Wednesday, 27 November 2013

What is Recruitment ? Types of Recruitment.

You may be wondering why I am talking about recruitment and its type, recruitment is recruitment, what else!  Definition of recruitment is just simple, it is a process of fulfilling job opening by attracting, screening, short listing, interviewing and selecting a candidate as per job requirement.  Though the definition is simple the process is in fact challenging. It starts with the identification of areas where usually department head feels the requirement of additional manpower to complete the work expeditiously and efficiently or when someone leaves the company for any reason whatsoever. He /she then comes up with the job opening in the department and informs HR to fulfill the requirement by providing them basic information like JD, Qualification, Experience etc. In many organizations, job requirements are fulfilled as per pre set policies against hiring. Compensation is either decided as per policy or it is decided in consultation with Department Head, HR and Management. TAT is often decided to finish the work within stipulated time period. Once job openings are generated, the process of recruitment starts, we will discuss about it in detail in next few days.

Types of recruitment are…

Direct Hiring / Core Staffing
Done by the organization itself to fulfill their own job openings whether permanent or contractual in nature as described above.

Placement / Executive Search –
Services of hiring agencies are sought by organization in fulfilling their job openings.

Placement word is usually used in the world of recruitment agencies who offer services of fulfilling job openings of their client as per the requirement and criteria set by them. Person sourced by the agency is selected and absorbed by the client company into their core employment is called placement.

Placement agency or say Recruitment firm normally charges around 8.33 % of gross annual compensation depending upon expertise and experience. It may go up if the chances of fulfilling the requirement is difficult. Agencies may charge much higher fees for recruitment of such personnel as per their skills in finding the suitable fitment against match. Usually replacement time period of 3 months is provided to the client (employer) to observe the candidate. In case of termination or resignation within 3 months , a replacement has to be provided to the client free of charge

Contract Staffing / Manpower Outsourcing –
Services of staffing companies are sought by the organization to fulfill job openings which are often temporary in nature and where the staff is placed on the payroll of staffing company i.e. third party payroll for carrying out work activities for that organization is called contract staffing or outsourcing of manpower.

A person is hired by staffing company to work with Client Company, mostly for limited period.  Staffing companies are so robust now a day that any successful player in this field can deliver tailor made staffing solution to many client companies as per their need. Here, principal employer has limited obligation of statutory requirements like PF, ESIC, Labour Licence etc. related to the staff outsourced through staffing companies.

Contingency Staffing –
Job openings which are project based, temporary or part time fulfilled by outsourcing through staffing company or by direct hiring or sought in the form of consultation of an individual who has expertise in the required field. These types of requirement are mostly contractual.


I have mentioned the types which are best known to me. I would like to have your comments and feedback to make this article comprehensive. I am eager to share my experience in Gulf Recruitment as I have spent more than half of my career span doing it.

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