4
q
q
q
q
q
Personnel Planning and Recruitment
Introduction
Planning and Forecasting
q Forecasting Personnel Needs
q Forecasting Supply of Inside Candidates
q Forecasting Supply of Outside Candidates
Effective Recruitment
q Organizing the Recruitment Function
q Measuring
the
Effectiveness
of
Recruitment
q The Recruitment Yield Pyramid
Internal Sources of Candidates
q Finding Internal Candidates
q Internal Recruitment Methods
q
Job Posting and Job Bidding
q
Personnel Records and Skills
Banks
q
Rehiring
q
Succession Planning
q External Sources of Candidates
q
Advertising
q
Advertising Media
q
Constructing the
Advertisement
q
Employment Agencies
q
Government and NonProfit Agencies
q
Commercial Agencies
q
Recruitment Alternatives
q
Temporary Agencies
q
Employee Leasing
q
Independent Contractors
q
Outsourcing
q
Executive Recruiters
q
College Recruiting
q
On-site Visit
q
Internships
q
Referrals
q
Walk-ins
q
Special Events
q
Sign-on Bonuses
q
Recruiting Via the Internet
Developing and Using Application Forms
Objectives
At the end of this chapter, students should be able to:
·
Understand the importance of employment
planning
·
Explain the sources of internal and external
candidates
·
Evaluate, compare and contrast the internal and
external recruitment methods
·
Construct a advertisement for recruitment
·
Draw conclusions from an application form
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4.1
INTRODUCTION
Bob, the HR Manager has just received a resignation letter from Jon Tzen, the Finance
Manager. This came as a shock as there was never any indication of Jon Tzen’s
dissatisfaction with the organization. As Jon Tzen was giving one month’s notice to the
organization, Bob has some time to look for a replacement. He quickly looked at the position
replacement card for Jon Tzen’s position and was disappointed to discover that his successor,
Novianta is not ready to take up that position as he requires more training. As there was only
one month to find a replacement, Bob decided to engage an executive recruiter to assist him.
As the search firm has many contacts, Bob was able to replace Jon Tzen within 3 weeks.
4
Oh dear! Novianta is still not ready
to fill Jon Tzen’s position and I
only have a month to fill the
position. I will call Alice from
Jobstreet tomorrow to assist me
Figure 4.1 Bob is thinking about how he should fill Jon Tzen’s position
The example above illustrates the recruitment process. In this chapter, we will look at the first
three steps in the process. This process is shown in the diagram below.
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Personnel Planning And Recruitment
Employment
forecasting
planning
and
Recruitment: Building a pool of
candidates
Applicants
forms
complete
application
4
Use selection tools like tests to
screen out most applicants
Supervisors and other interviews
final candidates to make final choice
Candidates become employees
Figure 4.2 The Recruitment and Selection Process
Source: Adapted from Dessler, 2005
4.2
PLANNING AND FORECASTING
Employment planning is the first step in the recruitment and planning process. It is a process
where the organization makes a forecast on the number and kinds of employees it needs in
the future in order to achieve its strategic objectives and goals. In other words, the
organization’s plans and objectives is translated into the number and types of workers
needed. The organization needs to forecast: personnel needs, supply of internal candidates
and also supply of external candidates.
We are going to build a factory in China next
year. I want you to work with the team to
forecast the number and type of employees
required.
Figure 4.3 A CEO requesting her HR manager to conduct employment planning
When planning for employment requirements, the following questions are asked:
· Are the projected openings filled by internal or external candidates?
· Do the internal candidates require extra training?
· What are the ways to recruit external candidates?
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For example, an advertising agency has just won a pitch for the Hotlink account and expects
to handle the account in six months’ time. The manager in charge of this account must
discuss with the HR Department on the number and qualifications of people they need to hire
and HR will need to determine the recruitment methods.
4.2.1
Forecasting Personnel Needs
Before an organization is able to forecast personnel needs, it must forecast its revenues and
then make an estimation of the number of staff required to achieve the sales volume. The
table below shows the various techniques that can be used to forecast personnel needs:
4
Techniques
Description
Example
Trend Analysis
Studying an organization’s employment
levels over a period of years to predict
future needs
It should be noted that time is not the
only factor that affects employment
levels
Making forecasts based on the ratio
between some causal factor (number of
projects) and number of employees
required
Computing the number of
employees at the end of
each of the last 5 years
Ratio Analysis
Using
Computers
Computer software is used to forecast
HR requirements.
Managerial
Judgment
Managerial judgment is important
regardless of the forecasting techniques
used. As the business environment
changes rapidly, managers may need to
modify their forecast based on the
environment.
A software provider may
forecasts the number of
employees required based
on the number of projects in
hand as well as future ones
Data needed could be direct
labour hours required to
produce one unit of product
and 3 sales projections. The
system will then generate
figures on the average
number of staff required to
meet product demands for
the 3 sales projection and
also
a
computerized
forecast for direct labour,
indirect staff (secretaries)
and
exempt
staff
(executives)
Example: Top management
suddenly decides to expand
into international markets
due to fierce domestic
competition.
Table 4.1 Techniques used in forecasting personnel needs
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Personnel Planning And Recruitment
4.2.2
Forecasting the Supply of Inside Candidates
Most of the employees required by the organization for future positions may already work for
the organization. Therefore, organizations need to identify the existing employees that may
be qualified for the future positions. Managers may obtain this information from the
organizations’ qualification inventories i.e. manual or computerized records listing
employees’ education, career and development interests, skills, desired assignments,
performance records, promotability and languages.
