CHAPTER 5
EXPANDING THE TALENT POOL:
RECRUITMENT AND CAREERS
CHAPTER OUTLINE
5.1 Business Strategies and Their Link to Strategic Recruiting
5.1a Elements of a Recruiting Strategy
5.2 External and Internal Recruiting Methods
5.2b Internal Recruiting Methods
5.3 Improving the Effectiveness of Recruiting
5.3a Using Realistic Job Previews
5.3c Recruiting Metrics
5.3d Retention: How Do We Keep Our Talent?
5.4 Career Management: Developing Talent over Time
5.4a The Goal: Matching the Needs of the Organization to the Needs of Employees
5.4c Career Development Initiatives
5.5 Developing a Diverse Talent Pool
5.5a Women
5.5c People Who Are Disabled
5.5e Older Employees
LEARNING OUTCOMES
After studying this chapter, students should be able to:
1. Describe how a firm’s strategy affects its recruiting efforts, and outline the elements that
are part of a strategic recruiting strategy.
3. List some of the ways firms can improve their recruiting and the metrics they use to do
so.
5. Explain why diverse recruitment and career development activities are important to
companies.
2 Part 3: Developing Effectiveness in Human Resources
GENERATNG INTEREST
Addressing this common misperception at the outset can help students embrace the
importance of this chapter: Recruiting might be a totally irrelevant topic for instructors
because they might not ever see themselves representing their organization at college
fairs or posting information about job openings online.
• Rebuttal #1: Because your future likely involves looking for a new job, learning
as much as you can about how organizations recruit prospective employees
should enable you to be smarter about job hunting.
• Rebuttal #2: As an employee of an organization that you want to help make
successful, you could get involved in the process of attracting talented people to
DEALING WITH TROUBLE SPOTS
One way to relate the two topics of this chapter is to use Jim Collins’ bus analogy in
Good to Great. In one sense, recruiting is “getting the right people on the bus” and career
management is “getting them in the right seats.” Many employers do not follow the
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 3
LECTURE OUTLINE
Discussion Starter #1: Luke’s Lobster uses social networking to promote its brand. How has use of
the Internet and social networks affected how today’s companies brand and recruit?
ANSWER: To help establish their employer brands as well as recruit talent, firms are utilizing the
Internet and social media websites. Using the Internet and social networks is an inexpensive way to
5.1 Business Strategies and Their Link to Strategic Recruiting Figure 5.1
Decisions about talent need to be considered within the context of your business’s
strategies and priorities.
5.1a Elements of a Recruiting Strategy
The elements include the strength of the firm’s employment “brand,” the types of
positions the company is recruiting for, where it needs them, when it needs them,
Teaching Tip: Use Figure 5.1 to discuss the elements of a recruitment strategy. As you discuss the
elements in this section, ask students to select the best strategy. Is the same element always the
most important?
Brand: How Do We Attract Talent?
Branding is a company’s efforts to help existing and prospective workers
understand why it is a desirable place to work. Companies with a strong brand
4 Part 3: Developing Effectiveness in Human Resources
• Consider applicants to be like customers and provide what they need.
Focus: What Types of Positions Are Needed?
The condition of the labor market affects recruiting plans. During periods of high
unemployment, an organization can fill its needs from unsolicited résumés and
Location: Where Do We Need the Talent, and Where Will We Find It?
Internal candidates are found inside the firm. External candidates are found
outside the firm. Several recruiting location characteristics can be considered:
• Internal versus external recruiting markets: Recruiting internally is
generally easier, faster, and less expensive. Applicants hired externally can
Timing: When Do We Need the Talent?
HR professionals should understand their firm’s business strategies to recruit at
the appropriate times, resulting in several actions:
Method: How Do We Find the Talent?
Recruitment methods depend on several factors:
• Type of person
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 5
Decision: Who Does the Recruiting and Makes the Final Hiring Decision?
EOC Discussion Question #1: Name some companies with whom you have done business. Then
discuss how you view their employer brands. Would you want to work for them or not? How
might these firms improve their employer brands?
