Chapter 5 Recruiting Applicants
Chapter 5 Objectives • Understand how a firm’s recruiting practices can lead to competitive advantage • Explain the choices involved in planning a recruitment strategy • Discuss the various recruitment methods
Linking Recruitment to Competitive Advantage A recruiting program has five goals:
Linking Recruitment to Competitive Advantage Achieving cost efficiency: • Reducing recruitment costs without lowering productivity can help enhance competitive advantage. Recruiting program goals:
Linking Recruitment to Competitive Advantage Recruiting program goals: Attracting highly qualified candidates • Sufficient number of qualified candidates must be notified of available opportunities. • Actions must be taken to enhance the likelihood that the best applicants will accept their job offers
Improving job retention rates through the use of realistic job previews (RJPs) RJPs can reduce turnover by giving applicants more realistic information about the job and the organization. Applicants can make a more informed choice about whether or not to accept the job offer. Reducing turnover rates can result in substantial savings. Linking Recruitment to Competitive Advantage Recruiting program goals:
Achieving legal compliance and creating a diverse workforce: Organizations can help prevent discrimination charges by targeting recruitment efforts toward underutilized groups. Extending recruitment practices to disadvantaged groups can create a more culturally diverse workforce. The manner in which a company treats these candidates during the recruitment process is vital. Linking Recruitment to Competitive Advantage Recruiting program goals:
Recruitment Planning Step 1: Identifying the Job Opening • Organizations should attempt to identify job openings well in advance of an announced resignation. • The HRM department should plan for future openings, thus providing organizations with the time needed to plan and implement recruitment strategies.
Recruitment Planning Step 2: Decide How to Fill the Job Opening • Whether to use core or contingency personnel. • If core personnel are to be used, should the firm recruit them internally or externally.
Recruitment Planning Step 2: Decide How to Fill the Job Opening • Core personnel • Hired in the “traditional” manner. • Considered permanent employees. • Included in the organization’s payroll. • Contingency personnel • Employed by a supplier agency, and “loaned” to the organization. • Not included in the organization’s payroll. • Supplier pays the workers’ salaries and benefits. • Fall into three major categories: temps, outsourcing, and independent contractors.
Recruitment Planning Step 2: Decide How to Fill the Job Opening • Advantages of using contingency personnel: • Flexibility to control fixed employee costs. • Relieves a company of many of its HRM burdens. • Cost savings. • Contingency workers who excel at their jobs can be offered core positions.
Recruitment Planning Step 2: Decide How to Fill the Job Opening • Disadvantages of contingency personnel: • May need a considerable amount of orientation and training regarding company procedures and policies. • Might be less loyal or committed to the “host organization.” • May receive better wages than core workers, leading to resentment among core employees.
Recruitment Planning Step 2: Decide How to Fill the Job Opening Internal recruitment • Advantages of internal recruitment: • Enhance morale and motivation. • Qualifications of internal candidates • are well known; openings can be filled • more quickly. • Less expensive. • Internal candidates are more familiar • with organizational policies and • practices, requiring less orientation • and training.
Recruitment Planning Step 2: Decide How to Fill the Job Opening Internal recruitment • Disadvantages of internal recruitment: • Rejected candidates may become • resentful. • Workers promoted into supervisory • positions may find it difficult • managing former coworkers.
External recruitment is limited primarily to entry-level jobs. External recruitment for jobs above the entry level is usually restricted to the following situations: An outsider is needed to expose the organization to new ideas and innovations. No qualified internal candidates apply. The organization needs to increase its percentage of employees within a particular underutilized group. Recruitment Planning Step 2: Decide How to Fill the Job Opening External Recruitment
Specify worker requirements. Decide whether to target certain segments of the applicant population. Recruitment Planning Step 3: Identify the Target Population
Limit the size of the applicant pool by attracting only the most qualified applicants. A good way to do this is to clearly state the job qualifications in the vacancy notification. Recruitment Planning Step 4: Notify the Target Population
Gives the firm a chance to further assess the candidates’ qualifications. Provides candidates an opportunity to learn more about the company and the employment opportunity Recruitment Planning Step 5: Meet with the Candidates
Methods of Internal Recruitment Computerized Progression and Supervisor Selection
Methods of Internal Recruitment Job Posting Strengths: • Enhances the probability that the firm’s most qualified employees will be considered for the job. • Gives employees an opportunity to become more responsible for their career development. • Enables employees to leave a “bad” work situation.
Methods of Internal Recruitment Job Posting Weaknesses: • Position may remain open for an extended period. • The system may prevent supervisors from hiring individuals of their choice. • Some employees may hop from job to job without any clear direction. • Employees whose bids are rejected may become alienated.
Methods of Internal Recruitment Career Development Systems Strengths: • The firm’s top performers are more likely to remain with the organization. • Such systems ensure that someone is always ready to fill a position when it becomes open. Weaknesses: • An employee not selected for grooming may become disenchanted with the organization and leave. • Selected employees may become frustrated if the expected promotion does not materialize because the position never becomes vacant.
Methods of External Recruitment Employee Referrals Strengths • Is effective, quite popular, and cost efficient. • Employees accurately judge the ‘‘fit’’ between the job being filled and the individual, and refer only the highest quality applicants. • Applicants referred by employees tend to perform better and stay longer. Weaknesses • May serve as a barrier to equal employment opportunity.
Methods of External Recruitment Applicant-Initiated and Help-Wanted Ads
Methods of External Recruitment Employment Agencies - Public • Most frequently provide personnel for clerical and blue-collar jobs. • Cost is low as the agency does not charge employers a fee. • The method is efficient as jobs can be filled fairly quickly. • Applicants may lack motivation.
Methods of External Recruitment Employment Agencies - Private • Have the resources to fill a wide variety of jobs. • Candidates register with the agency voluntarily – thus they may be more committed. • Agency charges a fee for its service. • They are especially useful when many individuals are expected to apply for a job or when qualified candidates are hard to find.
Methods of External Recruitment Executive Search Firms • Specialize in the recruitment of mid- and senior-level managers. • Charge the employer a large fee for their services. • Can be unsuccessful – only 50 to 60 percent of all executive searches result in the selection of the type of individual initially specified.
Methods of External Recruitment Campus Recruiting • Used to fill specialized entry-level jobs. • Is costly and time consuming. • Recruitment process can be rather slow.
Methods of External Recruitment Online Recruiting • Is becoming quite popular. • Is much faster and reaches a much larger audience compared to newspaper advertising. • Can be quite expensive. • Not the best approach for reaching external candidates.
Methods of External Recruitment Choosing the Right Method
The Line Manager’s Role in the Recruitment Process Identifying recruitment needs triggered by replacement, additional positions being added, and a newly created job being established. Communicating recruitment needs to the HRM department including needed skills/qualifications for the job and attractive and unattractive features of the job. Interacting with applicants to keep them informed of the status, schedule interviews at their convenience, and allow them to speak to their future coworkers. 3 1 2
The Human Resource Department’s Role in the Recruitment Process Planning the recruitment process: Determine where to find the applicants and how to attract them. Implementing the recruitment process: Includes writing an ad, choosing the employment agency, conducting campus interviews, and coordinating candidates on-site visits. 1 2