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Factors Affecting Recruitment

Internal and External Factors which affects the Recruitment Process

The recruitment function of the organizations is affected and governed by a mix of various internal and external forces.

The internal forces or the factors that can be controlled by the organization and the external factors are those factors which cannot be controlled by the organization.

The internal and external forces affecting recruitment function of an organization are:


The internal factors also called as “endogenous factors” are the factors within the organization that effect recruiting personnel in the organization.

The internal forces i.e. the factors which can be controlled by the organization are:

1. Recruitment Policy

The recruitment policy of the organization i.e. recruiting from internal sources and external also affect the recruitment process The recruitment policy of an organization specifies the objectives or recruitment and provides a framework for implementation of recruitment program.

It may involve organizational system to be developed for implementing recruitment programs and procedure by filling up vacancies with best qualified people.

Factors Affecting Recruitment Policy

  1. Need of the organization.
  2. Organizational objectives
  3. Preferred sources of recruitment.
  4. Government policies on reservations.
  5. Personnel policies of the organization and its competitors.
  6. Recruitment costs and financial implications.

2. Human Resource Planning

Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualification they must possess.

3. Size of the Organization

The size of the organization affects the recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.

4. Cost involved in recruitment

Recruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.

5. Growth and Expansion

Organization will employ or think of employing more personnel if it is expanding its operations.


The external forces are the forces which cannot be controlled by the organization. The major external forces are:

1. Supply and Demand

The availability of manpower both within and outside the organization is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them special training and development programs.

2. Labour Market

Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc. will attract more than enough applicants.

3. Goodwill / Image of the organization

Image of the organization is another factor having its influence on the recruitment process of the organization. This can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Image of a company is based on what organization does and affected by industry. Managerial actions like good public relations, rendering public service like building roads, public parks, hospitals and schools help earn image or goodwill for organization.

4. Political-Social- Legal Environment

Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions play important role in recruitment. This restricts management freedom to select those individuals who it believes would be the best performers. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.

5. Unemployment Rate

One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often oversupply of qualified labour which in turn leads to unemployment.

6.  Competitors

The recruitment policies of the competitors also affect the recruitment function of the organizations. To face the competition, many a times the organizations have to change their recruitment policies according to the policies being followed by the competitors.

Recruitment is one of the main departments which place the right candidates to the right job. The recruiters should identify the best candidates from different sources and job sites. Recruiters should identify the problems faced during recruitment and find an alternative to make work efficiently.



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