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2 HUMAN RESOURCE PLANNING & RECRUITING 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 – 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

3 The Recruitment and Selection Process 1.Decide what positions you’ll have to fill through HR planning and forecasting. 2.Build a pool of candidates for these jobs by recruiting internal or external candidates. 3.Have candidates complete application forms and perhaps undergo an initial screening interview. 4.Use selection techniques like tests, background investigations, and physical exams to identify viable candidates. 5.Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.

4 HUMAN RESOURCE PLANNING & RECRUITING Employment Planning and Forecasting HR planning is the first step in the recruiting & selection process. Employment or HR planning is the process of deciding what positions the firm will have to fill, and how to fill them. Personnel planning covers all the firm’s personnel from the lowest official to the highest manager, even the CEO.

5 Steps in Recruitment and Selection Process Employment Planning and forecasting Recruiting: Build a pool of candidates Applicants Complete Application Forms Use selection Tools like tests to screen out most applicants Supervisors and others interview final candidates to make final choice Candidates Candidate becomes employee

6 Planning and Forecasting Employment or HR 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

7 Planning and Forecasting Employer’s Strategic Plan Diversity? Integrate vertically? Expand geographically? On what basis should we compete? Employer’s Strategic Plan Diversity? Integrate vertically? Expand geographically? On what basis should we compete? Financial plans Production plans Marketing & sales plan Security and safety plan Labor relation plans Compensa tion plan T&D plan Personnel plan Employee selection plans Recruitment plan Personnel forecasts Employer’s functional plans HR plans

8 How to forecast Personnel Needs: 1. Project turnover (as a result of resignations or terminations) 2. Quality and skills of your employees (in relation to what you see as the changing needs of your organization) 3. Strategic decisions to upgrade the quality of products or services or enter into new markets. 4. Technological and other changes resulting in increased productivity 5. The financial resources available to your department.

9 Trend Analysis: Study of a firm’s past employment needs over a period of years to predict future needs. Ratio Analysis: A forecasting technique for determining future staff needs by using ratios between, for example, sales volume and number of employees needed. Computerized Forecast: Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages.

10 Forecasting the Supply of inside Candidates Qualifications Inventories: A Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion. Personnel Replacement Charts: Company records showing present performance and promotability of inside candidates for the most important positions. Position Replacement Card: A card prepared for each position in a company to show possible replacement candidates and their qualifications.

11 Forecasting the Supply of Outside Candidates Factors impacting the supply of outside candidates – General economic conditions – Expected unemployment rate Sources of information – Periodic forecasts in business publications – Online economic projections

12 Effective Recruiting: Starts with developing an applicant pool, using one or more of the recruitment sources described below. It’s hard to overemphasize the importance of effective recruiting. The more applicants you have, the more selective you can be in your hiring. If only two candidates apply for two openings, you may have little choice but to hire them. But if 10 or 20 applicants appear, you can use techniques like interviews and tests to screen out all but the best.

13 What makes Effective Recruiting a challenge: First, some recruiting methods are superior to others, depending on the type of job for which you are recruiting. Second, the success you have recruiting depends greatly on the non-recruitment issues and policies. Help to build a bigger applicant pool Third, rules and regulations need to know in recruitment process.

,200 New hires Offers made (2:1) Candidates interviewed (3:2) Candidates invited (4:3) Leads generated (6:1) Recruiting Yield Pyramid Recruiting yield pyramid: The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted.

15 Internal Sources of Candidates: Recruiting may bring to mind employment agencies and classified ads, but current employees are often the best source of candidates. 1. First, there is really no substitutes for knowing a candidate’s strengths and weaknesses. It is often therefore safer to promote employees from within, since you’re likely to have a more accurate view of the person’s skills than you would an outsider’s. 2. Inside candidates may also be more committed to the company. 3. Morale may rise, to the extent that employees see promotions as rewards for loyalty and competence. 4. Inside candidates may also require less orientation and training than outsiders.

16 Problems: However, hiring from within can also backfire. Employees who apply for jobs and don’t get them may because discontented; telling unsuccessful applicants why they were rejected and what remedial actions they might take to be more successful in the future is thus crucial. Inbreeding is another potential drawback. When all managers come up through the ranks, they may have a tendency to maintain the status quo.

17 Finding Internal Candidates Job posting –Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees – Advantages: They are known quantities. They know the firm and its culture. – Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.

18 Finding Internal Candidates (cont’d) Succession planning –The process of ensuring a suitable supply of successors for current and future senior or key jobs. Succession planning steps: –Identifying and analyzing key jobs. –Creating and assessing candidates. –Selecting those who will fill the key positions.

19 Outside Sources of Candidates Advertising – The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Marketing programs Constructing an effective ad – Wording related to job interest factors should evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.

20 Outside Sources of Candidates (cont’d) Types of employment agencies: –Public agencies operated by federal, state, or local governments –Agencies associated with nonprofit organizations –Privately owned agencies

21 Why turn to an agency? Reasons include: 1. Your firm doesn’t have its own HR department and is not geared to doing recruiting and screening. 2. Your firm has found it difficult in the past to generate a pool of qualified applicants. 3. You must fill a particular opening quickly. 4. There is a perceived need to attract a greater number of minority or female applicants. 5. You want to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies. 6. You want to cut down on the time you’re devoting to interviewing.

22 Executive Recruiters 1. Make sure the firm is capable of conducting a thorough search. 2. Meet the individual who will actually handle your assignment. 3. Ask how much the search firm charges. There are several things to keep in mind here. Search firm fees range from 25% to 35% of the guaranteed annual income of the position. 4. Choose a recruiter you can trust with privileged information. 5. Talk to some of the firm’s clients. Get the names of two or three companies for whom the firms has recently completed assignments.

23 Referrals and Walk-Ins “Employees referrals” campaigns are another option. The firm posts announcements of openings and requests for referrals in its bulletin and on its wallboards and internet. Recruiting via the Internet A large and fast-growing proportion of employers use the Internet as a recruiting tool. The percentage of Fortune 500 companies recruiting via the Internet jumped from 10% in 1997 to 75% in Employers list several advantages of Internet recruiting. First, it is cost effective.

24 Recruiting Online Americas Job Bank CareerBuilder CareerMosaic CareerShop.com ComputerJobs.com Dice.com Employment911.com JobOptions Jobs.com JobTrack.com Monster.com

25 Developing and using Applications Forms Purpose of Application Forms Once you have a pool of applicants, the prescreening process can begin. The Application form is usually the first step in this process. Application form: The form that provides information on education, prior work record, and skills.

26 WHY APPLICATION FORMS ARE RELEVANT: Carefully scrutinizing all information supplied by the applicant on his or her employment application. For example, look for unexplained gaps in employment. Getting the applicant’s written authorization for reference checks, and carefully checking references. Saving all records and information you obtain about the applicant. Rejecting applicants who make false statements of material facts or who have conviction records for offenses directly related and important to the job in question. Keeping in mind the need to balance the applicant’s privacy rights with other’s “need to know,” especially when you discover damaging information. Taking immediate disciplinary action if problems develop.