4 Recruiting

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					       Recruiting


Prof. John Kammeyer-Mueller
         MGT 6366
         Recruiting Outline

1. Fundamental matching issues
2. Internal vs. external recruiting
3. Increasing information in
   recruiting processes
4. Yield ratios and legal
   ramifications of hiring methods
   Fundamental matching issues

• General matching principles
• Specific areas for matching
  • Person-organization fit
  • Person-group fit
  • Person-job fit
• The problem of imperfect
  information
      Why Is Recruiting So Important?


• Watson Wyatt estimated that if a company has an excellent
  recruiting function, is associated with 10% higher total market
  value
• All of the other staffing functions are contingent on recruiting
  the right people
   • You can only select qualified candidates if they apply in the first place
   • Good candidates could get more out of proper training and
     development opportunities
   • Individuals who are in high demand will be especially able to pick
     companies that do a good job of recruiting
  The Staffing Components Model:
     Remembering the Process

Applicant                                     Organization
 (person)                                         (job)



                  Recruitment
            (identification and attraction)


                    Selection
            (assessment and evaluation)


                  Employment
            (decision making and match)
   A Matching Model of Employment


Employee needs and                          Employer compensation
     desires                                   and conditions
                             Match

                         Job satisfaction              Quit/remain

                     Job performance                    Fire/retain

                             Match
Employee knowledge,                            Employer job
 skills, and abilities                         requirements
  Chapman, Uggerslev, Carroll, Piasentin, & Jones:
       Applicant Attraction and Job Choice

• What do we consider ―recruiting‖
  • All practices and decisions that affect the
    number or types of individuals that are
    willing to apply for or accept a given
    vacancy (from Rynes)
  • Activities subsumed under this definition
    • Posting advertisements
    • Process of contacting potential applicants
    • Conducting initial interest interviews
   Chapman, Uggerslev, Carroll, Piasentin, & Jones:
        Applicant Attraction and Job Choice

• Major outcomes of the recruiting process
   • Job pursuit intentions—
      • measured early in the process as a desire to enter the application
        pool
      • obviously can’t involve much of the recruiting process
   • Job-organization attraction
      • an overall attitude regarding the organization
      • similar to the idea of “liking” a company
   • Acceptance intentions
      • behavioral aim of taking a job if offered
      • typically studied later in the process
   • Job choice
      • a final point in time measure of (dichotomous) behavior
      Chapman, Uggerslev, Carroll, Piasentin, & Jones:
           Applicant Attraction and Job Choice
                         Attraction   Acceptance    Job choice
                                       intentions
Compensation               0.27          0.42         0.12
Type of work               0.37          0.52           --
Work environment           0.60          0.53           --
Recruiter behaviors        0.29          0.32         0.11
Procedural justice         0.39          0.40         0.09
Perceived PO fit           0.46           --          0.18
Perceived alternatives     0.16         -0.06         0.07
Hiring expectancies        0.26          0.36         0.17
  Chapman, Uggerslev, Carroll, Piasentin, & Jones:
       Applicant Attraction and Job Choice

• Conclusions
  •   Job characteristics really do matter
  •   So do recruiting characteristics
  •   Fit is a very important consideration
  •   Acceptance intentions are probably the
      best proxy for actual job choice
      available, but they still are only
      approximately (not very closely) related
      to actual behavior
     Internal vs. External Recruiting

• Strengths and weakness of
  internal/external recruiting methods
• Methods of external and internal
  search
• Determining the company’s overall
  strategy
• Assessing the need for firm-specific vs.
  general human capital
HR configurations: Matching HR practices
            to one another

• Internal market                 • External market
   •   Internal promotion            •   External recruiting
   •   High levels of training       •   No training
   •   Pay for time-in-position      •   Pay for performance
   •   Commitment is emphasized      •   Individual performance is
                                         emphasized
• Examples
                                  • Examples
   • WalMart, 3M, Publix,
     Proctor & Gamble, FedEx         • Broadcasting, consulting,
                                       advertising, and investment
   • Japanese firms are almost         banking are largely
     entirely internal                 external
HR configurations: Matching HR practices
            to one another

