HRM Term paper
Recruiting High-Quality Talent
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Learning Outcomes
Describe what is recruiting, outline the elements that are part of a strategic recruiting strategy
Describe the methods firms use to recruit externally and internally
List some of the ways firms can use to improve their recruiting and the metrics they use to do so
Explain why diverse recruitment are important to companies
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What is recruiting?
Recruiting is the process by which organizations locate and attract individuals to fill job vacancies.
Recruiting connects companies to sources of employees; selection involves picking the best supplier of talent
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Significance of recruitment in modern world
How to calculate recruitment costs for budget planning
https://resources.workable.com/tutorial/recruitment-costs-budget
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Employee Recruitment Process
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Establish Recruitment Objectives
Considerations:
Number of open positions to be filled.
Date by which positions should be filled.
Number of applications desired.
Type of applicants sought:
Level of education.
Knowledge, skills and abilities.
Interests and values.
Diversity.
Job performance goals for new hires.
Expected new-hire retention rate.
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Elements of a Recruiting Strategy
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• What type of individuals should be targeted? • Where can these people be found? • When should the recruitment campaign begin? • How can the targeted individuals best be reached? • What recruitment message should be communicated? • What type of recruiters should be used? • What should be the nature of a site visit? • What should a job offer entail?
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Assigning Responsibility for Recruiting
Recruiting by employer or outsourced
Recruitment process outsourcing (RPO)
Professional employer organizations (PEOs) and employee leasing
Employee leasing: Employer signs an agreement with the PEO
Staff is hired by PEO and leased to employer
Leasing firm pays wages, pays taxes, and handles HRM
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Employment Branding
Employment brand: Distinct image of the organization that captures the essence of the company to engage employees and outsiders
Attracting Top Talent with a Strong Employer Brand
Employer of choice
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Employer of choice
: Desirable places to work because of employee engagement, satisfaction, pay, benefits, schedules, social responsibility, etc.
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Combination of Core and Flexible Workers
Core workers: Employees that are foundational to the business
Flexible Workers: Employees that are hired on an “as needed” basis
Advantages
Challenges
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Independent contractors
Independent contractors: Workers who perform specific services on a contract basis
Independent contractors vs regular employees:
Behavioral: Does the company control or have the right to control how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer?
Type of Relationship: Are there written contracts or employee type benefits?
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Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
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Advantages and Disadvantages of Using Flexible Staffing Alternatives
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Understanding Labor Markets
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Labor markets: Supply pool from which employers attract employees
Elements of the labor market:
Labor force population: All individuals who are available for selection if all possible recruitment strategies are used
Applicant population: Subset of the labor force population that is available for selection using a particular recruiting approach
Applicant pool: All persons who are actually evaluated for selection
Labor force population: All individuals who are available for selection if all possible recruitment strategies are used
Applicant population: Subset of the labor force population that is available for selection using a particular recruiting approach
Applicant pool: All persons who are actually evaluated for selection
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How to recruit?
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Recruiting Source Choices: Internal versus External
Internal recruitment: Promoting from within the organization
External recruitment: Hiring from outside the organization
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Possible strategy for organizations that face rapidly changing competitive environments and conditions:
Promote from within if a qualified applicant exists
Go to external sources if not
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Internal Recruiting Sources
Organizational Databases
Internal job posting
Company intranet
Employee referrals
Rerecruiting former employees and applicants
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Organizational Databases
Information on existing employees like knowledge, skills, and abilities (KSA) are entered into a database
Employee data sorted by occupational fields, education, areas of career interests, previous work histories, and other variables
These databases can be linked to HR activities
Job posting is the process of announcing job openings to all employees. Some organizations have developed computerized versions of job announcements that are sent out as e-mails to all employees and some publish employment newsletters or flyers. The announcement should contain information about the position, the required qualifications and instructions for applying.
The important issue in job posting is that the job announcement is made available to all employees. Adequate job posting can ensure that minority workers and other disadvantaged groups are aware of opportunities within the organization. HR must ensure that all employees have an equitable opportunity to apply for the jobs that are available. Employee cynicism can occur when jobs are posted but the organization has already selected a strong internal candidate for the position. Such practices create resentment and mistrust among employees when they believe the job posting is just a formality with little real opportunity for advancement.
Employee Referrals: Current employees can play an important role in recruiting new employees and some organizations pay a bonus to employees for successful referrals. There is a downside to extensive use of employee referrals. The EEOC compliance manual issued in 2006 updated guidance on the prohibition of discrimination under Title VII of the Civil Rights Act of 1964. The manual clearly warns that relying on word-of-mouth recruiting may generate applicant pools that do not reflect the diversity of the labor market. Therefore, it would seem prudent to use employee referral sparingly.
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Discussion: Employee Referrals
What do you think about employee referrals?
Does your organization have a policy on nepotism?
What are the drawbacks and advantages you perceive with this practice?
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Nepotism: Hiring relatives.
Does your organization have a policy on nepotism?
