There are two types of factors that influence recruitment, internal and external, as detailed below:
1. Internal Factors
2. External Factors
1. Internal Factors
(A) Policies and Procedures of the Organization
The organization's policies and procedures have an impact on its recruitment system. Some organisations may choose to recruit from within the organisation through promotions, transfers, layoffs, and other means, while others may choose to recruit from outside sources. Some organisations recruit people from backward castes and groups, physically disabled people, and so on, while others may value merit above all else, regardless of caste, creed, or religion.
(B) The Organization's Image
The image or impression that an organisation projects to the public has a significant impact on the company's recruitment process. The type of work environment, benefits provided to employees, and employer-employee relationships that exist in the company all contribute to the organization's image. The stronger the applicant's image, the higher the applicant's quality, and vice versa.
(C) Wage and Salary Policies
The benefits supplied by the company to its employees have a significant impact on its recruitment process. Higher compensation and wages commensurate with employee quality and experience will undoubtedly attract qualified and experienced personnel to the organisation.
(D) Policies on Promotion and Retirement
Companies that offer dedicated and meritorious employees better promotion prospects and retirement benefits such as pensions or gratuities to those who have served in the company for a minimum fixed period have an impact on the organization's recruitment policy and, as a result, attract meritorious and able people to the organisation.
(E) Working Environment
Good working environment such as sufficient lighting and ventilation, safety requirements, and welfare measures, such as bonuses, quarters, subsidised food, and medical facilities, all have a good impact on the organization's recruitment system.
2. External Factors
External elements such as government laws, labour union constraints, labour market conditions, legal issues, economic factors, cultural factors, and the organization's location, among others, have an impact on the firm's recruitment system.
(A) Government Rules and Regulations
Government restrictions affecting Minority Castes, Schedule Tribes and women have a direct effect on recruiting processes, and businesses must follow these regulations when hiring staff.
(B) Restrictions on Trade Unions
The goal of a trade union is to protect the interests of its members, hence it intervenes in the organization's recruitment process. As a result, while making the recruiting, the trade union's interests should be considered, and the process should be continued.
(C) Job Market
Labour market circumstances are continually shifting and dynamic. There may be a surplus or lack of well qualified candidates in a certain type of post for which a vacancy is to be filled at any given time. When there is a scarcity of well-qualified applicants, recruiting becomes tough, and when there are too many people with acceptable qualifications, selection becomes challenging. As a result, while recruiting employees, it is vital to keep in mind the current state of the labour market.
(D) Legal Considerations
Legal factors such as the prohibition of child labour, the prohibition of women working night shifts, the provision of security to underground mine workers, the abolition of bonded labour, the regulation of contract labour, the safety of scheduled castes, scheduled tribes, and other weaker sections of society, discrimination in the workplace based on religion, caste, gender, and other factors has an impact on the organization's recruitment practises.
(E) Economic Factors
Economic considerations such as the cost of recruitment, the ability to hire qualified people, working conditions in other similar businesses, and so on all have an impact on the organization's recruitment practises.