• Consider two idealized types of HR practices
   • Internal market
       • Internal promotion, high levels of training, high pay for time-
         in-position, commitment is emphasized
   • External market
       • Almost all external hiring, almost no training, pay only for
         performance, individual performance is emphasized
• Classic examples of companies who have a major emphasis on
  internal promotions
   • WalMart, IBM, 3M, Proctor and Gamble, FedEx
   • Japanese firms are almost entirely internal
       Images of the Labor Markets

Internal labor market                                                External labor market

                                 Labor market of
  Head manager                     experienced                           Head manager
                                    managers


                               Labor market of
 Assistant manager           experienced assistant                     Assistant manager
                                  managers


                              Labor market of new
Management trainee                                                         Team leader
                               college graduates


               Unit 1, Lecture 2: Internal Recruiting and Recruiting Metrics
 Conical model of
organizations and
the Internal Labor
           Market
Rank: Increases in decision
                  authority

Centralization: Increases in
  social integration into the
   firm’s underlying culture

    This protects the firm’s
     decision making core
Internal Labor Markets and Employer
             Knowledge

• Why are ILMs good?            • ILMs are bad
   • Observe people during         • Political processes are at
     the course of their work        work
   • Firm-specific human           • Peter Principle
     capital                       • Ossification of ideas
   • Build employee                • No information about
     commitment                      competitors’ operations
   • Reduce turnover


   Not all employees are in the same internal market! Most
       companies have multiple tracks for promotions.
Internal Versus External Staffing
     Methods for Internal Recruiting

• How to identify current talent?
  • Internal posting
     • Helps you find people who are interested
  • Performance (e.g., sales, customer
    satisfaction)
     • This helps you find people who are good at their
       current job
  • Managerial reviews
     • This helps you find people with the requisite skill
       for the next level of the organizational hierarchy
              Systems for Recruiting:
                 Closed vs. Open
                                    Open system
      Closed system
                              Human resources posts job
                                      opening
Human resources searches
   files for candidates
                                HR receives bids from
                                     applicants
List of candidates given to
      managers by HR            HR screens candidates

                              List of candidates given to
   Manager interviews
                                    managers by HR
      candidates
                                 Manager interviews
Position filled by manager          candidates

                              Position filled by manager
      Methods for Internal Recruiting

• Advantages and disadvantages of closed systems
   • Tend to be inexpensive and efficient
   • Tend to be faster
   • Closed systems can do a better job of identifying
     individuals with highly specialized skills
   • Do not help change the workforce and may lock out
     underrepresented groups
   • An open system identifies more candidates
   • Open systems are generally going to be seen as more fair
     and unbiased
• Which type of system would you rather see at your
  workplace? Why?
Should you hire internally or externally?

• The obvious answer is ―it depends‖
  • Uniqueness of human capital
  • Value of the employees to the firm
• Because companies often have a
  mixture of ―core‖ and ―peripheral‖
  employees, most use a mix of
  internal and external markets
            Internal Labor Market Tracks:
               Many Options in Practice

Traditional professional                    Alternative professional mobility path
     mobility path

   Senior consulting                       Vice President            Senior consulting
       engineer                             Engineering                  engineer

  Consulting Engineer                  Manager Engineering         Consulting Engineer


    Senior Engineer                    Supervising Engineer            Senior Engineer


        Engineer                                            Engineer


                                  Lateral Mobility Path
  Production                Project             International               Sales
   manager                 manager                  sales                  manager
  What Information is Conveyed During
              Recruiting

• Levels of fit
• Information sought by
  employees
• Information sought by
  employers
        A Summary Model of Job Choice
                  Decisions

      Sources of
                                     Reactions to    Recruiting outcomes
     information
                                       the Job      •Job acceptance
•Signals
                                     •Attributes    •Post-hire attitudes
•Social information
                                     •Attitudes     •Post-hire performance
•Recruiting methods


                       Moderators
                      •Credibility
                      •Richness
An Example of Decision Making in Practice


• Signals
   • What were the things that you knew about UF in general, and
     graduate school in general, that influenced your ideas about coming
     here?
• Social information
   • What types of information did you receive from peers, family, friends,
     and co-workers that influenced your decision?
• Recruiting methods
   • What did UF do to convince you to come here?
         Defining Effective Recruiting

