Human Resource Management Robert L. Mathis | John H. Jackson | Sean R. Valentine © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting and Labor Markets CHAPTER 6 14e

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Learning Objectives  List different ways that labor markets can be identified and approached  Discuss the strategic decisions covering recruiting image, outsourcing, and other related areas  Explain why Internet recruiting has grown and how it affects recruiting efforts done by employers  Highlight five external recruiting sources

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Learning Objectives  Identify three internal sources for recruiting and issues associated with their use  Describe three factors to consider when doing recruiting measurement and metrics

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting  Process of generating a pool of qualified applicants for organizational jobs  Considerations

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Integral Components for Effective Recruiting

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting Requirements Expected of Employers  Know the industry and where to successfully recruit  Identify keys to success in the labor market  Cultivate relationships with sources of prospective employees  Promote the company brand  Use recruiting metrics to measure the effectiveness of recruiting efforts

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Training of Recruiters and Managers  Recruiting-related activities  Communications skills  Diversity and sensitivity skills  Ethical recruiting behaviors  Follow-up activities

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Labor Market  External supply pool from which employers attract employees  Components of labor market  Labor force population : All individuals who are available for selection if all possible recruitment strategies are used  Applicant population : Subset of the labor force population that is available for selection using a particular recruiting approach

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Labor Market Components  Applicant pool : All persons who are actually evaluated for selection  Applicant tracking system - Makes the recruiting process more effective  Individuals selected for a job - When the candidates reject the offer:  HR staff members must move back up the funnel to the applicant pool for other candidates  HR staff, in extreme cases, may need to reopen the recruiting process

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Unemployment Rates and Labor Markets  Unemployment rates vary with business cycles  Strict hiring adopted by companies due to recessionary conditions  Decreased customer spending  Increased business competition  Decreased need for new employees due to developments in technology

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Considerations for Determining Applicant Populations

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Different Labor Markets and Recruiting Labor Markets Industry and Occupational Labor Markets These jobs represent the health care, retail, and education industries Educational and Technical Labor Markets C onsidering the educational and technical qualifications that define the people being recruited Geographic Labor Markets Markets can be local, area or regional, national, or international Global Labor Markets Firms expand by exporting work to overseas labor markets when doing so is advantageous

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting Presence and Image  Recruiting image can be:  Continuous - Offers the advantage of keeping the employer in the recruiting market  Intensive - Vigorous recruiting campaign aimed at hiring a given number of employees in a short period

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting Presence and Image  Employment brand : Image of the organization that is held by both employees and outsiders  Company brand can help generate more recruits through applicant self-selection

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Strategic Recruiting Decisions

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Organization-Based versus Outsourced Recruiting  Recruitment process outsourcing (RPO)  Improves the number and quality of recruiting candidates  Reduces recruiting costs  Professional Employer Organizations (PEO) and employee leasing  Employer signs an agreement with the PEO

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Organization-Based versus Outsourced Recruiting  Staff is hired by the leasing firm and leased back to the company for a fee  Leasing firm:  Writes the paychecks  Pays taxes  Prepares and implements HR policies  Keeps all the required records for the employer

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Regular versus Flexible Staffing  Employers are hesitant to hire full0time employees due to:  Increased cost  Economic conditions  Excessive competition  Government considerations

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Regular versus Flexible Staffing  Temporary workers - Employers can hire their own staff members or make use of agencies on a rate-per-day/week basis  Purpose of hiring temporary workers  Match the firm’s needs with the right workers  Avoid costs associated with benefits  Enhance staffing flexibility

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Regular versus Flexible Staffing  Independent contractors - Workers who perform specific services on a contract basis  Advantageous for the employer as they do not have to pay benefits  Done by individuals who are:  Highly skilled  Highly experienced  Not affected by familial responsibilities

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Pros and Cons of Utilizing Flexible Staffing

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Recruiting and Diversity Considerations

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. EEO and Recruiting Efforts  Organizations must work to reduce:  External disparate impact  Underrepresentation of protected-class members  Special ways to reduce disparate impact can be identified as:  Goals listed in the affirmative action programs (AAPs)

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. EEO and Recruiting Efforts  Equal Employment Opportunity Commission (EEOC) guidelines state that:  No direct or indirect references implying gender or age are permitted  Advertisements should contain wording about being an equal opportunity employer  Specific designations such as EEO/M- F/AA/ADA can be given in the advertisements

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting diversity  Nontraditional diverse recruitees  Persons with different racial/ethnic backgrounds  Older workers over 40 years of age  Single parents  Workers with disabilities  Welfare-to-work workers  Homeless/substance abuse workers

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Realistic Job Previews  Provides a balanced view of:  Advantages, demands, expectations, and challenges in an organization or a job  Help attract employees with more realistic expectations  Reduce the number of employees who quit a few months after being hired

