Module 3 Planning and Recruiting PDF

**MODULE 3 PLANNING AND RECRUITING** **UNIT 1 WORKFORCE PLANNING** **Workforce Planning** - *\*before hiring* - "a.k.a manpower planning" - **[Getting the right number of people]** with the right competencies in the right jobs at the right time" (Sinclair, 2004). - **FORECASTS OF LABO...

**MODULE 3 PLANNING AND RECRUITING** **UNIT 1 WORKFORCE PLANNING** **Workforce Planning** - *\*before hiring* - "a.k.a manpower planning" - **[Getting the right number of people]** with the right competencies in the right jobs at the right time" (Sinclair, 2004). - **FORECASTS OF LABOR DEMAND** - **FORECASTS OF [LABOR SUPPLY]** *marami ka pa pwede makuha?* LOOK AT: - **SURPLUS/ SHORTAGE** -- *"kulang ba?"* (happens before hiring; what are your requirements) *\*surplus means: how to avoid a lot of employees* - **GOAL SETTING/ STRATEGIC PLANNING** - *Consider how many will retire/ possibilities of resignment* *(how to avoid or control resignment: CONTRACT)* - **PROGRAM IMPLEMENTATION/ EVALUATION** - *"sakto lang ba nakuha ko?"* **Two Components:** **1. Assessment** of the human resource capital requirements that takes into account the quality(capabilities) and quantity (headcount) of a workforce. **2. Forecasting** translates organization needs to specific numbers and types of talent needed in an organization in consideration of fact-based history and business objectives. - Forecasting is the heart of business planning, and human resources planning is no different. Knowing the staffing needs of your small business or organization defines your HR efforts, defining hiring goals for both number of workers and job functions. - Attempts to determine the supply and demand for various types of human resources to predict areas within the organization where there will be future labor shortages or surpluses (e.g. statistical planning models, historical records). **Forecasting demand for Labor:** There are many methods to be used but we will only discuss in this module the basic techniques. A. **Statistical Forecasting (Quantitative)** ** Trend analysis** -- using **[statistical models]** to predict labor demand. It looks at historical data for one factor of the business, often sales volume, and applies the staffing level from a previous period to suggest a forecast level. ** Ratio analysis** - sets a level of **[staffing based on a relationship]** between workers and a business factor. A sales department that assigns 20 accounts to each salesperson would, for instance, add an additional worker for each 20 new accounts forecast. **Regression analysis** follows similar principles using more **[sophisticated statistical calculations.]** \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- **Pros and Cons of Statistical Forecasting:** Building forecasts on previous data gives you a solid base for forecasting, whether for sales or productivity. New forecasts have a factual starting point, upon which you can apply statistical comparisons and analyses to provide insight into future business. Statistics work best over a long term, however, where cyclical variations average out and business conditions remain constant. Market conditions and industry trends can\'t be predicted mathematically, nor will statistical patterns remain identical from year to year. \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- B. **Judgmental Forecasting or Subjective Judgments (Qualitative)** - Judgment forecasting in a small business often comes down to the experience of the owner. Your expertise is crucial to all aspects of your business, and so your estimates of staff levels are based on your knowledge. As business grows, you may recognize general rules of thumb that others in your company can apply. When business warrants, group input may become valuable to balance needs from several perspectives. **Pros and Cons of Judgmental Forecasting** Judgmental forecasting relies on human experience to predict future business needs. This may be input from sales managers to identify business growth or from production managers predicting worker needs. Dependent on human input, judgmental forecasting can be both highly accurate and wildly off-base, depending on the bias of those giving input. However, human judgment matches the flexibility needed for short-term analysis, as well as the intuitive factors that industries in rapid change require. C. **Combining Techniques** In practice, forecasting your HR needs incorporates elements of both strategies. When you base data on a previous period and apply estimates for future performance, you work both statistically and judgmentally. A seasonal business may, for instance, suffer in one year due to a spell of bad weather, and the manager may adjust staffing, accounting for a return to normal weather. Likewise, applying the opinions of sales staff to statistical results may account