Insider recruitment is not uncommon, especially for HRD.

 

Although insider recruitment is still considered taboo, many companies still do it.

 

As an HRD, getting an insider recruitment or a candidate entering the company through an insider can put you in a dilemma.

 

So what should you do when facing this insider recruitment?     

 

To find the answer, you can read the explanation below:

 

What are the Insider Recruitment Practices?

 

In the world of work, the practice of insider recruitment is often an interesting topic to discuss. Many associate this practice with nepotism in the world of work, where people in the company prioritize acquaintances or relatives to work in the company.

 

However, in reality, this practice is not always considered negative and always leads to nepotism. There is a practice that is actually widely supported by companies, namely employee references or employee referrals. Here is a complete explanation of the practice of nepotism and employee references in insider recruitment:

 

• Nepotism Practices

 

The practice of nepotism in employee recruitment is a situation when a company is forced to accept candidates without considering the qualifications and abilities of the candidates. The practice of nepotism in the workplace is usually carried out by people who have high positions in the company so that they have influence, including to accept candidates. This nepotism usually does not involve HR and does not follow the usual recruitment flow and SOP.

 

The role of HR here is only to take care of administrative documents. However, there is also nepotism that must go through the recruitment process. Usually for this type, the candidate will mention the name of their insider during the interview process. It can also be the other way around, namely the person who is the insider will mention the name of the candidate he brought. Here, the recruitment process including the interview process in it is only a formality.

 

• References from Employees

 

Nepotism in recruitment is illegal and bad, but there are also insider channels that are legal and often done by companies. This practice is known as employee referrals. Employee referrals are often chosen by companies because they are considered to make it easier for companies to get candidates with the same quality as the employees who provide recommendations.

 

In this way, recruitment can also take place faster because HR does not need to start the entire recruitment process from the beginning. HR can also get more information about candidates because they can ask directly to employees who refer them. This practice is often chosen by companies in tech talent, where quality talent is very limited. Not infrequently, there are companies that give rewards to employees who are able to provide recommendations for suitable candidates.

 

What are the Advantages of Insider Recruitment?

 

Not always the recruitment of employees through insiders has a negative impact, there are also advantages to it.

Here is a complete explanation of the advantages of recruiting employees from insiders:

 

• Faster Process

 

The first advantage is the employee recruitment process can be faster. This is because HR does not need to carry out the recruitment process from the beginning, such as creating job descriptions, posting job vacancies, conducting screenings, to the interview process. So, if the usual recruitment process takes up to 2 weeks, with this reference, you can save more time.

 

• More Cost Effective

 

In addition to saving time, this route also saves you money.

If there are usually costs incurred such as for job vacancy advertisements, you can skip this cost with employee references.

Here the company's recruitment budget or cost to hire can be saved and the results can also be more efficient.

 

• Can Find Suitable Candidates

 

By choosing the insider route, namely employee references, companies can also get candidates that fit the company's needs.

This is because employees who provide references usually know what kind of candidates the company needs.

 

• Can Increase HR Productivity

 

For HR, the recruitment process is a long and very tiring process.

So, with this reference, HR does not need to spend a lot of time on the recruitment process.

That way, HR can be more productive in carrying out their work, both in terms of employee development and for managing other employees.

 

What are the Disadvantages of Insider Recruitment?

 

In addition to having advantages and positive impacts, the reality is that the recruitment of employees through insiders has disadvantages or negative impacts.

Here is the full explanation:

 

A. Can Give Rise to Jealousy

 

The first disadvantage is that it can cause jealousy among employees.

However, employees who enter through insiders have a simpler and easier process compared to employees who enter through regular recruitment.

Especially if these employees enter through nepotism, jealousy will increase.

Innate employees can also be called 'golden children' who are considered different from employees who enter through regular channels.

 

B. Increase in Employee Salaries

 

Recruiting employees through insiders can also have a negative impact in the form of employee salary inflation.

