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Happy New Year!

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Recruitment & Selection

Group HRDo you agree?

Great companies “first got the right people on the bus, the wrong people off the bus, and the right people in the right seats – and then they figured out where to drive it.”

Good to Great: Why Some Companies Make the Leap and Others Don’t – Jim Collins

Group HRManpower Planning

• Manpower Planning is a Process by which an organization ensures that– Right number of people– Right kind of people– At the Right time– At the Right place– Doing the Right things for which they are suited for

achieving the goals of the organization.

Group HRFactors affecting Manpower Planning

• Sales and production forecasts • The effects of technological change on task needs • Variations in the efficiency, productivity, flexibility of

labor as a result of training, work study, organizational change, new motivations, etc.

• Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.)

Group HRFactors affecting Manpower Planning

• Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements

• Changes in Government policies (investment incentives, regional or trade grants, etc.)

Group HRManpower Planning

• Two Steps– Demand Forecasting– Supply Forecasting

Group HRDemand Forecasting

• Bottom Up Technique• Delphi Technique• Nominal Group Technique• Ratio Analysis• Regression Analysis

Group HRSupply Forecasting

• Internal Supply• External Supply

Group HR

Recruitment is not about filling jobs that are currently

vacant – it is about making a continuous, long-term

investment to build a high quality workforce capable of

accomplishing the organization’s mission now and in

the future

www.ipma-hr.orgAny example you know of? Any example you know of?

Group HR

Recruitment is a critical management function

that all levels of the organization need to be

involved in planning and implementation

www.ipma-hr.org

Group HR

Global Sourcing is changing the shape of the business world!!!

Features of the ‘New’ World

• global sourcing barriers fading away

• Disappearance of the Time Zones

• Transformation of the work processes into pieces

that can be constructed and deconstructed

Group HR

Changing Role of HR: Modified Recruitment Structure

Currently organisations use one or more of the following staffing structures:

Decentralized Staffing Model —Allows individual business units to develop and fill their own staffing plans.

Hybrid Staffing Model —Combines decentralized approach with certain centralized (or shared services) components.

Outsourced Staffing Model —Promotes efficiency, consistency and potential cost saving

HR Business Partner Structure —HR business partners work with designated business units.

Group HR

How do organizations structure their recruiting departments?

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Group HR

Pros and Cons of Recruiting Department Structures

Centralized Hybrid Decentralized

Pros Cons Pros Cons Pros Cons

•Facilitates practice and lead sharing

•Enhances Consistency

•Enables Standardization

•Creates a disconnection between recruiters and business units

•Enables a mix of process efficiencies and connection with the line

•Creates staffing resource flexibilities

•Creates resource and process inefficiencies

•Distance function from the support of corporate headquarters

•Improves communication with the line

•Enables recruiters to learn business

•Creates resource inefficiencies

•Discourages candidate and practice sharing across the department

•Lacks process efficiencies of centralized structures

•Reduces consistency and standardization

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• Three Main Functions of Recruitment Process are:

– Attract a pool of suitable candidates– Deter unsuitable candidates from applying– Create a positive image of the organization

Group HR

Internal Recruitment

External Recruitment

Vs.

Group HRRecruitment from Inside

Advantages Career plan for existing workers &

morale

Motivator for good performance

Relatively easier assessment of applicants as information is available

Reduced recruitment costs (travel expenses)

Causes succession of promotions

Have to hire only at entry level.

Disadvantages

Existing employees may not bring-in new ideas to their new job (inbreeding).

Lower level employees may not have capacities required at higher jobs.

High-powered employees might not be able to wait long enough for their turn (“political” infighting for promotions).

Internal strife for the post might impact negatively on possibilities for team work among existing employees.

Need for management development program

Group HRRecruitment from Outside

Disadvantages

Relatively higher costs.

Risky of getting the wrong person.

May cause morale problems for internal candidates not selected.

Advantages Larger pool of talent.

Objectivity and extensive effort put into the process likely to lead to a better candidate selection.

New industry insights, ideas, way of thinking & approaches might challenge existing norms and act as catalyst in continuous improvement/ innovation.

Cheaper and faster than training professionals.

No group of political supporters in organization already.

Group HR

Sourcing Channels

Recruitment methods

Internal

• Job Posting • Skills Data Base• Employee Referrals by Other

Departments

External

• Advertisement• Placement Agencies• Internships• Job Sites• E-Recruiting• Campus• Data Base• Alumni• Associations/Interest Groups/

Networks• Temporary Leasing • Employee Referrals• Passive Recruiting (Unsolicited application)

• Career Fairs

Group HR

Despite the importance of strategic workforce planning, most HR departments have not yet developed a formal plan to participate in their companies’ business cycles.

Ninety percent of HR departments have no independent planning and forecasting function, and many HR departments have no formal staffing strategy of any kind.

Rather, they tend to operate independently of the business cycle, developing reactive staffing solutions instead of proactive strategies that anticipate movements in the business cycle.