Manual records refer to manual systems and replacement charts that compile all employees’
qualifications. Personnel replacement charts show the current performance and promotability
for each position’s potential replacement, particularly for top positions. Position replacement
cards are cards created for each position, showing possible replacements for each position. It
also records the replacement’s present performance, promotion potential and training
required.
Figure 4.4. Management Replacement Chart Showing Development Needs of Future Divisional Vice
President
In Citicorp Trade Services (M) Sdn Bhd, each employee has a progression chart where
supervisors will discuss with each employee about his/her career advancement in the next
three years and identify training programs that will assist him/her to achieve a higher
position.
Computerised Information Systems are used to track the qualification and skills of all
employees in a large organization. This assists HR managers in identifying and screening
internal candidates suitable for any vacant positions.
Organizations need to be aware about protecting an individual’s right to privacy and ensuring
that the information is only available to the people who need them.
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4.2.3
Forecasting the Supply of Outside Candidates
When an organization forecasts the supply of outside candidates, it needs to consider the
economy of the country and the expected rate of unemployment. For example, if the expected
rate of unemployment is high, this means that there will be an oversupply of outside
candidates and vice-versa.
4
An organization may obtain these data from Bank Negara Malaysia’s Annual Report,
magazines such Malaysian Business Week and The Edge, the economic and business sections
in the daily newspapers and the websites of the ministries such as the Economic Planning
Unit, Prime Minister’s Department, statistics from the Ministry of Human Resources,
Ministry of Finance, Ministry of Internal Trade and Industry and other government agencies.
Figure 4.5 Sources of Information
4.3
EFFECTIVE RECRUITMENT
Recruitment is the process of attracting and encouraging a sufficient number of qualified
individuals to apply for jobs with an organization. Developing an applicant pool is important
at this stage as it gives the organization more choices when selecting candidates.
The recruiting process must be in line with the overall strategic plan of the organization.
There are many recruitment techniques and some of them are more effective than others
depending on the type of job that an organization is recruiting for and also the resources
available. The success of the recruitment drive is also dependent on non recruitment HR
issues and policies such as the organization’s benefits and salary package.
For instance, Citibank will receive more applicants compared to other domestic banks due to
its non recruitment HR policies such as staff housing and car loans (2%), contractual bonus,
comprehensive training program and an opportunity for career advancement overseas.
Figure 4.6 Good HR policies mean receiving a lot of application letters
It is important to know the employment law in a country before recruiting employees.
Employers recruiting staff in Malaysia have to comply with the government’s Bumiputera
policy of proportionate racial mix and also the guidelines for employing expatriate personnel
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Personnel Planning And Recruitment
and unskilled foreign workers. For example, organizations with more than USD2 million
foreign capital will automatically be given resident status to five foreign workers on a
permanent basis.
4.3.1
Organizing the Recruitment Function
Organizations have the option either to centralize or decentralize its recruitment efforts,
especially, if they have offices in various locations.
The advantages of centralizing recruitment are as follows:
a. Ensure that the organization culture in branches do not violate the organization’s
strategic plans
b. Reduces duplication and operating costs
c. Easier to spread the cost of new technologies over more departments
d. Build a team of recruitment experts
e. Easier to identify the reasons for successful or unsuccessful recruitment efforts
However, decentralization would be effective in cases such as autonomous divisions or
varied recruitment needs.
During the recruitment process, the HR Manager must work closely with the Line Manager to
understand the job specification of the position, type of personality suitable for the position
and the working environment.
Yes, there are vacancies
in my branch. However,
you need to send your
application to my Head
Office in Kuala Lumpur
Just send your application
to the branch and we will
make arrangements to call
you for an interview
Centralized Recruitment
Decentralized Recruitment
Figure 4.7 Distinguishes between centralized and decentralized recruitment efforts
4.3.2
Measuring the Effectiveness of Recruitment
HR managers must assess the quality of each recruitment source to find the most cost
effective recruitment source. This will assist them in planning and directing their recruitment
budget.
4.3.3
The Recruiting Yield Pyramid
The recruiting yield pyramid is used to calculate the number of applicants an organization
must generate to employ the required number of employees.
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For example, Syarikat ABC knows that it needs to employ 30 new business executives next
year. It knows that the ratio of offers made to actual new hires is 3 to 1 based on past
experiences. This means that 1/3 of the people to whom it makes offers accept them. It also
knows that the ratio of candidates interviewed to offer is 3 to 2 and the ratio of candidates
invited to for interviews to candidates actually interviewed is about 4 to 3. Finally, the
organizations know that one out of 5 applications will be called for interview. Given these
ratios, how big is the applicant pool?
30
4
90
135
180
New Hires
Offers made (3:1)
Candidates interviewed (3:2)
Candidates invited (4:3)
900
Leads generated (6:1)
Figure 4.8 The Recruiting Yield Pyramid
Syarikat ABC needs to generate 900 leads to hire 30 new business executives given the ratios
as per above.
4.4
INTERNAL SOURCES OF CANDIDATES
Internal recruiting refers to seeking applicants for positions from among those currently
employed by the organization with the exception of entry-level positions. The advantages and
disadvantages of recruiting internally are shown in the table below:
Advantages
1. Builds good morale among workers as
they see promotions as reward for loyalty
and competence
2. Encourage efficient people who have
ambition to climb the corporate ladder
Disadvantages
1. It stifles creativity, innovative thinking
and diversity. This could be due to a lack
of new blood in the organization.
