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PART TWO RECRUITMENT AND PLACEMENT C H A P T E R T F i v e Personnel Planning and Recruiting 5 Lecture Outline Strategic Overview Planning and Forecasting Forecasting Personnel Needs Forecasting the Supply of Inside Candidates Forecasting the Supply of Outside Candidates Effective Recruiting Organizing the Recruitment Function Measuring Recruiting Effectiveness The Recruiting Yield Pyramid Internal Sources of Candidates Finding Internal Candidates Rehiring Succession Planning Outside Sources of Candidates Recruiting via the Internet Advertising Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing White Collar & Other Jobs Executive Recruiters On-Demand Recruiting Services College Recruiting Recruiting Source Use and Effectiveness HRIS Recruiting a More Diverse Workforce Single Parents Older Workers Recruiting Minorities and Women Welfare-to-Work The Disabled Developing and Using Application Forms Purpose of Application Forms Application Forms and the Law Using Application Forms to Predict Performance In Brief: This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance. Interesting Issues: The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time, and less expensively. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population. ANNOTATED OUTLINE I. Planning and Forecasting A. Forecasting Personnel Needs –Forecast revenues, and then estimate the size of the staff required to achieve this sales volume. 1. Trend Analysis means studying a firm’s employment levels over a period of years to predict future needs. 2. Ratio Analysis means making forecasts based on the ratio between (1) some causal factor, like sales volume, and (2) number of employees required, like number of salespeople. 3. The Scatter Plot shows graphically how two variables (such as a measure of business activity and a firm’s staffing levels) are related. 4. Using Computers to Forecast Personnel Requirements – The use of software programs can enable employers to quickly translate projected productivity and sales levels into forecasts of personnel needs, while estimating how personnel requirements will be affected by various productivity and sales levels. B. Forecasting the Supply of Inside Candidates 1. Manual Systems and Replacement Charts – Simple manual devices can be used to keep inventories and development records to compile qualifications information on each employee. Personnel replacement charts show the present performance and promotability for each position’s potential replacement. Position replacement cards can also be created for each position to show possible replacements as well as their present performance, promotion potential, and training. 2. Computerized Information Systems are used to track the qualifications of hundreds or thousands of employees. The system can provide managers with a listing of candidates with specified qualifications after scanning the database. 3. The Matter of Privacy – Employers must balance an individual’s right to privacy while making HR information legitimately available to those in the firm who need it. C. Forecasting the Supply of Outside Candidates – This may involve considering general economic conditions and the expected rate of unemployment. Helpful sources include: Business Week, Fortune, the Economist, the Wall Street Journal, and prepared reports from the U.S. Council of Economic Advisors, the regional Federal Reserve banks, the Bureau of Labor Statistics of the U.S. Department of Labor, the National Science Foundation, the U.S. Public Health Service, the U.S. Employment Service, and the U.S. Office of Education. II. Effective Recruiting Recruiting is a more complex activity than most managers think it is. Recruitment efforts should make sense in terms of the company’s strategic plans. Some recruiting methods are superior to others, depending on who you are recruiting for and what your resources are. The success you have with your recruiting actually depends on non-recruitment HR issues and policies, including pay levels. Applicants should be pre-screened to determine that they have a real interest in the job. A company’s image may also contribute to success or failure in recruitment efforts. Know Your Employment Law: Pre–Employment Activities. The key question in all recruitment procedures is whether the method limits qualified applicants from applying. It is generally best to avoid limiting recruitment efforts to just one recruitment method; use multiple sources to reach out as widely as possible. A. Organizing the Recruitment Function – Companies make a choice to centralize their recruiting efforts or to decentralize to various locations. Advantages of centralizing are that it is easier to apply the company’s strategy priorities company-wide. In addition, it reduces duplication, makes it easier to spread the cost of new technologies over more departments, and builds a team of recruitment experts, and makes it easier to assess the effectiveness of the function. However, if divisions are autonomous or needs are varied, decentralization is a more sensible choice. 1. Line and Staff Cooperation – Since the recruiting HR manager is seldom responsible for supervising the performance for the vacant position, he/she must communicate with the supervisor to find out exactly what the job entails. B. Measuring Recruiting Effectiveness – Assessing the quality of each recruitment source will help HR managers to determine where the most cost effective recruiting sources are and thus determine where they want to direct their recruiting dollars, Prescreening selection devices shown in table 5-1 are helpful tools to get quick assessments on whether applicants are qualified. An example of GE Medical is described here as a best practice in terms of measurement techniques. 