Retrenchment, Online Recruitment


Retrenchment is a term used to describe when a business decides to significantly cut or scale-back its activities.

Retrenchment might occur when one or more of the following happen to a business:

  •  Reduce output & capacity
  • Job losses / redundancy programmes
  • Product / market withdrawal
  • Disposal of business unit
  • Scaling back planned capital investment

Retrenchment normally arises from decisions to change strategic direction, which in turn usually happens because of one or more of the following:

  • New leadership (usually a new CEO)
  • Excessively-high costs and low profitability (or unsustainable losses)
  • Low ROCE
  • Excessively high gearing (leading to cash flow problems)
  • Loss of market share
  • A failed takeover or merger
  • Economic downturn
  • Change of ownership

Implications of Retrenchment for Change Management

A decision to adopt a strategy of retrenchment by definition involves change for a business. Can this change be implemented successfully? Much depends on the circumstances, scale and scope of the retrenchment. 

  • Small-scale, incremental retrenchment has only limited impact
  • Significant retrenchment is often associated with a fundamental reappraisal of the business – and therefore with complex and costly change management

Some of the key implications of retrenchment for change management are summarised in the table below:

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Online Recruitment

The E-Recruitmentalso called as Online Recruitment, is the process of hiring the potential candidates for the vacant job positions, using the electronic resources, particularly the internet.

Nowadays, companies make use of the internet to reach a large number of job seekers and hire the best talent for the company at a less cost, as compared to the physical recruitment process.

E-Recruitment includes the entire process of finding the prospective candidates, assessing, interviewing and hiring them, as per the job requirement. Through this, the recruitment is done more effectively and efficiently.

Generally, the job vacancies are advertised on the world wide web (www), where the applicants attach their CV or resume, to get recognized by the potential recruiters or the employers.

The companies undertake their online promotional activities via their official websites, wherein the complete information about the corporation is enclosed. Through this information, the prospective candidate could decide whether to be a part of a firm or not. Thus, the firm’s official website is considered to be an essential element of E-Recruitment.

Advantages of E-Recruitment

  • Low cost per candidate, as compared to the physical recruitment process.
  • Wide geographical coverage, i.e. the candidates can be hired from any part of the world.
  • Beneficial for both the employer and the job seeker, the corporations can find the prospective candidates through their CVs attached to world wide web, and similarly, the candidates can search the employer through their job vacancy advertisement posted on the internet.
  • Less time required in hiring the potential candidate for the firm.
  • Right people for the right job can be easily found through E-Recruitment, by matching the candidate’s CVs with the job profile.
  • The recruitment process becomes more efficient and easy to record details of the applicant.

The E-Recruitment software and systems are available, through which the entire recruitment process becomes automated. One of the systems is the Recruitment Management System, which is a portal that involves hiring the candidates online and each step involved in the recruitment process is automatized.

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