1. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R © 2008 Prentice Hall, Inc. All rights reserved. Personnel Planning and Recruiting Chapter 5 Part 2 | Recruitment and Placement

2. © 2008 Prentice Hall, Inc. All rights reserved.5–2 After studying this chapter, you should be able to: 1.Explain the main techniques used in employment planning and forecasting. 2.List and discuss the main outside sources of candidates. 3.Effectively recruit job candidates. 4.Name and describe the main internal sources of candidates. 5.Develop a help wanted ad. 6.Explain how to recruit a more diverse workforce.

3. © 2008 Prentice Hall, Inc. All rights reserved.5–3 The Recruitment and Selection Process 1.Decide what positions to fill through personnel planning and forecasting. 2.Build a candidate pool by recruiting internal or external candidates. 3.Have candidates complete application forms and undergo initial screening interviews. 4.Use selection tools to identify viable candidates. 5.Decide who to make an offer to, by having the supervisor and others interview the candidates.

4. © 2008 Prentice Hall, Inc. All rights reserved.5–4 FIGURE 5–1Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

5. © 2008 Prentice Hall, Inc. All rights reserved.5–5 FIGURE 5–2Linking Employer’s Strategy to Plans

6. © 2008 Prentice Hall, Inc. All rights reserved.5–6 Planning and Forecasting Employment or Personnel PlanningEmployment or Personnel Planning  The process of deciding what positions the firm will have to fill, and how to fill them. Succession PlanningSuccession Planning  The process of deciding how to fill the company’s most important executive jobs. What to Forecast?What to Forecast?  Overall personnel needs  The supply of inside candidates  The supply of outside candidates

7. © 2008 Prentice Hall, Inc. All rights reserved.5–7 Forecasting Personnel Needs Trend AnalysisScatter Plotting Forecasting Tools Ratio Analysis

8. © 2008 Prentice Hall, Inc. All rights reserved.5–8 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 200240 300260 400470 500 600620 700660 800820 900860

9. © 2008 Prentice Hall, Inc. All rights reserved.5–9 Drawbacks to Traditional Forecasting Techniques They focus on projections and historical relationships.They focus on projections and historical relationships. They do not consider the impact of strategic initiatives on future staffing levels.They do not consider the impact of strategic initiatives on future staffing levels. They support compensation plans that reward managers for managing ever-larger staffs.They support compensation plans that reward managers for managing ever-larger staffs. They “bake in” the idea that staff increases are inevitable.They “bake in” the idea that staff increases are inevitable. They validate and institutionalize present planning processes and the usual ways of doing things.They validate and institutionalize present planning processes and the usual ways of doing things.

10. © 2008 Prentice Hall, Inc. All rights reserved.5–10 Using Computers to Forecast Personnel Requirements Computerized ForecastsComputerized Forecasts  Software that estimates future staffing needs by:  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.  Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and probable.

11. © 2008 Prentice Hall, Inc. All rights reserved.5–11 FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

12. © 2008 Prentice Hall, Inc. All rights reserved.5–12 Forecasting the Supply of Inside Candidates Manual Systems and Replacement Charts Qualification Inventories Computerized Information Systems

13. © 2008 Prentice Hall, Inc. All rights reserved.5–13 The Matter of Privacy Ensuring the Security of HR InformationEnsuring the Security of HR Information  Control of HR information through access matrices  Access to records and employee privacy Legal ConsiderationsLegal Considerations  The Federal Privacy Act of 1974  New York Personal Privacy Act of 1985  HIPAA  Americans with Disabilities Act

14. © 2008 Prentice Hall, Inc. All rights reserved.5–14 FIGURE 5–5Keeping Data Safe 1.Perform background checks on anyone who is going to have access to personal information. 2.If someone with access to personal information is out sick or on leave, don’t hire a temporary employee to replace him or her. Instead, bring in a trusted worker from another department. 3.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. 4.Limit access to information such as SSNs, health information, and other sensitive data to HR managers who require it to do their jobs. 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:

15. © 2008 Prentice Hall, Inc. All rights reserved.5–15 Forecasting Outside Candidate Supply Factors In Supply of Outside CandidatesFactors In Supply of Outside Candidates  General economic conditions  Expected unemployment rate Sources of InformationSources of Information  Periodic forecasts in business publications  Online economic projections  U.S. Congressional Budget Office (CBO)  U.S. Department of Labor’s O*NET™  Bureau of Labor Statistics (BLS)  Other federal agencies and private sources

16. © 2008 Prentice Hall, Inc. All rights reserved.5–16 Effective Recruiting External Factors Affecting RecruitingExternal Factors Affecting Recruiting  Supply of workers  Outsourcing of white-collar jobs  Fewer “qualified” candidates Other Factors Affecting RecruitingOther Factors Affecting Recruiting  Consistency of recruitment with strategic goals  Types of jobs recruited and recruiting methods  Nonrecruitment HR issues and policies  Successful prescreening of applicants  Public image of the firm  Employment laws

17. © 2008 Prentice Hall, Inc. All rights reserved.5–17 Effective Recruiting (cont’d) Advantages of Centralizing RecruitmentAdvantages of Centralizing Recruitment  Strengthens employment brand  Facilitates applying strategic priorities  Reduces duplication of HR activities  Reduces cost of new HR technologies  Builds teams of HR experts  Provides better measurement of HR performance  Allows for sharing of applicant pools

18. © 2008 Prentice Hall, Inc. All rights reserved.5–18 FIGURE 5–6Sample Acceptable Questions Once Conditional Offer Is Made 1.Do you have any responsibilities that conflict with the job vacancy? 2.How long have you lived at your present address? 3.Do you have any relatives working for this company? 4.Do you have any physical defects that would prevent you from performing certain jobs where, to your knowledge, vacancies exist? 5.Do you have adequate means of transportation to get to work? 6.Have you had any major illness (treated or untreated) in the past 10 years? 7.Have you ever been convicted of a felony or do you have a history of being a violent person? (This is a very important question to avoid a negligent hiring or retention charge.) 8.What is your educational background? (The information required here would depend on the job-related requirements of the position.)

19. © 2008 Prentice Hall, Inc. All rights reserved.5–19 Measuring Recruiting Effectiveness What to Measure How to Measure Evaluating Recruiting Effectiveness

20. © 2008 Prentice Hall, Inc. All rights reserved.5–20 TABLE 5–1Selection Devices that Could be Used to Initially Screen Applicants Selection Device Validity for Predicting Job Performance* Construct General mental ability tests0.51 Conscientiousness tests0.31 Integrity tests0.41 Method Work sample tests0.54 Job knowledge tests0.48 Structured interviews0.51 Biographical data0.35 Grade point average0.23 Ratings of training and experience0.11 Note: *Higher is better. Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.

21. © 2008 Prentice Hall, Inc. All rights reserved.5–21 FIGURE 5–7Recruiting Yield Pyramid

22. © 2008 Prentice Hall, Inc. All rights reserved.5–22 Internal Candidates: Hiring from Within Foreknowledge of candidates’ 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 Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo AdvantagesDisadvantages

23. © 2008 Prentice Hall, Inc. All rights reserved.5–23 Finding Internal Candidates Hiring from Within Job Posting Succession Planning (HRIS) Rehiring Former Employees

24. © 2008 Prentice Hall, Inc. All rights reserved.5–24 Outside Sources of Candidates 12 345 Advertising Recruiting via the Internet Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 67 89 On Demand Recruiting Services (ODRS) Executive Recruiters College Recruiting Referrals and Walk-ins Locating Outside Candidates

25. © 2008 Prentice Hall, Inc. All rights reserved.5–25 Outside Sources of Candidates (cont’d) Recruiting via the InternetRecruiting via the Internet  Advantages  Cost-effective way to publicize job openings  More applicants 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  Exclusion of older and minority workers  Excessive number of unqualified applicants  Personal information privacy concerns of applicants

26. © 2008 Prentice Hall, Inc. All rights reserved.5–26 FIGURE 5–8 Top Job Boards Ranked According to Average Number of Job Listings Source: Workforce Management, May 22, 2006, p. 12.

