Assignment 1: Job Description
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NoeFHRM7e_ch05_lecture_accessiblechapter5powerpoint.pptxChapter 5 PLANNING FOR AND RECRUITING HR
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Chapter 5, Planning for and Recruiting HR, describes how organizations carry out human resource planning. lays out steps that go into developing and implementing a human resource plan, focusing especially on recent trends and practices, including downsizing, employing temporary workers, and outsourcing. The chapter explores the process of recruiting, describes the process by which organizations look for people to fill job vacancies and the usual sources of job candidates and discuses the role of recruiters.
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What Do I Need to Know?
LO 5-1 Discuss how to plan for human resources needed to carry out the organization’s strategy.
LO 5-2 Determine the labor demand for workers in various job categories.
LO 5-3 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
LO 5-4 Describe recruitment policies organizations use to make job vacancies more attractive.
LO 5-5 List and compare sources of job applicants.
LO 5-6 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
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After reading and discussing this chapter, you should be able to:
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The Process of HR Planning 1 of 10
HR planning helps meet business objectives and gain a competitive advantage over competitors.
Three stages: forecasting, goal setting and strategic planning, and program implementation and evaluation.
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LO 5-1 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Trends and events that affect the economy also create opportunities and problems in obtaining HR. To prepare for and respond to these challenges, organizations engage in HR planning to the numbers and types of employees the organization will require to meet its objectives. The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply of and demand for various human resources. Based on whether a surplus or a shortage is expected, the planner sets goals and creates a strategy for achieving those goals. The organization then implements its HR strategy and evaluates the results.
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Figure 5.1: Overview of the HR Planning Process
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Figure 5.1 shows the HR planning process. HR tries to determine supply of and demand for various types of human resources.
The process consists of three stages:
Forecasting
Goal setting and strategic planning
Program implementation and evaluation
Forecasting - The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortage or surpluses.
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The Process of HR Planning 2 of 10
Forecasting
Attempts to determine supply and demand for various types of HR to predict areas within the organization where there will be labor shortages or surpluses.
Forecasting steps
Forecast labor demand
Determine labor supply
Determine labor surplus or shortage
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The first step in HR planning is forecasting.
The primary goal is to predict which areas of the organization will experience labor shortages or surpluses.
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The Process of HR Planning 3 of 10
Forecasting Labor Demand
Trend Analysis
Constructing and applying statistical models that predict labor demand for next year, given relatively objective statistics from previous year.
Leading Indicators
Objective measures that accurately predict future labor demand.
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Usually an organization forecasts demand for specific job categories or skill areas. After identifying the relevant job categories or skills, the planner investigates the likely demand for each. The planner must forecast whether the need for people with the necessary skills and experience will increase or decrease. There are several ways of making such forecasts.
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The Process of HR Planning 4 of 10
Determine Labor Supply
Transitional matrix
A chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period.
It answers two questions:
“Where did people in each job category go?”
“Where did people now in each job category come from?”
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Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. Determining expected shortages and surpluses allows the organization to plan how to address these challenges. Once a company has forecast the demand for labor, it needs an indication of the firm’s labor supply.
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Table 5.1 Transitional Matrix: Example for an Auto Parts Manufacturer
| 2016 | ||||||||
| 2013 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1. Sales manager | .95 | .05 | ||||||
| 2. Sales representative | .05 | .60 | .35 | |||||
| 3. Sales apprentice | .20 | .50 | .30 | |||||
| 4. Assistant plant manager | .90 | .05 | .05 | |||||
| 5. Production manager | .10 | .75 | .15 | |||||
| 6. Production assembler | .10 | .80 | .10 | |||||
| 7. Clerical | .70 | .30 | ||||||
| 8. Not in organization | .00 | .20 | .50 | .00 | .10 | .20 | .30 |
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Table 5.1 is an example of a transitional matrix.
Transitional Matrix - A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.
