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Recruitment
McGraw-Hill/IrwinHuman Resource Management, 10/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Introduction
Before an organization can fill a job vacancy, it must find people who: Are qualified for the position Want the job
Recruitment refers to:Organizational activities that influence the number
and types of applicants who apply for a job, and Whether the applicants accept jobs that are offered
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Introduction
Recruitment is often the first contact between the organization and a prospective employeeCreate a positive first impression
During the coming years, the importance of recruitment will increase A tight labor market will plague organizations of
all sizesMany companies have developed retention strategies
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Introduction
Whether people respond to the recruiting effort depends on the attitudes they have toward:The tasks The organization
How difficult the recruiting job is depends on such things as: Government and union restrictions The labor marketThe employer’s requirementsCandidates’ preferences
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Government and Union Restrictions
To determine if an organization has violated the law, government agencies review: Recruitment sources Recruiting advertising Estimates of the firm’s employment needs for the
coming year The number of applicants processed by demographic
and job category The evidence was used to verify the legal right to
work
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Government and Union Restrictions
Sound recruiting practices:Establish general guidelines for recruiters Make sure applicants complete, sign, and date an
employment application Use outcome-oriented job descriptions Use an offer letter than outlines the commitments
the organization is prepared to keep State that employment is “at-will” List salary, frequency of pay increases, and benefits State conditions to which employment may be
subject
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Government and Union Restrictions
The Immigration Reform and Control Acting (IRCA) of 1986 requires employers to: Screen applicants’ eligibility for employment Maintain records demonstrating employment
authorizationThe government plans to step up enforcement of
the IRCA
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Government and Union Restrictions
The features of the IRCA fall into four categories: Employer’s duties:
Avoid recruiting, hiring, or continuing to employ unauthorized aliens
Verify the identity/work authorization of new employees
Avoid discrimination on the basis of citizenship or national origin
Amnesty rights: Certain illegal aliens are eligible for temporary or permanent resident status
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Labor Market Conditions
If there is a surplus of labor at recruiting time, even informal attempts will attract sufficient applicantsWhen full employment is nearly reached, skillful and
prolonged recruiting may be necessary The state of the economy also affects how many
applicants are available
The current employment picture can be researched through: The federal Department of Labor State divisions of employment security and labor Boards and journals
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Composition of Labor Force & Location
As legal requirements increase, it becomes more important to analyze workforce composition Determine whether the firm’s employment practices
are discriminatory The number of minorities in the workforce also
depends on the number of minorities in the labor market
An aggressive diversity management program is essentialDiversity leads to enhanced competitiveness, higher
productivity, and increased customer satisfaction
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Interaction of Recruits & the Organization
There is a complex interaction between job applicants and the organization trying to hire them The techniques used and sources of recruits vary
with the job An applicant’s abilities and past work experience affect how
they go about seeking a job
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The Organization’s View of Recruiting
Things that affect recruiting from the viewpoint of the organization: The recruiting requirements set Organizational policies and procedures The organization’s image
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Recruiting Requirements
The process begins with a detailed job description and job specification Without these, it is impossible for recruiters to
determine how well any applicant fits the job The recruiter must know which requirements are
essential and which are merely desirable This helps avoid unrealistic expectations
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Organizational Policies and Practices
HRM policies and practices can affect recruiting One of the most significant is hiring from within Many organizations recruit from outside only at the
initial hiring level Most employees favor this approach Some employers feel it helps protect trade secrets However, an organization may become so stable
that it is set in its ways Other factors include favoring the disabled, veterans,
or ex-convicts, and nepotism
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Organizational Image
All else being equal, it is easier for an organization with a positive image to attract and retain employees Recruitment is also easier for organizations with a
strong community presence or positive name recognition
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Organizational Image
The job specifications preferred by an organization may have to be adjusted to meet the realities of: The labor market Government or union restrictions Its policies and procedures Its image
If too few high-quality people apply for a job: The job may have to be adjusted to fit the best
applicant, or Recruiting efforts will have to be increased
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Potential Employee’s View of Recruiting
The applicant’s abilities, attitudes, and preferences are based on:Past work experiences The influence of parents, teachers, and others
These factors affect recruits in two ways: How they set their job preferences How they go about seeking a job
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Preferences of Recruits
Recruits often have a set of job preferences: Education and skill levels Geographic location Salary levels Advancement opportunities
Such a recruit may not find the “ideal” job The number of college-level job openings between
now and 2008 will nearly equal the number of college-educated entrants to the labor force
However, approximately 6 million college graduates will still be unemployed or under-employed
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Preferences of Recruits
