Mgmt440 t04 Recruiting

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Paul L. Schumann, Ph.D.Professor of Management

MGMT 440: Human Resource Management

1 2008 by Paul L. Schumann. All rights reserved.


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Outliney Hiring Process & Recruiting Goal

y Recruiting Philosophy

y Exempt vs. Nonexempt Jobsy Target Market for Recruiting

y Recruiting Methods

y Evaluation & Benchmarking of Recruiting

y Countercyclical Hiring

yApplicants Point of View

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Goal: Match Person & Job

y Recruit applicants who are a good match for the job

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Hiring Process & Goalsy Hiring Goal: Hire an

applicant who is a good

match with the joby Recruiting Goal: Recruit

a pool of well-qualifiedapplicants

Source of figure: Fisher, Schoenfeldt, &Shaw (2006), Figure 6.1, p. 233

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Recruiting Philosophyy Recruit internally or externally or both?

y Short-run (fill vacancies) vs. long-run (hire for careers)

view of recruiting?y Role of diversity in the organization?

y Marketing orientation to applicants?

y Ethics in recruiting?

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Internal vs. External Recruiting?Advantages of Internal Disadvantages of Internal

y Know more about internal

applicants than externaly Enhances motivation of

current employees

y Reduces training costs

y Faster and less expensive

y Increased job security forcurrent employees

y May not have enough

applicants with desiredqualifications

y Ripple effect

y Possibly bureaucratic &cumbersome procedures

y Inbred organization

y May make achieving diversitygoals more difficult

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Internal vs. External Recruiting?Advantages of External Disadvantages of External

y Brings in new ideas

y Avoids ripple effecty May make achieving diversity

goals easier

y Handle rapid growth

y

Get people with up-to-dateeducation and training

y Shakeup the organization

y Can be more expensive &

time-consumingy Hiring mistakes may be more

likely

y Reduced promotionopportunities might be

discouraging for currentemployees

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Short-run vs. Long-run View?Short-run View Long-run View

y Goal: Hire the applicant who

is well-qualified for thecurrently open position

y Look only at thequalifications required by thecurrently open position

y Goal: Hire the applicant:y

Who is well-qualified for thecurrently open positiony Look at the qualifications

required by the currentlyopen position

y Andwho can develop to be

well-qualified for transfersand promotions to fillpossible future vacanciesy Look at qualifications

required for possible futurejobs

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Role ofDiversity?Focus on Legal Compliance Focus on Value of Diversity

y Organization focuses on not

violating the anti-discrimination laws

y Comply with:

y Civil Rights Act Title VII

y Age Discrimination in

Employment Acty Americans with Disabilities

Act, etc.

y Organization sees diversity as

a source of strategic strengthy Reduces risk of

discrimination lawsuits

y Goes beyond minimalistcompliance with laws

y

Moral high groundy Diverse employees better

able to serve the needs ofdiverse customers

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Marketing Orientation?Applicants as Commodities Applicants as Customers

y Company views applicants as

commodities to be boughty Workers are viewed as just

one more thing to buy

y Goal is to hire workersquickly and cheaply

y No-frills recruiting

y Company views applicants as

customers to be wooedy Applicants & employees are

viewed as a type of customer

y Market the organizations jobopportunities to potentialapplicants

y Wooing an applicant doesnot mean deceiving theapplicant

y Treat applicants with respect

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Recruiting Ethics?Inflate the Job Realistic Job Previews

y Lie & deceive applicants

about the joby Emphasize the jobs good

points

y Hide the jobs bad points

y Portray the job completely &

honestly (good & bad)y Advantages:

y Improves the person-jobmatch by facilitating self-selection by the applicant

y Lowered (more realistic)

expectationsy Increases the applicants

commitment to the decision

y Coping is facilitated

y Its the ethical thing to do

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Exempt vs. Nonexempt JobsExempt Job Nonexempt Job

y Does not get overtime pay

y

Job is exempt from theovertime pay provisions ofthe Fair Labor Standards Act(FLSA)

y Usually paid on a salary basis

y Hours actually worked doesnot determine pay

y Mostly supervisors,managers, and professionals

y Example: pay is $400 perweek regardless of hours

y Does get overtime pay

y

FLSA requires an overtimepay premium of 1.5 (time-and-a-half) for hours inexcess of 40 hours in a week

y Example:

y hourly wage = $10 per hour

y employee works 44 hoursin a week

y pay for week =($10 40 hours) +($10 1.5 4 hours) =$400 + $60 = $460

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Target Market for Recruitingy Goal: Recruit a pool of well-qualified applicants

y What are the essential qualifications required by the

job?y Look at the Job Description for the open position

y Where can we find people with the essentialqualifications?

y Identify the relevant labor market for the open position:Local, regional, national, or international

y What recruiting methods can we use to effectivelycommunicate in the relevant labor market with thepeople who have the essential qualifications?

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Recruiting Methodsy Thus, each recruiting method is a way to communicate

with a certain group of potential applicants for the

open position (vacancy)y For each of the following recruiting methods, think

about the audience being targeted

y Whats the target audience of each recruiting method?

y In what situations would you choose to use each recruitingmethod?

y Team Project Suggestion: Your hiring plan(Element #2) shouldincludea recruiting plan

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Recruiting Methods (more)yJob posting & bidding

y Post open positions on the organizations:

y

Bulletin boardsy In-house newsletters

y Intranet website (note: intranet, not Internet)

y Only current employees have access (username & password)

y Focuses on internal recruiting, usually for nonexemptpositions

y Workers paid by the hour

y Examples: Production workers, maintenance workers,secretaries, etc.

