HR Planning and Recruiting

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Chapter 5

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After studying this chapter, you should be able to:

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Explain the main techniques used in employment planning and forecasting. List and discuss the main outside sources of candidates. Effectively recruit job candidates. Name and describe the main internal sources of candidates. Develop a help wanted ad. Explain how to recruit a more diverse workforce.

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The Recruitment and Selection Process

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Decide what positions to fill through personnel planning and forecasting. Build a candidate pool by recruiting internal or external candidates. Have candidates complete application forms and undergo initial screening interviews. Use selection tools to identify viable candidates. Decide who to make an offer to, by having the supervisor 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 best candidate 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 positions the firm will have to fill, and how to fill them. The process of deciding how to fill the companys most important executive jobs. Overall personnel needs

Succession Planning

What to Forecast?
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Forecasting Personnel Needs

Forecasting Tools

Trend Analysis

Ratio Analysis

Scatter Plotting

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FIGURE 53 Determining the Relationship Between Hospital Size and Number of Nurses
Note: After fitting the line, you can project how many employees youll need, given your projected volume. Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900 Number of Registered Nurses 240 260 470 500 620 660 820 860

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Drawbacks to Traditional Forecasting Techniques

They focus on projections and historical relationships. 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 doing things.

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Computerized Forecasts

Using Computers to Forecast Personnel Requirements

Software that estimates future staffing needs by:

Projecting sales, volume of production, and personnel required to maintain different volumes of output. Forecasting staffing levels for direct labor, indirect staff, and exempt staff. Creating metrics for direct labor hours and three sales projection scenariosminimum, maximum, and probable.

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FIGURE 54 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

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Forecasting the Supply of Inside Candidates

Qualification Inventories

Manual Systems and Replacement Charts

Computerized Information Systems

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The Matter of Privacy

Ensuring the Security of HR Information

Control of HR information through access matrices Access to records and employee privacy

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FIGURE 55

Keeping Data Safe

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: Perform background checks on anyone who is going to have access to personal information. If someone with access to personal information is out sick or on leave, dont hire a temporary employee to replace him or her. Instead, bring in a trusted worker from another department. Perform random background checks such as random drug tests. Just because someone passed five years ago doesnt mean their current situation is the same. Limit access to information such as SSNs, health information, and other sensitive data to HR managers who require it to do their jobs.

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Forecasting Outside Candidate Supply

Factors In Supply of Outside Candidates

General economic conditions Expected unemployment rate Periodic forecasts in business publications Online economic projections
U.S. Congressional Budget Office (CBO)

Sources of Information

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Effective Recruiting

External Factors Affecting Recruiting

Supply of workers Outsourcing of white-collar jobs Fewer qualified candidates Consistency of recruitment with strategic goals

Other Factors Affecting Recruiting

Types of jobs recruited and recruiting methods 4/16/12

Effective Recruiting (contd)

Advantages of Centralizing Recruitment

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 4/16/12

Measuring Recruiting Effectiveness

Evaluating Recruiting Effectiveness

What to Measure

How to Measure

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TABLE 51

Selection Devices that Could be Used to Initially Screen Applicants Validity for Predicting Job Performance*

Selection Device
Construct General mental ability tests Conscientiousness tests Integrity tests Method Work sample tests Job knowledge tests Structured interviews Biographical data Grade point average Ratings of training and experience

0.51 0.31 0.41

0.54 0.48 0.51 0.35 0.23 0.11

Note: *Higher is better. 4/16/12

FIGURE 57

Recruiting Yield Pyramid

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Internal Candidates: Hiring from Within

Advantages Disadvantages

Foreknowledge of candidates strengths and weaknesses More accurate view of candidates 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

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Finding Internal Candidates

Job Posting Rehiring Former Employees

Hiring from Within

Succession Planning (HRIS)

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Locating Outside Candidates

1 2 3 4 5 Recruiting via the Internet Advertising Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing

Outside Sources of Candidates

6 7 8 9 Executive Recruiters On Demand Recruiting Services (ODRS) College Recruiting Referrals and Walk-ins

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Outside Sources of Candidates (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

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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 Outside Candidates

The Media Choice

Selection of the best medium depends on 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 4/16/12

attention, interest, desire, and

FIGURE 510

Help Wanted Ad That Draws Attention

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Employment Agencies
Types of Employment Agencies

Government Employment Exchanges

Nonprofit Agencies

Private Agencies

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Outside Sources of Candidates (contd)

Why Use a Private Employment Agency

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 female applicants.

