1. Personnel Planning and Recruiting5
Personnel Planning and Recruiting
This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance.
The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time and at less expense. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population.
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2. Learning Objectives
List the steps in the recruitment and selection process.
Explain the main techniques used in employment planning and forecasting.
Explain and give examples for the need for effective recruiting.
By the end of this chapter, you will be able to:
List the steps in the recruitment and selection process.
Explain the main techniques used in employment planning and forecasting.
Explain and give examples for the need for effective recruiting.
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3. Learning Objectives
Name and describe the main internal sources of candidates.
List and discuss the main outside sources of candidates.
Develop a help wanted ad.
Explain how to recruit a more diverse workforce.
Also, you will be able to:
Name and describe the main internal sources of candidates.
List and discuss the main outside sources of candidates.
Develop a help wanted ad.
Explain how to recruit a more diverse workforce.
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4. The steps in the recruitment and selection process.
Job analysis identifies the duties and human requirements for each of the company’s jobs. The next step is to decide which of these jobs you need to fill, and to recruit and select employees for them.
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5. The steps in the recruitment and selection process.
Job analysis identifies the duties and human requirements for each of the company’s jobs. The next step is to decide which of these jobs you need to fill, and to recruit and select employees for them.
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6. The Five Steps
Decide what positions to fill, through workforce/personnel planning and forecasting.
Build a pool of candidates for these jobs, by recruiting internal or external candidates.
Have candidates complete application forms and perhaps undergo initial screening interviews.
Use selection tools like tests, background investigations, and physical exams to identify viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps others interview the candidates
The next part of the process is to decide which of these jobs you need to fill, and to recruit andselect employees for them. The five steps are:
Decide what positions to fill, through workforce/personnel planning and forecasting.
Build a pool of candidates for these jobs, by recruiting internal or externalcandidates.
Have candidates complete application forms and perhaps undergo initial screeninginterviews.
Use selection tools like tests, background investigations, and physical exams toidentify viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps othersinterview the candidates.
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7. FIGURE 5-1 Steps in the Recruitment and Selection Process

8. FIGURE 5-2 Linking Employer’s Strategy to Plans

9. Explain the main techniques used in employment planning and forecasting.
Workforce (or employment or personnel)planning is the process of decidingwhat positions the firm will have to fill, and how to fill them. We’ll discuss some of the principle techniques used in planning and forecasting.
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10. Planning and Forecasting
Employment or Personnel Planning
The process of deciding what positions the firm will have to fill, and how to fill them
Succession Planning
The process of deciding how to fill the company’s most important executive jobs
What to Forecast?
Overall personnel needs
The supply of inside candidates
The supply of outside candidates

11. Workforce Planning and Forecasting
Strategy and workforce planning
Forecasting personnel needs (labor demand)
Trend analysis
Ratio analysis
The scatter plot
Markov analysis
Like all plans, personnel plans require some forecasts or estimates. In this case, the forecasts involve: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. The basic workforce planning process is to forecast the employer’s demand for labor and supply of labor. Next, identify supply-demand gaps and develop action plans to fill the projected gaps.
Trend analysis means studying variations in the firm’s employment levels over the last few years.
Another simple approach, ratio analysis, means making forecasts based on the historical ratio between two variables. One example might include some causal factor (like sales volume) and the number of employees required (such as number of salespeople).
A scatter plot shows graphically how two variables—suchas sales and your firm’s staffing levels—are related.
Markov analysis involves creating a matrix that shows the probabilities that employees in a chain of feeder positions for a key job. “Feeder” positions are those to which a job incumbent may likely be promoted. For example a junior engineer is a feeder position for an engineer. An engineer is a feeder position for a senior engineer who might be promoted to engineering supervisor, and so forth.
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12. Like all plans, personnel plans require some forecasts or estimates
Like all plans, personnel plans require some forecasts or estimates. In this case, the forecasts involve: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. The basic workforce planning process is to forecast the employer’s demand for labor and supply of labor. Next, identify supply-demand gaps and develop action plans to fill the projected gaps.
Trend analysis means studying variations in the firm’s employment levels over the last few years.
Another simple approach, ratio analysis, means making forecasts based on the historical ratio between two variables. One example might include some causal factor (like sales volume) and the number of employees required (such as number of salespeople). .

13. A scatter plot shows graphically how two variables—such as sales and your firm’s staffing levels—are related.
Markov analysis involves creating a matrix that shows the probabilities that employees in a chain of feeder positions for a key job. “Feeder” positions are those to which a job incumbent may likely be promoted. For example a junior engineer is a feeder position for an engineer. An engineer is a feeder position for a senior engineer who might be promoted to engineering supervisor, and so forth

14. Forecasting the Supply of Inside Candidates
Manual Systems and Replacement Charts
Qualification Inventories
Computerized Information Systems
Privacy

15. Manual systems are used primarily for smaller employers
Manual systems are used primarily for smaller employers. For example, a personnel inventory and development record form compiles qualifications information on each employee. It will show the present performance and promotability for each position’s potential replacement.
Larger firms obviously can’t track the qualifications of hundreds or thousands of employees manually. Larger employers therefore computerize this information. One software system is Survey Analytics’ Skills Inventory Software.
As far as keeping information secure the employer should secure all its employee data.
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16. Forecasting the Supply of Outside Candidates
Talent management
Action planning for labor supply and demand
The recruiting yield pyramid
A talent management philosophy requires paying continuous attention to workforceplanning issues. Managers call this newer, continuous workforce planning approachpredictive workforce monitoring.
Workforce planning should logically culminate in a workforce action plan. This lays out
the employer’s projected workforce demand–supply gaps, as well as staffing plans for
filling the necessary positions.
The recruiting yield pyramid is based on experience and solid record-keeping. In our example, if a company needs 50 entry-level accountants, using the pyramid, it will need to generate approximately 1,200 leads to fill the new-hire requirement.
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17. A talent management philosophy requires paying continuous attention to workforce planning issues. Managers call this newer, continuous workforce planning approach predictive workforce monitoring.
Workforce planning should logically culminate in a workforce action plan. This lays out the employer’s projected workforce demand–supply gaps, as well as staffing plans for filling the necessary positions.
The recruiting yield pyramid is based on experience and solid record-keeping. In our example, if a company needs 50 entry-level accountants, using the pyramid, it will need to generate approximately 1,200 leads to fill the new-hire requirement.
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18. Explain and give examples for the need for effective recruiting.
Assuming the company authorizes you to fill a position, the next step is to build up,through recruiting, an applicant pool. Employee recruiting means finding and/orattracting applicants for the employer’s open positions.
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19. The Need for Effective Recruiting
Why recruiting is important
What makes recruiting a challenge?
Organizing how you recruit
The supervisor’s role
Effective recruiting allows a company to fill open positions while their competitors may have missed solid opportunities. If, for example, you fill open positions 50% faster than industry average, you are more likely to get better talent onboard more quickly.
Effective recruiting is a challenge for several reasons.
First, some recruiting methods are superior to others.
Second, the success you have recruiting depends on non-recruitment issues andpolicies.
Third, employment law prescribes what you can and cannot do when recruiting.
For many firms, it’s simply much easier to recruit centrally now that somuch recruiting is on the Internet. Face-to-face interviewing is the usual culmination of the preliminary recruiting done through the internet.
With respect to the role of the supervisor in recruiting, the HR manager charged with filling an open position is seldom very familiar with the job itself. Someone has to tell this person what the position really entails, and what key things to look or watch out for. Only the position’s supervisor can do this.
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20. Employee recruiting means finding and/or attracting applicants for the employer’s open positions.
Why Recruiting Is Important – Finding the best employees takes time, and being effective is crucial to organizational success.
Effective recruiting allows a company to fill open positions & hiring better talent than competitors more quickly
The justified belief is that the better the employees, the better the company. Even with high unemployment rates, finding qualified employees can be difficult.
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21. Effective recruiting is a challenge for several reasons.
First, some recruiting methods are superior to others.
Second, the success you have recruiting depends on non-recruitment issues and policies.
Third, employment law prescribes what you can and cannot do when recruiting.
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22. For many firms, it’s simply much easier to recruit centrally for many reasons: 1st to apply the company’s strategic priorities company-wide, 2nd to reduce duplication, 3rd the widening use of the Internet.
With respect to the role of the supervisor in recruiting, the HR manager charged with filling an open position is seldom very familiar with the job itself. Someone has to tell this person what the position really entails, and what key things to look or watch out for. Only the position’s supervisor can do this.
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23. Name and describe the main internal sources of candidates.
Recruiting typically brings to mind LinkedIn, employment agencies, and classified ads,but internal sources—in other words, current employees or “hiring from within”—isoften the best source of candidates.
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24. Internal Sources of Candidates
Using internal sources
Finding internal candidates
Rehiring
Succession planning
Identify key needs
Develop inside candidates
Assess and choose
Some advantages of internal recruiting include the following:
Current employees may be more committed
Morale may go up since other employees will know about your policy
Current employees may require less orientation and training than new hires.
The disadvantages, however, include: employees may become discontented if they apply for jobs and do not get them. There also is a potential for inbreeding – maintaining the status quo – to occur.
To be effective, promotion from within requires using job analysis and posting, using personnel records, and maintaining current skill banks.
Rehiring former employees has its pros and cons also.
On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back. This is often the case if the rehires return at higher levels or salaries.
Succession planning ensures a suitable supply of successors for senior or key jobs. It can include the following activities:
Determining the projected need for managers and professionals
Auditing current executive talent
Planning individual career paths
Offering career counseling
Planning for accelerated promotions
Providing performance-related training and development
Planning strategic recruitment
Actually filling the positions.
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25. Internal Candidates: Hiring from Within
Advantages
Disadvantages
Foreknowledge of candidate’s 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
Family business successions promote continuity
Failed applicants become discontented
Time wasted interviewing inside candidates who will not be considered
In the Arab world, only 50% of the 80% of family businesses have succession plans

