Chapter 4: Recruitment

4.1 The Recruitment Process

Learning Objectives

1. Discuss the need for forecasting human resource needs and techniques for forecasting.
2. Be able to explain the steps to an effective recruitment strategy.
3. Be able to develop a job analysis and job description.

The recruitment process is an important part of human resource management (HRM). It isn’t
done without proper strategic planning.

Recruitment is defined as a process that provides the organization with a pool of qualified job
candidates from which to choose. Before companies’ recruit, they must implement proper
staffing plans and forecasting to determine how many people they will need.

The basis of the forecast will be the annual budget of the organization and the short- to long-
term plans of the organization—for example, the possibility of expansion. In addition to this,
the organizational life cycle will be a factor.

Forecasting is based on both internal and external factors.

Internal factors include the following:

1. Budget constraints
2. Expected or trend of employee separations
3. Production levels
4. Sales increases or decreases
5. Global expansion plans

External factors might include the following:

1. Changes in technology
2. Changes in laws
3. Unemployment rates
4. Shifts in population
5. Shifts in urban, suburban, and rural areas
6. Competition
Once the forecasting data are gathered and analyzed, the HR professional can see where gaps
exist and then begin to recruit individuals with the right skills, education, and backgrounds. This
section will discuss this step in HR planning.

Recruitment Strategy

Although it might seem easy, recruitment of the right talent, at the right place and at the
right time, takes skill and practice, but more importantly, it takes strategic planning. An
understanding of the labor market and the factors determining the relevant aspects of the
labor market is key to being strategic about your recruiting processes.

Based on this information, when a job opening occurs, the HRM professional should be ready to
fill that position.

Here are the aspects of developing a recruitment strategy:

1. Refer to a staffing plan.
2. Confirm the job analysis is correct through questionnaires.
3. Write the job description and job specifications.
4. Have a bidding system to recruit and review internal candidate qualifications for
possible promotions.
5. Determine the best recruitment strategies for the position.
6. Implement a recruiting strategy.

The first step in the recruitment process is acknowledgment of a job opening. At this time,
the manager and/or the HRM look at the job description for the job opening (assuming it isn’t a
new job).

Assuming the job analysis and job description are ready, an organization may decide to look at
internal candidates’ qualifications first.
Internal candidates are people who are already working for the company. If an internal
candidate meets the qualifications, this person might be encouraged to apply for the job, and the
job opening may not be published. Many organizations have formal job posting procedures
and bidding systems in place for internal candidates. For example, job postings may be sent to a
list or other avenue so all employees have access to them. However, the advantage of
publishing open positions to everyone in and outside the company is to ensure the organization
is diverse.

Then the best recruiting strategies for the type of position are determined. For example, for a
high-level executive position, it may be decided to hire an outside head-hunting firm. For an
entry-level position, advertising on social networking websites might be the best strategy. Most
organizations will use a variety of methods to obtain the best results.

Another consideration is how the recruiting process will be managed under constraining
circumstances such as a short deadline or a low number of applications. In addition,
establishing a protocol for how applications and résumés will be processed will save time later.
For example, some HRM professionals may use software such as Microsoft Excel to
communicate the time line of the hiring process to key managers.

Once these tasks are accomplished, the hope is that you will have a diverse group of people to
interview (called the selection process). Before this is done, though, it is important to have
information to ensure the right people are recruited. This is where the job analysis and job
description come in.

Job Analysis and Job Descriptions

The job analysis is a formal system developed to determine what tasks people actually perform
in their jobs.

The purpose of a job analysis is to ensure creation of the right fit between the job and the
employee and to determine how employee performance will be assessed. A major part of the job
analysis includes research, which may mean reviewing job responsibilities of current
employees, researching job descriptions for similar jobs with competitors, and analyzing any
new responsibilities that need to be accomplished by the person with the position. According to
research by Hackman and Oldham (Hackman & Oldham, 1976), a job diagnostic survey should
be used to diagnose job characteristics prior to any redesign of a job.

