ALTERNATIVES TO RECRUITING STRATEGIES FOR DEALING WITH LABOR SHORTAGES

1. ALTERNATIVES TO RECRUITING(STRATEGIES FOR DEALING WITH LABOR SHORTAGES) USE OVERTIME RECALL RECENT RETIREES USE TEMPORARY AGENCIES EMPLOYEE LEASING � (Professional Employer Organizations) OUTSOURCING / SUBCONTRACT WORK TO OTHER FIRMS AUTOMATION / MORE ROBOTICS & TECHNOLOGY TRANSFER WORKERS IN (Temporary and/or Permanently)

2. ALTERNATIVES TO LAYOFFS(STRATEGIES FOR DEALING WITH LABOR SURPLUSES) REDUCE THE WORKWEEK ACCUMULATE SURPLUS INVENTORY � KEEP WORKING REASSIGN WORKERS TO TEMPORARY TASKS ATTRITION � DON�T REPLACE WORKERS OFFER EARLY RETIREMENT INCENTIVES SEEK SUBCONTRACT WORK FROM OTHER FIRMS PERMANENTLY REASSIGN / TRANSFER WORKERS OUT

3. HR Strategies for Addressing a Labor Shortage or Surplus

4. RECRUITING EFFORT IS AFFECTED BY: MANAGERIAL PHILOSOPHY OPEN = Best Specialists Sought From Outside CLOSED = Develop & Promote From Within LABOR MARKET CONDITIONS UNEMPLOYMENT RATES SOUGHT SKILLS (Local v. National Search) ORGANIZATIONAL IMAGE & REPUTATION LEAD-THE-MARKET PAY STRATEGIES (�pay above the average or median rate) INDUSTRY IMAGE & PROGRESSIVE POLICIES (stability, promotions, benefits) INCENTIVES OFFERED FREE WEEKEND TRIP � COME TALK WITH US AWARDS TO EXISTING STAFF WHO MAKE SUGGESTIONS SIGNING BONUSES REGULATIONS & AGREEMENTS LAWS & UNION CONTRACTS

5. Personnel Policies Several personnel policies are especially relevant to recruitment: An organization�s personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies. An organization�s personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies.

6. Image advertising, such as in this campaign to recruit nurses, promotes a whole profession or organization as opposed to a specific job opening. This ad is designed to create a positive impression of the profession, which is now facing a shortage of workers.

7. ARE THESE ADS OK � YES or NO? Zenith Digital Equipment Co. Need women to assemble intricate computer equipment. Must have excellent hand-eye coordination and dexterity. No experience necessary�we will train. Call 341-0192 for application. Need experienced masseuse for evening and weekend work. Apply in person: YWCA, Third and Broadway, Cincinnati, OH. Now is your chance to make it big in films. Need young, beautiful women to star in action/adventure film. Experience helpful but not necessary. Apply in person at Foxes Only Productions, Vineyard Blvd, Hollywood, CA. Energetic, outgoing, slim and attractive lady wanted to teach a great fun aerobics class. Call Jennifer�s Figure World at 874-9238. Need experienced press operator to run small offset press for biweekly newspaper. Must be a member of the Sioux tribe. Apply in person at Peacepipe Press, Sioux Reservation, Crooked River, UT.

8. ARE THESE ADS OK � YES or NO? Contd 6. Experienced male prison guards needed for maximum security facility. Must be able to work effectively in a potentially violent, dangerous environment. Send resume to: Warden, Illinois State Department of Corrections, Joliet, IL 7. Wanted: Male Polynesian fire dancer. Join our terrific dinner show and travel the coast with us. Experience not necessary�will train the right person. Tavannah�s Tahitian Show, PO Box 343, Portland, OR. 8. Needed immediately: Male cook for off-shore oil rig platform. On 21 days �off seven. Call (907) 754-1022. North Shore Drilling Co. Barrow, AK. 9. Custodian needed at His Holiness Catholic School. Must be a practicing member of the Catholic faith. Call Father Francis for an interview at 592-9876. 10. Wanted: Non-smoking middle-aged lady to live-in and care for an elderly male stroke patient. Must have a car for personal use. For more info call 439-9025.

9. EXTERNAL SOURCES OF RECRUITS HIGH SCHOOLS & VOCATIONAL SCHOOLS basic clerical and mechanical skills COMMUNITY COLLEGES specific technical skills needed locally, health-related, retailing COLLEGES & UNIVERSITIES professional, management COMPETITORS (Other Organizations) proven abilities, highly developed skills THE MILITARY hard-working, understand leadership and teamwork, conservative, drug-free THE SELF-EMPLOYED technical, professional expertise THE UNEMPLOYED lost jobs due to downsizing, layoffs THE �RETIRED� experienced, loyal, skilled

10. RECRUITING A MORE DIVERSE WORK FORCE OLDER WORKERS Some retired early�will re-enter later 80% expect to work after retirement Flexible work options Flexible benefit plans Redesign jobs for older workers � less stress, less pay SINGLE WORKERS 2/3 of all single parents are working Flextime programs Daycare benefits Critical relationship�is the supervisor supportive?

