human resource planning and recruitment

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Human Resource Planning and Recruitment

1–1

Principles of Human Resource Management

16 e

Bohlander | Snell

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Chapter ObjectivesAfter studying this chapter, you should be able to

Describe how a firm’s strategy affects its recruiting efforts.

Outline the methods by which firms recruit internally.

Outline the methods by which firms recruit externally.

Explain the techniques organizations can use to improve their recruiting efforts.

Explain how career management programs integrate the needs ofindividual employees and their organizations.

Explain why diverse recruitment and career development activities are important to companies.

LEARNING OUTCOME 1

LEARNING OUTCOME 2

LEARNING OUTCOME 3

LEARNING OUTCOME 4

LEARNING OUTCOME 5

LEARNING OUTCOME 6

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Strategic Aspects of Recruiting

• Decisions about talent — regardless of whether they pertain to recruiting, transferring, promoting, developing, or deploying people—need to be considered within the context of a business’s strategies and priorities.

• The broad factors that can affect a firm’s recruiting strategy include a firm’s Recruiting abilities, whether to recruit externally versus internally, the labor market for the types of positions it is

recruiting for, including global labor markets, and the strength of a firm’s employment “brand.”

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Who Should Do the Recruiting?

• HR recruiters or generalist (large firms)

• Managers and/or Supervisors (smaller firms)

• Work Teams, or

• Recruiting Process Outsourcing (RPO) The practice of outsourcing an organization’s

recruiting function to an outside firm.

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Global Labor Markets

• Why Recruit Globally? To develop better products via a global workforce To attract the best talent wherever it may be

• International Recruiting Issues Local, national, and international laws Different labor costs Different pre-employment and compensation practices Cultural differences Security Visas and work permits

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Should a Firm Recruit Internally or Externally?

• Most managers try to follow a policy of filling job vacancies above the entry-level position through promotions and transfers. By filling vacancies in this way, an organization can capitalize on the investment it has made in recruiting, selecting, training, and developing its current employees, who might look for jobs elsewhere if they lack promotion opportunities.

• There are Advantages and Disadvantages to both.

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Labor Markets

• Labor Market Area from which applicants are to be recruited.

– Tight market: high employment, few available workers– Loose market: low employment, many available workers

• Factors determining the relevant labor market: Skills and knowledge required for a job Level of compensation offered for a job Reluctance of job seekers to relocate Ease of commuting to workplace Location of job (urban or nonurban)

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Recruiting Internally

• Internal Job Postings

• Identifying Talent through Performance Appraisals

• Skills Inventories and Replacement Charts

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Warning Signs of a Weak Talent “Bench”

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Recruiting Externally

• Advertisements• Walk-Ins and Unsolicited Applications and Résumés• The Internet, Social Networking, and Mobile Recruiting• Job Fairs• Employee Referrals• Re-recruiting• Executive Search Firms• Educational Institutions

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Recruiting Externally (cont.)

• Professional Associations

• Labor Unions

• Public Employment Agencies

• Private Employment and Temporary Agencies

• Employee Leasing

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Major Temporary Help Agencies in the United States

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Improving the Effectiveness of Recruiting

• Using Realistic Job Previews• Surveys• Recruiting Metrics

Effectiveness of

Recruitment

Realistic Job Previews

Surveys Recruiting Metrics

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Recruiting Metrics

• Quality of Fill Statistics

• Quality of Hire = (PR + HP + HR) / N PR = Average job performance rating of new hires HP = % of new hires reaching acceptable productivity with

acceptable time frame HR = % of new hires retained after one year N = number of indicators

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Recruiting Metrics (cont.)

• Example: PR = Average 3.5 on a 5.0 scale = 70% HP = Of 100 hires made one year ago, 75 are

meeting acceptable productivity levels = 75% HR 5 20% turnover = 80% HR N = 3 Quality of Hire = (70 + 75 + 80) / 3 = 75

The result is a quality level of 75 percent for new employees hired during the year.

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Recruiting Metrics (cont.)

• Time to Fill refers to the number of days from when a job

opening is approved to the date the person ultimately chosen for the job is selected

• Yield Ratios The percentage of applicants from a

recruitment source that make it to the next stage selection process

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Time-to-Fill Calculations

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• Cost of Recruitment (per employee hired)

Costs of Recruitment

HNCRBAFAC

HSC

SC = source costAC = advertising costs, total monthly expenditure (example: $32,000)AF = agency fees, total for the month (example: $21,000)RB = referral bonuses, total paid (example: $2,600)NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)H = total hires (example: 119)

Cost to hire one employee = $467.23

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Career Management: DevelopingTalent over Time

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Blending the Goals of Individual Employeeswith the Goals of the Organization

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Identify Job Progressions and Career Paths

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Recognize Different Career Paths

• Promotion A change of assignment to a job at a higher level in

the organization• Transfer

Placement of an individual in another job for which the duties, responsibilities, status, and remuneration are approximately equal to those of the previous job

• Consider Dual Career Paths for Employees• Consider the Boundaryless Career• Help Employees Progress beyond Career Plateaus

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Human Capital Profiles for Two Different Careers

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Successful Career-Management Practices

• Placing clear expectations on employees.

• Giving employees the opportunity for transfer.

• Providing a clear and thorough succession plan

• Encouraging performance through rewards and recognition.

• Giving employees the time and resources they need to consider short- and long-term career goals.

• Encouraging employees to continually assess their skills and career direction.

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Successful Career-Management Practices (cont.)

• Lack of time, budgets, and resources for employees to plan their careers and to undertake training and development.

• Rigid job specifications, lack of leadership support for career management, and a short-term focus.

• Lack of career opportunities and pathways within the organization for employees.

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Career Plateau Questions

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Mentoring Functions

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Developing a Diverse Talent Pool

• Recruiting and Developing Women• Eliminating Women’s Barriers to Advancement

Advancing Women to Management Accommodating Families

• Recruiting and Developing Minorities• Providing Minority Internships• Advancing Minorities to Management

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Other Important Talent Concerns

• Recruiting the Disabled

• Employing the Older Workforce

• Employing Dual Career Couples

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Key Terms

applicant tracking systembrandingassessment centercareer counselingcareer networkingcareer pathscareer plateaudual career partnershipsemployee leasingemployee profilefast-track programglobal sourcinginternal labor marketjob progressions

mentorsnepotism9-box gridoutplacement servicespassive job seekerspromotionrecruiting process outsourcing (RPO)realistic job preview (RJP)relocation servicesrerecruitingsabbaticaltransferyield ratio

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Chapter 5 - Learning Outcomes

Learning Outcome Statements Related Outcomes from Body of the Text

1 Describe how a firm’s strategy affects its recruiting efforts. This section describes some of the major factors that can affect a firm’s recruiting. What other factors might play a role? Hint: Refer to Chapter 1.

2 Outline the methods by which firms recruit internally. Sometimes firms do not post internal openings for which anyone may apply. Instead, they select someone to promote. Why might a firm do this and what drawbacks could result?

3 Outline the methods by which firms recruit externally. If you were a small business owner, how would you go about attracting top external candidates to your firm?

4 Explain the techniques organizations can use to improve their recruiting efforts.

If you’re employed, ask your boss what methods he or she has most successfully used to recruit employees. Compare your findings with your classmates. Does the recruiting source seem to depend upon the type of job?

5 Explain how career management programs integrate the needs of individual employees and their organizations.

Why should both employees and their employers be concerned about career management programs?

6 Explain why diverse recruitment and career development activities are important to companies.

How are the career challenges of minorities both similar to and different from those of women in your opinion?