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Article 8: Talent Attraction and Retention: Employer of Choice

Introduction

Every organization is competing for top talent, because skilled people can make the difference. To survive in today's competitive landscape where employee poaching is prevalent, it's crucial for organizations to retain their top-performing employees and foster their commitment to the company. (Mehta, M., Kurbetti, A. and Dhankhar, R., 2014)

According to Kossivi, B., Xu, M. and Kalgora, B. (2016), the most valuable assets in a company are its employees. Their importance to businesses necessitates not only the need to recruit the greatest personnel, but also the need to keep them for an extended period of time. Moreover, the organization's success relies on their ability to keep their talented employees. It's essential for their business to thrive.

Employee turnover is a costly problem for businesses. The expenses associated with replacing an employee can be as much as twice their annual salary. Furthermore, high turnover can negatively impact morale and productivity, and create difficulties in recruiting new talent.

Employer of choice

Baker (2014) shows how modern companies aspire to be world-class employers, but few have the skills to do so, despite their self-proclamations as such. How can one establish themselves as an exemplary employer and be considered a top choice? This can be achieved by creating an inclusive work environment that caters to the changing needs and preferences of both the individual and the organization.
Baker (2014) further explains that a increasing number of firms are adopting a "employer of choice" strategy in today's competitive labor market, offering a variety of employee benefits to draw in and keep qualified individuals. Many businesses, however, merely provide these benefits on a surface level, placing more emphasis on outward looks than genuine value. Modern workers, for the most part, are not influenced by such flimsy assertions; providing meager gifts is insufficient to become a top employer.
The ability to attract and retain top talent is critical given the hypercompetitive nature of the modern workplace. If companies cannot retain their top performers while attracting new talent to their ranks, they risk falling behind their competitors. In today's rapidly evolving and unpredictable business world, becoming a valued employer is critical to staying relevant and thriving.
In order to be an employer of choice, companies need to create a productive workplace culture that moves away from the traditional "us versus them" mentality. This modern culture is still based on the employee-employer relationship, but it stresses a partnership rather than an adversarial dynamic, and it promotes collaboration over competition.
This new employment relationship reflects the evolving needs of the contemporary worker while also supporting the goals of the innovative organization. Such a form of employment is now a critical factor in becoming an employer of choice.
The new employment relations model, as proposed by Baker (2014), examines the changing traditional employment values over time and suggests that management should consider how this will affect the psychological contract. The authors state that the use of a dual perspective is essential for both researchers and practitioners in light of the evolving expectations of employees and the resulting pressures on the psychological contract.
This model is based on research and identifies eight values of the psychological contract or employment relationship.












In the left column, you will find the eight shared values that benefit both the progressive-thinking employee and the contemporary organization.
The Employee mindset presents the suitable perspective for employees.
The right column features the Employer mindset, which shows the appropriate mentality for managers and employers.
If one party doesn't fulfill their duties, it's likely these work values won't exist. In short, these eight values represent the qualities of an exceptional employer.

