Human Resource Management

Sixteenth Edition

Chapter 5

Personnel Planning and

Recruiting

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LEARNING OUTCOMES
1. List the steps in the recruitment and selection process.
2. Explain the main techniques used in employment
planning and forecasting.
3. Explain and give examples for the need for effective
recruiting.
4. Name and describe the main internal sources of
candidates.
5. List and discuss the main outside sources of
candidates.
6. Develop a help wanted ad.
7. Explain how to recruit a more diverse workforce.

5–2
The Recruitment and Selection Process
1. Decide what positions to fill through personnel planning
and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.

5–3
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
company’s most important executive jobs.
• What to Forecast?
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates

5–4
Forecasting Personnel Needs (Labor
Demands)
1. Trend Analysis
2. Ratio Analysis
3. Scatter Plot
4. Managerial Judgment
FIGURE 5–3 Determining the Relationship Between
Hospital Size and Number of Nurses

Hospital Size Number of

(Number Registered
of Beds) Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

Note: After fitting the line,

you can project how many
employees are needed,
given your projected volume.

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Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives on
future staffing levels.
• They support compensation plans that reward managers
for managing ever-larger staffs.
• They “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.

5–7
Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
 Software that estimates future staffing needs by:
 Projecting sales, volume of production, and personnel
required to maintain different volumes of output.
 Forecasting staffing levels for direct labor, indirect staff, and
exempt staff.
 Creating metrics for direct labor hours and three sales
projection scenarios—minimum, maximum, and probable.

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 Forecasting the Supply of
Inside Candidates

Qualification
Inventories

Manual systems and Computerized skills

replacement charts inventories

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FIGURE 5–4 Management Replacement Chart Showing Development
Needs of Potential Future Divisional Vice Presidents

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The Matter of Privacy
• Ensuring the Security of HR Information
 Control of HR information through access matrices

 Access to records and employee privacy

• Legal Considerations
 The Federal Privacy Act of 1974

 New York Personal Privacy Act of 1985

 HIPAA

 Americans with Disabilities Act

5–11
Forecasting Outside Candidate Supply
• Factors In 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)
 U.S. Department of Labor’s O*NET™
 Bureau of Labor Statistics (BLS)
 Other federal agencies and private sources

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The Need for Effective Recruiting

Recruiting Challenges

Effectiveness of Effects of Legal requirements

chosen recruiting nonrecruitment associated with
methods issues and policies employment laws

5–13
Effective Recruiting
• External Factors Affecting Recruiting
 Supply of workers
 Outsourcing of white-collar jobs
 Fewer “qualified” candidates

• Other Factors Affecting Recruiting Success

 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm
 Employment laws

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Organizing How You Recruit

Advantages of Centralizing Recruiting Efforts

Facilitates Reduces Ensures Fosters effective

strategic duplication of compliance with use of online
priorities HR activities EEO laws recruiting

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Measuring Recruiting Effectiveness

Evaluating Recruiting
Effectiveness

What to How to
measure measure

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FIGURE 5–6 Recruiting Yield Pyramid

●
50% ● ●

67% ● ● ●

75% ● ● ● ●

16% ● ● ● ● ● ●

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Internal Sources of Candidates
Advantages Disadvantages

• Foreknowledge of • Failed applicants become

candidates’ strengths discontented
and weaknesses • Time wasted interviewing
• More accurate view of inside candidates who will
candidate’s skills not be considered
• Candidates have a stronger • Inbreeding strengthens
commitment tendency to maintain the
to the company status quo
• Increases employee
morale
• Less training and
orientation required

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 Finding Internal Candidates

Hiring-from-Within Tasks

Posting open Rehiring former Succession

job positions employees planning (HRIS)

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Outside Sources of Candidates

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters

2 Advertising 7 On Demand Recruiting Services (ODRS)

3 Employment Agencies 8 College Recruiting

4 Temp Agencies and Alternative Staffing 9 Referrals and Walk-ins

5 Offshoring/Outsourcing

5–20
Recruiting via the Internet
• Advantages
 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
• Disadvantages
 Exclusion of older and minority workers
 Unqualified applicants overload the system
 Personal information privacy concerns of applicants

5–21
 FIGURE 5–8 Ineffective and Effective Web Ads

l 5–22
Advertising for Outside Candidates
• The Media Choice
 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: specialized employees
 Internet job sites: global labor markets
• Constructing (Writing) Effective Ads
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression (image) of the firm.

