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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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Chapter 6 Recruiting
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Phases of Recruiting & Selecting Employees Job analysis Workforce planning Recruitment Initial screening Selection Orientation Placement Training Performance appraisal
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Developing Recruitment Policy: Labor Market Issues A labor market is a geographical area within which the forces of supply (people looking for work) interact with the forces of demand (employers looking for people), and thereby determine the price of labor Limits of the labor market Geography Education and/or technical background required to perform the job Industry Licensing or certification requirements Union membership
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Developing Recruitment Policy: Labor Market Issues Three elements compose internal labor markets Formal and informal practices that determine how jobs are organized and described Methods for choosing candidates Procedures and authorities through which potential candidates are generated by those responsible for filling open jobs Changing market conditions produce changes in recruitment policies Improving the characteristics of vacant positions Reducing hiring standards Using more (and more expensive) recruiting methods Extending searches over a wider geographical area
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. ‘Mating’ Theory of Recruitment: A Two-Way Process ‘Mating’ theory of recruitment – candidates seek out organizations, just as organizations seek out candidates Three conditions necessary for organizations and candidates to meet: A common communication medium The candidate perceives a match between his/her personal characteristics and the organization’s stated job requirements The candidate is motivated to apply for the job
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Recruitment Planning Recruitment begins with a clear specification of two necessary elements: The number of people needed When they are needed Two forms of recruitment: Internal Initial consideration given to current employees External Consideration given to the outside labor market
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Reasons for Internal Recruitment Considering internal over external recruitment External recruitment, without the consideration of the desires, capabilities, and potential of present employees, may incur both short- and long-run costs Short-run costs A decline in worker morale Long-run costs A reputation for consistent neglect of in-house talent, making it difficult to attract new employees and to retain experienced ones
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Plans for Internal Recruitment Job posting Employee referrals (since internal rather than external sources are used to attract candidates, this method is still considered internal) Temporary worker pools (not supplied by temporary agencies) In-house temporaries work directly for the hiring organization and may receive benefits Used to meet fluctuating labor demands due to factors such as illness, vacation, termination, and resignation
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. External Recruitment University relations, formerly “college recruiting” Targeting of certain schools that best meet the organization’s needs May offer gifts and grants to the institution Summer employment and consulting projects for faculty Invitations to placement officers to visit company plants and offices Executive search firms – typically used to recruit senior-level positions. Why use one? Maintains confidentiality from an incumbent or a competitor A lack of local resources to recruit executive-level positions Insufficient time
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. External Recruitment Employment agencies – most widely used outside employment source Only receive payment if one of their referrals results in a hire (unlike executive search firms) Recruitment Advertising Includes, but is not limited to, classified ads in the newspaper and the company’s website
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Methods of Enticing New Recruits Relocation assistance Spouse-employment assistance Sign-on bonuses
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Diversity Yields Diversity Minority candidates consider broader factors when deciding to apply or to remain with organizations The presence or lack of gender or ethnic diversity Availability of training and career-development programs The presence or lack of a diverse upper management The presence or lack of a diverse workforce
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Does Recruitment Source Determine the Value of an Employee? Alternative sources do not consistently explain differences in subsequent performance, job attitudes, or turnover Only a small percentage of the variation in applicant quality and the survival of new hires may be explained by recruitment source
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Importance of Realistic Job Previews Realistic job previews (RJPs) require that, in addition to telling applicants about the nice things a job has to offer (e.g. pay, benefits, opportunities for advancement), recruiters must also tell applicants about the unpleasant aspects of the job Result of RJPs – job acceptance rates may be lower and job performance tends to be unaffected, but job satisfaction and survival rates are higher
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Other Side of Recruitment: Job Search Suggestions for the unemployed Don’t panic Don’t be bitter Don’t kid yourself Don’t drift Don’t be lazy Don’t be shy or overeager Don’t ignore your family Don’t lie Don’t jump the gun on salary Do post your resume on the Internet; use “resume” in the Website address
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Other Side of Recruitment: Job Search Current employees may look elsewhere in order to: Establish a network Demonstrate their marketability to current employers Develop other job choices to compare with their current positions
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