HR – Planning and HR – Planning and RecruitingRecruiting

Tehzeeb Sakina AmirTehzeeb Sakina AmirHRM-session 5HRM-session 5Spring 2011-MBASpring 2011-MBA

Main contents Main contents

Personnel Planning and forecastingPersonnel Planning and forecasting Recruiting job candidates – recruiting Recruiting job candidates – recruiting

optionsoptions Developing & using application formsDeveloping & using application forms

The Recruitment and Selection The Recruitment and Selection process process

Common HR way:Common HR way: Decide what positionsDecide what positions to fill through personnel to fill through personnel

planning and forecastingplanning and forecasting BuildBuild a a pool of candidatespool of candidates – internal or external – internal or external Have candidates Have candidates complete application forms and complete application forms and

initial screeninginitial screening Use of selection toolsUse of selection tools like tests, physical exams etc like tests, physical exams etc Decide who to make an offerDecide who to make an offer to, by having the to, by having the

supervisor interview the candidatessupervisor interview the candidates

Planning and ForecastingPlanning and Forecasting Employment or personnel planningEmployment or personnel planning – The – The

process of deciding process of deciding whatwhat positions the firm positions the firm will have to fill and will have to fill and howhow to fill them to fill them

Employment planning should come out of Employment planning should come out of the the strategic plansstrategic plans of the organization: of the organization: setting up new plant, entering new setting up new plant, entering new markets, reduce costs etc.markets, reduce costs etc. It will It will influenceinfluence the type of positions need to the type of positions need to

be filled or eliminatedbe filled or eliminated

Planning and ForecastingPlanning and Forecasting The area of concern:The area of concern:

To fill the openings from To fill the openings from within the firm or within the firm or outsideoutside..

Each option produces its own personnel plansEach option produces its own personnel plans Employment plansEmployment plans must be based on must be based on

basic forecasts of three things:basic forecasts of three things: Personnel needsPersonnel needs Supply of inside candidatesSupply of inside candidates Supply of outside candidatesSupply of outside candidates

Forecasting Personnel NeedsForecasting Personnel Needs

The traditional approach - The traditional approach - on revenue on revenue basisbasis

MoreMore comprehensive approach comprehensive approach would be:would be: To consider To consider projected turnover rateprojected turnover rate Decisions to Decisions to upgrade or downgrade productsupgrade or downgrade products

or servicesor services Technological changesTechnological changes Financial resourcesFinancial resources

Forecasting Personnel NeedsForecasting Personnel Needs Trend AnalysisTrend Analysis –study of a firm’s –study of a firm’s past past

employment needs over a period of yearsemployment needs over a period of years to to predict future needspredict future needs

It provides an It provides an initial working groundinitial working ground as as employment needs change over time and employment needs change over time and employment levels rarely depend upon passage employment levels rarely depend upon passage of timeof time

Other factorsOther factors can also affect staffing needs can also affect staffing needs

Forecasting Personnel NeedsForecasting Personnel Needs Ratio AnalysisRatio Analysis – A forecasting technique for – A forecasting technique for

determining future staff needs by using ratiosdetermining future staff needs by using ratios (say between sales volume and number of (say between sales volume and number of employees needed)employees needed)

It assumes that It assumes that productivity remains about the productivity remains about the same!same!

If If productivity change then ratio changeproductivity change then ratio change

Forecasting Personnel NeedsForecasting Personnel Needs The Scatter PlotThe Scatter Plot – a graphical method used to – a graphical method used to

help help identify the relationship between two identify the relationship between two variablesvariables If we can forecast level of business activity, we can If we can forecast level of business activity, we can

estimate for personnel needs as well.estimate for personnel needs as well.

DrawbacksDrawbacks Assume that firm will Assume that firm will continue with existing structure & continue with existing structure &

activitiesactivities Focus Focus exclusively on projected salesexclusively on projected sales volume & volume &

historical personnel relationshiphistorical personnel relationship Support Support outdated compensation planoutdated compensation plan where manager’s where manager’s

reward increases with the number of staff reporting to reward increases with the number of staff reporting to him and do not reveal managers who expand him and do not reveal managers who expand irrespective of company’s strategic needs.irrespective of company’s strategic needs.

Rest on Rest on ‘non-productive’ idea of increasing‘non-productive’ idea of increasing staff as staff as inevitableinevitable

Tend to validate and internalize existing planning Tend to validate and internalize existing planning processes and ways of doing things despite of processes and ways of doing things despite of changeschanges

Computer based forecastComputer based forecast It enables HR manager to utilize It enables HR manager to utilize maximum number maximum number

of variablesof variables while making staff forecasts while making staff forecasts Determination of future staffing needs by projecting Determination of future staffing needs by projecting

sales, volume of production, and personnel required sales, volume of production, and personnel required to maintain the volume of output, using software to maintain the volume of output, using software packagespackages

Can also study cause and effect relationships!Can also study cause and effect relationships!

Managerial judgments!!

Forecasting the supply of inside Forecasting the supply of inside candidatescandidates

Determining the current skill levelDetermining the current skill level of the employees, identifying the of the employees, identifying the potential employeepotential employee and which employee would be most suitable for and which employee would be most suitable for the the projected openingprojected opening! At times it is ! At times it is OBVIOUS!!!OBVIOUS!!!

The other times, managers use The other times, managers use QUALIFICATION INVENTORIESQUALIFICATION INVENTORIES Manual or computerized records listing employees’ education, Manual or computerized records listing employees’ education,

career and development interests, languages, special skills, career and development interests, languages, special skills, training courses and so on to be used in selecting inside candidate training courses and so on to be used in selecting inside candidate for promotion.for promotion.

• Help to determine which employee is available for promotion or Help to determine which employee is available for promotion or transfertransfer

Manual SystemsManual Systems Manual Systems -Manual Systems - A A Personnel InventoryPersonnel Inventory or or Development Development

RecordRecord are some manual devices are some manual devices PersonnelPersonnel Replacement Charts Replacement Charts – Company records showing – Company records showing

present performance and present performance and promotabilitypromotability of inside candidates for of inside candidates for the most important positionsthe most important positions

PositionPosition Replacement Card Replacement Card – a card prepared for each – a card prepared for each position in a company to show possible replacement position in a company to show possible replacement candidates & their qualifications.candidates & their qualifications. Show their present performance, promotion potential and trainingShow their present performance, promotion potential and training

Computerized Information SystemsComputerized Information Systems

Use ofUse of Computerized data Computerized data for promotions/transfers etcfor promotions/transfers etc Enter & Update data on every performance appraisalEnter & Update data on every performance appraisal Various packages softwareVarious packages software systems are available, where systems are available, where

at the time of need, enter the position’s specifications at the time of need, enter the position’s specifications (education, skills) , the system produce a list of potential (education, skills) , the system produce a list of potential candidatescandidates

CodingCoding is done on basis of work experience, product is done on basis of work experience, product knowledge, industry experience, formal educationknowledge, industry experience, formal education

Keeping the Data SafeKeeping the Data Safe Danger of data theft…very sensitive issueDanger of data theft…very sensitive issue HR Manager must guard the privacy of the HR Manager must guard the privacy of the

employees:employees: Perform background checks to whoever access the dataPerform background checks to whoever access the data Trusted worker only!! No outsidersTrusted worker only!! No outsiders Perform random checks on existing employeesPerform random checks on existing employees Limited accessLimited access

Forecasting the supply of outside Forecasting the supply of outside candidatescandidates

Employer may want to forecast the Employer may want to forecast the availability of availability of outside candidatesoutside candidates

Low unemployment ratesLow unemployment rates means less availability means less availability BUT BUT High unemployment rateHigh unemployment rate does not ensure does not ensure availability too! (skilled workers) availability too! (skilled workers)

Economic projectionsEconomic projections also indicate the way also indicate the way employment would goemployment would go

Effective RecruitingEffective Recruiting Employee Recruiting – Employee Recruiting – finding and/or attracting applicantsfinding and/or attracting applicants for the for the

employer’s open positions.employer’s open positions. Effective RecruitingEffective Recruiting is increasingly important is increasingly important

Irrespective of high or low unemployment rateIrrespective of high or low unemployment rate Recruiting effectiveness (complexities)Recruiting effectiveness (complexities)