• Salience
   • The message reaches enough people
   • The message reaches the right people (e.g., people who are qualified
     and likely to fit in well with the organization)
• Credibility
   • The message being delivered is accepted by those hearing it
   • Information is considered unbiased and objective
• Richness
   • The message contains enough information for the candidate to
     appraise the position
   • The message is sufficiently detailed
   • Respondents can solicit more information if needed
   Signaling Theory and Job Choice

• Signals
  • Salient pieces of information that shape
    choices under uncertainty
  • The attributes of any company are not
    known with certainty, and people are
    skeptical of company information
  • Requires employees to look for signals of
    what the company will be like
  • What are some signals that tell you what
    a company might be like?
Signals in the recruiting process: Examples of
              inferences about fit

• Inferences about interpersonal fit
   • ―I wasn’t sure of the fit at first. But after talking with the
     people there, I feel like there was a pretty good fit. I have
     talked to seven people there and liked all of them.‖
• Inferences about corporate culture
   • ―They interviewed about a hundred people in a day. Then,
     based on the initial interview, people were asked to re-
     interview the next day in different divisions. So instead of
     just putting resumes in a pile and having people look at
     them, they were on the ball.‖
   Signals in the recruiting process: Strong
                   negatives!

• Inferences about skills
   • ―_____ has a management training program which the recruiter had
     gone through. She was talking about the great presentation skills that
     _____ teaches you and the woman was barely literate. She was
     embarrassing. If that was the best they could do, I did not want any
     part of them.‖
• Inferences about diversity
   • ―The guy at the interview made a joke about how nice my nails were
     and how they were going to ruin them due to all the tough work.‖
   • ―For example, the ______ companies wouldn’t even put one woman on
     my schedule. That scares me.‖
Avery: Reactions to Diversity in Recruitment
               Advertising

• Participants were directed to a fictitious consulting
  firm website
• Constructed websites for three types of organizations
   • Uniform: displayed two pictures containing five White
     employees, as well as a picture of three White managers
   • Skewed: displayed two Black employees and three White
     employees, while still using the same three White managers
   • Balanced: displayed two Black employees and three White
     employees, with one Black manager and two White
     managers
Avery: Reactions to Diversity in Recruitment
               Advertising

• Critical variables
  • Organizational attractiveness: not
    intention to take a job, just whether you
    think this would be a good place to work
  • Other-group orientation: an inventory
    designed to assess people’s perceptions
    of other races or ethnic groups (e.g., ―I
    like meeting and getting to know people
    from ethnic groups other than my own‖)
Avery: Reactions to Diversity in Recruitment
               Advertising

                        • Interaction shows a different
                          story
                        • White viewers with high other-
                          group orientation preferred
                          diversity, Whites with low other-
                          group orientation preferred
                          homogeneity
                        • Blacks with high other-group
                          orientation disliked the skewed
                          picture most of all, whereas
                          Blacks with low other-group
                          orientation preferred more
                          Blacks at any level
Avery: Reactions to Diversity in Recruitment
               Advertising

• Other group orientation is a very important moderator in
  these results
   • Some Whites prefer homogeneous workplaces, others prefer
     heterogeneous workplaces
   • Some Blacks prefer any situation that results in more Blacks at work,
     others are especially wary of situations where Blacks are in the setting
     but only occupy low status jobs
• Future research possibilities
   • Is this a common effect for other types of minority status (religion,
     national origin, gender, sexual orientation, disability status, etc.)?
   • What might the behavioral correlates of these outcomes be?
Increasing Information in Recruiting Processes

• Increasing employee
  knowledge of employers
• Increasing employer
  knowledge of employees
• The importance of recruiting
  sources as an alternative
Developing an Effective Search Strategy


• How do you find out about jobs?
   • Write down your top three methods
   • For each method describe:
      •   Number of jobs you could find out about
      •   Likelihood of getting jobs from this source
      •   What information you would get from this source
      •   How well informed you’d be if you used this source
• What were your concerns?
   • List the top three things that attracted you to companies
   Major Sources for New Employees

