1

aPHRi
2022

Functional Area 02
Recruitment and
Selection

Associate Professional in Human Resources – International

INTERNATIONAL HUMAN RESOURCE CERTIFICATION INSTITUTE

IHRCI® | www.ihrci.org
 Associate Professional in Human Resources – International (aPHRi) Workbook

Module Two: Recruitment and Selection

2022 Edition

Copyright © 2022 by International Human Resource Certification Institute

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www.ihrci.org
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Introduction
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4

Table of Content
Introduction ................................................................................................................................ 3
Table of Content ......................................................................................................................... 4
Part One: Workforce Planning .................................................................................................... 7
1. Human Resource Planning ............................................................................................. 7
1.1. Forecasts of Labor Demand ................................................................................. 7
1.2. Forecasts of Labor Supply.................................................................................... 8
1.3. Determining Labor Surplus or Shortage .............................................................. 8
1.4. Goal Setting and Strategic Planning .................................................................... 8
1.5. Implementing and Evaluating the HR Plan ........................................................ 11
2. Alternative Staffing ....................................................................................................... 12
2.1. Part-time ............................................................................................................ 12
2.2. Flextime ............................................................................................................. 13
2.3. Compressed workweeks .................................................................................... 13
2.4. Telecommuting .................................................................................................. 13
2.5. Job sharing......................................................................................................... 13
3. Diversity and Inclusion ................................................................................................. 13
3.1. Inventory of Action ............................................................................................ 14
3.2. Leadership Accountability ................................................................................. 15
3.3. The Role of HR ................................................................................................... 15
4. Employment Contract .................................................................................................. 16
4.1. Implied Agreement ............................................................................................ 16
4.2. Written Agreement ........................................................................................... 16
4.3. Job offer ............................................................................................................. 16
Part Two: Workforce Recruitment ............................................................................................ 20
1. Recruiting ..................................................................................................................... 20
1.1. The Purpose of Recruitment ............................................................................. 20
1.2. The Recruitment Process................................................................................... 21
1.3. Recruitment Planning ........................................................................................ 22
2. Sources of Recruitment ................................................................................................ 22
2.1. Internal Recruiting ............................................................................................. 22
2.2. External Recruiting ............................................................................................ 30
3. Recruiting Metrics ........................................................................................................ 33
3.1. Quantity of Applicants ....................................................................................... 33
3.2. Quality of Applicants ......................................................................................... 34
3.3. Stakeholders Satisfaction .................................................................................. 34
3.4. Time to Fill ......................................................................................................... 34
3.5. Cost per Hire ...................................................................................................... 34
3.6. Yield ratios ......................................................................................................... 35
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3.7. Selection Rate .................................................................................................... 35

3.8. Acceptance Rate ................................................................................................ 35
3.9. Success Base Rate .............................................................................................. 36
4. Increasing Recruiting Efficient and Effective ................................................................ 36
4.1. Résumé Mining .................................................................................................. 36
4.2. Applicant Tracking System (ATS) ........................................................................ 36
4.3. Employer Career Website .................................................................................. 37
4.4. Internal Mobility ................................................................................................ 37
4.5 Realistic Job Previews (RJPs) .............................................................................. 37
4.6. Candidate Management .................................................................................... 37
4.7. Post-Hire Assessment ........................................................................................ 41
5. Onboarding ................................................................................................................... 41
5.1. Recruiting .......................................................................................................... 42
5.2. Orientations ....................................................................................................... 43
5.3. Support Tools and Processes ............................................................................. 43
5.4. Coaching and Support ....................................................................................... 44
5.5. Training .............................................................................................................. 44
5.6. Feedback Tools .................................................................................................. 44
Part Three: Workforce Selection .............................................................................................. 45
1. Selection Process .......................................................................................................... 45
1.1. Screening Applicants ......................................................................................... 46
1.2. Testing and Reviewing ....................................................................................... 46
1.3. Interviewing Candidates .................................................................................... 47
1.4. Checking Reference and Background ................................................................ 47
1.5. Making a Selection ............................................................................................ 47
2. Criteria, Predictors, and Performance .......................................................................... 47
2.1. Validity ............................................................................................................... 48
2.2. Reliability ........................................................................................................... 49
2.3. Combining Predictors ........................................................................................ 49
2.4. Person-Environment Fit ..................................................................................... 50
3. Screening Applicants .................................................................................................... 51
3.1. Electronic Assessment Screening ...................................................................... 52
3.2. Application Forms.............................................................................................. 53
3.3. Résumés as Applications ................................................................................... 54
4. Testing and Reviewing .................................................................................................. 54
4.1. Cognitive Aptitude Tests .................................................................................... 55
4.2. Psychomotor / Physical Abilities........................................................................ 55
4.3. Job Knowledge Tests .......................................................................................... 56
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4.4. Work Sample Tests ............................................................................................ 56

