MGMT 4943 - ORGANIZATIONAL STAFFING

Workforce planning
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Terms in this set (142)
Workforce planning
- the process of predicting an organization's future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organization's business strategy.
- is the foundation of strategic staffing because it identifies and addresses future challenges to a firm's ability to get the right talent in place at the right time to execute its business strategy.
Example - forming a new division in a company. And then beyond that, expanding that new division to support its growth
Workforce Planning Process
1. Identify business strategy.
2. Articulate the firm's talent philosophy and strategic staffing decisions.
3. Conduct a workforce analysis.
4. Develop and implement action plans.
5. Monitor, evaluate, and revise the forecasts and action plans.
Identify the org's business strategy
- An organization's strategic vision, mission, and strategy affects its current & future staffing requirements by influencing the types and number of EE's needed
Articulate the talent philosophy and strategic staffing decisions
- Will you promote from within? Are there certain skills that are required or will you train?
Conduct a workforce analysis
- forecast both labor demand and labor supply and identify any gaps in the two
Develop & implement action plans
- Identify gaps between labor deman and labor supply forecasts. Can include both short & long term recruiting, retention, compensation, succession management, and training and development plans
Monitor, evaluate, and revise the forecasts and action plans
- evaluate how effective the workforce plan has been in terms of meeting the company's recruiting and hiring goals
Forecasting
• Given the uncertainty of forecasts, construct estimates as a range, providing low, probable, and high estimates
• Recalculate estimates as changes happen in the organization's internal and external environments and as assumptions and expectations change
Forecasting Business Activity
• An organization's product demand directly affects its need for labor
• Locate reliable, high-quality information sources within and outside of the organization to forecast business activity
Types of business activity forecasts (external):
- Seasonal
- Interest rate
- Currency exchange
- Competitors
- Industry and economic
- Legal
Seasonal- consider UPS during holiday season or landscaping services during spring and summer months. Not all companies can predict seasonality but the better an organization can anticipate the changes, the better it will be able to have an appropriate workforce in placeInterest rate forecasts- May project the likelihood that an organization will need or be able to build ne plans and increase production. Higher interest rates discourage capital investment by making it more expensive for organizations to borrow money to fund their expansion plans. Product demand tends to decline when interest rates rise. When interest rates fall, product demand rises. Rising interest rates generally suggest that the demand for labor will rise.Currency exchange rate forecasts- exchange rates can be volatile and difficult to predict in the long term. The more stable the exchange rate, the more accurate and useful the firm's product demand and labor forecasts will be.Competition based forecasts- new competitors leads to customers having greater product choices which tend to dilute(weakened) the demand for any one company's products or services.Industry & economic forecasts- The Conference Board's Index of Leading Indicators is often used for economic activity over three to 6 months, presents a relatively broad picture of the economy. The index can help identify trends leading to economic recessions or recoveries. Additional economic indicators include gross domestic product (GDP), the business inventories and sales ratio tracked by the Department of Commerce and the Purchasing Managers Index issued monthly by the Institute for Supply Management.Legal factors- changes in legislation. Example, Obamacare & the need for employers to keep employment under 50.Forecasting Labor DemandIt is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand. • An organization's demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy.Business needs can include things like:- Achieving the staffing levels necessary for generating a given amount of revenue within a particular period of time (e.g., salesperson staffing levels necessary to generate $5 million of revenue within 6 months) - Increasing staffing levels to execute a growth strategy - Decreasing staffing levels during a restructuring - Obtaining the new talents needed to create new products or provide different servicesInternal Forecasting Tools - Four of the most common ways to forecast labor demand:• Ratio Analysis • Scatter Plots • Trend Analysis • Judgmental ForecastingRatio Analysis• Assumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics - Using historical patterns within the firm helps to establish a reasonable range for these ratios. - This process can be used for either justifying new positions or demonstrating the need for layoffs. • Need consistent historical trends to calculate ratiosStaffing ratio- is a mathematical way of calculating the number of employees a firm needs to produce certain levels of output Other ratios that can be used in estimating target HC levels - Revenue per employee Managers to employees - Inventory levels to employees - Store size to employees - Number of customers or customer