Recruiting and Managing in Labor Markets

Document Sample
Recruiting and Managing in Labor Markets Powered By Docstoc
					       Mgmt 383

         Chapter 7
Recruiting In Labor Markets
        Spring 2009

• The process of generating a
  pool of qualified applicants
  for organizational jobs
 Strategic Approach to Recruiting

• Knowing the number of personnel the
  organization will need.
   • The result of the HR Plan.
      • Staffing Tables
      • HR Audits (Manpower Budgets)
      • Envelope Forecasts
   • Recruiting is only as effective as the HR
     Plan is accurate.
        Strategic Approach to
• HR Strategic Recruiting Responsibilities:
  • Knowing the number of personnel the
    organization will need.
  • Identifying relevant labor markets.
  • Determining whether to hire personnel or use
    flexible staffing (level of outsourcing).
  • Level of internal v. external recruiting.
  • Identifying critical or essential skills.
    Strategic Approach to
• Consider legal ramifications of recruiting.
• Addressing affirmative action requirements.
• Determining the techniques most appropriate
  for advertising position vacancies.
• Evaluating the effectiveness of recruiting
 Strategic Recruiting Stages

      Assignment of      Strategic    Recruiting
HRP   Organizational     Recruiting    Method
      Responsibilities    Decisions    Selection
Assignment of Organizational

• HR Staff                     • Operating Mgrs’
  Responsibilities               Responsibilities
• Forecast recruiting needs.   • Anticipate vacancies.
• Recruiting ads &             • Determine applicant KSA.
  campaigns.                   • Assist recruiting effort w/
• Plans & conducts               information about job
  recruiting efforts.            requirements.
• Audits & evaluates all       • Provide feedback on
  recruiting activities          success/failure of
                                 recruiting activities.
Three Categorizations of Labor

  • Labor Force Population
  • Applicant Population
  • Applicant Pool
        Labor Force Population

• Labor Force Population - all the individuals
  who are available for selection if all possible
  recruitment strategies are used.
  •   Media (Newspaper Ads,Television & Radio)
  •   Labor Unions
  •   Professional Organizations
  •   Job Fairs
  •   College Recruiting
       Applicant Population

• Applicant Population - that portion of the
 labor force population that is available for
 recruitment using a specific recruiting
  • Applicant Population size is affected by:
     • Recruiting Method
     • Recruiting Message
     • Applicant Qualifications Required
     • Administrative Procedures
          Applicant Pool

• Applicant Pool - that portion of the
  applicant population that actually applies
  and is evaluated for the position.
Identifying Labor Market

   Labor Force Population
    Applicant Population
       Applicant Pool
        Specific Labor Market
• Geographic labor markets
• Global labor markets
• Industry/occupational labor markets
  • Construction
  • Manufacturing
  • Retail trade
• Educational/technical labor markets
  • Specific degrees (BBA, BME, BEE)
  • Specific certification (CPA, PHR, GM certified mechanic)
  • Specific fields (IT, RNs, etc.)
   EEO Ramifications of
• Disparate impact.
• Eligibility for government contracts
  or subcontracts.
• ADA/Rehabilitation Act
  Strategic Recruiting Decisions

• Organizational-Based Recruiting v.
  Outsourced Recruiting.
• Regular v. Flexible Staffing
• Recruiting Sources: Internal v. External
• Diversity/AA Considerations
 Organizational-Based Recruiting
    v. Outsourced Recruiting
• Do our own (organizational-based [a.k.a.,
  traditional]) or contract it (outsourced).
• Examples of Outsourced recruiting
  • Private employment agencies
  • Public employment agencies
  • Professional Employer Organizations (PEOs)
    and employee leasing.
Recruiting Presence and Image

• Continuous recruiting (college recruiting,
  e.g.) v. intensive recruiting (ad hoc).
• Recruiting efforts may have a positive or
  negative impact on image.
  • Recruiting staff represents firm to outside
  • Can be tied to marketing efforts (Southwest
    Airlines as on of top 100 Best Companies to
    Work For, e.g.).
   Regular v. Flexible Staffing

