RECRUITMENT

SUB-TOPICS • Define and explain the importance of recruitment.

• Explain the alternatives to recruitment.
• Explain the benefits of recruitment.
• Identify the methods in conducting internal and
external recruitment.

• Recruitment Issues
 Definition

• The process of attracting individuals on a timely basis, in

sufficient numbers and with appropriate qualifications, and
encouraging them to apply for jobs with an organization
(Mondy & Noe, 2005)

• The HR function concerned with locating and encouraging

potential applicants to apply for existing or future job openings
(Snell & Bohlander, 2007)

• Any activity carried on by the organization with the primary

purpose of identifying and attracting potential employees.

• Intended / deliberate activity to create a pool of job candidate.

 Recruitment Needs

• Planned
 Arises from changes in organization and retirement
policy
• Unexpected
 Arises during resignation, death, accident and illness
• Anticipated
 Refers to those movement in personnel which an
organization can predict by studying trends in the
internal and external environments
 Who Should Do the Recruiting?

•Centralized – head office performing all the function of recruitment

– HR recruiters or generalist (large firms)

– (departmental development, Human Resource Information Systems (HRIS),

employee relations, training and development, benefits, compensation,
organizational development, and employment).
•Decentralized
– Managers and/or Supervisors (smaller firms)
– Work Teams, or
– Recruiting Process Outsourcing (RPO)

– The practice of outsourcing an organization’s recruiting function to an outside

firm.
 Recruitment Process

1. Identify the needs or requirement of HR. If there is a shortage, the

company has to look for additional manpower.
2. Identify alternative to recruitment options (job sharing, overtime, etc). If
shortage can be overcome, company may not opt for recruitment
because it is costly and lengthy process.
3. If alternative to recruitment cannot fulfill the shortage of manpower, then
the company has no other choice but to carry out the recruitment process.
4. Identify sources of recruitment whether internal or external or by
combination of both sources.
5. Upon identifying sources, company should identify methods of
recruitment whether internal or external to reach the targeted candidates.
 Strategic Aspects of Recruiting

• Decisions about talent

 regardless of whether they pertain to recruiting, transferring,
promoting, developing, or deploying people—need to be
considered within the context of a business’s strategies and
priorities (cost leadership and differentiation strategies).
 Enriching the organization’s human resources
 Attitude towards recruiting handicap, minority groups, women,
aging worker, and present employees
 Strategic Aspects of Recruiting

• The broad factors that can affect a firm’s

recruiting strategy include a firm’s
 Recruiting abilities,
 whether to recruit externally versus internally,
 the labor market for the types of positions it is
recruiting for, including global labor markets, and
 the strength of a firm’s employment “brand” -It defines
the company’s values, what makes the company great,
and why employees love working there.
 The Global Labor Market

• Why Recruit Globally?

– To develop better products via a global workforce
– To attract the best talent wherever it may be
• International Recruiting Issues
– Local, national, and international laws
– Different labor costs
– Different pre-employment and compensation practices
– Cultural differences
– Security
– Visas and work permits

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–9

 Recruitment Methods

Definition:
The means by which potential employees can be attracted
to the firm and encourage them to apply the positions
advertised.

Methods:
1. Internal Recruitment Methods.
2. External Recruitment Methods.
Recruitment Methods

1. Internal Recruitment
– Searching qualified job candidates internally/within the
organization.
– Locating and encouraging internal potential applicants to
apply for existing or future job openings.
– Also known as recruiting / promoting within the
organization.
2. External Recruitment
– Searching qualified job candidates externally/outside the
organization to fill in job vacancies.
– Efforts made by the organization that look beyond its
own borders to find employees particularly when
expanding its workforce.
 Recruitment Methods

Definition:
The places where qualified individuals can be found.
Sources of Recruitment:
1. Internal Sources
Through existing employees (by doing promotion from within).
2. External Sources
a. High schools and vocational schools.
b. Community College.
c. Colleges and Universities.
d. Competitors in the labor market.
e. Former employees. f. Unemployed.
g. Disable people. h. Senior Citizens.
i. Pensioners. j. Self employed workers.
k. Retired Military personnel. L. Job Fair
 Should a Firm Recruit Internally or Externally?

• Most managers try to follow a policy of filling job

vacancies above the entry-level position through
promotions and transfers.

• By filling vacancies in this way, an organization can

capitalize on the investment it has made in recruiting,
selecting, training, and developing its current
employees, who might look for jobs elsewhere if they
lack promotion opportunities.

• There are Advantages and Disadvantages to both.

 Internal Recruitment Methods

1. Job Posting
A procedure for informing internal employees that job opening exist. The process of
communicating information about a job vacancy:
 A notice (designated posting centers, employee publications, special handouts, bulletin
board) stating that a vacancy exists.
 Outlining the specification and who should be contacted by those interested in applying.
2. Job bidding
A technique that permits internal employees in the organization who believe that they possess
the required qualifications to apply for the posted job.
3. Succession planning
The process of ensuring a suitable supply of successors for current and future senior of key jobs.
 Internal Recruitment Methods

4. HRIS

Data bank that contains the work history and qualifications of existing
employees to fill in the vacancies. Well developed, up-to-date system of
personnel records where HR manager can check through employees’ files to
identify any potential candidates.

