2. Chapter 5: Personnel Planning and Recruiting Lecturer:
Human Resource Management, Arab World Edition Gary Dessler, Akram Al Ariss
Chapter 5: Personnel Planning and Recruiting
Lecturer:

3. After studying this chapter, you should be able to:
Explain the main techniques used in employment planning and forecasting.
List and discuss the main outside sources of candidates.
Effectively recruit job candidates.
Name and describe the main internal sources of candidates.
Develop a ‘help wanted’ ad.
Explain how to recruit a more diverse workforce.

4. The Recruitment and Selection Process
Decide what positions to fill through 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 such as tests, background investigations, and physical exams to identify suitable candidates.
Decide who to make an offer to, by having the supervisor and perhaps others interview the candidates.

5. FIGURE 5-1 Steps in the Recruitment and Selection Process

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

7. 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

8. Forecasting Personnel Needs
Trend Analysis
Scatter Plotting
Forecasting Tools
Ratio Analysis

9. Size of Hospital (Number of Beds) Number of Registered Nurses
FIGURE 5-3 Determining the Relationship Between Hospital Size and Number of Nurses
Note: After fitting the line, you can project how many employees you’ll need, given your projected volume.
Size of Hospital (Number of Beds)
Number of Registered Nurses
200
240
300
260
400
470
500
600
620
700
660
800
820
900
860
TABLE 5-1 Sample Figures: Hospital Size (Number of Beds) and Number of Nurses Required

10. Drawbacks to Traditional Forecasting Techniques
They focus on projected sales volume and historical sales/personnel relationships, and assume that the firm’s existing structure and activities will continue.
They generally do not consider the impact the company’s strategic initiatives may have on future staffing levels.
They support outdated compensation plans that reward managers for managing ever-larger staffs, and don’t reveal managers who expand their staffs irrespective of the company’s strategic needs.
They tend to support the non-productive idea that increases in staff are inevitable.
They validate and institutionalize existing planning processes and ways of doing things, even during rapid change.

11. Using Computers to Forecast Personnel Requirements
Computerized Forecasts
Software that estimates future staffing needs by:
creating metrics for direct labor hours and three sales projection scenarios – minimum, maximum, and probable
projecting sales, volume of production, and personnel required to maintain different volumes of output
forecasting staffing levels for direct labor, indirect staff, and exempt staff.

12. FIGURE 5-4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

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

14. The Matter of Privacy Ensuring the Security of HR Information
Control of HR information through access matrices
Access to records and employee privacy
Common database
A unique website offering recruitment services all over the Arab world on a common database is ArabRec.com with:
One million applicants
32,000 companies
60,000 jobs advertised

15. BOX 5-1 Keeping Data Safe
Since intruders can strike from outside an organization or from within, HR departments can help screen out potential identity thieves by following four basic rules:
Perform background checks on anyone who is going to have access to personal information.
If someone with access to personal information is off sick or on leave, don’t hire a temporary employee to replace this person. Instead, bring in a trusted worker from another department.
Perform random background checks such as random drug tests. Just because someone passed five years ago doesn’t mean their current situation is the same.
Limit access to sensitive data such as health information to HR managers who require it to do their jobs.
Source: Dan Caternicchia, “Safeguarding HR Information,” HR Magazine, November 2005, p. 57. 15

16. Forecasting Outside Candidate Supply
Factors In Supply of Outside Candidates
General economic condition
Expected unemployment rate
Current Scenario in the Arab World
Dubai has suffered attrition of its professional workforce.
Some Arab countries are witnessing an economic recovery.
HR managers may need to increase their recruitment efforts if unemployment rates decrease.

17. The Complexities of Recruiting
Recruitment efforts should make sense in terms of the company’s strategic plans.
Some recruiting methods are superior to others, depending on the type of job recruited for.
Recruitment success depends greatly on non-recruitment issues and policies such as higher pay.
Good recruiting preferably requires simultaneously prescreening employees – by providing a realistic preview of the job in the ad, and during the initial call or contact.
The firm’s image affects its recruiting results. For instance, the better the image and reputation of a company, the more it will attract candidates.

18. Effective Recruiting Advantages of Centralizing Recruitment
Facilitates applying strategic priorities
Strengthens employment brand
Reduces duplication of HR activities
Spreads the cost of new HR technologies
Builds teams of HR experts
Provides better measurement of HR performance
Allows for sharing of applicant pools
If the firm’s divisions are autonomous, or their recruitment needs are varied, it may be more sensible to decentralize the recruitment function.

