Planning and Recruitment Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition Chapter Four Human Resources Planning and Recruitment 4 © 2007 Pearson Education Canada 4-1

The Strategic Role of Human Resources Planning HR Planning review human resources requirements to ensure: the necessary number of employees the necessary employee skills to meet organizational goals

The Strategic Role of Human Resources Planning Importance of HR Planning -plan staffing and development activities achieve economies in hiring anticipate and avoid staff shortages/surpluses establish employment equity goals/timetables

The Strategic Role of Human Resources Planning HR Planning Strategic Planning reciprocal and interdependent relationship environmental scanning critical for both

The HR Planning Process 3. Balance Supply and Demand 2. Forecast Future Internal/External Candidates (Supply) 1. Forecast Future HR Needs (Demand)

Forecasting Future HR Demand Forecasting based on: quality and nature of employees decisions regarding product quality plans for technological change financial resources

Forecasting Future HR Demand Quantitative Approaches Trend analysis: review past employment levels Ratio analysis: ratio of business activity/employees Scatter plot: graph of business activity/employees (regression or forecasting software can enhance the scatter plot)

Forecasting Future HR Demand Qualitative Approaches 1. Nominal Group Technique experts meet face-to-face group discussion facilitates exchange of ideas possible subjectivity, group pressure 2. Delphi Technique experts work independently wide range of views difficult to integrate diverse opinions

Forecasting Future HR Supply (Internal Candidates) Skills Inventories manual or computerized records used to identify internal candidates for transfer or promotion summary of each employee’s: education experience interests skills

Forecasting Future HR Supply Replacement Charts visual representations of likely internal replacement employees for each position data on each candidate includes: age present performance rating promotability status

Forecasting Future HR Supply Succession Planning plans to fill key executive positions maintains a supply of successors for current and future jobs balances organization's needs for top managers with the potential and aspiration of internal candidates support individual career development

Forecasting Future HR Supply (External Candidates) general economic conditions national labour market conditions local labour market conditions occupational market conditions

Balancing Supply and Demand Dealing with a Labour Surplus hiring freeze attrition buy-out and early retirement programs reducing hours (job sharing, reduced workweek, part-time work, work sharing) layoffs termination with outplacement assistance

Balancing Supply and Demand Dealing with a Labour Shortage overtime hiring temporary employees subcontracting work external recruitment transfers promotions

Recruitment process of managing a labour shortage by searching for job candidates: adequate number qualified from whom to select staff needed to meet job requirements

Purposes of Recruitment generate adequate pool of candidates at minimum cost increase success rate of selection process achieve employment equity goals attract qualified candidates suited to organizational culture

The Recruitment Process Generate pool of qualified candidates Select methods of recruitment Specify job requirements Identifying job openings

Constraints on the Recruitment Process organizational policies and plans job specifications inducements of competitors environmental factors

Recruiting Within the Organization Advantages enhanced morale if competence is rewarded more commitment to company goals longer-term perspective on business decisions more accurate assessment of candidate’s skills less orientation required

Recruiting Within the Organization Disadvantages discontent of unsuccessful candidates time consuming to post and interview all candidates if one is already preferred employee dissatisfaction with insider as new boss possibility of “inbreeding”

Recruiting Within the Organization Requirements Job Posting Human Resources Records Skills Inventories

Recruiting Outside the Organization Advantages larger, more diverse pool of qualified candidates acquisition of new skills and knowledge for creative problem solving elimination of rivalry for transfers/promotions cost savings from hiring skilled individuals with no need for training

Recruiting Outside the Organization Yield Pyramid 50 New hires Offers made (2:1) Candidates interviewed (3:2) Candidates invited (4:3) Leads generated (6:1) 100 150 200 1200

Recruiting Outside the Organization Methods online recruiting print advertising private employment agencies executive search firms educational institutions other (walk-ins, employee referrals, HRDC etc)

Recruiting Outside the Organization Non-Permanent Staff temporary help agencies contract workers employee leasing outsourcing/subcontracting

Recruiting Outside the Organization Online Recruiting Three approaches: Internet job boards 2. Company Website and intranet 3. Application Service Provider software rental

Recruiting Outside the Organization Advertising media to be used depends on: type of position type of candidate construction of the ad: AIDA (attention; interest; desire; action) want ads vs. blind ads

Recruiting Outside the Organization Use of Private Employment Agency no HR department past difficulty in generating pool of qualified candidates position must be filled quickly desire to recruit designated group members

Recruiting Outside the Organization Executive Search Firms often specialize in particular type of talent adept at approaching employed candidates not currently looking for a job confidentiality

Recruiting a More Diverse Workforce older workers younger workers designated group members: women visible minorities disabled Aboriginal