Recruitment refers to the overall process of identifying, attracting, screening, shortlisting, and interviewing candidates for jobs (either permanent or temporary) within an organization. Recruitment can also refer to the processes involved in choosing individuals for unpaid roles. Managers, Hr Recruitment Agency, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies are used to undertake parts of the process. Internet-based technologies which support all aspects of recruitment have become widespread, including the use of artificial intelligence (AI).
An employment agency is an organization that matches employers to employees. In developed countries, there are multiple private businesses that act as employment agencies and publicly-funded employment agencies.
An executive-search firm specializes in recruiting executive personnel for companies in various industries. This term may apply to job-search-consulting firms that charge job candidates a fee and who specialize in mid-to-upper-level executives. In the United States, some states require job-search-consulting firms to be licensed as employment agencies.
Some third-party recruiters work on their own, while others operate through an agency, acting as direct contacts between client companies and the job candidates they recruit. They can specialize in client relationships only (sales or business development), in finding candidates (recruiting or sourcing), or in both areas. Most recruiters tend to specialize in either permanent, full-time, direct-hire positions or in contract positions, but occasionally in more than one. In an executive-search assignment, the employee-gaining client company – not the person being hired – pays the search firm its fee.
A Placement Service Agency will choose to recruit or promote employees internally. This means that instead of searching for candidates in the general labor market, the company will look at hiring one of its own employees for the position. Companies often choose to hire an internal candidate over an external candidate due to the costs of acquiring new employees, and also on the fact that companies have pre-existing knowledge of their own employees’ effectiveness in the workplace. Additionally, internal recruitment can encourage the development of skills and knowledge because employees anticipate longer careers at the company. However, promoting an employee can leave a gap at the promoted employee’s previous position that subsequently needs to be filled. Traditionally, internal recruitment will be done through internal job postings. Another method of recruiting internally is through employee referrals. Having existing employees in good standing recommend coworkers for a job position is often a preferred method of recruitment because these employees know the values of the organization, as well as the work ethic of their coworkers. Some managers will provide incentives to employees who provide successful referrals.