Chapter 5:

Personnel
Planning &
Recruitment
 Steps in Recruitment and
Selection Process

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 company’s
most important executive jobs.
 What to forecast?
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates
Forecasting the Supply of Inside
Candidates
 Qualifications inventories
 Human Resource Information System (HRIS)
 Manual or computerized records listing employees’:
 Education level
 Career & development interests
 Experience
 Product/Service knowledge
 Languages
 Special skills

To be used in selecting inside candidates for promotion.

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:
 Approaching undersupply of workers
 Reducing the trend in outsourcing of jobs
 Increasingly fewer “qualified” candidates

 Internal factors affecting recruiting:

 The consistency of the firm’s recruitment efforts with
its strategic goals
 The available resources, types of jobs to be recruited
and choice of recruiting methods
 Non recruitment HR issues and policies
 Line and staff coordination and cooperation
Effective Recruiting
(cont’d)
 Centralizing recruitment

Advantages:
 Strengthens employment brand
 Ease in applying strategic principles
 Reduces duplication of HR activities
 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
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
appointments/transfers/recommendations.
 Recruiting Yield Pyramid

 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  Disadvantages
 Foreknowledge of  Failed applicants
candidates’ strengths become
and weaknesses discontented
 More accurate view  Time wasted
of candidate’s skills interviewing
 Candidates have a inside candidates
stronger who will not be
commitment to the considered
company  Inbreeding of the
 Increases employee status quo
determination
 Less training and
orientation required
Finding Internal
Candidates
 Job postings (e.g., web, newsletters, bulletin
boards)
 Rehiring former employees (pros and cons)
 Succession planning (for higher levels in the
organization)
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 applicant’s attention, interest, desire, and action
(AIDA) and create a positive impression of the firm.
Outside Sources of
Candidates (cont’d)
 Employment agencies (public, private)
 Temporary agencies….
 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
Temp Agencies and
Alternative Staffing
 Benefits of Temps  Costs of Temps
 Paid only when  Fees paid to
working temp agencies
 More productive  Lack of
 No recruitment, commitment to
screening, and firm
payroll
administration
costs
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
Outside Sources of
Candidates (cont’d)
 Executive recruiters
 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.
Outside Sources of
Candidates (cont’d)
 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
Outside Sources of
Candidates (cont’d)
 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.
Outside Sources of
Candidates (cont’d)
 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
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 (cont’d)
 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.