2. If promotion is based on seniority rather
than merit, we may miss out on capable
employees
3. It costs less than external recruitment 3. Internal recruitment may lead to
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Personnel Planning And Recruitment
Advantages
Disadvantages
costs as employees need less orientation disagreements, fighting and a tense
and training
working
environment
among
rival
candidates
4. It improves the probability of a good 4. It may also lead to a low morale for
selection since employer already knows the unselected candidates. Therefore, it is
important
to
inform
unsuccessful
skills and abilities of the applicants
applicants why they were rejected and how
to improve themselves
5. Fosters stability and continuity, 5. Internal recruiting can be a waste of time
especially, in the managerial ranks of an in terms of interviewing candidates when
the manager already knows whom he wants
organization
to hire before the interview
6. Those chosen internally already know 6. Unit raiding could occur where divisions
the organization culture, policies and compete for the same employees.
procedures of the organization
7. When planned properly, it could act as a 7. Politics may have a greater impact on
training ground to develop middle and top internal recruiting and selection than
level managers
external recruiting
4
Table 4.2 Advantages and Disadvantages of Recruiting Internally
Despite the disadvantages of internal recruiting, a promotion policy that first considers
insiders is good for employee morale and motivation and is often beneficial to the
organization.
4.4.1
Finding Internal Candidates
Promotion from within is the policy of filling vacancies above entry-level positions with
current employers. The tools that could be used for this exercise is job posting, job bidding,
personnel records and skills banks.
4.4.2
Internal Recruitment Methods
The internal recruitment methods are as follows:
4.4.2.1 Job Posting and Job Bidding
Job posting is a procedure used to inform employees of the existence of job openings. Job
bidding is a technique that permits employees who believe that they possess the required
qualifications to apply for the posted job. Job openings are either posted on the organization’s
intranet, Internet or bulletin boards. This method helps to eliminate complaints from
employees on not hearing of a job vacancy until it is filled. It also shows that the organization
values its employees highly. On the other hand, management needs to select the most
qualified applicant and also explain why the rest were rejected.
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4.5
INTERNAL VACANCIES
The following vacancies are only available to staff currently employed by the University of
South Australia who meet the internal applicant criteria.
4.5.1
Academic
Job Title
Fraction
Lecturer
1.0
Location
Closing date
School of Health Sciences
Division of Health Sciences
Tuesday,
March 2007
6
Academic Level B
4
4.5.2
Professional and General
Job Title
Clerical Officer
HEO3
Fraction
0.7 - 1.0
Location
Closing date
Nutritional Physiology Research Centre
School of Health Sciences
Division of Health Sciences
Monday,
5
March 2007
Figure 4.9 Example of job postings in the Internet
4.5.2.1 Personnel Records and Skills Banks
HR records are an important source of recruitment because HR managers may discover:
1. employees who are working in jobs below their education or skill levels
2. employees who have potential for further training
3. employees who have the right qualification and skills for the vacant job
Let’s say that a HR Manager is looking for an Assistant International Operations Manager.
While searching for suitable candidates from the organization’s personnel records, he
discovered that Chris, one of the executives in the Operations Department, used to work in
the International Operations Department, specializing in South America for one of its
competitors before joining the organization.
You would not believe this. Chris from the
Operations Department could be the right
person for the Assistant International
Operations Manager position
Figure 4.10 Discovering a suitable employee from
personnel records and skills banks
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Personnel Planning And Recruitment
4.5.2.2
Rehiring
Would you consider working
for the organization again?
4
Figure 4.11 Employer asking a former employee to work for him again
Some organizations also tend to rehire former employees who have either left the
organization for better offers or were laid off due to economic reasons. Is it good to rehire
former employees? The advantages and disadvantages of this method are shown in the table
below.
Advantages
Disadvantages
1. Familiar with the organization’s culture, 1. Employees may return with less than
environment and ways of doing things
positive attitudes, particularly, those who
were laid off
2. We have knowledge of their capabilities 2. Signal to present employees that leaving
and skills
the organization and returning to it at a
higher position are the best way to get
promoted.
Table 4.3 Advantages and Disadvantages of Rehiring
4.5.2.3 Succession Planning
Succession planning is a process of identifying, assessing, retaining and developing star
performers for future leadership roles in an organization. This process involves 3 steps i.e.
a. Identifying and analyzing key positions based on the organization’s strategic goals
b. Identify potential candidates for the key positions either from the organization or
external parties. If there are internal candidates, provide them training in order to
prepare them for the job in future.
c. Select those who will actually fill the key positions.
For example, a foreign bank in Malaysia has a systematic succession plan which includes 3
categories of potential successors. The table below shows the categories of successors and it
is a good way to retain and develop good employees.
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Categories of Potential
Successor
Tactical Successor
Strategic Ready Now
4
Strategic Ready Later
Strategy
Development Plan
Replacement
planningEmployees can fill the
position on a temporary
basis in the event of
emergency
High potential who has
been 1. identified for the
position and 2. received the
necessary training. They are
ready to fill the position
Identifying and preparing
new high potential to fill the
position in the next two
years
Improve their technical
skills or identify people
outside the organization
Continue their training and
development process in
order to retain them
Identify the gaps between
their current and required
skills to fill the position.
Provide on-the-job training
and external courses to
close the gaps
Table 4.4 Succession Planning Program
4.6
EXTERNAL SOURCES OF CANDIDATES
If the current employees are not able to fill the vacant positions, organizations would need to
find outside candidates.
