personnel planning and recruiting 5 chapter 5-1. 5–2 1.list the steps in the recruitment and...

Personnel Planning Personnel Planning and Recruitingand Recruiting5

Chapter 5-1

5–2

1.1. List the steps in the recruitment and selection process.List the steps in the recruitment and selection process.

2.2. Explain the main techniques used in employment Explain the main techniques used in employment planning and forecasting.planning and forecasting.

3.3. Explain and give examples for the need for effective Explain and give examples for the need for effective recruiting.recruiting.

4.4. Name and describe the main internal sources of Name and describe the main internal sources of candidates.candidates.

5.5. List and discuss the main outside sources of List and discuss the main outside sources of candidates.candidates.

6.6. Develop a help wanted ad.Develop a help wanted ad.

7.7. Explain how to recruit a more diverse workforce.Explain how to recruit a more diverse workforce.

LEARNING OUTCOMESLEARNING OUTCOMES

5–3

The Recruitment and Selection The Recruitment and Selection ProcessProcess1.1. Decide what Decide what positions to fill positions to fill through through personnel planning personnel planning

and forecastingand forecasting..

2.2. Build a Build a candidate pool candidate pool by by recruitingrecruiting internal or external internal or external candidates.candidates.

3.3. Have candidates complete Have candidates complete applicationapplication forms forms and and undergo initial undergo initial screeningscreening interviews. interviews.

4.4. Use Use selection toolsselection tools to identify viable candidates.to identify viable candidates.

5.5. Decide who to Decide who to make an offer make an offer to, by having the to, by having the supervisor and others supervisor and others interviewinterview the candidates. the candidates.

5–4

FIGURE 5–1 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

5–5

FIGURE 5–2 Linking Employer’s Strategy to Plans

5–6

Planning and ForecastingPlanning and Forecasting• Employment or Personnel PlanningEmployment or Personnel Planning

The process of deciding what positions The process of deciding what positions the firm will have to fill, and how to fill themthe firm will have to fill, and how to fill them..

• Succession PlanningSuccession Planning The process of deciding how to fill the The process of deciding how to fill the

company’s most important executive jobscompany’s most important executive jobs..

• What to Forecast?What to Forecast? Overall personnel needsOverall personnel needs

The supply of inside candidatesThe supply of inside candidates

The supply of outside candidatesThe supply of outside candidates

5–7

Forecasting Personnel NeedsForecasting Personnel Needs

Trend analysis

Ratio analysis

Forecasting Tools

Scatter plotting

The Manager will need to consider;The Manager will need to consider;

Projected turnoverProjected turnover

Decision to upgrade (or downgrade) product or servicesDecision to upgrade (or downgrade) product or services

Technological changesTechnological changes

Department’s financial resourcesDepartment’s financial resources

Markov Analysis

5–8


Trend analysis: Trend analysis:

Trend analysis means studying a firm’s employment Trend analysis means studying a firm’s employment

levels over a period of years to predict future needs.levels over a period of years to predict future needs.

Trend analysis can provide an initial estimate of future Trend analysis can provide an initial estimate of future

staffing needs, but employment levels rarely depend staffing needs, but employment levels rarely depend

just on the passage of time. just on the passage of time.

Other factors (like changes in sales volume and Other factors (like changes in sales volume and

productivity) also effect staffing needs.productivity) also effect staffing needs.

5–9


Ratio analysis: Ratio analysis:

Another approach ratio analysis, means making forecasts based Another approach ratio analysis, means making forecasts based

on the ratio between on the ratio between

(1) some causal factor, (1) some causal factor, like sales volumelike sales volume,,

(2) number of employees required(2) number of employees required, like number of salespeople., like number of salespeople.

For example,For example, suppose a salesperson traditionally generates suppose a salesperson traditionally generates

$500.000 in sales. If the sales revenue to sales people ratio $500.000 in sales. If the sales revenue to sales people ratio

remains the same, you would require six new salespeople next remains the same, you would require six new salespeople next

year (each of whom produces an extra $500.000) to produce a year (each of whom produces an extra $500.000) to produce a

hoped-for extra $3 million in sales.hoped-for extra $3 million in sales.

5–10

FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses

Note: After fitting the line, you can project how many employees are needed, given your projected volume.

Hospital Size(Number of Beds)

Number of Registered

Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

5–11

Drawbacks to Traditional Drawbacks to Traditional Forecasting TechniquesForecasting Techniques

• They focus on projections and historical They focus on projections and historical relationships.relationships.

• They They tend to tend to support compensation plans that support compensation plans that reward managers for managing ever-larger staffs.reward managers for managing ever-larger staffs.