Let's compare the two tables that are completely opp
  • Specialized Employment vs. Flexible Deployment
    The importance of specialized employment is related to providing possibilities for clearly defined and specialized employment in exchange for a willingness to work in a clearly defined and specialized job field. On the other hand, flexible deployment is described as encouraging individuals to work in various organizational roles in exchange for their readiness to do so.
  • Internal focus to customer focus
    Internal focus means reminding employees to follow company policies and procedures. In return, employees agree to follow those policies and practices. Customer focus means giving employees the information, skills, and processes they need to prioritize customer needs. In exchange, employees work to meet customer needs whenever possible.
  • Job focus to performance focus
    The importance of job focus lies in linking rewards to meeting the demands of the job. This is done in exchange for employees meeting the demands of the job. This is done in exchange for employees focusing on getting the job done rather than just where they work. On the other hand, performance focus means linking rewards and benefits to performance rather than to organizational dependency.
  • Functional-based work to project- based work
    Functional-based work involves structuring work around organizational functions, with employees focusing solely on their job function. On the other hand, project-based work involves structuring work around specific projects rather than organizational functions, with employees accepting that they are project-based workers rather than functional-based employees.
  • Human dispirit and work to human spirit and work
    The idea of providing stable and secure employment in return for employees who value job security is what drives morale and productivity. Conversely, when work provides a sense of purpose for employees who value meaningful work opportunities, morale and productivity flourish.
  • Loyalty to commitment
    Loyalty means that in return for loyalty to the employer, employees are rewarded for their loyalty to the organization. Commitment, on the other hand, involves helping employees achieve their personal goals in exchange for their commitment to helping the organization achieve its goals.
  • Training to learning and development
    Training means providing employees with opportunities to improve their technical skills in exchange for their commitment to obtaining technical certifications. On the other hand, learning and development involve establishing a mutual partnership for employee growth in return for their commitment to a lifelong learning mentality.
  • Closed information to open information
    Closed information means giving employees enough information to do their jobs while following instructions. Open information means giving employees access to a wide range of information, provided they are willing to show initiative and initiative.
The two sets of beliefs in the models are quite different, as you can see from these brief explanations. They represent two different ends of the psychological contract spectrum. These measures help to track the progress of both the employer and the employee in their employment relationship, with the ultimate goal of becoming an employer of choice.

In this video, Baker also explains the benefits of being a preferred employer.


Source: YouTube

Conclusion

In today's global business environment, attracting and retaining top talents are fundamental challenges for organizations. Companies that successfully attract and retain employees gain a competitive advantage over their rivals.
To attract talent, companies must enhance their employment brand by by creating a positive work environment, offering appealing compensation packages, benefits, and career advancement opportunities, all of which are more attractive than their competitors'.
Retaining skilled workers is just as important; companies that don't do this may lose their star performers to competitors.
The way to keep these people is to create an atmosphere that encourages growth, learning, and innovation. Providing clear career paths, opportunities to learn and grow, and rewards for outstanding performance are all critical.
In summary, the attraction and retention of top talent is of critical importance to organizations around the world. To succeed, companies must prioritize their employer brand, offer attractive compensation and benefits, and cultivate a workplace that encourages advancement, growth, and originality.
 

List of references:

Baker, T. (2014) Attracting and Retaining Talent. Linkedin.com [Online]. Available at: https://www.linkedin.com/pulse/20140527075023-14549575-attracting-and-retaining-talent/. Accessed on 28th of August 2023.

Das, B.L. and Baruah, M. (2013) Employee retention: A review of literature. Journal of business and management, 14(2), pp.8-16.

Deskera.com (2023) 10 Ways to Retain Your Top Talent in the Workplace. Deskera.com [Online]. Available at: https://www.deskera.com/blog/retain-talent/. Accessed on 28th of August 2023.

Gering, J. and Conner, J. (2002) 'A strategic approach to employee retention. (Business)', Healthcare Financial Management, 56(11), p.40.

Kossivi, B., Xu, M. and Kalgora, B. (2016) Study on determining factors of employee retention. Open Journal of Social Sciences, 4(05), pp.261-268. doi: 10.4236/jss.2016.45029

Mehta, M., Kurbetti, A. and Dhankhar, R. (2014) Review paper–study on employee retention and commitment. International journal of advance research in computer science and management studies, 2(2), pp. 154-164.

Tiwari, U. and Shrivastava, D., 2013. Strategies and practices of talent management and their impact on employee retention and effectiveness. The International Journal of Management, 2(4), pp.1-10.

Comments

  1. Hi Nirojana,This article provides valuable insights into the significance of attracting and retaining top talent in today's competitive business world. It highlights the need for organizations to establish themselves as employers of choice by fostering a partnership-oriented work culture that prioritizes growth, innovation, and employee development, ultimately contributing to their sustained success in a rapidly evolving landscape

    ReplyDelete
    Replies
    1. Hey Dilanka,
      This article focuses on the importance of attracting and retaining the best employees in today's competitive business environment. A work culture that prioritizes teamwork, improvement, creativity, and employee development can have a significant impact on an organization's long-term success. Thank you for your comment. I appreciate you sharing your thoughts!

