5-1 McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. fundamentals of Human Resource Management 3 rd edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 5 Planning For and Recruiting Human Resources

5-2 Overview of the Human Resource Planning Process

5-3 Forecasting Personnel forecasting Complete trend analysis and exercise good judgment Determine supply and demand for various human resources Determine labor demand Considers various job categories Transitional matrix A chart that lists job categories held in one period & shows the proportion of employees in each of those job categories in a future period. Predict turnover

5-4 Planning Purpose is to set specific numerical goals to focus attention on the problem & provide a basis for measuring success in addressing shortages and surpluses Goals Should come directly from the analysis of supply and demand

5-5 Options for Reducing a Surplus Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining

5-6 As the average age of many workers in skilled trades grows, the coming demand for workers in many trades is expected to exceed supply in the United States. There is a potential for employers in some areas to experience a labor shortage because of this.

5-7 Options for Avoiding a Shortage Overtime Temporary employees Outsourcing Retrained transfers Turnover reductions New external hires Technological innovation

5-8 Test Your Knowledge A public accounting firm of 250 employees realizes they have a surplus of 15 support personnel (not auditors). What should they do? A.Hire temporary workers B.Offer early retirement C.Downsize people in those positions D.Wait for attrition and implement a hiring freeze for those positions

5-9 Applying HR Planning to Affirmative Action Workforce Utilization Review: a comparison of employees in protected groups with the proportion that each group represents in the relevant labor market. The steps in a workforce utilization review are identical to the steps in the HR planning process. The organization must assess current utilization patterns, then forecast how they are likely to change in the near future. If the analyses forecast underutilization of certain groups, then goals and a plan will be established.

5-10 Recruiting Human Resources The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.

5-11 Personnel Policies Internal versus external recruiting Lead-the-market pay strategies Employment-at-will policies Image advertising Several personnel policies are especially relevant to recruitment:

5-12 Image advertising, such as in this campaign to recruit nurses, promotes a whole profession or organization as opposed to a specific job opening. This ad is designed to create a positive impression of the profession, which is now facing a shortage of workers.

5-13 Recruitment Sources: Internal Sources Job Posting: the process of communicating information about a job vacancy: – On company bulletin boards – In employee publications – On corporate intranets – Anywhere else the organization communicates with employees

5-14 Recruitment Sources: External Sources Direct applicantsReferrals Advertisements in newspapers and magazines Electronic recruiting Public employment agencies Private employment agencies Colleges and universities

5-15 Results of a Hypothetical Recruiting Effort

5-16 Recruiter Traits and Behaviors Characteristics of the RecruiterBehavior of the RecruiterEnhancing the Recruiter’s Impact

5-17 Enhancing the Recruiter’s Impact Recruiters should provide timely feedback. Recruiters should avoid offensive behavior. They should avoid behaving in ways that might convey the wrong impression about the organization. The organization can recruit with teams rather than individual recruiters.

5-18 Recruiting Exercise (1 of 2) You are the regional HR director of the restaurant chain (e.g., Ruby Tuesday’s or TGI Fridays) and responsible for recruiting all staff for the restaurants in your region. One of the stores in your region needs to hire servers.

5-19 Recruiting Exercise (2 of 2) 1.What knowledge, skills, and abilities are required for the positions you are recruiting? 2.Will your sources of applicants be internal, external, or both? Explain. 3.What recruiting strategies will you use? 4.What metrics will you use to measure your success?

5-20 Summary The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply and demand for various human resources. The next step is to determine the labor demand for workers in various job categories. Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.

5-21 Summary (continued) To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting. To avoid a labor shortage, requiring overtime is the easiest and fastest strategy. Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.

5-22 Summary (continued) Lead-the-market pay strategies make jobs economically desirable. Internal sources are usually not sufficient for all of an organization’s labor needs. Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated.