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Bachelor of Arts (Hons)

Business Administration
(In collaboration with UCSI
University)

Assignment CoverSheet
No Student’s Name Student’s ID

1 NguyễnNgọcTrà My 1002060887
2 PhạmTrungTín 1002060895
3 MaiKỳAnh 1002060871
4 PhạmThànhĐạt 1002060872
5 Nguyễn Tấn Vỹ 1002060923

Module/Subject Information

Subject Code BB208

Subject Name Managing People

Lecturer/Tutor PhD. Nguyễn Ngọc Duy Phương

Submission Date October 24, 2021

Assignment Title/Topic Chapter 5: Human Resource Planning and Recruitment

Word Count 6830


Lecturer’s Signature Grade/Marks/Notes
Contents
1. Introduction..................................................................................................................... 1
2. The Human Resource Planning Process............................................................................2
2.1. Alignment between company strategic direction with its human resource planning.................2
2.2. Forecasting.................................................................................................................... 4
2.2.1. Labor demand:......................................................................................................... 4
2.2.2. Labor supply:......................................................................................................5
2.2.3. Determine labor surplus or shortage...........................................................................6
2.3. Goal Setting and Strategic Planning..................................................................................8
2.3.1. Downsizing.............................................................................................................. 8
2.3.2. Early retirement and layout........................................................................................9
2.3.3. Temporary workers.................................................................................................10
2.3.4. Outsourcing and offshoring......................................................................................10
2.3.5. Immigration........................................................................................................... 11
2.3.6. A close look at H2-A Visas......................................................................................12
2.3.7. A close look at H1-B Visas.......................................................................................12
2.3.8. Altering pay and hours............................................................................................12
2.4. Program implementation and evaluation.........................................................................13
2.5. The special case of affirmative action planning.................................................................13
3. Human Resource Recruitment Process...........................................................................15
3.1. Introducing to the recruitment process.............................................................................15
3.2. Personnel Policies.........................................................................................................16
3.2.1. Internal versus External Recruiting: Job Security.......................................................16
3.2.2. Extrinsic and Intrinsic Rewards................................................................................17
3.2.3. Image advertising...................................................................................................18
3.3. Recruitment Sources......................................................................................................20
3.3.1. Internal versus External Sources..............................................................................20
3.3.2. Direct Applicants and Referrals................................................................................20
3.3.3. Electronic Recruiting..............................................................................................21
3.3.4. Public and Private Employment Agencies..................................................................22
3.3.5. Colleges and Universities........................................................................................22
3.3.6. Evaluating the quality of source................................................................................23
3.3. Recruiter...................................................................................................................... 24
4. Conclusion..................................................................................................................... 26
5. References..................................................................................................................... 27
1. Introduction

Human resources are the most valuable asset of an organization. Talented employees in an
organization’s workforce can strengthen their sustainability in the market. However, the labor
market is currently lacking these gems. With the national unemployment rates at
approximately close to 3%, American employers are competing with each other to recruit
employees. They often make their company’s job more appealing by raising wages, but as
this chapter discuss, there is more to know to recruit more effectively. Hence, the purposes of
this chapter are:
● to examine factors that influence the supply and demand for labor and, in particular,
● to focus on what HR managers can do in terms of planning and executing policies that
give their firms competitive advantage in a dynamic environment.

In this study, the three keys to effectively utilizing labor market to strengthen companies’
competitive advantage are introduced, including:
● The company needs to know the strengths and weaknesses of their current workforce.
● The company needs to be aware of the changes related to the workforce that might
happen and need to happen in the future.
● If there are discrepancies between the present configuration and the future
configuration, companies need programs to point out these discrepancies.
2. The Human Resource Planning Process
2.1. Alignment between company strategic direction with its human resource planning
Human resources include labor force and labor resources.
The labor force is defined to include the totality of the human potential in the company
includes all employees of the company from ordinary workers to senior management in the
company.
Labor resources are the resources of each individual, including fitness and intellectual
resources.
Human resource planning is to map out the project how to ensure that the intention is
“right person – right job – right time”. When the company Planning and defining human
resources will help the company answer the following questions :
 How many people with qualifications does the organization need?
 How is the ability to adapt and carry out the tasks or goals that the company has set?
 When will the company need them?

Alignment is the connection of strategy and execution through communication. Aligning


strategies requires HR to:

● Understand the business strategy.


