Human Resource Management

Recruiting in Labor Markets

 

 

Recruitment is the process of generating a pool of qualified applicants for organizational jobs.

ü      Special attention must be paid to the issues of skills, knowledge, and abilities necessary to perform the identified tasks.

·        It may be necessary to reconsider job requirements and cast a wide net to find qualified workers.

·        If job requirements are lowered, it will take more time and cost more money to train the new hire.

ü      Recruiting efforts may be viewed as either continuous or intensive.

ü      Small employers may have difficulties in recruiting against larger organizations because they can’t offer the same training and benefits.

ü      Organizations need to establish goodwill within the labor market and maintain positive recruitment visibility.

ü      Retention may be considered to be a key strategy to reduce staffing costs.

·        Cross-train workers to be more valuable and ready to serve in jobs when needed.

·        Create a positive work environment, where incumbents feel respected to reduce turnover.

o       Remember that people will do what is measured and rewarded!

 

EEO issues in recruitment can be challenging for organizations.

ü      When the organization has an under-representation of a protected class, word-of-mouth referrals have been considered to be a violation of Title VII.

·        This type of discrimination is called disparate impact.

·        Employment advertising, campus recruiting, and using outside sources to fill vacancies at all organizational levels are safer alternatives.)

ü      Include an EEO statement in all printed recruitment advertising.

ü      Using recruitment sources that target the appropriate types of applicants best facilitates work force diversification.

·        Older workers and protected group members should be the focus for recruiting diverse workforce members.

·        When recruiting applicants with disabilities, for example, HR professionals should contact associations that specialize in representing disabled individuals.

 

Labor markets are the external sources from which organizations attract employees.

ü      Labor markets may be identified by geographic area, type of skills required, type of work, etc..

ü      A tight labor market exists when demand for employees exceeds the supply of people with appropriate qualifications.

ü      The labor force population includes all individuals available for selection, if all possible recruitment strategies are used.

ü      The group available for selection using a particular recruiting approach is called the applicant population. (Recruiting methods used affect the nature of the applicant population.)

ü      The applicant pool consists of all individuals who are actually evaluated for selection.

 

The recruitment process must support the organization’s strategic plan.

ü      The first step in the recruitment process is the development of the HR plan, when the HR unit forecasts recruiting needs.

ü      When a position is opening, a requisition is completed by the operational manager and submitted to the HR unit.

·        This usually triggers a review of the job description and job specifications by an HR representative and the operational manager.

·        Operational managers are responsible for KSA determination and needs determination for employees based on planned vacancies.

ü      Recruiting contingent workers requires understanding of the complexities of that applicant population.

·        Flexible staffing makes use of recruiting sources and workers who are not employees.

·        The use of temporary workers may make sense when the work is subject to seasonal or other fluctuations. (Temps may not reduce costs.)

·        Independent contractors perform specific services on a contract basis.

·        Employee leasing firms take over the staff of a small business and write the paychecks, provide benefits, and keep all required records for a service fee.

o     Leased workers may sue the client firm for work-related injuries if there has been negligence by the client.

·        Professional Employer Organizations (PEOs)

 

 

 

Internal recruiting generally provides better assessment of actual abilities than does external recruiting.

ü      Job posting and bidding gives employees opportunities to move into better jobs within the organization.

·          In unionized organizations, job posting and bidding can become very formal.

ü      The biggest problem with promoting from within is that performance on one job may not be a good predictor of performance on another.

·        The logic of prediction holds only as long as conditions remain the same, or at best very similar to past working environments.

·        The organization may lose its best technicians by promoting them to management positions, and then they may not make very good managers!

ü      The principle advantage of hiring former employees is that their performance is generally known. 

·        Former applicants and previous “walk-ins” may also be recruited.

ü      Internal recruiting databases, which are used as applicant tracking systems, serve as internal talent banks.

 

 

External recruitment may bring applicants who have industry insights not currently available within the organization.

ü      When using external recruiting practices, managers must realize there will be a longer adjustment/orientation time after hire.

ü      The biggest problem with external recruiting is that of morale problems for internal candidates who are not selected.

ü      There are several external recruiting methods used today.

·        Media sources

o       Use appropriate media sources.
o       Evaluate recruitment advertising effectiveness.    

·        College and school recruiting

o       College recruiters choose specific colleges because of their reputation, current position requirements and organizational budget constraints.

s        The candidate’s impression of a college recruiter affects hire rates.

s        Recruiters generally give most value to high GPA, oral and written communication skills, poise and appearance.

o       Cooperative education programs employ students who work part-time and receive school credit.

 

 

External recruitment (continued)

·        Labor unions

o       In some industries, such as construction, unions have traditionally supplied workers to employers.

o       Unions can work to an employer’s advantage through cooperative staffing programs.

·        Trade and competitive sources

o       Trade and competitive sources are good sources of applicants, since recruits from these sources will spend less time in training, since they already know the industry.

·        Executive search firms are ethically bound not to approach employees of client companies in their search efforts for another client.

o       Executive search firms are oftentimes paid on retainer.

o       Contingency executive search firms usually charge their client company a fee only after the candidate has been hired.

·        Employment agencies

·        Internet recruiting

·        Professional Employer Organizations (PEOs)

 

Recruitment process evaluation assesses the success of recruiting efforts. 

ü      Evaluating recruiting quantity and quality is important because it is the only way to determine whether the efforts are cost effective in terms of time and money spent.

·        Selection rate equals the number hired divided by the number of applicants.

·        Base rate is the proportion of applicants who are judged as “successful” using the current selection procedures.

·        Yield ratio is a comparison of the number of applicants at one stage of the recruiting process to the number at the next stage.    

·        (Note: Success ratio is the proportion of selected applicants who are later judged as being successful on-the-job.)

ü      Evaluating recruiting cost and benefits

·         Length of time from contract to hire
·         Total size of applicant pool
·         Proportion of acceptances to offers
·         Percentage of qualified applicants in pool