Professional Documents
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chapter
This chapter emphasizes the fact that increasingly firms compete on the basis of the talent of their
employees. Even though workers seemed to be in plentiful supply following the recession of 2001,
the economy has recovered and many industries suffer serious shortages of qualified workers. As
the baby boomers begin retiring, the problem will worsen unless firms expand their talent pools,
that is, the number and kinds of people able to contribute to the success of the organization, even
if they are located globally.
This chapter encourages readers to recognize that procuring competent employees requires
positive recruitment efforts and the development of a variety of recruitment sources. These sources
must consider not only the nature and conditions of the external labor market, but also the
presence of qualified employees who are available to fill vacancies through internal promotions
or transfers. A section of this chapter is concerned with the advantages and disadvantages of filling
vacancies with employees selected from within the organization.
Finally, the chapter describes the phases of career development and examines career
development programs for special groups. An appendix at the end of the chapter on personal career
development is designed to appeal to the personal needs of the students, as well as to provide
information they can use in managing career development programs.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 55
LEARNING OUTCOME 1 Describe how a firm’s strategy affects its recruiting efforts.
LEARNING OUTCOME 5 Explain how career management programs integrate the needs of
individual employees and their organizations.
LEARNING OUTCOME 6 Explain why diverse recruitment and career development activities
are important to companies.
LECTURE OUTLINE
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
56 Part 3: Developing Effectiveness in Human Resources
• Some companies are now posting podcasts profiling the working lives of their
different employees. A number of companies have held career fairs inside of
the virtual Web site Second Life.
4. Job Fairs
Job fairs can be a good way to cast a wide net for diverse applicants in a certain
region. At a job fair companies and their recruiters set up booths, meet with
prospective applicants, and exchange employment information. Often the fairs are
industry specific.
5. Employee Referrals
• Employee referrals are the primary way most job positions are filled. Some
potential negative factors associated with employee referrals include inbreeding
and the violation of EEO regulations.
• Ask students what they think about employee referrals, including nepotism. Is
it ethical to give vacancy information to family and friends needing jobs at your
own company? Ask students what drawbacks and advantages they perceive
with this practice. Remind them that when HR personnel are hiring globally,
they need to realize that in other cultures, including Asia and the Middle East,
nepotism is the norm. Even in the United States, nepotism gets mixed reviews,
in part, because family members are in an ideal position to pass job knowledge
and skills on to one another.
6. Rerecruiting
Rerecruiting is the process of keeping track of and maintaining relationships with
former employees to see if they would be willing to return to the firm.
Chapter 5: Expanding the Talent Pool: Recruitment and Careers 59
from which candidates are recruited and hired as well as the costs of each source. The
time it takes to recruit various employees from various sources as well as the quality of
employees are other statistics recruiters collect and study.
1. Quality of Fill Statistics
As we indicated in the appendix to Chapter 2, hiring quality employees is a
primary concern of recruiters. Firms have attempted to develop a quality-of-fill
statistic they can use to improve their recruiting processes. The following is one
suggested way of calculating an annual quality-of-fill metric for an organization.
Quality of Hire = (PR + HP + HR) / N
PR =Average job performance rating of new hires
HP = % of new hires reaching acceptable productivity with acceptable time frame
HR = % of new hires retained after one year
N = number of indicators
Example:
PR = Average 3.5 on a 5.0 scale = 70%
HP = Of 100 hires made one year ago, 75 are meeting acceptable productivity
levels = 75%
HR = 20% turnover = 80% HR
N=3
Quality of Hire = (70 + 75 + 80) / 3 = 75
The result is a quality level of 75 percent for new employees hired during the year.
2. Time to Fill
The time-to-fill metric refers to the number of days from when a job opening is
approved to the date the person ultimately chosen for the job is selected.
1. Yield Ratios
• A yield ratio is the percentage of applicants from a particular source (e.g., an
employment agency) that make it to the next stage of the selection process. A
yield ratio can be revised for each subsequent stage in the selection process to
arrive at a final index for each source. Higher ratios indicate better recruiting
sources.
2. Costs of Recruitment
• The cost of recruitment is easy to calculate:
SC AC + AF + RB + NC
=
H H
where AC = advertising costs, total monthly expenditure (example:
$28,000)
AF = agency fees, total for the month (example: $19,000)
RB = referral bonuses, total paid (example: $2,300)
NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)
H = total hires (example: 119)
62 Part 3: Developing Effectiveness in Human Resources
St. Clair, General Arthur, failure of expedition against Indians made issue
by Jeffersonians in campaign of 1792, 175.
Sullivan, James, lawyer, pamphleteer, and orator for the Democrats, 145.