To reach currently employed individuals 4/16/12 who are more comfortable dealing with

Outside Sources of Candidates (contd)

Avoiding Problems with Employment Agencies

Provide the agency with accurate and complete job descriptions. Make sure tests, application blanks, and interviews are part of the agencys selection process.

Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agencys 4/16/12 screening process.

Temp Agencies and Alternative Benefits of Temps Staffing

Increased productivitypaid only when working Allows trial run for prospective employees No recruitment, screening, and payroll administration costs Increased labor costs due to fees paid to temp agencies Temp employees lack of commitment

Costs of Temps

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Concerns of Temp Employees

Dehumanizing, impersonal, and discouraging treatment by employers. Insecurity about employment and pessimism about the future. Worry about the lack of insurance and pension benefits. Being misled about job assignments and whether temporary assignments are likely to become fulltime positions. Being underemployed while trying return to the full-time labor market.
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Anger toward the corporate world and its values;

FIGURE 511
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Guidelines for Using Temporary Employees

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 persons agency and request that it do so. 4. Do not negotiate a contingent workers vacations or personal time off. Direct the worker to his or her agency. 5. Do not routinely include contingent workers in your companys 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 workers suitability for them directly. Instead, refer the worker to publicly available job postings. 10. Do not 4/16/12 terminate a contingent worker directly. Contact the agency to do so.

Working with a Temp Agency

Invoicing. Make sure the agencys invoice fits your companys needs. Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agencys fees. Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee? Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay? Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling 4/16/12 orders. temp

Offshoring/Outsourcing White-Collar and Other Jobs

Political and Military Instability Resentment and anxiety of U.S. employees/unions Cultural Misunderstandings

Main Issues
Costs of foreign workers Customers security and privacy concerns

Special training of foreign employees

Foreign contracts, liability, and legal concerns

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Outside Sources of Candidates (contd)

Executive Recruiters (Headhunters)

Contingent-based recruiters Retained executive searchers Internet technology and specialization trends Make sure the firm is capable of conducting a thorough search. Meet individual who will handle your

Guidelines for Choosing a Recruiter

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Outside Sources of Candidates (contd)

College Recruiting

On-site visits

On-campus recruiting goals

Invitation letters

Assigned hosts To determine if the candidate is worthy of further consideration Information

To attract good candidates packages

Planned interviews Timely employment offer Follow-up

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2009 Dorling

Outside Sources of Candidates (contd)

Employee Referrals

Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce. Relying on referrals may be discriminatory.

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Walk-ins

Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting

Requisition Management System Integrated Employee Recruitment System Integrated Recruiting Solution Screening Services Hiring Management

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Recruiting A More Diverse Workforce

Single Parents The Disabled Older Workers

Welfare-to-Work

Minorities and Women

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Developing and Using Application Forms

Uses of Application Information

Applicants education and experience

Applicants progress and growth

Applicants employment stability

Applicants likelihood of success

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FIGURE 5 13 Employmen t Application

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Application Forms and the Law

Education Achievements Housing Arrangements Arrest Record

Areas of Personal Information

Marital Status Notification in Case of Emergency

Physical Handicaps

Memberships in Organizations

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KEY TERMS
employment or personnel planning trend analysis ratio analysis scatter plot computerized forecast qualifications inventories personnel replacement charts position replacement card recruiting yield pyramid job posting succession planning alternative staffing on demand recruiting services (ODRS) application form

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