1. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-1 Human Resource Management 11 th Edition Chapter 5 RECRUITMENT

2. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-2 HRM in Action: Using the CEO in the Recruitment Process CEO can often be valuable in attracting the brightest and best applicants to join the firm For every 10 minutes a CEO spends upfront on strategy, it saves recruiters 100 hours of labor Have to be used at right time Don’t ask the CEO to actually make the deal

3. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-3 Recruitment Process of attracting individuals on a timely basis, in sufficient numbers, with appropriate qualifications, and encouraging them to apply for jobs with an organization

4. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-4 Alternatives to Recruitment Outsourcing Contingent Workers Professional Employer Organizations (Employee Leasing) Overtime

5. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-5 Outsourcing Transfers responsibility to an external provider Provides greater efficiency and effectiveness

6. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-6 Contingent Workers Part-timers, temporaries, and independent contractors Human equivalents of just-in- time inventory Total cost of a permanent employee is about 30 - 40% above gross pay “Disposable American workforce”

7. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-7 Bureau of Labor Statistics Definition Two groups: 1.Independent contractors and on-call workers, who work only when needed - consisted of 14.8 million workers, or 10.7% of workforce 2.Temporary or short-term workers, which BLS calls contingent - totaled 5.7 million or 4.1% of workforce

8. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-8 Professional Employer Organizations - Employee Leasing Company that leases employees to other businesses When decision is made to use PEO, company releases its employees who are then hired by PEO With PEO, leasing company is employees’ legal employer

9. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-9 Overtime Most commonly used method of meeting short- term fluctuations in work volume Employer avoids recruitment, selection, and training costs Employees gain from increased income Potential problems

10. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-10 External Environment of Recruitment Labor Market Conditions Legal Considerations Corporate Image

11. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-11 Labor Market Conditions Demand for and supply of specific skills Labor market for many professional and technical positions is truly global

12. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-12 Legal Considerations Candidate and employer first make contact during recruitment process Essential for organizations to emphasize nondiscriminatory practices at this stage Labor Department has issued guidelines concerning online recruiting policies of federal contractors and subcontractors

13. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-13 Labor Department Guidelines Keep detailed records of each job search Identify what criteria was used Be able to explain why a person with protected status was not hired Companies with more than 100 employees keep staffing records for a minimum of two years

14. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-14 Labor Department Guidelines (Cont.) Threshold coverage is 50 employees if dealing with OFCCP Enables compilation of demographic data, including age, race and gender, based on that applicant pool Employers must keep records of any and all expressions of interest through Internet, including online résumés and internal databases

15. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-15 EFCCP Criteria to Determine Whether an Individual Is an Internet Applicant Job seeker has expressed interest through Internet Employer considers job seeker for employment in particular open position Job seeker has indicated he or she meets position’s basic qualifications Applicant has not indicated no longer interested in position

16. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-16 Promotion from Within (PFW) Policy of filling vacancies above entry-level positions with current employees Workers have incentive to strive for advancement Organization usually well aware of employees’ capabilities Good goal would be to fill 80% of openings above entry-level positions from within

17. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-17 Employee Requisition Recruitment begins when a manager initiates employee requisition Document specifies job title, department, date employee is needed for work, and other details

18. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-18 RECRUITMENT PROCESS External Environment Internal Environment Human Resource Planning Alternatives to Recruitment Employee Requisition Internal Sources Internal Methods External Sources External Methods Recruited Individuals

19. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-19 Recruitment Sources and Methods Recruitment sources: Place where qualified individuals are found Recruitment methods: Means by which potential employees can be attracted to firm

20. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-20 Internal Recruitment Methods Employee databases Job Posting Job Bidding Internet Intranet Company’s Online Newsletter

21. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-21 Job Posting and Job Bidding Job Posting - Procedure to inform employees that job openings exists Job Bidding - Permit individuals in organization who believe they possess required qualifications to apply for posted job

22. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-22 Employee Referrals Number one way people find a job Referrals better qualified and stay on job longer Recruit new hires through employee-referral incentive programs Employee enlistment - Unique form of employee referral where every employee becomes a company recruiter

23. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-23 Trends & Innovations: Twittering for the Best Recruit Twitter is free social networking and micro- blogging service that allows users to send updates commonly known as tweets which are text-based posts, ranging up to 140 characters long Much of Twitter community is made up of technologically savvy, active social network users who also have blog and social networking pages

24. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-24 Why External Recruitment Is Needed Fill entry-level jobs Acquire skills not possessed by current employees Obtain employees with different backgrounds to provide diversity of ideas

25. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-25 External Recruitment Sources High Schools and Vocational Schools Community Colleges Colleges and Universities Competitors in the Labor Market Former Employees Unemployed Military Personnel Self-Employed Workers Ex-Offenders

26. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-26 High Schools and Vocational Schools Clerical and other entry- level employees Some companies work with schools Companies may loan employees to schools

27. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-27 Community Colleges Sensitive to specific employment needs in local labor market Graduate highly sought-after students with marketable skills

28. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-28 Colleges and Universities Professional, technical, and management employees Placement directors, faculty, and administrators

29. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-29 Competitors in the Labor Market When recent experience is needed, competitors and other firms in same industry or geographic area are important sources Smaller firms look for employees trained by larger organizations Poaching - Process of actively recruiting employees from competitors

30. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-30 Former Employees In past, punished with no- return policies Smart employers try to get their best ex-employees to come back. Also called boomeranging

31. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-31 Unemployed Qualified applicants become unemployed every day Companies go out of business Cut back operations Merge with other firms Employees are fired

32. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-32 Military Personnel Proven work history - flexible, motivated, drug free Goal and team orientation

33. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-33 Self-Employed Workers Technical Professional Administrative Entrepreneurial

34. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-34 Ex-Offenders Ex-offenders are a viable labor pool for restaurants, although at times controversial Often work third shift, where they don’t come in contact with customers Some organizations actively support hiring of ex-cons (Philadelphia)

35. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-35 Online Recruitment Perhaps biggest change in way that organizations recruit Revolutionized way companies recruit employees and job seekers search and apply for jobs

36. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-36 Advantages of Online Recruiting Costs less because online advertising less expensive Easy to post ad and responses arrive faster and often in greater quantity Tasks of contacting candidates and processing résumés can be computerized Permits company to search for wider range of applicants Recruiting cycle time is shortened

37. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-37 Disadvantages of Online Recruiting Processes must be in place to filter out those who do not meet minimum qualifications Competition for qualified employees from small and medium, as well as global, companies Confidentiality could be a problem

38. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-38 Internet Recruiter Also called cyber recruiter, is person whose primary responsibility is to use Internet in recruitment process Most companies currently post jobs on their corporate career Website The more a company recruits on Internet, the greater the need for Internet recruiters High-tech firms have greatest needs

39. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-39 Virtual Job Fair Online recruiting method engaged in by single employer or group of employers to attract large number of applicants Wider range of students than might attend live fair

40. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-40 Corporate Career Website Job sites accessible from company homepage that lists company positions available, providing way for applicants to apply for specific jobs Approximately 94% of Fortune 100 companies and 81% of Fortune 500 companies have corporate career Websites Should be used as a selling device that promotes the company to prospective job candidates

41. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-41.Jobs Domain Company registers part of its corporate name online and job candidates can access it more quickly than they could if they had to go directly to organization’s Website and then look for jobs page Helps improve efficiency of recruiting

42. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-42 Weblogs (Blogs for Short) Google or a blog search engine such as Technorati.com can be used Type in a key phrase like marketing jobs Google launched blogsearch.google.com Stealthy background checks

43. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-43 General-Purpose Job Boards Monster.com HotJobs.com CareerBuilder.com

44. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-44 NACElink Network Alliance among National Association of Colleges and Employers, DirectEmployers Association, and Symplicity Corporation National recruiting network and suite of web-based recruiting and career services automation tools serving needs of colleges, employers, and job candidates Over 600 schools using NACElink system

45. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-45 Niche Sites Websites that cater to a specific profession A site for virtually everyone

46. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-46 Contract Workers’ Sites Sites are available to assist this segment of workforce Let workers advertise skills, set their price, and pick employer Freelance.com AllFreelanceWork.com Guru.com

47. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-47 Hourly Workers’ Job Sites Attracting blue-collar and service workers Most hourly workers pursue jobs by filling out applications Sites allow job-seekers to build application that can be viewed by employers Some job boards have bilingual call center

48. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-48 Traditional External Recruitment Methods Media Advertising Employment Agencies - Private and Public Recruiters Job Fairs Internships Executive Search Firms Professional Associations Unsolicited Applicants Open Houses Event Recruiting Sign-on Bonuses Competitive Games

49. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-49 Media Advertising Communicates firm’s employment needs through media such as radio, newspaper, television, and industry publications Previous experience with various media suggest the approach taken Use of newspaper advertising has declined because of online recruiting

50. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-50 Employment Agencies – Public and Private Organization that helps recruit employees and at same time aids individuals in attempts to locate jobs Private agencies (often called head- hunters) – Best known for recruiting white-collar employees Public agencies – Operated by each state, receive policy direction from U.S. Employment Service

51. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-51 Recruiters Used with technical, vocational, community colleges, colleges and universities

52. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-52 Job Fairs Recruiting method engaged in by single employer or group of employers to attract large number of applicants to one location for interviews Opportunity to meet large number of candidates in short time

53. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-53 Internships Places student in a temporary job No obligation to hire student permanently or for student to accept permanent position Typically temporary job for summer or part-time job during school year Students bridge gap from theory to practice

54. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-54 Executive Search Firms Locate experienced professionals and executives Need specific types of individuals Contingency search firms - Receive fees only upon successful placement Retained search firms - Serve as consultants to clients on exclusive contract basis

55. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-55 Professional Organizations Recruitment and placement services for members in many professions such as finance, marketing, and information technology Society for Human Resource Management operates job referral service

56. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-56 Unsolicited Applicants Reputation of being good place to work attracts qualified prospects without extensive recruitment Well-qualified workers seek specific company

57. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-57 Open Houses Pair potential hires and managers in warm, casual environment that encourages on-the-spot job offers Cheaper and faster than agencies May attract more unqualified candidates

58. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-58 Event Recruiting Opportunity to create image of company Go to events that the people you are seeking attend

59. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-59 Sign-On Bonuses Used where severe shortages of highly skilled workers exist Amounts vary dramatically

60. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-60 Competitive Games Unique way to get individuals interested in applying for technical positions TopCoder is a company that creates software coding competitions L’Oreal makes use of four recruiting games

61. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-61 Tailoring Recruitment Methods to Sources Tailored to each firm’s needs Recruitment sources and methods vary according to position being filled

62. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-62 Methods and Sources of Recruitment for an Information Technology Manager Self-Employed Unemployed Competitors in the labor market College and universities Community colleges Military personnel High/vocational schools Online recruiting Media advertising Employment agencies Recruiters Job fairs Internships Executive search firms Professional associations Unsolicited applicants Open houses Event recruiting Sign-on bonuses High-Tech competition XXX External Sources External Methods Former employees XX

63. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 5-63 A Global Perspective: U.S. Firms in Vietnam At one time, United States was at war with Vietnam Now U.S. multinational firms are locating in this country largely because of lower labor costs SAP, world’s largest supplier of business software, expanded into Vietnam with facilities in Hanoi and Ho Chi Minh City

64. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall