978-0134235455 Chapter 5 Lecture Note

Part Two

Recruitment, Placement, and Talent Management

Chapter 5

Personnel Planning and Recruiting

Lecture Outline:

Introduction

Workforce Planning and Forecasting

Strategy and Workforce Planning

Improving Performance: The Strategic Context

Forecasting Personnel Needs (Labor Demand)

Forecasting the Supply of Inside Candidates

Forecasting the Supply of Outside Candidates

Predictive Workforce Monitoring

Improving Performance: HR as a Profit Center

Match Projected Labor Supply and Labor Demand

Succession Planning

Why Effective Recruiting Is Important

The Recruiting Yield Pyramid

Know Your Employment Law

The Supervisor Role

Internal Sources of Candidates

Finding Internal Candidates

Employee Engagement Guide for Managers

Promotion from Within

Outside Sources of Candidates

Informal Recruiting and the Hidden Job Market

Recruiting via the Internet

Improving Performance Through HRIS: Using Applicant Tracking

Trends Shaping HR: Science in Talent Management

Trends Shaping HR: Digital and Social Media

Advertising

Employment Agencies

Recruitment Process Outsourcers

Temporary Workers and Alternative Staffing

Know Your Employment Law

Trends Shaping HR: The New Extended Workforce

Offshoring and Outsourcing Jobs

Executive Recruiters

Improving Performance: HR Tools for Line Managers and Small Businesses

Referrals and Walk-Ins

Chapter 5: Personnel Planning and Recruiting 5-2

On-Demand Recruiting Services

College Recruiting

Telecommuters

Military Personnel

Improving Performance: HR as a Profit Center

Recruiting a More Diverse Workforce

Recruiting Women

Recruiting Single Parents

Older Workers

Diversity Counts

Recruiting Minorities

The Disabled

Developing and Using Application Forms

Purpose of Application Forms

Application Guidelines

Know Your Employment Law

Using Application Forms to Predict Job Performance

Mandatory Arbitration

Chapter Review

Where Are We Now…

The purpose of this chapter is to improve your effectiveness in recruiting candidates. The topics

we discuss include personnel planning, forecasting, recruiting job candidates, and developing

and using application forms.

Interesting Issues:

Like most luxury hotel businesses, Four Seasons builds its strategy around offering superior

customer service, and doing that requires staffing its hotels with highly motivated and high-

morale employees. Therefore, in thinking through how to recruit employees, Four Seasons

managers sought a way to use recruitment to encourage the employee motivation and morale that

would lead to improved customer service. We will see what they did.

Learning Objectives:

5-1. Explain the main techniques used in employment planning and forecasting.

5-2. Explain and give examples for the need for effective recruiting.

5-3. Name and describe the main internal sources of candidates.

5-4. Discuss a workforce planning method you would use to improve employee engagement.

5-5. List and discuss the main outside sources of candidates.

5-6. Explain how to recruit a more diverse workforce.

5-7. Discuss practical guidelines for obtaining application information.

Annotated Outline:

Chapter 5: Personnel Planning and Recruiting 5-3

Introduction – Figure 5-1 illustrates the recruiting and selecting process.

I. Workforce Planning and Forecasting

A. Strategy and Workforce Planning – workforce plans should flow from the

firm’s strategic plans and will be affected by the need to fill or eliminate

positions and reduce or increase cost.

B. Improving Performance: The Strategic Context

C. Forecasting Personnel Needs (Labor Demand) – forecast revenues, and then

estimate the size of the staff required to achieve this sales volume.

1. Trend Analysis requires studying a firm’s employment levels over a

period of years to predict future needs.

2. Ratio Analysis involves making forecasts based on the ratio between

(1) some causal factor, such as sales volume, and (2) the number of

employees required, like the number of salespeople.

3. The Scatter Plot shows graphically how two variables (such as sales

and your firm’s staffing levels) are related.

4. Managerial Judgment – is needed to adjust the forecast.

D. Forecasting the Supply of Inside Candidates – (availability of candidates)

1. Personnel Replacement Charts – show the present performance and

promotability for each position’s potential replacement. Position

replacement cards can also be created for each position to show

possible replacements as well as their present performance, promotion

potential, and training.

2. Computerized skills inventories systems are used to help management

anticipate staffing and skill shortages and facilitate workforce

planning, recruitment, and training.

3. Markov Analysis involves creating a matrix that shows probabilities

that employees in the chain of feeder positions for a key job will move

from position to position and therefore be available to fill the key

position.

E. Forecasting the Supply of Outside Candidates – this may involve considering

general economic conditions and the expected rate of unemployment.

F. Predictive Workforce Monitoring – having a talent management philosophy

for workforce planning requires organizations to pay continuous attention to

workforce planning issues.

G. Improving Performance: HR as a Profit Center

1. Predicting Labor Needs

H. Match Projected Labor Supply and Labor Demand – this is laying out the

employer’s projected workforce and skill gaps, as well as staffing plans for

filling these gaps.

I. Succession Planning – involves developing workforce plans for the

company’s top positions and developing organizational leadership to enhance

performance.

II. Why Effective Recruiting Is Important

Chapter 5: Personnel Planning and Recruiting 5-4

A. The Recruiting Yield Pyramid is used by some managers to gauge the

number of applicants they must generate to hire the required number of

new employees. Figure 5.5 illustrates this example.

B. Know Your Employment Law

1. Recruiting Employees – numerous federal, state, and local laws

and court decisions restrict what employers can and cannot do

when recruiting job applicants.

C. The Supervisor’s Role – the HR manager charged with filling an open

position is seldom familiar with the job itself and must rely on the

supervisor to give the details about and specifications of the job or

position.

III. Internal Sources of Candidates

A. Finding Internal Candidates – in other words, current employees or “hiring

from within” are often the best source of candidates and is increasingly

popular.

IV. Employee Engagement Guide for Managers

A. Promotion from Within – many employers encourage internal recruiting,

on the reasonable assumption that doing so improves employee

engagement.

V. Outside Sources of Candidates

A. Informal Recruiting and the Hidden Job Market – many (or most) job

openings aren’t publicized at all; jobs are created and become available when

employers serendipitously encounter the right candidates.

B. Recruiting via the Internet – most employers find that the Internet is their best

choice for recruitment efforts.

1. Pros – online recruiting generates more responses, more quickly, and

for a longer time at less cost than just about any other method. Online

recruiting also has a stronger effect on applicant attraction than printed

ads do.

2. Cons – online recruiting may inadvertently exclude older people and

some minorities since they are less likely to use the Internet. Internet

overload is another.

C. Improving Performance Through HRIS: Using Applicant Tracking – most

employers now use applicant tracking software to screen applicants. Most of

the applicant tracking systems (ATS) is from application service providers.

(ASPs) – these basically redirect applicants from the employers to the ASP’s

site.

D. Trends Shaping HR: Science in Talent Management – most employers use

tools like job boards to produce large numbers of recruits, and then use ATS

and screening systems to cut those numbers down.

1. Improving Online Recruiting Effectiveness – Figure 5-6 illustrates.

Chapter 5: Personnel Planning and Recruiting 5-5

E. Trends Shaping HR: Digital and Social Media – Accenture predicts that about

80% of new recruits will soon come through prospective employees’ social

media connections.

F. Advertising – Web-based recruiting is replacing traditional help

wanted print ads, at a glance almost any paper will confirm that print

ads are still popular. To use successfully, employers should address

two issues: the advertising medium and the ad construction.

1. The Media – the best medium should be selected based on the

positions for which you are recruiting.

2. Constructing (Writing) the Ad – many experienced advertisers use a

guide called AIDA (attention, interest, desire, action) to construct their

ads. Figure 5-7 illustrates this AIDA guide.

G. Employment Agencies – there are three main types of employment agencies:

1) public agencies operated by federal, state, or local government; 2) agencies

associated with nonprofit organizations; and 3) privately owned agencies.