To start writing a job analysis, data need to be gathered and analyzed, keeping in mind Hackman
and Oldham’s model. Please note, though, that a job analysis is different from a job design. Job
design refers to how a job can be modified or changed to be more effective—for example,
changing tasks as new technology becomes available.
Figure 4.1 Process for Writing the Job Analysis

The information gathered from the job analysis is used to develop both the job description and
the job specifications.

A job description is a list of tasks, duties, and responsibilities of a job.

Job specifications, on the other hand, discuss the skills and abilities the person must have to
perform the job. The two are tied together, as job descriptions are usually written to include job
specifications.

A job analysis must be performed first, and then based on that data, we can successfully write
the job description and job specifications. Think of the analysis as “everything an employee is
required and expected to do.”
Figure 4.2 Sample Job Analysis Questionnaire

This questionnaire shows how an HR professional might gather data for a job analysis. Questionnaires can be completed on paper or
online.
Two types of job analyses can be performed: a task-based analysis and a competency- or
skills-based analysis.

A task-based analysis focuses on the duties of the job, as opposed to a competency-based

analysis, which focuses on the specific knowledge and abilities an employee must have to
perform the job.

An example of a task-based analysis might include information on the following:

1. Write performance evaluations for employees.

2. Prepare reports.
3. Answer incoming phone calls.
4. Assist customers with product questions.
5. Cold-call three customers a day.

With task job analysis, the specific tasks are listed and it is clear. With competency based, it is
less clear and more objective. However, competency-based analysis might be more appropriate
for specific, high-level positions. For example, a competency-based analysis might include the
following:
1. Able to utilize data analysis tools
2. Able to work within teams
3. Adaptable
4. Innovative

You can clearly see the difference between the two. The focus of task-based analyses is the job
duties required, while the focus of competency-based analyses is on how a person can apply
their skills to perform the job.

One is not better than the other but is simply used for different purposes and different types of
jobs. For example, a task-based analysis might be used for a receptionist, while a competency-
based analysis might be used for a vice president of sales position. Consider the legal
implications, however, of which job analysis is used. Because a competency-based job analysis
is more subjective, it might be more difficult to tell whether someone has met the criteria.

Once you have decided if a competency-based or task-based analysis is more appropriate for the
job, you can prepare to write the job analysis. Of course, this isn’t something that should be
done alone.

Feedback from managers should be taken into consideration to make this task useful in all
levels of the organization. Organization is a key component to preparing for your job analysis.
For example, will you perform an analysis on all jobs in the organization or just focus on one
department? Once you have determined how you will conduct the analysis, a tool to conduct the
analysis should be chosen. Most organizations use questionnaires (online or hard copy) to
determine the duties of each job title. Some organizations will use face-to-face interviews to
perform this task, depending on time constraints and the size of the organization.
A job analysis questionnaire usually includes the following types of questions, obviously
depending on the type of industry:

1. Employee information such as job title, how long in position, education level, how
many years of experience in the industry
2. Key tasks and responsibilities.
3. Decision making and problem solving: this section asks employees to list situations in
which problems needed to be solved and the types of decisions made or solutions
provided.
4. Level of contact with colleagues, managers, outside vendors, and customers.
5. Physical demands of the job, such as the amount of heavy lifting or ability to see, hear,
or walk.
6. Personal abilities required to do the job—that is, personal characteristics needed to
perform well in this position.
7. Specific skills required to do the job—for example, the ability to run a particular
computer program.
8. Certifications to perform the job.

Once all employees (or the ones you have identified) have completed the questionnaire, you can
organize the data, which is helpful in creating job descriptions. If there is more than one person
completing a questionnaire for one job title, the data should be combined to create one job
analysis for one job title. There are a number of software packages available to help human
resources perform this task.

