Performing the function of recruitment i.e., increasing the selection ratio, is not as easy as it seems to be. This is because of the hurdles created by the internal factors and external factors that influence an organization. The first activity of executive recruiting i.e., searching for prospective employees is affected by many factors like organizational policy regarding filling up of certain percentage of vacancies by internal candidates, local candidates, influence of trade unions, government regulations regarding reservations of certain number of vacancies to candidates based on community/region/sex.

As such, the management is not free to find out or develop the source of desirable candidates and alternatively it has to divert its energies for developing the sources within the limits of those factors. The other activity of executive recruitment is affected by the internal factors such as working conditions, promotional opportunities, salary levels, type and extent of benefits, image of the organization and ability and skill of the management to stimulate the candidates.

It is also affected by external factors like personnel policies and practices of various organizations including working conditions, salary, benefits, promotional opportunities, and career opportunities in other organizations. However, formulating sound policies can minimize the degree of complexity of recruitment function.

The recruitment policy of any organization is derived from the personnel policy of the same organization. In other words, the former is a part of the latter. However, recruitment policy by itself should take into consideration personnel policies of other organizations regarding merit, internal sources. Recruitment policy should commit itself to the organization personnel policy like enriching the organization human resources or serving the community by absorbing the disadvantaged people of the society. Motivating the employees through internal promotions and improving the employee loyalty to the organization by absorbing the retrenched or laid off employees or temporary employees or dependents of former employees.