● Assess current conditions.
● Plan and implement the HR strategy
Measure and evaluate results and adjust as needed

Many people believe that mapping out and deciding to implement the workforce only
provides numbers but does not determine the fluctuations of the workforce. But in reality,
human resource plans are often concretized by projects that do not take much time. These
projects can be flexibly adjusted according to the actual working situation of the organization

To implement workforce planning and definition, an organization needs to follow these five
steps:

Step 1: Forecasting workforce needs


 To plan properly, an organization must know its future:
 What ambition do you wish to achieve?
 What activities need to be done?
 What products or services to produce and to what scale?
 Based on that information, the organization will direct the workforce to:
 How many employees?
 Quality: required qualifications and qualities
 Time: when is it needed?

Step 2: Analyze the current situation of human resources


In terms of the system, what factors should be paid attention to?
model operation
responsibilities and rights in the company's structure for resource management

As for the process:


 The attractiveness of work to employees
 The environment and culture of the organization
 Management style
 Management style or clarity and specificity of the plans the organization puts in place

Step 3: Increase or decrease labor resources


Organizations need to compare human resource needs with the current human resource
situation to orient whether human resources are redundant or lacking compared to the
demand. The organization then needs to choose solutions to overcome the redundancy or
shortage of the workforce.

Step 4: Develop an implementation plan


 Employee recruitment plan.
 The plan to reorganize the structure.
 Project tarpaulin and employee conversion.
 Project to reduce redundant labor.

Step 5: Evaluation and Implementation


• Directing the deviations between the purpose outlined and the implementation of the
plan.
• Analysis of the causes leading to those deviations.
• Propose solutions to correct deviations and improve measures.
• After planning and determining the required workforce in the future, the organization
needs to find this human resource to make sure it is available when needed.
2.2. Forecasting
2.2.1. Labor demand:
Demand forecasts are developed around specific job categories or skill areas relevant to
organization’s current and future states. May use statistical models:
 Leading indicator predicts future labor demand
 Useful when a long, stable history can be used to reliably detect relationships among
variables
Define the labor demand, the planner will define categories like job categories and skills
needed in workers. To first determine what you want from the labor force in the future.
For example, for the work Plumber
 Job categories: repair
 Work tasks: plumbing repair, water pump repair for house or company, restaurant,...
 Needed skill: Architectural pipeline knowledge acquisition skills
 So, they will depend on that information for predict future demand of labor
For example, for the “future demand of labor”. Considering the current covid-19
situation in Vietnam, the thing about online trading and selling take-away foods is on the rise.
Then it can certainly be predicted that in the coming months the number of shippers needed
for the delivery of goods and necessities will increase. For each organization, the
sophistication of the tools to forecast the future demand of labor also varies and at the most
complex level. Some companies will use statistical models based on objective statistics on
“leading indicators” from the previous years.
“Leading indicators” is a quick indicator for signals before a new trend or trend
reversal occurs. Leading indicators is a piece of economic data that corresponds with a future
movement or change in some phenomenon of interest. The index of consumer confidence,
purchasing managers' index, initial jobless claims, and average hours worked are examples of
leading indicators.
 Although statistical models have proven to be useful and reliable. But it still requires
subjective judgments of experts in that industry or field to make the most accurate
assessments possible.

For example: Only a decade ago, no one would have heard the job title “cloud
computing engineer,” yet this is projected to be one of the fast-growing areas when it comes
to the demand for labor in the future. Thus, there is no historical data for a job like this.
Experts in this area rely instead on subjective judgments; hence, Robert Patrick, vice
president for marketing at Hewlett-Packard, confidently predicts that “the cloud skill gap is
the single biggest barrier to the future adoption of cloud infrastructures.”

2.2.2. Labor supply:


Internal labor supply analyzes how many people are currently in various job categories within
the company. Like how many job categories, how many responsibilities in an organization. If
the company lacks job categories , they will recruit the workers that have those job
categories.
For example: In the restaurant, there is a chef as the main kitchen, but there is a lack
of an auxiliary kitchen to process spices, vegetables, ... If the chef does the whole thing, it
takes a lot of time and customers will complain a lot. Then they just need to recruit people
who can do that work item (food processing, seasoning) to serve the purpose of an
organization faster and achieve the required target of the customer.
 Company does this by performing a detailed analysis of how many people are doing
what positions or how many have special skills. Then the analysis can be changed
based on other influencing factors like turnover rate, retirement, etc.
 Similar to labor demand, labor supply can also be projected against a statistical model
or judgmental techniques and one of the methods that can be used to forecast labor
supply is the “transitional matrix”.
“Transitional matrices” show proportion (or number) of employees in different job categories
at different times
For example:

Table 1: Hypothetical Transactional Matrix for an Auto Parts Manufacture (Sources: Human
Resource Management textbook, Noe et al., 2020)
2.2.3. Determine labor surplus or shortage
STEP 1:
Once forecasts for labor demand and supply are known, the planner can compare the figures
to ascertain whether there will be a labor shortage or labor surplus
For example:
In the assessment report on the current situation of human resource quality in the
construction industry of the General Construction Association, the whole country has about
78,000 enterprises operating in the construction industry with about 4 million employees.
However, this number of human resources has not yet met the requirements of the market.

