Employment Agencies and Recruitment Sources

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What percentage of organizations utilize outside recruiting sources?

90%

85%

50%

75% (correct)

What is the primary goal of private employment agencies and executive search firms?

To promote nonprofit recruitment efforts

To generate profit from recruitment activities (correct)

To enhance public employment services

To provide free recruitment services

Which type of employment agency is operated by state and local public agencies?

Public employment agencies (correct)

Private employment agencies

Executive search firms

Recruitment firms

What distinguishes public employment agencies from private employment agencies?

Public employment agencies are strictly nonprofit Signup and view all the answers

Which of the following statements is true regarding the use of employment agencies?

Most organizations rely on a mix of private and public agencies. Signup and view all the answers

What characterizes noncompetitive promotions?

They focus on career progression based on experience. Signup and view all the answers

Which of the following examples illustrates competitive promotions?

Walmart employees vying for an assistant manager position. Signup and view all the answers

What is a potential result of a career progression promotion?

A change in title along with an increase in salary. Signup and view all the answers

How do competitive promotions differ from noncompetitive promotions?

Competitive promotions necessitate competition for a few roles. Signup and view all the answers

Which statement accurately describes the process of career progression in academic settings?

Faculty often progress from Assistant Professor to Associate Professor to Professor. Signup and view all the answers

How does the selection process information in job ads influence applicant behavior?

It increases the likelihood of applicants applying. Signup and view all the answers

What was a significant outcome of On-Line Software's use of creative advertising?

They tripled the number of applicants responding to their ad. Signup and view all the answers

What was the cost-effectiveness of Hyundai’s advertising campaign?

$5,000 for 2,000 responses. Signup and view all the answers

Which recruitment approach did FH Company take in their job advertisement?

They mocked potential applicants and the job itself. Signup and view all the answers

Why might the use of high-energy advertisements be appealing for organizations?

They generally attract a larger pool of candidates. Signup and view all the answers

Study Notes

Outside Recruiters

More than 75% of organizations use outside recruiting sources, including private employment agencies, public employment agencies, and executive search firms.
Private employment agencies and executive search firms are profit-driven organizations.
Public employment agencies, operated by state and local public agencies, are strictly nonprofit organizations.

Employment Agencies and Search Firms

Employment agencies are designed to make a profit from recruitment activities.
Executive Search Firms are designed to make a profit from recruitment activities.
Public employment agencies are operated by state and local public agencies and are strictly nonprofit.

Noncompetitive Promotions

Involve career progression positions where employees move up in levels of experience and knowledge.
promotions are unlimited and employees do not compete with one another.
Examples include:
- Engineer I to Engineer II to Engineer III in engineering
- Assistant Professor to Associate Professor to Professor in academia
Typically involve a change in title and salary increase.

Competitive Promotions

Several internal applicants compete (sometimes with external applicants) for a limited number of higher positions.
Example: 20 Walmart employees competing for an assistant manager position.

Advertising and Recruitment

Ads containing information about the selection process affect the probability of applicants applying for a job.
- Ads stating that an in-person interview will be used result in higher application rates than those stating GPA will be a factor.
Creative and high-energy ads can be significantly effective:
- On-Line Software tripled the number of applicants for secretarial positions using innovative advertising
- Hyundai’s innovative ad cost only $5,000 and had almost 2,000 responses to advertised positions.
Some organizations use humorous ads to attract unique candidates.

Employment Agencies

Employment Agencies specialize in finding jobs for applicants and finding applicants for organizations.
May charge either the company or the applicant when the applicant accepts the job.
- Fees range from 10% to 30% of the applicant's first-year salary.
Organizations using agencies that charge the applicant have lower risk, as they only pay if they find a qualified candidate.
Useful for overloaded HR departments or when organizations lack the expertise for selecting employees.
Disadvantage: companies lose control over their recruitment process and may end up with undesirable applicants.

Recruitment Methods

Structured Interviews:
- Using a structured interview and a panel of interviewers reduces bias in the process.
- Each competency is identified and measured, questions are developed.
- Panel members interview applicants and take notes to complete a standard rating sheet.
Employee Referrals:
- Employee referrals are more likely to be hired and have longer tenure than those recruited through other means.
- Referrals from successful employees have a greater likelihood of success than those from unsuccessful employees.
Blogging:
- Allows recruiters to informally discuss an organization’s career opportunities and corporate culture with potential applicants.
- Blogs usually include links to the organization’s official employment website.
Recruiting Videos:
- Posted on platforms like YouTube to provide applicants with information about an organization and its culture.

Job Boards

Private companies that list job openings for various organizations and candidate profiles.
Indeed (the largest internet recruiter) had over 36 million unique US visitors per month in 2013.
Larger organizations are more likely to use job boards than smaller ones.

Advantages of Job Boards

Cost: Cheaper than traditional newspaper ads, especially in densely populated areas.
Reach: Access to a larger pool of candidates.
Specificity: Ability to target specific skills and experience needed for the position.
Convenience: Easier and faster to post and update job advertisements.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the various types of employment agencies, including private, public, and executive search firms. It highlights the differences in profit orientation and the roles these organizations play in recruitment practices. Test your knowledge on how these agencies operate and their significance in the job market.