1. A High-Performance Example – GE Medical applies best practices measurement techniques to the job of hiring highly technical workers. C. The Recruiting Yield Pyramid – is used by some employers to calculate the number of applicants they must generate to hire the required number of new employees. Figure 5-7 illustrates the pyramid. ➢ NOTES Educational Materials to Use III. Internal Sources of Candidates A. Finding Internal Candidates – To be effective, promotion from within requires using job posting, personnel records, and skill banks. B. Rehiring – Rehiring former employees has its pros and cons. On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back. C. Succession Planning – Planning ensures a suitable supply of successors for senior or key jobs. It can include the following activities: determining the projected need for managers and professionals by company level, function, and skill; auditing current executive talent to project the likely future supply for internal sources; planning individual career paths based on objective estimates of future needs and assessments of potential; career counseling based on the needs of the individual and the firm; accelerated promotions, with development targets against the future needs of the business; performance-related training and development; planned strategic recruitment to fill short-term needs and to provide people to meet future needs; and actually filling the positions. IV. Outside Sources of Candidates A. Recruiting Via the Internet – Most employers find that the Internet is their best choice for recruitment efforts. Social networking also provides recruiting assistance. Figure 5-8 lists top online recruiting job sites. 1. Advantages – The Web is cost efficient, generating more responses more quickly and providing exposure for a longer time at less cost. 2. Disadvantages – Gathering applications online may exclude higher numbers of older applicants and certain minorities. An employer may also get too many applications because of the Web’s broad reach and speed. Applicant tracking has required a specific definition for what constitutes an Internet applicant. For an individual to be considered an Internet applicant: • The employer has acted to fill a particular position; • The individual has followed the employer’s standard procedures for submitting an application; • The individual has indicated an interest in the particular position. 3. Using Applicant Tracking ASP – Web-based ads generate so many applicants that most firms are installing tracking systems to help attract, gather, screen, compile and manage applications. 4. Designing Effective Internet Ads and Systems – Employers have only about four minutes to get job seeker attention, so ease of use is key in design. Figure 5-9 shows effective and ineffective ads. Many job PPT 5-25 5-26 5-27 PPT 5-28 5-29 5-30 5-31 5-32 5-33 5-34 5-35 5-36 sites may have ads from “recruiters” with questionable legitimacy. Potential applicants should be cautious about giving such personal details as Social Security numbers ➢ NOTES Educational Materials to Use B. Advertising 1. The Media – The best medium should be selected based on the positions for which you are recruiting. 2. Constructing the Ad – Many experienced advertisers use a four-point guide called AIDA (attention, interest, desire, action) to construct their ads. 3. Employment Ads and Image– recent studies show that it pays for employers to formulate marketing campaigns aimed at making themselves more attractive to potential recruits. C. Employment Agencies 1. Public and Nonprofit Agencies – Every state has a public, state-run employment service agency supported by the Department of Labor, in part through grants and other assistance, such as a nationwide computerized job bank. Many professional and technical societies, and public welfare agencies have units that try to help their members or people in special categories find jobs. 2. Private Agencies charge fees for each applicant they place. Typically, market conditions determine whether the candidate or employer pays the fee. C. Temp Agencies and Alternative Staffing 1. Benefits and Costs – The benefits of contingency staffing include increases in overall productivity, and time and expenses saved by not having to recruit, train, and document new employees. The costs include fees paid to agency and individuals’ psychological reference to their place of employment. Many employers use temporary agencies as a way to “test drive” prospective employees before hiring them. 2. Alternative Staffing refers to the use of nontraditional recruitment sources. Know Your Employment Law: Contingent Workers – Temp workers can pose legal risks to the employer. Wal-Mart was raided by federal agents who found illegal “contract” workers handling after-hours store cleaning. In a case with Microsoft, a federal court held that despite their temp titles, the “temps” were actually regular Microsoft employees, eligible for benefits. Temporary workers, like all workers, have significant legal rights. The degree to which the client firm controls temp agency’s employees’ activities determines how many rights these employees have, and the “dual employment” view is espoused by many courts. The basic prescription is to treat the temp employee in all ways as if the agency is in fact his employer. 