Human Research Paper

C H A P T E R 3 Diversity and Multiculturalism HIRING MULTICULTURAL On a Tuesday afternoon, as you are getting ready to go to lunch, you receive an e-mail from your human resources

(HR) manager about the need to hire a new project manager, and there is a $500 bonus for referring a friend who

successfully joins the company. Immediately, you e-mail your friend Daniel, because you know he would be great

for the job. Daniel is eventually hired for the position, and a few months later a new e-mail goes out asking for

friend recommendations for a new position. You and Daniel both recommend someone, and eventually that per-

son gets hired. Over the next year, hiring notices are not advertised externally as the organization has had good

luck with this hiring practice. Seems like a great way to recruit new people, doesn’t it? It can be, but it also can be a

detriment to the diversity and multiculturalism of the workplace. How, you might wonder?

While not true across the board, people have a tendency to spend time with people who are like themselves,

in race, income level, and other aspects of diversity such as sexual orientation. In fact, according to the National In-

stitute of Child Health and Human Development and a study published in the American Journal of Sociology, it is

much more likely that someone will name a person in their own race as a friend than someone of a different race.[1]

Likewise, even from a young age, people tend to choose friends who are of the same race. As a result, when you re-

commend Daniel for a position, it is highly likely that Daniel is similar, from a diversity perspective, to you. Then,

when Daniel recommends someone for a job, it is highly likely that he, too, is recommending someone with similar

characteristics as you both. This obviously creates a lack of multicultural diversity in the workplace, which can mean

lost profits for companies.

HRM and Multiculturalism

The author introduces Chapter 3 on diversity and multiculturalism.

View the video online at: http://app.wistia.com/embed/medias/283df66b1a

diversity

The real or perceived differences between individuals.

multiculturalism

Looks at power and privilege differences in society.

power and privilege

A system of advantages based on race, gender, sexual orientation, and other components of diversity.

1. DIVERSITY AND MULTICULTURALISM

L E A R N I N G O B J E C T I V E S

1. Define, explain, and identify your own power and privilege. 2. Provide reasoning as to why diversity is important to maintain profitability.

Many people use the terms diversity and multiculturalism interchangeably, when in fact, there are ma- jor differences between the two. Diversity is defined as the differences between people. These differ- ences can include race, gender, sexual orientation, religion, background, socioeconomic status, and much more. Diversity, when talking about it from the human resource management (HRM) perspect- ive, tends to focus more on a set of policies to meet compliance standards. The Equal Employment Op- portunity Commission (EEOC) oversees complaints in this area. We discuss the EEOC in Section 3 and in greater detail in Chapter 4 and Chapter 5.

Multiculturalism goes deeper than diversity by focusing on inclusiveness, understanding, and respect, and also by looking at unequal power in society. In a report called “The 2007 State of Work- place Diversity Management Report,”[2] most HR managers said that diversity in the workplace is

1. not well defined or understood at work, 2. focuses too much on compliance, and 3. places too much emphasis on gender and ethnicity.

This chapter focuses on the advantages of a diverse workplace and discusses multiculturalism at work and the compliance aspect of diversity.

1.1 Power and Privilege As defined in this chapter, diversity focuses on the “otherness” or differences between individuals and has a goal of making sure, through policies, that everyone is treated the same. While this is the legal and the right thing to do, multiculturalism looks at a system of advantages based on race, gender, and sexual orientation called power and privilege. In this system, the advantages are based on a system in which one race, gender, and sexual orientation is predominant in setting societal rules and norms.

The interesting thing about power and privilege is that if you have it, you may not initially recog- nize it, which is why we can call it invisible privilege. Here are some examples:

1. Race privilege. Let’s say you (a Caucasian) and your friend (an African American) are having dinner together, and when the bill comes, the server gives the check to you. While this may not seem like a big issue, it assumes you (being Caucasian) are the person paying for the meal. This type of invisible privilege may not seem to matter if you have that privilege, but if you don’t, it can be infuriating.

2. Social class privilege. When Hurricane Katrina hit New Orleans in 2005, many people from outside the storm area wondered why so many people stayed in the city, not even thinking about the fact that some people couldn’t afford the gas to put in their car to leave the city.

3. Gender privilege. This refers to privileges one gender has over another—for example, the assumption that a female will change her name to her husband’s when they get married.

4. Sexual orientation privilege. If I am heterosexual, I can put a picture of my partner on my desk without worrying about what others think. I can talk about our vacations together or experiences we’ve had without worrying what someone might think about my relationship. This is not the case for many gay, lesbian, and transgendered people and their partners.

Oftentimes the privilege we have is considered invisible, because it can be hard to recognize one’s own privilege based on race, gender, or social class. Many people utilize the color-blind approach, which says, “I treat everyone the same” or “I don’t see people’s skin color.” In this case, the person is showing invisible privilege and thus ignoring the privileges he or she receives because of race, gender, or social class. While it appears this approach would value all people equally, it doesn’t, because people’s differ- ent needs, assets, and perspectives are disregarded by not acknowledging differences.[3]

Another important aspect of power and privilege is the fact that we may have privilege in one area and not another. For example, I am a Caucasian female, which certainly gives me race privilege but not gender privilege. Important to note here is that the idea of power and privilege is not about “white male

46 HUMAN RESOURCE MANAGEMENT

FIGURE 3.1

While there may be no “money fairy,” diversity has proven to result in higher profits for companies.

© Thinkstock

bashing” but understanding our own stereotypes and systems of advantage so we can be more inclusive with our coworkers, employees, and managers.

So what does this all mean in relation to HRM? It means we can combine the understanding of certain systems that allow for power and privilege, and by understanding we may be able to eliminate or at least minimize these issues. Besides this, one of the best things we can do for our organizations is to have a diverse workforce, with people from a variety of perspectives. This diversity leads to profitab- ility and the ability to better serve customers. We discuss the advantages of diversity in Section 1.

Human Resource Recall

Take this week to examine your own power and privilege as a result of gender, race, or social class. Notice how people treat you because of your skin color, gender, or how you dress and talk.

Stereotypes and the Effect on Privilege

This video discusses some racial stereotypes and white privilege through “on the street” interviews.

Please view this video at http://www.youtube.com/watch?v=Q1wztUJ4VVE.

1.2 Why Diversity and Multiculturalism? When many people look at diversity and multiculturalism, they think that someone’s gender, skin col- or, or social class shouldn’t matter. So diversity can help us with policies to prevent discrimination, while multiculturalism can help us gain a deeper understanding of the differences between people. Hopefully, over time, rather than look at diversity as attaining numerical goals or complying with the law, we can combine the concepts to create better workplaces. Although many books discuss laws relat- ing to diversity, not many actually describe why diversity is necessary in the workplace. Here are a few main reasons:

1. It is the law. 2. We can better serve customers by offering a broader range of services, such as being able to speak

a variety of languages and understanding other cultures. 3. We can better communicate with one another (saving time and money) and customers. 4. With a multicultural perspective, we can create better ideas and solutions.

Fortune 500 Focus

Hilton is one of the most recognized names in the hotel industry. Hilton employs 130,000 people in 3,750 ho- tels in 84 countries. The hotel chain, with some locations franchised, focuses on diversity and inclusion as part of its operations. First, it has a director of global diversity and inclusion, who plays a key role in executing the Hilton global diversity and inclusion efforts, which are focused on culture, talent, workplace, and marketplace diversity strategies. Each Hilton brand must establish its own diversity performance goals and initiatives, which are monitored by the diversity council. The diversity council is made up of the company board of directors, the CEO, and vice president of human resources. At any given time, Hilton has thirty or more diversity initiatives in place,[4] which are managed by the diversity council.

Hilton has created several diversity programs within the communities in which the hotels operate. For ex- ample, Hilton was one of the first hotel chains to develop an outreach program to educate minority and fe- male entrepreneurs for franchise investments. One part of the program includes invitation-only seminars that discuss what it takes to be a successful hotel owner. Hilton says its diversity seminars are driven by the fact that it wants employees to reflect the diversity of the customers.

In addition to the outreach program, Hilton partners with historically black colleges and universities for recruit- ing, which creates an effective tie to jobs once students graduate. It has developed a supplier tracking system, so it knows the total number of supplier payments made and how many of those suppliers are female or minorities. William A. Holland, the vice president for workforce planning and analysis says, “It takes leadership to make diversity work, and our diversity initiative comes from the highest levels of our organization.”[5]

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 47

Promoting a multicultural work environment isn’t just the law. Through a diverse work environment and multicultural understanding, organizations can attain greater profitability. A study by Cedric Her- ring called Does Diversity Pay?[6] reveals that diversity does, in fact, pay. The study found those busi- nesses with greater racial diversity reporter higher sales revenues, more customers, larger market shares, and greater relative profits than those with more homogeneous workforces. Other research on the topic by Scott Page, the author of The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies[7] ended up with similar results. Page found that people from varied back- grounds are more effective at working together than those who are from similar backgrounds, because they offer different approaches and perspectives in the development of solutions. Often people believe that diversity is about checking a box or only providing window dressing to gain more customers, but this isn’t the case. As put by Eric Foss, chairperson and CEO of Pepsi Beverages Company, “It’s not a fad. It’s not an idea of the month. It’s central and it’s linked very directly to business strategy.”[8] A study by the late Roy Adler of Pepperdine University shows similar results. His 19-year study of 215 Fortune 500 companies shows a strong correlation between female executives and high profitability.[9] Another study, conducted by Project Equality, found that companies that rated low on equal opportun- ity issues earned 7.9 percent profit, while those who rated highest with more equal opportunities resul- ted in 18.3 percent profit.[10] These numbers show that diversity and multiculturalism certainly is not a fad, but a way of doing business that better serves customers and results in higher profits.

As managers, we need to recognize this and develop policies that recognize not only the import- ance of diversity but the importance of nurturing multicultural understanding in the workplace. Many employees, however, may be resistant to a discussion on diversity and multiculturalism. Much of this may have to do with their own power and privilege, but some resistance may be related to the discom- fort people may feel when faced with the realization that change is a necessity and the cultural makeup of the workplace is changing. Some people may feel “We’ve always done it this way” and are less willing to change to the new ways of doing things.

Perhaps one of the best diversity statements by a Fortune 500 company was made by Jose Manuel Souto, the CFO for Visa in Latin America. He says, “A diverse workforce is critical to providing the best service to our global clients, supporting our business initiatives, and creating a workplace environ- ment that promotes respect and fairness.”[11]

Now that you have an understanding of the meaning of diversity, power, and privilege, as well as the importance of diversity, we will discuss specific diversity strategies in Section 2.

K E Y T A K E A W A Y S

< Diversity is the real or perceived differences between individuals. This can include race, gender, sexual orientation, size, cultural background, and much more.

< Multiculturalism is a term that is similar to diversity, but it focuses on development of a greater understanding of how power in society can be unequal due to race, gender, sexual orientation, power, and privilege.

< Power and privilege is a system of advantages based on one’s race, gender, and sexual orientation. This system can often be invisible (to those who have it), which results in one race or gender having unequal power in the workplace. Of course, this unequal power results in unfairness, which may be of legal concern.

< Diversity is important to the success of organizations. Many studies have shown a direct link between the amount of diversity in a workplace and the company’s success.

E X E R C I S E S

1. Perform an Internet search to find a specific diversity policy for an organization. What is the policy? From what you know of the organization, do you believe they follow this policy in reality?

2. Visit the website http://www.diversityinc.com and find their latest “top 50 list.” What criteria are used to appear on this list? What are the top five companies for the current year?

48 HUMAN RESOURCE MANAGEMENT

2. DIVERSITY PLANS

L E A R N I N G O B J E C T I V E S

1. Be able to apply strategies to create a multicultural work environment and diversity plans. 2. Be able to create an HR plan with diversity considerations.

