Recruiting Employees Chapter 6

Recruitment Process of seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen Organizations have options other than recruiting new employees Offering overtime to existing employees Temporary workers (direct hires) Leasing employees (thru temporary agencies) Subcontracting (Outsourcing ) the work to another organization 6-2

Internal Sources– Organization’s Own Employees Two sources of recruitment Internal sources External sources Advantages of internal sources Organization has a good idea of strengths and weaknesses of its employees(<- skills inventory) Employees know more about organization and how it operates -> Likelihood of the employee having inaccurate expectations is reduced 6-3

Internal Sources – Organization’s Own Employees Recruitment from within can have a significant, positive effect on employee motivation and morale due to promotion opportunities Most organizations have a sizable investment in their workforce -> Making full use of employees improves return on its investment Disadvantages Intense infighting for promotions can have a negative effect on morale and performance of employees not promoted Inbreeding can results in stifling of new ideas 6-4

Internal Sources – Job Posting Method of informing employees of job vacancies by posting a notice (bulletin board or homepage) Normally the job notice specifies Job title Rate of pay Necessary qualifications Procedure involves All applications are sent to HR department for an initial review An interview by prospective manager follows Decision is based on qualifications, performance, length of service, and other pertinent criteria 6-5

Internal Sources – Job Posting Suggestions for development of specific implementation policies Openings should be posted for specified time period before external recruitment begins Eligibility rules for job posting system need to be developed and communicated Unsuccessful bidders should be notified by human resource department and advised as to why they were not accepted Secrecy regarding identity of applicants should be maintained 6-6

External Sources of Recruiting Qualified Personnel Needed in Rapidly growing organizations, which require a large number of technical, skilled, or managerial employees Advantages Pool of talent much larger in comparison to internal sources External hires may bring new insights and perspectives Often cheaper and easier to hire technical, skilled, or managerial people from outside than to train and develop internally 6-7

External Sources of Recruiting Qualified Personnel Disadvantages Attracting, contacting, and evaluating potential employees is more difficult Employees hired from outside need a longer adjustment or orientation period Recruiting from outside may cause morale problems among current employees

Advertising Job advertising Placement of help-wanted advertisements in daily newspapers, trade and professional publications, and radio and television Ads need to accurately describe job opening and requirements or qualifications needed to secure position People respond more frequently to ads from companies with a positive corporate image 6-9

Employment Agencies – Public Social Security Act requires all eligible individuals to register with state employment agency before they can receive unemployment compensation State employment agencies provide free service for Individuals seeking employment Business organizations seeking employees Job Centers(고용지원센터) in Korea(affiliated with the Ministry of Labor) provide similar services to the job seekers and business organizations 6-10

Employment Agencies – Private Executive search firm (or headhunter) Seeks candidates for high-level or professional positions Employment agencies that recruit for lower-level positions Customers may be job applicants seeking employment or business firms seeking employees Fees of private employment agencies are paid by individual or employing organization 6-11

Temporary Help Agencies Temporary help – People working for employment agencies who are subcontracted out to businesses at an hourly rate for a period of time specified by the businesses They get paid by a temporary help agency Organization pays employment agency an agreed-upon amount for services of temporary help Advantages Makes a workforce more flexible Used to augment current staff when organization is expanding If organization is downsizing, they create a flexible staff that can be laid off easily Disadvantages Lack of commitment to organization 6-12

Employee Referrals, Walk-ins and Unsolicited Applications Using current employees as a source of referrals May be Informal, or be structured with definite guidelines to be followed Incentives and bonuses sometimes given to employees who refer subsequently hired people Drawback – Development of cliques Walk-ins and unsolicited applications Some applicants submit applications when the company didn’t make any notice on recruiting 6-13

Campus Recruiting Recruitment activities of employers on college and university campuses Recruiters conduct initial interviews, and the most promising applicants are invited to the company for further selection processes HR department should take steps to ensure recruiters Are knowledgeable concerning organization and jobs to be filled Understand and use effective interviewing skills 6-14

Internet Recruiting Continues to be popular and rapidly growing means of recruiting Disadvantages Unsuitable job candidates Poor quality job applications Advantages Speed Examples of recruiting on the Internet: 인크루트(www.incruit.com) 잡코리아 (www.jobkorea.co.kr) 사람인 (www.saramin.co.kr) 취업뽀개기 (cafe.daum.net/breakjob) 잡부산 (www.jobbusan.co.kr) 6-15

Effectiveness of Recruitment Methods Organizations need to take steps to identify its most effective recruitment sources One study showed that Employee referrals were the most effective method as compared to newspaper advertisement, private employment agency, and walk-ins in terms of turnover rates HR departments could monitor effectiveness of recent hires in terms of turnover, absenteeism, and job performance, and relate those with the source of recruitment to identify which of the specific recruitment sources produces the best employees 6-16

Realistic Job Previews Method of providing complete information, both positive and negative, to job applicant Traditional methods of recruiting: to present the organization and the job positively in order to obtain a favorable selection ratio Favorable selection ratio – A large number of applicants in relation to number of job openings This approach tend to make job applicants set very high initial job expectations, resulting in dissatisfaction and high turnover RJP enables job candidates to self-select out of jobs that do not meet their expectations Usually, job applicants recruited using RJP, who accepted the job, have more job satisfaction 6-17

Organizational Inducements In Recruitment All positive features and benefits offered by an organization to attract job applicants Three important organizational inducements: Organizational compensation systems Career opportunities Organizational reputation Compensation Starting salaries Frequency of pay raises Incentives Nature of the organization’s fringe benefits 6-18

Organizational Inducements In Recruitment Career opportunities Today’s workers are more career oriented than before . Reputation for providing employees with career opportunities may result in attracting a larger pool of qualified candidates Employee and management development opportunities Organizational reputation Organization’s overall reputation, or image, serves as an inducement to potential employees Factors that affect an organization’s reputation: General treatment of employees Nature and quality of its products and services Participation in worthwhile social endeavors(CSR) 6-19