Recruitment

Human Resource
Management
Chapter Six
Recruitment

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-1

Purpose of Recruitment
 Activities

that will identify potential employees,
communicate job and organizational attributes
to them and convince them to apply
 Key to success is finding qualified individuals
who have knowledge, skills and abilities
(competencies) to do the job
 Effective recruiting will free managers to spend
more time and effort on other management
activities
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-2

Recruitment Process
1.

2.
3.
4.

Decide on the objective for the recruiting
process
Identify the best sources for recruitment
Craft the recruitment message
Familiarize oneself with the job duties and
requirements of the position

In small business, managers are involved in
all stages. In large businesses, recruiters
take the lead
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-3

Internal Recruitment
 Gives

opportunities for promotion to
employees
 Word of mouth is simplest, but not always
most effective
 Job posting is most common formal method:
posting note on bulletin board, note in
company newsletter, or on company intranet

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-4

“Netiquette” for Advertising
Jobs on Intranet

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-5

Other Methods of Sourcing
Internal Candidates
Employee inventory: a searchable database to
identify employees who meet certain job
requirements
 Performance appraisals or supervisor feedback
on candidates


6-6
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Pros and Cons of
Internal Recruitment
Pros:





Most cost-effective
Existing employees already familiar with company
Employees motivated by opportunities for
advancement
Managers have access to applicants’ past
performance

Cons:



Sometimes companies want new ideas
Need for diversity
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-7

External Recruitment




Source should be dictated by nature of the
job, location, and skill level needed
Relevant labor market: location in which one
can reasonably expect to find a sufficient
supply of qualified applicants

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-8

Advertising
Should use multiple sources and keep them up-to-date


Newspaper is most popular (Sunday vs. weekday)




Wall Street Journal or USA Today for high-level finance or
corporate jobs
Downside is expense



Bulletin boards at colleges, U.S. Department of Labor, or
professional organizations



Internet




CareerBuilder.com, Monster.com
Company Web sites may contain a “Careers” link
Cost is negligible
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-9

Outstanding Employer Web Site

http://www.statefarm.com/about/careers/careers.asp

State Farm Career Center
®

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You have the skills. We have the opportunity, character, and strength you demand.
Let's talk about your future with State Farm®
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Diversity

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Actuarial Analyst
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At State Farm, diversity isn't a program, it's a state of
mind.
Learn More

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-10

College Recruiting
 Sending

recruiters to college campuses to
attract employees right out of college
 Recruiters usually have multiple openings
 May speak to student organizations or alumni
groups
 Internships are sometimes offered to
evaluate performance and allow student to
get to know organization
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-11

Employment Agencies and
Search Firms
 May

benefit small HR departments to make
recruiting process more efficient
 Public employment agencies provide career
guidance, testing, training, and placement for
free
 Private employment agencies provide job
search assistance for a fee
 Contingency recruiting agencies are paid a
fee or percentage of new hire’s salary upon
completion of search and placement
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-12

Search Firms (cont’d)




Retained agencies paid a retainer by
employer to conduct job search (also called
executive search firms or headhunters)
On-demand recruiting services charge
based on time spent recruiting rather than
per hire

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-13

Other Recruitment Sources


Professional Associations—often provide
placement services or job listings as a service
to members

Career Opportunities at the AICPA
The AICPA has a number of job opportunities available
in various locations. One may be right for you

6-14
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Other Recruitment Sources
(cont’d)
Temporary Employees may often become
permanent employee (temp to hire)
 Employee Referrals—employees can receive
a bonus if their referral is hired and many
referrals tend to have lower turnover and
greater job satisfaction


6-15
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Sourcing Applicants
Sourcing—process of finding passive job
candidates (not in the job market)





Social networking sites such as LinkedIn.com
Resume spidering—process of tracking down
passive job applicants by searching the Web for
resumes
Re-recruiting former employees to return

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-16

Pros and Cons of
External Recruitment
 More

costly than internal recruitment
 May upset existing employees if internal
applicants don’t get the job
 Give firm the opportunity to bring in
employees with fresh perspective
 Allows company to target specific
competencies that current employees may
not possess
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-17