3. Guidelines for Success: See Figure 5-8. Provide honest information to both temp agencies and temp workers about the length of the job assignment; implement personnel policies that ensure fair, non- discriminatory treatment of temp workers; use independent contractors and permanent part-time employees to complement the conventional temp agency workforce; consider the potential impact on regular full time employees before hiring temp workers; provide the necessary training and orientation for temp workers; and beware of legal snares in payroll decisions. D. Offshoring/Outsourcing White Collar and Other Jobs – Hiring workers abroad is becoming more and more common. There are several specific issues that the HR manager should keep in mind when considering this option. E. Executive Recruiters, also called headhunters, are special employment agencies retained by employers to seek out top-management talent for their clients. 1. Pros and Cons – Recruiters can be useful and can save a manager’s time, but they can be more interested in persuading you to hire a candidate than in finding the one who will really do the job. 2. Guidelines – Make sure the recruiting firm is capable, meet the individual who will handle your assignment, and ask how much the firm charges. Never rely on the recruiter to do all the reference checking. When You’re On Your Own: HR and Small Business – Expanding the Management Team - This dialogue talks about entrepreneurs engaging the services of a search firm to help them select the right candidate when the time comes for them to expand. While the initial cost of doing so could appear to be intimidating, there are many good reasons to consider this as an option when it comes to key management positions, including identifying a high quality pool of candidates, time and energy of the business owners, as well as potential legal pitfalls. When the opportunity costs are considered, there is little money actually saved by doing it themselves. F. On Demand Recruiting Services (ODRS) – This service provides short- term specialized recruiting to support specific projects without the expense of retaining traditional search firms. Basically, recruiters get paid by the hour or project, instead of a percentage fee. Two trends – technology and specialization – are changing the executive search business. Executive recruiters are being more specialized, and large ones are creating new businesses aimed specifically at specialized functions or industries. PPT 5-37 5-38 5-39 5-40 G. College Recruiting involves sending employers’ representatives to college campuses to prescreen applicants and create an applicant pool of management trainees, promotable candidates, and professional and technical employees. 1. Recruiting Goals – are to determine whether a candidate is worthy of further consideration, and to attract good candidates. The school’s reputation and the performance of previous hires from that source affect school selection. 2. On Site Visits – are usually extended to good candidates. 3. Internships – are a recruiting approach that can be a win-win situation for the employer and the student. For employers, interns can make useful contributions while being evaluated for possible full-time employment. Students, are able to hone business skills, check out potential employers, and learn more about their likes and dislikes. H. Referrals and Walk-Ins - are alternatives for identifying potential candidates. Referrals tend to generate high quality candidates. Walk-in candidates may be attracted by posting a “Help Wanted” sign. I. Recruiting Source Use and Effectiveness – Figure 5-12 summarizes a survey of best recruiting sources. Table 5-2 gives guidelines to improve a firm’s recruiting efforts. The experiences of Cheesecake Factory , Borders and Barnes & Noble are related. J. HRIS: an integrated technology approach to recruiting. Elements should include a requisition management system, a recruiting solution, screening services and hiring management software. ➢ NOTES Educational Materials to Use V. Recruiting a More Diverse Workforce A. Single Parents – Formulating an intelligent program for attracting single parents should begin with understanding the considerable problems they often encounter in balancing work and family life. B. Older Workers – With the entire population aging, many employers are encouraging retirement-age employees not to leave, or are actively recruiting employees who are at or beyond retirement age by making their companies an attractive place in which older workers can work. An image of older worker-friendliness and flexibility in scheduling are vital. The New Workforce – Supervising older workers, especially when the manager is 20-30 years younger can be a challenge. Maintaining authority and earning respect through hard work and getting to know employees are some of the keys to success in this situation. PPT 5-41 5-42 5-43 5-44 C. Recruiting Minorities and Women – requires employers to tailor their way of thinking and to design HR practices that make their firms attractive to them. D. Welfare-to-Work – The Federal Personal Responsibility and Welfare Reconciliation Act of 1996 prompted many employers to implement programs to attract and assimilate former welfare recipients. E. The Disabled – Employers can do several things to tap into this huge potential workforce. The Department of Labor’s Office of Disability Employment Policy offers several programs, and all states have local agencies that provide placement services and other recruitment and training tools. ➢ NOTES Educational Materials to Use VI. Developing and Using Application Forms A. Purpose of Applications Forms – Application forms are a good way to quickly collect verifiable and fairly accurate historical data from the candidate. B. Application