• Regular Staffing - hiring traditional
  permanent employees to perform the jobs in
• Flexible Staffing – use of nontraditional
  • Temporary employees – fulltime employees
    who work for less than 90 days. Hired for short
    term shortages.
  • Independent contractors
   Regular v. Flexible Staffing
• Considerations in deciding whether to hire
  personnel or use flexible staffing.
  • Hiring permanent employees.
     • Better control
     • Benefit costs are usually higher
  • Hiring “nontraditional employees” (outsource).
     • Cheaper
     • Loss of control
    Advantages of Internal
•   Enhances employee morale.
•   Better assessment of candidate’s abilities
•   Lower cost for some jobs.
•   A motivator for good performance.
•   Causes a succession of promotions.
•   Firm has to hire externally only at the entry
Disadvantages of Internal
 • Inbreeding
 • Political infighting
 • Adverse reaction of those not
 • Increased need for management
   development programs
               Ripple Effect/Movement
   (1)      (2)      (3) + (4) + (5) = (6)                (7)            (8)
  Level Positions Increase Retire- Termin- Primary Vacancies resulting   Total
        beginning (decrease) ments ations Positions from promotions       Positions
        FY 2003    in staff                to be    retirements, etc.     to be
                                           filled   on lower levels       filled
_______________________________________________(I) (II) (III) (IV)       FY2004

    I        10        --      3        2       5

    II       20        4       5       2       11

   III       40         8      5       8      21

   IV        80       12      10      10       32
  Total     150       24      23      22       69
                Ripple Effect/Movement
  (1)     (2)        (3) + (4) + (5) =       (6)             (7)           (8)
Level   Positions Increase Retire- Termin-   Primary Vacancies resulting Total
        beginning (decrease) ments ations   Positions from promotions      Positions
        FY 2003 in staff                    to be     retirements, etc.    to be
                                             filled    on lower levels     filled
_____________________________________________________ (I) (II) (III) (IV) FY2004

   I       10       --         3        2       5       -- --   --   --       5

  II       20        4          5      2       11        5 --   --   --      16

 III       40        8          5      8       21       5 11 --      --      37

 IV        80      12         10      10       32       5 11 21      --     69
Total     150      24         23      22      69       15 22 21            127
    Internal Recruiting Sources
• Job Posting/Job Bidding Systems
   • Post before external recruiting.
   • Notifies current employees of all vacancies for
     which they may be qualified.
• Promotions & Transfers
   • Dependent on quality of organizational
     development programs.
   • Must ensure that internal candidate has requisite
 Employee Focused Recruiting
• Current employee referrals
• Recruiting former employees
  • Retired employees.
  • Female employees whose school age
    children permit her to return to full time
  • Luring back former employees from other
  Advantages of External
• New perspectives, enhanced creativity from
  “new blood.”
• Instant qualifications (faster than training).
• Provides new industry (as opposed to firm)
• Does not create internal political problems
  as new hire has no group of “political
  supporters” in the organization.
Disadvantages of External
• Candidate may not “fit’ the organization.
• Causes morale problems when internal
  candidates are not selected.
• Longer orientation time is required.
• Difficult to assess external candidates.
   External Recruiting Sources
• College Recruiting (Placement Office)
  • Expensive and time consuming
  • Criteria for selecting colleges:
     • Reputation of the College (MIT v. NWCC)
     • Market competition
     • Past experience with graduates
• School Recruiting
  • Career days.
  • Good relations may encourage specialized programs
    to meet your needs
  External Recruiting Sources
• Labor Unions
  • Primarily for skilled trades.
  • Used a good deal in the construction
  • Downside, less flexibility then nonunion
    labor because of CBAs.
 External Recruiting Sources
• Employment Agencies
  • Public
  • Private
• Executive Search Firms
  • A.k.a. “head-hunters.”
  • Retainer fee system - your firm is charged
    regardless of the outcome of the search.
  • Contingency fee system - your company is only
    charged if the search is successful.
  • Fees are usually high (usually 33.3% of the first
    annual salary).
  External Recruiting Sources