Identifying the underlying reason for the shortage or surplus is also important, because this
will have a big impact when it starts to solve the problem.
Working in the auto sector, for example, was traditionally not regarded as "women's
employment" in Japan; nevertheless, when confronted with significant labor shortages due to
an aging domestic population, corporations such as Honda, Nissan, and Toyota began to hire
many more women.

STEP 2: Goal setting and strategic planning


Purpose of setting specific quantitative goals to focus attention on the problem and provide a
solution to determine the relative success of pending labor shortages or surpluses. The goals
should come directly from the supply analysis and be calculated with a specific number of
what will happen with the type of work and a specific time to achieve the results.
Table 2: Options for reducing labor surplus (Sources: Human Resource Management
textbook, Noe et al., 2020)
Downsizing is the fastest way to reduce the amount of labor, but it also hurts people the most

Table 3: Option for avoiding labor shortage (Sources: Human Resource Management
textbook, Noe et al., 2020)
 This stage is very important because it clearly plans the cost, speed, efficiency, and
human tolerance level.
For example, if an organization can anticipate a labor surplus, it will suspend hiring.
If successful, an organization can avoid layoffs altogether, so that no one has to lose their
jobs.
2.3. Goal Setting and Strategic Planning
2.3.1. Downsizing
Definition of downsizing: The planned elimination of large numbers of personnel, designed
to enhance organizational effectiveness.
In addition, many companies that are doing quite well still regularly cut staff for strategic
reasons. However, in times of recession or in the face of operational inefficiencies,
organizations still perform downsizing to strengthen the company.

For example: Because of the current complicated covid situation, French hotel group Accor
plans to cut another 1,800 jobs in 2021, the first wave of layoffs involving 1,000. On the part
of British and American brands such as IHG, Marriott or Hilton, these corporations have also
been forced to lay off 12% to 17% of their employees.

Surveys indicate three major reasons that organizations engage in downsizing.


● Many organizations are looking to reduce costs, and because labor costs represent a
big part of a company’s total costs.
● The development of the new technology era has produced robots with higher
performance and gradually replaced workers.
● Many firms downsized for economic reasons by changing the location where they do
business.
For example: While it doesn't use robots, General Electric's new battery factory in
Schenectady, New York, shows how new technology can reduce jobs. The entire 200,000
square meter facility requires only 370 workers, only 200 of which are actually on the shop
floor. Besides, replacing the robot ice workers can reduce costs in the long run.

However, downsizing is not really effective and has a negative impact on long-term
performance.
● While downsizing can achieve cost savings for short-term benefits, it also results in
the loss of talent. In many cases, it also disrupts the social networks needed to foster
creativity and flexibility.
● Many downsizing campaigns let go of people who turn out to be irreplaceable assets.
For example:
Several companies such as Procter & Gamble, JCPenney, Nike, PepsiCo, and Toys
“R” Us have tapped former executives to lead their management team. These
individuals come in knowing the company well, but they also bring a new perspective
achieved by having success at some other venture.
● Workers became more negative after downsizing campaigns that made it harder to
recruit employees later.