H. Public and Nonprofit Agencies – every state has a public, state-run

employment service agency supported by the Department of Labor, in part

through grants and other assistance, such as a nationwide computerized job

bank. Most (non-profit) professional and technical societies and special public

agencies have units that help their members or people in special categories

find jobs.

I. Private Agencies – are important sources of clerical, white-collar, and

managerial personnel. They charge fees (set by state law and posted in their

offices) for each applicant they place. The employer pays the fee.

J. Recruitment Process Outsourcers – special vendors that handle all or most of

an employer’s recruiting needs.

K. Temporary Workers and Alternative Staffing – employers increasingly

supplement their permanent workforces by hiring contingent or temporary

workers. Also known as part-time or just-in-time workers. Employers have

used “temps” for short-term projects and to fill-in for employees who were out

sick or on vacation.

1. The Temp Agency – employers can hire temp workers either through

direct hires or through the use of temporary staff agencies.

2. Temp Employee’s Concerns – to make temporary relationships

successful, those supervising temps should understand their concerns.

L. Know Your Employment Law

1. Contract Employees – for the purpose of most employment laws, with

certain limited exceptions, employees of temporary staffing firms

working in an employer’s workplace will be considered to be

employees both of the agency and of the employer.

M. Trends Shaping HR: The New Extended Workforce – many employers today

build their staff wholly or in part around an extended workforce consisting,

for instance, of freelance programmers, designers, or marketers.

N. Offshoring/Outsourcing Jobs – rather than bringing people in to do the

company’s job, outsourcing and offshoring sends the job out. There are

Chapter 5: Personnel Planning and Recruiting 5-6

several specific issues that the HR manager should keep in mind when

considering this option.

O. Executive recruiters, also called headhunters, are special employment

agencies retained by employers to seek out top-management talent for their

clients.

1. Working with Recruiters – retaining and working with executive

recruiters requires some caution.

2. Internal Recruiting – many employers are bringing management

recruiting in-house. They have their own internal executive recruiting

offices doing most of their own management recruiting.

P. Improving Performance: HR Tools for Line Managers and Small Businesses

1. Recruiting 101

Q. Referral and Walk-Ins – employee referral campaigns are a very important

recruiting option. The big advantage is that referrals generate “more

applicants, more hires, and a higher yield ratio (hires/applicants).” Walk-ins

are direct applicants made at your office.

R. On-Demand Recruiting Services (ODRS) – this service provides short-term,

specialized recruiting to support specific projects without the expense of

retaining traditional search firms. They are paid by the hour or project, instead

of a percentage fee, to support a specific project. ODRS firms charge by time,

rather than per hire.

S. College Recruiting – involves sending employers’ representatives to college

campuses to prescreen applicants and create an applicant pool from the

graduating class. This type of recruiting can be expensive. There are two

main goals: 1) to determine if a candidate is worthy of further consideration,

and 2) to make the employer attractive to candidates.

T. On-Campus recruiting goals involve attracting good candidates and

determining whether a candidate is worthy of further consideration. The

school’s reputation and the performance of previous hires from that source

affect school selection.

1. Internships – this can be a win-win situation for the student and the

employer. For the student, it can mean honing business skills, learning

more about potential employers, and discovering one’s career likes

(and dislikes). For employers, they can use interns to make useful

contributions while evaluating them as possible full-time employees.

U. Telecommuters – do all or most of their work remotely, often from home,

using information technology.

V. Military Personnel – returning and discharged U.S. military personnel

provide an excellent soure of trained and disciplined recruits.

W. Improving Performance: HR as Profit Center (Cutting Recuritment Cost)

VI. Recruiting a More Diverse Workforce

A. Recruiting Women – the most effective strategy is top management driven.

Here, the employer emphasizes the importance of recruiting women (as well

as men), identifies gaps in the recruitment and retention of women, and puts in

place a comprehensive plan to attract women applicants.

