Chapter 5

Personnel Planning
and Recruiting

Part Two | Recruitment and Placement

Copyright © 2011 Pearson Education, Inc. PowerPoint Presentation by Charlie Cook

publishing as Prentice Hall The University of West Alabama
WHERE WE ARE NOW…

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LEARNING OUTCOMES
1. List the steps in the recruitment and selection process.
2. Explain the main techniques used in employment
planning and forecasting.
3. Explain and give examples for the need for effective
recruiting.
4. Name and describe the main internal sources of
candidates.
5. List and discuss the main outside sources of
candidates.

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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.
➢ It embraces all future positions, from maintenance clerk to CEO.
However, most firms call the process of deciding how to fill executive
jobs succession planning.
➢ Like all good plans, personnel plans require some forecasts or
estimates, in this case, of three things: personnel needs, the supply of
inside candidates, and the likely supply of outside candidates

• 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
Trend analysis can provide an initial estimate of future staffing needs, but
employment levels rarely depend just on the passage of time. Other factors (like
changes in sales volume and productivity) also affect staffing needs.
Ratio analysis provides forecasts based on the historical ratio between (1)
some causal factor (like sales volume) and (2) the number of employees required
(such as number of salespeople).
A scatter plot shows graphically how two variables—such as sales and your
firm’s staffing levels—are related. If they are, and then if you can forecast the
business activity (like sales), you should also be able to estimate your 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

Hospital Size Number of

(Number Registered
of Beds) Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

Note: After fitting the line,

you can project how many
employees are needed,
given your projected volume.

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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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 Forecasting the Supply of
Inside Candidates
Qualification
Inventories

Manual systems and Computerized skills

replacement charts inventories

Department managers or owners Computerized skills inventory

of smaller firms often use manual data typically include items like
devices to track employee work experience codes, product
qualifications. Thus a personnel knowledge, the employee’s
inventory and development record level of familiarity with the
form compiles qualifications employer’s product lines or
information on each employee. services, the person’s industry
experience, and formal
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education
 FIGURE 5–4 Management Replacement Chart Showing Development
Needs of Potential Future Divisional Vice Presidents

Personnel replacement
charts: it shows the present
performance and promotability
for each position potential
replacement.
Position replacement card: create a card for
each employee showing possible replacement as
well as present performance, promotion potential and
training.
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Forecasting Outside Candidate Supply

• Factors In Supply of Outside Candidates

➢ General economic conditions: it is easy to get information
about the economic conditions in the governmental reports on
the internet. This can help in determining the best combination
salaries and benefits that can attract the qualified applicants.
➢ Expected unemployment rate: High unemployment does not
mean that you can find good candidates. There can be large
number of unqualified candidate unemployed.

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The Need for Effective Recruiting
Employee recruiting means finding and/or attracting
applicants for the employer’s open positions.

Recruiting Challenges

Effectiveness of Effects of Legal requirements

chosen recruiting nonrecruitment associated with
methods issues and policies employment laws

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Effective Recruiting
• Effectiveness of the chosen recruiting method
➢ The chosen method of recruitment depends on the type of job
and number of applicants needed (e.g. if you need large number
you can recruit via the internet, if you need to hire managers you
can use executive recruiters)
• External Factors Affecting Recruiting
➢ Supply of workers
➢ Outsourcing of white-collar jobs
➢ Fewer “qualified” candidates

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Effective Recruiting (Cont.)
• Other Factors Affecting Recruiting Success
➢ Consistency of recruitment with strategic goals
➢ Types of jobs recruited and recruiting methods
➢ Non-recruitment HR issues and policies
➢ Successful prescreening of applicants
➢ Public image of the firm
➢ Employment laws

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Organizing How You Recruit

Advantages of Centralizing Recruiting Efforts

Ensures
Facilitates Reduces Fosters effective
compliance with
strategic duplication of use of online
employment
priorities HR activities recruiting
laws

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 Measuring Recruiting Effectiveness

Evaluating Recruiting
Effectiveness

What to How to
measure measure

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 FIGURE 5–6 Recruiting Yield Pyramid

Recruiting yield pyramid: it is used to calculate the number of

applicants they must generate to hire the required number of new
employees.

50% ● ●

67% ● ● ●

75% ● ● ● ●
16% ● ● ● ● ● ●

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Internal Sources of Candidates
Advantages Disadvantages

• Foreknowledge of • Failed applicants become

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

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 Finding Internal Candidates
https://www.youtube.com/watch?v=1dYomsPpPN
U
Hiring-from-Within Tasks

Posting open Rehiring former Succession

job positions employees planning

Hiring from within ideally relies on job posting and the firm’s skills inventories.
Job posting means publicizing the open job to employees (usually by literally
posting it on company intranets or bulletin boards). These postings list the job’s
attributes, like qualifications, supervisor, work schedule, and pay rate.
Qualifications skills banks also play a role. For example, the database may
reveal persons who have potential for further training or who have the right
background for the open job.
Another source for internal candidate is succession planning which is the
ongoing process of systematically identifying, assessing and developing
organizational leadership to enhance performance
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 Important note:

Please note that according to the previously

watched video (Referrals) are from inside
sources of recruitment
However,
according to the book and to this course,
(Referrals) is part of outside sources of
recruitment
So you should consider referrals as outside
source recruiting as your text indicated

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Outside Sources of Candidates
https://www.youtube.com/watch?v=OtrW7JWrsxw

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters

2 Advertising 7 College Recruiting

3 Employment Agencies 8 Referrals and Walk-ins

Temp Agencies and Alternative

4
Staffing

5 Offshoring/Outsourcing

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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
❖ Unqualified applicants overload the system
❖ Personal information privacy concerns of applicants

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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
• Constructing (Writing) Effective Ads
➢ Create attention, interest, desire, and action (AIDA).
➢ Create a positive impression (image) of the firm.