2.3.2. Early retirement and layout

 Baby Boomers delaying retirement


 Employers concerned about losing the experience and implicit knowledge of older
workers
 Older workers cost more
 Older workers block advancement of younger workers
 Voluntary attrition through early retirement incentive program
➔ There are still many employees over 65 who still choose to work. Because:
 The first reason, the way of life when you were young did not save money, or because
you were afraid that if you stopped working, you would not have enough money to
pay for your life later. So, they try to make a lot of money.
 The second reason, a lot of people miss the feeling of going to work, human contact
and the feeling of dedication
 The third reason, because the health of modern people today is gradually getting
better over the years, people work longer and also partly due to a shortage of labor in
some specific occupations.
 The last and the main reason is they don’t want to lose the amount of knowledge and
experience that has been embodied in these old employees. That's why people keep
old employees to train the younger generation of the company before then letting the
old ones retire.
For example, at Toyota’s plant 1n Georgetown, Kentucky, veteran workers earn $26
an hour, compared to $16 an hour for new hires. In an effort to shift the workforce from high-
paid to low-paid workers, Toyota offered retirement incentives to 2,000 workers at the plant.
Each worker could get a lump-sum payment equal to two weeks of pay for every year of
service, up to a maximum of 25 years; plus, eight weeks’ additional pay. In return for taking
the buyout, workers would agree to retire on a fixed schedule that prevents all the workers
from retiring at once.
2.3.3. Temporary workers
Workers whose main job is a: fixed-term contract and refers only to dependent employment,
which also includes occasional, casual, or seasonal workers and daily workers.
If your business’s staffing needs are seasonal—for example, you need extra workers during
the holidays or during busy production periods—then temporary employees could provide the
flexibility you need to grow. Temporary employees, as the name indicates, are hired only for
limited periods of time. So, they are only there when you need them for specific growth
spurts.
Temps also have other advantages. Because most temporary help companies screen—
and often train—their employees, entrepreneurs who choose this option stand a better chance
of obtaining the quality employees they need.
In addition to offering pre-screened, pre-trained individuals, temporary services can help
contain your overhead and save time and money on recruiting efforts. The cost of health or
unemployment benefits, workers’ compensation insurance, profit-sharing, vacation time and
other benefits doesn’t come out of your budget since many temporary help companies
provide these resources to their employees.
Temporary employment contracts are often used by employers to manage fluctuations
in personnel needs. Many sectors of industry experience these fluctuations, which are often
seasonal.
Seasonal workers cover all employees whose expected duration of main job was less than one
year with Seasonal/temporary/fixed contract supplied as the reason and excludes all
employees who are on a fixed term contract or paid by an employment agency/labor hire
firm.
Companies from almost every industry hire temporary workers to fill in when regular staff
members are ill or on vacation. Special projects and seasonal work are other reasons for
employment. According to the American Staffing Association, the temporary help services
industry accounted for about 2 percent of all private sector jobs in the United States, with
about 3 million temporary and contract employees working for U.S. staffing companies each
week.

2.3.4. Outsourcing and offshoring


● Outsourcing:
Known as a way in which a company can use the work forces or services provided by other
companies, the main purpose is to help save a business operating cost.
Outsourcing can greatly contribute to product richness and high-quality product lines, while
increasing partnership contact review rates.
For example: A company needs a page that can be stored and shared for all parts of
the information about business, when companies spend most of their time on their own
business or investment, finding and hiring a computer system maintenance staff can help
solve this problem.

In addition, the recruitment manager needs to recruit more qualified and knowledgeable staffs
in the provided internal and external fields.

● Offshoring:
Also, a form of outsourcing but directed to individuals from abroad, including many other
factors such as management structure, legal value, and cooperation interests.
By this way, it can help businesses absorb knowledge and techniques from other countries to
help increase value for businesses, and at the same time meet export needs.
However, outsourcing can face many barriers such as labor value and incompatibility,
security leaks, and inadequate labor value.

For example, a sales company intends to hire highly trained skilled workers from
abroad to make a difference for the company, however, the company's infrastructure does not
allow it, as well as the lack of experience of cooperation. The missing of management's
experience in that field causes a lack of understanding of how to guide and orient the business

2.3.5. Immigration
Can be understood as both individuals working abroad and immigrants seeking local work
As career support for foreign individuals, there should be transparency about the records and
background of them. Individual migrant workers should receive patronage policies from
multinational associations, as well as receive fair and consistent treatment among cooperating
countries to individuals.
2.3.6. A close look at H2-A Visas
The government provides H2-A visas that allow foreign workers into this country to do
seasonal work, mostly in agriculture. (The cultivation of rice, soybean and wheat, and other
high economic value crops such as fruits and berries require human labor ).
→ The H2-A visa has no restrictions; however, it takes almost four weeks to process, which
loses its purpose when it comes to time-sensitive seasonal products.

2.3.7. A close look at H1-B Visas


Options for Avoiding an Expected Labor Shortage

H1-B visa

 Highly skilled workers


 Their jobs will not take the jobs of American workers
 High flexibility, easy to convert
 Visa can be extended to a limit of 6 years
 The limit for H-1Bs is currently at 65,000 petitions

For fiscal year 2012, the level of 65,000 applications was reached on 11/22/2011.

For Fiscal Year 2012, the 20,000 H-1B level for applicants with a master's degree or higher
from US universities was reached on October 19, 2011.

