Human Resources Planning and Recruitment

Human Resource
Management
TWELFTH EDITION
GARY DESSLER
BIJU VARKKEY
Part 2 | Recruitment and Placement
Chapter 5
Human Resources Planning and Recruiting
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
After studying this chapter, you should be able to:
1. List the steps in the recruitment and selection process.

2. List and discuss the main outside sources of
candidates.
3. Effectively recruit job candidates.
4. Name and describe the main internal sources of
candidates.
5. Develop a help wanted ad.
6. Explain how to recruit a more diverse workforce.

5–2
The Recruitment and Selection Process
1. Decide what positions to fill through personnel
planning and forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and
undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the
supervisor and others interview the candidates.

5–3
FIGURE 5–1 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

5–4
FIGURE 5–2 Linking Employer’s Strategy to Plans

5–5
Planning and Forecasting
• Employment or Personnel Planning
 The process of deciding what positions the firm
will have to fill, and how to fill them.
• Succession Planning
 The process of deciding how to fill the company’s
most important executive jobs.
• What to Forecast?
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates
5–6
Forecasting Personnel Needs
Forecasting
Tools
Trend Analysis Ratio Analysis Scatter Plotting

5–7
FIGURE 5–3
Determining the
Relationship
Between Hospital
Size and Number
of Nurses
Note: After fitting the

line, you can project
how many employees
you’ll need, given your
projected volume.
Size of Hospital Number of

(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
5–8
Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives
on future staffing levels.
• They support compensation plans that reward
managers for managing ever-larger staffs.
• They “bake in” the idea that staff increases are
inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.

5–9
Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
 Software that estimates future staffing needs by:
 Projecting sales, volume of production, and
personnel required to maintain different volumes
of output.
 Forecasting staffing levels for direct labor, indirect
staff, and exempt staff.
 Creating metrics for direct labor hours and three
sales projection scenarios—minimum, maximum,
and probable.
5–10
FIGURE 5–4
Management
Replacement
Chart Showing
Development
Needs of
Potential Future
Divisional Vice
Presidents

5–11
Forecasting the Supply of
Inside Candidates
Qualification
Inventories
Manual
Computerized
Systems and
Information
Replacement
Systems
Charts

5–12
The Matter of Privacy
• Ensuring the Security of HR Information
 Control of HR information through access matrices
 Access to records and employee privacy

5–13
Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate
• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
 U.S. Congressional Budget Office (CBO)
 U.S. Department of Labor’s O*NET™
 Bureau of Labor Statistics (BLS)
 Other federal agencies and private sources
5–14
Effective Recruiting
• External Factors Affecting Recruiting
 Supply of workers
 Outsourcing of white-collar jobs
 Fewer “qualified” candidates
• Other Factors Affecting Recruiting
 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm

5–15
Effective Recruiting (continued)
• Advantages of Centralizing Recruitment
 Strengthens employment brand
 Facilitates applying strategic priorities
 Reduces duplication of HR activities
 Reduces cost of new HR technologies
 Builds teams of HR experts

 Provides better measurement of HR performance
 Allows for sharing of applicant pools

5–16
Measuring Recruiting Effectiveness
Evaluating
Recruiting
Effectiveness
What to How to
Measure Measure

5–17
FIGURE 5–5 Recruiting Yield Pyramid

5–18
Internal Candidates: Hiring from Within
Advantages Disadvantages
• Foreknowledge of • Failed applicants become
candidates’ strengths and discontented
weaknesses • Time wasted interviewing
• More accurate view of inside candidates who will
candidate’s skills not be considered
• Candidates have a • Inbreeding strengthens
stronger commitment to the tendency to maintain the
company status quo.
• Increases employee
morale
• Less training and
orientation required

5–19
Finding Internal Candidates
Rehiring Former
Job Posting
Employees
Hiring from
Within
Succession
Planning (HRIS)
5–20
Outside Sources of Candidates
Locating Outside Candidates
1 Recruiting via the Internet 6 Executive Recruiters
On Demand Recruiting
2 Advertising 7
Services (ODRS)
3 Employment Agencies 8 College Recruiting
Temp Agencies and Alternative

4 9 Referrals and Walk-ins
Staffing
5 Offshoring/Outsourcing

5–21
Outside Sources of Candidates (continued)
• Recruiting via the Internet
 Advantages
 Cost-effective way to publicize job openings
 More applicants attracted over a longer period
 Immediate applicant responses
 Online prescreening of applicants
 Links to other job search sites
 Automation of applicant tracking and evaluation
 Disadvantages
 Exclusion of older and minority workers
 Excessive number of unqualified applicants
 Personal information privacy concerns of applicants
5–22
FIGURE 5–6 An Indian Online Employment Portal

Resource Management, 12/e Source: http://www.timesjobs.com, accessed in September 2010.
5–23
FIGURE 5–7 Ineffective and Effective Web Ads

Source: Workforce, December 2001, © Crain Communication, Inc. Reprinted with permission.
5–24
Advertising for Outside Candidates
• The Media Choice
 Selection of the best medium depends on the
positions for which the firm is recruiting.
 Newspapers: local and specific labor markets
 Trade and professional journals: specialized
employees
 Internet job sites: global labor markets
• Effective Ads
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression of the firm.
5–25
Employment Agencies
Types of Employment
Agencies
Government
Nonprofit Private
Employment
Agencies Agencies
Exchanges

5–26
• Why Use a Private Employment Agency
 No HR department: firm lacks recruiting and
screening capabilities.
 To attract a pool of qualified applicants.
 To fill a particular opening quickly.
 To attract more minority or female applicants.
 To reach currently employed individuals who are
more comfortable dealing with agencies.
 To reduce internal time devoted to recruiting.

