Discussion 2
Acquiring Human Resources
a. Human Resource Planning
One of the most significant factors affecting planning involves the goals of the
controlling interests in the organization. If planning and effective utilization of human
resources are not a significant goal for the organization, employment planning will
not be performed formally, or it will be done in a slipshod manner. If the goals of top
management include stable growth, employment planning will be less important than
if the goals include rapid expansion, diversification, or other factors with a significant
impact on future employment needs.
Changing demographics in the United States are an important factor that will
continue to influence the future composition of the workforce in profound ways. As
the population of the country evolves, driven by factors such as immigration, birth
rates, and aging, the makeup of the labor force is undergoing significant shifts. This
transformation has far-reaching implications for employers, policymakers, and
workers alike.
One of the most notable demographic trends is the aging of the Baby Boomer
generation. As this large cohort of individuals moves into retirement, there will be a
substantial increase in the number of older Americans. This shift will create a vacuum
in the workforce that younger generations will need to fill. However, the smaller size
of subsequent generations compared to the Baby Boomers means that there may not
be enough workers to meet the demand. This could lead to labor shortages in various
sectors, particularly those that rely heavily on experienced workers.
Additionally, the increasing diversity of the U.S. population is reshaping the
workforce. Immigration continues to play a crucial role in population growth,
bringing in people from diverse backgrounds and cultures. As a result, the workforce
is becoming more multicultural and multilingual. This diversity can be a tremendous
asset to companies, fostering innovation, creativity, and a broader range of
perspectives. However, it also requires businesses to be more inclusive and to develop
policies that support a diverse workforce.
The rise of minority groups is another significant demographic change.
Hispanic and Asian populations, in particular, are growing at a faster rate than the
overall population. By 2045, it is projected that the United States will become a
majority-minority country, where no single racial or ethnic group will constitute a
majority. This shift will necessitate changes in how companies recruit, retain, and
manage talent. Employers will need to ensure that their workplace cultures are
inclusive and that they provide equal opportunities for all employees.
Furthermore, gender dynamics in the workforce are also evolving. There has
been a steady increase in the participation of women in the labor market, and this
trend is expected to continue. However, challenges such as the gender pay gap,
underrepresentation in leadership roles, and balancing work and family
responsibilities remain. Addressing these issues will be crucial for maximizing the
potential of the female workforce and ensuring gender equality in the workplace.
Another aspect of changing demographics is the varying educational
attainment levels across different groups. Younger generations are attaining higher
levels of education compared to previous ones, which is likely to influence the types
of jobs they seek and the skills they bring to the labor market. This trend underscores
the importance of education and training programs that align with the needs of a
modern economy, emphasizing the development of skills that are in high demand.
Moreover, geographic mobility and urbanization trends are also impacting
workforce demographics. People are increasingly moving to urban areas in search of
better job opportunities and living conditions. This migration is leading to the growth
of metropolitan regions while some rural areas experience population decline.
Employers in urban centers may have access to a larger and more diverse talent pool,
but they also face challenges related to housing, transportation, and infrastructure to
support this influx.
In conclusion, the changing demographics of the United States are set to have
a profound impact on the future composition of the workforce. The aging population,
increasing diversity, rise of minority groups, evolving gender dynamics, varying
educational attainment, and geographic mobility are all factors that will shape the
labor market in the years to come. Businesses, policymakers, and educators must be
proactive in addressing these changes to harness the potential of a diverse and
evolving workforce, ensuring that the economy remains dynamic and competitive in a
global context.
From 2008 to 2018, the U.S. Department of Labor projects that the two
fastest-growing demographic groups, Asians and Hispanics, will join the labor force
at rates of 29.8 and 33.1 percent, respectively. As a7 comparison, white non-Hispanics
are expected to increase at a much slower rate of 1.57percent. Another important
change includes the aging of the workforce. Over that same 10-year period, an
increase of 43 percent is expected in the 55 and older category.
Government policies are another important factor in planning. Requirements
for equal employment opportunity and promotion call for more HR planning for
women and other employees in minority groups and special categories. Other
examples include the government’s raising the age of mandatory retirement and its
encouragement of hiring employees with disabilities and veterans.
The types of people employed and the tasks they perform also determine the
kind of planning necessary. An organization may not need to plan very far in advance
for unskilled jobs, since there will usually be an abundant supply of readily available
workers for these jobs. Certain high-skill jobs, on the other hand, may require
planning activities that project a year or two into the future.
When an organization plans for executive-level replacements, such as
appointing a new CEO, the planning process may need to anticipate the company’s
needs 10 or more years into the future. This long-term perspective is crucial because
the decisions made today will significantly influence the organization's trajectory,
culture, and strategic direction in the coming decades. Succession planning at this
level is not merely about identifying potential candidates; it involves a comprehensive
evaluation of the company’s future landscape, the evolving market conditions,
technological advancements, and the anticipated challenges and opportunities that
may arise.
One critical aspect of this process is understanding the future vision and
strategic goals of the company. A new CEO will play a pivotal role in steering the
company towards these goals, so it’s essential to align the selection process with the
long-term strategic plan. This involves analyzing trends in the industry, projecting
future market demands, and considering potential disruptions that could impact the
business. For instance, if a company operates in the tech industry, anticipating the
rapid pace of technological innovation and the need for digital transformation will be
paramount.
Furthermore, the organization must assess the competencies and leadership
qualities required to navigate future challenges. This includes not only the technical
skills but also the soft skills that are increasingly important in a globalized and
interconnected world. Emotional intelligence, adaptability, visionary thinking, and the
ability to foster a strong organizational culture are all crucial attributes for a future
CEO. The planning process should therefore include leadership development
programs that cultivate these skills in potential candidates over time.
Another key element is the evaluation of internal versus external candidates.
Promoting from within can be advantageous as internal candidates are already
familiar with the company’s culture, values, and operations. However, an external
candidate might bring fresh perspectives, innovative ideas, and a new approach to
leadership that can be beneficial in driving change and addressing emerging
challenges. The decision between internal and external candidates should be informed
by the company’s future needs and the specific context of the industry.
In addition to identifying and grooming potential successors, the organization
must also consider the broader executive team. The effectiveness of a CEO is often
closely tied to the strength and cohesion of the executive team. Therefore, succession
planning should include strategies for developing a robust leadership pipeline across
all key positions. This ensures that the new CEO will have the support of a capable
and aligned executive team, which is essential for executing the company’s long-term
strategy.
