Recruiting in Labor Recruiting in Labor Markets ExerciseMarkets Exercise

ProcedureProcedure

Into 8 teamsInto 8 teams Team name (for scoring)Team name (for scoring) 30 minutes to prepare30 minutes to prepare 5 minutes to present5 minutes to present Be as engaging and CREATIVE as possibleBe as engaging and CREATIVE as possible All vote on the best team; MUST vote for a All vote on the best team; MUST vote for a

team other than your ownteam other than your own Top team get’s 5 extra credit pointsTop team get’s 5 extra credit points

Groups of 4-5Groups of 4-520 minutes to prepare20 minutes to prepare

1.1. What is recruiting? ExamplesWhat is recruiting? Examples2.2. What is strategic recruiting? Why Strategic? What is strategic recruiting? Why Strategic?

Examples of?Examples of?3.3. What is internal recruiting? Advantages and What is internal recruiting? Advantages and

disadvantagesdisadvantages4.4. When should we outsource recruiting?When should we outsource recruiting?5.5. When should we use contract vs. direct When should we use contract vs. direct

employees?employees?6.6. What are What are top notch recruiting examples7.7. What are some legal issues in recruiting and how What are some legal issues in recruiting and how

do we manage these issues?do we manage these issues?8.8. What are the best recruiting metrics and how What are the best recruiting metrics and how

should we use them to manage.should we use them to manage.

RecruitingRecruiting The process of generating a pool of qualified The process of generating a pool of qualified

applicants for organizational jobsapplicants for organizational jobs

Strategic Approach to Strategic Approach to RecruitingRecruiting

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

plans.plans.Acquiring the Acquiring the RightRight Human Capital Entails: Human Capital Entails:

Knowing the business and industry to successfully recruit qualified Knowing the business and industry to successfully recruit qualified employeesemployees

Identifying keys to success in the labor market, including ways to Identifying keys to success in the labor market, including ways to deal with deal with competitors’ recruiting effortscompetitors’ recruiting efforts (cherry picking!)(cherry picking!)

Cultivating networks and relationships with sources of prospective Cultivating networks and relationships with sources of prospective employeesemployees

Promoting the company brand so that the organization becomes Promoting the company brand so that the organization becomes knownknown as a good place to work as a good place to work

Creating Creating recruiting metricsrecruiting metrics in order to measure the effectiveness of in order to measure the effectiveness of recruiting efforts recruiting efforts (offer:acceptance ratio)(offer:acceptance ratio)

Strategic Recruiting DecisionsStrategic Recruiting Decisions

Organization-Based vs. Outsourced Organization-Based vs. Outsourced RecruitingRecruiting HR knows organization bestHR knows organization best Outsourcing frees up time, cost savings, often Outsourcing frees up time, cost savings, often

better access to markets, understands the better access to markets, understands the industry better and decreases HR Staff industry better and decreases HR Staff

Professional Employer Organizations (PEOs) Professional Employer Organizations (PEOs) and Employee Leasingand Employee Leasing Saves HR costs but increases total payroll costsSaves HR costs but increases total payroll costs Increases compliance with government Increases compliance with government

regulations and requirements.regulations and requirements. Benefits may be more availableBenefits may be more available

Internal RecruitingInternal Recruiting

Organizational DatabasesOrganizational Databases Profiles containing background and KSA information Profiles containing background and KSA information

on current employees that allow for key word on current employees that allow for key word searches to locate suitable candidates for open searches to locate suitable candidates for open positions and career development.positions and career development.

Skills Management System(s)Skills Management System(s)Job PostingJob Posting

A system in which the employer provides notices of A system in which the employer provides notices of job openings and employees respond by applying.job openings and employees respond by applying.

Promotions and TransfersPromotions and Transfers Upward and lateral movements of employeesUpward and lateral movements of employees

External 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

LaborLabor

UnionsUnions

LaborLabor

UnionsUnions

External External RecruitingRecruitingSourcesSources

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

CompetitiveCompetitive

SourcesSources

CompetitiveCompetitive

SourcesSources

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

Recruiting cost savingsRecruiting cost savings

Recruiting time savingsRecruiting time savings

Expanded pool of applicantsExpanded pool of applicants

Morale building for current Morale building for current employeesemployees

DisadvantagesDisadvantages

More unqualified applicantsMore unqualified applicants

Additional work for HR staff Additional work for HR staff membersmembers

Many applicants are not Many applicants are not seriously seeking seriously seeking employmentemployment

Access limited or Access limited or unavailable to some unavailable to some applicantsapplicants

Use technology to counter this such as key word search.

E.g., screening software

Regular vs. Flexible StaffingRegular vs. Flexible Staffing

Flexible StaffingFlexible Staffing The use of workers who are not traditional The use of workers who are not traditional

employees.employees. Temporary workersTemporary workers

Hiring temporary staff members or contracting with Hiring temporary staff members or contracting with agencies supplying temporary workers on a rate-per-agencies supplying temporary workers on a rate-per-day or rate-per-week basis.day or rate-per-week basis.

Independent contractorsIndependent contractors Workers who perform specific services on a contract Workers who perform specific services on a contract

basis.basis.

Cost/Benefit of Flexible StaffingCost/Benefit of Flexible Staffing

Legal ConsiderationsLegal Considerations

General Recruiting Process General Recruiting Process MetricsMetrics

Offer:Acceptance Ratio Offer:Acceptance Ratio arguably the most important yield ratioarguably the most important yield ratio

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

recruiting process to the number at the next stage.recruiting process to the number at the next stage.

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

Acceptance RateAcceptance Rate The percent of applicants who accepted a job offers divided by The percent of applicants who accepted a job offers divided by

total number of applicants who received job offers.total number of applicants who received job offers.

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

good employees to that of current employees.good employees to that of current employees.

Sample Sample Recruiting Recruiting Evaluation Evaluation

PyramidPyramid