As per Breaugh and Starke,(2000) "Recruitment is creating a pool of applicants for a particular job and it include all the practices and activates such as sourcing and acquiring the candidates who can be employed for a Particular position
Human Resource is one of the most important resource for any organisation and recruitment performs the important function of drawing this important resource in any organisation. "Attracting the candidates for key role within the organisation creates aÂ war for talent" ( Livens et al. 2002).
Recruitment involves various policies and practices as per the job role and the organisation, It is a step by step process, starts from publication of job vacancy, job application, and exchange of information between prospective applicant and organisation, screening and short listing of suitable application and finally creating a database of potential candidate.
Literatures mentioning two different approaches of recruitment as; traditional and realistic approaches. In this traditional approach the aim of recruitment is to attract maximum number of applicants for a particular position. One of the main criticism in this approach is that applicants have a very limited or biased information about the job or the company and this always leads to large number of applicants and it creates problems in selection and retention of candidates (wanous 1975) It is a very difficult task to find the right candidates for Large number of applications. And if any unrealistic information about the job presented at the time of recruitment can creates problems to the employees in the beginning of their term of employment. It leads to frustration dissatisfaction and productivity and leads to labour turnover. Most of the traditional approaches are it all are time consuming and labour intensive. Traditional methods such as news papers advertisements, recruitment campaigns invites large number of applicants and recruiters has to go through every application to check whether it meets the requirements of the company.
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Alternately Wanous (1975) proposed a realistic approach, this recommend a "realistic job Preview" that is a detailed information about the job and organisation likely to decrease the volume of application and increase the number of applicants who are qualified for the job. There for a successful recruitment required a appropriate information to be communicated to candidate through a proper media used to convey the information. In this approach Communication of information has a vital role because recruitment and selection is a two way process organisation i.e. candidate has to select the organisation and organisation has to chose the company.( Barber, 1998) Attracting the potential candidate is the first step in effective recruitment and it is for a number of reasons
First reason is proper match between applicant and company is vital for both parties for the productivity and well-being during the term of employment. (Wanous, 1992). Second, organisations spend a great deal of money in the recruitment process and, without the right applicants, cannot hope to develop the level of competitive advantage necessary to compete in a unstable economy. Recruitment advertising is one way in which organizations attempt to attract the right people for their current vacancies. For some firms, the right applicants may be those who fit the job in terms of a match between their particular skills, abilities, and values and those desired by the organisation. For other firms, the right applicants may be the best and brightest from the labour market, regardless of specific person-organisation fit issues. Either way, the task of business communicators is to find the appropriate words to pique the curiosity of the desired potential workers and encourage them to continue through the application process. Although we know that recruitment advertising content is vitally important in establishing the first link to appropriate potential employees, little, if any, systematic research has been focused on the nature of "real world" recruitment advertising content in the attraction process. This knowledge is important to the recruitment function in the same way an understanding of product attribute attractiveness is important to marketers.
Communication in recruitment
Petrick and Furr (1995) stated that an individual job should be designed as part of a broader organizational design, with specific tasks and duties prescribed. The HRM department, which in most large organizations has the responsibility of recruiting new employees, must be able to find the person with the right level of suitability for the job. Yet research that has been conducted has indicated that many organisations select staff members according to qualities irrelevant to successful performance on the job (Dessler et al., 1999). Selecting a recruit who is not the best person for a job leads to money being wasted on training, a decline in employees' morale, and an expensive selection mistake if it has to be rectified (Molander & Winterton, 1994). Thus, it is important to implement the best recruitment procedures possible. Denton (1992) stated that competition teaches organizations to be aggressive recruiters and that they must use every avenue available to find the best employees. Initial attraction to an organization has been found to be related to early impressions of an organization's image as an employer. One of the most effective ways to recruit employees is to be the employer of choice (Denton, 1992). Slaughter et al. (2001) concluded that applicants are able to attribute specific traits to an organization on the basis of the organization's advertising, products and services, places of business, employees, customers, and social information. For example, applicants may favour a company that is publicly recognized as a good employer over other companies. Applicants who believe that an organization is innovative or competent may feel that this image expresses their own self-concepts and personalities and therefore will react more favourably toward that organization (Aaker, 1997). Lievens and Highhouse (2003) observed, "The criteria job seekers use to evaluate an organization's image may be attributes (e.g., innovative) that have symbolic meaning for them and that are held in high regard by others" (p. 96).
