1. Internal and External Recruiting
MANA 5341
Dr. George Benson 1

2. HR Planning How many people do we need?
Product Demand X Labor Productivity
Turnover
Where are they coming from?
Internal Labor Market
Existing employees
External Labor Market
Potential employees

3. HR Planning Labor demand Labor supply Strategic Planning
Succession Planning
Managing Retention
Labor supply
Labor markets
Specific shortages
Labor Demand
Labor Supply

4. Forecasting Demand for Employees
Budgeting
Statistical Techniques
Trend analysis
Regression
Probability models
Qualitative Techniques
Ask the experts / Delphi Technique
Needs are then compared to current workforce to identify gaps and decide staffing actions.
Take into account:
Productivity and FTE employees
Scheduling and shifts
High volume / traffic times

5. Trend Analysis of HR Demand
BUSINESS  LABOR = HUMAN RESOURCES FACTOR PRODUCTIVITY DEMAND
YEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)
1998 $2,
1999 $2,
2000 $2,
2001 $3,
2002 $3,
2003 $3,
2004 $3,
2005* $4,
2006* $4,
2007* $4,
*Projected figures

6. Forecasting Supply of Employees
Internal Labor Market
An internal survey of Houston Police Department officers eligible for retirement in 2004 found that 534 plan to leave that year - a 300% increase over recent years that translates into 1 in 10 officers.
External Labor Market
CVS disclosed in its annual report that it was forced to cut pharmacy hours in 2003 due to lack to qualified pharmacists.

7. Forecasting Supply of Employees
Staffing Tables
Markov Analysis
Skill Inventories
Replacement Charts
Succession Planning

8. Forecasting Internal Labor Supply
Staffing Tables
Graphic representations of the number of employees currently occupying certain jobs and future (monthly or yearly) employment requirements.
Markov Analysis
A method for tracking the pattern of employee promotions up through and organization.

9. Markov Analysis for a Retail Company

10. Internal Demand Forecasting Tools
Skill Inventories
Databases of employee KSA’s, education, and used to match job openings with employee backgrounds.
Succession Planning / Replacement Charts
The process of identifying, developing, and tracking key individuals for executive positions.
Listings of current jobholders and persons who are potential replacements if an opening occurs.

11. Replacement Charts

12. Forecasting Databases
PeopleSoft, SAP and Many Others
“Army Leads the Way in Forecasting Its Hiring Needs” Washington Post April 29, 2001
(WASS) Workforce Analysis &Support System
WASS holds 25 years' worth of data on Army civil service jobs and can be used to analyze long-term workforce trends.
(CIVFORS) Civilian Forecasting System
Computerized Forecasting System
Army hires 25,000 people annually

13. Shifting Age Distributions in the Civilian Workforce
Since 1989
Significant decrease in age groups less than 44
Build-up of retirement eligibles
Strength
FY89
Median Age 42
FY01
Median Age 48
The aging issue has been predicted for sometime - in large part it is a result of how we downsized - not replacing behind losses we went from an median age of 42 in FY 89 to an median age of 48 in Sep FY 01 and built-up retirement eligible populations
STOP! Hand out and review Stat Terms slide 2 (“averages”).
Chart shows Age Distribution and how it has changed over time (FY89 vs 00). The aging issue has been predicted for sometime - in large part it is a result of how we downsized - not replacing behind losses we went from an median age of 42 in FY 89 to an median age of 48 in Sep FY 00 and build-up retirement eligible populations
Ask: How might age distribution affect our workforce? (experience levels, retirement eligibility, higher grade levels, etc.). Continuity of the workforce could be a problem.
Data for this charts came from WASS. The chart was developed in Excel. You will duplicate this chart using WASS for your population of interest (cmd, car prog, etc).
Age
U.S. Citizen, Direct Hire, Appropriated Fund, Military & Civil Functions

14. 911 Call Center Staffing
Call center handles a peak of 720 calls per hour.
Average call lasts 1 minute.
Must be fully staffed 24 hours a day taking into account variations in activity by hour and day.
Each dispatcher must work only 40 hours in any given week to avoid paying overtime.
Each dispatcher must have days-off according to any applicable laws and union agreements.
Take into account the usual absence rate, including sick leave, vacation and other leave .
Take into account the desires of the employees.

