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Paul L. Schumann, Ph.D.Professor of Management
MGMT 440: Human Resource Management
1 2008 by Paul L. Schumann. All rights reserved.
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Outliney Hiring Process & Recruiting Goal
y Recruiting Philosophy
y Exempt vs. Nonexempt Jobsy Target Market for Recruiting
y Recruiting Methods
y Evaluation & Benchmarking of Recruiting
y Countercyclical Hiring
yApplicants Point of View
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Goal: Match Person & Job
y Recruit applicants who are a good match for the job
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Hiring Process & Goalsy Hiring Goal: Hire an
applicant who is a good
match with the joby Recruiting Goal: Recruit
a pool of well-qualifiedapplicants
Source of figure: Fisher, Schoenfeldt, &Shaw (2006), Figure 6.1, p. 233
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Recruiting Philosophyy Recruit internally or externally or both?
y Short-run (fill vacancies) vs. long-run (hire for careers)
view of recruiting?y Role of diversity in the organization?
y Marketing orientation to applicants?
y Ethics in recruiting?
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Internal vs. External Recruiting?Advantages of Internal Disadvantages of Internal
y Know more about internal
applicants than externaly Enhances motivation of
current employees
y Reduces training costs
y Faster and less expensive
y Increased job security forcurrent employees
y May not have enough
applicants with desiredqualifications
y Ripple effect
y Possibly bureaucratic &cumbersome procedures
y Inbred organization
y May make achieving diversitygoals more difficult
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Internal vs. External Recruiting?Advantages of External Disadvantages of External
y Brings in new ideas
y Avoids ripple effecty May make achieving diversity
goals easier
y Handle rapid growth
y
Get people with up-to-dateeducation and training
y Shakeup the organization
y Can be more expensive &
time-consumingy Hiring mistakes may be more
likely
y Reduced promotionopportunities might be
discouraging for currentemployees
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Short-run vs. Long-run View?Short-run View Long-run View
y Goal: Hire the applicant who
is well-qualified for thecurrently open position
y Look only at thequalifications required by thecurrently open position
y Goal: Hire the applicant:y
Who is well-qualified for thecurrently open positiony Look at the qualifications
required by the currentlyopen position
y Andwho can develop to be
well-qualified for transfersand promotions to fillpossible future vacanciesy Look at qualifications
required for possible futurejobs
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Role ofDiversity?Focus on Legal Compliance Focus on Value of Diversity
y Organization focuses on not
violating the anti-discrimination laws
y Comply with:
y Civil Rights Act Title VII
y Age Discrimination in
Employment Acty Americans with Disabilities
Act, etc.
y Organization sees diversity as
a source of strategic strengthy Reduces risk of
discrimination lawsuits
y Goes beyond minimalistcompliance with laws
y
Moral high groundy Diverse employees better
able to serve the needs ofdiverse customers
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Marketing Orientation?Applicants as Commodities Applicants as Customers
y Company views applicants as
commodities to be boughty Workers are viewed as just
one more thing to buy
y Goal is to hire workersquickly and cheaply
y No-frills recruiting
y Company views applicants as
customers to be wooedy Applicants & employees are
viewed as a type of customer
y Market the organizations jobopportunities to potentialapplicants
y Wooing an applicant doesnot mean deceiving theapplicant
y Treat applicants with respect
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Recruiting Ethics?Inflate the Job Realistic Job Previews
y Lie & deceive applicants
about the joby Emphasize the jobs good
points
y Hide the jobs bad points
y Portray the job completely &
honestly (good & bad)y Advantages:
y Improves the person-jobmatch by facilitating self-selection by the applicant
y Lowered (more realistic)
expectationsy Increases the applicants
commitment to the decision
y Coping is facilitated
y Its the ethical thing to do
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Exempt vs. Nonexempt JobsExempt Job Nonexempt Job
y Does not get overtime pay
y
Job is exempt from theovertime pay provisions ofthe Fair Labor Standards Act(FLSA)
y Usually paid on a salary basis
y Hours actually worked doesnot determine pay
y Mostly supervisors,managers, and professionals
y Example: pay is $400 perweek regardless of hours
y Does get overtime pay
y
FLSA requires an overtimepay premium of 1.5 (time-and-a-half) for hours inexcess of 40 hours in a week
y Example:
y hourly wage = $10 per hour
y employee works 44 hoursin a week
y pay for week =($10 40 hours) +($10 1.5 4 hours) =$400 + $60 = $460
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Target Market for Recruitingy Goal: Recruit a pool of well-qualified applicants
y What are the essential qualifications required by the
job?y Look at the Job Description for the open position
y Where can we find people with the essentialqualifications?
y Identify the relevant labor market for the open position:Local, regional, national, or international
y What recruiting methods can we use to effectivelycommunicate in the relevant labor market with thepeople who have the essential qualifications?
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Recruiting Methodsy Thus, each recruiting method is a way to communicate
with a certain group of potential applicants for the
open position (vacancy)y For each of the following recruiting methods, think
about the audience being targeted
y Whats the target audience of each recruiting method?
y In what situations would you choose to use each recruitingmethod?
y Team Project Suggestion: Your hiring plan(Element #2) shouldincludea recruiting plan
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Recruiting Methods (more)yJob posting & bidding
y Post open positions on the organizations:
y
Bulletin boardsy In-house newsletters
y Intranet website (note: intranet, not Internet)
y Only current employees have access (username & password)
y Focuses on internal recruiting, usually for nonexemptpositions
y Workers paid by the hour
y Examples: Production workers, maintenance workers,secretaries, etc.