5–27
• Avoiding Problems with Employment Agencies
 Provide the agency with accurate and complete job
descriptions.
 Make sure tests, application blanks, and interviews
are part of the agency’s selection process.
 Review candidates accepted or rejected by your firm
or the agency for effectiveness and fairness of
agency’s screening process.
 Screen agency for effectiveness in filling positions.
 Supplement the agency’s reference checking by
checking the final candidate’s references yourself.
5–28
Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows “trial run” for prospective employees
 No recruitment, screening, and payroll
administration costs
• Costs of Temps
 Increased labor costs due to fees paid to temp
agencies
 Temp employees’ lack of commitment to the firm

5–29
Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment
by employers.
• Insecurity about employment and pessimism about the
future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether
temporary assignments are likely to become full-time
positions.
• Being “underemployed” while trying return to the full-
time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.
5–30
FIGURE 5–9 Things Managers Should Avoid When Supervising Temp Employees
1. Do not train your contingent workers. Ask their staffing agency to handle training.
2. Do not negotiate the pay rate of your contingent workers. The agency should
set pay.
3. Do not coach or counsel a contingent worker on his/her job performance.
Instead, call the person’s agency and request that it do so.
4. Do not negotiate a contingent worker’s vacations or personal time off. Direct
the worker to his or her agency.
5. Do not routinely include contingent workers in your company’s employee
functions.
6. Do not allow contingent workers to utilize facilities intended for employees.
7. Do not let managers issue company business cards, nameplates, or employee
badges to contingent workers without HR and legal approval.
8. Do not let managers discuss harassment or discrimination issues with
contingent workers.
9. Do not discuss job opportunities and the contingent worker’s suitability for
them directly. Instead, refer the worker to publicly available job postings.
10. Do not terminate a contingent worker directly. Contact the agency to do so.

Source: Adapted from Bohner and Selasco, “Beware the Legal
Risks of Hiring Temps,” Workforce, October 2000, p. 53.
5–31
Working with a Temp Agency
• Invoicing. Make sure the agency’s invoice fits your company’s
needs.
• Time sheets. The time sheet is a verification of hours worked and
an agreement to pay the agency’s fees.
• Temp-to-perm policy. What is the policy if you want to hire a temp
as a permanent employee?
• Recruitment of and benefits for temp employees. How does the
agency plan to recruit and what sorts of benefits it will it pay?
• Dress code. Specify the attire at each of your offices or plants.
• Equal employment opportunity statement. Get a statement from the
agency that it does not discriminate when filling temp orders.
• Job description information. Ensure that the agency understands
the job to be filled and the sort of person you want to fill it.
5–32
• Executive Recruiters (Headhunters)
 Contingent-based recruiters
 Retained executive searchers
 Internet technology and specialization trends
• Guidelines for Choosing a Recruiter
1. Make sure the firm is capable of conducting a
thorough search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Never rely solely on the recruiter to do reference
checking.
5–33
• College Recruiting
 On-campus recruiting  On-site visits
goals  Invitation letters
 To determine if the  Assigned hosts
candidate is worthy of
 Information packages
further consideration
 Planned interviews
 To attract good
candidates  Timely employment
offer
 Follow-up
 Internships

5–34
• Employee Referrals
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce.
 Relying on referrals may be discriminatory.
• Walk-ins
 Seek employment through a personal direct
approach to the employer.
 Courteous treatment of any applicant is a good
business practice.
5–35
Improved Productivity Through HRIS:
An Integrated Technology Approach to Recruiting
Requisition Management System
Integrated Recruiting Solution

Integrated Employee
Recruitment System
Screening Services
Hiring Management

5–36
Recruiting A More Diverse Workforce
Single Parents
The Disabled Older Workers
Minorities and
Welfare-to-Work
Women

5–37
Developing and Using Application Forms
Uses of Application
Information
Applicant’s Applicant’s Applicant’s Applicant’s

education and progress and employment likelihood of
experience growth stability success

5–38
FIGURE 5–13
Employment
Application

5–39
KEY TERMS
employment or personnel position replacement card

planning recruiting yield pyramid
trend analysis job posting
ratio analysis succession planning
scatter plot alternative staffing
computerized forecast on demand recruiting services
qualifications inventories (ODRS)
personnel replacement charts application form

5–40

Human Resources Planning and Recruitment

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Human Resource

Part 2 | Recruitment and Placement

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

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Trend Analysis Ratio Analysis Scatter Plotting

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Note: After fitting the

Size of Hospital Number of

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

 Builds teams of HR experts

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters

3 Employment Agencies 8 College Recruiting

Temp Agencies and Alternative

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Requisition Management System

Integrated Recruiting Solution

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

The Disabled Older Workers

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Applicant’s Applicant’s Applicant’s Applicant’s

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

employment or personnel position replacement card

Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd

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