1. Chapter 5 (Part 1): Recruitment & Selection
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Chapter 5 (Part 1): Recruitment & Selection
MGT 3513

2. ANNOUNCEMENTS

3. Questions on HR Supply and Demand
What is the labor supply?
What is the labor demand?
What is human resource planning?
What is a labor surplus?

4. Questions on HR Supply and Demand
What is a labor shortage?
What is the internal labor market?
What is the external labor market?
What is succession planning?

5. Questions on Forecasting
What is forecasting?

6. Questions on HR Planning
What is recruitment?
What is selection?
What is socialization?

7. Challenges in the Hiring Process
Major costs associated with turnover
4 major challenges in hiring process
Personal characteristics
Measurement
Motivation
Who decides?

8. Sources of Recruitment
Current employees
Employee referrals
Former employees
Former military
Print/radio
Internet
Employment agencies
Temporary workers
College recruiting
Customers

9. Questions on Recruitment
What are some nontraditional groups that can be recruited? Why target these groups?
What are the trade-offs from hiring internally versus externally?

10. Employment Scenario: What went wrong???
Susie was hired to work for Software Solutions 6 months ago. She trains clients how to use the company’s software. As a job applicant, Susie was promised a good wage, as well as the opportunity to work with high profile clients and to travel (international and domestic). Susie, who was very excited about her new job, is now very unhappy and looking for another job. She did not expect to have to travel most Fridays and Sundays. Not only does she have little personal time, but at work she can hardly keep up with the company’s requirement to report feedback from each training session and respond to each client comment.

11. Approaches to Recruitment
Flypaper approach
Try to attract as many applicants as possible
Emphasize the good points of the job
Outcomes:
unrealistic expectations of job
higher turnover

12. Approaches to Recruitment
Realistic Job Preview (RJP) approach
Show good points and bad points of job
Lower naïve expectations
Reduce shock
Allow time to develop coping mechanisms
Outcomes:
more realistic expectations of job
lower turnover

13. Examples - - Identify which approach is being used
Allen’s Furniture is looking for someone to help with sales and load furniture for customers. When Allen interviews applicants, he tells them that he pays very well; however, he informs each applicant that the job requires long hours, work on weekends, and heavy lifting.
Flypaper or RJP (circle one)

14. Examples - - Identify which approach is being used
Techtronics Telemarketers advertises by posting flyers at universities and employment agencies. The flyer states that the company pays a high hourly wage & has very flexible work hours.
Flypaper or RJP (circle one)

15. Evaluating Recruitment
How does a company know what recruitment sources to use?
Yield ratios
Cost-per-hire
Applicant quality (by source)
Example: Newspaper vs. employee referrals

16. Practice evaluating recruitment
Example: My organization paid $700 to run an ad in the local newspaper advertising a sales position. Also, we paid $300 to a radio station to advertise the same position. Forty individuals applied for the position (30 in response to radio & 10 in response to newspaper); however, we only hired 8 new sales representatives (3 from radio & 5 from newspaper).
Calculate the cost per hire
Calculate the yield ratio for each source of recruitment

17. Cost per hire = cost/hires
Source
Cost #
Hires
Cost per hire

18. Cost per hire = cost/hires
Source
Cost #
Hires
Cost per hire
Newspaper
Radio

19. Cost per hire = cost/hires
Source
Cost #
Hires
Cost per hire
Newspaper
$700
Radio
$300
Total
$1000

20. Cost per hire = cost/hires
Source
Cost #
Hires
Cost per hire
Newspaper
$700 5
Radio
$300 3
Total
$1000 8

21. Cost per hire = cost/hires
Source
Cost #
Hires
Cost per hire
Newspaper
$700 5
$140
Radio
$300 3
$100
Total
$1000 8
$125

22. Yield ratio = hires/applicants
Source
# Applicants #
Hires
Yield ratio
Newspaper
Radio

23. Yield ratio = hires/applicants
Source
# Applicants #
Hires
Yield ratio
Newspaper 10
Radio 30
Total 40

24. Yield ratio = hires/applicants
Source
# Applicants #
Hires
Yield ratio
Newspaper 10 5
Radio 30 3
Total 40 8

25. Yield ratio = hires/applicants
Source
# Applicants #
Hires
Yield ratio
Newspaper 10 5
1 to 2
(50%)
Radio 30 3
1 to 10 (10%)
Total 40 8
1 to 5 (20%)

26. Practice evaluating recruitment
Example: Forty individuals applied for the position (30 in response to radio & 10 in response to newspaper); however, we only hired 8 new sales representatives (3 from radio & 5 from newspaper). Unfortunately, 3 of the new hires quit at the end of the year (1 who responded to newspaper ad, 2 who responded to radio ad).
Calculate 1 yr. turnover rate

27. Applicant quality =quits/hires
Source #
Hires
1 year turnover
Measure of applicant quality
Newspaper
Radio

28. Applicant quality =quits/hires
Source #
Hires
1 year turnover
Measure of applicant quality
Newspaper 5
Radio 3
Total 8

29. Applicant quality =quits/hires
Source #
Hires
1 year turnover
Measure of applicant quality
Newspaper 5
1 quit
Radio 3
2 quits
Total 8
3 quits

30. Applicant quality =quits/hires
Source #
Hires
1 year turnover
Measure of applicant quality
Newspaper 5
1 quit
20%
Radio 3
2 quits
approx. 67%
Total 8
3 quits
(37.5%)

31. Practice evaluating recruitment
Source
Cost
# Applicants #
Hires
Cost per hire
Yield ratio
1 year turnover
Newspaper
$700 10 5
$140
1 to 2
(50%)
1 quit (20%)
Radio
$300 30 3
$100
1 to 10 (10%)
2 quits (approx. 67%)
Total
$1000 40 8
$125
1 to 5 (20%)
3 quits (37.5%)