19. Measuring Recruiting Effectiveness
What to Measure
How to Measure
Evaluating Recruiting Effectiveness

20. Validity for Predicting Job Performance*
TABLE 5-2 Selection Devices That Could Be Used to Initially Evaluate Applicants
Selection Device
Validity for Predicting Job Performance*
Tests
General mental ability tests
0.51
Conscientiousness tests (commitment to doing one’s duty)
0.31
Integrity tests
0.41
Method
Work sample tests
0.54
Job knowledge tests
0.48
Structured interviews
Biographical data
0.35
Grade-point average (used in most American-based universities in the Arab region)
0.23
Ratings of training and experience
0.11
Source: Adapted from Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55, 2002, p. 470.
Note: *Higher is better.

21. FIGURE 5-5 Recruiting Yield Pyramid

22. 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

23. Finding Internal Candidates
Hiring from Within
Job Posting
Succession Planning (HRIS)
Rehiring Former Employees

24. Human Resource Information System (HRIS)
HRIS is a software or online solution for the data management needed by the HR department.
Such data includes information about employee skills and qualifications, and their personal updates.
HRIS also includes company-related documents such as safety guidelines, payroll, and other financial information.
It is useful in facilitating the succession planning which helps companies to understand their available talent and identify who is available for transition into other positions.
When combined with career development, succession planning allows companies to build a talent pool and employees to stay committed to their career and employer.

25. 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

26. 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

27. Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting
Requisition Management System
Integrated Recruiting Solution
Screening Services
Hiring Management
Integrated Employee Recruitment System

28. FIGURE 5-6 Effective and Ineffective Internet Ads
Source: Workforce, December 2001, © Crain Communications, Inc.

29. 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
Effective Ads
Create attention, interest, desire, and action (AIDA)
Create a positive impression of the firm

30. FIGURE 5-7 Keywords That Draw Attention
Source: Job description from Bayt.com, = , accessed December 1, 2011.

31. Types of Employment Agencies
Private Agencies
Executive Recruiters
Types of Employment Agencies
Temporary Agencies

32. Outside Sources of Candidates (cont)
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 a greater number of applicants
To reach currently employed individuals who are more comfortable dealing with agencies
To reduce internal time devoted to recruiting

33. Outside Sources of Candidates (cont)
Avoiding Problems with Employment Agencies
Provide the agency with accurate and complete job descriptions.
Make sure tests, application blanks, and interviews are part of the agency’s selection process.
Screen agency for effectiveness in filling positions – check with other managers or HR for the most effective agencies.
Review the internet and classified ads to discover the agencies that handle the positions wanted.
Supplement the agency’s reference checking by the recruiting company itself checking the final candidate’s references.

34. Temp Agencies Benefits of Temps
Increased productivity – paid only when working
Allows ‘trial run’ for prospective employees
No recruitment, screening, and payroll administration costs
Costs of Temps
Increased labor costs due to fees paid to temp agencies
Temp employees’ lack of commitment to the firm

35. Concerns of Temp Employees
Dehumanizing, impersonal, and discouraging treatment by employers
Insecurity about employment and pessimism about the future
Worry about the lack of insurance benefits
Being misled about job assignments and whether temporary assignments are likely to become full-time positions
Being ‘underemployed’ while trying to return to the full-time labor market
Anger toward the corporate world and its values, expressed as alienation and disenchantment

36. Working with a Temp Agency
Invoicing: Get a sample copy of the agency’s invoice. Make sure it fits your company’s needs.
Time sheets: With temps, the time sheet is not just a verification of hours worked. Once the worker’s supervisor signs it, it’s usually an agreement to pay the agency’s fees.
Temp-to-perm policy: What is the policy if the client wants to hire one of the agency’s temps as a permanent employee?
Recruitment of and benefits for temp employees: Find out how the agency plans to recruit employees and the sorts of benefits it pays.

37. Working with a Temp Agency (cont)
Dress code: Specify appropriate attire for all offices or plants.
Job description information: Have a procedure whereby you can ensure the agency understands the job to be filled and the sort of person, skills, and so forth, needed to fill it.

38. Offshoring/Outsourcing White-Collar and Other Jobs
Political and Military Instability
Cultural Misunderstandings
Customers’ security and privacy concerns
Foreign contracts, liability, and legal concerns
In Arab world it focuses on core competencies
Main Issues

39. Outside Sources of Candidates (cont)
Executive Recruiters (Headhunters)
Internet technology and specialization trends
Guidelines for Choosing a Recruiter
Make sure the firm is capable of conducting a thorough search.
Meet the individual who will handle the assignment.
Ask how much the search firm charges.
Never rely solely on the recruiter to do all the reference checking.