      Delete
  2. Hi Niro.
    I wholeheartedly agree with the insights presented in this article. In today's competitive job market, merely proclaiming oneself as an "employer of choice" is insufficient. It requires a genuine commitment to creating an inclusive and productive work environment that caters to the evolving needs of employees. The shift from an adversarial mentality to a partnership-focused culture is indeed pivotal. The article's emphasis on the changing nature of the psychological contract between employers and employees is particularly relevant, highlighting the need for a dual perspective to address evolving expectations and ensure organizations remain attractive and competitive in the modern workforce landscape.

    ReplyDelete
    Replies
    1. Hi Lasantha, thank you for your comments. I agree with you. In today's job market, calling yourself an "employer of choice" isn't sufficient. You need to genuinely commit to building a welcoming and effective workplace that adjusts to the evolving needs of your employees.

      Delete
  3. How can Organization measure the effectiveness of their strategies for attracting and retaining top talent?

    ReplyDelete
    Replies
    1. Hi Deeshan,
      There are a few ways that organizations can measure the effectiveness of their strategies for attracting and retaining top talent:

      **Time to hire: This is the average amount of time it takes to fill a vacant position. A shorter time to hire indicates that the organization is effective at attracting and recruiting top talent.
      **Cost per hire: This is the average amount of money it costs to fill a vacant position. A lower cost per hire indicates that the organization is effective at attracting and recruiting top talent at a reasonable cost.
      **Employee turnover rate: This is the percentage of employees who leave the organization within a given period of time. A lower turnover rate indicates that the organization is effective at retaining top talent.
      **Employee satisfaction: This is the degree to which employees are happy with their work and their organization. A higher employee satisfaction score indicates that the organization is effective at creating a positive work environment that attracts and retains top talent.
      **Employee engagement: This is the degree to which employees are involved in and enthusiastic about their work. A higher employee engagement score indicates that the organization is effective at creating a work environment where employees feel valued and motivated.
      **Employee productivity: This is the amount of work that employees produce. A higher employee productivity score indicates that the organization is effective at creating a work environment where employees are productive.
      By tracking these metrics, organizations can get a better understanding of the effectiveness of their strategies for attracting and retaining top talent. This information can be used to make changes to the strategies as needed to improve their effectiveness.

      Delete
  4. Great article Nirojena! I found it informative as it captures the contemporary struggle for talent, emphasizing the need for organizations to navigate the challenges of employee poaching and high turnover, while highlighting the need for commitment among top performers in an era of fierce competition. Addressing the need for meaningful work, purpose driven cultures emerge as a vital factor in employee retention. Grant et al. (2021) highlights that organizations which creates a sense of purpose tend to experience increased commitment and loyalty among their workforces.

    ReplyDelete
    Replies
    1. Hey Nemanika, thank you.
      The article indeed explains the difficulty companies have in attracting and retaining employees. Especially when other companies are trying to lure them away and there is a high turnover rate. The article you mentiod about Grant et al. (2021) research findings, support the idea that having a clear sense of purpose can enhance employee commitment and loyalty.

      Delete
  5. This article is absolutely on the mark Niro, Any business looking to hire top talent ultimately wants to become an employer of choice. The strategies presented here are not only sensible, but also take into consideration the evolving demands of the workforce today.

    ReplyDelete
    Replies
    1. Hi Randika,
      I'm happy you thought the article was on point! Indeed, lots of companies aim to attract the best employees by being a great employer.

      Delete
  6. Your blog eloquently delves into the concept of becoming an "Employer of Choice" as a strategic approach to talent attraction and retention. Your exploration of the factors that contribute to this status – from cultivating a positive workplace culture to offering growth opportunities – is highly relevant. It's clear that your insights hold the potential to guide organizations toward effectively positioning themselves as sought-after employers, ultimately leading to the acquisition and retention of top-tier talent. Well done!

    ReplyDelete
  7. Hi Niro
    The discussion on becoming an "Employer of Choice" resonates well with the current trends in workforce management. The idea that organizations need to go beyond superficial benefits and create a genuine, inclusive work environment is crucial. The article rightly emphasizes that attracting and retaining top talent is a strategic imperative in the fast-paced business world.