May be discriminatory.
Must ensure individuals are not in supervisory positions managing their own relatives.
May create issues of favoritism.
Be careful of civil rights violations. In many states, it is illegal to discriminate in hiring practices based on a person’s marital status. Many organizations have nepotism policies, so find out where your employer stands on the issue. When hiring relatives, most employers require family members to work in different areas to prevent issues of favoritism and possible morale problems among other employees. It is never appropriate for family members to be in supervisory positions where they are required to manage their own relatives.
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Pros and Cons of Internal Recruiting
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External Recruiting Methods
Media Sources
Employment Agencies
Labor Unions
Job Fairs
Educational Institutions
Competitive Recruiting Sources
Professional and trade associations, trade publications, and competitors
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Advantages and Disadvantages of External Recruiting
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Do You Know?
Recruitment: True or False
1.____ It is estimated that replacing a full-time private-sector employee costs at least 25 percent of that employee’s total annual compensation.
2.____ When the economy in your area is down and there is significant unemployment, you may have to offer increased compensation or benefits incentives to attract quality applicants as you will be in stiff competition with other employers to attract qualified applicants.
3.____ The ADA requires accommodation by employers so that a disabled applicant has equal opportunity to apply for job openings, regardless of the nature of the accommodation.
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The strength of the economy and labor market conditions will significantly affect your organization’s ability to attract and retain top-level employees. When the economy is strong with little unemployment, you may have to compete with other employers for a limited number of skilled employees. This may require increased compensation or benefit incentives to attract quality applicants. The reverse may be true in a soft economy with high levels of unemployment. The problem then is not a shortage of qualified applicants; instead, the problem is managing a huge number of applications that must be pared down to find a few potential good hires.
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Do You Know? (Cont.)
4.____ Even though Internet recruiting may speed up the application process, it still requires trained HR staff to screen all applications and administer selection tests.
5.____ Many organizations use promotion from within as a motivation tool and a reward for good work or longevity with the organization.
6.____ Generally, the more technically specific the job, the broader the geographic area of recruitment.
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Evaluating Recruiting Efforts
Evaluating recruiting quality and quantity
Evaluating recruiting satisfaction
Evaluating the time required to fill openings
Evaluating the cost of recruiting
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Recruiting metrics
Helps understand which recruiting sources work best for different employees
Can be used to see whether sufficient numbers of targeted population groups are being attracted
For example, one area of concern in recruiting might be protected category
persons. In Chicago, a network-based recruiting firm received only 16 black
and 4 Hispanic applicants out of 276 persons for a customer service job.
Yet Chicago has 37% blacks and 26% Hispanics in its population. Clearly,
the efforts to increase recruiting in these racial/ethnic groups needed major
attention.63
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Recruitment Metrics
Time-to-fill
Metric that refers to the number of days from when a job opening is approved to the date a person is chosen for the job
Quality-of-fill
Metric that measures how well new hires are performing, and their retention levels
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Time-to-fill
Lower time-to-fill statistics are better
Trade-off has to be made between the time to fill a position and the quality of the candidates needed for the position
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**Recruitment Metrics (Cont.)
Yield ratio
Compare the number of applicants at one stage of the recruiting process with the number at the next stage
Yield ratio =
For instance:
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Used to determine how many total applicants a firm needs to attract and advance to different stages in the hiring process to fill different jobs
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Sample Recruiting Evaluation Pyramid
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Recruitment Metrics (Cont.)
Acceptance rate
Percentage of applicants who accept a firm's jobs after being offered them
Cost of recruitment =
Selection Rate: Percentage hired from a given group of candidates
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Acceptance rate: Percentage of applicants who accept a firm's jobs after being offered them
Lower acceptance rates will require a firm and its HR personnel to determine why employees are declining offers
Applicant tracking system (ATS): Software application recruiters use to post job openings, screen résumés and up-loaded profiles, contact via e-mail potential candidates for interviews, and track the time, costs, and other metrics related to hiring people
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How to Make Recruiting More Effective?
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Increasing Recruiting Effectiveness
Effective recruiting activities:
Résumé mining
Applicant tracking
Employer career website
Internal mobility system
Realistic job previews
Timely responses
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What to Include in an Effective Recruiting Ad
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Increasing Recruiting Effectiveness
Recruiting effectiveness can be increased by using the evaluation data to:
Target different applicant pools
Tap broader labor markets
Change recruiting methods
Improve internal handling and interviewing of applicants
Train recruiters and managers
Recruiters can emphasize positive aspects of the job/employer
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Technology for Recruiting
Social Media and Networking
Particularly helpful for finding passive job candidates
Passive job candidates: Qualified individuals who aren’t actively looking for work but might be interested if the right job comes along
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LinkedIn—a professional social networking site
Twitter—social networking site
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Technology for Recruiting
Web-Based Recruiting
E-Video: Recruitment videos, video interviewing
Gamification: Using game thinking and software to engage people in solving problems
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Web-Based Recruiting
Internet job boards
Professional/Career websites
Employer websites
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Recruiting and EEO
Equal employment opportunity (EEO) considerations:
Employer must reduce underrepresentation of protected-class members
Interviews, ads, and company materials should show diversity
A comparison of 4 job ads(1,2,3,4)
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Equal employment opportunity (EEO) considerations:
EEO laws and regulations
EEOC guidelines
Employer must reduce underrepresentation of protected-class members
Interviews, ads, and company materials should show diversity
Diversity in employment brand increases applicants
advertisements should contain wording about being an equal opportunity employer, or even more specific designations such as EEO/M-F/AA/ADA.
