1 Personnel Planning and Recruiting Chapter 5. 5–2 FIGURE 5–1Steps in Recruitment and Selection...
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Transcript of 1 Personnel Planning and Recruiting Chapter 5. 5–2 FIGURE 5–1Steps in Recruitment and Selection...
5–2
FIGURE 5–1 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
5–4
Planning and ForecastingPlanning and Forecasting
• Employment or Personnel PlanningEmployment or Personnel Planning The process of deciding what positions the firm The process of deciding what positions the firm
will have to fill, and how to fill them.will have to fill, and how to fill them.
• Succession PlanningSuccession Planning The process of deciding how to fill the company’s The process of deciding how to fill the company’s
most important executive jobs.most important executive jobs.
• What to Forecast?What to Forecast? Overall personnel needsOverall personnel needs
The supply of inside candidatesThe supply of inside candidates
The supply of outside candidatesThe supply of outside candidates
5–5
Forecasting Personnel NeedsForecasting Personnel Needs
Trend Analysis Scatter Plotting
ForecastingTools
Ratio Analysis
5–6
FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses
Note: After fitting the line, you can project how many employees you’ll need, given your projected volume.
Size of Hospital (Number of Beds)
Number of Registered
Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
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Drawbacks to Traditional Forecasting Drawbacks to Traditional Forecasting TechniquesTechniques
• They focus on projections and historical relationships.They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives They do not consider the impact of strategic initiatives on future staffing levels.on future staffing levels.
• They support compensation plans that reward They support compensation plans that reward managers for managing ever-larger staffs.managers for managing ever-larger staffs.
• They “bake in” the idea that staff increases are They “bake in” the idea that staff increases are inevitable.inevitable.
• They validate and institutionalize present planning They validate and institutionalize present planning processes and the usual ways of doing things.processes and the usual ways of doing things.
5–8
Using Computers to Forecast Personnel Using Computers to Forecast Personnel RequirementsRequirements
• Computerized ForecastsComputerized Forecasts
Software that estimates future staffing needs by:Software that estimates future staffing needs by:
Projecting sales, volume of production, and Projecting sales, volume of production, and personnel required to maintain different volumes personnel required to maintain different volumes of output.of output.
Forecasting staffing levels for direct labor, indirect Forecasting staffing levels for direct labor, indirect staff, and exempt staff.staff, and exempt staff.
Creating metrics for direct labor hours and three Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, sales projection scenarios—minimum, maximum, and probable.and probable.
5–9
Forecasting the Supply of Forecasting the Supply of Inside CandidatesInside Candidates
Manual Systems and Replacement
Charts
Qualification Inventories
Computerized Information
Systems
5–10
The Matter of PrivacyThe Matter of Privacy
• Ensuring the Security of HR InformationEnsuring the Security of HR Information
Control of HR information through access matricesControl of HR information through access matrices
Access to records and employee privacyAccess to records and employee privacy
• Legal ConsiderationsLegal Considerations
The Federal Privacy Act of 1974The Federal Privacy Act of 1974
New York Personal Privacy Act of 1985New York Personal Privacy Act of 1985
HIPAAHIPAA
Americans with Disabilities ActAmericans with Disabilities Act
5–11
FIGURE 5–5 Keeping Data Safe
1. Perform background checks on anyone who is going to have access to personal information.
2. If someone with access to personal information is out sick or on leave, don’t hire a temporary employee to replace him or her. Instead, bring in a trusted worker from another department.
3. Perform random background checks such as random drug tests. Just because someone passed five years ago doesn’t mean their current situation is the same.
4. Limit access to information such as SSNs, health information, and other sensitive data to HR managers who require it to do their jobs.
