Personnel Planning and

Recruiting

1
Learning Objective
 a. Student able to :
1. List the steps in the recruitment process.
2. Explain the main techniques used in employment planning and
forecasting.
3. Explain and give examples for the need for effective
Recruiting.
4. Name and describe the main internal sources of Candidates.
5. List and discuss the main outside sources of candidates.
6. Explain how to recruit a more diverse workforce

2
 A. The Recruitment Process
1. Decide what positions you’ll have to fill through
personnel 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.

3
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 5–1 4
B. 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? (3 basic forecast)
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates
5
Linking Employer’s Strategy to Plans

Figure 5–2 6
HRP and Strategic Planning
 Strategic Analysis
 What human resources are needed and what
are available?
 Strategic Formulation
 What is required and necessary in support of
human resources?
 Strategic Implementation
 How will the human resources be allocated?
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Identify people-related Define HR strategies, Implement HR processes,

Identify people-related Define HR strategies, Implement HR processes,
business issues objectives, and action plans policies, and practices
business issues objectives, and action plans policies, and practices

Source: Adapted from James W. Walker, “Integrating the Human Resource Function with the Presentation Slide 4–1
Business,” Human Resource Planning 14, no. 2 (1996): 59–77. Reprinted with permission. Figure 4.1
I. Forecasting Personnel Needs
 Trend analysis
 The 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 a causal
factor and the number of employees needed
(e.g sales volume and number of employees
needed).
 Assumes that the relationship between the
causal factor and staffing needs is constant
9
FIGURE 5–3 The scatter plot: 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.

5–10
Drawbacks to Scatter Plots
1. They focus on projections and historical relationships, and
assume that the firm’s existing structure and activities will
continue into the future.
2. They generally do not consider the impact the company’s
strategic initiatives may have on future staffing levels.
3. They tend to support compensation plans that reward
managers for managing ever-larger staffs, and will not
uncover managers who expand their staffs irrespective of
strategic needs.
4. They tend to “bake in” the nonproductive idea that
increases in staffs are inevitable.
5. They tend to validate and institutionalize existing planning
processes and ways of doing things, even in the face of
rapid change. 11
Using Computers to Forecast
Personnel Requirements

 Computerized forecasts
 The use software packages to determine of
future staff needs by projecting sales, volume
of production, and personnel required to
maintain a volume of output.
 Generates figures on average staff levels required to
meet product demands, as well as forecasts for direct
labor, indirect staff, and exempt staff.
 Typical metrics: direct labor hours required to
produce one unit of product (a measure of
productivity), and three sales projections—minimum,
maximum, and probable.
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 Whichever forecasting tool you use,
managerial judgment should play a big
role.
 It’s rare that any historical trend, ratio, or
relationship will simply continue.
 We will therefore have to modify the
forecast based on subjective factors—such
as the feeling that more employees will be
quitting—our believe will be important.

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 II. Forecasting the Supply of
Inside Candidates
Forecasting the supply: most firms start with inside candidate
 Qualifications inventories of current employees
 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.
.

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Management Replacement
Chart Showing
Development Needs of
Future Divisional Vice
President
Figure 5–415
Computerized Information Systems
 Human Resource Information System
(HRIS)
 Computerized inventory of information that
can be accessed to determine employees’
background, experience, and skills that may
include:
 Work experience codes
 Product or service knowledge
 Industry experience
 Formal education

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The Matter of Privacy of HR
Information
 The need to ensure the security of HR
information
 There is a lot of HR information to keep secure.
 Control of HR information can be established
through the use of access matrices that limit
users.

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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.
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 Internal Sources of Candidates:
Hiring from Within
 Disadvantages
 Advantages  Failed applicants
 Foreknowledge of become discontented
candidates’ strengths  Time wasted
and weaknesses interviewing inside
 More accurate view of candidates who will
candidate’s skills not be considered
 Candidates have a  Inbreeding of the
stronger commitment to status quo
the company
 Increases employee
morale
 Less training and
orientation required
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 Forecasting the Supply of
Outside Candidates
If there won’t be enough inside candidate or to go out for certain
other reasons.
 Factors impacting the supply of outside candidates
 General economic conditions
 Expected unemployment rate
 Sources of information
 Periodic forecasts in business publications
 Online economic projections
 Bureau of Labor Statistics

 Other federal agencies

In Malaysia- Labor office

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Outside Sources of Candidates
 Advertising
 The Media: selection of the best medium depends on the
positions for which the firm is recruiting.
 Internet with the help of applicant tracking system (pg

134)
 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.

