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4-1/74 © 2003 Prentice Hall, Inc. Instructor presentation questions: Chapter 4 Personnel Planning and Recruiting.

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2 4-1/74 © 2003 Prentice Hall, Inc. Instructor presentation questions: docwin@tampabay.rr.com Chapter 4 Personnel Planning and Recruiting

3 © 2003 Prentice Hall, Inc. 4-2/74 Outline of Chapter 4  Employment planning and forecasting How to forecast personnel needs Trend analysis Ratio analysis The scatter plot Using computers to forecast personnel requirements Managerial judgment

4 © 2003 Prentice Hall, Inc. 4-3/74 Outline of Chapter 4 Forecasting the supply of inside candidates Manual systems and replacement charts Computerized information systems The matter of privacy Forecasting the supply of outside candidates

5 © 2003 Prentice Hall, Inc. 4-4/74 Outline of Chapter 4  Effective recruiting The recruiting yield pyramid Research insight Line and staff cooperation  Internal sources of candidates Finding candidates Hiring employees – the second time around Succession planning

6 © 2003 Prentice Hall, Inc. 4-5/74 Outline of Chapter 4  Outside sources of candidates Advertising Placing the ad Constructing the ad Being creative

7 © 2003 Prentice Hall, Inc. 4-6/74 Outline of Chapter 4 Employment agencies Public agencies Nonprofits Private agencies Temporary agencies and alternative staffing Benefits and costs Guidelines for success

8 © 2003 Prentice Hall, Inc. 4-7/74 Outline of Chapter 4  Outside sources of candidates Executive recruiters Entrepreneurs and HR College recruiting Recruiting goals On site visits Internship Referrals and walk-ins Internet recruiting

9 © 2003 Prentice Hall, Inc. 4-8/74 Outline of Chapter 4  Recruiting a more diverse workforce Recruiting single parents Older workers as a source of candidates Recruiting minorities and women Welfare to work Global talent search

10 © 2003 Prentice Hall, Inc. 4-9/74 Outline of Chapter 4  Developing and using application forms Purpose of application forms Equal opportunity and application forms Alternative dispute resolution Using application forms to predict job performance

11 © 2003 Prentice Hall, Inc. 4-10/74 What You Should Be Able to Do  Explain the main techniques used in employment planning and forecasting  Name and describe the main internal sources of candidates  List and discuss the main outside sources of candidates  Explain how to recruit a more diverse workforce  Develop an application blank

12 © 2003 Prentice Hall, Inc. 4-11/74 Steps in Recruitment and Selection Process Applicants complete application form Selection tools like tests screen out most applicants Supervisors and others interview final candidates to make final choice Employment planning and forecasting Recruiting builds pool of candidates

13 © 2003 Prentice Hall, Inc. 4-12/74 1. Decide what positions you’ll have to fill, by engaging in personnel planning and forecasting. 2. Build a pool of candidates for theses jobs by recruiting internal or external candidates. 3. Have applicants complete application forms and perhaps undergo an initial screening interview. 4. Use selection techniques like tests, background investigations, and physical exams to identify viable candidates. 5. Finally, decide who to make an offer to, by having the supervisor and (perhaps) others on the team interview the final candidates. Steps in Recruitment and Selection Process

14 © 2003 Prentice Hall, Inc. 4-13/74 EMPLOYMENT PLANNING AND FORECASTING  Employment or personnel planning is the process of deciding what positions the firm will have to fill, and how to fill them. Definition Employment or personnel planning The process of deciding what positions the firm will have to fill, and how to fill them. Personnel planning covers all the firm’s future positions, from maintenance clerk to CEO. However, most firms use succession planning to refer to the process of deciding how to fill the company’s most important executive jobs.