This example lists job categories for an auto parts manufacturer. The jobs listed at the left were held in 2011; the numbers at the right show what happened to the people in 2014. The numbers represent proportions. For example, .95 means 95% of the people represented by a row in the matrix. The column headings under 2014 refer to the row numbers. The first row is sales managers, so the numbers under column (1) represent people who became sales managers. Reading across the first row, we see that 95 of the people who were sales managers in 2011 are still sales managers in 2014. The other 5% correspond to position (8), “Not in organization,” meaning the 5% of employees who are not still sales managers have left the organization. In the second row are sales representatives. Of those who were sales reps in 2011, 5% were promoted to sales manager, 60% are still sales reps, and 35% have left the organization. In row (3), half (50%) of sales apprentices are still in that job, but 20% are now sales reps and 30% have left the organization. This pattern of jobs shows a career path from sales apprentice to sales representative to sales manager. Of course, not everyone is promoted, and some of the people leave instead. Reading down the columns provides another kind of information: the sources of employees holding the positions in 2014. In the first column, we see that most sales managers (95%) held that same job three years earlier. The other 5% were promoted from sales representative positions. Skipping over to column (3), half the sales apprentices on the payroll in 2014 held the same job three years before, and the other half were hired from outside the organization. This suggests that the organization fills sales manager positions primarily through promotions, so planning for this job would focus on preparing sales representatives. In contrast, planning to meet the organization’s needs for sales apprentices would emphasize recruitment and selection of new employees. Matrices such as this one are extremely useful for charting historical trends in the company’s supply of labor. More important, if conditions remain somewhat constant, they can also be used to plan for the future.
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The Process of HR Planning 5 of 10
Determine Labor Surplus or Shortage
Based on forecasts for labor demand and supply, planner can compare figures to determine whether there will be a shortage or surplus of labor for each job category.
Determining expected shortages and surpluses allows the organization to plan how to address these challenges.
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Issues related to a labor surplus or shortage can pose serious challenges for the organization.
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The Process of HR Planning 6 of 10
Goal Setting and Strategic Planning
Numerical goals focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses.
Goals should come directly from analysis of supply and demand.
For each goal, organization must choose one or more HR strategies.
Organizations should retain and attract employees who provide a core competency (what makes it better than competitors).
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This is the second step in HR planning as shown in the middle of Figure 5.1. The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand. They should include a specific figure indicating what should happen with the job category or skill area and a specific timetable for when the results should be achieved.
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The Process of HR Planning 7 of 10
Core Competency
A set of knowledge and skills that make the organization superior to competitors and create value for customers.
Organizations are most likely to benefit from hiring and retaining employees who provide a core competency.
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Another consideration in choosing an HR strategy is whether the employees needed will contribute directly to the organization’s success. Organizations are most likely to benefit from hiring and retaining employees who provide a core competency—that is, a set of knowledge and skills that make the organization superior to competitors and create value for customers. At a store, for example, core competencies include choosing merchandise that shoppers want and providing shoppers with excellent service. For other work that is not a core competency—say, cleaning the store and providing security—the organization may benefit from using HR strategies other than hiring full-time employees. For example, Cold Stone Creamery employees give their company the competitive advantage with their “entertainment factor.” The company is known to seek out employees who like to perform and then “audition” rather than interview potential employees.
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The Process of HR Planning 8 of 10
Downsizing - Four Objectives
Reduce Costs
Replace Labor with Technology
Mergers and Acquisitions
Move to More Economical Location
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Downsizing is the planned elimination of large numbers of personnel with the goal of enhancing the organization’s competitiveness to promote future competitiveness. Four objectives of downsizing include:
Reducing costs—Labor is a large part of a company’s total costs, so downsizing is an attractive place to start cutting costs.
Replacing labor with technology—Closing outdated factories, automating, or introducing other technological changes reduces the need for labor. Often, the labor savings outweigh the cost of the new technology.
Mergers and acquisitions—When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members.