Preparing Recruitment
Advertisements
Creating a value proposition and branding will help
applicants differentiate one company from another
Recruitment value proposition should include:





Information about job’s duties, working environment,
rewards
Company’s corporate image and values
Level of compensation and leadership development
opportunities
Employer branding—how stakeholders perceive the
company
6-18
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Writing the Recruitment Message
Convey the value proposition, brand, and
company-related information
 Include brief description of job and its
minimum requirements
 Individuals are attracted to jobs for which
they have more information
 Gear a high quality message to target
audience


6-19
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Recruiters
 Includes

professional recruiters and
managers involved in identifying and
attracting employees
 Personality of recruiter and knowledge about
job and company are important
 Need to be trained on value proposition, EEO
issues, and issues about false representation
6-20
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Realistic Job Preview
Balanced recruitment message will have the
best long-term results
 Realistic job preview (RJP) will enable
applicants to screen themselves out of
application process
 RJP will help decrease turnover and increase
satisfaction of new hires


6-21
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Recruitment Follow Up






Maintaining communication with
prospective employees conveys your
company’s interest in them
Let each applicant know their status by
sending a personalized letter
Measure effectiveness of recruitment
effort with yield ratios, cost-per-hire, time
to fill, and managers’ feedback
6-22
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Content of Recruitment Message








Advantages of working for the organization
Competencies sought
Positive “story” about why employees would
want to work for company
Cost leadership strategy: message may
focus on efficiencies and cost reductions
Differentiation strategy: message may focus
on customer experience
6-23
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Choice of Recruitment
Methods
 Word-of-mouth

(employee referrals) is low-

cost
 Trade publications and Web sources target
individuals with specific backgrounds or skills
 More established firms have more formal
recruitment processes
 Succession planning and replacement charts
may help internal recruiting
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-24

Managing Recruitment
 Smaller

companies require managers take
lead in recruitment process
 Larger companies will have staffing
departments
 Companies should focus on specific job
information, reputation of company, and
compensation and benefits package

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-25

Internal vs. External Recruiting
 Many

companies attempt to fill position
internally before recruiting externally
 Too much focus on internal recruiting may
make the company too insular
 Too much focus on external recruiting will
make employees feel less valued and lead to
turnover

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6-26

Appeal of the
Recruitment Message
Not all applicants will focus on same things when
seeking a new job:







Company’s culture
Development of their careers
Opportunities to create innovative products
Values of work/life balance
Tasks of the job itself
Benefits and compensation level

6-27
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Influences on
Recruitment Practices
 Target

for the recruitment message
 Competencies identified for position
 Aging of the available workforce
 Diversity of employee base and availability of
diverse applicants
 Unemployment rates and nature of labor
market
 Technology to automate the process
6-28
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Recruitment Process
Can enable a company to track and screen
applications and resumes and search by identified
KSAs
•

•
•

Enterprise resource planning—enables a company
to integrate information from different functional
areas of the company
Recruitment application package—links to
company’s Human Resource Management System
Application service provider (ASP)—a company that
hosts software on its own Web site so company
doesn’t need to
6-29
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Other Impacts on Recruiting




Computer skills
required for all types of
jobs including
manufacturing
Global recruiting
impacts recruiting
message as well as
sensitivity to country
laws, norms and
values—method may
vary by country

Qualifind provides professional and executive
search services for specific disciplines
and industries throughout the U.S. and
Mexico.

6-30
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Value Proposition Offered


Fortune’s list of 100
best companies to work
for include those that
stress work/life balance
and corporate social
responsibility

6-31
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Challenges to Truth-in-Hiring
 Employers

trying to aggressively attract
employees in tight labor market may mislead
 Employees who are terminated may seek
recourse against former employers
 Job candidates may be lured away from
existing job with promises that fail to
materialize
6-32
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ways to Reduce Truth-inHiring Claims

6-33
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ethics and Regulatory Issues










Code of ethics should be shared with applicants
during recruitment process
Poaching (taking employees from competitors) may
backfire when new employees leave for the next
best offer
Recruitment activities cannot discriminate, firms
should use multiple sources for applicants
Recruiters should be trained on behavior and what
questions to ask job applicants
Careful attention to recordkeeping of resumes and
applications
6-34
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall