What methods are used by both small and large firms to forecast the supply of inside candidates?

Human Resource Management - Lesson 3

Related Papers

Successful organizations of the future have to attract and retain the best and brightest employees to remain competitive. The Internet is widely used in different ways by large and small organizations to attract/recruit employees. This paper identifies Internet recruitment methods from relevant literature, and describes how their benefits can influence the recruitment performance. Two strategic performance measurement approaches are reviewed with their relevance to the recruitment process.

OBE 153 - Chapter 5: Personnel Planning and Recruiting

The Recruitment and Selection Process:

Decide what positions you�ll have to fill through personnel planning and forecasting.

Build a pool of candidates for these jobs by recruiting internal or external candidates.

Have candidates complete application forms and perhaps undergo an initial screening interview.

Use selection techniques like tests, background investigations, and physical exams to identify viable candidates.

Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.

Steps in Recruitment and Selection Process

Planning and Forecasting

�Employment or personnel planning

�The process of deciding what positions the firm will have to fill, and how to fill them.

�Succession planning

�The process of deciding how to fill the company�s most important executive jobs.

�What to forecast?

�Overall personnel needs

�The supply of inside candidates

�The supply of outside candidates

Linking Employer�s Strategy to Plans

Forecasting Personnel Needs

�Trend analysis

�The study of a firm�s past employment needs over a period of years to predict future needs.

�Ratio analysis

�A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed.

�Assumes that the relationship between the causal factor and staffing needs is constant

�Scatter plot

�A graphical method used to help identify the relationship between two variables.

Determining the Relationship Between
Hospital Size and Number of Nurses

Drawbacks to Scatter Plots

They focus on projections and historical relationships, and assume that the firm�s existing structure and activities will continue into the future.

They generally do not consider the impact the company�s strategic initiatives may have on future staffing levels.

They tend to support compensation plans that reward managers for managing ever-larger staffs, and will not uncover managers who expand their staffs irrespective of strategic needs.

They tend to �bake in� the nonproductive idea that increases in staffs are inevitable.

They tend to validate and institutionalize existing planning processes and ways of doing things, even in the face of rapid change.

Using Computers to Forecast Personnel Requirements

�Computerized forecasts

�The use software packages to determine of future staff needs by projecting sales, volume of production, and personnel required to maintain a volume of output.

�Generates figures on average staff levels required to meet product demands, as well as forecasts for direct labor, indirect staff, and exempt staff.

�Typical metrics: direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections�minimum, maximum, and probable.

Forecasting the Supply of Inside Candidates

�Qualifications inventories

�Manual or computerized records listing employees� education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion.

Manual Systems and Replacement Charts

�Personnel replacement charts

�Company records showing present performance and promotability of inside candidates for the most important positions.

�Position replacement card

�A card prepared for each position in a company to show possible replacement candidates and their qualifications.

Management Replacement Chart Showing Development Needs of Future Divisional Vice President

Computerized Information Systems

�Human Resource Information System (HRIS)

�Computerized inventory of information that can be accessed to determine employees� background, experience, and skills that may include:

�Work experience codes

�Product or service knowledge

�Industry experience�

�Formal education

The Matter of Privacy of HR Information

�The need to ensure the security of HR information

�There is a lot of HR information to keep secure.

�Control of HR information can be established through the use of access matrices that limit users.

�Legal considerations: The Federal Privacy Act of 1974 gives employees rights regarding who has access to information about their work history and job performance.

Forecasting the Supply of Outside Candidates

�Factors impacting the supply of outside candidates

�General economic conditions

�Expected unemployment rate

�Sources of information

�Periodic forecasts in business publications

�Online economic projections

�U.S. Congressional Budget Office (CBO)

�Bureau of Labor Statistics

�U.S. Department of Labor: O*Net

�Other federal agencies

Effective Recruiting

�External factors affecting recruiting:

�Looming undersupply of workers

�Lessening of the trend in outsourcing of jobs

�Increasingly fewer �qualified� candidates

�Internal factors affecting recruiting:

�The consistency of the firm�s recruitment efforts with its strategic goals

�The available resources, types of jobs to be recruited and choice of recruiting methods

�Nonrecruitment HR issues and policies

�Line and staff coordination and cooperation

�Advantages of centralizing recruitment

�Strengthens employment brand

�Ease in applying strategic principles

�Reduces duplication of HR activiites

�Reduces the cost of new HR technologies

�Builds teams of HR experts

�Provides for better measurement of HR performance

�Allows for the sharing of applicant pools

Measuring Recruiting Effectiveness

�What to measure and how to measure

�How many qualified applicants were attracted from each recruitment source?

�Assessing both the quantity and the quality of the applicants produced by a source.

�High performance recruiting

�Applying best-practices management techniques to recruiting.

�Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals.

Internal Sources of Candidates: Hiring from Within

�Advantages

�Foreknowledge of candidates� strengths and weaknesses

�More accurate view of candidate�s skills

�Candidates have a stronger commitment to the company

�Increases employee morale

�Less training and orientation required

�Disadvantages

�Failed applicants become discontented

�Time wasted interviewing inside candidates who will not be considered

�Inbreeding of the status quo

Finding Internal Candidates

�Job posting

�Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes.

�Rehiring former employees

�Advantages:

�They are known quantities.

�They know the firm and its culture.

�Disadvantages:

�They may have less-than positive attitudes.

�Rehiring may sent the wrong message to current employees about how to get ahead.

�Succession planning

�The process of ensuring a suitable supply of successors for current and future senior or key jobs.

�Succession planning steps:

�Identifying and analyzing key jobs.

