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Part 2: Staffing the Organization
Chapter 5: Recruiting in Labour MarketsPrepared by Linda Eligh,
University of Western Ontario
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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.
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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.
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Strategic Recruiting Stages Fig. 5-1
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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.
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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.
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Labour Market Components Fig. 5-2
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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.
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Labour Markets and Recruiting
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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.
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Typical Division of HR Responsibilities: Recruiting Fig. 5-3
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Strategic Recruiting DecisionsEffective Recruiting
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Recruiting and Diversity Considerations Fig. 5-4
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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
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Advantages and Disadvantages of Internal and External Recruiting
Sources Fig. 5-6
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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.
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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.
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External RecruitingEmployment Agencies and HeadhuntersCollege
and University RecruitingHigh Schools and Technical
SchoolsLabourUnionsExternal Recruiting SourcesMedia Sources and Job
FairsCompetitiveSources
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Pros and Cons of Various Media Sources Fig. 5-7
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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
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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
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Internet RecruitingE-Recruiting Methods
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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
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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
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Recruiting Evaluation and MetricsEvaluating Recruiting
Efforts
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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.
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Sample Recruiting Evaluation Pyramid Fig. 5-11