15. 911 Call Center Staffing
How many dispatchers do I need to answer 720 number of phone calls per hour?
How many employees do I need to staff a certain number dispatchers per shift?
What days and hours should the dispatchers be assigned to work?

16. 911 Call Center Staffing How many dispatchers do I need per shift?
Peak of 720 calls per hour and 1 minute per call = 12 dispatchers
How many employees do I need to staff 12 per shift?
Three 8 hour shifts X 12 dispatchers = 36 dispatchers for 24 hour coverage
“Vacancy factor” is used to account for time off.
36 x 1.7 = 61.2 employees
What days and hours should the dispatchers be assigned to work?
Shift Length Variations ( or variable hours)
Same days-off or rotating?
Same shifts or rotating?

17. “Vacancy Factor”
Indicates how many persons it takes to fill a position for a single shift, taking into account vacation, sick leave, training days, and other types of leave.
Total the number of days-off for all dispatchers including days off per week, vacation, sick time, training days etc.
Divide the total by the number of employees to obtain an individual average days-off per employee.
Subtract the above figure from 365 (days in a year) to estimate the average "days-on” per employee.
Divide 365 by the above number to obtain the vacancy or factor call centers average between 1.4 to 1.7.

18. Mapping Human Capital Core knowledge workers
Employees who have firm-specific skills that are directly linked to the company’s strategy. Example: Senior software programmer
Traditional job-based employees
Employees with skills to perform a predefined job that are quite valuable to a company, but not unique. Example: Security guard
Contract labor
Employees whose skills are of less strategic value and generally available to all firms. Example: General electrician
Alliance/partners
Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy. Example: Independent product label designer

19. Mapping Human Capital

20. Process Inputs and Outputs
HR Planning:
Number of jobs
to be filled
Recruitment:
Pool of qualified and interested applicants
Selection:
Job Offers
Job Analysis:
Job Descriptions and Minimum KSA’s

21. RECRUITMENT
Process of identifying and attracting potential job applicants who are qualified for job openings and interested in working for your organization.

22. Internal Recruiting Why recruit internally? Why NOT recruit internally
Open vs. Closed recruiting
When should you post a job?
When should you NOT post a job?
Succession Planning
Strategic Microsoft
GE “Session C”

23. Succession Planning at GE
Roughly 75 positions in top 500 are vacant each year.
GE fills about 20% from outside the organization.
Management Development Program
GE Execs prepare resumes listing their accomplishments, strengths, and ideal next moves.
CEO and top managers decide who is selected
Only 360 professionals--six classes of 60--get selected.
Special Job Assignments
Lead “Work-Out”
“Popcorn Stands” or “Grocery Counters”
Coaching / Mentoring
Outside classes and learning opportunities

24. Opportunistic Hiring
Companies need to hunt for talent continuously to capture people when they are ready to make a move.
Identify ideal candidates and court that person.
Hire them for a specific position even if the slot is not currently open.
While they are waiting for that position they can be doing special projects and getting to know the organization.
GE brings in 100 people a year
Within 18 months they are hired from the “bullpen” into line jobs within the different divisions.

25. External Recruiting Costs
Average cost per hire:
$9,000 for exempt employees
$900 for non-exempt
(data from Saratoga Institute)
Administrative costs
Staff time
Supplies
Interview costs
Relocation expenses
Lost productivity or overtime associated with vacant position.
Some examples:
Dallas Morning News
30-Day Online Posting - $360
With a 7 days in paper - $500
Monster.com
60–Day Job Posting - $395
Resume Search Starts $500
Executive Headhunters
30% – 35% starting salary plus expenses

26. Assessing Recruiting Effectiveness
Cost per hire
Time to hire
Tenure of employees recruited
Job performance of employees recruited
Yield ratios
Applicants per source
Candidates per applicant
Offers per candidate
Acceptance per offer
New hire per acceptance
Measure effectiveness of advertisements by coding responses.

