidate's CVs. Today "Pnet" and "Career
Junction" are a popular resource used by South- African recruiters for exposure to thousands
of CVs.
We can therefore see a change in recruitment methods throughout the years mainly influenced
by socio-economic circumstance, as well as development and technological influence.
Although the recruitment industry has progressed from hand-written CVs and walk-in
applications, the industry remains ever-changing. Since 2010, more people are using social
networking sites to recruit staff as well as apply for jobs. Personal branding has taken
centerstage, and social networks are ever-present and expanding. Recruiters now have access
to millions of professional profiles with the click of a button. LinkedIn, a professional social
networking site has become ever-popular, allowing recruiters to head-hunt quite easily. Social
networking has taken over from word-of-mouth referrals, and with the influx of social sites
people have to be aware of the kind of impression they are making online, or their "online
personality." Twitter and Facebook as well as company websites have also enhanced the
means by which recruiters are able to advertise. Although the rise of the internet, job portals
and social networking have been seen as positive and have improved the quality of a
recruiter's candidate search, it has also allowed fellow recruiters and employers to share one
universal database of candidates.
Therefore, in recent years, it has become a trend for recruitment agencies to differentiate
themselves from their competitors using various tools, specialization and recruitment methods
whereas in previous years a specific agency would have ownership of a single candidate’s CV
written on a piece of paper.
The recruitment agency has thus seen extensive changes over the years, and has developed
and progressed immensely with the creation of new recruitment tools and processes. It
remains however, an ever-challenging environment and industry. Current recruitment trends
include social networking, and old recruitment methods (such as billboard advertising) have
therefore been minimized with the rise of the internet. Throughout the history of recruitment
one aspect has remained the same: it is always changing. The attracting, screening and
selection of candidates in whatever circumstance or period, using whichever tools available
has always had the same purpose: placing a candidate in a vacancy and the environment in
which this has taken place has been changing and evolving since 1940, and will continue to
do so. Says Kerryn: "Although the recruitment industry is ever- changing, and could be an
entirely different environment by 2020, if recruiters can adapt and use these changes as a tool
to enhance their resources and to expand, they will succeed just like they have for the past 70
years."
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29
CONTEMPORARY TRENDS IN RECRUITMENT
Changing Trends of Recruitment Practice to enhance the Quality of hiring in Global
Organizations.
Human capital is arguably the most treasured and valued asset of any organization, and is
primarily responsible for adding value to all other assets of an organization. The very word
recruitment is a logistics nightmare for the HR of many organizations. It has been seen, in this
rapid changing world, that various sourcing recruitment channels, such as social media
(LinkedIn, Facebook, etc.) have been developed and used, in addition to the traditional ones
(advertisements, employee referrals, recruitment agencies, etc). In this paper, an attempt has
been made to identify the changing trends related to effective hiring sources and to study their
impact on the leading global organizations. It is concluded that a shift is being made towards
the modern and innovative sourcing channels due to various factors like quality, cost,
availability, time, etc.
The process of recruiting has changed significantly over the last few decades. What started
out as the scope of office managers to place job advertisements in newspapers, or "help
wanted" signs has now grown up into a multibillion-dollar industry? The individuality of
talent requires national corporate recruitment effort, or utilization of external agencies, solely
focused on performing the recruiting activities made up of individuals dedicated to just the
sourcing of candidates.
Human being resource is no longer considered a business requirement; rather it has
magisterial itself as one of the key possessions of any organizational formation. Human
resource is no longer considered a business requirement; rather it has distinguished itself as
one of the core assets of any organization. The statement by Mr. Narayan Murthy, "my
company's assets walk out of the door every evening", really holds the paradigm shift of the
growing economy. In the above quote, emphasis has been given on effective talent
management. Growing at a pace of about 100 to 150 percent, this recruitment mode promises,
its share from 2 percent to 10 percent in the next 4 to 5 years. A recent study in Sunday Times
30. Contemporary Trends in Recruitment – A Global View
30
by Chhapia (2014) showed that new recruiters like LinkedIn, Twitter and Blackstone has
signed up. In this paper, an attempt is made to do a small research survey on five major IT
organizations to find out the recent trend of using source channels for sourcing the candidates
i.e. an attempt to find out which source channel has the best reach keeping in mind its cost
and the quality of candidates.
TRENDS & PRACTICES IN HUMAN RESOURCE MANAGEMENT
The HR function is being shaped by the global trends mentioned above. There numerous
trends and consequent practices are being adopted by HR across the globe. Listed here are ten
key trends shaping the look of current HR departments
1. Talent management is becoming a priority
2. HR technology gaining significance prominence
3. HR analytics gaining significance
4. Diversity becoming a business need
5. Future leadership development is the key focus
6. Demand for business focused and enterprising workforce
7. Strategic human resource planning (HRP) becoming ever more significant
8. Increasing drive and focus on succession planning
9. Outsourcing the HR function is on the rise
10.Increasing emphasis on building shared organizational culture and values
TRENDS IN RECRUITMENT PRACTICE
I. A review of social media and Internet-based recruitment
Social networking sites, such as Facebook and Twitter, allow individuals to post and share
personal information, which has led many US employers to use social networking sites to
screen job applicants (Shea and Wesley, 2006; Withiam, 2011). A reason for using social
networking sites to screen employees is that employers might want to verify information
provided by applicants. For example, ADP Screening and Selection Services found that
applicants falsify their information on applications, such as their employment record,
education, and credentials or licenses (Levashina, 2009). Other reasons for using social
networking sites for selection purposes is that social networking sites have some advantages
over traditional human resource tools, such as being accessible without costs (Jacobs, 2009)
and are perceived to be reliable sources by users (Kluemper and Rosen, 2009).
