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Chapter 5 Recruitment 5 4 RECRUITMENT CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the strategic importance of the recruitment function. Discuss the constraints facing a typical recruiter. Identify the appropriate recruiting methods for different types of jobs. Design a job application form. List key measures for evaluating the effectiveness of the recruitment function. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) 5-1 Part 3 Attracting Human Resources ® LECTURE OUTLINE (with PowerPoint slides) RECRUITMENT Recruitment Slide 1 Recruitment Defined Slide 2 The Recruitment Process Slide 3 Strategic Importance of Recruitment Slide 4 Finding new employees for the organization is a continuing challenge. Recruitment is the process of finding and attracting capable individuals to apply for employment • Responsibility for recruitment usually belongs to the human resource department -- Recruiters: Specialists within the human resource department of large organizations who are responsible for recruitment THE RECRUITMENT PROCESS • Identify job openings -- Human resource planning -- Requests by managers Identify job requirements -- Reviewing job analysis information i.e. job descriptions and specifications -- Requesting manager Determine recruitment methods -- Usually more than one method is used to find suitable candidates e.g. school, college and university visits, advertisements, contacts with professional and labour associations, use of government agencies such as HRDC Obtain applications -- Recruitment process ends when a pool of recruits is obtained -- The right type of applicant is more important than the number of applications received Constraints -- Variety of constraints may be faced (discussed later in the chapter) STRATEGIC IMPORTANCE OF THE RECRUITMENT FUNCTION Recruitment decisions may have profound implications for the organization and its strategic success Gaining Competitive Advantage from Human Capital -- Highly skilled and motivated employees are a source of competitive advantage 5-2 Chapter 5 Recruitment • Reaping the Benefits of Diversity Management -- Diversity provides vitality and competitive advantage Focusing on Employee Development -- Organization has a choice to develop and promote internal candidates or hire from outside Investing Resources into Recruitment -- Decision on the total recruitment budget affects the quality of recruits and the overall effectiveness of recruitment Internal Recruiting Slide 5 INTERNAL RECRUITING External Recruiting Slide 6 Advantages -- Employee is familiar with the organization and its culture -- Lower recruitment costs -- Employee is “known” to the firm; this improves the organization’s ability to predict the person’s success in the job -- Improves workforce morale and motivation Weaknesses -- Internal rivalry and competition for higher positions can reduce interpersonal and interdepartmental cooperation -- No “new blood” is brought into the system, which can prevent creative solutions from emerging -- Poor morale (leading to possible turnover) of employees who were not promoted EXTERNAL RECRUITING Advantages -- Organization is able to acquire skills or knowledge (competencies) that may not be currently available within -- Newer ideas and novel ways of solving problems my emerge Weaknesses -- Newcomers may not fit in with the organization and into its present culture -- Newcomers take a longer time to learn about the organization’s culture, policies, and practices -- Usually, hiring from the outside is more expensive -- Lowered morale and motivation levels of current employees who don’t see any career growth possibilities within the firm 5-3 Part 3 Attracting Human Resources Constraints: Organizational Policies Slide 7 CONSTRAINTS ON RECRUITMENT Constraints on Recruitment Slide 8 2. Human Resource Plans Recruiters need to consider the firm’s overall plan to fill existing and future vacancies, including decisions on whether to fill internally or by recruiting from outside 1. Organizational Policies Promote-from-Within Policies -- Gives present employees the first opportunity for job openings and facilitate their career growth Compensation Policies -- Recruiters seldom have the authority to exceed stated pay ranges Employment Status Policies -- Some unionized settings have limitations against hiring part-time, temporary, and contract workers -- Policies may be in place against hiring employees who have second jobs International Hiring Policies -- May require foreign job openings to be staffed with local citizens 3. Diversity Management Programs Where diversity management and Employment Equity Programs exist, recruitment must also take these programs into account 4. Recruiter Habits The propensity of a recruiter to rely on methods, systems, or behaviours that led to past recruitment success Habits may perpetuate past mistakes or obscure effective alternatives 5. Environmental Conditions • Leading Economic Indicators -- Statistics Canada publishes the direction of the leading indicators -- Predicted versus Actual Sales (influences recruiting) -- Help Wanted Index (volume of want ads in major metropolitan newspapers 6. Job Requirements • Highly specialized workers are more difficult to find than unskilled 7. Costs Recruiters must