5.2 External and Internal Recruiting Methods Figure 5.2
Figure 5.3
Employers are searching for the right employees and the right places to find them.
Applicants are looking for the best companies they can find and ways to connect with
them.
Video Highlight #1: Section 5.2a: External Recruiting Methods
VIDEO: LinkedIn Recruiter Demo (5:50)
5.2a External Recruiting Methods
The external source of applicants varies with the type of position to be filled. Detailed
statistics kept by organizations help human resources managers make better decisions
about the sources of new employees.
Teaching Tip: Use Figure 5.2 to discuss sources of external recruitment. Ask students for examples of
external recruiting for jobs they have had and how they expect to find jobs after graduation.
Advertisements
Advertising reaches a large audience, but organizations should be selective in
where they advertise to reach the right people. Although preparing an ad can be
time consuming, accuracy and completeness are related to recruiting success.
6 Part 3: Developing Effectiveness in Human Resources
Walk-Ins and Unsolicited Applications and Résumés
The Internet
Both companies and applicants find the Internet to be cheaper, faster, and
potentially more effective than other methods of finding each other. Niche job
boards are useful for finding specialized applicants or applicants in a specific
industry. Recruiters use big data and software to find qualified applicants.
Social Media
Firms are using social media to build their brands and recruit applicants. LinkedIn
is the most popular for recruiters. Passive jobseekers are people who are not
Mobile Recruiting
Mobile recruiting is the process of recruiting candidates via their mobile devices.
Because people are on their phones so much, an organization should have a
mobile application that people can use to search for jobs and apply for them.
Recruiters are also using text messages to communicate with applicants.
Job Fairs
Job fairs can attract diverse applicants in a certain region, but many of them might
Employee Referrals
Word-of-mouth recommendations are the way most job positions are filled. A
potential negative factor of employee referrals is the possibility of corporate
“inbreeding.” According to the attraction-selection-attrition (ASA) model,
inbreeding occurs gradually in a three-stage trend:
• Attraction: People with values similar to an organization are attracted to it
and become employees.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 7
• Selection: These employees then choose applicants similar to themselves.
• Attrition: Employees who do not fit in leave.
Nepotism is a preference for hiring the relatives of current employees. This can
invite charges of favoritism.
Re-recruiting
Re-recruiting is the process of keeping track of and maintaining relationships
with former employees to see if they would be willing to return to the firm.
Recruiting “boomerang” employees is attractive to recruiters and has better
retention rates.
Executive Search Firms
Teaching Tip: Use Figure 5.3 to discuss methods of strengthening a firm’s relationship with an
educational institution. Ask students how this can benefit students and employers.
Use Figure 5.4 to discuss the guidelines for an unpaid internship. How does each guideline affect the
intern and the company?
Professional Associations and Labor Unions
Many professional associations and societies offer a placement service to
members as one of their benefits. Labor unions have been a principal source of
applicants for blue-collar and some professional jobs.
Public Employment Agencies
8 Part 3: Developing Effectiveness in Human Resources
Private Employment Agencies
Private employment agencies are companies, that for a fee, match people with
full-time jobs. It charges employers a 25 to 30 percent fee based on the position’s
annual salary if the employer hires an applicant found by the agency.
Staffing Agencies
Staffing agencies are firms that hire and place workers in temporary positions for
short-term assignments. “Temps” give organizations added flexibility, but they
have less incentive to be loyal or to perform well.
Independent Contractors
Independent contractors are workers who are self-employed and do project
work on a contract basis for different organizations. Like temps, independent
Employee Leasing
Employee leasing is the process of dismissing employees who are then hired by a
leasing company (which handles all HR-related activities) and contracting with
that company to lease back the employees. Employee leasing by professional
employer organizations (PEOs) has grown rapidly.
5.2b Internal Recruiting Methods
Most companies try to fill job vacancies above the entry-level position through
promotions and transfers for several reasons:
• Internal candidates are readily available, they get up to speed faster, and
there is less uncertainty about how they will perform.