4.5. Vocational Interest Tests ................................................................................... 56
4.6. Personality Tests ................................................................................................ 57
4.7. Integrity Test ...................................................................................................... 58
4.8. Substance Abuse Tests ...................................................................................... 58
4.9. Assessment Center (AC) .................................................................................... 58
5. Interviewing Candidates ............................................................................................... 59
5.1. Structured vs. Unstructured Interviews ............................................................ 60
5.2. Situational Interview ......................................................................................... 61
5.3. Behavioral Interview.......................................................................................... 61
5.4. STAR technique .................................................................................................. 61
5.5. Other Types of Interviews ................................................................................. 62
5.6. Interview Procedure .......................................................................................... 63
6. Checking Reference and Background ........................................................................... 63
6.1. Process of Reference Check............................................................................... 65
6.2. Background Check ............................................................................................. 66
6.3. Legal Constraints on Background Investigations ............................................... 67
6.4. References ......................................................................................................... 67
7. Making a Selection ....................................................................................................... 68
7.1. Selecting the Best-Fit ......................................................................................... 69
7.2. Communicating the Decision ............................................................................ 69
7.3. Placing Employment .......................................................................................... 69
Reference.......................................................................................................................... 73
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Part One: Workforce Planning

1. Human Resource Planning

Organizations should carry out human resource planning (HRP), also called workforce
planning, so as to meet business objectives and gain an advantage over competitors. To do
this, organizations need a clear idea of the strengths and weaknesses of their existing
internal labor force. They also must know what they want to be doing in the future—what
size they want the organization to be, what products and services it should be producing,
and so on. This knowledge helps them define the number and kinds of employees they will
need. Human resource planning compares the present state of the organization with its
goals for the future, then identifies what changes it must make in its human resources to
meet those goals. The changes may include downsizing, training existing employees in new
skills, or hiring new employees.
These activities give a general view of HR planning. They take place in the human resource
planning process shown in the following Figure. The process consists of three stages:
forecasting, goal setting and strategic planning, and program implementation and
evaluation. Each of these steps is important, but a recent survey found differences in how
well organizations carry out the steps. In particular, most organizations are active in
forecasting, but high—performing businesses are much more likely than others to do the
work of tying human resource planning to the company’s strategy.

Noe, R.A., Hollenbeck, J.R., Gerhart, B., & Wright, P.M. (2018) Fundamentals of Human
Resource Management (Seventh Edition). New York, NY: McGraw-Hill.

1.1. Forecasts of Labor Demand

The first step in human resource planning is forecasting, as shown in the top portion of
the Figure. In personnel forecasting, the I IR professional tries to determine the supply
8

