7-1

7-2

Recruitment

McGraw-Hill/Irwin
Human Resource Management, 10/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
7-3
Introduction
Before an organization can fill a job vacancy, it must
find people who:
Are qualified for the position
Want the job

Recruitment refers to:

Organizational activities that influence the number
and types of applicants who apply for a job, and
Whether the applicants accept jobs that are offered
7-4
Introduction
Recruitment is often the first contact between the
organization and a prospective employee
Create a positive first impression

During the coming years, the importance of

recruitment will increase
A tight labor market will plague organizations of
all sizes
Many companies have developed retention strategies
7-5
Introduction
Whether people respond to the recruiting effort
depends on the attitudes they have toward:
The tasks
The organization

How difficult the recruiting job is depends on

such things as:
Government and union restrictions
The labor market
The employer’s requirements
Candidates’ preferences
7-6
Government and Union Restrictions
To determine if an organization has violated the law,
government agencies review:
Recruitment sources
Recruiting advertising
Estimates of the firm’s employment needs for the
coming year
The number of applicants processed by demographic
and job category
The evidence was used to verify the legal right to
work
7-7
Government and Union Restrictions
Sound recruiting practices:
Establish general guidelines for recruiters
Make sure applicants complete, sign, and date an
employment application
Use outcome-oriented job descriptions
Use an offer letter than outlines the commitments
the organization is prepared to keep
State that employment is “at-will”
List salary, frequency of pay increases, and benefits
State conditions to which employment may be subject
7-8
Government and Union Restrictions

The Immigration Reform and

Control Acting (IRCA) of 1986
requires employers to:
Screen applicants’ eligibility for
employment
Maintain records demonstrating
employment authorization
The government plans to step up
enforcement of the IRCA
7-9
Government and Union Restrictions
The features of the IRCA fall into four categories:
Employer’s duties:
Avoid recruiting, hiring, or continuing to employ
unauthorized aliens
Verify the identity/work authorization of new
employees
Avoid discrimination on the basis of citizenship
or national origin
Amnesty rights: Certain illegal aliens are eligible
for temporary or permanent resident status
7-10
Labor Market Conditions
If there is a surplus of labor at recruiting time, even
informal attempts will attract sufficient applicants
When full employment is nearly reached, skillful and
prolonged recruiting may be necessary
The state of the economy also affects how many
applicants are available
The current employment picture can be researched
through:
The federal Department of Labor
State divisions of employment security and labor
Boards and journals
7-11
Composition of Labor Force & Location
As legal requirements increase, it becomes more
important to analyze workforce composition
Determine whether the firm’s employment practices
are discriminatory
The number of minorities in the workforce also
depends on the number of minorities in the labor
market
An aggressive diversity management program is
essential
Diversity leads to enhanced competitiveness, higher
productivity, and increased customer satisfaction
7-12
Interaction of Recruits & the Organization

There is a complex interaction between job

applicants and the organization trying to hire them
The techniques used and sources of recruits vary
with the job
An applicant’s abilities and past work experience
affect how they go about seeking a job
7-13
The Organization’s View of Recruiting
Things that affect recruiting from the viewpoint of
the organization:
The recruiting requirements set
Organizational policies and procedures
The organization’s image
7-14
Recruiting Requirements
The process begins with a detailed job description
and job specification
Without these, it is impossible for recruiters to
determine how well any applicant fits the job
The recruiter must know which requirements are
essential and which are merely desirable
This helps avoid unrealistic expectations
7-15
Organizational Policies and Practices
HRM policies and practices can affect recruiting
One of the most significant is hiring from within
Many organizations recruit from outside only at the
initial hiring level
Most employees favor this approach
Some employers feel it helps protect trade secrets
However, an organization may become so stable
that it is set in its ways
Other factors include favoring the disabled, veterans,
or ex-convicts, and nepotism
7-16
Organizational Image

