1
HUMAN RESOURCE PLANNING & RECRUITING
• Learning Objectives
– List the steps in the recruitment and selection process
– Explain the main techniques used in employment planning and
forecasting
– Explain and give examples for the need for effective recruiting
– Name and describe the main internal sources of candidates
– List and discuss the main outside sources of candidates
– Develop a help wanted ad
– Explain how to recruit a more diverse workforce
2
The Recruitment and Selection Process
1. Decide what positions you’ll have to fill through HR planning
and forecasting.
2. Build a pool of candidates for these jobs by recruiting
internal or external candidates.
3. Have candidates complete application forms and perhaps
undergo an initial screening interview.
4. Use selection techniques like tests, background
investigations, and physical exams to identify viable
candidates.
5. Decide who to make an offer to, by having the supervisor
and perhaps others on the team interview the candidates.
3
HUMAN RESOURCE PLANNING & RECRUITING
• Employment Planning and Forecasting
HR planning is the first step in the recruiting & selection
process.
Employment or HR planning is the process of deciding what
positions the firm will have to fill, and how to fill them.
Personnel planning covers all the firm’s personnel from the
lowest official to the highest manager, even the CEO.
4
Steps in Recruitment and Selection Process
Employment
Planning and
forecasting
Recruiting:
Build a
pool of
candidates
Candidate
Candidates
becomes
employee
Applicants
Complete
Application
Forms
Use selection
Tools like tests
to screen out
most applicants
Supervisors and
others interview
final candidates
to make final
choice
5
Planning and Forecasting
• Employment or HR 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
6
Planning and Forecasting
Employer’s Strategic Plan
Diversity?
Integrate vertically?
Expand geographically?
On what basis should we compete?
Employer’s
functional
plans
Personnel
plan
Personnel
forecasts
Marketing &
sales plan
Production
plans
Financial
plans
HR plans
T&D plan
Compensa
tion plan
Labor
relation
plans
Security
and safety
plan
Recruitment
plan
Employee
selection
plans
7
How to forecast Personnel Needs:
1. Project turnover (as a result of resignations or
terminations)
2. Quality and skills of your employees (in relation to
what you see as the changing needs of your
organization)
3. Strategic decisions to upgrade the quality of
products or services or enter into new markets.
4. Technological and other changes resulting in
increased productivity
5. The financial resources available to your
department.
8
Trend Analysis: Study of a firm’s past employment needs over a
period of years to predict future needs.
Ratio Analysis: A forecasting technique for determining future staff
needs by using ratios between, for example, sales volume and
number of employees needed.
Computerized Forecast:
Determination of future staff needs by projecting sales, volume of
production, and personnel required to maintain this volume of
output, using software packages.
9
Forecasting the Supply of inside Candidates
Qualifications Inventories:
A Manual or computerized records listing employees’ education,
career and development interests, languages, special skills, and so
on, to be used in selecting inside candidates for promotion.
Personnel Replacement Charts:
Company records showing present performance and promotability
of inside candidates for the most important positions.
Position Replacement Card:
A card prepared for each position in a company to show possible
replacement candidates and their qualifications.
10
Forecasting the Supply of Outside
Candidates
• Factors impacting the supply of outside candidates
– General economic conditions
– Expected unemployment rate
• Sources of information
– Periodic forecasts in business publications
– Online economic projections
11
Effective Recruiting:
Starts with developing an applicant pool, using one or
more of the recruitment sources described below. It’s
hard to overemphasize the importance of effective
recruiting. The more applicants you have, the more
selective you can be in your hiring. If only two
candidates apply for two openings, you may have little
choice but to hire them. But if 10 or 20 applicants
appear, you can use techniques like interviews and
tests to screen out all but the best.
12
What makes Effective Recruiting a challenge:
•First, some recruiting methods are superior to others,
depending on the type of job for which you are
recruiting.
•Second, the success you have recruiting depends
greatly on the non-recruitment issues and policies. Help
to build a bigger applicant pool
•Third, rules and regulations need to know in
recruitment process.
13
Recruiting yield pyramid:
The historical arithmetic relationships
between recruitment leads and invitees, invitees and interviews, interviews and
offers made, and offers made and offers accepted.
Recruiting Yield Pyramid
50
New hires
100
Offers made (2:1)
150
Candidates interviewed (3:2)
200
1,200
Candidates invited (4:3)
Leads generated (6:1)
14
Internal Sources of Candidates:
Recruiting may bring to mind employment agencies and classified
ads, but current employees are often the best source of candidates.
