RECRUITMENT &

SELECTION
 Do you agree?

Great companies “first got the right people on the

bus, the wrong people off the bus, and the right
people in the right seats – and then they figured
out where to drive it.”

Good to Great: Why Some Companies Make the Leap and Others Don’t –
Jim Collins
Human Resource Planning
 Human Resource Planning is a Process by which
an organization ensures that
 Right number of people
 Right kind of people
 At the Right time
 At the Right place
 Doing the Right things for which they are suited for
achieving the goals of the organization.
Factors affecting Human Resource Planning

 Sales and production forecasts

 The effects of technological change on task needs
 Variations in the efficiency, productivity, flexibility
of labor as a result of training, work study,
organizational change, new motivations, etc.
 Changes in employment practices (e.g. use of
subcontractors or agency staffs, hiving-off tasks,
buying in, substitution, etc.)
Factors affecting Human Resource Planning

 Variations, which respond to new legislation, e.g.

payroll taxes or their abolition, new health and
safety requirements
 Changes in Government policies (investment
incentives, regional or trade grants, etc.)
Human Resource Planning
 Two Steps
 Demand Forecasting
 Supply Forecasting
Demand Forecasting
 Delphi Technique
 Nominal Group Technique
 Ratio Analysis
 Work Study Method
Demand Forecasting
 Delphi Technique
 Very important technique used for estimating demand of
human resources.
 Takes into consideration human resources requirements
given by a group of experts i.e. mangers.
 The human resource experts collect the HR needs,
summarises the various responses and prepare a report.
 This process is continued until all experts agree on
estimated human resources requirement.
Demand Forecasting
 Nominal group technique
 Problem solving process involving problem identification,
solution generation and decision making
 Used in group of many sizes who wants to make their
decision quickly, as by a vote, but want everyone’s opinions
taken into account
Demand Forecasting
 Ratio Analysis
 Demand for human resources is also estimated on the basis
of ratio of production level and number of workers
available.
 This ratio will be used to estimate demand of human
resources.
 Estimated production for next year = 1,40,000 units
Estimated no. of workers needed (on the basis of ratio-trend
of 1: 200) will be = 700
Demand Forecasting
 Work Study Method
 This technique is suitable where the estimated work-load is

easily measureable.
 Under this method, estimated total production and activities

for a specific future period are predicted.

 This information is translated into number of man-hours

required to produce per units taking into consideration the

capability of the workforce.
 Past-experience of the management can help in translating

the work-loads into number of man-hours required.

Demand Forecasting
I. Estimated total annual production = 300,000 units
II. Standard man-hours needed to produce each unit
= 2 hrs
III. Estimated man-hours needed to meet estimated
annual production (i x ii) = 600,000 hrs
IV. Work ability/contribution per employee in terms
of man-hour = 1,500 units 
V. Estimated no. of workers needed (iii / iv) =
600000/1500 = 400
Supply Forecasting
 Internal Supply
 External Supply
Internal Supply
 Present Supply
 Qualification inventories are one way of forecasting inside

candidates
 A list of employees, their education, any internal training,

special skills, and succession planning for promotion is

beneficial to the future planning.
 A second method is referred to as personnel replacement.

 This is defined as the employee's present performance and

the desire for promotion to additional positions based on

performance, skills and experience.
External Supply
 There are numerous factors to consider for external
candidates
 They include the geographic area of the company,

potential candidates graduating

 From college, individuals entering or leaving the workforce,
 The level of skills and experience required to perform the
internal jobs and the competing employers for the same
skill set.
 This information is beneficial in determining
competitive benefits and salary offerings.
 Recruitment is not about filling jobs that are currently
vacant – it is about making a continuous, long-term
investment to build a high quality workforce capable of
accomplishing the organization’s mission now and in
the future

Any example you know of?

Recruitment is a critical management function that all
levels of the organization need to be involved in
planning and implementation
 Global Sourcing is changing the shape of the
business world!!!