4.6.1
Advertising
Advertising is a common method for recruiting. The two important issues to consider when
placing a recruitment ad are:
1. Advertising Media
2. Constructing the Advertisement
4.6.1.1 Advertising Media
The selection of the best advertising medium depends on the types of jobs an organization is
recruiting for. For instance, an organization would place advertisements in local newspapers
such as The Star, New Straits Times, The Malay Mail, Berita Harian and others ranging from
blue collar jobs to middle management positions. However, senior management positions are
usually advertised in trade and professional journals or weekly business magazines such as
Malaysian Business.
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Personnel Planning And Recruitment
Figure 4.12 Example of a recruitment ad in the newspapers
The media options available to organizations coupled with their advantages and
disadvantages are shown in the table below.
Type of Medium
Advantages
Disadvantages
When to Use
Newspapers
1. Short deadlines
2. Ad size flexibility
3. Circulation
concentrated
in
specific
geographic
areas
4. Classified sections are
well organized for
easy access by active
job seekers
1. Easy for prospects
to ignore
2.Considerable
competitive clutter
3. Circulation not
specialized – you
must pay for great
number of unwanted
readers
4.
Poor
printing
quality
1. When you want to
limit recruiting to a
specific area
2. When sufficient
number of prospects
are clustered in a
specific area
3.
When
enough
prospects are reading
help-wanted ads to fill
hiring needs
Magazines
1. Specialized magazines
reach
pinpointed
occupation
categories
such
as
Accountant
Today
2. Ad size flexibility
3. High quality printing
4. Long life, prospects
keep
and
reread
magazines
1. Difficult to ignore
2. Can reach prospects
who are not actively
looking for a job
3. Can be limited to
specific geographic areas
4. Creatively flexible
5.
Can
dramatize
employment story more
effectively than printed
ads
6. Little competitive
1. Wide geographic
circulation – usually
cannot be used to
limit recruiting to a
specific area. For
instance,
the
Economist
2. Long lead time for
ad placement
1. When job is
specialized
2. When time and
geographic limitations
are not of utmost
importance
3. When involved in
ongoing recruitment
programs
1.
Only
brief,
uncomplicated
messages are possible
2.
Lack
of
performance
–
prospect cannot refer
back to ad
3. Time consuming
and costly
4. Lack of special
interest selectivity –
paying for waste
1. In competitive
situations when not
enough prospects are
reading the printed
ads
2. When there are
multiple job openings
and there are enough
prospects in specific
geographic area
3. Useful to call
attention to printed
Radio
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Type of Medium
Advantages
recruitment clutter
Disadvantages
circulation
When to Use
ads
Table 4.5 Advantages and disadvantages of the various advertising media
Source: Bernadin, HJ 2003
4
4.6.1.2 Constructing the Advertisement
While constructing the advertisements, organizations should ensure that the following
information is not omitted:
a. Primary tasks and responsibilities
b. Realistic description of working conditions
c. Location of the job
d. Qualifications and working experience needed
e. To whom one applies to
Experienced advertisers use the AIDA (attention, interest, desire and action) model when
constructing an advertisement. One can develop interest in the job by using lines like “a
promising and challenging career”, its location and the job itself. An advertisement should
also allow the reader to respond via statements like “call today” or “please forward your
resume.”
4.6.2
Employment Agencies
An employment agency is an organization that helps individuals to get jobs and at the same
time assist organizations in recruiting employees. These agencies perform many recruitment
and selection functions for the organizations. There are basically 2 forms of employment
agencies depending on the type of clientele served i.e.:
4.6.2.1 Government and Non-Profit Agencies
The government employment agency in Malaysia is related to government departments in
charge of manpower or employment such as the Department of Labour. This department will
match job seekers with respective employers or jobs advertised by private employment
agencies. It has a website where registration is mandatory for job seekers, employers and
private employment agencies. The job seeker also includes people who have disabilities.
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Personnel Planning And Recruitment
4
http://jcs.mohr.gov.my/jcs/index.faces
Figure 4.14 The Electronic Labour Exchange developed by the Ministry of Human Resources, Malaysia
to match job seekers with respective employers
Non-profit employment agencies are professional associations that have units to assist
members find jobs. For instance, The Malaysian Institute of Certified Public Accountants
advertises jobs from other organizations in its website.
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4
- http://www.micpa.com.my/v3/public/job.asp
Figure 4.15 Vacant positions on The Malaysian Institute of Certified Public Accountant’s website
4.6.2.2 Commercial Agencies
Commercial agencies are important sources of clerical, white-collar and managerial
personnel. These companies usually charge a fee for each applicant placed which would
either be paid by the candidate or employee. For example, some commercial agencies charge
employees a fee amounting to 0.5 months salary. There are also cases where the agencies can
only collect a fee from the employers if the employees worked for the employers for a period
of not less than 6 months. Examples of commercial agencies are Temp Girl Malaysia, Jobs
DB Sdn Bhd, Adecco Malaysia and Manpower Malaysia.