of and demand for various types of human resources. The primary goal is to predict
which areas of the organization will experience labor shortages or surpluses.
Usually, an organization forecasts demand for specific job categories or skill areas. After
identifying the relevant job categories or skills, the planner investigates the likely
demand for each. The planner must forecast whether the need for people with the
necessary skills and experience will increase or decrease. There are several ways of
making such forecasts.
At the most sophisticated level, an organization might use trend analysis, constructing
and applying statistical models that predict labor demand for the next year, given
relatively objective statistics from the previous year. These statistics are called leading
indicators—objective measures that accurately predict future labor demand. They
might include measures of the economy (such as sales or inventory levels), actions of
competitors, changes in technology, and trends in the composition of the workforce
and overall population. For example, ranchers feed corn to their cattle, so an increase
in corn prices will cause an increase in the price of beef and a reduction in demand,
reducing the need for workers in slaughterhouses. Thus, when a severe drought in
2012 caused corn prices to spike, Cargill forecast a reduction in the need for workers in
its beef-processing operations the following year. The company closed a processing
plant in Plainview, Texas, ahead of the reduced demand, so it did not have to pay idle
workers there.3
Statistical planning models are useful when there is a long, stable history that can be
used to reliably detect relationships among variables. However, these models almost
always have to be complemented with subjective judgments of experts. There are
simply too many “once-in-a-lifetime” changes to consider, and statistical models
cannot capture them.
1.2. Forecasts of Labor Supply
Once a company has forecast the demand for labor, it needs an indication of the firm’s
labor supply. Determining the internal labor supply calls for a detailed analysis of how
many people are currently in various job categories or have specific skills within the
organization. The planner then modifies this analysis to reflect changes expected in the
near future as a result of retirements, promotions, transfers, voluntary turnover, and
terminations.
1.3. Determining Labor Surplus or Shortage
Based on the forecasts for labor demand and supply, the planner can compare the
figures to determine whether there will be a shortage or surplus of labor for each job
category Determining expected shortages and surpluses allows the organization to plan
how to address these challenges.
1.4. Goal Setting and Strategic Planning
This step in human resource planning is goal setting and strategic planning. The
purpose of setting specific numerical goals is to focus attention on the problem and
provide a basis for measuring the organization’s success in addressing labor shortages
and surpluses. The goals should come directly from the analysis of labor supply and
 9

demand. They should include a specific figure indicating what should happen with the
job category or skill area and a specific timetable for when the results should be
achieved.
For each goal, the organization must choose one or more human resource strategies. A
variety of strategies is available for handling expected shortages and surpluses of labor.
This planning stage is critical. The options differ widely in their expense, speed, and
effectiveness. Options for reducing a labor surplus cause differing amounts of human
suffering. The options for avoiding a labor shortage differ in terms of how easily the
organization can undo the change if it no longer faces a labor shortage. For example, an
organization probably would not want to handle every expected labor shortage by
hiring new employees. The process is relatively slow and involves expenses to find and
train new employees. Also, if the shortage becomes a surplus, the organization will
have to consider laying off some of the employees. Layoffs involve another set of
expenses, such as severance pay, and they are costly in terms of human suffering.
Another consideration in choosing an HR strategy is whether the employees needed
will contribute directly to the organization success. Organizations are most likely to
benefit from hiring and retaining employees who provide a core competency—that is,
a set of knowledge and skills that make the organization superior to competitors and
create value for customers. At a store, for example, core competencies include
choosing merchandise that shoppers want and providing shoppers with excellent
service. For other work that is not a core competency—say, cleaning the store and
providing security—the organization may benefit from using HR strategies other than
hiring full—time employees.
There are major options for reducing an expected labor surplus and avoiding an
expected labor shortage as below:

Noe, R.A., Hollenbeck, J.R., Gerhart, B., & Wright, P.M. (2018) Fundamentals of Human
Resource Management (Seventh Edition). New York, NY: McGraw-Hill.
10

