Snell_18e_PPT_Instructor_Ch05.pptx

Chapter 5

Expanding the Talent Pool: Recruitment and Careers

Learning Outcomes
After studying this chapter, you should be able to
Describe how a firm’s strategy affects its recruiting efforts, and outline the elements that are part of a strategic recruiting strategy.
Describe the methods firms use to recruit externally and internally.
List some of the ways firms can improve their recruiting and the metrics they use to do so.
Explain how career management programs integrate the needs of individual employees and their organizations.
Explain why diverse recruitment and career development activities are important to companies.

Discussion Starter #1

Luke’s Lobster uses social networking to promote its brand.

How has the use of the Internet and social networks affected how today’s companies brand and recruit?

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ANSWER: To help establish their employer brands as well as recruit talent, firms are utilizing the Internet and social media websites. Using the Internet and social networks is an inexpensive way to brand and recruit. The strategy can be particularly effective for small companies that can’t afford to pay for a lot of job advertising to promote their firms and attract candidates.

Looking on the Internet is the most commonly used search tactic by jobseekers and recruiters to connect with one another. Both companies and applicants find the approach cheaper, faster, and potentially more effective. There are tens of thousands of independent job boards and niche job boards. Specialty Internet recruiting sites are also common, too.

Social media websites allow firms to create company pages, post and advertise jobs, showcase their company’s attractive features, and join groups that target certain types of professionals. In fact, many companies, such as Zappos, no longer accept résumés and instead use social media to recruit applicants. Social media sites, such as Facebook and LinkedIn, have also made it easier to find passive jobseekers—people who are not looking for jobs but could be persuaded to take new ones given the right opportunity.

5.1 Business Strategies and Their Link to Strategic Recruiting
Recruiters always have to consider the firm’s strategy.

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Figure 5.1:
Elements of a Recruitment Strategy

Section 5.1a: Elements of a Recruiting Strategy
Figure 5.1 shows the various elements a firm has to consider as part of its recruitment strategy. The elements include the strength of the firm’s employment “brand,” the types of positions the company is recruiting for, where it needs them, when it needs them, and who is responsible for doing the recruiting and making the recruiting decision.
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Activity
Step 1: Conduct an online search and find at least three articles related to the importance of selecting an appropriate recruiting strategy.
Step 2: Using these articles as reference, write a two-page report summarizing your findings with examples to substantiate it. Be sure to cite your sources.
Step 3: Share your report with the rest of the class to initiate a class discussion.

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Estimated class time: – Step 1 & 2 should be done before class, 45 minutes total

5.2 External and
Internal Recruiting Methods
The two primary locations in which to find candidates are those external to the firm (external candidates) and those internal to the firm (internal candidates), each of which are recruited somewhat differently.

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Figure 5.2:
Sources of External Recruitment

Section 5.2a: External Recruiting Methods
Figure 5.2 shows the major external recruitment methods. The “active” and “passive” labels indicate that some methods take more effort on the part of the applicant and/or the recruiting firm than others.
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5.2a External Recruiting Methods
(slide 1 of 6)
Advertisements
Advertising can reach a large audience of possible applicants.
Preparing recruiting advertisements not only is time consuming; it requires creativity in terms of developing their design and message content.

Walk-Ins and Unsolicited Applications and Résumés
It is often believed that individuals who contact employers on their own initiative will be better employees than those recruited through ads.

The Internet
Looking on the Internet is the most commonly used search tactic by jobseekers and recruiters to connect with one another.
Both companies and applicants find the Internet cheaper, faster, and potentially more effective.

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5.2a External Recruiting Methods
(slide 2 of 6)
Social Media
Firms are utilizing social media websites (e.g., Facebook, LinkedIn) to recruit employees.
Passive jobseekers – People who are not looking for jobs but could be persuaded to take new ones given the right opportunity

Mobile Recruiting
Mobile recruiting – The process of recruiting candidates via their mobile devices

Job Fairs
At a job fair companies and their recruiters set up booths, meet with prospective applicants, and exchange employment information.
Virtual job fair – Job fairs conducted online

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Video Highlight #1
This six-minute, step-by-step demo of LinkedIn Recruiter shows how the recruiting tool can be used to find and attract the best passive jobseekers on LinkedIn.

