Human Resource Planning and Recruitment

1. Human Resource Planning and Recruitment 5

2. Human Resource Planning (HRP) • Six steps of effective HRP • environmental scanning—identify and anticipate sources of threats and opportunities, scanning the external environment (competitors, regulation) and internal environment ( strategy, technology, culture) • labor analysis—project how business needs will affect HR needs, using qualitative methods (e.g., Delphi, nominal) and quantitative methods (trend analysis, simple and multiple linear regression analysis) • supply analysis—project resource availability from internal and external sources • gap analysis—reconcile the forecast of labor supply and demand • action programming—implement the recommended solution from the gap analysis • evaluation—monitor the effects of the HRP by defining and measuring critical criteria (e.g., turnover costs, break-even costs of new hires)

3. Environmental Scanning • Should always keep the “big picture” in mind. • frame of reference for scanning should be on strategic goals with customer-driven focus • Need to determine characteristics of relevant labor market. • relevant labor market defined by occupation, geography, employer competition • is labor market is loose or tight? • Global labor market an important influence. • future offshoring will be for services requiring higher skills • cost savings not always worth increased complexity, quality control problems, and loss of institutional knowledge • Affirmative Action/diversity programs may be illegal if not specifically directed at recruitment efforts.

4. Workforce Diversity

5. Labor Demand Forecast • Qualitative methods for projecting labor demands • centralized approach—the HR department examines the current business situation and determines staffing requirements for the rest of the firm • decentralized approach—each unit or functional manager subjectively derives his/her own staffing needs, and the projections are aggregated to create an overall composite forecast for the company • Delphi technique—formalized problem-solving method which avoids face-to-face group discussion by use of an intermediary and utilizes several rounds of estimates by experts to ultimately conclude a forecast • nominal group technique—formalized problem-solving method similar to the Delphi method but instead the experts meet in a face-to-face group discussion and rank ideas by member vote

6. Labor Demand Forecast • Quantitative methods for projecting labor demands • trend analysis—projects changes in the business factor and/or the productivity ratio in order to forecast changes in the labor demand • regression analysis—uses information from the past relationship between the organization’s employment level and some criterion known to be related to employment

7. Labor Supply Forecast • Categories of labor supply forecasts. • internal supply—individuals and jobs currently available within the firm • personnel/skills inventories • Markov analysis (Figure 5-7) • external supply—individuals in the labor force who are potential recruits of the firm (including those working for another firm) • Immigration Reform and Control Act (IRCA) of 1986 • immigration options for U.S. Employers – H-1B, I-129, and L-1 classifications. • computer modeling

8. Gap Analysis • ID potential shortages or surpluses of employees, skills and jobs. • Can use information to simulate business situations and prepare for future events. • strategies for effective downsizing • alternative solutions to downsizing • use of temporary employees • job sharing • telecommuting • dealing with diversity issues

10. Employment Restructuring and Downsizing

11. Action Programming and Evaluation • Action Programming - includes internal and external steps. • internal programming- changes such as job design and assignments • external programming-interacting with constituents such as labor unions and competitors • Evaluation – monitoring the effectiveness of HR plans over time. • long-rang planning requires meeting short-range goals.

12. Essential Steps for Recruitment Planning • Job Analysis – job descriptions and job specifications particularly helpful to recruiters and HR planners. • Time Lapse Data – average time that elapses between points of decision making. • Yield Ratios – yield ratios reflect the number of candidates available at one step and then at the next step. Used as basis for future recruiting Can focus on specific recruiting methods DISCREPANCY- ACADEMICS RECOMMEND

13. Internal Recruiting • Internal recruiting—recruiting source seeking applicants for positions from among the ranks of those currently employed. • advantages • better assessment of candidates • reduces training time • faster • cheaper • motivates employees • High Performance Work System characteristic • disadvantages • creates vacancies • stifles diversity • insufficient supply of candidates

14. External Recruiting • External recruiting—recruiting source seeking applicants for positions from outside the organization. • advantages • increases diversity • facilitates growth • shortens training time • A theory that you get new/novel problem solving (not proven) • disadvantages • expensive • slower • less reliable data • stifles upward movement of personnel

15. External Recruitment Sources • Methods available for external recruiting. • walk-ins/unsolicited applicant files • referrals • advertising • employment agencies • search firms • campus visits • electronic recruiting on the World Wide Web

16. Recruitment Media Reprinted with permission of Personnel Journal, Costa Mesa, CA..

17. Effective Recruiting • Measures used for evaluating recruiting program effectiveness. • time taken to fill position • retention rates • turnover rates • cost per hire • number of applicants generated • job performance of new hires after specified period of time • EEO/diversity impact • total cost of recruiting

18. Effective Recruiting: Frequency of Measures Used Time to fill Retention rates Turnover rates Cost per hire Number of applicants generated Job performance of new hires EEO/diversity impact Total cost of recruiting

21. EEO and Recruitment Practices • EEO issues in recruitment. • referrals • EEOC v. Detroit Edison—“the practice of relying on referrals by a predominantly white workforce rather than seeking new employees in the marketplace for jobs” was found to be discriminatory by the court • advertising • a person knowledgeable about EEO law should review all ad copy for potential legal problems • internet • “digital divide” may result in increased disparate impact if recruiting solely from on-line job sites. • A temporary problem