All else being equal, it is easier for an organization

with a positive image to attract and retain employees
Recruitment is also easier for organizations with a
strong community presence or positive name
recognition
7-17
Organizational Image
The job specifications preferred by an organization
may have to be adjusted to meet the realities of:
The labor market
Government or union restrictions
Its policies and procedures
Its image

Iftoo few high-quality people apply for a job:

The job may have to be adjusted to fit the best
applicant, or
Recruiting efforts will have to be increased
7-18
Potential Employee’s View of Recruiting
The applicant’s abilities, attitudes, and preferences
are based on:
Past work experiences
The influence of parents, teachers, and others

These
factors affect recruits in two ways:
How they set their job preferences
How they go about seeking a job
7-19
Preferences of Recruits
Recruits often have a set of job preferences:
Education and skill levels
Geographic location
Salary levels
Advancement opportunities
Such a recruit may not find the “ideal” job
The number of college-level job openings between
now and 2008 will nearly equal the number of
college-educated entrants to the labor force
However, approximately 6 million college graduates
will still be unemployed or under-employed
7-20
Preferences of Recruits
Otherbarriers to finding the ideal job:
Economic conditions
Government and union restrictions
Organizational policies and practices

From the individual’s point of view, choosing an

organization involves:
Choosing an occupation
Choosing an organization to work for within the
broader occupation
7-21
Preferences of Recruits
Occupational choice is most heavily influenced by
parents, followed by:
Teachers
Career counselors
Friends
Relatives

Organizational choice is influenced by:

Corporate image
Corporate size

Satisfaction with the communication during recruitment is critical

7-22
Job Search: The Recruit
People who successfully find the “right job” tend to
follow similar job search processes:
Self-assessment
Information gathering
Networking
Targeting specific jobs
Successful self-presentation
7-23
Job Search: The Recruit
Thepurpose of self-assessments is to recognize your:
Career goals
Strengths and weaknesses
Interests and values
Preferred lifestyles

