Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 2 | Recruitment and Placement

Chapter 5

Personnel Planning and Recruiting

2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
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.

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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.

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FIGURE 51 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.

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FIGURE 52 Linking Employers Strategy to Plans

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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 companys
most important executive jobs.
What to Forecast?
Overall personnel needs
The supply of inside candidates
The supply of outside candidates

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 Forecasting Personnel Needs

Forecasting
Tools

Trend Analysis Ratio Analysis Scatter Plotting

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FIGURE 53
Determining the
Relationship
Between Hospital
Size and Number
of Nurses

Note: After fitting the

line, you can project
how many employees
youll need, given your
projected volume.

Size of Hospital Number of

(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

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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.

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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 scenariosminimum, maximum,
and probable.
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FIGURE 54
Management
Replacement
Chart Showing
Development
Needs of
Potential Future
Divisional Vice
Presidents

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 Forecasting the Supply of
Inside Candidates

Qualification
Inventories

Manual
Computerized
Systems and
Information
Replacement
Systems
Charts

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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 Privacy Act of 1974

Americans with Disabilities Act

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FIGURE 55 Keeping Data Safe

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:
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,
dont 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 doesnt 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.

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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
India. Congressional Budget Office (CBO)
iNdian Department of Labors O*NET
Bureau of Labor Statistics (BLS)
Other agencies and private sources

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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

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Effective Recruiting (contd)
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

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FIGURE 56 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.)

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 Measuring Recruiting Effectiveness

Evaluating
Recruiting
Effectiveness

What to How to
Measure Measure

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TABLE 51 Selection Devices that Could be Used to Initially Screen Applicants

Validity for Predicting Job

Selection Device 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.
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FIGURE 57 Recruiting Yield Pyramid

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Internal Candidates: Hiring from Within

Advantages Disadvantages
Foreknowledge of Failed applicants become
candidates strengths and discontented
weaknesses Time wasted interviewing
More accurate view of inside candidates who will
candidates skills not be considered
Candidates have a Inbreeding strengthens
stronger commitment to tendency to maintain the
the company status quo
Increases employee
morale
Less training and
orientation required

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 Finding Internal Candidates

Rehiring Former
Job Posting
Employees

Hiring from
Within

Succession
Planning (HRIS)

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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 9 Referrals and Walk-ins

Staffing

5 Offshoring/Outsourcing

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Outside Sources of Candidates (contd)
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

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FIGURE 58
Top Job
Boards
Ranked
According
to Average
Number of
Job
Listings

Source: Workforce
Management, May 22,
2006, p. 12.
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FIGURE 59 Ineffective and Effective Web Ads

Source: Workforce, December 2001, Crain Communication, Inc. Reprinted with permission.
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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.

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FIGURE 510 Help Wanted Ad That Draws Attention

Source: The New York Times, May 13, 2007, Business p. 18.
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 Employment Agencies

Types of Employment
Agencies

Public Nonprofit Private

Agencies Agencies Agencies

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Outside Sources of Candidates (contd)
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.

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Outside Sources of Candidates (contd)
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 agencys selection process.
Review candidates accepted or rejected by your firm
or the agency for effectiveness and fairness of
agencys screening process.
Screen agency for effectiveness in filling positions.
Supplement the agencys reference checking by
checking the final candidates references yourself.

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Temp Agencies and Alternative Staffing
Benefits of Temps
Increased productivitypaid 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

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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.

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FIGURE 511 Guidelines for Using Temporary Employees

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 persons agency and request that it do so.
4. Do not negotiate a contingent workers vacations or personal time off. Direct
the worker to his or her agency.
5. Do not routinely include contingent workers in your companys 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 workers 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.

Source: Adapted from Bohner and Selasco, Beware the Legal

Risks of Hiring Temps, Workforce, October 2000, p. 53.
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Working with a Temp Agency
Invoicing. Make sure the agencys invoice fits your companys
needs.
Time sheets. The time sheet is a verification of hours worked and
an agreement to pay the agencys 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.

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 Offshoring/Outsourcing White-Collar
and Other Jobs

Political and
Military Instability

Resentment and
Cultural
anxiety of U.S.
Misunderstandings
employees/unions

Main
Costs of foreign
Issues Customers
security and
workers
privacy concerns

Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns

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Outside Sources of Candidates (contd)
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.
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Outside Sources of Candidates (contd)
College Recruiting
On-campus recruiting On-site visits
goals Invitation letters
To determine if the Assigned hosts
candidate is worthy of
Information packages
further consideration
Planned interviews
To attract good
candidates Timely employment
offer
Follow-up
Internships

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Outside Sources of Candidates (contd)
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.

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FIGURE 512 Best Recruiting Sources

Percentage of employers reporting best-performing

Note: Survey of 2,294 organizations. sources for hiring without regard to cost, 2004.
Source: Workforce Management, December 2004, p. 98.
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 Improved Productivity Through HRIS:
An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution

Integrated Employee
Recruitment System
Screening Services

Hiring Management

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 Recruiting A More Diverse Workforce

Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women

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 Developing and Using Application Forms

Uses of Application
Information

Applicants Applicants Applicants Applicants

education and progress and employment likelihood of
experience growth stability success

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FIGURE 513
Employment
Application

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 Application Forms and the Law

Education
Achievements

Housing Arrest
Arrangements Record

Areas of Personal
Information Notification in
Marital
Case of
Status
Emergency

Physical Memberships in
Handicaps Organizations

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 KEY TERMS

employment or personnel position replacement card

planning recruiting yield pyramid
trend analysis job posting
ratio analysis succession planning
scatter plot alternative staffing
computerized forecast on demand recruiting services
qualifications inventories (ODRS)
personnel replacement charts application form

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