• Media sources
   • Company website, job boards, newspaper advertising
• Recruiting fairs
   • Campus recruiting offices, community hiring fairs
• Social networks
   • Friends and family referrals, professional networks
• Staffing organizations
   • Headhunters, temporary agencies, recruiting firms,
     unemployment office/job service
         One possible solution:
    Increase employee knowledge
• Job trials, internships, and
  temps
  • Employees a chance to see the organization
    from the inside
  • Get a chance to interact with co-workers in a
    variety of situations
  • Results suggest an even stronger effect than for
    realistic job previews.
HR in the News: Job Searches and Connections

 •   Who might be your greatest asset in networking? – A spouse or partner
 •   Why?- The only people as devoted in a job search as unemployed people
     themselves are job seekers’ partners and spouses.
 •   Situation
      •   Job creation increasing but not as much as forecasted.
      •   Average duration of unemployment for professionals is nearly 24 weeks.
 •   Advantages of using connections
      •   Spouse can help in a number of ways
            • Asking a large employer if a spouse can use the company’s resource library
            • Actually putting the resume into the hands of the human resources director
      •   No law against an employer relying on word of mouth recommendation to fill a job
          opening
      •   Spouses and partners are often seen as reliable references
 •   NY Times- Feb. 29, 2004 Looking for a New Job? Help May Be Snoozing Next to
     You
            One possible solution:
       Increase employee knowledge

• Applicant source effects
   • Those who are recruited by friends and co-workers:
       • Are more satisfied and/or committed
       • Are less likely to turnover.
   • Contacts in a social network provide jobs that:
       • Pay more
       • Are more likely to be set up specifically for the applicant
   • Applicants with information from formal and informal sources:
       • Higher pre-hire knowledge of the job
       • Lower turnover
       • Higher qualifications
 Another Possible Solution: Using Recruiting
                   Firms

• Typical processes for professional recruiting firms
   • Candidates can apply directly to these companies to get
     their names into a database
   • Often, these companies will have official recruiters (e.g.,
     headhunters) who seek out full time employed individuals
     who might be attractive to employers
   • Employers can solicit these companies for access to the
     database of applicants
   • Example: recommendedrecruiter.com maintains a
     searchable database of recruiters by location
                  Job Fair Recruiting

• Typical procedures
   •   Establish connection with colleges
   •   Provide advertising through media
   •   Information on multiple jobs is presented
   •   Brief informal interviews and screening are usually part of
       the process
• Advantages and disadvantages:
   • For companies?
   • For applicants?
                 Media Campaigns

• Typical procedures
   •   Prepare banner ads, radio, and television messages
   •   Receive applications through company website
   •   Information on multiple jobs is presented
   •   Continually updated as the need arises
• Advantages and disadvantages:
   • For companies?
   • For applicants?
                  Employment Websites

•   Employment websites
     •   CareerBuilder, HotJobs, and Monster
     •   List jobs for employers for a fee
     •   They also will post resumes for employees
     •   Companies can get tracking data on recruiting methods and their effectiveness
     •   Also can track EEO data
     •   Some of these sites will pre-screen potential applicants
•   Niche websites
     •   Often these are occupationally specific
     •   Have a much higher rate of qualified applicants
     •   These are growing rapidly in some fields
     •   Also used as part of affirmative action planning
•   Advantages and disadvantages:
     • For companies?
     • For applicants?
      Using LinkedIn for Recruiting

• A LinkedIn survey of its users found that a third had been
  contacted at some point regarding a job opportunity.
• Most of the "power users" paying LinkedIn $200 a month for
  premium services such as InMails are recruiters, Guericke says.
• Tim Farrelly, president of Coit Staffing, requires all 12
  recruiters in his company to use the site. He estimates he
  spends $7,200 a year on LinkedIn services, but "We’ve
  probably made at least $100,000 because of it.―
• Similar efforts are being made to use Facebook and MySpace
  for recruiting
Realistic Recruiting Expectations?
      Types of Recruiting Messages

• Realistic
    • Workers told both the good and bad points of jobs
    • Based on the assumption that turnover is the result of a mismatch between
      information that’s typically provided and what jobs are really like
• Branded
    • Emphasize the unique properties of the organization and what it does that is
      different than competitors
    • Often accompanied by descriptions of why the company should be an
      employer of choice
    • Involves research on perceptions of the organization
• Targeted
    • Emphasizes how the organization or job is especially well suited to a specific
      group of job seekers
    • Usually involves extensive research on applicant preferences
Employment and bounded rationality:
       Credibility in action

