After studying this chapter, you should be able to:Explain the main techniques used in employment planning and forecasting.List and discuss the main outside sources of candidates.Effectively recruit job candidates.Name and describe the main internal sources of candidates.Develop a help wanted ad.Explain how to recruit a more diverse workforce.

The Recruitment and Selection ProcessDecide what positions to fill through personnel planning and forecasting.Build a candidate pool by recruiting internal or external candidates.Have candidates complete application forms and undergo initial screening interviews.Use selection tools to identify viable candidates.Decide who to make an offer to, by having the supervisor and others interview the candidates.

FIGURE 51Steps in Recruitment and Selection ProcessThe recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

FIGURE 52Linking Employers Strategy to Plans

Planning and ForecastingEmployment or Personnel PlanningThe process of deciding what positions the firm will have to fill, and how to fill them.Succession PlanningThe process of deciding how to fill the companys most important executive jobs.What to Forecast?Overall personnel needsThe supply of inside candidatesThe supply of outside candidates

Forecasting Personnel Needs

FIGURE 53 Determining the Relationship Between Hospital Size and Number of NursesNote: After fitting the line, you can project how many employees youll need, given your projected volume.

Size of Hospital (Number of Beds)Number of Registered Nurses 200240300260400470500500600620700660800820900860

Drawbacks to Traditional Forecasting TechniquesThey 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.

Using Computers to Forecast Personnel RequirementsComputerized ForecastsSoftware 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 scenariosminimum, maximum, and probable.

FIGURE 54 Management Replacement Chart Showing DevelopmentNeeds ofPotential FutureDivisional VicePresidents

Forecasting the Supply of Inside Candidates

The Matter of PrivacyEnsuring the Security of HR InformationControl of HR information through access matricesAccess to records and employee privacyLegal ConsiderationsThe Federal Privacy Act of 1974New York Personal Privacy Act of 1985HIPAAAmericans with Disabilities Act

FIGURE 55Keeping Data Safe

Forecasting Outside Candidate SupplyFactors In Supply of Outside CandidatesGeneral economic conditionsExpected unemployment rateSources of InformationPeriodic forecasts in business publicationsOnline economic projectionsU.S. Congressional Budget Office (CBO)U.S. Department of Labors O*NETBureau of Labor Statistics (BLS)Other federal agencies and private sources

Effective RecruitingExternal Factors Affecting RecruitingSupply of workersOutsourcing of white-collar jobsFewer qualified candidatesOther Factors Affecting RecruitingConsistency of recruitment with strategic goalsTypes of jobs recruited and recruiting methodsNonrecruitment HR issues and policiesSuccessful prescreening of applicantsPublic image of the firmEmployment laws

Effective Recruiting (contd)Advantages of Centralizing RecruitmentStrengthens employment brandFacilitates applying strategic prioritiesReduces duplication of HR activitiesReduces cost of new HR technologiesBuilds teams of HR expertsProvides better measurement of HR performanceAllows for sharing of applicant pools

FIGURE 56Sample Acceptable Questions Once Conditional Offer Is MadeDo you have any responsibilities that conflict with the job vacancy?How long have you lived at your present address?Do you have any relatives working for this company?Do you have any physical defects that would prevent you from performing certain jobs where, to your knowledge, vacancies exist?Do you have adequate means of transportation to get to work?Have you had any major illness (treated or untreated) in the past 10 years?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.)What is your educational background? (The information required here would depend on the job-related requirements of the position.)

Measuring Recruiting Effectiveness

TABLE 51Selection Devices that Could be Used to Initially Screen ApplicantsNote: *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.

Selection Device Validity for Predicting Job Performance* ConstructGeneral mental ability tests 0.51Conscientiousness tests 0.31Integrity tests 0.41Method Work sample tests 0.54Job knowledge tests 0.48Structured interviews 0.51Biographical data 0.35Grade point average 0.23Ratings of training and experience 0.11

FIGURE 57Recruiting Yield Pyramid

Internal Candidates: Hiring from WithinForeknowledge of candidates strengths and weaknessesMore accurate view of candidates skillsCandidates have a stronger commitment to the companyIncreases employee moraleLess training and orientation requiredFailed applicants become discontentedTime wasted interviewing inside candidates who will not be consideredInbreeding strengthens tendency to maintain the status quoAdvantagesDisadvantages

Finding Internal Candidates

Outside Sources of CandidatesAdvertisingRecruiting via the Internet Employment AgenciesTemp Agencies and Alternative StaffingOffshoring/OutsourcingOn Demand Recruiting Services (ODRS)Executive RecruitersCollege RecruitingReferrals and Walk-insLocating Outside Candidates

Outside Sources of Candidates (contd)Recruiting via the InternetAdvantagesCost-effective way to publicize job openingsMore applicants attracted over a longer periodImmediate applicant responsesOnline prescreening of applicantsLinks to other job search sitesAutomation of applicant tracking and evaluationDisadvantagesExclusion of older and minority workersExcessive number of unqualified applicantsPersonal information privacy concerns of applicants

FIGURE 58Top Job Boards Ranked According to Average Number of Job ListingsSource: Workforce Management, May 22, 2006, p. 12.