order to employees - Labor costs to all production costs - Percentage utilization of production capacity to employeesExample Ratio analysis uses•historic information to project future staffing needs. The ratio establishes a relationship between the number of employees needed and another factor such as past staffing levels or past gross sales revenues. • Assume HR is forecasting demand for the clothing department of a retail department store. Gross sales revenues for the past year were $75,000 and the clothing department currently employs five full-time employees; 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. Sales are expected to rise by $30,000 in the coming year. • How many sales employees will they need to hire?Scatter Plots• Show graphically how two different variables (e.g., revenue and staffing levels) are related • Scatter plots help determine if a factor has historically been related to staffing levels - Example - an ambulance service will support new housing developments & the organization wants to forecast how many ambulance drivers will be needed. Assume a population of 44,000. • Staffing expert collects data from 6 other ambulance services in the state to learn the number of ambulance drivers as well as population in their service areaTrend Analysis• Uses past employment patterns to predict future needs. - For example, if a company has been growing five percent annually for the last eight years, it might assume that it will experience the same five percent annual growth for the next few years. • Any employment trends that are likely to continue can be useful in forecasting labor demand. • Because so many factors can also affect staffing needs, including competition, the economic environment, and changes in how the company gets its work done (e.g., automation might improve productivity), trend analysis is rarely used by itself in making labor demand forecasts. Example - Valero Energy Corp put 5 years of historical company records into a database, the company developed a series of mathematical algorithms to do a trend analysis. The analysis allowed the company to predict its turnover by location, position type, salary, employee tenure and division.Productivity Ratio• The headcount (HC) or cost of direct labor divided by the cost of indirect labor • Work done by direct labor is considered value-adding • Direct labor • Indirect laborDirect labor- Workers who actually create products or provide servicesIndirect labor- Workers who do not actually touch the company's products but who support the direct laborJudgmental Forecasting• Relies on the experience and insights of people in the organization to predict future needs. - top-down -bottom-up - Managers may have intel about upcoming retirements or other intentions of their staff that allows them to forecast staffing needs.Top-down• organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be. Top managers' estimates then become staffing goals for the lower levels in the organization. - In some cases, particularly when companies are facing financial difficulties or restructuring, budgets may determine these headcount numbers.Bottom-upuses the input of lower-level managers in estimating staffing requirements. Based on supervisors' understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy. The estimates are consolidated and modified as they move up the organization's hierarchy until top management formalizes the company's estimate of its future staffing needs into staffing goals.Return on Investment Analysis• Estimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire. • First assign dollar values to the benefits you expect from a new hire for the period of time most appropriate for the position and your organization. - How much revenue during the period will be directly generated as a result of this position? - How much money per period will this position save your organization in terms of increased efficiency, and how much value will it add in greater productivity, quality, or customer service? • Then compare this amount with the cost of adding the new hire. - Compute the cost of hiring, including advertising the position, interviewing, screening, travel, relocation, and training expenses. - Add this to the compensation for the new position during the time period to get your initial investment. • Compare this amount with the value your company will gain to determine the return on the investment of adding the new position.Return on Investment Analysis Example• A store's new furniture salespeople generate an average of $60,000 profit their first year • The reduced workload on the rest of the staff improves their efficiency and ability to provide high quality customer service by 5%, which is worth an additional $15,000 to the company • If the cost of hiring & training a new salesperson is @ $7,000, and the salary is $25,000 before commissions, the ROI of hiring an additional salesperson is predicted to be 234%Forecasting Labor Supply• Combining current staffing levels with anticipated staffing gains and losses results in an estimate of the supply of labor for the target position at a certain point in the future. - Anticipated gains and losses can be based on historical data combined with managerial estimates of future changes.External Labor Marketconsists of people who do not currently work for a firm.internal labor marketconsists of the firm's current employees.Forecasting the Internal Labor Market• Estimate the competency levels and number of employees likely to be working for the company at the end