“LinkedIn Recruiter Demo”

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Section 5.2a: External Recruiting Methods
VIDEO: LinkedIn Recruiter Demo (5:50)
This six-minute, step-by-step demo of LinkedIn Recruiter shows how the recruiting tool can be used to find and attract the best passive jobseekers on LinkedIn.

TOPICS/CONCEPTS: recruiting, recruitment, passive jobseekers, external recruiting methods, social media

5.2a External Recruiting Methods
(slide 3 of 6)
Employee Referrals
Word-of-mouth recommendations are the way most job positions are filled.
Research findings:
Employee referrals are the best source of applicants.
Referred employees have higher retention rates than those who are not referred and are hired in less than half the time as other candidates.
Once hired, applicants referred by an employee tend to remain with the organization longer.
Negative factors:
Corporate “inbreeding” – Occurs when firms hire employees similar to those who provided the referrals and thereby discriminate against protected classes
Nepotism – A preference for hiring the relatives of current employees

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5.2a External Recruiting Methods
(slide 4 of 6)
Re-recruiting
Re-recruiting – The process of keeping track of and maintaining relationships with former employees to see if they would be willing to return to the firm

Executive Search Firms
In contrast to public and private employment agencies, which help jobseekers find the right job, executive search firms (often called “headhunters”) help employers find the right person for a job.

Educational Institutions
High schools and community colleges
Work-study programs
Internships

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Figure 5.3: Steps for Strengthening a Firm’s
On-Campus Recruiting Relationships

Section 5.2a: External Recruiting Methods
Rather than recruiting students from dozens of schools, which can be expensive, more companies are targeting smaller numbers of colleges and forming closer partnerships with them. Employees guest lecture at the schools and develop relationships with instructors, who then recommend students for jobs. Some companies are sending their CEOs to campus because they have found that it puts a “face” on the company and attracts more applicants. Figure 5.3 shows some of the steps firms can take to strengthen their on-campus recruiting relationships.
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Figure 5.4:
Unpaid Internship Guidelines

Section 5.2a: External Recruiting Methods
Figure 5.4 shows the criteria that must be met if an intern is not to be paid, according to the U.S. Department of Labor.
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5.2a External Recruiting Methods
(slide 5 of 6)
Professional Associations and Labor Unions
Placement centers are usually included at the national meetings of professional associations.
Labor unions have been a principal source of applicants for blue-collar and some professional jobs.

Public Employment Agencies
Each of the 50 U.S. states maintains an employment agency that works with employers to post their job openings in online job banks and matches unemployed qualified workers to the jobs so they can apply for them.

Private Employment Agencies
Private employment agencies are companies that, for a fee, match people with full-time jobs.

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5.2a External Recruiting Methods
(slide 6 of 6)
Staffing Agencies
Staffing agencies (e.g., Adecco, Kelly Services) are firms that hire and place workers in temporary positions.

Independent Contractors
Independent contractors – Workers who are self-employed and do project work on a contract basis for different organizations

Employee Leasing
Employee leasing – The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees

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5.2b Internal Recruiting Methods
(slide 1 of 2)
Most companies try initially to fill job vacancies above the entry-level position through promotions and transfers.
Promoting employees rewards them for their past performance and encourages them to continue their efforts, which in turn can improve morale within the organization and support a culture of employee engagement.
Research suggests that internal candidates are likely to outperform external candidates.
When qualified employees are passed over for external candidates, a firm’s current employees can become disillusioned to the point where they begin looking elsewhere for jobs.
When experienced employees leave an organization, they take with them years of corporate knowhow that is hard to replace.

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Figure 5.5: Warning Signs
of a Weak Talent “Bench”

Section 5.2b: Internal Recruiting Methods
Some signs that a firm needs to work harder at grooming internal talent are shown in Figure 5.5.
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5.2b Internal Recruiting Methods
(slide 2 of 2)
Internal Job Postings
Bulletin boards
Intranets

Identifying Talent through Performance Appraisals
Nine-box grid – A comparative diagram that includes appraisal and assessment data to allow managers to easily see an employee’s actual and potential performance.

Skills Inventories and Replacement Charts
Skills inventories – Track an employee’s education, past work experience, vocational interests, specific abilities and skills, compensation history, and job tenure to see how they can best be used
Replacement charts – Used for succession planning

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Figure 5.6:
An Example of a Nine-Box Grid

Section 5.2b: Internal Recruiting Methods
Figure 5.6 is an example of a nine-box grid.
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5.3 Improving the
Effectiveness of Recruiting
A firm can improve its effectiveness when it comes to recruiting by doing the following:
Recruiters need an accurate job analysis.
Line managers and employees need to be intimately involved in the process.
A job-starting date that works for both the organization and the potential new hire needs to be established.
After the person has been hired, the firm should conduct a “debrief” and identify any lessons to improve the recruiting process.

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5.3a Using Realistic Job Previews
Realistic job preview (RJP) – Informing applicants about all aspects of the job, including both its desirable and undesirable facets
Proponents of RJPs believe that applicants who are given them are more likely to remain on the job and be successful because they will experience fewer unpleasant surprises.

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Discussion Starter #2
Explain how realistic job previews (RJPs) operate.
As a manager or business owner, would you use them?

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ANSWER: The purpose of a realistic job preview (RJP) is to provide job applicants with information concerning all aspects of the job, including both its desirable and undesirable facets. The RJP might also include a tour of the working area, combined with a discussion of any negative health or safety considerations and time to talk candidly with the firm’s employees about the upsides and downsides of the job.

Students’ answers will vary as to whether they would use an RJP. Proponents of RJPs believe that applicants who are given them are more likely to remain on the job and be successful because they will experience fewer unpleasant surprises. Yet some companies avoid RJPs because they worry that presenting both the positive and negative aspects of a job could discourage applicants.

5.3b Surveys and Employee Profiles
Another way to improve a company’s recruiting is to survey managers, top performers, new hires, and candidates who turned down jobs.
Employee profiles – A profile of a worker developed by studying an organization’s top performers to recruit similar types of people

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5.3c Recruiting Metrics
Time-to-fill – Metrics that refer to the number of days from when a job opening is approved to the date a person accepts the job and begins it
Quality-of-fill – A metric that measures how well new hires have gotten “up to speed,” are performing, and their retention levels
Yield ratio – The percentage of applicants from a particular source that make it to the next stage in the selection process
Acceptance rate – The percentage of applicants who accept a firm’s jobs after being offered them
Applicant tracking system (ATS) – A system recruiters use to post job openings, screen résumés and uploaded profiles, contact via email potential candidates for interviews, and track the time, costs, and other metrics related to hiring people

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Figure 5.7: Time-to-Fill Calculations

Section 5.3c: Recruiting Metrics
Figure 5.7 shows how time-to-fill metrics are calculated.
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5.4 Career Management:
Developing Talent Over Time
Proactive companies see career development and recruiting functions as strategic imperatives and, therefore, as an ongoing process designed to maximize the talents of their employees and retain them.
These companies study their firms’ strategies in conjunction with their organizational charts, job analysis information, and external factors such as the labor market and the competition, and then recruit proactively and continually.
Managers play a key role in expanding the talent pools of firms.
Good managers “grow” talent by listening to their employees’ aspirations, act as coaches, identify their strengths and areas of improvement, and offer them continual feedback.
Good managers also ensure employees receive training, self-assessment tools, and information about the organization and possible career paths within it.

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Figure 5.8: Steps in the
Career Management Process

Section 5.4: Career Management: Developing Talent Over Time
Figure 5.8 shows the steps in the career management process.
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5.4a The Goal: Matching the Needs of the Organization to the Needs of Employees
A career development program should be viewed as a dynamic process that matches the needs of the organization with the needs of employees as those needs change.

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Figure 5.9: Blending the Needs of Individual
Employees with the Needs of Their Organizations

Section 5.4a: The Goal: Matching the Needs of the Organization to the Needs of Employees
As Figure 5.9 shows, the organization’s goals and needs should be linked with the individual career needs of its employees in a way that improves the effectiveness of workers and their satisfaction as well as achieves the firm’s strategic objectives.
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5.4b Identifying Career Opportunities and Requirements (slide 1 of 2)
To identify career opportunities and requirements, managers have to continually analyze the:
Competencies required for jobs
Progression among related jobs
Supply of ready (and potential) talent available to fill those jobs