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Group HR

Recruitment Strategy: A Six Step Approach

Recruitment strategy should answer the following

questions related to their target populations:

1. Who is being targeted through the recruitment?

2. Where is the appropriate place to recruit clients?

3. When should recruitment be done?

4. What messages should be delivered during recruitment?

5. How should the messages be delivered?

6. Who is the most appropriate person to do recruitment?

Group HR

Talent Forecasting

1. Business strategy —Integrates projected company growth in terms of activity, output and revenue.

2. Human capital need —Translates business strategy into staffing requirements.

3. Projection of future vacancies — Based on difference between staffing requirements and current capacity.

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Strategic Recruiting Stages

Human Resource Planning

• How many employees are needed?

• When employees will be needed?

• What specific KSA’s are needed?

Organizational Responsibilities

•HR staff & operating managers

•Recruiting presence and image

•Training of recruiters

Wendell French, Chapter 9, Recruitment & Selection

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Strategic Recruiting Decisions

• Organizational-based Vs. outsourcing

• Regular Vs. flexible staffing

• Recruiting source choices

Recruiting Methods

• Internal methods

• Internet/ web-based

• External methodsWendell French, Chapter 9, Recruitment & Selection

Group HRSelection

• The process of assessing candidates and appointing a post holder

• Applicants short listed – most suitable candidates selected

• Selection process – varies according to organisation.

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Selection Tools

• Interview – most common method

• Psychometric testing – assessing the personality of the applicants –• Measures of personality

• Honesty test (substitute to polygraph)

• Aptitude testing – assessing the skills of applicants• Measures of proficiency, achievement, or knowledge

• Measures of mental ability or intelligence

• In-tray exercise – activity based around what the applicant will be

doing

• Presentation – looking for different skills as well as the ideas of the

candidate

• Assessment Centres – battery of tests

Group HRChoice of Selection Methods

• Number of applicants

• Criticality of position

• Cost/effort involved

• Predictive validity

• Extent of preparation required

Group HRWhen using psychological tests..

• Clearly identify the objectives

• Uses a battery of test that can give range of information

• Have trained psychologists conduct and interpret tests

• Use personality testing as an adjunct to the recruitment or

career planning process and exploit its developmental

power

• Adapt tests to Indian situations

Group HRDetermining Selection Standards

Sources of Information about Applicants

• Application Forms• Reference Checks• Physical Examination

Selection Tests (Reliability & Validity)

The Selection Interview

Group HR

Recruitment: Return on Investment (ROI)

• Recruitment return on investment (ROI)

understands and compares the elements, costs

and risks of a recruitment related project to the

expected benefits

Group HR

What to Measure: Hiring

Recruiter Effectiveness

RE = RT+TF+HR+C/H +QH N

RE = Overall Recruiter effectivenessRT = Response TimeTF = Time to FillHR = Hire RateC/H = Cost Per HireQH= Quality of HireN = Number of Indices Used.

HR Accounting

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Cost Per Hire

SC = Sourcing costs (Advertising + Agency Fees + Employee Referrals)

ST = Staff Time [Travel + Interview ] x [Recruiter Pay and Benefits] or External

Agency Fee

MT = Management Time x Managements Pay and Benefits

PC = Processing Costs/ Operating Expenses

TR = Travel Cost of Applicants

RL = Relocations Costs

MS = Miscellaneous

H = Full Time or Part Time Employees Hired

CPH = SC+ST+MC+PC+TR=RL+MS

H

HR Accounting

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Quality of Hire (QH)

PR= Average job performance ratings of new hiresHP= Percent of new hires promoted within one yearHS = Percent of new hires retained after one yearN = Number of indicators used

QH = PR + HP + HSN

Satisfaction of new employees with hiring.

Satisfaction of managers with new employees.HR Accounting

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Number Hired (Hit Rate)

HO = OA/OE

TF =RR – OD

RR = Date requisition is received

OD = Date offer is accepted

OA = Offer acceptedOE = Offers extended HO = Percentage of offers that result in hire

Time to Fill

HR Accounting

Group HR

RewardsCompensationHealth BenefitsRetirement BenefitsVacation

OpportunityDevelopment OpportunitiesFuture Career OpportunitiesOrganization Growth RateMeritocracyOrganizational Stability

OrganizationCustomer PrestigeDiversityEmpowermentEnvironmental ResponsibilityEthicsGreat Employer RecognitionWell know BrandMarket PositionProduct/ Service QualityOrganization SizeSocial ResponsibilityTechnology Level

WorkBusiness TravelInnovationJob ImpactJob-Interests AlignmentLocationRecognitionWork Life Balance

PeopleCamaraderieCollegial Work EnvironmentCoworker QualityManager QualityPeople ManagementSenior Leadership Reputation

The Employment Value Proposition The set of attributes that the labor market and employee perceive as the value they gain

through employment in the organization.

RewardsCompensationHealth BenefitsRetirement BenefitsVacation

OpportunityDevelopment OpportunitiesFuture Career OpportunitiesOrganization Growth RateMeritocracyOrganizational Stability

OrganizationCustomer PrestigeDiversityEmpowermentEnvironmental ResponsibilityEthicsGreat Employer RecognitionWell know BrandMarket PositionProduct/ Service QualityOrganization SizeSocial ResponsibilityTechnology Level

WorkBusiness TravelInnovationJob ImpactJob-Interests AlignmentLocationRecognitionWork Life Balance

PeopleCamaraderieCollegial Work EnvironmentCoworker QualityManager QualityPeople ManagementSenior Leadership Reputation

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