While state and federal laws must be followed to ensure multiculturalism, the culture of the company and the way the organization operates can contribute to the nurturing of a multicultural environment (or not). Most companies have a formalized and written antidiscrimination and harassment policy. For example, Zappos’s policy states, “The diversity of Zappos’ employees is a tremendous asset. We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment. Examples of such behavior include derogatory comments based on racial or ethnic characteristics and unwelcome sexual advances. Please refer to the applicable sec- tions of the Employee Handbook for further guidance.” [12]

Implementing a policy is an excellent first step, but what is important is how the company acts on those formalized processes and written policies. Let’s say, for example, an organization has a published policy on inclusion of those with physical disabilities, but much “schmoozing” and relationship devel- opment with managers takes place on the golf course on Friday afternoons. While the policy states the company doesn’t discriminate, their actions and “traditions” show otherwise and do discriminate against those with disabilities. If this is where the informal work and relationship building take place, an entire group could be left out of this process, likely resulting in lower pay and promotion rates. Like- wise, organizations that have a “beer Friday” environment may discriminate against those whose reli- gions do not condone drinking alcohol. While none of these situations are examples of blatant discrim- ination, a company’s culture can contribute to an environment that is exclusive rather than inclusive.

Many organizations have developed diversity management plans that are tied to the written di- versity policy of the organization. In fact, in many larger organizations, such as Hilton, manager- or director-level positions have been created to specifically manage diversity plans and programs. Josh Greenberg, a researcher in the area of workplace diversity, contends that organizations with specific di- versity plans tend to be able to facilitate changes more quickly than companies without diversity plans.[13] He says there are three main steps to creating diversity plans:

1. Assessment of diversity. Employee satisfaction surveys, discussions, and open forums that can provide insight into the challenges and obstacles to diversity. Inclusion of all workers for input is necessary to create a useful plan.

2. Development of the diversity plan. Based on step 1, a series of attainable and measurable goals should be developed regarding workplace diversity.

3. Implementation of the plan. The commitment of executives and management is necessary. Formulating action plans based on the goals developed in step 2 and assignment of implementation and measurement of those plans must follow. The action plan should be the responsibility of the entire organization, not just the director of diversity or human resources.

In Section 2, we discuss some of the HR plan considerations in company culture and “our way of doing things” that are worth considering when creating a diversity plan.

2.1 Recruitment and Selection As you saw in the opening of Chapter 3, sometimes organizations do not mean to be exclusive or dis- criminatory, but their practices are discriminatory and illegal. For example, the Equal Employment Opportunity Commission (EEOC) says it is illegal to publish a job advertisement that shows a prefer- ence for a particular type of person or discourages someone from applying for a job. For example, a Facebook post that says “recent college graduates wanted” might be inclusive to a younger group and discouraging to a diverse (older) workforce, not making the post multicultural. Another example might be the reliance on word-of-mouth advertisement for job openings. Suppose you have a mostly Hispanic workforce and use word of mouth for recruitment. It is likely that most new hires will also be Hispanic. This is also illegal, but perhaps a consideration is the lack of diversity you will have in your workplace with these recruitment methods.

Make sure that job announcements aren’t posted only for your Facebook friends to see; post them in a variety of places to gain the largest and most diverse response.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 49

four-fifths rule

The rule states that a selection rate for any race, sex, or ethnic group that is less than four-fifths of the rate for the group with the highest rate could be regarded as adverse impact.

adverse impact

Refers to employment practices that may appear to be neutral but have a discriminatory effect on a protected group.

We address discrimination in the selection process in Chapter 5. However, a mention of the four- fifths rule here is important to determine how we can quantitatively evaluate discrimination in our se- lection practices. One way to calculate possible discrimination is by using the four-fifths rule, or 80 percent rule. The rule states that a selection rate for any race, sex, or ethnic group that is less than four- fifths of the rate for the group with the highest rate could be regarded as adverse impact. Adverse im- pact refers to employment practices that may appear to be neutral but have a discriminatory effect on a protected group. For example, let’s assume 100 women and 500 men applied to be firefighters. Let’s say 20 of those women were hired and 250 men were hired. To determine adverse impact based on the four-fifths rule, calculate the following:

< Selection rate for women: 20 percent < Selection rate for men: 50 percent < Then divide the highest selection rate: .20/.50 = .4

Because .4, or 40 percent, is less than four-fifths, there may be adverse impact in the selection process for firefighters.

2.2 Testing If employment tests are required, a test must be in direct relation to the job. For example, an organiza- tion that uses a personality test in hiring must be able to show that the personality test results are nondiscriminatory and do not exclude a population.

In addition, if a reasonable accommodation is needed, such as an interpreter, and it does not cause financial difficulty for the organization, this should be granted.

Also consider the type of test and how it might exclude a certain group of people, such as those who don’t speak English as a first language. We will discuss multiculturalism and testing further in Chapter 5.

2.3 Pay and Promotion Development of policies related to pay and promotion is key to fairness in a multicultural situation. It is widely published that women make about 77 percent of what men earn for similar jobs.[14] Many studies have tried to determine a cause for this pay inequity, and here are some of the possible reasons studied and researched:

1. Hours worked. Studies have said that women tend to work fewer hours because of child-care and housework expectations.

2. Occupational choice. A study performed by Anne York at Meredith College[15] found that women tend to choose careers that pay less because they are worried about balancing family and career. In addition, numerous studies show that women choose careers on the basis of gender stereotypes (e.g., nurse, teacher) and that this leads to lower pay.

3. Stereotypes. The concept of male bias is a possibility. In many studies, people were more likely to choose male doctors over female doctors, even when experience and education were the same.[16] There appears to be a perception that men may be more competent in certain types of jobs.

4. Maternity and family leave. Women leaving the workforce for a short or extended period of time may affect the perception of promotability in the workplace.

5. Salary negotiation. A study performed by Bowles and Babcock[17] showed that men were eight times more likely to negotiate salary than women. In addition, when women did negotiate, they received lower monetary returns. Consider a study performed by Cornell University, which found that women were often negatively affected in their job when they negotiated salary, as compared to men not being viewed negatively after negotiations.

Whatever the reason for pay difference, all managers should be aware of these differences when hiring and promoting. Allowing managers to determine the pay for their employees can also bring out negat- ive stereotypes—and lead to breaking of the law. Determining a set pay schedule for all new and pro- moted employees can help remedy this situation.

A factor in promotions can also be the mentor-mentee relationship. Most individuals in organiza- tions will have an informal mentor who helps them “through the ranks.” Traditionally, this informal mentor relationship results in someone “pairing up” with another who has similar physical character- istics, is the same gender, or has a similar mind-set. As a result, if the organization has, for example, mostly men, it is likely the female will not be informally mentored, which can result in lack of promo- tion. Likewise, if the workforce consists of mostly Caucasian females, it is likely the African American

50 HUMAN RESOURCE MANAGEMENT

FIGURE 3.2

Checking your own perceptions on multiculturalism can be a good first step to creating a more multicultural and diverse workplace.

© Thinkstock

male may not develop an informal mentor relationship with his female counterparts. Development of a formal mentorship program to ensure that everyone has a mentor is one way to alleviate this situation. Mentorship programs are discussed in Chapter 8.

2.4 Now What? Now that you have an awareness of the aspects of HR that could be affected by multiculturalism, you may consider what steps you can take to create a more multicultural workplace. The first step would be to create a diversity plan, as discussed earlier in this section. The second step would be to look at the operation of the HR department and to figure out what departmental measures can be taken to pro- mote diversity.

HR, for example, can provide a training series on power and privilege and how it relates to the workplace. Awareness is the first step to creating a truly multicultural environment. Once employees recognize their own power and privilege, the training could be developed to include laws related to di- versity, and discussions on bias can take place. Then discussions can be held on how to improve HR plans such as job analysis, recruitment, and selection to create a multicultural work environment. Rath- er than thinking about this training as one of many objectives that must be accomplished, think about the training from the conversation perspective. Getting the conversation started is the first step in this personal and professional development process for employees.

Some of the aspects to creating a training focused on multiculturalism might in- clude the following:

1. Build a cultural knowledge about customs, religions, and histories. 2. Discuss treatment of people based on them as individuals, rather than as part of a

“group,” which can result in stereotyping. 3. Teach employees to listen actively, which can help raise cultural awareness. 4. Train employees to rethink current policies and how those policies might be

exclusive to a certain group. 5. Work on resistance to change. Many employees think, “This is the way we have

always done it, and now we have to change it because we have a group of ____ working here now.”

6. Does your leadership team have a multiculturalism perspective? Are many ethnic backgrounds and other multicultural traits represented?

While these suggestions may not eliminate power and privilege, the ability to talk about differences and expectations can be a key ingredient to creating a more inclusive envir- onment. Sometimes this type of training can help people evaluate their perceptions. For example, suppose a complaint came through that a woman was making derogatory sexual comments to only one group of men in an organization. When talked to about it, she said she made comments to the “techies” because she thought the comments would provide them a needed confidence boost, but she generally wouldn’t make those types of comments. This is an example of her perception (“techies” need confidence boosts from women) followed by her action (the comments) on this perception. When we assume our perceptions are correct, we are usually wrong. Training can get people to consider their emotions, stereotypes, and expectations. Besides training, asking ourselves a series of important questions can be the start to making diversity and multiculturalism work. The University of California, San Francisco human resource department lists some of these ques- tions, which are shown in the sidebar.

Things to Consider When Creating a Multicultural and Diverse Work Environment

< Do you test your assumptions before acting on them?

< Do you believe there is only one right way of doing things, or that there are a number of valid ways that accomplish the same goal? Do you convey that to staff?

< Do you have honest relationships with each staff member you supervise? Are you comfortable with each of them? Do you know what motivates them, what their goals are, and how they like to be recognized?

< Are you able to give negative feedback to someone who is culturally different from you?

< When you have open positions, do you insist on a diverse screening committee and make additional outreach efforts to ensure that a diverse pool of candidates has applied?

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 51

< When you hire a new employee, do you not only explain job responsibilities and expectations clearly but orient the person to the campus and department culture and unwritten rules?

< Do you rigorously examine your unit’s existing policies, practices, and procedures to ensure that they do not differentially impact different groups? When they do, do you change them?

< Are you willing to listen to constructive feedback from your staff about ways to improve the work environment? Do you implement staff suggestions and acknowledge their contribution?

< Do you take immediate action with people you supervise when they behave in ways that show disrespect for others in the workplace, such as inappropriate jokes and offensive terms?

< Do you make good faith efforts to meet your affirmative action goals?

< Do you have a good understanding of institutional isms such as racism and sexism and how they manifest themselves in the workplace?

< Do you ensure that assignments and opportunities for advancement are accessible to everyone?

< What policies, practices, and ways of thinking have differential impact on different groups?

< What organizational changes should be made to meet the needs of a diverse workforce?

Source: University of California, San Francisco, “Managing Diversity in the Workplace,” chap. 12 in Guide to Managing Human Resources, accessed July 11, 2011, http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/#684.

Human Resource Recall

Why is multiculturalism important in the workplace? What is your role, as an employee in your organization, to ensure a diverse workforce?

How Would You Handle This?

Refer a Friend

Your manager is very concerned about the cost of hiring the three new people you need. As a result, she doesn’t want to post the advertisement in a variety of places; she thinks it’s best to just use a “refer a friend” re- cruitment strategy. When she moves forward with this strategy, ten people turn in résumés. Upon looking fur- ther, it appears all applicants went to the same private religious college and graduated around the same time. You are concerned that this method of recruitment lacks diversity. How would you handle this with your manager?

How Would You Handle This? The author discusses the How Would You Handle This situation in this chapter at: https://api.wistia.com/v1/ medias/1371393/embed.

K E Y T A K E A W A Y S

< Oftentimes there are cultural aspects to an organization that make it resistant to an inclusive environment. These are often not obvious, but it is important to be aware of how your own company culture impacts multiculturalism.

< One way to begin the discussion within your organization is to create diversity action plans, for which the entire company is responsible and for which HR is the change agent. In addition to companywide initiatives, HR can also look within its own HR plans to see where it may be able to change.