operate within budgets and minimize expenses wherever possible 8. Inducements May be needed to stimulate a potential recruit’s interest Examples include: monetary, flextime, non-traditional benefits 5-4 Chapter 5 Recruitment Recruitment Methods Slide 9 Recruitment Methods (cont’d) Slide 10 RECRUITMENT METHODS Applicants today, tend to use several methods in their search for employment • Walk-ins and Write-ins -- Job seekers who arrive at or write to the human resource department in search of a job without prior referrals and not in response to a specific ad (includes resumes via email) • Employee Referrals -- Recommendations by present employees to the recruiter about possible job applicants for a position -- Excellent recruitment technique however, caution must be taken to ensure this method does not intentionally or unintentionally discriminate • Advertising -- Want ads are the most familiar form of employment advertising -- Blind ads are want ads that do not identify the employer -- Other advertisements include media-billboards, television, radio, and transit advertising Human Resources Development Canada (HRDC) -- Federal agency that provides programs and services for employers and present and potential employees -- Programs and activities include the Job Bank (database of jobs and work opportunities); Electronic Labour Exchange (computer-based recruitment tool); Canada WorkInfoNet (information on jobs and recruiting); Federal Government Employment Opportunities; YouthPath (opportunities to work at national parks, etc.); Job Futures (information on the current and future demand for various occupations) Private Employment Agencies -- Take an employer’s request for recruits and then solicits job seekers -- May screen applicants or provide a stream of applicants for the client’s human resource department to screen Professional Search Firms -- More specialized than placement agencies -- For a fee, recruit specialized personnel by telephone, and at times, recruit from a competitor Educational Institutions -- A common source of recruits for entry-level openings -- In recent years, “co-op education” programs have become popular Professional Associations -- Professional associations can be a source of job seekers • Labour Organizations -- Local labour organizations maintain list of people with trade skills 5-5 Part 3 Attracting Human Resources who are looking for employment • Non-Traditional Recruitment Methods Slide 11 Job Application Forms Slide 12 Armed Forces -- Trained personnel leave the armed forces regularly. Many of these people have hard-to-find skills Government of Canada Youth Programs -- Sources of information exist for firms that hire young persons Temporary-Help Agencies -- Provide “on-loan” employees for temporary jobs during vacations, peak seasons, illnesses, etc. Departing Employees -- Buy-back is a method of convincing an employee who is about to resign to stay with the organization by offering increased wages, schedule changes, etc. Open House and Job Fairs -- May be useful methods to attract employees The Internet -- Becoming one of the most important tools to match jobs with candidates -- Accessible all the time, broadens the recruitment base, costeffective distribution, minimizes time needed to screen, inexpensive Non-traditional Recruitment Methods -- Applicant Tracking Systems--databases of potential candidates to facilitate matching of job requirements and applicants -- Contingent/Contract/Leased Workers—includes self-employed, temporary or leased employees -- Alumni Associations—source of experienced employees for technical and managerial positions -- Direct Mail Solicitations—to target a specific population segment or geographic area -- Recruitment Abroad—Canada recruits skilled workers from other countries e.g. computer programmers JOB APPLICATION FORMS Name and Address o – Are nearly universal requests—need to ensure that information sought is job-related i.e. non-discriminatory Employment Status -- Employment objectives and availability Education and Skills -- Uncovers the job seeker’s abilities e.g. specific skills and education Work History -- Listing of past jobs Military Background -- Military experience, discharge date and type 5-6 Chapter 5 Recruitment Evaluating Recruitment Slide 13 Memberships, Awards, and Hobbies -- Off-the-job activities may make one candidate preferable over another e.g. managerial and professional positions References -- In additional to traditional references questions may explore criminal record—must ensure job-relatedness Signature Line -- Candidates are usually required to sign and date their applications -- Allows the employer to check references, verify records, etc. -- Affirms the information is true and accurate—falsification of an application form is grounds for discharge in most organizations EVALUATING THE RECRUITMENT FUNCTION The effectiveness of the recruiting function should be evaluated on an ongoing basis. Popular measures include: Cost per Hire -- The dollar cost per person recruited—should include the direct and apportioned costs and overhead Quality of Hires and Cost -- Addresses the quality of people hired from various sources e.g. performance, absenteeism Offers-to-Applicants Ratio -- Ratio between the number of job offers extended and the total number of applicants calculated for each recruitment method Time Lapsed per Hire -- Time taken to fill a position 5-7 Part 3 Attracting Human Resources ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. What background information should a recruiter have before beginning to recruit job seekers? 5. Suppose your employer asks you, the human resource manager, to justify the relatively large recruiting budget that you have been historically assigned. What arguments would you provide? What indices or measures will you provide to show that your recruitment is cost-effective? Recruiters need information in two general areas: knowledge of the constraints under which they are expected to perform and knowledge of the particular job to be filled. Familiarity with company policies, labour markets, human resource plans, and affirmative action guidelines are important constraints imposed on the recruiter. In addition, the recruiter must have knowledge of the particular job, either through job analysis information or discussions with the manager who has the job opening. There is a need to have quality recruits, which would allow better selection decisions to be made. Less qualified employees may cause organizational problems and customer irritation or dissatisfaction. There is also the higher turnover problem with unsuitable employees, causing additional hiring and training costs. Some indices that can be used: cost per hire; quality of hires and cost offers; applicant ratios; time lapsed per hire. Figure 5-9, p. 237 shows additional measures to evaluate the effectiveness of a company’s recruitment function. 2. Give three examples of how organizational policies affect the recruitment process. Explain how these influence a recruiter's actions. Policies in compensation limit the money available to attract qualified applicants. The affirmative action plan and policies may suggest specific types and sources of workers. Promotion-from-within policies may require the recruiter to undertake a thorough review of present employees before seeking applicants externally. 3. Under what circumstances would a blind ad be a useful recruiting technique? Whenever an employer seeks to avoid large numbers of applicants or whenever the recruiter thinks people will be less willing to apply if they know the employer or nature of the job, a blind ad may be appropriate. Blind ads also are used in order not to inform competitors of hiring needs or to keep job incumbents from knowing an opening exists, especially where an employee is to be terminated. . 4. "If a job application omits important questions, needed information about recruits will not be available. But if a needless question is asked, the information can be ignored by the recruiter without any other complications." Do you agree or disagree? Why? Disagree. Needless questions that are not job-related may be relied upon to make the final hiring decision. If such is the case, the irrelevant information may discriminate against a protected class. 5-8 Chapter 5 Recruitment ANSWERS TO CRITICAL THINKING QUESTIONS helpful if the recruiter had knowledge to "sell" the company. This sales information requires an understanding of wages, benefits, company-provided services, the local community, opportunities for advancement, and other information sought by applicants. 1. After months of insufficient recognition (and two years without a raise), you accept an offer from another firm for a $2,000-a-year raise. When you tell your boss you are resigning, you are told how crucial you are to the business and are offered a raise of $2,500 per year. What do you do? Why? What problems might exist if you accept the buyback? 4. In small businesses, managers usually handle their own recruiting. What methods would you use for the following situations? Why? (a) The regular janitor is going on vacation for three weeks. (b) Your office assistant who manages all appointments and handles all filing in your office has the flu and won’t be in the office for two days. (c) Two more salespersons are needed: one for local customers and one to open a sales office in Victoria, British Columbia. (d) Your only chemist is retiring and must be replaced with a highly skilled individual. (e) Next week, your only computer programmer/analyst plans to begin on a three-week leave to visit his sick mother in India. If his mother’s health turns for the worse, he may be delayed by another week or two. Although there is no right answer to the first two parts of this question, students might be brought around to discussing the question of their obligation to the other employer with whom they have accepted an offer. The problems that might exist are several. The employee might not receive another raise for some time, having just received one. Secondly, the person's future loyalty to the organization may be questioned, and it may affect future promotions. Finally, nothing prevents the first employer from firing someone it kept through a buy-back once a replacement is found through a blind ad. 2. Suppose you are a manager who just accepted the resignation of a crucial employee. After you send your request for a replacement to the human resource department, how could you help the recruiter do a more effective job? Janitor. Since janitorial services cannot be left undone for three weeks, a