Chapter 7 Recruiting in Labor Markets
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Transcript of Chapter 7 Recruiting in Labor Markets
Copyright © 2005 Thomson Business & Professional Publishing.All rights reserved.
ROBERT L. MATHIS
JOHN H. JACKSON
PowerPoint Presentation by Charlie CookThe University of West Alabama
Recruiting in Labor MarketsRecruiting in Labor Markets
Chapter 7Chapter 7
SECTION 2SECTION 2Staffing theStaffing the
OrganizationOrganization
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7–2
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
• After you have read this chapter, you should be able to:
Identify different ways that labor markets can be identified and approached.
Discuss the advantages and disadvantages of internal and external recruiting.
Specify three internal sources for recruiting and issues associated with their use.
List and briefly discuss five external recruiting sources.
Explain why Internet recruiting has grown and how employers are conducting it.
Discuss three factors to consider when evaluating recruiting efforts.
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7–3
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
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7–4
Strategic Strategic Recruiting StagesRecruiting Stages
Strategic Strategic Recruiting StagesRecruiting Stages
Figure 7–1
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7–5
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.
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7–6
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
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7–7
Labor Market ComponentsLabor Market ComponentsLabor Market ComponentsLabor Market Components
Figure 7–2
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7–8
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
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7–9
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
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7–10
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
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7–11
Typical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: RecruitingTypical Division of HR Responsibilities: Recruiting
Figure 7–3
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7–12
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
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7–13
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.
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7–14
Recruiting and Diversity ConsiderationsRecruiting and Diversity ConsiderationsRecruiting and Diversity ConsiderationsRecruiting and Diversity Considerations
Figure 7–4
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7–15
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
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7–16
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
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7–17
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
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7–18
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.
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7–19
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
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7–20
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
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7–21
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
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7–22
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
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7–23
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
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7–24
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
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7–25
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.
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7–26
Sample Sample Recruiting Recruiting Evaluation Evaluation PyramidPyramid
Sample Sample Recruiting Recruiting Evaluation Evaluation PyramidPyramid
Figure 7–7