A research was conducted to examine the relationship between use of the social media as a
recruitment source and student attitudes (Rozelle& Landis, 2002). They hypothesized that that
Internet recruitment would be seen as presenting less accurate information to applicants as
compared to informal forms of recruitment. In addition, greater applicant use of Internet-
based recruiting information was expected to be associated with lower satisfaction with the
organization. The data did not support the hypotheses, hence the role of online recruitment
was significantly established through this study.
A paper was recently presented at an international conference by Florea&Badea (2013),
which emphasized the manner in which the organizations use technology increases or
decreases its positive net effect. The findings suggest that through the Internet, HR can
31. Contemporary Trends in Recruitment – A Global View
31
develop an effective recruitment program, which helps manage the highly competitive and
time-consuming process of finding skilled personnel.
Another study addressed an important issue while using social media as a hiring tool that the
reliability and validity of using social networking sites to screen and select applicants is
unknown. Until the reliability and validity of the information from social networking sites is
examined, hiring organizations should be cautious when relying on social networking sites to
make selection decisions (Madera, 2012).
II. Recruiting trends in global organizations from distinct perspectives
The present review strives to highlight the trend of current recruitment practice from a global
perspective. So, it is important to ascertain the role cultural differences play in the area of
recruitment, if any. Ma & Allen (2009) did a conceptual research, which explores how
cultural values influence the effectiveness of recruitment practices in different cultural
contexts. In today’s business environment one of the popular sources of hiring people is the
‘word of mouth’ which significantly affects the behavioural and perceptual outcomes of the
decisions taken to hire right people. This phenomenon was studied by Van Hoye and Lievens
(2009) sample of potential applicants, targeted by the Belgian Defence. They found that
having positive information regarding potential talents through word-of-mouth early in the
recruitment process was significantly correlated with perceptual (organizational
attractiveness) and behavioural outcomes (actual application decisions).
Another study conducted by Russo et al. (2001) attempted to investigate how employers'
recruitment strategies change in response to different conditions on the relevant regional labor
market. Their empirical findings show that the hiring of unemployed candidates and the use
of the public employment service are events more likely to happen in a slack regional labor
market. On the basis of their results they concluded that the use of advertisements and the
hiring of already-employed job seekers are more likely to occur in the presence of excess
demand on the relevant regional labor market.
The influence of personal networks positively influences the wages of referred individuals.
However, the value of recommendations to the employer depends on the type of vacancy and
the provider of information. It has been shown that new recruits receive a higher start wage
when recommended by a causal agent with direct experience of their productivity. On the
reverse, the use of recommendations from friends and relatives has no influence on the
starting wage and may even be even negatively related to wages in non-expert jobs
The effectiveness of different recruitment sources for new employees has been the topic of
research for over 60 years. The effectiveness has primarily been assessed by examining the
rates of turnover (and "job survival"), as well as job performance, with referrals by current
personnel, in-house job postings, and the re-hiring of former employees being considered the
most effective sources (Zottoli&Wanous, 2000).
From Indian organizational perspectives, a study by Sen and Saxena (1997) on managing the
knowledge workers has given importance to the process involved during the time of
recruitment and hiring. They believe that the most striking feature of the Indian labor market
is the apparent abundance of labour, yet the right type of labour is not too easy to find. A
similar study has been done by Tendon (2006) giving importance to hiring quality candidates
32. Contemporary Trends in Recruitment – A Global View
32
who are hard to find. In his research article he has made an attempt to study why talent
deficiency prevails in Indian job market in spite of a huge population.
Another important study by Unwin (2005) gives more significance to the process involved
during the time of recruiting and hiring good candidate. Karen Unwin believes that
recruitment is the only component for attracting and retaining knowledge workers. A review
done by Reddy (2004) points out that Six Sigma is the best practice for the recruitment of
human talent. Reddy (2004) also stressed the importance of hiring the right candidates
through other source as per the business requirements.
A very important study on recruitment sources has been done by Subbarao (2006). He tried to
explain the recruitment sources used by individual job seekers at various levels. Another
study which highlights the importance of different types of approaches used at the time of
recruitment which in turn makes any organization well-established or less established. Sarkar
and Kumar (2007) have tried to identify the reasons for an organization to be either well
established or less-established organization - according to the approach which they adopt
while recruiting their employees. They have importance to a holistic model of recruitment i.e.
emphasizing the importance of the whole process of recruitment and the interdependence of
its parts.