Once the job analysis has been completed, it is time to write the job description and
specifications, using the data you collected. Job descriptions should always include the
following components:

1. Job functions (the tasks the employee performs)

2. Knowledge, skills, and abilities (what an employee is expected to know and be able to do,
as well as personal attributes)
3. Education and experience required
4. Physical requirements of the job (ability to lift, see, or hear, for example)
Figure 4.3 Sample Job Description
Notice how the job description includes the job function; knowledge, skills, and abilities required
to do the job; education and experience required; and the physical requirements of the job.

Once the job description has been written, obtaining approval from the hiring manager is the next
step. Then the HR professional can begin to recruit for the position. Before we discuss specific
recruitment strategies, we should address the law and how it relates to hiring.

Tips to Writing a Good Job Description

 Be sure to include the pertinent information:

o Title
o Department
o Reports to
o Duties and responsibilities
o terms of employment
o qualifications needed
 Think of the job description as a snapshot of the job.
 Communicate clearly and concisely.
 Make sure the job description is interesting to the right candidate applying for the
job.
 Avoid acronyms.
 Don’t try to fit all job aspects into the job description.
 Proofread the job description.

References

Hackman J. R. and Greg R. Oldham, “Motivation through the Design of Work: Test of a
Theory,” Organizational Behavior and Human Performance 16, no. 2 (August 1976): 250–79.
 4.2 Recruitment Strategies

Learning Objective

1. Explain the various strategies that can be used in recruitment.

Now that we have discussed development of the job analysis, job description, and job
specifications, it is time to start recruiting. It is important to mention, though, that a recruitment
plan should be in place. This plan can be informal, but you should outline where you plan to
recruit and your expected time lines. For example, if one of your methods is to submit an ad to a
trade publication website, you should know their deadlines. Also, of consideration is to ensure
you are recruiting from a variety of sources to ensure diversity. Lastly, consider the economic
situation of the country. With high unemployment, you may receive hundreds of applications for
one job. In an up economy, you may not receive many applications and should consider using a
variety of sources.

Some companies, such as Southwest Airlines, are known for their innovative recruitment
methods.

Southwest looks for “the right kind of people” and are less focused on the skills than on the
personality of the individual (Carey, 2011). When Southwest recruits, it looks for positive team
players that match the underdog, quirky company culture. Applicants are observed in group
interviews, and those who exhibit encouragement for their fellow applicants are usually those
who continue with the recruitment process. This section will discuss some of the ways Southwest
and many other Fortune 500 companies find this kind of talent.

Recruitment Videos at Zappos

(click to see video)

Zappos has developed and posted a series of YouTube videos called “Why Do I Like Working at
Zappos?” The videos show the culture of the organization and provide a great tool for
recruitment.

Recruiters

Some organizations choose to have specific individuals working for them who focus solely on
the recruiting function of HR. Recruiters use similar sources to recruit individuals, such as
professional organizations, websites, and other methods discussed in this chapter.
 Recruiters are excellent at networking and usually attend many events where possible candidates
will be present. Recruiters keep a constant pipeline of possible candidates in case a position
should arise that would be a good match. There are three main types of recruiters:

1. Executive search firm. These companies are focused on high-level positions, such as
management and CEO roles. They typically charge 10–20 percent of the first-year salary, so they
can be quite expensive. However, they do much of the upfront work, sending candidates who
meet the qualifications.

Top Executive Search Firms in the Philippines

1. John Clements Consultants, Inc.

o One of the oldest and most reputable in the country (established in 1974).
o Provides executive search, leadership development, and HR consulting.
o Often used by multinational corporations for high-level placements.
o 🌐 [Link]
2. KSearch Asia Consulting, Inc.
o Specializes in senior management and executive search across industries.
o Known for placing CEOs, COOs, CFOs, and functional heads in multinational
and local firms.
o 🌐 [Link]
3. Cielo Talent (Philippines operations)
o A global recruitment firm with strong presence in the Philippines.
o Offers executive search, RPO, and talent strategy solutions.
o 🌐 [Link]
4. Drake International Philippines
o Provides executive search, HR solutions, and leadership consulting.
o Focuses on strategic roles in finance, HR, and operations.
o 🌐 [Link]
5. RGF Executive Search Philippines (part of Recruit Holdings, Japan)
o Focused on senior and executive-level recruitment.
o Strong in IT, engineering, and multinational corporations.
o 🌐 [Link]
6. KSearch Asia (local but regional presence)
o Highly recognized for discreet headhunting of senior managers.
o Works with Fortune 500 companies and large Philippine conglomerates.
7. Headhunter Philippines, Inc. (HHPI)
o Specializes in headhunting mid- to senior-level executives.
o Works across industries such as healthcare, FMCG, banking, and telecom.
o 🌐 [Link]

