Copyright © 2008 Nelson, a division of Thomson Canada Limited.5–15–1 Part 2: Staffing the Organization Chapter 5: Recruiting in Labour Markets Prepared

Copyright © 2008 Nelson, a division of Thomson Canada Limited. 5–1

Part 2: Staffing the Organization Part 2: Staffing the Organization Part 2: Staffing the Organization Part 2: Staffing the Organization

Chapter 5: Recruiting in Labour MarketsChapter 5: Recruiting in Labour Markets

Prepared by Linda Eligh, University of Western Ontario

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 5–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

After you have read this chapter, you should be able to:

1. Identify different ways that labour markets can be identified and approached.

2. Discuss the advantages and disadvantages of internal and external recruiting.

3. Specify three internal sources for recruiting and issues associated with their use.

4. List and briefly discuss five external recruiting sources.

5. Explain why Internet recruiting has grown and how employers are conducting it.

6. Discuss three factors to consider when evaluating recruiting efforts.


Strategic Approach to RecruitingStrategic Approach to RecruitingStrategic Approach to RecruitingStrategic Approach to Recruiting

• Benefits of a Strategic Approach Matches recruiting activity with organizational and human

resource plans.

• Acquiring the Right Human Capital Entails: Knowing the business and industry to successfully recruit

qualified employees. Identifying keys to success in the labour market, including ways

to deal with competitors’ recruiting efforts. Cultivating networks and relationships with sources of

prospective employees. Promoting the company brand so that the organization becomes

known as a good place to work. Creating recruiting metrics in order to measure the effectiveness

of recruiting efforts.


Strategic Recruiting Strategic Recruiting Stages Stages Fig. 5-1Fig. 5-1

Strategic Recruiting Strategic Recruiting Stages Stages Fig. 5-1Fig. 5-1


Labour MarketsLabour MarketsLabour MarketsLabour Markets

• RecruitingThe process of generating a pool of qualified

applicants for organizational jobs.

• Labour MarketsThe external supply pool from which organizations

attract their employees.

• Labour Force PopulationAll individuals who are available for selection if all

possible recruitment strategies are used.


Labour MarketsLabour MarketsLabour MarketsLabour Markets

• Applicant PopulationA subset of the labour force that is available for

selection using a particular recruiting approach.

• Applicant PoolAll persons who are actually evaluated for selection.

• Tight vs.Loose Labour MarketsLow unemployment creates competition for employees,

raising labour costs.High unemployment results the availability of more

applicants and more qualified applicants.


Labour Market Components Labour Market Components Fig. 5-2Fig. 5-2Labour Market Components Labour Market Components Fig. 5-2Fig. 5-2


Labour Market ComponentsLabour Market ComponentsLabour Market ComponentsLabour Market Components

Recruiting Decisions Recruiting method

Advertising medium chosen, including use of employment agencies.

Recruiting message What is said about the job and how it is said.

Applicant qualifications required Education level and amount of experience

necessary, for example. Administrative procedures

When recruiting is done, applicant follow-up, and use of previous applicant files.


Labour Markets and RecruitingLabour Markets and RecruitingLabour Markets and RecruitingLabour Markets and Recruiting

Labour MarketLabour MarketCharacteristicsCharacteristics

Labour MarketLabour MarketCharacteristicsCharacteristics

IndustryIndustryandand

OccupationalOccupationalMarketsMarkets

KSAs KSAs

IndustryIndustryandand

OccupationalOccupationalMarketsMarkets

KSAs KSAs

GeographicGeographicMarketsMarkets

Local, RegionalLocal, RegionalNationalNational

InternationalInternationalGlobal Global

GeographicGeographicMarketsMarkets

Local, RegionalLocal, RegionalNationalNational

InternationalInternationalGlobal Global

Educational Educational andand

TechnicalTechnicalMarketsMarkets

QualificationsQualifications

Educational Educational andand

TechnicalTechnicalMarketsMarkets

QualificationsQualifications


Strategic Recruiting DecisionsStrategic Recruiting DecisionsStrategic Recruiting DecisionsStrategic Recruiting Decisions

• Organization-Based vs. Outsourced RecruitingHR knows organization best. Outsourcing frees up time and decreases HR staff.Professional Employer Organizations (PEOs) and

Employee LeasingSaves HR costs but increases total payroll costs.Increases compliance with government regulations

and requirements.Employees may receive better benefits than would

be available in many small businesses.


Typical Division of HR Responsibilities: Recruiting Fig. 5-3

Typical Division of HR Responsibilities: Recruiting Fig. 5-3



RecruitingRecruitingPresence and ImagePresence and Image

RecruitingRecruitingPresence and ImagePresence and Image

Training of Training of RecruitersRecruiters

Training of Training of RecruitersRecruiters

Regular vs. Flexible Regular vs. Flexible StaffingStaffing

Regular vs. Flexible Regular vs. Flexible StaffingStaffing

EffectiveEffectiveRecruitingRecruiting

EffectiveEffectiveRecruitingRecruiting


Recruiting and Diversity Considerations Fig. 5-4Recruiting and Diversity Considerations Fig. 5-4



• Recruiting Diverse WorkersOlder Workers

Mid-life career changers: Those who are burned out in their jobs and career fields and leave voluntarily to try new fields.