Moving to more economical locations—Some organizations move from one area of the United States to another, especially from the Northeast and Midwest to the South and the mountain regions of the West. For example, managers looking for ways to cut costs at H. J. Heinz observed that the facility in Pocatello, Idaho, was no longer mainly processing locally grown potatoes. Rather, in response to shifting consumer demands, it was making products for which 70% of the ingredients came from east of the Mississippi (traveling 1,000 miles or so) and other ingredients were from Denver (almost 600 miles away). Heinz decided to close the Idaho facility and have its Ohio factory handle the production of all frozen foods, because Ohio is more centrally located for both ingredients and customers.4 Other moves have shifted jobs to other countries, including Mexico, India, and China, where wages are lower. Although downsizing has an immediate effect on costs, much of the evidence suggests that it hurts long-term organizational effectiveness. The more a company tries to compete through its human resources, the more layoffs hurt productivity. Many companies wind up rehiring. Downsizing campaigns often eliminate people who turn out to be irreplaceable. Downsizing efforts often fail because employees who survive the purge be- come self-absorbed and afraid to take risks. Motivation drops because any hope of future promotion— or any future—with the company dies. Many employees start looking for other employment opportunities. The negative publicity associated with a downsizing campaign can also hurt the company’s image in the labor market, so it is harder to recruit employees later. Many problems with downsizing can be reduced with better planning.
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Table 5.2 HR Strategies for Addressing a Labor Shortage or Surplus (1 of 2)
| Options For Reducing a Surplus | ||
| Option | Speed of Results | Amount of Suffering Caused |
| Downsizing | Fast | High |
| Pay reductions | Fast | High |
| Demotions | Fast | High |
| Transfers | Fast | Moderate |
| Work sharing | Fast | Moderate |
| Hiring freeze | Slow | Low |
| Natural attrition | Slow | Low |
| Early retirement | Slow | Low |
| Retraining | Slow | Low |
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Table 5.2 describes each option for managing labor shortages and surpluses in terms of important factors to consider. These factors are speed, amount of suffering caused, and ability to change later.
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Table 5.2 HR Strategies for Addressing a Labor Shortage or Surplus (2 of 2)
| Options For Avoiding a Shortage | ||
| Option | Speed of Results | Ability To Change Later |
| Overtime | Fast | High |
| Temporary employees | Fast | High |
| Outsourcing | Fast | High |
| Retrained transfers | Slow | High |
| Turnover reductions | Slow | Moderate |
| New external hires | Slow | Low |
| Technological innovation | Slow | Low |
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This table describes each option for managing labor shortages and surpluses in terms of important factors to consider. These factors are speed, amount of suffering caused, and ability to change later.
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Test Your Knowledge
A public accounting firm of 250 employees realizes they have a surplus of 15 support personnel (not auditors). What should they do?
Hire temporary workers
Offer early retirement
Downsize people in those positions
Wait for attrition and implement a hiring freeze for those positions
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A public accounting firm realizes they have a surplus of support personnel (not auditors). What should they do?
Hire temporary workers
Offer early retirement
Downsize people in those positions
Wait for attrition and implement a hiring freeze for those positions
There may be more than one good answer depending on the student’s rationale. D would have the least negative impact but may take a long time. “B” Early retirement would likely entice more than just support personnel and perhaps more than just 15 people which could cause a labor shortage. Downsizing would be fast but could create morale problems and a poor public image although with the small numbers this may not be much of a problem.
“A” is not appropriate until the surplus is managed.
Average age is growing
As the average age of many workers in skilled trades grows, the coming demand for workers in many trades is expected to outstrip supply in the United States. There is a potential for employers in some areas to experience a labor shortage because of this.
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Ask students:
“How can HR prepare itself for this reality?”
“What should be done now to avoid the shortage?”
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Options for Avoiding a Shortage
Reducing hours
Overtime and expanded hours
Outsourcing
Temporary workers
Contract workers
Early-retirement
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Overtime therefore is best suited for short-term labor shortages.
Temporary employment gives them flexibility they need to operate efficiently when demand for their products changes rapidly. If an employer believes a higher level of demand will persist, it often can hire the temps as permanent workers.
