HR MODULE 4RECRUITMENT & SELECTION
LINKING STRATEGY TO PLANS
Diversify?
Integrate vertically
Expand geographically?
On what basis should we compete
Employers’ Strategic
Plans
Functional Plans
Marketing &
Sales Plans
Manpower
Plans
Manpower
Forecasts
Production
Plans
T&D Plans
Recruitment &
Selection
Plans
Financial
Plans
Compensation
Plans
HR Plans
Employee Relations
Plan
HR PLANNING PROCESS
External Environment Scan
Internal Environment Scan
Demand Forecast
Supply Forecast
HR Program Implementation
Evaluation & Audit
Surplus
Shortage
HR PROGRAMS :
ALTERNATIVES TO DEAL WITH EMPLOYEE
SHORTAGES
Recruitment
“Recruitment is an art of discovering and procuring potential
applicants for actual and anticipated vacancies”.
Recruitment follows HRP
ALL RIGHTS RESERVED
Objectives of Recruitment
1.
2.
3.
4.
5.
6.
7.
8.
Determine the present and future requirements of the organisation.
Increase the pool of job candidates at minimum cost.
Reduce the number of underqualified or overqualified job applicants.
Reduce the probability of the recruits leaving the organisation after a
short period of time.
Compliance of legal and social obligations on the composition of its
workforce.
Identify potentially appropriate job applicants.
Increase organisational and individual effectiveness in the short term and
long term.
Evaluate the effectiveness of various recruiting techniques and sources for
all types of job applicants.
HUMAN RESOURCE MANAGEMENT, 5E
6
Factors influencing recruitment
External Forces
• Supply and demand
• Unemployment rate
• Labour market
• Political-legal
• Sons of soil
• Image
Recruitment
Internal Forces
• Recruitment Policy
• HRP
• Size of the firm
• Cost
• Growth and expansion
Plans
7
Factors affecting Recruitment
• Size. Large organizations indulge in continuous recruitment
• Employment conditions in the community plays a potential factor
• Geographical factors and conditions play an important role
• Organizational policies like promotions from within attract the
employees
• Compensation and benefit packages influence and attract the
employees
• Growing and expanding organizations attract employees
ALL RIGHTS RESERVED
Constraints and Challenges in the recruitment process
• Perceived image of the organization
•Attractiveness of the job
•Organizational policies
•Legislation/Governmental policies
•Costs of recruitment
ALL RIGHTS RESERVED
Recruitment policy :
1.
Identify the public policy on hiring and employment
relationship
2.
Provide maximum employment security
3.
Encourage employees with continuing development
of talent and skills
4.
Assure fairness to the employees
5.
Provide employment to physically handicapped or
minority community as stipulated
6.
Assure organization’s interest in his goals and
employment objectives.
ALL RIGHTS RESERVED
Recruitment Process
Personnel
Planning
Job
Vacancies
Job
Analysis
Employee
Requisition
Recruitment
Planning
• Numbers
• Type
Searching
Activation
“Selling”
• Message
• Media
Strategy
Development
• Where
• How
• When
Applicant
Population
Applicant
Pool
Screening
Potenti
al Hires
To Selection
Evaluation
and Control
11
Sources of Recruitment
Professional or Trade Associations
Advertisements
Employment Exchanges
Present Employees
Campus Recruitment
Contractors
Former Employees
Displaced Persons
Radio and Television
Previous Applicants
Recruitment
Internal Sources
Consultants
External Sources
Walk -ins and Write-ins
Employees Referrals
Acquisitions and Mergers
Competitors
E-Recruiting
12
Recruitment strategy
1. Employer Branding
a. Employee Value Proposition.
b. Talent Focus
2. Publicity
a. Flexible work environment
b. Organization’s support for innovation
c. Promotional opportunities and prospects to learn and
grow.
d. How performance is recognized and rewarded.
Recruitment strategy
3. Reinvigorate traditional recruitment methods.
a. Creative advertising. AIDA principle
b. High impact Employee/Customer Referral
Program
c. Spice up the Website.
