HR 2.141 - 04

Lecture 4
Recruiting and Retaining

Talented Employees
PREPARED BY:
MS.KOMLAVATHI
SCHOOL OF BUSINESS MARKETING
L E C T U R E 4 : Recruiting and Retaining Talented Employees
Chapter Outline
• Recruiting and Retention within the HR System
• The Strategic Importance of Recruiting and Retaining Talented Employees
• Recruiting Methods and Sources
• Recruiting from the Applicant’s Perspective Enhances Retention
• Equal Opportunity and Nondiscrimination
• Reducing Recruiting Needs Through Retention
Slide 2 of 36
Recruiting and Retention within the HR System
• Recruiting
– Searching for and obtaining qualified job candidates
Slide 3 of 36
Recruitment and Retention
• Recruitment
– The first step in the hiring process; the process is completed after
selection
• Retention
– Everything an employer does to encourage qualified and productive
employees to continue working for the organization
• Ideally, both management and applicant needs are satisfied in the selection
process.
Slide 4 of 36
Integrated HR System
Other HR Internal
Internal Sources
Sources Recruitment
Recruitment and
and
Activities Objectives
Objectives for
for ••Promotion
Promotion Retention
Retention Activities
Activities
• Legal Recruitment
Recruitment ••Transfer
Transfer •• Realistic
Realistic Job
Job
• Planning and
and Retention
Retention ••Rehire
Rehire Preview
Preview
• Job Analysis •• How
How Many?
Many? •• Career
Career development
development
• Selection •• Where?
Where?
•• Flexible
Flexible
• Training •• Who?
Who?
arrangements
arrangements
• Compensation •• When?
When?
External
External Sources
Sources •• Fairness
Fairness
••Walk-Ins
Walk-Ins
Global and ••Referrals
Referrals
Organizational Proof
Proof of
of Qualified
Qualified
••Other
Other companies
companies
Environment Legal
Legal Applicants
Applicants to
to Select
Select
••Agencies
Agencies
• Economy Considera-
Considera- From
From and
and Offer
Offer Jobs
Jobs
tions
tions ••Schools
Schools
• Competition ••Trade
Trade associations
associations
• Strategy •• EEO
EEO
and
and unions
unions
• Vision, values •• AAPs
AAPs
••Foreign
Foreign nationals
nationals
• Reputation
Slide 5 of 36
Examples of Strategic Choices and Recruitment Objectives

• Increase Market Share by  Retain talent as company grows
Offering Lowest-Cost  Predict rate of growth and increase size
Services of workforce
 Improve efficiency of recruitment
 Find low cost ways to attract and retain
talent
• Respond to Declining  Implement layoff plans

Industry Trends by  Attract and retain best talent
Diversifying into New  Plan lateral transfers from declining
Businesses business areas
 Recruit for new businesses
Slide 6 of 36
Job Analysis Answers These Questions
• What are the characteristics of the ideal recruit?
• Which competencies must people have when they first enter the
organization?
• How important is it for new hires to learn new competencies?
• What career opportunities can be discussed with applicants?
Slide 7 of 36
Current Strategic Recruitment Issues
• Keeping costs under control while ensuring that the organization can grow,
diversify, expand internationally
• Recruiting technical workers and senior management
• Legal compliance and affirmative action
• Involving employees in recruitment
Slide 8 of 36
The Value of Retention: Costs of Turnover
• Out-of-pocket expenses to recruit, hire, and train new employees

• Lost productivity:
– Errors made by inexperienced employees
– Damaged products
– Projects or contracts lost
– Lower morale among remaining employees
– Lost knowledge and business contacts
Slide 9 of 36
Roles and Responsibilities for Recruiting and Retaining Employees

Line Managers HR Professionals Employees
•With HR, develop •Develop objectives, •Openly discuss
objectives, plans plans objectives
•Understand HR •Design recruitment •Consider all aspects
linkages and retention of HR in career
activities decisions
•Disseminate info to
internal candidates •Evaluate recruitment •Participate in
outcomes recruitment efforts
•Know labor market
trends •Provide training in •Assist in diversity
recruitment efforts
•Abide by laws
•Use exit interviews, •Seek info on
•Facilitate
surveys company openings
retention
Slide 10 of 36
Recruiting Methods and Sources
• Research shows no clear differences in employment experiences of

employees recruited from different sources
• Advantages of Using Multiple Sources
• Increases diversity
• Generates a larger pool of applicants
Slide 11 of 36
Recruitment Methods and Sources
Internal Sources
Promotions Job Postings
Talent
Transfers
inventories
Slide 12 of 36
Internal Recruitment
• Pros • Cons
– Reduces labor costs – Limits applicant pool
– Valued by employees – May cause infighting
– Enhances reputation as – Inbreeding
employer
Slide 13 of 36
Recruitment Methods and Sources
External Labor Market
School placement Walk-in applicants