5. Promotion

Involve movement of employees from a lower level position to a higher level

position with changes in duties, responsibilities, status and value (salary).

6. Transfer

Relocating the employees with similar job duties and responsibility. A transfer is
a lateral movement within the same grade from one job to another. It leads to
changes in duties and responsibilities, working conditions but not necessarily
salary.
 Advantages of Internal Recruitment

1. Save costs in terms of T&D – Organization can capitalize on past

investments (recruiting, selecting, training, and developing) in
current employees.
2. Organizations have a track record on existing employees.
3. Help organization retain experience and knowledge of present
employees.
4. Fosters advancement of members of protected classes within an
organization.
5. Improve employee motivation and performance.
4. Allow employees fulfill their career development goals.
5. Employees already familiar with the organization culture.
6. Rewards past performance and encourages continued commitment
to the organization.
8. Signals to employees that similar efforts by them will lead to
promotion.
5–16
 Disadvantages of Internal Recruitment

1. Internal breeding / cloning - The hazards of inbreeding of ideas and attitudes (“employee
cloning”) increase when no outsiders are considered for hiring.
2. Lack of KSA needed to perform higher level jobs - Current employees may lack the
knowledge, experience or skills needed for placement in the vacant/new position.
3. Lack of new ideas/creativity (too much reliance on internal sources).
4. Bias and discrimination.
5. Unqualified candidates - Organization have exhausted its supply of viable internal
candidates and must seek additional employees in the external job market.
6. Political infighting (struggle) for promotions.
7. Possible morale problem for those not promoted.
8. Need for strong management development program.
 Recruiting Talent Externally

• Labor Market
– Area from which applicants are to be recruited.
• Tight market: high employment, few available workers
• Loose market: low employment, many available workers
• Factors determining the relevant labor market:
– Skills and knowledge required for a job (job knowledge)
– Level of compensation offered for a job (pay, salary)
– Reluctance of job seekers to relocate
– Ease of commuting to workplace
– Location of job (urban or nonurban)

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–18

 Reasons for External Recruitment

1. Organizations do not have an adequately human

resource pool within the organization.
2. The job description do not encourage personnel
development.
3. Compensations for the different levels are unattractive.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–19

 External Recruitment Method

1. Advertisement
A way of communicating the employment needs within the firm to the public through media such as radio,
newspaper, television, industry publications.
2. Employment Agencies (Help job seekers to find the right job)
An organization that helps firms recruit employees and at the same time aid individuals in their attempt to
locate jobs. Public and private employment agencies; SPA).
3. Educational Institutions
@campus recruiting; source of young applicants with formal training but relatively little work experience.
4. Job Fairs
A recruiting methods engaged by a single employer or group of employers to attract a large number of
applicants for interviews by opening booth. Virtual job fairs – use networks such as LinkedIn, Facebook and
Twitter to inform potential candidates.
5. Online Recruitment
A recruitment method that is conducted online through internet. Job boards – Monster, Career Builder,
Indeed, GlassDoor.
 External Recruitment Method

6. Walk In Applicants, Unsolicited Applications and Resume (Contacting an organization for a job)
If an organization has the reputation of being a good place to work, it may be able to attract good
prospective employees to personally go to the company office without expensive recruitment efforts
(Industrial area).
7. Professional Associations
Associations in many business professions provide recruitment and placement services for their members .
8. Executive Search Firms (Company that assists employers in getting the right candidate)
Organizations that seek the most qualified executive available for a specific position and are generally
retained by the company needing a specific type of individual. Help employers find the right person for a job.
9. Social Media
Firms are utilizing social media website – to create company pages, post and advertise jobs, showcase their
company’s attractive features, and join group that target certain types of professionals, and can access a
new applicant pool – millennials.
10. Employees referral
A recommendation made by a current employee regarding a potential
job applicant through a word of mouth. It means using personal
contacts to locate job opportunities.
11. Independent Contractors
@ freelancers; self employed and do project work on a contract basis
for organization, work for multiple organizations and projects at the
same time.
 Advantages of External Recruitment

1. New ideas and expertise.

2. Lack of internal breeding.
3. Various sources available.
4. Wider choices of applicants by having a pool of
candidates.
5. Cheaper than training less skilled people within the
organization.
6. No group of political supporters.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–23

 Disadvantages of External Recruitment

1. Time consuming.
2. High cost in terms of T&D and recruitment process.
3. High rate of turnover.
4. Low performance from rejected applicants inside the
organization.
5. Cultural, belief and value differences.
6. May not select someone who fits with the organization.
7. May cause morale problems for internal candidates.
8. Longer adjustment or orientation period.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–24

 Improving the Effectiveness of Recruiting

Surveys
Surveys Recruiting
RecruitingMetrics
Metrics

Effectiveness
Effectiveness
of
of
Recruitment
Recruitment

Realistic
RealisticJob
JobPreviews Training
Previews TrainingRecruiters
Recruiters