A recent article by Vyas (2011) has shown the critical role of online recruitment system.
Organizations are looking for methods of reducing the time and effort. As per his study, this
rush and explosion gave way to job portals to make recruitment more in-house and more
effective. Job portals came as a transparent medium between the recruiter and the job seeker.
An evolving role of team staffing from a strategic human resource management perspective
were investigated by Munyon et al. (2011). In this study they evaluated methods of team
staffing that ascertained its competitive advantages to a firm. In particular, they studied how
individual and cluster hiring modes influence the competitive advantage of organizations,
linking human resource management practices with strategic outcomes.
Furthermore, to ascertain the labor market effects of employer recruitment choice, a study was
conducted by DeVaro (2008). He chose a sample of clerical workers from the MCSUI, a large
cross section of establishments in four metropolitan areas of the U. S. In this study, author
proposed a model in which employers chose either informal recruitment methods or formal
methods. (DeVaro, 2008). He stated that the effects of exogenous policy or environmental
changes can be decomposed into “pure wage effects” that affect the wage offers employers
post, holding constant their recruitment strategies, and “recruitment wage effects” that involve
changes in recruitment methods. The results showed that changes in recruitment strategies
represent an important channel through which changes in the economic environment affect
the starting wages and vacancy duration for new hires. Breaugh& Mary (2000) introduced an
organizing framework in their study of sources of recruitment, recruiters and job previews.
Through their review research work on the area of recruitment they strongly recommend that
the future studies need to be designed with an appreciation of the complexity of the
recruitment process.
Through the literature review an effort has been made to review the findings of past research
work in the area of recruitment practices from global and distinct perspectives. Furthermore,
we have also conducted a survey in some of the leading IT organizations in India. The main
33. Contemporary Trends in Recruitment – A Global View
33
purpose of this study is to evaluate and understand the significance of the current positioning
of various recruitment sources by doing a SWOT analysis.
METHODOLOGY
The major objectives of the survey are the following:
to study the emergence of sourcing channels for effective hiring,
to study the effectiveness of each recruitment source in companies in the global
business environment and
to investigate sources of recruitment which are appropriate for different levels of
workforce.
The study is based on the primary data collected through the interview and questionnaire
given to the HR personnel in major IT companies in India: Infosys, Wipro, TCS, HCL and
IBM. Data was also collected from secondary sources like websites, e-magazines and e-
Journals, secondary data from the Internet and newspapers. The survey result showed the
reasons for the emergence of new sourcing channels and which sourcing channel is most
commonly used.
A self-developed questionnaire for the HR department was used to find out which sources
were most commonly used specifying the percentage of each, if different source is used for
different levels/grades of candidates, the amount spent on the source used, which source was
most effective, problems faced, etc.
There is a variety of recruitment approaches and most organizations will use a combination of
two or more of these as part of a recruitment process or to deliver their overall recruitment
strategy.
The HR Management is a quickly evolving business function with many modern trends. The
HR Trends are usually focused on improving the overall business performance and to keep
the best talents in the organization. Based on the above discussion, it has been found that the
surveyed organizations mostly use the following sourcing channels for recruitment:
1. Employee Referral,
2. Campus Recruitment,
3. Advertising,
4. Recruitment Agencies/Consultants,
5. Job sites/portals,
6. Company Websites,
7. Social Media (LinkedIn, etc).
III. ANALYSIS AND FINDINGS
The analysis was conducted on to investigate which sourcing channel is most commonly used
in most of the leading organization for hiring the required candidate. The study, conducted in
five companies (Infosys, TCS, Wipro, HCL and IBM), showed that Job Site/Portals, Social
34. Contemporary Trends in Recruitment – A Global View
34
Media like LinkedIn, FB, and Campus recruitment were the leading channels preferred by
organizations for hiring the variant workforces.
These channels constitute 28%, 23% and 22 % respectively of overall hiring for these
organizations. Other preferred channels are employee referral (11%), recruitment
agencies/consultants (7%), advertising (4%), and company websites (5%). This is shown by
Table 1.
Table 1. Overall average percentage of sourcing channels used by Infosys, TCS, Wipro, HCL
and IBM
Sourcing Channels Average
Employee referral 11%
Campus recruitment 22%
Advertising 4%
Recruitment agencies/Consultants 7%
Job sites/portals 28%
Company websites 5%
Social Media (LinkedIn/FB/etc.) 23%
Total 100%
The above values presented by Figure 1 are based on the findings of the survey conducted at
five major global IT Companies. The percentage values indicate the current state of using
various recruitment channels at five major MNCs from the IT sector. It can be clearly be seen
that the recruitment trend has been significantly shifted from the usual recruitment resources
i.e. newspaper, advertisements, company’s official websites and placement consultancies or
recruitment agencies towards campus hiring, online job portals and social media. Employee
referral is now found to be somewhere in between now and then but inclined more to the
35. Contemporary Trends in Recruitment – A Global View
35
lower side. In the survey, the companies also confirmed that there were huge variations in the
distribution of different application channels, with three of the channels being used by a far
greater proportion of candidates than the others. Job sites and portals, social media and
campus recruitment have become major a source of recruitment and account for 28%, 23%
and 22% of recruited candidates respectively. This suggests the growing trend in recruitment
is that candidates rely and depend on these sources, more than any of the other channels such
as employee’s referral, advertisement and company’s website, etc. Newspaper advertisements
as a recruitment source are used considerably less used in the current scenario. The 2014
recruitment channel report released by the Web site top-consultant.com also supports the
findings of this study. As per the said report, newspaper advertisers (direct employers and
recruitment agencies) have continued to switch to other channels. Newspapers have suffered
most in the last 13 years, with candidate penetration having fallen very considerably indeed
from a figure close to 50% to just 10% of candidates making an application via this channel.
