© 2008 by Prentice Hall5-1 Human Resource Management 10 th Edition Chapter 5 RECRUITMENT

© 2008 by Prentice Hall5-2 Hiring Temporary Executives Organizations view hiring of new executive as two parts Begins search process for executive in traditional way Executive is hired to cover position during time company is looking for new CEO May become a try-before-you-buy exercise

© 2008 by Prentice Hall5-3 Recruitment Process of attracting individuals on a timely basis, in sufficient numbers, with appropriate qualifications, and encouraging them to apply for jobs with an organization

© 2008 by Prentice Hall5-4 Alternatives to Recruitment Outsourcing Contingent Workers Professional Employer Organizations (Employee Leasing) Overtime

© 2008 by Prentice Hall5-5 Outsourcing Transfers responsibility to an external provider Provides greater efficiency and effectiveness

© 2008 by Prentice Hall5-6 Contingent Workers Part-timers, temporaries, and independent contractors Human equivalents of just-in- time inventory Total cost of a permanent employee is about % above gross pay “Disposable American workforce”

© 2008 by Prentice Hall5-7 Bureau of Labor Statistics Definition Two groups: 1.Independent contractors and on-call workers, who work only when needed - consisted of 14.8 million workers, or 10.7% of workforce 2.Temporary or short-term workers, which BLS calls contingent - totaled 5.7 million or 4.1% of workforce

© 2008 by Prentice Hall5-8 Professional Employer Organizations - Employee Leasing Company that leases employees to other businesses When decision is made to use PEO, company releases its employees who are then hired by PEO With PEO, leasing company is employees’ legal employer

© 2008 by Prentice Hall5-9 Overtime Most commonly used method of meeting short-term fluctuations in work volume Employer avoids recruitment, selection, and training costs Employees gain from increased income Potential problems

© 2008 by Prentice Hall5-10 External Environment of Recruitment Labor Market Conditions Legal Considerations Corporate Image

© 2008 by Prentice Hall5-11 Labor Market Conditions Demand for and supply of specific skills Labor market for many professional and technical positions is truly global

© 2008 by Prentice Hall5-12 Legal Considerations Candidate and employer first make contact during recruitment process Essential for organizations to emphasize nondiscriminatory practices at this stage Labor Department has issued guidelines concerning online recruiting policies of federal contractors and subcontractors

© 2008 by Prentice Hall5-13 Labor Department Guidelines Keep detailed records of each job search Identify what criteria was used Be able to explain why a person with protected status was not hired Companies with more than 100 employees keep staffing records for a minimum of two years

© 2008 by Prentice Hall5-14 Labor Department Guidelines (Cont,) Threshold coverage is 50 employees if dealing with OFCCP Enables compilation of demographic data, including age, race and gender, based on that applicant pool Employers must keep records of any and all expressions of interest through Internet, including online résumés and internal databases

© 2008 by Prentice Hall5-15 EEOC Criteria to Determine Whether an Individual Is an Internet Applicant Job seeker has expressed interest through Internet Employer considers job seeker for employment in particular open position Job seeker has indicated he or she meets position’s basic qualifications Applicant has not indicated no longer interested in position

© 2008 by Prentice Hall5-16 Promotion from Within (PFW) Policy of filling vacancies above entry-level positions with current employees Workers have incentive to strive for advancement Organization usually well aware of employees’ capabilities Good goal would be to fill 80% of openings above entry-level positions from within

© 2008 by Prentice Hall5-17 Employee Requisition Recruitment begins when a manager initiates employee requisition Document specifies job title, department, date employee is needed for work, and other details

© 2008 by Prentice Hall5-18 RECRUITMENT PROCESS External Environment Internal Environment Human Resource Planning Alternatives to Recruitment Employee Requisition Internal Sources Internal Methods External Sources External Methods Recruited Individuals

© 2008 by Prentice Hall5-19 Recruitment Sources and Methods Recruitment sources: Place where qualified individuals are found Recruitment methods: Means by which potential employees can be attracted to firm

© 2008 by Prentice Hall5-20 Internal Recruitment Methods Employee databases Job Posting Job Bidding Internet Intranet Company’s Online Newsletter

