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How Internal and External Factors Influence Recruitment

In CareerJob SearchRecruitment industry |

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On November 24, 2017

Recruitment is an important process possessing the power to define the future of the company. It can make or break the company’s success building strategy. There is no doubt recruiting the right candidate acts as the building blocks to take the company to the next level of achievements. In achieving a milestone, the role of recruitment can’t be neglected.


Factors Influencing Recruitment

Realizing the importance of recruitment, it’s essential to understand what factors affect the process. There are certain factors which are involved to influence the functionality of the recruitment process and eventually affect the performance and outputs. If you want the recruitment process to work best for you and give the results as predicted, you must consider the factors first.


Internal and External Factors

The factors majorly fall into two categories:

  • Internal Factors
  • External factors

Both of the factors play their specific role in the process.  The difference is from the perspective in which they influence the recruitment.  Be it internal or external, they possess the energy to divert the process flow and making the recruitment industry efficient.



The only difference is that internal factors are under the control of the organization as their scope is within the organization. These factors can be gripped, alternated and can never get on your nerves as of being controllable. While the external factors are out of grip and access. You can only follow their trends. There is no escape other than molding your HR policies according to the external factors in the trend.



Internal Factors:

The internal factors involved are:

1.     HR Policies

The recruitment strategy falls under HR policies. It comes first defining the recruitment process. It specifies the objective and implementation of the recruitment process. The overall process flow and hiring challenges of the recruitment are dependent on HR policies. The policies are supposed to have the potential to pull the talent out of the talent pool.

2.     Size of the Firm

Size of the firm also defines the recruitment scope and need. Small firm’s HR department is way easy to handle with less manpower. As the organization goes wider, the recruitment complexities increases. Recruitment process would become more time-consuming and needs more focus and large data processing.

3.     Budget

Recruitment demands a reasonable amount of cost over it. Organizations do have to analyze the cost to calculate the return on the investment of recruitment.  Every organization defines their budget level, pre-defined for the recruitment process. If your firm is already in the loss, you would hardly afford the recruitment budget on a big scale.

4.     Reputation

Recruitment and company’s reputation has a strong connection. In multinational worldwide recognized organizations, the HR department would receive hundreds of entries for a single job opening, where all of them being competitive. This generates huge talent pool to select from. The recruitment process in this scenario is very systematic, planned and documented. The timeline would be longer too from advertisement to the final hiring.

5.     Age of the Firm

Startup business is in urge need of new talent. Recruitment for a new firm is not as technically handled as in fully established organizations. New firms don’t have strict HR policies to follow. Recruitment is on flexible terms for startups. As the company goes older with earning well-reputed label, its HR policies and framework get complex.




External Factors:

The External factors are:


1.     Unemployment Rate

The employment rate has a strong impact on the recruitment process. Higher unemployment rate increases the applicants against the job opening. The firms can hire their perfect candidate on their own terms.  So it makes the recruitment process simple. The Lower rate will give the firms tough time to attract the desired candidate with benefits.

2.     Competition

The competition in the specific area increases the difficulties to find the candidate perfectly fit in your organizational needs. With higher competition, the candidate’s will have more choices and harder for the companies to attract the candidate. The competitor’s approach and policies are also counted to redefine the recruitment process.

3.     Labour Laws

There are few laws implemented in the labour market on the government level. There are obligations which are influencing the industry. For instance, we see some reserved seats for a specific gender, age group, location of the people. The circumstances and employment conditions around the location of the organization also matters.

4.     Demand

As we always talk about Demand and Supply phrase. It stands true for talent hunt too. The demand for a specific skill in the market increases the worth of the talent. The shortage of the specific skilled professional required by your firm will make you suffer in the search. You can either have to struggle hard to find one or have to train in-door employees for the desired skill.


Last modified: October 25, 2018

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