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Recruiting Methods (more)y Succession planning & replacement charts

y Use theOrganization Chart to make succession &

replacement plansy If the employee in a particular position were to leave the

position for any reason, which of the subordinates would beready for the promotion?

y Plan employee development to get subordinates ready

y Focuses on internal recruiting, usually for exemptpositions

y Workers not paid by the hour

y Examples: managers & professionals, etc.

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Recruiting Methods (more)y Employee referrals

y Employees refer applicants to the organization

y Can be very effectivey Create incentives for current employees to make

referrals

y Example: $100 bonus paid to an employee who refers anapplicant

y Increase the incentives for employees to make good referrals

y Example: $500 bonus paid to an employee who refers anapplicant who is hired and stays on the job with satisfactory

job performance for 3 months

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Recruiting Methods (more)y Internet recruiting

y 3 possible ways:

y

Post open positions on the organizations Internet websitey Publicly accessiblenot limited to employees

y Post open positions on Internet job boards

y Search applicant listings on Internet job boards

y Listing of some Internet job boards:http://krypton.mnsu.edu/~schumann/www/research/hrm.html

y General job boards: Do not specialize (e.g., Monster, HotJobs)

y Niche job boards: Specialize in some way (e.g., HR.com,SouthernMinnesotaHelpWanted.com)

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Recruiting Methods (more)y Employment agencies

y Public: US Employment Service (USES)

y

Website: http://www.doleta.gov/uses/y Coordinates state employment services

y Each state has its own state employment service & job board

y CareerOneStop: http://www.careeronestop.org/

y Links to state job banks:

http://www.careeronestop.org/JobSearch/COS_jobsites.aspxy Example: Minnesota WorkForce Centers

y Website: http://www.mnworkforcecenter.org/

y Job board: https://www.minnesotaworks.net/

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Recruiting Methods (more)y Employment agencies (more)

y Private employment agencies

y

Fees frequently paid by the employer (not the applicant)y Fees frequently based on a percentage of the positions first

year pay

y Higher level jobs tend to have higher fee percentages

y Some agencies specialize

y Examples:y Executive search firms (so-called head-hunters)

y Temp agencies

y Nursing agencies

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Recruiting Methods (more)y Recruiting at schools

y Consider:

y

Which type of school? (e.g., look at jobs qualifications: highschool, vo-tech, 2-year or 4-year undergrad, or grad degree?)

y How many schools? (look at your budget for time & money)

y Location of schools? (look at the relevant labor market)

y Which specific schools? (look at the degrees offered,

reputation, & past experiences with school)y Build relationships with specific schools

y Donations, internships, managers serve on schools advisoryboard, speakers, mentoring with students, etc.

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Recruiting Methods (more)y Non-traditional recruiting methods

y Broaden geographic target market (even international?)

y

Make the job more attractive to applicantsy Use temps (temporary employees)

y Employee leasing: longer time than typical temp

y Target non-traditional groups:

y Retired peopley Disable people

y Economically disadvantaged people

y Fisher, Schoenfeldt, & Shaw (2006), Table 6.5, p. 257

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Recruiting Methods (more)y Help wanted advertising

y Plan the advertising campaign like youd plan an ad

campaign for the companys products or services, exceptnow youre marketing the companys job opportunities

y Identify the target labor market

y Geographic: local, regional, national, or international?

y Identify the target audience in the target labor market

y Who has the essential qualifications?

y Identify the advertising media that will reach the targetaudience in the target labor market

y Which specific publications, radio stations, etc.?

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Recruiting Methods (more)y Help wanted advertising (more)

y Design effective print ads:

y

Job title (boldface type)y Company name & logo (blind ads are usually a bad idea)

y Tasks & duties (list using bullets & white space)

y Qualifications (list using bullets & white space)

y Pay & benefits (be as specific as possible)

y Future opportunities (promotions, fast growth, etc.)

y Contact information (desired contact method and, asrelevant, contact name, phone, address, e-mail, website, etc.)

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Evaluation & Benchmarkingy Evaluate each recruiting method that was used

y For each recruiting method, calculate:

y

Number of applicants & number hiredy Yield Ratio = # applicants / # hired

y Cost per hire

y Time-to-fill: average number of days from first contact with anapplicant to the first day on the job

y Turnover rate in the new hires first year on the joby Average job performance ratings of the new hires after some

period of time on the job (e.g., after 3 months, 6 months, 12months)

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Countercyclical Hiringy Traditional approach to hiring: Hire only when the

organization has an open position to filly Problem:

y When economy is strong, everyone is hiringy Can then be hard to find enough well-qualified applicants

y When economy is weak, no one is hiringy Lots of good talent going to waste

y

Countercyclical hiring: Spread hiring out more evenlyover time in a planned wayy Need careful planning to hire in both good years & bad

y Reduces need to hire as many when good applicants are scarce

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Applicants Point ofViewy How do applicants decide which job offer to take?

y Objective factors: location, pay, benefits, job security,

promotion opportunities, nature of the work (e.g.,interesting work vs. boring), type of supervision, etc.

y Subjective factors: applicants perceived image of thecompany and its mission & culture, the degree of matchbetween the applicants values and the companys

values, etc.y Recruiting factors: politeness & competence of the

recruiter, promptness in handling application, etc.

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Outliney Hiring Process & Recruiting Goal

y Recruiting Philosophy

y Exempt vs. Nonexempt Jobsy Target Market for Recruiting

y Recruiting Methods

y Evaluation & Benchmarking of Recruiting

y Countercyclical Hiring

yApplicants Point of View

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Mgmt440 t04 Recruiting

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