Since intruders can strike from outside an organization or from within, HR departments can help screen out potential identity thieves by following four basic rules:
5–12
Forecasting Outside Candidate SupplyForecasting Outside Candidate Supply
• Factors In Supply of Outside CandidatesFactors In Supply of Outside Candidates General economic conditionsGeneral economic conditions
Expected unemployment rateExpected unemployment rate
• Sources of InformationSources of Information Periodic forecasts in business publicationsPeriodic forecasts in business publications
Online economic projectionsOnline economic projections
U.S. Department of Labor’s O*NETU.S. Department of Labor’s O*NET™™
Bureau of Labor Statistics (BLS)Bureau of Labor Statistics (BLS)
Other federal agencies and private sourcesOther federal agencies and private sources
5–13
Effective RecruitingEffective Recruiting
• What Makes Recruiting a challengeWhat Makes Recruiting a challenge Consistency of recruitment with strategic goalsConsistency of recruitment with strategic goals Types of jobs recruited and recruiting methodsTypes of jobs recruited and recruiting methods Nonrecruitment HR issues and policiesNonrecruitment HR issues and policies Public image of the firmPublic image of the firm Employment lawsEmployment laws
5–14
Effective Recruiting (cont’d)Effective Recruiting (cont’d)
• Advantages of Centralizing RecruitmentAdvantages of Centralizing Recruitment
Facilitates applying strategic prioritiesFacilitates applying strategic priorities
Reduces duplication of HR activitiesReduces duplication of HR activities
Reduces cost of new HR technologiesReduces cost of new HR technologies
Builds teams of HR expertsBuilds teams of HR experts
Provides better measurement of HR performanceProvides better measurement of HR performance
Allows for sharing of applicant poolsAllows for sharing of applicant pools
5–15
TABLE 5–1 Selection Devices that Could be Used to Initially Screen Applicants
Selection Device Validity for Predicting Job
Performance*
Construct
General mental ability tests 0.51
Conscientiousness tests 0.31
Integrity tests 0.41
Method
Work sample tests 0.54
Job knowledge tests 0.48
Structured interviews 0.51
Biographical data 0.35
Grade point average 0.23
Ratings of training and experience 0.11
Note: *Higher is better.
Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.
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Internal Candidates: Hiring from WithinInternal Candidates: Hiring from Within
• Foreknowledge of candidates’ strengths and weaknesses
• More accurate view of candidate’s skills
• Candidates have a stronger commitment to the company
• Increases employee morale
• Less training and orientation required
• Failed applicants become discontented
• Time wasted interviewing inside candidates who will not be considered
• Inbreeding strengthens tendency to maintain the status quo
Advantages Disadvantages
5–18
Finding Internal CandidatesFinding Internal Candidates
Hiring from Within
Job Posting
Succession Planning (HRIS)
Rehiring Former Employees
Succession PlanningSuccession Planning
• Identify key needsIdentify key needs• Develop inside candidatesDevelop inside candidates• Assess and chooseAssess and choose
5–19
5–20
Outside Sources of CandidatesOutside Sources of Candidates
1
2
3
4
5
Advertising
Recruiting via the Internet
Employment Agencies
Temp Agencies and Alternative Staffing
Offshoring/Outsourcing
6
7
8
9
On Demand Recruiting Services (ODRS)
Executive Recruiters
College Recruiting
Referrals and Walk-ins
Locating Outside Candidates
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Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• Recruiting via the InternetRecruiting via the Internet AdvantagesAdvantages
Cost-effective way to publicize job openingsCost-effective way to publicize job openings More applicants attracted over a longer periodMore applicants attracted over a longer period Immediate applicant responsesImmediate applicant responses Online prescreening of applicantsOnline prescreening of applicants Links to other job search sitesLinks to other job search sites Automation of applicant tracking and evaluationAutomation of applicant tracking and evaluation
DisadvantagesDisadvantages Exclusion of older and minority workersExclusion of older and minority workers Excessive number of unqualified applicantsExcessive number of unqualified applicants Personal information privacy concerns of applicantsPersonal information privacy concerns of applicants
5–22
FIGURE 5–9 Ineffective and Effective Web Ads
Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.
5–23
Advertising for Outside CandidatesAdvertising for Outside Candidates
• 1.The Media Choice1.The Media Choice Selection of the best medium depends on the Selection of the best medium depends on the
positions for which the firm is recruiting.positions for which the firm is recruiting.
Newspapers: local and specific labor marketsNewspapers: local and specific labor markets
Trade and professional journals: specialized Trade and professional journals: specialized employeesemployees
Internet job sites: global labor marketsInternet job sites: global labor markets
• 2.Constructing the Ad2.Constructing the Ad Create attention, interest, desire, and action (AIDA).Create attention, interest, desire, and action (AIDA).