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The Process of HR Planning 9 of 10
Implementing and Evaluating the HR Plan
Organizations must hold individuals accountable for achieving goals.
They must also have authority and resources needed to accomplish those goals.
Regular progress reports should be issued.
Evaluation of results should look at actual numbers and identify which parts of planning process contributed to success or failure.
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For whatever HR strategies are selected, the final stage of HR planning involves implementing the strategies and evaluating the outcomes.
This stage is represented by the bottom part of Figure 5.1. organization must hold some individual accountable for achieving the goals. That person also must have the authority and resources needed to accomplish those goals. It is also important that this person issue regular progress reports, so the organization can be sure that all activities occur on schedule and that the early results are as expected. Implementation that ties planning and recruiting to the organization’s strategy and to its efforts to develop employees becomes a complete program of talent management. In evaluating the results, the most obvious step is checking whether the organization has succeeded in avoiding labor shortages or surpluses. Along with measuring these numbers, the evaluation should identify which parts of the planning process contributed to success or failure.
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The Process of HR Planning 1 of 10
Apply HR Planning to Affirmative Action
Workforce Utilization Review
Comparison of employees in protected groups with proportion that each group represents in relevant labor market.
Steps in a workforce utilization review are identical to steps in HR planning process.
Organization must assess current utilization patterns, then forecast how they are likely to change in near future.
If analysis forecast underutilization of certain groups, then goals and a plan will be established.
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Meeting affirmative action goals requires that employers carry out an additional level of HR planning aimed at those goals. The organization looks at the representation of subgroups in its labor force.
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Recruiting Human Resources
Role of HR recruitment is to build a supply of potential new hires that the organization can draw on if need arises.
Recruiting
Any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
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LO 5-4 Describe recruitment policies organizations use to make job vacancies more attractive.
The goals of recruiting (encouraging qualified people to apply for jobs) and selection (deciding which candidates would be the best fit) are different enough that they are most effective when performed separately, rather than combined as in a job interview that also involves selling candidates on the company. The goals of recruiting (encouraging qualified people to apply for jobs) and selection (deciding which candidates would be the best fit) are different enough that they are most effective when per- formed separately, rather than combined as in a job interview that also involves selling candidates on the company.
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Figure 5.2: Three Aspects of Recruiting
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All companies have to make decisions in three areas of recruiting: As shown in Figure 5.2, these aspects of recruiting have different effects on whom the organization ultimately hires. Personnel policies influence the characteristics of the positions to be filled. Recruitment sources influence the kinds of job applicants an organization reaches. And the nature and behavior of the recruiter affect the characteristics of both the vacancies and the applicants. Ultimately, an applicant’s decision to accept a job offer—and the organization’s decision to make the offer—depend on the match between vacancy characteristics and applicant characteristics.
Personnel policies
Recruitment sources
Characteristics and behavior of the recruiter
These aspects of recruiting have different effects on whom the organization ultimately hires.
This is shown in Figure 5.2.
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Personnel Policies
Internal versus external recruiting
Lead-the-market pay strategies
Employment-at-will policies
Image advertising
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An organization’s personnel policies are its decisions about how it will carry out Management, including how it will fill job vacancies.
Each of these strategies have a particular set of pros and cons. Policies should be evaluated as to their ability to support the organization’s long-term strategy.
Internal versus external recruiting—Organizations with policies to “promote from within” try to fill upper-level vacancies by recruiting candidates internally—that is, finding candidates who already work for the organization. Opportunities for advancement make a job more attractive to applicants and employees. Decisions about internal versus external recruiting affect the nature of jobs, recruitment sources, and the nature of applicants, as we will describe later in the chapter.
• Lead-the-market pay strategies—Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a “lead-the-market” approach to pay—that is, pay more than the current market wages for a job. Higher pay can also make up for a job’s less desirable features, such as working on a night shift or in dangerous conditions. Organizations that compete for applicants based on pay may use bonuses, stock options, and other forms of pay besides wages and salaries. Chapters 12 and 13 will take a closer look at these and other decisions about pay.
