HUMAN RESOURCE MANAGEMENT
Chapter 3
Personnel Planning
and Recruiting
The Recruitment and Selection Process
1. Decide what positions to fill through personnel
planning and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.
FIGURE 3–1 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.
FIGURE 3–2 Linking Employer’s Strategy to Plans
Planning and Forecasting
• Employment or Personnel 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
Forecasting Personnel Needs
Forecasting Tools
Trend analysis Ratio analysis Scatter plotting
FIGURE 3–3 Determining the Relationship Between
Hospital Size and Number of Nurses
Hospital Size Number of
(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Note: After fitting the line,
you can project how many
employees are needed,
given your projected volume.
Drawbacks to Traditional Forecasting
Techniques
• They 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
Requirements
• Computerized Forecasts
➢ Software 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 scenarios—minimum, maximum, and probable.
Forecasting the Supply of
Inside Candidates
Qualification
Inventories
Manual systems and Computerized skills
replacement charts inventories
FIGURE 3–4 Management Replacement Chart Showing Development
Needs of Potential Future Divisional Vice Presidents
The Matter of Privacy
• Ensuring the Security of HR Information
➢ Control of HR information through access matrices
➢ Access to records and employee privacy
• Legal Considerations
➢ The Federal Privacy Act of 1974
➢ New York Personal Privacy Act of 1985
➢ HIPAA
➢ Americans with Disabilities Act
Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
➢ General economic conditions
➢ Expected unemployment rate
• Sources of Information
➢ Periodic forecasts in business publications
➢ Online economic projections
❖ U.S. Congressional Budget Office (CBO)
❖ U.S. Department of Labor’s O*NET™
❖ Bureau of Labor Statistics (BLS)
❖ Other federal agencies and private sources
The Need for Effective Recruiting
Recruiting Challenges
Effectiveness of Effects of Legal requirements
chosen recruiting nonrecruitment associated with
methods issues and policies employment laws
Effective Recruiting
• External Factors Affecting Recruiting
➢ Supply of workers
➢ Outsourcing of white-collar jobs
➢ Fewer “qualified” candidates
• Other Factors Affecting Recruiting Success
➢ Consistency of recruitment with strategic goals
➢ Types of jobs recruited and recruiting methods
➢ Nonrecruitment HR issues and policies
➢ Successful prescreening of applicants
➢ Public image of the firm
➢ Employment laws
Organizing How You Recruit
Advantages of Centralizing Recruiting Efforts
Facilitates Reduces Ensures Fosters effective
strategic duplication of compliance with use of online
priorities HR activities EEO laws recruiting
Measuring Recruiting Effectiveness
Evaluating Recruiting
Effectiveness
What to How to
measure measure
FIGURE 3–6 Recruiting Yield Pyramid
●
50% ● ●
67% ● ● ●
75% ● ● ● ●
16% ● ● ● ● ● ●
Internal Sources of Candidates
Advantages Disadvantages
• Foreknowledge of • Failed applicants become
candidates’ strengths discontented
and weaknesses
• Time wasted interviewing
• More accurate view of inside candidates who will
candidate’s skills not be considered
• Candidates have a stronger • Inbreeding strengthens
commitment tendency to maintain the
to the company status quo
• Increases employee
morale
• Less training and
orientation required
Finding Internal Candidates
Hiring-from-Within Tasks
Posting open Rehiring former Succession
job positions employees planning (HRIS)
Outside Sources of Candidates
Locating Outside Candidates
1 Recruiting via the Internet 6 Executive Recruiters
On Demand Recruiting
2 Advertising 7
Services (ODRS)
3 Employment Agencies 8 College Recruiting
Temp Agencies and Alternative
4 9 Referrals and Walk-ins
Staffing
5 Offshoring/Outsourcing
FIGURE 3–7 Some Top Online Recruiting Job Boards
Recruiting via the Internet
• Advantages
❖ Cost-effective way to publicize job openings
❖ More applicants attracted over a longer period
❖ Immediate applicant responses
❖ Online prescreening of applicants
❖ Links to other job search sites
❖ Automation of applicant tracking and evaluation
• Disadvantages
❖ Exclusion of older and minority workers
❖ Unqualified applicants overload the system
❖ Personal information privacy concerns of applicants
FIGURE 3–8 Ineffective and Effective Web Ads
Advertising for Outside Candidates
• The Media Choice
➢ 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: specialized employees
❖ Internet job sites: global labor markets
• Constructing (Writing) Effective Ads
➢ Create attention, interest, desire, and action (AIDA).
➢ Create a positive impression (image) of the firm.
FIGURE 3–9 Help Wanted Ad that Draws Attention
Employment Agencies
Types of Employment
Agencies
Public Nonprofit Private
agencies agencies agencies
Why Use a Private Employment Agency?
• No 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 than competing
companies.
• To reduce internal time devoted to recruiting.
Avoiding Problems with
Employment Agencies
• Give agency an accurate and complete job description.
• Make sure tests, application blanks, and interviews are
part of the agency’s selection process.
• Review candidates accepted or rejected by your firm or
the agency for effectiveness and fairness of agency’s
screening process.
• Screen agency for effectiveness in filling positions.
• Supplement the agency’s reference checking by
checking the final candidate’s references yourself.
Specialized Staffing and Recruiting
• Alternative Staffing
➢ In-house contingent (casual, seasonal, or temporary) workers
employed by the company, but on an explicit short-term basis.
➢ Contract technical employees supplied for long-term projects
under contract from outside technical services firms.
• On-Demand Recruiting Services (ODRS)
➢ Provide short-term specialized recruiting to support specific
projects without the expense of retaining traditional search firms.
