Factors affecting recruitment

Factors Affecting Recruitment

Factors Affecting Recruitment

By understanding the key factors affecting recruitment, businesses can improve their strategies to secure the best-fit candidates and build a skilled and diverse workforce, contributing to their long-term prosperity.

Understanding the dynamics of these two factors is important for successful recruitment. The two factors given below have a major influence on recruitment. Effective recruitment necessitates a deep understanding of the impact of these two factors.

  1. External Factors 
  2. Internal Factors 
Factors affecting recruitment

Factors affecting recruitment are explained as follows:

1) External Factors 

These factors or forces are these factors that cannot be controlled by the organization. A variety of external factors which affect recruitment are as follows: 

External factors affecting recruitment are given below:

  1. Supply and Demand
  2. Unemployment Rate
  3. Labour Market 
  4. Image/Goodwill 
  5. Political-Social-Legal Environment
  6. Competitors 

Related Article: Product Life Cycle

i) Supply and Demand 

A significant factor in the recruitment process is the manpower supply, both inside and outside the organisation. If the demand for professionals in the company is more and the supply of professionals in the market is low, then the company will have to rely on internal sources for training and developing employees.

ii) Unemployment Rate 

Growth of the economy is another factor that affects the availability of applicants, lack of jobs in the company and surplus labour in the market can give rise to a situation of unemployment.

iii) Labour Market 

Employment conditions in the local area play a key role in the organization’s recruitment operations. Ordinary attempts like displaying job vacancies on notice boards or announcements in the official meetings, etc., will attract more than the needed candidates in case of excessive manpower at recruitment time.

iv) Image/Goodwill 

An employer’s image can also act as a hindrance to recruitment. The activities of the organisation are the basis for building an organisational image. It becomes easier to attract and retain employees for an organisation if it has a positive image and goodwill as an employer than an organisation with a negative image.

Recruitment practices are directly influenced by various government regulations which keep out favouritism in staffing and employment. 

For example, legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped, etc., has been introduced by the government of India. 

In addition, trade unions play a significant role in recruitment. This hampers the management’s freedom to choose potential candidates. Recruitment sources can be limited by the union’s regulations if the candidate does not fulfil the criteria set by the union.

vi) Competitors 

The recruitment function is also influenced by the recruitment policies of the competitors. Generally, organisations change their recruitment policies to match up with the competitor’s policies, so that they can compete in the market.

2) Internal Factors 

The factors that can be regulated by the organisation itself are called internal factors. Various internal factors in the organisation influence the recruitment program:

Internal factors affecting recruitment are given below:

  1. Human Resource Planning
  2. Recruitment Policy 
  3. Size of Firm
  4. Cost

i) Human Resource Planning

How many employees are to be recruited and what qualifications they should have is decided with the help of effective human resource planning.

ii) Recruitment Policy 

The aims of recruitment are stated in the recruitment policy of the organisation. It also gives an outline for the execution of the recruitment programme. 

iii) Size of Firm

Another vital factor that affects the process of recruitment is the size of the organisation. If the organisation is planning to increase its operations and expand its business, it will plan to hire more employees to carry out its functions. 

iv) Cost

Recruitment expenses are borne by the employer, therefore, organisations try to make use of that source of recruitment which gives more output at less cost.


1. What are the factors affecting recruitment in HRM?

Recruitment is the process of actively searching for prospective employees and encouraging them to apply for job opportunities. There are several factors factors affecting recruitment process, such as Organizational Policies and Culture, Economic Conditions, Labor Market Conditions, Legal and Regulatory Environment, Technology and Social Media, Demographic Trends, Competitive Landscape, Job Design and Specifications, Internal Mobility and Succession Planning, and Recruitment Budget.

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