Current Trends in Recruitment Industry 2018
Technology is changing the world and recruitment process is no different. Technology is
changing the way a recruiter hires someone and is making the process more efficient than ever
before. How is technology changing the recruitment process and what trends do we see in this
regard? Let’s find out by having a look at recent trends in recruitment practices right here.
There is so much happening in the recruitment itself. Lot of new and innovative practices are
now being used now a days by the industry. Being the most important aspect of business,
recruitment is always on priority list of any of the organisation. There are various new trends
are being noticed which are in practice such as
The HR Trends are driven by the technology improvement, new trends in outsourcing and by
the war for the talents. Based on the above discussion, it has been found that the surveyed
organizations mostly use the following sourcing channels for recruitment:
1) E-recruitment
2) Employee Referral
3) Head Hunting
4) Job Fairs
5) Advertising
6) Outsourcing
7) Networking
36. Contemporary Trends in Recruitment – A Global View
36
8) Re-recruiting
9) Shadow hunting
10) Poaching
11) Campus Recruitment,
12) Job sites/portals,
13) Company Websites,
14) Social Media Recruitment is on a New High
15) Increased use of Contractors
16) Skills in Demand
17) Diversity
A brief of each recruiting method:
1. E-Recruitment:
E-recruitment is a smart use of technology to accelerate the recruitment process. Many big
organizations use Internet as a source of recruitment. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV or resume
through e mail using the Internet. Either job seekers place their CV or resumes over internet,
job portal, apply through company webpage, which can be drawn by prospective employees
depending upon their requirements.
Advantages of recruitment are:
Low cost.
No intermediaries
Reduction in time for recruitment.
Recruitment of right type of people.
Efficiency of recruitment process.
.
2. Employee Referral:
Employee referral is an internal recruitment method employed by organizations to identify
potential candidates from their existing employees' social networks. An employee referral
scheme encourages a company's existing employees to select and recruit the suitable
candidates from their social networks. As a reward, the employer typically pays the referring
employee a referral bonus. Employee referral programs are human resource mechanisms for
37. Contemporary Trends in Recruitment – A Global View
37
stimulating referring by existing employees, who might be awarded with a bonus, especially
if the referred employee does stay employed with the organization for a minimum amount of
time.
Most of the companies offer a reward to the employee who refers family members or friends
for a job vacancy. The reward is paid either on the appointment of the referral or after the
probation period of the referral is over.
Gone are the days when employee referrals were considered a necessity more than a good
source of finding new employees? These days, every company no matter whether it’s a start-
up or a large organization depends heavily on employee referrals to find the right
talent. Employee bonuses on referrals are expected to reach an all-time high because the
demand for the right talent is also reaching new highs. This one among new trends in
recruitment is most predictable.
3. Head Hunting:
Headhunting refers to the approach of finding and attracting the best experienced person with
the required skill set. Headhunting involves convincing the person to join your organization.
It is professional approach to recruit, search, track, and selecting talented people already
working in various companies. Headhunting is also called as executive search.
4. Job Fairs:
38. Contemporary Trends in Recruitment – A Global View
38
Job fairs are open at which employers can exhibit the best their companies have to offer so
that job seekers can make informed choice. At the job fair, employers have a large pool of
candidates on which to draw, while job seekers have the opportunity to shop around for
dozens – sometimes hundreds – of employers, all in one place.
5. Advertising:
Advertising is a form of communication used to encourage or persuade an audience (viewers,
readers or listeners) to continue or take some new action. Most commonly, the desired result
is to drive consumer behaviour with respect to a commercial offering, although political and
ideological advertising is also common. The purpose of advertising may also be to reassure
employees or shareholders that a company is viable or successful. Advertisements of
vacancies in newspapers and journals are commonly used in recruitment, with a wide reach to
prospective talents.