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 Help
Wanted
Ad

Source: The Miami Herald, March 24, 2004, p. SF. Figure 5–722
Ineffective and Effective Web Ads

Figure 5–1023
Outside Sources of Candidates
(cont’d) :Employment agency
 Types of employment agencies:
 Public agencies operated by federal, state, or
local governments
 Agencies associated with nonprofit
organizations
 Privately owned agencies

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Outside Sources of Candidates
(cont’d)
 Reasons for using a private employment agency:
 When a firm doesn’t have an HR department and is not
geared to doing recruiting and screening.
 The firm has found it difficult in the past to generate a
pool of qualified applicants.
 The firm must fill a particular opening quickly.
 There is a perceived need to attract a greater number of
minority or female applicants.
 The firm wants to reach currently employed individuals,
who might feel more comfortable dealing with agencies
than with competing companies.
 The firm wants to cut down on the time it’s devoting to
recruiting.
25
Outside Sources of Candidates
(cont’d)
 Avoiding problems with employment agencies:
 Give the agency an accurate and complete job description.
 Make sure tests, application blanks, and interviews are part of
the agency’s selection process.
 Periodically review data on candidates accepted or rejected by
your firm, and by the agency. Check on the effectiveness and
fairness of the agency’s screening process.
 Screen the agency. Check with other managers or HR people
to find out which agencies have been the most effective at
filling the sorts of positions needed to be filled.
 Review the Internet and a few back issues of the Sunday
classified ads to discover the agencies that handle the
positions to be filled.

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Temp Agencies (also known as part-time or just –in –
time workers) and Alternative Staffing
 Benefits of Temps  Costs of Temps
 Paid only when working  Fees paid to temp
 More productive agencies
 No recruitment,  Lack of commitment to
screening, and payroll firm
administration costs

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Concerns of Temp Employees
 Treatment by employers in a dehumanizing, impersonal,
and ultimately discouraging way.
 Insecurity about their employment and pessimistic about
the future.
 Worry about their lack of insurance and pension benefits.
 Being misled about their job assignments and in particular
about whether temporary assignments were likely to
become full-time positions.

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 Guidelines for Using Temporary
Employees
1. Do not train your contingent workers.
2. Do not negotiate the pay rate of your contingent workers.
3. Do not coach or counsel a contingent worker on his/her job performance.
4. Do not negotiate a contingent worker’s vacations or personal time off.
5. Do not routinely include contingent workers in your company’s employee
functions.
6. Do not allow contingent workers to utilize facilities intended for
employees.
7. Do not let managers issue company business cards, nameplates, or
employee badges to contingent workers without HR and legal approval.
8. Do not let managers discuss harassment or discrimination issues with
contingent workers.
9. Do not discuss job opportunities and the contingent worker’s suitability for
them directly.
10. Do not terminate a contingent worker directly.

Source: Adapted from Bohner and Selasco, “Beware the Legal Risks of Hiring Temps,” Workforce, October 2000, p. 53.
Figure 5–829
Working with a Temp Agency
 Invoicing. Get a sample copy of the agency’s invoice. Make sure it
fits your company’s needs.
 Time sheets. With temps, the time sheet is not just a verification
of hours worked. Once the worker’s supervisor signs it, it’s usually
an agreement to pay the agency’s fees.
 Temp-to-perm policy. What is the policy if the client wants to hire
one of the agency’s temps as a permanent employee?
 Recruitment of and benefits for temp employees. Find out how the
agency plans to recruit what sorts of benefits it pays.
 Dress code. Specify the attire at each of your offices or plants.
 Equal employment opportunity statement. Get a statement from
the agency that it is not discriminating when filling temp orders.
 Job description information. Have a procedure whereby you can
ensure the agency understands the job to be filled and the sort of
person you want to fill it.
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Offshoring/Outsourcing White-
Collar and Other Jobs

