Lecture 4 Personnel Planning and Recruiting Copyright 2013

Lecture 4: Personnel Planning and Recruiting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 -1

Human Resource Planning (Personnel Planning) Systematic process of: o. Matching the internal and external supply of candidates with job openings anticipated in the organization over a specific period of time Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 4 -2

Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Human Resource Requirements Comparing Requirements and Availability Demand = Supply Surplus of Workers No Action Restricted Hiring, Reduced Hours, Early Retirement, Layoffs, Downsizing Forecasting Human Resource Availability Shortage of Workers Recruitment Selection Copyright © 2012 Pearson Education, 4 -3 Inc. publishing as

The Basic Elements of Human Resource Planning 3 -4

Requirements Forecast • Determining: o. Number o. Skills o. Location of employees that organization will need at future dates in order to meet goals Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 4 -5

Availability Forecast • Determination of: o Whether firm will be able to secure employees with necessary skills o Sources from which to obtain employees Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 4 -6

Recruitment • Process of attracting individuals: o On a timely basis o In sufficient numbers o With appropriate qualifications Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -7

Recruitment Planning: Administrative Issues • In-house vs. external recruitment agency o Many companies do recruiting in-house • Recommended approach for large companies o Smaller companies may rely on external recruitment agencies • Centralized vs. decentralized recruitment 5 -8

External Environment of Recruitment • Labor market conditions • Active or passive job seekers • Legal considerations • Corporate image Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -9

Labor Markets: Other Issues • Labor shortages and surpluses o “Tight” labor markets-demand exceeds supply, so labor shortages o “Loose” labor markets-supply exceeds demand, so labor surpluses 3 -10

Shortage of Workers Forecasted • • Innovative recruiting Compensation incentives Training programs Modified selection standards Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 4 -11

Surplus of Employees When a comparison of requirements and availability indicates that a worker surplus will result, most companies look to alternatives to layoffs, but downsizing may ultimately be required. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 4 -12

• Active or Passive Job Seekers Active job seekers: Committed to finding another job • Passive candidates: Typically employed, satisfied with their employer, and content in their current role • Recruitment methods often differ Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -13

Recruitment Sources and Methods • Recruitment sources: Places where qualified individuals are found • Recruitment methods: Means by which potential employees can be attracted to firm Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -14

Internal Versus External Staffing 3 -15

Internal Recruitment Methods • • Human resource databases Job postings Internet/Intranet Company’s online newsletter Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -16

Employee Referrals • Effective way workers find a job • Referrals better qualified and stay on job longer • Recruit new hires through employee-referral incentive programs Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -17

External Recruitment Sources • • • High schools and vocational schools Colleges and universities Competitors in the labor market Former employees Self-employed workers Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -18

Competitors in the Labor Market • Used when relevant experience is needed. • Smaller firms look for employees trained by larger organizations. • Poaching: Actively recruiting employees from competitors. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -19

Online Recruitment • Biggest change in organizations recruit way that • Revolutionized the way companies recruit and job-seekers find jobs 5 -20 Copyright © 2012 Pearson Education, Inc. publishing as

Corporate Career Website • Accessible from company homepage • Lists company positions available • Provides way for applicants to apply for specific jobs Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -21

Social Network Recruiting • Networking is one of the best recruiting tools. • Websites have been developed to utilize social network recruiting. o Twitter, Facebook, and Linked. In • Excellent in candidates. search Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -22 for passive

Traditional External Recruitment Methods • Media • Professional advertising associations • Employment • Sign-on bonuses agencies • Job fairs • Internships • Executive search firms Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -23

Job Fairs • Attract large number of applicants to one location • Opportunity to meet large number of candidates in short time Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -24

Internships • Places student in a temporary job • No obligation to confirm the position • Part-time job during school year • Students bridge gap from theory to practice Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -25

Headhunters/Employment Agencies • Often best known for recruiting whitecollar employees • Used for virtually every kind of position • Not paid until a person is placed Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5 -26

Temp Agencies and Alternative Staffing • Pros and cons • What supervisors should know about temporary employees’ concerns • Legal guidelines Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 -27

Sign-On Bonuses • Used where severe shortages of highly skilled workers exist • Amounts vary dramatically 5 -28 Copyright © 2012 Pearson Education, Inc. publishing as

Outsourcing • Advantages • Disadvantages • Special issues o Employer concerns regarding working conditions o Loss of control over quality o Offshoring 3 -29

Metrics for Evaluating Recruiting Methods • Quality • Cost • Impact on HR Outcomes o Employee satisfaction o Job performance o Retention 5 -30