�Creating and assessing candidates.

�Selecting those who will fill the key positions.

Outside Sources of Candidates

�Advertising

�The Media: selection of the best medium depends on the positions for which the firm is recruiting.

�Newspapers (local and specific labor markets)

�Trade and professional journals

�Internet job sites

�Marketing programs

�Constructing an effective ad

�Wording related to job interest factors should evoke the applicant�s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.

�Types of employment agencies:

�Public agencies operated by federal, state, or local governments

�Agencies associated with nonprofit organizations

�Privately owned agencies

�Reasons for using a private employment agency:

�When a firm doesn�t have an HR department and is not geared to doing recruiting and screening.

�The firm has found it difficult in the past to generate a pool of qualified applicants.

�The firm must fill a particular opening quickly.

�There is a perceived need to attract a greater number of minority or female applicants.

�The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies.

�The firm wants to cut down on the time it�s devoting to recruiting.

�Avoiding problems with employment agencies:

�Give the agency an accurate and complete job description.

�Make sure tests, application blanks, and interviews are part of the agency�s selection process.

�Periodically review data on candidates accepted or rejected by your firm, and by the agency. Check on the effectiveness and fairness of the agency�s screening process.

�Screen the agency. Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled.

�Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled.

Temp Agencies and Alternative Staffing

�Benefits of Temps

�Paid only when working

�More productive

�No recruitment, screening, and payroll administration costs

�Costs of Temps

�Fees paid to temp agencies

�Lack of commitment to firm

Concerns of Temp Employees

�Treatment by employers in a dehumanizing, impersonal, and ultimately discouraging way.

�Insecurity about their employment and pessimistic about the future.

�Worry about their lack of insurance and pension benefits.

�Being misled about their job assignments and in particular about whether temporary assignments were likely to become full-time positions.

�Being �underemployed� (particularly those trying to return to the full-time labor market).

�In general they were angry toward the corporate world and its values; participants repeatedly expressed feelings of alienation and disenchantment.

Working with a Temp Agency

�Invoicing. Get a sample copy of the agency�s invoice. Make sure it fits your company�s needs.

�Time sheets. With temps, the time sheet is not just a verification of hours worked. Once the worker�s supervisor signs it, it�s usually an agreement to pay the agency�s fees.

�Temp-to-perm policy. What is the policy if the client wants to hire one of the agency�s temps as a permanent employee?

�Recruitment of and benefits for temp employees. Find out how the agency plans to recruit what sorts of benefits it pays.

�Dress code. Specify the attire at each of your offices or plants.

�Equal employment opportunity statement. Get a statement from the agency that it is not discriminating when filling temp orders.

�Job description information. Have a procedure whereby you can ensure the agency understands the job to be filled and the sort of person you want to fill it.

Offshoring/Outsourcing White-Collar and Other Jobs

�Specific issues in outsourcing jobs abroad

�Political and military instability

�Likelihood of cultural misunderstandings

�Customers� security and privacy concerns

�Foreign contracts, liability, and legal concerns

�Special training of foreign employees

�Costs associated with companies supplying foreign workers

�Executive recruiters (headhunters)

�Special employment agencies retained by employers to seek out top-management talent for their clients.

�Contingent-based recruiters collect a fee for their services when a successful hire is completed.

�Retained executive searchers are paid regardless of the outcome of the recruitment process.

�Internet technology and specialization trends are changing how candidates are attracted and how searches are conducted.

Guidelines for Choosing a Recruiter

�Make sure the firm is capable of conducting a thorough search.

�Meet the individual who will actually handle your assignment.

�Ask how much the search firm charges.

�On demand recruiting services (ODRS)

�A service that provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms.

�College recruiting

�Recruiting goals

�To determine if the candidate is worthy of further consideration

�To attract good candidates

�On-site visits

�Invitation letters

�Assigned hosts

�Information package

�Planned interviews

�Timely employment offer

�Follow-up

�Internships

�Employee referrals

�Applicants who are referred to the organization by current employees

�Referring employees become stakeholders.

�Referral is a cost-effective recruitment program.

�Referral can speed up diversifying the workforce

�Walk-ins

�Direct applicants who seek employment with or without encouragement from other sources.

�Courteous treatment of any applicant is a good business practice.

�Recruiting via the Internet

�More firms and applicants are utilizing the Internet in the job search process.

�Advantages of Internet recruiting

�Cost-effective way to publicize job openings

�More applicants attracted over a longer period

�Immediate applicant responses

�Online prescreening of applicants

�Links to other job search sites

�Automation of applicant tracking and evaluation

Issues in Recruiting a More Diverse Workforce

�Single parents

�Providing work schedule flexibility.

�Older workers

�Revising polices that make it difficult or unattractive for older workers to remain employed.

�Recruiting minorities and women

�Understanding recruitment barriers.

�Formulating recruitment plans.

�Instituting specific day-to-day programs.

�Welfare-to-work

�Developing pre-training programs to overcome difficulties in hiring and assimilating persons previously on welfare.

�The disabled

�Developing resources and policies to recruit and integrate disable persons into the workforce.

Developing and Using Application Forms

�Application form

�The form that provides information on education, prior work record, and skills.

�Uses of information from applications

�Judgments about the applicant�s educational and experience qualifications

�Conclusions about the applicant�s previous progress and growth

�Indications of the applicant�s employment stability

�Predictions about which candidate is likely to succeed on the job

What mathematical process do employers use to forecast availability of internal job candidates?

What techniques are used by Analysing the internal supply?

What is forecasting the supply of outside candidates?