Goal Setting and Strategic Planning continued:

 Altering pay and hours


 Garner more hours from current employees
 Causes employee stress and frustration
 Cut salaries
 Reduce contributions to 401 plans
 Reduce hours of all workers
 Furlough

2.3.8. Altering pay and hours


Advantages:
 Because paying your employees on an hourly basis is a variable cost, a reduction in
working hours improves your profitability, all else being equal. Lowering employee
pay also lowers your portion of payroll taxes. you to manage their performance by
allocating more hours to higher-performing workers and fewer hours to your less
efficient ones.

Disadvantages:
 Reducing workers' hours may create a lost "opportunity cost" of lost sales.
 Such a situation creates a poor working environment, which may also affect your
business.
 Dissatisfied employees may become less productive, leading to lower sales. In
addition, a worker may view his reduced hours in comparison to other workers as
favoritism, which may affect his morale
Managing Hours:
Setting a performance benchmark such as monthly sales, including projections for
future sales, allows you to monitor workers' hours and plan your employees' work
schedules ahead of time.

2.4. Program implementation and evaluation


Program implementation and evaluation are the final step in the Human Resource Planning
Process. In the implementation part of this step, HR applies things that have been planned
before into reality. For the implementation of the plans to run, companies need some
individuals responsible for achieving the goal, who have sufficient authority and resources to
accomplish the goal. While implementing the plans, it is good to have routinely reports on the
progress of the plans. These reports and feedback are crucial to ensure that everything is still
at hand and the process is still on track.
After finishing the implementation, it is the time to look back on that and evaluate the
result. The evaluation can be about if the result fits with the given goal, it can also be an
“after-action review” to see if there is any flaw during the implementation stage, why it
happened and is it possible to prevent it.

2.5. The special case of affirmative action planning


Affirmative Action Plans (AAP) are the tools or written programs with detailed steps it needs
to take to protect the rights of each individual in the organization. It especially helps
employees to overcome their race, color, sex, national origin, and disability barriers so that
they can perform as their best.
For example, affirmative action plans used to forecast and monitor the proportion of
various protected group members, like women or minorities in different departments of the
organization.

Utilization review is the process of comparing the proportions of that group of workers in the
labor market and the proportions of that group of workers within the organization. If there is
a huge gap between these two number, the organization might be underutilized or
overutilized that source of employees.
For example, EEOC statistics showed that, in the banking industry, African
Americans held only 5% of the positions at several of the major banks, despite reflecting 15%
of the overall population. Jamie Dimon, CEO of JP ; Morgan Chase and Company, frankly,
admitted that “there is one area in where we simply have not met the standards, we have set
for ourselves—and that is increasing African American talent in the firm.” Still, the bank did
make a $5 million investment toward improving diversity, much of which was channeled into
scholarships that have an impact much further

It is good to plan for various subgroups within the organization since categorizing workers
into many small groups can help HR managers to monitor and control the entire workforce
more easily.
For example, only 15% of software engineers in Silicon Valley are women, a
proportion that is far short of their general participation rate.” The proportion is even lower
for African Americans, who represent just 1% of software engineers versus a 13% general
participation rate. Some firms are trying to respond to this situation. For example, Google has
sent several workers to predominantly African American colleges like Howard University to
help cultivate future coders.”!
3. Human Resource Recruitment Process
3.1. Introducing to the recruitment process
Human resource recruitment is the practice or activity operated by the organization in order
to identify and attract potential employees.
Recruiting is not just about the number of applicants that the company attracts, it is also about
the quality of these applicants and the organization’s expense to employ them.
For example, if a company posts a job vacancy on social media and receives a
thousand applicants, but only few of them are actually qualified for the job, then the
recruitment is not effective. Or a company hires a private employment agency to get them a
superior and talented applicant, but the cost to get that referral and the salary expense for that
employee are too high, then the recruitment is also not effective.
To avoid ineffective recruitment, there are three aspects of recruiting that the organization
must consider when doing this practice, namely,
● Personnel Policies: about the job that the organization has to offer
● Recruitment Source: about the people who apply
● Recruiter's characteristics and behavior
The figure 5.3 below will helps in visualizing how these three aspects of recruiting affect the
job choice of an applicant

Figure 1: Overview of the Individual Job Choice-Organizational Recruitment Process


(Sources: Human Resource Management textbook, Noe et al., 2020)
The figure 5.3 shows that the job choice of an applicant is affected directly by the
characteristics of the vacancy and of that person. The vacancy characteristics are affected by
organization’s personnel policies and the recruiter trait and behaviors. The recruiter trait and
behaviors are also a factor that affect applicant characteristics beside the recruitment sources.
In the next part of this study, we will explore more deeply about these aspects of recruiting.

