BU354 Chapter Notes - Chapter 5: W. M. Keck Observatory, Linkedin
BU354
Chapter 5 – Recruitment
Strategic Importance of the Recruitment Function
➢ Gaining Competitive Advantage from Human Resources
o The presence of highly skilled and motivated workers can be a real competitive
advantage to firms
▪ Poorly qualified recruits often prove extremely costly
➢ Reaping the Benefits of Diversity Management
o Hiring from a larger, diverse pool of candidates offer a greater choice of job
applicants to the firm
o A diverse workforce also offers greater flexibility and additional capabilities in
certain situations
o It reflects an organization’s commitment to broader social goals and projects a
better image of the firm to clients
➢ Focusing on Employee Development
o The strategic choice of internal vs. external recruitment has profound
implications for an organization
▪ Internal Recruiting
• Advantages – familiarity, improved morale and motivation
• Disadvantages – internal rivalry, no “new blood”
▪ External Recruiting
• Advantages – new skills and knowledge
• Disadvantages – more expensive in terms of cost and time
➢ Investing Resources into Recruitment
o Costs of recruitment are not simply the hiring costs
▪ Bad hires cost additional money to reverse
▪ Other investments include selecting and training recruiters
• HR professionals (knowledgeable about career paths but lack
specific job details)
• Line Managers (opposite of HR professionals)
• Co-workers (same as line managers, but to a lesser extent)
Constraints on Recruitment
➢ Organizational Policies
o Promote-from-within Policies
▪ Formulated to give present employees the first opportunity for job
openings and facilitate their career growth
o Compensation Policies
▪ Recruiters seldom have the authority to exceed stated pay ranges
o Employment Status Policies
▪ Some companies have policies restricting the hiring of part-time and
temporary employees
o International Hiring Policies
▪ Require foreign job openings to be staffed with local citizens
➢ Human Resource Plans
o A firm’s overall plan to fill existing and future vacancies can limit recruiters
➢ Diversity Management Programs
o Where diversity management and employment equity programs exist,
recruitment must also take these programs into account
➢ Recruiter Habits
o Although recruiters need positive and negative feedback, they must guard
against self-imposed constraints
➢ Environmental Conditions
o Leading Economic Indicators
▪ The economic indices suggest the future course of the national economy
o Predicted vs. Actual Sales
▪ Recruiting efforts may need to be changed due to the variation between
actual and predicted sales
o Employment Statistics
▪ Stats Canada routinely reports various employment statistics
• Also produce reports on the state of employment in different
industry sectors
➢ Job Requirements
o Knowledge of a job’s requirement allows the recruiter to choose the best way to
find recruits, given the constraints under which the recruiter must operate
o Ex. “Find best and most experienced applicant” = higher cost (salary)
▪ In some jobs, 10 years of experience = 1 year of experience
➢ Costs
o The costs of identifying and attracting recruits are an ever-present limitation
➢ Inducements
o Recruiter is very much like a marketer – inducements may be necessary to
stimulate a potential recruit’s interest
Document Summary
Gaining competitive advantage from human resources: the presence of highly skilled and motivated workers can be a real competitive advantage to firms, poorly qualified recruits often prove extremely costly. Reaping the benefits of diversity management: hiring from a larger, diverse pool of candidates offer a greater choice of job applicants to the firm, a diverse workforce also offers greater flexibility and additional capabilities in certain situations. It (cid:396)efle(cid:272)ts a(cid:374) o(cid:396)ga(cid:374)izatio(cid:374)"s (cid:272)o(cid:373)(cid:373)it(cid:373)e(cid:374)t to (cid:271)(cid:396)oade(cid:396) so(cid:272)ial goals a(cid:374)d p(cid:396)oje(cid:272)ts a better image of the firm to clients. Focusing on employee development: the strategic choice of internal vs. external recruitment has profound implications for an organization. Internal recruiting: advantages familiarity, improved morale and motivation, disadvantages i(cid:374)te(cid:396)(cid:374)al (cid:396)i(cid:448)al(cid:396)(cid:455), (cid:374)o (cid:862)(cid:374)e(cid:449) (cid:271)lood(cid:863, external recruiting, advantages new skills and knowledge, disadvantages more expensive in terms of cost and time. International hiring policies: require foreign job openings to be staffed with local citizens.