Recruitment efforts must be in line with Recruitment efforts must be in line with company’s strategic plans (how, when, what)company’s strategic plans (how, when, what) Select the methodSelect the method which is best suited for the job opening which is best suited for the job opening Success of recruitment also depend upon Success of recruitment also depend upon ‘non-recruiting issues!!’‘non-recruiting issues!!’ Simultaneously pre-screeningSimultaneously pre-screening candidates candidates Firm’s own imageFirm’s own image affect recruiting results affect recruiting results

Recruitment FunctionRecruitment Function

Centralized recruitingCentralized recruiting Pros – in-line with overall Pros – in-line with overall

strategystrategy Reduces duplicationReduces duplication Spread recruitment cost Spread recruitment cost

over more over more departments/locationsdepartments/locations

Builds recruitment Builds recruitment expertsexperts

Produces synergiesProduces synergies

De-centralized De-centralized recruitingrecruiting Pros - - more viable for Pros - - more viable for

blue-collar jobs, where blue-collar jobs, where local population is local population is preferredpreferred

Retail & service sectors Retail & service sectors also prefer decentralized also prefer decentralized recruitingrecruiting

Measuring Recruiting EffectivenessMeasuring Recruiting Effectiveness The question is The question is what to measurewhat to measure and and how to measure:how to measure: In In what to measure casewhat to measure case, how many applicants did we , how many applicants did we

generate through generate through each of our recruitment sourceeach of our recruitment source? ? quantity but also quality……quantity but also quality……

In In howhow to measure each recruiting source effectiveness, to measure each recruiting source effectiveness, use of pre-screening selection devices (a work sample use of pre-screening selection devices (a work sample test) or testing the job knowledge of the candidate can test) or testing the job knowledge of the candidate can be the indicators of a better pool of talents. Applicants be the indicators of a better pool of talents. Applicants may be few but of high quality. may be few but of high quality.

GE Medical – GE Medical – ‘Multigenerational staffing plan‘Multigenerational staffing plan’ to go with each of ’ to go with each of its products’ ‘its products’ ‘multiyear product planmultiyear product plan’’

Recruiters meeting, employees’ referrals doubled up, Recruiters meeting, employees’ referrals doubled up,

The Recruiting Yield PyramidThe Recruiting Yield Pyramid

New hires50

100

150

200

1200

Offers made 2:1

Candidates interviewed 3:2

Candidates invited 4:3

Leads generated

6:1

To calculate number of applicants they must

generate to hire required number of new employees

Internal Sources of CandidatesInternal Sources of Candidates Current employees or promotions from withinCurrent employees or promotions from within

are at times best sources of candidates:are at times best sources of candidates: You know You know ins and outsins and outs of the current employee of the current employee More More committedcommitted person person Increased moraleIncreased morale of workforce of workforce Less orientation & trainingLess orientation & training required (perhaps) required (perhaps) DrawbacksDrawbacks of hiring from within: employees applying of hiring from within: employees applying

and not getting the job may get ‘disconnected’, feeling and not getting the job may get ‘disconnected’, feeling of rejection, biases etcof rejection, biases etc

Internal Sources of CandidatesInternal Sources of Candidates Finding them:Finding them:

Job posting – publicizing the open job to employeesJob posting – publicizing the open job to employees Personnel recordsPersonnel records Skills banksSkills banks

RehiringRehiring - those who have - those who have left left the companythe company Less training / orientation requiredLess training / orientation required Check what they wereCheck what they were doing when they left the doing when they left the

companycompany Wrong messageWrong message to existing employees! to existing employees!

Internal Sources of CandidatesInternal Sources of Candidates Succession PlanningSuccession Planning – – the ongoing the ongoing

process of systematically identifying, process of systematically identifying, assessing and developing organizational assessing and developing organizational leadership to enhance performance.leadership to enhance performance. It It involves involves three stepthree step process process Identify Identify firm’s future key positionsfirm’s future key positions needs needs Creating & assessingCreating & assessing candidates (identify candidates (identify

potentials internally and externally) & potentials internally and externally) & providing them providing them developmentaldevelopmental experiences experiences

Selecting Selecting those who will fill-in those who will fill-in

Outside Sources of CandidatesOutside Sources of Candidates Recruiting via internetRecruiting via internet – on line jobs, job sites, ads on – on line jobs, job sites, ads on

their own sites, keyword searches on resume database their own sites, keyword searches on resume database sites (hotjobs.com). Social networking sites – linkIn.comsites (hotjobs.com). Social networking sites – linkIn.com