Moreover, the planning process should incorporate mechanisms for a smooth
transition. This includes clear communication strategies to manage the expectations of
stakeholders, employees, and customers. A well-structured transition plan minimizes
disruption and ensures continuity of leadership. It may also involve interim leadership
arrangements or phased handovers to allow the new CEO to gradually assume full
responsibilities while gaining a deep understanding of the organization’s operations
and culture.
The organizational culture itself is another critical consideration. A company’s
culture can significantly influence its success, and any change in leadership can have
profound effects on this culture. Succession planning must therefore address how to
maintain and evolve the culture in alignment with future strategic goals. This involves
not only selecting a leader who embodies the desired cultural attributes but also
implementing initiatives that reinforce these values throughout the organization.
Furthermore, considering the diversity and inclusion aspect in succession
planning is increasingly important. Diverse leadership teams have been shown to
drive better decision-making, foster innovation, and improve overall organizational
performance. Therefore, ensuring that the succession planning process is inclusive
and promotes diversity at the executive level is crucial for future success.
Finally, the succession planning process should be a continuous, dynamic
effort rather than a one-time event. Regular reviews and updates to the succession
plan are necessary to adapt to changing circumstances, emerging trends, and new
insights. This proactive approach ensures that the organization is always prepared for
future leadership transitions, maintaining stability and continuity even in the face of
unexpected changes.
In summary, planning for executive-level replacements, such as a new CEO,
requires a forward-looking, comprehensive approach that anticipates the company’s
needs 10 or more years into the future. This involves aligning with the long-term
strategic vision, assessing required competencies, evaluating internal and external
candidates, developing a strong executive team, ensuring smooth transitions,
maintaining and evolving organizational culture, promoting diversity and inclusion,
and continuously updating the succession plan. By doing so, an organization can
ensure that it is well-positioned to navigate future challenges and seize opportunities,
securing its long-term success and sustainability.
b. Strategic and Human Resource Planning
As the model indicates, HR planning goes hand in hand with an organization’s
strategic planning. Strategic planning refers to an organization’s decision about what
it wants to accomplish (its mission) and how it wants to go about accomplishing it. 3
Although HR planning is important for developing a strategic plan, it is perhaps even
more critical to the implementation of that plan. Thus, once the strategy is set, the
HRM function must do its part to ensure the strategy’s success, thereby helping the
organization achieve its objectives.
The acknowledgment that HR policies and practices have critical linkages
with an organization’s overall strategy is generally termed strategic human resource
management (SHRM). This concept emphasizes the integral role that human
resources play in achieving the overarching goals and objectives of an organization.
SHRM involves the deliberate alignment of HR strategies with the strategic aims of
the business to enhance performance, foster innovation, and sustain competitive
advantage.
In the context of SHRM, human resource management is not just about hiring,
firing, and managing employee benefits; it becomes a strategic partner in the planning
and execution of company-wide initiatives. This means that HR professionals are
actively involved in the formulation of business strategies, ensuring that the
organization’s workforce capabilities are in sync with the strategic needs of the
company. This strategic integration allows for a more cohesive approach to managing
people, where HR activities such as recruitment, training, performance management,
and compensation are designed to support the long-term objectives of the business.
One of the key components of SHRM is workforce planning. This involves
forecasting future labor needs based on the strategic goals of the organization and
ensuring that the right number of people with the right skills are available when
needed. Workforce planning also takes into account external factors such as labor
market trends, economic conditions, and technological advancements, which can
influence the availability and demand for certain types of talent. By proactively
planning for future workforce requirements, organizations can avoid talent shortages
and surpluses, thereby maintaining operational efficiency and agility.
Another important aspect of SHRM is talent management. This encompasses a
range of activities aimed at attracting, developing, retaining, and utilizing the best
talent to achieve organizational goals. Talent management strategies include employer
branding, talent acquisition, succession planning, leadership development, and
employee engagement. By implementing effective talent management practices,
organizations can build a high-performing workforce that is capable of driving
innovation and achieving sustained success.
Performance management is also a critical element of SHRM. This involves
setting clear performance expectations, providing regular feedback, and conducting
formal performance appraisals to ensure that employees are aligned with the strategic
objectives of the organization. Effective performance management systems help to
identify high performers, address performance gaps, and support employee
development. By linking individual performance to organizational goals, companies
can create a performance-oriented culture that motivates employees to contribute to
the success of the business.
Training and development are essential components of SHRM as well.
Organizations need to invest in the continuous development of their employees to
ensure that they possess the skills and knowledge required to meet current and future
business needs. This can include technical training, leadership development programs,
and initiatives aimed at fostering innovation and adaptability. By prioritizing
employee development, companies can enhance their human capital and create a
workforce that is capable of responding to changing market conditions and emerging
opportunities.
Compensation and rewards systems are another crucial area of SHRM. These
systems must be designed to attract and retain top talent, motivate high performance,
and align employee interests with the strategic goals of the organization. This can
involve a combination of base salary, performance-based incentives, bonuses,
benefits, and non-monetary rewards such as recognition and career development
opportunities. A well-structured compensation system can drive employee
engagement and productivity, ultimately contributing to the overall success of the
organization.
Furthermore, SHRM involves creating a positive organizational culture that
supports the strategic vision of the company. This includes fostering an inclusive and
diverse work environment, promoting work-life balance, and ensuring that employees
feel valued and respected. A strong organizational culture can enhance employee
satisfaction, reduce turnover, and attract top talent, all of which are critical for
achieving long-term strategic objectives.
Finally, SHRM requires continuous monitoring and evaluation of HR policies
and practices to ensure they remain aligned with the strategic direction of the
organization. This involves regularly assessing the effectiveness of HR initiatives,
collecting feedback from employees, and making data-driven decisions to improve
HR processes. By continuously refining HR strategies and practices, organizations
can maintain their competitive edge and achieve sustained success in a dynamic
business environment.
In conclusion, the acknowledgment that HR policies and practices have
critical linkages with an organization’s overall strategy, known as strategic human
resource management (SHRM), underscores the importance of integrating HR
functions with the strategic goals of the business. Through workforce planning, talent
management, performance management, training and development, compensation and
rewards systems, and the cultivation of a positive organizational culture, SHRM
ensures that human resources contribute significantly to the achievement of long-term
business objectives. By adopting a strategic approach to HR management,
organizations can enhance their performance, foster innovation, and sustain a
competitive advantage in their respective industries.
