Recruitment process and policies can be affected by various internal and external factors. Factors that can be controlled by the organization are called internal factors, whereas factors that cannot be controlled by the organization are called external factors.

Internal factors that affect the recruitment process

  • Size of the firm/organization: The size of the organization affects the process of recruitment to a large extent. Many organizations that are big select more candidates when compared to small firms. Big organizations find recruitment process less problematic than the organizations that are smaller.
  • Recruitment policy: Sometimes recruitment policy that is followed by an organization can also affect process of recruitment. The policy might be concerned in hiring candidates from outside the organization. On the other hand the organization wants to hire from internal source.
  • Organization’s image: Sometimes the process of recruitment is affected by the image or goodwill of the organization. Organizations that have good image attracts highly capable, competent and potential candidates to a large scale. Maintaining good public relation with the public, rendering services to the public, etc., will be helpful for building good image and reputation for the organization.
  • Job image: Jobs that have good working conditions, better career, remuneration, promotions, etc., are able of attracting more qualified and potential candidates on large scale.
  • Cost issues: Recruitment process incurs expenses to the organization so it will employ the source that will be less expensive way of recruitment.

External factors that affect the recruitment process

  • Competitors: Competitors recruitment policies also affect functions of recruitment in the organization. To compete with these policies, organizations have to make changes in their recruitment policies.
  • Demand and supply: For a particular skill if the demand is higher than its supply, then the process of recruitment will evolve more efforts. On the other hand if there is more supply for demand, the process of recruitment will be easy.
  • Political and social environment: Recruitment policy is also affected by social and political environment. For example, if the government changes, it will have a great impact on recruitment process of the organization because of the changes in government rules and regulations.
  • Legal Considerations: Legal considerations regarding employment provision for the casts that are under-privileged can have positive effect on recruitment process of the organization.
  • Unemployment situations: Unemployment also has great impact on recruitment policy. The process of recruitment will be easy and simpler if the rate of unemployment is high.


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