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Administrative Studies
ADMS 2600
Paul Fairlie

HRM1283: Expanding The Talent Pool: Recruitment AnDonna Verity and Chris Carella LESSON 5: EXPANDING THE TALENT POOL: RECRUITMENT AND CAREERS INTRODUCTION The greatest competitive advantage that organizations have is their human resources and as a result, companies are paying more attention to building a strong and skilled workforceEffective recruitment considers both internal and external sources, and provides an adequate level of candidates to fill vacancies within the organization. We can see from the information on demographics that we looked at in an earlier chapter, that older workers (who are generally at the top of their skill level) are and will be leaving organizations in large numbers over the next 5 to 8 years. The demographic cohort that is next to the first wave of baby boomers is not nearly large enough to fill all of the vacancies created by departing boomers. The demand for skilled workers will therefore grow. Employers are even now experiencing an increased level of competition from other employers for skilled workers. In order to obtain the skilled workers need to support a business operation, employers cannot rely on more passive methods of recruitment such as unsolicited applications but must look for ways to broaden the talent pool from which they recruit. On the prospective employee side of the ledger, things are changing as well. People are accepting the fact they will not work for the same employer for the entire career, that job security is a thing of the past and that the onus is on them to manage their careers and seek opportunities (likely with a variety of employers) which will increase their marketability. In order to be successful, employees must take a more active role in their own career development to stay marketable. This “free agent” approach presents challenges to employers in terms of recruiting and retaining employees. Topics will include:  external recruitment • internal recruitment  identification of career opportunities through competency analysis, job progression and career pathing  determining employee career potential through performance appraisals, skill inventories and assessment centres  career development initiatives  mentoring  career networking 1 HRM1283: Expanding The Talent Pool: Recruitment And CaDonna Verity and Chris Carella  career development for women and minorities  making good use of older skilled workers  challenges facing dual career couples LEARNING OUTCOMES At the end of this module, you will be able to: 1. List and briefly describe the various sources of external recruitment 2. Identify 2 ways in which employers can determine the effectiveness of external recruitment 3. Briefly describe 5 methods of locating qualified internal candidates. 4. Describe at least 3 major ways in which an organization can develop its talent over time 5. Briefly describe how career pathing is established in an organization 6. Define the term “plateauing” and identify at last one way in which an employer might address it 7. List and describe at least four ways in which management can facilitate the career progression of women and minorities through an organization 8. Define dual career paths and identify the benefits of such an approach 9. Explain the value to the employer of tapping into the pool of older skilled workers. 10. Identify three ways in which organizations can support dual career couples TEXT READING: Expanding the Talent Pool: Recruitment and Careers Pages 171 - 230 LECTURE NOTES 1. RECRUITMENT Recruitment has to do with locating people and encouraging them to consider existing or future jobs within an organization. Recruitment is done both externally and internally. 2. EXTERNAL RECRUITMENT Regardless of the quality of human resources planning, the need to recruit externally always occurs. For example, entry-level positions do not lend 2 HRM1283: Expanding The Talent Pool: Recruitment And Careers Donna Verity and Chris Carella themselves to internal recruitment. Also, rapid growth in an organization makes it impossible to recruit internally. The outside sources used to recruit employees will vary with the type of job to be filled. For example, schools may provide entry-level employees but may not be a good source if more skilled applicants are needed. The condition of the labour market also has an impact on what sources are used to recruit staff. When unemployment is high, it may be possible for some organizations to rely on unsolicited resumes. When unemployment is low, an employer may need to invest substantial amounts in advertising for applicants and use a variety of sources including local employment agencies. It is interesting to note that different sources of external recruitment can result in quite different tenure and performance. For example, staff who were recruited through employee referrals or who were walk-ins tend to stay with the organization longer and have better performance overall. Sources of External Recruitment These include: • ads • unsolicited applications and resumes • employee referrals • executive search firms • educational institutions • professional organizations • unions • public, private and temporary employment agencies Improving the Effectiveness of External Recruitment Three ways to improve the chance or locating good candidates are: a. Yield Ratios – this is the percentage of applicants from a particular source (e.g., an employment agency) that make it to the next stage of the selection process. A yield ratio can be revised for each subsequent stage in the selection process to arrive at a final index for each source. Higher ratios indicate better recruiting sources. 3 HRM1283: Expanding The Talent Pool: Recruitment And CaDonna Verity and Chris Carella b. Costs of Recruitment The cost of recruitment is easy to calculate: SC = AC + AF + RB + NC H H AC = monthly advertising costs e.g. $28,000 AF = monthly agency fees e.g. $19,000 RB = referral bonuses paid e.g. $2,300) NC = no-cost hires such as walk-ins or nonprofit agencies e.g. $0 H = total hires e.g. 119 SC =$28,000 + $19,000 + $2300 + $0 H 119 = $49,300 119 = $414 (source cost of recruits per hire) Using information derived from calculating yield rations and the cost of recruitment, employers can make good decisions regarding controlling the cost of recruitment and increasing the effectiveness of recruitment efforts. c. Organizational Recruiters The employment section of the HR department often does recruiting in large organizations, while in smaller organizations, either an HR generalist or managers or supervisors can do the work. Research shows that recruiters who are enthusiastic, knowledgeable, friendly, and well prepared are likely to be more successful than those who lack these characteristics. d. Realistic Job Previews (RJP) Using realistic job previews can improve the effectiveness of recruiting. Basically an RJP gives a prospective employee the chance to see and understand the positive and negative aspects of a job so that they can determine if they actually want to continue with a selection process. RJPs are common in work environments like call centres so that potential candidates understand the complexity and pressure of this type of work. Knowing what to expect can result in lower turnover, realistic job expectations and increased job satisfaction. 