Chapter 7: Recruiting and Retaining Qualified Employees Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

Chapter 7:Chapter 7:

Recruiting and Retaining Recruiting and Retaining Qualified EmployeesQualified Employees

Jackson and SchulerJackson and Schuler

© 2003 South-Western College Publishing. All rights reserved.

Eighth editionEighth edition

Managing Human Managing Human ResourcesResources

© 2003 South-Western College Publishing. All rights reserved. 7–2

Chapter OutlineChapter OutlineChapter OutlineChapter Outline

Recruiting and Retention within the HR SystemRecruiting and Retention within the HR System The Strategic Importance of Recruiting and The Strategic Importance of Recruiting and

Retaining Talented EmployeesRetaining Talented Employees Recruiting Methods and SourcesRecruiting Methods and Sources Recruiting from the Applicant’s Perspective Recruiting from the Applicant’s Perspective

Enhances RetentionEnhances Retention Equal Opportunity and NondiscriminationEqual Opportunity and Nondiscrimination Reducing Recruiting Needs Through RetentionReducing Recruiting Needs Through Retention


Recruiting and RetentionRecruiting and Retentionwithin the HR Systemwithin the HR System

Recruiting and RetentionRecruiting and Retentionwithin the HR Systemwithin the HR System

RecruitingRecruiting Searching for and obtaining qualified job Searching for and obtaining qualified job

candidatescandidates


Recruitment and RetentionRecruitment and RetentionRecruitment and RetentionRecruitment and Retention

RecruitmentRecruitment The first step in the hiring process; the The first step in the hiring process; the

process is completed after selectionprocess is completed after selection

RetentionRetention Everything an employer does to encourage Everything an employer does to encourage

qualified and productive employees to qualified and productive employees to continue working for the organizationcontinue working for the organization

Ideally, both management and applicant Ideally, both management and applicant needs are satisfied in the selection process.needs are satisfied in the selection process.


Integrated HR SystemIntegrated HR SystemIntegrated HR SystemIntegrated HR System

External Sources• Walk-Ins

• Referrals

• Other companies

• Agencies

• Schools

• Trade associations and unions

• Foreign nationals

External Sources• Walk-Ins

• Referrals

• Other companies

• Agencies

• Schools

• Trade associations and unions

• Foreign nationals

Internal Sources• Promotion

• Transfer

• Rehire

Internal Sources• Promotion

• Transfer

• Rehire

Legal Considera-tions

• EEO

• AAPs

Legal Considera-tions

• EEO

• AAPs

Recruitment and Retention Activities

• Realistic Job Preview

• Career development

• Flexible arrangements

• Fairness

Recruitment and Retention Activities

• Realistic Job Preview

• Career development

• Flexible arrangements

• Fairness

Objectives for Recruitment and Retention• How Many?

• Where?

• Who?

• When?

Objectives for Recruitment and Retention• How Many?

• Where?

• Who?

• When?

Proof of Qualified Applicants to Select From and Offer Jobs

Proof of Qualified Applicants to Select From and Offer Jobs

Global and Organizational Environment

• Economy

• Competition

• Strategy

• Vision, values

• Reputation

Global and Organizational Environment

• Economy

• Competition

• Strategy

• Vision, values

• Reputation

Other HR Activities• Legal

• Planning

• Job Analysis

• Selection

• Training

• Compensation

Other HR Activities• Legal

• Planning

• Job Analysis

• Selection

• Training

• Compensation


Examples of Strategic Choices and Examples of Strategic Choices and Recruitment ObjectivesRecruitment Objectives

Examples of Strategic Choices and Examples of Strategic Choices and Recruitment ObjectivesRecruitment Objectives

Increase Market Increase Market Share by Offering Share by Offering Lowest-Cost Lowest-Cost ServicesServices

Retain talent as company growsRetain talent as company growsPredict rate of growth and increase Predict rate of growth and increase

size of workforcesize of workforceImprove efficiency of recruitmentImprove efficiency of recruitmentFind low cost ways to attract and Find low cost ways to attract and

retain talentretain talent

Respond to Respond to Declining Industry Declining Industry Trends by Trends by Diversifying into Diversifying into New BusinessesNew Businesses

Implement layoff plansImplement layoff plansAttract and retain best talentAttract and retain best talentPlan lateral transfers from declining Plan lateral transfers from declining

business areasbusiness areasRecruit for new businessesRecruit for new businesses


Job Analysis Answers These Job Analysis Answers These QuestionsQuestions

Job Analysis Answers These Job Analysis Answers These QuestionsQuestions

What are the characteristics of the ideal What are the characteristics of the ideal recruit?recruit?