of the forecasting period. • To forecast internal talent resources for a position, subtract anticipated losses from the number of employees in the target position at the beginning of the forecasting period. - Losses may be due to promotions, demotions, transfers, retirements, resignations, etc. When workers are harder to find, more employees than usual may leave the organization to pursue other opportunities than leave during looser labor markets when jobs are less plentiful. - Anticipated gains from transfers, promotions, and demotions are then added to the internal labor supply forecast.Transition Analysis• A quantitative technique used to analyze internal labor markets and forecast internal labor supply. • A simple but often effective technique for analyzing an organization's internal labor market, which can be useful in answering recruits' questions about promotion paths and the likelihood of promotions as well as in workforce planning. • Can also forecast the number of people who currently work for the organization likely to still be employed in various positions at some point in the future. • The analysis is best performed for a limited number of jobs at a time to keep it easily interpretable.Transition Analysis Process- promotions - target position - feederTalent inventoriessummarize each employee's skills, competencies, and qualifications. This will also include things like education, training, performance reviews and chances of being promotedReplacement chartsvisually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs • Employee surveys to identify the potential for increased turnover in the future • Labor supply chain management: The basic foundation of any supply chain model is to have the right product, in the right volume, in the right place, at the right time, with the right quality - Businesses use multiple suppliers so that they can quickly change and scale to meet changing business needs. - Supply chain management principles of inventory management, planning, and optimization can be easily applied to people. - Software and services allow companies to match employees' expertise and knowledge to business needs and deploy the right people just as assets would be deployed in a supply chain.Replacement ChartForecasting the External Labor Market - Organizations monitor the external labor market in two ways:- The first is through their own observations and experiences. For example, are the quality and quantity of applicants responding to job announcements improving or getting worse? - The second way is by monitoring labor market statistics generated by others. • U.S. Bureau of Labor Statistics (BLS) and othersResolving Labor Supply/Demand Gaps• Action plans proactively address an anticipated surplus or shortage of employees. • Understanding whether a shortage or surplus of applicants is the result of temporary factors or whether it reflects a trend that is likely to continue is important because different staffing strategies are appropriate for each.Temporary Talent Shortage• Because higher salaries cost the organization more money throughout the new hire's tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. • Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified. - Neither of these strategies is guaranteed to work - More expensive recruiting methods may quickly drain a recruiting budget without resulting in an acceptable hire - Lowering hiring standards decreases the quality of the company's workforce, which may not be acceptable • Options include offering hiring incentives such as sign-on bonuses and retention bonuses such as stock options or cash to be paid after the employee has successfully worked with the company for a certain period of time.Persistent Talent Shortage• If it is likely that a worker shortage will last a number of years, an organization must: - Reduce its demand for the talents that will be in short supply - By increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed. - And/or increase the supply of the qualifications it needs - This is not a fast or practical solution for most organizations.Temporary Employee Surplus• If slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the first to be let go when business slows can help to provide a buffer around key permanent workers. • Temporary layoffs may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process. - Losing the investments the organization has already made in hiring and training the laid off workers can also be costly. • Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expanding areas of the business.Permanent Employee Surplus• Early retirement incentives, layoffs, and not filling vacated positions can all reduce an employer's headcount, but with a cost. - Early retirement programs can result in the most skilled and productive employees leaving the organization. - Layoffs can damage workforce morale and hurt the firm's reputation as an employer. - Not filling open positions can leave key positions in the organization vacant or understaffed. • Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs. • Retraining employees to fill other jobs in the firm can help bring labor supply and demand into balance.Staffing Planning - The three questions that need to be answered are:1. How many people should we recruit? • Staffing yields: the proportion of applicants moving from one stage of the hiring process to the next • Hiring yields: the percent of applicants ultimately hired (also called selection ratios) 2. What resources do we need? • Workload-driven forecasting: based on historical data on the average number of hires typically made per recruiter • Staffing efficiency driven forecasting: the total cost associated with the compensation of the newly hired employee 3. How much time will it take to hire? • Continuous recruiting can shorten the hiring timeline • Batch recruiting: recruiting a new applicant pool each timeStaffing YieldsHiring TimelineIndustry Example- job opening & posting, candidate sourcing & screening ( 2-8 weeks) - interview & selection, offer (1-2 weeks) - candidate processing, on-boarding (4 weeks)external cost per hire1. Agency or search firm fees 2. Employee referral bonuses 3. Company recruiter costs 4. Candidate travel costs 5. Relocation costs 6. Job advertising expenses. 