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Happy New Year!

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Recruitment & Selection

Do you agree?

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Great companies first got the right people on the bus, the wrong people off the bus, and the right people in the right seats and then they figured out where to drive it.
Good to Great: Why Some Companies Make the Leap and Others Dont Jim Collins

Manpower Planning
Manpower Planning is a Process by which an organization ensures that
Right number of people Right kind of people At the Right time At the Right place Doing the Right things for which they are suited for achieving the goals of the organization.

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Factors affecting Manpower Planning

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Sales and production forecasts The effects of technological change on task needs Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc. Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.)

Factors affecting Manpower Planning

Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements Changes in Government policies (investment incentives, regional or trade grants, etc.)

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Manpower Planning
Two Steps
Demand Forecasting Supply Forecasting

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Demand Forecasting
Bottom Up Technique Delphi Technique Nominal Group Technique Ratio Analysis Regression Analysis

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Supply Forecasting
Internal Supply External Supply

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Recruitment is not about filling jobs that are currently vacant it is about making a continuous, long-term investment to build a high quality workforce capable of accomplishing the organizations mission now and in the future

Any example you know of?

www.ipma-hr.org

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Recruitment is a critical management function that all levels of the organization need to be involved in planning and implementation

www.ipma-hr.org

Global Sourcing is changing the shape of the business world!!!

Features of the New World
global sourcing barriers fading away Disappearance of the Time Zones Transformation of the work processes into pieces that can be constructed and deconstructed

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Changing Role of HR: Modified Recruitment Structure

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Currently organisations use one or more of the following staffing structures: Decentralized Staffing Model Allows individual business units to
develop and fill their own staffing plans.

Hybrid Staffing Model Combines decentralized approach with certain

centralized (or shared services) components.

Outsourced Staffing Model Promotes efficiency, consistency and

potential cost saving

HR Business Partner Structure HR business partners work with

designated business units.

How do organizations structure their recruiting departments?

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Corporate Leadership Council

Pros and Cons of Recruiting Department Structures

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Centralized
Pros
Facilitates practice and lead sharing Enhances Consistency Enables Standardization

Hybrid
Pros
Enables a mix of process efficiencies and connection with the line Creates staffing resource flexibilities

Decentralized
Cons Pros Cons
Creates resource inefficiencies Discourages candidate and practice sharing across the department Lacks process efficiencies of centralized structures Reduces consistency and standardization

Cons
Creates a disconnection between recruiters and business units

Creates Improves resource and communication process with the line inefficiencies Enables Distance recruiters to function from learn business the support of corporate headquarters

Corporate Leadership Council

Group HR

Three Main Functions of Recruitment Process are:

Attract a pool of suitable candidates Deter unsuitable candidates from applying Create a positive image of the organization

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Internal Recruitment
Vs.

External Recruitment

Recruitment from Inside

Advantages
Career plan for existing workers & morale Motivator for good performance Relatively easier assessment of applicants as information is available Reduced recruitment costs (travel expenses) Causes succession of promotions Have to hire only at entry level.

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Disadvantages
Existing employees may not bring-in new ideas to their new job (inbreeding). Lower level employees may not have capacities required at higher jobs.

High-powered employees might not be able to wait long enough for their turn (political infighting for promotions).
Internal strife for the post might impact negatively on possibilities for team work among existing employees. Need for management development program

Recruitment from Outside

Advantages
Larger pool of talent. Objectivity and extensive effort put into the process likely to lead to a better candidate selection.

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Disadvantages
Relatively higher costs.
Risky of getting the wrong person. May cause morale problems for internal candidates not selected.

New industry insights, ideas, way of thinking & approaches might challenge existing norms and act as catalyst in continuous improvement/ innovation. Cheaper and faster than training professionals.
No group of political supporters in organization already.

Sourcing Channels
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Internal
Job Posting Skills Data Base Employee Referrals by Other Departments

External
Advertisement Placement Agencies Internships Job Sites E-Recruiting Campus Data Base Alumni Associations/Interest Groups/ Networks Temporary Leasing Employee Referrals Passive Recruiting (Unsolicited application) Career Fairs

Recruitment methods

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Despite the importance of strategic workforce planning, most HR departments have not yet developed a formal plan to participate in their companies business cycles. Ninety percent of HR departments have no independent planning and forecasting function, and many HR departments have no formal staffing strategy of any kind. Rather, they tend to operate independently of the business cycle, developing reactive staffing solutions instead of proactive strategies that anticipate movements in the business cycle.
Corporate Leadership Council

Recruitment Strategy: A Six Step Approach

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Recruitment strategy should answer the following

questions related to their target populations:

1. 2. Who is being targeted through the recruitment? Where is the appropriate place to recruit clients?

