📄 Abstract
Recruitment practice and labour search theory address the same phenomenon from opposite ends and rarely speak to each other. Human resource management treats sourcing and selection as a process to be optimised on time-to-fill and cost-per-hire; labour economics treats matching efficiency as an unexplained residual in an aggregate matching function. This paper joins the two by writing recruitment process design directly into the matching function, and then costing what that design buys. A recruitment process design index built from sourcing breadth, screening precision, process velocity and offer conversion enters a constant-returns Cobb–Douglas matching function as a multiplicative efficiency shifter. Vacancy duration, mismatch loss and process resource cost are placed on a common per-hire footing and calibrated to Indian IT services for FY2026, using NASSCOM sector aggregates, PLFS labour force estimates and published Indian time-to-fill benchmarks. Four design regimes, from traditional recruitment to fully AI-mediated matching with a human-in-the-loop final interview, are evaluated at point estimates and through a 50,000-draw Monte Carlo simulation. A well-executed AI-mediated design raises matching efficiency by 44.8 per cent, cuts expected time-to-fill from 45 to 31.1 days and lowers total search-and-matching cost per hire by 20.7 per cent. The unconditional expectation across implementation quality is far weaker: mean net gain falls to ₹14,552 per hire and 28.3 per cent of simulated implementations destroy value outright. Velocity gains are near-certain but economically small; the payoff turns on screening precision and on the cost of the algorithmic stack, including bias-audit compliance. Because replacement hiring accounts for 85.1 per cent of gross hires in the sector, roughly a third of the private gain is reallocation between employers rather than new output, implying a private–social wedge of 33.0 per cent that firm-level business cases systematically ignore.
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📚 How to Cite:
Dr. N. Subbu Krishna Sastry, Dr. Manjula Mallya M , RECRUITMENT PROCESS DESIGN AND SEARCH-MATCHING EFFICIENCY , Volume 13 , Issue 8, August 2026, EPRA International Journal of Environmental Economics, Commerce and Educational Management(ECEM) , Pages: 182 - 195 ,