3.2. Personnel Policies


The practice or activity carried on by the organization with the primary purpose of identifying
and attracting potential employees.
“Personnel policies” is a generic term we use for organizational decisions that affect the
nature of the vacancies for which people are recruited.

In general, all companies have to make decisions in three areas of recruiting:


 Personnel policies
 Recruitment sources
 The characteristics and behaviors of the recruiter.

“Personnel policies” is a generic term we use for organizational decisions that affect the
nature of the vacancies for which people are recruited.

3.2.1. Internal versus External Recruiting: Job Security.


One organizational policy that affects this is the degree to which the company “promotes
from within” – that is, recruits for upper-level vacancies internally rather than externally.
 Promote-from-within policies makes it clear to applicants that there are opportunities
for advancement within the company. These opportunities spring not just from the
first vacancy but from the vacancy created when a person in the company fills that
vacancy.
 Lower costs – Statistically, the cost of recruiting from within is 50% lower than
external.
 Connect and get to work faster – Internal candidates have a shorter learning curve –
because they already understand the culture and way of working at the company.
 Bringing in recruits from external sources often helps spur creativity and innovation
that might not originate from insiders who have grown accustomed to routine work
processes.
For example, Optimove is a software firm that develops technologies to automate
tailored customer retention marketing, with an emphasis on the gaming sector. Pini Yakuel,
the company's CEO, has relied almost exclusively on promotion-from-within at committing
employees to the company and vice versa. Yakuel notes that “the big advantage is that these
people know the company in all its particulars from top to bottom, and its strength that an
outside manager will need time and extra skills to match”.

However, there are two drawbacks in this policy.


 This type of program sometimes upsets current managers of employees who are
recruited away. Many of these employees are top performers in their current units,
and some managers bristle at the loss of these individuals.
 Limit your candidate pool

For example, if the business innovates and requires a fairly new position, your staff
will have other specialties and may not be able to fill this skills gap. Relying solely on
internal recruiting means you may be missing out on the opportunity to hire people with new
skills and ideas.

Research indicates that job applicants find companies with due process policies more
attractive than companies with ‘employment-at-will policies”. Some policies to attract job
applicants:
 Due process policies
 Employment-at-will policies

3.2.2. Extrinsic and Intrinsic Rewards


 One of the economic theories in favor of increasing wages and maintaining a high
level of wages is the "Efficiency wages theory" which was put forward in the 1950s.
Because pay is a public characteristic. While it is vital for nearly all candidates, firms
who implement a "market leading" pay approach - a policy that pays more than the
existing market - have a clear edge in terms of recruitment. The aim of market
leadership is to increase wages more quickly than competition. In some cases, paying
well may be the only way to attract people to certain jobs.
For example, in the drilling segment of the mining industry, this work takes place in
places that make it extremely difficult to recruit workers. Compared to other parts of the
world, $40,000 a year is said to be a high salary for oil workers in the US. That's because in
the US, this job is also considered a very dangerous profession
Hard work, requiring perseverance and being away from family for a long time and working
at work sites like on the oceans is the profession of ocean cleaning. The workers have the
duty to pick up the rotten fish, the oil is patchy... polluting the seas.

 Paying is also a possible way to compensate for less desirable characteristics of the
job - for example, paying higher wages to employees who have to work midnight
shifts or overtime. → The “lead” policy makes any given vacancy more attractive to
candidates.
 However, there are limits to the use of wages to attract people to certain jobs.

For example, the U.S. The Army cannot compete on salary, because as General
Michael Rochelle, then head of recruitment, noted: "The reality is that though we must at
least maintain competitiveness, we will never be able to pay as much as the private sector.”
To offset this disadvantage in external financial reward, the military must rely on more
intrinsic rewards related to patriotism and personal growth opportunities that people associate
with military service.
A more realistic and easy-to-understand example is that with the current complicated
situation of the covid epidemic, doctors and volunteers volunteered to fight the epidemic on
the front lines. The factors of money and salary became almost an inconsequential issue but
largely related to patriotism and opportunities for personal growth.

3.2.3. Image advertising


Most firms regularly advertise specific vacancies. However, advertising organizations are
mainly focused on promoting themselves as a good place to work in general. Visual
advertising is especially important for companies in a highly competitive labor market that
consider themselves to have a bad image.
For example, recently, events have occurred that have adversely affected the image of
companies, namely Facebook (invasion of privacy), Shopee (exchange of customer
information), Economy Delivery (customer fraud) and Uber (hostile workplace)...
→ Therefore, the advertising campaigns carried out by the organization are aimed at finding
potential future employees and minimizing losses.

In the past, the practice of apologizing would be done by people seeking forgiveness
by sending a letter and printing it out in a series of national papers. However, now, this
practice is no longer common, apology campaigns are conducted similar to broadcast
television events, digital advertising...
3.3. Recruitment Sources
3.3.1. Internal versus External Sources
Through LO 5-4, we have known that employers can search and recruit their employees, from
both inside and outside their organization. Internal sources of employees include the
employees within the organization, it can be from promoting and demoting employees or
moving and putting employees in different positions. External sources of employees are
applicants who come from outside of the organization which come mostly from hiring.
Internal sources versus External sources.

Internal sources advantage:


● Applicants and the firms already have knowledge and experience to work with each
other.
● Time and financial efficiency.
● Insiders often have better performance that outsiders

External sources advantage:


● For some role vacancies, the company might not have any appropriate stock of
employees to fill in. There are some positions that require employees to have
expertise or to specialize in one field to handle. Because of its scarcity, not all
companies have sufficient stock of these employees.
● Outsiders are more likely to bring innovative and lucrative ideas.
● When a company hires a talented employee in the labor market, it minimizes the
chance of its competitors to recruit a great employee.

Cold Calling: Attempting to hire employees who are currently working for competitors. It is a
A famous case of cold calling was Apple's attempt to recruit Tim Cook when he was in an
executive role in Compaq company, the most successful computer company at that time. The
result was that Tim Cook joined Apple in 1998.

3.3.2. Direct Applicants and Referrals


Job applicants can also be categorized by people who prompt them to that position.
People who apply for jobs without invitation from the organization are Direct Applicants.
People who are prompted to apply for a job by someone within the organization are called
Referrals.
Before applying to the vacancy, the direct applicants must do some homework which
allows them to find out if the vacancy and organization fit with them. This process is called
self-selection. For referrals, their self-selection process is backed by their friends and
relatives who are currently a part of the organization. In this process, the current employees
will be the intermediaries between applicants and organization. With a good understanding of
the job vacancy and the applicants, the intermediaries will do some work before deciding
whether the applicants fit with the vacancy or not. If an employee fits with the job, the
intermediaries can sell that person on the job.

Lift out is to convince a team of employees that is currently working for your
competitor to work for you. The competitive advantage of a company will be threatened if
their crucial team were lifted out, hence HR must ensure that they can retain the company's
talented and promising teams.

3.3.3. Electronic Recruiting


Nowadays, the Internet and social media is a great medium for employees to search for a job
and employers to recruit employees. There are several ways by which employers can get into
“e-recruiting”, namely,
● Use the company's official website to solicit applications. Applicants can use these
websites by filling in a form telling what they can do for the company and what they
expect to get in return. Applicants then can get the immediate response telling if they
fit with the organization or the job or not.
This is an advantage of companies with enormous recruiting budgets since they can
pay for SEO (search engine optimization) to have their website on the top of the list
when employees enter keywords in search engines. Being in the top of the finding list
means they have more chances to meet promising employees.
● Posting their job offers on large and popular job board websites like LinkedIn,
Craigslist, or Monster.com. These websites can be understood as online platforms that
connect job seekers and recruiters. LinkedIn users can search for jobs as candidates by
entering desired keywords into LinkedIn search engine.
● Employers can also utilize social networking sites for recruiting employees. Social
media like Facebook are informal channels to work and communicate, employers can
make full use of its informality to quickly engage with potential employees. However,
these sites do not have absolute privacy for users, and it has many advertisements of
unrelated topics popping up frequently. Plus, because of the freedom-of-speech nature
in these sites, it is hard to prevent negative comments on your posts.

3.3.4. Public and Private Employment Agencies


Unemployed people in the United States have their profile registered with their local
employment office. Their profile then will be used by the United State Employment Service
(USES) to find a job for them. These agencies are called public employment agencies.
Employers can contact the local employment office to find employees to fill in their job
vacancies. The agency will choose some of the unemployed people and refer to the
employers. Employers are not bound to pay to get these referrals. Moreover, at these local
employment offices, they have specialized “desks” for minorities, handicapped people and
even for ex-soldier who experienced wars.
Public employment agencies mostly supply blue-collar workers, people who perform their
job using mostly their physical strength. Private employment agencies on the other hand are
the great sources of white-collar workers, people who work in the office and get paid by
performing their mental and intellectual skills. The two other different between public
employment agencies and private employment agencies are
● Private employment agencies require payoffs when making referrals.
● A person getting referred by private employment agencies are not necessarily
unemployed.
There is a special type of private agency, which is called headhunting agency. Unlike others,
this type of agency focuses mainly on referring people who already have a job.

