Human Resource Planning and Recruitment

Stages in Human Resource Planning Human Resource Management Gaining a Competitive Advantage • Forecasting • Goal Setting and Strategic Planning • Program Implementation and Evaluation Chapter 5 Human Resource Planning and Recruitment 1-1 Forecasting Stage of Human Resource Planning Learning Objectives After reading this chapter, you should be able to: • • • • • • 5-3 Discuss how to align a company’s strategic direction with its human resource planning. Determine the labor demand for workers in various job categories. Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage. Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available. 5-2 • Determining Labor Demand – derived from product/service demanded – external in nature • Determining Labor Supply – internal movements caused by transfers, promotions, turnover, retirements, etc. – transitional matrices identify employee movements over time – useful for AA / EEO purposes • Determining Labor Surplus or Shortage 5-4 Strategies for Reducing an Expected Labor Surplus Option 1. 2. 3. 4. 5. 6. 7. 8. 9. Speed Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining Fast Fast Fast Fast Fast Slow Slow Slow Slow Downsizing Extent of Human Suffering High High High Moderate Moderate Low Low Low Low • Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational competitiveness. • Reasons for downsizing include: – need to reduce labor costs – technological changes reduce need for labor – mergers and acquisitions reduce bureaucratic overhead – organizations choose to change the location of where they do business 5-5 Strategies for Reducing an Expected Labor Surplus Option 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation Speed Effects of Downsizing Extent of Human Suffering Fast Fast High High Fast Slow Slow Slow Slow High High Moderate Low Low 5-7 • Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. • Reasons include: – The long-term effects of an improperly managed downsizing effort can be negative. – Many downsizing campaigns let go of people who turn out to be irreplaceable assets. – Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse. 5-6 5-8 Early Retirement Programs Outsourcing and Offshoring • The average age of the U.S. workforce is increasing. • Baby boomers are not retiring early for several reasons: • Outsourcing is an organization’s use of an outside organization for a broad set of services. • Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. • To help ensure the success of outsourcing: – improved health of older people – a fear that Social Security will be cut – mandatory retirement is outlawed – Choose an outsourcing vendor that is large and established. – Jobs that are proprietary or require tight security should not be outsourced. – It is a good idea to start small and monitor constantly. • Many employers try to induce voluntary attrition among older workers through early retirement incentive programs. 5-9 Employing Temporary Workers 5-11 Affirmative Action Planning • Hiring temporary workers helps eliminate a labor shortage. • Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in demand. • Other advantages include: – temporary workers free a firm from many administrative tasks and financial burdens – temporary workers are often times tested by a temporary agency – many temporary agencies train employees before sending them to employees 5-10 • It is important to plan for various subgroups within a labor force. • A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents is called a workforce utilization review. • The steps required to execute an affirmative action plan are identical to the steps in the generic planning process discussed earlier. 5-12 The Human Resource Recruitment Process Recruitment Sources Job Choice Colleges and Universities Internal Sources - Vacancy Characteristics Job Choice campus placement services Applicant Characteristics External Sources New ideas and approaches Personnel Policies Recruiter Traits and Behaviors Public & Private Employment Agencies - Faster, cheaper, more certainty Recruitment Sources Direct Applicants and Referrals - headhunters, can be expensive JOBS JOBS Electronic Recruiting the Internet Newspaper Advertising - self selection, low cost Recruitment Influences large volume, low quality recruits 5-13 Personnel Policies 5-15 Recruiters • Characteristics of the vacancy are more important than recruiters or recruiting sources. • Personnel Policies vary: • Functional Area – HR- versus operating area-specialist • Traits – warm and informative – Internal versus External recruiting – Extrinsic versus Intrinsic rewards – Employment-at-will policies – Image advertising • Realism – realistic job preview, honesty 5-14 5-16 Steps to Enhance Recruiter Impact 1. Provide timely feedback 1. Provide timely feedback 2. Avoid rude behavior 2. Avoid rude behavior 3. 3. Recruit Recruitin in teams teams 5-17