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 Employment Agencies

Types of Employment
Agencies

Public Nonprofit Private

agencies agencies agencies

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Why Use a Private Employment Agency?
• No HR department: firm lacks recruiting and screening
capabilities to attract a pool of qualified applicants.
• To fill a particular opening quickly.
• To attract more minority or female applicants.
• To reach currently employed individuals who are more
comfortable dealing with agencies than competing
companies.
• To reduce internal time devoted to recruiting.

5–25
Avoiding Problems with
Employment Agencies
• Give agency an accurate and complete job description.
• Make sure tests, application blanks, and interviews are
part of the agency’s selection process.
• Review candidates accepted or rejected by your firm or
the agency for effectiveness and fairness of agency’s
screening process.
• Screen agency for effectiveness in filling positions.
• Supplement the agency’s reference checking by
checking the final candidate’s references yourself.

5–26
Specialized Staffing and Recruiting
• Alternative Staffing
 In-house contingent (casual, seasonal, or temporary) workers
employed by the company, but on an explicit short-term basis.
 Contract technical employees supplied for long-term projects
under contract from outside technical services firms.
• On-Demand Recruiting Services (ODRS)
 Provide short-term specialized recruiting to support specific
projects without the expense of retaining traditional search firms.

5–27
Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows “trial run” for prospective employees
 No recruitment, screening, and payroll administration costs

• Costs of Temps
 Increased labor costs due to fees paid to temp agencies
 Temp employees’ lack of commitment to the firm

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Working with a Temp Agency
• Invoicing. Make sure the agency’s invoice fits your firm’s needs.
• Time sheets. The time sheet is a verification of hours worked and an
agreement to pay the agency’s fees.
• Temp-to-perm policy. What is the policy if you want to hire a temp
as a permanent employee?
• Recruitment of and benefits for temp employees. How does the
agency plan to recruit and what sorts of benefits will it pay?
• Dress code. Specify the attire at each of your offices or plants.
• Equal employment opportunity statement. Get a statement from the
agency that it does not discriminate when filling temp orders.
• Job description information. Ensure that the agency understands
the job to be filled and the sort of person you want to fill it.

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Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment
by employers.
• Insecurity about employment and pessimism about the
future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether
temporary assignments are likely to become full-time
positions.
• Being “underemployed” while trying to return to the full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.

5–30
FIGURE 5–10 Ten Things Managers Should Avoid When
Supervising Temporary Employees

Do Not:
1. Train your contingent workers. Ask their staffing agency to handle training.
2. Negotiate the pay rate of your contingent workers. The agency should set pay.
3. Coach or counsel a contingent worker on his/her job performance. Instead, call
the person’s agency and request that it do so.
4. Negotiate a contingent worker’s vacations or personal time off. Direct the worker
to his or her agency.
5. Routinely include contingent workers in your company’s employee functions.
6. Allow contingent workers to utilize facilities intended for employees.
7. Let managers issue company business cards, nameplates, or employee badges
to contingent workers without HR and legal approval.
8. Let managers discuss harassment or discrimination issues with contingent
workers.
9. Discuss job opportunities and the contingent worker’s suitability for them
directly. Instead, refer the worker to publicly available job postings.
10. Terminate a contingent worker directly. Contact the agency to do so.

