7–1

Chapter 7Chapter 7Chapter 7Chapter 7

Recruiting in Labor Markets

7–2

Strategic Approach to RecruitingStrategic Approach to RecruitingStrategic Approach to RecruitingStrategic Approach to Recruiting

• Benefits of a Strategic Approach Matches recruiting activity with organizational and human

resource plans.

• Acquiring the Right Human Capital Entails: Knowing the business and industry to successfully recruit

qualified employees Identifying keys to success in the labor market, including ways to

deal with competitors’ recruiting efforts Cultivating networks and relationships with sources of

prospective employees Promoting the company brand so that the organization becomes

known as a good place to work Creating recruiting metrics in order to measure the effectiveness

of recruiting efforts

7–3

Strategic Strategic Recruiting StagesRecruiting Stages

Strategic Strategic Recruiting StagesRecruiting Stages

Figure 7–1

7–4

Recruiting and Labor MarketsRecruiting and Labor MarketsRecruiting and Labor MarketsRecruiting and Labor Markets

• RecruitingThe process of generating a pool of qualified

applicants for organizational jobs

• Labor MarketsThe external supply pool from which organizations

attract their employees

• Tight versus Loose Labor MarketsLow unemployment creates competition for

employees, raising labor costs.High unemployment results the availability of more

applicants and more qualified applicants.

7–5

Labor Market ComponentsLabor Market ComponentsLabor Market ComponentsLabor Market Components

• Labor Force PopulationAll individuals who are available for selection if all

possible recruitment strategies are used.

• Applicant PopulationA subset of the labor force that is available for

selection using a particular recruiting approach.

• Applicant PoolAll persons who are actually evaluated for selection

7–6

Labor Market ComponentsLabor Market ComponentsLabor Market ComponentsLabor Market Components

Figure 7–2

7–7

Recruiting DecisionsRecruiting DecisionsRecruiting DecisionsRecruiting Decisions

• Recruiting methodAdvertising medium chosen, including use of

employment agencies

• Recruiting message What is said about the job and how it is said

• Applicant qualifications required Education level and amount of experience necessary,

for example

• Administrative procedures When recruiting is done, applicant follow-up, and use

of previous applicant files

7–8

Labor Markets and RecruitingLabor Markets and RecruitingLabor Markets and RecruitingLabor Markets and Recruiting

Labor MarketLabor MarketCharacteristicsCharacteristics

Labor MarketLabor MarketCharacteristicsCharacteristics

IndustryIndustryandand

OccupationalOccupationalMarketsMarkets

KSAs KSAs

IndustryIndustryandand

OccupationalOccupationalMarketsMarkets

KSAs KSAs

GeographicGeographicMarketsMarkets

Local, RegionalLocal, RegionalNationalNational

InternationalInternationalGlobal Global

GeographicGeographicMarketsMarkets

Local, RegionalLocal, RegionalNationalNational

InternationalInternationalGlobal Global

Educational Educational andand

TechnicalTechnicalMarketsMarkets

QualificationsQualifications

Educational Educational andand

TechnicalTechnicalMarketsMarkets

QualificationsQualifications

7–9

Strategic Recruiting DecisionsStrategic Recruiting DecisionsStrategic Recruiting DecisionsStrategic Recruiting Decisions

• Organization-Based vs. Outsourced RecruitingHR knows organization bestOutsourcing frees up time and decreases HR Staff

• Professional Employer Organizations (PEOs) and Employee LeasingSaves HR costs but increases total payroll costs Increases compliance with government regulations

and requirements.Benefits may be more available

7–10

Typical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: Recruiting

Figure 7–3

7–11

Effective RecruitingEffective RecruitingEffective RecruitingEffective Recruiting

RecruitingRecruitingPresence and ImagePresence and Image

RecruitingRecruitingPresence and ImagePresence and Image

Training of Training of RecruitersRecruiters

Training of Training of RecruitersRecruiters

Regular vs. Flexible Regular vs. Flexible StaffingStaffing

Regular vs. Flexible Regular vs. Flexible StaffingStaffing

EffectiveEffectiveRecruitingRecruiting

EffectiveEffectiveRecruitingRecruiting

7–12

Regular vs. Flexible StaffingRegular vs. Flexible StaffingRegular vs. Flexible StaffingRegular vs. Flexible Staffing

• Flexible StaffingThe use of workers who are not traditional

employees.Temporary workers

Hiring temporary staff members or contracting with agencies supplying temporary workers on a rate-per-day or rate-per-week basis.

Independent contractorsWorkers who perform specific services on a

contract basis.

