Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 2 | Recruitment and Placement

Chapter 5

Personnel Planning and Recruiting

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
After studying this chapter, you should be able to:

1. Explain the main techniques used in employment

planning and forecasting.
2. List and discuss the main outside sources of
candidates.
3. Effectively recruit job candidates.
4. Name and describe the main internal sources of
candidates.
5. Develop a help wanted ad.
6. Explain how to recruit a more diverse workforce.

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The Recruitment and Selection Process
1. Decide what positions to fill through personnel planning
and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.

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FIGURE 5–1 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.

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FIGURE 5–2 Linking Employer’s Strategy to Plans

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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

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 Forecasting Personnel Needs

Forecasting
Tools

Trend Analysis Ratio Analysis Scatter Plotting

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FIGURE 5–3
Determining the
Relationship
Between Hospital
Size and Number
of Nurses

Note: After fitting the

line, you can project
how many employees
you’ll need, given your
projected volume.

Size of Hospital Number of

(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

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Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives
on future staffing levels.
• They support compensation plans that reward
managers for managing ever-larger staffs.
• They “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.

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Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
 Software that estimates future staffing needs by:
 Projecting sales, volume of production, and
personnel required to maintain different volumes
of output.
 Forecasting staffing levels for direct labor, indirect
staff, and exempt staff.
 Creating metrics for direct labor hours and three
sales projection scenarios—minimum, maximum,
and probable.
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FIGURE 5–4
Management
Replacement
Chart Showing
Development
Needs of
Potential Future
Divisional Vice
Presidents

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 Forecasting the Supply of
Inside Candidates

Qualification
Inventories

Manual
Computerized
Systems and
Information
Replacement
Systems
Charts

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The Matter of Privacy
• Ensuring the Security of HR Information
 Control of HR information through access matrices

 Access to records and employee privacy

• Legal Considerations
 The Privacy Act of 1974

 Americans with Disabilities Act

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FIGURE 5–5 Keeping Data Safe

Since intruders can strike from outside an organization or from within, HR

departments can help screen out potential identity thieves by following four
basic rules:
1. Perform background checks on anyone who is going to have access to
personal information.
2. If someone with access to personal information is out sick or on leave,
don’t hire a temporary employee to replace him or her. Instead, bring
in a trusted worker from another department.
3. Perform random background checks such as random drug tests. Just
because someone passed five years ago doesn’t mean their current
situation is the same.
4. Limit access to information such as SSNs, health information, and
other sensitive data to HR managers who require it to do their jobs.

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Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate

• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
 India. Congressional Budget Office (CBO)
 iNdian Department of Labor’s O*NET™
 Bureau of Labor Statistics (BLS)
 Other agencies and private sources
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Effective Recruiting
• External Factors Affecting Recruiting
 Supply of workers
 Outsourcing of white-collar jobs
 Fewer “qualified” candidates
• Other Factors Affecting Recruiting
 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm
 Employment laws

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Effective Recruiting (cont’d)
• Advantages of Centralizing Recruitment
 Strengthens employment brand

 Facilitates applying strategic priorities

 Reduces duplication of HR activities

 Reduces cost of new HR technologies

 Builds teams of HR experts

 Provides better measurement of HR performance

 Allows for sharing of applicant pools

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FIGURE 5–6 Sample Acceptable Questions Once Conditional Offer Is Made

1. Do you have any responsibilities that conflict with the job vacancy?
2. How long have you lived at your present address?
3. Do you have any relatives working for this company?
4. Do you have any physical defects that would prevent you from
performing certain jobs where, to your knowledge, vacancies exist?
5. Do you have adequate means of transportation to get to work?
6. Have you had any major illness (treated or untreated) in the past 10
years?
7. Have you ever been convicted of a felony or do you have a history of
being a violent person? (This is a very important question to avoid a
negligent hiring or retention charge.)
8. What is your educational background? (The information required here
would depend on the job-related requirements of the position.)

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 Measuring Recruiting Effectiveness

Evaluating
Recruiting
Effectiveness

What to How to
Measure Measure

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TABLE 5–1 Selection Devices that Could be Used to Initially Screen Applicants

Validity for Predicting Job

Selection Device Performance*
Construct
General mental ability tests 0.51
Conscientiousness tests 0.31
Integrity tests 0.41
Method
Work sample tests 0.54
Job knowledge tests 0.48
Structured interviews 0.51
Biographical data 0.35
Grade point average 0.23
Ratings of training and experience 0.11

Note: *Higher is better.

Source: Kevin Carlson et al., “Recruitment Evaluation: The Case for Assessing
the Quality of Applicants Attracted,” Personnel Psychology 55 (2002), p. 470.
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FIGURE 5–7 Recruiting Yield Pyramid

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Internal Candidates: Hiring from Within

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

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 Finding Internal Candidates

Rehiring Former
Job Posting
Employees

Hiring from
Within

Succession
Planning (HRIS)

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Outside Sources of Candidates

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters

On Demand Recruiting
2 Advertising 7
Services (ODRS)

3 Employment Agencies 8 College Recruiting

Temp Agencies and Alternative

4 9 Referrals and Walk-ins
Staffing

5 Offshoring/Outsourcing

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Outside Sources of Candidates (cont’d)
• Recruiting via the Internet
 Advantages
 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
 Disadvantages
 Exclusion of older and minority workers
 Excessive number of unqualified applicants
 Personal information privacy concerns of applicants

© 2008 Prentice Hall, Inc. All rights reserved. 5–25

FIGURE 5–8
Top Job
Boards
Ranked
According
to Average
Number of
Job
Listings

Source: Workforce
Management, May 22,
2006, p. 12.
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FIGURE 5–9 Ineffective and Effective Web Ads

Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.
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Advertising for Outside Candidates
• The Media Choice
 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: specialized
employees
 Internet job sites: global labor markets
• Effective Ads
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression of the firm.