3.
4. 5. 6.

When should recruitment be done?

What messages should be delivered during recruitment? How should the messages be delivered? Who is the most appropriate person to do recruitment?

Talent Forecasting
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1. Business strategy Integrates projected company growth in terms of activity, output and revenue. 2. Human capital need Translates business strategy into staffing requirements. 3. Projection of future vacancies Based on difference between staffing requirements and current capacity.

Strategic Recruiting Stages

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Human Resource Planning How many employees are needed? When employees will be needed? What specific KSAs are needed?

Organizational Responsibilities
HR staff & operating managers Recruiting presence and image

Training of recruiters
Wendell French, Chapter 9, Recruitment & Selection

Group HR

Strategic Recruiting Decisions

Organizational-based Vs. outsourcing

Regular Vs. flexible staffing Recruiting source choices Recruiting Methods Internal methods

Internet/ web-based
External methods
Wendell French, Chapter 9, Recruitment & Selection

Selection

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The process of assessing candidates and appointing a post holder Applicants short listed most suitable candidates selected Selection process varies according to organisation.

Selection Tools
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Interview most common method Psychometric testing assessing the personality of the applicants
Measures of personality Honesty test (substitute to polygraph)

Aptitude testing assessing the skills of applicants

Measures of proficiency, achievement, or knowledge Measures of mental ability or intelligence

In-tray exercise activity based around what the applicant will be

doing

Presentation looking for different skills as well as the ideas of the

candidate

Assessment Centres battery of tests

Choice of Selection Methods

Number of applicants

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Criticality of position
Cost/effort involved

Predictive validity
Extent of preparation required

When using psychological tests..

Clearly identify the objectives

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Uses a battery of test that can give range of information

Have trained psychologists conduct and interpret tests Use personality testing as an adjunct to the recruitment or

career planning process and exploit its developmental

power Adapt tests to Indian situations

Determining Selection Standards

Sources of Information about Applicants Application Forms Reference Checks Physical Examination

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Selection Tests (Reliability & Validity)

The Selection Interview

Recruitment: Return on Investment (ROI)

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Recruitment return on investment (ROI)

understands and compares the elements, costs and risks of a recruitment related project to the

expected benefits

What to Measure: Hiring

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Recruiter Effectiveness
RE = RT+TF+HR+C/H +QH N

RE = RT = TF = HR = C/H = QH= N=

Overall Recruiter effectiveness Response Time Time to Fill Hire Rate Cost Per Hire Quality of Hire Number of Indices Used.
HR Accounting

Cost Per Hire

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CPH = SC+ST+MC+PC+TR=RL+MS H SC =
ST = MT = PC = TR = RL = Sourcing costs (Advertising + Agency Fees + Employee Referrals) Staff Time [Travel + Interview ] x [Recruiter Pay and Benefits] or External Agency Fee Management Time x Managements Pay and Benefits Processing Costs/ Operating Expenses Travel Cost of Applicants Relocations Costs

MS =
H=

Miscellaneous
Full Time or Part Time Employees Hired
HR Accounting

Quality of Hire (QH)

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QH = PR + HP + HS N PR= HP= HS = N= Average job performance ratings of new hires Percent of new hires promoted within one year Percent of new hires retained after one year Number of indicators used

Satisfaction of new employees with hiring. Satisfaction of managers with new employees.
HR Accounting

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Time to Fill
TF =RR OD

RR =
OD =

Date requisition is received

Date offer is accepted

Number Hired (Hit Rate)

HO = OA/OE OA = OE = HO = Offer accepted Offers extended Percentage of offers that result in hire
HR Accounting

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The Employment Value Proposition The set of attributes that the labor market and employee perceive as the value they gain through employment in the organization.
Rewards Compensati on Health Benefits Retirement Benefits Vacation Opportunity Development Opportunities Future Career Opportunities Organization Growth Rate Meritocracy Organizational Stability Organization Customer Prestige Diversity Empowerment Environmental Responsibility Ethics Great Employer Recognition Well know Brand Market Position Product/ Service Quality Organization Size Social Responsibility Technology Level Work Business Travel Innovation Job Impact Job-Interests Alignment Location Recognition Work Life Balance People Camaraderie Collegial Work Environment Coworker Quality Manager Quality People Management Senior Leadership Reputation

Corporate Leadership Council