Human Resource Management
Session 3
RECRUITMENT
Alternatives to Recruitment
1. Outsourcing
2. Contingent Workers
3. Professional Employer Organizations
(PEO) - Employee Leasing
4. Overtime
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2. Contingent Workers
• Part-timers, temporaries, and independent
contractors – JIT workers
• Approximately 4% of the workers in the
United States do not have a contract for
on-going employment – number forecast to
increase
• Millions more are employed in alternative
work arrangements and serve as on-call
employees, temporary help agency
workers, and contract workers
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3. Professional Employer Organizations Employee Leasing
• Company that leases employees to other
businesses
• When decision is made to use PEO, company
releases its employees who are then hired by
PEO
• With PEO, leasing company is employees’
legal employer
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4. Overtime
• Most commonly used method of
meeting short-term fluctuations
in work volume
• Employer avoids recruitment,
selection, and training costs
• Employees gain from increased
income
• Potential problems
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Labour Market Conditions
• Demand for and supply of
specific skills
• Labour market for many
professional and technical
positions is truly global
• May dictate recruitment
strategy to be adopted
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Corporate Image
• A firm’s corporate image affects
recruitment
• Firms that have had adverse publicity
may find it more difficult to recruit good
people
• Converse also true
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Internal Environment of Recruitment
• HR Planning – it takes time to attract
prospective employees with the required
skills
• Promotion Policies – these can have a
significant impact on recruitment: are
positions to be filled from inside or outside
the organisation? Problems with respect to
‘relative ability’
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RECRUITMENT PROCESS
External Environment
Internal Environment
Human Resource Planning
Alternatives to Recruitment
Employee Requisition
Internal Sources
External Sources
Internal Methods
External Methods
Recruited Individuals
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Recruitment Process
1. Employee Requisition
•
Recruitment begins when a manager initiates
employee requisition
•
Document specifies job title, department, date
employee is needed for work, and other details
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Recruitment Process (cont.)
2. Recruitment Sources and Methods
•
Recruitment sources: Place where qualified
individuals are found
•
Recruitment methods: Means by which
potential employees can be attracted to firm
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Internal Recruitment Methods
• Employee databases
• Job Posting
• Job Bidding
• Internet
• Intranet
• Company’s Online Newsletter
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Job Posting and Job Bidding
• Job Posting - Procedure to inform
employees that job openings exist
• Job Bidding - Permit individuals in
organization who believe they possess
required qualifications to apply for
posted job
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Employee Referrals
• Number one way people find a job
through personal contact
• Referrals better qualified and stay
on job longer
• Recruit new hires through
employee-referral incentive
programs
• Employee enlistment - Unique
form of employee referral where
every employee becomes a
company recruiter
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External Recruitment Sources
1.
2.
3.
4.
5.
6.
7.
8.
High Schools and Vocational Schools
Community Colleges
Colleges and Universities
Competitors in the Labor Market
Former employees
Unemployed
Military Personnel
Self-employed Workers
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1. High Schools and Vocational Schools
• Clerical and other entry-level
employees
• Some companies work with
schools
• Companies may loan
employees to schools
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2. Community Colleges
• Sensitive to specific
employment needs in
local labor market
• Graduate highly soughtafter students with
marketable skills
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3. Colleges and Universities
• Professional, technical, and
management employees
• Placement directors,
faculty, and administrators
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5. Former Employees
• In past, punished with noreturn policies
• Smart employers try to get
their best ex-employees to
come back.
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6. Unemployed
• Qualified applicants become unemployed
every day
• Companies go out of business
• Cut back operations
• Merge with other firms
• Employees are fired
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7. Military Personnel
• Proven work history Flexible, motivated, drug
free
• Goal and team orientation
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8. Self-Employed Workers
Good source of potential recruits. They may
be ingenious and creative with expertise in
the following areas:
– Technical
– Professional
– Administrative
– Entrepreneurial
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Traditional External Recruitment
Methods
• Media Advertising
• Employment Agencies Private and Public
• Recruiters
• Job Fairs
• Executive Search Firms
• Internships
• Professional
Associations
• Unsolicited Applicants
• Open Houses
• Event Recruiting
• Sign-on Bonuses
• High-tech Competitions
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External Recruitment Methods
According to recent study the most popular external
recruitment methods were:
1. Newspaper and magazine advertisements: used by
89% of respondents – but declining due to internet.
Useful for filling local positions and enhancing
corporate brand in local market.
This method includes advertising in Professional and
Trade Journals. These can present problems:
publishing deadlines may cause delays between
placing advert and its subsequent appearance in an
issue
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External Recruitment Methods
2. Internet: used by 67% of participants taking part in
the survey. Allows the penetration of new markets
and develops a wider range of qualified applicants
• Perhaps biggest change in way
that organizations recruit
• Revolutionized way companies
recruit employees and job
seekers search and apply for jobs
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