    ReplyDelete
    Replies
    1. Hi Meera, the concept of Employer of Choice is becoming increasingly important in today's competitive business landscape. In order to attract and retain top talent, organizations need to offer more than just competitive salaries and benefits. They need to create a work environment that is supportive, inclusive, and challenging.

      Delete
  8. Hi Niro, This comprehensive article offers a deep dive into the significance of talent attraction and retention in today's competitive business environment, reaffirming the notion that employees remain an organization's most valuable asset (Kossivi, B., Xu, M. & Kalgora, B., 2016). The pressing need to be seen as an 'Employer of Choice' is articulated lucidly, emphasizing the importance of genuine value over superficial offerings, a sentiment that aligns with Baker's (2014) assertion.

    One of the article's strengths is its exploration of the evolving nature of the employment relationship. The dual table model provides an illuminating comparison between traditional and contemporary employment values, offering a lens through which the shifts in workplace expectations and dynamics can be analyzed. The contrast between aspects such as "Specialized Employment vs. Flexible Deployment" and "Closed information to Open information" is particularly intriguing, as it underscores the challenges and opportunities businesses face in adapting to the modern workforce's expectations.

    The conclusion aptly sums up the crux of the issue: in the global business landscape, the onus is on organizations to not only attract but, crucially, to retain top talent. This entails crafting a holistic employee experience – from offering competitive packages to fostering an environment that prioritizes growth, learning, and innovation. As the business ecosystem becomes even more competitive, this focus on becoming a preferred employer is not just commendable but essential for sustainable success.

    Question: Given the emphasis on shifting from a job focus to a performance focus, how can organizations ensure a balance, ensuring employees aren't overwhelmed or burnout?

    ReplyDelete
    Replies
    1. Hi Amal
      That is a great question. It is important for organizations to strike a balance between a job focus and a performance focus, as both are important for employee success.

      Here are some ways that organizations can ensure a balance and ensure employees aren't overwhelmed or burnt out:

      Set clear expectations: Organizations should set clear expectations for employees, both in terms of their job duties and their performance goals. This will help employees to know what is expected of them and to avoid feeling overwhelmed.
      Provide regular feedback: Organizations should provide regular feedback to employees, both positive and negative. This will help employees to track their progress and to identify any areas where they need to improve.
      Offer opportunities for growth: Organizations should offer opportunities for employees to grow and develop their skills. This will help employees to feel challenged and motivated, and it will also help them to avoid feeling bored or stagnant.
      Create a supportive work environment: Organizations should create a supportive work environment where employees feel valued and respected. This will help employees to feel comfortable asking for help when they need it, and it will also help them to avoid feeling stressed or overwhelmed.
      Encourage work-life balance: Organizations should encourage work-life balance by providing flexible working arrangements and by allowing employees to take breaks and vacations. This will help employees to avoid burnout and to maintain a healthy work-life balance.

      Delete
  9. In the interconnected global business world of today, it is not just a good idea but a strategic necessity to recognize and value cultural variety during the hiring process. Geert Hofstede's Cultural Dimensions Theory is a helpful way to understand the big differences between cultures around the world. These differences have a big effect on how candidates are chosen and how hiring is done.
    For example, countries with a high power distance tend to put a lot of emphasis on strict hierarchies and authority, which can affect who gets hired. In countries with low power distance, on the other hand, qualifications and skills are more important. In the same way, individualistic societies put a lot of value on personal achievements, which affects how people are hired. On the other hand, collectivist cultures value teamwork and group unity, which highlights the importance of judging how well a candidate fits in with the team.

    Hofstede's dimensions shed light on these cultural differences, making it easier to understand and appreciate the different views and values that job candidates from different backgrounds bring to the workplace.

    Good work Niro!!

    ReplyDelete
    Replies
    1. Thank you Nalin, as always for your positive feedback. Please read my article 6 'Navigating Cultural Dimensions: Impact on Recruitment and Selection', where I go further into Hofstede's Cultural Dimension'. It is availabel at:
      :https://niroesoft.blogspot.com/2023/08/article-6-navigating-cultural.html.