A central premise of the strategic perspective of HR is that human resource
policies will have direct effects on an organization’s profitability. As such, HR must
“fit” strategically with the mission of the organization. For example, an organization
in a stable environment whose goal is to maintain steady rates of growth may need an
entirely different recruitment and selection perspective than an organization whose
goal is rapid expansion into uncertain markets. While there is not yet a wealth of
research supporting this premise, there is growing theoretical and practitioner
evidence supporting the linkages.
c. The Vocabulary of Job Analysis
Before considering the process and techniques involved in job analysis, one
should learn the language of work analysis. Although many of these terms are often
used interchangeably by people who are unfamiliar with job analysis, the expert will
use them more precisely in order to avoid confusion and misinterpretation. Precision
in the use of these terms is, in fact, required by federal and state legislation. It is
therefore important for the HR manager to use each of them in a way that is consistent
with such legislation.
Job analysis is a comprehensive and systematic process that plays a
fundamental role in human resource management. It involves gathering, documenting,
and analyzing information about various aspects of a job, including its content,
context, and requirements. By conducting a job analysis, organizations can gain
valuable insights into the nature of different roles within the company, which serves
as the foundation for developing effective HR strategies and practices.
At its core, job analysis aims to provide a clear understanding of what a
particular job entails. This includes identifying the specific tasks, responsibilities, and
duties associated with the role, as well as the knowledge, skills, abilities, and other
characteristics (KSAOs) required for effective performance. Through methods such as
interviews, observation, and surveys, job analysts collect data from both incumbents
and supervisors to ensure a comprehensive understanding of the job requirements.
One of the primary outcomes of a job analysis is the creation of a job
description. This document serves as a written summary of the job, outlining its key
responsibilities, reporting relationships, qualifications, and other relevant information.
A well-crafted job description not only helps attract qualified candidates during the
recruitment process but also provides clarity to employees about their roles and
expectations within the organization.
In addition to job descriptions, job analysis also results in the development of
job specifications. These documents provide detailed explanations of the KSAOs
necessary for effective performance in a given role. By clearly defining the
competencies and qualifications required for success, job specifications help recruiters
and hiring managers assess candidates' suitability for a particular job and make
informed selection decisions.
Moreover, job analysis helps to establish the relationship between different
jobs within an organization. Positions, for example, represent the specific
responsibilities and duties performed by individual employees. Each position
contributes to the overall functioning of the organization, and job analysis helps to
ensure that these roles are clearly defined and aligned with the company's objectives.
Furthermore, job analysis facilitates the grouping of similar positions into job
families and job groups. Job families consist of two or more roles that share similar
duties, while job groups are collections of positions that have comparable
responsibilities. This categorization helps organizations streamline their HR
processes, such as compensation and career development, by identifying
commonalities and differences across different roles.
Overall, job analysis serves as a foundational element of strategic human
resource management. By providing insights into the nature of jobs within an
organization, it enables HR professionals to make informed decisions about
recruitment, selection, training, performance management, and other HR functions.
By continuously updating and refining job analyses, organizations can ensure that
their workforce remains aligned with the evolving needs and objectives of the
business.
d. The Steps in Job Analysis
Step 1 provides a broad view of how each job fits into the total fabric of the
organization. Organization charts and process charts (discussed later) are used to
complete the first step. Step 2 encourages those involved to determine how the job
analysis and job design information will be used. This step is further explained in the
next section. Since it is usually too costly and time-consuming to analyze every job, a
representative sample of jobs needs to be selected.
In step 3, jobs that are to be analyzed are selected. Step 4 involves the use of
structured job analysis techniques. The techniques are used to collect data on the
characteristics of the job, the required behaviors, and the characteristics an employee
needs to perform the job. The information collected in step 4 is then used in step 5 to
develop a job description. Next, in step 6, a job specification is prepared. The
knowledge and data collected in steps 1 through 6 are used as the foundation for
virtually every other HRM activity.
The information gathered during job analysis is essential to each of these, the
information gathered is used in job design and redesign, which are discussed in detail
later. Job analysis provides information necessary for organizing work in ways that
allow employees to be both productive and satisfied. Finally, information from job
analysis can be used in an organization’s follow-up evaluations of its job design.
At this crucial step, organizations must conduct a comprehensive evaluation of
their efforts to ascertain whether the goals of productivity and satisfaction are indeed
being achieved. This evaluation process serves as a checkpoint to gauge the
effectiveness of the strategies and initiatives implemented and to identify areas for
improvement or refinement.
One of the primary metrics used in evaluating productivity is performance
metrics. These metrics provide quantitative measures of employee output, efficiency,
and effectiveness in performing their tasks and responsibilities. Examples of
performance metrics include sales targets achieved, production quotas met, customer
satisfaction ratings, and project completion rates. By analyzing these metrics,
organizations can assess whether employees are meeting performance expectations
and contributing to overall productivity goals.
In addition to performance metrics, organizations should also consider
qualitative indicators of productivity. This may include feedback from managers,
peers, and customers regarding the quality of work, creativity, and innovation
demonstrated by employees. Qualitative assessments provide valuable insights into
the intangible aspects of productivity that may not be captured by quantitative
measures alone.
Furthermore, organizations need to evaluate employee satisfaction to ensure
that their efforts are fostering a positive work environment and culture. Employee
satisfaction surveys, focus groups, and one-on-one interviews are common methods
used to gather feedback from employees about their level of job satisfaction,
engagement, and overall well-being. Analyzing this feedback allows organizations to
identify factors that contribute to employee satisfaction, such as opportunities for
growth and development, recognition and rewards, work-life balance, and supportive
leadership.
Moreover, organizations should assess the alignment between employee
satisfaction and productivity. Research has shown that satisfied employees are more
likely to be engaged, motivated, and committed to their work, which can positively
impact productivity and performance. By correlating employee satisfaction data with
productivity metrics, organizations can identify the drivers of both and develop
targeted strategies to enhance both employee satisfaction and productivity
simultaneously.
Another aspect of evaluation is examining the impact of organizational
policies and practices on productivity and satisfaction. This includes evaluating the
effectiveness of HR initiatives such as training and development programs,
performance management systems, compensation and benefits packages, and work-
life balance policies. By analyzing data on employee participation, feedback, and
outcomes associated with these initiatives, organizations can determine their
effectiveness in driving productivity and satisfaction.
