Personnel Planning

and Recruiting
Introduction

The recruitment and selection process is a series of hurdles aimed at selecting

the best candidate for the job.
Workforce Planning and Forecasting
• is the process of deciding what positions the firm
will have to fill, and how to fill them.
Workforce Planning by Towers
Watson MAPS

Source: © Towers Watson 2012.

Used with permission.
Forecasting Personnel Needs
(Labor Demands) (1 of 2)
Forecasting the Supply of Outside
Candidates
Chart Depicting Process of HRP
 Process of HRP
1) Analyzing the organizational plans

2)Demand Forecasting

(Trying to predict future staffing needs)

Managerial Estimates

Statistical Techniques-

1)Ratio Trend Analysis

2)Econometric Models

Work-Study techniques

Regression Analysis

Delphi Method

3) Supply Forecasting

(Predicting worker flows and availabilities)

Internal

Succession or Replacement Charts

Skills Inventories (use of HRIS)/ Human Resource Audit

External

Labor Market Analysis

Managerial Estimates
The simplest approach to manpower forecasting is to
prepare estimates of future needs based on the individual opinions of departmental
or line managers.
Ratio analysis
 For every $20,000 in sales revenues, HR estimates the department will need one full-time
employee. If sales revenue predictions for the coming year are set at $200,000 the
department will need to maintain a staff equivalent to

10
Ratio Analysis
• Gross sales revenues for the past year were $75,000 and the clothing department
currently employs five full-time employees; If sales are expected to rise by $30,000 in
the coming year. How many more employees are required by the department next year.

The ratio is 75,000:5 or 15,000:1. This means that for every $15,000 in gross sales, the
department needs one employee.
Work Study technique
• This technique is suitable where the estimated work-load is easily measurable. This
technique is also known as 'work-load analysis'.

• Estimated total annual production = 300000 units

• Standard man-hours needed to produce each unit = 2 hrs

• Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs

• Work ability/contribution per employee in terms of man-hour = 1500 units per annum.

•  Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units

Regression and correlation
• This method seek to provide a measure of the extent to which movements in the values
of two or more variables - as for example labor input and sales are related (or
correlated) with each other. The aim is to predict changes in one variable by reference
to changes in the other or others, where the future value of these other (or
explanatory) variables is already postulated. Thus, if a company finds that the number of
hours put in by a group of workers bears a strong relationship to the amount of output
from the department, or sales, a knowledge of future output or sales levels should make
possible a forecast of future manpower requirements.

• Where only two variables are concerned the analysis is known as simple regression or
correlation. Where more than two variables are considered together, the analysis is
known as multiple regression
Econometric Models
• To portray the relationships between different types of manpower requirements and
measures of investment, profitability, sales, complexity and quality of the product,
any other factors which may be thought important in a particular company, in terms of a
single equation or more likely building a series of equations, which together described
the various relationships can be worked out with the help of econometric models. Very
often, such models are based on simple and multiple regression analysis
Delphi Method
Delphi Method

Step 1-Experts are identified to participate

Step 2-Each expert is asked to submit demand forecast and the basis of their assumption

Step 3- HR gathers the information and prepares the summary

Step 4 – Experts are provided with the summary and are given an opportunity to revise the
estimates based on it.

Step 5 – The above steps are repeated until the experts opinions converge
Forecasting the Supply of Inside
Candidates (2 of 2)
Personnel Replacement Charts

Figure 5-3 Personnel or

Management Replacement
Chart Showing Development
Needs of Potential Future
Divisional Vice Presidents
Markov Analysis
MARKOV ANALYSIS

Transition Matrices and Markov Analysis:

Markov analysis reflects the patterns in these human resource movements using
transition matrices. A transition probability matrix describes the probabilities of an
incumbent staying in his or her present job for the forecast time period (usually one year),
moving to another job position in the organization, or leaving the organization. When this
matrix is multiplied by the number of employees in each job at the beginning of a year, the
forecaster is easily able to identify the number of persons who will remain in the job at the
end of the year.
Determining Labor Surplus or Shortage
• Based on the forecasts for labor demand and supply, the planner can compare the
figures to determine whether there will be a shortage or surplus of labor for each job
category.

