MGT 3513 Chapter 5 (Part 1): Recruitment & Selection Please remember to turn off and put away cell phones. “Judge of a man by his questions rather than by his answers.” Voltaire

ANNOUNCEMENTS

Recruiting at Hautelook php?title=Hautelook- %20%20Recruiting&clip=pandc/bp/2012/MGMT/HRM/hrm_0401_512.mov&cap tion=bp/bp_mylabs/akamai/2012/MGMT/HRM/xml/hrm_0401_512.xml php?title=Hautelook- %20%20Recruiting&clip=pandc/bp/2012/MGMT/HRM/hrm_0401_512.mov&cap tion=bp/bp_mylabs/akamai/2012/MGMT/HRM/xml/hrm_0401_512.xml 1. What sources of recruitment does Hautelook rely upon? 2. How has the Internet made recruitment easier? 3. What challenges do recruiters face because of the Internet? 4. What are some of the benefits of internal recruitment? 5. Why do companies outsource recruitment?

Questions on HR Supply and Demand What is the labor supply? What is the labor demand? What is human resource planning? What is a labor surplus?

Questions on HR Supply and Demand What is a labor shortage? What is the internal labor market? What is the external labor market? What is succession planning?

Questions on Forecasting What is forecasting? How are qualitative and quantitative forecasting techniques different?

Questions on HR Planning What is recruitment? What is selection? What is socialization?

Challenges in the Hiring Process What does Whole Foods look for in job applicants? Who is in charge of hiring decisions at Whole Foods? Why? Why do you think employees at Whole Foods haven’t decided to form and join a union?

Challenges in the Hiring Process Major costs associated with turnover 4 major challenges in hiring process Personal characteristics Measurement Motivation Who decides?

Sources of Recruitment Current employees Employee referrals Former employees Former military Print/radio Internet Employment agencies Temporary workers College recruiting Customers

Questions on Recruitment What are some nontraditional groups that can be recruited? Why target these groups? What are the trade-offs from hiring internally versus externally?

Employment Scenario: What went wrong??? Susie was hired to work for Software Solutions 6 months ago. She trains clients how to use the company’s software. As a job applicant, Susie was promised a good wage, as well as the opportunity to work with high profile clients and to travel (international and domestic). Susie, who was very excited about her new job, is now very unhappy and looking for another job. She did not expect to have to travel most Fridays and Sundays. Not only does she have little personal time, but at work she can hardly keep up with the company’s requirement to report feedback from each training session and respond to each client comment.

Approaches to Recruitment Flypaper approach Try to attract as many applicants as possible Emphasize the good points of the job Outcomes: unrealistic expectations of job higher turnover

Approaches to Recruitment Realistic Job Preview (RJP) approach Show good points and bad points of job Lower naïve expectations Reduce shock Allow time to develop coping mechanisms Outcomes: more realistic expectations of job lower turnover

Examples - - Identify which approach is being used Allen’s Furniture is looking for someone to help with sales and load furniture for customers. When Allen interviews applicants, he tells them that he pays very well; however, he informs each applicant that the job requires long hours, work on weekends, and heavy lifting. Flypaper or RJP (circle one)

Examples - - Identify which approach is being used Techtronics Telemarketers advertises by posting flyers at universities and employment agencies. The flyer states that the company pays a high hourly wage & has very flexible work hours. Flypaper or RJP (circle one)

Evaluating Recruitment How does a company know what recruitment sources to use? Yield ratios Cost-per-hire Applicant quality (by source) Example: Newspaper vs. employee referrals

Practice evaluating recruitment Example: My organization paid $700 to run an ad in the local newspaper advertising a sales position. Also, we paid $300 to a radio station to advertise the same position. Forty individuals applied for the position (30 in response to radio & 10 in response to newspaper); however, we only hired 8 new sales representatives (3 from radio & 5 from newspaper). Calculate the cost per hire Calculate the yield ratio for each source of recruitment

Cost per hire = cost/hires SourceCost # HiresCost per hire

Cost per hire = cost/hires SourceCost # HiresCost per hire Newspaper Radio

Cost per hire = cost/hires SourceCost # HiresCost per hire Newspaper$700 Radio$300 Total$1000

Cost per hire = cost/hires SourceCost # HiresCost per hire Newspaper$7005 Radio$3003 Total$10008

Cost per hire = cost/hires SourceCost # HiresCost per hire Newspaper$7005$140 Radio$3003$100 Total$10008$125

Yield ratio = hires/applicants Source # Applicants # HiresYield ratio Newspaper Radio

Yield ratio = hires/applicants Source # Applicants # HiresYield ratio Newspaper10 Radio30 Total40

Yield ratio = hires/applicants Source # Applicants # HiresYield ratio Newspaper105 Radio303 Total408

Yield ratio = hires/applicants Source # Applicants # HiresYield ratio Newspaper1051 to 2 (50%) Radio3031 to 10 (10%) Total4081 to 5 (20%)

Practice evaluating recruitment Example: Forty individuals applied for the position (30 in response to radio & 10 in response to newspaper); however, we only hired 8 new sales representatives (3 from radio & 5 from newspaper). Unfortunately, 3 of the new hires quit at the end of the year (1 who responded to newspaper ad, 2 who responded to radio ad). Calculate 1 yr. turnover rate

Applicant quality =quits/hires Source # Hires1 year turnover Measure of applicant quality Newspaper Radio

Applicant quality =quits/hires Source # Hires1 year turnover Measure of applicant quality Newspaper5 Radio3 Total8

Applicant quality =quits/hires Source # Hires1 year turnover Measure of applicant quality Newspaper51 quit Radio32 quits Total83 quits

Applicant quality =quits/hires Source # Hires1 year turnover Measure of applicant quality Newspaper51 quit20% Radio32 quitsapprox. 67% Total83 quits(37.5%)

Practice evaluating recruitment SourceCost # Applica nts # HiresCost per hire Yield ratio 1 year turnover Newspa per $700105$1401 to 2 (50%) 1 quit (20%) Radio$300303$1001 to 10 (10%) 2 quits (approx. 67%) Total$ $1251 to 5 (20%) 3 quits (37.5%)