The reasons for using an agency are as follows:
a. An organization does not have its own HR department
b. An organization faces difficulty in the past to generate a pool of qualified applicants
c. An organization wants to fill the position quickly
d. An organization wants to save time spent on interviewing applicants
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Figure 4.16 Examples of Commercial Agencies in Malaysia
4.6.3
Recruitment Alternatives
Apart from recruiting, the following shows other recruitment alternatives:
4.6.3.1
Temporary Agencies
4
Figure 4.17 Kelly Associates is a temporary agency in Malaysia
Contingent or temporary workers work as part-timers, just-in-time workers, contract workers,
temporaries or independent contractors. Employers source these workers through temporary
help employment agencies such Kelly Associates. The advantages and disadvantages of
contingent staffing are shown in the table below
Advantages
Disadvantages
Higher productivity as temps are paid only Need to pay agency fee which leads to a
when they are working
20% to 50% increase in cost as compared
to permanent workers
Avoid paying recruitment, absenteeism,
turnover expenses and employee benefits
Maximum flexibility for employers as they
are able to meet any short-term labour
fluctuations
Table 4.6 Advantages and disadvantages of temporary agencies
4.6.3.2 Employee Leasing
Leased employees are individuals recruited by the leasing firm and sent to work in another
for a specific time. When an organization needs specific employee skills, it signs a contract
with the leasing firm to provide trained employees for a flat fee. Employees returned to the
leasing firm upon completion of the project. The advantages and disadvantages of employee
leasing to the organization, employees and leasing firms are shown in the table below
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Advantages
4
Disadvantages
1. Reduces cost as the organization does 1. Erosion of employee loyalty because
not need to pay employee benefits such as workers receive pay and benefits from the
leasing company
EPF and SOCSO
2. Leased employees are well trained and
often go to organizations with an
unconditional guarantee
3. Employees have more flexibility in their
lives and also job mobility
4. Leasing firms enjoy economies of scales
which allows them to enjoy lower cost due
to the large numbers of employees in their
pools
5. Leasing firms offer job security
Table 4.7 Advantages and disadvantages of employee leasing
4.6.3.3 Independent Contractors
Independent contractors do a specific work for an organization either on or off the
organization’s premises. As they are not the organization’s employees, organizations save
costs associated with full or part-time personnel.
4.6.3.4 Outsourcing
Outsourcing is becoming an important global trend in the business environment. A study
done by Deloitte revealed that more than 75% of the world’s major financial institutions are
expected to outsource their banking operations within the next 24 months (Rosenthal, 2003).
This is due to intense global competition and the desire to cut operating costs.
4.6.4
Executive Recruiters
Executive recruiters are also known as headhunters and their main task is to find top
management clients for their clients. Executive recruiters specialize in middle and top level
placements including hard-to-fill positions such as actuaries and IT specialists.
The employers usually pay their fees ranging from 25% to 35% of the annual income of the
position. Examples of executive recruiters in Malaysia are Adecco Personnel Sdn Bhd,
Manpower Staffing Services (M) Sdn Bhd, Boyden International Sdn Bhd and Futurestep
Worldwide (M) Sdn Bhd.
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Thanks for selecting my company. We
have a wide database of potential
people for the Finance Director
position. I will send you the short-listed
candidates tomorrow
4
Figure 4.18 An executive recruiter speaking to his client
The advantages and disadvantages of executive recruiters are shown in the table below.
Advantages
Disadvantages
Has huge database and contacts and able to
do preliminary screening
Keep the organization’s name confidential
until late in the search process
Some recruiters are more salesperson than
professionals
Recruiters’ claims may not be accurate due
to lack of understanding about the
requirements needed for the position
Time and cost savings for employers in
terms of placing advertisements and
screening applicants
Table 4.8 Advantages and disadvantages of executive recruiters
Employers need to adhere to the following guidelines when selecting a recruiter:
a. Determine the capability of the search firm in conducting a good search
b. Meet the individual handling your assignment to assess his capabilities
c. Enquire the charges of the search firm
4.6.5
College Recruiting
Some organizations send their representatives to college campus, vocational and technical
schools and universities to pre-screen and create an applicant pool for entry-level jobs. This is
done with the assistance from the Student Placement Director of the respective education
institutions. The recruiter has two goals i.e.
·
·
To identify suitable candidates that can meet the organization’s specific needs.
Candidates are analyzed based on their intelligence and aptitude, motivation,
judgment and maturity, analytical power, leadership and ability to get along with
people.
Attract good candidates. The recruiter can attract good candidates by showing respect
and sending prompt follow-up letters to the candidates.
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This method is expensive and time consuming as a lot of preparation need to be done such as
scheduling and printing company brochures. The recruiter is also required to keep the records
of the interviews. Some of the recruiters could be ineffective due to their lack of interest in
candidates and preparation.
The organization also implements the following strategies as part of their college recruiting
program:
4
4.6.5.1 On-Site Visits
Good candidates are generally invited to the employer’s office or plant on an on-site visit. In
order to make the candidates interested in the organization, the organization could do the
following:
a. Ensure that the invitation letter is warm and friendly
b. Provide the candidate a choice of dates to select
c. Assign someone to be a good host to the candidates
d. Provide a package containing the candidate’s schedule and company information
e. Plan the interview and adhere to the schedule
f. Give each candidate undivided attention
g. Make an offer, preferably at the time of visit
h. Follow-up with selected candidates on their decisions
Figure 4.19 Candidates visiting the organization
4.6.5.2 Internships
Internships or practicum involves placing a student in a temporary job without any
obligations on the part of the organization to provide a full time job to the student upon
graduation. It is compulsory for all students to undergo internship for a period of six months
in Malaysia.
During the internship, students get to apply their business knowledge theories in the real
working environment, learn more about the organization as well as decide their career
choices.