replacement is needed either by temporarily assigning those duties to someone or hiring a temporary worker or private contractor to do the work. By reviewing the job description and position description information to see if it is accurate and complete, the manager understands the type of recruit likely to be sought. If that information is outdated or incomplete, a call or visit from the manager would help the recruiter understand the needs of the job more precisely. Office assistant. Since urgent administrative information may have to be completed, many firms consider hiring a temporary office worker. Sharing an assistant or relying on an administrative support pool within the company also may be feasible answers. Salespersons. The local sales position may be filled through want ads, employee referrals, or private or public employment agencies. Filling the Victoria position probably requires hiring a person from the area. Private placement agencies or search firms are the most logical source of such talent unless someone from the company is to be transferred. 3. If at your company the regular university recruiter became ill and you were assigned to recruit at six universities in two weeks, what information would you need before leaving on the trip? The knowledge needed by a new university recruiter is extensive. An understanding of present and future hiring needs, specific job openings and their descriptions, affirmative action goals, and general compensation policies is necessary. It would also be Chemist. To fill a highly skilled position, the manager probably would rely on the skills of a search firm, 5-9 Part 3 Attracting Human Resources although present employees may be able to recommend someone. Computer programmer/analyst: To fill a highly skilled position, on a temporary basis, the manager would either assign the job duties to someone else in the organization or rely on a temporary or private contractor. The manager may wish to contact a related professional association as a source of a qualified person who may be seeking a temporary position. 5. You are the human resource manager in a large auto-assembly unit employing 2000 semi-skilled and skilled employees. Each year you recruit dozens of full time and part time workers. Recently, the vicepresident, Finance, pointed that out that recruitment costs in your firm are increasing steadily. She is proposing a freeze in the recruitment budget. What kind of information will you provide in an effort to change her mind on the matter? The HR manager can show her the productivity of those who were recruited, such as error and scrap rates in their assembly work. The turnover rate of those who were hired would also show the benefit of maintaining the recruitment plan 5-10 Chapter 5 Recruitment ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. 5-11 Part 3 Attracting Human Resources INCIDENT 5.1: ONTARIO ELECTRONICS EXPANSION Incident Comments Rapid expansion of an organization puts a considerable burden on the organization and the human resource department. To meet the demands of rapid expansion, firms often rely on the good judgment of recruiters to know where and how to find capable applicants. Under the circumstances described in the incident, most human resource specialists would take the following actions. 1. Assuming you are given the responsibility of recruiting these needed employees, what channels would you use to find and attract each type of recruit sought? A patent lawyer with considerable experience would be found by employing a professional search firm that specializes in legal talent. Another possibility would be to locate a professional association of patent lawyers. A third option might be to retain a law firm with the needed staff lawyers. A patent lawyer who is familiar with the ins and outs of the patent process and the patent office in Hull, Quebec, also is needed. Although hiring a lawyer might be feasible through search firms or professional associations, this level of expertise might be best obtained by retaining an appropriate law firm in Ottawa or Hull. Twelve engineers are needed, but they represent two different groups, the experienced and the less experienced. Experienced engineers almost certainly would be hired through a search firm. The less experienced ones might be found at colleges and universities that the firm normally uses to recruit engineers. An office manager and clerical staff might be found by pursuing several channels simultaneously. Want ads, private placement agencies, Human Resource Development Canada Centres, walk-ins, and employee referrals are feasible channels of recruitment for these skills. 2. What other actions should the human resource department take now that there is a possibility of very rapid expansion? The human resource plan should be revised to reflect the firm's new opportunities. Based on the outcome of that effort, additional training and recruitment might have to be started immediately in order to supply the human resources needed to meet expansion plans. EXERCISE 5-1: WHAT DO EMPLOYERS WANT? Comment to instructor: Students’ answers will vary. The exercise should make clear to students that often their current skills may not be sufficient to get them a job and that they may have to take certain courses, e.g. Business Communication or Interpersonal Behaviour, to fulfill employers’ expectations. 