Chapter 07

7-1

7-2

7 Recruitment

McGraw-Hill/Irwin Human Resource Management, 10/e

© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

7-3

Introduction Before

an organization can fill a job vacancy, it must find people who: Are qualified for the position Want the job

Recruitment

refers to: Organizational activities that influence the number and types of applicants who apply for a job, and Whether the applicants accept jobs that are offered

7-4

Introduction Recruitment

is often the first contact between the organization and a prospective employee Create a positive first impression

During

the coming years, the importance of recruitment will increase A tight labor market will plague organizations of all sizes Many companies have developed retention strategies

7-5

Introduction Whether

people respond to the recruiting effort depends on the attitudes they have toward: The

tasks The organization How

difficult the recruiting job is depends on such things as: Government and union restrictions The labor market The employer’s requirements Candidates’ preferences

7-6

Government and Union Restrictions To

determine if an organization has violated the law, government agencies review: Recruitment sources Recruiting advertising Estimates of the firm’s employment needs for the coming year The number of applicants processed by demographic and job category The evidence was used to verify the legal right to work

7-7

Government and Union Restrictions Sound

recruiting practices: Establish general guidelines for recruiters Make sure applicants complete, sign, and date an employment application Use outcome-oriented job descriptions Use an offer letter than outlines the commitments the organization is prepared to keep State that employment is “at-will” List salary, frequency of pay increases, and benefits State conditions to which employment may be subject

7-8

Government and Union Restrictions The

Immigration Reform and Control Acting (IRCA) of 1986 requires employers to: Screen applicants’ eligibility for employment Maintain records demonstrating employment authorization The government plans to step up enforcement of the IRCA

7-9

Government and Union Restrictions The

features of the IRCA fall into four categories: Employer’s duties: Avoid recruiting, hiring, or continuing to employ unauthorized aliens Verify the identity/work authorization of new employees Avoid discrimination on the basis of citizenship or national origin Amnesty rights: Certain illegal aliens are eligible for temporary or permanent resident status

7-10

Labor Market Conditions If

there is a surplus of labor at recruiting time, even informal attempts will attract sufficient applicants When full employment is nearly reached, skillful and prolonged recruiting may be necessary The state of the economy also affects how many applicants are available

The

current employment picture can be researched through: The federal Department of Labor State divisions of employment security and labor Boards and journals

7-11

Composition of Labor Force & Location As

legal requirements increase, it becomes more important to analyze workforce composition Determine whether the firm’s employment practices are discriminatory The number of minorities in the workforce also depends on the number of minorities in the labor market

An

aggressive diversity management program is essential Diversity leads to enhanced competitiveness, higher productivity, and increased customer satisfaction

7-12

Interaction of Recruits & the Organization

There

is a complex interaction between job applicants and the organization trying to hire them The techniques used and sources of recruits vary with the job An applicant’s abilities and past work experience affect how they go about seeking a job

7-13

The Organization’s View of Recruiting Things

that affect recruiting from the viewpoint of the organization: The recruiting requirements set Organizational policies and procedures The organization’s image

7-14

Recruiting Requirements The

process begins with a detailed job description and job specification Without these, it is impossible for recruiters to determine how well any applicant fits the job The recruiter must know which requirements are essential and which are merely desirable This helps avoid unrealistic expectations

7-15

Organizational Policies and Practices HRM

policies and practices can affect recruiting One of the most significant is hiring from within Many organizations recruit from outside only at the initial hiring level Most employees favor this approach Some employers feel it helps protect trade secrets However, an organization may become so stable that it is set in its ways Other factors include favoring the disabled, veterans, or ex-convicts, and nepotism

7-16

Organizational Image

All

else being equal, it is easier for an organization with a positive image to attract and retain employees Recruitment is also easier for organizations with a strong community presence or positive name recognition

7-17

Organizational Image The

job specifications preferred by an organization may have to be adjusted to meet the realities of: The labor market Government or union restrictions Its policies and procedures Its image

If

too few high-quality people apply for a job: The job may have to be adjusted to fit the best applicant, or Recruiting efforts will have to be increased

7-18

Potential Employee’s View of Recruiting The

applicant’s abilities, attitudes, and preferences are based on: Past work experiences The influence of parents, teachers, and others

These

factors affect recruits in two ways: How they set their job preferences How they go about seeking a job

7-19

Preferences of Recruits Recruits

often have a set of job preferences: Education and skill levels Geographic location Salary levels Advancement opportunities Such a recruit may not find the “ideal” job The number of college-level job openings between now and 2008 will nearly equal the number of college-educated entrants to the labor force However, approximately 6 million college graduates will still be unemployed or under-employed

7-20

Preferences of Recruits Other

barriers to finding the ideal job: Economic conditions Government and union restrictions Organizational policies and practices

From

the individual’s point of view, choosing an organization involves: Choosing an occupation Choosing an organization to work for within the broader occupation