Other barriers to finding the ideal job:Economic conditionsGovernment and union restrictionsOrganizational policies and practices
From the individual’s point of view, choosing an organization involves: Choosing an occupation Choosing an organization to work for within the
broader occupation
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Preferences of Recruits
Occupational choice is most heavily influenced by parents, followed by:TeachersCareer counselorsFriendsRelatives
Organizational choice is influenced by:Corporate image Corporate size
Satisfaction with the communication during recruitment is critical
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Job Search: The Recruit
People who successfully find the “right job” tend to follow similar job search processes: Self-assessment Information gatheringNetworkingTargeting specific jobsSuccessful self-presentation
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Job Search: The Recruit
The purpose of self-assessments is to recognize your: Career goals Strengths and weaknesses Interests and valuesPreferred lifestyles
Information gathering and networking are ways to generate lists of potential employers and jobs Information sources include newspapers, trade
publications, college recruitment offices, organizational “insiders,” and the Internet
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Job Search: The Recruit
When the job seeker has decided where to send a resume, self-presentation becomes critical Recruiters want resumes and cover letters that are
tailored to the position and are truthfulThe cover letter and resume should include:
The position you seek Your specific job objectives Your career objectives The reason you seek employment Indication that you know something about the
organization
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Job Search: The Recruit
Not all job seekers provide a truthful resume: Up to 95 percent of college students are willing to be
less than truthful when searching for a job In the long run, little can be gained; falsification of an
application is typically grounds for dismissal
Successful job seekers prepare carefully for interviews Learn as much about the company as possible Use “impression management” tactics
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Methods of Recruiting
Most organizations must use both internal and external sources to generate sufficient applicantsWhen there is an inadequate supply
within the organization, it must seek external candidates
The choice of a recruiting method can make all the difference in the success of the recruiting effort
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Internal Recruiting
Job PostingSkills inventories can be used to identify internal
applicants for job vacanciesIt is hard to identify everyone who might be
interested in the opening, so firms use job posting and biddingToday, postings are computerized and easily
accessible to employees via the company’s intranet Software allows employees to match an available
job with their skills and experience It may also highlight where gaps exist
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Internal Recruiting
Inside Moonlighting and Employees’ FriendsInside moonlighting may be used when there is:
A short-term shortageNo great amount of additional work
Workers can be enticed to take a “second” job with bonuses
Moonlighting is so common at some organizations that HR departments issue moonlighting policies
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Internal Recruiting
Inside Moonlighting and Employees’ FriendsBefore going outside to recruit, many organizations
ask employees to encourage friends and relatives to apply
Some offer “finders fees” for successful referrals Employee referrals should be used cautiously,
especially if the workforce is already racially or culturally imbalanced
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External Recruiting
Walk-ins are an important source of applicants As labor shortages increase, however, organizations
must become more proactive in their recruiting efforts
External recruiting can be done through: Media advertisingE-recruitingEmployment agenciesExecutive search firmsSpecial-events recruitingInternships
Some job seekers reverse the process: they advertise for a situation wanted
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Media Advertising
Media include:NewspapersTrade/professional publicationsBillboardsSubway and bus cardsRadioTelephoneTelevision
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Media Advertising
When developing a recruitment advertisement, begin with the corporate image Effective recruiting is consistent with overall
corporate image Recorded want ads are an innovative way to attract
applicants
Help-wanted ads must be carefully prepared Media must be chosen, coded for study, and analyzed
for impact afterward Including diversity in ads helps attract applicants
from diverse populations
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E-Recruiting
The Internet has revolutionized organizational recruitment practices30,000 websites are devoted to job posting activities However, 71 percent of all job listings are on a
handful of the “big boards”Monster.com, CareerBuilder.com, HotJobs.com,
Jobsearch.org These websites saw huge increases in resumes posted
and visitors in the first month of 2005Over 96 percent of all U.S. companies now use the
Internet for recruitment activities
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E-Recruiting
The Internet is a popular recruitment tool because: It is relatively inexpensive It provides immediate access to thousands of
prospective applicants It allows searches over broad geographic and
company postings Some online services, like CareerPath.com, catalog
traditional newspaper recruiting ads Specialized sites focus on particular fields or areas
Having a human resources Web page is an effective addition to an overall recruitment strategy
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Employment Agencies/Executive Search
Executive search firms: Focus on higher-level managerial
positions with salaries of $50,000+ Are on retainer Charge higher fees
Employment agencies: Deal primarily with middle-level
management and below Are paid only when they have
provided a new hire
Organizations pay the higher fees because executive search firms guarantee confidentiality
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Special Events Recruiting
Organizations attract applicants with special events:
Open houses Scheduled visits to headquarters Informative literature Hospitality suites Speeches Job fairs
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Special Events Recruiting
Job fairs:Can reduce recruiting costs by up to 80 percent May be scheduled on holidays or weekends to reach
college students and the currently employed Are especially useful for smaller, less well known
employers Appeal to job seekers who wish to locate in a
particular area and those wanting to minimize travel and interview time
