Personnel Planning and Recruiting 5 Personnel Planning and Recruiting

Human Resources Management 12e Gary Dessler LEARNING OUTCOMES 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. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Recruitment and Selection Process Human Resources Management 12e Gary Dessler The Recruitment and Selection Process Decide what positions to fill through personnel planning and forecasting. Build a candidate pool by recruiting internal or external candidates. Have candidates complete application forms and undergo initial screening interviews. Use selection tools to identify viable candidates. Decide who to make an offer to, by having the supervisor and others interview the candidates. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–1 Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–2 Linking Employer’s Strategy to Plans Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Planning and Forecasting Human Resources Management 12e Gary Dessler 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 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting Personnel Needs Human Resources Management 12e Gary Dessler Forecasting Personnel Needs The Manager will need to consider; Projected turnover Decision to upgrade (or downgrade) product or services Technological changes Department’s financial resources Trend analysis Ratio analysis Forecasting Tools Scatter plotting Markov Analysis Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting Personnel Needs Trend analysis: Trend analysis means studying a firm’s employment levels over a period of years to predict future needs. Trend analysis can provide an initial estimate of future staffing needs, but employment levels rarely depend just on the passage of time. Other factors (like changes in sales volume and productivity) also effect staffing needs.

Forecasting Personnel Needs Ratio analysis: Another approach ratio analysis, means making forecasts based on the ratio between (1) some causal factor, like sales volume, (2) number of employees required, like number of salespeople. For example, suppose a salesperson traditionally generates $500.000 in sales. If the sales revenue to sales people ratio remains the same, you would require six new salespeople next year (each of whom produces an extra $500.000) to produce a hoped-for extra $3 million in sales.

Human Resources Management 12e Gary Dessler FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses Hospital Size (Number of Beds) Number of Registered Nurses 200 240 300 260 400 470 500 600 620 700 660 800 820 900 860 Note: After fitting the line, you can project how many employees are needed, given your projected volume. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Drawbacks to Traditional Forecasting Techniques Human Resources Management 12e Gary Dessler Drawbacks to Traditional Forecasting Techniques They focus on projections and historical relationships. They tend to support compensation plans that reward managers for managing ever-larger staffs. They validate and institutionalize present planning processes and the usual ways of doing things. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting Personnel Needs Markov Analysis: Markov analysis involves creating a matrix that shows the probabilities those employees in a chain of feeder positions for a key job. “Feeder” positions are those to which a job incumbent may likely be promoted. Engineering supervisor Senior engineer Engineer Junior engineer

Using Computers to Forecast Personnel Requirements Human Resources Management 12e Gary Dessler Using Computers to Forecast Personnel Requirements Computerized Forecasts Software that estimates future staffing needs by: Projecting sales, volume of production, and personnel required to maintain different volumes of output. Forecasting staffing levels for direct labor, indirect staff. Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and probable. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting the Supply of Inside Candidates Human Resources Management 12e Gary Dessler Forecasting the Supply of Inside Candidates Manual systems and replacement charts Computerized skills inventories Qualification Inventories Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting the Supply of Inside Candidates Computerized Skills Inventories They are used to track the qualifications of hundreds or thousands of employees. The system can provide managers with a listing of candidates with specified qualifications after scanning the database. Computerized skills inventory data typically include work experience codes; product knowledge, the employee’s level of familiarity with the employer’s product line or services; the person’s industry experiences, since for some positions work in related industries is very useful; and formal education.

Human Resources Management 12e Gary Dessler The Matter of Privacy Ensuring the Security of HR Information Control of HR information through access matrices Access to records and employee privacy Legal Considerations The Federal Privacy Act of 1974 New York Personal Privacy Act of 1985 HIPAA Americans with Disabilities Act Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting Outside Candidate Supply Human Resources Management 12e Gary Dessler Forecasting Outside Candidate Supply Factors In Supply of Outside Candidates General economic conditions Expected unemployment rate Sources of Information Periodic forecasts in business publications Online economic projections U.S. Congressional Budget Office (CBO) U.S. Department of Labor’s O*NET™ Bureau of Labor Statistics (BLS) Other federal agencies and private sources Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forecasting the Supply of Outside Candidates Talent management Action planning for labor supply and demand The recruiting yield pyramid

Human Resources Management 12e Gary Dessler FIGURE 5–6 Recruiting Yield Pyramid ● 50% ● ● 67% ● ● ● 75% ● ● ● ● 16% ● ● ● ● ● ● Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Need for Effective Recruiting Human Resources Management 12e Gary Dessler The Need for Effective Recruiting Effectiveness of chosen recruiting methods Effects of nonrecruitment issues and policies Recruiting Challenges Legal requirements associated with employment laws Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Organizing How You Recruit Human Resources Management 12e Gary Dessler Organizing How You Recruit Facilitates strategic priorities Reduces duplication of HR activities Advantages of Centralizing Recruiting Efforts Fosters effective use of online recruiting Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Internal Sources of Candidates Human Resources Management 12e Gary Dessler Internal Sources of Candidates Advantages Disadvantages Foreknowledge of candidates’ 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 Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Finding Internal Candidates Human Resources Management 12e Gary Dessler Finding Internal Candidates Posting open job positions Rehiring former employees Hiring-from-Within Tasks Succession planning (HRIS) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Finding Internal Candidates Job posting To be effective, promotion from within requires using job posting, personnel records, and skill banks. Job posting means publicizing the open job to employees (usually by literally posting it on company internets or bulletin boards). These list the job’s attributes, like qualifications, supervisor, work schedule, and pay rate. Qualifications inventory tools also play a role.

