Factors of Recruitment & Sources of Recruiting – 6 points to know – A Detailed guide


One of the major parts of an HR planning process is to plan for recruitment. Recruitment is the process of hiring new people in your existing workforce in order to strengthen your team or expand your operations. Recruitment is also critical to fill up vacant positions and creating a talent pipeline. There are many factors that govern recruitment. We will discuss in detail the internal and external factors of recruitment. Apart from these, we will also discuss in detail the various sources of recruitment with detailed advantages and disadvantages of each one of them.

What are the Factors of Recruitment?

External Factors of Recruitment

Factors of Recruitment, Recruitment
Factors of Recruitment

Supply and demand

The recruitment process will be impacted by both the availability of potential candidates and the demand for particular skills or capabilities. If there is a high demand for a particular skill and ability within the organization, but there is a limited supply of people in the market who possess the required skill and ability, the organization will need to make extraordinary efforts to attract candidates who meet their requirements. For instance, there is a significant shortage of qualified individuals in the market for software programmers and financial planners, despite the fact that demand is extremely high.

Unemployment rate

It is easier to recruit suitable candidates if the rate of unemployment in a particular region is very high. This is because it will be easier to attract suitable candidates to apply for the jobs, which in turn makes it easier to recruit suitable candidates. On the other hand, as the rate of unemployment falls, it becomes increasingly difficult to recruit job candidates and convince them to accept open positions. During the great resignation, many organizations faced major issues in hiring new talent due to the changes brought by the Post Covid World. Such geopolitical and social factors play a critical role when developing a recruitment strategy.

Labor market

It is of the utmost importance to ensure that there is a sufficient pool of qualified candidates available on the job market, particularly when recruiting for positions in non-managerial, supervisory, and middle management.

Considerations pertaining to politics and the law:

When looking for qualified applicants, the organization has a responsibility to take into account political and legal considerations in the form of reservations for members of ethnic groups, women, members of minority groups, and members of local demographics, as determined by the policy of the government.

It is imperative that appropriate consideration be given to the provisions that concern the working conditions, compensation, recruitment benefits, as well as the health and safety of the employees. There are a number of Acts that address issues pertaining to recruitment and selection. The Child Labor (Prohibition and Regulation) Act of 1986 makes it illegal to employ children in certain jobs. The Factories Act of 1948 and the Mines Act of 1952 both have provisions in them that deal with recruitment as well. In addition, the Constitution makes it illegal to discriminate against people in the workplace.

Sons of the Soil

Political leaders are adamant about giving prospective candidates from the respective state or local area first preference when hiring, and they restrict employment opportunities for people from outside the area.

Brand Image

The Company has a lot of goodwill and a good reputation, which helps to build its image and attract people who are looking for jobs. Companies such as Tatas, Reliance, and Infosys which are widely recognized and respected draw a large number of job seekers to apply for available positions in their organizations.

Internal Factors of Recruitment

These are factors that are already present within the organization and have an impact on the recruitment of new employees for the Company.

Recruitment Policy

The majority of companies have their own recruitment policy, which is based on a variety of criteria such as whether the promotion will be accomplished from within the organization and existing vacancies will be filled from sources located within the company, or whether they will seek new blood by way of r sources of recruitment located outside the company. The company will also take into consideration making the temporary workers permanent members of the staff. Some businesses believe that rewarding the friends and family members of current employees with employment opportunities is the best way to foster a culture of employee loyalty.

Planning for Human Resources (also known as HRP):

The HRP process involves making projections about the company’s future demand for and supply of the appropriate kinds of people in the appropriate numbers. With the assistance of the Human Resource Management department, the company will determine the number of workers it requires for its operations. The organization will be aware of whether there is an abundance or deficiency of employees, and as a result, it can plan to hire the appropriate number and kind of employees.

The sizes of the companies:

When compared to companies of a smaller size, those of a larger size typically have an easier time attracting and hiring new workers.


When hiring new staff members, you will incur significant costs such as those associated with placing an advertisement, conducting interviews, and sending out letters of recruitment, among other things. The company is responsible for analyzing its own budget and determining the most cost-effective method of recruitment.

Development and Expansion Plans

Companies that are consistently expanding their product lines and service offerings will, over the course of time, require a greater number of employees. Companies that are continually entering new markets, merging with other businesses, or purchasing other businesses will have an ever-increasing demand for new employees.

Sources of Recruitment

The following blog discusses in detail the various sources of recruitment.

Sources of Recruitment, Recruitment
Sources of Recruitment

Internal Sources of Recruitment

Current Employees

The currently employed individuals have the potential to be moved to different positions or promoted to higher ones. This strategy has a beneficial effect on the current staff members because it inspires them to put more effort into their work. The company will be able to save a significant amount of money on recruitment costs.

Because the current staff members are familiar faces around the office, the customers tend to feel more devoted to the company. On the other hand, it leaves room for bias. Because he must choose from among the candidates who are already present, the manager of personnel only has a limited number of options available to him. There is no room for new blood that could bring fresh ideas and a more creative perspective.

Ex- Employees

Employees who have possibly retired or who may have left their current job due to a desire for a break or personal factors may express interest in coming back to work. Because of their extensive familiarity with the company, such workers are eligible for consideration.