Forms and the Law – Employers should carefully review their application forms to ensure they comply with equal employment laws. Questions to review include those asking about dates of graduation, arrest records, emergency contacts, physical disabilities, marital status, and housing arrangements. C. Using Application Forms to Predict Job Performance – Some firms use application forms to predict which candidates will be successful and which will not by conducting statistical studies to find the relationship between (1) responses on the application form and (2) measures of success on the job. Know Your Employment Law: Mandatory Arbitration – Though mandatory alternative dispute resolution clauses are generally enforceable, management should remember that individual agreements can be struck down by the courts, based on the merits of the agreement. Such clauses can inhibit recruiting, since they may have a negative impact on image. ➢ NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. What are the pros and con of five sources of job candidates? The text lists several sources of job candidates, both internal and external. The student should clearly identify the differences as well as comparative strengths and weaknesses of each. There are at least the following sources to choose from: advertising, employment agencies, executive recruiters, state job services, college recruiting, referrals, employee database, internal, and talent searches. 2. What are the four main types of information application forms provide? The application form is a good means of quickly collecting verifiable, and therefore potentially accurate, historical data from the candidate. It usually includes information on education, prior work history, and other experience related to the job The application form can provide four types of information: 1. substantive matters (such as education and experience); 2. applicant's previous progress and growth; 3. stability based on previous work history; 4. prediction of job success. 3. How, specifically, do equal employment laws apply to personnel planning and recruiting activities. The student should be able to discuss the areas in which the laws and regulations covered in Chapter 2 apply to the issues of planning and recruiting. This would include constraints on sources used for candidates (i.e. not excessive reliance on referrals), the wording of questions asked on application forms or in interviews, and planning decisions that must not be overly detrimental to a protected group. 4. What are five things employers should keep in mind when using internet sites to find job candidates? Keyword searches, don’t recycle your newspaper ads, give quick feedback, ensure privacy, applicant tracking, etc. 5. What are the five main things you would do to recruit and retain a more diverse workforce? The student should first be able to identify groups that would create a diverse workforce. Examples found in the text are: single parents, older workers, minorities and women, welfare recipients, and global candidates. In order to retain these employees, students would first need to understand the needs of each group, and then create plans and programs that accommodate these specific needs. For example, to attract and keep single mothers, employers could give employees schedule flexibility, and train the supervisors to have an increased awareness of and sensitivity to the challenges single parents face. INDIVIDUAL AND GROUP ACTIVITIES 1. Working individually or in groups, bring to class several classified and display ads from the Sunday’s help wanted ads. Analyze the effectivenss of these ads using the guidelines discussed in the chapter. The effectiveness should be analyzed using the following list: attracts attention, develops interest, creates desire, and prompts action. 2. Working individually or in groups, develop a forecast for the next five years of occupational market conditions for various occupations such as accountant, nurse, and engineer. Be sure that the forecasts that the students develop are grounded in information gleaned from these sources. They should do an adequate analysis of the statistics. 3. Working individually or in groups, visit your local office of your state employment agency. Come back to class prepared to discuss the following questions: What types of jobs seemed to be available through this agency, predominantly? To what extent do you think this particular agency would be a good source of professional, technical, and/or managerial applicants? What sort of paperwork are applicants to the state agency required to complete before their applications are processed by the agency? What other services did the office provide? What other opinions did you form about the state agency? The answers to this will vary greatly by state and local offices. Generally, these agencies may be more oriented to unskilled and skilled position, rarely do they handle professional and managerial positions...although some do quite a bit. Although students may come back with a negative view of these offices, help them to understand the valuable role that they do play. A special note of courtesy: make sure that your have discussed this assignment with the local agency office. Surprise visits by several groups during busy periods can create some especially negative relations between the office and your school. Make sure they are welcome and expected. 4. Working individually or in groups, find at least 5 employment ads either on the Internet or in a local newspaper that suggest that the company is family-friendly and should appeal to women, minorities, older workers, and single parents. Discuss what they’re doing to be family-friendly. Students should identify statements in the ad that would suggest that they’re aiming to be family-friendly. 