Create a positive impression of the firm.Create a positive impression of the firm.
5–24
FIGURE 5–10 Help Wanted Ad That Draws Attention
Source: The New York Times, May 13, 2007, Business p. 18.
5–25
Employment AgenciesEmployment Agencies
Public Agencies
Private Agencies
Types of Employment
Agencies
Nonprofit Agencies
5–26
Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• Why Use a Private Employment AgencyWhy Use a Private Employment Agency
No HR department: firm lacks recruiting and No HR department: firm lacks recruiting and screening capabilities.screening capabilities.
To attract a pool of qualified applicants.To attract a pool of qualified applicants.
To fill a particular opening quickly.To fill a particular opening quickly.
To attract more minority or female applicants.To attract more minority or female applicants.
To reach currently employed individuals who are To reach currently employed individuals who are more comfortable dealing with agencies.more comfortable dealing with agencies.
To reduce internal time devoted to recruiting.To reduce internal time devoted to recruiting.
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Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• Avoiding Problems with Employment AgenciesAvoiding Problems with Employment Agencies Provide the agency with accurate and complete job Provide the agency with accurate and complete job
descriptions.descriptions.
Make sure tests, application blanks, and interviews Make sure tests, application blanks, and interviews are part of the agency’s selection process.are part of the agency’s selection process.
Review candidates accepted or rejected by your firm Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of or the agency for effectiveness and fairness of agency’s screening process.agency’s screening process.
Screen agency for effectiveness in filling positions.Screen agency for effectiveness in filling positions.
Supplement the agency’s reference checking by Supplement the agency’s reference checking by checking the final candidate’s references yourself.checking the final candidate’s references yourself.
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Temp Agencies and Alternative StaffingTemp Agencies and Alternative Staffing
• Benefits of TempsBenefits of Temps Increased productivityIncreased productivity—p—paid only when workingaid only when working
Allows “trial run” for prospective employeesAllows “trial run” for prospective employees
No recruitment, screening, and payroll No recruitment, screening, and payroll administration costs administration costs
• Costs of TempsCosts of Temps Increased labor costs due to fees paid to temp Increased labor costs due to fees paid to temp
agenciesagencies
Temp employees’ lack of commitment to the firmTemp employees’ lack of commitment to the firm
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Concerns of Temp EmployeesConcerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment Dehumanizing, impersonal, and discouraging treatment by employers.by employers.
• Insecurity about employment and pessimism about the Insecurity about employment and pessimism about the future.future.
• Worry about the lack of insurance and pension benefits.Worry about the lack of insurance and pension benefits.• Being misled about job assignments and whether Being misled about job assignments and whether
temporary assignments are likely to become full-time temporary assignments are likely to become full-time positions.positions.
• Being “underemployed” while trying return to the full-Being “underemployed” while trying return to the full-time labor market.time labor market.
• Anger toward the corporate world and its values; Anger toward the corporate world and its values; expressed as alienation and disenchantment.expressed as alienation and disenchantment.
5–30
FIGURE 5–11 Guidelines for Using Temporary Employees
Source: Adapted from Bohner and Selasco, “Beware the Legal Risks of Hiring Temps,” Workforce, October 2000, p. 53.
1. Do not train your contingent workers. Ask their staffing agency to handle training.
2. Do not negotiate the pay rate of your contingent workers. The agency should set pay.
3. Do not coach or counsel a contingent worker on his/her job performance. Instead, call the person’s agency and request that it do so.
4. Do not negotiate a contingent worker’s vacations or personal time off. Direct the worker to his or her agency.
5. Do not routinely include contingent workers in your company’s employee functions.
6. Do not allow contingent workers to utilize facilities intended for employees.
7. Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval.
8. Do not let managers discuss harassment or discrimination issues with contingent workers.
9. Do not discuss job opportunities and the contingent worker’s suitability for them directly. Instead, refer the worker to publicly available job postings.
10. Do not terminate a contingent worker directly. Contact the agency to do so.
5–31
Working with a Temp AgencyWorking with a Temp Agency• Invoicing.Invoicing. Make sure the agency’s invoice fits your company’s Make sure the agency’s invoice fits your company’s
needs.needs.
