In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. At this point it is important to consider both the internal and external factors that can have an impact on the recruitment of employees. The external factors are those out-with the powers of the organization and include issues such as current and future trends of the labor market e.g. skills, education level, government investment into industries etc. On the other hand internal influences are easier to control, predict and monitor, for example management styles or even the organizational culture. In order to know the business environment in which any organization operates, three major trends should be considered:

• Demographics – the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.
• Diversity – the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of female employees in comparison to thirty years ago. Also over recent years organizations have become more culturally diverse and have increased the number of working patterns (part-time, casual, seasonal positions) to cope with the changes in both society and the global market. It is important to note here that an organization must consider the ethical and legal implications of their decisions in relation to the HRM policies they enact to protect employees. Employers have to be acutely aware of the rise in discrimination, unfair dismissal and sexual/racial harassment cases in recent years and the detrimental effects this can have on the employees and the organization. Anti-discrimination legislation over the past 30 years has provided a foundation for an increasing interest in diversity at work which is “about creating a working culture that seeks, respects and values difference.”
• Skills and qualifications – as industries move from manual to a more managerial professions so does the need for more highly skilled graduates. If the market is ‘tight’ i.e. not enough staff for the jobs, employers will have to compete for employees by offering financial rewards, community investment, etc.

In regards to how individuals respond to the changes in a labour market the following should be understood:

• Geographical spread – how far is the job from the individual? The distance to travel to work should be in line with the pay offered by the organization and the transportation and infrastructure of the area will also be an influencing factor in deciding who will apply for a post.
• Occupational structure – the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure namely craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).
• Generational difference –different age categories of employees have certain characteristics, for example their behaviour and their expectations of the organization.

Recruitment methods are wide and varied, it is important that the job is described correctly and any personal specifications stated. Job recruitment methods can be through job centres, employment agencies/consultants, headhunting, and local/national newspapers. It is important that the correct media is chosen to ensure an appropriate response to the advertised post.