for changes in demand from human factors. In the final analysis, the primary source of labor information comes from prices -- the wage rate set in the market, the prices of goods and services, and the cost of alternatives to manual labor. In this sense, it is the consumer who controls labor and not the employer. It is up to producers to predict and deploy demanded labor in a profitable way. **Sample Transition Matrix** **A transition matrix, or Markov matrix**, can be used to model the internal flow of human resources. These matrices simply show as probabilities the average rate of historical movement from one job to another. **Goal setting and strategic planning** The purpose of setting specific quantitative goals is **[to focus attention on the problem]** and provide a **[benchmark]** for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus. **Reducing Labor Surplus** 1. **Downsizing** - the **[planned elimination of large numbers]** of personnel designed to enhance organizational effectiveness. *[Reasons for downsizing: ]* **a. To reduce costs.** **c. Economic reasons.** **2. Early Retirement Program** **[Older workers are sometimes more costly]** than younger workers because of higher seniority, higher medical costs, and higher pension contributions. **3.Buyouts** - **[There are some companies simply converted early retirement programs into buyouts]** for specific workers that have nothing to do with age **Reducing Labor Shortage** 1. **[Employing Temporary Workers ]** It affords firms the flexibility needed to operate efficiently in the face of wings in the demands for goods and services. 2. **[Outsourcing ]** It is a logical choice when a firm simply does not have certain expertise and is not willing to invest time an effort into developing it. 3. **[Offshoring ]** A special case of outsourcing where the jobs that move actually leave one country and go to another. **UNIT 2 RECRUITMENT** **Recruitment** Attracting people with the **right qualifications** (as determined in the job analysis) **to apply for the job.** The practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees. Its aim is to ensure that the organization has a number of reasonably qualified applicants to choose from when vacancy occurs. **Steps:** **1. Job analysis** **2. Selection of testing methods** **3. Test validation** **4. Recruitment** **5. Screening** **6. Testing** **7. Selecting** **8. Hiring/reject** **Making Decisions in Recruitment:** To promote someone within the organization (internal recruitment) To hire someone outside the organization (external recruitment) e.g. newspaper ads, e- media, situation-wanted ads, campus recruitment, employment agencies, executive search firms, referrals, public employment agencies, job fairs. - To enhance employee morale and motivation, it is often good to give current employees an advantage in obtaining new internal positions. However, if an organization always promotes employees from within, it runs the risk of having a stale workforce that is devoid of the many ideas that new employees bring with them from their previous employment settings. - Heavy reliance on internal sources is thought to perpetuate the racial, gender, and age composition of the workforce Thus, a balance between promoting current employees and hiring outside applicants is needed. **Media Advertisements** **[1. Newspaper Ads]** - The most common method. - Many organizations use newspaper ads especially for local positions. - In 2002, recruiters rated newspaper advertising as one of the most effective avenues of applicant recruitment (Gere, Scarborough, & Collison, 2002). - But in 2007, recruiters considered print advertising as one of the least effective recruitment methods (SHRM, 2007). **[2. Electronic Media]** - The use television and radio to advertise job openings. **[3. Situation-Wanted Ads]** - Situation-wanted ads are placed by the applicant rather than by organizations. **[4. Point-of-Purchase Methods]** - Job vacancy notices are posted in places where customers or current employees are likely to see them: store windows, bulletin boards, restaurant placemats, and inside jitney (jeepney) **\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--** **Recruiters** 1. **Campus Recruiters** -- organizations send recruiters to college and university campuses to answer questions about themselves and interview students for available positions.  