In today’s competitive globalized word, recruitment Methods has become one of the important roles of the human resources professionals since the effectiveness of its recruitment functions determine the level of performance of an organization.
Over the years, the Holy Grail of hiring hinges upon the accurate prediction of how well selected applicants will perform on the job before actually hiring takes place. Since the first decision of the company-the decision to hire- is the most important, it is the managers’ responsibility to select the right candidate each and every time. But it is still difficult for HR managers to predict actual performance. A recent study conducted by the Recruiting Roundtable shows that about 50 percent of companies’ hiring decisions turned out to be mistaken. These inherent conditions make a good hire on par with a flip of a coin (Workforce Management, 2008).
Additionally, the present competitive environment presents huge challenges for HR managers for hiring and retaining talented candidates since there are dozens of methods for hiring and testing new employees. Moreover, they are also under the pressures of cutting cost and searching of most efficient methods which would enable the company to have a large pool of required candidates with minimum budget.
I as a research assistant to the HR department present the following report on the means of hiring and testing new employees. This report critically reviews the prevalent practices of recruitment at the multinational as well as national companies and recommends the optimum solutions to the HR depart for attracting and recruiting talented candidates.
Companies can choose from numerous ways of hiring for meeting their short-term as well as long-term recruitment needs. However, they must keep in mind that short-term recruitment method are more expensive than long-term methods since the latter provide enough time to focus on minimum expenses. Following are some of the most important hiring methods which have advantages as well as disadvantages for companies (Workforce Management, 2008).
In the era of information technology, companies can leverage internet resources as the most effective tools to attract the new wave of young graduates. This method has following pros and cons (Othman, & Musa, 2006).
? Efficient: it is one of the cheapest methods of recruiting since it allows organization to get a larger number of potential candidates.
? Faster: this method is faster than other methods of recruiting such as news paper advertisement. Moreover, automatic screening process makes the whole process more efficient. (over 65 percent of the hiring time).
? Right People: job portals and e-recruitment also enable organizations to fill the vacant place by getting right type of candidates with required skills.
? Access: companies now collect resumes 24 hours 7 days a week with job portals.
? Valuable Data: due to Job-portals and E-recruiting, HR managers get valuable data from competitors’ sites to make decisions like promotions, salary trends in the particular industry (Othman, & Musa, 2006).
? Cumbersome Exercise: Organizations have to face a lot of trouble in screening and checking the skill mapping and authenticity of thousands of resumes.
? Internet Penetration: since many parts of the world don’t have sufficient internet access, companies may miss the right potential candidate.
? Physical Contact: many employees as well as companies prefer face-to-face interaction, which is ignored in E-recruitment (Othman, & Musa, 2006).
Many services as well as manufacturing organizations conduct trainee programs for attracting and hiring fresh graduates and technicians. These training programs enable companies to fulfill their long-term workforce requirements. This method of hiring offers following advantages and disadvantages (Wolfe, 2004):
• Long-Term Workforce: This method of recruitment enables companies to hire and train fresh graduates on permanent basis to fulfill their long-term recruitment requirements.
• Loyalty: trainee programs offer the employer the edge of building loyal workforce which is expected to remain with the company for a longer period of time.
• Huge Cost: Companies have to incur huge costs for conducting technical as well as management trainee programs. Thus true benefits of trainee programs may not be reaped.
• Immediate Needs: through trainee programs, employers may not be able to fulfill their immediate workforce requirements. Hence they may seek the help of employment agencies for temporary workers.
One of the short term methods of hiring is use of employment agencies. Companies hire the services of employment agencies for meeting the demanding workload while keeping costs down. This method has following advantages and drawbacks (Huffman, n.d):
• Cost Efficient: companies get trained employees from these agencies hence no or very minimum training cost is involved. Also company does not have to provide full benefits to the new employee.
• Flexibility: Organizations can quickly adjust to workflow fluctuations by temporary hiring through an employment agency.
• Legal Issues: companies can terminate temporary workers without complying any legal formalities. Moreover, there is no requirement for insuring temporary employees as it is the agency’s responsibility (Huffman, n.d).
• Lack of commitment: companies often faces lack of commitment from candidates hired through employment agency since there is involvement of intermediary. Sometimes, temporary employees are left out of the team which leads to reduction in their morale and overall commitment towards the organization. However, companies may attain a certain level of loyalty by hiring permanent employees (Huffman, n.d).
• Training Cost: companies still have to train temporary employees hired through an agency since specific positions as well projects require some type of specific training.
Despite the proliferation of rich and digital media, companies still rely on job fairs for attracting and hiring the right candidates. Companies as well as independent online employment agencies hold open fora to offer jobs options to the job seekers so that they can make informed choices at the spot. At job fairs, companies not only collect resumes but also conduct interviews and tests on the spot, which reduces the time span of whole recruitment process. This method has following advantages and disadvantages (Infobarrel, 2011):
• Physical Interaction: job fairs present the applicants opportunity to personally meet to perspective employers, which is often not possible in the current age of information.
• Large Pool of candidates: job fairs bring together employer and potential candidates with matching needs and skills.
• Efficient Recruitment: companies can reap the benefits of speedy process of recruitment at the job fairs since on-the-spot interviews are also offered at job fairs. Thus they can save huge cost by screening many candidates on the same day as opposed to holding screening process in-house and conducting a series of interviews and follow-ups over an extended period (Infobarrel, 2011).
• Limited Time Frame: Due to limited time availability, a potential candidate might not be able to visit every prospective employer whose job openings interest him.
• Time Pressures: companies may make wrong hiring decisions through quick judgments about applicants based on short interaction and interviews with minimal time for preparation.
• Loss of Potential Candidates: job fairs may not enable an academically strong but interpersonally weak applicant to stand out before the perspective employers as well as they often prefer applying through a more traditional process (Infobarrel, 2011).
