HRM Case
Chapter 5: Recruiting Job Candidates
The Recruiting Process
Matches employees with jobs and creates a reasonable pool of qualified candidates for a job opening.
Process should be efficient because costs of recruiting, selecting, and training are often more than 100% of employees’ annual salaries.
Thumb rule: 15 to 25 qualified candidates for each job opening.
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External Forces Acting On Recruiting Efforts
Labor Market
The external pool of candidates from which recruits are drawn.
Supply and Demand and the Unemployment Rate
If unemployment is high, the job of recruiting is generally easier.
Competitors
A high number of competitors means a more difficult recruiting environment.
Social and Legal Environments
The social environment affects the ability to recruit new people.
The legal environment requires abiding by all EEO laws.
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Organizational Recruiting Considerations
What Policies to Set: The policies will determine the actions on the four other recruiting considerations.
When to Recruit: We recruit when we need someone to fill a job.
Alternatives to Recruitment: Do we have a viable and financially feasible way to solve our shortage other than recruitment?
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Organizational Recruiting Considerations
Reach of the Recruiting Effort: We need to identify our effective labor market.
Social Media Recruiting: Social media can provide recruiters with much more reach.
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Internal Recruiting
Internal Recruiting: Filling job openings with current employees or individuals known by current employees
Internal Recruiting Sources
Promotions or lateral moves from within
Promotions leave vacancies that may need to be recruited externally
Employee referrals
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Internal Recruiting: Advantages
Promotions and requested lateral moves increase organizational commitment and job satisfaction
Recruits know the “back channels” of the organization.
Recruit has interest in organization, knowledge of operations and processes, and comfort continuing to work in the company.
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Internal Recruiting: Advantages
Organization has existing knowledge of internal employees.
Internal is usually quicker than external recruiting and saves money.
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Internal Recruiting: Disadvantages
Applicant pool is significantly smaller.
Hiring from within opens another position to fill.
Success in one job doesn’t mean success in a different job.
External candidates may have better qualifications.
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Internal Recruiting: Disadvantages
Internal employees may feel entitled to the job.
It may create or perpetuate resistance to change.
It may stifle creativity and innovation if the individual is already immersed in the organization’s culture.
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
External Recruiting
External Recruiting: Engaging individuals from labor market outside the firm to apply for a job.
It can be accomplished in an open or targeted manner.
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
External Recruiting Sources
Walk-ins
Educational institutions
Employment agencies
Temporary agencies
Public (state employment) agencies
Private agencies
General
Contingency and retained agencies
Retained search firms/executive recruiters
Advertising
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Exhibit 5-2 Major Recruiting Sources
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
External Recruiting: Advantages
Avoids creating or perpetuating resistance to change
Finds individuals with complex skill sets who are not available internally
Lowers training costs by hiring someone with the requisite skills
Increases organizational diversity
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
External Recruiting: Disadvantages
Disruption of introducing different ways of operating
Takes more time and training costs
May adversely affect current employees’ motivation and satisfaction due to a perceived inability to move up in the organization
External hires have no history with the firm
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Challenges and Constraints in Recruiting
Budgetary Constraints
Policy Constraints and Organizational Image
Job Characteristics and Realistic Job Previews (RJP)
The Recruiter – Candidate Interaction
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Exhibit 5-2: Evaluation of Recruiting Programs
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Trends and Issues in HRM
Talent Wars
A global war for talent has become a reality.
Global Knowledge Workers
We will increasingly see a much larger number of contingent workers as a segment of the overall workforce.
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Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.