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HR Planning and Recruiting
Chapter 5
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After studying this chapter, you should beable to:
1. Explain the main techniques used inemployment planning and forecasting.
2. List and discuss the main outside sources ofcandidates.
3. Effectively recruit job candidates.4. Name and describe the main internal sources of
candidates.
5. Develop a help wanted ad.
6. Explain how to recruit a more diverse workforce.
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The Recruitment andSelection Process
1. Decide what positions to fill throughpersonnelplanning and forecasting.
2. Build a candidate pool by recruiting internal or
external candidates.3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having thesupervisor and others interview the candidates.
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FIGURE 51 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the bestcandidate for the job.
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FIGURE 52 Linking Employers Strategy to Plans
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Planning and Forecasting
Employment or Personnel Planning
The process of deciding what positionsthe firm will have to fill, and how to fill
them.
Succession Planning
The process of deciding how to fill thecompanys most important executive
jobs.
What to Forecast?
Overall personnel needs
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Forecasting PersonnelNeeds
Trend Analysis Scatter Plotting
ForecastingTools
Ratio Analysis
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FIGURE 53Determining
theRelationship
Between
Hospital Sizeand Number ofNurses
Note: After fittingthe line, you canproject how manyemployees youllneed, given your
projected volume.
Size of Hospital(Numberof Beds)
Number ofRegistered
Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
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Drawbacks to TraditionalForecasting Techniques
They focus on projections and historicalrelationships.
They do not consider the impact of strategic
initiatives on future staffing levels. They support compensation plans that reward
managers for managing ever-larger staffs.
They bake in the idea that staff increases are
inevitable. They validate and institutionalize present
planning processes and the usual ways of doingthings.
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s ng ompu ers oForecast Personnel
Requirements Computerized Forecasts Software that estimates future staffing
needs by:
Projecting sales, volume of production, andpersonnel required to maintain differentvolumes of output.
Forecasting staffing levels for direct labor,indirect staff, and exempt staff.
Creating metrics for direct labor hours andthree sales projection scenariosminimum,
maximum, and probable.
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FIGURE 54ManagementReplacement
Chart ShowingDevelopment
Needs ofPotentialFuture
Divisional VicePresidents
F ti th
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Forecasting theSupply of Inside
Candidates
Manual Systems
andReplacement
Charts
QualificationInventories
Computerized
InformationSystems
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The Matter of Privacy
Ensuring the Security of HRInformation
Control of HR information throughaccess matrices
Access to records and employee privacy
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FIGURE 55 Keeping Data Safe
1. Perform background checks on anyone who is going to have access to personalinformation.
2. If someone with access to personal information is out sick or on leave, donthire 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 becausesomeone passed five years ago doesnt mean their current situation is the same.
4. Limit access to information such as SSNs, health information, and othersensitive data to HR managers who require it to do their jobs.
Since intruders can strike from outside an organization or from within, HR departmentscan help screen out potential identity thieves by following four basic rules:
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Forecasting OutsideCandidate Supply
Factors In Supply of OutsideCandidates
General economic conditions
Expected unemployment rate
Sources of Information
Periodic forecasts in businesspublications
Online economic projections
U.S. Congressional Budget Office (CBO)
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Effective Recruiting
External Factors Affecting Recruiting
Supply of workers
Outsourcing of white-collar jobs Fewer qualified candidates
Other Factors Affecting Recruiting
Consistency of recruitment withstrategic goals
Types of jobs recruited and recruiting
methods
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Effective Recruiting (contd)
Advantages of CentralizingRecruitment
Strengthens employment brand
Facilitates applying strategic priorities
Reduces duplication of HR activities
Reduces cost of new HR technologies Builds teams of HR experts
Provides better measurement of HR
performance
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Measuring RecruitingEffectiveness
What to
Measure
How to Measure
EvaluatingRecruiting
Effectiveness
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TABLE 51 Selection Devices that Could be Used to Initially ScreenApplicants
Selection DeviceValidity 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 isbetter.
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FIGURE 57 Recruiting Yield Pyramid
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Internal Candidates: Hiringfrom Within
Foreknowledge ofcandidates strengthsand weaknesses
More accurate view ofcandidates skills
Candidates have astronger commitment tothe company
Increases employeemorale
Less training andorientation required
Failed applicantsbecome discontented
Time wasted
interviewing insidecandidates who will notbe considered
Inbreeding strengthenstendency to maintain
the status quo
Advantages Disadvantages
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Finding Internal Candidates
Hiring fromWithin
Job Posting
Succession Planning(HRIS)
Rehiring FormerEmployees
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Outside Sources ofCandidates
1
2
3
4
5
Advertising
Recruiting via the Internet
Employment Agencies
Temp Agencies andAlternative 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 ofCandidates (contd)
Recruiting via the Internet
Advantages
Cost-effective way to publicize job openings
More applicants attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation
Disadvantages
Exclusion of older and minority workers
Excessive number of unqualified applicants
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FIGURE 58 An Indian Online Employment Portal
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FIGURE 59 Ineffective and Effective Web Ads
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Advertising for OutsideCandidates
The Media Choice
Selection of the best medium dependson the positions for which the firm is
recruiting.
