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Recruitment Process
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Eroshan Rathnayaka

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Executive Summary

When it comes to recruitment HR managers from around the globe utilize two important
sources in order to fulfill their requirements. These two sources are external recruitment sources
and internal recruitment sources. American Best Brands is the agent of a variety of American
brands in Sri Lanka. It employees over one hundred employees and as such requires effective
recruitment practices and policies in order to continue its business without hindrance in to the
future.

But before they can go in to the recruitment process itself, there are several factors that
need to be considered and addressed. These are the factors that affect recruitment of a
company. While the external factors such as demand and supply of skills, labor market
conditions, legal and political environment etc. are issues that cannot be addressed by the firm,
HR managers need to be aware of these when recruiting. But the internal factors that govern
recruiting such as recruitment policies, HR planning etc can be adjusted to be more conducive
to the external factors and thus help the recruitment process as well as the ultimate goals of the
firm.

After addressing such issues as policies and planning and analyzing the environment,
the HR managers can begin the process of recruitment. They can consider the different
aspects of both internal recruiting as well as external recruiting, and with proper deliberation can
effectively choose the best avenue forward in the recruitment process. Taking into account
factors such as quality of hire, Time to fill, culture fit, cost etc wil make this deciosion easier for
the HR managers.

Eroshan Rathnayaka
Contents
1.0 Introduction.........................................................................................................................................1
2.0 Factors, Policies and Procedures affecting Recruitment..............................................................1
2.1 Factors that Govern Recruitment.................................................................................................1
2.1.1 External Factors......................................................................................................................1
2.1.2 Internal Factors.......................................................................................................................2
2.2 Recruitment Policies......................................................................................................................2
3.0 Internal recruitment............................................................................................................................2
3.1 Internal Recruitment at ABB.........................................................................................................3
3.1.1 Present Employees.................................................................................................................4
3.1.2 Employee Recommendations...............................................................................................4
3.1.3 Other Internal Sources...........................................................................................................4
4.0 External Recruitment.........................................................................................................................5
4.1 External Recruitment at ABB........................................................................................................5
4.1.1 Advertisement..........................................................................................................................5
4.1.2 Recruitment Process Outsourcing........................................................................................6
5.0 Conclusions.........................................................................................................................................6

Eroshan Rathnayaka
1.0 Introduction
The online business dictionary businessdictionary.com (n.d.) defines recruitment as
“The process of identifying and hiring the best-qualified candidate (from within or outside of
an organization) for a job vacancy, in a most timely and cost effective manner”. Undertaking of
this process is one the main objectives of a HR manager. The success of any company
depends on the quality of its staff. Ultimately, the recruiting of employees with the right skills at
the right costs will be a deciding factor in the longevity of the firm. Therefore employees should
be selected, managed and retained with vigilance.

American Best Brands (Pvt) Ltd (from here onwards referred as ABB) is a company that
deals in the capacity of authorized agents of over a hundred American premium brands such as
Belkin, Dymo, GE, Southworth, Ditek Rolodex, Shelby etc in Sri Lanka. While ABB is still a
small scale business it employees over 100 employees in various capacities, that range from
accounting, HR management, purchasing, sales and marketing etc. As such HR managers at
ABB require to: declare proper recruitment policies for the firm, as well as identify and execute
accurate and sustainable recruitment procedures.

2.0 Factors, Policies and Procedures affecting Recruitment

2.1 Factors that Govern Recruitment

As evident from the above definition when recruiting employees, there are several
factors that HR managers need to consider as well as several sources of recruitment to be
regarded. Factors that govern the recruitment are vast, and can be separated in to two main
categories: external factors and internal factors. Stephen Bach identifies the following factors as
important (Managing human resources: personnel management in transition, 2005)

2.1.1 External Factors

External factors will determine the availability of candidates to the firm for recruitment.

 Demand and supply of skills

 Labor market conditions
 Political and legal environment
 Image of the company
 Competitors

1
2.1.2 Internal Factors
Internal factors determine how and why the firm will seek to recruit candidates.