4. Invest in innovative recruitment methods
a. E recruitment
b. Job Fairs
c. Target Sourcing
d. Recruitment Benchmarking
Methods of Recruiting
Most organizations must use both internal and external
sources to generate sufficient applicants
When there is an inadequate supply within the
organization, it must seek external candidates
The choice of a recruiting method can make all the
difference in the success of the recruiting effort
Internal sourcing
Merits
Demerits
Economical: Cost minimal. No
expenses incurred on advertising.
Limited Choice: Organization
forced to select from a limited
pool.
Inbreeding: Discourages entry of
talented people.
Inefficiency: Seniority based
promotions can encourage
inefficiency and indifferent
performance.
Bone of contention: Infighting.
Premium positions may end up on
a bitter note.
Suitable: Right candidates for right
jobs.
Reliable: Known devils better than
unknown ones.
Satisfying: Motivates employees.
External Sourcing
Merits
Demerits
Wide Choice: Candidates with
required qualifications can be
picked up.
Injection of fresh blood: People
with special skills and knowledge
could be hired.
Motivational force: Fires up
internal candidate to work harder
and leads to positive competition.
Long Term benefits: Organization
would gain momentum and change.
Expensive: Hiring costs could go
up.
Time consuming: Time to
advertise, screen, test and select
suitable candidate.
Demotivating: Discourages
existing employees.
Uncertainty: No guarantee that
suitable candidates will be found
Internal Recruiting :Job posting
◦ Skills inventories can be used to identify internal applicants
for job vacancies
◦ It is hard to identify everyone who might be interested in the
opening, so firms use job posting and bidding
Today, postings are computerized and easily accessible to
employees via the company’s intranet
Software allows employees to match an available job with
their skills and experience
It may also highlight where gaps exist
Internal Recruiting:
Moonlighting/Employee Referrals
Ideal when there is:
A short-term shortage
No great amount of additional work
Workers can be enticed to take a “second” job with bonuses
Organizations sometimes frame moonlighting policies
External Recruiting
◦
◦
◦
◦
◦
◦
Walk-ins
Media advertising
E-recruiting
Employment agencies
Executive search firms
Special-events recruiting
Internships
Media Advertising
1.
Newspapers
2.
Trade/professional publications
3.
Billboards
4.
Metro and bus cards
5.
Radio
6.
Telephone
7.
Television
E-recruiting
30,000 websites devoted to job posting activities.
Globally 71 percent of all job listings on a handful of
the “big boards”
Monster.com, CareerBuilder.com, HotJobs.com,
Jobsearch.org
Over 96 percent of all U.S. companies now use the
Internet for recruitment activities
E-recruiting
1. Relatively inexpensive
2. Provides immediate access to thousands of prospective
applicants
3. Allows searches over broad geographic and company
postings
4. Some online services, like CareerPath.com, catalog
traditional newspaper recruiting ads
5. Specialized sites focus on particular fields or areas
Having a human resources Web page is an effective addition
to an overall recruitment strategy
Employment Agencies/Executive Search
Executive search firms:
Focus on higher-level managerial positions
Are on Retainer
Charge higher fees
Employment agencies:
Deal primarily with middle-level management and
below
Are paid on contingencies.(only when they have
provided a new hire )
Special Events Recruiting
1.
Open houses
2.
Scheduled visits to headquarters
3.
Informative literature
4.
Speeches
5.