In this recruiting method, companies visit some top technical, professional and graduate business schools and institutes to hire fresh graduates. Nowadays, it has become of the best corporate recruiting strategies since it requires the minimum cost. This method also comes with some benefits as well as drawbacks (MysticMadndess, n.d).
? Time and Effort Saving: Companies can fulfill their long-term recruitment needs through conducting campus recruitment which gives them the opportunity to evaluate student’s current strength and potential value to the organization. This method is time efficient since companies can carry screening as well as the final selection at the spot.
? Cost Savings: campus recruiting offers companies advantages of saving huge costs which often spent over an advertisement, screening process and eventual selection of applicants. Hence, companies hire the best available potential candidates with less time and expenses (MysticMadndess, n.d).
? Brand Image and Strengthening Bonds: This method of recruitment not only helps companies fulfill their workforce requirements but also enables them to establish their brand image and powerful professional ties with the administrators, faculty, career-oriented staff and students.
? Limited Pool of Candidates: Since organization hold campus recruiting in particular professional institute or university, they have to select from a limited number of potential candidates for their vacant jobs.
? Selection of Right Candidate: due to globalization and cut-throat competition, companies have to offer high salary packages and additional perks at university campuses to grab the right candidate. Thus the selection of right candidate may result in losses for the company in the long-run due to these heavy perks (MysticMadndess, n.d).
Means of Testing:
Employers conduct job tests for screening of applicants by skills, abilities, and aptitudes. These tests can be classified as either aptitude or personality tests. It has been confirmed in numerous research studies that testing does a much better job at evaluating the potential candidates than do the regular interviews. These tests can be classified as aptitude and personality tests (Explore HR, n.d).
Employers conduct aptitude and ability test to assess logical reasoning, verbal ability and thinking the performance of potential candidates. These tests have following pros and cons:
• Objective Comparison: employers can tests potential candidates objectively by designing and conducting standardized tests since GPAs or class ranks cannot be effectively compared as 4.0 GPA from one school is not necessarily equivalent to 4.0 from another school (Richards, 2011).
• Efficient: Standardized aptitude tests are more efficient method for assessing new applicant than structured job interviews or other locally designed tests since they can be taken on a computer and scored instantly.
• Don’t Measure All Areas: companies may lose talented employee since these standardized test may ignore the required skills such as social ability, artistic capability, spatial awareness etc.
• Lack Fairness: employers sometimes may lose talented potential candidate as aptitude tests do not fairly assess their intellectual abilities. Moreover, some candidates may not perform well on written tests due to fear and stress (Richards, 2011).
Employers conduct personality tests to assess and determine cognitive skills, intelligence quotients, and personality traits of the applicants. These tests are also part of the screening process. The results enable the employers to measure a prospective candidate’s honesty and probability for any negative or illegal behavior. These tests carry semi-structured as structured questions which are dependent upon the nature of job and required skill to address how an employee might perform in specific situations such as conflict, pressure, challenge or ethical decisions. Following are advantages and disadvantages of the personality tests (Baer, n.d):
• Objectivity: standardized personality tests enable the employer to objectively measure an employee’s personality traits, intelligent quotient and other cognitive skills.
• Reduced Discrimination: companies, with the help of nationally recognized and valid personality test, can reduce or eliminate biases and discrimination which often lead to lawsuits.
• Employee Benefits: these personality tests are also being used by the employers to determine the costs of severance packages and employee benefit plans. They also help companies to avoid potential conflict in the workplace.
• The validity of test: employers have to face the issues of validity and reliability of the personality tests administered to the potential candidates. There may be doubt about whether these tests have been designed from statistical or psychological research and empirical data.
• Privacy: personality tests also raise the concerns of privacy since it may be biased towards gender, age, religious beliefs or ethnicity (Baer, n.d)
After going through the best hiring practices by the top companies in the world, it is evident that there is a new war for attracting and hiring talent across the globe. Moreover, whether it is a manager or clerk, there is a huge gap between the results that an average employee delivers and what a star delivers. Hence, to stay ahead of the completion by design sleek product and delivery efficient solutions, the company should follow the following non-traditional talent-hunt practices (Taylor, 2006):
It is recommended that company should have long-term as well short-term recruitment plan in-hand meets short-term and long-term workforce requirements. Moreover, it should develop a portfolio of hiring practices rather than relying on a single hiring strategy. Additionally, all of its hiring strategies must reflect the “we find you” motto (Taylor, 2006).
Short-term Workforce Requirements: The Company should permanent contracts with employment agencies for ensuring timely hiring of temporary workers. As an alternative, it should also have employee referrals and walk-in interviews programs open all the time.
The Company should use non-traditional as well as tradition hiring practices for meeting the long-term workforce requirements. It should use campus recruiting as well as Job portals for attracting and recruiting talented workforce. Also, one of the non-tradition practice-Social Networking sites such as LinkedIn and Facebook should also be leveraged for talent hunt (Clifford, 2008).
Instead of relying solely on aptitude and personality tests, the company should adopt some creative testing practices improve the hiring quality and attracting talented employees. It should try to reach to out-of-the-way candidates and train them for developing into a valuable human resource upon whom the core competencies can be built. It should also ensure that the standardized tests have been designed keeping in view the company’s culture, management and leadership philosophy and company’s vision and mission.
Baer, B. (n.d). Pros & Cons of Personality Testing for Employment. eHow.com. Retrieved
December 07, 2011,fromhttp://www.ehow.com/list_6887288_pros-cons-personality-testing-employment.html
Clifford, S. (2008). The new employee hiring techniques. Retrieved December 07, 2011,from
Explore HR. (n.d). Types of Selection Methods. Retrieved December 05, 2011,