FIGURE 59Ineffective and Effective Web AdsSource: Workforce, December 2001, Crain Communication, Inc. Reprinted with permission.

Advertising for Outside CandidatesThe Media ChoiceSelection of the best medium depends on the positions for which the firm is recruiting.Newspapers: local and specific labor marketsTrade and professional journals: specialized employeesInternet job sites: global labor marketsEffective AdsCreate attention, interest, desire, and action (AIDA).Create a positive impression of the firm.

FIGURE 510Help Wanted Ad That Draws AttentionSource: The New York Times, May 13, 2007, Business p. 18.

Employment Agencies

Outside Sources of Candidates (contd)Why Use a Private Employment AgencyNo 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.

Outside Sources of Candidates (contd)Avoiding Problems with Employment AgenciesProvide the agency with accurate and complete job descriptions.Make sure tests, application blanks, and interviews are part of the agencys selection process.Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agencys screening process.Screen agency for effectiveness in filling positions.Supplement the agencys reference checking by checking the final candidates references yourself.

Temp Agencies and Alternative StaffingBenefits of TempsIncreased productivitypaid only when workingAllows trial run for prospective employeesNo recruitment, screening, and payroll administration costs Costs of TempsIncreased labor costs due to fees paid to temp agenciesTemp employees lack of commitment to the firm

Concerns of Temp EmployeesDehumanizing, impersonal, and discouraging treatment by employers.Insecurity about employment and pessimism about the future.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 underemployed while trying return to the full-time labor market.Anger toward the corporate world and its values; expressed as alienation and disenchantment.

FIGURE 511Guidelines for Using Temporary EmployeesSource: Adapted from Bohner and Selasco, Beware the Legal Risks of Hiring Temps, Workforce, October 2000, p. 53.Do not train your contingent workers. Ask their staffing agency to handle training.Do not negotiate the pay rate of your contingent workers. The agency should set pay.Do not coach or counsel a contingent worker on his/her job performance. Instead, call the persons agency and request that it do so.Do not negotiate a contingent workers vacations or personal time off. Direct the worker to his or her agency.Do not routinely include contingent workers in your companys employee functions.Do not allow contingent workers to utilize facilities intended for employees.Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval.Do not let managers discuss harassment or discrimination issues with contingent workers.Do not discuss job opportunities and the contingent workers suitability for them directly. Instead, refer the worker to publicly available job postings.Do not terminate a contingent worker directly. Contact the agency to do so.

Working with a Temp AgencyInvoicing. Make sure the agencys invoice fits your companys needs.Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agencys 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.

Offshoring/Outsourcing White-Collar and Other Jobs

Outside Sources of Candidates (contd)Executive Recruiters (Headhunters)Contingent-based recruitersRetained executive searchersInternet technology and specialization trendsGuidelines for Choosing a RecruiterMake sure the firm is capable of conducting a thorough search.Meet individual who will handle your assignment.Ask how much the search firm charges.Never rely solely on the recruiter to do reference checking.

Outside Sources of Candidates (contd)College RecruitingOn-campus recruiting goalsTo determine if the candidate is worthy of further considerationTo attract good candidatesOn-site visitsInvitation lettersAssigned hostsInformation packagesPlanned interviewsTimely employment offerFollow-upInternships

Outside Sources of Candidates (contd)Employee ReferralsReferring employees become stakeholders.Referral is a cost-effective recruitment program.Referral can speed up diversifying the workforce.Relying on referrals may be discriminatory.Walk-insSeek employment through a personal direct approach to the employer.Courteous treatment of any applicant is a good business practice.

FIGURE 512Best Recruiting SourcesPercentage 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.

Improved Productivity Through HRIS:An Integrated Technology Approach to Recruiting

Recruiting A More Diverse Workforce

Developing and Using Application FormsApplicants education and experienceApplicants likelihood of successApplicants progress and growthUses of Application InformationApplicants employment stability

FIGURE 513Employment Application

Application Forms and the Law

K E Y T E R M Semployment or personnel planningtrend analysisratio analysisscatter plotcomputerized forecastqualifications inventoriespersonnel replacement chartsposition replacement cardrecruiting yield pyramidjob postingsuccession planningalternative staffingon demand recruiting services (ODRS)application form