Personnel Planning and Recruiting 5 Personnel Planning and Recruiting This chapter explains the process of forecasting personnel requirements, discusses the pros and cons of methods used for recruiting job candidates, describes how to develop an application form, and explains how to use application forms to predict job performance. The Internet has changed the face of recruiting, particularly in advertising for applicants. Employers can now reach more potential applicants in less time and at less expense. However, this tool has generated some challenges. Employers may get too many applicants, or fail to reach certain segments of the population. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives List the steps in the recruitment and selection process. Explain the main techniques used in employment planning and forecasting. Explain and give examples for the need for effective recruiting. By the end of this chapter, you will be able to: List the steps in the recruitment and selection process. Explain the main techniques used in employment planning and forecasting. Explain and give examples for the need for effective recruiting. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives Name and describe the main internal sources of candidates. List and discuss the main outside sources of candidates. Develop a job advertisement. Also, you will be able to: Name and describe the main internal sources of candidates. List and discuss the main outside sources of candidates. Develop a help wanted ad. Explain how to recruit a more diverse workforce. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

select employees for them. Job analysis identifies the duties and human requirements for each of the company’s jobs. The next step is to decide which of these jobs you need to fill, and to recruit and select employees for them.

Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Figure 5–1

The Five Steps Decide what positions to fill, through workforce/personnel planning and forecasting. Build a pool of candidates for these jobs, by recruiting internal or external candidates. Have candidates complete application forms and perhaps undergo initial screening interviews. Use selection tools like tests, background investigations, and physical exams to identify viable candidates. Decide who to make an offer to, by having the supervisor and perhaps others interview the candidates.

Review Positions Candidates Screening Selection Offers It is important for hiring purposes that organizations have a systematic plan for recruiting and hiring. We discussed the need to review the opportunities and potential opportunities and determine the pool of candidates available. Using appropriate information such as that provided by a job application is helpful. Once the initial screening is completed, selecting the right candidate and making an offer is critical to ensure you get the person you want. As a final note, it is a good idea to wait until your offer has been formally accepted by your top candidate before notifying other candidates you have selected someone else. If your top candidate has been selected by another firm, you still have an option to go to your second-ranked candidate. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Planning and Forecasting Employment or personnel planning The process of deciding what positions the firm will have to fill, and how to fill them. Succession planning The process of deciding how to fill the company’s most important executive jobs. What to forecast? Overall personnel needs The supply of inside candidates The supply of outside candidates

Linking Employer’s Strategy to Plans Figure 5–2

Workforce (or employment or personnel) planning is the process of deciding what positions the firm will have to fill, and how to fill them. We’ll discuss some of the principle techniques used in planning and forecasting.

Workforce Planning and Forecasting Strategy and workforce planning Like all plans, personnel plans require some forecasts or estimates. In this case, the forecasts involve: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. The basic workforce planning process is to forecast the employer’s demand for labor and supply of labor. Next, identify supply-demand gaps and develop action plans to fill the projected gaps. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Forecasting Personnel Needs Forecasting personnel needs (labor demand) Trend analysis Ratio analysis The scatter plot Markov analysis Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Forecasting Personnel Needs Trend analysis The study of a firm’s past employment needs over a period of years to predict future needs. Ratio analysis A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed. Assumes that the relationship between the causal factor and staffing needs is constant.

The Scatter Plot Scatter plot A graphical method used to help identify the relationship between two variables. Size of Hospital Number of (Number of Beds) Registered Nurses 200 240 300 260 400 470 500 500 600 620 700 660 800 820 900 860

Determining the Relationship Between Hospital Size and Number of Nurses

Using Computers to Forecast Personnel Requirements Computerized forecasts The use software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output. Generates figures on average staff levels required to meet product demands, as well as forecasts for direct labor, indirect staff, and exempt staff. Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections—minimum, maximum, and probable.

Forecasting the Supply of Inside Candidates Manual systems and replacement charts Computerized skills inventories Manual systems are used primarily for smaller employers. For example, a personnel inventory and development record form compiles qualifications information on each employee. It will show the present performance and promotability for each position’s potential replacement. Larger firms obviously can’t track the qualifications of hundreds or thousands of employees manually. Larger employers therefore computerize this information. One software system is Survey Analytics’ Skills Inventory Software. As far as keeping information secure the employer should secure all its employee data. Much of the data are personal (such as Social Security numbers and illnesses). Legislation gives employees legal rights regarding who has access to information about them. The legislation includes the Federal Privacy Act of 1974 (for federal workers), the New York Personal Privacy Act of 1985, HIPAA (regulates use of medical records), and the Americans with Disabilities Act. Employers should keep their manual records under lock and key. Computerized records have been known to be compromised by hackers so high levels of system encryption, hashing or other tight security measures are critical. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Forecasting the Supply of Inside Candidates Qualifications inventories Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion.