Features of the ‘New’ World

• Global sourcing barriers fading away
• Disappearance of the Time Zones
• Transformation of the work processes into pieces
that can be constructed and deconstructed
 Changing Role of HR: Modified Recruitment Structure

Currently organisations use one or more of the following staffing

structures:

Decentralized Staffing Model —Allows individual business units to

develop and fill their own staffing plans.

Hybrid Staffing Model —Combines decentralized approach with certain

centralized (or shared services) components.

Outsourced Staffing Model —Promotes efficiency, consistency and

potential cost saving

HR Business Partner Structure —HR business partners work with

designated business units.
 Pros and Cons of Recruiting Department Structures

Centralized Hybrid Decentralized

Pros Cons Pros Cons Pros Cons
•Facilitates •Creates a •Enables a mix •Creates •Improves •Creates
practice and disconnection of process resource and communication resource
lead sharing between efficiencies process with the line inefficiencies
•Enhances recruiters and and inefficiencies •Enables •Discourages
Consistency business units connection •Distance recruiters to candidate and
•Enables with the line function from learn business practice sharing
Standardization •Creates the support of across the
staffing corporate department
resource headquarters •Lacks process
flexibilities efficiencies of
centralized
structures
•Reduces
consistency and
Corporatestandardization
Leadership Council
 Three Main Functions of Recruitment Process are:

 Attract a pool of suitable candidates

 Deter unsuitable candidates from applying
 Create a positive image of the organization
Internal Recruitment

Vs.

External Recruitment
 Recruitment from Inside
Advantages
 Career plan for existing workers &
morale
 Motivator for good performance
 Relatively easier assessment of
applicants as information is available
 Reduced recruitment costs (travel
expenses)
 Causes succession of promotions
 Have to hire only at entry level.
Disadvantages
 Existing employees may not bring-in new ideas
to their new job (inbreeding).
 Lower level employees may not have capacities
required at higher jobs.
 High-powered employees might not be able to
wait long enough for their turn (“political”
infighting for promotions).
 Internal strife for the post might impact
negatively on possibilities for team work
among existing employees.
 Need for management development program
 Recruitment from Outside
Advantages Disadvantages
 Larger pool of talent.
 Relatively higher costs.
 Objectivity and extensive effort put into the
process likely to lead to a better candidate  Risky of getting the wrong person.
selection.
 May cause morale problems for
 New industry insights, ideas, way of thinking internal candidates not selected.
& approaches might challenge existing norms
and act as catalyst in continuous
improvement/ innovation.

 Cheaper and faster than training professionals.

 No group of political supporters in

organization already.
 Sourcing Channels

External
Internal
• Advertisement
• Job Posting • Placement Agencies
Recruitment methods
• Skills Data Base • Internships
• Employee Referrals by Other • Job Sites
Departments • E-Recruiting
• Campus
• Data Base
• Alumni
• Associations/Interest Groups/
Networks
• Temporary Leasing
• Employee Referrals
• Passive Recruiting (Unsolicited application)
• Career Fairs
 Despite the importance of strategic workforce planning, most HR
departments have not yet developed a formal plan to participate
in their companies’ business cycles.

 Ninety percent of HR departments have no independent planning

and forecasting function, and many HR departments have no
formal staffing strategy of any kind.

 Rather, they tend to operate independently of the business cycle,

developing reactive staffing solutions instead of proactive
strategies that anticipate movements in the business cycle.
 Recruitment Strategy: A Six Step Approach

Recruitment strategy should answer the following

questions related to their target populations:
1. Who is being targeted through the recruitment?
2. Where is the appropriate place to recruit clients?
3. When should recruitment be done?
4. What messages should be delivered during recruitment?
5. How should the messages be delivered?
6. Who is the most appropriate person to do recruitment?
 Talent Forecasting

1. Business strategy —Integrates projected company growth in

terms of activity, output and revenue.

2. Human capital need —Translates business strategy into staffing

requirements.

3. Projection of future vacancies — Based on difference between

staffing requirements and current capacity.
Strategic Recruiting Stages
Human Resource Planning
• How many employees are needed?
• When employees will be needed?
• What specific KSA’s (Knowledge, Skills
& Abilities) are needed?