3.3.5. Colleges and Universities


A lot of colleges and universities guarantee that their students will have a job for a short time
after graduating, this is a great source for employers to utilize. On-campus interviewing is
one of the sources of employees that come out from colleges and Universities. On-campus
interview means the recruiters will go to the campuses of several targeted universities or
colleges to conduct the interviews. All students can apply but only top candidates are invited
to the interviews. These finalists then can meet their potential employers in person.
Operating internship programs is also a way to lure college talents. For college
students, internships offer a valuable chance to learn and get hand-on experiences. For the
organization, this is an early access to potential applicants and to utilize their aptitudes
directly. These programs also help students and organizations have a better understanding of
each other. Moreover, internship is an economical solution for organizations to test their
potential employees compared to probation.
Programs that help students pay off their college loans are highly appealing.
Organizations will offer to help students pay their loans if they work for them.
High school is an alternative source of employees if one’s company cannot compete
in recruiting in college. Free and cheap online material like online courses and collaborative
communities have created opportunities for high school students to develop their own skill
sets and portfolio before they go to college and reach the age to go to work. If they create an
outstanding project, it might bring them the attention from recruiters.
Recruiter's primary choice are students at prominent colleges or universities in the field they
are searching for. For example, companies in Ho Chi Minh city that are looking for
employees with good knowledge on technology will focus on working with Ho Chi Minh
City University of Technology , University of Information Technology, or FPT University.

3.3.6. Evaluating the quality of source


There is no pattern of best or worst source of employees that can be applied for all
companies. The most appropriate source to get employees is depending on their structure,
human resource budget, working philosophy at a specific time. Through monitoring,
companies can find out what is the most profitable source of employees for themselves.
Yield ratios of a source of employees talk about how well applicants from each source move
from one stage of the recruitment and selection process to the next. Yield ratios are expressed
under percentage form. Higher yield ratios state that one source is more fit with a company
than others. Below is an example of how yield ratios are calculated.
Table 4: Hypothetical Yield Ratios for Five Recruitment Sources (Sources: Human Resource
Management textbook, Noe et al., 2020)

3.3. Recruiter
The recruiter could be separated into HR specialists or carried also by the line managers, in a
similar way giving information, guidance, and employee training. The main purpose of a
recruiter is to guide internships for employees to create useful human resources, at the same
time evaluate employee’s productivity and define the roles of those individuals.

However, it also exists some limits in recruitment such as:


 Recruitment is a lengthy process, and it takes a lot of time for recruitment agencies to
find the right candidate.
 The interaction between the recruitment agencies and the company often causes
omissions or misunderstandings, causing the recruitment of unwanted employees.
 It is required to pay for the cost of recruitment, and many companies may don’t need
this position because the profit is not too high.

The recruitment agencies can bring opportunities to company in many aspects, including:
 The recruitment team is usually professionally trained, so they can clearly understand
the candidate's role and capabilities, as well as understand the surrounding conditions
and the market situation
 The recruitment team often has connections with many individuals outside of the
company, as well as ways to specialize in keeping in touch with them in the form of a
broader association than within the company
 Instead of spending a certain amount of money to train existing employees, the
recruitment department can help hire employees who specialize in those jobs, which
is also very necessary in the stages that require a high level of expertise
4. Conclusion
Human resource planning anticipates labor shortages and surpluses by using labor supply and
demand predictions. It also includes measures for reducing a labor surplus and eliminating
labor shortages.
Human resources planning can enhance the success of the organization while
minimizing the humans suffering resulting from poorly anticipated labor surplus and
shortages. Human resources recruiting is a buffer activity that creates an applicant pool that
the organization can draw from in the event of a labor shortage that is to be filled with the
new hires. Organizational recruitment programs affect applications through personnel
policies that affect the attributes of the vacancies themselves. They can also impact the nature
of people who apply for positions by using different recruitment sources. Organizations can
use recruiters to influence individuals’ perceptions of jobs or perceptions of themselves.
5. References
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2020). Human Resource Management

(12th ed.). McGraw-Hill Education.

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