The recruitment process

By Lee Rossini

After carrying out the job analysis on the various positions in the business and developing the job descriptions, you should have a much better understanding of the type of person to employ, the skills, knowledge, experience and attitudes required as well as the salaries applicable to each position. This means you are ready to start recruiting new employees as and when the need arises. Recruitment is ‘the process of acquiring applicants who are available and qualified to fill positions in a business’.[1]  Employing a new person can be challenging and is often a hit-and-miss affair as many small business owners do not devote enough time and energy to the process. Finding the most suitable and the right person for a position is more likely to be successful by following an established recruitment process.

Before embarking on a recruitment drive, there are external considerations that must be considered. The process must meet the applicable labour law requirements. Depending on the vacant position, the business is also likely to be competing with other FSPs for the same applicants. If there is fierce competition for the same skills, knowledge and experience, this will have a bearing on the salary and benefits on offer.  

After deciding on the position that needs to be filled, management should consider whether it should be filled internally by someone already employed (this may involve a transfer or a promotion) or externally (finding a suitable candidate). Depending on the needs of the business, management usually starts the process by looking internally and then externally. However, they may decide to run the two processes in parallel with each other; looking both internally and externally at the same time. Warnich and her co-authors, experts in human resources, list the following advantages and disadvantages of the internal and external recruiting procedures:

Advantages of internal recruitment

• The morale of current employees is increased due to the increased opportunities.
• The business knows the current employees.
• It provides current employees with a path for promotion.
• The process is less expensive and time-consuming than external recruiting.
• The promoted employee understands the culture and systems of the business therefore they are productive quicker.
• For the reasons above, there is no need for an initial employee induction.

Disadvantages of internal recruitment

• It may lead to unhealthy competition between current employees.
• There are no new ideas or perspectives coming into the business.
• There may be morale problems for those not promoted.
• A well-structured development plan for existing employees is needed.

Advantages of external recruitment

• There are more applicants to choose from with differing skills and experience.
• It provides an opportunity for new ideas and a different way of thinking to be introduced into the business.
• It may minimize the possibility of internal conflict between employees.

Disadvantages of external recruitment

• There is limited incentive for current employees to strive for promotion.
  
• It is not entirely certain that a new employee will be a good cultural fit with the business.
• It takes longer for a new employee to become productive as there is likely to be an initial period of adjustment.
• There is a need for a comprehensive orientation program.

The owners and management of a business need to weigh up the advantages and disadvantages before deciding whether to recruit internally or externally. The decision will also be influenced by the size of the business, the availability of current employees with the required skills and knowledge or at a minimum, with the ability to acquire the skills and knowledge, the position that needs to be filled and the available skills and resources to carry out the recruitment process. Before deciding which route to go, it is worthwhile taking some time to think about these issues and what would work best strategically for the business.

Source:

Warnich S, Carrell MR, Elbert NF & Hatfield RD Human Resource Management in South Africa 5th ed (2015).

Smith R, 'The Changing Face of Recruitment, People Dynamics (2004)' in Grobler P & Warnich S Human Resource Management in South Africa (2006).