Recruiting in Labor Markets

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Strategic 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

Identifying keys to success in the labor market

Cultivating networks and relationships

Promoting the company brand

Creating recruiting metrics

FIGURE 7-1 Strategic Recruiting Stages

Recruiting and Labor Markets

Recruiting

The process of generating a pool of qualified applicants for

organizational jobs

Labor Markets

The external supply pool from which organizations attract

their employees

Tight versus Loose Labor Markets

Low unemployment creates competition for employees, raising

labor costs.

High unemployment results the availability of

more applicants and more qualified applicants.

FIGURE 7-2 Labor Market Components

Reaching the Applicant Population

Recruiting

Decisions

Recruiting

Method

Recruiting

Message

Applicant

Qualifications

Administrative

Procedures

Different Labor Markets and Recruiting

Labor

Markets

Geographic Labor

Markets

Global Labor

Markets

Educational and

Technical Labor

Markets

Industry and

Occupational Labor

Markets

Strategic Recruiting Decisions

Sample

Sample

Sample

Sample Sample

Sample

Sample

Organization-Based

vs.

Outsourced Recruiting

Recruiting Presence

and Image

Training of

Recruiters

Regular vs.

Flexible Staffing

Recruiting and

Diversity

Considerations

Recruiting

Nontraditional

Workers

Recruiting Source

Choices:

Internal vs. External

Strategic

Recruiting

Decisions

FIGURE 7-3 Typical Division of HR Responsibilities: Recruiting

FIGURE 7-4 Recruiting and Diversity Considerations

FIGURE 7-5 Advantages and Disadvantages of Internal and External Recruiting Sources

Internal Recruiting

Employee

Databases

Job

Postings

Promotions

and Transfers

Former

Employees and

Applicants

Current-

Employee

Referrals

Internal

Recruiting

Sources

External Recruiting

Colleges and

Universities

High Schools,

Vocational/

Technical Schools

Labor and Trade

Unions

Competitors,

Media Sources, and

Job Fairs

Employment

Agencies and

Headhunters

External

Recruiting

Sources

FIGURE 7-6 What to Include in an Effective Recruiting Ad

Internet Recruiting

E-Recruiting Places

Internet Job

Boards

Professional/

Career Websites

Employer Web

Sites

Internet Recruiting (cont’d)

Advantages Disadvantages

• Recruiting cost savings

• Recruiting time savings

• Expanded (global) pool of

applicants

• Better targeting of specific

audiences

• More unqualified applicants

• Additional work for HR staff

• Many applicants are not

seriously seeking employment

• Access limited or unavailable to

some applicants

• Privacy of information and

discrimination issues

Internet Recruiting (cont’d)

The use (or misuse) of

screening software

Exclusion of protected classes

from the process

Collection of federally required

applicant information

Proper identification of

“real” applicants

Informality leads to improper

discussions or information

Legal Issues in

Internet

Recruiting

FIGURE 7-7 Recruiting Source Value Index for Employers

Source: “Recruiting Source Value Index,” Workforce Recruiting,

workforcerecruiting@email.workforceonline.com, November 9, 2006, 3.

Recruiting Evaluation and Metrics

Evaluating

Recruiting

Efforts

Evaluating Recruiting

Quality and Quantity

Evaluating the Time

Required to Fill

Openings

Evaluating Recruiting

Satisfaction

Evaluating Recruiting

Costs and Benefits

Operationalizing HR Strategy

General

Recruiting

Process Metrics

Yield

Ratios

Selection

Rate

Acceptance

Rate

Success Base

Rate

FIGURE 7-8

Sample Recruiting

Evaluation Pyramid

Increasing Recruiting Effectiveness

Technical Approaches Non-Technical Approaches

• Resume mining software

• Applicant tracking

• Employer career websites

• Internal mobility tracking

system

• Personable recruiters

• Emphasizing positives about the

job and employer within a

realistic job preview

• Fair and considerate treatment

in the recruiting process

• Enhancing applicants’ perceived

fit with the organization