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Personnel Planning And Recruitment
Figure 4.20 Teaching Internship
Internships enable employers to make a wise judgment in assessing the student’s job
performance, behaviour and qualifications as the interns perform tasks that are meaningful to
the organizations.
4.6.5.3 Referrals
The organization announces vacant positions in its notice board, bulletin or intranet and at the
same time, offers cash rewards for successful referrals. It is suitable especially, in recruiting
high-tech employees. The advantages and disadvantages of this method are shown in the
table below:
Advantages
Disadvantages
1. Employees can provide accurate
information about the applicants they are
referring
2. Most of the applicants are good as the
employees’ reputation is at stake
3. Applicants receive more realistic
information about the job
1. Could lead to employee dissatisfaction if
their referrals are rejected
2. Could lead to nepotism. Nepotism refers
to hiring relatives or close friends.
Table 4.9 Advantages and disadvantages of referrals
Did you read in the bulletin that the company
will pay us RM200 if we recommend a
successful candidate for a job here?
Figure 4.21 An employee telling her colleague about the referral notice in the organization
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4.6.6
Walk-ins
Employers may put up signs outside the office or factory. Therefore, someone can walk-in at
anytime for an interview. This method is used for hourly paid workers or entry-level workers.
Unsolicited walk-ins refer to qualified prospects applying for jobs in reputable organizations
despite no recruitment activities implemented by these organizations. These applicants
usually prove to be valuable employees. Examples of these reputable organizations are
Petronas, Shell and Johnson & Johnson.
One of the advantages of walk-ins is the ability to develop a pool of potential employees for
the future.
4
Figure 4.22 Walk-in advertisement in front of the restaurant
4.6.7
Special Events
Holding special events such as job fairs can either be an individual or joint effort of a group
of employers. Employers are given the opportunity to meet a large number of candidates in a
short-time at a lower cost as compared to traditional approaches. For example, Job Street Sdn
Bhd holds the Malaysian Career and Training Fair regularly through-out the year. Applicants
also have easy access to a number of employers.
Figure 4.23 Career Fair
4.6.8
Sign-On Bonuses
Some organizations in the west are offering sign-on bonuses to high demand prospects in
order to attract them to their organizations. These sign-on bonuses can either be in the form
of cash or loans.
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Personnel Planning And Recruitment
4.6.9
Recruiting Via the Internet
It is a common practice to go online and apply for jobs. Therefore, employers use the Internet
to recruit new employees by adding a recruitment section to their web site. These recruitment
sections provide information on qualifications sought, experience required, benefits provided
and on-line response form. On the other hand, some employers are also using the Internet to
search for applicants by doing keyword searches on sites such as HotJob’s resume database
or even websumes (job candidate’s personal websites).
4
Jobseekers
Search Jobs
MyJobStreet
Career Services
Campus
Training
Employers
~ Forgot ID/Password?
Browse
Jobs
All
Jobs
Jobs
by
Specialization
Jobs
by
Location
Jobs with Low Applications
Search Jobs (Over 10000+ jobs)
Job Title, Company, Skills, Industry,
etc.
All Specializations
Pahang
Missed MCTF
Applications!
Walk-In
Interviews: Missed MCTF
Applications!
2007?
Companies
still
accepting
Job
2007?
Companies
still
accepting
Job
Top Employers
107
I NTRO DUCTI O N TO HUM AN RESO URCE M ANAG EM ENT
More ways to find jobs
Management Jobs (1601)
Entry Level Jobs (1409)
Other Position Levels
Classifieds (1193)
Overseas Jobs (2637)
Browse jobs by specialization
Accounting
Finance
4
/
General/Cost
Acct
(1257)
Audit & Taxation (388)
Banking/Financial (299)
Finance/Investment
(146)
Admin / HR
Clerical/Admin
(831)
Human Resources (395)
Secretarial (258)
Sales / Marketing
Marketing
(926)
Wholesale/Trading (558)
Sales-Eng/Tech/IT (381)
Retail
Sales
(372)
Sales-Insurance (40)
Arts /
Comm
Media
/
Arts/Creative
Design
(297)
Public Relations (97)
Advertising
(59)
Entertainment (18)
Services
Hotel / Restaurant
F
&
B
(65)
Hotel/Tourism (56)
Education
Training
/
Education
(141)
Training & Dev. (90)
Computer / IT
Software
(1021)
Network/Sys/DB (975)
Hardware (147)
Engineering
Mechanical
(522)
Electronics
(381)
Electrical
(350)
Other
Eng
(180)
Oil/Gas
(58)
Chemical
Eng
(54)
Environmental (48)
Manufacturing
Manufacturing
(515)
Purchasing
(408)
Quality Control (303)
Maintenance
(112)
Process Control (46)
Building
Construction
Civil/Construction (328)
Architect/Interior (164)
Quantity Survey (128)
Sciences
Science & Tech (43)
Chemistry
(41)
Food
Tech/Nutritionist
(39)
Biotechnology
(23)
Actuarial/Statistics (17)
Agriculture
(12)
Geology
(7)
Aviation (4)
Healthcare
Pharmacy
(24)
Practitioner/Asst
(23)
Diagnosis/Others (19)
Others
Others
(252)
Journalist/Editors (66)
General
Work
(47)
Publishing (35)
Customer Service (451)
Freight/Shipping (218)
Lawyer/Legal Asst (77)
Armed
Forces
(23)
Personal
Care
(18)
Social Services (3)
Figure 4.24 Example of Recruiting via the Internet
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Personnel Planning And Recruitment
The advantages and disadvantages of Internet recruiting are as follows:
Advantages
Disadvantages
Cost-effective
when
compared
newspaper advertisements
to It is not a selection tool and cannot conduct
background checks or face to face
interviews
newspaper Lack of personal touch
Longer life span than
advertisements
Faster response from potential candidates Volume of resumes are usually too large
compared to printed advertisements
Increases diversity and enables one to look Increased competition for qualified
for people with unique talents
employees
Confidentiality of applicants’ information
could be a problem when the website is
violated by hackers
4
Table 4.10 Advantages and disadvantages of recruiting via the Internet
An effective Web advertisement must have the following components:
a. An attention-grabbing opening line such as ‘Work for the World’s Best Boss”.
