1. Personnel Planning and Recruiting5
Personnel Planning and Recruiting
This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance.
The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time and at less expense. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population.
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2. 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.
By the end of this chapter, you will be able to:
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.
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3. Learning Objectives
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.
Also, you will be able to:
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.
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4. The steps in the recruitment and selection process.
Job analysis identifies the duties and human requirements for each of the company’s
jobs. The next step is to decide which of these jobs you need to fill, and to recruit and
select employees for them.
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5. The Five Steps Positions to be filled Pool of candidates
Applications and screening
Selection tools
Make an offer
The next part of the process is to decide which of these jobs you need to fill, and to recruit andselect employees for them. The five steps are:
Decide what positions to fill, through workforce/personnel planning and forecasting.
Build a pool of candidates for these jobs, by recruiting internal or externalcandidates.
Have candidates complete application forms and perhaps undergo initial screeninginterviews.
Use selection tools like tests, background investigations, and physical exams toidentify viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps othersinterview the candidates.
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6. Review Positions Candidates Screening Selection Offers
It is important for hiring purposes that organizations have a systematic plan for recruiting and hiring. We discussed the need to review the opportunities and potential opportunities and determine the pool of candidates available. Using appropriate information such as that provided by a job application is helpful. Once the initial screening is completed, selecting the right candidate and making an offer is critical to ensure you get the person you want.
As a final note, it is a good idea to wait until your offer has been formally accepted by your top candidate before notifying other candidates you have selected someone else. If your top candidate has been selected by another firm, you still have an option to go to your second-ranked candidate.
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7. Explain the main techniques used in employment planning and forecasting.
Workforce (or employment or personnel)planning is the process of decidingwhat positions the firm will have to fill, and how to fill them. We’ll discuss some of the principle techniques used in planning and forecasting.
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8. Workforce Planning and Forecasting
Strategy and workforce planning
Forecasting personnel needs (labor demand)
Trend analysis
Ratio analysis
The scatter plot
Markov analysis
Likeall plans, personnel plans require some forecasts or estimates. In this case, the forecasts involve: personnel needs, the supply of inside candidates, and the likely supply of outsidecandidates. The basic workforce planning process is to forecast the employer’sdemand for labor and supply of labor. Next, identify supply-demand gaps anddevelop action plans to fill the projected gaps.
Trend analysis means studying variations in the firm’semployment levels over the last few years.
Another simple approach, ratio analysis, means makingforecasts based on the historical ratio between two variables. One example might include some causal factor (like salesvolume) and the number of employees required (such as number of salespeople).
A scatter plot shows graphically how two variables—suchas sales and your firm’s staffing levels—are related.
Markov analysis involves creating a matrix that shows the probabilitiesthat employees in achain of feeder positions for a key job. “Feeder” positions are those to which a job incumbent may likely be promoted. For example a juniorengineer is a feeder position for an engineer. An engineer is a feeder position for a senior engineer who might be promoted to engineering supervisor, and so forth.
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9. Forecasting the Supply of Inside Candidates
Manual systems and replacement charts
Computerized skills inventories
Privacy
Manual systems are used primarily for smaller employers. For example, a personnel inventory and development record form compiles qualifications information on each employee. It will show the present performance and promotability for each position’s potential replacement.
Larger firms obviously can’t track thequalifications of hundreds or thousands of employees manually. Larger employerstherefore computerize this information. One software system isSurvey Analytics’ Skills Inventory Software.
As far as keeping information secure the employer should secure all its employee data.
Much of the data are personal (such as Social Security numbers and illnesses). Legislation gives employees legal rights regarding who has access to information about them. The legislation includes the Federal Privacy Act of 1974 (for federal workers), the New York Personal Privacy Act of 1985, HIPAA (regulates use of medical records), and the Americans with Disabilities Act. Employers should keep their manual records under lock and key. Computerized records have been known to be compromised by hackers so high levels of system encryption, hashing or other tight security measures are critical.
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10. Forecasting the Supply of Outside Candidates
Talent management
Action planning for labor supply and demand
The recruiting yield pyramid
A talent management philosophy requires paying continuous attention to workforceplanning issues. Managers call this newer, continuous workforce planning approachpredictive workforce monitoring.
Workforce planning should logically culminate in a workforce action plan. This lays out
the employer’s projected workforce demand–supply gaps, as well as staffing plans for
filling the necessary positions.
The recruiting yield pyramid is based on experience and solid record-keeping. In our example, if a company needs 50 entry-level accountants, using the pyramid, it will need to generate approximately 1,200 leads to fill the new-hire requirement.
