PART TWO RECRUITMENT AND PLACEMENT

C H A P T E R T F i v e

Personnel Planning

Lecture Outline
and Recruiting 5
Workforce Planning and Forecasting
Strategy and Workforce Planning
Forecasting Personnel Needs (Labor Demand)
Improving Productivity Through HRIS
Forecasting the Supply of Inside Candidates
Forecasting the Supply of Outside Candidates
Talent Mgmt. & Predictive Workforce Monitoring
Developing an Action Plan to Match Projected Labor Supply
and Demand
The Recruiting Yield Pyramid In Brief: This chapter
The Need for Effective Recruiting
explains the process of
Why Recruiting is Important
What Makes Recruiting a Challenge?
forecasting personnel
Organizing How You Recruit requirements, discusses the
Internal Sources of Candidates pros and cons of methods used
Using Internal Sources: Pros and Cons for recruiting job candidates,
Finding Internal Candidates describes how to develop an
Rehiring
application form, and explains
Succession Planning
Improving Productivity through HRIS
how to use application forms
Outside Sources of Candidates to predict job performance.
Recruiting via the Internet
Advertising Interesting Issues: The
Employment Agencies Internet has changed the face
Temp Agencies and Alternative Staffing of recruiting, particularly in
Offshoring and Outsourcing Jobs
advertising for applicants.
Executive Recruiters
On-Demand Recruiting Services
Employers can now reach
College Recruiting more potential applicants in
Referrals and Walk-Ins less time and at less expense.
Telecommuters However, this tool has
Military Personnel generated some challenges.
Recruiting Source Use and Effectiveness Employers may get too many
Improving Productivity through HRIS
applicants, or fail to reach
Recruiting a More Diverse Workforce
Single Parents
certain segments of the
Older Workers population.
Recruiting Minorities
Welfare-to-Work
The Disabled
Developing and Using Application Forms
Purpose of Application Forms
Application Guidelines
Application Forms and EEO Law
Using Application Forms to Predict Performance
Mandatory Arbitration

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LEARNING OUTCOMES

1. List the steps in the recruitment and selection process.

2. Explain the main techniques used in employment planning and forecasting.
3. Explain and give examples for the need for effective recruiting.
4. Name and describe the main internal sources of candidates.
5. List and discuss the main outside sources of candidates.
6. Develop a help wanted ad.
7. Explain how to recruit a more diverse workforce.

ANNOTATED OUTLINE

I. Workforce Planning and Forecasting

A. Strategy and Workforce Planning – Planning should be directly related to

the company’s strategic goals.

B. Forecasting Personnel Needs (Labor Demand) – Forecast revenues, and

then estimate the size of the staff required to achieve this sales volume.

1. Trend analysis requires studying a firm’s employment levels over a

period of years to predict future needs.

2. Ratio analysis involves making forecasts based on the ratio between

(1) some causal factor, such as sales volume, and (2) the number of
employees required, like the number of salespeople.

3. The scatter plot shows graphically how two variables (such as a

measure of business activity and a firm’s staffing levels) are related.

4. Markov analysis involves creating a matrix that shows probabilities

that employees in the chain of feeder positions for a key job. Using

C. Improving Productivity through HRIS: Computers to Forecast Personnel

Requirements – Software programs enable employers to translate
projected productivity and sales levels into forecasts of personnel needs
and estimate how personnel requirements will be affected by various
productivity and sales levels.

D. Forecasting the Supply of Inside Candidates

1. Manual Systems and Replacement Charts – Simple manual devices

can be used to keep inventories and development records to compile
qualifications information on each employee. Personnel replacement
charts show the present performance and promotability for each
position’s potential replacement. Position replacement cards can
also be created for each position to show possible replacements as
well as their present performance, promotion potential, and training.

2. Computerized skills inventories are used to track the qualifications of

hundreds or thousands of employees. The system can provide
managers who scan the database with a listing of candidates who
have specified qualifications.

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 3. Keeping the Information Private – Employers must balance an
individual’s right to privacy while making HR information available to
those in the firm who need it.

E. Forecasting the Supply of Outside Candidates – This may involve

considering general economic conditions and the expected rate of
unemployment. Helpful sources include: Business Week, Fortune, the
Economist, the Wall Street Journal, and prepared reports from the U.S.
Council of Economic Advisors, the regional Federal Reserve banks, the
Bureau of Labor Statistics of the U.S. Department of Labor, the National
Science Foundation, the U.S. Public Health Service, the U.S.
Employment Service, and the U.S. Office of Education.

F. Talent Management and Predictive Workforce Monitoring – Having a

talent management philosophy for workforce planning requires
organizations to pay continuous attention to workforce planning, known
as predictive workforce monitoring.

G. Developing an Action Plan to Match Projected Labor Supply and

Demand – Organizations must create a workforce action plan which lays
out the projected workforce demand-supply gaps. Resources required
will include information such as advertising costs and recruiter fees.

H. The Recruiting Yield Pyramid is used by some employers to calculate

the number of applicants they must generate to hire the required number
of new employees. Figure 5-6 illustrates the pyramid.

II. The Need for Effective Recruiting

A. Why Recruiting is Important? Finding the best employees takes time, and
being effective is crucial to organizational success. The better the
employees, the better the company. Even with high unemployment rates,
finding qualified employees can be difficult.

B. What Makes Recruiting a Challenge? Recruiting is a more complex

activity than most managers think it is. Recruitment efforts should make
sense in terms of the company’s strategic plans. Some recruiting
methods are superior to others, depending on who you are recruiting for
and what your resources are. Recruiting success actually depends on
non-recruitment HR issues and policies, including pay levels. Also,
employment law plays a big part in what an organization can/cannot do
when recruiting.

C. Organizing How You Recruit – Companies make a choice to centralize

their recruiting efforts or to decentralize to various locations. Advantages
of centralizing are that it is easier to apply the company’s strategy
priorities company-wide. In addition, centralization reduces duplication,
makes it easier to spread the cost of new technologies over more
departments, builds a team of recruitment experts, and makes it easier to
assess the effectiveness of the function. However, if divisions are
autonomous or needs are varied, decentralization is a more sensible
choice.

1. The Supervisor’s Role – Since the recruiting HR manager is seldom

responsible for supervising the performance for the vacant position,

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 he/she must communicate with the supervisor to find out exactly
what the job entails.

 NOTES Educational Materials to Use

III. Internal Sources of Candidates

A. Using Internal Sources: Pros and Cons – Some advantages of internal

recruiting include the following: current employees may be more
committed to the company; morale may go up if employees see
promotions as rewards; and current employees may require less
orientation and training than new hires. Disadvantages, however, include:
employees may become discontented if they apply for jobs and do not
get them, in some cases internal recruiting is a waste of time if the right
candidate for the job is not already an employee, and there is potential
for inbreeding to occur (when all managers come through the ranks they
may have a tendency to maintain the status quo).

B. Finding Internal Candidates – To be effective, promotion from within

requires using job posting, personnel records, and skill banks.

B. Rehiring – Rehiring former employees has its pros and cons. On the
positive side, they are known quantities and are already familiar with the
organization. But former employees may return with negative
attitudes. Current employees may perceive that the way to get
ahead is to leave and come back.

C. Succession Planning – Succession planning ensures a suitable supply of

successors for senior or key jobs. It can include the following activities:
determining the projected need for managers and professionals by
company level, function, and skill; auditing current executive talent to
project the likely future supply for internal sources; planning individual
career paths based on objective estimates of future needs and
assessments of potential; offering career counseling based on the needs
of the individual and the firm; accelerated promotions, with development
targets against the future needs of the business; providing performance-
related training and development; planning strategic recruitment to fill
short-term needs and meet future needs; and actually filling the
positions.

D. Improving Productivity through HRIS: Succession and Talent Planning

Systems - More large employers use software to facilitate succession
planning and talent management. Web technology helped Dole do this. It
contracted with application system providers (ASPs) to handle things like
payroll management. For succession management, Dole chose software
from Pilat NAI, which keeps all the data on its own servers for a monthly
fee. Dole’s managers access the program via the Web using a password.
They fill out online résumés for themselves, including career interests,
and note special considerations such as geographic restrictions.

