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Human Resource Management

Learning Objectives
Last Week This Week
D1 – The Strategic Role of HRM D5 – Recruitment and Selection
D2 – Human Resource Planning D6 – Identifying Development Needs
D3 – Job Analysis and Design D7 – Compensation Management
D4 – Revision and Class Test D8 – Revision and Class Test

Next Week
D9 – Performance Management
D10 – Motivation and Working as a Team
D11 – Legal Requirements and Managing Diversity
D12 – Review and Final Exam
Class 5
Recruitment and Selection
Today’s Learning Objectives
Recruitment and Selection

LO5.1 - Explain the strategic importance of the recruitment and selection function.
LO5.2 - Discuss the constraints faced in a typical recruitment process.
LO5.3 - Discuss various recruiting methods for different types of jobs.
LO5.4 - Explore effective recruitment advertisements.
LO5.5 - List key measures for evaluating the effectiveness of the recruitment function.
LO5.6 - Discuss the types and usefulness of applicant screening tools in selecting employees.
LO5.7 - Outline the various steps in conducting an employment interview.
LO5.8 - Describe how to evaluate the effectiveness of the selection process.
Learning Objective

LO5.1 - Explain the strategic


importance of the recruitment
and selection function.
What is Recruitment?
• The process of finding and attracting capable
individuals to apply for employment who would be
likely to accept a job offer if/when one is made to
them.
• Recruiters are specialists within the HR department
of large organizations.
What is Selection?
 The process of picking or choosing the right candidate who
is most suitable for a vacant position

 The process of interviewing the candidates and evaluating


their qualities, which are required for a specific job, and
then choosing the suitable candidate for the position

 The selection of the right applicant for a vacant position


will be an asset to the organization, and will help the
organization achieve its objectives
Participation. Hand Up?!
What’s the difference between Recruitment and Selection?
Selection vs Recruitment –
what is the Difference?
 Recruitment is defined as a “positive” process
with its approach of attracting as many
candidates as possible for the vacant job

 Selection is defined as a “negative” process with


its elimination or rejection of as many
candidates as possible for identifying the right
candidate for the position
The Recruitment Process
1. Identify job openings
Generate Applications =
2. Identify job requirements Maximize the # in green
3. Determine recruitment methods
4. Obtain applications
5. Operate within Constraints
Selection

Recruitment
Strategic Importance of Recruitment
• Recruitment decisions have profound implications for the
strategic success of an organization
• Highly skilled and motivated employees are a source of
competitive advantage gained from human resources
• Benefits of diversity management provide vitality and
contribute to competitive advantage
• Focusing on employee development by developing and
promoting internally or hire externally and train
• Investing resources into recruitment impacts the quality of
recruits and the over all effectiveness of the process
The importance of recruitment
and selection in Canada
 An organization’s employees are the best way for it to gain and
maintain a competitive advantage. If the employees are an
organization’s most important asset, recruiters must be able to find
the best person for each position.
 Using “best practices” to recruit and select (valid, reliable and legally
defensible hiring practices that are based in empirical evidence rather
than on hunches or unproven practices) adds value to the
organization – and ultimately to the organization’s bottom line.
 Effective recruitment and selection practices can mean the difference
between a company’s success or failure
The Importance of Selection
 Hiring good resources can help increase the overall performance of
the organization
 If there is a bad hire and/or a bad selection process, then the work
will be affected and the cost incurred for replacing that bad resource
will be high
 The organization has to follow a proper selection process, as a huge
amount of money is spent on hiring the right candidate for a position
Selection Process Defined

A series of specific steps used to decide which recruits


should be hired
Begins when recruits apply for employment and ends with
the hiring decision
Steps involve matching the employment needs of the
organization and the applicant
Advantages of a Good
Selection Process
 It is cost effective and reduces a lot of time and effort

 It helps avoid any biasing while recruiting the right candidate

 It helps eliminate the candidates who are lacking knowledge,


ability and proficiency

 It provides a guideline to evaluate candidates further through


strict verification and reference-checking
Strategic Significance of Selection
Successful execution of an organization’s strategy depends on the
1. caliber of its employees

2. An organization’s selection decisions must reflect job requirements

Selection strategy must be well integrated with organizational


3. priorities

4. Selection strategy must recognize organizational constraints

5. Selection strategy should recognize labour market realities

6. Selection practices must be ethical


Learning Objective

LO5.2 - Discuss the


constraints faced in a typical
recruitment process.
Participation. Hand Up?!
What are some of the constraints or limits a recruiter
may have to address when making hiring decisions?
Constraints
on
Recruitment:
Organizational Policies
Promote-from-Within Policies
Gives present employees the first opportunity
Compensation Policies
Must adhere to stated pay ranges
Employment Status Policies
Some union settings may have limitations against hiring part-
time/temporary/contract
Policies against hiring someone with a second job
International Hiring Policies
Foreign jobs may need to be staffed with locals
Human Resource Plans
Consider organization’s overall plan to fill existing and
future positions, which jobs will be filled by recruiting vs.
internally?
Diversity Management Programs
Diversity management and employment equity programs
need to be taken into account
Recruiter Habits
A recruiter’s past success can lead to habits that rely on
certain methods, systems or behaviours; habits may also
perpetuate past mistakes or obscure effective alternatives
Environmental Conditions
Leading Economic Indicators - Statistics Canada
publishes the direction of the leading indicators
(upturns versus downturns in the national
economy)
Predicted Versus Actual Sales -Variations between
predicted and actual sales may require recruiting
efforts to be adapted accordingly
Employment Statistics -Monitor availability and
competition for workers to see workforce supply
by industry sector and job group
Job Requirements
Highly specialized workers are more difficult to find
People with more experience usually cost more to employ
Costs

Inducements
May be needed to encourage potential recruit’s interest
Examples: monetary, flextime, non-traditional benefits
Cost
Conference Board of Canada calculates:
 theaverage cost-per-hire the average time-to-hire
Executive $43,000 Executive 15 weeks
Management/Professional Management/Professional 9
$17,000 weeks
Technical $13,300 Technical 7 weeks
Clerical/Support $ 3,300 Clerical Support 4 weeks

The quality of hire is perhaps the most critical of all measurement parameters.
Any short cuts in the hiring and selection process can be devastatingly
expensive. 
Participation – Group Work!
In your groups, choose an occupation and explore the labour
market.
Website: https://www.jobbank.gc.ca/trend-analysis
Find out: Description, # of jobs available, requirements, median wage,
skills, and prospects
Learning Objective

LO5.3 - Discuss various


recruiting methods for
different types of jobs.
Quotes on Recruiting
A question…
• What do you think are the advantages and limitations of recruiting
from within?
Internal Recruiting

Advantages Weaknesses
• Employee is familiar with • Internal competition can
the organization reduce cooperation
• Employee is “known”, • No “new blood” so can
thereby increasing ability to prevent creative solutions
predict success
• Poor morale (possible
• Improves employee morale turnover) of employees not
& motivation promoted
Internal Recruitment Methods
Departing Employees (buy-back)
Employee Referrals
Internal Recruiting
Succession Planning
Job Replacement Map
External Recruiting

Advantages Weaknesses
• Able to acquire skills and • Newcomers may not fit in
knowledge that may not • Newcomers take longer to
be available within learn about the organization
• Newer ideas and novel • Usually more expensive
ways of solving problems • Lowered morale and
may emerge
motivation of current
employees
External Recruitment Methods
Advertising
Common, effective method of seeking recruits.
Cost is determined by the size of the advertisement
Layout, design, and copy of an advertisement should reflect the
image and character of the company
Walk-ins and Write-ins
Social Media
Employment and Social Development Canada (ESDC)
Private Employment Agencies
Professional Search Firms
Participation. Hand Up!
Blind ads - does not identify the employer
Under what circumstances would a blind ad be a useful recruiting
technique?
Choosing Recruitment Sources
• How does a recruiter choose which methods to use?
• How many recruits are needed?
• What is the skill level required?
• What sources are available?
• What has worked in the past?
• How much is the budget?
• Are there labour agreements that specify recruitment
options?
Group Work: Recruitment
Work with your group:
In small businesses, managers usually handle their own recruiting. What methods would you use for the following situations? Why?
(a) The regular janitor is going on vacation for three weeks.
(b) Your office assistant who manages all appointments and handles all filing in your office has the flu and won’t be in the office for 2 days.
(c) Two more salespersons are needed: one for local customers and one to open a sales office in Victoria, British Columbia.
(d) Your only chemist is retiring and must be replaced with a highly skilled individual.
(e) Next week, your only computer programmer/analyst plans to begin on a three-week leave to visit his sick mother in India. If his
mother’s health turns for the worse, he may be delayed by another week or two.
 
Learning Objective

LO5.4 - Explore effective


recruitment advertisements.
A question…
Think like a potential employee:
What do you think would make a job advertisement effective?
What attracts you to an ad?
What attracts you to a company?
You may have a clear
and detailed job
description, but how
to turn it into
an engaging job ad? 
4 Goals of a Recruitment
Marketing Strategy 1.make potential candidates
aware of your company and
opened positions

2. trigger their interest into your


company

3. make them consider you as


their next employer of choice

4. drive talent to apply to the


open positions your company has
available.
https://www.talentlyft.com/en/blog/article/268/top-10-best-job-ad-
examples
Recruitment Ads – Design Elements
• Company, job • When, where and how to apply
duties/responsibilities
• Unique design/layout will attract
• Qualifications: skills, attributes, attention and is consistent with
experience (state as essential or company image
preferred)
• Progressive policies, benefits,
• Size of ad conforms to the company strengths
position and salary range (cost
effective) • Top priority information first

• Adherence to Human Rights


Where Job Ads Fit Into
Recruitment Plans
Recruitment plan elements:
 Posting period
 Internal and external posting
 Employee referrals
 Placement goals
 Additional advertising resources
 Corporate websites
 Job boards
 Social media
 Job fairs
 Resume banks
 Using a headhunter
Learning Objective