• Determining expected shortages and surpluses allows the organization to plan how to
address these challenges.
HR Audit
HR audit compares the past with the present employee specifications to identify trends and
patterns in multiple aspects including turnover, training, absenteeism and diversity.

"Human resource audits summarize the employee's skills and abilities and generate skills
and management inventories which, in turn, facilitate the preparation of a replacement chart
and replacement summaries." (When referring to non-managers, the audits result in skills
inventories. Audits of managers are called management inventories.
Skill inventory
• Skills Inventories: It is divided into four parts.

• Part I It identifies the employee's job title, experience, age, and previous jobs.

• Part II seeks information about skills, duties, responsibilities, and education of the worker.

• Part III. Performance, readiness for promotion, and any deficiencies are noted here. The
supervisor's signature helps ensure that the form's accuracy is reviewed by someone who knows
the employee better than the human resource specialists.

• Part IV is added as a final check for completeness and for the addition of recent employee
evaluations, which give more insight into past performance."
Management Inventories
• Management Inventories: It includes -

• - number of employees supervised;

- types of employees supervised;
- total budget managed;
- management training received;
- duties of subordinates;
- previous management duties.
HRIS
Predictive Workforce Monitoring
• Predicting Labor Needs

• Valero Energy created a “labor supply chain” for improving the efficiency of its workforce
planning, recruiting, and hiring process. It includes an analytic tool that predicts Valero’s
labor needs based on past trends. And, it includes computer screen “dashboards” that
show how components in the staffing chain, such as ads placed on job boards, are
performing according to cost, speed, and quality. Before implementing the labor supply
chain system, it took 41 pieces of paper to bring on board an employee and more than
120 days to fill a position; each hire cost about $12,000. The new system eliminated
most of the paper forms needed to hire an employee, time to fill fell below 40 days, and
cost per hire dropped to $2,300.
Why Effective Recruiting Is Important
• The need for effective recruiting
• Effective recruiting allows a company to fill open positions while their
competitors may have missed solid opportunities. If, for example, you fill
open positions 50% faster than industry average, you are more likely to
get better talent onboard more quickly.

• What makes recruiting a challenge?

• With respect to the role of the supervisor in recruiting, the HR manager
charged with filling an open position is seldom very familiar with the job
itself. Someone has to tell this person what the position really entails, and
what key things to look or watch out for. Only the position’s supervisor
can do this.
The Recruiting Yield Pyramid

FIGURE 5-5 Recruiting Yield

Pyramid
Internal Sources of Candidates
• Finding Internal Candidates
Job posting
means
publicizing the
open job to
employees
(usually by
literally posting
it on company
intranets or
bulletin
boards).
Promotion from Within
Outside Sources of Candidates
Informal Recruiting and the Hidden
Job Market
• Job openings aren’t publicized
• Jobs are created and become available when
employers come across the right candidates.

• one survey found that 28% of those surveyed found their most recent job through word-
of-mouth. Nineteen percent used online job boards, 16% direct approaches from
employers and employment services, 7% print ads, and only 1% social media sites
(although 22% used sites like LinkedIn to search for jobs
Recruiting via the Internet
Pros and Cons

• Pros – Online recruiting generates

more responses quicker and for a
longer time at less cost than just
about any other method. And,
because they are richer and more
comprehensive in describing the jobs,
Web-based ads have a stronger
effect on applicant attraction than do
printed ads.

• Cons – Online recruiting has two

potential problems. First, older people
and some minorities are less likely to
use the Internet, so online recruiting
may inadvertently exclude more older
applicants (and certain minorities).
Improving Performance Through
HRIS: Using Applicant Tracking
Applicant tracking systems (ATS) are online
systems that help employers attract, gather, screen,
compile, and manage applicants. They also provide
other services, including requisitions management
(for monitoring the firm’s open jobs), applicant data
collection (for scanning applicants’ data into the
system) and reporting (to create various recruiting-
related reports such as cost per hire and hire by
source). Most systems are from application service
providers (ASPs).
Improving Online Recruiting Effectiveness
The best Web ads don’t just transfer newspaper ads to the Web. As one specialist put it,
“Getting recruiters out of the ‘shrunken want ad mentality’ is a big problem.”

