© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Expanding the Talent Pool: Recruitment and Careers 1–1 The Challenges of Human Resources Management

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 35 Chapter Objectives Chapter Objectives After studying this chapter, you should be able to Describe how a firm’s strategy affects its recruiting efforts. Outline the methods by which firms recruit internally. Outline the methods by which firms recruit externally. Explain the techniques organizations can use to improve their recruiting efforts. Explain how career management programs integrate the needs of individual employees and their organizations. Explain why diverse recruitment and career development activities are important to companies. LEARNING OUTCOME 1 LEARNING OUTCOME 2 LEARNING OUTCOME 3 LEARNING OUTCOME 4 LEARNING OUTCOME 5 LEARNING OUTCOME 6

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 35 Strategic Aspects of Recruiting Decisions about talent —Decisions about talent — regardless of whether they pertain to recruiting, transferring, promoting, developing, or deploying people—need to be considered within the context of a business’s strategies and priorities. The broad factors that can affect a firm’s recruiting strategy include a firm’sThe broad factors that can affect a firm’s recruiting strategy include a firm’s  Recruiting abilities,  whether to recruit externally versus internally,  the labor market for the types of positions it is recruiting for, including global labor markets, and  the strength of a firm’s employment “brand.”

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 35 Who Should Do the Recruiting? HR recruiters or generalist (large firms)HR recruiters or generalist (large firms) Managers and/or Supervisors (smaller firms)Managers and/or Supervisors (smaller firms) Work Teams, orWork Teams, or Recruiting Process Outsourcing (RPO)Recruiting Process Outsourcing (RPO)  The practice of outsourcing an organization’s recruiting function to an outside firm.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 35 Global Labor Markets Why Recruit Globally?Why Recruit Globally?  To develop better products via a global workforce  To attract the best talent wherever it may be International Recruiting IssuesInternational Recruiting Issues  Local, national, and international laws  Different labor costs  Different pre-employment and compensation practices  Cultural differences  Security  Visas and work permits

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 35 Should a Firm Recruit Internally or Externally? Most managers try to follow a policy of filling job vacancies above the entry-level position through promotions and transfers. By filling vacancies in this way, an organization can capitalize on the investment it has made in recruiting, selecting, training, and developing its current employees, who might look for jobs elsewhere if they lack promotion opportunities.Most managers try to follow a policy of filling job vacancies above the entry-level position through promotions and transfers. By filling vacancies in this way, an organization can capitalize on the investment it has made in recruiting, selecting, training, and developing its current employees, who might look for jobs elsewhere if they lack promotion opportunities. There are Advantages and Disadvantages to both.There are Advantages and Disadvantages to both.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 35 Labor Markets Labor MarketLabor Market  Area from which applicants are to be recruited. – Tight market: high employment, few available workers – Loose market: low employment, many available workers Factors determining the relevant labor market:Factors determining the relevant labor market:  Skills and knowledge required for a job  Level of compensation offered for a job  Reluctance of job seekers to relocate  Ease of commuting to workplace  Location of job (urban or nonurban)

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 35 Recruiting Internally Internal Job PostingsInternal Job Postings Identifying Talent through Performance AppraisalsIdentifying Talent through Performance Appraisals Skills Inventories and Replacement ChartsSkills Inventories and Replacement Charts

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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 35 Warning Signs of a Weak Talent “Bench”

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 35 Recruiting Externally AdvertisementsAdvertisements Walk-Ins and Unsolicited Applications and RésumésWalk-Ins and Unsolicited Applications and Résumés The Internet, Social Networking, and Mobile RecruitingThe Internet, Social Networking, and Mobile Recruiting Job FairsJob Fairs Employee ReferralsEmployee Referrals Re-recruitingRe-recruiting Executive Search FirmsExecutive Search Firms Educational InstitutionsEducational Institutions

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 35

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 35 Recruiting Externally (cont.) Professional AssociationsProfessional Associations Labor UnionsLabor Unions Public Employment AgenciesPublic Employment Agencies Private Employment and Temporary AgenciesPrivate Employment and Temporary Agencies Employee LeasingEmployee Leasing

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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 35 Recruiting Metrics Quality of Fill StatisticsQuality of Fill Statistics Quality of Hire = (PR + HP + HR) / NQuality of Hire = (PR + HP + HR) / N  PR = Average job performance rating of new hires  HP = % of new hires reaching acceptable productivity with acceptable time frame  HR = % of new hires retained after one year  N = number of indicators