• Employment-at-will policies—Within the laws of the state where they are operating, employers have latitude to set polices about their rights in an employment relationship. A widespread policy follows the principle of employment at will, which holds that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time. An alternative is to establish extensive due-process policies, which formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee. An organization’s lawyers may advise the company to ensure that all recruitment documents say the employment is “at will” to protect the company from lawsuits about wrongful charge. Management must decide how to weigh any legal advantages against the impact on recruitment. Job applicants are more attracted to organizations with due- process policies, which imply greater job security and concern for protecting employees, than to organizations with employment-at-will policies.
• Image advertising—Besides advertising specific job openings, organizations may advertise themselves as a good place to work in general. Advertising designed to create a generally favorable impression of the organization is called image advertising. Image advertising is particularly important for organizations in highly competitive labor markets that perceive themselves as having a bad image.28 Research suggests that the image of an organization’s brand—for example, innovative, dynamic, or fun—influences the degree to which a person feels attracted to the organization. This attraction is especially true if the person’s own traits seem to match those of the organization. Also, job applicants seem to be particularly sensitive to issues of diversity and inclusion.
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Recruitment Sources 1 of 4
Advantages of Using Internal Sources
It generates applicants who are well known to the organization.
These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations.
Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.
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LO 5-5 List and compare sources of job applicants.
Internal recruiting (promotions from within) generally makes job vacancies more attractive because candidates see opportunities for growth and advancement. Internal sources, promoted through job postings, generate applicants who are familiar to the organization and motivate other employees by demonstrating opportunities for advancement. However, internal sources are usually insufficient for all of an organization’s labor needs. Direct applicants and referrals tend to be inexpensive and to generate applicants who have self-selected; this source risks charges of unfairness.
Direct applicants are people who apply for a vacancy without prompting from the organization. Referrals are people who apply because some- one in the organization prompted them to do so.
For the employer, relying on internal sources offers several advantages:
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Recruitment Sources 2 of 4
Job Posting
Process of communicating information about a job vacancy:
On company bulletin boards
In employee publications
On corporate intranets
Anywhere else organization communicates with employees
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Another critical element of an organization’s recruitment strategy is its decisions about where to look for applicants especially in cases of nepotism. The total labor market is enormous and spread over the entire globe. An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation.
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Figure 5.3: External Recruiting Sources
Jump to Appendix 3 long image description
Source: Based on Gerry Crispin and Chris Hoyt, “Source of Hire 2015: One Last Time—Because No One ‘Gets It,’” Career Xroads, January 9, 2016, available on SlideShare, http://www.slideshare.net.
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Figure 5.3 shows which of the external sources of recruiting are used most among large companies surveyed. Sources indicates that the largest share (about one-fourth) of new employees hired by large companies came from referrals, and the third largest share (almost 10 percent) came from direct applications made at the employer’s Web site.
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Recruitment Sources 3 of 4
External Sources
Direct applicants and referrals
Electronic recruiting
Advertisements in newspapers and magazines
Private employment agencies
Colleges and universities
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Recruitment Sources 4 of 4
Evaluating the Quality of a Source
Yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
By comparing yield ratios of different recruitment sources, we can determine which source is best or most efficient for type of vacancy.
Find cost of using a particular recruitment source for a particular type of vacancy.
Divide that cost by number of people hired to fill that type of vacancy.
A low cost per hire means the recruitment source is efficient.
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It is wise for employers to monitor the quality of all their recruitment sources. One way to do this is to develop and compare yield ratios for each source. A yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. For example, the organization could find the number of candidates interviewed as a percentage of the total number of résumés generated by a given source (that is, number of interviews divided by number of résumés). A high yield ratio (large percentage) means that the source is an effective way to find candidates to interview. By comparing the yield ratios of different recruitment sources, HR professionals can determine which source is the best or most efficient for the type of vacancy.
Another measure of recruitment success is the cost per hire. To compute this amount, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient; it delivers qualified candidates at minimal cost.
To see how HR professionals use these measures, look at the examples in Table 5.3.
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Table 5.3 Results of a Hypothetical Recruiting Effort
| Recruiting Source | ||||||
| Local University | Renowned University | Employee Referrals | Newspaper Ad | Online Job Board Ad | Executive Search Firms | |
| Resumes generated | 200 | 400 | 50 | 500 | 7,000 | 20 |
| Interview offers accepted | 175 | 100 | 45 | 400 | 500 | 20 |
| Yield ratio | 87% | 25% | 90% | 80% | 7% | 100% |
| Applicants judged acceptable | 100 | 95 | 40 | 50 | 350 | 19 |
| Yield ratio | 57% | 95% | 89% | 12% | 70% | 95% |
| Accept employment offers | 90 | 10 | 35 | 25 | 200 | 15 |
| Yield ratio | 90% | 11% | 88% | 50% | 57% | 79% |
| Cumulative yield ratio | 90/200 | 10/400 | 35/50 | 25/500 | 200/7,000 | 15/20 |
| 45% | 3% | 70% | 5% | 3% | 75% | |
| Cost | $30,000 | $50,000 | $15,000 | $20,000 | $5,000 | $90,000 |
| Cost per hire | $333 | $5,000 | $428 | $800 | $25 | $6,000 |
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Table 5.3 shows how the yield ratio and cost per hire measures are used by HR professionals. This table shows the results for a hypothetical organization that used six kinds of recruitment sources to fill a number of vacancies. For each recruitment source, the table shows four yield ratios and the cost per hire. To fill these jobs, the best two sources of recruits were local universities and employee referral programs. Online job board ads generated the largest number of recruits (7,000 résumés). However, only 350 were judged acceptable, of which a little more than half accepted employment offers, for a cumulative yield ratio of 200/7,000, or 3%. Recruiting at renowned universities generated highly qualified applicants, but relatively few of them ultimately accepted positions with the organization. Executive search firms produced the highest cumulative yield ratio. These generated only 20 applicants, but all of them accepted interview offers, most were judged acceptable, and 79% of these acceptable candidates took jobs with the organization. However, notice the cost per hire. The executive search firms charged $90,000 for finding these 15 employees, resulting in the largest cost per hire. In contrast, local universities provided modest yield ratios at the lowest cost per hire. Employee referrals provided excellent yield ratios at a slightly higher cost. The cost per hire is not simply related to the type of recruiting method. These costs also tend to vary by industry and organization size.
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Recruiter Traits and Behaviors 1 of 2
True = A False = B
Applicants respond more positively when the recruiter is an HR specialist than line managers or incumbents.
Applicants respond positively to recruiters whom are warm and informative
Personnel policies are more important than the recruiter when deciding whether or not to take a job.
Realistic job previews should highlight the positive characteristics of the job rather than the negative.
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The recruiter affects the nature of both the job vacancy and the applicants generated.
True=A; False=B
Applicants respond more positively when the recruiter is an HR specialist than line managers or incumbents.
False – applicants tend to respond more positively to someone who is currently in the job or a manager.
Applicants respond positively to recruiters whom are warm and informative
True - In general, applicants respond more positively to recruiters whom they perceive as warm and informative.
Personnel policies are more important than the recruiter when deciding whether or not to take a job.
True - For affecting whether people choose to take a job, the recruiter seems less important than an organization’s personnel policies that directly affect the job’s features.
Realistic job previews should highlight the positive characteristics of the job rather than the negative.
False - Realistic job previews provide background information about job’s positive and negative qualities.
Figure 5.4 Recruits Who Were Offended by Recruiters
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Figure 5.4 quotes applicants who felt they had extremely bad experiences with recruiters. Their statements provide examples of behaviors to avoid. However, recruiters can give organizations a better chance of competing for talented human resources as shown in the next slide.
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Recruiter Traits and Behaviors 2 of 2
Enhancing the Recruiter’s Impact
Recruiters should provide timely feedback and avoid offensive behavior.
They should avoid behaving in ways that might convey the wrong impression about the organization.
Organization can recruit with teams rather than individual recruiters.
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Researchers have tried to find the conditions in which recruiters do make a difference. Such research suggests that an organization can take several steps to increase the positive impact that recruiters have on job candidates. Through such positive behavior, recruiters can give organizations a better chance of competing for talented HR.
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Summary (1 of 3)
First step in HR planning is personnel forecasting. Through trend analysis and good judgment, planner determines supply and demand for HR.
Next determine labor demand for workers in various job categories.
Analysis of a transitional matrix helps identify which job categories can be filled internally and where high turnover is likely.
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Summary (2 of 3)
To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.
To avoid a labor shortage, requiring overtime is easiest and fastest strategy.
Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.
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Summary (3 of 3)
Lead-the-market pay strategies make jobs economically desirable.
Internal sources are usually not sufficient for all of an organization’s labor needs.
Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and kinds of applicants generated.
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Appendix 1 Figure 5.1: Overview of HR Planning Process
The three stages of the HR planning process are:
Forecasts of labor surplus or shortage.
Goal setting and strategic planning.
Program implementation and evaluation.
These stages inform forecasts of labor demand and forecasts of labor supply. They, in turn, inform forecasts of labor surplus or shortage, and the planning process begins again.
©McGraw-Hill Education.
Appendix 2 Figure 5.2: Three Aspects of Recruiting
The graphic shows the aspects of personnel policies and recruiter traits and behaviors influence vacancy characteristics. Meanwhile, the aspects of recruitment sources and recruiter traits and behaviors influence applicant characteristics. Vacancy characteristics and applicant characteristics are both recruitment influences which influence the job choice.
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Appendix 3 Figure 5.3: External Recruiting Sources
Company careers website 34 percent
Referrals 25 percent
Job aggregator websites 20 percent
Recruiter-initiated contacts 12 percent
Job boards 11 percent
Contingent workers at company 9 percent
College recruiting 9 percent
Rehiring former employees 8 percent
Contingent and search agencies 5 percent
Career fairs 4 percent
Online communities and databases 4 percent
Print ads 3 percent
Walk-ins 2 percent
Ads other than print 1 percent
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Appendix 4 Figure 5.4 Recruits Who Were Offended by Recruiters
Blank has a management training program which the recruiter had gone through. She was talking about the great presentational skills that blank teaches you, and the woman was barely literate. She was embarrassing. If that was the best they could do, I did not want any part of them. Also, blank and blank’s recruiters appeared to have real attitude problems. I also thought they were chauvinistic. (arts undergraduate).
I had a very bad campus interview experience…the person who came was a last-minute fill-in…I think he had a couple of “issues” and was very discourteous during the interview. He was one step away from yawning in my face…The other thing he did was that he kept making these (nothing illegal, mind you) but he kept making these references to the fact that I had been out of my undergraduate and first graduate programs for more than 10 years now. (MBA with 10 years of experience).
One firm I didn’t think of talking to initially, but they called me and asked me to talk with them. So I did, and then the recruiter was very, very rude, Yes, very rude, and I’ve run into that a couple of times. (engineering graduate).
Blank had set a schedule for me which they deviated from regularly. Times overlapped, and one person kept me too long, which pushed the whole day back. They almost seemed to be saying that it was my fault that I was late for the next one! I guess a lot of what they did just wasn’t very professional. Even at the point when I was done, where most companies would have a cab pick you up, I was in the middle of a snowstorm in Chicago and they said, you can get a cab downstairs. There weren’t any cabs. I literally had to walk 12 or 14 block with my luggage, trying to find some way to get to the airport. They didn’t book me a hotel for the night of the snowstorm, so I had to sit in the airport for eight hours trying to get another flight…They wouldn’t even reimburse me for the additional plane fare. (Industrial relations graduate student).
The guy at the interview made a joke about how nice my nails were and how they were going to ruin them there due to all the tough work. (Engineering undergraduate).
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