7-21

Preferences of Recruits Occupational

choice is most heavily influenced by parents, followed by: Teachers Career counselors Friends Relatives

Organizational

choice is influenced by: Corporate image Corporate size Satisfaction with the communication during recruitment is critical

7-22

Job Search: The Recruit People

who successfully find the “right job” tend to follow similar job search processes: Self-assessment Information gathering Networking Targeting specific jobs Successful self-presentation

7-23

Job Search: The Recruit The

purpose of self-assessments is to recognize your: Career goals Strengths and weaknesses Interests and values Preferred lifestyles

Information

gathering and networking are ways to generate lists of potential employers and jobs Information sources include newspapers, trade publications, college recruitment offices, organizational “insiders,” and the Internet

7-24

Job Search: The Recruit When

the job seeker has decided where to send a resume, self-presentation becomes critical Recruiters want resumes and cover letters that are tailored to the position and are truthful The cover letter and resume should include: The position you seek Your specific job objectives Your career objectives The reason you seek employment Indication that you know something about the organization

7-25

Job Search: The Recruit Not

all job seekers provide a truthful resume: Up to 95 percent of college students are willing to be less than truthful when searching for a job In the long run, little can be gained; falsification of an application is typically grounds for dismissal

Successful

job seekers prepare carefully for

interviews Learn as much about the company as possible Use “impression management” tactics

7-26

Methods of Recruiting Most

organizations must use both internal and external sources to generate sufficient applicants When there is an inadequate supply within the organization, it must seek external candidates The choice of a recruiting method can make all the difference in the success of the recruiting effort

7-27

Internal Recruiting Job

Posting Skills inventories can be used to identify internal applicants for job vacancies It is hard to identify everyone who might be interested in the opening, so firms use job posting and bidding Today, postings are computerized and easily accessible to employees via the company’s intranet Software allows employees to match an available job with their skills and experience It may also highlight where gaps exist

7-28

Internal Recruiting Inside

Moonlighting and Employees’ Friends Inside moonlighting may be used when there is: A short-term shortage No great amount of additional work Workers can be enticed to take a “second” job with bonuses Moonlighting is so common at some organizations that HR departments issue moonlighting policies

7-29

Internal Recruiting Inside

Moonlighting and Employees’ Friends Before going outside to recruit, many organizations ask employees to encourage friends and relatives to apply Some offer “finders fees” for successful referrals Employee referrals should be used cautiously, especially if the workforce is already racially or culturally imbalanced

7-30

External Recruiting Walk-ins

are an important source of applicants As labor shortages increase, however, organizations must become more proactive in their recruiting efforts

External

recruiting can be done through: Media advertising E-recruiting Some job seekers reverse the process: Employment agencies they advertise for a Executive search firms situation wanted Special-events recruiting Internships

7-31

Media Advertising Media

include: Newspapers Trade/professional publications Billboards Subway and bus cards Radio Telephone Television

7-32

Media Advertising When

developing a recruitment advertisement, begin with the corporate image Effective recruiting is consistent with overall corporate image Recorded want ads are an innovative way to attract applicants

Help-wanted

ads must be carefully prepared Media must be chosen, coded for study, and analyzed for impact afterward Including diversity in ads helps attract applicants from diverse populations

7-33

E-Recruiting The

Internet has revolutionized organizational recruitment practices 30,000 websites are devoted to job posting activities However, 71 percent of all job listings are on a handful of the “big boards” Monster.com,

CareerBuilder.com, HotJobs.com,

Jobsearch.org These

websites saw huge increases in resumes posted and visitors in the first month of 2005 Over 96 percent of all U.S. companies now use the Internet for recruitment activities

7-34

E-Recruiting The

Internet is a popular recruitment tool because: It is relatively inexpensive It provides immediate access to thousands of prospective applicants It allows searches over broad geographic and company postings Some online services, like CareerPath.com, catalog traditional newspaper recruiting ads Specialized sites focus on particular fields or areas Having a human resources Web page is an effective addition to an overall recruitment strategy

7-35

Employment Agencies/Executive Search Executive

search firms: Focus on higher-level managerial positions with salaries of $50,000+ Are on retainer Charge higher fees

Employment

agencies: Deal primarily with middle-level management and below Are paid only when they have provided a new hire

Organizations pay the higher fees because executive search firms guarantee confidentiality

7-36

Special Events Recruiting Organizations

attract applicants with special events: Open houses Scheduled visits to headquarters Informative literature Hospitality suites Speeches Job fairs

7-37

Special Events Recruiting Job

fairs: Can reduce recruiting costs by up to 80 percent May be scheduled on holidays or weekends to reach college students and the currently employed Are especially useful for smaller, less well known employers Appeal to job seekers who wish to locate in a particular area and those wanting to minimize travel and interview time