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 35 Recruiting Metrics (cont.) Example:Example:  PR = Average 3.5 on a 5.0 scale = 70%  HP = Of 100 hires made one year ago, 75 are meeting acceptable productivity levels = 75%  HR 5 20% turnover = 80% HR  N = 3  Quality of Hire = ( ) / 3 = 75 The result is a quality level of 75 percent for new employees hired during the year.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 35 Recruiting Metrics (cont.) Time to FillTime to Fill  refers to the number of days from when a job opening is approved to the date the person ultimately chosen for the job is selected Yield RatiosYield Ratios  The percentage of applicants from a recruitment source that make it to the next stage selection process

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 35 Time-to-Fill Calculations

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 35 Cost of Recruitment (per employee hired)Cost of Recruitment (per employee hired) Costs of Recruitment SC= source cost AC= advertising costs, total monthly expenditure (example: $32,000) AF= agency fees, total for the month (example: $21,000) RB= referral bonuses, total paid (example: $2,600) NC= no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0) H= total hires (example: 119) Cost to hire one employee = $467.23

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 35 Career Management: Developing Talent over Time

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 35 Blending the Goals of Individual Employees with the Goals of the Organization

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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 35 Recognize Different Career Paths PromotionPromotion  A change of assignment to a job at a higher level in the organization TransferTransfer  Placement of an individual in another job for which the duties, responsibilities, status, and remuneration are approximately equal to those of the previous job Consider Dual Career Paths for EmployeesConsider Dual Career Paths for Employees Consider the Boundaryless CareerConsider the Boundaryless Career Help Employees Progress beyond Career PlateausHelp Employees Progress beyond Career Plateaus

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 35 Human Capital Profiles for Two Different Careers

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 35 Successful Career-Management Practices Placing clear expectations on employees.Placing clear expectations on employees. Giving employees the opportunity for transfer.Giving employees the opportunity for transfer. Providing a clear and thorough succession planProviding a clear and thorough succession plan Encouraging performance through rewards and recognition.Encouraging performance through rewards and recognition. Giving employees the time and resources they need to consider short- and long-term career goals.Giving employees the time and resources they need to consider short- and long-term career goals. Encouraging employees to continually assess their skills and career direction.Encouraging employees to continually assess their skills and career direction.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 35 Successful Career-Management Practices (cont.) Lack of time, budgets, and resources for employees to plan their careers and to undertake training and development.Lack of time, budgets, and resources for employees to plan their careers and to undertake training and development. Rigid job specifications, lack of leadership support for career management, and a short-term focus.Rigid job specifications, lack of leadership support for career management, and a short-term focus. Lack of career opportunities and pathways within the organization for employees.Lack of career opportunities and pathways within the organization for employees.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 35 Career Plateau Questions

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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 35 Mentoring Functions

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 35 Developing a Diverse Talent Pool Recruiting and Developing WomenRecruiting and Developing Women Eliminating Women’s Barriers to AdvancementEliminating Women’s Barriers to Advancement  Advancing Women to Management  Accommodating Families Recruiting and Developing MinoritiesRecruiting and Developing Minorities Providing Minority InternshipsProviding Minority Internships Advancing Minorities to ManagementAdvancing Minorities to Management

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 35 Other Important Talent Concerns Recruiting the DisabledRecruiting the Disabled Employing the Older WorkforceEmploying the Older Workforce Employing Dual Career CouplesEmploying Dual Career Couples

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 35 Key Terms applicant tracking system branding assessment center career counseling career networking career paths career plateau dual career partnerships employee leasing employee profile fast-track program global sourcing internal labor market job progressions mentors nepotism 9-box grid outplacement services passive job seekers promotion recruiting process outsourcing (RPO) realistic job preview (RJP) relocation services rerecruiting sabbatical transfer yield ratio

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 35 Chapter 5 - Learning Outcomes Learning Outcome StatementsRelated Outcomes from Body of the Text 1 Describe how a firm’s strategy affects its recruiting efforts. This section describes some of the major factors that can affect a firm’s recruiting. What other factors might play a role? Hint: Refer to Chapter 1. 2 Outline the methods by which firms recruit internally. Sometimes firms do not post internal openings for which anyone may apply. Instead, they select someone to promote. Why might a firm do this and what drawbacks could result? 3 Outline the methods by which firms recruit externally.If you were a small business owner, how would you go about attracting top external candidates to your firm? 4 Explain the techniques organizations can use to improve their recruiting efforts. If you’re employed, ask your boss what methods he or she has most successfully used to recruit employees. Compare your findings with your classmates. Does the recruiting source seem to depend upon the type of job? 5 Explain how career management programs integrate the needs of individual employees and their organizations. Why should both employees and their employers be concerned about career management programs? 6 Explain why diverse recruitment and career development activities are important to companies. How are the career challenges of minorities both similar to and different from those of women in your opinion?