Cost
Costof
ofrecruitment
recruitment
 Realistic Job Previews

– Informing applicants about all aspects of the job,

including both its desirable and undesirable facets.
– Realistic information about the job
– Positive benefits of RJP
• Candidate remain on the job and be successful, due to
fewer unpleasant surprise
• Improved employee job satisfaction
• Reduced voluntary turnover
• Enhanced communication through honesty and openness
• Realistic job expectations

5–26
 Survey

• To examine how satisfied they are with the process

 Managers
 Top performers
 New hired
 Candidates who turn downed jobs
 Recruiting Metrics

• Quality-of-Fill
 To investigate individual performance and retention
level
 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
 Improving the Effectiveness of External
Recruitment

• 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 5 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.
 Improving the Effectiveness of External
Recruitment

• Time-to-Fill
 Time to Fill
– 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

– Lower time-to-fill statistics are better

Improving the Effectiveness of External
Recruitment
 Improving the Effectiveness of External
Recruitment

• Cost of Recruitment (per employee hired)

SC AC  AF  RB  NC

H H
SC = source cost
AC = advertising costs, total monthly expenditure (example: $32,000)
AF = agency fees, total for the month (example: $21,000)
RB = referral bonuses, total paid (example: $2,600)
NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)
H = total hires (example: 119)

Cost to hire one employee = $467.23

 Improving the Effectiveness of External
Recruitment

• Yield Ratio
 Percentage of applicants from a recruitment source
that make it to the next stage of the selection process
 To find which sources produces qualified applicants.
– 100 resumes received, 50 found acceptable = 50%
yield.

SC AC  AF  RB  NC

H H

© 2010 South-
Western, a part of
Cengage
 Improving the Effectiveness of External
Recruitment

• Sources of Organizational Recruiters

– Professional HR recruiters
– HR generalists
– Work team members
• Requirements for Effective Recruiters
– Knowledge of the recruited job’s requirements and of
the organization
– Training as an interviewer
– Personable and competent to represent the
organization

5–34
Warning Signs of a Weak Talent “Bench”
 Recruitment Issues

• Recruiting and Developing Women

 Growth of women in the workplace
 Increase in females in management roles
 Stereotyping and gender conflicts
• Eliminating Women’s Barriers to Advancement
– Development of women’s networks
– Online e-mentoring for women
– Diminishing stereotyping of women
– Presence of women in significant managerial positions
– Accommodating families

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–36

 Recruitment Issues

• The “Glass Ceiling”

– Artificial barriers based on attitudinal or organizational bias that
prevent qualified women from advancing upward in their
organizations into management level positions.
• Glass ceiling audit factors:
– Upper-level management and executive training
– Rotational assignments International assignments
– Opportunities for promotion
– Opportunities for executive development programs at universities
– Desirable compensation packages
– Opportunities to participate on high-profile project teams
– Upper-level special assignments

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–37

 Recruitment Issues

• Recruitment of Minorities
 Educational and societal disadvantages
 Retention in organizations
 Affirmative action
• Career development for minorities is advanced by:
– Organizational support for the advancement of minorities
to significant management positions
– Provision of internships to attract minorities to
management careers
– Organization of training courses to foster the development
of minority’s managerial skills and knowledge.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–38

 Recruitment Issues

• Recruitment of the Disabled

– Increasing numbers of disabled in the workforce
– Stereotyping of the disabled versus their superior records
for dependability, attendance, motivation and performance
– Accommodations for physical and mental disabilities
– Others with less publicized disadvantages
• Recruitment of Older People
– Increasingly returning to the workplace
– Have valued knowledge, experience, flexibility and
reliability as employees

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–39

 Recruitment Issues

• Dual-Career Partnerships
 Couples in which both members follow their own careers
and actively support each other’s career development.
– Flexible work schedules
– Adaptive leave policies
– Work-at-home
– On-premises day care
– Job sharing

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–40

 Alternatives to Recruitment

1. Outsourcing
The process of transferring responsibility for an area of service and its
objectives to an external provider.
2. Contingent workers
Known as part-timers, temporaries and independent contractors.
3. Student attachment
Using practical students to overcome excess on work volume. Students that
doing their practical to complete their course can help the excess of work
volume.
The cost is effective as only allowance basis on work days provided but is
not suitable to be use as a long term solution.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–41

 Alternatives to Recruitment

5. Overtime
The most common used method of meeting short term fluctuations in
work volume such as increasing orders or early shipment delivery.
The management can give overtime and make schedule of overtime to
employees. It needs to be well organized to give everybody chances to
work overtime. The management can also limit the overtime hours to
employees that have been working for straight 18 hours to avoid issues
regarding quality.
3. Reorganize/reschedule the work
Reengineering the work process or restructuring the organization where
two (2) or more jobs handle by one employee.
6. Employee Leasing
Using this approach, a firm terminates some or most of its employees, a
leasing company then hires them, usually at the same salary, and lease
them back to the former employer, who becomes the client.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–42

 Tutorial activity (Journal Article)

1. Changing recruitment practices in Japanese

Companies
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SLIDES
3
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© 2010 South-Western, a part of Cengage Learning. All

rights reserved.