Trade associations Traditional Media
Foreign nationals Employee referrals
Acquisitions/ Employment agencies
Mergers Internet
Slide 14 of 36
Employing Foreign Workers
• Employers must be authorized to hire foreign nationals to work in U.S.
• Legislation affecting the hiring of foreign workers:
– Immigration Reform and Control Act (1986)
– Immigration Act of 1990
– American Competitiveness in the 21st Century Act (2000)
Slide 15 of 36
Employing Foreign Workers (cont’d)
• Use culturally appropriate • Monitor % with various types of

methods to advertise visas
• Document domestic recruiting • Provide relocation support

efforts’ lack of success • Provide training and
• Ensure equal treatment in acculturation
salary/benefits • Plan for visa expirations
• Assist in repatriation
Slide 16 of 36
Contingent Employees
• Hired to cope with unexpected • Recently called “free agents”

or temporary challenges • Limit to 3-12 month
• Include assignments
– Part-timers • Recruited using internet or
– Freelancers temporary agencies
– Subcontractors
– Independent professionals
Slide 17 of 36
Recalls and Rehires
• Used by seasonal businesses to cope with unexpected staffing shortages

after downsizing
• May rehire former regular employees as temporary employees
• Inexpensive to recruit
Slide 18 of 36
Contingent Employment
• Pros • Cons
– Employees have flexibility – Contingent workers may
– Workers can preview jobs have less commitment
and organizations – Conflict common between
– Easier to give regular regular and temporary
employees temporary workers
leaves
Slide 19 of 36
Recruiting from the Applicant’s Perspective Enhances Retention
• Building a Corporate Reputation
– Planning to become an “employer of choice”
• What benefits to offer
• How to communicate to public
– Risks
• Investment required
• Benchmarking may highlight deficiencies
• May raise employee expectations and awareness
Slide 20 of 36
Recruiting: The Applicant’s Perspective
• Recruiters should:
– Make it easy to apply
– Make a good impression
– Make an attractive offer
– Give applicants information
they need
– Reject with tact
• Status of recruiters
– Treatment of applicants
– Promptness of decisions
Slide 21 of 36
Making an Offer Applicants Will Accept
• Most job seekers are looking for “acceptable,” rather than “ideal” job.
• Location, job, company, and match with organization’s values are all
important to the applicant.
Slide 22 of 36
Making an Acceptable Offer

• Pay
– Noncompensatory reservation wage is the minimum pay to make an
offer acceptable, frequently based on:
• Prior compensation
• Length of unemployment
• Availability of salary information
– Generally higher for males than females
• Benefits and Work Arrangements

– Most employers take the compensatory approach
– Most applicants prefer
• Flexibility in benefits
• Opportunities to learn
Slide 23 of 36
Giving Applicants the Information They Need
• Realistic Job Previews
– Describe positive and negative aspects
– Increases number of recruits and commitment
– Help individuals self-select
• Give More Information Using
– Ads
– Job descriptions
– Film/video
– Work samples
Slide 24 of 36
Equal Opportunity and Nondiscrimination

• EEO-1 Report
– Employer information report required from most employers with more
than 100 employees
– Reports composition of workforce by
• Job family
• Sex
• Race/ethnicity
• Employment status
• Applicant Tracking Systems

– Keep data as applicants move through system and generate reports
– Demographic information must be kept separately from applicant
qualifications
– Use to check impact of recruiting methods
Slide 25 of 36
Affirmative Action (AA) Programs
• Programs to ensure proportional representation of qualified members of

protected groups in the relevant labor market
• Protected groups:
– Women
– African Americans
– Hispanics
– Native Americans
– Asian Americans
– Pacific Islander Americans
Slide 26 of 36
Affirmative Action Programs (cont’d)
• Reasons for AA Programs

– As part of consent decree to eliminate the effects of past
discrimination
– As required for Federal contractors
– On a voluntary basis
• Effective, Legal AA Programs
– Employers work to eliminate future bias by
• Having an EEO policy
• Analyzing their workforce
• Working to eliminate underutilization of protected classes
Slide 27 of 36
Affirmative Action Plan (cont’d)
• Executive Order 11246 Requires:
– AA plans for contractors with federal contracts greater than $50,000

and having 50 or more employees.
– Written AA plans to be filed with Office of Federal Contract