27. Yield Ratios
The ratio of applicant inputs to outputs at various points in the recruitment process.
Total Applicants
Qualified Applicants
Invited to Interview
Job Offers
New Hires
Overall Yield:
YIELD
50% / 2.0
20% / 5.0
40% / 2.5
75% / 1.33
3% / 33.3
100 50 10 4 3

28. External Recruiting Sources
Walk-ins Broad
Internet
Print advertisements
Colleges & Universities
Job Fairs
Employment agencies
Temporary agencies
Referrals from current employees
Former employees
Headhunters
Narrow

29. Deciding on a Source Quantity of applicants Quality of applicants
Large headcount vs. single jobs
Quality of applicants
Specialized skills vs. general skills
Types of people that the media reaches
Location and Relocation
Budget
Diversity / EEO

30. Effectiveness of Recruitment Sources
Source: David E. Terpstra, “The Search for Effective Methods.” Reprinted from HRFocus, May © 1996 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved.

31. What is Most Important For You?
Interesting work
Wage / Salary
Incentive Pay
Benefits
Growth / Development Opportunities
Job Security
Location

32. Choosing A Message Messages can be tailored for individual groups:
Amount of contingent pay
Team vs. individual work and appraisals
Promotion opportunities
“Promotes from within” top consideration for MBA’s
Retailing jobs – Wal Mart, Home Depot, Target
Details about the company
“Fun place to work”
Environmentally friendly
“Affirmative Action Employer”

33. Choosing A Message Messages should be both attractive and accurate:
Beware of the specificity and accuracy of information
“Unlimited growth potential”
Amount of travel required
Nature of the work
Salary included? Benefits described?
Selling the job vs. Realistic job preview
Self-selection
Higher commitment and less turnover

34. Gimme an Rx! Cheerleaders Pep Up Drug Sales
As an ambitious college student, Cassie Napier had all the right moves - flips, tumbles, an ever-flashing America's sweetheart smile - to prepare for her job after graduation. She became a drug saleswoman.
Known for their athleticism and persuasive enthusiasm, cheerleaders have many qualities the drug industry looks for in its sales force.
T. Lynn Williamson, Ms. Napier's cheering adviser at Kentucky, says he regularly gets calls from recruiters looking for talent, mainly from pharmaceutical companies. "They watch to see who's graduating," he said.
NYT 11/28/05

35. Gimme an Rx! Cheerleaders Pep Up Drug Sales

36. Factors That Attract Top Talent
Source: E. G. Chambers, H. Hanafield-Jones, S. M. Hankin, and E. G. Michaels, III, “Win the War for Top Talent,” Workforce 77, no. 12 (December 1998): 50–56. Used with permission of McKinsey & Co.

37. Realistic Job Preview
Is the Army Stretched Too Thin? Time Aug. 24, 2003
“Peacekeeping is not what the U.S. troops were trained to do. Soldiers whose combat edge has been honed inside an M-1 tank are not well equipped to provide a war's victims with food and water.”
"The worst thing you can do, in terms of retention, is to have square pegs stuck in round holes," says David Chu, the Pentagon's personnel chief. "The guy or gal who doesn't get to do what he or she signed up to do is the most dissatisfied soldier."

38. “An Army of One”
The new slogan drew sharp criticism from some veterans and analysts who said it emphasized individualism over collective action.
MTV and Comedy Central
Army dragster and NASCAR
"I keep telling the old guys like me who are a little concerned about the nontraditional message that we're not recruiting you. Go ask your grandson or granddaughter what turns them on, and that's where you're going to find the Army.” Army Recruiter
Teens surveyed said they didn't feel that the Army was "made up of people." They thought joining the Army meant disappearing as a small cog in a large machine.