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Chapter 4. Personnel Planning and Recruiting. What You Should Be Able to Do. Explain the main techniques used in employment planning and forecasting Name and describe the main internal sources of candidates List and discuss the main outside sources of candidates
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Chapter 4 Personnel Planning and Recruiting
What You Should Be Able to Do • Explain the main techniques used in employment planning and forecasting • Name and describe the main internal sources of candidates • List and discuss the main outside sources of candidates • Explain how to recruit a more diverse workforce • Develop an application blank
Steps in Recruitment and Selection Process Employment planning and forecasting Recruiting builds pool of candidates Applicants complete application form Selection tools like tests screen out most applicants Supervisors and others interview final candidates to make final choice
EMPLOYMENT PLANNING AND FORECASTING Definition • Employment or personnel planning is the process of deciding what positions the firm will have to fill, and how to fill them. • Also known as HR Planning
How to Forecast Personnel Needs • Project revenues first then estimate the size of the staff required to achieve it • Staffing plans also must reflect: • Projected turnover • Quality and skills of your employees • Strategic decisions • Technological and other changes • Financial resources
Methods to Predict Employment Needs • Trend analysis • Ratio analysis • Scatter plot • Managerial judgment plays a big role
Using Computers to Forecast Personnel Requirements Definition • Computerized forecast • Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages
Forecasting the Supply of Inside Candidates Definition • Qualifications inventories • Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion
Markov Analysis Boxes represent % chance remain in job after one year or leave
Manual Systems and Replacement Charts • Personnel inventory & development record help track employee qualifications • Personnel replacement charts are often used for filling a company’s top positions
Forecasting the Supply of Inside Candidates Definition • Personnel replacement charts • Company records showing present performance and promotability of inside candidates for the most important positions
Forecasting the Supply of Inside Candidates Definition • Position replacement card • A card prepared for each position in a company to show possible replacement candidates and their qualifications
Work experience codes Product knowledge Industry experience Formal education Training courses Foreign language skills Relocation limitations Career interests Performance appraisals Skills Computerized Information Systems
The Matter of Privacy • Several things make it important to protect employee information: • Computerized information systems • Network access makes this information available • Legislation • Federal Privacy Act of 1974 • New York Personal Privacy Act of 1985 • Access matrices may help
Forecasting the Supply of Outside Candidates • Monitoring general economic conditions • Business Week, Fortune, Economist and Wall Street Journal • U.S. Government
New hires Offers made (2 : 1) Interviewed (3 : 2) Invited (4 : 3) Leads generated (6 : 1) Effective Recruiting: The Yield Pyramid
Internal Sources of Candidates • No substitute for knowing a candidate’s strengths and weaknesses • Inside candidates may be more committed to the company and can increase morale • Can backfire • Can promote inbreeding
Finding Candidates • Position Requisition must be OKed • Job posting • publicizing the open job to employees and listing its attributes like qualifications, supervisor, work schedule, and pay rate • Rehiring former employees • an option today due to the tight labor market
Finding Internal Candidates • Succession planning: ensuring a suitable supply of successors for future senior jobs • Planning includes: • Determine projected need • Audit current talent • Planning career paths • Career counseling • Accelerated promotions • Performance related training • Planned strategic recruitment • Filling
Outside Sources of Candidates • Advertising – the advertising media and ad content • Select the best media – local paper, WSJ, TV, or internet depending on the position
Outside Sources of Candidates American Psychologist THE WALL STREET JOURNAL
Ad Construction • Use the AIDA guide (attention, interest, desire, and action) to construct ads • Be creative - use of ad agencies might help develop and promote a companies image
Employment Agencies • Types of agencies: • Public agencies and non profit • Private agencies
How to Avoid Problems With Employment Agencies • Provide full and accurate job description • Specify the screening tools to use • Review data on candidates accepted or rejected by your firm and by the agency • Develop a long-term relationships with one or more agencies • Screen the agency
Temp Agencies • Alternative staffing often used to supplement a permanent workforce • One year 100,000 people found temp work in engineering, science and management support
Guidelines for Success • Dehumanized • Insecure • Worried • Misled • “Underemployed” • Angry • Some temp workers felt
Guidelines for Temp Workers • Honest information • Policies for fair treatment • Use independent contractors and permanent part-time workers • Consider impact on permanent workers • Provide training and orientation • Beware of legal snares in your payroll decisions
Policies to Use With Agencies • Invoicing • Time sheets • Temp-to-perm policy • Recruitment of and benefits for temp employees • Dress code • EEO statement • Job description information
Executive Recruiters • Headhunters • Special employment agencies used to seek out top management and technical talent • Internet databases have shortened time required to find talent • Online executive recruiting firm futurestep
Tips on Choosing a Recruiter • Ask about the cost • Be sure you can trust them with privileged information • Talk to prior clients • Can they conduct a thorough search? • Meet individual who will handle the search
Outside Hiring • College recruiting goals are: • Attract good candidates • Cull candidates for further consideration • Onsite visits • Internships • Referrals and walk-ins
Campus Interview Report Name of person interviewed Applying for position Department Qualifications Excellent Satisfactory Poor Communication Education Related Experience Interpersonal Skills Problem Solving Skills Adaptable to change Comments: Completed by
Recruiting on the Net • Many companies are turning to the Internet as a recruiting tool • Corporate and employment web pages are one approach • Internet recruiting is cost effective and timely careerbuilder
Network Recruiting Resources • Visit these sites. computerjobs.com
Internet Recruiting • While monster.com may have 5 million online resumes there may be 2-3x that on the internet • Go to • Conduct searches for specific areas and talents • Tripod and Yahoo also search resume databases for locating possible employees
Recruiting High-tech • GE medical is an industry leader which illustrates the best practices of recruiting high-tech workers • GE medical applies benchmarked purchasing techniques to dealing with recruiters • Recruitsoft powers enterprise recruiting
Recruiting a More Diverse Workforce • Recruiting single parents – you must understand their concerns • Older workers – 80% of baby boomers will work beyond retirement age • Check policies – don’t force oldsters to leave • Use flexible work options • Remake suitable jobs • Offer customized benefit plans
Older Workers As a Source of Candidates • Supply and demand • Retirees will double to 4 million • Fewer young people entering the workforce • Practicality • Physical and cognitive abilities • Drop in absenteeism
Recruiting a More Diverse Workforce • Recruiting minorities and women – formulate comprehensive plans • Welfare-to-work – the key is training • Searching globally – many global companies actively recruit foreign nationals
Developing Application Forms • Application forms provide 4 types of info Does candidate have the necessary education or experience ? Provides applicants previous progress and growth Provides previous work record to assess the applicants suitability Application data can determine if applicant will succeed
Developing Application Forms • Must NOT have questions in an application form to be EEO compliant • Education dates • Arrest record • Relationship of a “notify in case of emergency” • Membership in organizations • Physical handicaps • Marital status • Housing status
Sample Applications • Governor's Job Bank • South Carolina State Government Application for Employment • Federal Employment Application
Applications to Predict Job Performance • Much like screening, some firms use job applications as a tool to predict future performance • They conduct statistical studies to find relationships between responses and success • Risk here is asking overly intrusive question
Summary of Chapter • Steps in recruitment and selection process • Employment planning and forecasting • How to forecast personnel needs • Methods to predict employment needs
Summary of Chapter (Cont.) • Using computers to forecast personnel requirements • Forecasting the supply of inside candidates • Computerized information systems • Management replacement chart
Summary Slide (Cont.) • Forecasting the supply of outside candidates • Effective recruiting: the yield pyramid • Internal sources of candidates • Finding internal candidates • Outside sources of candidates
Summary Slide (Cont.) • Employment agencies • How to avoid problems with employment agencies • Temp agencies • Guidelines for success • Guidelines for temp workers • Policies to use with agencies
Summary Slide (Cont.) • Executive recruiters • Tips on choosing a recruiter • Outside hiring • Internet recruiting • Recruiting high-tech • Recruiting a more diverse workforce • Older workers as a source of candidates