HRM501

Module 4:
Human Resource Planning and Recruitment
 Human Resource Planning
 Human Resource Planning Process its Techniques
 Rightsizing the enterprise and outplacement of employees
 Recruitment & Selection: Definition
 Recruitment & Selection: Process
 Induction and Placement
 Planning & Forecasting
 Effective recruiting internal and external sources
 Recruiting more diverse workforce
Human Resource Planning
 The process of deciding what positions the firm will have to fill, and how to fill
them.

 The process of analyzing and identifying the need for and availability of human
resources so that the organization can meet its objectives.

 HRP should flow from the firm’s strategic plans. Plans to enter new businesses,
build new plants, or reduce costs all influence the types of positions the firm will
need to fill or eliminate.

 The focus of HR Planning is to ensure the organization has the right number of
human resources, with the right capabilities, at the right times, and in the right
places and culturally fit.
Human Resource Planning
 The process – including forecasting, developing and controlling by which a firm
ensures that it has the right number of people, the right kind of people, at the right
places, at the right time, doing work for which they are economically most useful.
– Geisler
 The process by which an organization ensures that it has the right number and
kind of people, at the right place, at the right time, capable of effectively and
efficiently completing those tasks that will help the organization achieve overall
objectives. –Decenzo and Robbins

 Human Resource Planning ensures that the organization knows and gets what it
wants in the way of the people needed to run the business now and in the future.-
Michael Armstrong
Steps in Recruitment and Selection Process
Linking Employer’s Strategy to Plans
Employer’s Strategic Plan
Diversify? | Integrate vertically? | Expand geographically? On what basis should we compete?

Employer’s
Employer’s
Marketing and Production
Functional
Functional Financial Plan HR Plans
Sales Plan
Sales Plan Plan
Plan

Training &
Personnel Compensation Labor Security and
development
Plans Plans Relations Plans Safety Plans
Plans

Personnel Recruitment Employee

Forecasts Plans Selection Plans
HR Planning Process
Review Organizational Objectives & Strategies

Scan External
Environment for Assess Internal
Labor Supply Workforce
changes

Develop Forecasting

Identify
Determine People
Organizational need
Available
for people

Formulate HR Strategies and Plan

Techniques used in HR Planning & Forecasting
| HR Demand Forecasting Techniques
Trend Analysis
Ratio Analysis
Statistical Analysis Scatter Plot
Computerized Forecast
Survey Technique
Expert forecasting Delphi Technique
Nominal Group
Technique

Other Techniques New Venture Analysis

Managerial judgment
Techniques used in HR Planning & Forecasting
A) Forecasting Personnel Needs:
Managers should consider the factors such as projected turnover (resignations and
dismissals), decisions to up-grade(or downgrade) products or services, technological
changes, and the department’s financial resources along with the revenues forecasting.
Then only estimate the size of the staff required for the company.
Statistical Analysis:-
Trend Analysis: Study of a firm’s past employment needs over a period of years to
predict future needs. For ex: You might compute the no. of employees at the end of
each of the last Five Years, or perhaps the no. in each functions (like Sales, Service,
Marketing). The purpose is to identify trends that might continue into the future.

Ratio Analysis: A forecasting technique for determining future staff needs by using
ratios between, for ex, sales volume and no. of employees needed. For ex: suppose a
sales person traditionally generates $ 500,000 in sales. If the sales revenue to sales
person ratio remains the same, you would require six new people next year(each of
whom produces an extra $500,000) to product a hoped-for extra $3 million in sales.
Techniques used in HR Planning & Forecasting
 Scatter Plot: A graphical method used to help identify the relationship between two
variables.
 Such as a measure of business activity like sales, and firm’s staffing level-are
related. If they are then you can forecast the level of business activity. You should
also be able to estimate your personnel requirements.