26. Rehiring former employees has its pros and cons also
Rehiring former employees has its pros and cons also. On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back. This is often the case if the rehires return at higher levels or salaries.
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27. Determining the projected need for managers and professionals
Succession planning ensures a suitable supply of successors for senior or key jobs. It can include the following activities:
Determining the projected need for managers and professionals
Auditing current executive talent
Planning individual career paths
Offering career counseling
Planning for accelerated promotions
Providing performance-related training and development
Planning strategic recruitment
Actually filling the positions.
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28. List and discuss the main outside sources of candidates.
Firms can’t always get all the employees they need from their current staff, and sometimesthey just don’t want to. We’ll look at the sources firms use to find outside candidates next.
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29. Outside Sources of Candidates
Locating Outside Candidates 1 5 3 2 7
Recruiting via the Internet 6
Executive Recruiters 4 8
Advertising
On-Demand Recruiting Services (ODRS)
Employment Agencies
College Recruiting
Offshoring/Outsourcing
Referrals and Walk-Ins

30. For most employers and for most jobs, Internet-based recruiting is by far the recruiting source of choice. There are other web recruiting practices that include Social networking which provides recruiting assistance, especially for mid-level and higher management positions, networking sites, an organization’s personal recruiting website, and virtual job fairs. These can generate more responses more quickly and for less cost. However, they have their disadvantages, such as less diversity of applicants.
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31. Outside Sources of Candidates (cont)
Recruiting via the Internet
Advantages
Cost-effective way to publicize job openings
More applicants are attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation
Disadvantages
Excessive number of unqualified applicants
Personal information privacy concerns of applicants
Lack of relevant information
Using mandatory formatting for resumes
Privacy issues
Difficulty in using the site
Slow feedback from employers