Finding Internal Candidates Rehiring Rehiring former employees has its pros and cons. On the positive side, they are known quantities and are already familiar with the organization’s culture, style, and ways of doing things. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back.

Finding Internal Candidates Succession Planning Planning ensures a suitable supply of successors for senior or key jobs. It can include: Determining the projected need for managers and professionals Auditing current executive talent Planning individual career paths based on objective estimates Career counseling based on the needs of the individual and the firm; Accelerated promotions, Performance-related training and development Planned strategic recruitment to fill short-term needs Actually filling the positions.

Outside Sources of Candidates Human Resources Management 12e Gary Dessler Outside Sources of Candidates Locating Outside Candidates 1 6 3 2 8 7 Recruiting via the Internet Executive Recruiters 4 9 Advertising On Demand Recruiting Services (ODRS) 5 Employment Agencies College Recruiting Temp Agencies and Alternative Staffing Referrals and Walk-ins Offshoring/Outsourcing Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–7 Some Top Online Recruiting Job Boards Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Recruiting via the Internet Human Resources Management 12e Gary Dessler Recruiting via the Internet Advantages Cost-effective way to publicize job openings More applicants 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 Exclusion of older and minority workers Unqualified applicants overload the system Personal information privacy concerns of applicants Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Advertising for Outside Candidates Human Resources Management 12e Gary Dessler Advertising for Outside Candidates The Media Choice 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: specialized employees Internet job sites: global labor markets Constructing (Writing) Effective Ads Create attention, interest, desire, and action (AIDA). Create a positive impression (image) of the firm. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–9 Help Wanted Ad that Draws Attention Attention Interest Desire Action Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler Employment Agencies Public agencies Private agencies Types of Employment Agencies Nonprofit agencies Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Why Use a Private Employment Agency? Human Resources Management 12e Gary Dessler Why Use a Private Employment Agency? No HR department: firm lacks recruiting and screening capabilities to attract a pool of qualified applicants. To fill a particular opening quickly. To attract more minority or female applicants. To reach currently employed individuals who are more comfortable dealing with agencies than competing companies. To reduce internal time devoted to recruiting. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Avoiding Problems with Employment Agencies Human Resources Management 12e Gary Dessler Avoiding Problems with Employment Agencies Give agency an accurate and complete job description. Make sure tests, application blanks, and interviews are part of the agency’s selection process. Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process. Screen agency for effectiveness in filling positions. Supplement the agency’s reference checking by checking the final candidate’s references yourself. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Temp Agencies and Alternative Staffing Human Resources Management 12e Gary Dessler Temp Agencies and Alternative Staffing Pros and cons What supervisors should know about temporary employees’ concerns Legal guidelines Alternative staffing Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Offshoring and Outsourcing Jobs Human Resources Management 12e Gary Dessler Offshoring and Outsourcing Jobs Political and military instability Cultural misunderstandings Customers’ securing and privacy concerns Foreign contracts, liability, and legal concerns Special training of foreign employees Costs of foreign workers Resentment and anxiety of U.S. employees/unions Outsourcing/ Offshoring Issues Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Executive Recruitment and On-Demand Recruiting Services Human Resources Management 12e Gary Dessler Executive Recruitment and On-Demand Recruiting Services Executive Recruiters (Headhunters) Contingent-based recruiters Retained executive searchers Internet technology and specialization trends On-Demand Recruiting Services (ODRS) Provide short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. . Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler College Recruiting On-campus recruiting goals To determine if the candidate is worthy of further consideration To attract good candidates On-site visits Invitation letters Assigned hosts Information packages Planned interviews Timely employment offer Follow-up Internships Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Employee Referrals, Walk-ins and Telecommuters Human Resources Management 12e Gary Dessler Employee Referrals, Walk-ins and Telecommuters Employee Referrals Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce. Relying on referrals may be discriminatory. Walk-ins Seek employment through a personal direct approach to the employer. Courteous treatment of any applicant is a good business practice. Telecommuters These individuals work from home. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler FIGURE 5–11 Relative Recruiting Source Effectiveness Based on New Hires Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Recruiting A More Diverse Workforce Human Resources Management 12e Gary Dessler Recruiting A More Diverse Workforce Single parents Older workers Welfare-to-work Minorities and women The disabled Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Developing and Using Application Forms Purpose of Applications Forms Application Guidelines Application Forms and EEO Law Using Application Forms to Predict Job Performance Mandatory Arbitration

Private Employment Agencies

Human Resources Management 12e Gary Dessler K E Y T E R M S employment (or personnel) planning trend analysis ratio analysis scatter plot qualifications (or skills) inventories personnel replacement charts position replacement card employee recruiting recruiting yield pyramid job posting succession planning applicant tracking systems alternative staffing on-demand recruiting services (ODRS) college recruiting application form Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall