Recruiting Employees

2. RecruitingEmployees Chapter 6

3. Chapter Overview • Job Analysis, Human Resource Planning, and Recruitment • Personnel Requisition Form • Sources of Qualified Personnel • Effectiveness of Recruitment Methods • Realistic Job Previews • Who Does the Recruiting, and How? • Organizational Inducements in Recruitment • Equal Employment Opportunity and Recruitment • Summary of Learning Objectives 6-3

4. Recruitment • Process of seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen • Magnitude of organization’s recruiting effort and methods to be used are determined from the human resource planning process and the requirements of specific jobs • Successful recruiting is difficult if jobs to be filled are vaguely defined • Organizations have options other than recruiting new employees • Temporary workers • Offering overtime to existing employees • Subcontracting the work to another organization • Leasing employees • Outsourcing work 6-4

5. Relationships among Job Analysis, Human Resource Planning, Recruitment, and Selection 6-5

6. Job Analysis, Human Resource Planning, and Recruitment • Questions that recruitment process addresses include • What are sources of qualified personnel? • How are these qualified personnel to be recruited? • Who is to be involved in recruiting process? • What inducements does organization have to attract qualified personnel? • Personnel requisition form • Describes reason for need to hire a new person and requirements of the job 6-6

7. Personnel Requisition Form 6-7

8. Internal Sources – Organization’s Own Employees • Advantages • Organization has a good idea of strengths and weaknesses of its employees • Performance evaluations of employees are available • More accurate data are available concerning current employees, thus reducing chance of making a wrong decision • Employees know more about organization and how it operates • Recruitment from within can have a significant, positive effect on employee motivation and morale when it creates promotion opportunities or prevents layoffs • Most organizations have a sizable investment in their workforce 6-8

9. Internal Sources – Organization’s Own Employees • Disadvantages • Intense infighting for promotions can have a negative effect on morale and performance of employees not promoted • Inbreeding of ideas • Issues involved include • Organization needs a strong employee and management development program to ensure that its people can handle larger responsibilities • Desirability of using seniority as basis for promotions • Unions generally prefer promotions based on seniority for unionized jobs • Many organizations prefer promotions based on prior performance and potential to do the new job 6-9

10. Internal Sources – Job Posting and Bidding • Method of informing employees of job vacancies by posting a notice in central locations and giving a specified period to apply • Other methods used in publicizing jobs include memos to supervisors and listings in employee publications • Normally the job notice specifies • Job title • Rate of pay • Necessary qualifications 6-10

11. Internal Sources – Job Posting and Bidding • Procedure involves • All applications are sent to HR department for an initial review • An interview by prospective manager follows • Decision is based on qualifications, performance, length of service, and other pertinent criteria • In unionized organizations, procedures are usually spelled out in collective bargaining agreement • Seniority is considered to be one of the primary determinants since they are concerned about subjective judgments of managers 6-11

12. Internal Sources – Job Posting and Bidding • Suggestions for development of specific implementation policies • Both promotions and transfers should be posted • Openings should be posted for specified time period before external recruitment begins • Eligibility rules for job posting system need to be developed and communicated • Specific standards for selection should be included in notice • Job bidders should be required to list their qualifications and reasons for requesting a transfer or promotion • Unsuccessful bidders should be notified by human resource department and advised as to why they were not accepted 6-12

13. External Sources of Recruiting Qualified Personnel • Needed in • Rapidly growing organizations • Organizations with a large demand for technical, skilled, or managerial employees • Advantages • Pool of talent much larger in comparison to internal sources • External hires may bring new insights and perspectives • Often cheaper and easier to hire technical, skilled, or managerial people from outside than to train and develop internally • Disadvantages • Attracting, contacting, and evaluating potential employees is more difficult • Employees hired from outside need a longer adjustment or orientation period • Recruiting from outside may cause morale problems among current employees 6-13

14. Advertising • Job advertising • Placement of help-wanted advertisements in daily newspapers, trade and professional publications, and radio and television • Ads need to accurately describe job opening and requirements or qualifications needed to secure position • People respond more frequently to ads from companies with a positive corporate image • If advertising is used as a primary source of recruitment, planning and evaluating advertising program should be a primary concern of human resource personnel 6-14

15. Employment Agencies – Public • State employment agencies exist in most U.S. cities with populations of 10,000 or more • Apart from following state regulations, agencies must comply with policies and guidelines of the Employment and Training Administration of the U.S. Department of Labor to receive federal funds • Social Security Act requires all eligible individuals to register with state employment agency before they can receive unemployment compensation • State employment agencies provide free service for • Individuals seeking employment • Business organizations seeking employees 6-15

16. Employment Agencies – Private • Executive search firm (or headhunter) • Seeks candidates for high-level positions • Employment agencies that recruit for lower-level positions • Customers may be job applicants seeking employment or business firms seeking employees • Fees of private employment agencies are paid by individual or employing organization • If fees are paid by the employing organization, private employment agency will likely advertise the job as a “fee paid” position 6-16

17. Temporary Help Agencies and Employee Leasing Companies • Temporary help – People working for employment agencies who are subcontracted out to businesses at an hourly rate for a period of time specified by the businesses • Organization pays employment agency an agreed-upon figure for services of temporary help • Advantages • Not dependent on economic conditions • Used to augment current staff when organization is expanding • If organization is downsizing, they create a flexible staff that can be laid off easily and recalled when necessary • Disadvantages • Lack of commitment to organization 6-17

18. Employee Leasing Companies and Professional Employer Organizations (PEOs) • Provide permanent staffs at customer companies • Issue workers’ paychecks • Take care of personnel matters • Ensure compliance with workplace regulations • Provide various employee benefits • Supply highly skilled technical workers (engineers and information technology specialists) for long-term projects • Under contract between a company and a technical services firm 6-18

19. Employee Referrals, Walk-ins and Unsolicited Applications • Recruiting systems using employees may be • Informal, operate by word-of-mouth or be structured with definite guidelines to be followed • Incentives and bonuses sometimes given to employees who refer subsequently hired people • Drawback – Development of cliques • Walk-ins and unsolicited applications • Corporate image has significant impact on number and quality of people who apply • Factors influencing organization’s image include • Compensation policies • Working conditions • Relationships with labor • Participation in community activities 6-19

20. Campus Recruiting • Recruitment activities of employers on college and university campuses • HR department should take steps to ensure recruiters • Are knowledgeable concerning organization and jobs to be filled • Understand and use effective interviewing skills • Generally review an applicant’s résumé before conducting interview • Cooperative work programs • Means of tapping products of colleges, universities, technical/vocational schools, and high schools • Through these programs students may • Work part-time and go to school part-time • Go to school and work at different times of the year • Attract people as they offer an opportunity for both a formal education and work experience 6-20

21. Internet Recruiting • Continues to be popular and rapidly growing means of recruiting • Disadvantages • Unsuitable job candidates • Poor quality job applications • Advantages • Speed and time • Examples of recruiting on the Internet: • IBM’s CyberBlue Web site (www.cyberblue.ibm.com) • Job Options (www.joboptions.com) • Career Builder (www.careerbuilder.com) • Vault (www.vault.com) • Monster.com (www.monster.com) 6-21

22. Effectiveness of Recruitment Methods • Organizations need to take steps to identify its most effective recruitment sources • HR departments could monitor effectiveness of recent hires in terms of turnover, absenteeism, and job performance • Might contrast different recruitment sources with respect to employee effectiveness • May identify which of the specific recruitment sources produces the best employees 6-22

23. Advantages and Disadvantages of Internal and External Recruiting 6-23

24. Realistic Job Previews • Method of providing complete information, both positive and negative, to job applicant • Traditional methods of presenting the organization and the job to obtain a favorable selection ratio • Sets very high initial job expectations, resulting in dissatisfaction and high turnover • Favorable selection ratio – A large number of applicants in relation to number of job openings • RJP enables job candidates to self-select out of jobs that do not meet their expectations • Usually, job applicants recruited using RJP, who accepted the job, have more job satisfaction 6-24

25. Typical Consequences of Job Preview Procedures 6-25

26. Who Does the Recruiting, and How? • Most large and middle-size organizations normally have an employment office within human resource department • Employment office consist of recruiters, interviewers, and clerical personnel • They handle recruitment activities both at the organization’s offices and elsewhere • Role of personnel in the employment office is crucial • Walk-ins/write-ins and respondents to advertising develop an impression through their contacts with employment office • Having employees trained in effective communication and interpersonal skills is essential 6-26

27. Who Does the Recruiting, and How? • When recruiting is done away from organization’s offices, role of the recruiter is equally critical • Job applicants’ impressions about organizations are significantly influenced by knowledge and expertise of recruiter • In small organizations, the recruitment function, and many other responsibilities, is normally handled by one person, frequently the office manager • Line managers in small organizations often recruit and interview job applicants 6-27

28. Organizational Inducements In Recruitment • Organizational inducements – All positive features and benefits offered by an organization to attract job applicants • Three of the more important organizational inducements: • Organizational compensation systems • Career opportunities • Organizational reputation • Factors influencing number of people attracted through recruitment process • Starting salaries • Frequency of pay raises • Incentives • Nature of the organization’s fringe benefits 6-28

29. Organizational Inducements In Recruitment • Other factors influencing recruitment process • Reputation for providing employees with career opportunities may result in attracting a larger pool of qualified candidates • Employee and management development opportunities • Assisting present employees in career planning 6-29

30. Organizational Inducements In Recruitment • Organization’s overall reputation, or image, serves as an inducement to potential employees • Factors that affect an organization’s reputation: • General treatment of employees • Nature and quality of its products and services • Participation in worthwhile social endeavors • Organizations accepting a poor image as “part of our industry and business,” must strive for a positive image 6-30

31. Equal Employment Opportunity And Recruitment • Equal opportunity legislation has significantly influenced recruitment activities • All recruitment procedures for each job category should be analyzed and reviewed to identify and eliminate discriminatory barriers • Equal Employment Opportunity Commission (EEOC) encourages organizations to avoid recruiting primarily through • Employee referral • Walk-ins • These practices tend to perpetuate the present composition of an organization’s workforce • If minorities and females are not well represented at all levels of the organization, reliance on such recruitment procedures is a discriminatory practice 6-31

32. Equal Employment Opportunity And Recruitment • Suggestions about recruiting practices by EEOC: • Content of help-wanted ads should not indicate any race, sex, or age preference for the job unless age or sex is a bona fide occupational qualification (BFOQ) • Advertise in media directed toward minorities and women • Advertising should indicate that the organization is an equal opportunity employer and does not discriminate • Campus recruiting visits should be scheduled at colleges and universities with large minority and female enrollment • Employers develop and maintain contacts with minority, female, and community organizations as sources of recruits • Contact nontraditional recruitment sources, such as organizations that place physically and mentally handicapped persons • Pay more attention to spouse, male or female, of person being recruited 6-32

33. Summary of Learning Objectives • Define recruitment • Discuss job analysis, human resource planning, and recruitment • Explain the purpose of a personnel requisition form • Describe the advantages and disadvantages of using internal methods of recruitment • Discuss job posting and bidding • Describe the advantages and disadvantages of using external methods of recruitment • Define realistic job previews • Explain organizational inducements • Outline some specific EEOC recommendations for job advertising 6-33