• They validate and institutionalize present planning They validate and institutionalize present planning processes and the usual ways of doing things.processes and the usual ways of doing things.

5–12

Markov Analysis: Markov Analysis:

Markov analysis involves creating a matrix that shows the Markov analysis involves creating a matrix that shows the

probabilities those employees in a chain of feeder probabilities those employees in a chain of feeder

positions for a key job. positions for a key job. “Feeder” “Feeder” positions are those to positions are those to

which a job incumbent may likely be promoted. which a job incumbent may likely be promoted.

Engineering supervisorEngineering supervisor

Senior engineer Senior engineer

EngineerEngineer

Junior engineer Junior engineer


5–13

Using Computers to Forecast Using Computers to Forecast Personnel RequirementsPersonnel Requirements• Computerized ForecastsComputerized Forecasts

Software that estimates future staffing needs by:Software that estimates future staffing needs by:

Projecting sales, volume of production, and personnel Projecting sales, volume of production, and personnel required to maintain different volumes of output.required to maintain different volumes of output.

Forecasting staffing levels for direct labor, indirect staff.Forecasting staffing levels for direct labor, indirect staff.

Creating metrics for direct labor hours and three sales Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and projection scenarios—minimum, maximum, and probable.probable.

5–14

Forecasting the Supply Forecasting the Supply of Inside Candidatesof Inside Candidates

Manual systems and replacement charts

Computerized skills inventories

Qualification Inventories

5–15

FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

5–16

Forecasting the Supply of Inside CandidatesForecasting the Supply of Inside Candidates

Computerized Computerized Skills InventoriesSkills Inventories

They They are used to track the qualifications of hundreds or are used to track the qualifications of hundreds or thousands of employees. thousands of employees.

The system can provide managers with a listing of The system can provide managers with a listing of candidates with specified qualifications after scanning the candidates with specified qualifications after scanning the database. database.

Computerized skills inventory data typically include Computerized skills inventory data typically include work experience codes; product knowledge, the work experience codes; product knowledge, the employee’s level of familiarity with the employer’s product employee’s level of familiarity with the employer’s product line or services; the person’s industry experiences, since line or services; the person’s industry experiences, since for some positions work in related industries is very useful; for some positions work in related industries is very useful; and formal education.and formal education.

5–17

The Matter of PrivacyThe Matter of Privacy

• Ensuring the Security of HR InformationEnsuring the Security of HR Information

Control of HR information through access matricesControl of HR information through access matrices

Access to records and employee privacyAccess to records and employee privacy

• Legal ConsiderationsLegal Considerations

The Federal Privacy Act of 1974The Federal Privacy Act of 1974

New York Personal Privacy Act of 1985New York Personal Privacy Act of 1985

HIPAAHIPAA

Americans with Disabilities ActAmericans with Disabilities Act

5–18

Forecasting Outside Candidate Forecasting Outside Candidate SupplySupply• Factors In Supply of Outside CandidatesFactors In Supply of Outside Candidates

General economic conditionsGeneral economic conditions

Expected unemployment rateExpected unemployment rate

• Sources of InformationSources of Information Periodic forecasts in business publicationsPeriodic forecasts in business publications

Online economic projectionsOnline economic projections

U.S. Congressional Budget Office (CBO)U.S. Congressional Budget Office (CBO)

U.S. Department of Labor’s O*NETU.S. Department of Labor’s O*NET™™

Bureau of Labor Statistics (BLS)Bureau of Labor Statistics (BLS)

Other federal agencies and private sourcesOther federal agencies and private sources

Forecasting the Supply of Forecasting the Supply of

Outside CandidatesOutside Candidates

• Talent Talent management management

• Action planning for Action planning for labor supply and labor supply and demanddemand

• The recruiting The recruiting yield pyramidyield pyramid

Chapter 5-19

5–20

FIGURE 5–6 Recruiting Yield Pyramid

16% ● ● ● ● ● ●

75% ● ● ● ●

67% ● ● ●

50% ● ●

●

5–21

The Need for Effective RecruitingThe Need for Effective Recruiting

Effectiveness of chosen recruiting

methods

Effects of nonrecruitment

issues and policies

Recruiting Challenges

Legal requirements

associated with employment laws

5–22

Organizing How You RecruitOrganizing How You Recruit

Facilitates strategic priorities

Reduces duplication of HR

activities

Advantages of Centralizing Recruiting Efforts

Fosters effective use of online

recruiting

5–23

Internal Sources of CandidatesInternal Sources of Candidates

• Foreknowledge of candidates’ strengths and weaknesses

• More accurate view of candidate’s skills

• Candidates have a stronger commitment to the company

• Increases employee morale

• Less training and orientation required

• Failed applicants become discontented

• Time wasted interviewing inside candidates who will not be considered

• Inbreeding strengthens tendency to maintain the status quo

Advantages Disadvantages

5–24

Finding Internal CandidatesFinding Internal Candidates

Posting open job positions

Rehiring former employees

Hiring-from-Within Tasks

Succession planning (HRIS)

5–25


• Job posting Job posting

To be effective, promotion from within requires using job To be effective, promotion from within requires using job posting, personnel records, and skill banks. posting, personnel records, and skill banks.