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FIGURE 5–10 Help Wanted Ad That Draws Attention

Source: The New York Times, May 13, 2007, Business p.

18.
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 Employment Agencies

Types of
Employment
Agencies

Public Nonprofit Private

Agencies Agencies Agencies

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Outside Sources of Candidates (cont’d)
• Why Use a Private Employment Agency
 No HR department: firm lacks recruiting and
screening capabilities.
 To attract a pool of qualified applicants.

 To fill a particular opening quickly.

 To attract more minority or female applicants.

 To reach currently employed individuals who are

more comfortable dealing with agencies.
 To reduce internal time devoted to recruiting.

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Outside Sources of Candidates (cont’d)
• Avoiding Problems with Employment Agencies
 Provide the agency with accurate and complete job
descriptions.
 Make sure tests, application blanks, and interviews
are part of the agency’s selection process.
 Review candidates accepted or rejected by your firm
or the agency for effectiveness and fairness of
agency’s screening process.
 Screen agency for effectiveness in filling positions.
 Supplement the agency’s reference checking by
checking the final candidate’s references yourself.

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Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows “trial run” for prospective employees
 No recruitment, screening, and payroll
administration costs
• Costs of Temps
 Increased labor costs due to fees paid to temp
agencies
 Temp employees’ lack of commitment to the firm

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Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment
by employers.
• Insecurity about employment and pessimism about the
future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether
temporary assignments are likely to become full-time
positions.
• Being “underemployed” while trying return to the full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.

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FIGURE 5–11 Guidelines for Using Temporary Employees

1. Do not train your contingent workers. Ask their staffing agency to handle training.
2. Do not negotiate the pay rate of your contingent workers. The agency should
set pay.
3. Do not coach or counsel a contingent worker on his/her job performance.
Instead, call the person’s agency and request that it do so.
4. Do not negotiate a contingent worker’s vacations or personal time off. Direct
the worker to his or her agency.
5. Do not routinely include contingent workers in your company’s employee
functions.
6. Do not allow contingent workers to utilize facilities intended for employees.
7. Do not let managers issue company business cards, nameplates, or employee
badges to contingent workers without HR and legal approval.
8. Do not let managers discuss harassment or discrimination issues with
contingent workers.
9. Do not discuss job opportunities and the contingent worker’s suitability for
them directly. Instead, refer the worker to publicly available job postings.
10. Do not terminate a contingent worker directly. Contact the agency to do so.

Source: Adapted from Bohner and Selasco, “Beware the Legal

Risks of Hiring Temps,” Workforce, October 2000, p. 53.
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Working with a Temp Agency
• Invoicing. Make sure the agency’s invoice fits your company’s
needs.
• Time sheets. The time sheet is a verification of hours worked and
an agreement to pay the agency’s fees.
• Temp-to-perm policy. What is the policy if you want to hire a temp
as a permanent employee?
• Recruitment of and benefits for temp employees. How does the
agency plan to recruit and what sorts of benefits it will it pay?
• Dress code. Specify the attire at each of your offices or plants.
• Equal employment opportunity statement. Get a statement from the
agency that it does not discriminate when filling temp orders.
• Job description information. Ensure that the agency understands
the job to be filled and the sort of person you want to fill it.

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 Offshoring/Outsourcing White-Collar
and Other Jobs

Political and
Military Instability

Resentment and
Cultural
anxiety of U.S.
Misunderstandings
employees/unions

Main
Costs of foreign
Issues Customers’
security and
workers
privacy concerns

Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns

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Outside Sources of Candidates (cont’d)
• Executive Recruiters (Headhunters)
 Contingent-based recruiters
 Retained executive searchers
 Internet technology and specialization trends

• Guidelines for Choosing a Recruiter

1. Make sure the firm is capable of conducting a
thorough search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Never rely solely on the recruiter to do reference
checking.
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Outside Sources of Candidates (cont’d)
• College Recruiting
 On-campus recruiting
goals
 To determine if the
candidate is worthy of
further consideration
 To attract good
candidates
 On-site visits
 Invitation letters
 Assigned hosts
 Information packages
 Planned interviews
 Timely employment
offer
 Follow-up
 Internships

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Outside Sources of Candidates (cont’d)
• Employee Referrals
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce.
 Relying on referrals may be discriminatory.

• Walk-ins
 Seek employment through a personal direct
approach to the employer.
 Courteous treatment of any applicant is a good
business practice.

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FIGURE 5–12 Best Recruiting Sources

Percentage of employers reporting best-performing

Note: Survey of 2,294 organizations. sources for hiring without regard to cost, 2004.
Source: Workforce Management, December 2004, p. 98.
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 Improved Productivity Through HRIS:
An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution

Integrated Employee
Recruitment System
Screening Services

Hiring Management

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 Recruiting A More Diverse Workforce

Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women

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 Developing and Using Application Forms

Uses of Application
Information

Applicant’s Applicant’s Applicant’s Applicant’s

education and progress and employment likelihood of
experience growth stability success

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FIGURE 5–13
Employment
Application

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 Application Forms and the Law

Education
Achievements

Housing Arrest
Arrangements Record

Areas of Personal
Information Notification in
Marital
Case of
Status
Emergency

Physical Memberships in
Handicaps Organizations

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 KEY TERMS

employment or personnel position replacement card

planning recruiting yield pyramid
trend analysis job posting
ratio analysis succession planning
scatter plot alternative staffing
computerized forecast on demand recruiting services
qualifications inventories (ODRS)
personnel replacement charts application form

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