Job fairs
Special Events Recruiting
Job fairs:
◦ Can reduce recruiting costs by up to 80%
◦ Held on holidays or weekends to reach college
students and the currently employed
◦ Useful for smaller, less well known employers
◦ Appeal to job seekers who wish to locate in a
particular area and those wanting to minimize
travel and interview time
Summer Internships
◦ Allows organizations to get specific projects done
◦ Exposes organizations to talented, potential
employees who may become “recruiters” at
school
◦ Provides trial-run employment
◦ Can attract the best people where there are
labor shortages
◦ Can improve diversity
Realistic Job Previews
Recruitment is more effective when realistic job
previews (RJPs) are used
Pertinent information about the job is given, without
distortion or exaggeration
Most jobs have unattractive features; the RJP
presents the full picture
Realistic Job Previews
Studies indicate that:
◦ Newly hired employees who received RJPs have a
higher rate of job survival
◦ Employees hired after RJPs have higher satisfaction
◦ RJPs can set the job expectations at realistic levels
◦ RJPs do not reduce the flow of capable applicants
Recruitment Sources Effectiveness
Miyake Studies Average Employee Turnover:
1.
Candidates who came in through to Advertising51%
2.
Spontaneous Applicants-37%
3.
Candidates came in through Employee Referrals30%
Alternatives to Recruitment
Overtime
Organizations avoid the cost of recruiting and
having additional employees
Employees earn additional income
Potential problems include fatigue, higher accident
rates, and increased absenteeism
Continuous overtime often results in higher labor
costs and reduced productivity
Alternatives to Recruitment
Outsourcing
Sometimes called “staff sourcing”
Involves paying a fee to a leasing company or professional employer
organization (PEO) that handles payroll, benefits, and routine HRM functions
Especially attractive to small and midsize firms that can’t afford a full-service HR
department
Alternatives to Recruitment
Temporary Employment
One of the most noticeable effects of the downsizing
epidemic and labor shortages of the past two decades
“Just-in-time” employees staff all types of jobs (professional,
technical, and executive positions)
RECRUITMENT METRICS:
RECRUITMENT YIELD PYRAMID
Offer Acceptance
20
Offers/Acceptance (3:2)
Job Offer
30
Invited for Final
Interview
Invited to Screening
Interview
40
200
Interview/Offers (4:3)
Screening/Invites (5:1)
Contacts/Screens (10:1)
Initial Contacts
2000
34
RECRUITMENT METRICS
COST
TIME
QUALITY
SATISFACTION
Cost Per Hire=
Recruiting cost
Time to Fill=
Number of days
between the date
the position was
approved and the
date the employee
started working
On the job performance
appraisal
Hiring Manager
Satisfaction
Number of
positions
Staffing Efficiency
Ratio=
Total Recruiting
cost
Total compensation
of those recruited
Time Ratio=
Actual time to start
Contracted time to
start
New Hire Quality=
(PR+HP+HR)/N
PR=Average Job
performance ratings
HP=% of new hire promoted
within a year
HR=% of new hires retained
after a year.
N = Number of indicators
used
RECRUITMENT METRIC
New Hire loss metric
Lost in 2014
Lost in 2013
Employees hired in
2014
Y%
Employees hired in
2013
V%
U%
Employees hired in
2012
S%
R%
Lost in 2012
Q%
Recruitment Metric
Salaries for recruiters.
Management and professional time spent on preparing job
description, job specifications, advertisements, agency liaison, and
so forth.
Cost of advertisements or other recruitment methods, that is,
agency fees.
Cost of producing supporting literature.
Recruitment overheads and administrative expenses.
Costs of overtime and outsourcing while the vacancies remain
unfilled.
Cost of recruiting suitable candidates for the selection process.
37
SELECTION
Selection is the process of making a “hire” or “no hire”
decision regarding each applicant for a job.
The process typically involves determining the
characteristics required for effective job performance and
then measuring applicants on those characteristics.
The characteristics required for effective job performance
are typically based on a job analysis.
Overview of the selection process
oAssess job tasks and organizational context
oChoose valid predictors to assess
oDesign a selection process that allows Organization &
applicant to make a decision
oSynthesize information and make selection
Selection Process
Employment
Final decision
Reference Check
Medical Examination
Final interview
Group Discussion
Written examination
Application form
TYPICAL SELECTION METHODS
1. Application Blanks and Resumes
2. Physical Ability Tests
3. Interviews
4. Psychometric Tests
5. Work Samples
6. Reference and Background Checks
7. Assessment Centres
8. Medical Testing
APPLICATION BLANK: A FORMAT TO WRITE
IN INDIVIDUAL DETAILS
Purpose:
To aid selection of candidates for interview
To provide framework on which the interview can
be built
To form the basis of ‘future vacancies’ file
To assist in the image building of the organization
TYPES OF INTERVIEWS
Structured
● Unstructured
● Mixed
● Behavioural
● Stressful
●
Structured Interview
The structured interview is based directly on a
thorough job analysis. It applies a series of jobrelated questions with predetermined expected
answers consistently across all interviews for a
particular job.
Types Of Employment Interview
1
1-Candidate
2-Interviewer
2
One to one
1
2
1
1
2
2
Sequential Interview
Panel Interview
1
2
Interview Errors
Similar to me Effect
Expectancy Effect
Leniency and Harshness
effect
Contrast effect
Interview
First impressions
Stereotyping
Halo and Horns Effect
Negative Information Bias
GUIDELINES FOR EFFECTIVE INTERVIEWS
Give raters specific criteria and scoring key to evaluate
responses
Use panel interviews for efficiency and reliability
Train interviewers
Minimize bias, first impressions
Ensure job-relatedness and consistency
Provide frame-of-reference training
INTERVIEW EFFECTIVENESS
Interviews are more likely to accurately predict job performance
when Interview format is structured ,and standardized . There
are two formats which are more effective than others based on
research:
1. Situational Interviewing
2. Behaviour based Interviewing.
Situational Interviewing is where candidates are asked situation
specific questions relating to how they would do the job, and
are examined on their hypothetical performance. Answers are
scored by specialists and interpreted according to a
predetermined set of criteria
BEHAVIOURAL EVENT INTERVIEWS
Behaviour Event Interview focuses on the candidate’s actual
behaviour on the assumption that past behaviour is the best
predictor of future behaviour. is a competency based
assessment method that uses customized questions to assess
leadership competencies.
Candidates will be asked to recall events when they
demonstrated a particular competency.
Using tests for selection
Major types of tests used by employers
Basic skills tests (45%)
Drug tests (47%)
Psychological tests (33%)
Use of testing
Increasingly being used as specific job skills and work
demands increase
Screen out undesirable employees
Reduce turnover by personality profiling
Source of tests
Test publishers
Use of tests
A organization must be able to prove:
That its tests are related to success or failure on
the job (validity)
That its tests don’t unfairly discriminate against
minority or non minority subgroups
Basic testing concepts
Reliability
The consistency of scores over time
Test validity
The accuracy with which a test, interview, and so
on measures what it purports to measure or fulfills
the function it was designed to fill
Does the test actually measure what we need for
it to measure?
Sample picture card from
Thematic Apperception Test
How do you interpret this
picture?
Source: Harvard University Press. Used with permission.
Figure 6–1
Other tests
Interest inventories
Personal development and selection devices that
compare the person’s current interests with those
of others now in various occupations so as to
determine the preferred occupation for the
individual
Achievement tests
Test that measure what a person has already
learned—“job knowledge” in areas like
accounting, marketing, or personnel
Work samples and simulations
Work sampling technique
A testing method based on measuring an
applicant’s performance on actual basic job
tasks
Management assessment center
A simulation in which management candidates
are asked to perform realistic tasks in
hypothetical situations and are scored on their
performance
Reference checks
Sources of information for background
checks:
Former employers
Current supervisors
Commercial credit rating companies
Written references
Assessment Centres
Assessment centres are designed to yield information that
can be used to make decisions concerning suitability for a
job.
They provide a fuller picture by combining a range of
techniques.
General methods used include group discussions, role plays
and simulations, interviews and tests.
Candidates attending an assessment centre will be
observed by assessors who should be trained to judge
candidates’ performance against criteria contained within
the competency framework.
Selection Process Metrics
Validity
Reliability
Cost
Ease of administration
Applicant acceptance
Putting more money into selection can reduce the
amount that must be spent on training
