Recruitment provides employees – the most productive of all resources – to an organization. This has two important aspects: the first is to find out the number of vacancies to be notified and the type of applicants needed to fill them; the second is to appeal to potential applicants through novel advertising to apply for such vacancies. Both the steps are, thus closely related to the environment (economic, social, technological and political) in which the company operates . No organization is likely to recruit successfully without taking care of these aspects.
The Economic Environment:
Economic conditions quietly influence the recruitment process in all organizations. Liberalization, privatization and globalization (LPG era) have contributed to the growing demand for management graduates possessing fund raising , risk management and marketing skills initially. The demand for engineers especially in the manufacturing sector, has not kept pace, and most engineers have to make a beeline for finance /marketing degrees or diplomas to en cash the job opportunities. Companies have to resort to extensive advertising (newspaper ads, campus hiring, search firms, employees referrals etc) for recruiting people with requisite skills. However, by the late 90s the rules of the game changed dramatically . Recession in sectors such as software, automobiles, pharmaceuticals etc has forced companies to cut down recruitment costs drastically by resorting to less expensive media advertising only. The outsourcing contract manufacturing deals (in software, pharmaceuticals and automobiles) in early 2000 have, once again created demand for people having engineering research and design skills. Recruiters not surprisingly are back in the arena in a big way exploiting the opportunities through various means.
The Social Environment:
Major social changes in the past two decades have caused organizations to place increased emphasis on recruitment. Modern employees look for a satisfying career in place of just a job. If the opportunities for career growth are missing in an organization they do not hesitate to leave and go in search of greener pastures outside. To ward off such threats companies nowadays emphasize opportunities for training and development and progression through a series of jobs within the same organization. They also try to present a more realistic picture of the job and the encouraging career openings to prospective employees through innovation recruitment campaigns. For example, companies like Intel Technologies India go to the extent of saying openly: At Intel a manager’s main job is to take care of his employee’s career development. Each Intel employee has a development plan, on which he charts his career. The employee and his manager talk about the former’s goals, and Intel invests on the training the employment requires . If the organization is not aware of – and is insensitive to – prevailing social values and norms the recruitment efforts could go off the track. The securities Scam (1992) has also brought considerable bad publicity to scam tainted banks, financial institutions and companies and seek employment elsewhere. Major employees that manufactured ammunitions and supplies for the Vietnam war faced strong resistance during that period from college students.
The technological Environment:
New technologies create new jobs. The existing jobs undergo a rapid change. As a result sometimes applicants with unusual combinations of skills and knowledge must be found . The liberalization Program after 1991 brought about rapid changes in the fields of banking, electronics, telecommunications automobiles software and pharma industries etc. Several; old jobs have disappeared almost overnight as it were. At the same time there is a chronic shortage of people with requisite skills and knowledge especially in the field of software, telecommunication , insurance etc. In such a scenario companies have to step up their recruitment efforts to compete successfully for the small number the of suitable candidates available in the market.