Part 2: Staffing the Organization

Chapter 5: Recruiting in Labour MarketsPrepared by Linda Eligh, University of Western Ontario

Learning ObjectivesAfter you have read this chapter, you should be able to:Identify different ways that labour markets can be identified and approached.Discuss the advantages and disadvantages of internal and external recruiting.Specify three internal sources for recruiting and issues associated with their use.List and briefly discuss five external recruiting sources.Explain why Internet recruiting has grown and how employers are conducting it.Discuss three factors to consider when evaluating recruiting efforts.

Strategic Approach to RecruitingBenefits of a Strategic ApproachMatches recruiting activity with organizational and human resource plans.Acquiring the Right Human Capital Entails:Knowing the business and industry to successfully recruit qualified employees.Identifying keys to success in the labour market, including ways to deal with competitors recruiting efforts.Cultivating networks and relationships with sources of prospective employees.Promoting the company brand so that the organization becomes known as a good place to work.Creating recruiting metrics in order to measure the effectiveness of recruiting efforts.

Strategic Recruiting Stages Fig. 5-1

Labour MarketsRecruitingThe process of generating a pool of qualified applicants for organizational jobs.Labour MarketsThe external supply pool from which organizations attract their employees.Labour Force PopulationAll individuals who are available for selection if all possible recruitment strategies are used.

Labour MarketsApplicant PopulationA subset of the labour force that is available for selection using a particular recruiting approach.Applicant PoolAll persons who are actually evaluated for selection.Tight vs.Loose Labour MarketsLow unemployment creates competition for employees, raising labour costs.High unemployment results the availability of more applicants and more qualified applicants.

Labour Market Components Fig. 5-2

Labour Market ComponentsRecruiting DecisionsRecruiting methodAdvertising medium chosen, including use of employment agencies.Recruiting message What is said about the job and how it is said.Applicant qualifications required Education level and amount of experience necessary, for example.Administrative procedures When recruiting is done, applicant follow-up, and use of previous applicant files.

Labour Markets and Recruiting

Strategic Recruiting DecisionsOrganization-Based vs. Outsourced RecruitingHR knows organization best. Outsourcing frees up time and decreases HR staff.Professional Employer Organizations (PEOs) and Employee LeasingSaves HR costs but increases total payroll costs.Increases compliance with government regulations and requirements.Employees may receive better benefits than would be available in many small businesses.

Typical Division of HR Responsibilities: Recruiting Fig. 5-3

Strategic Recruiting DecisionsEffective Recruiting

Recruiting and Diversity Considerations Fig. 5-4

Strategic Recruiting DecisionsRecruiting Diverse WorkersOlder WorkersMid-life career changers: Those who are burned out in their jobs and career fields and leave voluntarily to try new fields.Displaced older workers: Those who have worked but have been displaced, often involuntarily, through job reductions or plant closings.Retirees: Those who took early retirement buyouts or formally retired from prior jobs.Small Businesses

Advantages and Disadvantages of Internal and External Recruiting Sources Fig. 5-6

Internal RecruitingInternal Recruiting ProcessesOrganizational DatabasesProfiles containing background and KSA information on current employees that allow for key word searches to locate suitable candidates for open positions and career development.Job PostingA system in which the employer provides notices of job openings and employees respond by applying.Promotions and TransfersUpward and lateral movements of employees.

Internal RecruitingEmployee-Focused RecruitingCurrent-Employee ReferralsA reliable source composed of acquaintances, friends, and family members of employees that are recommended by current employees.Can violate human rights regulations if it is the sole source of applicants.Re-recruiting of Former Employees and ApplicantsIndividuals who have left for other jobs might be willing to return.

External RecruitingEmployment Agencies and HeadhuntersCollege and University RecruitingHigh Schools and Technical SchoolsLabourUnionsExternal Recruiting SourcesMedia Sources and Job FairsCompetitiveSources

Pros and Cons of Various Media Sources Fig. 5-7

External RecruitingHow to Prepare Effective Job AdvertisementsA I D A the elements of AIDA should be used in every advertisementAttention: advertisement lead needs to catch attentionInterest: inform the reader about the job include must have skillsDesire: explain how the job will benefit the job seeker; sell them on working for youAction: encourage the applicant to take action by providing contact information

Internet RecruitingThe Internet has become a primary means for employers to look for job candidates and applicants to look for jobs. 88% of Global 500 companies use websites for recruitingInternet recruiting most widely used in North America

Internet RecruitingE-Recruiting Methods

Internet Recruiting (contd)AdvantagesRecruiting cost savingsRecruiting time savingsExpanded pool of applicantsMorale building for current employees

DisadvantagesMore unqualified applicantsAdditional work for HR staff membersMany applicants are not seriously seeking employmentAccess limited or unavailable to some applicants

Internet Recruiting (contd)Legal Issues in Internet recruitingThe use (or misuse) of screening softwareExclusion of designated group members and older employees from the processIdentification of real applicantsOnline Informality that leads to improper discussions or information

Recruiting Evaluation and MetricsEvaluating Recruiting Efforts

General Recruiting Process MetricsYield ratiosA comparison of the number of applicants at one stage of the recruiting process to the number at the next stage.Selection rateThe percentage hired from a given group of candidates.Acceptance RateThe percent of applicants hired divided by total number of applicants.Success Base RateComparing the percentage rate of past applicants who were good employees to that of current employees.

Sample Recruiting Evaluation Pyramid Fig. 5-11