Which competencies must people have when Which competencies must people have when they first enter the organization?they first enter the organization?

How important is it for new hires to learn new How important is it for new hires to learn new competencies?competencies?

What career opportunities can be discussed What career opportunities can be discussed with applicants?with applicants?


Current Strategic Recruitment Current Strategic Recruitment IssuesIssues

Current Strategic Recruitment Current Strategic Recruitment IssuesIssues

Keeping costs under control while ensuring Keeping costs under control while ensuring that the organization can grow, diversify, that the organization can grow, diversify, expand internationally expand internationally

Recruiting technical workers and senior Recruiting technical workers and senior managementmanagement

Legal compliance and affirmative actionLegal compliance and affirmative action Involving employees in recruitmentInvolving employees in recruitment


The Value of Retention:The Value of Retention:Costs of TurnoverCosts of Turnover

The Value of Retention:The Value of Retention:Costs of TurnoverCosts of Turnover

Out-of-pocket expenses to recruit, hire, and Out-of-pocket expenses to recruit, hire, and train new employeestrain new employees

Lost productivity:Lost productivity: Errors made by inexperienced employeesErrors made by inexperienced employees Damaged productsDamaged products Projects or contracts lostProjects or contracts lost Lower morale among remaining employeesLower morale among remaining employees Lost knowledge and business contactsLost knowledge and business contacts


Roles and Responsibilities for Roles and Responsibilities for Recruiting and Retaining EmployeesRecruiting and Retaining Employees

Roles and Responsibilities for Roles and Responsibilities for Recruiting and Retaining EmployeesRecruiting and Retaining Employees

Line ManagersLine Managers

•With HR, develop objectives, plans

•Understand HR linkages

•Disseminate info to internal candidates

•Know labor market trends

•Abide by laws

•Facilitate retention

Line ManagersLine Managers

•With HR, develop objectives, plans

•Understand HR linkages

•Disseminate info to internal candidates

•Know labor market trends

•Abide by laws

•Facilitate retention

HR ProfessionalsHR Professionals

•Develop objectives, plans

•Design recruitment and retention activities

•Evaluate recruitment outcomes

•Provide training in recruitment

•Use exit interviews, surveys

HR ProfessionalsHR Professionals

•Develop objectives, plans

•Design recruitment and retention activities

•Evaluate recruitment outcomes

•Provide training in recruitment

•Use exit interviews, surveys

EmployeesEmployees

• Openly discuss Openly discuss objectivesobjectives

• Consider all aspects Consider all aspects of HR in career of HR in career decisionsdecisions

• Participate in Participate in recruitment effortsrecruitment efforts

• Assist in diversity Assist in diversity effortsefforts

• Seek info on Seek info on company openingscompany openings

EmployeesEmployees

• Openly discuss Openly discuss objectivesobjectives

• Consider all aspects Consider all aspects of HR in career of HR in career decisionsdecisions

• Participate in Participate in recruitment effortsrecruitment efforts

• Assist in diversity Assist in diversity effortsefforts

• Seek info on Seek info on company openingscompany openings


Recruiting Methods and SourcesRecruiting Methods and SourcesRecruiting Methods and SourcesRecruiting Methods and Sources

• Research shows no clear differences in Research shows no clear differences in employment experiences of employees employment experiences of employees recruited from different sourcesrecruited from different sources

• Advantages of Using Multiple SourcesAdvantages of Using Multiple Sources• Increases diversityIncreases diversity• Generates a larger pool of applicantsGenerates a larger pool of applicants


Internal SourcesInternal Sources

Job PostingsJob Postings

TalentTalentinventoriesinventories

PromotionsPromotions

TransfersTransfers

Recruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and Sources


Internal RecruitmentInternal RecruitmentInternal RecruitmentInternal Recruitment

ProsPros Reduces labor Reduces labor

costscosts Valued by Valued by

employeesemployees Enhances Enhances

reputation as reputation as employeremployer

ConsCons Limits applicant Limits applicant

poolpool May cause May cause

infightinginfighting InbreedingInbreeding


External Labor MarketExternal Labor Market

Walk-in applicantsWalk-in applicants

Traditional MediaTraditional Media

Employee referralsEmployee referrals

Employment Employment agenciesagencies

InternetInternet

School placementSchool placement

Trade associationsTrade associations

Foreign nationalsForeign nationals

Acquisitions/Acquisitions/MergersMergers

Recruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and Sources


Employing Foreign WorkersEmploying Foreign WorkersEmploying Foreign WorkersEmploying Foreign Workers

Employers must be authorized to hire foreign Employers must be authorized to hire foreign nationals to work in U.S.nationals to work in U.S.