4 HRM1283: Expanding The Talent Pool: Recruitment And CDonna Verity and Chris Carella 3. INTERNAL RECRUITMENT Why Recruit Internally? Organizations fill many of their openings through the transfer or promotion of present employees. You will recall that people are a competitive advantage for organizations, so it is important to ensure that they feel valued. When companies recruit internally, staff are motivated and employees fulfill their career development goals. It is also good business to recruit internally. It is cheaper and organizations already know the track record of their present employees. Methods of Locating Qualified Job Candidates There are 5 methods for identifying possible internal candidates to fill a position: a. Human Resource Information Systems (HRIS) Most organizations have a computerized data bank that contains the work history and qualifications of employees. These are similar to the skills and management inventories mentioned earlier. If an organization is going to use its HRIS, it is important that it be updated on a regular basis. b. Job Posting and Bidding Job posting programs are a logical part of an organization’s career development program. Posting and bidding are an important way of letting employees know of opportunities in the company. However, it is important for such a system to have credibility with staff. If they think that the posting is just a formality and results are predetermined, the system is not useful. The guidelines for setting up an online job posting system can be found on page 175. c. Identifying Talent Through Performance Appraisals By conducting performance appraisals, managers can do the following:  identify and encourage those who have the potential for movement into managerial or more advanced technical jobs  identify those who may benefit from a lateral move for either career enrichment or for reasons related to poor performance  identify those who should be demoted or terminated for performance reasons 5 HRM1283: Expanding The Talent Pool: Recruitment And CareerDonna Verity and Chris Carella d. Inventorying Management Talent Skill inventories can be used to capture information such as skills, interests, career goals, work experience, etc. that will assist management in supporting the development of employees and in succession planning for management positions. See figure 5.4 on p. 200 for some tell-tale signs that an organization may need to work harder at grooming internal staff. e. Using Assessment Centres Larger organizations have assessment centres that are used to evaluate an individual’s potential to successfully assume management positions. A variety of approaches may be used during the assessment including in-baskets, leaderless group discussion and role-plays. At the end of the process, the information is compiled and both the candidate and the organization are given feedback on the candidate’s strengths and weaknesses as they relate to management potential. Organizations may choose not to recruit from within when: • there is no internal supply i.e. employees lack the skills or abilities needed to perform higher-level jobs • there is a need for new ideas from those outside the organization • employers wish to avoid employee cloning or “inbreeding” 4. CAREER MANAGEMENT: DEVELOPING TALENT OVER TIME A. Matching Individual and Organizational Needs Career development is a dynamic process that matches the needs of the organization with the needs of employees. In order for career development programs to work effectively, they need to be integrated with other HR functions that are addressing the needs of the organization. Employees need to take charge of their careers and determine whether their relationship with their employer will bring them the experience they need to help them achieve their career goals. In order to do effective personal career planning, they need information about themselves and about the organization. They need to identify their knowledge base, their abilities, their interests, their skills and their values. They need information from the organization about strategic directions and immediate goals, HR planning, career pathing, their personal performance and what kinds of training and development an organization will offer. This will give employees an idea of what opportunities might exist in the organization in the 6 HRM1283: Expanding The Talent Pool: Recruitment And CareeDonna Verity and Chris Carella future, what support a company might provide to move ahead and what investment an employee might need to make on their own to achieve their career goals. An organization needs to make sure that it provides the kinds of information employees need for effective career planning. Revisions will take place over a period of time and both sides need to be willing to make changes when it comes to goal setting. B. Identifying Career Opportunities and Requirements Conducting a competency analysis can identify job opportunities and career paths for individuals and score jobs based on that analysis. Completion of a competency analysis allows organizations to establish job progressions or a hierarchy of jobs through which an employee can move. Job progression serves as the basis for career pathing. While career pathing is generally done for managerial, professional and technical occupations, it can be done for other types of jobs as well. As the text notes, career progression in an organization is seldom the result of sequential steps that are planned years ahead. Employees also need to be flexible and be prepared to capitalize on unanticipated opportunities. Some time ago, career progression was almost synonymous with promotion – a vertical movement up in an organization. However, with the flattening of management layers and the significant number of management positions that have been blocked by baby boomers who won’t be vacating their position until retirement, career progression more often includes transfer or lateral movement in an organization, as well as, demotions and exits. Where transfers, demotions and promotions also involve a geographic move either in or outside Canada, employers may support the employee’s move through relocation services which can include help in moving, selecting a home,, as well as, some kind of orientation to a new culture and language. In some instances, people may not see the future that they want with the current organization and elect to leave or, for a variety of reasons, an organization may force others to leave. Many larger organizations provide outplacement services to support terminated employees in their search for jobs elsewhere. In the past, career paths for technical positions often ended up in the management stream. However, there is now more recognition that a good technical person does not always make a good manager. Some companies develop dual career paths that allow technical people to advance in their technical career without moving them into the management stream. This includes establishing compensation that is equivalent to managers at different levels in the organization. Now that it is far less likely that a person will work for the same organization during their entire working life, we have more incidents of careers without boundaries where individuals 7 HRM1283: Expanding The Talent Pool: Recruitment AnDonna Verity and Chris Carella see themselves as “free agents” that develop a portfolio of employment opportunities by proactively moving from employer to employer simultaneously developing and utilizing their marketable skills… their employment security depends on their marketable skills, rather than their dedication to one organization over time. (Text, p. 208-209) Individuals usually go through predictable stages of career development. Their interests, knowledge, goals, experience and even values will change as they progress through th
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