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Summer Internships
Organizations hire students as interns during the summer or part time during the school year The use of interns is dramatically increasing Nearly 1 in 3 students at four-year universities will
intern before graduating
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Summer Internships
Internship programs have a number of purposes: Allows organizations to get specific projects done Exposes organizations to talented, potential
employees who may become “recruiters” at school Provides trial-run employment Can attract the best people where there are labor
shortages Can improve diversity
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Summer Internships
From the student’s point of view: An internship means a job with pay It provides real work experience There is the potential of a future job It offers a chance to use one’s talents in a realistic
environment It may offer course credit hours
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Summer Internships
There are costs to internships: Interns take up a lot of supervisory time Their work is not always the best
Some students expect everything to be perfect When it is not, they become disillusioned Disillusioned students become reverse recruiters
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College Recruiting
College recruiting can be difficult, time consuming, and expensive The typical recruiting sequence:
Students register at the college placement office During the recruiting season, candidates are told of
scheduled visits At the placement service, they reserve interviews
and pick up brochures/literature about the firms The preliminary interviews are held Before leaving campus, the recruiter invites chosen
candidates to make a site visit
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College Recruiting
Students who are invited to the site: Are given more job information Meet potential supervisors and other executives Are entertained May be tested
If the visit goes well:The student is given an offer Bargaining may take place on salary and benefits The candidate accepts or rejects the offer
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The Effective College Recruiter
People who influence the applicant’s job choices: PeersFamilySpouseFriendsProfessorsRecruiters
The recruiter is the filter and the matcher, and is an extension of the organization
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The Effective College Recruiter
A good recruiter:Is outgoing, self-motivated, and a good salesperson Has well-developed interpersonal skills Is familiar with the company they represent
Characteristics students prefer in a recruiter: Work experience in their specialties Personal knowledge of the university Friendliness and knowledgePersonal interest in the applicantTruthfulnessEnthusiastic communicator
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The Effective College Recruiter
Major flaws that students find in recruiters: Lack of interest in the applicant Lack of enthusiasm Interviews that are stressful or too personal Insufficient time allocation
Recruiters can and do make a differenceHowever, applicant’s decisions are affected more by
the characteristics of the job and the organization
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Realistic Job Previews
When recruiters provide realistic expectations about the job, turnover of new employees is lower Most recruiters, however, give glowing descriptions
of the company
Recruitment is more effective when realistic job previews (RJPs) are used Pertinent information about the job is given, without
distortion or exaggeration Most jobs have unattractive features; the RJP
presents the full picture
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Realistic Job Previews
Insert Exhibit 7-3
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Realistic Job Previews
Studies indicate that: Newly hired employees who received RJPs have a
higher rate of job survival Employees hired after RJPs have higher satisfaction RJPs can set the job expectations at realistic levels RJPs do not reduce the flow of capable applicants
RJPs have beneficial effectsHowever, there is uncertainty as to why they have the
effects they do and in what contexts they are most effective
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Alternatives to Recruitment
OvertimeOrganizations avoid the cost of recruiting and having
additional employees Employees earn additional income Potential problems include fatigue, higher accident
rates, and increased absenteeism Continuous overtime often results in higher labor
costs and reduced productivity
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Alternatives to Recruitment
OutsourcingSometimes called “staff sourcing” Involves paying a fee to a leasing company or
professional employer organization (PEO) that handles payroll, benefits, and routine HRM functions
Especially attractive to small and midsize firms that can’t afford a full-service HR department
Can save 15 to 30 percent of benefit costs Exercise care when choosing a leasing company;
many are financially unstable
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Alternatives to Recruitment
Temporary EmploymentOne of the most noticeable effects of the downsizing
epidemic and labor shortages of the past two decades “Just-in-time” employees staff all types of jobs
(professional, technical, and executive positions) Nearly 7,000 temporary employment agencies in the
U.S. have been in business for more than one year
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Alternatives to Recruitment
Major advantages of using temporary workers:Relatively low labor costs Easily accessible source of experience labor Flexibility
The cost advantage stems from the fact that temporary workers do not receive:Fringe benefitsTrainingA compensation and career plan
Temp workers do not know the culture or work flow of the firm
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Cost-Benefit Analysis of Recruiting
Many aspects of recruitment can be evaluated Recruiters can be assigned goals by type of employee Sources of recruits can be evaluated by dividing the
number of job acceptances by the number of campus interviews
Methods of recruiting can be evaluated along various dimensions, such as the cost of the method divided by the number of job offer acceptances
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Cost-Benefit Analysis of Recruiting
The quality of a new hire can be evaluated using the formula QH = (PR + HP + HR)/N
QH = quality of recruits hiredPR = average job performance ratingsHP = percent of new hires promoted within one yearHR = percent of hires retained after one yearN = number of indicators used
Use caution when using the quality-of-hire measure to evaluate the recruitment strategy Good employees can be lost for reasons that have
nothing to do with recruiter effectiveness