Newspaper Advertisements:
Here it is easy to place job ads without much of a lead time. It has flexibility in terms of
information and can conveniently target a specific geographic location. On the negative side,
newspaper ads tend to attract only those who are actively seeking employment at that point of
time, while some of the best candidates who are well paid and challenged by their current jobs
may not be aware of such openings. As a result, the company may be bombarded with
applications from a large number of candidates who are marginally qualified for the job –
adding to its administrative burden. To maintain secrecy for various reasons (avoiding the
rush, sending signals to competitors, cutting down expenses involved in responding to any
individual who applies, etc.), large companies with a national reputation may also go in for
blind-box ads in newspapers, especially for filling lower level positions. In a blind-box ad
there is no identification of the advertising organization. Job aspirants are asked to respond to
39. Contemporary Trends in Recruitment – A Global View
39
a post office box number or to an employment firm that is acting as an agent between the job
seekers and the organization.
Radio, Television and Internet Advertisements:
Radio and television are used to reach certain types of job applicants such as skilled workers.
Radio and television are used but sparingly, and that too, by government departments only.
Companies in the private sector are hesitant to use the media because of high costs and also
because they fear that such advertising will make the companies look desperate and damage
their conservative image.
However, there is nothing inherently desperate about using radio and television. It depends
upon what is said and how it is delivered. Internet is becoming a popular option for
recruitment today. There are specialized sites like naukri.com.
Also, websites of companies have a separate section wherein; aspirants can submit their
resumes and applications. This provides a wider reach.
6. Outsourcing:
Also known as Recruitment Agencies/Consultants.Outsourcing refers to the process in which
an organization uses the expert services of a third party (generally professional consultants) to
take care of its HR functions while HR management can focus on the strategic dimension of
their function. Employment agencies/recruitment agencies have, historically, represented a
"physical" service for matching the open positions with a pool of applicants, who were
initially interviewed and referred to potential employers (depending on the existence of a
possible match). However, this kind of service can be today replaced by job sites/portals, i.e.
Web-based solutions.
Outsourcing firms build up their human asset pool by utilizing individuals for them and make
accessible work force to different organizations according to their necessities. As result, the
outsourcing firms or the intermediaries charge the organizations their services cost. The
outsourcing firms help the association by the underlying screening of the candidates as
indicated by the necessities of the association organization and making an appropriate pool of
ability for the last choice by the association.
Advantages of outsourcing are:
Outsourcing helps to the client company for recruitment process.
Company need not plan for human resources much in advance.
Outsourcing helps to the initial screening process
It helps to the final selection by the organization
Value creation, operational flexibility and competitive advantage.
Tuning the management’s focus to strategic level processes of HRM.
Company free from the salary negotiations
Outsourcing helps to save the time and resources.
7. Networking:
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This is a very good job finding technique and is usually carried out by most HR professionals.
Relevant and sustained relationships over a period of time can help the HR professionals in
networking with their colleagues to acquire resources from different field.
Video Profiles
A key one among 2018 recruitment trends is that a candidate can now use video content to
enhance his or her professional profiles. Many candidates are adding a brief video of their
professional accolades on professional networking platforms like LinkedIn to ensure that a
recruiter doesn’t have to spend a lot of time in finding and then reading up on what a
candidate can offer.
8. Use of Augmented Reality
The use of augmented reality in the recruitment process would allow companies to
judge how a candidate performs in a real-life scenario. This is way better than
hypothetical interview questions to judge various aspects of a candidate’s personality
like confidence level. For instance, when you are hiring a candidate for the role of
Sales Manager, you can use AR to let a candidate walk through a mock client meeting
to ensure that the person doesn’t get too nervous during client presentations. It is
considered as best hiring practices 2018 in many nations.
9. Screening has Changed
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The process of screening bulk amounts of candidates is becoming easier thanks to
artificial intelligence. This is among the most popular recent trends in recruitment and
selection. Shortly, the job descriptions and CV’s will be matched by using artificial
intelligence to ensure that no unsuitable candidates are screened accidentally. As
artificial intelligence techniques have zero failure rate in most instances, this will
make candidate screening quicker and more efficient.
10.Poaching/Raiding:
Poaching means Developing it. "Purchasing ability" (as opposed to creating it) is the most
recent mantra being trailed by the associations today. Poaching implies utilizing a skillful and
experienced individual officially working with another presumed association in the same or
distinctive industry; the association may be a rival in the business. An outsourcing association
can draw in gifted applicants from another association by offering alluring pay bundles,
advantages, reward and different terms and conditions, superior to the present business of the
organization.It Comes as a challenging task for HR managers to face and tackle poaching by
other organizations, as it weakens the competitive strength of the firm and trustworthiness
Poaching is a method of recruitment in which competing firms attract employees from rival
firms. In simple terms poaching may be described as buying talent rather than developing.
Hefty pay packages, other terms and conditions may attract employees to join new
organizations. Poaching is a big challenge for human resource managers. Poaching weakens
the Organizations competitive strength because of employees’ migration.
Advantages of Poaching / Raiding:
Employing competent and experienced person, who already working in another
reputed company.
New Employer ready to give attractive packages, better than the current employer.
11.Campus Recruitment:
It is a method of recruiting by visiting and participating in college campuses and their
placement centres. Here the recruiters visit reputed educational institutions such as IITs, IIMs,
colleges and universities with a view to pick up job aspirants having requisite technical or
professional skills. Job seekers are provided information about the jobs and the recruiters, in
turn, get a snapshot of job seekers through constant interchange of information with
respective institutions.
