Talent Management: Recruitment Methodologies - an Overview

Table of Contents

Executive Summary

List of Abbreviations

List of Tables and Figures

1 Introduction

2 Main Part
2.1 Recruiting goals and influencing factors
2.2 Classification of recruiting methods
2.3 Analysis of individual recruiting methods
2.3.1 Traditional recruiting versus e-Recruiting
2.3.2 Printed versus digital advertisement
2.3.3 Employment agencies
2.3.4 Employee referrals
2.3.5 Schools, colleges, and universities
2.3.6 Unsolicited applications
2.3.7 Recruitment alternatives

3 Conclusion

4 ITM Checklist

List of Abbreviations

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List of Tables and Figures

Table 1 – Classification of recruiting methods

Table 2 – Internal and external recruiting of executives in European companies

Table 3 – Methods for recruiting of top-level executives in European companies

Table 4 – Comparison of traditional recruiting and e-Recruiting

Table 5 – Differences between printed and digital advertisements

Figure 1 – Operating distance and target orientation of external recruiting methods

Figure 2 – Tools for e-Recruiting process

Figure 3 – Instruments of digital recruiting

Executive Summary

Employees take a centre stage in companies and play the essential role for business success. Hence, companies have the highest interest to recruit and keep high qualified manpower. In this study, an overview about recruitment methodologies is provided. Additionally, benefits and drawbacks of recruiting methods are analyzed and compared.

Recruitment is the discovering and obtaining of potential applicants for actual or anticipated organizational vacancies. Except the recruiting methods applied, many factors could influence the recruiting efforts: image of the organization, attractiveness and nature of the job, internal policies, government requirements, and recruiting budget.

There are a high number of recruiting methods which can be classified in different ways: active and passive, internal and external, print and digital methods. The principle sources of recruiting employees include internal search, advertisements (in print or digital media), employee referrals, employment agencies, educational institutions and unsolicited applicants. Recruitment alternatives such as temporary staffing services, employee leasing, and independent contractors can be used meaningfully to acquire the temporary manpower.

Because of benefits and drawbacks of different recruiting methods, the task of HR management is to select and apply the right method for an efficient and effective recruiting. The recruiting process provides a basis for the selection of the right candidate and should be well accomplished.

1 Introduction

Employees take a centre stage in companies and play the essential role for business success. Hence, companies have the highest interest to recruit and keep high qualified manpower. Lacking coverage of employees can lead to an inhibition of business growth. For example, in 2000, in the time of internet expanding and digital world booming, there was a big demand for IT experts. Worldwide, companies had full order books and looked desperately for computer scientist as well as software and hardware engineer. Everybody, who can write a program or can work with computer network, was employed. Career changer had also a big chance to get well paid jobs in IT companies. The impact of lacking coverage of IT experts on business was so considerable, that German government even changed the law for foreign labors. Special employment permit, so called the “green card”, was introduced in order to facilitate German companies to recruit IT experts from abroad, e.g. from India and Eastern Europe.

In contrast, in time of weak economic cycle and restructuring trend, companies lay off so many people and freeze hiring totally. It causes a bad age distribution in companies and puts career and development planning into question. Otherwise, fresh wind from outside, in form of innovations, impulses, and experiences, can not come into the company.^[1]

We have now a demographic change in Europe and in Germany; this means that the population gets older continually and inexorably. Recently, Franco Frattini, EU interior and justice commissar, stated that in 2050 one third of EU citizens will be older than 65 and EU needs a high number of foreign labors to fill the manpower gap in the next decades. EU plants to issue the “blue card” supporting companies to get high qualified manpower from abroad.^[2] Germany has some record years of export and needs at the moment experts for IT industry, electrical and mechanical engineering as well as qualified personnel in service and care sectors. In 2006, approximately 1.4 million jobs, amongst others 39 000 engineers, could not be filled in spite of high unemployment.^[3]

Because of the above mentioned high demand for qualified manpower, talent management is a very important task for human resource management. The questions are, how companies can find and recruit the right people in an efficient and effective way, which methods are suitable and how many efforts for recruiting process should be taken into account. In this study, an overview about recruitment methodologies is provided. Additionally, advantages and disadvantages of recruiting methods are analyzed and compared.

