PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. M ANAGING H UMAN R ESOURCES Recruiting and Retaining Qualified Employees Chapter 6

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–26–2 The Strategic Importance of Recruiting and Retaining Talented Employees Recruiting  Searching for and obtaining qualified job candidates to consider when filling job openings. Retention  Everything an employer does to encourage qualified and productive employees to continue working for the organization. Ideally, both management and applicant needs are satisfied in the selection process.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–36–3 How Strategic Business Objectives Create HR Implications for Recruitment and Retention EX 6.1 STRATEGIC OBJECTIVE: Increase Market Share by Offering Lowest-Cost Service IMPLICATIONS FOR RECRUITMENT AND RETENTION OBJECTIVES Important to retain current talent as company grows. Need to predict rate of growth and translate changes in market share to increases needed in size of workforce. Continuously improve efficiency of recruitment practices needed to keep costs down. Low-cost strategy puts pressure on compensation and benefits costs, so need to be creative in finding low-cost ways to attract and retain talent.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–46–4 How Strategic Business Objectives Create HR Implications for Recruitment and Retention EX 6.1 ( cont’d) STRATEGIC OBJECTIVE: Increase Return on Investment by Offering Innovative Products and Maintaining High Margins IMPLICATIONS FOR RECRUITMENT AND RETENTION OBJECTIVES Recruiting practices need to focus on attracting highly qualified applicants at the cutting edge of their fields. Best talent not likely to be looking for jobs, so need to go to them (not wait for them to come to us). Excellent retention strategy for top talent needed, as workforce will be an attractive pool that other companies will try to raid. Knowledge retention is key strategic concern, also.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–56–5 How Strategic Business Objectives Create HR Implications for Recruitment and Retention EX 6.1 ( cont’d) STRATEGIC OBJECTIVE: Respond to Declining Industry Trends by Diversifying into New Businesses IMPLICATIONS FOR RECRUITMENT AND RETENTION OBJECTIVES May need to develop and implement layoff plans, creating the challenge of how to attract new talent and retain best talent at the same time. Recruiting efforts for new business areas should include plan for lateral transfers from declining business areas, to minimize need for layoffs. For new businesses, HR will need to develop strategies for recruiting key talent in those industries.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–66–6 Strategic Recruitment Issues Reducing Expenses and Improving Productivity  Controlling costs while ensuring that the organization can grow, diversify, expand internationally  Recruiting technical workers and senior management  Legal compliance and affirmative action  Involving employees in recruitment

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–76–7 The Value of Retaining the Best Employees The Costs of Turnover  Expenses to recruit, hire, and train employees  Lost productivity: Errors made by inexperienced employees Paperwork mistakes Damaged products Projects or contracts lost Lower morale among remaining employees Lost knowledge and business contacts Addressing Societal Concerns through Legal Compliance

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–86–8 Roles and Responsibilities for Recruiting and Retaining Employees Line Managers With HR, develop objectives, plans Understand HR linkages Disseminate info to internal candidates Know labor market trends Abide by laws Facilitate retention Line Managers With HR, develop objectives, plans Understand HR linkages Disseminate info to internal candidates Know labor market trends Abide by laws Facilitate retention HR Professionals Develop objectives, plans Design recruitment and retention activities Evaluate recruitment outcomes Provide training in recruitment Use exit interviews, surveys HR Professionals Develop objectives, plans Design recruitment and retention activities Evaluate recruitment outcomes Provide training in recruitment Use exit interviews, surveysEmployees Openly discuss objectivesOpenly discuss objectives Consider all aspects of HR in career decisionsConsider all aspects of HR in career decisions Participate in recruitment effortsParticipate in recruitment efforts Assist in diversity effortsAssist in diversity efforts Seek info on company openingsSeek info on company openingsEmployees Openly discuss objectivesOpenly discuss objectives Consider all aspects of HR in career decisionsConsider all aspects of HR in career decisions Participate in recruitment effortsParticipate in recruitment efforts Assist in diversity effortsAssist in diversity efforts Seek info on company openingsSeek info on company openings

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–96–9 Recruiting and Retaining Employees Within an Integrated HRM System Research shows no clear differences in employment experiences of employees recruited from different sources.  Advantages of Using Multiple Sources Increases diversity Generates a larger pool of applicants Links to Other HR Activities  Recruiting activities may affect other parts of the system, and other parts of the system may affect recruiting activities.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–10 Recruiting and Retaining Employees Within an Integrated HRM System External Environment  Labor markets  Technology  Legal trends  Company reputation

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–11 Recruitment and Retention within an Integrated HRM System EX 6.3

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–12 Internal Labor Market Job Postings Talentinventories Promotions Transfers Recruitment Methods and Sources

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–13 Internal Recruitment Pros  Reduces labor costs  Valued by employees  Enhances reputation as employer Cons  Limits applicant pool  May cause infighting  Inbreeding

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–14 External Labor Market Walk-in applicants Electronic and Other Media Employee referrals Employment agencies and search firms Internet School placement services Trade associations Foreign nationals Acquisitions/ Mergers Recruitment Methods and Sources

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–15 Causes of Voluntary Employee Turnover EX 6.8

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–16 Contingent Workers Hired with no implicit or explicit contract for long- term employment, Hired to cope with unexpected or temporary challenges Include  “Free agents”  Independent contractors  Temporary workers Limited to 3-12 month assignments Recruited using internet or temporary agencies

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–17 Contingent Employment Pros  Employees have flexibility  Workers can preview jobs and organizations  Easier to give regular employees temporary leaves Cons  Contingent workers may have less commitment  Conflict common between regular and temporary workers

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–18 Giving Applicants the Information They Need Most job seekers make trade-offs between different job and organizational attributes  They adopt a compensatory approach. Most job seekers are looking for “acceptable,” rather than “ideal” job.  Location, job, company, and a match with the organization’s values are all important to the applicant.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–19 Giving Applicants the Information They Need Realistic Job Previews  Describe positive and negative aspects  Increases number of recruits and commitment  Help individuals self-select Give More Information Using  Ads  Job descriptions  Film/video  Work samples

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–20 Affirmative Action (AA) Programs AA programs ensure proportional representation of qualified members of protected groups in the relevant labor market Protected groups:  Women  African Americans  Hispanics  Native Americans  Asian Americans  Pacific Islander Americans

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–21 Affirmative Action Programs (cont’d) Reasons for AA Programs  As part of consent decree to eliminate the effects of past discrimination  As required for Federal contractors  On a voluntary basis Effective, Legal AA Programs  Employers work to eliminate future bias by Having an EEO policy Analyzing their workforce Working to eliminate underutilization of protected classes

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–22 Affirmative Action (cont’d) Executive Order Requires:  AA plans for contractors with federal contracts greater than $50,000 and having 50 or more employees.  Written AA plans to be filed with Office of Federal Contract Compliance Programs (OFCCP). AA Plan Components  A utilization analysis of current employees  An availability analysis of the relevant labor market  Goals and timetables for achieving diversity

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–23 Benefits and Risks of AA Plans Benefits  Positive perceptions among employees and applicants when companies make voluntary proactive efforts  Enhanced diversity of applicant pool  Avoidance of lawsuits  Positive reactions by investors Risks  Reverse discrimination charges  AA hires may be perceived as less competent  “Protected group” classification polarizes gender and ethnic groups

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 6–24 Breaking the Glass Ceiling Internal processes that may influence women:  Word of mouth  Employee referrals  Executive search firms unaware of EEO objectives  Job postings that rely on informal networks Recruiting venues that create discomfort (e.g., hotel rooms)