Information gathering and networking are ways to

generate lists of potential employers and jobs
Information sources include newspapers, trade
publications, college recruitment offices,
organizational “insiders,” and the Internet
7-24
Job Search: The Recruit
When the job seeker has decided where to send a
resume, self-presentation becomes critical
Recruiters want resumes and cover letters that are
tailored to the position and are truthful
The cover letter and resume should include:
The position you seek
Your specific job objectives
Your career objectives
The reason you seek employment
Indication that you know something about the
organization
7-25
Job Search: The Recruit
Not all job seekers provide a truthful resume:
Up to 95 percent of college students are willing to be
less than truthful when searching for a job
In the long run, little can be gained; falsification of an
application is typically grounds for dismissal
Successful job seekers prepare carefully for
interviews
Learn as much about the company as possible
Use “impression management” tactics
7-26
Methods of Recruiting
Most organizations must use both
internal and external sources to
generate sufficient applicants
When there is an inadequate supply
within the organization, it must seek
external candidates
The choice of a recruiting method can
make all the difference in the success
of the recruiting effort
7-27
Internal Recruiting
Job Posting
Skills inventories can be used to identify internal
applicants for job vacancies
It is hard to identify everyone who might be
interested in the opening, so firms use job posting and
bidding
Today, postings are computerized and easily
accessible to employees via the company’s intranet
Software allows employees to match an available
job with their skills and experience
It may also highlight where gaps exist
7-28
Internal Recruiting
Inside Moonlighting and Employees’ Friends
Inside moonlighting may be used when there is:
A short-term shortage
No great amount of additional work
Workers can be enticed to take a “second” job with
bonuses
Moonlighting is so common at some organizations
that HR departments issue moonlighting policies
7-29
Internal Recruiting
Inside Moonlighting and Employees’ Friends
Before going outside to recruit, many organizations
ask employees to encourage friends and relatives to
apply
Some offer “finders fees” for successful referrals
Employee referrals should be used cautiously,
especially if the workforce is already racially or
culturally imbalanced
7-30
External Recruiting
Walk-insare an important source of applicants
As labor shortages increase, however, organizations
must become more proactive in their recruiting efforts
Externalrecruiting can be done through:
Media advertising
E-recruiting
Some job seekers
Employment agencies reverse the process:
they advertise for a
Executive search firms situation wanted
Special-events recruiting
Internships
7-31
Media Advertising
Media include:
Newspapers
Trade/professional publications
Billboards
Subway and bus cards
Radio
Telephone
Television
7-32
Media Advertising
When developing a recruitment advertisement,
begin with the corporate image
Effective recruiting is consistent with overall
corporate image
Recorded want ads are an innovative way to attract
applicants
Help-wanted ads must be carefully prepared
Media must be chosen, coded for study, and analyzed
for impact afterward
Including diversity in ads helps attract applicants
from diverse populations
7-33
E-Recruiting
The Internet has revolutionized organizational
recruitment practices
30,000 websites are devoted to job posting activities
However, 71 percent of all job listings are on a
handful of the “big boards”
Monster.com, CareerBuilder.com, HotJobs.com,
Jobsearch.org
These websites saw huge increases in resumes posted
and visitors in the first month of 2005
Over 96 percent of all U.S. companies now use the
Internet for recruitment activities
7-34
E-Recruiting
The Internet is a popular recruitment tool because:
It is relatively inexpensive
It provides immediate access to thousands of
prospective applicants
It allows searches over broad geographic and
company postings
Some online services, like CareerPath.com, catalog
traditional newspaper recruiting ads
Specialized sites focus on particular fields or areas
Having a human resources Web page is an effective
addition to an overall recruitment strategy
7-35
Employment Agencies/Executive Search
Executive search firms:
Focus on higher-level managerial Organizations pay
positions with salaries of $50,000+ the higher fees
because executive
Are on retainer search firms
Charge higher fees guarantee
confidentiality
Employment agencies:
Deal primarily with middle-level
management and below
Are paid only when they have
provided a new hire
7-36
Special Events Recruiting
Organizations attract applicants
with special events:
Open houses
Scheduled visits to headquarters
Informative literature
Hospitality suites
Speeches
Job fairs
7-37
Special Events Recruiting
Jobfairs:
Can reduce recruiting costs by up to 80 percent
May be scheduled on holidays or weekends to reach
college students and the currently employed
Are especially useful for smaller, less well known
employers
Appeal to job seekers who wish to locate in a
particular area and those wanting to minimize travel
and interview time
7-38
Summer Internships

Organizations hire students as interns during the

summer or part time during the school year
The use of interns is dramatically increasing
Nearly 1 in 3 students at four-year universities will
intern before graduating
7-39
Summer Internships
Internship programs have a number of purposes:
Allows organizations to get specific projects done
Exposes organizations to talented, potential
employees who may become “recruiters” at school
Provides trial-run employment
Can attract the best people where there are labor
shortages
Can improve diversity
7-40
Summer Internships
From the student’s point of view:
An internship means a job with pay
It provides real work experience
There is the potential of a future job
It offers a chance to use one’s talents in a realistic
environment
It may offer course credit hours
7-41
Summer Internships
There are costs to internships:
Interns take up a lot of supervisory time
Their work is not always the best

Some students expect everything to be perfect

When it is not, they become disillusioned
Disillusioned students become reverse recruiters
7-42
College Recruiting
College recruiting can be difficult, time consuming,
and expensive
The typical recruiting sequence:
Students register at the college placement office
During the recruiting season, candidates are told of
scheduled visits
At the placement service, they reserve interviews
and pick up brochures/literature about the firms
The preliminary interviews are held
Before leaving campus, the recruiter invites chosen
candidates to make a site visit
7-43
College Recruiting
Students who are invited to the site:
Are given more job information
Meet potential supervisors and other executives
Are entertained
May be tested