Manual Systems and Replacement Charts Personnel replacement charts Company records showing present performance and promotability of inside candidates for the most important positions. Position replacement card A card prepared for each position in a company to show possible replacement candidates and their qualifications.

Computerized Information Systems Human Resource Information System (HRIS) Computerized inventory of information that can be accessed to determine employees’ background, experience, and skills that may include: Work experience codes Product or service knowledge Industry experience Formal education

Forecasting the Supply of Outside Candidates Talent management Action planning for labor supply and demand The recruiting yield pyramid A talent management philosophy requires paying continuous attention to workforce planning issues. Managers call this newer, continuous workforce planning approach predictive workforce monitoring. Workforce planning should logically culminate in a workforce action plan. This lays out the employer’s projected workforce demand–supply gaps, as well as staffing plans for filling the necessary positions. The recruiting yield pyramid is based on experience and solid record-keeping. In our example, if a company needs 50 entry-level accountants, using the pyramid, it will need to generate approximately 1,200 leads to fill the new-hire requirement. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Forecasting the Supply of Outside Candidates Factors impacting the supply of outside candidates General economic conditions Expected unemployment rate Sources of information Periodic forecasts in business publications Online economic projections

The Need for Effective Recruiting Why recruiting is important? What makes recruiting a challenge? Organizing how you recruit The supervisor’s role Effective recruiting allows a company to fill open positions while their competitors may have missed solid opportunities. If, for example, you fill open positions 50% faster than industry average, you are more likely to get better talent onboard more quickly. Effective recruiting is a challenge for several reasons. First, some recruiting methods are superior to others. Second, the success you have recruiting depends on non-recruitment issues and policies. Third, employment law prescribes what you can and cannot do when recruiting. For many firms, it’s simply much easier to recruit centrally now that so much recruiting is on the Internet. Face-to-face interviewing is the usual culmination of the preliminary recruiting done through the internet. With respect to the role of the supervisor in recruiting, the HR manager charged with filling an open position is seldom very familiar with the job itself. Someone has to tell this person what the position really entails, and what key things to look or watch out for. Only the position’s supervisor can do this.

Effective Recruiting External factors affecting recruiting: Looming undersupply of workers Lessening of the trend in outsourcing of jobs Increasingly fewer “qualified” candidates Internal factors affecting recruiting: The consistency of the firm’s recruitment efforts with its strategic goals The available resources, types of jobs to be recruited and choice of recruiting methods Nonrecruitment HR issues and policies Line and staff coordination and cooperation

Effective Recruiting (cont’d) Advantages of centralizing recruitment Strengthens employment brand Ease in applying strategic principles Reduces duplication of HR activites Reduces the cost of new HR technologies Builds teams of HR experts Provides for better measurement of HR performance Allows for the sharing of applicant pools

Measuring Recruiting Effectiveness What to measure and how to measure How many qualified applicants were attracted from each recruitment source? Assessing both the quantity and the quality of the applicants produced by a source. High performance recruiting Applying best-practices management techniques to recruiting. Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals.

Recruiting Yield Pyramid The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted.

Internal Sources of Candidates: Hiring from Within Advantages Foreknowledge of candidates’ strengths and weaknesses More accurate view of candidate’s skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required Disadvantages Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding of the status quo

Internal Sources of Candidates Using internal sources Finding internal candidates Rehiring Succession planning Identify key needs Develop inside candidates Assess and choose Some advantages of internal recruiting include the following: Current employees may be more committed Morale may go up since other employees will know about your policy Current employees may require less orientation and training than new hires. The disadvantages, however, include: employees may become discontented if they apply for jobs and do not get them. There also is a potential for inbreeding – maintaining the status quo – to occur. To be effective, promotion from within requires using job analysis and posting, using personnel records, and maintaining current skill banks. Rehiring former employees has its pros and cons also. On the positive side, they are known quantities and are already familiar with the organization. But former employees may return with negative attitudes. Current employees may perceive that the way to get ahead is to leave and come back. This is often the case if the rehires return at higher levels or salaries. Succession planning ensures a suitable supply of successors for senior or key jobs. It can include the following activities: Determining the projected need for managers and professionals Auditing current executive talent Planning individual career paths Offering career counseling Planning for accelerated promotions Providing performance-related training and development Planning strategic recruitment Actually filling the positions.   Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Finding Internal Candidates Job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages: They are known quantities. They know the firm and its culture. Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.