Teaching Tip: Use Figure 5.5 to discuss warning signs of a weak internal talent pool. Ask students
how a company can improve its talent pool. Students should consider training, education, and
applicants with better qualifications.
Internal Job Postings
Internal job postings are a quick way to find qualified employees interested in a
position. Technology can be used to track employees through the process.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 9
Identifying Talent through Performance Appraisals
A nine-box grid is a comparative diagram that includes appraisal and assessment
data to allow managers to easily see an employee’s actual and potential
performance.
Teaching Tip: Use Figure 5.6 to discuss the information in a nine-box grid.
Skills Inventories and Replacement Charts
Firms use skills inventories to help track data about an employee, including
education, past work experience, etc. More firms are electronically capturing the
qualifications of each of their employees.
EOC Discussion Question #2: Think of a new type of business you would like to start up or
manage. Which sources would you use to recruit employees who could help you make it a
success?
5.3 Improving the Effectiveness of Recruiting Figure 5.7
How can a firm improve its recruiting?
• Acquire an accurate job analysis.
HR managers have many tools to gauge their efforts and improve recruiting.
5.3a Using Realistic Job Previews
A realistic job preview (RJP) is informing applicants about all aspects of the
job, including both its desirable and undesirable facets. RJPs reduce turnover.
Discussion Starter #2: Explain how realistic job previews (RJPs) operate. As a manager or business
owner, would you use them?
ANSWER: The purpose of a realistic job preview (RJP) is to provide job applicants with information
concerning all aspects of the job, including both its desirable and undesirable facets. The RJP might
© 2019 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5.3b Surveys and Employee Profiles
5.3c Recruiting Metrics
Recruiters should keep statistics on the sources from which candidates are
recruited and hired as well as the costs of each source.
Time to Fill
Time-to-fill metrics refer to the number of days from when a job opening is
approved to the date a person accepts the job and begins it.
Teaching Tip: Use Figure 5.7 to discuss how time-to-fill metrics are calculated.
Quality of Fill
Quality-of-fill metrics measure how well new hires have gotten “up to speed,”
are performing, and their retention levels.
Yield Ratio
Yield ratios help indicate which recruitment sources are most effective at
producing qualified job candidates. A yield ratio is the percentage of applicants
from a particular source that make it to the next stage in the selection process.
Acceptance Rate
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 11
Cost of Recruitment
Total recruiting costs ÷ Number of people hired = Average recruiting cost per hire
5.3d Retention: How Do We Keep Our Talent?
5.4 Career Management: Developing Talent over Time Figure 5.8
Figure 5.9
Figure 5.10
Teaching Tip: Use Figure 5.8 to discuss the steps in the career management process.
5.4a. The Goal: Matching the Needs of the Organization to the Needs of Employees
A career development program is a dynamic process that matches the needs of the
organization with the needs of employees as those needs change.
The Employee’s Role
Because having a successful career involves creating one’s own career path,
employees need to take an active role in planning their careers. Managers can help
The Organization’s Role: Establishing a Favorable Career Development
Climate
Senior line managers and HR department managers should work together to
design and implement a career development system that reflects the goals and
culture of the organization.
12 Part 3: Developing Effectiveness in Human Resources
Blending the Goals of Individual Employees with the Goals of the
Organization
Teaching Tip: Use Figure 5.9 to discuss the relationship between individuals and the organization’s
needs.
5.4b Identifying Career Opportunities and Requirements
To identify career opportunities and requirements, managers have to analyze the
competencies required for jobs, progression among related jobs, and supply of
ready (and potential) talent available to fill those jobs.
Begin with a Competency Analysis
Teaching Tip: Use Figure 5.10 to discuss career paths in an organization.
A promotion is a change of assignment to a job at a higher level in the
organization. A transfer is the placement of an employee in another job for which
Teaching Tip: Use Figure 5.11 to discuss the stages of career development. Stages are characterized
by career advancement, characteristics, and age.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 13
Offer Different Career Paths
Career advancement can promote employees out of their area of specialization
into management. Dual career paths, or tracks, provide for progression in special
5.4c Career Development Initiatives
Employees are planning their own careers. Employers can take action to prevent
employees from leaving.
Career Counseling
Employers can help employees create an action plan or employers can institute a
career self-management program.
Mentoring Programs
Tuition Assistance Programs
Large corporations often offer their employees tuition assistance to help them
Career Plateau Initiatives
A career plateau is a situation in which, for either organizational or personal
reasons, the probability of moving up the career ladder is low. There are three
types of plateaus:
• Structural plateau marks the end of promotions.
Teaching Tip: Use Figure 5.12 to discuss career plateau questions. Ask students why these questions
indicate a career plateau.
A sabbatical is an extended period of time in which an employee leaves an
14 Part 3: Developing Effectiveness in Human Resources
EOC Discussion Question #4: How can a career management program help an organization
forced to downsize its operations?
5.5 Developing a Diverse Talent Pool
5.5a Women
Women are the largest of the protected classes. Stereotypes are a major
employment obstacle for women.
Eliminating Women’s Barriers to Advancement
Practices that hinder the upward mobility of both qualified women and minorities
5.5b Minorities
Many members of minority groups have experienced social and economic
5.5c People Who Are Disabled
5.5d Veterans
5.5e Older Employees
More people over 65 continue to work. They make good employees because they
have experience, they are reliable, and they are more likely to remain with the
company. However, age discrimination is still a problem.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 15
Discussion Starter #3: What barriers to career advancement do women and minorities face?
ANSWER: A major employment obstacle for women, both skilled and unskilled, is the stereotyped
thinking that persists within our society. Women traditionally have been at a disadvantage because
EOC Discussion Question #5: What barriers to career advancement do women and minorities
face?
Video Highlight #2:
VIDEO: Google Recruitment Video (7:21); Apple’s Employee Recruiting Video (4:35); Why Choose
KPMG (3:10)
View recruitment videos for three of the most successful U.S. companies today: Google, Apple, and
KPMG.
ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS
1. Individual responses will vary. After students have answered, ask them why they felt the
2. Individual responses will vary. The sources students select should match the skills needed
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 17
NOTES FOR END-OF-CHAPTER CASE STUDIES
Case Study 1: A Lifecycle Approach to Talent
1. Students’ answers will vary. The Scripps lifecycle approach supports diversity by
2. Student’s answer will vary. Some students may say that employees want support and
encouragement that a coach provides rather than orders from a boss.
Case Study 2: Homegrown Talent: Mary Barra Rises to GM’s Top Post
1. Students’ answers will vary. Hiring Mary Barra at GM is an example of nepotism. Some
students might say that as a business owner, they would hire a relative of an employee.
2. Student’s answer will vary. Some students may say that Barra was able to advance her
career because she was able to perform well in multiple roles, which GM offered her. In
FLIP TIPS
Activity
Step 1: Conduct an online search and find at least three articles related to the importance
of selecting an appropriate recruiting strategy.
Step 2: Using these articles as reference, write a two-page report summarizing your
findings with examples to substantiate it. Be sure to cite your sources.
18 Part 3: Developing Effectiveness in Human Resources
APPENDIX
PERSONAL CAREER DEVELOPMENT
It makes sense to plan your career. You bear the primary responsibility for your career.
A.1 Developing Personal Skills and Competencies
A.3 Self-Evaluation
Successful career development depends in part on an individual’s ability to conduct an
accurate self-evaluation. Consider factors that are personally significant.
A.3a Interest Inventories
A.3b Informational Interviews, Job Shadowing, and Internships
An informational interview is a conversation you have with someone in a career
A.5 Consider the Boundaryless Career
Individuals pursuing boundaryless careers prefer to see themselves as self-directed “free
A.6 Keeping Your Career in Perspective
Having a job and work are important. However, you should not neglect other areas of
life.
A.6a Developing Off-the-Job Interests
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 19
A.6b Balancing Marital and/or Family Life
A.6c Planning for Retirement