Virtual Job Fairs -- students and alumni can use the Web to "visit" with recruiters from hundreds of organizations at one time. 2. **Outside Recruiters** -- using outside recruiting sources as private employment agencies, public employment agencies, and executive search firms. **Employment Agencies and Search Firms** **[1. Employment Agencies]** - Charging either the company or the applicant when the applicant takes the job. **[2. Executive Search Firms or Head Hunters]** - The jobs they represent tend to be higher-paying, non-entry level positions such as executives, engineers, and computer programmers. - Reputable executive search firms always charge their fees to organizations rather than to applicants they place. - Note on pressure on applicants vs business side **[3. Public Employment Agencies]** - Designed primarily to help the unemployed find work, but they often offer services such as career advisement and resume preparation. **[4. Employee Referrals]** - Current employees recommend family members and friends for specific job openings. **[5. Direct Mail]** - Employer typically obtains a mailing list and sends wanted letters or brochures ton people through mail. - Useful for positions involving specialized skills. **[6. Internet]** **A. Employer-Based Websites** -- organization lists available job openings and provides information about itself and the minimum requirements needed to apply to a particular job. **B. Internet Recruiters** -- a private company whose website lists job openings for hundreds of organizations and resumes for thousands of applicants. **[7. Job Fairs]** - Designed to provide information in a personal fashion to as many applicants as possible. **[8. Incentives]** - Happens when unemployment rates are low, organizations take extra measures to recruit employees by offering incentives for employees to accept jobs. - Usually incentives come in the form of financial signing bonus, discounts on company products and services. **[9. Non-traditional Populations]** - Potential applicants from non-traditional populations. - Welfare recipients, church members, PWD's, Ex-convicts. **[10. Recruiting "Passive" Applicants]** - Build relationships with professional associations and recruiters attend their conferences, read their newsletters, and scan their websites to identify cream of the crop then convince these people to apply for the job. - - Check also passive applicant's social networking sites then determine if they might want to apply. **1. Remote interviewing** With remote interviewing, job interviews taking place on video conferencing platforms such as Zoom, Microsoft Teams or Cisco Webex, or specialized video interviewing tools, such as HireVue and Montage. The technology also facilitates collaborative hiring by making it easier for other departments to participate in the interview and selection process. Although remote interviewing has become a prominent trend, it isn't without its challenges. Presenting oneself in a professional manner can be difficult if it isn't possible to interview from a tidy or professional location, while the presence of children or pets at home can create a noisy and distracting environment for both interviewer and interviewee. Unforeseen technical challenges \-- even those that are out of a candidate's control \-- can cause candidates to become flustered and embarrassed, which ultimately can lead to recruiters being put off a candidate. Luckily, many of the videoconferencing technologies have introduced custom and blurred background options and their reliability has improved. **2. Candidate experience** Organizations that focus on building a positive experience and company culture for employees are found to be more successful and profitable. The same effects apply to the candidate experience. Upgrading career sites and using surveys to get feedback from candidates are two ways employers have improved their candidate experiences. **[Candidates want career sites that are easy to use and can help them quickly]** and easily set up a profile, search for jobs and apply. If these processes are not straightforward, job hunters will navigate to career sites that have been optimized in these ways. **[Candidates are also unlikely to recommend career sites they find to be awkward, slow and complicated.]** How companies communicate with candidates, organize and conduct interviews and execute follow-up processes shows candidates how professional an organization is and whether they would want to work there. The overall experience is crucial to **[not only attracting the best talent available but winning over that talent from your competitors and building a strong employer brand.]