ORGB 423 Lecture Notes - Lecture 9: Year 2000 Problem, Executive Search, Social Reproduction
12 Jun 2018
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Lecture 9
Strategic Aspects of Recruiting
Have to consider the org. :
• Costs
• Business opportunities and threats
o E.g. The Y2K bug (high recruitment then in 2001 no
recruiting, even lay offs)
Decisions about talent
The broad factors that can affect a firm’s recruiting strategy include a
firm’s recruiting abilities
Who should recruit?
HR recruiters or generalists (for large firms)
Managers and/or supervisors (smaller firms)
Work teams
Recruiting process outsourcing (RPO)
• The practice of outsourcing an org.’s recruiting function to an
outside firm
When outsourcing goes awry
The case, CEO Newman:
• What is the problem?
• Was outsourcing a good idea at the time?
o No.
• That being said, should the CEO have that meeting? What are the
other options?
o Treating them as humans
o Reworking the contract
Should a firm recruit internally or externally?
Most managers try to follow a policy of filling job vacancies above the
entry-level position through promotions and transfers.
Advantages of external recruitment
• Fresh ideas and perspectives
• Bring new clients
• Have more options to find someone that fits the job better/Larger
pool to choose from
Disadvantages
• Homo social reproduction (will tend to choose people that
resemble you)
find more resources at oneclass.com
find more resources at oneclass.com
Advantages of internal recruitment?
• Motivation for the employees
• Employees are more likely to be loyal
• Lower costs
Disadvantages?
• No innovation (people can tend to promote same type of people)
• Homosocial reproduction
How to recruit internally?
• Internal job postings
• Identifying talent through performance appraisals
• Skills inventories and replacement charts
How to recruit externally?
• Advertisements
• Walk-ins, unsolicited applications, and résumés
• Job fairs
• Employee referrals
• Executive search firms
• Social media (through Facebook, LinkedIn etc.)
Labour Markets
Labour market: Area which applicants are to be recruited
• Tight market: high employment, few available workers
• Loose market: low employment , may available workers
Factors determining the relevant labour market
Global labour markets
• Why recruit globally?
o To develop better products via a global workforce
o To attract the best talent wherever it may be
• Some international recruiting issues:
o Local, national and international laws
o Different pre-employment/compensation practices
o Cultural differences
o Security
o Visas and work permits
Employer Branding: An organization’s efforts to help existing and
prospective workers understand why it is a desirable place to work
Recruiting Externally
find more resources at oneclass.com
find more resources at oneclass.com
Educational institutions
Professional associations
Labour unions
Public employment agencies
Private employment and temporary agencies
Employee leasing
Improving the effectiveness of recruiting
Surveys
Realistic job previews
Recruiting metrics
Some Recruiting Metrics
Quality of fill statistics
Quality of hire =
• PR = Average job performance rating of new hires
• HP = % of new hires reaching acceptable productivity with
acceptable time frame
• HR = % of new hires retained after 1 year
• N = number of indicators
Time to fill: The number of days from when a job opening is approved to
the date the candidate is selected
Yield Ratios: The % of applicants from a recruitment source that make it
to the next stage of selection process
Costs of recruitment (multiple choice question on this)
•
• SC = Source cost
• AC = Advertising costs, total monthly expenditure
o E.g. 32,000$
• AF = Agency fees, total for the month
o E.g. 21,000$
• RB = Referral bonuses, total paid
o E.g. 2,600$
• NC = No-cost hires, walk-ins, non-profit agencies etc.
o E.g. 0$
• H = Total hires
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Have to consider the org: costs, business opportunities and threats, e. g. The y2k bug (high recruitment then in 2001 no recruiting, even lay offs) The broad factors that can affect a firm"s recruiting strategy include a firm"s recruiting abilities. Hr recruiters or generalists (for large firms) Recruiting process outsourcing (rpo: the practice of outsourcing an org. "s recruiting function to an outside firm. What are the other options: treating them as humans, reworking the contract. Most managers try to follow a policy of filling job vacancies above the entry-level position through promotions and transfers. Advantages of external recruitment: fresh ideas and perspectives, bring new clients, have more options to find someone that fits the job better/larger pool to choose from. Disadvantages: homo social reproduction (will tend to choose people that resemble you) Advantages of internal recruitment: motivation for the employees, employees are more likely to be loyal, lower costs.