© 2008 by Prentice Hall5-21 Job Posting and Job Bidding Job Posting - Procedure to inform employees that job openings exists Job Bidding - Permit individuals in organization who believe they possess required qualifications to apply for posted job

© 2008 by Prentice Hall5-22 Employee Referrals Number one way people find a job Referrals better qualified and stay on job longer Recruit new hires through employee-referral incentive programs Employee enlistment - Unique form of employee referral where every employee becomes a company recruiter

© 2008 by Prentice Hall5-23 Trends & Innovations: Social Network Recruiting 60.7% of job seekers found new jobs through networking Technology databases searched for contact names, interests, former employers, colleges attended, and other information to identify network of acquaintances Software and web-based services enable users to leverage personal relationships for networking, hiring, employee referrals and references

© 2008 by Prentice Hall5-24 Why External Recruitment Is Needed Fill entry-level jobs Acquire skills not possessed by current employees Obtain employees with different backgrounds to provide diversity of ideas

© 2008 by Prentice Hall5-25 External Recruitment Sources High Schools and Vocational Schools Community Colleges Colleges and Universities Competitors in the Labor Market Former employees Unemployed Military Personnel Self-employed Workers

© 2008 by Prentice Hall5-26 High Schools and Vocational Schools Clerical and other entry- level employees Some companies work with schools Companies may loan employees to schools

© 2008 by Prentice Hall5-27 Community Colleges Sensitive to specific employment needs in local labor market Graduate highly sought-after students with marketable skills

© 2008 by Prentice Hall5-28 Colleges and Universities Professional, technical, and management employees Placement directors, faculty, and administrators

© 2008 by Prentice Hall5-29 Competitors in the Labor Market When recent experience is needed, competitors and other firms in same industry or geographic area are important sources Smaller firms look for employees trained by larger organizations

© 2008 by Prentice Hall5-30 Former Employees In past, punished with no-return policies Smart employers try to get their best ex- employees to come back.

© 2008 by Prentice Hall5-31 Unemployed Qualified applicants become unemployed every day Companies go out of business Cut back operations Merge with other firms Employees are fired

© 2008 by Prentice Hall5-32 Military Personnel Proven work history - Flexible, motivated, drug free Goal and team orientation

© 2008 by Prentice Hall5-33 Self-Employed Workers Technical Professional Administrative Entrepreneurial

© 2008 by Prentice Hall5-34 Online Recruitment Perhaps biggest change in way that organizations recruit Revolutionized way companies recruit employees and job seekers search and apply for jobs

© 2008 by Prentice Hall5-35 Internet Recruiter Also called cyber recruiter, is person whose primary responsibility is to use Internet in recruitment process Most companies currently post jobs on their organization’s website More a company recruits on Internet, the greater the need for Internet recruiters High-tech firms have greatest needs

© 2008 by Prentice Hall5-36 Virtual Job Fair Online recruiting method engaged in by single employer or group of employers to attract large number of applicants A wider range of students than might attend a live fair

© 2008 by Prentice Hall5-37 Corporate Career Website Job sites accessible from company homepage that lists company positions available, providing way for applicants to apply for specific jobs Major resource for both job seekers and companies seeking new employees Many firms have established career portals on their corporate website

© 2008 by Prentice Hall5-38 weblogs (blogs for short) Google or a blog search engine such as Technorati.com can be used Type in a key phrase like marketing jobs Google launched blogsearch.google.com Stealthy background checks

© 2008 by Prentice Hall5-39 General Employment websites Monster.com - Largest employment website HotJobs.com CareerBuilder.com

© 2008 by Prentice Hall5-40 NACElink National, web-based system for recruiting college students for all types of employment, such as full-time, part-time, internship, co-op, work-study, and alumni 543 schools using NACElink system Three components: job-posting, résumé database, and interview scheduling

© 2008 by Prentice Hall5-41 Niche Sites Websites that cater to a specific profession A site for virtually everyone

© 2008 by Prentice Hall5-42 Contract Workers’ Sites Sites are available to assist this segment of workforce Let workers advertise their skills, set their price, and pick an employer Freelance.com AllFreelanceWork.com Guru.com

