MGT 430 – Spring 2016 Class 6 Chapter 6 Planning For and Recruiting Human Resources

HR Planning Process Directly helps organizations meet business objectives and gain competitive advantages over competitors. Compares the present state of the organization with its future goals Identifies what changes it must make in its HR to meet those goals (Hint, Hint) HR personnel must be fully aware of the business plans for their employer Trends and events that affect the economy also create opportunities and problems in obtaining HR. To prepare for and respond to these challenges, organizations engage in HR planning to the numbers and types of employees the organization will require to meet its objectives. The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply of and demand for various human resources. Based on whether a surplus or a shortage is expected, the planner sets goals and creates a strategy for achieving those goals. The organization then implements its HR strategy and evaluates the results.

THOUGHT STARTER - Nurses Task: Forecast nursing needs for a small (50-bed) hospital in Lake Placid, NY HR would need to know information on: Medical services provided (e.g. emergency, Hospice, surgery, etc.) Population shifts (e.g. older, younger, active, retirees, etc.) Patient services demand (e.g. heart, eyes, pediatric, Ob/Gyn, etc.) Health care trends Health care vs. government regulation/oversight Nursing labor costs Other

Historical Nursing Needs – Lake Placid Nurse to patient ratio Number of medical treatments expected General nursing skills Specialized nursing skills Nurse turnover ratio Cost/benefit analysis

Figure 5.1: Overview of HR Planning Process Figure 5.1 shows the HR planning process. HR tries to determine supply of and demand for various types of human resources. x The process consists of three stages: Forecasting Goal setting and strategic planning Program implementation and evaluation Forecasting - The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortage or surpluses.

Forecasting Forecasting: Attempt to determine supply and demand for various types of HR to predict areas within the organization and where there will be labor shortages or surpluses. Forecasting steps: Forecast labor demand Determine labor supply Determine labor surplus or shortage The first step in HR planning is forecasting. The primary goal is to predict which areas of the organization will experience labor shortages or surpluses. 5-6

Goal Setting and Strategic Planning Recruiting goals must be consistent with and supportive of the organizational strategy and business plan Recruiting goals should come directly from analysis of supply and demand. Our organizations should focus on attracting and retaining employees who provide or improve on a company’s core competency (what makes it better than competitors) This is the second step in HR planning as shown in the middle of Figure 5.1.

Recruitment Process of identifying potential employees, communicating job and organizational attributes to them, and convincing them to apply for available jobs Focuses on finding qualified applicants

Full Time Equivalent (FTE) Types of Employees Full Time Equivalent (FTE) FTE traditionally works a 40 hour work week with the expectation that exempt employees will work the hours necessary to accomplish their jobs Part Time Employee (PTE) A part time employee has traditionally worked less than a 40 hour work week. Today, though, some employers count employees as full time if they work 30, 32, or 36 hours a week.

Temporary & Contract Employees Short term (Seasonal) Legal issues: Are they employees or contractors Loyalty or motivation to company – customers – owners Temporary spike in business

Recruitment Process Acknowledge a recognized need Identify best sources for finding targeted applicants Craft a clear and compelling recruitment message Clarify role of recruiter

Required/Desired Characteristics - Nurse Critical KSAs Certifications/licensing Inter-personal skills Level of experience Ability to travel Multiple discipline settings Problem solving Other?????????

Internal Recruiting Process of seeking applicants from within the firm using, e.g.: Job postings Employee inventories (H.R.I.S.) Intra-net websites Personal referrals Promotions & transfers

External Recruitment Process of recruiting employees from outside the organization Requires identifying the relevant labor market (RLM), Non-exempt = local community Exempt = regional, national, and international community

External Recruitment Methods Advertising – print – social media Educational institutions Career fairs Employment agencies and employee search firms Internet – e.g. Monster – Careers – Job Opportunities Trade organizations Employee referrals Temporary – to- permanent

Employer Brand Developing a long-term strategy to manage how a firm’s stakeholders—including its current and future employees—perceive the company How does my company become an employer of choice

Recruiting Practical Exercise You are an HR specialist and the company’s recruiting manager. You are tasked to recruit and recommend for hire five professionals: Chemical engineer Exempt Chief marketing officer Exempt Credit department manager Exempt Fork lift operator Non-exempt Payroll specialist Non-exempt How do you prepare to find, interview, and select qualified candidates?

Recruiting Exercise #2 You are in charge of recruiting for a global division of your company. Your company is opening up three sales territories in Australia. From Albany, you are tasked to find sales managers and staff for these three territories. Identify some of the issues that will impact your search.

Recruiting Exercise #2 Considerations Compensation & benefits Office financial support Logistics International Legal Technology Administration Family

Recruitment in Practice: Environmental Influences Labor market Target audience Amount of recruitment needed Technology Management of recruitment Skills needed

Recruitment in Practice: Environmental Influences Globalization Recruitment strategy used Where recruiting occurs Ethics and corporate social responsibility Value proposition offered Truth-in-hiring

Recruitment in Practice: Regulatory Issues Content of message – is there potential for discrimination claims? What you can and cannot say during interviews (Keep it strictly job related Record-keeping

Interviewing Questionnaire Are these questions permissible or not permissible during an interview?