< In recruitment, awareness of how and where you post announcements is crucial.

< Testing should be fair and unbiased and shouldn’t negatively impact someone based on race, national origin, gender, social class, or educational level.

< There are many reasons for differences in pay. Development of a set pay scale can alleviate some of the issues surrounding unfair pay, especially between men and women.

< Formal mentorship programs can create multicultural understanding and can ensure people do not stick with their own race or gender when helping someone move up the ranks in an organization.

52 HUMAN RESOURCE MANAGEMENT

Equal Employment Opportunity Commission (EEOC)

A federal agency charged with the task of enforcing federal employment discrimination laws.

E X E R C I S E S

1. What are some things we can do, personally, to be more multiculturally efficient?

2. What are the advantages of having a set pay scale? What are the disadvantages?

3. MULTICULTURALISM AND THE LAW

L E A R N I N G O B J E C T I V E S

1. Define the role of the Equal Employment Opportunity Commission (EEOC). 2. Explain the various types of laws covered by the EEOC.

As we already know, it is in an organization’s best interest to hire and promote a multicultural and di- verse workforce. Sometimes though, people are still discriminated against at work. As a result, a federal agency has been established to ensure employees have a place to file complaints should they feel dis- criminated against. This is the topic of Section 1. However, please note that each of these topics is dis- cussed in Chapter 4 as well, but they are also worth mentioning here.

3.1 Equal Employment Opportunity Commission (EEOC) The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the task of enforcing federal employment discrimination laws. The laws include those that protect people from discrimination in all areas of employment, such as discrimination based on race, color, religion, sex, national origin, age, and disability. People who have filed a discrimination charge are also protec- ted against discrimination under the EEOC. Employers with at least fifteen employees (twenty for age discrimination) are covered under the EEOC. This agency covers not only discrimination in hiring but also discrimination in all types of work situations such as firing, promotions, harassment, training, wages, and benefits. The EEOC has the authority to investigate charges of discrimination against em- ployers. The agency investigates the claims, makes a finding, and then tries to settle the charge. If they are unsuccessful in settling the charge, the EEOC has the right to file a lawsuit on behalf of the com- plainants. The EEOC has headquarters in Washington, DC, with fifty-three field offices throughout the United States.

If a company has more than one hundred employees, a form called the EEO-1 must be filled out yearly. This form confirms the demographics of an organization based on different job categories.[18] An organization that employs more than fifty people and works for the federal government must also file an EEO-1 yearly, with the deadline normally in September. In addition, organizations must post the EEOC notice, which you have probably seen before, perhaps in the company break room. Finally, or- ganizations should keep on file records such as hiring statistics in the event of an EEOC investigation.

It is necessary to mention here that while there is a legal compliance concern, as discussed before, it is in the company’s best interest to hire a diverse workforce. So while we can discuss the legal aspects, remember that the purpose of having a diverse workforce is not just to meet EEOC requirements but to create a better, more profitable workplace that better serves customers.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 53

Title VII of the Civil Rights Act

This act, passed in 1964 and enforced by the EEOC, covers several areas of discrimination including age, race, and sex.

bona fide occupational qualification (BFOQ)

A quality or attribute employers are allowed to consider when making decisions during the selection process.

Age Discrimination in Employment Act (ADEA)

Created in 1967 and enforced by the EEOC, this law prohibits discrimination based on age and covers people who are age forty or older.

TABLE 3.1 How the EEOC Process Works and Requirements for Employers

Requirements by EEOC

Post Federal and State EEOC notices

File yearly report called EEO-1

Keep copies of documents on file

Process for Investigation

1. The EEOC complaint is filed.

2. The EEOC notifies the organization of the charges.

3. The EEOC acts as a mediator between the employee and the employer to find a solution.

4. If step 3 is unsuccessful, the EEOC will initiate an investigation.

5. The EEOC makes a determination, and then the employer has the option of remedying the situation or face a potential lawsuit.

3.2 EEOC Federal Legislation While the EEOC is the larger governing body, many pieces of legislation relating to multicultural prac- tices are part of the EEOC family of laws. Many of these laws began with Title VII of the Civil Rights Act in 1964. This act, enforced by the EEOC, covers several areas in which discrimination was rampant. However, a bona fide occupational qualification (BFOQ) is a quality or attribute em- ployers are allowed to consider when making decisions during the selection process. Examples of BFOQs are a maximum age limit for airline pilots for safety reasons and a Christian college’s require- ment that the president of the college be Christian.

EEOC laws relate specifically to the following and are discussed in detail in Chapter 4 and Chapter 5:

1. Age 2. Disability 3. Equal pay 4. Genetic information 5. National origin 6. Pregnancy 7. Race/color 8. Religion 9. Retaliation

10. Sex 11. Sexual harassment

Age

Age discrimination involves treating someone less favorably because of his or her age. Created in 1967, the Age Discrimination in Employment Act (ADEA) is enforced by the EEOC. This law covers people who are age forty or older. It does not cover favoring an older worker over a younger worker, if the older worker is forty years or older. The law covers any aspect of employment such as hiring, firing, pay, job assignments, promotions, layoffs, training, fringe benefits, and any other condition or term of employment.

The law also goes deeper by forbidding harassment of someone based on age. While simple teasing or offhand comments are not covered, more serious offensive remarks about age are covered by this EEOC law.

54 HUMAN RESOURCE MANAGEMENT

Americans with Disabilities Act (ADA)

Prohibits discrimination against those with disabilities and is enforced by the EEOC.

reasonable accommodation

A change in the work environment or the way things are customarily done that enables an individual with a disability to enjoy equal employment opportunities.

Disability

The Americans with Disabilities Act (ADA) prohibits discrimination against those with disabilit- ies and is enforced by the EEOC. Discrimination based on disability means treating a qualified person unfavorably because of a disability. For example, if someone has AIDS that is controlled, the employee cannot be treated unfavorably. The law requires an employer to provide reasonable accommoda- tion to an employee or applicant with a disability, unless this accommodation would cause significant difficulty or expense for the employer. A reasonable accommodation is defined by the EEOC as any change in the work environment or in the way things are customarily done that enables an individual with a disability to enjoy equal employment opportunities. A reasonable accommodation might in- clude making the workplace accessible for wheelchair use or providing equipment for someone who is hearing or vision impaired.

This law does not mean that organizations are required to hire unqualified people. The law spe- cifically states the person must be qualified for the job and have a disability defined by the law. A disab- ility defined by the law can include the following:

1. Physical or mental condition that limits a major life activity (walking, talking, seeing, hearing, or learning)

2. History of a disability (e.g., cancer that is in remission) 3. Physical or mental impairment that is not transitory (lasting or expected to last less than six

months) The law places limits on employers when it comes to asking job applicants questions about medical his- tory or asking a person to take a medical exam.

Equal Pay/Compensation

The basis of this law is that people are paid the same for the same type of work, and the law specifically addresses gender pay differences. Rather than job title, job content is used to determine if the job is the same work. In addition to covering salary, it deals with overtime pay, bonus, stock options, profit shar- ing, and other types of bonus plans such as vacation and holiday pay. If inequality in pay is found, the employer cannot reduce the wages of either sex to equalize the pay.

An employee who files an equal pay charge has the option to go directly to court rather than the EEOC.

Genetic Information

This law is one of the newer EEOC laws, which took effect in November 2009. The EEOC’s definition of genetic information includes family medical information or information about the manifestation of a disease or disorder in an individual’s family. For example, an employer cannot discriminate against an employee whose family has a history of diabetes or cancer. This information could be used to dis- criminate against an employee who has an increased risk of getting a disease and may make health-care costs more expensive for the organization.

In addition, the employer is not allowed to seek out genetic information by requesting, requiring, or purchasing this information. However, there are some situations in which receiving this information would not be illegal:

1. A manager or supervisor overhears an employee talking about a family member’s illness. 2. Information is received based on wellness programs offered on a voluntary basis. 3. If the information is required as documentation to receive benefits for the Family and Medical

Leave Act (FMLA). FMLA is discussed in Section 3. 4. If the information is commercial, such as the appearance of information in a newspaper, as long

as the employer is not specifically searching those sources for the purpose of finding genetic information.

5. If genetic information is required through a monitoring program that looks at the biological effects of toxic substances in the workplace.

6. For those professions that require DNA testing, such as law enforcement agencies. In this case, the genetic information may only be used for analysis in relation to the specific case at hand.

This law also covers how information about genetics should be kept. For example, genetic information must be kept separate from an employee’s regular file.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 55

Family and Medical Leave Act (FMLA)

This law gives twelve weeks of unpaid leave for childbirth, adoption, or caregiving of sick family members.

National Origin

It is illegal to treat people unfavorably because they are from a particular country or part of the world, because of their accent, or because they appear to be of a particular descent (even if they are not). The law protecting employees based on national origin refers to all aspects of employment: hiring, firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. An employer can require an employee to speak English only if it is necessary to perform the job effectively. An English-only policy is allowed only if it is needed to ensure the safe or efficient operations of the employer’s business. An employer may not base an employment decision on a foreign accent, unless the accent seriously inter- feres with job performance.

Pregnancy

This section of the EEOC refers to the unfavorable treatment of a woman because of pregnancy, child- birth, or a medical condition related to pregnancy or childbirth. The Pregnancy Discrimination Act of 1978, added to the Civil Rights Act of 1964, is enforced by the EEOC. The female who is unable to per- form her job owing to pregnancy must be treated the same as other temporarily disabled employees. For example, modified tasks or alternative assignments should be offered. This law refers not only to hiring but also to firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. In ad- dition to this law against discrimination of pregnant women, the Family and Medical Leave Act (FMLA) is enforced by the US Department of Labor.[19] The FMLA requires companies with fifty or more employees to provide twelve weeks of unpaid leave for the following:

1. Birth and care of a newborn child 2. Care of an adopted child 3. Care for immediate family members (spouse, child, or parent) with a serious health condition 4. Medical leave for the employee who is unable to work because of a serious health condition

In addition to the company size requirement, the employee must have worked at least 1,250 hours over the past 12 months.

Race/Color

This type of discrimination refers to treating someone unfavorably because he or she is of a certain race or because of certain characteristics associated with race. These characteristics might include hair tex- ture, skin color, or facial features. Discrimination can occur when the person discriminating is the same race or color of the person who is being discriminated against. EEOC law also protects people who are married to or associated with someone of a certain race or color. As with the other types of an- tidiscrimination laws we have discussed, this law refers not only to the initial hiring but also to firing, pay, job assignments, promotions, layoffs, training, and fringe benefits.

Religion

This part of the EEOC refers to treating a person unfavorably because of their religious beliefs. This law requires a company to reasonably accommodate an employee’s religious beliefs or practices, unless do- ing so would burden the organization’s operations. For example, allowing flexible scheduling during certain religious periods of time might be considered a reasonable accommodation. This law also cov- ers accommodations in dress and grooming, such as a headscarf, religious dress, or uncut hair and a beard in the case of a Sikh. Ideally, the employee or applicant would notify the employer that he or she needs such an accommodation for religious reasons, and then a discussion of the request would occur. If it wouldn’t pose hardship, the employer should honor the request. If the request might cause a safety issue, decrease efficiency, or infringe on the rights of other employees, it may not be honored.

Sex and Sexual Harassment

Sex discrimination involves treating someone unfavorably because of their sex. As with all EEOC laws, this relates to hiring, firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. This law directly ties into sexual harassment laws, which include unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature. The victim can be male or female, and sexual harassment can occur female to female, female to male, male to female, and male to male. We discuss more details of harassment in Chapter 10.

56 HUMAN RESOURCE MANAGEMENT

Harassment at Yale?

This 2011 video outlines a sexual harassment lawsuit at Yale University. The video shows that the lawsuit blamed Yale not for the harassment but for not taking a harder stand on this type of harassment.