A preliminary screening is done within the campus and the short-listed students are then
subjected to the remainder of the selection process. In view of the growing demand for young
managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor & Cable,
Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs regularly
and even sponsor certain popular campus activities with a view to earn goodwill in the job
market.
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Advantages of this method include: the placement centre helps locate applicants and provides
resumes to organizations; applicants can be pre-screened; applicants will not have to be lured
away from a current job and lower salary expectations. On the negative front, campus
recruiting means hiring people with little or no work experience.
The organizations will have to offer some kind of training to the applicants, almost
immediately after hiring. It demands careful advance planning, looking into the placement
weeks of various institutions in different parts of the country. Further, campus recruiting can
be costly for organizations situated in another city (airfare, boarding and lodging expenses of
recruiters, site visit of applicants if allowed, etc.).
If campus recruitment is used, steps should be taken by human resource department to ensure
that recruiters are knowledgeable concerning the jobs that are to be filled and the
organizations and understand and employ effective interviewing skills.
Guidelines for campus recruiting:
Companies using college campuses as recruitment source should consider the following
guidelines:
Identify the potential candidates early: The earlier that candidate with top potential can
be identified, the more likely the organization will be in a position to attract them.
Employ various means to attract candidates: These may include providing research
grants; consulting opportunities to faculty members, funding university infrastructural
requirements, internships to students, etc. in the long run these will enhance the
prestige of the company in the eyes of potential job seekers.
Use effective recruitment material: Attractive brochures, films, computer diskettes,
followed by enthusiastic and effective presentations by company officials,
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correspondence with placement offices in respective campus in a friendly way – will
help in booting the company image in the eyes of the applicants. The company must
provide detailed information about the characteristics of entry – level positions,
especially those that have had a major positive impact on prior applicant’s decisions to
join the company.
Offer training to campus interviews: It’s better to devote more time and resources to
train on campus interviewers to answer specific job –related questions of applicants.
Come out with a competitive offer: Keep the key job attributes that influence the
decisions of applicants such as promotional avenues, challenging assignments, long
term income potential, etc., while talking to candidates.
12.Job Sites / Portals:
This is the new emerging method of recruitment since the advent of internet. Web sites like
naukri.com, monster.com, timesindia.com, jobstreet.com, etc. are some of the job portals. Job
seekers upload/post their resumes on these portals. They then browse through the various
suitable vacancies posted on the job portal and apply for the same, online. Companies also
browse through the various resumes of jobseekers, posted on the job portal, and directly
contact the job seeker through email or telephone.
An employment website is a web portal dealing exclusively with employment or careers.
Many employment websites are intended to allow employers to post job openings for
different positions and are usually known as job portals.
13.Company Websites:
Through a web career portal, a prospective employee can place and fill out a job application,
or submit resumes over the Internet for the advertised job openings.
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14.Social Media Recruitment is on a New High
Social media refers to the Web sites, which enable people to exchange and work together on
digital content in virtual communities (networks). Some of the most popular include the
Facebook, Blogger, Twitter, WordPress, LinkedIn, Pinterest, Google+, Myspace and
Wikipedia. There has also been an increase in mobile social media, which has created new
opportunities for marketing research, sales promotions, and customer relationship
development.
Technology has made us so close to one another via social media platforms that we can
communicate with anyone across the planet by just signing into a social media platform.
Recruiters are making the most of this by devising new recruitment strategies 2018 and
searching for candidates on social media platforms. Apart from giving them an idea of the
professional qualifications of a candidate, it helps a recruiter to understand the personal
interest and family priorities of the candidate a swell which later helps in attaining a great
work-life balance. This is among recruitment best practices because it allows an employee to
feel at home from day one as the organization is prepared to meet his or her needs.
Which recruiting channels should be used depends on the job position, on the company’s
employer brand, on the resources the company has on its recruiting team, on how much
recruiting budget the company has, etc. One can use them all and find out which suits the
best. Every recruiting channel offers different benefits and limitations and works better for
certain situations and companies. The key is collecting real-time recruitment metrics on these
recruiting channels to figure out what works best for the company in different situations. The
recruiting experience of each company is different and the best way to figure out what works
best is to analyse metrics based on the past recruiting efforts, not the efforts of everybody
else. Once the company has its recruiting metrics solution in place, it is time to start using the
recruiting channels that the company thinks will work for it.
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15.Increased Use of Contractors
The days are long gone when one recruitment executive was in-charge of all hiring decisions
and finding the right talent. With the passing of time, the need to hire the right candidates has
grown so much that almost every other company is outsourcing some aspects of
its recruitment process to other contractors to ensure access to a larger pool of candidates.
This is counted among latest trends in recruitment because hiring contractors from the same
state is no longer enough, recruitment is often outsourced to companies present in different
countries as well. Thanks to technology, communicating with these outsourcers is easy and
more cost-effective than ever before.