Furthermore, organizations should consider the broader organizational context
in their evaluation efforts. This includes factors such as industry trends, market
conditions, technological advancements, and competitive pressures, which can
influence productivity and satisfaction levels. By analyzing external factors alongside
internal data, organizations can gain a comprehensive understanding of the factors
shaping productivity and satisfaction within their organization.
In conclusion, evaluating efforts to achieve productivity and satisfaction is a
critical step in the strategic management of human resources. By analyzing both
quantitative and qualitative data, assessing the alignment between productivity and
satisfaction, evaluating the impact of organizational policies and practices, and
considering the broader organizational context, organizations can identify
opportunities for improvement and develop targeted strategies to enhance both
productivity and employee satisfaction. This ongoing evaluation process is essential
for driving organizational performance and maintaining a competitive advantage in
today's dynamic business environment.
e. External Influences
Despite the difficulty that organizations have determining whether a worker is
legally employable, the government has increased its enforcement of the IRCA. For
example, in 2010, U.S. Immigration and Customs Enforcement (ICE) announced that
it was planning to audit employers to check if they had engaged in hiring
unauthorized workers. These audits, which also investigated the hiring actions of
company executives and managers, could result in fines and civil and criminal
penalties. In that same year, ICE announced that it reached a settlement of $1.04
million with Abercrombie & Fitch for penalties following an audit for some of its
stores in Michigan. 9 One of the more common areas of noncompliance focuses on
whether an employer has a completed an accurate I-9 form for each of its employees.
The I-9 form is completed by the new hire on or before his or her first day of work
and its purpose is to verify the individual is eligible to work in the United States.
Unfortunately, despite regulations designed to protect employees and ensure
fair treatment in the workplace, some employers fail to comply with these standards,
leaving themselves vulnerable to the consequences of audits conducted by the U.S.
Immigration and Customs Enforcement (ICE) agency. Non-compliance with
employment regulations not only jeopardizes the rights and well-being of workers but
also exposes employers to legal and financial risks, as well as damage to their
reputation and business operations.
One area where non-compliance often occurs is in the hiring and employment
of undocumented workers. Employers may knowingly hire unauthorized workers in
an attempt to cut costs or fill labor shortages, disregarding legal requirements such as
verifying employment eligibility through the Form I-9 process. This not only violates
federal immigration laws but also deprives workers of legal protections, fair wages,
and benefits, contributing to exploitation and unfair labor practices.
Moreover, some employers may engage in discriminatory practices during the
hiring process, such as refusing to hire individuals based on their nationality,
ethnicity, or immigration status. Discrimination in employment is prohibited by
various federal and state laws, including Title VII of the Civil Rights Act of 1964 and
the Immigration and Nationality Act. Employers who engage in discriminatory
practices not only face legal consequences but also damage their reputation and
credibility as responsible corporate citizens.
Furthermore, employers are required to comply with regulations related to
workplace safety, wage and hour laws, and employee rights. Failure to provide a safe
and healthy work environment, pay employees minimum wage and overtime as
required by law, or provide benefits such as healthcare and leave entitlements can
result in penalties, fines, and lawsuits. Additionally, employers must adhere to
regulations governing the classification of workers as employees or independent
contractors, as misclassification can lead to legal liabilities and financial penalties.
In the context of immigration enforcement, ICE conducts audits and
investigations to ensure that employers are complying with immigration laws and
regulations. Employers found to be employing unauthorized workers or engaging in
other forms of immigration-related violations may face severe consequences,
including fines, criminal charges, and even the forfeiture of business assets.
Additionally, employers may be subject to civil penalties for paperwork violations
related to Form I-9 compliance.
The consequences of non-compliance with employment regulations extend
beyond legal and financial risks. Employers may also suffer reputational damage and
loss of business opportunities due to negative publicity and public scrutiny. In today's
interconnected world, news of labor violations and unethical business practices
spreads quickly through social media and news outlets, tarnishing the reputation of
the organization and eroding consumer trust.
Moreover, non-compliance with employment regulations can have a
detrimental impact on employee morale, productivity, and retention. Workers who are
subjected to unfair treatment, discrimination, or unsafe working conditions are more
likely to experience stress, dissatisfaction, and disengagement, leading to decreased
productivity and increased turnover rates. This, in turn, can disrupt business
operations, reduce profitability, and hinder organizational growth and success.
In conclusion, employers who fail to comply with employment regulations,
including those related to immigration, discrimination, workplace safety, wage and
hour laws, and employee rights, expose themselves to significant legal, financial, and
reputational risks. By prioritizing compliance and ethical business practices,
employers can protect the rights and well-being of their employees, mitigate legal
liabilities, and build a positive reputation as responsible corporate citizens committed
to fair treatment and social responsibility.
In addition to having applicants complete an I-9 form, the U.S. government
offers a free web-based program called “E-Verify” so that employers can check on the
new hire’s work eligibility. 12 In 2011, it was estimated that about 11 percent (or 7.7
million) of U.S. employers are using this voluntary service. 13 E-Verify is not a
foolproof system in that there have been reported cases in which a new hire’s
eligibility was verified when in fact the newly hired worker engaged in identity fraud.
14 However, the U.S. government continues to take steps to improve the E-Verify
system.
In 2011, it rolled out E-Verify Self-Check where individuals can voluntarily
check their eligibility for work in the United States before applying for a job. 15
These fairly recent changes in immigration enforcement seem to represent a
fundamental shift in U.S. governmental policy toward preventing the employment of
undocumented workers. In May of 2011, the U.S. Supreme Court backed an Arizona
state law (the Legal Arizona Workers Act) that requires employers in the state to use
E-Verify to check the work eligibility of all new hires and revokes the business license
of any employer that receives a second violation for employing an undocumented
worker. Other states like Florida and Mississippi have also passed stricter immigration
laws.
Another external environmental factor affecting recruiting is labor market
conditions. If there is a surplus of labor at recruiting time, even informal attempts at
recruiting will probably attract more than enough applicants. However, when full
employment is nearly reached in an area, skillful and prolonged recruiting may be
necessary to attract any applicants who fulfill the expectations of the organization.
Obviously, how many applicants are available also depends on whether the economy
is growing. When companies are not creating new jobs, there is often an oversupply
of qualified labor.
An employer can find out about the current employment picture in several
ways. The federal Department of Labor issues employment reports, and state
divisions of employment security and labor usually can provide information about
specific types of employees. There are also sources of information on local
employment conditions as they affect their members. Current college recruiting
efforts are analyzed by the Conference Board and A.C. Nielsen. Various personnel
journals, the Monthly Labor Review, Financial Times, and The Wall Street Journal
also regularly report on employment conditions.