 Recruitment policy of the firm

 Human resource planning
 Size of the organization
 Growth and expansion plans of the firm

2.2 Recruitment Policies

In the modern rapidly changing business environment it is necessary for a firm to have
well defined recruitment policy in place, in order to respond quickly to the human resource
needs as and when they arise. A well defined recruitment policy will be,

 Fair and consistent

 Non discriminatory
 Abide by the statutory regulations as well as industry norms.

Furthermore it should specify the recruitment objectives of the firm and provide a framework
for implementation of the recruitment program. This will require for the firm to develop the
organizational systems in order to smoothen the process.

3.0 Internal recruitment

Internal recruitment refers to the system where the firms recruitment needs are satisfied
through obtaining employees to fill vacancy from within the company itself. The Department for
Business and Innovations of UK (n.d.) defines internal recruitment as “Internal recruitment
means that a job vacancy is filled from within the business; an existing employee rather than
employing externally. You may decide that you already have the right people with the right skills
to do the job.”

There are several advantages of choosing this method as the source of recruitment for a
firm. International Labour Organization in its guide to recruitment procedure (n.d.) mentions the
following advantages to internal recruitment.

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  As this method uses in-house resources costs of recruiting can reduce (reduction in
training and orientation costs etc.), as well as be much faster than filling the job from an
outside candidate.
 This method retains valuable employees and ensures a higher return on any investment
in training and development.
 Motivates employees as opportunities are provided for them to further develop their
careers through promotions.
 The induction period to the new job will be much shorter as the employee is already
acclimatized to the firms’ environment.

But there are also several drawbacks to using this source to satisfy a firms recruitment
needs.

 Compared to external sourcing this method provides only a small pool of candidates
to select from.
 External candidates maybe better qualified to fill the vacancy.
 Creates another vacancy that needs to be filled.
 New people bring fresh ideas to the firm, internal recruiting cuts off a source of fresh
ideas in to the organization and may promote stagnation in the organization culture.
The firm may become resistant to change as a result.
 Can create morale problems among employees not promoted.

3.1 Internal Recruitment at ABB

HR managers at ABB exercise a policy of prioritizing internal sources in its recruitment
efforts. Most of the vacancies created at ABB are filled from within the organization itself. This is
due to the fact that the HR managers at ABB feel that this motivates employees though the lure
of probable rise up the organizational hierarchy, as well by the sense of ownership it creates
among employees. To this end the HR managers use several sources of internal sourcing in
their recruitment activities.

Eroshan Rathnayaka
3.1.1 Present Employees
This is the main source of candidates that are considered by the HR managers of ABB
upon recruitment. In order to successfully accomplish this succession planning is one of the key
areas that the HR mangers of ABB are concerned with. Instead of looking for candidates when
vacancies are created the HR policy at ABB has been to predict eventual job vacancies and
groom selected current employees with the objective having them fill those vacancies when the
time arises. Some functions at ABB require unique experience and skill for smooth operations of
the organization. For example as an import business ABB depends heavily on its shipping and
handling department on its daily operations. The employees of this department though their
years of experience in this field have gained vast experience and cultivated personal
relationships (with customs department, Shipping companies etc) that help them to do their
duties in a smooth manner. Because of this the HR managers at ABB give opportunities to
selected other employees to gain these experiences and relationships now itself so that upon
the arise of a vacancy in this department it can be fulfilled fast and by a competent candidate
without any disruption to the daily businesses of the organization.

3.1.2 Employee Recommendations

Another mode of internal recruitment sourcing used at ABB is employee
recommendations. As employees are aware of the working conditions, and requirements inside
the company they are uniquely suited to recommend personnel when vacancies arise. At ABB
while mostly clerical and secretarial positions are filled in this manner, it has also been
sometimes used to fill executive level and managerial level positions.

3.1.3 Other Internal Sources.

While present employees and recommendations from present employees are the
methods of internal recruitment generally practiced at ABB, there are a few other internal
options that a firm can consider.