The essence of AIDA model

https://www.youtube.com/watch?v=BwL-orDGS0w

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 Employment Agencies
• There are three types of employment agencies: public
agencies, non-profit agencies and private agencies

• Public and non-profit agencies provide recruitment

services, training programs,….etc. for free. While, the
private agencies is important source for white collar and
managerial personnel for fees.

• Public agencies like ministry of manpower and non-profit

agencies like (Masr el-Kher and el-Orman).

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 Employment Agencies (Cont.)
How do employment agencies work?
https://www.youtube.com/watch?v=ePLajxLpUNk

Types of Employment
Agencies

Public Nonprofit Private

agencies agencies agencies

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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 than competing
companies.
• To reduce internal time devoted to recruiting.

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Avoiding Problems with
Employment Agencies
• Give agency an accurate and complete job description.
• 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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Specialized Staffing and Recruiting
• Alternative Staffing
➢ In-house contingent (casual, seasonal, or temporary) workers
employed by the company, but on an explicit short-term basis.
➢ Contract technical employees supplied for long-term projects
under contract from outside technical services firms.

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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 to return to the full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.

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 Offshoring and Outsourcing Jobs
https://www.youtube.com/watch?v=bobQQAF9rG
k

Political and military

instability

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

Outsourcing/
Offshoring
Customers’ securing
Costs of foreign Issues and privacy
workers
concerns

Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns
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 Offshoring and Outsourcing Jobs (Cont.)
• Outsourcing and offshoring are perhaps the most
extreme examples of alternative staffing. Rather than
bringing people in to do the firm’s jobs, outsourcing and
offshoring send the jobs out.
• Outsourcing means having outside vendors supply
services (such as benefits management, market
research, or manufacturing) that the firm’s own
employees previously did in-house.
• Offshoring is a narrower term. It means having outside
vendors abroad supply services that the firm’s own
employees previously did in-house

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Executive Recruitment
Executive recruiters (also known as headhunters) are special
employment agencies retained by employers to seek out top-
management talent for their clients. For executive positions,
headhunters may be your only source of candidates. The employer
always pays the fees
• 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. Make sure the recruiter and you agree on what sort of person you
need for the position.
5. Never rely solely on the recruiter to do reference checking.
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 College Recruiting
College recruiting—sending an employer’s representatives to college campuses to
prescreen applicants and create an applicant pool from the graduating class—is an
important source of management trainees and professional and technical employees.
• On-campus recruiting goals • On-site visits
➢ To determine if the candidate is ➢ Invitation letters
worthy of further consideration ➢ Assigned hosts
➢ To attract good candidates
➢ Information packages
➢ Planned interviews
➢ Timely employment offer
➢ Follow-up

• Internships
Unlike on-site visits, students
get their training inside the
company and they may get a
job if they prove to be good
learners
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 Sources of Outside Applicants

Other Sources of Outside Applicants

Employee
Walk-ins
referrals

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Employee Referrals and Walk-ins
• 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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KEY TERMS
employment (or personnel) planning
trend analysis
ratio analysis
scatter plot
qualifications (or skills) inventories
personnel replacement charts
position replacement card
employee recruiting
recruiting yield pyramid
job posting
succession planning
applicant tracking systems
alternative staffing
on-demand recruiting services (ODRS)
college recruiting
application form
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 All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

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Based on what you have learned in this chapter; try
to solve these questions:

True/False
1- Publicizing an open job to employees through a
firm's intranet or bulletin board is known as job
posting.

2- Information on unemployment rate is essential for

forecasting inside supply.

3- Many firms use temporary hiring as a way to give

prospective employees a trial run before hiring them
as full-time workers
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 MCQs

1- An employer will most likely use a private

employment agency in order to ________.
A) receive assistance writing job ads
B) adhere to federal hiring practices
C) fill a specific job opening quickly
D) spend more time recruiting applicants

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2- A recruiting yield pyramid is the historical
arithmetic relationship between all of the following
EXCEPT ________.
A) internal and external candidates
B) offers made and offers accepted
C) recruitment leads and invitees
D) interviews and offers made

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3- When managers need to determine which
employees are available for promotion or transfer,
they will most likely use ________.
A) scatter plots
B) skills inventories
C) estimated sales trends
D) personnel forecasts

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 Answers
True/False:
1- T
2- F
3- T

MCQs:
1- C
2- B
3- B

For more questions please check the

students’ questions guide on the faculty
website.
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