** **3. Diversity and inclusion** Diversity and inclusion is another area of growing focus for HR leaders that directly affects talent acquisition and recruitment. Statistics show that businesses with a diverse workforce and inclusive workplace have better productivity and profitability. Many organizations are looking to boost the diversity of their workforces and recruiters are responsible for identifying and including a wider diversity of candidates in the talent pool. **4. Contingent workers** Over the past few years, there has been an upward trend in using contingent workers and creating a hiring process expressly for them. Talent acquisition is different for contingent workers than it is for full-time employees, and organizations need to be set up to seek out, recruit and process these types of hires. A vendor management system can be a useful tool for managing procurement of contingent workers, but organizations should also be prepared to use their career site and social media marketing to appeal to contingent workers and set up different interview methods and vendor approval processes. **5. Analytics** The use of analytics across talent acquisition processes helps deliver data-driven decision-making and insights to identify areas of strength and weakness, as well as reduce the cost of talent acquisition practices, identify problems and blockages in the process, and fill vacant roles more quickly. Additionally, talent analytics can prove the effectiveness and ROI of your recruiting software investments. **6. Robotic process automation** Robotic process automation (RPA) is an increasingly popular technology that can automate manual, repetitive activities. RPA bots are capable of performing a vast array of recruiting tasks that normally take several hours. RPA performs operations on a bulk scale that doesn't require any level of human intervention. **7. Artificial intelligence** These range from smart talent platforms, such as Eightfold AI, to job-posting platforms, chatbots and natural language processing (NLP). AI is also used to minimize bias in candidate identification, selection and hiring. AI can perform intelligent activities, such as reviewing resumes for specific skills, characteristics or keywords. Combined with RPA, AI can add intelligence to high-volume tasks, helping recruiters review a large number of job boards, process documents and read and process data from those sources. Recruitment chatbots can help engage candidates and provide details about jobs while they search **8. Skills and competencies** Although skills and competencies have been used in talent management for quite some time, particularly for identifying and matching successors to key positions or identifying career paths, they haven't always been used effectively in talent acquisition. Particular skills and competencies can be critical for hiring the right employees. Having the right software to help you match the right candidates to the right jobs based on a set of skills and competencies will increase the success of your recruiting process. **Evaluating the Effectiveness of Recruitment Strategies** 1. One method to determine which recruitment source is the most appropriate to use for the company is to examine the **number of applicants** each recruitment source yields. 2. A second method for evaluating the success of a recruitment campaign is to consider the **cost per applicant**, which is determined by dividing the number of applicants by the amount spent for each strategy. 3. Consider the **cost per qualified applicant.** **Recruitment-Source Effectiveness** - **Internal vs. External Recruitment**: Employees recruited through internal sources (e.g., referrals) tend to have higher tenure and better performance compared to those recruited externally. - **Theories**: - **Accurate Information**: Rehires or referrals receive more accurate job information. - **Applicant Type**: Different sources attract different types of applicants. - **Interpersonal Attraction**: Referrals lead to greater tenure due to similarity-based attraction. **Realistic Job Previews (RJP)** - **Purpose**: Provides an honest assessment of the job to help applicants understand the role. - **Effectiveness**: Reduces turnover, increases job satisfaction and performance; oral previews at the job offer stage are more effective than written ones or earlier in the process. **Expectation-Lowering Procedure (ELP)** - **Goal**: Adjusts applicants\' expectations about job realities to prevent disillusionment. - **Example**: Clarifying that no job is perfect and discussing potential job frustrations. **Effective Employee Selection Techniques** - **Validity**: Selection methods should be valid (content, criterion, construct validity) and cost-effective. - **Legal Considerations**: Should minimize legal risks, privacy invasion, and adverse impact. **Employee Selection Model** - **Criteria**: Measures of job success. - **Predictors**: Variables about applicants related to job success. - **Correlation Coefficient**: Measures the relationship between predictors and criteria. **Content and Criterion Validity** - **Content Validity**: Based on job analysis, matching tasks with required KSAOs. - **Criterion Validity**: - **Concurrent**: Test scores of current employees compared with their performance. - **Predictive**: Test scores of applicants compared with future job performance. **Combining Predictors** - **Multiple Hurdles**: Minimum scores required on each predictor. - **Compensatory Approach**: High scores