      Delete
  10. The article adeptly highlights the critical issue of employee turnover and its financial and productivity implications for organizations. It effectively presents the concept of being an "employer of choice" and how it is essential for organizations to not only attract but also retain talented employees. According to Tiwary (2020), While the article provides a thorough overview of strategies to become an "employer of choice" and retain top talent, could you elaborate on how organizations can measure the effectiveness of their efforts in this regard?

    ReplyDelete
    Replies
    1. Hi Divviga,
      There are a few ways that organizations can measure the effectiveness of their strategies for attracting and retaining top talent:

      **Time to hire: This is the average amount of time it takes to fill a vacant position. A shorter time to hire indicates that the organization is effective at attracting and recruiting top talent.
      **Cost per hire: This is the average amount of money it costs to fill a vacant position. A lower cost per hire indicates that the organization is effective at attracting and recruiting top talent at a reasonable cost.
      **Employee turnover rate: This is the percentage of employees who leave the organization within a given period of time. A lower turnover rate indicates that the organization is effective at retaining top talent.
      **Employee satisfaction: This is the degree to which employees are happy with their work and their organization. A higher employee satisfaction score indicates that the organization is effective at creating a positive work environment that attracts and retains top talent.
      **Employee engagement: This is the degree to which employees are involved in and enthusiastic about their work. A higher employee engagement score indicates that the organization is effective at creating a work environment where employees feel valued and motivated.
      **Employee productivity: This is the amount of work that employees produce. A higher employee productivity score indicates that the organization is effective at creating a work environment where employees are productive.
      By tracking these metrics, organizations can get a better understanding of the effectiveness of their strategies for attracting and retaining top talent. This information can be used to make changes to the strategies as needed to improve their effectiveness.

      Delete
  11. Your blog insightfully addresses the imperative of attracting and retaining top talent in the competitive landscape. The mention of Mehta et al. (2014) effectively highlights the significance of talent retention for organizational success. Kossivi et al.'s (2016) emphasis on employees as invaluable assets underscores the need for retaining and nurturing talent.

    Your discussion on becoming an "employer of choice" is insightful, shedding light on the modern strategy of offering meaningful benefits and fostering a collaborative work environment. The comparison between traditional and contemporary employment relationships, as proposed by Baker (2014), adds depth to your analysis. Your evaluation of the eight values of the psychological contract illustrates how progressive employment relations contribute to being an employer of choice.

    Your conclusion aptly summarizes the challenges of talent attraction and retention. You emphasize the role of employer branding, attractive compensation, and nurturing an environment of growth and innovation. Your blog effectively underscores the importance of prioritizing these aspects to succeed in securing and maintaining top talent in the dynamic business landscape.

    ReplyDelete
    Replies
    1. Hi Pavani, thank you for your comment. Glad it was insightfull and indeed when recruiting and selecting employees from different cultures, it is important to be aware of these dimensions and how they might influence the way people communicate, interact, and behave in the workplace.

      Delete
  12. Hi Niro
    Very informative article about retaining top employees in the competitive business world. As you mentioned creating a positive work environment, offering appealing compensation packages, benefits, and career advancement opportunities are crucial factors to retain the top employees and essential for the overall success of the organisation. Thank you for the great article.

    ReplyDelete
  13. You've hit on a major difficulty for modern businesses and described how to overcome it by attracting and retaining the best employees. Your comments highlight the value of great employer branding and a welcoming workplace.
    Your comments highlight the ever-changing nature of the business world's competition for top people. When it comes to attracting and retaining top talent, businesses that put an emphasis on their workers' happiness, professional development, and satisfaction with their work environment tend to come out on top.

    ReplyDelete
    Replies
    1. Hey Menaka, you are correct. Companies that prioritize employee happiness, career growth and overall job satisfaction tend to attract and retain top talent in the competitive business world.