1. First, there is really no substitutes for knowing a
candidate’s strengths and weaknesses. It is often therefore
safer to promote employees from within, since you’re likely
to have a more accurate view of the person’s skills than you
would an outsider’s.
2. Inside candidates may also be more committed to the
company.
3. Morale may rise, to the extent that employees see
promotions as rewards for loyalty and competence.
4. Inside candidates may also require less orientation and
training than outsiders.
15
Problems:
However, hiring from within can also backfire. Employees who apply
for jobs and don’t get them may because discontented; telling
unsuccessful applicants why they were rejected and what remedial
actions they might take to be more successful in the future is thus
crucial.
Inbreeding is another potential drawback. When all managers come
up through the ranks, they may have a tendency to maintain the
status quo.
16
Finding Internal Candidates
• Job posting
– Publicizing an open job to employees (often by
literally posting it on bulletin boards) and listing its
attributes.
• Rehiring former employees
– Advantages:
• They are known quantities.
• They know the firm and its culture.
– Disadvantages:
• They may have less-than positive attitudes.
• Rehiring may sent the wrong message to current employees about
how to get ahead.
17
Finding Internal Candidates (cont’d)
• Succession planning
– The process of ensuring a suitable supply of
successors for current and future senior or key jobs.
• Succession planning steps:
– Identifying and analyzing key jobs.
– Creating and assessing candidates.
– Selecting those who will fill the key positions.
18
Outside Sources of Candidates
• Advertising
– The Media: 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
Internet job sites
Marketing programs
• Constructing an effective ad
– Wording related to job interest factors should evoke the
applicant’s attention, interest, desire, and action (AIDA)
and create a positive impression of the firm.
19
Outside Sources of Candidates (cont’d)
• Types of employment agencies:
– Public agencies operated by federal, state, or local
governments
– Agencies associated with nonprofit organizations
– Privately owned agencies
20
Why turn to an agency? Reasons include:
1. Your firm doesn’t have its own HR department and is not geared to
doing recruiting and screening.
2. Your firm has found it difficult in the past to generate a pool of qualified
applicants.
3. You must fill a particular opening quickly.
4. There is a perceived need to attract a greater number of minority or
female applicants.
5. You want to reach currently employed individuals, who might feel more
comfortable dealing with agencies than with competing companies.
6. You want to cut down on the time you’re devoting to interviewing.
21
Executive Recruiters
1. Make sure the firm is capable of conducting a thorough
search.
2. Meet the individual who will actually handle your
assignment.
3. Ask how much the search firm charges. There are several
things to keep in mind here. Search firm fees range from
25% to 35% of the guaranteed annual income of the
position.
4. Choose a recruiter you can trust with privileged information.
5. Talk to some of the firm’s clients. Get the names of two or
three companies for whom the firms has recently
completed assignments.
22
Referrals and Walk-Ins
“Employees referrals” campaigns are another option. The firm
posts announcements of openings and requests for referrals in its
bulletin and on its wallboards and internet.
Recruiting via the Internet
A large and fast-growing proportion of employers use the Internet
as a recruiting tool. The percentage of Fortune 500 companies
recruiting via the Internet jumped from 10% in 1997 to 75% in
2000. Employers list several advantages of Internet recruiting. First,
it is cost effective.
23
Recruiting Online
Americas Job Bank www.ajb.dni.us
CareerBuilder www.careerbuilder.com
CareerMosaic www.careermosaic.com
CareerShop.com www.careershop.com
ComputerJobs.com www.computerjobs.com
Dice.com www.dice.com
Employment911.com www.employment911.com
JobOptions www.joboptions.com
Jobs.com www.jobs.com
JobTrack.com www.jobtrack.com
Monster.com www.monster.com
24
Developing and using Applications Forms
• Purpose of Application Forms
Once you have a pool of applicants, the prescreening
process can begin. The Application form is usually the
first step in this process.
• Application form:
The form that provides information on education, prior
work record, and skills.
25
WHY APPLICATION FORMS ARE RELEVANT:
Carefully scrutinizing all information supplied by the applicant on his or her
employment application. For example, look for unexplained gaps in
employment.
Getting the applicant’s written authorization for reference checks, and carefully
checking references.
Saving all records and information you obtain about the applicant.
Rejecting applicants who make false statements of material facts or who have
conviction records for offenses directly related and important to the job in
question.
Keeping in mind the need to balance the applicant’s privacy rights with other’s
“need to know,” especially when you discover damaging information.
Taking immediate disciplinary action if problems develop.
26