1.4.1. Downsizing
Downsizing is the planned elimination of large numbers of personnel with the goal of
enhancing the organization’s competitiveness.
Although downsizing has an immediate effect on costs, much of the evidence suggests
that it hurts long—term organizational effectiveness. This is especially true for certain
kinds of companies, such as those that emphasize research and development and
where employees have extensive contact with customers. The negative effect of
downsizing was especially high among firms that engaged in high—involvement work
practices, such as the use of teams and performance—related pay incentives. As a
result, the more a company tries to compete through its human resources, the more
layoffs hurt productivity.
Many problems with downsizing can be reduced with better planning. Instead of
slashing jobs across the board, successful downsizing makes surgical strategic cuts that
improve the company’s competitive position, and management addresses the problem
of employees becoming demoralized.
1.4.2. Reducing Hours
Reducing Hours Given the limitations of downsizing, many organizations are more
carefully considering other avenues for eliminating a labor surplus. Besides the thought
that this is a more equitable way to weather a slump in demand, companies choose a
reduction in work hours because it is less costly than layoffs requiring severance pay,
and it is easier to restore the work hours than to hire new employees after a
downsizing effort.
1.4.3. Early-Retirement Programs
Under the pressures associated with an aging labor force, many employers try to
encourage older workers to leave voluntarily by offering a variety of early-retirement
incentives. The more lucrative of these programs succeed by some measures. Research
suggests that these programs encourage lower-performing older workers to retire.
Many organizations are moving from early—retirement programs to phased—
retirement programs. In a phased—retirement program, the organization can continue
to enjoy the experience of older workers while reducing the number of hours that
these employees work, as well as the cost of those employees. This option also can
give older employees the economic and psychological benefits of easing into
retirement, rather than being thrust entirely into a new way of life.
1.4.4. Employing Temporary and Contract Workers
While downsizing has been a popular way to reduce a labor surplus, the most
widespread methods for eliminating a labor shortage are hiring temporary and
contract workers and outsourcing work. Employers may arrange to hire a temporary
worker through an agency that specializes in linking employers with people who have
the necessary skills. The employer pays the agency, which in turn pays the temporary
worker. Employers also may contract directly with individuals, often professionals, to
provide a particular service.
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1.4.5. Outsourcing
Instead of using a temporary or contract employee to fill a single job, an organization
might want a broader set of services. Contracting with another organization to perform
a broad set of services is called outsourcing. Organizations use outsourcing as a way to
operate more efficiently and save money. They choose outsourcing firms that promise
to deliver the same or better quality at a lower cost. One reason they can do this is that
the outside company specializes in the service and can benefit from economies of scale
(tile economic principle that producing something in large volume tends to cost less for
each additional unit than producing in small volume). This efficiency is often tile
attraction for outsourcing human resource functions such as payroll. Costs also are
lower when the outsourcing firm is located in a part of the world where wages are
relatively low. The labor forces of countries such as China, India, Jamaica, and those in
Eastern Europe have been creating an abundant supply of labor for unskilled and low-
skilled work.
1.4.6. Overtime and Expanded Hours
Organizations facing a labor shortage may be reluctant to hire employees, even
temporary workers, or to commit to an outsourcing arrangement. Especially if the
organization expects the shortage to be temporary it may prefer an arrangement that is
simpler and less costly. Under some conditions, these organizations may try to garner
more hours from the existing labor force, asking them to go from part—time to full-
time status or to work overtime.
A major downside of overtime is that the employer must pay non-management
employees one and a half times their normal wages for work done overtime. Even so,
employers see overtime pay as preferable to the costs of hiring and training new
employees. The preference is especially strong if the organization doubts that the
current higher level of demand for its products will last long.
For a short time at least, many workers appreciate the added compensation for
working overtime. Over extended periods, however, employees feel stress and
frustration from working long hours. Overtime therefore is best suited for short—term
labor shortages.
1.5. Implementing and Evaluating the HR Plan
For whatever HR strategies are selected, the final stage of human resource planning
involves implementing the strategies and evaluating the outcomes. When
implementing the HR strategy, the organization must hold some individual accountable
for achieving the goals. That person also must have the authority and resources
needed to accomplish those goals. It is also important that this person issue regular
progress reports, so the organization can be sure that all activities occur on schedule
and that the early results are as expected.
Implementation that ties planning and recruiting to the organization’s strategy and to
its efforts to develop employees becomes a complete program of talent management.
Today’s computer systems have made talent management more practical. Companies
can tap into databases and use analytic tools to keep track of which skills and
12

knowledge they need, which needs have already been filled, which employees are
developing experiences to help them meet future needs, and which sources of talent
have met talent needs most efficiently For example, large warehouses are using labor
management systems to staff their facilities in the most efficient way. If the system
detects a surge of orders to be picked, it can help managers reassign workers to keep
up with the highest—priority tasks and delay low—priority work. The systems also can
forecast the number of positions needed to get work done on time. Furthermore, labor
management systems are useful for other HR decisions, such as work design and
performance measurement.
In evaluating the results, the most obvious step is checking whether the organization
has succeeded in avoiding labor shortages or surpluses. Along with measuring these
numbers, the evaluation should identify which parts of the planning process
contributed to success or failure. For example, consider a company where meeting
human resource needs requires that employees continually learn new skills. If there is
a gap between needed skills and current skill levels, the evaluation should consider
whether the problem lies with failure to forecast the needed skills or with
implementation. Are employees signing up for training, and is the right kind of training
available?
2. Alternative Staffing
Alternative staffing also referred to as Contingent staffing, also called flexible staffing, it
uses alternative recruiting sources and workers who are not regular employees. Many
staffing approaches are possible other than conventional full-time arrangements where
the organization directly hires, supervises, and provides compensation and benefits to
regular employees.
There are infinite possibilities in alternative work schedules. Common types include part-
time, flextime, compressed workweeks, telecommuting and job sharing.

