Chapter 5: Recruitment

Recruitment – the process of attracting individuals on a timely basis, in sufficient

numbers, and with appropriate qualifications, and encouraging them to apply for jobs
with an organization.

The Internet can be a valuable recruiting tool, offering speed and an expanded talent pool
which make the recruitment process more efficient and cost-effective for both employer
and job candidate. However, it’s not a selection tool, does not replace conducting
background checks, face-to-face interviews and other steps required to assess attitudes
and behavior that are vital to finding qualified employees.

1. Alternatives to Recruitment
Recruitment and selection costs are significant when you consider all the related
expenses: search process, interviewing, agency fees, relocation and processing of a new
employee.

 Outsourcing: process of transferring responsibility for an area of service and its

objectives to an external provider. A sound outsource contract is vital, since once
a decision to outsource has been made and internal systems disassembled, it may
be difficult or even impossible to reverse the practice.

 Contingent workers: “disposable workers”, work as part-timers, temporaries or

independent contractors. To avoid hiring people one day and resorting to lay-offs
the next, firms look to the benefits of flexible and less costly employment
strategies.

 Professional Employer Organizations (PEO’S) / Employee Leasing: firms that

work with company clients in a co-employment relationship to provide human
resource administration, comprehensive employee benefit programs, assumption
of employer risk, tax filing, and compliance with employment laws.

Employee Advantages Employer Disadvantages

- wider selection of benefits - erosion of employee loyalty because
- greater opportunity for job mobility workers receive pay and benefit from
- job security because of transfers leasing company
  Overtime: most commonly used method of meeting short-term fluctuations in
work volume.

Employee advantages Employer advantages

- Increased income during the - no recruitment, selection and training
overtime period costs

2. External Environment of Recruitment

Labor Market Conditions:

 Domestic: when the unemployment rate in an organization’s labor market is high

the firm’s recruitment process may be simplified, the number of applicants is
usually greater & the increased size of the labor pool provides a better opportunity
for attracting qualified applicants. Accurate employment data found in
professional journals can be useful.

 Global: nowadays the labor market for many professional and technical positions
is much broader and truly global; which is mainly due to the Internet, efficient
communication systems and the increased education of the world’s population.

Legal Considerations (government)

Legal practices play a significant role in recruitment practices. It’s essential for firms to
emphasize nondiscriminatory practices at this stage.

Corporate Image

Employees’ positive WOM and a positive public image are of great value to the firm and
assist in establishing credibility with future employees, which may help to attract more
and better qualified applicants.

3. Internal Environment of Recruitment

Human Resource Planning

Examining alternative sources of recruits and determining the most productive sources
and methods for obtaining them often requires planning time.
Promotion Policies

Promotion from within (PFW):

 policy of filling vacancies above entry-level positions with current employees
 workers have an incentive to strive for advancement
 employees become more aware of their own opportunities
 often improves employee morale 0020
 only PFW is not recommended: new employees provide new ideas and
innovation that must take place for firms to remain competitive

Firm’s Knowledge of Employees

 firm is usually well aware of its employees’ capabilities and personal qualities
 employee has a track record as opposed to being an unknown entity
 company’s investment in the individual may yield a higher return
 employee knows the firms’ policies & people

Nepotism

 Common to have anti-nepotism policies that discourage the employment of close

relatives, especially when related employees would work in the same department,
under same supervisor or in supervisor-subordinate roles.
 When the labor market is tight, a firm may decide to keep relatives and not loose
them to competition.

4. The Recruitment Process

  Employee requisition: a document that specifies job title, department, the date
the employee is needed for work, and other details. With this info managers can
refer to the appropriate job description to determine the qualifications the
recruited person needs.
 Recruitment sources: various locations in which qualified individuals are
located, such as colleges or competitors.
 Recruitment methods: the specific means by which potential employees are
attracted to an organization.

Internal Recruitment Methods

 Management should be able to identify current employees who are capable of

filling positions as they become available & support the concept of promotion
within.
 Internal Recruitment TOOLS: employee databases, job posting and job bidding
procedures.

Job posting
o Procedure for communicating to company employees the fact that a job opening
exists.

Job bidding
o Technique that permits individuals in an organization who believe that they
possess the required qualifications to apply for a posted job.

Employee referrals:
  Employee enlistment: a unique form of employee referral where every
employee becomes a company recruiter, not the same as merely asking
employees to refer friends but the firm supplies employees with simple
business cards that have messages similar to “we are always looking for----,
for additional info log on to our web site.”

External Recruitment Methods

 Needs that require external recruitment: fill entry-level jobs, acquire skills not
possessed by current employees, and to obtain employees with different
backgrounds to provide a diversity of ideas.

High Schools and Vocational Schools

o For organizations concerned with recruiting clerical and other entry-level
operative employees often depend on high schools and vocational schools.
o To ensure the constant supply of trained individuals with specific job
skills.

Community Colleges
o Are sensitive to the specific employment needs in their local labor
markets and graduate highly sought-after students with marketable
skills.

Internal promotion and external recruitment:

Colleges and Universities
o On –campus recruitment is mutually beneficial, both employers and
universities should take steps to develop a close relationship.

