Personnel Planning and Recruiting: Gary Dessler

2005 Prentice Hall Inc.
All rights reserved.

PowerPoint Presentation by Charlie Cook
The University of West Alabama
t e n t h e d i t i o n
Gary Dessler
Part 2 Recruitment and Placement Chapter 5
Personnel Planning and Recruiting
After studying this chapter,
you should be able to:
1. Explain the main techniques used in employment
planning and forecasting.
2. List and discuss the main outside sources of
candidates.
3. Effectively recruit job candidates.
4. Name and describe the main internal sources of
candidates.
5. Develop a help wanted ad.
6. Explain how to recruit a more diverse workforce.
2005 Prentice Hall Inc. All rights reserved. 52
The Recruitment and Selection Process
1. Decide what positions youll have to fill through
personnel planning and forecasting.
2. Build a pool of candidates for these jobs by
recruiting internal or external candidates.
3. Have candidates complete application forms and
perhaps undergo an initial screening interview.
4. Use selection techniques like tests, background
investigations, and physical exams to identify viable
candidates.
5. Decide who to make an offer to, by having the
supervisor and perhaps others on the team interview
the candidates.
Steps in Recruitment and Selection Process
Figure 51
The recruitment and selection process is a series of
hurdles aimed at selecting the best candidate for the job.
Planning and Forecasting
Employment or personnel planning
The process of deciding what positions the firm
will have to fill, and how to fill them.
Succession planning
The process of deciding how to fill the companys
most important executive jobs.
What to forecast?
Overall personnel needs
The supply of inside candidates
The supply of outside candidates
Linking Employers Strategy to Plans
Figure 52
Forecasting Personnel Needs
Trend analysis
The study of a firms past employment needs over
a period of years to predict future needs.
Ratio analysis
A forecasting technique for determining future
staff needs by using ratios between a causal
factor and the number of employees needed.
Assumes that the relationship between the causal
factor and staffing needs is constant
The Scatter Plot
Scatter plot
A graphical method used to help identify the
relationship between two variables.
Size of Hospital Number of
(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Determining the Relationship Between
Hospital Size and Number of Nurses
Figure 53
Drawbacks to Scatter Plots
1. They focus on projections and historical relationships, and
assume that the firms existing structure and activities will
continue into the future.
2. They generally do not consider the impact the companys
strategic initiatives may have on future staffing levels.
3. They tend to support compensation plans that reward managers
for managing ever-larger staffs, and will not uncover managers
who expand their staffs irrespective of strategic needs.
4. They tend to bake in the nonproductive idea that increases in
staffs are inevitable.
5. They tend to validate and institutionalize existing planning
processes and ways of doing things, even in the face of rapid
change.
Using Computers to Forecast Personnel
Requirements
Computerized forecasts
The use software packages to determine of future
staff needs by projecting sales, volume of
production, and personnel required to maintain a
volume of output.
Generates figures on average staff levels required to
meet product demands, as well as forecasts for direct
labor, indirect staff, and exempt staff.
Typical metrics: direct labor hours required to produce
one unit of product (a measure of productivity), and three
sales projectionsminimum, maximum, and probable.
Forecasting the Supply of Inside
Candidates
Qualifications inventories
Manual or computerized records listing employees
education, career and development interests,
languages, special skills, and so on, to be used in
selecting inside candidates for promotion.
Manual Systems and Replacement Charts
Personnel replacement charts
Company records showing present performance
and promotability of inside candidates for the
most important positions.
Position replacement card
A card prepared for each position in a company to
show possible replacement candidates and their
qualifications.
Management
Replacement Chart
Showing Development
Needs of Future
Divisional Vice
President
Figure 54
Computerized Information Systems
Human Resource Information System (HRIS)
Computerized inventory of information that can be
accessed to determine employees background,
experience, and skills that may include:
Work experience codes
Product or service knowledge
Industry experience
Formal education
The Matter of Privacy of HR Information
The need to ensure the security of HR
information
There is a lot of HR information to keep secure.
Control of HR information can be established
through the use of access matrices that limit
users.
Legal considerations: The Federal Privacy Act of
1974 gives employees rights regarding who has
access to information about their work history and
job performance.
Forecasting the Supply of Outside
Candidates
Factors impacting the supply of outside
candidates
General economic conditions
Expected unemployment rate
Sources of information
Periodic forecasts in business publications
Online economic projections
U.S. Congressional Budget Office (CBO)
Bureau of Labor Statistics
U.S. Department of Labor: O*Net
Other federal agencies
Effective Recruiting
External factors affecting recruiting:
Looming undersupply of workers
Lessening of the trend in outsourcing of jobs
Increasingly fewer qualified candidates
Internal factors affecting recruiting:
The consistency of the firms recruitment efforts
with its strategic goals
The available resources, types of jobs to be
recruited and choice of recruiting methods
Nonrecruitment HR issues and policies
Line and staff coordination and cooperation
Effective Recruiting (contd)
