5 . C H A P T E R F I V E Recruitment

Recruitment Defined The process of finding and attracting capable applicants to apply for employment The result is a pool of applicants Responsibility for recruitment usually resides with the human resource department functional specialists are often called recruiters

The Recruitment Process Identify job openings Pool of recruits Constraints on recruiters Identify job requirements Constraints Determine recruitment methods

Strategic Importance of Recruitment Gaining competitive advantage from human capital – presence of highly skilled and motivated workers can be a real competitive advantage Benefits of diversity management – hiring diverse pool of candidates offer greater choice of job applicant Focusing on employee development – training and development Investing resources into recruitment – budget affects the quality of recruits and the overall effectiveness of recruitment activities

Internal Recruiting Advantages Weaknesses Employee is familiar with the organization Lower recruitment costs Employee is “known”, thereby increasing ability to predict success Improves employee morale & motivation Internal competition can reduce cooperation No “new blood” is brought in which can prevent creative solutions Poor morale (possible turnover) of employees not promoted

External Recruiting Advantages Weaknesses Newcomers may not fit in Company is able to acquire skills which may not be currently available New ideas and ways of solving problems may emerge Newcomers may not fit in Newcomers take longer to learn about the organization Usually more expensive Lowered morale and motivation of current employees

Constraints (Limitations) on Recruitment Organizational policies Inducements Human resource plans Constraints on Recruitment Costs Diversity management Recruiter habits Job requirements Environmental conditions

Constraints (cont.) Organizational Policies: Promote-from-Within Policies give present employees the first opportunities Compensation Policies remain within stated market pay ranges Employment Status Policies restrict the hiring of part-time, temporary, and contract employees International Hiring Policies require foreign job openings to be staffed with local citizens. Reduce relocation expense.

Constraints (cont.) Human resource plan: plan helps recruiters to summarize future recruiting needs Diversity management program: employers cannot discriminate against people with physical disabilities unless it prevents the person from doing the job

Constraints (cont.) Recruiter habits: relying on methods/systems that led to past recruitment success

Constraints (cont.) Environmental conditions: changes in labour market such as unemployment rate, pace of the economy, shortage in specific skills, labour law, etc. Job requirement: highly specialized workers are more difficult to find than unskilled one. Greater experienced people usually ask for higher salaries. “Find the best” is not always reasonable for recruiters. Costs: recruiters must operate within budgets Inducements: flextime, a free trip, fitness centre subsidies, etc. simulates a potential recruit’s interest.

Recruitment Methods Recruitment Methods Walk-ins & Write-ins Professional associations Employee referrals Educational institutions Advertising Professional search firms (for a fee) Private Employment Agencies (free)

Recruitment Methods (cont’d) Labour organizations Recruitment Methods Non-traditional Armed Forces Internet Temporary- help agencies Job fairs Departing employees Open house

Non-Traditional Recruitment Methods Applicant Tracking Systems Contract/Contingent/Leased Workers Alumni Associations Partnerships with Social Agencies Direct Mail Solicitations Recruitment Abroad

Memberships, Awards & Hobbies Job Application Forms Name & Address Military Background Employment Status Memberships, Awards & Hobbies Education & Skills References Work History Signature Line

Evaluating Recruitment The effectiveness of the recruiting function should be continuously evaluated Popular measures include: Cost per Hire Quality of Hires and Cost Offers: Applicants Ratio Time Lapsed per Hire

5 . C H A P T E R F I V E Recruitment