Size of No. of
For Ex: A 500-bed hospital expects to expand 20 1,200
Hospital Registered beds over the next 5 years. The Director of nursing and HR
No. of Beds Nurses
Director want to forecast the requirement for registered
200 240
nurses. The HR Director decides to determine the
300 260
relationship between hospital (in terms of no. of beds)
400 470
and no. of nurses required. If you carefully draw in a line
500 500
to minimize the distance between line and each on of the
600 620
plotted points, you will be able to estimate the number of
700 660
nurses needed for each hospital size. Thus, HR Director
800 820
would assume she needs about 1,210 nurses.
900 860
Techniques used in HR Planning & Forecasting
 Computerized Forecast: Determination of future staff needs by projecting sales,
volume of production, and personnel required to maintain this volume of output,
using software packages.
 With such programs, employers can more accurately translate projected productivity
and sales levels into forecasted personnel needs. And they can estimate the effects of
various productivity and sales level assumptions on personnel requirements.
 In retailing. For instance, automated labor scheduling systems help retailers estimate
required staffing needs based on sales forecasts and estimated store traffics.
Techniques used in HR Planning & Forecasting
 Expert Forecasting:
 Survey: HR experts conduct survey of line managers about future HR needs.
Analyzed data and estimated demand.
 Delphi Techniques: Pooling of experts, gather judgment and opinions about
estimates of future HR needs. Collected from mail questionnaire. Various rounds
of responses are solicited to group consensus. No face to face.
 Nominal Group Techniques: Experts sit face-to-face to make forecasts as a
group. Generate ideas, interaction, evaluate and consensus.
Techniques used in HR Planning & Forecasting

 Other Techniques
 New Venture Analysis: HR needs for new business venture are estimated in line
with the needs of organization of similar types.
 Ex: Travel agency plans to open hotel can be estimated by similar hotels.
Techniques used in HR Planning & Forecasting
 Managerial Judgment: It will play a big role in an organization as it is rare that
any historical trend, ratio, or relationship will remain unchanged into the future.
Therefore, we need to modify the forecast based on factors such as projected
turnover or a desire to enter new markets.
 Managers sit together, discuss and arrive at a figure, which would be the future
demand for labor.
 Top-Down Approach: top management prepares the estimates of
requirements and sends the information to lower level.
 Bottom-up Approach: Line managers and supervisors prepare the estimates
of requirements and send the information and sends to the top management
 Participative approach: Management and subordinates jointly estimate
requirements through consultation
 
Techniques used in HR Planning & Forecasting
| HR Supply Forecasting Techniques(Inside Candidates)
Employee Turnover Analysis
Cohort Method
Statistical Analysis Trend Analysis
Markov Analysis
Renewal Analysis
Replacement Personnel Replacement
Chart Charts
Position replacement card