b. Provide reasons for working in the organization
c. Use compelling keywords such as “success driven professionals”.
d. Comprehensive information about the job
e. Make it easy for interested applicants to format resumes and post them in the form required
for the employers’ recruitment sites
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Opening line
WORK FOR THE WORLD’S BEST BOSS
ABC Corporation is a member of Australia’s premier Real Estate groups. A fantastic
opportunity
has become
Reasons
for joining
&
available to join our progressive team in a full time Receptionist role.
compelling words
Working to support both Sales & Property Management, you will have a keen eye for detail, a positive attitude
and a strong work ethic. You will be well groomed, have impeccable written and verbal communication, a
commitment to customer service and be a team worker. This is a front line position and requires a high level of
customer service.
4
Some of your duties will include:
Answering incoming calls
Taking detailed messages
Data Entry
Mail management
Faxing and Photocopying
Assisting with any required administrative work
Maintaining filing and general office duties
Information on the job
To be considered for the role, you must have:
Action to be taken by
Exceptional organizational skills
interested applicants
The ability to multi-task and communicate at all levels
A sense of urgency
The ability to work autonomously
Self motivation
An ‘all round’ knowledge of Microsoft Office, the Internet and database experience is essential
Previous Reception and administration experience is preferred, however not necessary. In return, you will work
in a dynamic and exciting industry and develop your skills along the way.
Samantha Hladio Raine & Horne Maida Vale and Hills shladiomv@rhwa.com.au
Email: Please click the 'Apply Now' button below.
Figure 4.25 Example of an Interesting Recruitment Advertisement
4.7
DEVELOPING AND USING APPLICATION FORMS
After obtaining a pool of applicants, the pre-screening process begins with the application
form. Managerial and technical employees usually have different forms as they are evaluated
based on different criteria.
The applicant form provides four types of information for the employers:
a. Make judgment on substantive matters such as the qualification and experience to
perform the job
b. Draw conclusions on the applicant’s previous progress and growth
c. Draw tentative conclusions regarding the applicant’s stability based on previous work
record
d. Predict the applicants’ job performance
Source : Dessler, 2005
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Personnel Planning And Recruitment
Some practical guidelines for employers to follow when developing the forms are as follows:
a. Detailed information on each previous employer including the name of the supervisor
and telephone number is required in the “Employment History” section
b. When signing the application form, the applicant should: 1. certify that untrue
statements may be cause for dismissal, 2. give authority to the organization to perform
a credit and employment check on the applicant and 3. medical examination and drug
screen maybe required for employment.
JOB APPLICATION COVER SHEET
POSITION APPLIED FOR
Position Number
Title
How did you find out about this vacancy? (eg: University website, newspaper, word of
mouth, other; please specify)
PERSONAL PARTICULARS
Surname
Other Names
1.
Gender Male/Female
Address
Home Telephone Number
Country of Birth
Australian Residency Status
Dr/Ms/Mrs/Miss/Mr
2.
Postcode
(Contact Y/N)
Citizenship
(You must be eligible to work in Australia to apply for this position) (permanent, temporary)
ACADEMIC QUALIFICATIONS
qualification first)
Degree Title
(Show only completed courses and highest
Institution
Year of Graduation
PRESENT POSITION
Position Title
Name of Organisation
Address
Email Contact
Business Telephone Number
Length of Service
Contact (Y/N)
PROFESSIONAL REFEREES
1. Name
Title
Telephone Number
Email Contact
2. Name
Title
Telephone Number
Email Contact
Fax Number
Fax Number
Signature: ______________________________________________ Date: ____/____/____
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4
Figure 4.26 Example of a job application form
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Personnel Planning And Recruitment
4.8
1.
SUMMARY
Employment planning is the process of deciding what positions he or she has to fill and
how to fill them.
HR managers need to forecast personnel needs and the supply of internal and external
candidates. In order to estimate personnel needs, the HR managers has to estimate sales
Figure and the production volume to meet these estimates. After that, they need to relate
personnel needs to these production estimates.
A pool of qualified applicants is built once HR managers have projected personnel
needs. There are two sources of candidates i.e. internal and external.
The main source of internal candidates is promotion from within. The tools used for this
purpose are job posting and job bidding, rehiring, personnel records and skill banks and
succession planning.
The external sources of candidates are advertising, executive recruiters, college
recruiters, special events like job fairs, walk-ins, referrals, employment agencies, sign-on
bonuses and recruiting via internet.
Apart from recruiting, employers can also rely on other alternatives such as outsourcing,
employee leasing, temporary agencies and independent contractors to get employees.
Filling in an application form is the first step in the initial screening process. Most
managers use them to obtain background data. One can use the application form data to
make predictions about the applicant’s future performance in terms of job tenure, job
success and employee theft.