15 © 2003 Prentice Hall, Inc. 4-14/74 How to Forecast Personnel Needs  Project revenues first then estimate the size of the staff required to achieve it  Staffing plans also must reflect: Projected turnover Quality and skills of your employees Strategic decisions Technological and other changes Financial resources Page 91 1. Projected turnover (as a result of resignations or terminations) 2. Quality and skills of your employees (in relation to what you see as the changing needs of your organization) 3. Strategic decisions to upgrade the quality of products or services or enter into new markets 4. Technological and other changes resulting in increased productivity 5. The financial resources available to your department

16 © 2003 Prentice Hall, Inc. 4-15/74 Methods to Predict Employment Needs  Trend analysis  Ratio analysis  Scatter plot  Managerial judgment plays a big role

17 © 2003 Prentice Hall, Inc. 4-16/74 Methods to Predict Employment Needs Page 91 Trend analysis Trend Analysis Trend analysis means studying variations in your firm’s employment levels over the last few years to predict future needs. Ratio Analysis Another approach, ratio analysis, means making forecasts based on the ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (for instance, number of salespeople). The Scatter Plot A scatter plot shows graphically how two variables.such as a measure of business activity and your firm’s staffing levels.are related. If they are, then if you can forecast the level of business activity, you should also be able to estimate your personnel requirements. The chart shows hospital size on the horizontal axis. Number of nurses is shown on the vertical axis. If the two factors are related, then the points will tend to fall along a straight line, as they do here. If you carefully draw in a line to minimize the distances between the line and each one of the plotted points, you will be able to estimate the number of nurses needed for each given hospital size. Managerial Judgment Whichever forecasting method you use, managerial judgment will play a big role. It’s rare that any historical trend, ratio, or relationship will simply continue unchanged into the future. You’ll therefore have to modify the forecast based on factors  such as projected turnover or a desire to enter new markets  you believe will be important.

18 © 2003 Prentice Hall, Inc. 4-17/74 Using Computers to Forecast Personnel Requirements  Computerized forecast  Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages Definition Page 92 Employers also use software programs to forecast personnel requirements.4 Typical data needed include direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections.minimum, maximum, and probable.for the product line in question.

19 © 2003 Prentice Hall, Inc. 4-18/74 Forecasting the Supply of Inside Candidates  Qualifications inventories  Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion Definition Page 93 Knowing your staffing needs only satisfies half the staffing equation. Next, you have to estimate the likely supply of both inside and outside candidates. Most firms start with the inside candidates. Here, the main task is determining which current employees might be qualified for the projected openings. For this you need to know your current employees’ skills sets.their current qualifications.

20 © 2003 Prentice Hall, Inc. 4-19/74 Manual Systems and Replacement Charts  Personnel inventory & development record help track employee qualifications  Personnel replacement charts are often used for filling a company’s top positions Page 93

21 © 2003 Prentice Hall, Inc. 4-20/74 Forecasting the Supply of Inside Candidates  Personnel replacement charts  Company records showing present performance and promotability of inside candidates for the most important positions Definition Page 93

22 © 2003 Prentice Hall, Inc. 4-21/74 Forecasting the Supply of Inside Candidates  Position replacement card  A card prepared for each position in a company to show possible replacement candidates and their qualifications Definition Page 93

23 © 2003 Prentice Hall, Inc. 4-22/74 Computerized Information Systems  Work experience codes  Product knowledge  Industry experience  Formal education  Training courses  Foreign language skills  Relocation limitations  Career interests  Performance appraisals  Skills

24 © 2003 Prentice Hall, Inc. 4-23/74 Computerized Information Systems Page 95 Work experience codes. A list of work experience titles, or codes describing the person’s jobs within the company. Product knowledge. The employee’s level of familiarity with the employer’s product lines or services. Industry experience. The person’s industry experiences, since for some positions work in related industries is very useful. Formal education. Each postsecondary educational institution attended, field of study, degree granted, and year granted. Training courses. Those taken or conducted by the employee, including courses taught by outside firms like the American Management Association. Foreign language skills. Which languages; degree of proficiency, spoken and written. Relocation limitations. The employee’s willingness to relocate and the locales he or she would prefer. Career interests. Work experience codes to indicate what the employee would like to be doing for the employer in the future. Performance appraisals. Updated periodically, along with a summary of the employee’s strengths and deficiencies. Skills. Skills such as “design graphic interface” (number of times performed, date last performed, time spent), as well as skill level, perhaps ranging from level 1 (can lead or instruct others) to level 3 (has some experience: can assist experienced workers).