Ineffective Ad, Recycled Effective Web Ad

from Magazine to the Web (Space Not an Issue)
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Trends Shaping HR: Digital and
Social Media
Recruiters Use of Social Media

• Recruiters use social media recruiting in several ways:

1. They dig through social websites and competitors’ publications to find applicants who may not even be looking for
jobs.

2. They seek passive candidates (people not actively looking for jobs) by using social networking sites such as LinkedIn
Recruiter Lite (a premium service) to browse members’ résumés and to find such candidates.

• 3. Many firms use Twitter to announce job openings to job seekers who subscribe to their Twitter feeds.

4. Theladders.com’s Pipeline™ networking tool lets recruiters maintain a dialogue with prospective job seekers even
before they’re interested in seeking a job.

5. Others use Facebook’s friendfinding search function, and Twitter, to learn more about prospective and actual
candidates.

6. TalentBin searches sites such as Pinterest to find qualified tech workers.

7. Many employers have social media strategies and career pages that establish an online presence highlighting the
benefits of working for them.

8. Cloud-based applications such as Oracle Talent Acquisition Cloud enable employers to integrate recruiting with related
activities including requisitions management, applicant tracking, and interview management.
Advertising
• The Media

• Constructing (writing) The Ad

• Experienced advertisers use the guide AIDA

(attention, interest, desire, action) to construct
ads. First, you must attract attention to the ad,
or readers may ignore it. Phrases like “next
key player” helps. Next, develop interest in the
job. For instance, “are you looking to make an
impact?” Create desire by spotlighting words
such as travel or challenge. As an example,
having a graduate school nearby may appeal
to engineers and professional people. Finally,
the ad should prompt action with a statement
like “call today.”
Employment Agencies
• Public
• Nonprofit agencies
• Privately owned agencies
Recruiting Process Outsourcers

Are special vendors that handle all or most of an employer’s recruiting

needs. They usually sign short-term contracts with the employer, and
receive a monthly fee that varies with the amount of actual recruiting the
employer needs done.
Temporary Workers and Alternative
Staffing
• Alternative staffing-Employers increasingly
supplement their permanent workforces by hiring
contingent or temporary workers, often through
temporary help employment agencies. Also known
as part-time or just-in-time workers or contract
employees , the contingent workforce is big and
growing.
• Reason for using- short-term projects, saves
money, flexibility
• The Temp Agency – hire from agencies
• Temp Employee’s Concern
Trends Shaping HR: The New
Extended Workforce

Freelance Programmers, Designers or Marketers

• Many employers today build their staff wholly or in
part around an extended workforce consisting, for
instance, of freelance programmers, designers, or
marketers. Freelancer community websites enable
such employers to recruit the right freelance team
based on the freelancer’s reputation and work
product.
Offshoring and Outsourcing Jobs
Outsourcing – means having outside vendors supply services (such as benefits
management, market research, or manufacturing) that the company’s own
employees previously did in-house.

Offshoring – means having outside vendors or employees abroad supply services

that the company’s own employees previously did in-house.
Executive Recruiters also known as
headhunters
• are special employment agencies
employers retain to seek out top-
management talent for their clients.
The percentage of your firm’s
positions filled by these services
might be small. However, these jobs
include key executive and technical
positions. For executive positions,
headhunters may be your only
source of candidates. The employer
always pays the fees
Recruiting (1 of 2)
1. Referrals and Walk-ins
2. On-Demand Recruiting
Services-are recruiters
who are paid by the
hour or project, instead
of a percentage fee, to
support a specific
project.
3. College Recruiting
Internships
Recruiting (2 of 2)
4. Telecommuters
Telecommuters do all or
most of their work
remotely, often from
home, using information
technology.
5. Military Personnel
Returning and
discharged U.S. military
personnel provide an
excellent source of
trained and disciplined
recruits.
Recruiting a More Diverse Workforce (1 of 2)
1. Women
2. Single Parents
3. Older Workers
4. Minorities
5. The Disabled
Developing and Using Application
Forms (1 of 2)
• Purpose of Application Forms-collect verifiable
and fairly accurate historical data from the job
candidate
• Application Guidelines
Questions to review include those asking about
• Employment History
• Education
• Job Experience