2.1. Part-time
Part-time workers regularly work less than a full-time schedule. Part-time schedules may
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include working only a few days a week or working fewer hours five days a week.
2.2. Flextime
Flextime is when employers have an expectation that employees work a standard amount
of hours a week or day, but allow flexibility in their starting and ending times. Some
employees, due to family or personal obligations or preferences, work very early in the
morning and leave earlier in the afternoon. Other flextime employees may prefer or need
to start later in the day and work into the evening.
2.3. Compressed workweeks
Compressed workweeks allow employees to work a standard number of work hours over
less than a five-day period in one week or a 10-day period in two weeks. The most
common compressed workweek schedule is probably 4/10s (10 hours a day for four days a
week). Many employers allow exempt employees to work 9/9s biweekly. This means the
employee regularly works 9 hours a day with one day off every other week. The 9/9
schedule usually is not preferable for nonexempt workers due to the concern of overtime
pay every other week. In addition, in the summertime it is a fairly common practice for
some employers to close early on Fridays, and therefore employees are scheduled to work
9-hour days Monday through Thursday and only a half-day on Friday.
2.4. Telecommuting
Telecommuting is when employees are able to perform work from a remote location
(usually a home office) rather than commuting into the company facility. It is common for
employers to offer telecommuting on a part-time or periodic basis (e.g., one or two days a
week or month). Due to all the technological advances, this practice will likely increase as
more and more jobs can be performed completely remotely.
2.5. Job sharing
Job sharing is the practice of two different employees performing the tasks of one full-
time position. A full-time position filled by two employees that have complimentary part-
time work schedules can ensure there is always coverage during normal work hours.
3. Diversity and Inclusion
To secure growth in today’s increasingly competitive world, businesses need to leverage
the potential of the whole workforce, not just a select few employees. They need to do
more with more. The most successful organizations achieve this by creating an
environment in which everyone is empowered to develop, to contribute, and to succeed.
Diversity means all the ways we differ. Some of these differences we are born with and
cannot change. Anything that makes us unique is part of this definition of diversity.
Inclusion involves bringing together and harnessing these diverse forces and resources,
in a way that is beneficial. Inclusion puts the concept and practice of diversity into action
by creating an environment of involvement, respect, and connection—where the
richness of ideas, backgrounds, and perspectives are harnessed to create business value.
Organizations need both diversity and inclusion to be successful.
First and foremost, diversity must be defined organizationally from the top down and
14