Retaliation

In all the laws mentioned, the EEOC set of laws makes it illegal to fire, demote, harass, or retaliate against people because they filed a charge of discrimination, complained about discrimination, or par- ticipated in employment discrimination proceedings. Perhaps one of the most high-profile sexual har- assment and retaliation cases was that of Sanders v. Thomas. Isiah Thomas, then coach of the New York Knicks, fired Anucha Browne Sanders because she hired an attorney to file sexual harassment claims charges. The jury awarded Browne Sanders $11.6 million in punitive charges because of the hos- tile work environment Thomas created and another $5.6 million because Browne Sanders was fired for complaining.[20] A portion of the lawsuit was to be paid by Madison Square Garden and James Dolan, chairman of Cablevision, the parent company of Madison Square Garden and the Knicks. Browne Sanders’s lawyers successfully argued that the inner workings of Madison Square Garden were hostile and lewd, and that the former marketing executive of the organization subjected her to hostility and sexual advances. Thomas left the organization as coach and president in 2008. As in this case, there are large financial and public relations penalties not only for sexual harassment but for retaliation after a harassment suit has been filed.

All types of discrimination and laws affecting multiculturalism are a key aspect for HR managers and managers to understand. These types of discrimination are discussed in Chapter 4, specifically, how they pertain to recruiting and hiring.

Military Service

The Uniformed Services Employment and Reemployment Rights Act (USERR) protects people who serve or have served in the armed forces, Reserves, National Guard, or other uniformed services. The act ensures these individuals are not disadvantaged in their civilian careers because of their service. It also requires they be reemployed in their civilian jobs upon return to service and prohibits discrimina- tion based on past, present, or future military service.

View the video online at: http://www.youtube.com/v/9ZbIjjoNxXQ

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 57

Human Resource Recall

An accommodation for religion, such as allowing turbans, would be considered a reasonable accommodation in work dress.

© Thinkstock

What types of discrimination (under the EEOC) do you think are the most common and why? Have you ever experienced discrimination in the workplace, at school, or in extracurricular activities? Explain.

K E Y T A K E A W A Y S

< The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the development and enforcement of laws relating to multiculturalism and diversity in the workplace.

< The EEOC covers discrimination based on several areas. Companies cannot discriminate based on age; EEOC law covers people who are forty years or older.

< Employers cannot discriminate against people with disabilities and must provide reasonable accommodations, such as the addition of a wheelchair ramp to accommodate those with disabilities.

< Equal pay refers to the fact people should legally be paid the same amount for performing the same type of work, even if the job title is different.

< The newest addition to EEOC law prohibits discrimination based on genetic information, such as a history of cancer in a family.

< Unfavorable treatment of people because they are from a particular country or part of the world or have an accent is covered by the EEOC. An organization cannot require people to speak English, unless it is a requirement for the job or needed for safety and efficient operation of the organization.

< Women can’t be discriminated against because they are pregnant. The inability to perform certain tasks due to pregnancy should be treated as a temporary disability; accommodation can be in the form of modified tasks or alternative assignments.

< The EEOC protects people from discrimination based on their race or color.

< Religion is also an aspect of the EEOC family of laws. The protection of religion doesn’t allow for discrimination; accommodations include modifications of work schedules or dress to be made for religious reasons.

< Discrimination on the basis of sex is illegal and covered by the EEOC. Sexual harassment is also covered by the EEOC and states that all people, regardless of sex, should work in a harassment-free environment.

< Retaliation is also illegal. An organization cannot retaliate against anyone who has filed a complaint with the EEOC or a discrimination lawsuit.

< The US Department of Labor oversees some aspects of EEOC laws, such as the Family and Medical Leave Act (FMLA). This act requires organizations to give twelve weeks of unpaid leave in the event of an adoption, a birth, or a need to provide care to sick family members.

58 HUMAN RESOURCE MANAGEMENT

E X E R C I S E S

1. Visit the EEOC website at http://www.eeoc.gov and explain the methods an employee can use in filing a complaint with the EEOC.

2. If an employer is found to have discriminated, what are some “remedies” listed on the EEOC website?

4. CASES AND PROBLEMS

Chapter Summary

< Diversity is the real or perceived differences between individuals. Diversity can include race, gender, sexual orientation, size, cultural background, and many other differences. Multiculturalism is similar to diversity but focuses on the development of a greater understanding of how power in society can be unequal because of race, gender, sexual orientation, power, and privilege.

< Power and privilege is a system of advantages based on one’s race, gender, and sexual orientation. This system can often be invisible (to those who have it), which results in one race or gender having unequal power in the workplace. Of course, this unequal power results in unfairness, which may be a legal concern.

< Diversity is important to the success of organizations. Many studies have shown a direct link between the amount of diversity in a workplace and the success of the company.

< Oftentimes there are cultural aspects to an organization that make it resistant to an inclusive environment. These are often not obvious, but awareness of how your own company culture impacts multiculturalism is important. Job announcements, testing, and pay differences are company culture components that can create exclusive environments.

< In recruitment, awareness of how and where you post announcements is crucial. Development of a set pay scale can alleviate some of the issues surrounding unfair pay, especially between men and women.

< Formal mentorship programs can create multicultural understanding and ensure people do not stick with their own race or gender when helping someone move up the ranks in an organization.

< The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with development and enforcement of laws relating to multiculturalism and diversity in the workplace.

< The EEOC covers discrimination based on several areas. Companies cannot discriminate based on age—that is, against someone who is forty or older. They also can’t discriminate against people with disabilities or on the basis of race, genetic information, national origin, gender, or religion.

< Retaliation is also illegal, based on EEOC laws. An organization cannot retaliate against anyone who has filed a complaint with the EEOC or a discrimination lawsuit.

< The US Department of Labor oversees some aspects of EEOC laws, such as the Family and Medical Leave Act (FMLA). This act requires organizations to give twelve weeks of unpaid leave in the event of an adoption, birth, or caregiving of sick family members.

Chapter Summary The author provides a video summary of the chapter.

View the video online at: http://app.wistia.com/embed/medias/991cae6ecf

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 59

Chapter Case

But…It’s Our Company Culture!

You are the HR manager for a fifty-person firm that specializes in the development and marketing of plastics technologies. When you were hired, you felt the company had little idea what you should be paid and just made up a number, which you were able to negotiate to a slightly higher salary. While you have been on the job for three months, you have noticed a few concerning things in the area of multiculturalism, besides the way your salary was offered. The following are some of those items:

1. You know that some of the sales team, including the sales manager, get together once a month to have drinks at a strip club.

2. A Hispanic worker left the organization, and in his exit interview, he complained of not seeing a path toward promotion.

3. The only room available for breast-feeding mothers is the women’s restroom.

4. The organization has a policy of offering $200 to any employee who refers a friend, as long as the friend is hired and stays at least six months.

5. The manufacturing floor has an English-only policy.

6. You have heard managers refer to those wearing turbans in a derogatory way.

What do you think needs to be done to create a more inclusive environment, without losing the culture of the company? What suggestions would you make to those involved in each of the situations?

Team Activity

1. In groups, research recent high-profile cases involving diversity or multiculturalism. Prepare a five- minute presentation on the case to present to classmates.

60 HUMAN RESOURCE MANAGEMENT

1.

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ENDNOTES

James Moody, “Race, School Integration, and Friendship Segregation in America,” American Journal of Sociology 107, no. 3 (2001): 679–719.

Society for Human Resource Management, The 2007 State of Workplace Diversity Man- agement Report, March 2008, accessed August 3, 2011, http://www.shrm.org/ Publications/HRNews/Pages/DiversityBusinessImperative.aspx.

Victoria C. Plaut, Kecia M. Thomas, and Matt J. Goren, “Is Multiculturalism or Color Blindness Better for Minorities?” Psychological Science 20, no. 4 (2009): 444–46.

Jason Forsythe, “Leading with Diversity,” New York Times, 2005, accessed July 13, 2011, http://www.nytimes.com/marketing/jobmarket/diversity/hilton.html.

Jason Forsythe, “Leading with Diversity,” New York Times, 2005, accessed July 13, 2011, http://www.nytimes.com/marketing/jobmarket/diversity/hilton.html.

Cedric Herring, “Does Diversity Pay? Racial Composition of Firms and the Business Case for Diversity” (paper presented at the annual meeting of the American Sociolo- gical Association, Montreal, Canada, August 11, 2006), accessed May 5, 2009, http://citation.allacademic.com/meta/p_mla_apa_research_citation/1/0/1/7/9/ pages101792/p101792-1.php.

Scott E. Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies (Princeton, NJ: Princeton University Press, 2007).

William J. Holstein, “Diversity is Even More Important in Hard Times,” New York Times, February 13, 2009, accessed August 25, 2011, http://www.nytimes.com/2009/02/14/ business/14interview.html.

Roy Adler, “Women in the Executive Suite Correlate to High Profits,” Glass Ceiling Re- search Center.

Melissa Lauber, “Studies Show That Diversity in Workplace Is Profitable,” Project Equal- ity, n.d., accessed July 11, 2011, http://www.villagelife.org/news/archives/ diversity.html.

National Latina Business Women Association, “Women and Minorities on Corporate Boards Still Lags Far Behind National Population,” accessed August 24, 2011, http://nlbwa.org/component/content/article/64-nationalnews/ 137-procon-and-asian-global-sourcing-conference.

Zappos.com, accessed August 25, 2011, http://about.zappos.com/ our-unique-culture/zappos-core-values/ build-open-and-honest-relationships-communication.

Josh Greenberg, “Diversity in the Workplace: Benefits, Challenges, Solutions,” The Multicultural Advantage, 2004, accessed July 12, 2011, http://www.multiculturaladvantage.com/recruit/diversity/ Diversity-in-the-Workplace-Benefits-Challenges-Solutions.asp.

National Committee on Pay Equity, accessed August 25, 2011, http://www.iwpr.org/ initiatives/pay-equity-and-discrimination/#publications.

E. Anne York, “Gender Differences in the College and Career Aspirations of High School Valedictorians,” Journal of Advanced Academics 19, no. 4 (Summer 2008): 578–600, http://eric.ed.gov/ERICWebPortal/detail?accno=EJ822323.

David R. Hekman, Karl Aquino and Brad P. Owens, “An Examination of Whether and How Racial and Gender Biases Influence Customer Satisfaction,” Academy of Manage- ment Journal 53, no. 2 (April 2010): 238–264.

Hannah Riley Bowles and Linda Babcock, “When Doesn’t It Hurt Her to Ask? Framing and Justification Reduce the Social Risks of Initiating Compensation” (paper presen- ted at IACM 21st Annual Conference, December 14, 2008): accessed August 25, 2011, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1316162.

Equal Opportunity Employment Commission, 2011 EEO-1 Survey, accessed December 20, 2010, http://www.eeoc.gov/employers/eeo1survey.

US Department of Labor, Leave Benefits: Family and Medical Leave, US Department of Labor, accessed December 20, 2010, http://www.dol.gov/dol/topic/benefits-leave/ fmla.htm.

