Human Resources Planning Process PDF

Recruitment and Selection Relevance: Workforce provides a unique competitive advantage since people can: - Add value - Be unique and difficult to replicate Human Resources Planning Process - Process of identifying the estimated supply and demand for different types of human resour...

Recruitment and Selection Relevance: Workforce provides a unique competitive advantage since people can: - Add value - Be unique and difficult to replicate Human Resources Planning Process - Process of identifying the estimated supply and demand for different types of human resources in the organization over some future period, based on analysis of the past and present`` Forecasts of labor Goal setting & strategic planning Implementation Evaluation 1. Forecasting - Determining the supply and demand of various types of human resources Quantitative forecasting: ➔ Trend analysis – historical data ➔ Ratio analysis – calculating proportions ➔ Regression analysis – statistical relationship between variables Qualitative forecasting: ➔ Expert knowledge 2. Goal setting & strategic planning - Speed → rate at which issue is addressed - Impact → extent to which employees are directly impacted by the actions Labor surplus – reduce number of employees ➔ Hiring freeze ➔ Early retirements → slow but friendly ➔ Downsizing Labor shortage – increase number of employees ➔ Overtime ➔ Outsourcing ➔ Hiring new workers 3. Implementation - Important to ensure the right steps were taken and a possible course correction can be made 4. Evaluation  - Allows to hold people accountable → critical to the success of any strategy The phases of strategic recruitment and selection typically include the following: 1. Business Strategy Review: Understanding the organization's goals, vision, and future direction to align recruitment efforts accordingly. 2. Workforce Planning: Assessing current workforce capabilities, forecasting future needs, and identifying gaps in skills or personnel that need to be filled to support the business strategy. 3. Job Analysis: Defining specific roles and responsibilities for the positions needed, including the skills, qualifications, and competencies required. 4. Recruitment: Attracting candidates through various channels, such as job postings, social media, recruitment agencies, and employee referrals, to build a pool of qualified applicants. 5. Selection: Evaluating candidates through assessments, interviews, and reference checks to identify the best fit for the organization. This phase may also include background checks and skills testing. 6. Onboarding: Integrating new hires into the organization, providing necessary training, and ensuring they understand the company culture and expectations. 7. Evaluation and Feedback: Assessing the effectiveness of the recruitment and selection process, gathering feedback, and making improvements for future hiring efforts. n summary: Reliability: Consistency of scores from different interviewers. Validity: Accuracy of the interview in predicting job performance or relevant outcomes. Recruitment The Job and the Organization - Attractiveness - Fit Balancing between the two Employer brand(ing) - Extent to which an organization is recognized in its own right as a desirable place to work by internal and external labor market  - Set of attributes and qualities that make an organization distinctive, promises a particular kind of employee experience, and appeals to those who thrive and perform to their best in its culture Effective employer branding - Perception of brand Positive ➔ Shaped by degree of familiarity with the organization and external ratings of their reputation Negative ➔ Shaped more by diffuse than explicit cues – explicit communication has limited effect ❖ Diffuse cues can include office appearance, how people dress, language they use ❖ Explicit cues are what the company says they are - Implications? ➔ Spending money on making big explicit statements is pointless if the diffuse cues about the brand say otherwise - Congruence between employee branding and: Corporate and organizational identity (internal) Current brand image (external) How do you recruit? - Low involvement strategies → known company with positive image Simple “help wanted” ad - High involvement strategies → proactively discuss reputation, values, and work culture Include employee testimonials and recruitment brochures Who recruits? - From an employer branding perspective, employee that interacts with the applicant is a recruiter - Applicant is more likely to accept the job when people are personable, informative, competent, trustworthy Diversifying your pool → McKinsey example (hiring from wider range of schools) Where to recruit? External recruitment → target people who are new (outside) to the organization and are looking for a job; Newspaper ads Online posting Campus recruiting  Search firms → incurs higher costs (may charge fees of 30% of base salary) Employment agencies - Effective external recruitment Wide nets Positions at top of organization Smaller pool of qualified candidates “Big fish” Hire recruitment specialists to find candidates Search consultants (headhunters) – seek candidates for specific positions Wide trawls Catch lots of applicants (wider pool) Advertising on online job board, or university recruitment service Internal recruitment → focus on advertising available positions to people associated with