7. Internal recruiter costs 8. The cost of any assessmentsInternal Cost Per HireBecause an internal hire already works for the employer, many of the hiring costs are reduced. Some of the primary costs of an internal hire are: 1. Candidate travel costs 2. Relocation costs 3. Internal recruiter costs 4. The cost of any assessments used to evaluate the candidatesLeading Indicators of Ethical Issues• Conflicting goals • Rewarding results rather than decisions • No code of ethics • No ethics reporting system or means of anonymously reporting ethical concerns • No ethics training • Ethics not considered in hiring, promotions, performance reviews, or compensation • Unethical behavior going unpunishedAnalyticsare a core element of staffing forecasting and planning - Evaluate present talent situation - Understand trends - Forecast the futureTechnologyhas improved the staffing forecasting and planning process - It is now faster - It is more accurate - Demand forecasting predicts how busy an organization will be at any future moment and how many employees it will need to manage the resulting workflow Spreadsheets and cloud applications facilitate complex demand forecasts and scheduling for employers of all sizesSourcing- Identifying and locating high potential recruits • Involves the analysis of different possible sources of recruits to identify those best able to meet the firm's staffing goals - Internal recruiting source: - External recruiting source:Internal recruiting sourcelocates current employees who would be good fits with another positionExternal recruiting sourcetargets people outside the organizationTypes of Job Seekers(1) Active job seekers (2) Semi-passive job seekers (3) passive job seekersActive job seekerspeople who need a job and are actively looking for information about job openingsSemi-passive job seekerspeople who are interested in a new position but only occasionally look actively for onePassive job seekerscurrently employed and are not actively seeking another job, but could be tempted by the right opportunity - Many high-quality candidates are usually in this group, although it may be difficult to find them and interest them in your job opportunityWhat Makes a Recruiting Source Effective• Faster or cheaper • Better at • Better forBetter at• acquiring good fits with the culture and work processes • acquiring high-quality people • acquiring people less likely to leave • acquiring people with previous work experience • generating large numbers of hires • generating professional hiresBetter for• hiring in noncore competency areas of the company • finding diverse applicants • finding people not actively looking for a jobrecruiting sourceis effective if it helps a company meet its staffing goals for the position being filled. These staffing goals might include: speed, cost, candidate and new hire quality.Recruiting SourcesOrganizations usually try to fill positions internally first. Both internal & external recruiting have pro's & con's Internal candidates that don't get promoted may leave the organization. You may also limit new ideas and insights by promoting from within. Typically external recruiting takes longer and costs more.Internal Recruiting Sources- Succession management - Talent inventories - Employee development - Leadership development - Job posting systems - Job slottingSuccession managementongoing process of recruiting, evaluating, developing, and preparing employees to assume other positions in the firm in the futureTalent inventoriesmanual or computerized records of employees' past performance, education, experience, promotability, etc.Employee developmenttraining employees to prepare them to assume other roles in the firmLeadership developmenta training & development program designed to improve employees' leadership skillsJob posting systemspublicize open jobs to employees - Fast and cheap but not all qualified employees may look at the postings - Often combined with qualifications inventories to reduce the chance of missing a qualified employeeJob slottinga manager identifies a preferred candidate and "slots" them into an open job without opening the position to other interested employees - Increases the risk of discriminationEmployee Referralsusually a source of high quality leads - Nepotism: allowing multiple family members to work at the companyIn-house sourcers:• Sourcer - uses analytical skills to mine social media, competitor web pages, organizational charts and other sources to identify talent • Recruiter - Develops relationships with targeted people to create interest and engage active and passive job seekers to get them to apply • In-house sourcer - employees who relay on their own contacts and research and the organization's database of potential applicants to find recruits • Written advertisements (not as common