2. Temporary recruitment or staffing firm. Suppose your receptionist is going on medical leave
and you need to hire somebody to replace him, but you don’t want a long-term hire.

You can utilize the services of a temporary recruitment firm to send you qualified candidates
who are willing to work shorter contracts. Usually, the firm pays the salary of the employee and
 the company pays the recruitment firm, so you don’t have to add this person to your payroll. If
the person does a good job, there may be opportunities for you to offer him or her a full-time,
permanent position.

Certainly! In the Philippines, there are several reputable firms offering temporary recruitment
and staffing solutions—similar to Kelly Services or Manpower—ideal for situations like
covering a receptionist's temporary medical leave. Here are a few prominent examples:

Local Staffing Firms & Temporary Recruitment Providers

1. EPS Philippines

Offers contract and temporary staffing services, staff augmentation, and

recruitments tailored for short-term and remote roles. They handle hiring, onboarding,
and HR administration. In addition to temporary services, they also provide remote
staffing, executive search, and contract roles—great for filling short-term positions
with qualified professionals.(NeoWork, Second Talent, EPS Philippines, NeoWork)

2. Sysgen RPO

Specializes in Recruitment Process Outsourcing (RPO), managing the full hiring

cycle—including sourcing and staffing—ideal for short-term or project-based
recruitment needs.(NeoWork)

3. John Clements Consultants, Inc.

One of the most established firms in the Philippines, offering contract staffing,
executive search, and flexible recruitment across multiple industries.(Asanify)

4. KDCI / KDCI Outsourcing

Focuses on staff leasing and offshore staffing, providing flexible team deployment
for both short-term and long-term roles across sectors like IT, finance, and back-
office.(NeoWork)

5. Airswift

An international staffing firm providing contingent staffing and contractor

management, including in the Philippines—a solid option for temporary project-
based hires.(Airswift)

3. Corporate recruiter. A corporate recruiter is an employee within a company who focuses

entirely on recruiting for his or her company. Corporate recruiters are employed by the company
for which they are recruiting. This type of recruiter may be focused on a specific area, such as
technical recruiting.
A contingent recruiter is paid only when the recruiter starts working, which is often the case
with temporary recruitment or staffing firms.

A retained recruiter gets paid up front (in full or a portion of the fee) to perform a specific
search for a company.

While the HR professional, when using recruiters, may not be responsible for the details of
managing the search process, he or she is still responsible for managing the process and the
recruiters. The job analysis, job description, and job specifications still need to be developed
and candidates will still need to be interviewed.

Fortune 500 Focus

In 2009, when Amazon purchased Zappos for 10 million shares of Amazon stock (roughly $900
million in 2009), the strategic move for Amazon didn’t change the hiring and recruiting culture
of Zappos. Zappos, again voted one of the best one hundred companies to work for by CNN
Money (Sowa, 2011) believes it all starts with the people they hire. The recruiting staff always
asks, “On a scale of 1–10, how weird do you think you are?” This question ties directly to the
company’s strategic plan and core value number three, which is “create fun and a little
weirdness.” Zappos recruits’ people who not only have the technical abilities for the job but also
are a good culture fit for the organization. Once hired, new employees go through two weeks of
training. At the end of the training, newly hired employees are given “the offer.” The offer is
$2,000 to quit on the spot. This ensures Zappos has committed people who have the desire to
work with the organization, which all begins with the recruiting process.