• Employer knowledge                • Employee knowledge
   • Job conditions                     • Experience level
   • Compensation                       • Motivation level
   • Career paths                       • Intention to stay


          Both sides have incentives to oversell
  • Higher quality workers               • Better working
  • Ability to pay less                    conditions
  • Unlikely workers will quit           • Ability to get paid more
    right away                           • Unlikely the firm will fire
                                           someone right away
                      Result: adverse selection
    The number one complaint made by recent
             hires: Lack of honesty

•    I felt schizophrenic the first 6 weeks I was here…the lip service thing was, well,
     welcome and we’re so glad you’re here. But in daily practice, you would
     accidentally get in trouble because of something you didn’t know.
•    The salary that was guaranteed to me when I accepted this position has not been
     met. While I do not intend to quit over this issue as the amount is only about $1000
     less (per year), additional behavior such as this, and my co-workers' lobbying
     against my salary, will be detrimental to my continuing employment.
•    I was ready to go on day two, and I’m still ready to go. I spend two hours a day
     looking for a new job…I have to say, the job is not what I was led to believe it is.
     The things I’m doing, I did four or five years ago. I took this job because I was able
     to grow in my career and learn more and do more…And it’s also, HR didn’t know
     their packages very well, so I have less medical than I had before, and those are
     things I checked out prior to starting. It’s been frustration every step, in just about
     everything.
 The number one complaint made by recent
          hires: Lack of honesty


• If I am asked to do any more work than what is currently in my job
  description, I will quit. The job I signed on to do is easily a 2-person, full
  time job and I am expected to do it all in 40 hours a week. It is impossible
  and unrealistic, and it constantly sets me up to fail.
• I intend to quit because the job description and conditions I was recruited
  under aren't at all what I've been doing—I was told no travel, but I have to
  travel. I was told I'd be doing instructional design, project management,
  and administrative work, I’ve been since that I had a specific function,
  doing whatever my manager doesn't want to do. I've been here since May
  and was promised benefits (health, 401K) starting May 15. It's mid-
  November and I still don't have any benefits.
  A Model of Recruiting and Information


                             Realism processes
                           •Coping & role clarity
                           •Perceived honesty

Recruiting sources/                                           Work outcomes
    pre-entry                                              •Attitudes
   information                                             •Withdrawal behavior

                           Individual differences
                           •Ability
                           •Personality

    The paths in bold are generally better supported; the evidence that good
                employees have better friends is relatively weak
                One possible solution:
           Increase employee knowledge

• Realistic job previews
   • Workers told both the good and bad points of jobs
   • Based on the assumption that turnover is the result of a mismatch
     between information that’s typically provided and what jobs are really
     like
• Examples from Prudential’s realistic recruiting
    • A Prudential representative finds that a high degree of personal
      recognition is available. And a successful Prudential Special Agent is
      recognized in the community as a professional. But there are times
      when every Special Agent feels discouraged. A career as a special
      agent is not an easy one. It can mean many personal sacrifices; it can
      mean working four or more nights a week, in the beginning; it can
      mean postponing a special outing or an evening at home; it can mean
      having to take extra insurance courses.
Phillips: Effects of Realistic Job Previews

• Realistic job previews
   • Workers told both the good and bad points of jobs
• Theories explaining why RJP should work
   • Applicant self-selection: applicants who don’t fit will get out
     of the recruiting pool (Wanous)
   • Vaccination: employees have a small taste of
     organizational reality so they can be prepared to cope
     (McGuire)
   • Commitment: if employees know the bad parts of the job,
     and they take it anyway, they’ll be more committed to their
     decision (Wanous; Bem)
   • Honesty: Companies who provide realistic information
     upfront will be seen as more honest (Hom et al.)
Example from Prudential’s realistic recruiting

