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Human Resource Planning & Recruitment



Division of Chapters
Current Chapter
Personnel Planning & Recruiting Techniques

Chapter 6
Selection techniques, tests, background checks and physical exams

Chapter 7



Concepts to be Discussed
HRP Planning & Forecasting
Tools for projecting personnel needs Choice of Internal or External Candidates

Issues in Recruitment Measuring Recruitment Effectiveness



Planning & Forecasting Personnel Planning

Once JD & JS is made, the next step is filling positions Hence, Personnel Planning or HRP But what is HRP?
It is a process of deciding what positions the firm will have to fill This should flow out of strategic plans Big Qt Position filling through Internal or External Candidates

Some important factors in forecasting personnel needs

Changes in Strategy Mergers & Acquisitions Revenue forecasts Projected turnover Upgrade & downgrading products Technological changes Departmental financial resources Etc..

HRP & Succession Planning?

2/26/2014 HRM 4

Indian Banking Industry Short on Manpower Planning

For next 10 years Indian Banks will require 1 million people to keep their branches running In year 2013-14 9 Chairmen & MDs are retiring Govt has relaxed norms for recruiting executive directors Earlier 2 years of tenure; now 6 months are enough. In next 4 years :
80% of General Managers 67% of Deputy General Managers 58% of Assistant General Managers 44% of Chief Managers
Will retire

Employee cost at PSB is 150 times of Pvt Sector Factors keeping PSB at disadvantage are :
Compensation Package Skill Set Skewed Age Profile Restrictive Deployment PMS

Most Banks rely on B-Schools to recruit fresh talent Khandelwal Committee & Alok Nigam Committee
2/26/2014 HRM 5

Steel Industry Lacking Sufficient Leaders

Chandra Shekhar Verma
Chairman SAIL Chairman & MD NMDC


Both are governed by Steel Ministry

Primarily Steel Producer Also has iron ore mines(2nd Largest in India)

Iron Ore Producer (Largest in India) Also thinking of starting Steel Plants

Can there be one Chairman & MD for Both? Think of Aviation Industry
Air India & AAI Airport Regulator

Steel Industry
Pricing Fixing No Regulator, only Ministry
2/26/2014 HRM 6

Personnel Plans - Steps

3 steps :
Personnel Needs Supply of Inside Candidate Supply of Outside Candidates



Forecasting Personnel Needs - Tools

Trend Analysis
Study of firms past employment needs over a period of years to predict future needs Variants : Sub-group based, Yearly or Half-yearly etcetc..

Ratio Analysis
Forecasting future staffing needs based on historical ratios Issue of Causality Ex : Salesman & Sales volume

Scatter Plot
Graphical method to identify relationship between 2 variables Ex : Business growth & Staffing level Linear Regression Multiple Regression

Computerized Forecast Where to use?

Big Organizations Organizations in Dynamic Environment
2/26/2014 HRM 8

Forecasting Supply of Candidates :Inside & Outside



Forecasting Supply of Inside Candidates

Main tasks over here:

Which current employees are eligible for posts? Hence, Qualification Inventories!

Charts in Organization
Personnel Replacement Chart Position Replacement Chart

Computerized Information System

SAP, PeopleSoft

Matters of Privacy
2/26/2014 HRM 10

Forecasting Supply of Outside Candidates

Factors affecting supply of outside candidates

Willingness to join Ability to pay Qualification/Geography
Receptionist Faculty Director

Unemployment rates Demand/Supply Etc..

2/26/2014 HRM 11

Winners of Golden Peacock Hr Excellence Award 2012

Name of the company Tata Motors Ltd Jamshedpur Central Bank of India Mumbai Infosys BPO Mahindra & Mahindra Financial Service ltd, Mumbai Bangalore traffic Police Birla Sun life Company Pvt Ltd Mumbai CMC Ltd New Delhi Reliance Industries Jamnagar SAIL Bokaro Sector Automobile Banking Bangalore Financial Services Govt Insurance IT/ITES Oil & Gas Steel











What is Recruitment?

