LU4 Recruitment

Learning Unit 4
Recruitment
1–1
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Chapter Objectives
After studying this chapter, you should be able to
LEARNING OUTCOME 1 Describe how a firm’s strategy affects its recruiting efforts.
LEARNING OUTCOME 2 Outline the methods by which firms recruit internally.
LEARNING OUTCOME 3 Outline the methods by which firms recruit externally.
LEARNING OUTCOME 4 Explain the techniques organizations can use to improve

their recruiting efforts.
LEARNING OUTCOME 5 Explain how career management programs integrate the

needs of
individual employees and their organizations.
LEARNING OUTCOME 6 Explain why diverse recruitment and career development

activities are important to companies.
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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.
• 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.”
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Who Should Do the Recruiting?
• HR recruiters or generalist (large firms)

• 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.
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Global Labor Markets
• 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
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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.
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Labor Markets
• 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
 Level of compensation offered for a job
 Reluctance of job seekers to relocate
 Ease of commuting to workplace
 Location of job (urban or nonurban)
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Recruiting Internally
• Internal Job Postings

• Identifying Talent through Performance Appraisals
• Skills Inventories and Replacement Charts
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Warning Signs of a Weak Talent “Bench”
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Recruiting Externally
1. Advertisements
2. Walk-Ins and Unsolicited Applications and Résumés
3. The Internet, Social Networking, and Mobile Recruiting
4. Job Fairs
5. Employee Referrals
6. Re-recruiting
7. Executive Search Firms
8. Educational Institutions
9. Professional Associations
10. Labor Unions
11. Public Employment Agencies
12. Private Employment and Temporary Agencies
13. Employee Leasing
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Improving the Effectiveness of Recruiting
• Using Realistic Job Previews

• Surveys
• Recruiting Metrics
Surveys Recruiting Metrics
Effectiveness
of
Recruitment
Realistic Job Previews
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Recruiting Metrics
• Quality of Fill Statistics

• 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
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Recruiting Metrics (cont.)
• 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.
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Recruiting Metrics (cont.)
• 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
• Yield Ratios
 The percentage of applicants from a
recruitment source that make it to the next
stage selection process
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Time-to-Fill Calculations
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Costs of 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
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Career Management: Developing
Talent over Time
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Blending the Goals of Individual Employees
with the Goals of the Organization
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Identify Job Progressions and Career Paths
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Recognize Different Career Paths
• Promotion
 A change of assignment to a job at a higher level in
the organization
• Transfer
 Placement of an individual in another job for which the
duties, responsibilities, status, and remuneration are
approximately equal to those of the previous job
• Consider Dual Career Paths for Employees

• Consider the Boundaryless Career
• Help Employees Progress beyond Career Plateaus
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Human Capital Profiles
for Two Different Careers
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Successful Career-Management Practices
• Placing clear expectations on employees.

• Giving employees the opportunity for transfer.
• Providing a clear and thorough succession plan
• Encouraging performance through rewards
and recognition.
• Giving employees the time and resources they need
to consider short- and long-term career goals.
• Encouraging employees to continually assess their
skills and career direction.
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Successful Career-Management Practices (cont.)
• Lack of time, budgets, and resources for

employees to plan their careers and to
undertake training and development.
• Rigid job specifications, lack of leadership
support for career management, and a
short-term focus.
• Lack of career opportunities and pathways
within the organization for employees.
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Career Plateau Questions
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Mentoring Functions
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Developing a Diverse Talent Pool
• Recruiting and Developing Women

• Eliminating Women’s Barriers to Advancement
 Advancing Women to Management
 Accommodating Families
• Recruiting and Developing Minorities

• Providing Minority Internships
• Advancing Minorities to Management
• Recruiting the Disabled
• Employing the Older Workforce
• Employing Dual Career Couples
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Key Terms
applicant tracking system mentors

branding nepotism
assessment center 9-box grid
career counseling outplacement services
career networking passive job seekers
career paths promotion
career plateau recruiting process outsourcing
dual career partnerships (RPO)
employee leasing realistic job preview (RJP)
employee profile relocation services
fast-track program rerecruiting
global sourcing sabbatical
internal labor market transfer
job progressions yield ratio
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Chapter 5 - Learning Outcomes
Learning Outcome Statements Related Outcomes from Body of the Text
1 Describe how a firm’s strategy affects its recruiting efforts. This section describes some of the major factors that can affect a firm’s
recruiting. What other factors might play a role? Hint: Refer to Chapter 1.
2 Outline the methods by which firms recruit internally. Sometimes firms do not post internal openings for which anyone may apply.
Instead, they select someone to promote. Why might a firm do this and what
drawbacks could result?
3 Outline the methods by which firms recruit externally. If you were a small business owner, how would you go about attracting
top external candidates to your firm?
4 Explain the techniques organizations can use to improve

their recruiting efforts.
If you’re employed, ask your boss what methods he or she has most
successfully used to recruit employees. Compare your findings with your
classmates. Does the recruiting source seem to depend upon the type of
job?
5 Explain how career management programs integrate the

needs of individual employees and their organizations.
Why should both employees and their employers be concerned about
career management programs?
6 Explain why diverse recruitment and career development

activities are important to companies.
How are the career challenges of minorities both similar to and different
from those of women in your opinion?
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Learning Unit 4

LEARNING OUTCOME 2 Outline the methods by which firms recruit internally.

LEARNING OUTCOME 3 Outline the methods by which firms recruit externally.

LEARNING OUTCOME 4 Explain the techniques organizations can use to improve

LEARNING OUTCOME 5 Explain how career management programs integrate the

LEARNING OUTCOME 6 Explain why diverse recruitment and career development

• Decisions about talent — regardless of whether they

• HR recruiters or generalist (large firms)

• Why Recruit Globally?

• Most managers try to follow a policy of filling job

• There are Advantages and Disadvantages to both.

• Factors determining the relevant labor market:

• Internal Job Postings

• Using Realistic Job Previews

Realistic Job Previews

• Quality of Fill Statistics

The result is a quality level of 75 percent for new

• Cost of Recruitment (per employee hired)

Cost to hire one employee = $467.23

• Consider Dual Career Paths for Employees

• Placing clear expectations on employees.

• Lack of time, budgets, and resources for

• Recruiting and Developing Women

• Recruiting and Developing Minorities

applicant tracking system mentors

Learning Outcome Statements Related Outcomes from Body of the Text

4 Explain the techniques organizations can use to improve

5 Explain how career management programs integrate the

6 Explain why diverse recruitment and career development

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