confirmed from the bottom up. This includes, but is not limited to, incorporating diversity
initiatives into the mission and vision statements, the employee handbook, values
statements, human resource policies, human resource training, and press releases.
Having a separate diversity statement (similar to a mission statement) is also a good way
to underline how an organization is committed to diversity. Following this process, upper
management must also align resource allocation with diversity—committing time,
efforts, capital, and staff to promoting it.
Many companies struggle and do not realize the full potential of a diverse and inclusive
workforce. These organizations might still be focused on numbers and lack a complete
understanding of the business imperative. While diversity in organizations is increasingly
respected as a fundamental characteristic, neither acceptance nor appreciation have
equated to inclusive workplaces where unique vantage points of diverse people are
valued. Inclusion enhances an organization’s ability to achieve better business results by
engaging people from diverse backgrounds and perspectives through participatory
decision-making.
An organization’s journey to become inclusive begins with a critical but simple inquiry:
what actions is my organization taking to foster an inclusive work culture where
uniqueness of beliefs, backgrounds, talents, capabilities, and ways of living are welcomed
and leveraged for learning and informing better business decisions?
This inventory of actions must begin with a macro view of diversity considering
workforce, supplier diversity, philanthropy, communications, etc. Organizational systems
must be assessed to determine the degree to which equitable access is provided to all.
Several key strategies will also need to be revisited and even reinvented to facilitate total
alignment of organizational systems, processes, and structures to transform the culture.
Where gaps and barriers are identified, it is important to understand how inclusion can
address deficiencies and support effective decision-making and better business results in
these areas. Findings from the inventory are the basis of an action plan.
3.1. Inventory of Action
Work from a well-documented plan of action complete with goals, objectives and lots of
small manageable tasks to help realize change. Achieving an inclusive work environment
is a culture change initiative, but it does not require lots of large undertakings.
Incorporate diversity principles across business functions and units. Diversity supports
inclusion and should be practiced throughout all aspects of the organization, even in
developing the plan for working toward a more inclusive culture. Inclusive practices must
be integrated into product development, communications, training and education, career
and professional development, recruitment and retention and overall leadership and
management practices.
Create opportunities for cross-generational work teams and interactions. Cross-
functional teams comprised of men and women who are intergenerational and racially
diverse stimulate new thinking, which leads to greater possibilities.
Invest in team building and leadership skills, as they are of increasing importance to
benefit from diversity and to achieve inclusion. Instilling the organization with
 15

competencies that foster successful teams and skills for leading diverse teams is a critical
success factor.
“Mind the Middle.” innovative organizations find ways to “mind the middle” without
sacrificing executive and entry levels. While some organizations show slow progress on
the diversity journey due to the lack of support from its senior leadership, many
organizations find middle management derails progress.
3.2. Leadership Accountability
Following the above expressions of strategy, leaders and managers must now be held
accountable. This means that management will carefully control diversity, minimizing the
negative elements (stereotyping, discrimination, inequity, groupthink, etc.) while
empowering the positive elements (innovative thinking, health conflict, inclusive culture,
etc.). Managers must also actively work to achieve diversity in work groups, arranging
assignments strategically to capture the inherent value of diversity. When failures in
diversity management occur, managers must be accountable in taking corrective action.
Unfortunately many well-meaning diversity and inclusion initiatives fail because
organizations behave defensively, putting corporate policies in place to increase diversity
(appointing a Chief Diversity Officer, setting up diverse candidate slates, implementing
flexible working policies) and thus avoid expensive lawsuits, without helping individual
employees develop a mindset of inclusion.
Organizations that are brave enough to address inclusion as a cultural issue will reap
enormous benefits. The starting point is a few key shifts in attitude: from diversity alone
(delivered at a corporate level) to diversity and inclusion (delivered by individuals); from
demographics to diversity of thinking; and from diversity and inclusion as an issue of
compliance to an essential facet of business success.
3.3. The Role of HR
Upper management and departmental managers are not the only individuals involved in
diversity management, however. The human resource department specifically has a great
deal of responsibility in managing the overall diversity of the organization. Human
resources can consider diversity within the following areas:

• Hiring

• Compensation equality

• Training

• Employee policies

• Legal regulations

• Ensuring accessibility of important documents (e.g., translating human resource

materials into other languages so all staff can read them)

• Contracts
The role of human resources is to ensure that all employee concerns are being met and
16