Michael Schmidt, “Jury Awards $11.6 Million to Former Knicks Executive,” New York Times, October 2, 2007, accessed July 12, 2011, http://www.nytimes.com/2007/10/ 02/sports/basketball/03garden-cnd.html.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 61

62 HUMAN RESOURCE MANAGEMENT

C H A P T E R 4 Recruitment KEEPING UP WITH GROWTH Over the last two years, the company where Melinda works as HR manager, Dragon Enterprises, has seen plenty of

growth. Much of this growth has created a need for a strategic, specific recruiting processes. In the past, Dragon En-

terprises recruited simply on the basis of the applications they received, rather than actively searching for the right

person for the job. The first thing Melinda did when arriving at the company was to develop a job analysis ques-

tionnaire, which she had all employees fill out using the website SurveyMonkey. The goal was to create a job ana-

lysis for each position that existed at the company. This happened to be the point where the organization started

seeing rapid growth, as a result of increased demand for the types of parts the company sells. Luckily, since Melinda

followed the industry closely and worked closely with management, part of her strategic outline planned for the

hiring of several new positions, so she was mostly ready for it. Keeping in mind the Equal Employment Opportunity

Commission (EEOC) laws and the company’s position on a diverse workforce, Melinda set out to write new job de-

scriptions for the job analysis she had performed. She knew the job analysis should be tied to the job description,

and both of these should be tied to the job qualifications. Obviously, to recruit for these positions, she needed to

develop a recruitment plan. Over the next year, the organization needed to hire three more floor management pos-

itions, three office positions, and fifteen factory floor positions. Next, she needed to determine a time line to recruit

candidates and a method by which to accept the applications she would receive. After sharing this time line with

her colleague, the chief operating officer, she went to work recruiting. She sent an e-mail to all employees asking

them to refer a friend and receive a $500 bonus. Next, part of her strategy was to try to find very specialized talent

in management to fill those positions. For this, she thought working with a recruiting company might be the best

way to go. She also used her Twitter and Facebook accounts to broadcast the job openings. After a three-week

period, Melinda had 54 applications for the management positions, 78 for the office positions, and 110 for the fact-

ory floor positions. Pleased with the way recruiting had gone, she started reviewing the résumés to continue with

the selection process.

recruitment

A process that provides the organization with a pool of qualified job candidates from which to choose.

Recruitment Introduction

The author introduces the chapter on recruitment strategies.

1. THE RECRUITMENT PROCESS

L E A R N I N G O B J E C T I V E S

1. Discuss the need for forecasting human resource needs and techniques for forecasting. 2. Be able to explain the steps to an effective recruitment strategy. 3. Be able to develop a job analysis and job description.

The recruitment process is an important part of human resource management (HRM). It isn’t done without proper strategic planning. Recruitment is defined as a process that provides the organization with a pool of qualified job candidates from which to choose. Before companies recruit, they must im- plement proper staffing plans and forecasting to determine how many people they will need. The basis of the forecast will be the annual budget of the organization and the short- to long-term plans of the or- ganization—for example, the possibility of expansion. In addition to this, the organizational life cycle will be a factor. Organization life cycle is discussed in Chapter 2. Forecasting is based on both internal and external factors. Internal factors include the following:

1. Budget constraints 2. Expected or trend of employee separations 3. Production levels 4. Sales increases or decreases 5. Global expansion plans

External factors might include the following: 1. Changes in technology 2. Changes in laws 3. Unemployment rates 4. Shifts in population 5. Shifts in urban, suburban, and rural areas 6. Competition

Once the forecasting data are gathered and analyzed, the HR professional can see where gaps exist and then begin to recruit individuals with the right skills, education, and backgrounds. This section will dis- cuss this step in HR planning.

View the video online at: http://app.wistia.com/embed/medias/d6d511dab9

64 HUMAN RESOURCE MANAGEMENT

internal candidate

Someone who applies for a position within the company who is already working for the company.

bidding system

A system or a process in which job advertisements may be posted internally through a predetermined method so all employees have access to them.

job analysis

A formal system developed to determine the tasks people actually perform in their jobs.

job design

Refers to how a job can be modified or changed to be more effective—for example, changing tasks as new technology becomes available.

1.1 Recruitment Strategy Although it might seem easy, recruitment of the right talent, at the right place and at the right time, takes skill and practice, but more importantly, it takes strategic planning. In Chapter 2, development of staffing plans is discussed. An understanding of the labor market and the factors determining the relev- ant aspects of the labor market is key to being strategic about your recruiting processes.

Based on this information, when a job opening occurs, the HRM professional should be ready to fill that position. Here are the aspects of developing a recruitment strategy:

1. Refer to a staffing plan. This is discussed in Chapter 2. 2. Confirm the job analysis is correct through questionnaires. 3. Write the job description and job specifications. 4. Have a bidding system to recruit and review internal candidate qualifications for possible

promotions. 5. Determine the best recruitment strategies for the position. 6. Implement a recruiting strategy.

The first step in the recruitment process is acknowledgment of a job opening. At this time, the manager and/or the HRM look at the job description for the job opening (assuming it isn’t a new job). We dis- cuss how to write a job analysis and job description in Section 1.

Assuming the job analysis and job description are ready, an organization may decide to look at in- ternal candidates’ qualifications first. Internal candidates are people who are already working for the company. If an internal candidate meets the qualifications, this person might be encouraged to apply for the job, and the job opening may not be published. Many organizations have formal job posting procedures and bidding systems in place for internal candidates. For example, job postings may be sent to a listserv or other avenue so all employees have access to them. However, the advantage of pub- lishing open positions to everyone in and outside the company is to ensure the organization is diverse. Diversity is discussed in Chapter 3. We discuss more about internal and external candidates and bid- ding systems in Chapter 5.

Then the best recruiting strategies for the type of position are determined. For example, for a high- level executive position, it may be decided to hire an outside head-hunting firm. For an entry-level pos- ition, advertising on social networking websites might be the best strategy. Most organizations will use a variety of methods to obtain the best results. We discuss specific strategies in Section 3.

Another consideration is how the recruiting process will be managed under constraining circum- stances such as a short deadline or a low number of applications. In addition, establishing a protocol for how applications and résumés will be processed will save time later. For example, some HRM pro- fessionals may use software such as Microsoft Excel to communicate the time line of the hiring process to key managers.

Once these tasks are accomplished, the hope is that you will have a diverse group of people to in- terview (called the selection process). Before this is done, though, it is important to have information to ensure the right people are recruited. This is where the job analysis and job description come in. We discuss this in Section 1.

1.2 Job Analysis and Job Descriptions The job analysis is a formal system developed to determine what tasks people actually perform in their jobs. The purpose of a job analysis is to ensure creation of the right fit between the job and the employee and to determine how employee performance will be assessed. A major part of the job ana- lysis includes research, which may mean reviewing job responsibilities of current employees, research- ing job descriptions for similar jobs with competitors, and analyzing any new responsibilities that need to be accomplished by the person with the position. According to research by Hackman and Old- ham,[1] a job diagnostic survey should be used to diagnose job characteristics prior to any redesign of a job. This is discussed in Chapter 7.

To start writing a job analysis, data need to be gathered and analyzed, keeping in mind Hackman and Oldham’s model. Figure 4.1 shows the process of writing a job analysis. Please note, though, that a job analysis is different from a job design. Job design refers to how a job can be modified or changed to be more effective—for example, changing tasks as new technology becomes available. We discuss job design in Chapter 7 and Chapter 11.

CHAPTER 4 RECRUITMENT 65

job description

A list of tasks, duties, and responsibilities of a job.

job specifications

The skills and abilities the person must have to perform the job.

FIGURE 4.1 Process for Writing the Job Analysis

The information gathered from the job analysis is used to develop both the job description and the job specifications. A job description is a list of tasks, duties, and responsibilities of a job. Job specifica- tions, on the other hand, discuss the skills and abilities the person must have to perform the job. The two are tied together, as job descriptions are usually written to include job specifications. A job analysis must be performed first, and then based on that data, we can successfully write the job description and job specifications. Think of the analysis as “everything an employee is required and expected to do.”

FIGURE 4.2 Sample Job Analysis Questionnaire

This questionnaire shows how an HR professional might gather data for a job analysis. Questionnaires can be completed on paper or online.

66 HUMAN RESOURCE MANAGEMENT

Two types of job analyses can be performed: a task-based analysis and a competency- or skills-based analysis. A task-based analysis focuses on the duties of the job, as opposed to a competency-based ana- lysis, which focuses on the specific knowledge and abilities an employee must have to perform the job. An example of a task-based analysis might include information on the following:

1. Write performance evaluations for employees. 2. Prepare reports. 3. Answer incoming phone calls. 4. Assist customers with product questions. 5. Cold-call three customers a day.

With task job analysis, the specific tasks are listed and it is clear. With competency based, it is less clear and more objective. However, competency-based analysis might be more appropriate for specific, high- level positions. For example, a competency-based analysis might include the following:

1. Able to utilize data analysis tools 2. Able to work within teams 3. Adaptable 4. Innovative

CHAPTER 4 RECRUITMENT 67

You can clearly see the difference between the two. The focus of task-based analyses is the job duties re- quired, while the focus of competency-based analyses is on how a person can apply their skills to per- form the job. One is not better than the other but is simply used for different purposes and different types of jobs. For example, a task-based analysis might be used for a receptionist, while a competency- based analysis might be used for a vice president of sales position. Consider the legal implications, however, of which job analysis is used. Because a competency-based job analysis is more subjective, it might be more difficult to tell whether someone has met the criteria.

Once you have decided if a competency-based or task-based analysis is more appropriate for the job, you can prepare to write the job analysis. Of course, this isn’t something that should be done alone. Feedback from managers should be taken into consideration to make this task useful in all levels of the organization. Organization is a key component to preparing for your job analysis. For example, will you perform an analysis on all jobs in the organization or just focus on one department? Once you have determined how you will conduct the analysis, a tool to conduct the analysis should be chosen. Most organizations use questionnaires (online or hard copy) to determine the duties of each job title. Some organizations will use face-to-face interviews to perform this task, depending on time constraints and the size of the organization. A job analysis questionnaire usually includes the following types of questions, obviously depending on the type of industry:

1. Employee information such as job title, how long in position, education level, how many years of experience in the industry

2. Key tasks and responsibilities 3. Decision making and problem solving: this section asks employees to list situations in which

problems needed to be solved and the types of decisions made or solutions provided. 4. Level of contact with colleagues, managers, outside vendors, and customers 5. Physical demands of the job, such as the amount of heavy lifting or ability to see, hear, or walk 6. Personal abilities required to do the job—that is, personal characteristics needed to perform well

in this position 7. Specific skills required to do the job—for example, the ability to run a particular computer

program 8. Certifications to perform the job

Once all employees (or the ones you have identified) have completed the questionnaire, you can organ- ize the data, which is helpful in creating job descriptions. If there is more than one person completing a questionnaire for one job title, the data should be combined to create one job analysis for one job title. There are a number of software packages available to help human resources perform this task, such as AutoGOJA.

Once the job analysis has been completed, it is time to write the job description and specifications, using the data you collected. Job descriptions should always include the following components:

1. Job functions (the tasks the employee performs) 2. Knowledge, skills, and abilities (what an employee is expected to know and be able to do, as well

as personal attributes) 3. Education and experience required 4. Physical requirements of the job (ability to lift, see, or hear, for example)

68 HUMAN RESOURCE MANAGEMENT

FIGURE 4.3 Sample Job Description

Notice how the job description includes the job function; knowledge, skills, and abilities required to do the job; education and experience required; and the physical requirements of the job.

Once the job description has been written, obtaining approval from the hiring manager is the next step. Then the HR professional can begin to recruit for the position. Before we discuss specific recruitment strategies, we should address the law and how it relates to hiring. This is the topic of Section 2.

CHAPTER 4 RECRUITMENT 69

Tips to Writing a Good Job Description

< Be sure to include the pertinent information:

< Title

< Department

< Reports to

< Duties and responsibilities

< terms of employment

< qualifications needed

< Think of the job description as a snapshot of the job.

< Communicate clearly and concisely.

< Make sure the job description is interesting to the right candidate applying for the job.

< Avoid acronyms.

< Don’t try to fit all job aspects into the job description.

< Proofread the job description.

Writing a Job Description

A short video on how to write an effective job description, with examples.

Human Resource Recall

Does your current job or past job have a job description? Did it closely match the tasks you actually performed?

K E Y T A K E A W A Y S

< The recruitment process provides the organization with a pool of qualified applicants. < Some companies choose to hire internal candidates—that is, candidates who are already working for the

organization. However, diversity is a consideration here as well.

< A job analysis is a systematic approach to determine what a person actually does in his or her job. This process might involve a questionnaire to all employees. Based on this analysis, an accurate job description and job specifications can be written. A job description lists the components of the job, while job specifications list the requirements to perform the job.

View the video online at: http://www.youtube.com/v/Zr6cnQfDtjk

70 HUMAN RESOURCE MANAGEMENT

Immigration Reform and Control Act (IRCA)

A law adopted by Congress in 1986 that requires employers to attest to their employees’ immigration status.

