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Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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
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Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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
Copyright © 2017 Pearson Education, Inc.
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,