• Time sheets.Time sheets. The time sheet is a verification of hours worked and The time sheet is a verification of hours worked and an agreement to pay the agency’s fees.an agreement to pay the agency’s fees.
• Temp-to-perm policy.Temp-to-perm policy. What is the policy if you want to hire a temp What is the policy if you want to hire a temp as a permanent employee?as a permanent employee?
• Recruitment of and benefits for temp employees.Recruitment of and benefits for temp employees. How does the How does the agency plan to recruit and what sorts of benefits it will it pay?agency plan to recruit and what sorts of benefits it will it pay?
• Dress code.Dress code. Specify the attire at each of your offices or plants. Specify the attire at each of your offices or plants.
• Equal employment opportunity statement.Equal employment opportunity statement. Get a statement from Get a statement from the agency that it does not discriminate when filling temp orders.the agency that it does not discriminate when filling temp orders.
• Job description information.Job description information. Ensure that the agency understands Ensure that the agency understands the job to be filled and the sort of person you want to fill it.the job to be filled and the sort of person you want to fill it.
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Offshoring/Outsourcing White-Collar Offshoring/Outsourcing White-Collar and Other Jobsand Other Jobs
Political and Military Instability
Cultural Misunderstandings
Customers’ security and
privacy concerns
Foreign contracts, liability, and legal
concerns
Special training of foreign employees
Costs of foreign workers
Resentment and anxiety of U.S.
employees/unions
MainIssues
5–33
Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• Executive Recruiters (Headhunters)Executive Recruiters (Headhunters) Contingent-based recruiters(50-150,000$)Contingent-based recruiters(50-150,000$) Retained executive searchers(150,000 or more)Retained executive searchers(150,000 or more)
• Guidelines for Choosing a RecruiterGuidelines for Choosing a Recruiter
1.1. Make sure the firm is capable of conducting a Make sure the firm is capable of conducting a thorough search.thorough search.
2.2. Meet individual who will handle your assignment.Meet individual who will handle your assignment.
3.3. Ask how much the search firm charges.Ask how much the search firm charges.
4.4. Never rely solely on the recruiter to do reference Never rely solely on the recruiter to do reference checking.checking.
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Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• College RecruitingCollege Recruiting On-campus recruiting On-campus recruiting
goalsgoals
To determine if the To determine if the candidate is worthy of candidate is worthy of further considerationfurther consideration
To attract good To attract good candidatescandidates
On-site visitsOn-site visits
Invitation lettersInvitation letters
Assigned hostsAssigned hosts
Information packagesInformation packages
Planned interviewsPlanned interviews
Timely employment Timely employment offeroffer
Follow-upFollow-up
InternshipsInternships
5–35
Outside Sources of Candidates (cont’d)Outside Sources of Candidates (cont’d)
• Employee ReferralsEmployee Referrals Referring employees become stakeholders.Referring employees become stakeholders.
Referral is a cost-effective recruitment program.Referral is a cost-effective recruitment program.
Referral can speed up diversifying the workforce.Referral can speed up diversifying the workforce.
Relying on referrals may be discriminatory.Relying on referrals may be discriminatory.
• Walk-insWalk-ins Seek employment through a personal direct approach to Seek employment through a personal direct approach to
the employer.the employer.
Courteous treatment of any applicant is a good business Courteous treatment of any applicant is a good business practice.practice.
• TelecommutersTelecommuters
5–36
FIGURE 5–12 Best Recruiting Sources
Percentage of employers reporting best-performing sources for hiring without regard to cost, 2004.
Source: Workforce Management, December 2004, p. 98.
Note: Survey of 2,294 organizations.
5–37
Improved Productivity Through HRIS:Improved Productivity Through HRIS:An Integrated Technology Approach to RecruitingAn Integrated Technology Approach to Recruiting
Requisition Management System
Integrated Recruiting Solution
Screening Services
Hiring Management
Integrated Employee Recruitment System
5–38
Recruiting A More Diverse WorkforceRecruiting A More Diverse Workforce
Single Parents
Older Workers
Welfare-to-WorkMinorities and
Women
The Disabled
5–39
Developing and Using Application FormsDeveloping and Using Application Forms
Applicant’s education and
experience
Applicant’s likelihood of
success
Applicant’s progress and
growth
Uses of Application Information
Applicant’s employment
stability