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11. Review Forecasting Manual vs. computerized systems Managing talent
Action planning
Recruiting pyramid
To have an effective and efficient recruiting and hiring program, proper forecasting is important. Many employers use a tracking system to help them align their actions with the firm’s strategic and operating plans. Such a system may be manual or computerized. Computerized systems are used more frequently within larger companies.
Managing talent effectively requires an almost predictive action planning approach wherein monitoring and tracking help with future replacements, or workforce growth or shrinking.
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12. Explain and give examples for the need for effective recruiting.
Assuming the company authorizes you to fill a position, the next step is to build up,through recruiting, an applicant pool. Employee recruiting means finding and/orattracting applicants for the employer’s open positions.
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13. The Need for Effective Recruiting
Why recruiting is important
What makes recruiting a challenge?
Organizing how you recruit
The supervisor’s role
Effective recruiting allows a company to fill open positions while their competitors may have missed solid opportunities. If, for example, you fill open positions 50% faster than industry average, you are more likely to get better talent onboard more quickly.
Effective recruiting is a challenge for several reasons.
First, some recruiting methods are superior to others.
Second, the success you have recruiting depends on non-recruitment issues andpolicies.
Third, employment law prescribes what you can and cannot do when recruiting.
For many firms, it’s simply much easier to recruit centrally now that somuch recruiting is on the Internet. Face-to-face interviewing is the usual culmination of the preliminary recruiting done through the internet.
With respect to the role of the supervisor in recruiting, the HR manager charged with filling an open position is seldom very familiar with the job itself. Someone has to tell this person what the position really entails, and what key things to look or watch out for. Only the position’s supervisor can do this.
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14. Review Importance Challenge Organizing
Hiring better talent than your competitors more quickly will make important inroads in your marketplace.
The challenges to effective recruiting include the type of recruiting methods used, your company’s policies and employment law.
Finally, being organized and using experience and tracking systems to aid your decision-making will enable you to use the internet more effectively.
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15. Name and describe the main internal sources of candidates.
Recruiting typically brings to mind LinkedIn, employment agencies, and classified ads,but internal sources—in other words, current employees or “hiring from within”—isoften the best source of candidates.
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16. Internal Sources of Candidates
Using internal sources
Finding internal candidates
Rehiring
Succession planning
Identify key needs
Develop inside candidates
Assess and choose
Some advantages of internal recruiting include the following:
Current employees may be more committed
Morale may go up since other employees will know about your policy
Current employees may require less orientation and training than new hires.
The disadvantages, however, include: employees may become discontented if they apply for jobs and do not get them. There also is a potential for inbreeding – maintaining the status quo – to occur.
To be effective, promotion from within requires using job analysis and posting, using personnel records, and maintaining current skill banks.
Rehiring former employees has its pros and cons also.
On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back. This is often the case if the rehires return at higher levels or salaries.
Succession planning ensures a suitable supply of successors for senior or key jobs. It can include the following activities:
Determining the projected need for managers and professionals
Auditing current executive talent
Planning individual career paths
Offering career counseling
Planning for accelerated promotions
Providing performance-related training and development
Planning strategic recruitment
Actually filling the positions.
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17. Review Internal sources Finding internal candidates Rehiring
Succession planning
For this learning objective, remember that there are pros and cons with respect to using internal candidates. Some of the advantages and disadvantages occur with respect to other employees. That is, if an internal candidate is reasonably well qualified but does not get the job, he or she is likely to be disappointed.
To be effective, hiring an internal candidate must be based on a solid job analysis, proper and widely understood posting policies and the like.
Be careful with rehiring. Sometimes companies will rehire valuable former employees and pay them substantially more than they were making previously. The implications for the company and its employees of such actions are clear. In this example, they are negative.
Succession planning involves careful planning and management and often with the help of outside consultants.
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18. List and discuss the main outside sources of candidates.
Firms can’t always get all the employees they need from their current staff, and sometimesthey just don’t want to. We’ll look at the sources firms use to find outside candidates next.
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19. Outside Candidates Internet recruiting Advertising – media
Online recruiting
Texting
Dot-jobs
Virtual job fairs
Tracking
Effectiveness
Advertising – media
For most employers and for most jobs, Internet-based recruiting is by far the recruiting source of choice. Most employers find that the Internet is their best choice for recruitment efforts. Social networking also provides recruiting assistance, especially for mid-level and higher management positions.
Advantages – The Web is cost efficient, generating more responses more quickly and providing exposure for a longer time at less cost. Disadvantages – Gathering applications online may exclude more mature applicants and certain minorities.