Competitors in the Labor Market

o When recent experience is required, competitors and other firms in the
same industry or geographic area may be the most important source of
recruits.
o Employers should check to see if such applicants are bound by
noncompete or nondisclosure agreements.
o Smaller firms in particular look for employees trained by larger
organizations that have greater developed resources.

Former Employees
o Today, smart employers try to get their best ex-employees back to
come back.
o The advantage of tracking former employees is that the firm knows
their strengths and weaknesses & they know the company.
o Can encourage others to stay as it might not always be greener on the
other side of the fence.

The Unemployed
o Valuable source of recruits, firms may downsize, go out of business or
merge, leaving qualified workers without jobs.

Persons with Disabilities

o Society benefits when people with disabilities are hired, economy
becomes stronger and the government supports less people.
o Disabled individuals can be valuable because, forced to learn new or
different ways to do things, they are often able to apply these skills to
their work.
o Adds to the diversity of the workgroup and increases the flow of new
ideas.

Older Individuals
o Older workers, retired.
o Compared to younger workers, many older employees have more
positive work habits, lower absenteeism rates, and higher levels of
commitment to the organization.

Military Personnel
o Individuals have typically a proven work history and are flexible,
motivated and drug free.
o Goal and team-oriented.
 Self-Employed Workers
o May be true entrepreneurs who are ingenious and creative, which are
essential qualities for many firms for continued competitiveness.
o Source of applicants for any number of jobs requiring technical,
professional, administrative or entrepreneurial expertise within a firm.

5. External Recruitment Methods

o Internet advertising allows the penetration of new markets and develops a wider
range of qualified applicants.

Advertising
o Way of communicating the firm’s employment needs to the public through media
such as radio, newspaper or industry publications.
o Internet is newest and fastest growing external recruitment tool.
o Important that firm decides on corporate image it wants to project.

Employment Agencies
o An organization that helps firms recruit employees and at the same time aids
individuals in their attempt to locate jobs.
o Private: known for recruiting white-collar employees, offer an important
service in bringing qualified applicants and open positions together. Provide
service against a fee.
o Public: operated by each state, receive overall policy direction from the U.S.
Employment Service. Known for placing individuals in operative jobs,
provide their services without charge to either employer or the prospective
employee.

Recruiters
o Focus mostly on technical & vocational schools, community colleges &
universities.
o Number one method for recruiting students.
o Company recruiter plays a vital role in attracting applicants since he reflects
the character of the firm.
o Recruiter should underscore the job’s opportunities and keep the lines of
communication open.
o Internet recruiter: cyber recruiter – person whose primarily responsibility is
to use the Internet in the recruitment process.

Job Fairs
o A recruiting method engaged in by a single employer or group of employers to
attract a large number of applicants for interviews.
 Employee Advantages Employer advantages
- Convenient access to a number - meet a large number of candidates in a
of employers short time

o Offer the potential for a much lower cost per hire than traditional approaches.
o General Job fairs though are likely to attract a large number of unqualified
individuals. Solution: more industry- or skill- specific events & tose that focus
on diversity.

Virtual Job Fairs

o Online event.
o Reveals a wider range of applicants than might attend a live fair.

Internships
o Special form of recruitment that involves placing a student in a temporary job
with no obligation either by the company to hire the student to accept a
permanent position with the firm following graduation.

Executive Search Firms

o Organizations used by some firms to locate experienced professionals and
executives when other sources prove inadequate.
o Key benefit is the targeting of ideal candidates for the job.
o Contingency Search Firms: search firm that receives fees only upon
successful placement of a candidate in a job opening. Fee is generally a
percentage of the individual’s compensation for the first year. The client pays
expense as well as the fee.
o Retained Search Firms: search firms that are considered as consultants to
their client organizations, serve on an exclusive contract basis and typically
recruit top business executives. Assist organizations in determining their
human resource needs. Establishing compensation packages and revising
organizational structures.

Professional Associations
o E.g.: Society for Human Resource Management (SHRM).

Walk –In Applicants

o Unsolicited applicants who apply because they are favorably impressed with
the firm’s reputation often prove to be valuable employees.

Open Houses
o Place where potential hires and recruiters meet in a casual environment that
encourages on-the-spot job offers.
 o Cheaper and faster than hiring through recruitment agencies & more popular
than job fairs.
o If event is truly open: may come a lot of unqualified applicants, solution:
invitation-only sessions where HR staff screens C.V.’s in response to ads.

Event Recruiting
o Recruiters attend the same events as the people you are seeking.
o Gives the company the opportunity to reflect its image.

Sign-on Bonuses
o Offer sign-on bonuses to high-demand prospects.
o Financial executives, particularly (CFO) are in high demand.

6. Applicant Tracking System (ATS)

o A system that automates online recruiting and selection processes. Current

systems enable HR and line managers to oversee the entire process, from
screening C.V.’s and spotting qualified candidates, to conducting personality and
skills tests and handling background checks.

7. Tailoring Recruitment Methods to Sources

o Recruitment must be tailored to the needs of each firm.

o Recruitment sources and methods often vary according to the type of position
being filled.

8. Recruitment for Diversity

o Forward thinking organizations actively engage in acquiring a workforce that

reflects society and helps the company expand into untapped markets. To
accomplish this objective, firms may need to use nontraditional recruitment
approaches.
o Any organization that seeks diversity must implement recruitment practices that
ensure that women, minorities and those with disabilities are included in their
recruitment planning.