2.
3.
4.
5.
6.
7.
8.
4.9
CASE STUDY – SYARIKAT PERMATA ALAM SDN BHD
Mary Lee, the recruitment executive for Syarikat Permata Alam Sdn Bhd has been promoted
to her position after several years as a group leader in the production department. One of
Mary’s first assignments was to recruit two software design engineers. After considering
various recruitment alternatives, Mary placed the following advertisement in The Start with a
circulation in excess of 1,000,000:
EMPLOYMENT OPPORTUNITY
FOR SOFTWARE DESIGN ENGINEERS
2 positions available for software design engineers desiring career in growth industry.
Prefer recent college graduates with good appearance.
Apply Today! Send your resume,
in confidence, to: Mary Lee
Syarikat Permata Alam Sdn Bhd, 65 Jalan Ampang
50450 Seberang Prai
More than 300 applications arrived in the first week and Mary was excited. When she
reviewed the applicants, it appeared that only a small number of people possessed the desired
qualifications for the job.
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Questions
1. Mary overlooked some of the proper recruiting practices, which resulted in an excessive
number of unqualified people applying. What are they?
2. Identify the hiring standards that should be avoided in the advertisement.
3. Imagine that you are Mary and construct the advertisement for the position of software
design engineer
4.10 EXERCISE
4
4.10.1 Answer the following questions
1. Jane must decide what positions the firm should fill in the next six months. What activity is
Jane working on?
a. Recruitment
b. Selection
c. Personnel Planning
d. Interviewing
e. None of the above
2. When a company decides on how to fill executive positions, the process is called
_______________.
a. employment planning
b. succession planning
c. selection
d. interviewing
e. testing
3. Trend analysis is limited in its usefulness, because ___________________.
a. it considers time but not other changes such as productivity
b. it considers too many possible influences
c. it only provides an initial estimate
d. it assumes constant increases in productivity
e. all of the above
4. Suppose a salesperson traditionally generates $500,000 in sales and the company wishes to
increase sales by $4 million dollars per year. Using ratio analysis, how many new salespeople
are required?
a. 4
b. 5
c. 6
d. 7
e. 8
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Personnel Planning And Recruitment
5. ____________ contain data on employees’ performance records, educational background
and promotion recommendations.
a. Computerised information systems
b. Replacement charts
c. Qualification inventories
d. Trend records
e. Personnel files
6. Qualifications inventories can be tracked and maintained by using _______________.
a. personnel inventories
b. replacement charts
c. position replacement cards
d. computerized information systems
e. all of the above
4
7. Which of the following is not a reason to recruit through a central officer?
a. reduction of duplication of efforts
b. shared expenses
c. development and availability of recruitment experts
d. autonomous divisions
e. synergistic recruiting opportunities
8. Why are large applicant pools considered desirable?
a. allow the firm the chance to be more selective
b. increase costs involved in screening applicants
c. extend time required to fill vacant positions
d. costs of processing applicants outweighs benefits of selectivity
e. provide an opportunity to use pre-screening computer software
9. Which of the following is a disadvantage of using internal sources of candidates to fill
vacant positions?
a. knowledge of candidates’ strengths and weaknesses
b. potential to upset or lose employees who aren’t promoted
c. accurate view of skill sets
d. high commitment to the company
e. reduced training and orientation required
10. Job posting refers to all of the following except
a. publicizing the open job to employees
b. listing the job’s attributes
c. listing the job’s pay rate
d. listing the job’s required qualifications
e. listing the number of desired applicants
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11. How can high potential employees be developed for future positions?
a. internal training
b. cross-functional experience
c. job rotation
d. external training
e. all of the above
4
12. The effectiveness of advertising for recruiting qualified applicants depends upon
________________.
a. complementary recruiting methods
b. graphical appeal
c. ad construction
d. corporate image
e. unemployment rate
13. Which of the following statements from a hypothetical job advertisement is intended to
develop interest in a job?
a. “You’ll thrive on challenging work.”
b. “Ideal candidates will possess a four-year degree with an emphasis in
management.”
c. “Schedule flexibility and familiarity with various software applications required.”
d. “Responsibilities include even planning and relationship management.”
e. All of the above
14. Which of the following is not an advantage of using a private employment agency?
a. it may be faster than in-house recruiting
b. it does not require internal recruitment specialists
c. screening may not be as thorough
d. it may be better for attracting minority candidates
e. e. it is more comfortable when approaching candidates from competitors
15. Which of the following is not another term for contingent workers?
a. part-time
b. just-in-time
c. collateral
d. temporary
e. all are terms for contingent workers
16. Pamlico River Productions is seeking a top-level executive to serve in its finance division.
Qualified candidates can be difficult to find because there is more demand than supply.
Pamlico River Productions should consider using a(n) ________________ for
recruitment.
a. state-run employment agency
b. executive recruiter
c. temporary agency
d. internet-based job site
e. any of the above
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Personnel Planning And Recruitment
17. SB & A Consulting plans to do some college recruiting to fill entry-level management
positions this year. In choosing the colleges to visit, it should consider ____________.
a. school location
b. school reputation
c. cost to attend school
d. size of school
e. all of the above
18. Which of the following is not a type of information that should be provided by application
forms?
a. education
b. experience
c. work stability
d. applicant’s age
e. previous progress and growth
19. What are the advantages and disadvantages of centralizing the recruitment function?
20. Explain why generating large applicant pools in not always desirable for an organization.
What implications exist for recruitment methods?
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