There are also other web recruiting practices that include networking sites, texting, an organization’s personal recruiting website, and virtual job fairs. These can generate more responses more quickly and for less cost. However, they have their disadvantages, such as less diversity of applicants.
One survey of 256 alumni from graduate business schools showed why manyfirms’ Web-based recruiting turned them off. The objections included:
Lack of relevant information
Using mandatory formatting for resumes
Privacy issues
Poor graphics and difficulty in using the site
Slow feedback from employers
Advertising – While the internet is used a great deal, there are still reasons for using print-based ads. The best medium (internet, newspaper, etc.) should be selected based on the positions for which you are recruiting. For example, if you are seeking a highly specializedresearcher, then advertising in the appropriate professional journal is your best bet.
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20. Review Internet recruiting Advertising Media
The CareerBuilder.com iPhone application offers a unique way tosearch nearly 2 million jobs on CareerBuilder.com, the largest U.S. job site. For most employers and for most jobs, Internet-based recruiting is by far the recruiting source of choice. This is especially true for entry-level positions up through mid-management. Recruiting for professionals and managers is shifting from online job boards tosocial networking sites such as Facebook and LinkedIn.
The right advertising media should be chosen based on the job to be filled.
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21. Develop a help wanted ad
Many experienced advertisers use a four-point guide called AIDA (attention, interest,desire, action) to construct their ads. Let’s see how that works.
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22. Writing the Ad Attention Interest Desire Action
Why does this ad attract attention? The phrase “next key player”certainly helps. Next, develop interest in the job. In our ad, asking if you want to make an impact probably creates interest.
Create desire by spotlighting words such as travel or challenge. Finally, the ad should prompt action with a statement like “call today.” In the ad, writing a cover letter addressing the question, “Beyond the beans, what is the role of a plant controller?” is a challenging requirement for simply applying for the job.
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23. Employment Agencies Public Nonprofit agencies Private agencies
There are three main types of employment agencies:
public agencies operated byfederal, state, or local governments;
agencies associated with nonprofit organizations; and
privately owned agencies.
Every state has a public, state-run employment service agency supported by the Department of Labor.
Private agencies charge fees for each applicant they place.
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24. Temp Agencies and Alternative Staffing
Pros and cons
What supervisors should know about temporary employees’ concerns
Legal guidelines
Alternative staffing
The benefits of contingency staffing include increases in overall productivity, and time and expenses saved by not having to recruit, train, and document new employees.
Some of the major concerns of temporary employees include being treated in adehumanizing and discouraging way and worrying about the lack of insurance and pension benefits.
Understanding the difference between contract workers and employees is very important. Let the temp agency assume as much responsibility for the temporary employee as possible. This helps to create a clear line between temps and employees at the worksite.
Alternative staffing, such as temporary employees, refers to the use of nontraditional recruitment sources.
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25. Other Sources of Candidates
Offshoring and outsourcing jobs
Executive recruiters
Pros and cons
Guidelines
On-demand recruiting services
Hiring workers abroad is becoming more and more common. Offshoring has to do with taking advantage of the lower costs of doing business outside of the U.S. This includes the wages paid as well as the lower costs of raw materials, energy sources, and the like.
Executive recruiters, also called headhunters, are special employment agencies hired by employers to seek out top-management talent for their clients. There are two types of executive recruiters: contingent and retained. Contingent headhunters are paid on a commission basis. Retained recruiters are paid for their ongoing services whether or not a candidate they present is hired. There is occasional overlap between the two, however.
Recruiters can be useful and save time and other resources for the company. However, some recruiters may be more interested in persuading managers to hire a candidate than in finding the rightone.
Guidelines – Make sure the recruiting firm is capable, meet the individual who will handle the assignment, and ask how much the firm charges. Never rely on the recruiter to do all the reference checking.
On-demand recruiting services (ODRS) provide short-term specialized recruitingassistance to support specific projects without the expense of hiring traditional retained search firms. They are recruiters who are paid by the hour or project, instead of apercentage fee.
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26. Other Sources of Candidates
College recruiting
On-campus recruiting goals
The on-site visit
Internships
College Recruiting involves sending employers’ representatives to college campuses to prescreen applicants. The campus recruiter has two main goals. One is to determine if a candidate is worthy of further consideration. The other is building close ties with a college’s career center.
They also create an applicant pool of management traineespromotable candidates, and professional and technical employees. The on-site visit usually begins the process and paid or unpaid internships help move the process along.