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Recruiting Methods (more)y Succession planning & replacement charts
y Use theOrganization Chart to make succession &
replacement plansy If the employee in a particular position were to leave the
position for any reason, which of the subordinates would beready for the promotion?
y Plan employee development to get subordinates ready
y Focuses on internal recruiting, usually for exemptpositions
y Workers not paid by the hour
y Examples: managers & professionals, etc.
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Recruiting Methods (more)y Employee referrals
y Employees refer applicants to the organization
y Can be very effectivey Create incentives for current employees to make
referrals
y Example: $100 bonus paid to an employee who refers anapplicant
y Increase the incentives for employees to make good referrals
y Example: $500 bonus paid to an employee who refers anapplicant who is hired and stays on the job with satisfactory
job performance for 3 months
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Recruiting Methods (more)y Internet recruiting
y 3 possible ways:
y
Post open positions on the organizations Internet websitey Publicly accessiblenot limited to employees
y Post open positions on Internet job boards
y Search applicant listings on Internet job boards
y Listing of some Internet job boards:http://krypton.mnsu.edu/~schumann/www/research/hrm.html
y General job boards: Do not specialize (e.g., Monster, HotJobs)
y Niche job boards: Specialize in some way (e.g., HR.com,SouthernMinnesotaHelpWanted.com)
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Recruiting Methods (more)y Employment agencies
y Public: US Employment Service (USES)
y
Website: http://www.doleta.gov/uses/y Coordinates state employment services
y Each state has its own state employment service & job board
y CareerOneStop: http://www.careeronestop.org/
y Links to state job banks:
http://www.careeronestop.org/JobSearch/COS_jobsites.aspxy Example: Minnesota WorkForce Centers
y Website: http://www.mnworkforcecenter.org/
y Job board: https://www.minnesotaworks.net/
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Recruiting Methods (more)y Employment agencies (more)
y Private employment agencies
y
Fees frequently paid by the employer (not the applicant)y Fees frequently based on a percentage of the positions first
year pay
y Higher level jobs tend to have higher fee percentages
y Some agencies specialize
y Examples:y Executive search firms (so-called head-hunters)
y Temp agencies
y Nursing agencies
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Recruiting Methods (more)y Recruiting at schools
y Consider:
y
Which type of school? (e.g., look at jobs qualifications: highschool, vo-tech, 2-year or 4-year undergrad, or grad degree?)
y How many schools? (look at your budget for time & money)
y Location of schools? (look at the relevant labor market)
y Which specific schools? (look at the degrees offered,
reputation, & past experiences with school)y Build relationships with specific schools
y Donations, internships, managers serve on schools advisoryboard, speakers, mentoring with students, etc.
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Recruiting Methods (more)y Non-traditional recruiting methods
y Broaden geographic target market (even international?)
y
Make the job more attractive to applicantsy Use temps (temporary employees)
y Employee leasing: longer time than typical temp
y Target non-traditional groups:
y Retired peopley Disable people
y Economically disadvantaged people
y Fisher, Schoenfeldt, & Shaw (2006), Table 6.5, p. 257
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Recruiting Methods (more)y Help wanted advertising
y Plan the advertising campaign like youd plan an ad
campaign for the companys products or services, exceptnow youre marketing the companys job opportunities
y Identify the target labor market
y Geographic: local, regional, national, or international?
y Identify the target audience in the target labor market
y Who has the essential qualifications?
y Identify the advertising media that will reach the targetaudience in the target labor market
y Which specific publications, radio stations, etc.?
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Recruiting Methods (more)y Help wanted advertising (more)
y Design effective print ads:
y
Job title (boldface type)y Company name & logo (blind ads are usually a bad idea)
y Tasks & duties (list using bullets & white space)
y Qualifications (list using bullets & white space)
y Pay & benefits (be as specific as possible)
y Future opportunities (promotions, fast growth, etc.)
y Contact information (desired contact method and, asrelevant, contact name, phone, address, e-mail, website, etc.)
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Evaluation & Benchmarkingy Evaluate each recruiting method that was used
y For each recruiting method, calculate:
y
Number of applicants & number hiredy Yield Ratio = # applicants / # hired
y Cost per hire
y Time-to-fill: average number of days from first contact with anapplicant to the first day on the job
y Turnover rate in the new hires first year on the joby Average job performance ratings of the new hires after some
period of time on the job (e.g., after 3 months, 6 months, 12months)
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Countercyclical Hiringy Traditional approach to hiring: Hire only when the
organization has an open position to filly Problem:
y When economy is strong, everyone is hiringy Can then be hard to find enough well-qualified applicants
y When economy is weak, no one is hiringy Lots of good talent going to waste
y
Countercyclical hiring: Spread hiring out more evenlyover time in a planned wayy Need careful planning to hire in both good years & bad
y Reduces need to hire as many when good applicants are scarce
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Applicants Point ofViewy How do applicants decide which job offer to take?
y Objective factors: location, pay, benefits, job security,
promotion opportunities, nature of the work (e.g.,interesting work vs. boring), type of supervision, etc.
y Subjective factors: applicants perceived image of thecompany and its mission & culture, the degree of matchbetween the applicants values and the companys
values, etc.y Recruiting factors: politeness & competence of the
recruiter, promptness in handling application, etc.
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Outliney Hiring Process & Recruiting Goal
y Recruiting Philosophy
y Exempt vs. Nonexempt Jobsy Target Market for Recruiting
y Recruiting Methods
y Evaluation & Benchmarking of Recruiting
y Countercyclical Hiring
yApplicants Point of View
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