that employee problems are solved when they arise. Human resource professionals must
also pursue corporate strategy and adhere to legal concerns when hiring, firing, paying,
and regulating employees. This requires careful and meticulous understanding of both
the legal and organizational contexts as they pertain to diversity management.
4. Employment Contract
An employment contract can be verbal, written or both to be valid. The agreement can
be either explicit or implied. With an implied contract there may be no formal agreement
in writing that an employee signs, but an employer’s promises can be binding all the
same. Anything discussed between the two parties can be construed as a spoken
employment agreement. An explicit employment contract details the employee’s job
duties, compensation and number of work hours in writing. Implicit contracts imply
expectations on the part of both employers and employees. In most cases, employees
operate under an implied and explicit employment contract.
4.1. Implied Agreement
Often, employment agreements are implied from verbal statements or through
information stated in employee handbooks and company policies. Implied employment
contracts come about when an employer discusses details relating to job duties,
compensation, benefits and termination of employment with an interviewee or current
employee. Likewise, much of the information published in the company’s employee
handbook is generally the same as the terms the employer would specify in a written
employment contract. To avoid creating an implied agreement, an employer must be
careful not to make specific promises during an interview or in a job offer letter. The
same goes for any information published in the employee handbook. Employers must
always make it clear verbally and in writing that the employer/employee relationship is
at will, which means that either the employer or employee can terminate employment at
any time.
4.2. Written Agreement
An employer is not obligated to enter into a written employment contract with an
employee. However, even when an employee signs a written employment contract, the
employer needs to be cautious about the wording he uses. In addition to providing
employees with written job descriptions, the employer should clarify the right to change
or add job duties. Similarly, an employer should make it clear in a written contract that
offering the employee benefits is optional. The employer should state that benefits could
change at any point, although the employee will be advised of a change before it occurs.
To protect against misunderstandings, an employer often will ask employees to sign a
document agreeing to at-will employment rather than sign an employment contract.
4.3. Job offer
A job offer letter is an informal employment contract used in private sector employment.
The job offer letter usually spells out just the basics of compensation and benefits, paid
time off, job title, and reporting relationships. Employers who use a job offer letter with
senior employees may need to offer senior level employees a job offer letter that spells
out many of the same components you would find in a formal employment contract.
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Many senior employees prefer an attorney negotiated employment contract that spells
out all agreements in detail. Depending on the position the employment contract or job
offer letter defines, the employee may be required to sign a non-disclosure agreement
and/or a non-compete agreement to get hired. These are usually non-negotiable signed
documents.
Every employment contract is different. In a non-union setting, their level of detail
depends on the persistence of the employee and employer who are negotiating the
details of the contract. In any contract negotiation, legal representation is recommended.
As an employer, you also have the option of negotiating with the prospective employee if
your first offer is not accepted or your prospective employee makes a counter offer. An
employment contract generally covers:
4.3.1. Define the Position
Any employment contract should provide a prospective employee with a clear
understanding of the job requirements, including the name of the position and the
essential duties it entails. The contract should also spell out the place and hours of
employment. Use concise and straightforward language, leaving no doubt as to your
expectations as an employer.
4.3.2. Length of Agreement
When preparing a contract, it must contain elements favorable to both parties.
Therefore, an employment contract should dictate an original term of employment and
stipulate conditions that are applicable to you and your employee to extend, reduce or
terminate the contract term.
4.3.3. Performance
In reviewing performance requirements for insertion in the contract, consider
establishing any skills you would like upgraded during the term of the contract. Include
production goals you want realized and revenue enhancements you require. If a sales-
based position, insert sales volume expectations and recruitment of new clients.
Incorporate any other performance barometers you plan to measure and for which you
will hold the new employee accountable.
4.3.4. Compensation
Any prospective employee expects an employment contract that defines compensation.
When you negotiate a salary and put the figures in the contract, specify a base wage and
dictate the method of payment -- salaried, hourly or commission. Commit your overtime
authorization policy to the contract. If the position involves commission payment, spell
out the percentage; how you handle draws against commissions; and how termination of
employment affects any pending contracts. If your company has an incentive program,
clearly state its objectives. Include how you handle expense accounts as well.
4.3.5. Benefits
Spell out your new employee's benefit package in the contract. Include any health,
dental, vision or other insurances you offer. Also, state any percentages of benefit
premiums the employee has to pay. If professional licenses, dues or memberships are
18

necessary, make it clear in the contract who pays for their acquisition and payment. Also
cover other items such as holidays, vacations, stock options, any profit sharing your
company offers and retirement plans you provide for employees.
4.3.6. Other Elements
If applicable, you may want to include covenants that include non-disclosure language,
non-solicitation periods, a non-recruit agreement and a non-compete clause. In some
states, non-compete clauses are not enforceable. Check with your attorney for laws in
your company's state of operation. You may also consider the inclusion of a property
rights clause that covers ownership of existing clients and equipment, as well as any
licenses, patents or copyrights held by your company.
4.3.7. Termination
Although not a pleasant thought, you must cover termination language. Specifically
explain what happens if an employee is let go with or without cause. Ensure that you
include a definition of both scenarios and cover severance terms that apply in each
incidence.
Either an employee or employer can violate the terms of an employment agreement
whether the contract is written or verbal. Frequently, allegations of breach of contract
involve issues of compensation or termination of employment. Enforcing an employment
contract varies according to state laws. For this reason, before entering into a written
employment contract, be clear on the terms and provisions of the contract. In some
states, a verbal agreement of employment is not enforceable if a company promises an
individual employment for more than one year. In the case of longer term employment,
there should be a signed, written agreement. Otherwise, employment is presumed to be
at will and can be terminated by either party.
4.4. Employment at will
Employment at will means that an employee can be terminated at any time without any
reason, explanation, or warning. It also means that an employee can quit at any time for
any reason.
If an employer/employee who is in an at-will employment situation decides to terminate
the employment relationship, the other party has no recourse. In the United States, in
almost every state (Montana is the exception), an employee is considered to be an at-will
employee unless there is proof otherwise, such as an employment contract. However,
terminating an at-will employee is not always as straightforward as it may seem.
Employers should also remember that some countries or states have more stringent
requirements. Be sure to check the local labor laws before making any termination
decision. Here are some of the exceptions to the at-will employment doctrine for
reference:
4.4.1. An employee cannot be fired for a discriminatory reason
Many country or state laws protect employees from discrimination based on race,
national origin, religion, color, or sex. For another example, the Americans with
Disabilities Act makes it illegal to discriminate against someone because of a disability.
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4.4.2. An employee cannot be fired out of retaliation for performing a legally protected
action
For example, an employer cannot fire an employee for filing a workers’ compensation
claim.
4.4.3. An employee with a contract that outlines the terms of employment cannot be
fired outside of those terms.
In other words, contracts supersede at-will employment assumptions. Some states also
provide protections for implied (unwritten) contracts.
4.4.4. An employer who provides some protections in employment policies, such as firing
only for just cause, must abide by those protections
In this case, the employer has opted to forgo the at-will option by providing other
protections.
20

Part Two: Workforce Recruitment

1. Recruiting
Recruitment includes those practices and activities carried on by the organization with the
primary purpose of identifying and attracting potential employees. Recruiting is the
process of (a) generating applicants, (b) maintaining applicant status, and (c) influencing
job choice decisions. That is, (a) certain recruitment activities (e.g., advertising on a
Spanish-speaking radio station) may influence the number and type of individuals who
apply for a position, (b) certain activities (e.g., professional treatment during a site visit)
may affect whether job applicants withdraw during the recruitment process, and (c)
certain recruitment actions (e.g., the timeliness of a job offer) may influence whether a job
offer is accepted.
In other word, recruitment involves searching for and obtaining qualified job candidates in
such numbers that the organization can select the most appropriate person to fill its job
needs. In addition to filling job needs, the recruitment activity should be concerned with
satisfying the needs of the job applicants. Consequently, recruitment does not only attract
individuals to an organization, but also increases the chance of retaining them once they
are hired. This can be affected by recruiting people that can 'fit' within the culture of the
firm.
1.1. The Purpose of Recruitment
As stated above, the general purpose of recruitment is that of providing a pool of
potential qualified job candidates. Attracting the appropriate quantity of applicants is
necessary but not sufficient. The quality of applicants is the critical factor in meeting
recruitment goals. More specifically, the purposes of recruitment include the following:

• Determine the present and future recruitment needs of the organization in

conjunction with HR planning and job analysis activities.

• Increase the pool of qualified job candidates with minimum cost.

• Enhance the success rate of the selection process by reducing the number of
obviously under-qualified job applicants.

• Reduce the probability that job applicants, once recruited and selected, will leave
the organization after only a short period of time.

• Increase organizational and individual effectiveness in the short and long term.

• Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.
Apart from the traditional functions of recruitment mentioned above, quality
organizations -via recruitment - can attract individuals that: have a potential to add
value to the firm; be able to work in teams; and possess the new leadership skills
demanded of managers in a TQM environment. Another major decision that
organizations following a quality improvement program face is who should recruit