11. RECRUITING A MORE DIVERSE WORK FORCE, Contd MINORITIES AND WOMEN Retain the workers you have�don�t let them quit in the first place 32% of Hispanic job seekers �check with friends and relatives� Use referrals from current minority and female employees Recruit at minority-focused schools, etc. WELFARE-TO-WORK Drop-outs, individuals without good work habits Remedial skills training (reading, math, etc) Pre-training assimilation and socialization programs DISABLED 70% of disabled are jobless Are reliable, conscientious, loyal workers�turnover & absenteeism is low Flextime programs Accommodations needed so essential job duties can be performed

12. Internal Recruitment Sources Job Posting: the process of communicating information about a job vacancy: On company bulletin boards In employee publications On corporate intranets Anywhere else the organization communicates with employees Another critical element of an organization�s recruitment strategy is its decisions about where to look for applicants. The total labor market is enormous and spread over the entire globe.Another critical element of an organization�s recruitment strategy is its decisions about where to look for applicants. The total labor market is enormous and spread over the entire globe.

13. Advantages of Internal Sources It generates applicants who are well known to the organization. These applicants are relatively knowledgeable about the organization�s vacancies, which minimizes the possibility of unrealistic job expectations. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization. For the employer, relying on internal sources offers several advantages:For the employer, relying on internal sources offers several advantages:

14. INTERNAL RECRUITING METHODS JOB POSTING AND BIDDING SYSTEMS SUPERVISOR RECOMMENDATIONS PERSONNEL SKILLS INVENTORY SEARCHES (use HRIS) UNIONS REVIEW RECENT LAYOFFS & RETIREMENTS

15. EXTERNAL RECRUITING METHODS UNSOLICITED APPLICANTS Direct Applicants and �Walk-Ins� REFERRALS By Current Employees ADVERTISEMENT Newspapers and Specialized Journals PROFESSIONAL ASSOCIATIONS Professional Conference Placement Bureaus EDUCATIONAL INSTITUTIONS Campus Recruiting, Special Events/Job Fairs, Internships EMPLOYMENT AGENCIES Public Agencies (USES), Private Agencies, Executive Search Firms INTERNET Job Listing Sites or Company Web Pages

16. INTERNET SITES USING THE INTRANET THE CORPORATE WEBSITE GENERAL EMPLOYMENT WEBSITES MONSTER.COM HOTJOBS.COM CAREERBUILDER.COM PUBLIC EMPLOYMENT AGENCIES AJB.DNI.US NICHE SITES PROFESSIONAL ASSOCIATIONS

17. External Recruiting Sources Percentage of Employees Hired Figure 5.3 shows which of the external sources of recruiting are used most among large companies surveyed. According to the survey results shown in Figure 5.3, the largest share (about one-fourth) of new employees hired by large companies came from referrals, and the next largest share (almost 21 percent) came from direct applications made at the employer�s Web site.Figure 5.3 shows which of the external sources of recruiting are used most among large companies surveyed. According to the survey results shown in Figure 5.3, the largest share (about one-fourth) of new employees hired by large companies came from referrals, and the next largest share (almost 21 percent) came from direct applications made at the employer�s Web site.

18. Evaluating the Quality of a Source Yield Ratios A ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next level. By comparing the yield ratios of different recruitment sources, we can determine which source is the best or most efficient for the type of vacancy. Cost Per Hire Find the cost of using a particular recruitment source for a particular type of vacancy. Divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient. There are few rules that say what recruitment source is best for a given job vacancy. Therefore, it is wise for employers to monitor the quality of all their recruitment sources.There are few rules that say what recruitment source is best for a given job vacancy. Therefore, it is wise for employers to monitor the quality of all their recruitment sources.

19. YIELD RATIOS & COSTS PER HIRE Applications Acceptable # Accepted YIELD Cost of COST PER Applicant Source Received Applicants the Position RATIO the Search HIRE Local College/University 200 100 40 40/200 $30,000 $30,000/40 .50 .40 .20 $750 Elite University 100 70 15 15/100 $40,000 $40,000/15 .70 .21 .15 $2,667 Employee Referrals 50 40 30 30/50 $15,000 $15,000/30 .80 .75 .60 $500 Newspaper Advertisement 500 50 25 25/500 $10,000 $10,000/25 .10 .50 .05 $400 Company Website 7000 350 140 140/7000 $5,000 $5,000/140 .05 .40 .02 $36 Exec Search Firm 20 19 15 15/20 $90,000 $90,000/15 .95 .79 .75 $6,000