Legislation affecting the hiring of foreign Legislation affecting the hiring of foreign workers:workers: Immigration Reform and Control Act (1986)Immigration Reform and Control Act (1986) Immigration Act of 1990Immigration Act of 1990 American Competitiveness in the 21st American Competitiveness in the 21st

Century Act (2000)Century Act (2000)


Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)

Use culturally Use culturally appropriate methods to appropriate methods to advertiseadvertise

Document domestic Document domestic recruiting efforts’ lack of recruiting efforts’ lack of successsuccess

Ensure equal treatment Ensure equal treatment in salary/benefitsin salary/benefits

Monitor % with various Monitor % with various types of visastypes of visas

Provide relocation Provide relocation supportsupport

Provide training and Provide training and acculturationacculturation

Plan for visa expirationsPlan for visa expirations Assist in repatriationAssist in repatriation


Contingent EmployeesContingent EmployeesContingent EmployeesContingent Employees

Hired to cope with Hired to cope with unexpected or unexpected or temporary challengestemporary challenges

IncludeInclude Part-timersPart-timers FreelancersFreelancers SubcontractorsSubcontractors Independent Independent

professionalsprofessionals

Recently called “free Recently called “free agents”agents”

Limit to 3-12 month Limit to 3-12 month assignments assignments

Recruited using internet Recruited using internet or temporary agenciesor temporary agencies


Recalls and RehiresRecalls and RehiresRecalls and RehiresRecalls and Rehires

Used by seasonal businesses to cope with Used by seasonal businesses to cope with unexpected staffing shortages after unexpected staffing shortages after downsizingdownsizing

May rehire former regular employees as May rehire former regular employees as temporary employeestemporary employees

Inexpensive to recruitInexpensive to recruit


Contingent EmploymentContingent EmploymentContingent EmploymentContingent Employment

ProsPros Employees have Employees have

flexibilityflexibility Workers can Workers can

preview jobs and preview jobs and organizationsorganizations

Easier to give Easier to give regular employees regular employees temporary leavestemporary leaves

ConsCons Contingent Contingent

workers may have workers may have less commitmentless commitment

Conflict common Conflict common between regular between regular and temporary and temporary workersworkers


Recruiting from the Applicant’s Recruiting from the Applicant’s Perspective Enhances RetentionPerspective Enhances RetentionRecruiting from the Applicant’s Recruiting from the Applicant’s Perspective Enhances RetentionPerspective Enhances Retention

Building a Corporate ReputationBuilding a Corporate Reputation Planning to become an “employer of choice”Planning to become an “employer of choice”

• What benefits to offerWhat benefits to offer• How to communicate to publicHow to communicate to public

RisksRisks• Investment requiredInvestment required• Benchmarking may highlight deficienciesBenchmarking may highlight deficiencies• May raise employee expectations and May raise employee expectations and

awareness awareness


Recruiting: The Applicant’s Recruiting: The Applicant’s PerspectivePerspective

Recruiting: The Applicant’s Recruiting: The Applicant’s PerspectivePerspective

Recruiters should:Recruiters should: Make it easy to applyMake it easy to apply Make a good impressionMake a good impression Make an attractive offerMake an attractive offer Give applicants information Give applicants information

they needthey need Reject with tactReject with tact

Status of recruitersStatus of recruiters Treatment of applicantsTreatment of applicants Promptness of decisionsPromptness of decisions


Making an Offer Applicants Will Making an Offer Applicants Will AcceptAccept

Making an Offer Applicants Will Making an Offer Applicants Will AcceptAccept

Most job seekers are looking for “acceptable,” Most job seekers are looking for “acceptable,” rather than “ideal” job.rather than “ideal” job.

Location, job, company, and match with Location, job, company, and match with organization’s values are all important to the organization’s values are all important to the applicant.applicant.