25 © 2003 Prentice Hall, Inc. 4-24/74 Management Replacement Chart Page 95

26 © 2003 Prentice Hall, Inc. 4-25/74 The Matter of Privacy  Several things make it important to protect employee information: Computerized information systems Network access makes this information available Legislation Federal Privacy Act of 1974 New York Personal Privacy Act of 1985  Access matrices may help Page 96 Several things make it increasingly important to secure the data in the firm’s personnel data banks. First, as you can see, there is a lot of employee information in most such data banks. Second, Internet/intranet access and other changes mean it’s often easier for more people to access these data. Third, legislation, such as the Federal Privacy Act of 1974 and the New York Personal Privacy Act of 1985, gives some employees legal rights regarding who has access to information about their work history and job performance.

27 © 2003 Prentice Hall, Inc. 4-26/74 Forecasting the Supply of Outside Candidates  Monitoring general economic conditions  Business Week, Fortune, Economist and Wall Street Journal  U.S. Government

28 © 2003 Prentice Hall, Inc. 4-27/74 Effective Recruiting: The Yield Pyramid  New hires  Offers made (2 : 1)  Interviewed (3 : 2)  Invited (4 : 3)  Leads generated (6 : 1) Page 98

29 © 2003 Prentice Hall, Inc. 4-28/74 Internal Sources of Candidates  No substitute for knowing a candidate’s strengths and weaknesses  Inside candidates may be more committed to the company and can increase morale  Can backfire  Can promote inbreeding

30 © 2003 Prentice Hall, Inc. 4-29/74 Internal Sources of Candidates Page 99 It is often therefore safer to promote employees from within, since you’re likely to have a more accurate view of the person’s skills than you would an outsider’s. Inside candidates may also be more committed to the company. Morale may rise, to the extent that employees see promotions as rewards for loyalty and competence. Inside candidates may also require less orientation and training than outsiders. Employees who apply for jobs and don’t get them may become discontented; telling unsuccessful applicants why they were rejected and what remedial actions they might take to be more successful in the future is thus crucial. When all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is what’s required.

31 © 2003 Prentice Hall, Inc. 4-30/74 Finding Candidates  Job posting publicizing the open job to employees and listing its attributes like qualifications, supervisor, work schedule, and pay rate  Rehiring former employees an option today due to the tight labor market Page 99 Job Posting Personnel records are also important. An examination of personnel records (including application forms) may reveal employees who are working in jobs below their educational or skill levels. It may also reveal persons who have potential for further training or who already have the right background for the open job.

32 © 2003 Prentice Hall, Inc. 4-31/74 Finding Internal Candidates  Succession planning: ensuring a suitable supply of successors for future senior jobs  Planning includes: Determine projected need Audit current talent Planning career paths Career counseling Accelerated promotions Performance related training Planned strategic recruitment Filling Page 100 Succession planning typically includes activities like these: Determining the projected need for managers and professionals by company level, function, and skill Auditing current executive talent to project the likely future supply from internal sources

33 © 2003 Prentice Hall, Inc. 4-32/74 Outside Sources of Candidates  Advertising – the advertising media and ad content  Select the best media – local paper, WSJ, TV, or internet depending on the position

34 © 2003 Prentice Hall, Inc. 4-33/74 Outside Sources of Candidates American Psychologi st THE WALL STREET JOURNAL Instructor’s Note: Use this slide to visit professional journals and view and discuss job postings.

