Recruitment policy of an organization is affected by various factors. External factors are concerned with the environmental changes that will take place in the external environment of the organization. The external factors are those factors which cannot be controlled by the organization. Some of the external factors that affect recruitment policy are as follows:
- Demographic factors
A demography is the study of human population in terms of age, sex, occupation, religion, composition, ethnicity etc. The demographic factors have a profound influence on the recruitment process.
- Labor market
Labor market constitutes the force of demand and supply of labor of particular importance. For instance, if demand for a particular skill is high relative to its supply, the recruitment process evolves more efforts. Contrary to it, if supply is more than demand, the recruitment process will be easier.
- Unemployment situations
An unemployment rate of a particular area is yet another influencing factor of the recruitment process. If the unemployment rate is high, the recruitment process will be simpler and vice versa.
- Social and political environment
The forces of the social and political environment also influence recruitment policy. For instance, the change in government can have a direct impact on recruitment policy of the company due to change in government rules and regulations.
- Legal considerations
Legal considerations with regard to employment provision for under-privileged castes etc. will have a positive impact on recruitment policy of the organization.
The recruitment policies of the competitors also affect the recruitment function of the organizations. To face the competition, many times the organizations have to change their recruitment policies according to the policies being followed by the competitors.