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5.4b Identifying Career Opportunities and Requirements (slide 2 of 2)
Job progressions – The hierarchy of jobs a new employee might experience, ranging from a starting job to jobs that successively require more knowledge and/or skill
Job progressions serve as a basis for developing career paths—the lines of advancement in an occupational field within an organization—for individuals.
An individual’s career advancement can move along several different paths via promotions, transfers, demotions, and even exits.
Promotion – A change of assignment to a job at a higher level in the organization
Transfer – The placement of an employee in another job for which the duties, responsibilities, status, and pay and benefits are approximately equal to those of the previous job the person held
Demotion – A downward transfer that moves an individual into a lower-level job that can provide developmental opportunities

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Figure 5.10: Typical Line of Advancement in HR Management

Section 5.4b: Identifying Career Opportunities and Requirements
Figure 5.10 illustrates a typical advancement for an HR associate for a large multinational corporation.
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Figure 5.11:
Stages of Career Development

Section 5.4b: Identifying Career Opportunities and Requirements
A person’s knowledge, skills, abilities, and attitudes as well as career aspirations change with age and maturity. The challenges and frustrations people face at the same stages in their careers are remarkably similar. A model describing these stages is shown in Figure 5.11. The stages are (1) preparation for work, (2) organizational entry, (3) early career, (4) midcareer, and (5) late career. The typical age range and the major tasks of each stage are also presented in the figure.

The first stage—preparation for work—encompasses the period prior to entering an organization, often extending until age 25. It is a period in which individuals must acquire the knowledge, abilities, and skills they need to compete in the marketplace. The second stage, typically from ages 18 to 25, is devoted to soliciting job offers and selecting appropriate jobs. During this period, a person might also be involved in preparing for work. The next three stages entail fitting into a chosen occupation and organization(s), modifying one’s goals, continuing to improve one’s productivity, helping groom other employees, and finally preparing for retirement.
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5.4c Career Development Initiatives (slide 1 of 2)
Career Counseling
Involves talking to employees about their current job activities and performance, personal and career interests and goals, personal skills, and suitable career development objectives

Mentoring Programs
Mentors – Individuals who coach, advise, and encourage employees of a lesser rank
Reverse mentoring – A program whereby younger employees are called on to mentor older employees and executives about social media trends, new technology, and marketplace trends

Tuition Assistance Programs
Corporations often offer their employees tuition assistance to help them further their careers if they take courses related to the firms’ businesses..

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5.4c Career Development Initiatives
(slide 2 of 2)
Career Plateau Initiatives
Career plateau – A situation in which for either organization or personal reasons the probability of moving up the career ladder is low
Three types of plateaus:
Structural plateau – Marks the end of promotions
Content plateau – Occurs when a person has learned a job too well and is bored with day-to-day activities
Life plateau – Is more profound and may feel like a midlife crisis

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Figure 5.12:
Career Plateau Questions

Section 5.4c: Career Development Initiatives
Figure 5.12 lists some probing questions managers can ask themselves if they think their employees are experiencing a career plateau.
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5.5 Developing a Diverse Talent Pool
Employers often develop formal EEO/affirmative action policies to recruit and promote members of protected classes so that their representation at all levels within the organization approximates their proportionate numbers in the labor market.
Women
Minorities
People who are disabled
Veterans
Older employees

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Discussion Starter #3
What barriers to career advancement do women and minorities face?

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ANSWER: A major employment obstacle for women, both skilled and unskilled, is the stereotyped thinking that persists within our society. Women traditionally have been at a disadvantage because they have not been part of the so-called “good old boys’ network.” That network is an informal one of interpersonal relationships that has traditionally provided a way for senior (male) members of the organization to pass along news of advancement opportunities and other career tips to junior (male) members as well as to recommend them. Women also still make less than men, on average, and sometimes feel as if the workplace is a “man’s world,” and the proportion of women in top echelons of management, although growing, still remains extremely low.

For many minorities, employment opportunities still remain limited because of educational and societal disadvantages. The unemployment rates for minority youths are particularly high.

Video Highlight #2
View recruitment videos for three of most successful U.S. companies today: Google, Apple, and KPMG.

“Google Recruitment Video”

“Apple’s Employee Recruiting Video”

“Why Choose KPMG”

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VIDEO: Google Recruitment Video (7:21); Apple’s Employee Recruiting Video (4:35); Why Choose KPMG (3:10)
View recruitment videos for three of most successful U.S. companies today: Google, Apple, and KPMG.

TOPICS/CONCEPTS: recruiting, recruitment

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