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 Offshoring and Outsourcing Jobs

Political and military

instability

Resentment and
Cultural
anxiety of U.S.
misunderstandings
employees/unions

Outsourcing/
Offshoring
Customers’ securing
Costs of foreign Issues and privacy
workers
concerns

Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns

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Executive Recruitment
• Executive Recruiters (Headhunters)
 Contingent-based recruiters
 Retained executive searchers
 Internet technology and specialization trends

• Guidelines for Choosing a Recruiter

1. Make sure the firm is capable of conducting a thorough
search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person
you need for the position.
5. Never rely solely on the recruiter to do reference checking.

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College Recruiting
• On-campus recruiting goals • On-site visits
 To determine if the candidate is  Invitation letters
worthy of further consideration  Assigned hosts
 To attract good candidates  Information packages
 Planned interviews
 Timely employment offer
 Follow-up

• Internships

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 Sources of Outside Applicants

Other Sources of Outside Applicants

Employee Military
Walk-ins Telecommuters
referrals personnel

5–35
Employee Referrals and Walk-ins
• Employee Referrals
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce.
 Relying on referrals may be discriminatory.

• Walk-ins
 Seek employment through a personal direct approach to the
employer.
 Courteous treatment of any applicant is a good business
practice.

5–36
FIGURE 5–11 Relative Recruiting Source Effectiveness Based on New Hires

5–37
TABLE 5–1 Recruitment Research Findings: Practical Applications for Managers

Recruitment Research Finding Practical Applications for Managers

The recruitment source affects the characteristics Use sources such as referrals from current
of applicants you attract. employees that yield applicants more likely to
be better performers.
Recruitment materials have a more positive Provide applicants with information on aspects
impact if they contain more specific information. of the job that are important to them, such as
salary, location, and diversity.
Organizational image influences applicants’ initial Ensure all communications regarding an
reactions. organization provide a positive message
regarding the attractiveness of the organization
as a place to work.
Applicants with a greater number of job Ensure initial recruitment activities (e.g., Web
opportunities are more attentive to early site, brochure, on-campus recruiting) are
recruitment activities. attractive to candidates.
Realistic job previews that highlight both the Provide applicants with a realistic picture of the
advantages and the disadvantages of the job job and organization, not just the positives.
reduce subsequent turnover.
Applicants will infer (perhaps erroneous) Provide clear, specific, and complete
information about the job and company if the information in recruitment materials so that
information is not clearly provided by the applicants do not make erroneous inferences
company. about the job or the employer.
Recruiter warmth has a large and positive effect Choose individuals who have contact with
on applicants’ decisions to accept a job. applicants for their interpersonal skills.
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Improving Productivity Through HRIS:
An Integrated Approach to Recruiting

Elements of an HRIS

Requisition
Recruiting Screening Hiring
management
solution services management
system

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Recruiting A More Diverse Workforce

Single parents

The disabled Older workers

Minorities and
Welfare-to-work
women

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Developing and Using Application Forms

Uses of Application Form

Information

Applicant’s Applicant’s Applicant’s Applicant’s

education and prior progress employment likelihood of
experience and growth stability success

5–41
Application Forms and the Law
Educational
achievements

Housing Arrest
arrangements record

Areas of
Personal
Marital Information Notification in case
status of emergency

Physical Membership in
handicaps organizations

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Two-Stage Process

Is Applicant Yes Conditional

Qualified? Job Offer

Review application Make conditional job offer

information, personal contingent on meeting all
interview, testing, and “second stage” conditions
do background check

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FIGURE 5–13 Sample Acceptable Questions Once Conditional Offer Is Made

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. What is your educational background? (The information required here
would depend on the job-related requirements of the position.)

5–44
KEY TERMS
employment (or personnel) planning
trend analysis
ratio analysis
scatter plot
qualifications (or skills) inventories
personnel replacement charts
position replacement card
employee recruiting
recruiting yield pyramid
job posting
succession planning
applicant tracking systems
alternative staffing
on-demand recruiting services (ODRS)
college recruiting
application form
5–45