Employee Recruitment
It is finding and attracting applicants for the employers open positions Generating pool of candidates for the job

How you will attract job candidates? What means you will use to attract job candidates?
Job Posting or Job Advertising
It is an act of informing potential recruits about job openings

Before you go for Job Posting what needs to be clear at your end?
Requirements of Job and kind of person required for job (Job Analysis JD & JS)

2/26/2014 HRM 15

Realistic Job Preview

Traditional Preview
Sets Initial Job Expectations too high

Realistic preview
Sets Job Expectation realistically Job may or may not be attractive, depending on individuals need Some accept, some reject the offer Work experience conforms expectation

Job is typically viewed as attractive, stimulating, and challenging

High rate of acceptance of job offers Work experience disconfirms expectations Dissatisfaction and realization that job is not matched to needs Low job survival, dissatisfaction, frequent thoughts of quitting
2/26/2014 HRM

Satisfaction; needs matched to job High job survival, satisfaction, infrequent thoughts of quitting

What factors will affect Recruitment Process?




Factors affecting Recruitment Process?

External Factors
Government / Union Restrictions
Reservations, Quotas, Age Limits, Type of Workers, Etc.

Labor Market Conditions

Unemployment Rate

Composition of Labor Force

Diversity Issues & Compliance

Location of Organization
Urban, Rural, Semi-Urban,..Etc..
2/26/2014 HRM 18

Factors affecting Recruitment?

Internal Factors : Orgs view about Recruiting?

Organizations Policies & Practices


Promotion from within Nepotism Diversity Consciousness Organizations Image Preference of Recruits Geographic Preferences Salary Status (Education Base) Choice of occupation Choice of Organization in that Occupation
HRM 19

Potential Employees view of Recruiting

Methods of Recruiting Candidates




Recruiting Internal Candidates

Finding internal candidates

Job posting Succession planning Talent management

Rehiring Internal Sources :

Knowledge about candidates strengths & weaknesses Will lead to more commitment Morale increase Will require less orientation

May not be selected & hence demoralized Inbreeding
2/26/2014 HRM 21

Recruiting Outside Candidates

Internet Employment agencies

Government employment exchange Private agencies

Temp agencies Executive recruiters On demand recruiting services College recruiting Referrals & Walk-ins
HRM 22


Recruitment Ad
Help Wanted
Telephone Sales Women, age 25-40, needed for telephone sales. Must have high school diploma and good credit rating. Call Mr Smith at Acme Manufacturing Co.Inc., 555-3333




Recruitment Ad
Help Wanted
Telephone Sales Women, age 25-40, needed for telephone sales. Must have high school diploma and good credit rating. Call Mr Smith at Acme Manufacturing Co.Inc., 555-3333




Recruitment Ad

Help Wanted : Telephone Sales

Women(Not a bonafide occupational qualification), age 25-40(is age requirement a business necessity? If not than you are subject to bias suit), needed for telephone sales. Must have high school diploma(is it necessary for successful job performance? Can you prove it?) and good credit rating(is the persons credit rating important for telephone sales? Think). Call Mr Smith at Acme Manufacturing Co.Inc., 555-3333
2/26/2014 HRM 25

Construct a Recruitment Ad
For a Managerial Position For Best Employer to work for

Groups : IBE Deadline : 30/1/13 till 5 PM Mode of Submission

PPT Through E-mail
2/26/2014 HRM 26

Off-Shoring/Outsourcing Recruitment




Off-Shoring/Outsourcing Recruitment

Issues :
Instability in Country Cultural Misunderstandings Security &Privacy Concerns
Credit or Debit Card Number

Foreign Contract, Liability & Legal Systems Dealing with Contractual Agencies Requirement of Specialized Training

Recruiting a Diverse Workforce

Single parents
Movie Suggestion : Erin Brokovich

Older Workers Recruiting minorities and women Differently-abled

2/26/2014 HRM 28

Measuring Recruiting Effectiveness




Measuring Recruiting Effectiveness

What to measure?
How many applicants did we generate through each recruitment sources? Quality of candidates also

How to measure?
Assess applicants from each source on various parameters!