© 2008 by Prentice Hall5-43 Hourly Workers’ Job Sites Attracting blue-collar and service workers Most hourly workers pursue jobs by filling out applications Sites allow job-seekers to build application that can be viewed by employers Some job boards have bilingual call center

© 2008 by Prentice Hall5-44 Traditional External Recruitment Methods Media Advertising Employment Agencies - Private and Public Recruiters Job Fairs Executive Search Firms Internships Professional Associations Unsolicited Applicants Open Houses Event Recruiting Sign-on Bonuses High-tech Competitions

© 2008 by Prentice Hall5-45 Media Advertising Communicates firm’s employment needs through media such as radio, newspaper, television, and industry publications Previous experience with various media suggest the approach taken Recently, use of newspaper advertising has declined because of online recruiting

© 2008 by Prentice Hall5-46 Employment Agencies – Public and Private Organization that helps recruit employees and at same time aids individuals in attempts to locate jobs Private agencies (often called head-hunters) – Best known for recruiting white-collar employees Public agencies – Operated by each state, receive policy direction from U.S. Employment Service. America’s Job Bank is a partnership between the U.S. Department of Labor and the state-operated Public Employment Service (

© 2008 by Prentice Hall5-47 Recruiters Used with technical, vocational, community colleges, colleges and universities

© 2008 by Prentice Hall5-48 Job Fairs Recruiting method engaged in by single employer or group of employers to attract large number of applicants to one location for interviews Opportunity to meet a large number of candidates in a short time

© 2008 by Prentice Hall5-49 Internships Places student in a temporary job No obligation to hire student permanently or for student to accept permanent position Typically temporary job for summer or part-time job during school year Students bridge gap from theory to practice

© 2008 by Prentice Hall5-50 Executive Search Firms Locate experienced professionals and executives Need specific types of individuals Contingency search firms - Receive fees only upon successful placement Retained search firms - Serve as consultants to clients on exclusive contract basis

© 2008 by Prentice Hall5-51 Professional Organizations Recruitment and placement services for members in many professions such as finance, marketing, information technology Society for Human Resource Management operates job referral service

© 2008 by Prentice Hall5-52 Unsolicited Applicants Reputation of being good place to work attracts qualified prospects without extensive recruitment Well-qualified workers seek specific company

© 2008 by Prentice Hall5-53 Open Houses Pair potential hires and managers in warm, casual environment that encourages on-the-spot job offers Cheaper and faster than agencies May attract more unqualified candidates

© 2008 by Prentice Hall5-54 Event Recruiting Opportunity to create image of company Go to events that people you are seeking attend

© 2008 by Prentice Hall5-55 Sign-On Bonuses Used where severe shortages of highly skilled workers exist Amounts vary dramatically

© 2008 by Prentice Hall5-56 High Tech Competition Unique way to get individuals interested in applying for technical positions Try to identify the cream of the crop

© 2008 by Prentice Hall5-57 Applicant Tracking System Software application to help recruit employees more efficiently Enables HR and line managers to oversee entire process, from screening résumés, spotting qualified candidates, conducting personality/skills tests and handling background checks

© 2008 by Prentice Hall5-58 Tailoring Recruitment Methods to Sources Tailored to need each firm’s needs Recruitment sources and methods vary according to position being filled

© 2008 by Prentice Hall5-59 Methods and Sources of Recruitment for an Information Technology Manager Self-Employed Unemployed Competitors in the labor market College and universities Community colleges Military personnel High/vocational schools Online recruiting Media advertising Employment agencies Recruiters Job Fairs Internships Executive search firms Professional associations Unsolicited applicants Open houses Event recruiting Sign-on bonuses High Tech Competition XXX External Sources External Methods Former employees XX

© 2008 by Prentice Hall5-60 Recruitment for Diversity Analysis of recruitment procedures Record of applicant flow Utilization of minorities, women, and individuals with disabilities Advertising Employment agencies People with disabilities Other suggested approaches

© 2008 by Prentice Hall5-61 A Global Perspective: China: Running Out of People? China has vast pool of unskilled labor Now complain that they cannot recruit enough cheap factory and manual workers and market is even tighter for skilled labor China’s history has left it with some peculiar problems

© 2008 by Prentice Hall5-62