5. Working individually or in groups, interview a manager between the ages of 25 and 35 at a local business who manages employees 40 or older. Ask the manager to describe three or four of his or her most challenging experiences managing older employees. Students should probe the manager to see if he/she mentions that the older employee found the experience challenging as well. 6. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge someone studying for the HRCI certification exam needs to know in each area of human resource management (such as in Strategic Management, Workforce Planning and Human Resource Development). In groups of 4-5 students, do four things: (1) review that appendix now: (2) identify the material in this chapter that relates to the required knowledge the appendix lists; (3) write four multiple choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team’s questions in front of the class, so the students in other teams can take each other’s exam questions. Examples of multiple choice questions are as follows: 1. Trend Analysis, Ratio Analysis and Scatter Plots are all methods of: a. Recruiting b. Forecasting Personnel Needs (correct answer) c. On-Demand Recruiting Services d. Qualifications Inventories 2. Contingent staffing is: a. Potentially risky for employers b. Beneficial in terms of productivity c. Costs employers more than permanent workers d. All of the above (correct answer) 3. Selection Devices that can be used to screen applicants are: a. Structured interviews (correct answer) b. Job descriptions c. Qualifications inventories d. None of the above 4. Qualifications Inventories,and Replacement Charts are examples of tools to: a. Finding contingent workers b. Forecast the supply of internal candidates (correct answer) c. Recruiting a more diverse workforce d. Ratio analysis Experiential Exercise: The Nursing Shortage This is a good exercise for students to create a recruiting approach for nursing jobs and use their creativity and what they have learned in the chapter. Application Case: Finding People Who Are Passionate About What They Do Trilogy Software is a fast growing software company with a unique and highly unorthodox culture. The case provides a framework for discussing issues related to person-company fit and the role of recruiting in that process. 1. Identify some of the established selection techniques that underlie Trilogy’s unconventional approach to attracting talent? Trilogy actively recruits potential employees early in the hiring cycle. Their techniques include reviewing resumes (over 15,000 in one year), attending job and career fairs, conducting on campus interviews (over 4,000), flying in prospects for interviews, and having more personalized procedures for handling top recruits. 2. What particular elements of Trilogy’s culture most likely appeal to the kind of employees it seeks? How does it convey those elements to job prospects? A number of company characteristics many appeal to programmers, including: no dress code, no regular work schedule, self-directed scheduling, workers with similar interests and technically challenging work. 3. Would Trilogy be an appealing employer for you? Why or why not? If not, what would it take for you to accept a job offer from Trilogy? Students may answer this either way. Students who require more structure may want to know about career paths, mentoring and measures of success. They may want the company to make some sort of symbolic comment to them. 4. What suggestions would you make to Trilogy for improving their recruiting processes? The student should refer to the section on outside sources of candidates and put themselves in the shoes of a prospect to make their suggestions Continuing Case: Carter Cleaning Company Getting Better Applicants 1. First, how would you recommend we go about reducing the turnover in our stores? The students should base their responses on the information presented in the advertising section of the chapter, and their response should include placing and constructing ads that will attract candidates who will find the job attractive. 2. Provide a detailed list of recommendations concerning how we should go about increasing our pool of acceptable job applicants, so we no longer have to hire almost anyone who walks in the door. (Your recommendations regarding the latter should include completely worded advertisements and recommendations regarding any other EXPERIENTIAL EXERCISES & CASES recruiting strategies you would suggest we use.) The students should review the section on outside sources of candidates, and their responses should include advertising and the possible use of employment and/or temp agencies. Translating Strategy into HR Policies and Practice Case: The Hotel Paris The New Recruitment Process – The continuing case study of Hotel Paris is discussed here. In this example, HR manager Lisa Cruz must formulate functional policies and activities that support the hotel’s competitive strategy, by eliciting the required employee behaviors and competencies. Questions 1. Given the hotel’s stated employee preferences, what recruiting sources would you suggest they use, and why? Though the local paper may bring in applicants, the development of a succession plan will ensure that lower level employees are ready to move into higher levels when an opening occurs. College recruitment and employee referral may also be a good resource. The company should begin using selection testing, particularly in the areas of integrity and conscientiousness testing. 