Newspapers: local and specific labor markets
Trade and professional journals: specialized
employees Internet job sites: global labor markets
Effective Ads
Create attention, interest, desire, and
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FIGURE 510 Help Wanted Ad That Draws Attention
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Employment Agencies
GovernmentEmploymentExchanges
PrivateAgencies
Types of EmploymentAgencies
NonprofitAgencies
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Outside Sources ofCandidates (contd)
Why Use a Private EmploymentAgency
No HR department: firm lacks recruiting
and screening capabilities.
To attract a pool of qualified applicants.
To fill a particular opening quickly.
To attract more minority or femaleapplicants.
To reach currently employed individuals
who are more comfortable dealing with
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Outside Sources ofCandidates (contd)
Avoiding Problems with EmploymentAgencies
Provide the agency with accurate and
complete job descriptions.
Make sure tests, application blanks, andinterviews are part of the agencys
selection process. Review candidates accepted or rejected
by your firm or the agency foreffectiveness and fairness of agencysscreening process.
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Temp Agencies andAlternative Staffing Benefits of Temps
Increased productivitypaid only whenworking
Allows trial run for prospectiveemployees
No recruitment, screening, and payrolladministration costs
Costs of Temps
Increased labor costs due to fees paidto temp agencies
Tem em lo ees lack of commitment
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Concerns of TempEmployees
Dehumanizing, impersonal, and discouragingtreatment by employers.
Insecurity about employment and pessimismabout the future.
Worry about the lack of insurance and pensionbenefits.
Being misled about job assignments and whether
temporary assignments are likely to become full-time positions.
Being underemployed while trying return to thefull-time labor market.
Anger toward the corporate world and its values;
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FIGURE 511 Guidelines for Using Temporary Employees
1. Do not train your contingent workers. Ask their staffing agency tohandle training.
2. Do not negotiate the pay rate of your contingent workers.Theagency should set pay.
3. Do not coach or counsel a contingent worker on his/her jobperformance. Instead, call the persons agency and request that it do so.
4. Do not negotiate a contingent workers vacations or personal timeoff. Direct the worker to his or her agency.
5. Do not routinely include contingent workers in your companysemployee functions.
6. Do not allow contingent workers to utilize facilities intended foremployees.
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 workerssuitability for them directly. Instead, refer the worker to publiclyavailable job postings.
10. Do not terminate a contingent worker directly. Contact the agency todo so.
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Working with a TempAgency
Invoicing. Make sure the agencys invoice fits yourcompanys needs.
Time sheets. The time sheet is a verification of hoursworked and an agreement to pay the agencys fees.
Temp-to-perm policy. What is the policy if you want to hire atemp as a permanent employee?
Recruitment of and benefits for temp employees. How doesthe agency plan to recruit and what sorts of benefits it will itpay?
Dress code. Specify the attire at each of your offices orplants.
Equal employment opportunity statement. Get a statementfrom the agency that it does not discriminate when filling
temp orders.
Offshoring/Outsourcing
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Offshoring/OutsourcingWhite-Collar and Other
JobsPolitical and MilitaryInstability
CulturalMisunderstandings
Customers securityand privacy concerns
Foreign contracts,liability, and legal
concerns
Special training offoreign employees
Costs of foreignworkers
Resentment andanxiety of U.S.
employees/unions
MainIssues
id f
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Outside Sources ofCandidates (contd)
Executive Recruiters (Headhunters)
Contingent-based recruiters
Retained executive searchers Internet technology and specialization
trends
Guidelines for Choosing a Recruiter1. Make sure the firm is capable of
conducting a thorough search.
2. Meet individual who will handle your
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O id S f
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Outside Sources ofCandidates (contd)
Employee Referrals
Referring employees becomestakeholders.
Referral is a cost-effective recruitmentprogram.
Referral can speed up diversifying the
workforce. Relying on referrals may be
discriminatory.
Walk-ins
I d P d ti it Th h HRIS
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Improved Productivity Through HRIS:An Integrated Technology Approach to
Recruiting
Requisition Management System
Integrated Recruiting Solution
Screening Services
Hiring Management
Integrated EmployeeRecruitment System
R iti A M Di
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Recruiting A More DiverseWorkforce
Single Parents
Older Workers
Welfare-to-Work Minorities andWomen
The Disabled
D l i d U i
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Developing and UsingApplication Forms
Applicantseducation
andexperience
Applicantslikelihood of
success
Applicantsprogress
and growth
Uses ofApplicationInformation
Applicantsemployment
stability
FIGURE 5
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FIGURE 513
Employment
Application
A li ti F d th
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Application Forms and theLaw
Education
Achievements
ArrestRecord
Notification in Caseof Emergency
Memberships inOrganizations
Physical Handicaps
MaritalStatus
HousingArrangements
Areas of PersonalInformation
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K E Y T E R M S
employment or personnelplanning
trend analysis
ratio analysis
scatter plot
computerized forecast
qualifications inventories
personnel replacementcharts
position replacement card
recruiting yield pyramid
job posting
succession planningalternative staffing
on demand recruitingservices (ODRS)
application form
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