7-38

Summer Internships

Organizations

hire students as interns during the summer or part time during the school year The use of interns is dramatically increasing Nearly 1 in 3 students at four-year universities will intern before graduating

7-39

Summer Internships Internship

programs have a number of purposes: Allows organizations to get specific projects done Exposes organizations to talented, potential employees who may become “recruiters” at school Provides trial-run employment Can attract the best people where there are labor shortages Can improve diversity

7-40

Summer Internships From

the student’s point of view: An internship means a job with pay It provides real work experience There is the potential of a future job It offers a chance to use one’s talents in a realistic environment It may offer course credit hours

7-41

Summer Internships There

are costs to internships: Interns take up a lot of supervisory time Their work is not always the best

Some

students expect everything to be perfect When it is not, they become disillusioned Disillusioned students become reverse recruiters

7-42

College Recruiting College

recruiting can be difficult, time consuming, and expensive The typical recruiting sequence: Students register at the college placement office During the recruiting season, candidates are told of scheduled visits At the placement service, they reserve interviews and pick up brochures/literature about the firms The preliminary interviews are held Before leaving campus, the recruiter invites chosen candidates to make a site visit

7-43

College Recruiting Students

who are invited to the site: Are given more job information Meet potential supervisors and other executives Are entertained May be tested

If

the visit goes well: The student is given an offer Bargaining may take place on salary and benefits The candidate accepts or rejects the offer

7-44

The Effective College Recruiter People

who influence the applicant’s job choices: Peers Family Spouse Friends Professors Recruiters

The

recruiter is the filter and the matcher, and is an extension of the organization

7-45

The Effective College Recruiter A

good recruiter: Is outgoing, self-motivated, and a good salesperson Has well-developed interpersonal skills Is familiar with the company they represent Characteristics students prefer in a recruiter: Work experience in their specialties Personal knowledge of the university Friendliness and knowledge Personal interest in the applicant Truthfulness Enthusiastic communicator

7-46

The Effective College Recruiter Major

flaws that students find in recruiters: Lack of interest in the applicant Lack of enthusiasm Interviews that are stressful or too personal Insufficient time allocation

Recruiters

can and do make a difference However, applicant’s decisions are affected more by the characteristics of the job and the organization

7-47

Realistic Job Previews When

recruiters provide realistic expectations about the job, turnover of new employees is lower Most recruiters, however, give glowing descriptions of the company

Recruitment

is more effective when realistic job previews (RJPs) are used Pertinent information about the job is given, without distortion or exaggeration Most jobs have unattractive features; the RJP presents the full picture

7-48

Realistic Job Previews Insert

Exhibit 7-3

7-49

Realistic Job Previews Studies

indicate that: Newly hired employees who received RJPs have a higher rate of job survival Employees hired after RJPs have higher satisfaction RJPs can set the job expectations at realistic levels RJPs do not reduce the flow of capable applicants

RJPs

have beneficial effects However, there is uncertainty as to why they have the effects they do and in what contexts they are most effective

7-50

Alternatives to Recruitment Overtime Organizations

avoid the cost of recruiting and having additional employees Employees earn additional income Potential problems include fatigue, higher accident rates, and increased absenteeism Continuous overtime often results in higher labor costs and reduced productivity

7-51

Alternatives to Recruitment Outsourcing Sometimes

called “staff sourcing” Involves paying a fee to a leasing company or professional employer organization (PEO) that handles payroll, benefits, and routine HRM functions Especially attractive to small and midsize firms that can’t afford a full-service HR department Can save 15 to 30 percent of benefit costs Exercise care when choosing a leasing company; many are financially unstable

7-52

Alternatives to Recruitment Temporary

Employment One of the most noticeable effects of the downsizing epidemic and labor shortages of the past two decades “Just-in-time” employees staff all types of jobs (professional, technical, and executive positions) Nearly 7,000 temporary employment agencies in the U.S. have been in business for more than one year

7-53

Alternatives to Recruitment Major

advantages of using temporary workers: Relatively low labor costs Easily accessible source of experience labor Flexibility

The

cost advantage stems from the fact that temporary workers do not receive: Fringe benefits Training A compensation and career plan Temp workers do not know the culture or work flow of the firm

7-54

Cost-Benefit Analysis of Recruiting Many

aspects of recruitment can be evaluated Recruiters can be assigned goals by type of employee Sources of recruits can be evaluated by dividing the number of job acceptances by the number of campus interviews Methods of recruiting can be evaluated along various dimensions, such as the cost of the method divided by the number of job offer acceptances

7-55

Cost-Benefit Analysis of Recruiting The

quality of a new hire can be evaluated using the formula QH = (PR + HP + HR)/N QH = quality of recruits hired PR = average job performance ratings HP = percent of new hires promoted within one year HR = percent of hires retained after one year N = number of indicators used

Use

caution when using the quality-of-hire measure to evaluate the recruitment strategy Good employees can be lost for reasons that have nothing to do with recruiter effectiveness