Human

Resource Recruiting and

Management Labor Markets
CHAPTER 6

Robert L. Mathis | John H. Jackson | Sean

R. Valentine

14e

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 Learning Objectives
 List different ways that labor markets can be identified
and approached
 Discuss the strategic decisions covering recruiting
image, outsourcing, and other related areas
 Explain why Internet recruiting has grown and how it
affects recruiting efforts done by employers
 Highlight five external recruiting sources

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 Learning Objectives
 Identify three internal sources for recruiting and issues
associated with their use
 Describe three factors to consider when doing
recruiting measurement and metrics

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 Recruiting
 Process of generating a pool of qualified applicants for
organizational jobs
 Considerations

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 Figure 6.1 - Integral Components for
Effective Recruiting

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 Recruiting Requirements Expected of
Employers
 Know the industry and where to successfully recruit
 Identify keys to success in the labor market
 Cultivate relationships with sources of prospective
employees
 Promote the company brand
 Use recruiting metrics to measure the effectiveness of
recruiting efforts

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 Training of Recruiters and Managers
 Recruiting-related activities
 Communications skills
 Diversity and sensitivity skills
 Ethical recruiting behaviors
 Follow-up activities

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 Labor Market
 External supply pool from which employers attract
employees
 Components of labor market
 Labor force population: All individuals who are available for
selection if all possible recruitment strategies are used
 Applicant population: Subset of the labor force population
that is available for selection using a particular recruiting
approach

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 Labor Market Components
 Applicant pool: All persons who are actually evaluated for
selection
 Applicant tracking system - Makes the recruiting process more
effective
 Individuals selected for a job - When the candidates reject the
offer:
 HR staff members must move back up the funnel to the applicant
pool for other candidates
 HR staff, in extreme cases, may need to reopen the recruiting
process

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 Unemployment Rates and Labor Markets
 Unemployment rates vary with business cycles
 Strict hiring adopted by companies due to recessionary
conditions
 Decreased customer spending
 Increased business competition
 Decreased need for new employees due to developments in
technology

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 Figure 6.3 - Considerations for Determining
Applicant Populations

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 Different Labor Markets and Recruiting
Industry and Occupational Labor Markets
These jobs represent the
health care, retail, and education industries

Educational and Technical Labor Markets

Considering the educational
and technical qualifications that define the people
being recruited
Labor Markets

Geographic Labor Markets

Markets can be local, area or regional, national, or
international

Global Labor Markets

Firms expand by exporting work to overseas labor
markets when doing so is advantageous

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 Recruiting Presence and Image
 Recruiting image can be:
 Continuous - Offers the advantage of keeping the employer in
the recruiting market
 Intensive - Vigorous recruiting campaign aimed at hiring a
given number of employees in a short period

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 Recruiting Presence and Image
 Employment brand: Image of the organization that is
held by both employees and outsiders
 Company brand can help generate more recruits through
applicant self-selection

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 Strategic Recruiting Decisions

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 Organization-Based versus Outsourced
Recruiting
 Recruitment process outsourcing (RPO)
 Improves the number and quality of recruiting candidates
 Reduces recruiting costs
 Professional Employer Organizations (PEO) and
employee leasing
 Employer signs an agreement with the PEO

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 Organization-Based versus Outsourced
Recruiting
 Staff is hired by the leasing firm and leased back to the
company for a fee
 Leasing firm:
 Writes the paychecks
 Pays taxes
 Prepares and implements HR policies
 Keeps all the required records for the employer

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 Regular versus Flexible Staffing
 Employers are hesitant to hire full0time employees due
to:
 Increased cost
 Economic conditions
 Excessive competition
 Government considerations

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 Regular versus Flexible Staffing
 Temporary workers - Employers can hire their own
staff members or make use of agencies on a rate-per-
day/week basis
 Purpose of hiring temporary workers
 Match the firm’s needs with the right workers
 Avoid costs associated with benefits
 Enhance staffing flexibility

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 Regular versus Flexible Staffing
 Independent contractors - Workers who perform
specific services on a contract basis
 Advantageous for the employer as they do not have to pay
benefits
 Done by individuals who are:
 Highly skilled
 Highly experienced
 Not affected by familial responsibilities

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 Figure 6.4 - Pros and Cons of Utilizing
Flexible Staffing

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 Figure 6.5 - Recruiting and Diversity
Considerations

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 EEO and Recruiting Efforts
 Organizations must work to reduce:
 External disparate impact
 Underrepresentation of protected-class members
 Special ways to reduce disparate impact can be
identified as:
 Goals listed in the affirmative action programs (AAPs)

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 EEO and Recruiting Efforts
 Equal Employment Opportunity Commission (EEOC)
guidelines state that:
 No direct or indirect references implying gender or age are
permitted
 Advertisements should contain wording about being
an equal opportunity employer
 Specific designations such as EEO/M-F/AA/ADA can
be given in the advertisements

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 Recruiting diversity
 Nontraditional diverse recruitees
 Persons with different racial/ethnic backgrounds
 Older workers over 40 years of age
 Single parents
 Workers with disabilities
 Welfare-to-work workers
 Homeless/substance abuse workers

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 Realistic Job Previews
 Provides a balanced view of:
 Advantages, demands, expectations, and challenges in an
organization or a job
 Help attract employees with more realistic expectations
 Reduce the number of employees who quit a few
months after being hired