7–13

Recruiting and Diversity ConsiderationsRecruiting and Diversity ConsiderationsRecruiting and Diversity ConsiderationsRecruiting and Diversity Considerations

Figure 7–4

7–14

Recruiting Diverse WorkersRecruiting Diverse WorkersRecruiting Diverse WorkersRecruiting Diverse Workers

• Older WorkersMid-life career changers: Those who are burned out

in their jobs and career fields and leave voluntarily to try new fields

Displaced older workers: Those who have worked but have been displaced, often involuntarily, through job reductions or plant closings

Retirees: Those who took early retirement buyouts or formally retired from prior jobs

• Individuals with Disabilities

7–15

Advantages and Disadvantages of Internal Advantages and Disadvantages of Internal and External Recruiting Sourcesand External Recruiting Sources

Advantages and Disadvantages of Internal Advantages and Disadvantages of Internal and External Recruiting Sourcesand External Recruiting Sources

Figure 7–5

7–16

Internal RecruitingInternal RecruitingInternal RecruitingInternal Recruiting

• Organizational DatabasesProfiles containing background and KSA information

on current employees that allow for key word searches to locate suitable candidates for open positions and career development.

• Job PostingA system in which the employer provides notices of

job openings and employees respond by applying.

• Promotions and TransfersUpward and lateral movements of employees

7–17

Employee-Focused RecruitingEmployee-Focused RecruitingEmployee-Focused RecruitingEmployee-Focused Recruiting

• Current-Employee ReferralsA reliable source composed of acquaintances,

friends, and family members of employees that are recommended by current employees.

Can violate EEO regulations if it is the sole source of applicants.

• Re-recruiting of Former Employees and Applicants Individuals who have left for other jobs might be

willing to return.

7–18

External RecruitingExternal RecruitingExternal RecruitingExternal Recruiting

Employment AgenciesEmployment Agenciesand Headhuntersand Headhunters

Employment AgenciesEmployment Agenciesand Headhuntersand Headhunters

College and College and

University RecruitingUniversity Recruiting

College and College and

University RecruitingUniversity RecruitingHigh Schools and High Schools and Technical SchoolsTechnical Schools

High Schools and High Schools and Technical SchoolsTechnical Schools

LaborLabor

UnionsUnions

LaborLabor

UnionsUnions

External External RecruitingRecruitingSourcesSources

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

CompetitiveCompetitive

SourcesSources

CompetitiveCompetitive

SourcesSources

7–19

What to Include in an Effective Recruiting AdWhat to Include in an Effective Recruiting AdWhat to Include in an Effective Recruiting AdWhat to Include in an Effective Recruiting Ad

Figure 7–6

7–20

Internet Recruiting MethodsInternet Recruiting MethodsInternet Recruiting MethodsInternet Recruiting Methods

Job BoardsJob BoardsJob BoardsJob Boards

Professional/Professional/Career Web SitesCareer Web Sites

Professional/Professional/Career Web SitesCareer Web Sites

Employer Web SitesEmployer Web SitesEmployer Web SitesEmployer Web Sites

E-RecruitingE-RecruitingMethodsMethods

E-RecruitingE-RecruitingMethodsMethods

7–21

Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)

• Advantages

Recruiting cost savings

Recruiting time savings

Expanded pool of applicants

Morale building for current employees

• Disadvantages

More unqualified applicants

Additional work for HR staff members

Many applicants are not seriously seeking employment

Access limited or unavailable to some applicants

7–22

Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)

• Legal Issues in Internet recruiting

The use (or misuse) of screening software

Exclusion of protected classes from the process

Collection of federally required applicant information

Identification of “real” applicants

Online Informality that leads to improper discussions or information

7–23

Recruiting Evaluation and MetricsRecruiting Evaluation and MetricsRecruiting Evaluation and MetricsRecruiting Evaluation and Metrics

Evaluating Evaluating Recruiting Recruiting

SatisfactionSatisfaction

Evaluating Evaluating Recruiting Recruiting

SatisfactionSatisfaction

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating the Time the Time

Required to Required to Fill Fill

OpeningsOpenings

Evaluating Evaluating the Time the Time

Required to Required to Fill Fill

OpeningsOpenings

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Recruiting EffortsEvaluating Recruiting EffortsEvaluating Recruiting EffortsEvaluating Recruiting Efforts

7–24

General Recruiting Process MetricsGeneral Recruiting Process MetricsGeneral Recruiting Process MetricsGeneral Recruiting Process Metrics

• Yield ratios A comparison of the number of applicants at one stage of the

recruiting process to the number at the next stage.

• Selection rate The percentage hired from a given group of candidates.

• Acceptance Rate The percent of applicants hired divided by total number of

applicants.

• Success Base Rate Comparing the percentage rate of past applicants who were

good employees to that of current employees.

7–25

Sample Sample Recruiting Recruiting Evaluation Evaluation PyramidPyramid

Sample Sample Recruiting Recruiting Evaluation Evaluation PyramidPyramid

Figure 7–7