Finding Internal Candidates (cont’d) Succession planning The process of ensuring a suitable supply of successors for current and future senior or key jobs. Succession planning steps: Identifying and analyzing key jobs. Creating and assessing candidates. Selecting those who will fill the key positions.

List and discuss the main outside sources of candidates. Firms can’t always get all the employees they need from their current staff, and sometimes they just don’t want to. We’ll look at the sources firms use to find outside candidates next.

Outside Candidates Internet recruiting Advertising – media Online recruiting Texting Dot-jobs Virtual job fairs Tracking Effectiveness Advertising – media For most employers and for most jobs, Internet-based recruiting is by far the recruiting source of choice. Most employers find that the Internet is their best choice for recruitment efforts. Social networking also provides recruiting assistance, especially for mid-level and higher management positions. Advantages – The Web is cost efficient, generating more responses more quickly and providing exposure for a longer time at less cost. Disadvantages – Gathering applications online may exclude more mature applicants and certain minorities. There are also other web recruiting practices that include networking sites, texting, an organization’s personal recruiting website, and virtual job fairs. These can generate more responses more quickly and for less cost. However, they have their disadvantages, such as less diversity of applicants. One survey of 256 alumni from graduate business schools showed why many firms’ Web-based recruiting turned them off. The objections included: Lack of relevant information Using mandatory formatting for resumes Privacy issues Poor graphics and difficulty in using the site Slow feedback from employers Advertising – While the internet is used a great deal, there are still reasons for using print-based ads. The best medium (internet, newspaper, etc.) should be selected based on the positions for which you are recruiting. For example, if you are seeking a highly specialized researcher, then advertising in the appropriate professional journal is your best bet. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Outside Sources of Candidates Advertising The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Marketing programs Constructing an effective ad Wording related to job interest factors should evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.

Outside Sources of Candidates (cont’d) Types of employment agencies: Public agencies operated by federal, state, or local governments Agencies associated with nonprofit organizations Privately owned agencies

Outside Sources of Candidates (cont’d) Reasons for using a private employment agency: When a firm doesn’t have an HR department and is not geared to doing recruiting and screening. The firm has found it difficult in the past to generate a pool of qualified applicants. The firm must fill a particular opening quickly. There is a perceived need to attract a greater number of minority or female applicants. The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies. The firm wants to cut down on the time it’s devoting to recruiting.

Outside Sources of Candidates (cont’d) Executive recruiters (headhunters) Special employment agencies retained by employers to seek out top-management talent for their clients. Contingent-based recruiters collect a fee for their services when a successful hire is completed. Retained executive searchers are paid regardless of the outcome of the recruitment process. Internet technology and specialization trends are changing how candidates are attracted and how searches are conducted.

Outside Sources of Candidates (cont’d) College recruiting Recruiting goals To determine if the candidate is worthy of further consideration To attract good candidates On-site visits Invitation letters Assigned hosts Information package Planned interviews Timely employment offer Follow-up Internships

Outside Sources of Candidates (cont’d) Employee referrals Applicants who are referred to the organization by current employees Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce

Outside Sources of Candidates (cont’d) Recruiting via the Internet More firms and applicants are utilizing the Internet in the job search process. Advantages of Internet recruiting Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation

Writing the Ad Attention Interest Desire Action Why does this ad attract attention? The phrase “next key player” certainly helps. Next, develop interest in the job. In our ad, asking if you want to make an impact probably creates interest. Create desire by spotlighting words such as travel or challenge. Finally, the ad should prompt action with a statement like “call today.” In the ad, writing a cover letter addressing the question, “Beyond the beans, what is the role of a plant controller?” is a challenging requirement for simply applying for the job. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Ineffective and Effective Web Ads Figure 5–10

Developing and Using Application Forms The form that provides information on education, prior work record, and skills. Uses of information from applications Judgments about the applicant’s educational and experience qualifications Conclusions about the applicant’s previous progress and growth Indications of the applicant’s employment stability Predictions about which candidate is likely to succeed on the job

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A resume gets you an interview Find out which applicants are suitable Choose a small number of candidates to interview

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Writing a Resume (CV) Skills and Competencies Software Programs and Programming Languages (MS Office, Visual Basic, Matlab, Java etc.) Foreign Language Interests Seminars/Certificates References Personal Information Contact Information Address Phone number E-Mail Address) Educational Background University High School Faculty / Dept., Graduation date) Achivements and Awards Scholarship, Awards, Prizes Work Experience

Writing a Resume (CV) No Pictures Like That!!!

Right Information…