Close Friends and Relatives of Already Employed Staff Members (Also Known as Referrals)

Current employees have the ability to make recommendations for potential candidates from among the people they know, such as their friends and family members. In most companies, managers of human resources will ask current workers to recommend candidates they are familiar with, particularly for entry-level positions. On compassionate grounds, jobs may also be offered to the sons and daughters of retired personnel or to fill the positions of workers who have passed away. The company has the potential to realize significant cost savings.

A database containing information on previous applicants:

It’s possible that the company has a pool of applicants who have applied for the jobs in the past and saved their information. The company is able to choose from the pool of applications that are available whenever a new employee is needed by creating a shortlist of candidates who are suitable. Because of this, we don’t have to pay for new recruits.

Advantages of Internal Recruitment

  • Reduces the costs associated with recruitment.
  • Providing encouragement to workers who are already employed.
  • The managers have a solid understanding of the capabilities and potential that already exist within the workforce.
  • Encourages fidelity and commitment to the cause.
  • Employees can get job satisfaction.
  • Appropriate for positions of a lower level.

Disadvantages of Internal Recruitment

Because they are required to choose candidates from within the company, the managers have a limited selection to choose from.

  • The opportunity for favoritism and bias.
  • There will be no influx of new people or new ideas into the organization.
  • It is not qualified for work at the highest levels.

External Sources of Recruitment

When selecting a potential employee, a company will typically look to external sources of recruitment as its primary resource. The following is a list of the many different external recruitment sources.

This is by far the most common and widely utilized approach to the process of recruitment. Advertisements from the Company can be found in the most prominent newspapers and magazines. The help wanted advertisement gives a rundown of the duties and responsibilities of the position, as well as the employer who will be providing it. It extends an invitation to prospective workers who are qualified and who meet the requirements of a particular skill and ability to apply for the position. These types of advertisements have a broad audience and seek potential employees from all parts of the country.

It is necessary for the company to conduct job analyses before posting advertisements and to provide detailed job specifications and job descriptions.

Campus Recruitment

Premier institutes are the best places to look for campus hiring. They can expand to B Schools and Engineering colleges if you are looking for Technical Recruitment depending the requirements and open positions.  When businesses are looking for new employees, this kind of source can be useful. There are a few Institutes that have their very own placement cells.

Either the companies will call the placement cells and tell them about the open positions in their organizations, or the placement cells will call the companies and tell them about the qualified candidates who are available.

Employment Markets and Services

In accordance with the mandates of the Employment Exchanges (compulsory notification of vacancies) Act that was passed in 1959, employment exchanges have been established in every region of the country in India. Similar acts are also available in the United States, UK and Germany.

The Act is applicable to all commercial and industrial establishments that employ at least 25 people. The Act mandates that all businesses provide notice of open positions before those positions are filled. These Exchanges maintain a list of prospective participants. They provide the company with the information and act as a link between the Employment Exchange and the company.

Placement agencies

A pool of applicants from potential candidates is collected by private placement agencies, and these agencies then assist applicants in being placed in organizations with openings that are a good fit for them. The companies pay the agencies a commission for their services.

Walk-in and talk-in

These types of recruitment are commonly referred to as gate recruitment. This is the method of recruitment that sees the most use and is also the most cost-effective. Walk-ins and calls to the employment office are both acceptable ways for people looking for work to submit their resumes and leave contact information. Companies often find success with this direct approach when trying to find suitable employees.

Advisors or Consultants:

These days, a variety of consultants are offering their services to help businesses find candidates who are a good fit for the open positions. Head Hunters, the Ferguson Association, and Batliboi & co. are just a few examples of the most successful consultants operating in this sector. The consultants maintain relationships with a sizable number of different individuals. However, because consultants typically charge fees that range from 20 to 50 percent of an annual salary, this approach can be quite pricey.

Independent Contractors

Companies rely on job contractors to find temporary or part-time employees for them when they have a need for workers with shorter commitments. When the task has been finished, the worker’s employment is terminated.

Associations Representing a Profession or a Trade:

There are a lot of associations that offer job placement assistance to their members. The majority of professional and trade associations publish periodicals, such as journals and magazines, for the benefit of their members. These publications present a variety of

Advertisements in a classified publication seek applications from people who are highly educated and qualified.

Internet recruiting

Because of the increasing importance of the internet, online recruitment is rapidly becoming the most popular method of personnel acquisition. This has a broad reach and can solicit applications from individuals located in any part of the world. This approach is frugal because there are few outgoing expenses required. These are the following factors influencing recruitment in hrm the adoption of online recruitment:

  1. Post Covid Recruitment world has changed Significantly
  2. There is more emphasis on the Gig Economy
  3. Recruiters are more reliant on the social values of the candidate, hence internet recruiting is slowly becoming a norm
  4. It is relatively cheaper
  5. Job Adverts have a wider reach and can reach a lot of prospects in a short amount of time
  6. Pan Geographical Recruiting is now a norm

Advantages of External Recruitment

  • A method that is both unbiased and objective in its search for potential employees.
  • The company provides a diverse selection of options.
  • Individuals who are creative thinkers join the company.

Disadvantages of External Recruitment

  • The procedure is both expensive and time-consuming, and it takes a lot of time.
  • The current staff loses its drive and motivation.
  • It will put a strain on the relationship between the employer and the employee.

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