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27. Recruiting Referrals and walk-ins Telecommuters Military personnel
Recruiting source use and effectiveness
Employee referral campaigns are an important recruiting option. Here the employerposts announcements of openings and requests for referrals on its Web site, bulletin, and/or wallboards. It often offers prizes or cash awards for referrals that lead to hiring. Referrals tend to generate high-quality candidates. Walk-in candidates may be attracted by posting a “Help Wanted” sign.
Telecommuters work from home for a particular firm that may provide equipment and even furniture for the home office.
Returning and discharged military personnel can provide a great source of trained recruits. Several military branches have programs to facilitate service men and women in findingjobs.
Research reveals several guidelines employers can use to improve their recruitingefforts’ effectiveness. For example, referrals from current employees yieldapplicants who are less likely to leave and more likely to perform better.
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28. Other Issues Recruiting source use and effectiveness
Measuring recruiting effectiveness
Small employers may spend tens of thousands of dollars per year in recruiting. One survey found that only about 44% of the279 firms surveyed made formal attempts to evaluate their recruitment efforts.
In terms of what to measure, one question is “How many applicants did wegenerate through each of our recruitment sources?”
The problem is that generatingmore applicants is not always better. The employer needsqualified, hirable applicants, not just applicants. The applicant tracking system should help compare recruiting sources. However, about30% of them lack the necessary tools to effectively pinpoint source of hire.
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29. Review Writing the ad Employment agencies
Temp agencies, alternative staffing
Other sources of candidates
Recruiting
Measuring effectiveness
Ads are written best by using the following steps:
Attention
Interest
Desire
Action
The types of employment agencies include:
Public
Nonprofit agencies
Private agencies
For temp agencies we discussed pros and cons, what supervisors should know about temporary employees’ concerns, legal guidelines, and alternative staffing.
For other sources of candidates, we discussed:
Offshoring and outsourcing jobs
Executive recruiters
On-demand recruiting services
College recruiting
For recruiting purposes, referrals and walk-ins, using telecommuters, and hiring ex-military personnel can be excellent sources of potential employees. Recruiting effectiveness and measurement also is important to all employers.
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30. Explain how to recruit a more diverse workforce.
Recruiting a diverse workforce isn’t just socially responsible. Given the rapid increase in minority, older worker, and women candidates, it is anecessity. Let’s see how we can do that.
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31. Recruiting a More Diverse Workforce
Single parents
Older workers
Recruiting minorities
Welfare-to-work
Disabled workers
Recruiting a diverse workforce isn’t just socially responsible. Given the rapid increase in minority, older worker, and women candidates, it is anecessity.
Formulating an intelligent program for attracting single parents should begin with understanding the considerable problems they often encounter in balancing work and family life.
With the entire population aging, many employers are encouraging retirement-age employees not to leave. They may also actively recruitemployees who are at or beyond retirement age. Sometimes, there is no substitute for experience.
Recruiting minorities requires employers to tailor their way of thinking and to design HR practices that make their firms attractive to minority workers.
The key to a welfare-to-work program’s successseems to be the employer’s pre-training program. Here, participants get counseling andbasic skills training over several weeks.
Employers can do several things to tap into the huge potential workforce of disabled individuals. The Department of Labor’s Office of Disability Employment Policy offers several programs. All states have local agencies that provide placement services and other recruitment and training tools.
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32. Developing and Using Application Forms
Purpose of application forms
Application guidelines
Application forms and EEO law
Predicting job performance
Mandatory arbitration
Application forms are a good way to quickly collect verifiable and fairly accurate historical data from the job candidate.
Organizations should request detailed information about each prior employer. This should include the name of the supervisor, address and phone number. Such information is essential for reference checking. Also, in signing the application, the applicant should certify his or her understanding that falsified statements may be cause for dismissal.
Employers should carefully review their application forms to ensure they comply with equal employment laws. Questions to review include those asking about:
dates of graduation
arrest records
emergency contacts
physical disabilities
marital status
housing arrangements.
Some firms use application forms to predict which candidates will be successful. They also try to find the relationship between:
responses on the application form, and
measures of success on the job.
Many employers, to avoid the high cost of lawsuits, require applicants to agree to binding arbitration to settle disputes.
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33. Review Recruiting a more diverse workforce
Developing and using application forms
With respect to this learning objective, we discussed:
Single parents
Older workers
Recruiting minorities
Welfare-to-work
Disabled workers
A crucial element of the hiring process, employers use application forms to quickly collect data. This allows an employer to request detailed information about each prior employer. Such employers must ensure they comply with equal employment laws. Some firms use application forms to predict which candidates will be successful. Finally, binding arbitration is often a requirement to settle disputes that may arise in the future.
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