2 Main Part

2.1 Recruiting goals and influencing factors

Recruiting is the process of discovering potential candidates for actual or anticipated human resource needs of the organization. This is also a linking activity to bring candidates and employer together. The first goal of recruiting is to notify the “public” about the job openings. The more job seekers know about the position and apply, the better the chance for finding the best candidate with suited skills, knowledge, and abilities to the job requirements. The second goal is to provide enough information and specific details about the job, so that the position is particularly attractive for qualified candidates and unqualified ones could be left out. When the unqualified applicants select themselves out of job candidacy, the organization will save time and money for the recruiting process.^[4]

Beside the recruiting methods applied, several factors could affect the recruiting efforts: image of the organization, attractiveness of the job, internal organizational policies, government influence, and recruiting costs. If the company has a low image or if the position is viewed as boring, hazardous, low-paying or lacking in promotion potential, it will be difficult to attract the best personnel available. For example, Microsoft Corporation has a positive image and the company is a top address in the IT industry. Consequently, Microsoft receives more than 12,000 applications a month. Furthermore, internal organizational policies could have a negative influence on the recruiting effort. For example, if an organization has a policy that individuals inside the organization are primarily promoted and newcomers do not have the chance to get higher positions in the organization, except the lowest-level entry position. It could lead to a reduction of the number of applications. Also government impact and legislation should be taken into account when analyzing the recruiting efforts. Companies are not allowed to prefer candidates based on non-job-related factors such as physical appearance, sex or religious background. It makes the recruiting more difficult by some occupation groups, e.g. when airlines want to staff only attractive female instead of male flight attendants or when handicapped applicants are discriminated. Finally, costs for recruiting should be considered. The budget restrictions limit the time for searching and affect the manner of recruiting process. Today, companies often use phone and video conference for the first interview to reduce the travelling cost.^[5]

2.2 Classification of recruiting methods

There are a high number of recruiting methods which can be classified in different ways: active and passive, internal and external, print and digital methods. From different aspects, the same method could be belonging to various classification groups. Table 1 gives an overview about the different recruiting methods and their classification.^[6]

Active and passive:

By applying the active recruiting methods, e.g. via recruiting events like job fairs, presentations, open door event, and recruiting day, organizations give candidates the possibility to get personally more specific information about company and job openings. Both employer and employees get the first direct contact as well as impression about each other. Interview and first selection could be carried out efficiently. Special HR marketing programs support enhances the company image (employer branding) and drawing the attention of qualified candidates. Furthermore, organisations often use other active recruiting methods like headhunting to find the right candidates in a short time. Companies can also acquire a high number of qualified employees through acquisitions and joint ventures activities. However, an adaptation of corporate cultures in the new structure should not be overlooked. Otherwise, companies can not motivate and keep the people.

The passive recruiting methods are easy to implement via advertisements in print or digital media. Although job openings could be communicated very quick today to the “public” using internet, passive methods are sometimes not efficient and the quality of results could be poor. Companies do not know what happens and wait passively for candidates. They often have problem with a high number of applications, both from qualified and not qualified candidates. Furthermore, companies get today a lot of initiative applications (ad hoc or “blind” applications). It costs time and money for the processing of these applications.

Internal and external:

For interior personal acquisition, the internal job posting is often applied. Job openings are announced in different ways, e.g. via bulletin board, corporate newspaper, intranet, in-house job market or circular letter. The in-house job market on intranet or internet is a modern solution which is preferred particularly in big companies. Network of job markets is also used for job posting in the whole corporation, included sub and holding companies. Employees from different locations can easily search for new jobs within the corporation. In addition, promotion and transfer are parts of personnel development, which are often connected with relocation of individuals.^[7]

Applying the internal personal acquisition could lead to the problem that the job opening is often filled in one place, but it leads to a vacancy in another place. Other disadvantages of internal recruiting could be: The new job holder is not best suited for the open leading position, or the former colleges do not accept her/him as a new boss. On the other hand, excellent candidates are available on the outside and they could bring new ideas, knowledge, and enthusiasm into the company. They can also change the “we’ve-always-done-it-that-way” mentality existing in the company. Compared to external search, the internal recruiting shows following advantages:^[8]

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Table 1 – Classification of recruiting methods

- It provides good public relations and builds morale, because own employees receive promotion and perspective (Caution: Internal search may also generate infighting among the rival candidates and decreasing morale of those who are not selected).
- It encourages and supports individuals, who have high ambition and excellent performance.
- It improves the probability of a good selection, since information on the individual’s performance is readily available. The candidate is well known and the risk of a wrong selection is minimized.
- It is less costly and faster than going outside to recruit.
- Those chosen internally already know the organization. Remuneration expectation of the candidate is oriented on an existing salary structure.
- When carefully planed, promoting from within can also act as a training device for developing middle- and top-level managers.

[...]

^[1] Franke et. al (2003), p. 31-35.

^[2] Becker, M. (2007). „Blue Card“ soll Fachkräfte nach Europa locken. Available from: http://www.tagesschau.de/ausland/meldung494018.html (accessed 20.12.2007).

^[3] Fasel, J. and Scholtys, B. (2007). Wo sind nur all die Fachkräfte. Available from: http://www.tagesschau.de/wirtschaft/meldung17668.html (accessed 20.12.2007).

^[4] Decenzo et. al (1999), p. 156.

^[5] Decenzo et. al (1999), p. 157-158.

^[6] Franke et. al (2003), p. 36.

^[7] Franke et. al (2003), p. 34-36.

^[8] Decenzo et. al (1999), p. 160.