Making an Acceptable OfferMaking an Acceptable OfferMaking an Acceptable OfferMaking an Acceptable Offer

PayPay Noncompensatory reservation wage is the Noncompensatory reservation wage is the

minimum pay to make an offer acceptable, minimum pay to make an offer acceptable, frequently based on:frequently based on:• Prior compensationPrior compensation• Length of unemploymentLength of unemployment• Availability of salary informationAvailability of salary information

Generally higher for males than femalesGenerally higher for males than females


Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)

Benefits and Work ArrangementsBenefits and Work Arrangements Most employers take the compensatory Most employers take the compensatory

approachapproach Most applicants preferMost applicants prefer

• Flexibility in benefitsFlexibility in benefits• Opportunities to learnOpportunities to learn


Giving Applicants the InformationGiving Applicants the InformationThey NeedThey Need

Giving Applicants the InformationGiving Applicants the InformationThey NeedThey Need

Realistic Job PreviewsRealistic Job Previews Describe positive and negative aspectsDescribe positive and negative aspects Increases number of recruits and Increases number of recruits and

commitmentcommitment Help individuals self-selectHelp individuals self-select

Give More Information UsingGive More Information Using AdsAds Job descriptionsJob descriptions Film/videoFilm/video Work samplesWork samples


Equal Opportunity and Equal Opportunity and NondiscriminationNondiscrimination

Equal Opportunity and Equal Opportunity and NondiscriminationNondiscrimination

EEO-1 ReportEEO-1 Report Employer information report required from Employer information report required from

most employers with more than 100 most employers with more than 100 employeesemployees

Reports composition of workforce byReports composition of workforce by• Job familyJob family• SexSex• Race/ethnicityRace/ethnicity• Employment statusEmployment status


Equal Opportunity and Equal Opportunity and Nondiscrimination (cont’d)Nondiscrimination (cont’d)

Equal Opportunity and Equal Opportunity and Nondiscrimination (cont’d)Nondiscrimination (cont’d)

Applicant Tracking SystemsApplicant Tracking Systems Keep data as applicants move through Keep data as applicants move through

system and generate reportssystem and generate reports Demographic information must be kept Demographic information must be kept

separately from applicant qualificationsseparately from applicant qualifications Use to check impact of recruiting methodsUse to check impact of recruiting methods


Affirmative Action (AA) ProgramsAffirmative Action (AA) ProgramsAffirmative Action (AA) ProgramsAffirmative Action (AA) Programs

Programs to ensure proportional Programs to ensure proportional representation of qualified members of representation of qualified members of protected groups in the relevant labor marketprotected groups in the relevant labor market

Protected groups:Protected groups: WomenWomen African AmericansAfrican Americans HispanicsHispanics Native AmericansNative Americans Asian AmericansAsian Americans Pacific Islander AmericansPacific Islander Americans


Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)

Reasons for AA ProgramsReasons for AA Programs As part of consent decree to eliminate the As part of consent decree to eliminate the

effects of past discriminationeffects of past discrimination As required for Federal contractorsAs required for Federal contractors On a voluntary basisOn a voluntary basis

Effective, Legal AA ProgramsEffective, Legal AA Programs Employers work to eliminate future bias byEmployers work to eliminate future bias by

• Having an EEO policyHaving an EEO policy• Analyzing their workforceAnalyzing their workforce• Working to eliminate underutilization of Working to eliminate underutilization of

protected classesprotected classes


Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)

Executive Order 11246 Requires:Executive Order 11246 Requires: AA plans for contractors with federal contracts AA plans for contractors with federal contracts

greater than $50,000 and having 50 or more greater than $50,000 and having 50 or more employees.employees.

Written AA plans to be filed with Office of Written AA plans to be filed with Office of Federal Contract Compliance Programs (OFCCP).Federal Contract Compliance Programs (OFCCP).

Plans ComponentsPlans Components A utilization analysis of current employeesA utilization analysis of current employees An availability analysis of the relevant labor An availability analysis of the relevant labor

marketmarket Diversity goals and timetablesDiversity goals and timetables


Benefits and Risks of AA PlansBenefits and Risks of AA PlansBenefits and Risks of AA PlansBenefits and Risks of AA Plans

BenefitsBenefits Positive perceptions among employees and Positive perceptions among employees and

applicants when companies make proactive applicants when companies make proactive effortsefforts

Enhanced diversity of applicant poolEnhanced diversity of applicant pool Avoidance of lawsuitsAvoidance of lawsuits Positive reactions by investorsPositive reactions by investors