as online but still exist)External Recruiting Sources- Employee referrals - In-house sourcers - Job fairs - Trade fairs - Observation - Résumé databases - Career sitesObservationwatching people working in similar jobsTrade fairsevents at which people from a particular industry gather to learn about current topics and products in their fieldJob fairssourcing and recruiting events at which multiple employers and recruits meetRésumé databasessearchable collections of prescreened résumés and applications submitted to the employerCareer sitespages on an employer's website dedicated to jobs and careers within the companyExternal Recruiting Sources - Social media- is often used to research companies and look for jobs - Networking leverages personal connections • LinkedIn has become one of the most popular ways to source and recruit both active and passive candidates - Boolean searching is used to run advanced searches using specific search syntax • Internet job boards • Search, contingency & retainer firms • Contingency firms present candidates to multiple orgs and charge a fee when one starts the job • Retainer firms charge employers a fixed fee in advance of the placement • Professional associations • State employment agenciesExternal Recruiting Sources are• Military transition services • Acquisitions and mergers • Lateral hiring or "poaching" hires talent away from competitors • Web crawlers • Schools • Previous employees ("boomerang" hires) • People returning to the workforce • Non-U.S. citizens - H-1B visa program requires that an employer attempt to fill a job with an American citizen before being granted a visa for a non-U.S. worker - Offshore labor: employees living and working in other, usually lower-cost, countries • Walk-ins • Creative sourcing • Speed hiring, recruiting at their own hosted events, talent competitions, etc. • Outsourcing the tasks to other firms or individualsSourcing Plans• Prioritizes which recruiting sources should be used to staff a given position to best meet staffing goals that include the cost, speed, and quality of new hires • Profile desirable employees • Analyze the effectiveness of different recruiting sources • Utilize different recruiting sources based on the org's staffing goals & EE profiles1. Profile desirable employees to identify promising sources- Identify what desirable talent and successful current employees in targeted jobs like to do and how you might reach them if you were to try to recruit them now - Using surveys or focus groups, ask where do they like to go, what media do they use, what organizations do they belong to, and what events do they attend? What web sites and other sources would they use if they were to look for another job? How did they first learn of their first job in your firm?2. Perform ongoing recruiting source effectiveness analyses by tracking- Where applicants discovered the vacancy( opening) - Where top candidates discovered the vacancy - How many recruits each source generated - What quality of recruits each source generated, and what was the range of recruit quality from each source - What were the demographics of the recruits from each source - Yield ratios for each source - Conversion rates from applicant to hire for each source - Absence and turnover rates by source - Job performance by source - Promotion rates by source - Data relevant to other staffing goalsRecruiting Source Analysis- Applicant flows - Recruiting yield analysisRecruiting yield analysistracks the recruiting source(s) that produced each applicant and evaluates each on the number and proportion of qualified applicants generatedSelection ratioswhat proportion of applicants from each source are hired3. Prioritize recruiting sources based on staffing goals and employee profilesPrioritize recruiting sources based on staffing goals and the results of the recruiting source effectiveness analysisSourcing Nontraditional Applicants• Workers with disabilities • Neurodiversity - differences based on neurology, including dyslexia, autistic spectrum, attention deficit hyperactivity disorder, dyspraxia, etc. • Veterans • Older workers • Welfare recipientsGlobal sourcingsourcing of EE's on a global basis. Requires planning, developing, implementing, and evaluating staffing initiatives on worldwide basis to ensure goals are being metIntegrationthe coordination of a single global staffing strategy with the organization retaining adequate controls over local operationsDifferentiationthe need to acknowledge and respect the diversity of local country cultures and expectations and thus giving some latitude to local managers to tailor the strategy to meet the needs of their locationLocal employment agenciescan be a useful source of guidance in terms of information on the characteristics of the local labor forceCultural awarenessis an understanding of how our own culture can influence our behaviors, assumptions, and values that is important when staffing globallyGeographic Targetingsourcing recruits based on where they live - Can focus on the local labor market - Can focus on labor markets in locations similar to the organization's location in terms of city size, cost of living, climate, recreational opportunities, etc. - Can target individuals likely to find the firm's location attractive - Lower-level positions in an organization are typically filled from the local labor market, and the geographic boundaries tend to widen as the position moves up the organization's hierarchyGeofencinguses GPS and radio frequency identification to set up a virtual, wireless perimeter that only allows people in that area to receive messages or job adsTechnology• Digital, video, and artificial intelligence have transformed how sourcers find job seekers • Strategic sourcing is facilitated by the use of artificial intelligence and algorithms that analyze existing talent data, help clarify the characteristics of a good hire, and inform automated tools that can identify signals suggesting that talent might be open to recruiting based on social media posts or online profile changes • Technology can also automate some routine sourcing functionsWhat is recruiting?