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Barber and Roehling (1993) found that inferences about organizational characteristics can be made by readers from the information provided in a recruitment advertisement. In fact, Redman and Mathews (1995) wrote, "The readers of recruitment advertising are more sophisticated and demanding so the advertisements are becoming more difficult and complex to write" . Research by Backhaus (2004) suggested, however, that organizations predominantly focus on their own attributes and secondarily on employee advancement. The poorly defined and limited research in this field means that most recruiters have to rely on their own past experiences and advice from others, resulting in the recruitment advertising process being less effective (Ryan, Gubern, & Rodriguez, 2000). Williamson's (2000) review of research indicated that the recruitment procedures and HRM policies implemented by an organization heavily influence applicants' job-choice decisions. It is these procedures and policies that indicate to an applicant how well a potential employer will meet employment goals. Recruitment, therefore, is an important form of persuasive marketing communication (Allen, Van Scotter, & Otondo, 2004). Specifically, recruitment is a process in which a communicator or source (a company) seeks to elicit a desired response (an application from a potential employee). The difference between communication and persuasive communication lies in the intent of the source. In persuasive communication, the source of a message wants receivers to change their behaviours or wants to influence the behaviours of receivers in a specified manner (Bettinghaus, 1973). In other words, persuasive appeals aim to motivate readers to take some form of action (Dwyer, 1999). For the focus of this study, a recruitment advertisement is supposed to persuade suitable potential employees to apply for a position.
The second point, therefore, is to develop interest in a job. Interest may be created by the nature of the work or the working environment. An advertisement must emphasize a particular aspect of a vacancy, for example, the organization, salary, technical attraction, job title, type of person needed, locality, or career prospects (Chandor, 1976). Chandor (1976) found that the overall effectiveness of an advertisement could be diminished if more than one element is emphasized. Thus, once the key factor has been determined, other factors should be included in the supporting text. The elements included need to be relevant so that potential applicants are able to do as much self-selection as possible.
The third step, desire, can be created by amplifying a job's interest factors and extras, such as job satisfaction, career-path opportunities, travel, or similar advantages. Jennings, Werbel, and Power (2003) argued that benefits offered by organizations should also be included so that potential applicants can make informed decisions. These benefits can fall into one of two categories, traditional and nontraditional benefits. Traditional benefits include "disability insurance, health insurance, retirement funding and life insurance. However, employers are increasingly emphasizing non-traditional benefits, such as flexible work arrangements, telecommuting, portable retirement plans and corporate sponsored day-care centre"
However, before meaningful research can examine the relationship between recruitment message content and intent to apply, there must be an accepted way of analysing recruitment message content. Presently, there is no widely accepted method to classify or quantify the language used in recruitment documents. A search for studies in the areas of human resources and communication relating to recruitment messages yields only a handful of studies that have touched on the classification of recruitment messages ( Barber, 1998).
Assessing the effectiveness of recruitment messages is difficult in the absence of reliable methods by which to measure the presence (or absence) of particular messages. Thus, it is important to first have the tools to classify the recruitment information, and second, to then seek relationships between the classified content and recruitment outcomes. The Internet has developed into one of the most popular sources of job information for job seekers those who fit the job in terms of a match between their particular skills, abilities, and values and those desired by the organization. For other firms, the right applicants may be the best and brightest from the labour market, regardless of specific person-organization fit issues. Either way, the task of business communicators is to find the appropriate words to pique the curiosity of the desired potential workers and encourage them to continue through the application process. Although we know that recruitment advertising content is vitally important in establishing the first link to appropriate potential employees, little, if any, systematic research has been focused on the nature of "real world" recruitment advertising content in the attraction process. This knowledge is important to the recruitment function in the same way an understanding of product attribute attractiveness is important to marketers.
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However, before meaningful research can examine the relationship between recruitment message content and intent to apply, there must be an accepted way of analysing recruitment message content. Presently, there is no widely accepted method to classify or quantify the language used in recruitment documents. A search for studies in the areas of human resources and communication relating to recruitment messages yields only a handful of studies that have touched on the classification of recruitment messages (see Barber, 1998). Assessing the effectiveness of recruitment messages is difficult in the absence of reliable methods by which to measure the presence (or absence) of particular messages. Thus, it is important to first have the tools to classify the recruitment information, and second, to then seek relationships between the classified content and recruitment outcomes.
