Factors Affecting Recruitment

These factors are divided into two main categories:

1. External Factors 

2. Internal Factors 

1. External Factors

A) Supply and Demand: If the demand for a particular skill is high relative to the supply, an extraordinary recruiting efforts may be needed. The situation of demand and supply of specific skills affects recruitment.

B) Unemployment Rate: If unemployment rate is high, recruitment process becomes simpler because large number of people can be attracted with minimum effort.

C) Labor Market: Availability of manpower in a local area, specially for non-managerial, supervisory and middle- management positions and in the country level for executive and professional positions has effect on recruitment.

D) Political-Legal: Reservations of jobs for scheduled castes, scheduled tribes, minorities and other ethnic and backward classes, child labor act have effect on recruitment.

E) Sons of Soil: Preferences to local or people of their respective state in matters of employment.

F) Image: It is the perception of the job-seekers about the company that matters in attracting qualified prospective employees.

2. Internal Factors:

A) Recruitment Policy: Recruiting internally or externally, recruitment of local citizens, policy of temporary and part time workers.

B) Human Resource Planning: A company cannot attract prospective employees in sufficient numbers and with required skills overnight. It takes time. Effective HRP greatly facilitates the recruiting efforts.

C) Size of the Firm: Bigger the size less problematic.

D) Cost: Cost incurred in recruitment process, must operate within budgets, multiple job openings simultaneously may minimize cost.

E) Growth & Expansion: An organization going on growth and expansion will have more recruiting on hand than the one which finds its fortune declining.