 Retained Employees: Employees about to retire can be retained in order to fill

vacancies. This method is mostly practiced by firms operating in aging societies, due to
lack of recruitment options. Firms may sometimes feel obliged to extend employment of
some loyal workers. A rare handful of such employees can be found at ABB (all lower

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 level employees) who have been with the firm since its inception, and due to their
willingness to keep working have been given opportunity to work past their retirement
age.
 Transfer: As ABB is a small firm with only one base of operation, transfers are not a
source of recruitment practiced at ABB.

4.0 External Recruitment

Recruitment of employees from outside the organization is referred to as external
recruitment. As with internal recruitment this method also has advantages and disadvantages
inherent to itself. ILO recognizes the following advantages in using external recruitment sources
in its guide to recruitment process (n.d.)

The most recognizable advantages are as follows.

 Larger pool of candidates to chose from.

 People from outside bring fresh ideas, talents and practices to the firm.
 Less chance of partiality

At the same time this method carries the following disadvantages:

 More expensive and longer process compared to internal recruiting
 The best candidate may not be identified if selection process is not effective.
 Can be a reducing factor of loyalty in the firm.

4.1 External Recruitment at ABB

Even though the HR policy of ABB is to prioritize in internal sources when recruiting, it is
not always possible to satisfy a firms employment requirements just though internal sourcing. In
these scenarios the HR managers will consider the following external sources.

4.1.1 Advertisement
This time tested method is one of the oldest and still most popular modes of recruitment
practiced. While traditionally adverts were placed in newspapers, with the growing importance
of the internet in the modern world firms use internet as well to place their advertisements in

Eroshan Rathnayaka
search of recruitment. ABB also uses advertisements as method of searching for candidates.
The medium the advertisements are placed are chosen according to the vacancies needed to
be filled. For example when the vacancy is at lower level labor related job advertisements are
mostly concentrated on newspapers, and adverts for executive level vacancies are placed on
internet based recruitment sites. This method allows the advert to reach the specific target
segments by taking in to consideration the most used mediums of information among those
demographics.

4.1.2 Recruitment Process Outsourcing

Recruitment process outsourcing is a form of business process outsourcing where the
firm outsources part of or the whole recruitment process to an outside service provider. It is
imperative for the firm to choose the external supplier with absolute precaution, as they lack
incentives for how well they recruit. Standards and expectations need to be clearly defined to
the supplier in this process. While cost and speed vice this method can be advantages, the firm
runs the risks of ineffectiveness, failure to deliver etc. This method is suitable for hiring lower
level employees, and as such has been used by ABB to hire employees upon the launch of its
flagship showroom in 2004.

5.0 Conclusions
As discussed above there are many advantages as well as disadvantages of using both
the external and internal sources of recruitment. When recruitment is necessary the choice of
either internal or external recruitment can be made only upon a cost benefit analysis of the two
sources with relation to the vacancies needed to be filled. The following factors are best to be
considered in this decision.

 Quality of hire:
 Time to fill
 Culture fit
 Candidate experience
 Cost

Upon consideration of these factors and by setting up metrics to measure in relation to

each method of sourcing: it is possible for HR managers arrive at a decision whether internal
recruitment, external recruitment or a hybrid of the two sources will best satisfy the firms needs.
Whichever method is chosen in a recruitment process it is best to assume that you need the

Eroshan Rathnayaka
best candidates for your company, now at as little cost as possible. In order to achieve this end,
HR managers need to smoothen the process by having clearly defined and best suited practical
HR policies in place.

Eroshan Rathnayaka
References

Bach, S. (2005) Managing human resources: personnel management in transition. New Jersey:
Wiley-Blackwell

Business Dictionary (n.d.) recruitment. [Online] Available from

<http://www.businessdictionary.com/definition/recruitment.html > [22 April 2011]

Department of business innovation and skills (n.d.) Internal Recruitment [online] Available from
<http://www.bis.gov.uk/policies/higher-education/access-to-professions/prg/recruitment-step-by-
step/attracting-applications/internal-recruitment> [22 April 2011]

International Labour Organization (n.d.) Recruitment Procedures: Recruitment Is the Process of

Finding and Hiring New Workers for a Job [Online] Available from
<http://www.ilofip.org/GPGs/Recruitment%20Procedures.pdf> [24 April 2011]

Eroshan Rathnayaka