1. HR Glossary
2. Requisition

Requisition | Meaning, Definition, and Types

A requisition is a formal organizational request for a workforce, goods, services, or equipment. They are a fundamental tool in the human resources (HR) function, serving as the initial step in the recruitment and selection process. With this, the process becomes more streamlined, and the organization can attract and hire top talent to meet the specific needs of the vacant position. The process is quite challenging as HR professionals have to maintain operational efficiency and ensure that the most suitable candidates are extended the job offer through a standardized system.

What is Requisition

A requisition is a request made by an employee for goods or services. This request goes to the purchasing department or person in charge of buying in the company. If they approve the request, they will create a purchase order (PO) to send to a supplier for the items or services needed. This type of request is also called a purchase requisition.

It is accustomed to requesting equipment or furniture needed in the office space and hiring new talent, generally known as workforce acquisition. A particular department initiates the hiring process to request additional manpower. Recruitment software can be used to find the right talent faster.

Types of Requisitions

Depending on the nature of the request, they can be categorized into various types. Here is a brief overview of the different types.

1. Job requisition

This type of request initiates the hiring process for the specific position vacant in the company. This includes job title, description, educational qualifications, experience, salary range, and other relevant details.

2. Transfer or Promotion requisition

Transfer here means a request to transfer an employee to a different position, location, or department. This includes the employee’s current position, requested position, and reasons for transfer. Promotion here means a request to promote the employee to a higher position. This includes the employee’s current position, desired position, performance evaluation, etc.

3. Training requisition

This type of request involves training or development opportunities for employees. It includes details like the employee’s basic details, the training program’s name, and the justification.

4. Equipment Requisition

As the name suggests, this type of request involves purchasing equipment or supplies to help an employee or department perform their job more efficiently. The item description, quantity, budget, and justification are included.

5. Expense Reimbursement Requisition

This type of request is made when an employee pays on behalf of the organization for items or services and then seeks reimbursement for them. One of the most common examples is travel expense claims; expense management software helps claim the expense back. For this, you must submit the documents and receipts as proof and justify the costs made.

6. Candidate Quality

Candidate quality means candidates who do not meet the criteria and requirements needed for the position. Screening and selecting suitable candidates can be challenging and time-consuming.

Purpose of Requisition

A requisition is mainly used to request from the department officially. It can be used in many ways, some of which are mentioned to help you better understand the topic.

1. Initiating the Talent acquisition

One important branch of the purpose is talent acquisition, which starts with finding and hiring new talent. This situation arises when any department sees the need for new employees, makes the official request to the HR department, and hires new talent. The need for new talent can arise for many reasons, like some employees leaving the company, opening new job roles, or increasing the client base, which requires more employees to keep up with the demand.

2. Resource Management

The need for acquisition is wider than hiring talent; it is also related to resource management. The departments and teams in the organization can request resources like office furniture, laptops, software licenses, etc., which are required to help them do their jobs better. Another aspect is inventory control and obtaining resources, such as raw materials, working hours, and supplies, whenever required. Budget and cost management helps the departments with the purchase cost, letting the finance teams know and managing the budget. They can use this information to find the best price from the suppliers.

Components of a Requisition

After thoroughly understanding the purposes, let’s discuss the different components. The components are mentioned below.

1. Job information

As one of the main components, job information includes the job title and the specific position required and requested. This consists of the department or division in which the requirement has been made and important details like the job description, responsibilities, required qualifications, etc.

2. Applicant Information

Some basic details about the employee, such as the name and position (if a transfer, specify the current department within the organization), are needed.

3. Requisition Details

It includes details like the number, a unique identifying number, and the date the form was submitted. It also includes the request's priority, which is its urgency or importance.

4. Qualifications and Experience

One essential component of the process is the educational qualifications necessary for the position, such as education, certifications, and experience. In addition, additional skills are requested but only sometimes needed.

5. Salary Range

One important recruitment component is the salary range offered to the candidate for the position. The salary structure, such as basic pay, incentives, benefits, etc., must be explained to the candidate.

6. Approval Process

Authorization requires several specific approvals, which can be done by departmental heads, senior managers, and executive managers. Signatures are also needed.

Process of Creating a Requisition

The process of creating a requisition is mentioned below.

1. Identifying The Need

Start with clearly defining the needs, as this is the first step in the process. It begins when the authorized department or the manager identifies the need for a new employee or resource. This need can arise due to a high workload, a new project that requires new and particular set of talent or due to someone leaving the organization.

2. Complete Requisition Form

Use precise information in the form, starting with accurate terminology stating the model name, brand, and number to avoid misunderstandings. Specify the quantity needed to prevent overspending the allocated budget, like 10 units required for 10 employees. To be more precise, include specifications, drawings, diagrams, or blueprints because providing visual aids to vendors helps them better understand the requirements.

The following step involves filling out special forms with all the job details. The HR department does this after taking all the necessary details from the department, including the job title, job description, educational qualifications, salary range, etc.

3. Obtain Approvals

Once the forms are filled out, they undergo the approval process. The approval process and the time taken depend on the organization's levels or hierarchy. The head of the department or managers generally approves the recruiting request. Ensure that the request aligns with the company’s goals and budget constraints.

4. Posting the job

After approval, the next step is posting the job vacancy on every portal and platform, such as LinkedIn, Indeed, or Naukri.com. HR professionals can share the same through references, third-party companies, or agencies.

5. Screening and interviews

This is one of the most important steps, as HR professionals have to select resumes and conduct interviews with them. They perform the initial screening process and conduct the interviews with the objective of finding a suitable candidate for the vacant position.

6. Selection and offer

After reviewing multiple resumes, HR professionals must select the best candidate for the job that fits the role and the extent of the job offer. This stage also includes specific negotiable terms like incentives, salary, and other relevant details.

7. Onboarding

The last stage includes onboarding once the candidate has accepted the job offer. This includes administrative duties, such as getting the candidate to provide the necessary paperwork, setting up their paycheck, conducting the induction process, and introducing them to the organization’s culture and policies.

Common Challenges in Managing Requisitions

Organizations must address related challenges, and here are some of the common challenges faced by the company. Although these challenges are not the same as recruitment challenges, they still play an essential role in the hiring process.

1. Improperly Positioned

Sometimes, these processes may not be accurately framed and may be incorrect, like job requirements, leading to mismatched applications and candidates. They may also set unrealistic expectations for the described job or vacancy, making it difficult to find the right candidate.

2. Talent Shortages

One of the prominent challenges faced by organizations is skill gaps, which make it difficult to find the right candidates with the necessary skills and experience. Not only this, but other firms are also trying to attract top talent, which gives them a competitive edge.

3. Budget Constraint

Budget constraints are one of the most common challenges faced. Organizations may need more budgets for the hiring or recruitment process, making it difficult to fill positions. Salary negotiations can also be challenging at times. There might be times when the budget gets overspent or fails due to financial constraints.

4. Time Constraint

Sometimes, there is an urgency to fill out the positions because of the pressure on the HR professionals, and not only this, but multiple positions must be filled simultaneously, which can be time-consuming.

5. Regulatory Compliance

Maintaining a regulatory complaince can be tricky sometimes due to regular changes in the laws and regulations. Make sure to adhere to the non-discriminating laws and equal opportunity to all.

6. Internal Mobility

Sometimes, employees resist promotions and transfers due to personal or professional reasons. The organizational structure also restricts or limits internal mobility opportunities.

Conclusion

Requisitions play a vital role in the HR function, serving as the foundation for the recruitment and selection process. Effective management is essential for organizations to attract and hiring qualified candidates who meet their specific needs. By following best practices for development, communication, and evaluation, organizations can ensure that their hiring efforts are aligned with their strategic goals and contribute to the business's success.

FAQs

What is Requisition in business?

It is a formal request for products or services from a company's purchasing department. It's the first step in the purchasing process and is typically initiated by an employee or department.

Why Are Requisitions Necessary?

It helps streamline the procurement process, ensure that purchases are authorized and tracked, and maintain budget control.

What is a Job Requisition?

A job requisition is a formal request that department managers use to ask for new employees. It explains the need for hiring and outlines the budget required for the new hire.

What Are the Key Components of a Requisition?

The key components include item description, quantity, department, budget, approval, justification, delivery address, purchase order number, and vendor information.

What Are Some Best Practices for Managing Requisitions?

Best practices include standardizing the process, establishing clear approval procedures, implementing a tracking system, providing employee training, and regularly reviewing and updating procedures.

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