E X E R C I S E S

1. Do an Internet search for “job description.” Review three different job descriptions and then answer the following questions for each of the jobs:

a. What are the job specifications?

b. Are the physical demands mentioned?

c. Is the job description task based or competency based?

d. How might you change this job description to obtain more qualified candidates?

2. Why do the five steps of the recruitment process require input from other parts of the organization? How might you handle a situation in which the employees or management are reluctant to complete a job analysis?

2. THE LAW AND RECRUITMENT

L E A R N I N G O B J E C T I V E

1. Explain the Immigration Reform and Control Act (IRCA), Patriot Act, and equal employment op- portunity (EEO) laws and how they relate to recruiting.

One of the most important parts of HRM is to know and apply the law in all activities the HR depart- ment handles. Specifically with hiring processes, the law is very clear on a fair hiring that is inclusive to all individuals applying for a job. The laws discussed here are applied specifically to the recruiting of new employees.

2.1 Immigration Reform and Control Act The Immigration Reform and Control Act (IRCA) was adopted by Congress in 1986.[2] This law requires employers to attest to their employees’ immigration status. It also makes it illegal to hire or re- cruit illegal immigrants. The purpose of this law is to preserve jobs for those who have legal document- ation to work in the United States. The implications for human resources lie in the recruitment pro- cess, because before entering employees into the selection process (interviewing, for example), it is im- portant to know they are eligible to work in the United States. This is why many application forms ask, “Are you legally able to work in the United States?” Dealing with the IRCA is a balancing act, however, because organizations cannot discriminate against legal aliens seeking work in the United States.

The IRCA relates not only to workers you hire but also to subcontractors. In a subcontractor situ- ation (e.g., your organization hires an outside firm to clean the building after hours), your organization can still be held liable if it is determined your organization exercises control over how and when the subcontractors perform their jobs. In 2005, undocumented janitorial workers sued Walmart, arguing that the contracting company they worked for didn’t pay them a minimum wage.[3] Because the retailer controlled many of the details of their work, Walmart was considered to be a coemployer, and as a res- ult, Walmart was held responsible not only for back wages but for the fact their subcontractor had hired undocumented workers.

HR professionals must verify both the identity and employment eligibility of all employees, even if they are temporary employees. The INS I-9 form (Employment Eligibility Verification form) is the re- porting form that determines the identity and legal work status of a worker.

If an audit is performed on your company, you would be required to show I-9 forms for all your workers. If an employer hires temporary workers, it is important to manage data on when work visas are to expire, to ensure compliance. Organizations that hire illegal workers can be penalized $100 to $1,000 per hire. There is a software solution for management of this process, such as HR Data Man- ager. Once all data about workers are inputted, the manager is sent reminders if work authorization visas are about to expire. Employers are required to have the employee fill out the I-9 form on their first day of work, and the second section must be filled out within three days after the first day of employ- ment. The documentation must be kept on file three years after the date of hire or for one year after termination. Some states, though, require the I-9 form be kept on file for as long as the person is em- ployed with the organization.

In 2010, new rules about the electronic storage of forms were developed. The US Department of Homeland Security said that employees can have these forms electronically signed and stored.

CHAPTER 4 RECRUITMENT 71

Patriot Act

Signed in response to the September 11, 2001, attacks, the Patriot Act introduced legislative changes to enhance the federal government’s ability to conduct domestic and international investigations and surveillance activities.

FIGURE 4.4

The I-9 form must be completed by management within three days of hire and be kept for at least three years, but in some states, it must be kept on file for the duration of employment.

2.2 Patriot Act In response to the September 11, 2001, terrorist attacks against the United States, the Patriot Act was signed, introducing legislative changes to enhance the federal government’s ability to conduct domestic and international investigations and surveillance activities. As a result, employers needed to implement new procedures to maintain employee privacy rights while also creating a system that allowed for re- lease of information requested by the government.

The act also amended the Electronic Communications Privacy Act, allowing the federal govern- ment easier access to electronic communications. For example, only a search warrant is required for the government to access voice mail and e-mail messages.

The act also amended the Foreign Intelligence Surveillance Act. The government is allowed to view communications if an employee is suspected of terrorism, and the government does not have to reveal this surveillance to the employer.

It is prudent for HR professionals and managers to let potential employees know of these new re- quirements, before the hiring process begins.

How Would You Handle This?

Wrong Job Description

Aimee, a highly motivated salesperson, has come to you with a complaint. She states that she had her per- formance evaluation, but all the items on her evaluation didn’t relate to her actual job. In the past two years, she explains, her job has changed because of the increase of new business development using technology. How would you handle this?

72 HUMAN RESOURCE MANAGEMENT

bona fide occupational qualification (BFOQ)

A quality or attribute employers are allowed to consider when making decisions during the selection process.

How Would You Handle This? The author discusses the How Would You Handle This situation in this chapter at: https://api.wistia.com/v1/ medias/1371475/embed.

2.3 EEO Set of Laws We discuss Equal Employment Opportunity (EEO) laws in Chapter 3. They are worth mentioning again here in relation to the recruitment process. The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the task of enforcing federal employment discrimination laws. While there are restrictions on the type of company covered (companies with at least fifteen employees), the EEOC requires collection of data and investigates discrimination claims, again, for organizations with more than fifteen employees.

Under EEO law related to the recruitment process, employers cannot discriminate based on age (forty years or older), disability, genetic information, national origin, sex, pregnancy, race, and religion. In a job announcement, organizations usually have an EEO statement. Here are some examples:

1. (Company name) is fully committed to Equal Employment Opportunity and to attracting, retaining, developing, and promoting the most qualified employees without regard to their race, gender, color, religion, sexual orientation, national origin, age, physical or mental disability, citizenship status, veteran status, or any other characteristic prohibited by state or local law. We are dedicated to providing a work environment free from discrimination and harassment, and where employees are treated with respect and dignity.

2. (Company name) does not unlawfully discriminate on the basis of race, color, religion, national origin, age, height, weight, marital status, familial status, handicap/disability, sexual orientation, or veteran status in employment or the provision of services, and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford individuals with disabilities an equal opportunity to participate in all programs and activities.

3. It is the policy of (college name), in full accordance with the law, not to discriminate in employment, student admissions, and student services on the basis of race, color, religion, age, political affiliation or belief, sex, national origin, ancestry, disability, place of birth, general education development certification (GED), marital status, sexual orientation, gender identity or expression, veteran status, or any other legally protected classification. (College name) recognizes its responsibility to promote the principles of equal opportunity for employment, student admissions, and student services taking active steps to recruit minorities and women.

4. (Company name) will not discriminate against or harass any employee or applicant for employment on the basis of race, color, creed, religion, national origin, sex, sexual orientation, disability, age, marital status, or status with regard to public assistance. (Company name) will take affirmative action to ensure that all practices are free of such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, selection, layoff, disciplinary action, termination, rates of pay or other forms of compensation, and selection for training.

In addition to including the EEO policy in the job announcement, HR is required to post notices of EEOC policies in a visible part of the work environment (such as the break room).

Although the EEOC laws in hiring are clear about discrimination, an exception may occur, called the bona fide occupational qualification (BFOQ). BFOQ is a quality or attribute that is reasonably necessary to the normal operation of the business and that can be used when considering applicants. To obtain a BFOQ exception, a company must prove that a particular person could not perform the job duties because of sex, age, religion, disability, and national origin. Examples of BFOQ exceptions might include the following:

1. A private religious school may require a faculty member to be of the same denomination. 2. Mandatory retirement is required for airline pilots at a certain age. 3. A clothing store that sells male clothing is allowed to hire only male models. 4. If an essence of a restaurant relies on one sex versus another (e.g., Hooters), they may not be

required to hire male servers. However, many arguments for BFOQ would not be considered valid. For example, race has never been a BFOQ, nor has customers’ having a preference for a particular gender. Generally speaking, when go- ing through the recruitment process and writing job descriptions, assuming a BFOQ would apply might be a mistake. Seeking legal council before writing a job description would be prudent.

CHAPTER 4 RECRUITMENT 73

disparate impact

When an organization discriminates through the use of a process, affecting a protected group as a whole, rather than consciously intending to discriminate.

disparate treatment

When one person is intentionally treated differently than another, not necessarily impacting the larger protected group as a whole, as in disparate impact.

Other aspects to consider in the development of the job description are disparate impact and dis- parate treatment. These are the two ways to classify employment discrimination cases. Disparate im- pact occurs when an organization discriminates through the use of a process, affecting a protected group as a whole, rather than consciously intending to discriminate. Some examples of disparate im- pact might include the following:

1. Requirement of a high school diploma, which may not be important to employment, could discriminate against racial groups

2. A height requirement, which could limit the ability of women or persons of certain races to apply for the position

3. Written tests that do not relate directly to the job 4. Awarding of pay raises on the basis of, say, fewer than five years of experience, which could

discriminate against people older than forty

Disparate treatment, when one person is intentionally treated differently than another, does not ne- cessarily impact the larger protected group as a whole, as in disparate impact. The challenge in these cases is to determine if someone was treated differently because of their race or gender or if there was another reason for the different treatment. Here are two examples:

1. Both a male and a female miss work, and the female is fired but the male is not. 2. A company does not hire people of a certain race or gender, without a BFOQ.

Human Resource Recall

Can you think of other examples of disparate impact that might affect a certain protected group of people un- der EEOC?

The Concept of Disparate Impact

An attorney from Berkent Legal Services explains the concept of disparate impact.

View the video online at: http://www.youtube.com/v/Nzar2FXOhfA

74 HUMAN RESOURCE MANAGEMENT

K E Y T A K E A W A Y S

< IRCA stands for Immigration and Reform Act. This law requires all employers to determine eligibility of an employee to work in the United States. The reporting form is called an I-9 and must be completed and kept on file (paper or electronic) for at least three years, but some states require this documentation to be kept on file for the duration of the employee’s period of employment.

< The Patriot Act allows the government access to data that would normally be considered private—for example, an employee’s records and work voice mails and e-mails (without the company’s consent). The HR professional might consider letting employees know of the compliance with this law.

< The EEOC is a federal agency charged with ensuring discrimination does not occur in the workplace. They oversee the equal employment opportunity (EEO) set of laws. Organizations must post EEO laws in a visible location at their workplace and also include them on job announcements.

< Related to the EEOC, the bona fide occupational qualification (BFOQ) makes it legal to discriminate in hiring based on special circumstances—for example, requiring the retirement of airline pilots at a certain age due to safety concerns.

< Disparate impact refers to a policy that may limit a protected EEO group from receiving fair treatment. Disparate impact might include a test or requirement that negatively impacts someone based on protected group status. An example is requiring a high school diploma, which may not directly impact the job. Disparate treatment refers to discrimination against an individual, such as the hiring of one person over another based on race or gender.

E X E R C I S E S

1. Describe the difference between disparate treatment and disparate impact.

2. Explain a situation (other than the ones described in this section) in which a BFOQ might be appropriate. Then research to see if in the past this reasoning has been accepted as a BFOQ.

3. RECRUITMENT STRATEGIES

L E A R N I N G O B J E C T I V E

1. Explain the various strategies that can be used in recruitment.

Now that we have discussed development of the job analysis, job description, and job specifications, and you are aware of the laws relating to recruitment, it is time to start recruiting. It is important to mention, though, that a recruitment plan should be in place. This plan can be informal, but you should outline where you plan to recruit and your expected time lines. For example, if one of your methods is to submit an ad to a trade publication website, you should know their deadlines. Also of consideration is to ensure you are recruiting from a variety of sources to ensure diversity. Lastly, consider the eco- nomic situation of the country. With high unemployment, you may receive hundreds of applications for one job. In an up economy, you may not receive many applications and should consider using a variety of sources.

