Human Resource Management - RECRUITMENT

					Human Resource Management


         Prof. Rushen Chahal   5-1
    Hiring Temporary Executives
• Organizations view hiring of new executive
  as two parts
• Begins search process for executive in
  traditional way
• Executive is hired to cover position during
  time company is looking for new CEO
• May become a try-before-you-buy
                 Prof. Rushen Chahal       5-2

Process of attracting individuals
on a timely basis, in sufficient
numbers, with appropriate
qualifications, and encouraging
them to apply for jobs with an

           Prof. Rushen Chahal      5-3
Alternatives to Recruitment

• Outsourcing
• Contingent Workers
• Professional Employer
  Organizations (Employee
• Overtime

         Prof. Rushen Chahal   5-4

• Transfers responsibility to an
  external provider
• Provides greater efficiency
  and effectiveness

           Prof. Rushen Chahal     5-5
Contingent Workers
 • Part-timers, temporaries, and
   independent contractors
 • Human equivalents of just-in-
   time inventory
 • Total cost of a permanent
   employee is about 30 - 40%
   above gross pay
 • “Disposable American workforce”

       Prof. Rushen Chahal           5-6
      Bureau of Labor Statistics
Two groups:
1.Independent contractors and on-call
  workers, who work only when needed -
  consisted of 14.8 million workers, or
  10.7% of workforce
2.Temporary or short-term workers, which
  BLS calls contingent - totaled 5.7 million or
  4.1% of workforce
                  Prof. Rushen Chahal        5-7
     Professional Employer
Organizations - Employee Leasing
• Company that leases employees to other
• When decision is made to use PEO,
  company releases its employees who are
  then hired by PEO
• With PEO, leasing company is employees’
  legal employer

                Prof. Rushen Chahal     5-8
            • Most commonly used
              method of meeting
              fluctuations in work
            • Employer avoids
              recruitment, selection,
              and training costs
            • Employees gain from
              increased income
            • Potential problems

 Prof. Rushen Chahal               5-9
External Environment of

• Labor Market Conditions
  • Legal Considerations
    • Corporate Image

        Prof. Rushen Chahal   5-10
Labor Market Conditions

           • Demand for and supply
             of specific skills
           • Labor market for many
             professional and
             technical positions is
             truly global

        Prof. Rushen Chahal      5-11
       Legal Considerations
• Candidate and employer first make
  contact during recruitment process
• Essential for organizations to emphasize
  nondiscriminatory practices at this stage
• Labor Department has issued guidelines
  concerning online recruiting policies of
  federal contractors and subcontractors

                  Prof. Rushen Chahal         5-12
   Labor Department Guidelines
• Keep detailed records of each job search
• Identify what criteria was used
• Be able to explain why a person with
  protected status was not hired
• Companies with more than 100 employees
  keep staffing records for a minimum of two

                 Prof. Rushen Chahal      5-13
   Labor Department Guidelines
• Threshold coverage is 50 employees if
  dealing with OFCCP
• Enables compilation of demographic data,
  including age, race and gender, based on
  that applicant pool
• Employers must keep records of any and
  all expressions of interest through
  Internet, including online résumés and
  internal databases
                 Prof. Rushen Chahal    5-14
 EEOC Criteria to Determine Whether
 an Individual Is an Internet Applicant
• Job seeker has expressed interest through
• Employer considers job seeker for
  employment in particular open position
• Job seeker has indicated he or she meets
  position’s basic qualifications
• Applicant has not indicated no longer
  interested in position
                 Prof. Rushen Chahal     5-15
    Promotion from Within (PFW)
• Policy of filling vacancies above entry-level
  positions with current employees
• Workers have incentive to strive for
• Organization usually well aware of
  employees’ capabilities
• Good goal would be to fill 80% of openings
  above entry-level positions from within
                  Prof. Rushen Chahal       5-16
        Employee Requisition
• Recruitment begins when a manager
  initiates employee requisition
• Document specifies job title, department,
  date employee is needed for work, and
  other details

                 Prof. Rushen Chahal          5-17
                   RECRUITMENT PROCESS
                     External Environment
                     Internal Environment

                   Human Resource Planning

                   Alternatives to Recruitment

                     Employee Requisition

Internal Sources                               External Sources

Internal Methods                               External Methods

                    Recruited Individuals

                         Prof. Rushen Chahal                      5-18
Recruitment Sources and Methods

• Recruitment sources: Place where
  qualified individuals are found
• Recruitment methods: Means by
  which potential employees can be
  attracted to firm

              Prof. Rushen Chahal    5-19
Internal Recruitment Methods
    • Employee databases
        • Job Posting
        • Job Bidding
          • Internet
          • Intranet
• Company’s Online Newsletter

          Prof. Rushen Chahal   5-20
Job Posting and Job Bidding
• Job Posting - Procedure to inform
  employees that job openings
• Job Bidding - Permit individuals in
  organization who believe they
  possess required qualifications to
  apply for posted job