IV. Outside Sources of Candidates

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 A. Recruiting via the Internet – Most employers find that the Internet is their
best choice for recruitment efforts. Social networking also provides
recruiting assistance. Figure 5-7 lists top online recruiting job sites.
Advantages – The Web is cost efficient, generating more responses
more quickly and providing exposure for a longer time at less cost.
Disadvantages – Gathering applications online may exclude higher
numbers of older applicants and certain minorities. An employer may
also get too many applications because of the Web’s broad reach and
speed. There are also other web recruiting practices that include
networking sites, texting, an organization’s personal recruiting website,
and virtual job fairs. These can generate more responses quicker and for
less cost than other forms of recruiting but they also have their
disadvantages, such as less diversity of applicants.

 NOTES Educational Materials to Use

B. Advertising

1. The Media – The best medium should be selected based on the

positions for which you are recruiting.

2. Constructing (Writing) the Ad – Many experienced advertisers use a

four-point guide called AIDA (attention, interest, desire, action) to
construct their ads.

C. Employment Agencies

1. Public and Nonprofit Agencies – Every state has a public, state-run

employment service agency supported by the Department of Labor,
in part through grants and other assistance, such as a nationwide
computerized job bank. Many professional and technical societies
and public welfare agencies have units that try to help their members
or people in special categories find jobs.

2. Private agencies charge fees for each applicant they place.

Typically, market conditions determine whether the candidate or
employer pays the fee.

D. Temp Agencies and Alternative Staffing

1. Pros and Cons – The benefits of contingency staffing include

increases in overall productivity, and time and expenses saved by
not having to recruit, train, and document new employees. The costs
include agency fees and individuals’ psychological reference to their
place of employment. Many employers use temporary agencies as a
way to “test drive” prospective employees before hiring them.

2. What Supervisors Should Know about Temporary Employees’

Concerns – Some of the major concerns of temporary employees
include being treated in a dehumanizing and discouraging way and
worrying about the lack of insurance and pension benefits.

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 3. Legal Guidelines – Understanding the difference between contract
workers and employees is very important. Let the temp agency
assume as much responsibility for the temporary employee as
possible. This helps to create a clear line between temps and
employees.

4. Alternative staffing refers to the use of nontraditional recruitment

sources.

E. Offshoring/Outsourcing Jobs – Hiring workers abroad is becoming more

and more common. There are several specific issues that the HR
manager should keep in mind when considering this option.

F. Executive recruiters, also called headhunters, are special employment

agencies retained by employers to seek out top-management talent for
their clients.

1. Pros and Cons – Recruiters can be useful and save a manager’s

time, but they may be more interested in persuading managers to
hire a candidate than in finding one who will really do the job.

2. Guidelines – Make sure the recruiting firm is capable, meet the

individual who will handle the assignment, and ask how much the
firm charges. Never rely on the recruiter to do all the reference
checking.

G. On-Demand Recruiting Services (ODRS) – This service provides short-

term specialized recruiting to support specific projects without the
expense of retaining traditional search firms. Basically, recruiters get
paid by the hour or project, instead of a percentage fee. Two trends –
technology and specialization – are changing the executive search
business. Executive recruiters are becoming more specialized, and large
ones are creating new businesses aimed specifically at specialized
functions or industries.

H. College Recruiting involves sending employers’ representatives to

college campuses to prescreen applicants and create an applicant pool
of management trainees, promotable candidates, and professional and
technical employees.

1. On-Campus recruiting goals involve attracting good candidates and

determining whether a candidate is worthy of further consideration.
The school’s reputation and the performance of previous hires from
that source affect school selection.

2. On-site visits are usually extended to good candidates.

3. Internships are a recruiting approach that can be a win-win situation

for the employer and the student. For employers, interns can make
useful contributions while being evaluated for possible full-time
employment. Students are able to hone business skills, check out
potential employers, and learn more about their likes and dislikes.