2. What would a Hotel Paris help wanted ad look like? Figure 5-9 displays effective and non-effective ads. Elements from these should be incorporated into student responses, which will vary. The hotel should consider developing a recognizable logo and color scheme, along with a standard format for ads. That format’s use should be mandatory across the various hotels. 3. How would you suggest they measure the effectiveness of their recruiting efforts? The number of qualified applicants per position, percentage of jobs filled from within, the offer-to-acceptance ratio, acceptance by recruiting source, turnover by recruiting source, and selection test results by recruiting source are used by other hotels, and should be considered for use by Hotel Paris. KEY TERMS employment or The process of deciding what positions the firm will have to fill, and how personnel planning to fill them. trend analysis Study of a firm's past employment needs over a period of years to predict future needs. ratio analysis A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed. scatter plot A graphical method used to help identify the relationship between two variables. computerized forecast The determination of future staff needs by projecting a firm's sales, volume of production, and personnel required to maintain this volume of output, using computers and software packages. qualifications inventories Manual or computerized systematic records, listing employees' education, career and development interests, languages, special skills, and so on, to be used in forecasting inside candidates for promotion. personnel replacement Company records showing present performance charts and promotability of inside candidates for the most important positions. position replacement A card prepared for each position in a company to show possible cards replacement candidates and their qualifications. recruiting yield pyramid Calculating and using the historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. job posting Posting notices of job openings on company bulletin boards is an effective recruiting method. succession planning The process of ensuring a suitable supply of successors for current and future senior or key jobs. alternative staffing The use of nontraditional recruitment sources. on demand recruiting These services provide short-term, specialized recruiting services usually services (ODRS) paid for by the hour or project, rather than on a percentage fee. application form The form that provides information on education, prior work record, and skills. Employee recruiting finding and/or attracting applicants for the employer’s open positions. Applicant tracking systems Online systems that help employers attract, gather, screen, compile, and manage applicants. DESSLER COMPANION WEB SITE We invite you to visit the Dessler homepage (http://www.prenhall.com/dessler) on the Prentice Hall Web site for the best online business support available. This site provides professors with a customized course Web site, including new communication tools, one-click navigation of chapter content, and great resources, such as Internet Resources, an HRCI Exam Prep Guide, assessment exercises, and more. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R Personnel Planning and Recruiting Chapter 5 Part 2 | Recruitment and Placement 5–2 After studying this chapter, you should be able to: 1. Explain the main techniques used in employment planning and forecasting. 2. List and discuss the main outside sources of candidates. 3. Effectively recruit job candidates. 4. Name and describe the main internal sources of candidates. 5. Develop a help wanted ad. 6. Explain how to recruit a more diverse workforce. 5–3 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. 5–4 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. 5–5 FIGURE 5–2 Linking Employer’s Strategy to Plans 5–6 Planning and Forecasting • Employment or Personnel Planning ➢The process of deciding what positions the firm will have to fill, and how to fill them. • Succession Planning ➢The process of deciding how to fill the company’s most important executive jobs. • What to Forecast? ➢Overall personnel needs ➢The supply of inside candidates ➢The supply of outside candidates 5–7 Forecasting Personnel Needs Trend Analysis Scatter Plotting Forecasting Tools Ratio Analysis 5–8 FIGURE 5–3 Determining the Relationship Between Hospital Size and Number of Nurses Note: After fitting the line, you can project how many employees you’ll need, given your projected volume. Size of Hospital (Number of Beds) Number of Registered Nurses 200 240 300 260 400 470 500 500 600 620 700 660 800 820 900 860 5–9 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. 5–10 Using Computers to Forecast Personnel Requirements • Computerized Forecasts ➢Software that estimates future staffing needs by: ❖Projecting sales, volume of production, and personnel required to maintain different volumes of output. ❖Forecasting staffing levels for direct labor, indirect staff, and exempt staff. ❖Creating metrics for direct labor hours and three sales projection scenarios—minimum, maximum, and probable. 5–11 FIGURE 5–4 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents 5–12 Forecasting the Supply of Inside Candidates Manual Systems and Replacement Charts Qualification Inventories Computerized Information Systems 5–13 The Matter of Privacy • Ensuring the Security of HR Information ➢Control of HR information through access matrices ➢Access to records and employee privacy • Legal Considerations ➢The Federal Privacy Act of 1974 ➢New York Personal Privacy Act of 1985 ➢HIPAA ➢Americans with Disabilities Act 5–14 FIGURE 5–5 Keeping Data Safe 1. Perform background checks on anyone who is going to have access to personal information. 2. If someone with access to personal information is out sick or on leave, don’t hire a temporary employee to replace him or her. Instead, bring in a trusted worker from another department. 3. Perform random background checks such as random drug tests. Just because someone passed five years ago doesn’t mean their current situation is the same. 4. Limit access to information such as SSNs, health information, and other sensitive data to HR managers who require it to do their jobs. Since intruders can strike from outside an organization or from within, HR departments can help screen out potential identity thieves by following four basic rules: 5–15 Forecasting Outside Candidate Supply • Factors In Supply of Outside Candidates ➢General economic conditions ➢Expected unemployment rate • Sources of Information ➢Periodic forecasts in business publications ➢Online economic projections ❖U.S. Congressional Budget Office (CBO) ❖U.S. Department of Labor’s O*NET ❖Bureau of Labor Statistics (BLS) ❖Other federal agencies and private sources 5–16 Effective Recruiting • External Factors Affecting Recruiting ➢Supply of workers ➢Outsourcing of white-collar jobs ➢Fewer “qualified” candidates • Other Factors Affecting Recruiting ➢Consistency of recruitment with strategic goals ➢Types of jobs recruited and recruiting methods ➢Nonrecruitment HR issues and policies ➢Successful prescreening of applicants ➢Public image of the firm ➢Employment laws 5–17 Effective Recruiting (cont’d) • Advantages of Centralizing Recruitment ➢Strengthens employment brand ➢Facilitates applying strategic priorities ➢Reduces duplication of HR activities ➢Reduces cost of new HR technologies ➢Builds teams of HR experts ➢Provides better measurement of HR performance ➢Allows for sharing of applicant pools 5–18 FIGURE 5–6 Sample Acceptable Questions Once Conditional Offer Is Made 1. Do you have any responsibilities that conflict with the job vacancy? 2. How long have you lived at your present address? 3. Do you have any relatives working for this company? 4. Do you have any physical defects that would prevent you from performing certain jobs where, to your knowledge, vacancies exist? 5. Do you have adequate means of transportation to get to work? 6. Have you had any major illness (treated or untreated) in the past 10 years? 7. Have you ever been convicted of a felony or do you have a history of being a violent person? (This is a very important question to avoid a negligent hiring or retention charge.) 8. What is your educational background? (The information required here would depend on the job-related requirements of the position.) 5–19 Measuring Recruiting Effectiveness What to Measure How to Measure Evaluating Recruiting Effectiveness 5–20 TABLE 5–1 Selection Devices that Could be Used to Initially Screen Applicants Selection Device Validity for Predicting Job Performance* Construct General mental ability tests 0.51 Conscientiousness tests 0.31 Integrity tests 0.41 Method Work sample tests 0.54 Job knowledge tests 0.48 Structured interviews 0.51 Biographical data 0.35 Grade point average 0.23 Ratings of training and experience 0.11 Note: *Higher is better. Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470. 5–21 FIGURE 5–7 Recruiting Yield Pyramid 5–22 Internal Candidates: Hiring from Within • 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 • Failed applicants become discontented • Time wasted interviewing inside candidates who will not be considered • Inbreeding strengthens tendency to maintain the status quo Advantages Disadvantages 5–23 Finding Internal Candidates Hiring from Within Job Posting Succession Planning (HRIS) Rehiring Former Employees 5–24 Outside Sources of Candidates 1 2 3 4 5 Advertising Recruiting via the Internet Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 6 7 8 9 On Demand Recruiting Services (ODRS) Executive Recruiters College Recruiting Referrals and Walk-ins Locating Outside Candidates 5–25 Outside Sources of Candidates (cont’d) • Recruiting via the Internet ➢ Advantages ❖ Cost-effective way to publicize job openings ❖ More applicants attracted over a longer period ❖ Immediate applicant responses ❖ Online prescreening of applicants ❖ Links to other job search sites ❖ Automation of applicant tracking and evaluation ➢ Disadvantages ❖ Exclusion of older and minority workers ❖ Excessive number of unqualified applicants ❖ Personal information privacy concerns of applicants 5–26 FIGURE 5–8 Top Job Boards Ranked According to Average Number of Job Listings Source: Workforce Management, May 22, 2006, p. 12. 5–27 FIGURE 5–9 Ineffective and Effective Web Ads Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission. 5–28 Advertising for Outside Candidates • The Media Choice ➢Selection of the best medium depends on the positions for which the firm is recruiting. ❖Newspapers: local and specific labor markets ❖Trade and professional journals: specialized employees ❖Internet job sites: global labor markets • Effective Ads ➢Create attention, interest, desire, and action (AIDA). ➢Create a positive impression of the firm. 5–29 FIGURE 5–10 Help Wanted Ad That Draws Attention Source: The New York Times, May 13, 2007, Business p. 18. 5–30 Employment Agencies Public Agencies Private Agencies Types of Employment Agencies Nonprofit Agencies 5–31 Outside Sources of Candidates (cont’d) • Why Use a Private Employment Agency ➢No HR department: firm lacks recruiting and screening capabilities. ➢To attract a pool of qualified applicants. ➢To fill a particular opening quickly. ➢To attract more minority or female applicants. ➢To reach currently employed individuals who are more comfortable dealing with agencies. ➢To reduce internal time devoted to recruiting. 5–32 Outside Sources of Candidates (cont’d) • Avoiding Problems with Employment Agencies ➢Provide the agency with accurate and complete job descriptions. ➢Make sure tests, application blanks, and interviews are part of the agency’s selection process. ➢Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agency’s screening process. ➢Screen agency for effectiveness in filling positions. ➢Supplement the agency’s reference checking by checking the final candidate’s references yourself. 5–33 Temp Agencies and Alternative Staffing • Benefits of Temps ➢Increased productivity—paid only when working ➢Allows “trial run” for prospective employees ➢No recruitment, screening, and payroll administration costs • Costs of Temps ➢Increased labor costs due to fees paid to temp agencies ➢Temp employees’ lack of commitment to the firm 5–34 Concerns of Temp Employees • Dehumanizing, impersonal, and discouraging treatment by employers. • Insecurity about employment and pessimism about the future. • Worry about the lack of insurance and pension benefits. • Being misled about job assignments and whether temporary assignments are likely to become full-time positions. • Being “underemployed” while trying return to the full- time labor market. • Anger toward the corporate world and its values; expressed as alienation and disenchantment. 5–35 FIGURE 5–11 Guidelines for Using Temporary Employees Source: Adapted from Bohner and Selasco, “Beware the Legal Risks of Hiring Temps,” Workforce, October 2000, p. 53. 1. Do not train your contingent workers. Ask their staffing agency to handle training. 2. Do not negotiate the pay rate of your contingent workers. The agency should set pay. 3. Do not coach or counsel a contingent worker on his/her job performance. Instead, call the person’s agency and request that it do so. 4. Do not negotiate a contingent worker’s vacations or personal time off. Direct the worker to his or her agency. 5. Do not routinely include contingent workers in your company’s employee functions. 6. Do not allow contingent workers to utilize facilities intended for employees. 7. Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval. 8. Do not let managers discuss harassment or discrimination issues with contingent workers. 9. Do not discuss job opportunities and the contingent worker’s suitability for them directly. Instead, refer the worker to publicly available job postings. 10. Do not terminate a contingent worker directly. Contact the agency to do so. 5–36 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 and 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. 5–37 Offshoring/Outsourcing White-Collar and Other Jobs Political and Military Instability Cultural Misunderstandings Customers’ security and privacy concerns Foreign contracts, liability, and legal concerns Special training of foreign employees Costs of foreign workers Resentment and anxiety of U.S. employees/unions Main Issues 5–38 Outside Sources of Candidates (cont’d) • Executive Recruiters (Headhunters) ➢ Contingent-based recruiters ➢ Retained executive searchers ➢ 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. 5–39 Outside Sources of Candidates (cont’d) • College Recruiting ➢ On-campus recruiting goals ❖ To determine if the candidate is worthy of further consideration ❖ To attract good candidates ➢ On-site visits ❖ Invitation letters ❖ Assigned hosts ❖ Information packages ❖ Planned interviews ❖ Timely employment offer ❖ Follow-up ➢ Internships 5–40 Outside Sources of Candidates (cont’d) • Employee Referrals ➢Referring employees become stakeholders. ➢Referral is a cost-effective recruitment program. ➢Referral can speed up diversifying the workforce. ➢Relying on referrals may be discriminatory. • Walk-ins ➢Seek employment through a personal direct approach to the employer. ➢Courteous treatment of any applicant is a good business practice. 5–41 FIGURE 5–12 Best Recruiting Sources Percentage of employers reporting best-performing sources for hiring without regard to cost, 2004. Source: Workforce Management, December 2004, p. 98. Note: Survey of 2,294 organizations. 5–42 Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting Requisition Management System Integrated Recruiting Solution Screening Services Hiring Management Integrated Employee Recruitment System 5–43 Recruiting A More Diverse Workforce Single Parents Older Workers Welfare-to-Work Minorities and Women The Disabled 5–44 Developing and Using Application Forms Applicant’s education and experience Applicant’s likelihood of success Applicant’s progress and growth Uses of Application Information Applicant’s employment stability 5–45 FIGURE 5–13 Employment Application 5–46 Application Forms and the Law Education Achievements Arrest Record Notification in Case of Emergency Memberships in Organizations Physical Handicaps Marital Status Housing Arrangements Areas of Personal Information 5–47 K E Y T E R M S employment or personnel planning trend analysis ratio analysis scatter plot computerized forecast qualifications inventories personnel replacement charts position replacement card recruiting yield pyramid job posting succession planning alternative staffing on demand recruiting services (ODRS) application form Solution Manual for Human Resource Management Gary Dessler 9780133029864, 9789353942205, 9780135226803, 9780136089964, 9780134235455, 9780130141248, 9780131746176

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