Job analysis
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14-Recruitment.pptxRecruitment
Why is recruitment important?
Unemployment is generally around 6% or higher, so there must be more people than jobs
If that’s the case, it should be no trouble to find people to fill jobs, right?
It’s easy enough to find people who WANT to work, but it’s much more challenging to find the ideal person for a job
Smart businesses use media such as Linkedin to establish relationships with talented potential employees before they enter the job market
Recruitment planning
Recruitment planning begins with a clear specification of HR needs
This is answered in the process of workforce planning (talent inventories, demand forecasts, etc.)
These questions must be answered in the planning phase:
Whom should an organization recruit?
Where should potential applicants be recruited?
When should recruiting begin?
Who should do the recruiting?
What message should be sent to potential applicants?
Yield ratios
A proportion of potential employees are eliminated moving through the recruitment and selection process
Yield ratios: the ratios of leads to invites, invites to interviews, interviews (etc.) to offers, and offers to hires
These are usually based on past data (if it’s available)
From these, you can start with the number of hires you’ll need and work your way back to how many individuals should be contacted
If your hires to offer ratio is 1:2 and you need 40 hires, you should give 80 offers
If your offers to interview ratio is 2:3, you should give 120 interviews
And so on and so forth, all the way back to the initial number of leads needed
Yield ratios
If no past data on recruitment exists, use educated guesses for yield ratios
Lean towards overestimation
A similar process can be done with time lapse data (the time between each phase of recruitment) to estimate how long it will take from the point an individual is recruited to when he or she begins working
Other considerations
Delays between the phases of recruitment are perceived very negatively by candidates, especially those who are high quality
It is important to factor in costs/benefits of time lost and quality of the new hire
For example: It’s one thing to know that a organization’s sales openings take an average of 75 days to fill
It’s another thing entirely to know that the difference between filling them in 75 versus 50 days costs the company $30 million revenue
Or that a 20 percent improvement in quality of hire will result in an $18 million gain from productivity increases
Other considerations
Technology can greatly decrease time lapses
Posting jobs on the Internet saves an average of 6 days in company’s hiring cycle of 43 days
Another four days are saved if the company takes online applications instead of paper ones
More than a week is saved if the company screens and processes applications electronically
A positive organizational image can greatly increase the number of applicants
Labor markets
Yield ratios and time lapses may vary depending on the job being hired for and the labor market
Labor market
A geographical area within which the forces of supply (people looking for a job) interact with the forces of demand (employers looking for people) and thereby determine the price of labor
Labor markets
Organizations may have to extend searches to other markets if their original market tightens
Internal labor markets
Bringing employees into entry-level positions and then promoting them up to positions with more responsibility (e.g., manager)
These have weakened considerably in recent years
Estimating costs
The costs of recruitment can be very high (up to 18 months’ pay for the position being hired; not including costs from selection and training!)
Different sources have different costs per hire
Private employment and executive search agencies are generally the most expensive
Advertising and Internet responses, write-ins, and internal transfers and promotions are next highest
Employee referrals, direct applications (mail or Web based), and walk-ins are the cheapest sources
Costs of recruiters (i.e., how many are needed) themselves must be determined
Recruiters should be knowledgeable about the position being hired for
Characteristics of recruiters (personable, trustworthy, informative, competent) do affect candidates
Operations
After recruitment needs are defined, recruitment should begin internally
Talent inventories are useful in this phase
Note that some managers may be reluctant to have their subordinates moved
External sources
Advertising—newspapers, the Internet, technical/professional journals, television, radio, etc.
Employment agencies—federal and state agencies, private agencies, executive search firms, management consulting firms, and agencies specializing in temporary help
Educational institutions—technical and trade schools, colleges and universities, co-op work/study programs, and alumni placement offices
Professional organizations—technical society meetings, conventions, and placement services
Military—out-processing centers and retired officer associations’ placement services
Career fairs
Direct application (walk-ins, write-ins, online applicants)
Operations
Diversity
Minority applicants consistently use formal recruitment sources rather than informal ones
Informal sources such as employee referrals can work to the employer’s advantage if the workforce is comprised of members from different gender, racial, and ethnic groups
Traditional text and picture-based messages about diversity have less impact on minority candidates than do video/audio testimonials by present minority employees
Referrals
Many companies offer employees bonuses for successful referrals
Example: GE pays employees $2000 or more if a person they referred is hired
Applicants who were referred are much more likely to complete the selection process than those who discover a job posting elsewhere
Operations
Hiring Management Systems
Several companies offer computerized systems for analyzing applicants
The systems generate reports that help organization make decisions
Using these can cut the cost per hire up to 50% and shortened hiring time by 48%
Evaluation of recruiting
Different phases of recruiting can be evaluated with different metrics
Cost of operations, cost per hire, cost per hire by source, acceptance/offer ratio, offer/interview ratio, etc.
Total résumés received, résumés by source, quality of résumé by source, source yield and source efficiency
Time lapse between recruiting stages by source, time lapse between recruiting stages by acceptance versus rejection
Geographical sources of candidates, individual recruiter activity, individual recruiter efficiency
Biographical data analyses against acceptance/rejection data
Analysis of postvisit and rejection questionnaires, analysis of reasons for acceptance and rejection of job offers
Salary offered—acceptances versus rejections
Placement-test scores of hires versus rejections, placement-test scores versus observed performance
Recruitment should also be tied into future criteria (e.g., performance)
Applicant perspectives
Most applicants:
Have an incomplete and/or inaccurate understanding of what a job opening involves
Are not sure what they want from a position
Do not have much self-insight with regard to their knowledge, skills, and abilities
Cannot accurately predict how they will react to the demands of a new position
A lot of applicants start with the internet
94% of Fortune 500 companies use their corporate sites for recruiting
Websites like Monster.com allow applicants to search for all job openings for a particular job family
Interviews
Some interviews are strictly for recruitment; others serve both recruitment and selection purposes
Applicant perspectives
Work environment and organizational image influence applicants’ attraction to a company
Applicants prefer decentralized organizations
Performance-based pay is preferred over seniority-based pay
Organizational image may be enhanced by simply providing more information (including product or service advertisements)
Realistic job previews (RJPs)
All organizations try to make themselves seem like a good place to work, which inflates expectations
RJPs provide a realistic view of what it is like to work for an organization
Should be conducted to reduce pessimistic expectations and overly optimistic expectations
RJPs are likely to have the greatest impact when the applicant:
Can be selective about accepting a job offer
Has unrealistic job expectations
Would have difficulty coping with job demands without the RJP
Job acceptance rates tend to be lower, but turnover also decreases