35 © 2003 Prentice Hall, Inc. 4-34/74  Use the AIDA guide (attention, interest, desire, and action) to construct ads  Be creative - use of ad agencies might help develop and promote a companies image Ad Construction Page 101 Jerry Holder’s ongoing recruiting efforts for the workers he needs in the two Allegra Print and Imaging locations he manages in Tulsa begin with help wanted advertising. Holder places “friendly” newspaper ads, written in warm, welcoming language, to attract candidates for sales, production, and quality-control positions. The ads’ message is, “Let’s see if it fits. Come in and see the place.” Holder then offers each prospect a shop tour and introductions to key employees.

36 © 2003 Prentice Hall, Inc. 4-35/74 Employment Agencies  Types of agencies: Public agencies and non profit  Private agencies

37 © 2003 Prentice Hall, Inc. 4-36/74 Employment Agencies Page 103 Instructor’s Note: Ask students - Why turn to an agency? Reasons include: 1. Your firm doesn’t have its own HR department and is not geared to doing recruiting and screening. 2. Your firm has found it difficult in the past to generate a pool of qualified applicants. 3. You must fill a particular opening quickly. 4. There is a perceived need to attract a greater number of minority or female applicants. 5. You want to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies. 6. You want to cut down on the time you’re devoting to interviewing.

38 © 2003 Prentice Hall, Inc. 4-37/74 How to Avoid Problems With Employment Agencies  Provide full and accurate job description  Specify the screening tools to use  Review data on candidates accepted or rejected by your firm and by the agency  Develop a long-term relationships with one or more agencies  Screen the agency Page 104 Job description – The better the employment agency understands the job to be filled, the greater the likelihood it will produce a reasonable pool of applicants. Screening tools – Tests, application blanks, and interviews should be a proven part of the employer’s selection process. Periodic candidate review – will server as a check on the effectiveness and fairness of the agency’s process. Agency relationship – It may also make sense to designate one person to serve as the liaison between the employer and the agency. Agency screening – Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions you need filled.

39 © 2003 Prentice Hall, Inc. 4-38/74 Temp Agencies  Alternative staffing often used to supplement a permanent workforce  One year 100,000 people found temp work in engineering, science and management support Page 104 Employers often supplement their permanent workforce by hiring contingent or temporary workers, often through temporary help employment agencies. Also known as part-time or just-in-time workers, the contingent workforce is big and growing. It recently accounted for about 20% of all new jobs created in the United States. Such workers are broadly defined as workers who don’t have permanent jobs. Today’s contingent workforce isn’t limited to clerical or maintenance staff. In one year, almost 100,000 people found temporary work in engineering, science, or management support occupations, for instance. And growing numbers of firms use temporary workers as short-term chief financial officers, or even chief executive officers.

40 © 2003 Prentice Hall, Inc. 4-39/74 Guidelines for Success Dehumanized Insecure Worried Misled “Underemployed” Angry Some temp workers felt

41 © 2003 Prentice Hall, Inc. 4-40/74  Page 105 – 106  1. Treated by employers in a dehumanizing, impersonal, and ultimately discouraging way.  2. Insecure about their employment and pessimistic about the future.  3. Worried about their lack of insurance and pension benefits.  4. Misled about their job assignments and in particular about whether temporary assignments were likely to become full-time positions.  5. “Underemployed” (particularly those trying to return to the full-time labor market).  6. In general angry toward the corporate world and its values; participants repeatedly expressed feelings of alienation and disenchantment. Guidelines for Success

42 © 2003 Prentice Hall, Inc. 4-41/74 Guidelines for Temp Workers  Honest information  Policies for fair treatment  Use independent contractors and permanent part-time workers  Consider impact on permanent workers  Provide training and orientation  Beware of legal snares in your payroll decisions

43 © 2003 Prentice Hall, Inc. 4-42/74 Guidelines for Temp Workers  Page 106  1. Provide honest information to both temporary agencies and temporary workers about the length of the job assignment.  2. Implement personnel policies that ensure fair, nondiscriminatory treatment of temporary workers, as you do for permanent ones.  3. Use independent contractors (people who  like consultants  work for themselves rather than for the company) and permanent part- time employees to complement the conventional temporary agency workforce. These people are likely to be more  familiar with your firm’s procedures and more committed to its goals than are temporary workers.  4. Before hiring temporary workers, consider their potential impact on regular fulltime employees. For example, any apparent exploitation or mistreatment of contingent workers may have a corrosive effect on permanent workers’ morale.  5. Provide the necessary training and orientation. One survey’s comments included, “[Organizations] need to be more specific in their instructions to temps. Give them the [correct] tools and materials to do their jobs.”  6. Don’t use a classification such as “independent contractor” to avoid paying the taxes to which temp (or regular) employees are actually entitled.