Changing Dynamics of Talent Acquisition
HR managers face a wide range of issues as they look to build an effective talent acquisition strategy. Talent shortages, challenging economic conditions, the rapid growth of web-based recruiting and opportunities in social media are combining to bring about significant change in the way organisations go about recruiting. From adopting techniques used by sales and marketing teams to assessing the business case for investment in web and other technologies, The major challenges for a organisation in the contemporary situations are;( Webster Buchanan)
As the global economy continues to become more knowledge and service-based, companies will need more workers with the mission-critical skills that create competitive advantage and drive business growth. The pressure to bridge the ever-widening skills gap, which used to be felt solely by corporate training and development functions has now begun affecting every facet of talent management, with particularly dramatic implications for the recruitment process.
While the balance of power may shift towards recruiters in times of high unemployment, talented individuals typically still have a choice of employer, and the onus falls on HR to promote its value proposition to candidates as much as on candidates selling their skills and experience. HR managers are encouraged to seek advice from their colleaguesÂ in sales and marketing about techniques they can use to extend their reach, promote their brand and proposition, and close deals
Whether they're filling new positions to support an expansion programme or plugging vacancies in their existing workforce, most organisations will find themselves competing to acquire high-performers. Success will depend on a combination of HR philosophy, how effectively they embrace the web, and how far they can drive through operational efficiencies, particularly in cutting costs and streamlining internal recruitment processes
The shift to web-based recruitment - classified by Webster Buchanan as either informational or transactional - is irreversible, and organisations will fall behind in the race for talent if they fail to embrace it both for marketing purposes and to improve efficiencies (for example, by eliminating paper job applications)
The ability to beat competitors to hire high-performing candidates will depend in part on internal efficiencies. As restrictions on IT spend are tentatively eased, organisations should weigh up the business case for automating their internal recruitment processes, either by extending their existing HR management system, using third party software, or outsourcing. Software as a Service, an IT outsourcing model, is particularly suitable for standalone business processes such as recruitment
Even if the talent acquisition is automated as a single HR discipline, the
greatest benefits come when it's addressed in the context of a broader
human capital strategy, particularly in relation to performance
management, employee development, succession planning and contractor management.
As employers scramble to retain good people, the candidates themselves have defined a number of issues they consider important, and which are essential to companies who want to hire and retain them. These include work/life balance, professional development programs, family considerations and values, as well as new ideas about retirement
Companies must be ready to adjust to the changing trends in hiring. Organizations that prepare for the changes in talent recruitment by understanding the issues and developing strategies will be the clear winners.
The role of the executive search firm and in-house corporate recruiters is more important than ever as human capital partners in this "war for talent" atmosphere. In fact, developing a close working relationship with a search firm partner is an important element in a company's strategy to gain access to the best available candidates. Search firms are best utilized in a true partnership and consultative role where they have access and input to their client's strategic plans. This allows them to make suggestions on organizational structures, take a proactive approach to positions expected to become available, and offer a viewpoint on competitive marketplace events and information. Good search firms today want to foster committed long term and binding relationships with clients, and understand that both parties have the responsibility to meet each other's needs and expectations. Clients expect a timely and high quality process with a reasonable number of qualified candidates to choose from at a fair cost. Search firms want to be on an exclusive short list of search providers who can expect ongoing search projects at appropriate levels.
Compensation, as always, is a key point in securing top talent. Companies who want to attract top candidates need to be willing to structure attractive packages that have the right blend of base salary, performance based bonuses and long term incentives. The search firm's role as an advisor in this area is crucial since they have access to extensive competitive market data in terms of what others are doing. The use of stock options has vastly altered due to new expensing requirements and employers and Board Compensation Committees are taking harder looks at the specific terms of employment contracts, change of control agreements, non-competes and company perks. It is a fine line between what it will take to attract top talent, and what the shareholders will tolerate in terms of reasonable packages.
Changing Dynamics in Global Insurance industry
Over the past few years it has become apparent that the global insurance industry is being shaped by a small number of well-defined external drivers of change. These are commonly identified as:
For some time, size seems to have been viewed by many insurers as an objective in itself, bringing with it market power and reduced costs. It is true that the cost of new technology and the desire for economies of scale continue to drive consolidation. In our judgment, however, the reality is that as markets increasingly deregulate, few groups will have the required capital to achieve global dominance, and still fewer will be able to successfully obtain the management skills to be winners in all lines of business in a more open competitive environment.