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting Source Choices: Internal versus External  Internal recruitment - Promoting from within an organization  External recruitment - Recruiting from outside an organization  Possible strategy for organizations that face rapidly changing competitive environments and conditions might be to:  Promote from within if a qualified applicant exists  Go to external sources if not

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internet Recruiting Effects of Internet Recruiting Adjusting to new recruiting approaches Identifying new types of recruiting for specific jobs Training for managers and HR recruiters

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internet Recruiting E-Recruiting Places Internet Job Boards Professional/ Career Web Sites Employer Web Sites

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internet Recruiting Social Networking Recruiting Advantages Allows job seekers to connect with employees of potential employers Allows employers to engage in social collaboration by joining and accessing social technology networks to help applicants post resumes and complete applications online

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internet Recruiting

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Legal Issues in Internet Recruiting

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internet Recruiting Cost effective recruiting Recruiting less time consuming Broader exposure and diverse pool of applicants Better targeting of specific audiences Recruiters can reach passive job seekers More unqualified applicants Additional work for HR staff Many applicants are not seriously seeking employment Access limited or unavailable to some applicants Privacy of information and discrimination issues AdvantagesDisadvantages

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources Media Sources Employment Agencies Competitive Recruiting Sources Labor Unions Job Fairs and Creative Recruiting Educational Institutions External Recruiting Sources

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Advantages and Disadvantages of External Recruiting

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Media sources - Newspapers, magazines, television, radio, and billboards have been widely used in external recruiting  Internet media sources such as postings, ads, videos, and Webinars are also used

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Effectiveness of evaluating media ads  Easy ways to track responses to ads  Different contact names  addresses  Phone number codes in each ad  After hiring, follow-up should be done  Shows which sources produced the employees who stay longer and perform better

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure What to Include in an Effective Recruiting Ad

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Competitive recruiting sources - Includes professional societies and trade associations that:  Publish newsletters or magazines and have Web sites containing job ads

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Employment agencies - Public and private recruiting source  Public employment agencies - Operate branch offices in cities throughout the states  Do not charge fees to applicants or employers  Private employment agencies - Operate in most cities for a fee collected from:  Either the employee or the employer

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Headhunters : Focus their efforts on executive, managerial, and professional positions  Executive search firms split into:  Contingency firms - Charge a fee after the candidate is hired  Retainer firms - Charge a fee whether or not the candidate is successfully hired

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Labor unions - Labor pool is available through a union  Workers can be dispatched from the hiring hall to particular jobs to meet the needs of employers  Job fairs - To help bring employers and potential job candidates together  Creative recruiting - Can be used to generate a pool of qualified applicants quickly to fill jobs in a timely manner

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  Desirable attributes of college recruits  Desirable grade point average (GPA)  Attending elite universities  Internships

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure College Recruiting: Considerations for Employers

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. External Recruiting Sources  School recruiting  Cooperative programs  Students work part-time while attending school  Career encouragement  Summer internships  Mentoring programs

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Internal Recruiting Sources ComponentsDescription Internal Recruiting Databases and Internet-Related Sources Information on existing employees like knowledge, skills, and abilities (KSA) are entered into a database Employee data sorted by occupational fields, education, areas of career interests, previous work histories, and other variables These databases can be linked to HR activities Job Posting System in which: Employer provides notices of job openings Employees respond to notices of job opening Types Internet/Web-based job posting Promotions and transfers Employee-Focused Recruiting Reliable source as current and former employees: Are familiar with the employer Will not refer unqualified individuals Types Current-employee referrals Rerecruiting former employees and applicants Seeking out former employees and recruiting them again to work for an organization

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Advantages and Disadvantages of Internal Recruiting

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Recruiting Evaluation and Metrics

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Recruiting Measurement Areas

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. General Recruiting Process Metrics Comparison of the number of applicants at one stage of the recruiting process with the number at the next stage Yield Ratios Percentage hired from a given group of candidates Selection Rate Percent of applicants hired divided by total number of applicants offered jobs Acceptance Rate Longer-term measure of recruiting effectiveness is the success rate of applicants Success Base Rate

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure Sample Recruiting Evaluation Pyramid

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Increasing Recruiting Effectiveness  Recruiting activities  Résumé mining  Applicant tracking  Employer career Web site  Internal mobility  Realistic job previews

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Increasing Recruiting Effectiveness  Responsive recruitment  Fair and professional treatment by the recruiters  Emphasis of positive aspects about the jobs and the employer by the recruiters

© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Increasing Recruiting Effectiveness  Recruiting effectiveness can be increased by using the evaluation data to:  Target different applicant pools  Tap broader labor markets  Change recruiting methods  Improve internal handling and interviewing of applicants  Train recruiters and managers