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Chapter 5

ADM 2337 Chapter Notes - Chapter 5: Employment Agency, Job Fair, Unemployment Benefits

Course Code
ADM 2337
Magda Donia

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Chapter 5
Branding the Talent Pool: Recruitment and Careers
Strategic Aspects of recruiting
- Who should do the recruiting?
HR recruiters(large firms)
generalists (smaller organizations)
Managers and/or supervisors (When organization has no HR function)
Work teams (e.g. Williams Sonoma)
Recruiting process outsourcing (RPO) Whe the ogaizatio is too sall ad does’t hae tie to do the euitig
o The patie of outsouig a ogaizatio’s euitig futio to a outside fi
- 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
There are advantages and disadvantages to both
- Labor Markets
Area from which applicants are to be recruited
o Tight market: high employment, few available workers. Need to advertise more or seek assistance from local
employment agencies.
o Loose market: Low employment, many available workers
Factors determining the relevant labor market
Internal labour markets are those where workers are hired into entry-level jobs and higher levels are filled from within.
Regional and global labour markets:
o companies are no longer simply offshoring work to save labour costs. They are also looking abroad to develop better
products around the clock via a global workforce and to attract the best talent wherever it may be.
o For example, after the fall of the Soviet Union in the 1990s, firms abroad began recruiting talented Soviet scientists
who had worked for the government and no longer had jobs.
- Badig: A ogaizatio’s effots to help eistig ad pospetie okes udestad h it is a desiale plae to ok.
Recruitment Channels
- Recruiting internally
o Internal job postings
Post on bulletin board
Post on intranet sites
o Identifying talent through performance appraisals (e.g. 9 box grid)
Successful performers are often good candidates for a promotion.
9-box grid:
The grid helps managers assess appraisal and assessment data to be compiled into a single visual reference
so the a see oth a eploee’s atual pefoae ad potetial pefoae.
This can then help managers determine what the developmental needs of the employee are and what the
peso’s et steps ithi the ogaizatio ight e.
o Skills inventories and replacement charts
Fis use skill ietoies to help tak a eploee’s eduatio, past ok epeiee, oatioal iteests, speifi
abilities and skills, compensation history, and job tenure to see how they can best be used.
Replacement charts are an important tool for succession planning.
- Recruiting externally
o Advertisements
Advertising has the advantage of reaching a large audience of possible applicants. However, some degree of
selectivity can be achieved by using newspapers and journals directed toward a particular group of readers.
Professional and trade journals, blogs, the professional social networking groups on LinkedIn, and the publications of
unions and various fraternal or nonprofit organizations will attract different types of candidates than help wanted
signs, for example.
The more information disclosed, the better.
o Walk-ins, unsolicited applications, and resumes
Walk-in job seekers seeking jobs that pay hourly wages are common in smaller organizations.
It is often believed that individuals who contact employers on their own initiative will be better employees than those
recruited through college placement services or newspaper advertisements.
o The internet, social networking, and mobile recruiting
Looking on the Internet is the most commonly used search tactic by job seekers and recruiters to get the word out
about new positions.
cheaper, faster, and potentially more effective.
Passive job seekers are people who are not looking for jobs but could be persuaded to take new ones given the right
o Job fairs
Job fairs can be a good way to cast a wide net for diverse applicants in a certain region.
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although they attract a lot of applicants, many of them might not be qualified.
They only attract applicants in the regional area in which they are held.
Holdig a itual jo fai that aoe, ahee a atted. Duig a itual jo fai, euites staff
itual ooths olie, hee the poide liks to thei areer resources, collect résumés, and talk with
candidates via online chat functions.
o Employee referrals:
Word-of-mouth recommendations are the way most job positions are filled.
Managers have found that the quality of employee-referred applicants is normally quite high because employees are
generally hesitant to recommend individuals who might not perform well.
In general, applicants who are referred by a current employee, if hired, tend to remain with the organization longer as
Nepotism: The practice of hiring relatives.
Can invite charges of favouritism, especially in appointments to desirable positions.
Nepotis is the o i etai outies Middle Est, Asia…
o Re-recruiting: The process of keeping track of and maintaining relationships with former employees to see if they would be
willing to return to the firm.
o Executive search firms (headhunters):
Help employers find the right person for a job.
The fees charged by search firms can range anywhere from 25 to 40 percent of the annual salary for the position to
be filled.
o Educational Institutions
Educational institutions typically are a source of young applicants with formal training but relatively little full-time
work experience.
o Professional associations:
Many professional associations and societies offer a placement service to members as one of their benefits.
o Labour unions:
Labour unions have been a principal source of applicants for blue-collar and some professional jobs.
Some unions, such as those in the maritime, printing, and construction industries, maintain hiring halls that can
provide a supply of applicants, particularly for short-term needs.
o Public Employment agencies:
Each province maintains an employment agency that administers its employment insurance program.
Individuals ho eoe ueploed ust egiste at oe of these offies ad e aailale fo suitale eploet
to receive their weekly employment insurance cheques.
As a result, the agencies are able to refer to employers with job openings those applicants with the required skills
who are available for employment.
Private employment and temporary agencies:
o Employee Leasing:
PEOs takig oe the aageet of a salle opa’s HR tasks ad eoes a oeploe to its eploees.
Improving the effectiveness of recruiting
- Using realistic job previews
o Informs applicants about all aspects of the job, including both its desirable and undesirable facets.
o In contrast, a typical job preview presents the job only in positive terms.
o The RJP might also include a tour of the working area, combined with a discussion of any negative health or safety
- Surveys
o Survey managers about how satisfied they are with the process.
Are managers happy with the time it takes to hire new employees, the degree to which they need to be involved in
the process, and, ultimately, the overall quality of the people recruited? Why or why not?
- Recruiting metrics
o Quality of fill statistics
Quality of hire = (PR + HP + HR)/ N
PR: average job performance rating of new hires
HP: Percentage of new hires reaching acceptable productivity within an acceptable time frame.
HR: Percentage of new hires retained after one year.
N: Number of indicators
o Time to fill: Refers to the number of days from when a job opening is approved to the date the person ultimately chosen for the
job selected.
o Yield Ratios: The percentage of applicants from a particular source who make it to the next stage in the selection process.
o Costs of recruitments:
SC/H = (AC + AF + RB + NC) / H
AC: Advertising cost, total monthly expenditures
AF: Agency fees, total for the month
RB: Referral bonuses, total paid
NC: No-cost hires, walk-ins, non-profit agencies
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