I. Referrals and Walk-Ins are alternatives for identifying potential

candidates. Referrals tend to generate high-quality candidates. Walk-in
candidates may be attracted by posting a “Help Wanted” sign.
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 J. Telecommuters – These individuals work from home.

K. Military Personnel – Returning and discharged military personnel can

provide a great soure of trained recruits.

L. Recruiting Source Use and Effectiveness – Table 5-1 gives guidelines to

improve a firm’s recruiting efforts.

M. Evidence-Based HR: Measuring the Recruiting Effectiveness – Several

examples of how organizations can measure recruiting effectiveness are
discussed.

N. Improving Productivity Through HRIS: An Integrated Approach to

Recruiting – an integrated technology approach to recruiting. Elements
should include a requisition management system, a recruiting solution,
screening services, and hiring management software.

 NOTES Educational Materials to Use

V. Recruiting a More Diverse Workforce

A. Single Parents – Formulating an intelligent program for attracting single

parents should begin with understanding the considerable problems they
often encounter in balancing work and family life.

B. Older Workers – With the entire population aging, many employers are
encouraging retirement-age employees not to leave, or are actively
recruiting employees who are at or beyond retirement age by making
their companies an attractive place in which older workers can work. An
image of older worker-friendliness and flexibility in scheduling are vital.

C. Recruiting minorities requires employers to tailor their way of thinking

and to design HR practices that make their firms attractive to minority
workers. .

D. Welfare-to-Work – The Federal Personal Responsibility and Welfare

Reconciliation Act of 1996 prompted many employers to implement
programs to attract and assimilate former welfare recipients.

E. The Disabled – Employers can do several things to tap into this huge
potential workforce. The Department of Labor’s Office of Disability
Employment Policy offers several programs, and all states have local
agencies that provide placement services and other recruitment and
training tools.

 NOTES Educational Materials to Use

VI. Developing and Using Application Forms

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 A. Purpose of Applications Forms – Application forms are a good way to
quickly collect verifiable and fairly accurate historical data from the
candidate.

B. Application Guidelines – Organizations should request detailed

information on each prior employer, including the name of the supervisor
and his or her email address and telephone number; this is essential for
reference checking. Also, in signing the application, the applicant should
certify his or her understanding that falsified statements may be cause
for dismissal, that investigation of credit, employment, and driving
records is authorized, that a medical examination may be required, that
drug screening tests may be required, and that employment is for no
definite period.

C. Application Forms and EEO Law – Employers should carefully review

their application forms to ensure they comply with equal employment
laws. Questions to review include those asking about dates of
graduation, arrest records, emergency contacts, physical disabilities,
marital status, and housing arrangements.

D. Using Application Forms to Predict Job Performance – Some firms use

application forms to predict which candidates will be successful and
which will not by conducting statistical studies to find the relationship
between (1) responses on the application form and (2) measures of
success on the job.

E. Mandatory Arbitration – Many employers, in order to avoid the high cost

of lawsuits, require applicants to agree to binding arbitration to settle
disputes.

 NOTES Educational Materials to Use

DISCUSSION QUESTIONS

1. What are the pros and con of five sources of job candidates? The text lists several
sources of job candidates, both internal and external. The student should clearly identify the
differences, as well as comparative strengths and weaknesses of each. There are at least
the following sources to choose from: advertisements, employment agencies, executive
recruiters, state job services, college recruiting efforts, referrals, employee databases,
internal, and talent searches. (LO 5.4-5; AACSB: Reflective Thinking Skills; Learning
Outcome: Explain the process of personnel planning and forecasting)

2. What are the four main types of information that application forms provide? The
application form is a good means of quickly collecting verifiable, and therefore potentially
accurate, historical data from the candidate. It usually includes information on education,
prior work history, and other experience related to the job The application form can provide
four types of information: 1. substantive matters (such as education and experience); 2.
previous progress and growth; 3. stability based on previous work history; and 4. prediction of
job success. (AACSB: Reflective Thinking Skills; Learning Outcome: Compare and contrast
different recruitment methods)

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3. How, specifically, do equal employment laws apply to personnel recruiting activities?
The student should be able to discuss the areas in which the laws and regulations covered in
Chapter 2 apply to the issues of planning and recruiting. This would include constraints on
sources used for candidates (i.e. not excessive reliance on referrals), the wording of
questions asked on application forms or in interviews, and planning decisions that must not
be overly detrimental to a protected group. (LO 5.3; AACSB: Reflective Thinking Skills;
Learning Outcome: Explain the process of personnel planning and forecasting)

4. What should employers keep in mind when using Internet sites to find job candidates?
Use keyword searches, don’t recycle your newspaper ads, give quick feedback, ensure
privacy, use applicant tracking. (LO 5.5; AACSB: Use of Information Technology; Learning
Outcome: Compare and contrast different recruitment methods)

5. What are the five main things you would do to recruit and retain a more diverse
workforce? The student should first be able to identify groups that would create a diverse
workforce. Examples found in the text are: single parents, older workers, minorities and
women, welfare recipients, and global candidates. In order to retain these employees,
students would first need to understand the needs of each group, and then create plans and
programs that accommodate these specific needs. For example, to attract and keep single
mothers, employers could give employees schedule flexibility, and train the supervisors to
have an increased awareness of and sensitivity to the challenges single parents face. (LO
5.7; AACSB: Multicultural and diversity understanding; Learning Outcome: Compare and
contrast different recruitment methods)

INDIVIDUAL AND GROUP ACTIVITIES

1. Bring to class several classified and display ads from the Sunday help wanted ads.
Analyze the effectiveness of these ads using the guidelines discussed in the chapter.
The effectiveness should be analyzed using the following list: attracts attention, develops
interest, creates desire, and prompts action. (LO 5.6; AACSB: Analytic Skills; Learning
Outcome: Compare and contrast different recruitment methods)

2. Working individually or in groups, develop a forecast for the next five years of
occupational market conditions for various occupations such as accountant, nurse,
and engineer. Be sure that the forecasts that the students develop are grounded in
information gleaned from these sources. They should do an adequate analysis of the
statistics. (LO 5.2; AACSB: Analytic Skills & Use of Information Technology; Learning
Outcome: Explain the process of personnel planning and forecasting)

3. Working individually or in groups, visit the local office of your state employment
agency (or check out their website). Come back to class prepared to discuss the
following questions: What types of jobs seem to be available through this agency,
predominantly? To what extent do you think this particular agency would be a good
source of professional, technical, and/or managerial applicants? What sorts of
paperwork are applicants to the state agency required to complete before their
applications are processed by the agency? What other services does the office
provide? What other opinions did you form about the state agency? The answers to
this will vary greatly by state and local offices. Generally, these agencies may be more
oriented to unskilled than skilled positions; rarely do they handle professional and managerial
positions...although some do quite a bit. Although students may come back with a negative
view of these offices, help them to understand the valuable role that they do play. A special
note of courtesy: make sure that you have discussed this assignment with the local agency
office. Surprise visits by several groups during busy periods can create some especially
negative relations between the office and your school. Make sure the students are welcome

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 and expected. (LO 5.5; AACSB: Analytic Skills; Learning Outcome: Compare and contrast
different recruitment methods)

4. Working individually or in groups, find at least 5 employment ads either on the Internet
or in a local newspaper that suggest that the company is family friendly and should
appeal to women, minorities, older workers, and single parents. Discuss what they’re
doing to be family friendly. Students should identify statements in the ad that would
suggest that an employer is aiming to be family friendly. (LO 5.6-7; AACSB: Multicultural and
Diversity Awareness; Learning Outcome: Compare and contrast different recruitment
methods)

5. Working individually or in groups, interview a manager between the ages of 25 and 35

at a local business who manages employees 40 or older. Ask the manager to describe
three or four of his or her most challenging experiences managing older employees.
Students should probe the manager to see if he/she mentions that the older employee found
the experience challenging as well. (LO 5.7; AACSB: Multicultural and Diversity Awareness;
Learning Outcome: Compare and contrast different recruitment methods)

6. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge
someone studying for the HRCI certification exam needs to know in each area of
human resource management (such as in Strategic Management, Workforce Planning,
and Human Resource Development). In groups of 4-5 students, do four things: (1)
review that appendix now; (2) identify the material in this chapter that relates to the
required knowledge the appendix lists; (3) write four multiple-choice exam questions
on this material that you believe would be suitable for inclusion in the HRCI exam; and
(4) if time permits, have someone from your team post your team’s questions in front
of the class, so the students on other teams can take each other’s exam questions.
(LO 5.1-7; AACSB: Analytic Skills; Learning Outcome: Explain the process of personnel
planning and forecasting and Compare and contrast different recruitment methods)

EXPERIENTIAL EXERCISES & CASES

Experiential Exercise: The Nursing Shortage

This is a good exercise for students to create a recruiting approach for nursing jobs and use their
creativity and what they have learned in the chapter. (LO 5.2 & 5.5; AACSB: Analytic Skills;
Learning Outcome: Compare and contrast different recruitment methods)

Application Case: Ya Kun Kaya Toast

1. How would you forecast the manpower needs of Ya Kun?

As stated in the case, each outlet requires 10 Full-Time Equivalent (FTE). To provide for
employees going on leave and absenteeism, we add a 10% allowance, making it 11 FTE.

Let n be the number of outlets in a given year.

Let e be the projected number of outlets Ya Kun plans to open in the next year.
Let t be the estimated number of resignations over the next year.
Let p be the estimated number of personnel who are promoted to store manager or
transferred to the headquarters in the next year.

Total number of new outlet staff required in the next year =

Total number of manpower required in one year’s time –
Total number of manpower required now +
Estimated number of resignations over the next year +
Estimated number of promotions over the next year.

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 Total number of manpower required in one year’s time = 11 (n + e)

Total number of manpower required now = 11n

Total number of new outlet staff required in the next year

= 11 (n + e) - 11n + p + t
= 11 e + p + t

2. What are the advantages and disadvantages of Ya Kun’s hiring part-time workers?

Advantages of part-time workers include:

a) Flexibility in scheduling as they help to fill in the gaps when the full-time workers go on
leave or are taken ill.
b) Complement the full-time workers.
c) Allows Ya Kun to tap into a larger available pool of job applicants as many more people
may be willing and able to work part-time as opposed to full-time.
d) They may be deployed strategically during peak hours.

Disadvantages include:

a) They may be less committed to the company.

b) It may be more difficult to integrate them as they only work occasionally.
c) Having too many part-time workers may affect teamwork.

3. A good attitude and commitment are two important attributes that Ya Kun looks for in
its job applicants. Is a job interview an effective method to assess these two
attributes? What else can Ya Kun do to get reliable information on these two
attributes?

A job interview may not be the most effective method to assess these two attributes as they
are not directly observable during the interview process.

In order to obtain reliable information on these two attributes, managers of Ya Kun may:

a) Ask the job applicants for referrals in the application pack, and contact the referrals to
obtain information regarding these two attributes.
b) Use critical incidence interviews to test if the job applicants have past examples of these
attributes.
c) Provide job applicants with a realistic job preview by telling them about all the challenges
and worst case scenarios that their staff face. This allows the applicants to have a better
idea of the job and make a better-informed choice of whether to take up the job or not.
d) Use role-playing exercises where the applicants play the role of the staff, and the
managers the customers, so that the managers may observe how the applicants may
potentially react when they are actually working for Ya Kun.

4. What suggestions would you make to Ya Kun to improve its recruiting processes?

Ya Kun’s low turnover rate and large pool of hardworking committed workers indicates that its
recruitment processes are working well. However, to improve their recruiting process, Ya
Kun’s managers may choose to:

a) Use more internal referrals as employees know what kinds of applicants will fit well with
the prevalent company culture.
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 b) Hire a larger ratio of part-timers to full-timers as this allows them greater flexibility in
scheduling.
c) Convert part-timers to full-timers if they perform well and if they are open to the switch.
d) Maintain contact with the staff who have left the company so that they can be informed of
any new positions in the company.

Continuing Case: Carter Cleaning Company – Getting Better Applicants (LO 5.3-5; AACSB:
Analytic Skills; Learning Outcome: Compare and contrast different recruitment methods)

1. First, how would you recommend we go about reducing the turnover in our stores? The
students should base their responses on the information presented in the advertising section
of the chapter, and their response should include placing and constructing ads that will attract
candidates who will find the job attractive.

2. Provide a detailed list of recommendations concerning how we should go about

increasing our pool of acceptable job applicants, so we no longer have to hire almost
anyone who walks in the door. (Your recommendations regarding the latter should
include completely worded online and hard-copy advertisements and
recommendations regarding any other recruiting strategies you would suggest we
use.) The students should review the section on outside sources of candidates, and their
responses should include advertising and the possible use of employment and/or temp
agencies.

Translating Strategy into HR Policies and Practice Case: The Hotel Paris

The New Recruitment Process – The continuing case study of Hotel Paris is discussed here. In
this example, HR manager Lisa Cruz must formulate functional policies and activities that support
the hotel’s competitive strategy by eliciting the required employee behaviors and competencies.

Questions
1. Given the hotel’s stated employee preferences, what recruiting sources would you
suggest they use, and why? (LO 5.4-5; AACSB: Analytic Skills; Learning Outcome:
Compare and contrast different recruitment methods)

Though the local paper may bring in applicants, the development of a succession plan
will ensure that lower-level employees are ready to move into higher levels when an
opening occurs. College recruitment and employee referral may also be a good
resource. The company should begin using selection testing, particularly in the areas of
integrity and conscientiousness.

2. What would a Hotel Paris help wanted ad look like? (LO 5.6; AACSB: Analytic Skills;
Learning Outcome: Compare and contrast different recruitment methods)

Figure 5-9 displays an example of an ad. Elements from the text should be incorporated
into student responses, which will vary. The hotel should consider developing a
recognizable logo and color scheme, along with a standard format for ads, which should
be used by the various hotels.

3. How would you suggest they measure the effectiveness of their recruiting efforts?
(LO 5.3; AACSB: Analytic Skills; Learning Outcome: Comp.are and contrast different
recruitment methods)

The number of qualified applicants per position, percentage of jobs filled from within, the
offer-to-acceptance ratio, acceptance by recruiting source, turnover by recruiting source,
and selection test results by recruiting source are used by other hotels, and should be
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 considered for use by Hotel Paris.

KEY TERMS
workforce (or employment The process of deciding what positions the firm will have to fill,
or personnel) planning and how to fill them.

trend analysis Study of a firm's past employment needs over a period of years
to predict future needs.

ratio analysis A forecasting technique for determining future staff needs by

using ratios between sales volume and number of employees
needed.

scatter plot A graphical method used to help identify the relationship

between two variables.

qualifications inventories Manual or computerized systematic records that list employees'

education, career and development interests, languages, special
skills, and so on, to be used in forecasting inside candidates for
promotion.

personnel replacement Company records showing present performance and

charts promotability of inside candidates for the most important
positions.

position replacement A card prepared for each position in a company to show possible
cards replacement candidates and their qualifications.

recruiting yield pyramid Calculating and using the historical arithmetic relationships
between recruitment leads and invitees, invitees and interviews,
interviews and offers made, and offers made and offers
accepted.

employee recruiting Finding and/or attracting applicants for the employer’s open
positions.

job posting Posting notices of job openings on company bulletin boards is an

effective recruiting method.

succession planning The process of ensuring a suitable supply of successors for

current and future senior or key jobs.

applicant tracking systems Online systems that help employers attract, gather, screen,
compile, and manage applicants.

alternative staffing The use of nontraditional recruitment sources.

on-demand recruiting These services provide short-term, specialized recruiting

services (ODRS) services usually paid for by the hour or project, rather than on a
percentage fee.

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college recruiting sending an employer’s representatives to college campuses to
prescreen applicants and create an applicant pool from the
graduating class

application form The form that provides information on education, prior work
record, and skills.

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