5-12 Chapter 5 Recruitment CASE STUDY: MAPLE LEAF SHOES LTD. – A CASE STUDY IN RECRUITMENT Answers to Discussion Questions candidates are also encouraged to apply" is likely to be perceived as insulting by many. (Suggestion to the instructor: you may want to ask your female and visible minority students about their reactions to the statements in this ad.) 1. What is your evaluation of the recruitment strategy used by Maple Leaf Shoes? Poor. The recruitment methods used (e.g., ads in the local newspapers and contacting a temporary help agency) are not appropriate given the responsibilities and competencies associated with the HR manager's position. The student should evaluate the ad against the chapter material and list the items that are missing in the ad. Assuming the position is to be advertised, it should have been done in national (or even international newspapers/magazines). Advertisements in the publications of trade organizations and chambers of commerce would also be more appropriate than in local dailies. There is no single correct answer for this question. Emphasize the content when evaluating the final ad (especially the avoidance of illegal, discriminatory, or unnecessary statements). You may give bonus points to students who also give emphasis to copy layout (emphasizing visual balance and tension and attracting the reader's attention instantaneously). 3. Design a new recruitment advertisement for the position of the human resource manager. Hiring a search firm would have been a better approach given the time constraints faced by the firm. The position is also very critical for the survival and prosperity of Maple Leaf Shoes. Clark's actions do not show recognition of this fact. 4. Design an application form to be used for hiring a human resource manager in the firm. The application form should basically be along the lines suggested in this chapter. The application form given in the text chapter should however be modified to meet the needs of a senior managerial position such as this. The student should be asked to show a one-to-one correspondence between the job specifications (s)he has identified for the position and the questions in the application form. It should also be pointed out that the job description and competencies expected of the new job incumbent are not based on any systematic job analysis. Thus, the job description used for recruitment purposes is erroneous. 2. Evaluate the recruitment advertisement. What parts of the copy would seem undesirable? What items are missing in the advertisement? Once again, Poor! The student will note that several of the criteria listed in the text chapter for a good recruitment ad (e.g., clear job definitions, non-sexist language) are violated in this ad. The ad does not tell the reader very much about the job, responsibilities, or the job challenge except in generalities. The language is sexist and very masculine in tone. Adjectives such as aggressive, take charge, etc. show the firm's bias for a "macho" person to head this function. The statement, "qualified women and minority 5-13 Part 3 Attracting Human Resources CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK: EVALUATING RECRUITMENT FUNCTION Answer to Discussion Questions Ninety percent of the investment managers and analysts have at least a university degree, while only 40 percent of the sales staff have a university degree. 1. Make your recommendation on the best recruitment methods for each type of workforce. Both advertisements and Internet recruitment attract the most number of applicants for both investment managers and analysts, and for sales staff. Internet recruitment led to the most number of investment managers who accepted job offers, but also the highest number that left the firm within two years. Advertisements led to the most number of sales staff who accepted job offers with only two leaving within two years. In balancing between costs and the number of successful hires, internet recruitment appears to be the best-suited method for the managers, while advertisement appears to be best suited for the sales staff. Campus recruiting (using referrals from current employees) may also be effective due to the savings associated with reduced training requirements. Consideration for this method will need to be balanced against the likelihood that allegations of discrimination may arise. For investment managers, their specialized skills and experience suggests that the best recruitment method is through professional associations and advertisement in trade publications. Professional search firms may be expensive but may be able to locate qualified applicants for technical and managerial positions that are hard to fill. For sales staff, their skills suggest that recruitment can be done through newspaper want-ads and educational institutions. Internet recruitment can be used for both types of employees. 2. What other conclusions can you arrive at when looking at the figures provided in the case? The statistics reveal the following patterns: Women are underrepresented among investment managers and analysts. Most of the investment managers and analysts are less than 30 years old, while the sales staff have a more balanced age distribution. 5-14