The influence of HRM law on activities. As the number of legal requirements
has increased, it has become important for an organization to analyze the composition
of its workforce. Such an analysis is done to determine whether the firm’s
employment practices are discriminatory. The location of the organization and the
relevant labor market will play a major role in the composition of the workforce. That
is, the number of African American, Hispanic, Asian or Pacific Islander, Native
American, or Alaska Native employees in the workforce depends largely on the
availability of these minority employees in the relevant labor market.
Regardless of the location of the organization, an aggressive diversity
management program will be essential for organizations during the 21st century. Due
in part to skills shortages, progressive organizations now understand that effective
diversity management is an integral strategic tool for enhancing competitiveness. For
diversity management to work, however, it must be valued by the organization.
For organizations like Allstate Insurance that have the foresight to embrace
diversity, the benefits can indeed be tremendous and far-reaching. Embracing
diversity goes beyond mere compliance with regulations; it entails creating an
inclusive culture where individuals from all backgrounds feel valued, respected, and
empowered to contribute their unique perspectives and talents. This commitment to
diversity and inclusion can lead to a wide range of positive outcomes, impacting
everything from employee satisfaction to customer loyalty and financial performance.
One of the key benefits of embracing diversity is increased creativity and
innovation. When people from diverse backgrounds come together, they bring a
variety of experiences, ideas, and perspectives to the table. This diversity of thought
can fuel creativity and drive innovation, leading to the development of new products,
services, and solutions that better meet the needs of a diverse customer base. By
fostering an environment where diverse voices are heard and valued, organizations
like Allstate can tap into the full potential of their workforce and stay ahead of the
competition in a rapidly changing marketplace.
Moreover, embracing diversity can lead to higher levels of employee
engagement and satisfaction. When employees feel that their identities, backgrounds,
and perspectives are respected and valued, they are more likely to feel a sense of
belonging and commitment to the organization. This, in turn, can lead to greater
motivation, productivity, and loyalty, as employees are more invested in the success of
the company. By prioritizing diversity and inclusion, organizations can create a
positive work environment where all employees feel empowered to thrive and
succeed.
Additionally, diversity can have a positive impact on customer satisfaction and
loyalty. In today's diverse and multicultural society, customers value companies that
reflect and understand their unique needs and preferences. By embracing diversity,
organizations like Allstate can better connect with their diverse customer base,
building trust, loyalty, and long-term relationships. Furthermore, diverse teams are
often better equipped to understand and address the needs of different market
segments, leading to more effective marketing strategies, product offerings, and
customer service experiences.
Furthermore, embracing diversity can enhance organizational resilience and
adaptability. In today's complex and rapidly changing business environment,
organizations face a wide range of challenges and uncertainties. By building diverse
teams and fostering an inclusive culture, organizations can tap into a broader range of
perspectives and expertise, enabling them to navigate change more effectively and
make better-informed decisions. This adaptability is crucial for staying agile and
resilient in the face of disruptions and uncertainties, ensuring long-term success and
sustainability.
Moreover, embracing diversity can also have positive financial implications
for organizations. Research has shown that companies with diverse workforces tend to
outperform their less diverse counterparts in terms of financial performance,
profitability, and shareholder value. This is partly due to the fact that diverse teams
are better equipped to innovate, solve complex problems, and capitalize on new
opportunities. Additionally, diverse organizations are often more attractive to
investors, customers, and talent, leading to increased competitiveness and market
share.
In conclusion, for organizations like Allstate Insurance that have the foresight
to embrace diversity, the benefits can be tremendous in terms of outcomes ranging
from higher productivity to increased customer satisfaction. By fostering an inclusive
culture where diverse voices are heard and valued, organizations can unlock the full
potential of their workforce, drive innovation and creativity, enhance employee
engagement and satisfaction, improve customer relationships, and achieve sustainable
financial success. Embracing diversity is not just the right thing to do; it's also good
for business.
f. Interactions of the Recruit and the Organization
After considering how external factors such as government, unions, labor
market conditions, composition of the workforce, and location of the organization
restrict recruiting options, the next step in understanding the recruiting process is to
consider the interaction between the applicants and the organization in recruiting.
The recruiting process necessarily begins with a detailed job description and
job specification. 20 Without these, it is impossible for recruiters to determine how
well any particular applicant fits the job. It should be made clear to the recruiter which
requirements are absolutely essential and which are merely desirable. This can help
the organization avoid unrealistic expectations for potential employees: An employer
might expect applicants who finish first in their graduating class, are presidents of
extracurricular organizations, have worked their way through school, are good-
looking, have 10 years’ experience (at age 21), and are willing to work long hours for
almost no money. Contrasting with this unrealistic approach, the effective
organization examines the specifications that are absolutely necessary for the job.
Then it uses these as its beginning expectations for recruits.
In some organizations, HRM policies and practices affect recruiting and who
is recruited. One of the most significant of these is promotion from within. For all
practical purposes, this policy means that many organizations recruit from outside the
organization only at the initial hiring level. Most employees favor this approach. They
feel this is fair to present loyal employees and assures them of a secure future and a
fair chance at promotion. Some employers also feel this practice helps protect trade
secrets. The techniques used for internal recruiting will be discussed later. Is
promotion from within a good policy? Not always. An organization may become so
stable that it is set in its ways. The business does not compete effectively, or the
government bureau will not adjust to legislative requirements. In such cases,
promotion from within may be detrimental, and new employees from outside might
be helpful.
Other policies can also affect recruiting. Certain organizations hire more than
their fair share of veterans. In 2011, JPMorgan Chase recruited 10 other companies to
enter into a partnership to hire a total of 100,000 veterans by 2020. 21 Some of the
partner companies in this “100,000 Jobs Mission” include Verizon, NCR, Cisco,
Cushman & Wakefield, and Universal Health Services. 22 Other companies strive to
be an employer of choice for individuals with disabilities. For example, the Walgreens
Distribution Center in Anderson, South Carolina, recruited 250 people with physical
or cognitive disabilities. 23 Also, other organizations may favor hiring friends and
family members of current employees. All of these policies affect an organization’s
recruiting efforts.
The image of the employer generally held by the public can also affect
recruitment. All else being equal, it should be easier for an organization with a
positive corporate image to attract and retain employees than an organization with a
negative image. 24 Thus, for those organizations that reach the top of 2010 Fortune
magazine’s “most admired” list, such as Apple, Google, Berkshire Hathaway, Johnson
& Johnson, and Amazon.com. 25 the time and effort needed to recruit high-quality
workers may be less than for competitors who rank poorly. Recruitment should also
be somewhat easier for companies that exude a strong community presence or
positive name recognition. 26 In sum, the ideal job specifications preferred by an
organization may have to be adjusted to meet the realities of the labor market,
government, or union restrictions; the limitations of its policies and practices; and its
image. If an inadequate number of high-quality people apply, the organization may
have to adjust the job to fit the best applicant or increase its recruiting efforts.
Just as organizations have ideal specifications for recruits, so do recruits have
a set of preferences for jobs. A student leaving college generally expects to obtain a
job that actually requires college-level education and skills. The graduate might also
have strong geographic preferences and expectations about salary and may anticipate
that advancement will occur rapidly. However, many new college graduates do not
find their ideal job immediately. According to a 2010 report from the U.S. Bureau of
Labor Statistics, 19 percent (or 2.1 million) of college graduates are unemployed. 27
Of these, 1 in 5 college graduates have been unemployed for one year or longer. 28
The weak economic recovery has led to many older workers applying for and staying
in jobs longer. 29 One of the effects of these two trends is that fewer jobs are available
for college graduates, causing many of them to delay their job searches. 30 Of those
college graduates who are working, many may be underemployed (i.e., working in
jobs that do not require a bachelor’s degree) in retail sales, and as food servers, motor
vehicle operators and in administrative support positions. 31 Recruits also face
barriers to finding their ideal job, barriers created by economic conditions,
government and union restrictions, and the limits of organizational policies and
practices. The recruit must anticipate compromises, just as the organization must.
From the individual’s point of view, choosing an organization involves at least
two major steps. First, the individual chooses an occupation—perhaps in high school
or early in college. Then she or he chooses the organization to work for within that
broader occupation. What factors affect the choice of occupation and organization?
Obviously, there are many, many factors that influence these decisions. But a survey
conducted by the National Association of Colleges and Employers found that
occupational choice is most heavily influenced by parents, followed by teachers,
career counselors, friends, and relatives. 32 As previously mentioned, choice of an
organization might be influenced by corporate image. Additionally, many recruits
prefer larger, well-established firms over smaller organizations. 33 Research also
suggests that satisfaction with the communication process in recruitment is critical to
attracting applicants. 34 In reality, however, this decision isn’t always purely rational;
it is also affected by unconscious processes, chance, and luck.
Unfortunately for the organizational recruiter, not all job seekers provide
truthful résumés. 37 A survey conducted by Reid Psychological Systems (part of
Pearson Performance Solutions) found that as many as 95 percent of college students
are willing to be less than truthful about themselves when they are searching for a job.
38 And with the use of résumé databases constantly increasing as an initial screening
tool, 39 the temptation to embellish one’s own qualifications might be difficult to
ignore. But job seekers need to understand that in the long run little can be gained
from such practices, especially since falsification of an application is typically
grounds for dismissal.
Successful job seekers also prepare carefully for job interviews. They do their
“homework” and learn as much about the company as possible. As the nearby Your
Career Matters suggests, successful job seekers use “impression management” tactics
(e.g., smiling, good eye contact, and proper attire) to their advantage. 40 Although it is
not a good idea to present an unrealistic picture of one’s qualifications, interviewers
are strongly influenced by an applicant’s interpersonal and communication styles
during the interview. In fact, characteristics such as these are primary determinants of
recruiters’ firm-specific judgments about an applicant’s suitability.
g. Methods of Recruiting
Once an organization has decided it needs additional or replacement
employees, it is faced with the decision of how to generate the necessary applications.
The organization can look to sources internal to the company and, if necessary, to
sources external to the company. Most organizations have to use both internal and
external sources to generate a sufficient number of applicants. Whenever there is an
inadequate supply of labor and skills inside the organization, it must effectively “get
its message across” to external candidates. It is here that the organization’s choice of a
particular method of recruitment can make all the difference in the success of the
recruiting efforts.
Organizations can make effective use of skills inventories for identifying
internal applicants for job vacancies. It is difficult, however, for HR managers to be
aware of all current employees who might be interested in the vacancy. To help with
this problem, they use an approach called job posting. In the past, job posting was
little more than the use of bulletin boards and company publications for advertising
job openings. Today, however, job posting has become one of the more innovative
recruiting techniques being used by organizations. Many companies now see job
posting as an integrated component of an effective career management system. Some
of the advantages to posting jobs on a company’s intranet are that it encourages
managers to discuss career opportunities with employees; motivates employees by
showing that hard work and performance can result in promotion; makes the internal
promotion more transparent and fairer; and reinforces to employees that they need to
continuously enhance their skills and experience.
A model job posting and career development program was implemented at
Deloitte LLP, a large financial advisory and taxation services firm. The program
called Deloitte Career Connections allows more than 12,000 employees to view
internal job openings, speak to confidential career coaches, and make internal career
changes. 43 Deloitte Career Connections has been credited with saving the company
approximately $14 million by retaining key personnel within the firm.
If there is a short-term shortage, or if no great amount of additional work is
necessary, the organization can use internal moonlighting. It could offer to pay
bonuses of various types to people not on a time payroll to entice workers into
wanting to take on a “second” job. Nationally, it is estimated that approximately 6
percent of all employed people have held more than one job at the same time. 45
Moonlighting is so common at some organizations that HR departments consider
issuing “moonlighting policies” that include the communication of performance
expectations, prevention of conflict of interest, and protection of proprietary
information.
Thus, some persons will clearly be motivated to accept the additional work if
they are fairly compensated. Before going outside to recruit, many organizations ask
present employees to provide referrals by encouraging friends or relatives to apply.
Some organizations even offer finders fees in the form of monetary incentives for a
successful referral. When used wisely, referrals of this kind can be a powerful
recruiting technique. For example, Destination Hotels & Resorts and Nintendo report
that over half of their new hires are a result of employee referrals. 47 Organizations
must be careful, however, not to accidentally violate equal employment laws while
they are using employee referrals. For example, in EEOC v. Detroit Edison (1975), 48
the U.S. Court of Appeals, Sixth Circuit, found a history of racial discrimination that
was related to recruitment.
When an organization has exhausted its internal supply of applicants, it must
turn to external sources to supplement its workforce. Research indicates that walk-ins
provide an important external source of applicants. As labor shortages increase,
however, organizations are becoming more proactive in their recruitment efforts. A
number of methods are available for external recruiting. Media advertising, e-
recruiting , social media, employment agencies, executive search firms, specialevents
recruiting, and summer internships are discussed here. There is also a separate section
on college recruitment of potential managers and professionals.
Organizations advertise to acquire recruits. Various media are used, the most
common traditional form being help-wanted ads in daily newspapers. Organizations
also advertise for people in trade and professional publications. Other media used are
billboards, subway and bus cards, pop-up ads on the Internet, radio, and television.
Some job seekers do a reverse twist: they advertise for a situation wanted and reward
anyone who tips them off about a job. In developing a recruitment advertisement, a
good place to begin is with the corporate image. General Mills used its Trix cereal
logo to create instant recognition among MBA graduates. The ad featured the Trix
rabbit with the headline, “It’s Not Kid Stuff Anymore.” The copy continued, “Now
you’re an MBA who’s looking for a dynamic growth-directed career environment . . .
Look to General Mills. Because it’s not kid stuff anymore. It’s your future.”
Simply using a corporate logo is not enough, however. Effective recruiting
advertising is consistent with the overall corporate image; that is, the advertisement is
seen as an extension of the company. Therefore, it must be representative of the
values that the corporation is seeking in its employees. Booz-Allen Hamilton’s
advertising campaign has successfully achieved this congruence by conveying in its
ads the importance of employee work–life balance: “We believe business should
always have a human side.” 50 An innovative way to attract nurses was used in an ad
campaign for Children’s Hospital Medical Center in Cincinnati. The ad appealed to
nurses’ sense of pride in themselves and their profession. The ad ran in the Cincinnati
Enquirer newspaper. The headlines— “Nurses are smart and they know how to make
you feel better,” “Nurses are there to make sure you don’t get real scared,” “Nurses
are kind and they don’t laugh when you cry”— were written in a child’s handwriting
and combined with pictures of nurses and children in the style of a child’s drawing.
Another innovative way to attract prospective employees with particular skills
is the use of recruitment videos that can be downloaded from the Internet. In 2011,
Monster. com and CareerBuilder.com invited companies to create and post
recruitment videos that are designed to grab job seekers’ attention by showing a “day
in the life” at the company and explaining why the company should be applicants’
first choice. Companies that post videos hope to differentiate themselves from other
recruiters by providing additional information about the company brands and
organizational culture while helping viewers (i.e., potential applicants) make more
informed decisions when applying for jobs.
Help-wanted ads must be carefully prepared. Media must be chosen, coded for
study, and analyzed for impact afterward. If the organization’s name is not used and a
box number is substituted, the impact may not be as great, but if the name is used, too
many applicants may appear, and screening procedures for too many people can be
costly. This is a difficult decision to make in preparing recruitment advertisements. In
addition, ads need to comply with EEO requirements and not violate the law. For
example, HR recruiters find that including diversity in recruitment ads helps attract
more employees from diverse populations. 52 Ads need to be written to avoid
indicating preferences for a particular race, religion, or gender or a particular place of
national origin.
Perhaps no method has ever had as revolutionary an effect on organizational
recruitment practices as the Internet. 53 According to Forrester Research of
Cambridge, Massachusetts, there are approximately 30,000 different websites devoted
in some manner to job posting activities; 54 and approximately 71 percent of all job
listings occur on just a handful of the “big boards” such as Monster (monster.com),
CareerBuilder (careerbuilder.com), and America’s Job Bank (jobsearch.org). Some of
the large job-placement websites have reported large numbers of résumés posted and
searches conducted on a daily basis. For example, Monster.com reports that job
seekers post over 25,000 new résumés each day and host 46 million visitors globally
each month; and CareerBuilder.com states that its website has 1 million job posts and
hosts 23 million unique visitors each month.
Many organizations from colleges to companies are experimenting with the
use of social networking sites like Facebook, Twitter, and LinkedIn to recruit
applicants. 60 According to a 2010 survey of 2,500 employers by CareerBuilder, 21
percent of companies use social media to recruit potential employees. 61 One of the
primary goals of these organizations is to engage and connect with members of the
Millennial or Net generation (born between 1978 and 1997) and others who spend a
considerable amount of time using social media sites. 62 The potential payoff to
organizations is to attract the best candidates from the potentially largest applicant
pools in the world. In December of 2010, Facebook had over 1507million unique
visitors within the United States, with each user visiting the site about 35 times that
month. 63 This number pales when considering that Facebook reported over 500
million registered users that year. 64 LinkedIn has over 75 million registered users
and Twitter reports about 100 million users.
So, what are companies doing to attract individuals? In 2010, UPS updated its
online recruitment strategy by posting videos and updates about job opportunities and
why people should work for “Brown.” 66 The company even created a way for
interested individuals to apply for a job from their smartphones. 67 Results were
promising. UPS hired 955 employees who applied through social media sites like
Twitter and Facebook. 68 The cost of hiring a candidate this way was about $70 per
hire, compared with about $600 per hire using print advertising. 69 Other firms
provide detailed information about the company and give specific information about a
particular job or jobs on corporate Facebook, Twitter, or Flickr pages. 70 Employee or
executive blogs, YouTube videos, and testimonials from new hires often supplement
this information.
When the supply of employees available is not large or when the organization
is new or not well known, some organizations have successfully used special events to
attract potential employees. They may stage open houses, schedule visits to
headquarters, provide literature, and advertise these events in appropriate media. To
attract professionals, organizations may have hospitality suites at professional
meetings. Executives also make speeches at association meetings or schools to get the
organization’s image across. Ford Motor Company has conducted symposia on
college campuses and sponsored cultural events to attract attention to its qualifications
as a good employer.
h. Influences on the Selection Process
A number of characteristics of the organization can influence the amount and
type of selection processes it uses to hire needed employees. Size, complexity, and
technological volatility are a few of these. Since the development and implementation
of large-scale selection efforts can be very costly, complex selection systems are most
often found in larger organizations with the economic resources necessary to pay for
such systems. Size alone, however, does not determine how selection is approached.
For an organization to recover the costs of developing an expensive selection system,
there must be a sufficient number of jobs that need to be filled. In structurally
complex organizations with many job titles but very few occupants, the number of
years needed to get back the money invested in such a selection system may be too
great to justify its initial expense.