Advantages of centralizing recruitment
Strengthens employment brand
Ease in applying strategic principles
Reduces duplication of HR activiites
Reduces the cost of new HR technologies
Builds teams of HR experts
Provides for better measurement of HR
performance
Allows for the sharing of applicant pools
Sample Acceptable Questions
Once A Conditional Offer Is Made
Figure 55
1. Do you have any responsibilities that conflict with the job vacancy?
2. How long have you lived at your present address?
3. Do you have any relatives working for this company?
4. Do you have any physical defects that would prevent you from
performing certain jobs where, to your knowledge, vacancies exist?
5. Do you have adequate means of transportation to get to work?
6. Have you had any major illness (treated or untreated) in the past 10
years?
7. Have you ever been convicted of a felony or do you have a history of
being a violent person? (This is a very important question to avoid a
negligent hiring or retention charge.)
8. Educational background. (The information required here would
depend on the job-related requirements of the position.)
Source: Kenneth Sovereign, Personnel Law (Upper Saddle River, NJ: Prentice Hall, 1999), p. 50.
Measuring Recruiting Effectiveness
What to measure and how to measure
How many qualified applicants were attracted
from each recruitment source?
Assessing both the quantity and the quality of the
applicants produced by a source.
High performance recruiting
Applying best-practices management techniques
to recruiting.
Using a benchmarks-oriented approach to analyzing and
measuring the effectiveness of recruiting efforts such as
employee referrals.
Selection Devices that Could be used
to Initially Screen Applicants
Table 51
Source: Kevin Carlson et al., Recruitment Evaluation: The Case for Assessing
the Quality of Applicants Attracted, Personnel Psychology 55 (2002), p. 470.
Note: *Higher is better.
Recruiting Yield Pyramid
Figure 56
Recruiting yield pyramid
The historical arithmetic relationships between recruitment
leads and invitees, invitees and interviews, interviews and
offers made, and offers made and offers accepted.
Internal Sources of Candidates: Hiring
from Within
Advantages
Foreknowledge of
candidates strengths
and weaknesses
More accurate view of
candidates skills
Candidates have a
stronger commitment
to the company
Increases employee
morale
Less training and
orientation required
Disadvantages
Failed applicants
become discontented
Time wasted
interviewing inside
candidates who will not
be considered
Inbreeding of the
status quo
Finding Internal Candidates
Job posting
Publicizing an open job to employees (often by
literally posting it on bulletin boards) and listing its
attributes.
Rehiring former employees
Advantages:
They are known quantities.
They know the firm and its culture.
Disadvantages:
They may have less-than positive attitudes.
Rehiring may sent the wrong message to current
employees about how to get ahead.
Finding Internal Candidates (contd)
Succession planning
The process of ensuring a suitable supply of
successors for current and future senior or key
jobs.
Succession planning steps:
Identifying and analyzing key jobs.
Creating and assessing candidates.
Selecting those who will fill the key positions.
Outside Sources of Candidates
Advertising
The Media: selection of the best medium depends
on the positions for which the firm is recruiting.
Newspapers (local and specific labor markets)
Trade and professional journals
Internet job sites
Marketing programs
Constructing an effective ad
Wording related to job interest factors should
evoke the applicants attention, interest, desire,
and action (AIDA) and create a positive
impression of the firm.
Help
Wanted
Ad
Figure 57
Source: The Miami Herald, March 24, 2004, p. SF.
Outside Sources of Candidates (contd)
Types of employment agencies:
Public agencies operated by federal, state, or local
governments
Agencies associated with nonprofit organizations
Privately owned agencies
Reasons for using a private employment agency:
When a firm doesnt have an HR department and is not
geared to doing recruiting and screening.
The firm has found it difficult in the past to generate a pool
of qualified applicants.
The firm must fill a particular opening quickly.
There is a perceived need to attract a greater number of
minority or female applicants.
The firm wants to reach currently employed individuals, who
might feel more comfortable dealing with agencies than with
competing companies.
The firm wants to cut down on the time its devoting to
recruiting.
Avoiding problems with employment agencies:
Give the agency an accurate and complete job description.
Make sure tests, application blanks, and interviews are part
of the agencys selection process.
Periodically review data on candidates accepted or rejected
by your firm, and by the agency. Check on the effectiveness
and fairness of the agencys screening process.
Screen the agency. Check with other managers or HR people
to find out which agencies have been the most effective at
filling the sorts of positions needed to be filled.
Review the Internet and a few back issues of the Sunday
classified ads to discover the agencies that handle the
positions to be filled.
Temp Agencies and Alternative Staffing
Benefits of Temps
Paid only when
working
More productive
No recruitment,
screening, and payroll
administration costs
Costs of Temps
Fees paid to temp
agencies
Lack of commitment to
firm
Concerns of Temp Employees
Treatment by employers in a dehumanizing, impersonal, and
ultimately discouraging way.
Insecurity about their employment and pessimistic about the
future.
Worry about their lack of insurance and pension benefits.
Being misled about their job assignments and in particular about
whether temporary assignments were likely to become full-time
positions.
Being underemployed (particularly those trying to return to the
full-time labor market).