on some predictors can offset lower scores on others. **Employee Screening** - **Purpose**: Reviews applicant information (resumes, applications, tests) to select candidates. - **Evaluation of Written Materials**: Provides information on education, work history, and job performance, though limited by self-selection of sources. **Employee Testing** - **Purpose**: Measures characteristics predictive of job performance using standardized tests. - **Reliability**: Consistency of test results (test-retest, parallel forms, internal consistency). - **Validity**: Accuracy in measuring what is intended (content validity, criterion-related validity). - **Types**: Includes cognitive, mechanical, motor, job skills, personality, work sample, and situational judgment tests. **Validity Generalization and Test Utility** - **Validity Generalization**: Test's ability to predict performance in different settings. - **Test Utility**: Economic benefits gained from using screening tests. **Employment Interviews** - **Structured Interviews**: Consistent questions based on job analysis, uniform scoring. - **Challenges**: Interviews can be biased and have low reliability and validity. **[Structure Levels:]** - Slightly structured -- one criterion is met - Moderately structured -- two criteria are met - Highly structured -- all three criteria met [Unstructured] -- none of the criteria are met *(Applicants are not asked the same questions and which there is not standard scoring system to score the applicants.)* **Statistical Models** - **Multiple Regression**: Combines predictors statistically. - **Multiple Cut-off**: Minimum scores set for each predictor. - **Multiple Hurdle**: Sequential use of screening devices. **Unstructured Interviews:** 1. **Purpose and Focus**: Maintain the interview's purpose and keep questions relevant to the candidate\'s skills. 2. **Minimize Deviations**: Avoid straying from the topic; keep conversations minimal. 3. **Interviewer Skill**: Interviewers should be experienced and proficient to avoid stumbling during the interview. 4. **Training**: Proper training in conducting unstructured interviews is crucial due to their complexity. **Interview Biases:** 1. **Primacy Effect**: Early information weighs more heavily than later information. 2. **Contrast Effects**: An applicant's performance can be judged based on the performance of previous candidates. 3. **Negative Information Bias**: Negative feedback is often given more weight than positive feedback. 4. **Similarity Bias**: Candidates similar to the interviewer in attributes like personality or background may score higher. **Interview Styles:** - **One-on-One**: Single interviewer and single applicant. - **Serial**: A series of individual interviews. - **Return**: Similar to serial, but with intervals between interviews. - **Panel**: Multiple interviewers questioning one applicant simultaneously. - **Group**: Multiple applicants interviewed together. - **Serial-Panel-Group**: Combination of the above styles. **Interview Mediums:** - Face-to-Face - Telephone - Videoconference - Written **Types of Interview Questions:** - **Clarifier**: Clarify resume/application details. - **Disqualifier**: Determine if an applicant should be disqualified. - **Skill-Level Determiner**: Assess knowledge and skills. - **Past-Focused (Behavioral)**: Based on past experience (high predictor for high-level roles). - **Future-Focused (Situational)**: Hypothetical scenarios to gauge responses. - **Organizational Fit**: Assess compatibility with company culture. **Scoring Methods:** - **Right/Wrong Approach**: Answers are judged as correct or incorrect. - **Typical-Answer Approach**: Answers are compared to benchmark responses. - **Key-Issues Approach**: Points given for each relevant part of the answer. **Predicting Performance:** - **References**: Confirm resume details, check for disciplinary issues, and assess future performance. - **Problems**: Issues include leniency, limited knowledge of the applicant, and reliability. - **Applicant Information**: Training, education, job knowledge, abilities, skills, prior experience, and personality. **Rejecting Applicants:** - Send personalized, honest rejection letters. **Employee Placement:** - **Definition**: Assigning new employees to positions where they are likely to succeed. - **Principles**: 1. Match job requirements with qualifications; don't adjust the job to fit the person. 2. Assign jobs according to the employee's qualifications. 3. Inform employees about working conditions and job expectations. 4. Foster loyalty and cooperation. 5. Ensure placement is ready before the start date. 6. Be prepared for initial temporary placements and potential future changes. **Benefits of Proper Placement:** - Improves morale, utilizes employee capacity effectively, reduces turnover and absenteeism, and enhances overall performance.