32. Advertising – While the internet is used a great deal, there are still reasons for using print-based ads. The best medium (internet, newspaper, etc.) should be selected based on the positions for which you are recruiting.
For example, if you are seeking a highly specialized researcher, then advertising in the appropriate professional journal is your best bet.
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33. Develop a help wanted ad
Many experienced advertisers use a four-point guide called AIDA (attention, interest,desire, action) to construct their ads. Let’s see how that works.
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34. Writing the Ad Attention Interest Desire Action
Why does this ad attract attention? The phrase “next key player”certainly helps. Next, develop interest in the job. In our ad, asking if you want to make an impact probably creates interest.
Create desire by spotlighting words such as travel or challenge. Finally, the ad should prompt action with a statement like “call today.” In the ad, writing a cover letter addressing the question, “Beyond the beans, what is the role of a plant controller?” is a challenging requirement for simply applying for the job.
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35. Why does this ad attract attention
Why does this ad attract attention? The phrase “next key player ”certainly helps. Next, develop interest in the job. In our ad, asking if you want to make an impact probably creates interest.
Create desire by spotlighting words such as travel or challenge. Finally, the ad should prompt action with a statement like “call today.” In the ad, writing a cover letter addressing the question, “Beyond the beans, what is the role of a plant controller?” is a challenging requirement for simply applying for the job.
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36. Employment Agencies Public Nonprofit agencies Private agencies
There are three main types of employment agencies:
public agencies operated byfederal, state, or local governments;
agencies associated with nonprofit organizations; and
privately owned agencies.
Every state has a public, state-run employment service agency supported by the Department of Labor.
Private agencies charge fees for each applicant they place.
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37. Temp Agencies and Alternative Staffing
Pros and cons
What supervisors should know about temporary employees’ concerns
Legal guidelines
Alternative staffing
The benefits of contingency staffing include increases in overall productivity, and time and expenses saved by not having to recruit, train, and document new employees.
Some of the major concerns of temporary employees include being treated in adehumanizing and discouraging way and worrying about the lack of insurance and pension benefits.
Understanding the difference between contract workers and employees is very important. Let the temp agency assume as much responsibility for the temporary employee as possible. This helps to create a clear line between temps and employees at the worksite.
Alternative staffing, such as temporary employees, refers to the use of nontraditional recruitment sources.
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38. The benefits of contingency staffing include increases in overall productivity, and time and expenses saved by not having to recruit, train, and document new employees. Many employers use temporary agencies as a way to “test drive” prospective employees before hiring them.
Some of the major concerns of temporary employees include being treated in adehumanizing and discouraging way and worrying about the lack of insurance and pension benefits.
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39. Understanding the difference between contract workers and employees is very important. Let the temp agency assume as much responsibility for the temporary employee as possible. This helps to create a clear line between temps and employees at the worksite.
Alternative staffing, such as temporary employees, refers to the use of nontraditional recruitment sources.
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40. Other Sources of Candidates
Offshoring and outsourcing jobs
Executive recruiters
Pros and cons
Guidelines
On-demand recruiting services
Hiring workers abroad is becoming more and more common. Offshoring has to do with taking advantage of the lower costs of doing business outside of the U.S. This includes the wages paid as well as the lower costs of raw materials, energy sources, and the like.
Executive recruiters, also called headhunters, are special employment agencies hired by employers to seek out top-management talent for their clients. There are two types of executive recruiters: contingent and retained. Contingent headhunters are paid on a commission basis. Retained recruiters are paid for their ongoing services whether or not a candidate they present is hired. There is occasional overlap between the two, however.
Recruiters can be useful and save time and other resources for the company. However, some recruiters may be more interested in persuading managers to hire a candidate than in finding the rightone.
Guidelines – Make sure the recruiting firm is capable, meet the individual who will handle the assignment, and ask how much the firm charges. Never rely on the recruiter to do all the reference checking.
On-demand recruiting services (ODRS) provide short-term specialized recruitingassistance to support specific projects without the expense of hiring traditional retained search firms. They are recruiters who are paid by the hour or project, instead of apercentage fee.
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41. Hiring workers abroad is becoming more and more common
Hiring workers abroad is becoming more and more common. Offshoring has to do with taking advantage of the lower costs of doing business outside of the U.S. This includes the wages paid as well as the lower costs of raw materials, energy sources, and the like.
Executive recruiters, also called headhunters, are special employment agencies hired by employers to seek out top-management talent for their clients. There are two types of executive recruiters: contingent and retained. Contingent headhunters are paid on a commission basis. Retained recruiters are paid for their ongoing services whether or not a candidate they present is hired. There is occasional overlap between the two, however.
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42. Recruiters can be useful and save time and other resources for the company. However, some recruiters may be more interested in persuading managers to hire a candidate than in finding the right one.
Guidelines – Make sure the recruiting firm is capable, meet the individual who will handle the assignment, and ask how much the firm charges. Never rely on the recruiter to do all the reference checking.
On-demand recruiting services (ODRS) provide short-term specialized recruiting assistance to support specific projects without the expense of hiring traditional retained search firms. They are recruiters who are paid by the hour or project, instead of a percentage fee.
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43. College Recruiting involves sending employers’ representatives to college campuses to prescreen applicants. It has two main goals. One is to determine if a candidate is worthy of further consideration. The other is building close ties with a college’s career center.
They also create an applicant pool of management trainees promotable candidates, and professional and technical employees.
College recruiting
On-campus recruiting goals
The on-site visit
Internships
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44. Employee referral campaigns are an important recruiting option
Employee referral campaigns are an important recruiting option. Here the employer posts announcements of openings and requests for referrals on its Web site, bulletin, and/or wallboards. It often offers prizes or cash awards for referrals that lead to hiring. Referrals tend to generate high-quality candidates.
* Referrals from current employees yield applicants who are less likely to leave and more likely to perform better.
Telecommuters work from home for a particular firm that may provide equipment and even furniture for the home office.
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45. Other Issues Recruiting source use and effectiveness
Measuring recruiting effectiveness
Small employers may spend tens of thousands of dollars per year in recruiting. One survey found that only about 44% of the279 firms surveyed made formal attempts to evaluate their recruitment efforts.
In terms of what to measure, one question is “How many applicants did wegenerate through each of our recruitment sources?”
The problem is that generatingmore applicants is not always better. The employer needsqualified, hirable applicants, not just applicants. The applicant tracking system should help compare recruiting sources. However, about30% of them lack the necessary tools to effectively pinpoint source of hire.
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46. Recruiting source use and effectiveness & Measuring recruiting effectiveness
In terms of what to measure, one question is “How many applicants did we generate through each of our recruitment sources?”
The problem is that generating more applicants is not always better. The employer needs qualified, hirable applicants, not just applicants. The applicant tracking system should help compare recruiting sources. However, about30% of them lack the necessary tools to effectively pinpoint source of hire.
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47. Explain how to recruit a more diverse workforce.
Recruiting a diverse workforce isn’t just socially responsible. Given the rapid increase in minority, older worker, and women candidates, it is anecessity. Let’s see how we can do that.
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48. Recruiting a More Diverse Workforce
Single parents
Older workers
Recruiting minorities
Welfare-to-work
Disabled workers
Recruiting a diverse workforce isn’t just socially responsible. Given the rapid increase in minority, older worker, and women candidates, it is anecessity.
Formulating an intelligent program for attracting single parents should begin with understanding the considerable problems they often encounter in balancing work and family life.
With the entire population aging, many employers are encouraging retirement-age employees not to leave. They may also actively recruitemployees who are at or beyond retirement age. Sometimes, there is no substitute for experience.
Recruiting minorities requires employers to tailor their way of thinking and to design HR practices that make their firms attractive to minority workers.
The key to a welfare-to-work program’s successseems to be the employer’s pre-training program. Here, participants get counseling andbasic skills training over several weeks.
Employers can do several things to tap into the huge potential workforce of disabled individuals. The Department of Labor’s Office of Disability Employment Policy offers several programs. All states have local agencies that provide placement services and other recruitment and training tools.
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49. Developing and Using Application Forms
Uses of Application Information
Applicant’s education and experience
Applicant’s progress and growth
Applicant’s employment stability
Applicant’s likelihood of success