Campus Recruiting

Colleges and universities can be excellent sources of new candidates, usually at entry-level
positions. Consider technical colleges that teach cooking, automotive technology, or
cosmetology. These can be great sources of people with specialized training in a specific area.
Universities can provide people that may lack actual experience but have formal training in a
specific field. Many organizations use their campus recruiting programs to develop new talent,
who will eventually develop into managers.

For this type of program to work, it requires the establishment of relationships with campus
communities, such as campus career services departments. It can also require time to attend
campus events, such as job fairs. IBM, for example, has an excellent campus recruiting
program. For IBM, recruiting out of college ensures a large number of people to grow with the
organization1.

Setting up a formal internship program might also be a way to utilize college and university
contacts. Walgreens, for example, partners with Apollo College to recruit interns; this can result
in full-time employment for the motivated intern and money saved for Walgreens by having a
constant flow of talent.
Labor unions can also be excellent sources of candidates, and some unions also allow job
postings on their website. The key to using this as a successful recruitment strategy is to identify
the organizations that relate to your business and to develop relationships with members in these
organizations. This type of networking can help introduce you to people in your industry who
may be looking for a job or know of someone who needs a job.
Figure 4.5 Overview of the Steps to the Recruitment Process

Websites

If you have ever had to look for a job, you know there are numerous websites to help you do that.
From the HR perspective, there are many options to place an ad, most of which are inexpensive.
The downside to this method is the immense number of résumés you may receive from these
websites, all of which may or may not be qualified. Many organizations, to combat this,
implement software that searches for keywords in résumés, which can help combat this problem.

Some examples of websites might include the following:

1. Your own company website
2. Facebook Page

Top Job Search Websites in the Philippines:

3. JobStreet Philippines
o One of the largest and most trusted platforms.
o Features thousands of job postings daily from SMEs to large corporations.
o Has a strong employer rating and application tracking system.
o 🌐 [Link]
4. Indeed Philippines
o Global job search engine with localized Philippine postings.
o Aggregates jobs from company websites and recruiters.
o 🌐 [Link]
 5. Kalibrr
o Very popular with tech-savvy employers and job seekers.
o Used by startups, BPOs, and multinational corporations.
o Has a modern interface with personalized job matches.
o 🌐 [Link]
6. LinkedIn
1. Professional networking site, but also a major job search platform.
2. Useful for executive-level, managerial, and specialized jobs.
3. Employers also use it to directly headhunt talent.
4. 🌐 [Link]/jobs
7. [Link]
1. Specializes in overseas employment opportunities.
2. Powered by JobStreet but focused on OFW job seekers.
3. 🌐 [Link]
8. Monster Philippines
1. International job board with local listings.
2. Strong for IT, engineering, and overseas opportunities.
3. 🌐 [Link]
9. Bossjob
1. A mobile-first job app, very popular among young professionals.
2. Has a chat-to-apply system for fast communication with recruiters.
3. 🌐 [Link]
10. BestJobs Philippines
1. Features thousands of local postings.
2. Employers can contact applicants directly.
3. 🌐 [Link]

Social Media

Facebook, Twitter, LinkedIn, YouTube, and MySpace are excellent places to obtain a media
presence to attract a variety of workers.

In 2007, Sodexo, which provides services such as food service and facilities management, started
using social media to help spread the word about their company culture. Since then, they have
saved $300,000 on traditional recruiting methods (Sodexo, 2011). Sodexo’s fifty recruiters share
updates on Twitter about their excellent company culture. Use of this media has driven traffic to
the careers page on Sodexo’s website, from 52,000 to 181,000.

The goal of using social media as a recruiting tool is to create a buzz about your organization,
share stories of successful employees, and tout an interesting culture. Even smaller companies
can utilize this technology by posting job openings as their status updates. This technique is
relatively inexpensive, but there are some things to consider. For example, tweeting about a job
opening might spark interest in some candidates, but the trick is to show your personality as an
employer early on.
According to Bruce Morton of Allegis Group Services, using social media is about getting
engaged and having conversations with people before they’re even thinking about you as an
employer (Lindow, 2011). Debbie Fisher, an HR manager for a large advertising agency,
Campbell Mithun, says that while tweeting may be a good way to recruit people who can be
open about their job hunt, using tools such as LinkedIn might be a better way to obtain more
seasoned candidates who cannot be open about their search for a new job, because of their
current employment situation. She says that LinkedIn has given people permission to put their
résumé online without fear of retribution from current employers.

Creativity with a social media campaign also counts. Campbell Mithun hired thirteen interns
over the summer using a unique twist on social media. They asked interested candidates to
submit thirteen tweets over thirteen days and chose the interns based on their creativity.

Many organizations, including Zappos (Video 4.4), use YouTube videos to promote the
company. Within the videos is a link that directs viewers to the company’s website to apply for a
position in the company.

Facebook allows free job postings in Facebook Marketplace, and the company Facebook page
can also be used as a recruiting tool. Some organizations decide to use Facebook ads, which are
paid on a “per click” or per impression (how many people potentially see the ad) basis. Facebook
ad technology allows specific regions and Facebook keywords to be targeted (Black, 2011).
Some individuals even use their personal Facebook page to post status updates listing job
opportunities and asking people to respond privately if they are interested.

Events

Many organizations, such as Microsoft, hold events annually to allow people to network and
learn about new technologies. Microsoft’s Professional Developer Conference (PDC), usually
held in July, hosts thousands of web developers and other professionals looking to update their
skills and meet new people.

Some organizations, such as Choice Career Fairs, host job fairs all over the country;
participating in this type of job fair may be an excellent way to meet a large variety of
candidates. Other events may not be specifically for recruiting, but attending these events may
allow you to meet people who could possibly fill a position or future position. For example, in
the world of fashion, Fashion Group International (FGI) hosts events internationally on a
weekly basis, which may allow the opportunity to meet qualified candidates.

Special/Specific Interest Groups (SIGs)

Special/specific interest groups (SIGs), which may require membership of individuals, focus on
specific topics for members. Often SIGs will have areas for job posting, or a variety of
discussion boards where jobs can be posted. For example, the Women in Project Management
SIG provides news on project management and also has a place for job advertisements.
Examples of SIGs in the Philippines

 Psychological Association of the Philippines (PAP) SIGs:

These groups focus on advancing the interests of psychologists and psychometricians in areas
such as research, specific fields of psychology, and professional welfare. The Research in
Psychology Special Interest Group (RIP-SIG) is one such example, aiming to improve research
skills and produce scholarly work for the benefit of the field and the nation.

 World Council for Curriculum and Instruction (WCCI) SIGs:

The Philippine Chapter of the WCCI uses SIGs to facilitate action and cooperation on agreed-
upon projects from their conferences. Examples include the SIG on Education for Social
Transformation (EST) and the SIG on Education for Sustainable Development (ESD).

Referrals

Most recruiting plans include asking current employees, “Who do you know?” The quality of
referred applicants is usually high, since most people would not recommend someone, they
thought incapable of doing the job. E-mailing a job opening to current employees and offering
incentives to refer a friend can be a quick way of recruiting individuals. Due to the success of
most formalized referral programs, it is suggested that a program be part of the overall HRM
strategic plan and recruitment strategy.

