Creative thinking and synthesis.
CHAPTER 6
Recruiting
High-Quality Talent
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© 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
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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
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