Once the number and type of required personnel has been estimated, the process of recruitment can be started. Recruitment is defined as the process of searching for prospective employees and stimulating them to apply for the jobs in the company. Its purpose is to seek out or explore, to evaluate, to induce and to obtain commitment from the prospective employees so as to fill up positions required for the successful operation of an enterprise. Recruitment provides a pool of candidates to enable management to select suitable candidates for different jobs. It is a positive process as it increases the number of applicants from which a real choice can be made. A new enterprise has to recruit all employees from external sources. The various external sources of recruitment are:-
Advertisement in newspapers or trade and professional journals is a very popular source of recruitment, particularly for senior positions in business enterprises. It provides a wide range of candidates from which management can make its choice. Also, detailed information about the organisation, job description and job specification can be given in the advertisement to facilitate self-screening by the prospective candidates. It is a convenient and economical method. Its disadvantage is that it brings in a flood of response, and many times, from quite unsuitable candidates.
The employment exchanges maintain detailed records of job-seekers and refer appropriate candidates to the employers. The employers are required to notify the vacancies to these exchanges. The agencies help to match personnel demand and supply by serving as a link between job seekers and the employers. They also provide services like vocational guidance, occupational research, designing, testing and selection programmes, collection and publication of employment information, etc. Employment exchanges run by the Government are regarded as a good source of recruitment for unskilled, semi-skilled and skilled operative jobs.
In the Ministry of Labour, Directorate General of Employment and Training (DGET) operates National Employment Service (NES). NES works through the Employment Exchanges (Compulsory Notification of Vacancies) Act 1959 and rules framed thereof (EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) RULES 1960). It operates through a net work of 947 employment exchanges and carries out the following functions:-
- Registration and placement of job-seekers so as to ensure a proper balance between demand and supply.
- Collect comprehensive Employment Market Information on a quarterly basis for creation of data base for use in effective management of the demand and supply of labour, preparing career literature for counselling and vocational guidance.
- Career Counseling and Vocational Guidance.
- Conduct area specific specialised study/surveys to have an assessment of skills available and the marketable skills required for encouraging the job-seekers for self-employment, particularly in rural informal sector.
- Some of the State Governments arrange disbursement of unemployment allowance to certain specific categories of job seekers out of their own resources through the employment exchanges as registered with them.
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 provides for compulsory notification of vacancies and submission of employment returns (ER-I and ER-II) by the employers to the employment exchanges. The Act applies to all establishments in the public sector and such establishments in the private sector as are engaged in non-agricultural activities and employing 25 or more workers. The employer in every establishment in public sector in any State or area shall furnish such information or return as may be prescribed in relation to vacancies that have occurred or are about to occur in that establishment, to such employment exchanges as may be prescribed. But, it shall not apply in relation to the vacancies in any employment:-
- In agriculture (including horticulture) in any establishment in private sector other than employment as agricultural or farm machinery operatives;
- In domestic service;
- The total duration of which is less than three months;
- To do unskilled office work;
- Connected with the staff of Parliament.
Colleges and institutes of management and technology have become a popular source of recruitment for technical and managerial jobs. Such recruitment is called Campus Recruitment. Many big organisations maintain a close liaison with the universities, vocational institutes and management institutions for recruitment to various jobs. Placement cells have been set up in well-known educational institutions to help the students in securing suitable jobs. Many business enterprises send circulars to the educational institutions seeking applications for jobs from the students.
Under it, a notice is placed on the notice board of the enterprise specifying the details of the job available. Job seekers assemble outside the premises of the organisation on the specified date and selection is done on the spot. This is also called recruitment at the factory gate. This practice is followed usually for casual vacancies of unskilled or semi-skilled jobs. Small workshops recruit through this source.
Labour contractors maintain close contacts with labourers and they can provide the required number of workers at a short notice. They constitute an important source of recruitment in many industries in India. Workers are recruited through labour contractors who are themselves employees of the organisation. The disadvantage of this system is that if the contractor himself decides to leave the organisation, all the workers employed through him will follow suit.