In general they were angry toward the corporate world and its
values; participants repeatedly expressed feelings of alienation
and disenchantment.
Guidelines for Using Temporary Employees
Figure 58
1. Do not train your contingent workers.
2. Do not negotiate the pay rate of your contingent workers.
3. Do not coach or counsel a contingent worker on his/her job performance.
4. Do not negotiate a contingent workers vacations or personal time off.
5. Do not routinely include contingent workers in your companys employee
functions.
6. Do not allow contingent workers to utilize facilities intended for
employees.
7. Do not let managers issue company business cards, nameplates, or
employee badges to contingent workers without HR and legal approval.
8. Do not let managers discuss harassment or discrimination issues with
contingent workers.
9. Do not discuss job opportunities and the contingent workers suitability
for them directly.
10. Do not terminate a contingent worker directly.
Source: Adapted from Bohner and Selasco, Beware the Legal Risks of Hiring Temps, Workforce, October 2000, p. 53.
Working with a Temp Agency
Invoicing. Get a sample copy of the agencys invoice. Make sure it fits
your companys needs.
Time sheets. With temps, the time sheet is not just a verification of
hours worked. Once the workers supervisor signs it, its usually an
agreement to pay the agencys fees.
Temp-to-perm policy. What is the policy if the client wants to hire one of
the agencys temps as a permanent employee?
Recruitment of and benefits for temp employees. Find out how the
agency plans to recruit what sorts of benefits it pays.
Dress code. Specify the attire at each of your offices or plants.
Equal employment opportunity statement. Get a statement from the
agency that it is not discriminating when filling temp orders.
Job description information. Have a procedure whereby you can ensure
the agency understands the job to be filled and the sort of person you
want to fill it.
Offshoring/Outsourcing White-Collar and
Other Jobs
Specific issues in outsourcing jobs abroad
Political and military instability
Likelihood of cultural misunderstandings
Customers security and privacy concerns
Foreign contracts, liability, and legal concerns
Special training of foreign employees
Costs associated with companies supplying foreign
workers
Executive recruiters (headhunters)
Special employment agencies retained by
employers to seek out top-management talent for
their clients.
Contingent-based recruiters collect a fee for their
services when a successful hire is completed.
Retained executive searchers are paid regardless of the
outcome of the recruitment process.
Internet technology and specialization trends are
changing how candidates are attracted and how
searches are conducted.
Guidelines for Choosing a Recruiter
Make sure the firm is capable of conducting a
thorough search.
Meet the individual who will actually handle
your assignment.
Ask how much the search firm charges.
On demand recruiting services (ODRS)
A service that provides short-term specialized
recruiting to support specific projects without the
expense of retaining traditional search firms.
College recruiting
Recruiting goals
To determine if the candidate is worthy of further
consideration
To attract good candidates
On-site visits
Invitation letters
Assigned hosts
Information package
Planned interviews
Timely employment offer
Follow-up
Internships
Employee referrals
Applicants who are referred to the organization by
current employees
Referring employees become stakeholders.
Referral is a cost-effective recruitment program.
Referral can speed up diversifying the workforce
Walk-ins
Direct applicants who seek employment with or
without encouragement from other sources.
Courteous treatment of any applicant is a good
business practice.
Recruiting via the Internet
More firms and applicants are utilizing the Internet
in the job search process.
Advantages of Internet recruiting
Cost-effective way to publicize job openings
More applicants attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation
Selected Recruitment Web Sites
Figure 59
Source: HR Magazine, November 2003.
Ineffective and Effective Web Ads
Figure 510
Issues in Recruiting a More Diverse
Workforce
Single parents
Providing work schedule flexibility.
Older workers
Revising polices that make it difficult or
unattractive for older workers to remain
employed.
Recruiting minorities and women
Understanding recruitment barriers.
Formulating recruitment plans.
Instituting specific day-to-day programs.
Issues in Recruiting a More Diverse
Workforce (contd)
Welfare-to-work
Developing pre-training programs to overcome
difficulties in hiring and assimilating persons
previously on welfare.
The disabled
Developing resources and policies to recruit and
integrate disable persons into the workforce.
Developing and Using Application Forms
Application form
The form that provides information on education,
prior work record, and skills.
Uses of information from applications
Judgments about the applicants educational and
experience qualifications
Conclusions about the applicants previous
progress and growth
Indications of the applicants employment stability
Predictions about which candidate is likely to
succeed on the job
HR Scorecard
for Hotel Paris
International
Corporation*
Figure 511
Note: *(An abbreviated example showing selected
HR practices and outcomes aimed at implementing
the competitive strategy, To use superior guest
services to differentiate the Hotel Paris properties
and thus increase the length of stays and the return
rate of guests and thus boost revenues and
profitability)

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What are the main steps in the recruitment and selection process?

What are some techniques for forecasting personnel needs?

2005 Prentice Hall Inc.

All rights reserved.

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