Chp 5 Recruitment

The Process of Human Resource Planning • Human resource planning is defined as identifying the numbers and types of employees the organization will require to meet its objectives. • Reasons organizations should carry out HR planning include: – To meet business objectives – Gain an advantage over competitors

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reser

Human Resource Planning HR activities that assure that the organization is getting the right amount of the right people to achieve the company’s objectives – Recruitment – Selection

Human Resource Planning – Compares the present state of the organization with its goals for the future – Identifies what changes it must make in HR to meet these goals

3 of 15

McGraw-Hill

Overview of the Human Resource Planning Process

© 2004 The McGraw-Hill Companies, Inc. All rights reser

HR Strategies for a Labor Shortage • • • • • • •

Overtime – fast Temporary Employees - fast Outsourcing - fast Retrain Transfer - slow Turnover Reduction - slow New Hires - slow Technology Innovations - slow

Strategies for Reducing Surplus • • • • • • • • •

Downsizing - fast Pay Reduction – fast Demotions- fast Transfers - fast Work Sharing - fast Hiring Freeze - slow Natural Attrition - slow Early Retirement -slow Retraining - slow

Recruitment Defined

• Attracting a pool of qualified applicants

Recruitment Goals • A recruiting program has five goals: – Achieve cost efficiency. – Attract highly qualified candidates. – Help ensure that individuals who are hired will stay with the company. – Assist a company’s efforts to comply with nondiscrimination laws.

Major Recruitment Decisions “Recruitment Strategy” Core vs. Contingency Personnel • Recruitment Source • Internal vs. External – Methods • Internal Methods – External Methods –

Factors Affecting Recruitment Strategy • • • • • • •

Business Strategy General Economic Conditions Specific Labor Market Conditions Government Regulation - EEO Job Design - Skill Requirements Time/Cost Constraints Other HRM Activities

Core versus contingency personnel • Core personnel – Employees hired in the “traditional” manner – Considered permanent employees – Included in the organization’s payroll

• Contingency personnel – Employed by a supplier agency, and are “loaned” to the organization – Not included in the organization’s payroll – Workers’ salaries and benefits are paid by the supplier

Internal Recruitment Methods • Job Postings • Data Banks/Skill Inventories /Replacement Charts • Supervisor Recommendations

Advantages of Internal Recruitment • Motivational, morale, and performance enhancement • Less expensive recruitment cost (not total HR cost) • More information to make selection decisions – more accurate, safer • Know policies and organization • Take advantage of past training – Human Capitol Investment

Internal Disadvantages • • • • • •

Lack of qualified personnel Inbreeding Political favors/Internal Politics Ones not selected may be resentful Time consuming – Many applicants Lack of acceptance by former peers/coworkers • EEO Concerns – institutionalize imbalances

External Recruitment Methods • Educational Institutions – College, Technical Schools, H.S.

• Employee Referrals • Applicant Initiated – Walk-Ins – Unsolicited Resumes

• Competition – Companies in same industry – Recruitment area

External Recruitment Methods • Public/Non-Profit Employment Agencies • Private Employment Agencies – executive recruiters, temp agencies

• Labor Unions • Aliens/Immigrants

External Recruitment Method • • • •

Newspaper and Trade Journals Radio and T.V. Advertisements Computer Networks Job Fairs

Advantages of External Recruitment • Acquire new skills • Innovative ideas (new blood) • Less susceptible to politics • Less expensive training – Hire with required KSA

Disadvantages of External Recruitment

• Rejected by present employees • Greater Socialization and Orientation Required

Which External Method? • • • •

The type of job being filled How quickly the job needs to be filled The geographic region of recruitment The cost of implementing the recruitment method • Whether the method will attract the right mix of candidates from an EEO perspective

Contingency Personnel – Sources of contingency personnel • Labor leasors, Temporary employment agencies, Independent contractors – Advantages of contingency personnel • Provides management with the flexibility to control fixed employee costs • Relieves a company of many of its HRM burdens • Cost savings • Contingency workers who excel at their jobs can be offered core positions. – Disadvantages of contingency personnel • Contingency personnel may need a considerable amount of orientation and training regarding company procedures and policies. – This raises questions of the cost effectiveness of this approach. • Contingency workers might be less loyal or committed to the “host organization.” • Contingency workers may receive better wages than core workers, leading to resentment among employees.