For example, the University of Washington offers $1,200 any time a current employee
successfully refers a friend to work at their medical centers. Usually, most incentives require the
new employee to be hired and stay a specified period of time. Some examples of incentives that
can be used to refer a friend might include the following:

 A gift card to the employee

 A financial incentive
 Raffles for most referrals

These types of programs are called employee referral programs (ERPs) and tend to generate
one of the highest returns on investment per hire (Lefkow, 2002). To make an ERP program
effective, some key components should be put into place:

1. Communicate the program to existing employees.

2. Track the success of the program using metrics of successful hires.
3. Be aware of the administrative aspect and the time it takes to implement the program
effectively.
4. Set measureable goals up front for a specialized program.
Accenture recently won the ERE Media Award for one of the most innovative ERPs. Its
program has increased new hires from referrals from 14 percent to 32 percent, and employee
awareness of the program jumped from just 20 percent to 99 percent (Sullivan, 2009). The
uniqueness of their program lies with the reward the employee receives. Instead of offering
personal financial compensation, Accenture makes a donation to the charity of the
employee’s choice, such as a local elementary school. Their program also seeks to decrease
casual referrals, so the employee is asked to fill out an online form to explain the skills of the
individual they are referring. The company has also developed a website where current
employees can go to track the progress of referrals. In addition, employee referral applications
are flagged online and fast-tracked through the process—in fact, every referral is acted upon. As
you can see, Accenture has made their ERP a success through the use of strategic planning in the
recruitment process.

Table 4.1 Advantages and Disadvantages of Recruiting Methods

Recruitment Method Advantages Disadvantages

Outside recruiters, executive Can be time saving Expensive
search firms, and temporary Less control over
employment agencies final candidates to be
interviewed
Campus recruiting/educational Can hire people to grow with the Time consuming
institutions organization
Plentiful source of talent Only appropriate for
certain types of
experience levels
Professional organizations and Industry specific May be a fee to place
associations an ad
Networking May be time-
consuming to network
Websites/Internet recruiting Diversity friendly Could be too broad
Low cost Be prepared to deal
Quick with hundreds of
résumés
Social media Inexpensive Time consuming
Overwhelming
response
Events Access to specific target markets Can be expensive
of candidates May not be the right
target market
SIG Industry specific Research required for
specific SIGS tied to
jobs
Referrals Higher quality people Concern for lack of
diversity
Retention Nepotism
 Unsolicited résumés and Inexpensive, especially with time- Time consuming
applications saving keyword résumé search
software
Internet and/or traditional Can target a specific audience Can be expensive
advertisements
Employee leasing For smaller organizations, it Possible costs
means someone does not have to
administer compensation and
benefits, as this is handled by
leasing company
Can be a good alternative to Less control of who
temporary employment if the job interviews for the
is permanent position
Public employment agencies The potential ability to recruit a May receive many
more diverse workforce résumés, which can
No cost, since it’s a government be time-consuming
agency
2,300 points of service
nationwide
Labor unions Access to specialized skills May not apply to
some jobs or
industries
Builds relationship
with the union

Costs of Recruitment

Part of recruitment planning includes budgeting the cost of finding applicants.

Recruitment Cost in the Philippines:

Suppose a company in Manila needs to fill three positions, including one temporary staff. The
estimated costs are:
 Advertising costs (JobStreet & social media ads): ₱20,000
 Temporary staffing agency fee (1-month contract): ₱35,000
 Referral bonus (for 1 candidate through employee referral): ₱25,000

Now, apply the formula:

Step 1: Add up all costs
₱20,000 (ads) + ₱35,000 (agency) + ₱25,000 (referral) = ₱80,000

Step 2: Divide by total number of hires (3)

₱80,000 ÷ 3 = ₱26,667

Recruitment Cost per Hire = ₱26,667. This means, on average, the company spends ₱26,667
to successfully hire one employee.

In addition, when we look at how effective our recruiting methods are, we can look at a figure
called the yield ratio. A yield ratio is the percentage of applicants from one source who make it
to the next stage in the selection process (e.g., they get an interview).

For example, if you received two hundred résumés from a professional organization ad you
placed, and fifty-two of those make it to the interview state, this means a 26 percent yield
(52/200). By using these calculations, we can determine the best place to recruit for a particular
position. Note, too, that some yield ratios may vary for particular jobs, and a higher yield ratio
must also consider the cost of that method, too. For an entry-level job, campus recruiting may
yield a better ratio than, say, a corporate recruiter, but the corporate recruiter may have higher
cost per hires.
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1
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