• Competitive Sources
  • Professional associations (AOM, AMA, etc.)
     • Placement websites.
     • Placement tables at conventions.
  • Trade associations
     • American Production and Inventory Control Society
     • National Association of Chain Drug Stores
  • Competitors
  • Customer (Home Depot, Lowes, Best Buy)
  External Recruiting Sources
• Media Sources
  • Media:
    • Newspapers
    • Magazines
    • television
    • Radio
    • Billboards (Roman Catholic Church
      priest story)
      E-Recruiting Sources
• External Computerized Databases
  • Electronic compilation of resumes and
    application forms.
     • Internet job boards
     • HotJobs
  • Profession/career websites
     • National Society of Professional Engineers (NSPE)
      E-Recruiting Sources

• Employer websites
  • Sites provide vacancies and online
  • Programs can sort through resumes and
    application forms to identify qualified
    candidates and match them to specific
  Advantages of E-Recruiting

• Wider exposure of position announcements
  (reaches a broader audience).
• Casts a wider geographic net (even
• Permits targeting specific audiences.
• Increases applicant pool.
• Reduces response time (better than snail
Disadvantages of E-Recruiting

• Draws more unqualified applicants
  (increases screening efforts).
• False responses (browsing, not buying).
• Qualified applicants without internet access
  are excluded (possible disparate impact).
• Privacy concerns in light of EEO and credit
  reporting laws.
Legal Issues in Internet Recruiting
• Are rejections resulting from screening
  software really based on the job
• Are protected classes being excluded?
• How can applicant flow data be collected
  for EEO-1?
• Who is a real applicant and who is “just
• The informality of on-line communications
  may lead to improper information being
  disclosed (TMI).
     Affirmative Action
• Accuracy of goals (could become
  inflexible quotas).
• What activities could adversely affect
  recruiting for goals:
   • Word of mouth recruiting.
   • Supervisor recommendations.
   • Unrealistic KSAs.
    Media Choice Considerations
•   What do we want to accomplish?
•   Who are we trying to reach?
•   What should the message convey?
•   How should the message be presented?
•   Which is the appropriate medium?

    • Note: Media results should be tracked.
 Techniques Appropriate for
• Determining the techniques most
  appropriate for advertising position
  •   Employee Referrals.
  •   Media (Newspaper Ads,Television & Radio).
  •   Labor Unions.
  •   Professional Organizations.
  •   Job Fairs.
  •   College Recruiting.
  Trigger Words to Avoid
• “Trigger words” to avoid in
   • Help wanted male (or female).
   • Must be young & energetic.
   • Patrolman.
   • Metermaid.
   • Junior executive.
 Evaluating the Effectiveness of
• Possible criteria:
  • Quantity of applicants
  • Quality of applicants
  • Time required to fill openings
  • Affirmative action goals are met
  • Cost per applicant
             Recruiting Expenses .
            Number of recruits hired
Evaluating Recruiting Costs
• Direct Costs
   • Advertising
   • Recruiter’s salaries
   • Travel expenses
   • Agency fees
   • Telephone expenses
• Indirect Costs
   • The time managers spend in interviews
   • Corporate image
 Evaluating Recruiting Benefits
• Benefits
  • Reduced time from contact to hire.
  • Increased pool of qualified applicants to
    select from.
  • Improved proportion of acceptance to
    initial offers.
    Evaluating the Effectiveness of
• Yield ratio - a comparison of the number of
  applicants at one stage of the recruiting
  process to the number at the next stage.
• Selection rate - the percentage of personnel
  hired from a given group.
• Acceptance rate - the number of applicants
  hired divided by the number of applicants
  offered jobs.
   Evaluating the Effectiveness of
• Success rate - the comparison the number of
  applicants hired who became successful
  employees against the number of who did not.