50. Developing and Using Application Forms
Purpose of application forms
Application guidelines
Application forms and EEO law
Predicting job performance
Mandatory arbitration
Application forms are a good way to quickly collect verifiable and fairly accurate historical data from the job candidate.
Organizations should request detailed information about each prior employer. This should include the name of the supervisor, address and phone number. Such information is essential for reference checking. Also, in signing the application, the applicant should certify his or her understanding that falsified statements may be cause for dismissal.
Employers should carefully review their application forms to ensure they comply with equal employment laws. Questions to review include those asking about:
dates of graduation
arrest records
emergency contacts
physical disabilities
marital status
housing arrangements.
Some firms use application forms to predict which candidates will be successful. They also try to find the relationship between:
responses on the application form, and
measures of success on the job.
Many employers, to avoid the high cost of lawsuits, require applicants to agree to binding arbitration to settle disputes.
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51. Application forms are a good way to quickly collect verifiable and fairly accurate historical data from the job candidate.
Organizations should request detailed information about each prior employer. This should include the name of the supervisor, address and phone number. Such information is essential for reference checking.
Some firms use application forms to predict which candidates will be successful. They also try to find the relationship between:
responses on the application form, and
measures of success on the job.
** Finally, binding arbitration is often a requirement to settle disputes that may arise in the future.
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