Compliance Programs (OFCCP).
• Plans Components
– A utilization analysis of current employees
– An availability analysis of the relevant labor market
– Diversity goals and timetables
Slide 28 of 36
Benefits and Risks of AA Plans
• Benefits
– Positive perceptions among employees and applicants when companies

make proactive efforts
– Enhanced diversity of applicant pool
– Avoidance of lawsuits
– Positive reactions by investors
• Risks
– Reverse discrimination charges
– AA hires may be perceived as less competent
– “Protected group” classification polarizes gender and ethnic groups
Slide 29 of 36
Recruiting Practices That May Create a Glass Ceiling
• Word of mouth
• Employee referrals
• Executive search firms unaware of EEO objectives
• Job postings that rely on informal networks
• Recruiting venues that create discomfort (e.g., hotel rooms)
Slide 30 of 36
Reducing Recruiting Needs Through Retention
• Turnover, not growth, creates most

recruitment pressures.
• Most (not all) turnover is caused by

dissatisfied employees and is
undesirable.
• Exit surveys are useful in diagnosing

turnover.
Slide 31 of 36
Process of Employee Turnover
Low job Labor market

satisfaction conditions
Insufficient Job
Low commitment,
incentives Search
withdrawal
and rewards
Other role
Poor job
commitments
performance
and time conflicts
Slide 32 of 36
Why Employees May Not Be Honest At Exit Interview
• Want to move on
• Negative comments may reach new

employer
• Cynicism about employer’s motivation
• Concern for those who remain
• Desire not to “burn bridges”
Slide 33 of 36
Ways to Minimize Turnover and Recruiting Difficulties
• Train supervisors to understand employees’ concerns, provide feedback, and

help with career development
• Invest in training, especially for low-skill jobs
• Use innovative HR approaches to keep employees’ interest
Slide 34 of 36
Managing Workforce Reductions and Layoffs
• Alternatives to Layoffs: • Consequences of Layoffs:
– Restricting overtime – Severance Payments
– Reducing workweek – Consultant fees
– Temporary leaves – Litigation
– Job sharing – Loss of trust in management
– Retraining – Lack of staff for rebound
– Transfers to other – Loss of reputation

companies
– Employee Buyouts
Slide 35 of 36
Downsizing With Respect
• Survivors often concerned with own survival and guilt
• Managers can
– Use fair process to let people go
– Develop careful change plan
– Work to regain trust
Slide 36 of 36

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Lecture 4

Recruiting and Retaining

• Recruiting and Retention within the HR System

• The Strategic Importance of Recruiting and Retaining Talented Employees

• Recruiting Methods and Sources

• Recruiting from the Applicant’s Perspective Enhances Retention

• Equal Opportunity and Nondiscrimination

• Reducing Recruiting Needs Through Retention

Recruiting and Retention within the HR System

Recruitment and Retention

Examples of Strategic Choices and Recruitment Objectives

• Respond to Declining  Implement layoff plans

Job Analysis Answers These Questions

• What are the characteristics of the ideal recruit?

• How important is it for new hires to learn new competencies?

• What career opportunities can be discussed with applicants?

Current Strategic Recruitment Issues

• Recruiting technical workers and senior management

• Legal compliance and affirmative action

• Involving employees in recruitment

The Value of Retention: Costs of Turnover

• Out-of-pocket expenses to recruit, hire, and train new employees

Roles and Responsibilities for Recruiting and Retaining Employees

Recruiting Methods and Sources

• Research shows no clear differences in employment experiences of

• Advantages of Using Multiple Sources

• Generates a larger pool of applicants

Recruitment Methods and Sources

Promotions Job Postings

Recruitment Methods and Sources

External Labor Market

School placement Walk-in applicants

Employing Foreign Workers

• Employers must be authorized to hire foreign nationals to work in U.S.

• Legislation affecting the hiring of foreign workers:

– Immigration Reform and Control Act (1986)

– Immigration Act of 1990

– American Competitiveness in the 21st Century Act (2000)

Employing Foreign Workers (cont’d)

• Use culturally appropriate • Monitor % with various types of

• Document domestic recruiting • Provide relocation support

• Hired to cope with unexpected • Recently called “free agents”

– Part-timers • Recruited using internet or

– Freelancers temporary agencies

Recalls and Rehires

• Used by seasonal businesses to cope with unexpected staffing shortages

• May rehire former regular employees as temporary employees

– Employees have flexibility – Contingent workers may

– Workers can preview jobs have less commitment

and organizations – Conflict common between

– Easier to give regular regular and temporary

employees temporary workers

Recruiting from the Applicant’s Perspective Enhances Retention

• Building a Corporate Reputation

– Planning to become an “employer of choice”

• What benefits to offer

• How to communicate to public

• Benchmarking may highlight deficiencies

• May raise employee expectations and awareness

Recruiting: The Applicant’s Perspective

Making an Offer Applicants Will Accept

Making an Acceptable Offer

• Benefits and Work Arrangements