27. © 2008 Prentice Hall, Inc. All rights reserved.5–27 FIGURE 5–9Ineffective and Effective Web Ads Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.

28. © 2008 Prentice Hall, Inc. All rights reserved.5–28 Advertising for Outside Candidates The Media ChoiceThe 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 AdsEffective Ads  Create attention, interest, desire, and action (AIDA).  Create a positive impression of the firm.

29. © 2008 Prentice Hall, Inc. All rights reserved.5–29 FIGURE 5–10Help Wanted Ad That Draws Attention Source: The New York Times, May 13, 2007, Business p. 18.

30. © 2008 Prentice Hall, Inc. All rights reserved.5–30 Employment Agencies Public Agencies Private Agencies Types of Employment Agencies Nonprofit Agencies

31. © 2008 Prentice Hall, Inc. All rights reserved.5–31 Outside Sources of Candidates (cont’d) Why Use a Private Employment AgencyWhy 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 more minority or female applicants.  To reach currently employed individuals who are more comfortable dealing with agencies.  To reduce internal time devoted to recruiting.

32. © 2008 Prentice Hall, Inc. All rights reserved.5–32 Outside Sources of Candidates (cont’d) Avoiding Problems with Employment AgenciesAvoiding 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.  Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process.  Screen agency for effectiveness in filling positions.  Supplement the agency’s reference checking by checking the final candidate’s references yourself.

33. © 2008 Prentice Hall, Inc. All rights reserved.5–33 Temp Agencies and Alternative Staffing Benefits of TempsBenefits of Temps  Increased productivity—paid only when working  Allows “trial run” for prospective employees  No recruitment, screening, and payroll administration costs Costs of TempsCosts of Temps  Increased labor costs due to fees paid to temp agencies  Temp employees’ lack of commitment to the firm

34. © 2008 Prentice Hall, Inc. All rights reserved.5–34 Concerns of Temp Employees Dehumanizing, impersonal, and discouraging treatment by employers.Dehumanizing, impersonal, and discouraging treatment by employers. Insecurity about employment and pessimism about the future.Insecurity about employment and pessimism about the future. Worry about the lack of insurance and pension benefits.Worry about the lack of insurance and pension benefits. Being misled about job assignments and whether temporary assignments are likely to become full-time positions.Being misled about job assignments and whether temporary assignments are likely to become full-time positions. Being “underemployed” while trying return to the full- time labor market.Being “underemployed” while trying return to the full- time labor market. Anger toward the corporate world and its values; expressed as alienation and disenchantment.Anger toward the corporate world and its values; expressed as alienation and disenchantment.

35. © 2008 Prentice Hall, Inc. All rights reserved.5–35 FIGURE 5–11Guidelines for Using Temporary Employees Source: Adapted from Bohner and Selasco, “Beware the Legal Risks of Hiring Temps,” Workforce, October 2000, p. 53. 1.Do not train your contingent workers. Ask their staffing agency to handle training. 2.Do not negotiate the pay rate of your contingent workers. The agency should set pay. 3.Do not coach or counsel a contingent worker on his/her job performance. Instead, call the person’s agency and request that it do so. 4.Do not negotiate a contingent worker’s vacations or personal time off. Direct the worker to his or her agency. 5.Do not routinely include contingent workers in your company’s employee functions. 6.Do not allow contingent workers to utilize facilities intended for employees. 7.Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval. 8.Do not let managers discuss harassment or discrimination issues with contingent workers. 9.Do not discuss job opportunities and the contingent worker’s suitability for them directly. Instead, refer the worker to publicly available job postings. 10.Do not terminate a contingent worker directly. Contact the agency to do so.