Chapter 5: Personnel Planning and Recruiting 5-7

B. Recruiting Single Parents – recruiting and keeping them requires

understanding the problems they face, such as a need for personal sick time or

excused days off to care for sick children. Many firms have flextime

programs that provide employees with some schedule flexibility.

C. Older Workers – the fastest-growing labor force segment is those from 45-64

years old. A survey by AARP and SHRM concluded that older workers tend

to have lower absenteeism rates, more reliability, and better work habits than

younger workers.

D. Diversity Counts

E. Recruiting Minorities – requires employers to understand the barriers that

prevent minorities from applying and to tailor their way of thinking to design

HR practices that make their firms attractive to minority workers.

F. The Disabled – employers can do several things to tap into this huge potential

workforce. The Department of Labor’s Office of Disability Employment

Policy offers several programs, and all states have local agencies that provide

placement services and other recruitment and training tools.

VII. Developing and Using Application Forms

A. Purpose of Application Forms – The application form is usually the first step

in the prescreening process. Application forms provide four types of

information: substantive matters, previous progress, stability, and prediction

of which candidate will succeed on the job.

B. Application Guidelines – organizations should request detailed information on

each prior employer, including the name of the supervisor and his or her email

address and telephone number; this is essential for reference checking. Also,

in signing the application, the applicant should certify his or her understanding

that falsified statements may be cause for dismissal, that investigation of

credit, employment, and driving records is authorized, that a medical

examination may be required, that drug screening tests may be required, and

that employment is for no definite period.

C. Know Your Employment Law

1. Application Forms and EEO Law – application forms must comply with

equal employment laws. Problematic items include: education, arrest

record, who to notify in case of emergency, membership in organizations,

physical handicaps, martial status, housing, and video resumes.

D. Using Application Forms to Predict Job Performance – some employers use

analysis of application forms to predict employee tenure and performance.

E. Mandatory Arbitration – many employers, aware of the high cost of

employment litigation, require applicants to agree to binding arbitration to

settle disputes.

Chapter Review

Chapter Section Summaries:

5-1: Recruitment and selection start with workforce planning and forecasting.

5-2: Managers need to understand why effective recruiting is important.

Chapter 5: Personnel Planning and Recruiting 5-8

5-3: Filling open positions with internal sources of candidates has several advantages.

5-4: Workforce plans influence employee engagement.

5-5: Employers use a variety of outside sources of candidates when recruiting applicants.

5-6: Understanding how to recruit a more diverse workforce is important.

5-7. Employers develop and use application forms to collect essential background information

about the applicant.

Discussion Questions:

5-1: Briefly outline the workforce planning process.

This item can be assigned as a Discussion Question in MyManagementLab. Student

responses will vary.

5-2: Briefly explain each step in the recruitment and selection process.

This item can be assigned as a Discussion Question in MyManagementLab. Student

responses will vary.

5-3: What are the four main types of information that application forms provide?

The application form is a good means of quickly collecting verifiable, and therefore

potentially accurate, historical data from the candidate. It usually includes information on

education, prior work history, and other experience related to the job. The application form

can provide four types of information: 1. substantive matters (such as education and

experience); 2. previous progress and growth; 3. stability based on previous work history;

and 4. prediction of job success.

5-4: How, specifically, do equal employment laws apply to personnel recruiting activities?

The student should be able to discuss the areas in which the laws and regulations covered

in Chapter 2 apply to the issues of planning and recruiting. This would include constraints

on sources used for candidates (i.e. not excessive reliance on referrals), the wording of

questions asked on application forms or in interviews, and planning decisions that must not

be overly detrimental to a protected group.

5-5: What are the five main things you would do to recruit and retain a more diverse

workforce?

The student should first be able to identify groups that would create a diverse workforce.

Examples found in the text are: single parents, older workers, minorities and women,

welfare recipients, and global candidates. In order to retain these employees, students

would first need to understand the needs of each group, and then create plans and programs

that accommodate these specific needs. For example, to attract and keep single mothers,