Another characteristic of the organization that is an important determinant of
the kind of selection system it develops is its attitude about hiring from within. Many
organizations have elaborate internal job posting programs designed to help fill as
many job vacancies as possible from within. Other organizations look more quickly to
external personnel pools of new employees. While these two models of filling job
vacancies will have some overlapping selection processes, each will also focus to
some extent on different criteria and different techniques.
The external environment is an equally important determinant of the kind of
selection system that an organization utilizes. Not only are most organizations subject
to federal employment laws and regulations, but there are many state-specific
regulations that also affect what an organization can and cannot do in its selection
system. Some states, for example, have imposed much tighter limits than others on an
organization’s ability to test applicants for drug use. Similarly, a number of states
provide past employers with more protection against being sued by a former
employee because of information that may have been divulged during checking of
references.
Any or all of these state-specific issues can affect the selection system that is
ultimately used. One of the most significant environmental influences on selection is
the size, composition, and availability of local labor markets. These, in turn, are
affected by economic, social, and political pressures on a community. At a basic level,
when unemployment rates are low, it may be difficult for an organization to identify,
attract, and hire the number of people it needs. On the other hand, during an economic
recession when there is an oversupply of qualified applicants, selection strategies need
to focus more on sifting through larger numbers of applicants so the best candidates
are identified.
Consider Clark Kirby’s problem at Gunther. The selection ratios are as
follows: managers 38/68, or about 1:2; professional-technical, 10/10, or 1:1; clerical,
44/78, or about 1:2; skilled, 104/110, or about 1:1; semiskilled, 400/720, or almost
1:2. When the selection ratio gets close to 1:1, it is called a high selection ratio .
Under these circumstances, the selection process is short and unsophisticated,
although it may not be effective. As the number of applicants increases relative to the
number who are hired, the selection ratio is said to be low. With a lower selection
ratio, for example 1:2, the process becomes more detailed. A ratio of 1:2 also means
that the organization can be more selective in its choice than when the ratio is 1:1. It
is, therefore, more likely that employees who fit the organization’s criteria for success
will be hired. It is also likely, however, that the organization will have to invest more
time and money in the selection decision (to screen out more candidates) when the
ratio is 1:2.
i. Selection Criteria
At the core of any effective selection system is an understanding of what
characteristics are essential for high performance. This is where the critical role of job
analysis in selection becomes most apparent, because that list of characteristics should
have been identified during the process of job analysis and should now be accurately
reflected in the job specification. Thus, from a performance perspective, the goal of
any selection system is to accurately determine which applicants possess the
knowledge, skills, abilities, and other characteristics (KSAOs) dictated by the job.
Additionally, the selection system must be capable of distinguishing between
characteristics that are needed at the time of hiring, those that are systematically
acquired during training, and those that are routinely developed after a person has
been placed on the job. Different selection criteria may, indeed, be needed to assess
these qualitatively different KSAOs.
An employer selecting from a pool of job applicants wants to choose the
person who has the right abilities and attitudes to be successful. A large number of
cognitive, motor, physical, and interpersonal attributes are present because of genetic
predispositions and because they were learned at home, at school, on the job, and so
on. One of the more common costeffective ways to screen for many of these abilities
is by using educational accomplishment as a surrogate for or summary of the
measures of those abilities. For example, although this is unfortunately not always
true, it usually is safe to assume that anyone who has successfully completed high
school or its equivalent has basic reading, writing, arithmetic, and interpersonal skills.
For certain jobs, the employer may stipulate that the education (especially for
collegelevel requirements) is in a particular area of expertise, such as accounting or
management. The employer might also prefer that the degree be from certain
institutions, that the grade point average be higher than some minimum, and that
certain honors have been achieved. To be legal, educational standards such as these
must be related to successful performance of the job. Care must be exercised not to set
standards that are higher than actually required by the job.
Another useful criterion for selecting employees is experience and past
performance. Many selection specialists believe that past performance on a similar job
might be one of the best indicators of future performance. 1 In addition, employers
often consider experience to be a good indicator of ability and work-related attitudes.
Their reasoning is that a prospective employee who has performed the job before and
is applying for a similar job must like the work and must be able to do the job well.
Research supports these assumptions. Over a large number of studies, experience is
related to job performance. 2 But the organization must have a rational basis for
defining what it means by “relevant experience.” Not all previous experiences are
equally good predictors of performance on a given job. For example, should two
applicants applying for a job as an internal auditor be given the same credit for
previous work experience if both have five years in the accounting profession but one
has been an auditor for an unknown organization and the other a tax specialist for the
IRS?
In the past, many employers consciously or unconsciously used physical
characteristics (including how an applicant looked) as a criterion. Studies found that
employers were more likely to hire and pay better wages to taller men, and airlines
chose flight attendants and companies hired receptionists on the basis of beauty (or
their definition of it). Many times, such practices discriminated against ethnic groups,
older people, and people with disabilities. For this reason, they are now illegal unless
it can be shown that a physical characteristic is directly related to effectiveness at
work. For example, visual acuity (eyesight) would be a physical characteristic that
could be used to hire commercial airline pilots. It might not, however, be legally used
for hiring a telephone reservations agent for an airline. In a similar way, candidates for
a job cannot be screened out by arbitrary height, weight, or similar requirements.
These can be used as selection criteria only when the job involves tasks that require
them.
The final criterion category is a catchall that includes personal characteristics
and personality types . Personal characteristics include marital status, sex, age, and so
on. Some employers have, for example, preferred “stable” married employees over
single people because they have assumed that married people have a lower turnover
rate. On the other hand, other employers might seek out single people for some jobs,
since a single person might be more likely to accept a transfer or a lengthy overseas
assignment. Age, too, has sometimes been used as a criterion. While it is illegal to
discriminate against people who are over the age of 40, there is no federal law that
specifically addresses this issue for younger people. However, minimum and
maximum age restrictions for jobs can be used only if they are clearly job-related.
Thus, age should be used as a selection criterion only after very careful thought and
consideration. This issue will certainly become more important by the year 2015; this
is when workers 55 and over will account for 207percent of the U.S. workforce. Also,
many older employees will keep working; a 2010 survey suggests 44 percent of
workers 50 and older plan to delay their retirement in order to make up for declining
401(k) plans and increasing costs of health care. 3 By that time, more than half of all
American workers will be legally protected by the Age Discrimination in
Employment Act (ADEA).