Bilingual Job Requirement Not DiscriminatoryAndy, who is only fluent in English, applies for a custodial supervisor position with a school district in Texas. The job description states that a preferred qualification is that candidates speak fluently in Spanish and English in order to communicate effectively with the custodial staff, many of whom speak only English or only Spanish. During Andy's job interview with a school district representative, Andy acknowledges that he does not speak Spanish. The school district does not hire Andy because he is not fluent in Spanish and English. Instead, the school district promotes Anne, a Hispanic woman who was employed as a custodial foreman for the school district, to the custodial supervisor position. Anne is fluent in both English and Spanish. The school district representative suggests to Andy that he should apply for a different custodial position that does not require fluency in Spanish. Under these circumstances, the school district's preference for a bilingual supervisory employee would not support a Title VII discrimination claim based on race or national origin by the non-bilingual applicant.[
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Recruiting and Diversity Considerations
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Recruiting Diversity
Nontraditional labor pools:
Persons with different racial/ethnic backgrounds
Workers over 40 years of age, retirees
Workers with disabilities
Gender-Neutral Recruiting
Generational Differences in Recruiting
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Nontraditional labor pools:
Persons with different racial/ethnic backgrounds
Workers over 40 years of age, retirees
Single parents
Workers with disabilities
Welfare-to-work workers
Long-term unemployed
Gender-Neutral Recruiting
Gender-balanced adjectives in recruiting ads are encouraged
Generational Differences in Recruiting
Baby boomers prefer traditional postings
Generation X prefers work-life balance programs
Generation Y prefers technology, meaningful work, and opportunity to contribute to policies and arrangements
Recruiting should consider reaching all generations
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Developing a Diverse Talent Pool
Recruiting and developing women
Why we have too few women leaders | Sheryl Sandberg
Recruiting and developing minorities
Advancing minorities to management
“Skills over schools” movement
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Developing a Diverse Talent Pool (Cont.)
Recruiting the disabled
The Ability Factor: Employing people with disabilities makes good business sense
Recruiting veterans
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https://www.military.com/hiring-veterans/resources/how-to-recruit-veterans-for-your-business.html
Individuals with disabilities is another group employers should consider recruiting. Individuals with disabilities often have a harder time finding a job, so they frequently are easier to hire.51 More importantly, employers like Giant Food, Citizens Energy Group and Starbucks have found that individuals with disabilities often make superior employees. For example, Walgreens found that individuals with disabilities who worked in its distribution centers performed their jobs as well as or better than other workers and that their absenteeism rate was approximately 30 percent lower.52 In terms of the cost of accommodations, the Job Accommodation Network found that for 60 percent of those hired, there was no financial cost to employers. For individuals who do require an accommodation, the cost is typically less than $600.
https://askjan.org/Erguide/Three.htm#D2
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Developing a Diverse Talent Pool (Cont.)
Recruiting older employees
Staff part-time and full-time positions that are otherwise hard to fill
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Targeting seniors Older individuals are often overlooked as a source for recruits, and this is a mistake. Home Depot specifically targets retired contractors and craftsmen for recruitment because of their expert home improvement knowledge. In a similar way, H&R Block recruits retired accountants to work during tax season.47 In addition to having desirable job related knowledge to share, older workers also offer the advantages of being willing to work part time and not needing health insurance if they qualify for Medicare. Some employers have found that even for those older workers who do not qualify for Medicare, the higher health care costs are offset by lower rates of absenteeism and turnover.48 Employers recruiting older workers should carefully consider how to bring job openings to their attention. Although online sites geared to seniors such as YourEncore.com exist, they may not be the best option. Instead, organizations might consider partnering with AARP or other senior-oriented groups, visiting seniororiented community centers, or posting job notices in retirement communities.
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Developing a Diverse Talent Pool (Cont.)
Recruit individuals with criminal record
Pre-Employment Inquiries and Arrest & Conviction
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Proving that an exclusion is "job related and consistent with business necessity" is not burdensome. The employer can make this showing if, in screening applicants for criminal conduct, it (1) considers at least the nature of the crime, the time elapsed since the criminal conduct occurred, and the nature of the specific job in question, and (2) gives an applicant who is excluded by the screen the opportunity to show why he should not be excluded.
https://www.shrm.org/hr-today/news/hr-magazine/1016/pages/hiring-job-seekers-with-criminal-histories.aspx
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