1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 6 Recruiting

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Phases of Recruiting & Selecting Employees  Job analysis  Workforce planning  Recruitment  Initial screening  Selection  Orientation  Placement  Training  Performance appraisal

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Developing Recruitment Policy: Labor Market Issues  A labor market is a geographical area within which the forces of supply (people looking for work) interact with the forces of demand (employers looking for people), and thereby determine the price of labor  Limits of the labor market  Geography  Education and/or technical background required to perform the job  Industry  Licensing or certification requirements  Union membership

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Developing Recruitment Policy: Labor Market Issues  Three elements compose internal labor markets  Formal and informal practices that determine how jobs are organized and described  Methods for choosing candidates  Procedures and authorities through which potential candidates are generated by those responsible for filling open jobs  Changing market conditions produce changes in recruitment policies  Improving the characteristics of vacant positions  Reducing hiring standards  Using more (and more expensive) recruiting methods  Extending searches over a wider geographical area

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. ‘Mating’ Theory of Recruitment: A Two-Way Process  ‘Mating’ theory of recruitment – candidates seek out organizations, just as organizations seek out candidates  Three conditions necessary for organizations and candidates to meet:  A common communication medium  The candidate perceives a match between his/her personal characteristics and the organization’s stated job requirements  The candidate is motivated to apply for the job

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Recruitment Planning  Recruitment begins with a clear specification of two necessary elements:  The number of people needed  When they are needed  Two forms of recruitment:  Internal  Initial consideration given to current employees  External  Consideration given to the outside labor market

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Reasons for Internal Recruitment  Considering internal over external recruitment  External recruitment, without the consideration of the desires, capabilities, and potential of present employees, may incur both short- and long-run costs  Short-run costs  A decline in worker morale  Long-run costs  A reputation for consistent neglect of in-house talent, making it difficult to attract new employees and to retain experienced ones

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Plans for Internal Recruitment  Job posting  Employee referrals (since internal rather than external sources are used to attract candidates, this method is still considered internal)  Temporary worker pools (not supplied by temporary agencies)  In-house temporaries work directly for the hiring organization and may receive benefits  Used to meet fluctuating labor demands due to factors such as illness, vacation, termination, and resignation

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. External Recruitment  University relations, formerly “college recruiting”  Targeting of certain schools that best meet the organization’s needs  May offer gifts and grants to the institution  Summer employment and consulting projects for faculty  Invitations to placement officers to visit company plants and offices  Executive search firms – typically used to recruit senior-level positions. Why use one?  Maintains confidentiality from an incumbent or a competitor  A lack of local resources to recruit executive-level positions  Insufficient time

11. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. External Recruitment  Employment agencies – most widely used outside employment source  Only receive payment if one of their referrals results in a hire (unlike executive search firms)  Recruitment Advertising  Includes, but is not limited to, classified ads in the newspaper and the company’s website

12. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Methods of Enticing New Recruits  Relocation assistance  Spouse-employment assistance  Sign-on bonuses

13. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Diversity Yields Diversity  Minority candidates consider broader factors when deciding to apply or to remain with organizations  The presence or lack of gender or ethnic diversity  Availability of training and career-development programs  The presence or lack of a diverse upper management  The presence or lack of a diverse workforce

14. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Does Recruitment Source Determine the Value of an Employee?  Alternative sources do not consistently explain differences in subsequent performance, job attitudes, or turnover  Only a small percentage of the variation in applicant quality and the survival of new hires may be explained by recruitment source

15. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Importance of Realistic Job Previews  Realistic job previews (RJPs) require that, in addition to telling applicants about the nice things a job has to offer (e.g. pay, benefits, opportunities for advancement), recruiters must also tell applicants about the unpleasant aspects of the job  Result of RJPs – job acceptance rates may be lower and job performance tends to be unaffected, but job satisfaction and survival rates are higher

16. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Other Side of Recruitment: Job Search  Suggestions for the unemployed  Don’t panic  Don’t be bitter  Don’t kid yourself  Don’t drift  Don’t be lazy  Don’t be shy or overeager  Don’t ignore your family  Don’t lie  Don’t jump the gun on salary  Do post your resume on the Internet; use “resume” in the Website address

17. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Other Side of Recruitment: Job Search  Current employees may look elsewhere in order to:  Establish a network  Demonstrate their marketability to current employers  Develop other job choices to compare with their current positions