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 Recruiting Source Choices: Internal
versus External
 Internal recruitment - Promoting from within an
organization
 External recruitment - Recruiting from outside an
organization
 Possible strategy for organizations that face rapidly
changing competitive environments and conditions
might be to:
 Promote from within if a qualified applicant exists
 Go to external sources if not

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 Internet Recruiting

Effects of Internet Recruiting

Adjusting to Identifying new Training for

new recruiting types of recruiting managers and HR
approaches for specific jobs recruiters

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 Internet Recruiting

E-Recruiting Places

Professional/
Internet Job Employer Web
Career Web
Boards Sites
Sites

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 Internet Recruiting

Social Networking Recruiting Advantages

• Allows job seekers to connect with employees of potential
employers
• Allows employers to engage in social collaboration by joining
and accessing social technology networks to help applicants post
resumes and complete applications online

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 Internet Recruiting

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 Legal Issues in Internet Recruiting

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 Internet Recruiting

Advantages Disadvantages

• Cost effective recruiting

• More unqualified applicants
• Recruiting less time consuming
• Additional work for HR staff
• Broader exposure and diverse
• Many applicants are not seriously
pool of applicants seeking employment
• Better targeting of specific
• Access limited or unavailable to
audiences some applicants
• Recruiters can reach passive
• Privacy of information and
job seekers discrimination issues

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 External Recruiting Sources
Media Sources

Competitive Employment
Recruiting Sources External Agencies
Recruiting
Sources

Job Fairs and

Labor Unions
Creative Recruiting

Educational
Institutions

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 Figure 6.6 - Advantages and Disadvantages
of External Recruiting

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 External Recruiting Sources
 Media sources - Newspapers, magazines, television,
radio, and billboards have been widely used in external
recruiting
 Internet media sources such as postings, ads, videos, and
Webinars are also used

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 External Recruiting Sources
 Effectiveness of evaluating media ads
 Easy ways to track responses to ads
 Different contact names
 E-mail addresses
 Phone number codes in each ad
 After hiring, follow-up should be done
 Shows which sources produced the employees who stay longer
and perform better

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 Figure 6.7 - What to Include in an Effective
Recruiting Ad

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 External Recruiting Sources
 Competitive recruiting sources - Includes professional
societies and trade associations that:
 Publish newsletters or magazines and have Web sites
containing job ads

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 External Recruiting Sources
 Employment agencies - Public and private recruiting
source
 Public employment agencies - Operate branch offices in cities
throughout the states
 Do not charge fees to applicants or employers
 Private employment agencies - Operate in most cities for a fee
collected from:
 Either the employee or the employer

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 External Recruiting Sources
 Headhunters: Focus their efforts on executive, managerial,
and professional positions
 Executive search firms split into:
 Contingency firms - Charge a fee after the candidate is hired
 Retainer firms - Charge a fee whether or not the candidate is
successfully hired

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 External Recruiting Sources
 Labor unions - Labor pool is available through a union
 Workers can be dispatched from the hiring hall to particular
jobs to meet the needs of employers
 Job fairs - To help bring employers and potential job
candidates together
 Creative recruiting - Can be used to generate a pool of
qualified applicants quickly to fill jobs in a timely
manner

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 External Recruiting Sources
 Desirable attributes of college recruits
 Desirable grade point average (GPA)
 Attending elite universities
 Internships

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 Figure 6.8 - College Recruiting:
Considerations for Employers

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 External Recruiting Sources
 School recruiting
 Cooperative programs
 Students work part-time while attending school
 Career encouragement
 Summer internships
 Mentoring programs

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 Internal Recruiting Sources
Components
Internal Recruiting
Databases and Internet-
Related Sources
Description
• Information on existing employees like knowledge, skills, and abilities (KSA) are
entered into a database
• Employee data sorted by occupational fields, education, areas of career interests,
previous work histories, and other variables
• These databases can be linked to HR activities

Job Posting • System in which:

Employer provides notices of job openings
Employees respond to notices of job opening
• Types
Internet/Web-based job posting
Promotions and transfers
Employee-Focused • Reliable source as current and former employees:
Recruiting Are familiar with the employer
Will not refer unqualified individuals
• Types
Current-employee referrals
Rerecruiting former employees and applicants
Seeking out former employees and recruiting them again to work for an
organization

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 Figure 6.9 - Advantages and Disadvantages
of Internal Recruiting

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 Recruiting Evaluation and Metrics

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 Figure 6.10 - Recruiting Measurement Areas

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 General Recruiting Process Metrics
Yield Ratios

• Comparison of the number of applicants at one stage of the

recruiting process with the number at the next stage

Selection Rate

• Percentage hired from a given group of candidates

Acceptance Rate

• Percent of applicants hired divided by total number of applicants

offered jobs

Success Base Rate

• Longer-term measure of recruiting effectiveness is the success rate

of applicants

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 Figure 6.11 - Sample Recruiting Evaluation
Pyramid

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 Increasing Recruiting Effectiveness
 Recruiting activities
 Résumé mining
 Applicant tracking
 Employer career Web site
 Internal mobility
 Realistic job previews

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 Increasing Recruiting Effectiveness
 Responsive recruitment
 Fair and professional treatment by the recruiters
 Emphasis of positive aspects about the jobs and the employer
by the recruiters

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 Increasing Recruiting Effectiveness
 Recruiting effectiveness can be increased by using the
evaluation data to:
 Target different applicant pools
 Tap broader labor markets
 Change recruiting methods
 Improve internal handling and interviewing of applicants
 Train recruiters and managers

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