              Prof. Rushen Chahal       5-21
Employee Referrals
    • Number one way people find a
    • Referrals better qualified and
      stay on job longer
    • Recruit new hires through
      employee-referral incentive
    • Employee enlistment - Unique
      form of employee referral
      where every employee
      becomes a company recruiter
      Prof. Rushen Chahal         5-22
    Trends & Innovations: Social
        Network Recruiting
• 60.7% of job seekers found new jobs through
• Technology databases searched for contact
  names, interests, former employers, colleges
  attended, and other information to identify
  network of acquaintances
• Software and web-based services enable users
  to leverage personal relationships for
  networking, hiring, employee referrals and
                  Prof. Rushen Chahal        5-23
      Why External Recruitment
            Is Needed
• Fill entry-level jobs
• Acquire skills not possessed by current
• Obtain employees with different
  backgrounds to provide diversity of ideas

                 Prof. Rushen Chahal      5-24
External Recruitment Sources
• High Schools and Vocational Schools
        • Community Colleges
      • Colleges and Universities
  • Competitors in the Labor Market
         • Former employees
            • Unemployed
          • Military Personnel
       • Self-employed Workers
              Prof. Rushen Chahal       5-25
High Schools and Vocational Schools

           • Clerical and other entry-
             level employees
           • Some companies work
             with schools
           • Companies may loan
             employees to schools

              Prof. Rushen Chahal    5-26
Community Colleges

       • Sensitive to specific
         employment needs in
         local labor market
       • Graduate highly
         sought-after students
         with marketable skills

     Prof. Rushen Chahal          5-27
Colleges and Universities

         • Professional,
           technical, and
         • Placement directors,
           faculty, and

        Prof. Rushen Chahal   5-28
Competitors in the Labor Market
• When recent experience is needed,
  competitors and other firms in same
  industry or geographic area are
  important sources
• Smaller firms look for employees
  trained by larger organizations

               Prof. Rushen Chahal      5-29
Former Employees

    • In past, punished with
      no-return policies
    • Smart employers try
      to get their best ex-
      employees to come

    Prof. Rushen Chahal    5-30
• Qualified applicants become
  unemployed every day
• Companies go out of business
• Cut back operations
• Merge with other firms
• Employees are fired

              Prof. Rushen Chahal   5-31
Military Personnel

     • Proven work history -
       Flexible, motivated,
       drug free
     • Goal and team

     Prof. Rushen Chahal   5-32
Self-Employed Workers

       • Technical
     • Professional
    • Administrative
   • Entrepreneurial

       Prof. Rushen Chahal   5-33
Online Recruitment

       • Perhaps biggest
         change in way that
         organizations recruit
       • Revolutionized way
         companies recruit
         employees and job
         seekers search and
         apply for jobs

     Prof. Rushen Chahal         5-34
           Internet Recruiter
• Also called cyber recruiter, is person
  whose primary responsibility is to use
  Internet in recruitment process
• Most companies currently post jobs on
  their organization’s website
• More a company recruits on Internet, the
  greater the need for Internet recruiters
• High-tech firms have greatest needs
                 Prof. Rushen Chahal         5-35
            Virtual Job Fair
• Online recruiting method engaged in by
  single employer or group of employers to
  attract large number of applicants
• A wider range of students than might
  attend a live fair

                 Prof. Rushen Chahal     5-36
      Corporate Career Website
• Job sites accessible from company
  homepage that lists company positions
  available, providing way for applicants to
  apply for specific jobs
• Major resource for both job seekers and
  companies seeking new employees
• Many firms have established career
  portals on their corporate website
                  Prof. Rushen Chahal          5-37
      weblogs (blogs for short)
• Google or a blog search engine such as can be used
• Type in a key phrase like marketing jobs
• Google launched
• Stealthy background checks

                 Prof. Rushen Chahal     5-38
General Employment websites

    • -
      Largest employment

           Prof. Rushen Chahal   5-39
• National, web-based system for recruiting
  college students for all types of
  employment, such as full-time, part-time,
  internship, co-op, work-study, and alumni
• 543 schools using NACElink system
• Three components: job-posting, résumé
  database, and interview scheduling

                 Prof. Rushen Chahal      5-40
         Niche Sites

• Websites that cater to a specific
• A site for virtually everyone

           Prof. Rushen Chahal        5-41
        Contract Workers’ Sites
• Sites are available to assist this segment
  of workforce
• Let workers advertise their skills, set their
  price, and pick an employer

                   Prof. Rushen Chahal        5-42
      Hourly Workers’ Job Sites
• Attracting blue-collar and service workers
• Most hourly workers pursue jobs by filling
  out applications
• Sites allow job-seekers to build application
  that can be viewed by employers
• Some job boards have bilingual call center

