MGT-351
Human Resource Management
Chapter-5
Personnel Planning and Recruiting
1–
1
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.
5–2
FIGURE 5–1
Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.
5–3
FIGURE 5–2
Linking Employer’s Strategy to Plans
5–4
Planning and Forecasting
• Employment or Personnel Planning
 The process of deciding what positions the firm
will have to fill, and how to fill them.
• Succession Planning
 The process of deciding how to fill the company’s
most important executive jobs.
• What to Forecast?
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates
5–5
Forecasting Personnel Needs
Forecasting
Tools
Trend Analysis
Ratio Analysis
Scatter Plotting
5–6
Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• 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 “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.
5–7
Using Computers to Forecast Personnel
Requirements
• Computerized 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.
5–8
Forecasting the Supply of
Inside Candidates
Qualification
Inventories
Manual
Systems and
Replacement
Charts
Computerized
Information
Systems
5–9
Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate
• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
5–10
Internal Candidates: Hiring from Within
Advantages
• 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
Disadvantages
• Failed applicants become
discontented
• Time wasted interviewing
inside candidates who will
not be considered
• Inbreeding strengthens
tendency to maintain the
status quo
5–11
Finding Internal Candidates
Rehiring Former
Employees
Job Posting
Hiring from
Within
Succession
Planning (HRIS)
5–12
Outside Sources of Candidates
Locating Outside Candidates
1
Recruiting via the Internet
6
Executive Recruiters
2
Advertising
7
On Demand Recruiting
Services (ODRS)
3
Employment Agencies
8
College Recruiting
4
Temp Agencies and Alternative
Staffing
9
Referrals and Walk-ins
5
Offshoring/Outsourcing
5–13
Outside Sources of Candidates (cont’d)
• Recruiting 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
5–14
FIGURE 5–8
Top Job
Boards
Ranked
According
to Average
Number of
Job
Listings
Source: Workforce
Management, May 22,
2006, p. 12.
5–15
Advertising for Outside Candidates
• The 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 Ads
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression of the firm.
5–16
Employment Agencies
Types of Employment
Agencies
Public
Agencies
Nonprofit
Agencies
Private
Agencies
5–17
Outside Sources of Candidates (cont’d)
• Why 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.
5–18
Outside Sources of Candidates (cont’d)
• Avoiding 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.
5–19
Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows “trial run” for prospective employees
 No recruitment, screening, and payroll
administration costs
• Costs of Temps
 Increased labor costs due to fees paid to temp
agencies
 Temp employees’ lack of commitment to the firm
5–20
Working with a Temp Agency
•
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.
•
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?
•
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.
•
Job description information. Ensure that the agency understands
the job to be filled and the sort of person you want to fill it.
5–21
Offshoring/Outsourcing White-Collar
and Other Jobs
Political and
Military Instability
Resentment and
anxiety of U.S.
employees/unions
Costs of foreign
workers
Special training of
foreign employees
Cultural
Misunderstandings
Main
Issues
Customers’
security and
privacy concerns
Foreign contracts,
liability, and legal
concerns
5–22
Outside Sources of Candidates (cont’d)
• Executive Recruiters (Headhunters)
 Contingent-based recruiters
 Retained executive searchers
 Internet technology and specialization trends
• Guidelines 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.
5–23
Outside Sources of Candidates (cont’d)
• College 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
5–24
Outside Sources of Candidates (cont’d)
• Employee 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-ins
 Seek employment through a personal direct
approach to the employer.
 Courteous treatment of any applicant is a good
business practice.
5–25
FIGURE 5–12
Best Recruiting Sources
Note: Survey of 2,294 organizations.
Percentage of employers reporting best-performing
sources for hiring without regard to cost, 2004.
Source: Workforce Management, December 2004, p. 98.
5–26
Developing and Using Application Forms
Uses of Application
Information
Applicant’s
education and
experience
Applicant’s
progress and
growth
Applicant’s
employment
stability
Applicant’s
likelihood of
success
5–27
FIGURE 5–13
Employment
Application
5–28