This is because they recruit employees who do not match the company's needs, usually only because they are entrusted by people who have positions.

That way the company has to spend money on employee salary payments that should not be necessary.

 

C. Get Competent Employees

 

The last disadvantage is that the company is at risk of getting less competent employees. Often, the recruitment of employees through insiders makes the company accept less competent employees.

Especially if this recruitment is done through nepotism where there is no document selection or examination of candidate competencies. Less competent employees can certainly have a negative impact on employees, where they are less able to contribute to decreased productivity.

 

What are the Rules for Insider Recruitment?

 

Then what are the rules regarding this insider recruitment? To answer the rules regarding the recruitment of employees through insiders, you must know Article 31 of the Manpower Law. 

 

Reported from Hukum Online, Article 31 of the Manpower Law stipulates that every worker has the same rights and opportunities to choose, obtain, or move jobs and earn a decent income domestically and abroad. Employers who need workers can recruit independently or through a workforce placement agency.

 

This workforce recruitment is carried out based on the principles of openness, freedom, objectivity, and equality, and without discrimination. However, for this workforce recruitment, companies are given the freedom to do so. So there are no special rules regarding the law for employees who enter through insiders.

 

Even so, companies should carry out employee recruitment with the principles of openness, freedom, objectivity, fairness, and without discrimination. So, companies should provide suitable jobs according to the abilities and qualifications of the candidates and according to the company's needs.

 

Is Insider Recruitment Prohibited?

 

Then, is insider recruitment prohibited?

Legally, recruitment in this way is not prohibited, but you must be able to distinguish between these types of insider recruitment.

For the referral route, this method is certainly legal and positive, but for the nepotism route, it is illegal.

Nepotism recruitment also has a greater risk because you are recruiting employees with unclear competencies.

Instead of getting candidates according to needs, recruitment with nepotism can have an impact where the employees accepted do not match the company's needs.

 

How to Deal with Insider Recruitment?

 

This insider recruitment must be faced by HRD.

As HRD, you must be able to face this situation and here are some ways you can do to deal with it:

 

A. Keep the Recruitment Process Professional

 

The first way that can be done is to continue to carry out the recruitment process professionally.

Even though the candidates accepted are brought by superiors with higher positions, still apply the recruitment process to select their eligibility.

This is done to ensure that candidates have the qualifications and competencies according to the company's needs.

 

B. Don't Forget to Check the Candidate's Documents

 

Don't forget to check the candidate's documents, even if the candidate enters the company through a special route.

This document is used to check the qualifications required by the company.

This document is for example a CV, cover letter, to a portfolio. 

 

C. Have a Discussion Regarding the Recruitment Process

 

You can also have a discussion regarding the recruitment process with the candidate concerned.

This is done to find out the candidate's relationship with the person who provided the reference or recommended him.

 

D. Implementation of Psychological Tests and Other Technical Tests

 

Continue to conduct psychological tests on all candidates, including candidates who enter through special channels.

Psychological tests and technical tests will help determine whether the competencies possessed by candidates match those needed by the company.

 

E. Stay Professional

 

Make sure you remain professional, even if you know the candidate’s relationship with your boss.

Keep an objective assessment based on the candidate’s abilities.

 

F. Inform Coworkers and Superiors

 

You can also inform your coworkers and superiors about this situation.

This insider hiring is not really your problem, but also the problem of the company and the people in it.

By informing your coworkers and superiors, they can help when problems arise.

 

Conclusion

 

That was the explanation about insider recruitment for you.

 

From the explanation of the article above, it can be seen that insider recruitment is divided into two, namely nepotism and employee references.

 

Although there are no rules prohibiting insider recruitment, as a company you are required to carry out recruitment in an open, fair, objective, equal, and non-discriminatory manner.

 

To facilitate the employee recruitment process in your company, make sure you also manage employees properly and correctly.