 Specific issues in offshoring jobs abroad

 Political and military instability
 Likelihood of cultural misunderstandings
 Customers’ security and privacy concerns
 Foreign contracts, liability, and legal concerns
 Special training of foreign employees
 Costs associated with companies supplying
foreign workers
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Outside Sources of Candidates
(cont’d)
 Executive recruiters (headhunters)
 Special employment agencies retained by
employers to seek out top-management talent
for their clients.
 Contingent-based recruiters collect a fee for their
services when a successful hire is completed.
 Retained executive searchers are paid regardless of
the outcome of the recruitment process.
 Internet technology and specialization trends
are changing how candidates are attracted and
how searches are conducted.
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Guidelines for Choosing a
Recruiter
 Make sure the firm is capable of
conducting a thorough search.
 Meet the individual who will actually
handle your assignment.
 Ask how much the search firm charges.

33
Outside Sources of Candidates
(cont’d)
 College recruiting
 Recruiting goals
 To determine if the candidate is worthy of further
consideration
 To attract good candidates
 On-site visits
 Invitation letters
 Assigned hosts
 Information package
 Planned interviews
 Timely employment offer
 Follow-up
 Internships 34
Outside Sources of Candidates
(cont’d)
 Employee referrals
 Applicants who are referred to the organization
by current employees
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce
 Walk-ins
 Direct applicants who seek employment with or
without encouragement from other sources.
 Courteous treatment of any applicant is a good
business practice.
35
Outside Sources of Candidates
(cont’d)
 Recruiting via the Internet
 More firms and applicants are utilizing the
Internet in the job search process.
 Advantages of Internet recruiting
 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
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 Issues in Recruiting a More
Diverse Workforce
 Single parents
 Providing work schedule flexibility.
 Older workers
 Revising polices that make it difficult or unattractive for
older workers to remain employed.
 Recruiting minorities and women
 Understanding recruitment barriers.
 Formulating recruitment plans.

 Instituting specific day-to-day programs.

 The disabled Developing resources and policies to recruit
and integrate disable persons into the workforce.

37
C. Effective Recruiting
Mean finding or attracting applicants for the company’s open position.
Effective recruiting is increasingly important.
 External factors affecting recruiting:
 undersupply of workers
 Increasingly fewer “qualified” candidates
 Internal factors affecting recruiting:
 The consistency of the firm’s recruitment efforts with its strategic goals
(e.g decision to expend etc. need to think when and how to recruit)
( predictive workforce monitoring e.g Intel Corporation pg170)
 The available resources, types of jobs to be recruited and choice of
recruiting methods which one is more superior)
 Understand the law
 Line and staff cooperation. HRM in-charge with recruiting must know
exactly what the job entail with cooperation from line personnel.

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Measuring Recruiting Effectiveness
 What to measure and how to measure: not many
companies make formal attempt to evaluate their
recruitment effort.
 How many qualified applicants were attracted from each
recruitment source?
 Assessing both the quantity and the quality of the
applicants produced by a source.
 High performance recruiting
 Applying best-practices management techniques to recruiting.

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External Recruitment
Considerations
.
 Cost of Recruitment (per employee hired)

SC AC  AF  RB  NC

H H
SC = source cost
AC = advertising costs, total monthly expenditure (example: $28,000)
AF = agency fees, total for the month (example: $19,000)
RB = referral bonuses, total paid (example: $2,300)
NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)
H = total hires (example: 119)
Cost to hire one employee = $414
Outside Sources of Candidates
 Advertising
 The Media: selection of the best medium depends on the
positions for which the firm is recruiting.
 Internet with the help of applicant tracking system (pg

134)
 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.

41
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

5–42
Effective Recruiting (cont’d)
 Advantages of centralizing recruitment
 Strengthens employment brand
 Ease in applying strategic principles
 Reduces duplication of HR activities
 Reduces the cost of new HR technologies
 Builds teams of HR experts
 Provides for better measurement of HR
performance
 Allows for the sharing of applicant pools

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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

5–44
 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

Carefully review application forms to ensure that they comply with equal employment opportunity laws 5–45
in the proper use of questions that the applicant is asked to answer.
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