44 © 2003 Prentice Hall, Inc. 4-43/74 Policies to Use With Agencies  Invoicing  Time sheets  Temp-to-perm policy  Recruitment of and benefits for temp employees  Dress code  EEO statement  Job description information

45 © 2003 Prentice Hall, Inc. 4-44/74 Policies to Use With Agencies Page 106 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 what sorts of benefits it pays. Dress code. Specify the appropriate attire at each of your offices or plants. Equal employment opportunity statement. Get a document from the agency stating that it is not discriminating when filling temp orders. Job description information. Have a procedure whereby you can ensure the agency understands the job to be filled and the sort of person, in terms of skills and so forth, you want to fill it.

46 © 2003 Prentice Hall, Inc. 4-45/74  Headhunters Special employment agencies used to seek out top management and technical talent  Internet databases have shortened time required to find talent  Online executive recruiting firm Executive Recruiters futurestep

47 © 2003 Prentice Hall, Inc. 4-46/74 Executive Recruiters Page 107 Recruiters They fill jobs in the $60,000-and-up category, although $80,000 is often the lower limit. The percentage of your firm’s positions filled by these services might be small. However, these jobs would include crucial executive and technical positions. For executive positions, headhunters may be your only source of candidates. The employer always pays their fees. Two trends.technology and specialization.are changing the executive search business. Most recruiting firms are therefore establishing Internet-linked computerized databases the aim of which, according to one senior recruiter, is “to create a long list by pushing a button. Executive recruiters are also becoming more specialized, and the large ones are creating new businesses aimed specifically at specialized functions or industries.

48 © 2003 Prentice Hall, Inc. 4-47/74 Tips on Choosing a Recruiter  Ask about the cost  Be sure you can trust them with privileged information  Talk to prior clients  Can they conduct a thorough search?  Meet individual who will handle the search

49 © 2003 Prentice Hall, Inc. 4-48/74 Tips on Choosing a Recruiter Page 107 – 108 1.Make sure the firm is capable of conducting a thorough search. Under the code of the Association of Executive Recruiting Consultants, a recruiter can’t approach the executive talent of a former client for a vacancy with a new client for a period of two years after completing a search for the former client. 2.Meet the individual who will actually handle your assignment. If this person hasn’t the ability to seek out top candidates and sell them on your firm, it’s unlikely you’ll get to see the best candidates. 3.Ask how much the search firm charges. There are several things to keep in mind here. Search firm fees range from 25% to 35% of the guaranteed annual income of the position. They are often payable one-third as a retainer at the outset, one-third at the end of 30 days, and one-third after 60 days. 4.Choose a recruiter you can trust with privileged information. This person won’t find just your firm’s strengths, but also its weaknesses. 5.Talk to some of the firm’s clients. Get the names of two or three companies for whom the firm has recently completed assignments. Ask such questions as: “Was the recruiter’s appraisal of the candidate accurate?” “Was the placement a success? Did the firm conduct a search, or just fill the job from its files?” “And did the recruiter accurately craft the job specifications?”