Job postingJob posting means publicizing the open job to means publicizing the open job to employees (usually by literally posting it on company employees (usually by literally posting it on company internets or bulletin boards). internets or bulletin boards).

These list the job’s attributes, These list the job’s attributes, like qualifications, like qualifications, supervisor, work schedule, and pay rate. supervisor, work schedule, and pay rate.

Qualifications inventory tools also play a role.Qualifications inventory tools also play a role.

5–26


• RehiringRehiring

Rehiring former employees has its pros and cons. Rehiring former employees has its pros and cons.

On the On the positive sidepositive side, they are known quantities and are , they are known quantities and are

already familiar with the organization’s culture, style, and already familiar with the organization’s culture, style, and

ways of doing things. ways of doing things.

But former employees may return with But former employees may return with negative negative

attitudesattitudes. Current employees may perceive that the way . Current employees may perceive that the way

to get ahead is to leave and come back.to get ahead is to leave and come back.

5–27


• Succession PlanningSuccession Planning

Planning ensures a suitable supply of successors for senior or key jobs. Planning ensures a suitable supply of successors for senior or key jobs.

It can includeIt can include::

Determining the projected need for managers and professionals Determining the projected need for managers and professionals

Auditing current executive talent Auditing current executive talent

Planning individual career paths based on objective estimatesPlanning individual career paths based on objective estimates

Career counseling based on the needs of the individual and the firm; Career counseling based on the needs of the individual and the firm;

Accelerated promotions, Accelerated promotions,

Performance-related training and development Performance-related training and development

Planned strategic recruitment to fill short-term needsPlanned strategic recruitment to fill short-term needs

Actually filling the positions.Actually filling the positions.

5–28

Outside Sources of CandidatesOutside Sources of Candidates

1

2

3

4

5

Advertising

Recruiting via the Internet

Employment Agencies

Temp Agencies and Alternative Staffing

Offshoring/Outsourcing

6

7

8

9

On Demand Recruiting Services (ODRS)

Executive Recruiters

College Recruiting

Referrals and Walk-ins

Locating Outside Candidates

5–29

FIGURE 5–7 Some Top Online Recruiting Job Boards

5–30

Recruiting via the InternetRecruiting via the Internet• AdvantagesAdvantages

Cost-effective way to publicize job openingsCost-effective way to publicize job openings

More applicants attracted over a longer periodMore applicants attracted over a longer period

Immediate applicant responsesImmediate applicant responses

Online prescreening of applicantsOnline prescreening of applicants

Links to other job search sitesLinks to other job search sites

Automation of applicant tracking and evaluationAutomation of applicant tracking and evaluation

• DisadvantagesDisadvantages Exclusion of older and minority workersExclusion of older and minority workers

Unqualified applicants overload the systemUnqualified applicants overload the system

Personal information privacy concerns of applicantsPersonal information privacy concerns of applicants

5–31

Advertising for Outside CandidatesAdvertising for Outside Candidates• The Media ChoiceThe Media Choice

Selection of the best medium depends on the positions for which Selection of the best medium depends on the positions for which the firm is recruiting.the firm is recruiting.

Newspapers: local and specific labor marketsNewspapers: local and specific labor markets

Trade and professional journals: specialized employeesTrade and professional journals: specialized employees

Internet job sites: global labor marketsInternet job sites: global labor markets

• Constructing (Writing) Effective AdsConstructing (Writing) Effective Ads Create attention, interest, desire, and action (AIDA).Create attention, interest, desire, and action (AIDA).

Create a positive impression (image) of the firm.Create a positive impression (image) of the firm.

5–32

FIGURE 5–9 Help Wanted Ad that Draws Attention

• Attention

• Interest

• Desire

• Action

5–33

Employment AgenciesEmployment Agencies

Public agencies

Private agencies

Types of Employment

Agencies

Nonprofit agencies

5–34

Why Use a Private Employment Why Use a Private Employment Agency?Agency?• No HR department: firm lacks recruiting and screening No HR department: firm lacks recruiting and screening

capabilities to attract a pool of qualified applicants.capabilities to attract a pool of qualified applicants.

• To fill a particular opening quickly.To fill a particular opening quickly.