                  Prof. Rushen Chahal       5-43
  Traditional External Recruitment
• Media Advertising           • Internships
• Employment                  • Professional
  Agencies - Private            Associations
  and Public                  • Unsolicited Applicants
• Recruiters                  • Open Houses
• Job Fairs                   • Event Recruiting
• Executive Search            • Sign-on Bonuses
  Firms                       • High-tech
                   Prof. Rushen Chahal             5-44
         Media Advertising
• Communicates firm’s employment needs
  through media such as radio, newspaper,
  television, and industry publications
• Previous experience with various media
  suggest the approach taken
• Recently, use of newspaper advertising
  has declined because of online recruiting

                 Prof. Rushen Chahal      5-45
        Employment Agencies –
          Public and Private
• Organization that helps recruit employees and at
  same time aids individuals in attempts to locate
• Private agencies (often called head-hunters) –
  Best known for recruiting white-collar employees
• Public agencies – Operated by each state,
  receive policy direction from U.S. Employment
  Service. America’s Job Bank is a partnership
  between the U.S. Department of Labor and the
  state-operated Public Employment Service
                    Prof. Rushen Chahal         5-46

 • Used with technical,
   community colleges,
   colleges and

 Prof. Rushen Chahal   5-47
   Job Fairs
• Recruiting method engaged
  in by single employer or
  group of employers to attract
  large number of applicants
  to one location for interviews
• Opportunity to meet a large
  number of candidates in a
  short time

    Prof. Rushen Chahal       5-48
• Places student in a temporary job
• No obligation to hire student permanently
  or for student to accept permanent
• Typically temporary job for summer or
  part-time job during school year
• Students bridge gap from theory to
                 Prof. Rushen Chahal      5-49
      Executive Search Firms
• Locate experienced professionals and
• Need specific types of individuals
• Contingency search firms - Receive fees
  only upon successful placement
• Retained search firms - Serve as
  consultants to clients on exclusive contract
                  Prof. Rushen Chahal       5-50
Professional Organizations
       • Recruitment and placement
         services for members in
         many professions such as
         finance, marketing,
         information technology
       • Society for Human
         Resource Management
         operates job referral service

         Prof. Rushen Chahal       5-51
      Unsolicited Applicants
• Reputation of being good place to
  work attracts qualified prospects
  without extensive recruitment
• Well-qualified workers seek specific

                Prof. Rushen Chahal      5-52
           Open Houses
• Pair potential hires and managers in
  warm, casual environment that
  encourages on-the-spot job offers
• Cheaper and faster than agencies
• May attract more unqualified

               Prof. Rushen Chahal       5-53
      Event Recruiting

 • Opportunity to create image of
• Go to events that people you are
          seeking attend

            Prof. Rushen Chahal      5-54
Sign-On Bonuses

    • Used where severe
      shortages of highly
      skilled workers exist
    • Amounts vary

    Prof. Rushen Chahal       5-55
High Tech Competition

       • Unique way to get
         individuals interested
         in applying for
         technical positions
       • Try to identify the
         cream of the crop

       Prof. Rushen Chahal   5-56
     Applicant Tracking System
• Software application to help
  recruit employees more
• Enables HR and line
  managers to oversee entire
  process, from screening
  résumés, spotting qualified
  candidates, conducting
  personality/skills tests and
  handling background checks
                 Prof. Rushen Chahal   5-57
 Tailoring Recruitment Methods to
• Tailored to need each firm’s needs
• Recruitment sources and methods
  vary according to position being filled

                Prof. Rushen Chahal     5-58
                    Methods and Sources of Recruitment for an
                        Information Technology Manager

                                                                               Executive search firms

                                                                               High Tech Competition
                                                                               Professional associations
                                                                               Employment agencies

                                                                               Unsolicited applicants
                                        External Methods

                                                                               Media advertising

                                                                               Sign-on bonuses
                                                           Online recruiting

                                                                               Event recruiting
                                                                               Open houses
                                                                               Job Fairs
                   High/vocational schools
                   Military personnel
External Sources

                   Community colleges
                   College and universities
                   Former employees
                   Competitors in the
                   labor market                              X X X                           X X
                   Self-Employed                                       Prof. Rushen Chahal                 5-59
Recruitment for Diversity
         • Analysis of recruitment
         • Record of applicant flow
         • Utilization of minorities,
           women, and individuals
           with disabilities
         • Advertising
         • Employment agencies
         • People with disabilities
         • Other suggested
        Prof. Rushen Chahal             5-60
    A Global Perspective: China:
      Running Out of People?

• China has vast pool of unskilled labor
• Now complain that they cannot recruit
  enough cheap factory and manual workers
  and market is even tighter for skilled labor
• China’s history has left it with some
  peculiar problems

                  Prof. Rushen Chahal       5-61
Prof. Rushen Chahal   5-62