36. © 2008 Prentice Hall, Inc. All rights reserved.5–36 Working with a Temp Agency Invoicing. Make sure the agency’s invoice fits your company’s needs.Invoicing. Make sure the agency’s invoice fits your company’s needs. Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agency’s fees.Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agency’s fees. Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee?Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee? Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay?Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay? Dress code. Specify the attire at each of your offices or plants.Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders.Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders. Job description information. Ensure that the agency understands the job to be filled and the sort of person you want to fill it.Job description information. Ensure that the agency understands the job to be filled and the sort of person you want to fill it.

37. © 2008 Prentice Hall, Inc. All rights reserved.5–37 Offshoring/Outsourcing White-Collar and Other Jobs Political and Military Instability Cultural Misunderstandings Customers’ security and privacy concerns Foreign contracts, liability, and legal concerns Special training of foreign employees Costs of foreign workers Resentment and anxiety of U.S. employees/unions Main Issues

38. © 2008 Prentice Hall, Inc. All rights reserved.5–38 Outside Sources of Candidates (cont’d) Executive Recruiters (Headhunters)Executive Recruiters (Headhunters)  Contingent-based recruiters  Retained executive searchers  Internet technology and specialization trends Guidelines for Choosing a RecruiterGuidelines for Choosing a Recruiter 1. Make sure the firm is capable of conducting a thorough search. 2. Meet individual who will handle your assignment. 3. Ask how much the search firm charges. 4. Never rely solely on the recruiter to do reference checking.

39. © 2008 Prentice Hall, Inc. All rights reserved.5–39 Outside Sources of Candidates (cont’d) College RecruitingCollege Recruiting  On-campus recruiting goals  To determine if the candidate is worthy of further consideration  To attract good candidates  On-site visits  Invitation letters  Assigned hosts  Information packages  Planned interviews  Timely employment offer  Follow-up  Internships

40. © 2008 Prentice Hall, Inc. All rights reserved.5–40 Outside Sources of Candidates (cont’d) Employee ReferralsEmployee Referrals  Referring employees become stakeholders.  Referral is a cost-effective recruitment program.  Referral can speed up diversifying the workforce.  Relying on referrals may be discriminatory. Walk-insWalk-ins  Seek employment through a personal direct approach to the employer.  Courteous treatment of any applicant is a good business practice.

41. © 2008 Prentice Hall, Inc. All rights reserved.5–41 FIGURE 5–12Best Recruiting Sources Percentage of employers reporting best-performing sources for hiring without regard to cost, 2004. Source: Workforce Management, December 2004, p. 98. Note: Survey of 2,294 organizations.

42. © 2008 Prentice Hall, Inc. All rights reserved.5–42 Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting Requisition Management System Integrated Recruiting Solution Screening Services Hiring Management Integrated Employee Recruitment System

43. © 2008 Prentice Hall, Inc. All rights reserved.5–43 Recruiting A More Diverse Workforce Single Parents Older Workers Welfare-to-Work Minorities and Women The Disabled

44. © 2008 Prentice Hall, Inc. All rights reserved.5–44 Developing and Using Application Forms Applicant’s education and experience Applicant’s likelihood of success Applicant’s progress and growth Uses of Application Information Applicant’s employment stability

45. © 2008 Prentice Hall, Inc. All rights reserved.5–45 FIGURE 5–13 Employment Application

46. © 2008 Prentice Hall, Inc. All rights reserved.5–46 Application Forms and the Law Education Achievements Arrest Record Notification in Case of Emergency Memberships in Organizations Physical Handicaps Marital Status Housing Arrangements Areas of Personal Information

47. © 2008 Prentice Hall, Inc. All rights reserved.5–47 K E Y T E R M S employment or personnel planning trend analysis ratio analysis scatter plot computerized forecast qualifications inventories personnel replacement charts position replacement card recruiting yield pyramid job posting succession planning alternative staffing on demand recruiting services (ODRS) application form