Qualification
Inventories

Managerial judgment

Succession Planning
| HR Supply Forecasting Techniques
(Inside Candidates)
 Statistical Analysis:-
 Employee Turnover analysis: Annual employee turnover is a method of
measuring the attrition or wastage of employees.
 Cohort Method: This is the reverse of employee turnover analysis. concept of
survivor analysis. the percentage of employees who continue in the employment
of an enterprise is measured as opposed to the percentage who quit employment.
In the Cohort Method, an analysis is done of a homogeneous group.
 Trend analysis : Project past trends (Regression analysis for predicting future
supply)
| HR Supply Forecasting Techniques
(Inside Candidates)
 Markov Analysis : the percentage of employees who remain in each job from
one year to the next year. Pattern of movements through jobs –promotion,
transfer. Estimates future manpower supply through matrix analysis.
 Renewal analysis –It derives future flow of HR on upward movement of
employee, vacancies created by expansion, and employee losses.
 Replacement Chart
 Personnel Replacement Charts: Describe the profile of job holders and who can
be the replacement whenever the need arise.
 Company records showing present performance and promotability of inside
candidates for the most important positions.
 Position Replacement Card: A card prepared for each position in a company to
show possible replacement candidates and their qualifications.
| HR Supply Forecasting Techniques
(Inside Candidates)
 Qualification Inventories: Manual or computerized records listing employee’s
education, career, and development interests, languages, special skills, and son
on, to be used in selecting inside candidates for promotion
 Managerial Judgment: Based on manager’s experience, manager estimates or
rules of thumb are used to forecast supply, knowledge of organizational structure,
activities and performance
 Succession Planning: Skill Inventory report covers information of managers
having middle and upper level positions-promotion, transfer, job enlargement.
Long Range time horizons. Process of identifying a long-term plan for the orderly
replacement of key employees.
| HR Supply Forecasting Techniques
(Outside Candidates)
 If there won’t be enough inside candidates to fill the anticipated openings (or they
want to go outside for another reason), the employer may want to forecast the
availability of outside candidates.
 The external supply of potential employees available to the organization needs to
be identified.
 Extensive use of government estimates of labor force populations, trends in the
industry, and many more complex and interrelated factors must be considered.
| HR Supply Forecasting Techniques
(Outside Candidates)
 Such information is often available from state or regional economic
development offices, including these items:
 Net migration into and out of the area
 Individuals entering and leaving the workforce
 Individuals graduating from schools and colleges
 Changing workforce composition and patterns
 Economic forecasts for the next few years
 Technological developments and shifts
 Actions of competing employers
 Government regulations and pressures
 Circumstances affecting persons entering and leaving the workforce
Rightsizing Enterprise
 The process of a company restructuring or reorganizing itself by reducing its
workforce, cost-cutting, or rearranging its upper management. The aim is to
streamline the business so that it can make a profit more effectively.

 The act of paring down a workforce and reorganizing management to find the
optimum staffing level for increased cost-efficiency and productivity. Distinct
from the concept of downsizing, rightsizing does not necessarily require massive
layoffs or other drastic actions. 

 As a strategic tool rather than an emergency measure, rightsizing can include

restructured job roles, workforce attrition or even voluntary early retirement.
Rightsizing Enterprise
 Attrition and Hiring Freezes: Attrition occurs when individuals quit, die, or
retire and are not replaced. By use of attrition, no one is cut out of a job, but those
who remain must handle the same workload with fewer people.
 Unless turnover is high, attrition will eliminate only a relatively small number of
employees in the short run, but it can be a viable alternative over a longer period
of time.
 Therefore, employers may combine attrition with a freeze on hiring. Employees
usually understand this approach better than they do other downsizing methods.

 Voluntary Separation Programs: Organizations can downsize while also

reducing legal liabilities if employees volunteer to leave. Often firms entice
employees to volunteer by offering them additional severance and benefit
payments.
Rightsizing Enterprise
 Early retirement buyouts: These are widely used to encourage more senior workers
to leave organizations early. As an incentive, employers make additional payments to
employees so that they will not be penalized as much economically until their
pensions and Social Security benefits take effect.
 These buyouts are widely viewed as ways to accomplish workforce reductions without
resorting to layoffs and individual firings. Some plans offer eligible employees
expanded health coverage and pension benefits to entice them to take early retirement.

 Layoffs: It occur when employees are put on unpaid leaves of absence. If business
improves for the employer, then employees can be called back to work. Layoffs may
be an appropriate downsizing strategy during a temporary economic downturn in an
industry.
 Nevertheless, careful planning of layoffs is essential. Care must be taken to ensure
that age and other types of EEO discrimination do not occur.
Outplacement of the Employees
 Outplacement Services: Outplacement occurs when a group of services are
provided to give displaced employees support and assistance.

 It is most often used with those who have been involuntarily removed because of
performance problems or job elimination.

 Outplacement services typically include personal career counseling, résumé

preparation services, interviewing workshops, and referral assistance. Such
services are generally provided by outside firms that specialize in outplacement
assistance and whose fees usually are paid by the employer.