Temp Agencies and Alternative Staffing
• Benefits of Temps
➢ Increased productivity—paid only when working
➢ Allows “trial run” for prospective employees
➢ No recruitment, screening, and payroll administration costs
• Costs of Temps
➢ Increased labor costs due to fees paid to temp agencies
➢ Temp employees’ lack of commitment to the firm
Working with a Temp Agency
• Invoicing. Make sure the agency’s invoice fits your firm’s needs.
• Time sheets. The time sheet is a verification of hours worked and an
agreement to pay the agency’s 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 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.
Concerns of Temp Employees
• Dehumanizing, 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 to return to the full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.
FIGURE 3–10 Ten Things Managers Should Avoid When
Supervising Temporary Employees
Do Not:
1. Train your contingent workers. Ask their staffing agency to handle training.
2. Negotiate the pay rate of your contingent workers. The agency should set pay.
3. Coach or counsel a contingent worker on his/her job performance. Instead, call
the person’s agency and request that it do so.
4. Negotiate a contingent worker’s vacations or personal time off. Direct the worker
to his or her agency.
5. Routinely include contingent workers in your company’s employee functions.
6. Allow contingent workers to utilize facilities intended for employees.
7. Let managers issue company business cards, nameplates, or employee badges
to contingent workers without HR and legal approval.
8. Let managers discuss harassment or discrimination issues with contingent
workers.
9. Discuss job opportunities and the contingent worker’s suitability for them
directly. Instead, refer the worker to publicly available job postings.
10. Terminate a contingent worker directly. Contact the agency to do so.
Offshoring and Outsourcing Jobs
Political and military
instability
Resentment and
Cultural
anxiety of U.S.
misunderstandings
employees/unions
Outsourcing/
Offshoring
Customers’ securing
Costs of foreign Issues and privacy
workers
concerns
Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns
Executive Recruitment
• Executive Recruiters (Headhunters)
➢ Contingent-based recruiters
➢ Retained executive searchers
➢ Internet technology and specialization trends
• Guidelines for Choosing a Recruiter
1. Make sure the firm is capable of conducting a thorough
search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person
you need for the position.
5. Never rely solely on the recruiter to do reference checking.
College Recruiting
• On-campus recruiting goals • On-site visits
➢ To determine if the candidate is ➢ Invitation letters
worthy of further consideration ➢ Assigned hosts
➢ To attract good candidates ➢ Information packages
➢ Planned interviews
➢ Timely employment offer
➢ Follow-up
• Internships
Sources of Outside Applicants
Other Sources of Outside Applicants
Employee Military
Walk-ins Telecommuters
referrals personnel
Employee Referrals and Walk-ins
• Employee Referrals
➢ Referring employees become stakeholders.
➢ Referral is a cost-effective recruitment program.
➢ Referral can speed up diversifying the workforce.
➢ Relying on referrals may be discriminatory.
• Walk-ins
➢ Seek employment through a personal direct approach to the
employer.
➢ Courteous treatment of any applicant is a good business
practice.
FIGURE 3–11 Relative Recruiting Source Effectiveness Based on New Hires
TABLE 3–1 Recruitment Research Findings: Practical Applications for Managers
Recruitment Research Finding Practical Applications for Managers
The recruitment source affects the characteristics Use sources such as referrals from current
of applicants you attract. employees that yield applicants more likely to be
better performers.
Recruitment materials have a more positive Provide applicants with information on aspects
impact if they contain more specific information. of the job that are important to them, such as
salary, location, and diversity.
Organizational image influences applicants’ initial Ensure all communications regarding an
reactions. organization provide a positive message
regarding the attractiveness of the organization
as a place to work.
Applicants with a greater number of job Ensure initial recruitment activities (e.g., Web
opportunities are more attentive to early site, brochure, on-campus recruiting) are
recruitment activities. attractive to candidates.
Realistic job previews that highlight both the Provide applicants with a realistic picture of the
advantages and the disadvantages of the job job and organization, not just the positives.
reduce subsequent turnover.
Applicants will infer (perhaps erroneous) Provide clear, specific, and complete information
information about the job and company if the in recruitment materials so that applicants do not
information is not clearly provided by the make erroneous inferences about the job or the
company. employer.
Recruiter warmth has a large and positive effect Choose individuals who have contact with
on applicants’ decisions to accept a job. applicants for their interpersonal skills.
Improving Productivity Through HRIS:
An Integrated Approach to Recruiting
Elements of an HRIS
Requisition
Recruiting Screening Hiring
management
solution services management
system
Recruiting A More Diverse Workforce
Single parents
The disabled Older workers
Minorities and
Welfare-to-work
women
Developing and Using Application Forms
Uses of Application Form
Information
Applicant’s Applicant’s Applicant’s Applicant’s
education and prior progress employment likelihood of
experience and growth stability success
FIGURE 3–12 FBI Employment Application
Application Forms and the Law
Educational
achievements
Housing Arrest
arrangements record
Areas of
Personal
Marital Information Notification in case
status of emergency
Physical Membership in
handicaps organizations
Two-Stage Process
Is Applicant Yes Conditional
Qualified? Job Offer
Review application Make conditional job offer
information, personal contingent on meeting all
interview, testing, and “second stage” conditions
do background check
FIGURE 3–13 Sample Acceptable Questions Once Conditional Offer Is Made
1. Do you have any responsibilities that conflict with the job vacancy?
2. How long have you lived at your present address?
3. Do you have any relatives working for this company?
4. Do you have any physical defects that would prevent you from
performing certain jobs where, to your knowledge, vacancies exist?
5. Do you have adequate means of transportation to get to work?
6. Have you had any major illness (treated or untreated) in the past 10
years?
7. 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.)
8. What is your educational background? (The information required here
would depend on the job-related requirements of the position.)