Recruitment yield pyramid

2/26/2014 HRM 30

Recruitment Yield Pyramid

Ratios :
Lead generation : Invitation Invited candidates : Interviewed Candidates Interviewed Candidates : Offers Made Offer Made : Actual Hires




New Hires

Offers Made

Candidates Interviewed

Candidates Invited

Leads Generated
2/26/2014 HRM 32

Cost-Benefit Analysis of Recruitment




Cost Benefit Analysis : Recruitment

The formula :

QH Quality of recruits Hired PR Average Job Performance Rating HP - % of new hirees promoted within a year HR - % of new hirees retained within a year N Number of indicators used
HRM 34


So, What all goes in process of Recruitment?




What all goes in process of recruitment?

Identifying position Generating JD & JS Constructing an ad Choosing the media Deciding on recruitment agencies Filling the position Getting the person on board




10 Best Jobs in 2012

10. Mathematician - $99,191 9. Computer System Analyst $78,148 8. Online Advertising Manager - $87,255 7. Occupational therapist - $72,110(New) 6. Audiologist - $67,137 5. Financial Planner - $1,04,167 4. Dental Hygienist - $68,109 3. HR Manager(Surprise) - $99,102(New) 2. Actuary - $88,202 1. Software Engineer - $88142
2/26/2014 HRM 37

Worlds greatest jobs


Bike Ride Photographer for Google Maps Director of Fun at the museum Game Tester Candy tester Wine tester & Blogger Resort waterslide tester Luxury bed tester Paradise Island Care taker
HRM 38

Concepts that were discussed

HRP Planning & Forecasting Tools for projecting personnel needs

Trend Analysis Ratio Analysis Scatter Plot

Choice of Internal or External Candidates Recruitment

What is recruitment? Factors affecting recruitment? Methods of recruitment RJPs

Measuring Recruitment Effectiveness

Recruitment Yield Pyramid Cost Benefit Analysis of Recruitment
2/26/2014 HRM 39

Know your Law




The Maternity Benefit Act, 1961




Maternity Benefit Act, 1961

Object of Act
To protect the dignity of motherhood by providing for the full and healthy maintenance of woman and her child when she is not working

Applicability of Act
It applies to every establishment, being factory, mine or plantation in which 10 or more people were employed in previous 12 months




Conditions for Eligibility of Benefits

Conditions for eligibility of benefits
Women, whether married or unmarried, are eligible for maternity benefits when she is expecting a child She should have worked for her employer for at least 80 days in last 12 months

Display of Act
Employer must display Maternity Benefit Act, 1961 in local languages for employees Failure to display will lead to imprisonment extending upto 1 year or fine
2/26/2014 HRM 43

Conditions for Claiming Benefits

Conditions for claiming benefits:

10 weeks before the date of her expected delivery, she may ask for lighter workload. At this stage certificate of pregnancy must be produced Written notice to employer 7 weeks before expected date of delivery that she will be absent from work (6 weeks before & 6 weeks after) She should mention name of person to whom payment will be made on her behalf Payment for 6 weeks before delivery should be given before hand Payment of 6 weeks after delivery should be given within 48 hours. Proof of child birth need to given at this stage She will be given 2 nursing breaks (15 mts each) to nurse the child, till the child is 15 months old Her employer cannot discharge her or change her conditions of service while she is on maternity leave
2/26/2014 HRM 44

Cash Benefits

Cash Benefits
Leave with average pay for 6 weeks before the delivery Leave with average pay for 6 weeks after the delivery Medical bonus of 25 Rs, if employer does not provide free medical care to women Additional leave with pay up to 1 month in case of illness, miscarriage or premature birth due to pregnancy In case of Miscarriage, 6 weeks leave with average pay from the date of miscarriage
2/26/2014 HRM 45

Non Cash Benefits/Privileges

Light work for 10 weeks before the date of delivery, if she asks for it 2 nursing breaks until child is 15 months old No Dismissal or Discharge while she is on maternity leave No changes in conditions of work while on maternity leave Pregnant women discharge or dismissed may still claim maternity benefit from the employer Exception
Women dismissed for gross misconduct lose their right under the act for Maternity Benefit
2/26/2014 HRM 46

Forfeiture of Maternity Benefit

If women works in establishment during her leave period than she shall forfeit her claim to the maternity benefit for such period Penalty
If employer fails to pay any amount or Discharges and dismisses women employee
Jail 3 months to 1 year Fine 2000 Rs to 5000 Rs