Creative thinking and synthesis.

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CHAPTER 6

Recruiting

High-Quality Talent

© 2020 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives

Explain strategic recruiting decisions regarding employment branding, outsourcing, and other related issues

Identify distinct labor markets and describe their unique characteristics

Explain how technology and social networking affect recruiting processes for employers and candidates

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Learning Objectives (continued)

Identify three internal recruiting sources and issues associated with their use

Highlight five external recruiting sources

Define recruiting measurement and metrics and illustrate how analytics can be used to improve talent acquisition

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Recruiting

Talent acquisition: Finding and hiring high-quality talent needed to meet the organization’s workforce needs

Recruiting: Process of generating a pool of qualified applicants for organizational jobs

Recruiting connects companies to sources of potential employees; selection involves picking the best supplier of talent

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Strategic Components of Effective Recruiting

Quality of talent

Quantity of talent

Business strategies

Labor market dynamics

Time limits

Financial limits

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Strategic Recruiting and H R Planning

Understanding how business strategies impact how and where to recruit

Identifying keys to success in the labor market

Determining the balance between quality and quantity of workers

Recognizing the limits of time and money for recruiting

Measuring recruiting effectiveness and efforts

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Assigning Responsibility for Recruiting

Recruitment by employer or outsourcing

Recruitment process outsourcing (R P O)

Streamlines hiring and reduces costs

Professional employer organizations (P E Os) and employee leasing

Employee leasing: Employer signs an agreement with the P E O, after which staff is hired by P E O and leased to the employer

Leasing firm writes paychecks, pays taxes, and implements H R policies

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Employment Brand and Employer Choice

Employment brand: Distinct image of the organization that captures the essence of the company to engage employees and outsiders

Employer of choice: Desirable places to work because of employee engagement, job satisfaction, pay, benefits, flexible schedules, corporate social responsibility, etc.

Receive more applicants

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Core versus Flexible Staffing

Core workers: Employees who are foundational to the business

They work year-round

Flexible workers: Employees who are hired on an “as-needed” basis

Labor costs vary based on product demand and other economic conditions

Challenges: Low motivation, low performance, and increased costs

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Core versus Flexible Staffing (continued 1)

Temporary workers: Employers can hire their own temporary staff members or make use of agencies on an hourly, daily, or weekly basis

Purpose of hiring temporary workers:

Screen individuals for full-time, regular employment

Match the firm’s needs with the right workers

Avoid costs associated with benefits

Enhance staffing flexibility

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Core versus Flexible Staffing (continued 2)

Independent contractors: Workers who perform specific services on a contract basis

Obtain significant savings because benefits are not provided to these individuals

Companies can mix and match core, temporary, and contract workers to accommodate changing business needs

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Figure 6-3: Combination of Core and Flexible Workers

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Advantages and Disadvantages of Using Flexible Staffing Alternatives

Advantages

Organizations can hire workers without incurring high costs

Reduces time spent on recruiting efforts such as screening and initial training of workers

Gives the organization staffing flexibility

Reduces the organization’s legal compliance requirements

Organization saves money by not providing employee benefits

Disadvantages

Flexible workers may perform less effectively than core workers

Flexible workers may lack motivation because there are few opportunities for long-term employment and job advancement

Time limits on temporary work contracts prevent significant enhancements in individual skills and knowledge

Flexible workers in high demand fields may command premium wages

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Recruiting and E E O

Equal employment opportunity (E E O) considerations

Equal employment laws and regulations

Equal Employment Opportunity Commission (E E O C) guidelines

Employer must reduce underrepresentation of protected-class members

Interviews, ads, and company materials should show diversity

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Figure 6-5: 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, particularly retirees

Single parents

Workers with disabilities

Welfare-to-work workers

Long-term unemployed

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Recruiting Diversity (continued)

Gender-neutral recruiting

Gender-balanced adjectives in recruiting ads are encouraged

Generational differences in recruiting

Baby boomers prefer traditional posting methods

Generation X prefers flexible work arrangements, child care, and other work-life balance programs

Generation Y prefers technology, meaningful work, and opportunity to contribute to policies and arrangements

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Understanding Labor Markets

Labor markets: Supply pool from which employers attract employees

Elements of the labor market

Labor force population

Applicant population

Applicant pool

Selected applicants

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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

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Recordkeeping of Applications

Employers are required to track and report affirmative action plans

Applicant tracking system makes the recruiting process more effective

Employers store information to avoid claims of impropriety

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Unemployment Rates and Labor Market

Unemployment rates vary with the business cycle

Unemployment rates vary depending on particular skill needs

Highly skilled workers are recruited differently

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Different Labor Markets

Industry and occupational labor markets

These jobs represent the health care, retail, and education industries

Educational and technical labor markets

Looks at labor markets by considering the educational and technical qualifications that define the people being recruited

Geographic labor markets

Markets can be local, area or regional, national, or international

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Recruiting Source Choices: Internal versus External

Internal recruitment: Promoting from within the organization

External recruitment: Hiring from outside the organization

Possible strategy for organizations that face rapidly changing competitive environments and conditions

Promote from within if a qualified applicant exists or go to external sources if not

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Technology for Recruiting

Technology is a vital element 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

LinkedIn: A professional social networking site

Twitter: A social networking site

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Technology for Recruiting (continued)

Web-based recruiting

Internet job boards

Professional/career websites

Employer websites

E-video: Recruitment videos and video interviewing

Gamification: Using game thinking and software to engage people in solving problems

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Legal Issues in Internet Recruiting