      Delete
  14. Absolutely great article to read. So, Niro I will add some points of this in today’s workplace, if you raise your voice to an employee, you can expect them to begin job searching immediately. Nobody wants to be humiliated in the workplace, and all of the great thing's employers do regularly can be flushed down the toilet after an intemperate moment. Be patient or kiss your best employee's goodbye. Employees want to be with an organization that is ethical and treats them with dignity and respect.
    And the We all want to learn and grow professionally, through formal and informal learning opportunities, training, coaching, and feedback. We also value “on the job” learning through opportunities to work with a variety of individuals, teams, and leaders. Employees want and deserve to feel as though they have a different role each year. Managers should always be talking to them about their next move or level of development. As managers, it is our sacred trust and responsibility to provide the tools, training, coaching, feedback, and performance management for people to succeed and to have a positive career experience. Good managers enjoy coaching and thrive on seeing their teams succeed.

    ReplyDelete
  15. HI Niro ,
    As per your article The concept of an "employer of choice" is becoming increasingly important in today's competitive job market. Employees are more likely to stay with a company that they feel valued and appreciated. They are also more likely to be productive and engaged in their work

    ReplyDelete
    Replies
    1. Hey Maneesha, yes you are correct. People who feel valued and appreciated stay with the company longer. They are also likely to be more productive.

      Delete
  16. Hi Niro ! This article is providing valuable information and insights about the significance of employee retention in the prevailing competitive business world. Further as mentioned nurturing a positive work environment is truly contributing to an organization's sustained success in a long term view. Good Article !

    ReplyDelete
  17. Organization can establish a reputation as an excellent place to work with an emphasis on developing a great workplace culture, providing alluring perks, encouraging career advancement, and exhibiting a dedication to workers' well-being. In a market where jobs are scarce, this will help you draw in and keep top personnel.

    ReplyDelete
  18. The article skillfully draws attention to the important issue of employee turnover and the effects it has on firms' finances and productivity. Agreed with your conclusion, companies that want to prosper must put a high priority on their employer brand, provide competitive pay and benefits, and foster an environment that fosters innovation, growth, and advancement.

    ReplyDelete
  19. Excellent Article!! In addition to the points you've provided, Employee retention refers to an organization's capacity to retain its workers on board, resulting in a more stable and effective workforce. Companies that are concerned about retaining their employees have policies and strategies to reduce employee turnover. (Florentine, 2023)

    People realized that the workplace is about more than just pay. They are more concerned with meaningful employment, work-life balance, and possibilities for advancement.

    They are also conducting 'research' on possible employers, seeking references and first-hand reports on review websites. Glassdoor reports that:

    Before applying for a job, 77% of employees examine the company's culture.
    56% believe that a company's culture is more important than money in determining work happiness.
    63% of UK employees say their business culture is one of the key reasons they stay at their current employment.
    (Winning the War for Talent by Becoming an Employer of Choice, 2022)

    What is your opinion of the long-term impact of being an Employer of Choice on talent acquisition and retention, as well as the organization's overall success?

    ReplyDelete
    Replies
    1. Hi Jenifer,

      The long-term impact on talent acquisition, retention, and overall organizational success of being recognized as an employer of choice can be significant. Here's what I think those impacts look like:

      Talent Acquisition: An organization becomes an attractive destination for top talent when it is viewed as an employer of choice. Qualified candidates actively seek opportunities with such organizations. This reduces recruiting efforts and costs. This can result in a higher caliber talent pool.

      Employee Retention: Being an Employer of Choice fosters a positive working environment and employee satisfaction. Employees are more likely to stay with an organization if they feel valued, engaged, and have opportunities for growth and development. This reduces turnover and associated costs. It also maintains a stable, experienced workforce.

      Competitive advantage: Organizations that are employers of choice often have an edge over their competitors. They can attract and retain the best talent. This leads to higher productivity, innovation and customer satisfaction. This in turn has a positive impact on the company's market position and financial performance.

      Delete
  20. The discourse on becoming an "Employer of Choice" aligns seamlessly with the prevailing patterns in workforce management. The notion of organizations transcending surface-level perks and cultivating an authentic, all-encompassing workplace holds immense significance. The article astutely highlights that securing and retaining top-tier talent stands as a strategic necessity in today's dynamic business landscape.

    ReplyDelete

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