50 © 2003 Prentice Hall, Inc. 4-49/74 Outside Hiring  College recruiting goals are: Attract good candidates Cull candidates for further consideration  Onsite visits  Internships  Referrals and walk-ins

51 © 2003 Prentice Hall, Inc. 4-50/74 Outside Hiring Page 109 College Recruiting Goals The campus recruiter has two main goals. The main one is determining whether a candidate is worthy of further consideration. The other aim is to attract good candidates. A sincere and informal attitude, respect for the applicant as an individual, and prompt follow-up letters can help sell the employer to the interviewee. There are two main problems with on-campus recruiting. First, it is expensive and time consuming. Second, as mentioned earlier, recruiters themselves are sometimes ineffective, or worse. On-Site Visits Employers generally invite good candidates to the employer’s office or plant for an on-site visit. The invitation letter should be warm and friendly but businesslike, and should give the person a choice of dates to visit the company. Assign someone to meet the applicant, preferably at the airport or at his or her hotel, and to act as host. A package describing the applicant’s schedule as well as other information regarding the company.such as annual reports and employee benefits.should be waiting. Internships Internships can be winwin situations for both students and employers. For students, it may mean being able to hone business skills, check out potential employers, and learn more about their likes (and dislikes) when it comes to choosing careers. And employers, of course, can use the interns to make useful contributions while evaluating them as possible full-time employees. Referrals and Walk-Ins The firm posts announcements of openings and requests for referrals in its bulletin and on its wallboards and intranet; prizes or cash rewards are offered for referrals that culminate in hirings. Employee referrals have been the source of almost half of all hires at AmeriCredit since the firm kicked off its “you’ve got friends, we want to meet them” employee referrals program.

52 © 2003 Prentice Hall, Inc. 4-51/74 Name of person interviewed Applying for position Department Qualifications ExcellentSatisfactory Poor Communication Education Related Experience Interpersonal Skills Problem Solving Skills Adaptable to change Comments:Completed by Campus Interview Report

53 © 2003 Prentice Hall, Inc. 4-52/74 Recruiting on the Net Many companies are turning to the Internet as a recruiting tool Corporate and employment web pages are one approach Internet recruiting is cost effective and timely careerbuilder Page 112 A large and fast-growing proportion of employers use the Internet as a recruiting tool. The percentage of Fortune 500 companies recruiting via the Internet jumped from 10% in 1997 to 75% in 2000.

54 © 2003 Prentice Hall, Inc. 4-53/74 Network Recruiting Resources  Visit these sites. computerjobs.com Page 113 Some firms have been phenomenally successful using Internet recruiting. For example, when Boeing Company had to hire 13,000 employees fast, it opened its recruiting Web site. Only 200 résumés were received the first month, but within three months 19,000 résumés had arrived, and in six months, 50,000.

55 © 2003 Prentice Hall, Inc. 4-54/74 Internet Recruiting  While monster.com may have 5 million online resumes there may be 2-3x that on the internet Go to Conduct searches for specific areas and talents Tripod and Yahoo also search resume databases for locating possible employees TripodYahoo

56 © 2003 Prentice Hall, Inc. 4-55/74 Internet Recruiting Page 114 – 115 When it comes to effective recruiting, the rubber really hits the road, as they say, when it comes to recruiting high-tech workers. Turnover among these in-demand elites is reportedly around 17%. And according to the Information Technology Association of America, about 1 out of 10 information technology jobs in the Untied States is unfilled.

57 © 2003 Prentice Hall, Inc. 4-56/74 Recruiting High-tech  GE medical is an industry leader which illustrates the best practices of recruiting high-tech workers  GE medical applies benchmarked purchasing techniques to dealing with recruiters  Recruitsoft powers enterprise recruiting Recruitsoft

58 © 2003 Prentice Hall, Inc. 4-57/74 Recruiting a More Diverse Workforce  Recruiting single parents – you must understand their concerns  Older workers – 80% of baby boomers will work beyond retirement age Check policies – don’t force oldsters to leave Use flexible work options Remake suitable jobs Offer customized benefit plans

