1 Personnel Planning and Recruiting Chapter 5. 5–2 FIGURE 5–1Steps in Recruitment and Selection...

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Personnel Planning and RecruitingPersonnel Planning and Recruiting

Chapter 5Chapter 5

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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.

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FIGURE 5–2 Linking Employer’s Strategy to Plans

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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

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Forecasting Personnel NeedsForecasting Personnel Needs

Trend Analysis Scatter Plotting

ForecastingTools

Ratio Analysis

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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.

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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.

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Forecasting the Supply of Forecasting the Supply of Inside CandidatesInside Candidates

Manual Systems and Replacement

Charts

Qualification Inventories

Computerized Information

Systems

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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

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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:

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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

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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

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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

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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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FIGURE 5–7 Recruiting Yield Pyramid

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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

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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

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Outside Sources of CandidatesOutside Sources of Candidates

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2

3

4

5

Advertising

Recruiting via the Internet

Employment Agencies

Temp Agencies and Alternative Staffing

Offshoring/Outsourcing

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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

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FIGURE 5–9 Ineffective and Effective Web Ads

Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.

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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.

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FIGURE 5–10 Help Wanted Ad That Draws Attention

Source: The New York Times, May 13, 2007, Business p. 18.

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Employment AgenciesEmployment Agencies

Public Agencies

Private Agencies

Types of Employment

Agencies

Nonprofit Agencies

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• 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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• 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.

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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.

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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

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• 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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• 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

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• 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

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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.

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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

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Recruiting A More Diverse WorkforceRecruiting A More Diverse Workforce

Single Parents

Older Workers

Welfare-to-WorkMinorities and

Women

The Disabled

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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

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Application Forms and the LawApplication Forms and the Law

Education Achievements

Arrest Record

Notification in Case of

Emergency

Memberships in Organizations

Physical Handicaps

Marital Status

Housing Arrangements

Areas of Personal Information

1 Personnel Planning and Recruiting Chapter 5. 5–2 FIGURE 5–1Steps in Recruitment and Selection...

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