16.Skills in Demand
The kind of skills in demand is also changing rapidly. Low skilled jobs are rapidly being
replaced with high skilled jobs because automation can handle low skill and repetitive jobs
with ease. This one among recent trends in recruitment is the one that is causing the most
uproar as people are losing their jobs if they fail to upskill themselves.
17.Diversity
Another of the recruiting trends that have been and is expected to be popular in the future as
well is the increasing need of organizations to hire from across the borders. This hiring
strategy might be the result of a simple business objective like business expansion in another
nation or a more complicated reason, lack of required skills in a geographical area.
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3 CREATIVE CANDIDATES_SOURCING STRATEGIES
1. The Deloitte film festival
In 2007, professional-services firm Deloitte made headlines for hosting “The Deloitte Film
Festival”—a company-wide short-film competition, designed to showcase the working
experiences of its employees.
With a need to fill over 10,000 vacancies a year, the three-minute amateur films were
designed to attract Gen Y talent and “re-recruit” the existing workforce, showcasing the
company's diverse and vibrant workplace culture.
In total, 5% of the company's entire workforce participated in filmmaking, while 75%
participated in viewing and voting on the submissions. The campaign garnered mentions in 31
national news outlets, and, even today, many of the videos are used in the company's
recruiting and onboarding processes.
2. McDonald's “snaplications”
As part of a campaign to reach a wider audience of Generation Z candidates, McDonald's
experimented with short video advertisements—dubbed “snaplications”—shared through
social media platform Snapchat.
Each ad featured a real McDonald's employee sharing their experience of working for the
chain. When a would-be candidate interacted with the ad, they were given a custom-made
Snapchat lens—a graphic overlay that showed the candidate with a McDonald's hat and name
badge—and invited to send a 10-second video introduction to the manager of their nearest
restaurant.
Companies as diverse as JPMorgan Chase, AOL, and Taco Bell have used similar strategies,
leveraging the platform's popularity with 18 - 24-year olds to recruit younger applicants.
3. Walmart's interactive recruitment experience
Walmart has acquired a reputation for using cutting-edge technology throughout its business,
developing its own specialized technical innovation lab— Walmart Labs —and even
implementing virtual reality into its employee onboarding process.
The company applied the same principle to sourcing by developing an interactive microsite,
titled Change the Way the World Shops , designed to immerse applicants in the day-to-day
lives of the company's employees. Instead of a traditional job description, prospective
candidates are guided through the skills, responsibilities and development opportunities
available to a Toys, Fashion, or Home specialist, complete with videos and graphics.
Complete the experience and you're directed to the careers website to apply.
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Recently, the company even brought its interactive experience to university campuses across
the US—including dozens of exhibits and VR challenges for soon-to-be graduates to
complete.
The powerof creative sourcing
As each of these companies have shown, it pays to leverage untapped sourcing channels,
turning everything—from your company's workforce to its entire product line—into a
powerful recruiting tool. In doing so, it’s possible to climb above the noise of a
hypercompetitive job market and engage top talent in a way that inspires.
VIDEO INTERVIEWING
Recruiting can be personal with Digital
There are so many options when it comes to video interviewing that talent acquisition pros
can feel overwhelmed when it comes to choosing the best one for their needs. Here’s how to
do it without tearing out your hair:
Choose a platform: Video interviewing cuts the cost of travel and saves time in screening
candidates for a job. Platforms range from being completely free, to a contract attached, to a
pretty penny. You first need to decide what it is you want out of a video recruitment system.
Ask yourself these questions: How many resumes will we receive? 63 percent of companies
with 20 or more people will use video interviewing, a growth of more than 14 percent. Do I
want it for preliminary interviews? Video interviewing doesn’t have to stop at the preliminary
interviews, especially if your company goes through a series of interviews to narrow the
candidate pool.
Will I use the service to screen candidates? Recorded interviews give the candidate the chance
to rerecord in the event of a mistake, and they give the recruiter the opportunity to quickly
screen through candidates who don’t quite make the cut.
Hardware Questions:
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Video interviews require a web camera in order to stream the video over the Internet to the
computers of recruiters. Many computers are equipped with some type of Web camera. On
the same note, smart phones have cameras, and apps use these cameras for video chatting and
interviewing, providing easy access to the interviews while managers are out of the office.
Because most modern computers and smart phones have cameras built in, concern with the
set up isn’t focused on the hardware or firmware you use. Instead, it primarily circles around
surroundings and storage. It is critical on both the recruiter’s or interviewer’s side, as well as
on the candidate’s side, to ensure the scenery behind the person on camera is professional.
Several companies specifically specialize in the video-interviewing process. These software
programs are not free, but they provide the reliability and stability the free counterparts
simply cannot.
Service Questions:
While services for video interviewing often centre around making sure the candidates feel
comfortable, truthfully, there are best practices surrounding video interviewing that the
average recruiter may not be aware of. Worrying about storage, missed questions, technical
snafus, and more is difficult if you are also the person conducting the interview. Most video-
interviewing companies will offer a dedicated service line, as well as backup options and
FAQs, to help you and your candidates navigate the process with ease.