40. Outside Sources of Candidates (cont)
On-Demand Recruiting Services (ODRS)
Short-term specialized recruiting:
Is paid by the hour/project
Handles recruiting, analysis, and prescreening
College Recruiting
On-campus recruiting goals:
To determine if the candidate is worthy of further consideration
To attract good candidates

41. Outside Sources of Candidates (cont)
On-site visits
Invitation letters
Assigned hosts
Information packages
Planned interviews
Timely employment offer
Follow-up
Internships
Win–win situation for student and employer

42. Outside Sources of Candidates (cont)
Employee Referrals
Referring employees become stakeholders.
Referral is a cost-effective recruitment program.
Referral can speed up diversifying the workforce.
Walk-ins
Seek employment through a personal, direct approach to the employer
Courteous treatment of any applicant is a good business practice

43. TABLE 5-3 Recruitment Research Findings and Applications
Practical Applications
Recruitment sources affect the characteristics of applicants attracted.
Use sources such as referrals (e.g. from current employees) that yield applicants less likely to turnover and more likely to be better performers.
Recruitment materials have a more positive impact if they contain more specific information.
Provide applicants with information on aspects of the job that are important to them, such as salary, location, and diversity.
Organizational image influences applicants’ initial reactions to employers.
Ensure all communications regarding the organization provide a positive message regarding corporate image and the attractiveness of the organization as a place to work.
Applicants with a greater number of job opportunities are more attentive to and more influenced by early recruitment activities.
Ensure initial recruitment activities (e.g. website, brochure, on-campus recruiting) are as attractive to candidates as later activities.
Recruiter demographics have a relatively small effect on applicants’ attraction to the organization.
Worry less about matching recruiter/applicant demographics and more about the content of recruiting messages and the organization’s overall image in terms of diversity.
Realistic job previews (e.g. brochures, videos, group discussions that highlight both the advantages and the disadvantages of the job) reduce subsequent turnover.
Provide applicants with a realistic picture of the job and organization, not just the positives.
Applicants will infer job and organizational information based on the organizational image projected and their early interactions with the organization if the information is not clearly provided by the organization.
Provide clear, specific, and complete information in recruitment materials so that applicants do not misunderstand the nature of the job or the organization as an employer.
Recruiter warmth has a large and positive effect on applicants’ decisions to accept a job.
Individuals who have contact with applicants should be chosen for their interpersonal skills.
Applicants’ beliefs in a ‘good fit’ between their values and the organization’s influence their job-choice decisions.
Provide applicants with accurate information about what the organization is like so that they can make accurate fit assessments.
Source: Ann Marie Ryan and Nancy Tippins, “Attracting and Selecting: What Psychological Research Tells Us,” Human Resource Management 43, Winter 2004, no. 4, p Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center.
Note: Selected research principles from Taylor, M. S. and Collins, C. J. (2000), “Organizational Recruitment: Enhancing the Intersection of Research and Practice,” in C. L. Cooper and E. A. Locke (eds), Industrial and Organizational Psychology: linking Theory with Practice. Oxford, UK: Blackwell. 43

44. TABLE 5-4 Population Distribution 2010 and 2050: Percentage Distribution by Age Group
Country or Area
0–14 Years
15 –24 Years
25 –59 Years
60 Years and Older
2010
2050
World 27 20 18 13 44 45 11 22
Developing Countries 29 19 14 43 46 9
Arab Region 34 15 40 47 6 17
Source: United Nations, Department of Economic and Social Affairs, “World Population Prospects,”, from accessed July 2011. 44

45. FIGURE 5-8 Relative Effectiveness of Recruiting Sources Based on New Hires
Source: © Staffing.org, Inc., All Rights Reserved. The 2007 Recruiting Metrics and Performance Benchmark Report, 2nd ed., is
sponsored by NAS Recruitment Communications.
Note: Internet job boards continue to be the most effective sources, followed by employee referral programs and professional and trade media and associations.

46. Recruiting a More Diverse Workforce
Older Workers
Expatriates
Minorities and Women

47. 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

48. FIGURE 5-9 Employment Application
Source: accessed October 12, 2011.

49. FIGURE 5-9 Employment Application (cont)
Source: accessed October 12, 2011. 49

50. FIGURE 5-9 Employment Application (cont)
Source: accessed October 12, 2011. 50

51. FIGURE 5-10 HR Scorecard for KAMCO: Personnel Planning and Recruiting
Source: Prepared by Dr. Dmytro Roman Kulchitsky, Ph.D., the American University of Kuwait.

52. Key Terms applicant tracking systems position replacement card
application form
computerized forecasts
employee recruiting
employment or personnel planning
job posting
on-demand recruiting services (ODRS)
personnel replacement charts
position replacement card
qualifications inventories
ratio analysis
recruiting yield pyramid
scatter plot
succession planning
trend analysis