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The employment insurance scheme (EIS) can affect the
recruitment and selection process in the organization. This first issue that
arises is on the job application in the organization. Through the EIS, the
employers in the organization have to cooperate with the PERKESO in order to
match the employees’ potential job or their job replacement after they lose
their former job. This issue can affect the recruitment and selection of the
younger generation for the job that being apply. Many young generations out
there, they still have no job and the EIS may limit the total of younger
generation that being recruits in an organization. As part of the EIS, it is
also necessary to have an effective and efficient labour market that allows
workers to quickly find new jobs matching their skills. There must be effective
job search and placement services tailored for retrenched workers (Andrew,
2017). Another issue arises by the EIS is an unsystematic recruitment and
selection process. The employer may advantages this situation as they know that
through this EIS, the PERKESO will always fill the job demand in the
organization due to high number of retrench employees which result to unsystematic
recruitment and selection process. For example, when the organization is seeking
for a new employee they just making an advertisement but no recruitment and selection
process are happen. This is due to PERKESO will help the retrench workers to
fit the job demand in the organization and what is the point of doing recruitment
for the job. This situation will affect the organization productivity and we
know that the policy of recruitment and selection process will change due to
the EIS. This also related to the
scheme might dwell into Active Labour Market Policies (ALMPs) which involve job
seeking, job matching, job placement and many more (Malaysia Employers
Federation, 2017). The ALMPs are currently the responsibility of the Government
for example Jobs Malaysia, and The Institute for Labour Market Information and
Analysis (ILMIA) and is further supported by employers through contributions to
the Human Resource Development Fund (Malaysia Employers Federation, 2017). Other
than that, the recruitment and selection of foreign workers also affected in
the organization. Based on Aruna (2016), most employers would prefer to hire
foreign workers, especially for jobs in factories because they are more
available and affordable. Through the EIS, the organization will have less
opportunity to hire foreign workers for the job demand in their organization.
The PERKESO will actively assist the retrench workers to get a job fit them
inside the organization. The foreign workers will have less chance to be
absorbed in the organization due to a long list of retrench workers to get in
the organization.

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