Some companies, such as Southwest Airlines, are known for their innovative recruitment methods. Southwest looks for “the right kind of people” and are less focused on the skills than on the personality of the individual.[4] When Southwest recruits, it looks for positive team players that match the under- dog, quirky company culture. Applicants are observed in group interviews, and those who exhibit en- couragement for their fellow applicants are usually those who continue with the recruitment process. This section will discuss some of the ways Southwest and many other Fortune 500 companies find this kind of talent.

CHAPTER 4 RECRUITMENT 75

Recruitment Videos at Zappos

Zappos has developed and posted a series of YouTube videos called “Why Do I Like Working at Zappos?” The videos show the culture of the organization and provide a great tool for recruitment.

3.1 Recruiters Some organizations choose to have specific individuals working for them who focus solely on the re- cruiting function of HR. Recruiters use similar sources to recruit individuals, such as professional or- ganizations, websites, and other methods discussed in this chapter. Recruiters are excellent at network- ing and usually attend many events where possible candidates will be present. Recruiters keep a con- stant pipeline of possible candidates in case a position should arise that would be a good match. There are three main types of recruiters:

1. Executive search firm. These companies are focused on high-level positions, such as management and CEO roles. They typically charge 10–20 percent of the first year salary, so they can be quite expensive. However, they do much of the upfront work, sending candidates who meet the qualifications.

2. Temporary recruitment or staffing firm. Suppose your receptionist is going on medical leave and you need to hire somebody to replace him, but you don’t want a long-term hire. You can utilize the services of a temporary recruitment firm to send you qualified candidates who are willing to work shorter contracts. Usually, the firm pays the salary of the employee and the company pays the recruitment firm, so you don’t have to add this person to your payroll. If the person does a good job, there may be opportunities for you to offer him or her a full-time, permanent position. Kelly Services, Manpower, and Snelling Staffing Services are examples of staffing firms.

3. Corporate recruiter. A corporate recruiter is an employee within a company who focuses entirely on recruiting for his or her company. Corporate recruiters are employed by the company for which they are recruiting. This type of recruiter may be focused on a specific area, such as technical recruiting.

A contingent recruiter is paid only when the recruiter starts working, which is often the case with tem- porary recruitment or staffing firms. A retained recruiter gets paid up front (in full or a portion of the fee) to perform a specific search for a company.

While the HR professional, when using recruiters, may not be responsible for the details of man- aging the search process, he or she is still responsible for managing the process and the recruiters. The job analysis, job description, and job specifications still need to be developed and candidates will still need to be interviewed.

Fortune 500 Focus

In 2009, when Amazon purchased Zappos for 10 million shares of Amazon stock (roughly $900 million in 2009), the strategic move for Amazon didn’t change the hiring and recruiting culture of Zappos. Zappos, again voted one of the best one hundred companies to work for by CNN Money[5] believes it all starts with the people they hire. The recruiting staff always asks, “On a scale of 1–10, how weird do you think you are?” This question ties directly to the company’s strategic plan and core value number three, which is “create fun and a

View the video online at: http://www.youtube.com/v/kwAMMMxfWbE

76 HUMAN RESOURCE MANAGEMENT

little weirdness.” Zappos recruits people who not only have the technical abilities for the job but also are a good culture fit for the organization. Once hired, new employees go through two weeks of training. At the end of the training, newly hired employees are given “the offer.” The offer is $2,000 to quit on the spot. This ensures Zappos has committed people who have the desire to work with the organization, which all begins with the recruiting process.

3.2 Campus Recruiting Colleges and universities can be excellent sources of new candidates, usually at entry-level positions. Consider technical colleges that teach cooking, automotive technology, or cosmetology. These can be great sources of people with specialized training in a specific area. Universities can provide people that may lack actual experience but have formal training in a specific field. Many organizations use their campus recruiting programs to develop new talent, who will eventually develop into managers.

For this type of program to work, it requires the establishment of relationships with campus com- munities, such as campus career services departments. It can also require time to attend campus events, such as job fairs. IBM, for example, has an excellent campus recruiting program. For IBM, recruiting out of college ensures a large number of people to grow with the organization.[6]

Setting up a formal internship program might also be a way to utilize college and university con- tacts. Walgreens, for example, partners with Apollo College to recruit interns; this can result in full- time employment for the motivated intern and money saved for Walgreens by having a constant flow of talent.

3.3 Professional Associations Professional associations are usually nonprofit organizations whose goal is to further a particular pro- fession. Almost every profession has its own professional organization. For example, in the field of hu- man resources, the Society for Human Resource Management allows companies to post jobs relating to HR. The American Marketing Association, also a professional organization, allows job postings as well. Usually, there is a fee involved, and membership in this association may be required to post jobs. Here are some examples of professional associations:

1. Professional Nursing Association 2. Society of Women Engineers 3. International Federation of Accountants 4. Institute of Management Consultants 5. United Professional Sales Association 6. National Lawyers Guild 7. National Organization of Minority Architects 8. International Federation of Journalists (union) 9. International Metalworkers Federation (union)

10. Association of Flight Attendants (union) Labor unions can also be excellent sources of candidates, and some unions also allow job postings on their website. We will discuss unions further in Chapter 12. The key to using this as a successful re- cruitment strategy is to identify the organizations that relate to your business and to develop relation- ships with members in these organizations. This type of networking can help introduce you to people in your industry who may be looking for a job or know of someone who needs a job.

Human Resource Recall

What do you think is the best way to determine the right set of recruitment methods for your organization? What methods would be best for your current job?

CHAPTER 4 RECRUITMENT 77

FIGURE 4.5 Overview of the Steps to the Recruitment Process

3.4 Websites If you have ever had to look for a job, you know there are numerous websites to help you do that. From the HR perspective, there are many options to place an ad, most of which are inexpensive. The down- side to this method is the immense number of résumés you may receive from these websites, all of

78 HUMAN RESOURCE MANAGEMENT

which may or may not be qualified. Many organizations, to combat this, implement software that searches for keywords in résumés, which can help combat this problem. We discuss more about this in Chapter 5. Some examples of websites might include the following:

< Your own company website < Yahoo HotJobs < Monster < CareerBuilder < JobCentral

3.5 Social Media Facebook, Twitter, LinkedIn, YouTube, and MySpace are excellent places to obtain a media presence to attract a variety of workers. In 2007, Sodexo, which provides services such as food service and facilities management, started using social media to help spread the word about their company culture. Since then, they have saved $300,000 on traditional recruiting methods.[7] Sodexo’s fifty recruiters share up- dates on Twitter about their excellent company culture. Use of this media has driven traffic to the ca- reers page on Sodexo’s website, from 52,000 to 181,000.

The goal of using social media as a recruiting tool is to create a buzz about your organization, share stories of successful employees, and tout an interesting culture. Even smaller companies can util- ize this technology by posting job openings as their status updates. This technique is relatively inex- pensive, but there are some things to consider. For example, tweeting about a job opening might spark interest in some candidates, but the trick is to show your personality as an employer early on. Accord- ing to Bruce Morton of Allegis Group Services, using social media is about getting engaged and having conversations with people before they’re even thinking about you as an employer.[8] Debbie Fisher, an HR manager for a large advertising agency, Campbell Mithun, says that while tweeting may be a good way to recruit people who can be open about their job hunt, using tools such as LinkedIn might be a better way to obtain more seasoned candidates who cannot be open about their search for a new job, because of their current employment situation. She says that LinkedIn has given people permission to put their résumé online without fear of retribution from current employers.

Creativity with a social media campaign also counts. Campbell Mithun hired thirteen interns over the summer using a unique twist on social media. They asked interested candidates to submit thirteen tweets over thirteen days and chose the interns based on their creativity.

Many organizations, including Zappos (Video 4.4), use YouTube videos to promote the company. Within the videos is a link that directs viewers to the company’s website to apply for a position in the company.

Facebook allows free job postings in Facebook Marketplace, and the company Facebook page can also be used as a recruiting tool. Some organizations decide to use Facebook ads, which are paid on a “per click” or per impression (how many people potentially see the ad) basis. Facebook ad technology allows specific regions and Facebook keywords to be targeted.[9] Some individuals even use their per- sonal Facebook page to post status updates listing job opportunities and asking people to respond privately if they are interested.

3.6 Events Many organizations, such as Microsoft, hold events annually to allow people to network and learn about new technologies. Microsoft’s Professional Developer Conference (PDC), usually held in July, hosts thousands of web developers and other professionals looking to update their skills and meet new people.

Some organizations, such as Choice Career Fairs, host job fairs all over the country; participating in this type of job fair may be an excellent way to meet a large variety of candidates. Other events may not be specifically for recruiting, but attending these events may allow you to meet people who could possibly fill a position or future position. For example, in the world of fashion, Fashion Group Interna- tional (FGI) hosts events internationally on a weekly basis, which may allow the opportunity to meet qualified candidates.

3.7 Special/Specific Interest Groups (SIGs) Special/specific interest groups (SIGs), which may require membership of individuals, focus on specific topics for members. Often SIGs will have areas for job posting, or a variety of discussion boards where jobs can be posted. For example, the Women in Project Management SIG provides news on project

CHAPTER 4 RECRUITMENT 79

nepotism

A preference for hiring relatives of current employees.

employee referral program (ERP)

A type of recruitment strategy that involves a planned program to access current employee referrals.

management and also has a place for job advertisements. Other examples of SIGs might include the following:

< Oracle Developer SIG < African American Medical Librarians Alliance SIG < American Marketing Association Global Marketing SIG < Special Interest Group for Accounting Information Systems (SIG-ASYS) < Junior Lawyer SIG

Recruiting using SIGs can be a great way to target a specific group of people who are trained in a spe- cific area or who have a certain specialty.

3.8 Referrals Most recruiting plans include asking current employees, “Who do you know?” The quality of referred applicants is usually high, since most people would not recommend someone they thought incapable of doing the job. E-mailing a job opening to current employees and offering incentives to refer a friend can be a quick way of recruiting individuals. Due to the success of most formalized referral programs, it is suggested that a program be part of the overall HRM strategic plan and recruitment strategy. However, be wary of using referrals as the only method for recruitment, as this can lead to lack of di- versity in a workplace. Nepotism means a preference for hiring relatives of current employees, which can also lead to lack of diversity and management issues in the workplace.

For example, the University of Washington offers $1,200 any time a current employee successfully refers a friend to work at their medical centers. Usually, most incentives require the new employee to be hired and stay a specified period of time. Some examples of incentives that can be used to refer a friend might include the following:

< A gift card to the employee < A financial incentive < Raffles for most referrals

These types of programs are called employee referral programs (ERPs) and tend to generate one of the highest returns on investment per hire.[10] To make an ERP program effective, some key compon- ents should be put into place:

1. Communicate the program to existing employees. 2. Track the success of the program using metrics of successful hires. 3. Be aware of the administrative aspect and the time it takes to implement the program effectively. 4. Set measureable goals up front for a specialized program.

Accenture recently won the ERE Media Award for one of the most innovative ERPs. Its program has increased new hires from referrals from 14 percent to 32 percent, and employee awareness of the pro- gram jumped from just 20 percent to 99 percent.[11] The uniqueness of their program lies with the re- ward the employee receives. Instead of offering personal financial compensation, Accenture makes a donation to the charity of the employee’s choice, such as a local elementary school. Their program also seeks to decrease casual referrals, so the employee is asked to fill out an online form to explain the skills of the individual they are referring. The company has also developed a website where current employ- ees can go to track the progress of referrals. In addition, employee referral applications are flagged on- line and fast-tracked through the process—in fact, every referral is acted upon. As you can see, Accen- ture has made their ERP a success through the use of strategic planning in the recruitment process.