59 © 2003 Prentice Hall, Inc. 4-58/74 Recruiting a More Diverse Workforce Page 116 – 11Page 114 – 115 When it comes to effective recruiting, the rubber really hits the road, as they say, when it comes to recruiting high-tech workers. Turnover among these in-demand elites is reportedly around 17%. And according to the Information Technology Association of America, about 1 out of 10 information technology jobs in the Untied States is unfilled. 7 About two-thirds of all single parents are in the workforce today, and this group is an important source of candidates. Attracting single parents begins with understanding the problems they encounter in balancing work and family life. In one survey, working single parents (the majority single mothers) said their work responsibilities interfered significantly with their family life. They described the challenge of having to do a good job at work and being a good parent; many expressed disappointment at feeling like failures in both endeavors. Given such concerns, the first step in attracting (and keeping) single mothers is to make the workplace as user friendly for them as is practical. Many firms aim at being more family friendly, but their programs may not be extensive enough, particularly for single parents. Instructor’s note: Many students work and attend school at the same time. This could be a good discussion topic in class, perhaps even a small group session with the goal being a list of five items a company could do to be more helpful for people who have significant life responsibilities.

60 © 2003 Prentice Hall, Inc. 4-59/74 Older Workers As a Source of Candidates  Supply and demand Retirees will double to 4 million Fewer young people entering the workforce  Practicality Physical and cognitive abilities Drop in absenteeism

61 © 2003 Prentice Hall, Inc. 4-60/74 Older Workers As a Source of Candidates Page 117 Employers are increasingly looking to older workers as a source of recruits, for several reasons. Supply is one thing: Because of buyouts and early retirements, many workers retired early and are ready and willing to reenter the job market. Furthermore, the number of annual retirees will soon double to approximately 4 million, and “there will be, I guarantee it, many millions of boomers who will have to work beyond age 65 because they simply haven’t saved enough money to retire,” says a demographer.115 Demand is another: Fewer 18- to 25-year-olds are available to enter the workforce. Is it practical in terms of productivity to keep older workers on? The answer seems unequivocally to be yes. Age-related changes in physical ability, cognitive performance, and personality have little effect on workers’ output except in the most physically demanding tasks. Similarly, creative and intellectual achievements don’t decline with age, but absenteeism drops. Older workers also usually display more company loyalty than younger workers, tend to be more satisfied with their jobs and supervision, and can be trained or retrained as effectively as anyone.

62 © 2003 Prentice Hall, Inc. 4-61/74 Recruiting a More Diverse Workforce  Recruiting minorities and women – formulate comprehensive plans  Welfare-to-work – the key is training  Searching globally – many global companies actively recruit foreign nationals

63 © 2003 Prentice Hall, Inc. 4-62/74 Recruiting a More Diverse Workforce Page 118 The same prescriptions that apply to recruiting older workers apply to recruiting minorities and women. In other words, you should formulate comprehensive plans for attracting and retaining these groups, plans that may include reevaluating personnel policies, developing flexible work options, redesigning jobs, and offering flexible benefit plans. The Federal Personal Responsibility and Welfare Reconciliation Act of 1996 prompted many employers to implement “welfare-to-work” programs for attracting and assimilating former welfare recipients. Recruiting internationally is important for several reasons. Sometimes the employer has virtually no choice. For example, many U.S. companies are looking in the United Kingdom, Germany, and Western Europe for high-tech employees to fill jobs that are going begging in the U.S. Technology can make global searches easier. Gillette International has an international graduate training program aimed at identifying and developing foreign nationals. Gillette subsidiaries abroad hire outstanding business students from top local universities. They then train these foreign nationals for 6 months at Gillette facilities in their home countries. Some then spend 18 months in training at the firm’s Boston headquarters in areas like finance and marketing. Some of these trainees get offers of entry-level management positions at Gillette facilities in their home countries. In addition to recruiting students abroad, Coca-Cola looks for foreign students studying in well-known international business programs like those at UCLA and the American Graduate School of International Management in Arizona.