Ifthe visit goes well:

The student is given an offer
Bargaining may take place on salary and benefits
The candidate accepts or rejects the offer
7-44
The Effective College Recruiter
Peoplewho influence the applicant’s job choices:
Peers
Family
Spouse
Friends
Professors
Recruiters

The recruiter is the filter and the matcher, and is an

extension of the organization
7-45
The Effective College Recruiter
Agood recruiter:
Is outgoing, self-motivated, and a good salesperson
Has well-developed interpersonal skills
Is familiar with the company they represent
Characteristics students prefer in a recruiter:
Work experience in their specialties
Personal knowledge of the university
Friendliness and knowledge
Personal interest in the applicant
Truthfulness
Enthusiastic communicator
7-46
The Effective College Recruiter
Major flaws that students find in recruiters:
Lack of interest in the applicant
Lack of enthusiasm
Interviews that are stressful or too personal
Insufficient time allocation

Recruiters can and do make a difference

However, applicant’s decisions are affected more by
the characteristics of the job and the organization
7-47
Realistic Job Previews
When recruiters provide realistic expectations about
the job, turnover of new employees is lower
Most recruiters, however, give glowing descriptions
of the company
Recruitment is more effective when realistic job
previews (RJPs) are used
Pertinent information about the job is given, without
distortion or exaggeration
Most jobs have unattractive features; the RJP presents
the full picture
7-48
Realistic Job Previews
Insert Exhibit 7-3
7-49
Realistic Job Previews
Studies indicate that:
Newly hired employees who received RJPs have a
higher rate of job survival
Employees hired after RJPs have higher satisfaction
RJPs can set the job expectations at realistic levels
RJPs do not reduce the flow of capable applicants

RJPs have beneficial effects

However, there is uncertainty as to why they have the
effects they do and in what contexts they are most
effective
7-50
Alternatives to Recruitment
Overtime
Organizations avoid the cost of recruiting and having
additional employees
Employees earn additional income
Potential problems include fatigue, higher accident
rates, and increased absenteeism
Continuous overtime often results in higher labor
costs and reduced productivity
7-51
Alternatives to Recruitment
Outsourcing
Sometimes called “staff sourcing”
Involves paying a fee to a leasing company or
professional employer organization (PEO) that
handles payroll, benefits, and routine HRM functions
Especially attractive to small and midsize firms that
can’t afford a full-service HR department
Can save 15 to 30 percent of benefit costs
Exercise care when choosing a leasing company;
many are financially unstable
7-52
Alternatives to Recruitment
Temporary Employment
One of the most noticeable effects of the downsizing
epidemic and labor shortages of the past two decades
“Just-in-time” employees staff all types of jobs
(professional, technical, and executive positions)
Nearly 7,000 temporary employment agencies in the
U.S. have been in business for more than one year
7-53
Alternatives to Recruitment
Major advantages of using temporary workers:
Relatively low labor costs
Easily accessible source of experience labor
Flexibility

The cost advantage stems from the fact that

temporary workers do not receive:
Fringe benefits
Training
A compensation and career plan

Temp workers do not know the culture or work flow of the firm
7-54
Cost-Benefit Analysis of Recruiting
Many aspects of recruitment can be evaluated
Recruiters can be assigned goals by type of employee
Sources of recruits can be evaluated by dividing the
number of job acceptances by the number of campus
interviews
Methods of recruiting can be evaluated along various
dimensions, such as the cost of the method divided by
the number of job offer acceptances
7-55
Cost-Benefit Analysis of Recruiting
The quality of a new hire can be evaluated using the
formula QH = (PR + HP + HR)/N
QH = quality of recruits hired
PR = average job performance ratings
HP = percent of new hires promoted within one year
HR = percent of hires retained after one year
N = number of indicators used
Use caution when using the quality-of-hire measure
to evaluate the recruitment strategy
Good employees can be lost for reasons that have
nothing to do with recruiter effectiveness