MGT351 Human Resource Management Chapter5 Personnel Planning and

MGT-351 Human Resource Management Chapter-5 Personnel Planning and Recruiting 1– 1

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– 2

FIGURE 5– 1 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. 5– 3

FIGURE 5– 2 Linking Employer’s Strategy to Plans 5– 4

Planning and Forecasting • Employment or Personnel Planning Ø The process of deciding what positions the firm will have to fill, and how to fill them. • Succession Planning Ø The process of deciding how to fill the company’s most important executive jobs. • What to Forecast? Ø Overall personnel needs Ø The supply of inside candidates Ø The supply of outside candidates 5– 5

Forecasting Personnel Needs Forecasting Tools Trend Analysis Ratio Analysis Scatter Plotting 5– 6

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 Ø Software that estimates future staffing needs by: v Projecting sales, volume of production, and personnel required to maintain different volumes of output. v Forecasting staffing levels for direct labor, indirect staff, and exempt staff. v Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and probable. 5– 8

Forecasting the Supply of Inside Candidates Qualification Inventories Manual Systems and Replacement Charts Computerized Information Systems 5– 9

Forecasting Outside Candidate Supply • Factors In Supply of Outside Candidates Ø General economic conditions Ø Expected unemployment rate • Sources of Information Ø Periodic forecasts in business publications Ø Online economic projections 5– 10

Internal Candidates: Hiring from Within Advantages • Foreknowledge of candidates’ strengths and weaknesses • More accurate view of candidate’s skills • Candidates have a stronger commitment to the company • Increases employee morale • Less training and orientation required Disadvantages • Failed applicants become discontented • Time wasted interviewing inside candidates who will not be considered • Inbreeding strengthens tendency to maintain the status quo 5– 11

Finding Internal Candidates Rehiring Former Employees Job Posting Hiring from Within Succession Planning (HRIS) 5– 12

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– 13

Outside Sources of Candidates (cont’d) • Recruiting via the Internet Ø Advantages v Cost-effective v More applicants attracted over a longer period v Immediate v Online v Links way to publicize job openings applicant responses prescreening of applicants to other job search sites v Automation of applicant tracking and evaluation Ø Disadvantages v Exclusion of older and minority workers v Excessive number of unqualified applicants v Personal information privacy concerns of applicants 5– 14

FIGURE 5– 8 Top Job Boards Ranked According to Average Number of Job Listings Source: Workforce Management, May 22, 2006, p. 12. 5– 15

Advertising for Outside Candidates • The Media Choice Ø Selection of the best medium depends on the positions for which the firm is recruiting. v Newspapers: local and specific labor markets v Trade and professional journals: specialized employees v Internet job sites: global labor markets • Effective Ads Ø Create attention, interest, desire, and action (AIDA). Ø Create a positive impression of the firm. 5– 16

Employment Agencies Types of Employment Agencies Public Agencies Nonprofit Agencies Private Agencies 5– 17

Outside Sources of Candidates (cont’d) • Why Use a Private Employment Agency Ø No HR department: firm lacks recruiting and screening capabilities. Ø To attract a pool of qualified applicants. Ø To fill a particular opening quickly. Ø To attract more minority or female applicants. Ø To reach currently employed individuals who are more comfortable dealing with agencies. Ø To reduce internal time devoted to recruiting. 5– 18

Outside Sources of Candidates (cont’d) • Avoiding Problems with Employment Agencies Ø Provide the agency with accurate and complete job descriptions. Ø Make sure tests, application blanks, and interviews are part of the agency’s selection process. Ø Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process. Ø Screen agency for effectiveness in filling positions. Ø Supplement the agency’s reference checking by checking the final candidate’s references yourself. 5– 19

Temp Agencies and Alternative Staffing • Benefits of Temps Ø Increased productivity—paid only when working Ø Allows “trial run” for prospective employees Ø No recruitment, screening, and payroll administration costs • Costs of Temps Ø Increased labor costs due to fees paid to temp agencies Ø Temp employees’ lack of commitment to the firm 5– 20

Working with a Temp Agency • Invoicing. Make sure the agency’s invoice fits your company’s needs. • Time sheets. The time sheet is a verification of hours worked 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 it 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. 5– 21

Offshoring/Outsourcing White-Collar and Other Jobs Political and Military Instability Resentment and anxiety of U. S. employees/unions Costs of foreign workers Special training of foreign employees Cultural Misunderstandings Main Issues Customers’ security and privacy concerns Foreign contracts, liability, and legal concerns 5– 22

Outside Sources of Candidates (cont’d) • Executive Recruiters (Headhunters) Ø Contingent-based recruiters Ø Retained executive searchers Ø 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. Never rely solely on the recruiter to do reference checking. 5– 23

Outside Sources of Candidates (cont’d) • College Recruiting Ø On-campus recruiting Ø On-site visits goals v Invitation letters v To v Assigned hosts determine if the candidate is worthy of further consideration v To attract good candidates v Information v Planned v Timely packages interviews employment offer v Follow-up Ø Internships 5– 24

Outside Sources of Candidates (cont’d) • Employee Referrals Ø Referring employees become stakeholders. Ø Referral is a cost-effective recruitment program. Ø Referral can speed up diversifying the workforce. Ø Relying on referrals may be discriminatory. • Walk-ins Ø Seek employment through a personal direct approach to the employer. Ø Courteous treatment of any applicant is a good business practice. 5– 25

FIGURE 5– 12 Best Recruiting Sources Note: Survey of 2, 294 organizations. Percentage of employers reporting best-performing sources for hiring without regard to cost, 2004. Source: Workforce Management, December 2004, p. 98. 5– 26

Developing and Using Application Forms Uses of Application Information Applicant’s education and experience Applicant’s progress and growth Applicant’s employment stability Applicant’s likelihood of success 5– 27

FIGURE 5– 13 Employment Application 5– 28