RisksRisks Reverse discrimination chargesReverse discrimination charges AA hires may be perceived as less competentAA hires may be perceived as less competent ““Protected group” classification polarizes gender Protected group” classification polarizes gender

and ethnic groupsand ethnic groups


Recruiting Practices That May Recruiting Practices That May Create Create

a Glass Ceilinga Glass Ceiling

Recruiting Practices That May Recruiting Practices That May Create Create

a Glass Ceilinga Glass Ceiling Word of mouth Word of mouth Employee referralsEmployee referrals Executive search firms unaware Executive search firms unaware

of EEO objectivesof EEO objectives Job postings that rely on Job postings that rely on

informal networksinformal networks Recruiting venues that create Recruiting venues that create

discomfort (e.g., hotel rooms)discomfort (e.g., hotel rooms)


Reducing Recruiting Needs Reducing Recruiting Needs Through RetentionThrough Retention

Reducing Recruiting Needs Reducing Recruiting Needs Through RetentionThrough Retention

Turnover, not growth, Turnover, not growth, creates most creates most recruitment pressures.recruitment pressures.

Most (not all) turnover is Most (not all) turnover is caused by dissatisfied caused by dissatisfied employees and is employees and is undesirable.undesirable.

Exit surveys are useful Exit surveys are useful in diagnosing turnover.in diagnosing turnover.


Low jobLow jobsatisfactionsatisfaction

Low jobLow jobsatisfactionsatisfaction

Other roleOther rolecommitmentscommitments

and time conflictsand time conflicts

Other roleOther rolecommitmentscommitments

and time conflictsand time conflicts

Insufficient Insufficient incentivesincentives

and rewardsand rewards

Insufficient Insufficient incentivesincentives

and rewardsand rewards

Poor jobPoor jobperformanceperformance

Poor jobPoor jobperformanceperformance

Labor marketLabor marketconditionsconditions

Labor marketLabor marketconditionsconditions

Low commitment, Low commitment, withdrawalwithdrawal

Low commitment, Low commitment, withdrawalwithdrawal

JobJobSearchSearch

JobJobSearchSearch

Process of Employee TurnoverProcess of Employee TurnoverProcess of Employee TurnoverProcess of Employee Turnover


Why Employees May Not Be HonestWhy Employees May Not Be HonestAt Exit InterviewAt Exit Interview

Why Employees May Not Be HonestWhy Employees May Not Be HonestAt Exit InterviewAt Exit Interview

Want to move onWant to move on Negative comments may Negative comments may

reach new employerreach new employer Cynicism about employer’s Cynicism about employer’s

motivationmotivation Concern for those who Concern for those who

remainremain Desire not to “burn Desire not to “burn

bridges”bridges”


Ways to Minimize Turnover and Ways to Minimize Turnover and Recruiting DifficultiesRecruiting Difficulties

Ways to Minimize Turnover and Ways to Minimize Turnover and Recruiting DifficultiesRecruiting Difficulties

Train supervisors to understand employees’ Train supervisors to understand employees’ concerns, provide feedback, and help with concerns, provide feedback, and help with career developmentcareer development

Invest in training, especially for low-skill jobsInvest in training, especially for low-skill jobs Use innovative HR approaches to keep Use innovative HR approaches to keep

employees’ interestemployees’ interest


Managing Workforce ReductionsManaging Workforce Reductionsand Layoffsand Layoffs

Managing Workforce ReductionsManaging Workforce Reductionsand Layoffsand Layoffs

Alternatives to Layoffs:Alternatives to Layoffs: Restricting overtimeRestricting overtime Reducing workweekReducing workweek Temporary leavesTemporary leaves Job sharingJob sharing RetrainingRetraining Transfers to other Transfers to other

companiescompanies Employee BuyoutsEmployee Buyouts

Consequences of Consequences of Layoffs:Layoffs: Severance PaymentsSeverance Payments Consultant feesConsultant fees LitigationLitigation Loss of trust in Loss of trust in

managementmanagement Lack of staff for Lack of staff for

reboundrebound Loss of reputationLoss of reputation


Downsizing With RespectDownsizing With RespectDownsizing With RespectDownsizing With Respect

Survivors often concerned with own survival Survivors often concerned with own survival and guiltand guilt

Managers canManagers can Use fair process to let people goUse fair process to let people go Develop careful change planDevelop careful change plan Work to regain trustWork to regain trust

Chapter 7: Recruiting and Retaining Qualified Employees Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

Documents