Organizational Responsibilities
•HR staff & operating managers
•Recruiting presence and image
•Training of recruiters
Strategic Recruiting Decisions

• Organizational-based Vs. outsourcing

• Regular Vs. flexible staffing
• Recruiting source choices

Recruiting Methods

• Internal methods
• Internet/ web-based
• External methods
Class Activity

 Develop Job Description & Job Specification

 Marketing Executive
 Marketing Manager
 Finance Executive
 Account Executive
 Administrative Officer
 Administration Manager
 Selection
• The process of assessing candidates and appointing a
post holder

• Applicants short listed – most suitable candidates

selected

• Selection process – varies according to organisation.

Selection Tools
• Interview – most common method
• Psychometric testing – assessing the personality of the applicants –
• Measures of personality
• Honesty test (substitute to polygraph)

• Aptitude testing – assessing the skills of applicants

• Measures of proficiency, achievement, or knowledge
• Measures of mental ability or intelligence

• In-tray exercise – activity based around what the applicant will be

doing
• Presentation – looking for different skills as well as the ideas of the
candidate
• Assessment Centres – battery of tests
Choice of Selection Methods
• Number of applicants
• Criticality of position
• Cost/effort involved
• Predictive validity
• Extent of preparation required
 When using psychological tests..
• Clearly identify the objectives
• Uses a battery of test that can give range of information
• Have trained psychologists conduct and interpret tests
• Use personality testing as an adjunct to the recruitment or
career planning process and exploit its developmental
power
 Determining Selection Standards
Sources of Information about Applicants
• Application Forms
• Reference Checks
• Physical Examination
Selection Tests (Reliability & Validity)

The Selection Interview

 Recruitment: Return on Investment (ROI)

• Recruitment return on investment (ROI)

understands and compares the elements, costs and
risks of a recruitment related project to the
expected benefits
 What to Measure: Hiring
Recruiter Effectiveness
RE = RT+TF+HR+C/H +QH
N

RE = Overall Recruiter effectiveness

RT = Response Time
TF = Time to Fill
HR = Hire Rate
C/H = Cost Per Hire
QH= Quality of Hire
N = Number of Indices Used.
HR Accounting
 Cost Per Hire
CPH = SC+ST+MC+PC+TR=RL+MS
H

SC = Sourcing costs (Advertising + Agency Fees + Employee Referrals)

ST = Staff Time [Travel + Interview ] x [Recruiter Pay and Benefits] or External
Agency Fee
MT = Management Time x Managements Pay and Benefits
PC = Processing Costs/ Operating Expenses
TR = Travel Cost of Applicants
RL = Relocations Costs
MS = Miscellaneous
H = Full Time or Part Time Employees Hired
HR Accounting
 Quality of Hire (QH)

QH = PR + HP + HS
N

PR= Average job performance ratings of new hires

HP= Percent of new hires promoted within one year
HS = Percent of new hires retained after one year
N = Number of indicators used

Satisfaction of new employees with hiring.

Satisfaction of managers with new employees.

HR Accounting
Time to Fill
TF =RR – OD

RR = Date requisition is received

OD = Date offer is accepted

Number Hired (Hit Rate)

HO = OA/OE

OA = Offer accepted
OE = Offers extended
HO = Percentage of offers that result in hire
HR Accounting
 The Employment Value Proposition
The set of attributes that the labor market and employee perceive as the value they gain
through employment in the organization.

Rewards Opportunity Organization Work People

Compensati Development Customer Prestige Business Travel Camaraderie
on Opportunities Diversity Innovation Collegial Work
Health Future Career Empowerment Job Impact Environment
Benefits Opportunities Environmental Job-Interests Coworker Quality
Retirement Organization Responsibility Alignment Manager Quality
Benefits Growth Rate Ethics Location People
Vacation Meritocracy Great Employer Recognition Management
Organizational Recognition Work Life Senior Leadership
Stability Well know Brand Balance Reputation
Market Position
Product/ Service Quality
Organization Size
Social Responsibility
Technology Level
Corporate Leadership Council