Legal issues in Internet recruiting

The use or misuse of screening software

Collection of required applicant information

Exclusion of individuals based on unlawful information

Proper identification of “real” applicants

Maintaining confidentiality and privacy

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Technology in Recruiting

Advantages

Cost-effective recruiting

Lesser recruiting time

Broader exposure and diverse pool of applicants

Recruiters can reach passive job seekers

Reduced response time

Disadvantages

Additional work for H R staff

Need for expensive specialized software

Access limited or unavailable to some applicants

Difficulty faced by individuals with disabilities

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Internal Recruiting Sources

Organizational databases

Information on existing employees such as knowledge, skills, and abilities (K S As) are entered into a database

Employee data sorted by occupational fields, areas of career interests, previous work histories, and other variables

These databases can be linked to H R activities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Internal Recruiting Sources (continued 1)

Job posting: System in which employer provides notices of job openings, and employees respond by applying for specific openings

Employee-focused recruiting

Reliable sources are current and former employees

They are familiar with the employer

They will not refer unqualified individuals

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Internal Recruiting Sources (continued 2)

Ways of recruiting

Current employee referrals

Rerecruiting former employees and applicants

Seeking out former employees and recruiting them again

Boomerangs

Alumni networks

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Pros and Cons of Internal Recruiting

Pros

Improves morale of promotee

Provides more accurate performance history

Lowers recruiting costs

Offers hope and motivation to employees

Facilitates succession planning, future promotions, and career development

Improves organization fit because current employees understand the company’s culture, hierarchy, and policies/practices

Cons

“Inbreeding” may lead to less diverse workforce

Tunnel vision thinking may lead to a lack of new ideas

May lower morale for individuals not promoted

Employees may engage in “political” infighting for promotions

Employees promoted may need to be trained or developed

Some managers may block the internal movement of good performers

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External Recruiting Sources

Media sources

Newspapers, magazines, television, radio, and billboards are widely used in external recruiting

Internet media sources such as postings, ads, videos, and webinars are also used

Effectiveness of evaluating media ads

Track responses by using different contact names, e-mail addresses, or phone number codes in each ad

Follow up to know the sources for employees who stayed longer and performed better

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External Recruiting Sources (continued 1)

Competitive recruiting sources

Professional and trade associations, trade publications, and competitors

Online applications and in-store kiosks

Interviews scheduled in-store

Employment announcements in customer bills and newsletters

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External Recruiting Sources (continued 2)

Employment agencies (public and private)

State-sponsored: Operate branch offices in cities and do not charge fees to applicants or employers

Private: Operate in most cities

Charge a fee collected from employee or employer

Headhunters: Employment agencies that focus their efforts on executive, managerial, and professional positions

Contingency firms charge a fee after a candidate is hired

Retainer firms charge a set fee whether or not the contracted search is successful

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External Recruiting Sources (continued 3)

Labor unions: A labor pool is available through a union

Workers can be dispatched from the hiring hall to particular jobs to meet the needs of employers

Job fairs and creative recruiting: Bring employers and potential job candidates together

Virtual job fairs

Used to recruit college students

Convenient and time efficient

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Educational Institutions and Recruiting

Colleges and universities are significant sources of employees

Desirable attributes of college recruits: Desirable G P A, real-world experience

Internships: Provide real-world experience that is important to employers

School recruiting: High school and vocational/technical schools are valuable sources

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Advantages and Disadvantages of External Recruiting

Advantages

New employees bring new perspectives that can be applied to business opportunities and challenges

Training new hires may be cheaper and faster because of prior external experience

New hires are likely to have fewer internal political issues/challenges in the firm

New hires may bring new industry insights and expertise

Potentially larger applicant pool generated by search efforts

Disadvantages

The firm may not select someone who will fit well with the job and the organization

The process may cause morale problems for internal candidates not selected

New employees may require longer adjustment periods and orientation efforts

The recruiting process may take more time and resources

Recruiters often must evaluate more applications

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College Recruiting: Considerations for Employers

Organizational budget and college graduate pay levels

Experiences with prior college graduates and interns

College graduate programs, faculty links, and current/anticipated job openings

Reputation of firm at college and with previous graduates

College placement office reputation, assistance, programs

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Recruiting Evaluation and Metrics

Evaluating recruiting efforts

Evaluating recruiting quantity and quality

Evaluating recruiting satisfaction

Evaluating the time required to fill openings

Evaluating the cost of recruiting

Recruiting measurement areas

Recruits

Quantity/Quality

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Recruiting Evaluation and Metrics (continued)

Recruitment satisfaction analyses

Time to fill openings

Cost per recruiting method

Process metrics

Yield ratios

Selection rates

Acceptance rates

Success base rates

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General Recruiting Process Metrics

Yield ratios: Comparison of the number of applicants at one stage of recruiting with the number at the next stage

Selection rate: Percentage hired from a given group of candidates

Acceptance rate: Percentage of applicants hired divided by the total number of applicants offered jobs

Success base rate: Long-term measure of recruiting effectiveness

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Figure 6-13: Sample Recruiting Evaluation Pyramid

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Improving Recruiting Effectiveness

Effective recruiting activities

Mining résumés and tracking applicants

Using an employer career website

Providing an internal mobility system

Providing realistic job previews and responsive recruiting

Recruiting effectiveness can be improved by using evaluation data to:

Target different applicant pools

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Improving Recruiting Effectiveness (continued)

Tap broader labor markets

Change recruiting methods

Improve internal handling and interviewing of applicants

Train recruiters and managers

Emphasis on positive aspects of the job and employers can enhance recruiting effectiveness

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H U M A N R E S O U R C E

MANAGEMENT

V A L E N T I N E M E G L I C H M A T H I S J A C K S O N

S I X T E E N T H E D I T I O N