• To attract more minority or female applicants.To attract more minority or female applicants.

• To reach currently employed individuals who are more To reach currently employed individuals who are more comfortable dealing with agencies than competing comfortable dealing with agencies than competing companies.companies.

• To reduce internal time devoted to recruiting.To reduce internal time devoted to recruiting.

5–35

Avoiding Problems with Avoiding Problems with Employment AgenciesEmployment Agencies

• Give agency an accurate and complete job description.Give agency an accurate and complete job description.

• Make sure tests, application blanks, and interviews are Make sure tests, application blanks, and interviews are part of the agency’s selection process.part of the agency’s selection process.

• Review candidates accepted or rejected by your firm or Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s the agency for effectiveness and fairness of agency’s screening process.screening process.

• Screen agency for effectiveness in filling positions.Screen agency for effectiveness in filling positions.

• Supplement the agency’s reference checking by Supplement the agency’s reference checking by checking the final candidate’s references yourself.checking the final candidate’s references yourself.

5–36

Temp Agencies and Alternative Temp Agencies and Alternative StaffingStaffing

• Pros and consPros and cons

• What supervisors should know about temporary What supervisors should know about temporary employees’ concernsemployees’ concerns

• Legal guidelinesLegal guidelines

• Alternative staffingAlternative staffing

5–37

Offshoring and Outsourcing Offshoring and Outsourcing JobsJobs

Political and military instability

Cultural misunderstandin

gs

Customers’ securing and

privacy concerns

Foreign contracts, liability, and legal

concerns

Special training of foreign

employees

Costs of foreign workers

Resentment and anxiety of U.S.

employees/unions

Outsourcing/ Offshoring

Issues

5–38

Executive RecruitmentExecutive Recruitment and and On-Demand Recruiting On-Demand Recruiting Services Services • Executive Recruiters (Headhunters)Executive Recruiters (Headhunters)

Contingent-based recruitersContingent-based recruiters

Retained executive searchersRetained executive searchers

Internet technology and specialization trendsInternet technology and specialization trends

• On-Demand Recruiting Services (ODRS)On-Demand Recruiting Services (ODRS)

Provide short-term specialized recruiting to support Provide short-term specialized recruiting to support specific projects without the expense of retaining specific projects without the expense of retaining traditional search firms.traditional search firms.

..

5–39

College RecruitingCollege Recruiting

• On-campus recruiting goalsOn-campus recruiting goals To determine if the candidate is To determine if the candidate is

worthy of further considerationworthy of further consideration

To attract good candidatesTo attract good candidates

• On-site visitsOn-site visits Invitation lettersInvitation letters

Assigned hostsAssigned hosts

InformationInformation packagespackages

Planned interviewsPlanned interviews

Timely employment offerTimely employment offer

Follow-upFollow-up

• InternshipsInternships

5–40

Employee ReferralsEmployee Referrals, , Walk-insWalk-ins and and TelecommutersTelecommuters

• Employee ReferralsEmployee Referrals Referring employees become stakeholders.Referring employees become stakeholders. Referral is a cost-effective recruitment program.Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce.Referral can speed up diversifying the workforce. Relying on referrals may be discriminatory.Relying on referrals may be discriminatory.

• Walk-insWalk-ins Seek employment through a personal direct approach Seek employment through a personal direct approach

to the employer.to the employer. Courteous treatment of any applicant is a good Courteous treatment of any applicant is a good

business practice.business practice.

• Telecommuters Telecommuters These individuals work from home. These individuals work from home.

5–41

FIGURE 5–11 Relative Recruiting Source Effectiveness Based on New Hires

5–42

Recruiting A More Diverse Recruiting A More Diverse WorkforceWorkforce

Single parents

Older workers

Welfare-to-work

Minorities and women

The disabled

Developing and Using Developing and Using Application FormsApplication Forms

5–43

• Purpose of Applications FormsPurpose of Applications Forms

• Application GuidelinesApplication Guidelines

• Application Forms and EEO LawApplication Forms and EEO Law

• Using Application Forms to Predict Job PerformanceUsing Application Forms to Predict Job Performance

• Mandatory ArbitrationMandatory Arbitration

5–44

PrivatePrivate Employment AgenciesEmployment Agencies

5–45

K E Y T E R M S

employment (or personnel) planning

trend analysis

ratio analysis

scatter plot

qualifications (or skills) inventories

personnel replacement charts

position replacement card

employee recruiting

recruiting yield pyramid

job posting

succession planning

applicant tracking systems

alternative staffing

on-demand recruiting services (ODRS)

college recruiting

application form

personnel planning and recruiting 5 chapter 5-1. 5–2 1.list the steps in the recruitment and...

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