AdvantagesAdvantages• Cost effectiveCost effective• Generates more responses (9 times more applicants) & quicker tooGenerates more responses (9 times more applicants) & quicker too• Longer lifespanLonger lifespan

DisadvantagesDisadvantages• Selected people use internetSelected people use internet• Unsolicited and irrelevant job applicantsUnsolicited and irrelevant job applicants• May end up deluged with resumesMay end up deluged with resumes

Using Applicant Tracking SystemsUsing Applicant Tracking Systems – on line systems that – on line systems that help employers attract, gather, screen, compile, and help employers attract, gather, screen, compile, and manage applicants for e.g resruitsoft.commanage applicants for e.g resruitsoft.com

Outside Sources of CandidatesOutside Sources of Candidates Recruiting via internetRecruiting via internet – Designing Internet Ads – Designing Internet Ads

and Systemsand Systems Should beShould be

• User friendly, easy to use format & formsUser friendly, easy to use format & forms• Less confusing & time consumingLess confusing & time consuming• Attractive enough with compelling words/phrasesAttractive enough with compelling words/phrases• Attention catching Attention catching • Ensure privacyEnsure privacy• Effective feedback systemEffective feedback system

Should avoid Should avoid • Use of abbreviationsUse of abbreviations• Poor job descriptionsPoor job descriptions• Too much of graphics/links/complicated formsToo much of graphics/links/complicated forms

AdvertisingAdvertising Two main areas:Two main areas:

The The advertising mediumadvertising medium• Target your ads to reach your prospective employeesTarget your ads to reach your prospective employees• Innovative ways for specialized jobsInnovative ways for specialized jobs

The The ad’s construction ad’s construction • AIDA - Attention, interest, desire, actionAIDA - Attention, interest, desire, action

AttentionAttention – use key words/phrases – use key words/phrases InterestInterest – nature & aspects of the job – nature & aspects of the job DesireDesire – highlight needs & desires like traveling, challenging etc – highlight needs & desires like traveling, challenging etc ActionAction – ‘call today’ ‘post your resume online too” or ‘walk in” – ‘call today’ ‘post your resume online too” or ‘walk in”

These ads can be used to develop employer’s These ads can be used to develop employer’s image as wellimage as well

Recruiting OptionsRecruiting Options1.1. Temp AgenciesTemp Agencies2.2. HeadhuntersHeadhunters3.3. College RecruitingCollege Recruiting4.4. Outsourcing/offshoringOutsourcing/offshoring5.5. Referrals and Walk-InsReferrals and Walk-Ins

Temp AgenciesTemp Agencies Hiring contingent or temporary workers through Hiring contingent or temporary workers through

temporary help employment agenciestemporary help employment agencies Also known as part-time or just-in-time workersAlso known as part-time or just-in-time workers Not limited to blue-collar or clerical jobs but also Not limited to blue-collar or clerical jobs but also

temporary CEOstemporary CEOs Direct hire or through agencyDirect hire or through agency Benefits & CostsBenefits & Costs

Want for higher productivity and Less expensive to Want for higher productivity and Less expensive to recruit & trainrecruit & train

Agency fee adds to the cost, less commitmentAgency fee adds to the cost, less commitment

Temp AgenciesTemp Agencies Areas of concernAreas of concern

Employers’ treatmentEmployers’ treatment Job insecurityJob insecurity Lack of insurance & Lack of insurance &

benefitsbenefits Misled about job Misled about job

assignmentsassignments UnderemployedUnderemployed Feeling of alienation Feeling of alienation

HRM responsibilitiesHRM responsibilities InvoicingInvoicing Time sheetsTime sheets Temp-to-perm policyTemp-to-perm policy Recruitment of and Recruitment of and

benefits for temp benefits for temp workersworkers

Equal Employment Equal Employment Opportunity statementOpportunity statement

Job description Job description informationinformation

Outsourcing/OffshoringOutsourcing/Offshoring Outsourcing / offshoring jobs is gaining Outsourcing / offshoring jobs is gaining

popularitypopularity Main issues:Main issues:

Potential for Potential for political instabilitypolitical instability CulturalCultural misunderstandings misunderstandings Security & privacySecurity & privacy concerns concerns Dealing with Dealing with foreign contracts, liability, legal systemsforeign contracts, liability, legal systems

etcetc Special training needsSpecial training needs (language/accent) (language/accent) Expected cost saving may not materializeExpected cost saving may not materialize AnxietyAnxiety of own work force of own work force

HeadhuntersHeadhunters Executive recruiter or HeadhuntersExecutive recruiter or Headhunters

Key executive & technical positionsKey executive & technical positions Two types of executive recruiters:Two types of executive recruiters:

• ContingentContingent• Retained Retained

TechnologyTechnology and and specializationspecialization are changing the trend are changing the trend of executive recruiters search businessof executive recruiters search business

Pros and ConsPros and Cons• Irreplaceable, save time & cost, ensure confidentiality, highly Irreplaceable, save time & cost, ensure confidentiality, highly

potential employees are ‘hunted’, fee can be insignificantpotential employees are ‘hunted’, fee can be insignificant• Need to be told explicitly what kind of person is required and Need to be told explicitly what kind of person is required and

why, misleading information can result in disasterswhy, misleading information can result in disasters

HeadhuntersHeadhunters

Guidelines for HRMGuidelines for HRM Make sure the recruiter is capable of a Make sure the recruiter is capable of a

thorough searchthorough search Meet the individual who will actually handle Meet the individual who will actually handle

your assignmentyour assignment Know their charges (hidden costs)Know their charges (hidden costs) Never solely rely on them!Never solely rely on them!

College RecruitingCollege Recruiting Sending a representativeSending a representative to screen applicants and to screen applicants and

create a poolcreate a pool Management traineesManagement trainees It is It is expensive and time consumingexpensive and time consuming Ineffective or untrained recruiters!Ineffective or untrained recruiters! On-campus recruiting goalsOn-campus recruiting goals

First - to determine if the candidate is worthy of further First - to determine if the candidate is worthy of further considerationsconsiderations

Second – attract good candidatesSecond – attract good candidates Other things to be taken care of are the selection of Other things to be taken care of are the selection of

college/university and the College career centerscollege/university and the College career centers On-site visits On-site visits InternshipsInternships

Referrals and Walk-InsReferrals and Walk-Ins An important recruiting option is ‘An important recruiting option is ‘Employee Employee

Referral’Referral’ Firm posts job openings on intranet, bulletin boards Firm posts job openings on intranet, bulletin boards

etcetc At times rewards are offered for referrals which turn At times rewards are offered for referrals which turn

into successful hiring.into successful hiring. Pros and ConsPros and Cons

• High quality candidates are generated, accurate information, High quality candidates are generated, accurate information, the new employee will come with a more realistic picture, the new employee will come with a more realistic picture, cost effective approach, cost effective approach,

• If firm rejects the referrals then If firm rejects the referrals then moralemorale of the employee could of the employee could go down, can be go down, can be discriminatorydiscriminatory

Walk-InsWalk-Ins

Ad construction – AIDAAd construction – AIDAmarks 5 and time:30 minsmarks 5 and time:30 mins

Task 1:Task 1: AnalyzeAnalyze the given the given

advertisement to the advertisement to the group in the light of group in the light of the the guidelinesguidelines discussed in the classdiscussed in the class

List down the List down the strengthsstrengths and and areas areas of improvementsof improvements that you have found in that you have found in the given ad.the given ad.

Task 2:Task 2: A A RUN-of-the-mill RUN-of-the-mill ad ad

would be given to would be given to the groupthe group

Restructure / Restructure / redesign the ad in redesign the ad in the light of the the light of the discussion.discussion.

Developing and Using Application Developing and Using Application FormsForms

PurposePurpose Judgments on basis of education & Judgments on basis of education &

experienceexperience Draw conclusions about applicant’s progress Draw conclusions about applicant’s progress

and growthand growth Draw tentative conclusions about applicant’s Draw tentative conclusions about applicant’s

stability based on previous work recordsstability based on previous work records Use the data in the application and predict the Use the data in the application and predict the

success possibility of the applicant on the jobsuccess possibility of the applicant on the job