the organization; current and former employees and customers; Email lists / intranet → job posting internally; no diversity but high yield ratio Employee referral program → refer the job to other employees within their network; get rewarded if application is successful Hiring former employees → “boomerang employees”; familiar with organization Evaluating Recruitment Methods - Cost per hire → total recruiting costs divided by number of new hires - Time-to-fill rate (speed) → length of time it takes from the time a job opening is announced until someone starts the job - Diversity → extent to which your applicants are similar or different from current workforce - Yield ratio → number of realistically viable applicants divided by number of total applicants * Passive job seekers: people who are not actively on the job market, but who might be interested if the right job appeared Comparing internal and external recruiting How to find the best approach for selection? 3 Quality criteria: 1. Legality / Adverse impact - Adverse impact → when employment practices that appear neutral disproportionately impact members of a protected group, without business necessity; e.g. not hiring a pregnant woman The legal environment - Disparate treatment (direct discrimination) → results when the organization treats members of one demographic group differently from another; organization refuses to consider members from a group for a role they could perform, or applies different standards - Disparate impact (indirect discrimination) → when groups are unequally affected by the same treatment or standards Bias can be subtle and unconscious, with widespread consequences 2. Validity - Extent to which a selection method measures what it claims to measure Three common forms of validity 1. Criterion-related validity - Extent to which a test predicts on-the-job performance  - Standardized tests 2. Content validity - Extent to which a test directly samples the knowledge, skills, and behaviors needed to perform a job - No standardized tests; assessed by asking experts to make an informed judgment. 3. Construct validity - Evaluate the test by comparing it to other tests that are supposed to be measuring the same thing Makes sure the test measures what it claims to Reliability - Extent to which the test consistently measures what it sets out to measure – similar consistent results means a test is reliable * possible for a selection test to be reliable without being valid, however, not possible for it to be valid and not reliable Selection tools Job specific (better but expensive); - Employment interview → best - Job knowledge test - Biographical data - Work sample test ➔ Can take the form of an in-basket task – e.g. applicants respond to a series of emails, phone calls that they receive during a typical work day – a simulation – applicants perform sample tasks – or an audition – applicants perform actual job for a short period of time. ➔ Benefits; learn how applicant would perform under job conditions; realistic job preview ➔ Downside; expensive; lower criterion-related validity - Situational Judgment Tests (SJTs) Present applicants with brief but challenging work-related situations along with a menu of responses; applicants indicate how they would, or they should respond General - Cognitive ability tests ➔ Benefits; inexpensive; high criterion-related validity; strong predictors of job performance; hard to fake ➔ Downside; highest adverse impact tool (bias with race); not liked by applicants as these measure general abilities (not job specific) - Integrity tests - Personality based emotional intelligence (avoid) Extraversion: extent to which a person is talkative and social Agreeableness: extent to which a person is tolerant of other people and cooperative Conscientiousness: extent to which a person is dependable and organized Emotional stability: extent to which a person is secure and calm Openness to experience: extent to which a person is curious and insightful Interviews: effective interviews require structure → same questions in the same order and format Pre-screening interviews: narrow the pool to candidates with required skills Evaluative interviews: identify the most qualified applicants Contingent or follow-up interviews: take place right before an offer is made Successful interviews - Base interview guideline on insights from job analysis - Use a mixture of situational (client demands change deadline of a project, how would you react?), behavioral (how would you solve a conflict), and job-related questions - Evaluate candidate answers on anchored-rating scales - Document decisions and conversations Structured and unstructured interviews Structured → interview questions are based strictly on job-related criteria, and these same questions are asked to all candidates and answers are rated - Improves validity Unstructured → essentially in the form of a chat between the interviewer and the applicant. Different questions may be asked to different candidates Competency-based interviews → interviews are structured around job specific competencies that requires interviewees to describe specific tasks or situations. Work on belief that best indicator of future behavior is past behavior Interview innovations - Panel interviews: a group of interviewers take turns on asking questions to a single candidate - Team interviews: applicant is interviewed by team leaders and future coworkers