• A Prudential representative finds that a high degree
  of personal recognition is available. And a successful
  Prudential Special Agent is recognized in the
  community as a professional. But there are times
  when every Special Agent feels discouraged. A
  career as a special agent is not an easy one. It can
  mean many personal sacrifices; it can mean working
  four or more nights a week, in the beginning; it can
  mean postponing a special outing or an evening at
  home; it can mean having to take extra insurance
  courses.
Phillips: Effects of Realistic Job Previews


• Factors that moderate the effectiveness of RJPs
   • Settings—laboratory settings may be missing important
     elements of the employment setting
   • Timing—RJP information should be more effective if it’s
     provided before a choice is made
   • Medium—verbal information is typically more persuasive
     and salient, so one would expect that verbal RJP would
     have more of an effect
Phillips: Effects of Realistic Job Previews




 • Setting and timing don’t matter as much as one might think
 • Verbal RJPs are more effective across most categories for influencing
   attitudes
 • Videotaped RJP does seem more related to performance because
   they can show actual instances of performance, which might be hard
   to do verbally
 • RJP does very little in general to improve satisfaction or commitment
  Realistic Job Previews and Applicant
                Reactions
• Concerns about realistic previews
   • Negative information is used more by applicants than
     positive information on pay and promotions
   • If given a choice, most individuals prefer jobs that are
     ―sold‖ during recruiting
   • Bretz & Judge, 1998 (after the Philips meta-analysis)
     One possible solution:
Increase employee knowledge
    Branded Recruiting Messages

• Strategy to create a distinctive presence as an
  employer
   • Specifically advertising the company’s employment
     philosophy
   • Pairing product brand with beliefs about employment
• Sources of brand beliefs
   • Product market presence
   • Industry
   • Media profiles (e.g., Fortune 100 Best Companies to Work
     For)
  Collins and Stevens: A Brand Equity
         Approach to Recruiting
• Begin with the premise that many studies of applicant
  attraction are atheoretical
• Brand equity
   • Beliefs held by consumers about a product’s or a service’s
     brand that affect their preferences relative to other
     products or services with similar attributes
• Neural network approach
   • Nodes representing the brand itself; the best brand is one
     that is easily activated in memory
   • Links between the brand and related attributes; the best
     brand is associated with other positively valued images
  Collins and Stevens: A Brand Equity
         Approach to Recruiting
• Publicity
   • Directly affects the accessibility of the brand in memory
• Sponsorships
   • Deliberately affecting the association of the brand with
     other positive images
• Word-of-mouth endorsements
   • An especially credible source of information (credibility
     should increase strength of associations)
• Recruitment advertising
   • Obviously, the most direct attempt to increase both salience
     of the brand and positive associations
  Collins and Stevens: A Brand Equity
         Approach to Recruiting
• Methods
   • Sample was graduating students from three engineering schools
     (n=133)
   • Initial surveys were distributed 1 month before participants could
     register for company interviews
   • Developed a survey capturing the four dimensions of publicity,
     sponsorship, word-of-mouth, and advertising
       • Dimensionality assessed via PCA (appropriate for this case)
       • Validity evidence included using ICC(1) and ICC(2) across organizations,
         showing that there were reliable differences from company to company
   • Within subject analyses
       • Each individual reported on up to 10 organizations
       • Fixed effects regression with person controls
       • This is closely related to HLM, which is probably what they’d use if they were
         doing this now
Collins and Stevens: A Brand Equity
       Approach to Recruiting
                   • Interaction effects
                      • Bonferroni correction
                        (hooray!)
                      • Show that publicity has
                        greater effects when
                        sponsorship is high
                      • These results were
                        replicated for interactions of
                        publicity with everything,
                        but nothing else interactions
                      • Conclusion: publicity is the
                        über-moderator
Collins and Stevens: A Brand Equity
       Approach to Recruiting
                   • Mediation analyses
                     • For both intentions
                       and actual
                       applications, attitudes
                       and attributes
                       mediate the
                       relationship between
                       recruiting activities
                       and job choices
                     • Not really surprising,
                       but still a necessary
                       analysis
    Branded Recruiting Messages

• Examples
  • General Electric has long promoted itself as a very
    achievement and outcome oriented employer
  • That SAS video that we watched is obviously a case in
    point
  • The U.S. armed forces have always pursued this approach
• What are the potential advantages and
  disadvantages of this approach?
    Targeted Recruiting Messages

• Strategy to attract specific employees
   • Assessing the preferences of a group of people
   • Developing messages that specifically correspond to these preferences
• Examples
   • Organizations under affirmative action plans will seek to place
     advertisements in publications aimed at women and minorities
   • Employers offer specific benefits that are especially attractive to
     younger workers
   • Employers try to create an image that fits with the company’s desired
     culture
• What are the potential advantages and disadvantages of this
  approach?
    Considering Different Recruiting
              Messages
• You are trying to hire recent graduates
  from UF to work at your company
  • Develop a realistic message
    • Emphasize good and bad points of the job
  • Develop a targeted message
    • Think about what recent college graduates
      are most interested in
  • Develop a branded message
    • What can your company offer to these
      graduates that is unique?
EEOC v. Chicago Miniature Lamp Workers:
         Referrals As a Problem?
• In 1980, the percentage of entry-level workers in Chicago
  who were black was 36.4%
• Between 1978 and 1981, Miniature hired 146 entry-level
  workers. Nine of these workers (6%) were black
• The percentage of black applicants who were hired was
  16.4%; the overall percentage of applicants who were hired
  was 6.1%
• The court said the applicant pool was more relevant for
  consideration than the regional job market, so the company
  was not found in violation
• It is important to note that this hinged on the fact that the
  company wasn’t actively recruiting
           Yield Ratios


• Basic concepts in calculating
  yield ratios
• Alternative metrics for
  recruiting method outcomes
      Accounting for Recruiting

• The cost of finding a new employee
  • Cost of advertising a position
  • Cost of selecting good performers
  • Cost of training the newcomer
  • Other costs? (Hard to measure)
• The outcomes of a new employee
  • Retention/duration of employment
  • Job performance
Evaluating the Quality of Recruiting Methods:
                Yield Ratios


                 Media      Website      Walk ins      Referrals   Totals

 Applicants        50          100           40              20     210
  Job offer        10           8            15              13     46
    Hired           9           8            14              13     44
   Survival         5           4            12              10     31


How to compute yield ratios:
Job offer rate: job offers divided by number of applicants
Hiring rate: hired divided by number of applicants
Survival/retention rate: survival divided by number of hires
Evaluating the Quality of Recruiting Methods:
                Yield Ratios

              Media   Website   Walk ins   Referrals   Totals
 Applicants    50      100        40          20        210
 Job offer     10       8         15          13        46
              20%      8%        38%         65%       22%
   Hired       9        8         14          13        44
              18%      8%        35%         65%       21%
  Survival     5        4         12          10        31
              56%      50%       86%         77%       70%
      Supplementing Yield Ratios with Cost
                  Information

                    Media       Website           Walk ins       Referrals
 Setup cost     $ 1,000.00     $   500.00     $              -   $    250.00
 Apply cost     $      10.00   $      8.00    $       15.00      $    100.00
Total apply     $    500.00    $   800.00     $      600.00      $ 2,000.00
    Total application costs are application costs * number who apply
Training cost   $ 1,000.00     $ 1,000.00     $ 1,000.00         $    750.00
 Total train    $ 9,000.00     $ 8,000.00     $ 14,000.00        $ 9,750.00
     Total training costs are training costs * number who are hired
 Total cost     $ 10,500.00    $ 9,300.00     $ 14,600.00        $ 12,000.00
     Total cost for a method is setup cost + total apply + total train
                   The ―Bottom Line‖
           Estimating Which Method to Use



                      Media      Website      Walk ins     Referrals
   Total cost       $10,500.00   $9,300.00   $14,600.00   $12,000.00
     Hired              9           8           14            13
 Cost per hire      $1,166.67    $1,162.50   $1,042.86     $923.08
    Survival            5           4           12            10
Cost per survival   $2,100.00    $2,325.00   $1,216.67    $1,200.00
Other Metrics That Have Been Proposed


• More about applicants
   • Applicant demographics by source
   • Applicant qualifications by source
   • Applicant performance ratings by source
• More about recruiter
   • Can also collect effectiveness data based on specific
     recruiters to identify good performers and also to identify
     good recruiting strategies that can be taught to others

				
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