PESTLE Analysis

A PESTLE analysis is a common research method used when undertaking a macro-environmental investigation. In recruitment, it is important to conduct a PESTLE analysis when working internationally to fully understand the challenges a business may face, and the potential opportunities a country could offer a candidate. This analysis includes researching the political, economic, social, technological, legal, and environmental factors, all of which can have a strong impact on an organisation and employees, and often cannot be controlled. Research can be conducted, but with factors often being unpredictable, it is important to create alternative strategies and not solely rely on first results.

Political factors in the recruitment world can relate to numerous topics including; health, education, a countries stability, employment etc. This is important when talking to candidates about relocating as they may have a family to consider alongside the job role itself. It is important to be aware of threats a country may be facing to allow you to be sympathetic towards a candidate’s concerns and also be alert to any changes that may affect the recruitment process. It is also important to be aware of a country’s strengths and opportunities so you can inform candidates of the benefits available.

Economic factors are really important for businesses and candidates. They can affect the total company profit and the overall value of remuneration on offer to the employee. Researching exchange rates, inflation, interest, and tax, which all directly affect business profit and candidate salary, is critical as they may influence a candidates decision on accepting a role.

Social considerations are extremely important when considering relocation as it directly impacts the candidate’s lifestyle. Researching and understanding cultural and social differences are vital to ensure the candidate is fully aware of the environment they will be living and working in. If this isn’t fully understood and accepted, it risks the longevity of the candidate’s placement in the role.

Technological developments in a country are important to understand as it reveals if a business can operate in the same way it currently does and also, if they can keep up with competitors in the local market. Technological factors include the country’s knowledge, experience, network coverage, availability etc. Some countries are much more advanced than others which offers opportunities for new initiatives, but also the threat that they may be behind the curve on arrival. On a personal level, it needs to be understood what technology they currently have access to and if they will suffer a loss, or gain new technological advancements.

There are copious legal factors to be researched and understood and some individuals will be more concerned about certain regulations than others. Legal implications may have a cultural impact on the candidate’s family and lifestyle, such as strict laws on drinking, dress, and behaviour in public. It is also important from a recruitment perspective to be aware of employment and discrimination laws to guarantee career security.

Environmental factors include the location, climate, access to raw materials, energy availability, the country’s attitude or laws involving the environment, and much more. It is important to understand the environment that may become a candidate’s home to ensure their expectations are realistic and they are ultimately going to be happy there.

All the factors above cannot be controlled but can be researched to detect and understand the potential risks so a response strategy can be created. It is also a chance to uncover new opportunities and USPs which may make the role more appealing than first thought.

It is important to conduct a PESTLE analysis when advertising roles in new countries in order to sell the role in its entirety – painting a true picture of the role and the lifestyle achievable.