80 HUMAN RESOURCE MANAGEMENT

TABLE 4.1 Advantages and Disadvantages of Recruiting Methods

Recruitment Method Advantages Disadvantages

ExpensiveOutside recruiters, executive search firms, and temporary employment agencies

Can be time saving

Less control over final candidates to be interviewed

Can hire people to grow with the organization Time consumingCampus recruiting/educational institutions

Plentiful source of talent Only appropriate for certain types of experience levels

Industry specific May be a fee to place an ad

Professional organizations and associations

Networking May be time- consuming to network

Diversity friendly Could be too broad

Low cost

Websites/Internet recruiting

Quick

Be prepared to deal with hundreds of résumés

Time consumingSocial media Inexpensive

Overwhelming response

Can be expensiveEvents Access to specific target markets of candidates

May not be the right target market

SIG Industry specific Research required for specific SIGS tied to jobs

Higher quality people Concern for lack of diversity

Referrals

Retention Nepotism

Unsolicited résumés and applications

Inexpensive, especially with time-saving keyword résumé search software

Time consuming

Internet and/or traditional advertisements

Can target a specific audience Can be expensive

For smaller organizations, it means someone does not have to administer compensation and benefits, as this is handled by leasing company

Possible costsEmployee leasing

Can be a good alternative to temporary employment if the job is permanent

Less control of who interviews for the position

The potential ability to recruit a more diverse workforce

No cost, since it’s a government agency

Public employment agencies

2,300 points of service nationwide

May receive many résumés, which can be time-consuming

May not apply to some jobs or industries

Labor unions Access to specialized skills

Builds relationship with the union

3.9 Costs of Recruitment Part of recruitment planning includes budgeting the cost of finding applicants. For example, let’s say you have three positions you need to fill, with one being a temporary hire. You have determined your advertising costs will be $400, and your temporary agency costs will be approximately $700 for the month. You expect at least one of the two positions will be recruited as a referral, so you will pay a re- ferral bonus of $500. Here is how you can calculate the cost of recruitment for the month:

cost per hire = advertising costs + recruiter costs + referral costs + social media costs + event costs.

CHAPTER 4 RECRUITMENT 81

yield ratio

The percentage of applicants from one source who make it to the next stage in the selection process.

$400 + $700 + $500 = $1600/3 = $533 recruitment cost per hire.

In addition, when we look at how effective our recruiting methods are, we can look at a figure called the yield ratio. A yield ratio is the percentage of applicants from one source who make it to the next stage in the selection process (e.g., they get an interview). For example, if you received two hundred résumés from a professional organization ad you placed, and fifty-two of those make it to the interview state, this means a 26 percent yield (52/200). By using these calculations, we can determine the best place to recruit for a particular position. Note, too, that some yield ratios may vary for particular jobs, and a higher yield ratio must also consider the cost of that method, too. For an entry-level job, campus re- cruiting may yield a better ratio than, say, a corporate recruiter, but the corporate recruiter may have higher cost per hires.

After we have finished the recruiting process, we can begin the selection process. This is the focus of Chapter 5.

K E Y T A K E A W A Y S

< HR professionals must have a recruiting plan before posting any job description. The plan should outline where the job announcements will be posted and how the management of candidate materials, such as résumés, will occur. Part of the plan should also include the expected cost of recruitment.

< Many organizations use recruiters. Recruiters can be executive recruiters, which means an outside firm performs the search. For temporary positions, a temporary or staffing firm such as Kelly Services might be used. Corporate recruiters work for the organization and function as a part of the HR team.

< Campus recruiting can be an effective way of recruiting for entry-level positions. This type of recruiting may require considerable effort in developing relationships with college campuses.

< Almost every profession has at least one professional association. Posting announcements on their websites can be an effective way of targeting for a specific job.

< Most companies will also use their own website for job postings, as well as other websites such as Monster and CareerBuilder.

< Social media is also a popular way to recruit. Usage of websites such as Twitter and Facebook can get the word out about a specific job opening, or give information about the company, which can result in more traffic being directed to the company’s website.

< Recruiting at special events such as job fairs is another option. Some organizations have specific job fairs for their company, depending on the size. Others may attend industry or job-specific fairs to recruit specific individuals.

< SIGs, or special/specific interest groups, are usually very specialized. For example, female project managers may have an interest group that includes a discussion board for posting of job announcements.

< Employee referrals can be a great way to get interest for a posted position. Usually, incentives are offered to the employee for referring people they know. However, diversity can be an issue, as can nepotism.

< Our last consideration in the recruitment process is recruitment costs. We can determine this by looking at the total amount we have spent on all recruiting efforts compared to the number of hires. A yield ratio is used to determine how effective recruiting efforts are in one area. For example, we can look at the number of total applicants received from a particular form of media, and divide that by the number of those applicants who make it to the next step in the process (e.g., they receive an interview).

E X E R C I S E S

1. Perform an Internet search on professional associations for your particular career choice. List at least three associations, and discuss recruiting options listed on their websites (e.g., do they have discussion boards or job advertisements links?).

2. Have you ever experienced nepotism in the workplace? If yes, describe the experience. What do you think are the upsides and downsides to asking current employees to refer someone they know?

82 HUMAN RESOURCE MANAGEMENT

4. CASES AND PROBLEMS

Chapter Summary

< The recruitment process provides the organization with a pool of qualified applicants. < Some companies choose to hire internal candidates—that is, candidates who are already working for

the organization. However, diversity is a consideration here as well.

< A job analysis is a systematic approach to determine what a person actually does in his or her job. This process might involve a questionnaire to all employees. Based on this analysis, an accurate job description and job specifications can be written. A job description lists the components of the job, while job specifications list the requirements to perform the job.

< IRCA stands for Immigration and Reform Act. This law requires all employers to determine eligibility of an employee to work in the United States. The reporting form is called an I-9 and must be completed and kept on file (paper or electronic) for at least three years, but some states require this documentation to be kept on file for the duration of the employee’s period of employment.

< The Patriot Act allows the government access to data that would normally be considered private, for example, an employee’s records and work voice mails and e-mails (without the company’s consent). The HR professional might consider letting employees know of the compliance with this law.

< The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with ensuring discrimination does not occur in the workplace. They oversee the EEO set of laws. Organizations must post EEO laws in a visible location at their workplace and also include them on job announcements.

< Related to the EEOC, the bona fide occupational qualification (BFOQ) makes it legal to discriminate in hiring based on special circumstances, for example, requiring the retirement of airline pilots at a certain age due to safety concerns.

< Disparate impact refers to a policy that may limit a protected EEO group from receiving fair treatment. Disparate impact might include a test or requirement that negatively impacts someone based on protected group status. An example is requiring a high school diploma, which may not directly impact the job. Disparate treatment refers to discrimination against an individual, such as the hiring of one person over another based on race or gender.

< HR professionals must have a recruiting plan before posting any job description.

< Many organizations use recruiters. Recruiters can be executive recruiters, which means an outside firm performs the search. For temporary positions, a temporary or staffing firm such as Kelly Services might be used. Corporate recruiters work for the organization and function as a part of the HR team.

< Campus recruiting can be an effective way of recruiting for entry-level positions. This type of recruiting may require considerable effort in developing relationships with college campuses.

< Almost every profession has at least one professional association. Posting announcements on their websites can be an effective way of targeting for a specific job.

< Most companies will also use their own website for job postings, as well as other websites such as Monster and CareerBuilder.

< Social media is also a popular way to recruit. Usage of websites such as Twitter and Facebook can get the word out about a specific job opening, or give information about the company, which can result in more traffic being directed to the company’s website.

< Recruiting at special events such as job fairs is another option. Some organizations have specific job fairs for their company, depending on the size. Others may attend industry or job specific fairs to recruit specific individuals.

< SIGs or special/specific interest groups are usually very specialized. For example, female project managers may have an interest group that includes a discussion board for posting of job announcements.

< Employee referrals can be a great way to get interest for a posted position. Usually, incentives are offered to the employee for referring people they know. However, diversity can be an issue, as can nepotism.

< Our last consideration in the recruitment process is recruitment costs. We can determine this by looking at the total amount we have spent on all recruiting efforts compared to the number of hires. A yield ratio is used to determine how effective recruiting efforts are in one area. For example, we can look at the number of total applicants received from a particular form of media, and divide that by the number of those applicants who make it to the next step in the process (e.g., they receive an interview).

CHAPTER 4 RECRUITMENT 83

Chapter Summary The author provides a video summary of the chapter.

Chapter Case

Recruitment Statistics

As the assistant to the human resources director at Tally Group, you normally answer phones and set appoint- ments for the director. You are interested in developing skills in HRM, and one day, your HR director presents you with a great opportunity for you to show what you can do. She asks you to analyze last year’s recruitment data to determine which methods have worked best. As you look at the data, you aren’t sure how to start, but you remember something on this from your HRM class in college. After reviewing the data in your book, you feel confident to analyze these numbers. Please go ahead and perform calculations on these numbers, then provide answers to the questions that follow.

Tally Group Recruiting Numbers, 2012

Method Total Number Recruited Yearly Cost ($)

Temporary placement firms 8 3,200

Campus recruiting 2 1,500

Professional association ads 10 4,500

Social media/company website 33 300

Job fair 3 500

Referrals 26 26,000

1. Prepare a report summarizing your findings for the recruitment cost per hire and yield ratio for each type of recruiting method.

2. Make a recommendation to your human resource director on where the department should spend more of its time recruiting.

Team Activities

1. Students should be in teams of four or five. Choose a recruitment method from Table 4.2 and perform research on additional advantages and disadvantages of that method and then present ideas to the class.

2. Visit the Dictionary of Occupational Titles (http://www.occupationalinfo.org) and view the list of job titles presented on the website. Create a sample job description for a job title of your team’s choice.

View the video online at: http://app.wistia.com/embed/medias/0132ab879d

84 HUMAN RESOURCE MANAGEMENT

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2.

3. 4.

5.

6.

7.

8.

9.

10.

11.

ENDNOTES

J. Richard Hackman and Greg R. Oldham, “Motivation through the Design of Work: Test of a Theory,” Organizational Behavior and Human Performance 16, no. 2 (August 1976): 250–79.

U.S. Citizenship and Immigration Services website. Accessed January 17, 2011. http://www.uscis.gov/portal/site/uscis/ menuitem.5af9bb95919f35e66f614176543f6d1a/ ?vgnextchannel=b328194d3e88d010VgnVCM10000048f3d6a1RCRD&vgnextoid =04a295c4f635f010VgnVCM1000000ecd190aRCRD.

Zavala v. Wal-Mart, No. 03-5309, DC NJ (2005).

W. P. Carey, “Employees First: Strategy for Success,” Knowledge @ W. P. Carey, W. P. Carey School of Business, Arizona State University, June 26, 2008, accessed July 11, 2011, http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1620.

Cheryl Sowa, “Going Above and Beyond,” America’s Best, September/October 2008, accessed July 11, 2011, http://www.americasbestcompanies.com/magazine/articles/ going-above-and-beyond.aspx.

“University Students,” IBM, n.d., accessed January 17, 2011, http://www-03.ibm.com/ employment/start_university.html.

Sodexo, “Sodexo Earns SNCR Excellent Award for Innovative Use of Social Media,” news release, December 2, 2009, accessed January 17, 2011, http://www.sodexousa.com/usen/newsroom/press/press09/ sncrexcellenceaward.asp.

Anna Lindow, “How to Use Social Media for Recruiting,” Mashable, June 11, 2011, ac- cessed July 12, 2011, http://mashable.com/2011/06/11/social-media-recruiting.

Tiffany Black, “How to Use Social Media as a Recruiting Tool,” Inc., April 22, 2010, ac- cessed July 12, 2011, http://www.inc.com/guides/2010/04/ social-media-recruiting.html.

Dave Lefkow, “Improving Your Employee Referral Program and Justifying Your In- vestment,” ERE.net, February 21, 2002, accessed July 12, 2011, http://www.ere.net/ 2002/02/21/ improving-your-employee-referral-program-and-justifying-your-investment.

John Sullivan, “Amazing Practices in Recruiting—ERE Award Winners 2009,” pt. 1, ERE.net, April 13, 2009, accessed July 12, 2011, http://www.ere.net/2009/04/13/ amazing-practices-in-recruiting-ere-award-winners-2009-part-1-of-2.

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