 It is important that outplacement be viewed as part of strategic HR planning

Effective Recruitment
 Employee Recruiting means finding and/or attracting applicants for
the employer’s open positions.
 External factors affecting recruiting:
 Looming undersupply of workers
 Lessening of the trend in outsourcing of jobs
 Increasingly fewer “qualified” candidates
 Internal factors affecting recruiting:
 The consistency of the firm’s recruitment efforts with its strategic goals
 The available resources, types of jobs to be recruited and choice of recruiting
methods
 Non recruitment HR issues and policies
 Line and staff coordination and cooperation
Effective Recruiting (cont’d)
 Centralizing recruitment

Advantages:
 Strengthens employment brand
 Ease in applying strategic principles
 Reduces duplication of HR activiities
 Reduces the cost of new HR technologies
 Builds teams of HR experts
 Provides for better measurement of HR performance
 Allows for the sharing of applicant pools
Measuring Recruiting Effectiveness
 What to measure and how to measure
 How many qualified applicants were attracted from each
recruitment source?
 Assessing both the quantity and the quality of the applicants produced
by a source.
 High performance recruiting
 Applying best-practices management techniques to recruiting.
 Using a benchmarks-oriented approach to analyzing and measuring the
effectiveness of recruiting efforts such as employee referrals.
Recruiting Yield Pyramid

 Recruiting yield pyramid

– The historical arithmetic
relationships between Total Initial
Contacts, Formal Applicants, Final
Interviewees, Offer Recipients and
Hires
Internal Sources of Candidates:
Hiring from Within
 Advantages
 Foreknowledge of candidates’
strengths and weaknesses
 More accurate view of candidate’s
skills
 Candidates have a stronger
commitment to the company
 Increases employee morale
 Less training and orientation
required
 Recruiting costs are lower for some
jobs.
 Disadvantages
 Failed applicants become discontented
 Time wasted interviewing inside
candidates who will not be considered
 Inbreeding of the status quo
 Those not promoted may experience
morale problems.
 Employees may engage in “political”
infighting for promotions. A management
development program is needed.
Finding Internal Candidates

Rehiring Former
Job Posting
Employees

Hiring from
Within

Succession
Planning (HRIS)
Recruitment Process: Internal vs External

Internal External
Employee Database College and University Recruiting

Job Posting School Recruiting

Promotions and Transfers Labor Unions

Re-Recruiting of Former Employees Employment Agencies and

and Applicants Headhunters

Current-Employee Referrals Competitive Sources

Media Sources

Job Fairs and Special Events

External Sources of Candidates:
Hiring from Outside:
Advantages  Disadvantages

 New “blood” brings new
perspectives.
 Training new hires is cheaper and
faster because of prior external
experience.
 The new hire has no group of
“political supporters” in the
organization.
 The new hire may bring new
industry insights.
 The firm may not select someone who
will fit the job or the organization.
 The process may cause morale problems
for internal candidates not selected.
 The new employee may require a longer
adjustment or orientation time.
Outside Sources of Candidates
 Advertising
 The Media: selection of the best medium depends on the positions for which
the firm is recruiting.
 Newspapers (local and specific labor markets)
 Trade and professional journals
 Internet job sites
 Marketing programs
 Constructing an effective ad
 Wording related to job interest factors should evoke the applicant’s
attention, interest, desire, and action (AIDA) and create a positive
impression of the firm.
Outside Sources of Candidates (cont’d)

 Employment agencies (public, private)

 Temporary agencies….
 Benefits of Temps:
 Paid only when working
 More productive
 No recruitment, screening, and payroll administration costs
 Costs of Temps
 Fees paid to temp agencies
 Lack of commitment to firm
Outside Sources of Candidates (cont’d)
 Executive recruiters (headhunters)
 Special employment agencies retained by employers to seek
out top-management talent for their clients.
 Contingent-based recruiters collect a fee for their services when a
successful hire is completed.
 Retainedexecutive searchers are paid regardless of the outcome of the
recruitment process.
 Internettechnology and specialization trends are changing
how candidates are attracted and how searches are
conducted.
Recruiting A More Diverse Workforce

Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women
Issues in Recruiting a More Diverse
Workforce
 Single parents
 Providing work schedule flexibility.
 Older workers
 Revising polices that make it difficult or unattractive for older
workers to remain employed.
 Recruiting minorities and women
 Understanding recruitment barriers.
 Formulating recruitment plans.
 Instituting specific day-to-day programs.
Issues in Recruiting a More Diverse
Workforce (cont’d)
 Welfare-to-work
 Developing pre-training programs to overcome difficulties in hiring
and assimilating persons previously on welfare.
 The disabled
 Developing resources and policies to recruit and integrate disable
persons into the workforce.
Recruiting more Diverse Workforce
 Diverse candidates will apply to the companies that are actively engaged in
diversity programs.

 In order to prevent a recruiter from assuming a candidate is not the right “fit” for a
particular role, an organization an organization must define its culture, mission, vision
and value as well as expand usual and familiar paths to actively engage, be more open
and accepting of candidates who, at first glance, are overlooked.
 Diverse candidates wants to know that they are being assessed by their skills alone.

 Diversity Recruitment is the active commitment to increase diversity within an

organization.
 At each of the recruiting process, you have to be aware of the bias.
 Does your JD attract or deter Diverse candidates?
 The language in JDs is the key to attracting diverse candidates.
 JD’s with feminine wording don’t discourage men from applying.
 JD’s with masculine wording discourage women from applying
 When women apply to jobs traditionally held by men, they are often not seen as the right fit.

Recruiting more Diverse Workforce
 Active sourcing is imperative for a diversity recruiting program because you have to
get out and engage candidates instead of relying on traditional sources.
 Proactive searching for qualified job candidates for current or planned open positions.

 How to successfully Source?

 Networking
 Partner with organizations that focus on diversity mission, vision or focus.
 Hosting an Open House
 Employee Referrals

 Screening: Conducting a detailed review of a person’s resume to determine whether

they meet basic job requirements.
 Screening: Deciding whether to call the candidate: Deciding to call the candidates
should only be based on qualification
 Rejecting the candidate after speaking to him
Recruiting more Diverse Workforce
 Diversity Recruiting is the act of recruiting diverse individuals into a group, organization or
company

 Fit
A candidate’s probability of successfully embracing the culture of the organization
Diversity Recruitment Initiatives
 Combat bias
 Improve Innovation
 Update your organization

Diversity recruiting starts with understanding the status of diversity in your organization.
Benefits of Increasing Diversity
 Encourages a more open culture
 Helps all employees feel valued
 Improves Retention rates
Recruiting more Diverse Workforce
 How to combat bias?
 Standardize interview questions
 Review previous interview questions which were successful.
 Standardize interview questions.
 Review the interview techniques used for an employee who is performing well to
attempt to determine which questions may have predicted employee success.
 Provide hiring managers and other interviewers with a catalogue of pre-assessed
questions to choose from.
 Standardized interview questions and provide hiring managers and other interviewers
with a catalogue of pre-assessed questions to choose from. Also, review the interview
techniques used for an employee who is performing well to attempt to determine
which questions may have predicted employee success.
 Objective based assessment will help to reduce bias
 For creating a successful diversity recruiting process in each of the main steps in
recruiting, the job description, your sourcing, screening and interview process, you
have to remain aware that bias, discriminatory practices, and unsavory behaviors, all
lurk there. And be committed to identifying and overcoming those behaviors.
Recruiting more Diverse Workforce

 Common Recruiting mistakes:

 Not understanding how much of an impact that you can make
 Treating a diversity recruitment like a one time action.
 Thinking policy change is enough
 Neglecting to follow up
 Offering a salary that the candidate will accept rather than what is
deserved
Developing and Using Application Forms

Uses of Application
Information

Applicant’s Applicant’s Applicant’s Applicant’s

education and progress and employment likelihood of
experience growth stability success
Application Forms and the Law
Education
Achievements

Housing Arrest
Arrangements Record

Areas of Personal
Information Notification in
Marital
Case of
Status
Emergency

Physical Memberships in
Handicaps Organizations
Group Formation and Exercises