LO5.5 - List key measures for


evaluating the effectiveness
of the recruitment function.
Evaluating Recruitment
Producing a system to track each recruitment method to see the number of
applicants, quality of applicants, acceptances, performance on the job, and even
retention saves recruitment time, effort, and money.
Ratio between the number of job offers and total applicants for each
recruitment method
Offers-to-Applicants Ratio
Cost per Hire - The dollar cost per person hired
Time Lapsed and time taken to fill a position per Hire
Quality of Hires and Cost - Quality of people hired from various sources e.g.
performance, absenteeism
Recruiting Yield Pyramid

Yield Ratio:
The percentage of applicants
5 New Hires
that proceed to the next stage
0
of the selection process.

Restaurant Yield Ratio:


100 Offers made (100:50 = 2:1)

The percentage of applicants


that proceed to the next stages
tend to be higher in restaurants
150 Candidates interviewed (150:100 = 3:2)

200 Candidates invited (200:150 = 4:3)

1200 Leads generated (1200:200 = 6:1)


Learning Objective

LO5.6 - Discuss the types


and usefulness of applicant
screening tools in selecting
employees.
Steps in the Selection Process

Step 1 – Preliminary Reception of Applications


Step 2 – Applicant Screening
Step 3 – Administration of Employment Tests
Employment Testing Considerations
Reliability - means that the test yields consistent results
Validity - Is the test accurately measuring what it is purported to measure?
Types of Tests:
 Personality Tests
 Ability Tests; Knowledge Tests
 Performance Tests
 Situational Judgment Tests
 Assessment Centres
 Computer-interactive Tests
More Steps in the Selection
Process
Step 4 – Employment Interviews
Step 5 – Realistic Job Preview

https://youtu.be/nU85zmwsqDM
Learning Objective

LO5.7 - Outline the various


steps in conducting an
employment interview.
Participation. Hand Up!
Tell us about the best job interview that you’ve ever
had. Why was it the best?
Tell us about the worst job interview that you’ve ever
had. Why was it the worst?
Stages in a Typical Interview
Employment Interviews
Formal, in-depth conversation conducted to evaluate the applicant’s
acceptability
Most widely used selection technique
Interviews may be conducted one-to-one, panel, or group interview
Unstructured interviews
Few if any planned questions
Lacks the reliability of a structured interview
Structured interviews
Pre-determined set of questions
May improve reliability and validity over traditional unstructured
interviews
Two Key Interview Approaches
Behavioural Description Questions
Based on principle that the best predictor of future behaviour is past
behaviour ex. “Describe a time when you…”

Situational Questions
Focus on situations likely to arise on the job
Applicants asked: “What would you do if…”
Interviewer Errors
Halo effect
Leading questions
Stereotypes
Contrast errors
Interviewer domination
Participation. Group Work!
In your groups, select an industry and position that your HR
Management team is interviewing candidates for. Create
one Behavioural Question and one Situational Question.
(Make sure you avoid the Interview Errors discussed.)
Present your questions to the class.
Stages in a Typical Interview
Learning Objective

LO5.8 - Describe how to


evaluate the effectiveness of
the selection process.
More Steps in the Selection
Process
Step 6 – Verification of References
Step 7 – Contingent Assessments
Step 8 – Hiring Decision
Evaluating the Selection
Quality and productivity of the workforce
Are supervisors/peers satisfied with hires?
Are training costs increasing?
Are managers spending too much time managing new
hires?
Are grievances, absences, and turnover too high?
Costs incurred are at a level appropriate to the organization
Changes required in the Recruitment and Selection process?
Today’s Learning Objectives
Recruitment and Selection

LO5.1 - Explain the strategic importance of the recruitment and selection function.
LO5.2 - Discuss the constraints faced in a typical recruitment process.
LO5.3 - Discuss various recruiting methods for different types of jobs.
LO5.4 - Explore effective recruitment advertisements.
LO5.5 - List key measures for evaluating the effectiveness of the recruitment function.
LO5.6 - Discuss the types and usefulness of applicant screening tools in selecting employees.
LO5.7 - Outline the various steps in conducting an employment interview.
LO5.8 - Describe how to evaluate the effectiveness of the selection process.
Next Class: Learning Objectives
Identifying Development Needs

LO6.1 - Explain the key purposes and differences between onboarding, training, and development.
LO6.2 - List the orientation and socialization aspects of onboarding and why they are important.
LO6.3 - Describe the systems approach to training.
LO6.4 - Explain the different approaches to needs analysis.
LO6.5 - Explain the principles of learning and how this knowledge impacts the choice of training programs.
LO6.6 - Demonstrate an understanding of strategic human resource development.
LO6.7 - Discuss how to assess whether learning actually occurred in training and development programs.
LO6.8 - Explore how human resource departments encourage and assist career planning.
THANK YOU!

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