Displaced older workers: Those who have worked but have been displaced, often involuntarily, through job reductions or plant closings.

Retirees: Those who took early retirement buyouts or formally retired from prior jobs.

Small Businesses


Advantages and Disadvantages of Internal and External Recruiting Sources Fig. 5-6

Advantages and Disadvantages of Internal and External Recruiting Sources Fig. 5-6


Internal RecruitingInternal RecruitingInternal RecruitingInternal Recruiting

Internal Recruiting ProcessesOrganizational Databases

Profiles containing background and KSA information on current employees that allow for key word searches to locate suitable candidates for open positions and career development.

Job PostingA system in which the employer provides notices

of job openings and employees respond by applying.

Promotions and TransfersUpward and lateral movements of employees.


Internal RecruitingInternal RecruitingInternal RecruitingInternal Recruiting

• Employee-Focused RecruitingCurrent-Employee Referrals

A reliable source composed of acquaintances, friends, and family members of employees that are recommended by current employees.

Can violate human rights regulations if it is the sole source of applicants.

Re-recruiting of Former Employees and ApplicantsIndividuals who have left for other jobs might be

willing to return.


External RecruitingExternal RecruitingExternal RecruitingExternal Recruiting

Employment AgenciesEmployment Agenciesand Headhuntersand Headhunters

Employment AgenciesEmployment Agenciesand Headhuntersand Headhunters

College and College and

University RecruitingUniversity Recruiting

College and College and

University RecruitingUniversity RecruitingHigh Schools and High Schools and Technical SchoolsTechnical Schools

High Schools and High Schools and Technical SchoolsTechnical Schools

LabourLabour

UnionsUnions

LabourLabour

UnionsUnions

External External RecruitingRecruitingSourcesSources

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

CompetitiveCompetitive

SourcesSources

CompetitiveCompetitive

SourcesSources


Pros and Cons of Various Media Sources Fig. 5-7Pros and Cons of Various Media Sources Fig. 5-7


External RecruitingExternal RecruitingExternal RecruitingExternal Recruiting

• How to Prepare Effective Job Advertisements A I D A – the elements of AIDA should be used in

every advertisement

Attention: advertisement “lead” needs to catch attention

Interest: inform the reader about the job – include

“must have” skills

Desire: explain how the job will benefit the job seeker;

“sell” them on working for you

Action: encourage the applicant to take action by

providing contact information


Internet RecruitingInternet RecruitingInternet RecruitingInternet Recruiting

The Internet has become a primary means for employers to look for job candidates and applicants to look for jobs.

88% of Global 500 companies use websites for recruiting

Internet recruiting most widely used in North America


Internet RecruitingInternet RecruitingInternet RecruitingInternet Recruiting

Internet Job BoardsInternet Job BoardsInternet Job BoardsInternet Job Boards

Professional/Professional/Career Web SitesCareer Web Sites

Professional/Professional/Career Web SitesCareer Web Sites

Employer Web SitesEmployer Web SitesEmployer Web SitesEmployer Web Sites

E-RecruitingE-RecruitingMethodsMethods

E-RecruitingE-RecruitingMethodsMethods


Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)

AdvantagesRecruiting cost savings

Recruiting time savings

Expanded pool of applicants

Morale building for current employees

DisadvantagesMore unqualified

applicants

Additional work for HR staff members

Many applicants are not seriously seeking employment

Access limited or unavailable to some applicants


Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)Internet Recruiting (cont’d)

• Legal Issues in Internet recruiting

The use (or misuse) of screening software

Exclusion of designated group members and older employees from the process

Identification of “real” applicants

Online Informality that leads to improper discussions or information


Recruiting Evaluation and MetricsRecruiting Evaluation and MetricsRecruiting Evaluation and MetricsRecruiting Evaluation and Metrics

Evaluating Evaluating Recruiting Recruiting

SatisfactionSatisfaction

Evaluating Evaluating Recruiting Recruiting

SatisfactionSatisfaction

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating the Time the Time

Required to Required to Fill Fill

OpeningsOpenings

Evaluating Evaluating the Time the Time

Required to Required to Fill Fill

OpeningsOpenings

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Recruiting EffortsEvaluating Recruiting EffortsEvaluating Recruiting EffortsEvaluating Recruiting Efforts


General Recruiting Process MetricsGeneral Recruiting Process MetricsGeneral Recruiting Process MetricsGeneral Recruiting Process Metrics

• Yield ratios A comparison of the number of applicants at one stage of the

recruiting process to the number at the next stage.

• Selection rate The percentage hired from a given group of candidates.

• Acceptance Rate The percent of applicants hired divided by total number of

applicants.

• Success Base Rate Comparing the percentage rate of past applicants who were

good employees to that of current employees.


Sample Recruiting Sample Recruiting Evaluation Evaluation

Pyramid Pyramid Fig. 5-11Fig. 5-11

Sample Recruiting Sample Recruiting Evaluation Evaluation

Pyramid Pyramid Fig. 5-11Fig. 5-11

Documents

Copyright © 2008 Nelson, a division of Thomson Canada Limited.5–15–1 Part 2: Staffing the Organization Chapter 5: Recruiting in Labour Markets Prepared