Collaboration and Storage: One of the reasons that video interviewing has so many devotees
is that it makes it very easy to collaborate on interviews without everyone having to be in the
same room. Look for something with a note feature or at least email integration. Storage
becomes even more effective when paired with ATS integration for more robust capabilities.
Practically, storing your interviews helps with tracking and compliance issues that may come
up around your interviews in the future. Most companies will provide free storage for clients.
Video interviewing is cost effective, assists with time to hire, and is widely adaptable across
industries. Look into all the options with the above list in mind.
Video Interviewing Trends
Videorecruitment is one of the impactful trends in international recruitment. Video interviews
might be more personal than email correspondence or phone conversations, but they are not
perfect parallels of the traditional, in person meeting. In fact, a team of Canadian researchers
found that applicants interviewed via video are less likely to be hired than applicants
interviewed in person, probably because of the ways in which video interviews affect body
language, tone of voice, and other important qualities. However, there is very good reason to
believe that video interviews will stay prominent in 2015. PGI reports that the use of video
interviewing has risen by 49 percent since 2011, and WANTED Analytics found a massive
spike in the number of job postings that mention video interviews in September 2013. And it
looks like the support for video interviewing is coming from all sides: PGI notes that 66
percent of candidates prefer to use video interviewing, and an Office Team survey found that
63 percent of HR managers conduct video interviews
Recruiters and HR professionals will continue to use video interviewing because, problems
aside, and the technology does offer serious benefits. Most people have easy access to
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webcams built right into their computers and smart phones, and video calls offer flexible
scheduling with little-to-no travel costs.
Video Software
A number of companies have responded to the steady surge in video interviewing by offering
digital talent management services that integrate video directly into HR operations. In
October of 2013, HireVue announced that it received $25 million in funding, which the
company plans to use to expand from a digital recruiting platform into more comprehensive
HR software. HireVue already offers a variety of video interview options, and this proposed
expansion could result in an HR system that leverages video for other tasks as well, like
employee reviews.
Also, in October, Jobvite announced Jobvite Video, which it calls "the only video screening
solution built directly into a recruiting platform and job seeker portal.” All eyes should be on
Jobvite, then: depending on how video works out in the company’s platform, this could be the
start of a new trend. Perhaps video is no longer a novelty, but a necessary strategy for
sourcing, hiring, and retaining talent.
Video Recruiting
While video interviews are reaching maturity and becoming the industry standard, there’s a
much younger and related trend we should be tracking as well: video recruiting. Recruitment
videos can seriously enhance a company’s brand. They’re quicker and punchier than text,
which means candidates will have an easier time watching them and digesting the content.
Videos also allow companies to let their authentic corporate culture really shine through. With
video, companies can share employee testimonials or footage of day-to-day operations and
special events, all of which combine to give candidates the clearest window into the
company’s world. Plus, video is incredibly cheap and easy to produce these days: almost
everyone is carrying a device with a high-quality camera built in. Recruiters can film and
upload videos to the Web in less than a minute.
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MOBILE RECRUITMENT
Mobile recruitment is one of the impactful trends in international recruitment. Mobile and
recruitment have special synergies and cutting-edge efforts in mobile internet have already
been seen within recruitment.
Teletext research carried out at the start of 2010 suggested that 17% of people searching for a
job online were using mobile internet and 4% were doing this via apps. Although fairly
recent, the numbers have already substantially increased since then. However, even these
figures represent a decent market share for mobile in recruitment already.
Other statistics suggest that, in February 2010, 290,000 individuals accessed job-related
websites via mobile in the UK. Such statistics speak for themselves. A monthly audience of
almost 300,000 in the UK, even at this relatively early stage in mobile internet, is significant
and represents genuine opportunity. With 50 million mobile users in the UK there is a huge
audience waiting to be engaged.
Mobile has a unique position to play in recruitment. One reason for this is privacy. A mobile
handset is a very personal device; it tends to be close to hand throughout most of the day and
often contains much of your personal data. It has the advantage of accessibility when a fixed
line is unavailable, such as during a commute to work. Mobile also operates outside of
corporate firewalls and access restrictions, which is a key benefit when thinking about its role
in job hunting.
The importance of privacy cannot be understated in job search. The ability for a person to
browse job boards from almost anywhere, in private and without danger of unwanted
snooping is a significant driver of mobile internet use in recruitment.
Job applicants like the convenience of mobile as it enables them to browse at times that best
suit them. There is also evidence suggesting that the majority of candidates are happy to
receive push-notifications about job opportunities via their mobile. This information will be
of great interest to recruiters worried that candidates might be inclined to resist such active
measures to market vacancies.
Jobsite.co.uk, one of the UK’s leading job boards, has seen real gains in the use of mobile to
access its offerings with a 390% increase in mobile traffic between January 2009 and April
2010 - all achieved without marketing effort in that specific area. Jobsite has now started a big
push into mobile, including the recent launch of a mobile version of its main website. Their
new mobile site is experiencing considerable traffic and early signs are encouraging.