64 © 2003 Prentice Hall, Inc. 4-63/74  Application forms provide 4 types of info Developing Application Forms Does candidate have the necessary education or experience ? Provides applicants previous progress and growth Provides previous work record to assess the applicants suitability Application data can determine if applicant will succeed

65 © 2003 Prentice Hall, Inc. 4-64/74 Developing Application Forms Page 119 – 120 A filled-in form provides four types of information. First, you can make judgments on substantive matters, such as whether the applicant has the education and experience to do the job. Second, you can draw conclusions about the applicant’s previous progress and growth, a trait that is especially important for management candidates. Third, you can draw tentative conclusions regarding the applicant’s stability based on previous work record. Fourth, you may be able to use the data in the application to predict which candidates will succeed on the job and which will not.

66 © 2003 Prentice Hall, Inc. 4-65/74 Developing Application Forms  Must NOT have questions in an application form to be EEO compliant Education dates Arrest record Relationship of a “notify in case of emergency” Membership in organizations Physical handicaps Marital status Housing status

67 © 2003 Prentice Hall, Inc. 4-66/74 Developing Application Forms Page 120 Questions to beware of include: Education. A question on the dates of attendance and graduation from various schools  academic, vocational, or professional  is one potential violation. This question may be illegal insofar as it may reflect the applicant’s age. Arrest record. The courts have usually held that employers violate Title VII by disqualifying applicants from employment because of an arrest record. This item has an adverse impact on minorities, and employers usually can’t show it’s required by business necessity. Notify in case of emergency. It is generally legal to require the name, address, and phone number of a person to notify in case of emergency. However, asking the relationship of this person to the applicant could indicate the applicant’s marital status or lineage. Membership in organizations. Many forms ask the applicant to list memberships in clubs, organizations, or societies along with offices held. Employers should add instructions not to include organizations that would reveal race, religion, physical handicaps, marital status, or ancestry. Physical handicaps. It is usually illegal to require the listing of an applicant’s physical handicaps, defects, or past illnesses unless the application blank specifically asks only for those that “may interfere with your job performance.” Marital status. In general, the application should not ask whether an applicant is single, married, divorced, separated, or living with anyone, or the names, occupations, and ages of the applicants’ spouse or children. Housing. Asking whether an applicant owns, rents, or leases a house may also be discriminatory. It can adversely affect minority groups and is difficult to justify on grounds of business necessity.

68 © 2003 Prentice Hall, Inc. 4-67/74 Sample Applications  Governor's Job Bank Governor's Job Bank  South Carolina State Government Application for Employment South Carolina State Government Application for Employment  Federal Employment Application Federal Employment Application

69 © 2003 Prentice Hall, Inc. 4-68/74 Applications to Predict Job Performance  Much like screening, some firms use job applications as a tool to predict future performance  They conduct statistical studies to find relationships between responses and success  Risk here is asking overly intrusive question

70 © 2003 Prentice Hall, Inc. 4-69/74 Summary Slide  Steps in recruitment and selection process  Employment planning and forecasting  How to forecast personnel needs  Methods to predict employment needs

71 © 2003 Prentice Hall, Inc. 4-70/74 Summary Slide (Cont.)  Using computers to forecast personnel requirements  Forecasting the supply of inside candidates  Computerized information systems  Management replacement chart

72 © 2003 Prentice Hall, Inc. 4-71/74 Summary Slide (Cont.)  Forecasting the supply of outside candidates  Effective recruiting: the yield pyramid  Internal sources of candidates  Finding internal candidates  Outside sources of candidates

73 © 2003 Prentice Hall, Inc. 4-72/74 Summary Slide (Cont.)  Employment agencies  How to avoid problems with employment agencies  Temp agencies  Guidelines for success  Guidelines for temp workers  Policies to use with agencies

74 © 2003 Prentice Hall, Inc. 4-73/74 Summary Slide (Cont.)  Executive recruiters  Tips on choosing a recruiter  Outside hiring  Internet recruiting  Recruiting high-tech  Recruiting a more diverse workforce  Older workers as a source of candidates

75 © 2003 Prentice Hall, Inc. 4-74/74 Summary Slide (Cont.)  Developing application forms  Sample applications  Applications to predict job performance


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