Informal Recruitment – Meaning, Advantages and Disadvantages

Informal methods of recruitment and selection always have been into debate among HR experts and consultants across the globe because it is against the standard HR principles and practice. But still it exist because it gives lot of benefits to the employers. Informal recruitment methods generate better selection in the professional and qualified jobs as well when compare to formal methods.

If organization hire the employees without following the complete procedure of recruitment and selection then these methods will be called informal methods like walk in interview given by employee without job announcement, applicant refer by existing employees.

Word-of-Mouth (WOM) recruitment is commonly used and followed informal method across the globe with irrespective the sector and technology but the percentage vary from country to country. WOM is a reference to passing or communicate the information from person to person. WOM recruitment is getting the references from the current employee, personal contacts and other sources. Thanks to the advances technology, it will help to pass the information faster via email, telephone, and text messaging.

Advantages of  Informal Recruitment

Informal recruitment method is a cost effective method for companies. Low financial cost is the primary reason that firms use informal method when compare to formal methods.

Informal recruiting methods reduce the firms advertisement expenses, other search related expenses. It requires only minimal effort and will save of lot of time. Informal selection and recruitment provide more benefits to the recruiting firms because they can find better applicants it will maximize job match. Some firms provide bonus to their employee for good referrals, so employees will try to find the best profile to get bonus, it will help the organization to acquire the best talent and will benefit the employees to utilize the bonus scheme. An employee recruited into a job by friends or family and other closer reference will perform well and follow the organization rules to maintain the social relationship.  The employees who have been hired to serve the organization, they are very comfortable because they have not to go through lengthy process. Informal methods reduce the screening cost and increase the candidate quality. Recommendation and referrals from the trusted sources becomes best quality applicant. For small companies it will reduce the back ground check cost and other administration related expenses.

Disadvantages of  Informal Recruitment

As a nature to it close reference groups. It is very limited with respect to the number of applicant. The vacancy position is not known to the public so obviously it will reduce the scope for the innovation idea to the organisation from outside. Each department within the firms can raid for the best candidate, it will leads to conflict between department and some time it will act against company integrity. Large firms can’t rely on informal methods, as the need more number of employees. In newly started firms recruiting through informal methods such word of mouth or references is a difficult task, especially for foreign subsidiaries it is more complicated process.

Recruitment provides a firm with bulk of applicants who would like to work for them. Selection is the process where the firm decides which of these applicants is suitable for them based on the matching process; it will provide the offer of employment to the applicant. A match occurs when an applicant accepts an offer of employment from the organisation. Interviews, the monitoring and targeting of disadvantaged groups, Psychometric testing, assessment centers are the common selection methods widely used across the countries.

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