U.S. and European insurers moving into Asia, Latin America, and other developing markets face challenges in managing cross-cultural issues. "Although foreign companies have certain advantages in some aspects, our domestic companies are in the same market with the same language, culture, and legislation. It is easier for domestic companies to contact each other. In these aspects, the foreign companies are no match.
It has been said that the Internet will do for services what the production line has done for goods. What does this mean for insurance? Some commentators have proclaimed the Internet as the final solution to the insurance distribution problem. Such a simplistic answer could hardly be further from the truth as it only addresses a small part of the question. Yes, the Internet will become a strong distribution channel for simpler products but no one should underestimate the power of the agent or adviser. The bottom line is that customers will always self-select distribution.
Deregulation worldwide is encouraging the emergence of universal financial services organizations,
The traditional view of an insurance business as a provider of fully integrated service delivery is obsolete. Distribution, underwriting (manufacture), administration, and funds management are becoming increasingly disaggregated. As companies seek to meet customer needs, they will need to place emphasis on multiple channels and multiple relationships rather than providing all the products and services themselves. Distributors will seek to provide customer convenience and greater value by bringing together a range of products, theirs and other peoples, in one offering designed to deliver wealth creation. In this context, savings products, life risk and property risk are all points on the same continuum. Customer convenience is the key. The battle will be for the opportunity to serve customers in tomorrow's market.
Brand image- Increasingly we live in a lifestyle society that buys the image as much as the product. Strong brands will provide opportunities for both insurers and a whole range of nonfinancial services companies to distribute financial services products.
Changing skill requirements.
Employment growth can be attributed to two main factors:1) The demand for additional employees to perform existing associate professional job roles. 2) The creation of new associate professional positions as a result of the reclassification of job roles. There is some evidence that certain associate professional job roles now incorporate a variety of tasks traditionally associated with other occupational classifications.
Insurance professionals require a combination of technical and generic skills and personal
attributes to undertake their job roles. The relative importance of these skill categories to the job roles performed by associate professionals varies across the occupational group. The exact mix of skills required by the particular characteristics of the job role. Three categories of skills combinations can be identified;
1 'Traditional' Associate Professionals. These employees require a high level of technical skills with above average generic skills and well developed personal attributes. The ability of individuals to perform their job is largely determined by the technical knowledge and skills that they possess. Traditional associate professionals include legal executives, market researchers and technical insurance underwriters
2 'Transitional' Associate Professionals. This group of employees requires an average level of technical skills. High-level generic skills and well developed personal attributes are the key skills defining the job role. Job roles in this group are most likely to be undergoing some form of reclassification, with additional job tasks being incorporated into the job role. Examples of transitional associate professional occupations include personnel and development officers and recruitment consultants. For instance, the job role of a personnel and development officer has shifted away from being mainly associated with the administration of personnel and welfare issues towards a role which has a strategic remit. Generic and inter-personal skills are still the main skills required within the personnel officer role, however technical skills associated with employment law and strategic decision making have become increasingly vital.
3 'Generic' Associate Professionals. These employees require high-level generic skills and personal attributes but relatively low levels of technical skills. The skills required for these associate professional roles are largely transferable and, as such, this range of job roles typically has lower entry requirements and higher levels of employee turnover. Estate agents,
Barristers clerks and sales insurance underwriters are all located in the 'generic' associate professional group. Interpersonal and customer handling skills are the main skills needed by employees working in these roles as the 3 majority of job roles are located in a 'sales' environment. For example, the main skills needed by estate agents are high level interpersonal skills, customer handling, confidence and tenacity. These are the requisite skills
needed to ensure that the individual can secure a house sale. Whilst estate agents do need to be familiar with the house selling process and in some instances possess house valuation skills, these 'technical' skills are considered secondary to those generic and personal attributes needed to close a sale on a property.
Meeting skill needs through recruitment
On the whole employers from across the occupational groups were able to source the skills needed using the external labour market. Recruitment difficulties were most likely to be evident amongst the 'generic' associate professional category.The reason for this appears twofold:
1 The principal skills needed to perform the job roles are highly transferable. Therefore, employees can easily move between industrial sectors in order to secure employment. The job tasks performed by people employed in these occupations are often repetitive which encourages employee turnover.
2 The skills used by these employees are largely associated with customer handling and customer service. These skills are often subjected to a high level of demand from a variety of industry and occupational sectors which can mean that the local labour market is tight as various employers are competing for the same pool of skills. Therefore employees looking to secure this type of employment have a wide choice of employment opportunities before and during employment.