- Activities that convert the leads generated during sourcing into job applicants, generate interest in a company and its jobs, and persuade candidates to accept extended job offers - Can be done by recruiters, hiring managers, or employeesApplicant Reactions• An important goal of recruitment is to give every applicant a positive feeling about the organization • Organizational and individual perspectives are both relevant • Effective recruitment requires considering the applicant's perspective and needs • Both parties are pursuing a business relationshipThree Types of Fairness1. Distributive 2. Procedural 3. InteractionalDistributiveperceived fairness of the outcome - Did you get the job or promotion?Proceduralbeliefs that the policies and procedures that resulted in the hiring or promotion decision were fair - Respect applicants' privacy, avoid delays, use job-related assessments, give fair opportunity to performInteractional• fairness of the interpersonal treatment and amount of information received during the hiring process - Honesty, respect, recruiter warmth, and informativenessSpillover Effectsindirect or unintended consequences of an action • Most job candidates do not get the job or promotion - so what happens next? - If they were forced to wait extended periods for pre-scheduled interviews, met unprepared and distracted interviewers, found the selection process unfair, and were not made to feel important or welcome, will they still buy your products? Apply for another job with you in the future? Tell their friends how impressed they were with your firm and influence them to become customers or applicants? • What if they were greeted by name, given a quick tour of the facility, treated fairly and respectfully, interviewed on time by prepared and enthusiastic employees, and heard from the company when it said it would follow up? • Many firms treat job candidates as if they should feel privileged the firm is even considering them for a position, and treat rejected candidates as if that was the end of their relationship. This is simply not the case.Recruitment Continues- Until either the organization (or the candidate) removes the person from further consideration, or the individual is hired and reports for work, it is the job of recruiting to keep him or her interested in pursuing the opportunity with the organization. - Recruiters should help candidates continually feel excited about the opportunity and ultimately be willing to accept a reasonable job offer. - The effects of an organization's actions and reputation on applicant attraction begin before an organization ever advertises an open position and continue after the position is filled.The Candidate Experience- How job applicants experience all of their recruiting and hiring interactions and experiences with an employer • Best practices: • Keep the application process simple • Offer candidates multiple communication channels • Minimize the time it takes to make a hiring decision • Keep candidates informed during the processImagegeneral impressions of an organization or its productsBrandsymbolic picture of all the information connected to a company or its products, including its imageEmployer value proposition (EVP):a brand that applies to the organization as an employerOrganizational Imagea general impression based on both feelings and facts. - What comes to mind when you think of Nieman-Marcus, Goldman Sachs, and Tiffany's? - The more favorable a company's image, the more people are likely to consider the organization attractive as an employer and state a willingness to respond to its recruitment advertisements. - Organizational images differ across subgroups of individuals.Employer Imageattitudes toward and perceptions of the organization as an employer - Employer brands reinforce the employer image • How an organization is reputed to treat applicants and employees is likely to have a particularly strong effect on applicant attraction. • Newer or lesser-known organizations with weak or nonexistent images among job seekers may have greater difficulty attracting recruits using passive recruitment sources such as newspaper advertisements than organizations that are more widely known and favorably thought of.Nature of the Recruiting Message• Different types of recruiting materials attract the attention of different job seekers and induce them to apply • Message content should appeal to the goals and values of the targeted recruits • Non-compensatory screening factors should be communicated to facilitate self-selection - The job's location, the type of job, pay, etc.EVP SlogansDeveloping an EVP1. Analyze the current perceptions of your target audience 2. Align your EVP with the firm's policies, practices, culture, and values 3. Communicate your story clearly and consistently 4. Measure and improve your EVP by establishing appropriate metrics and periodically repeating step one (analyzing)Developing the Recruiting Message• The recruiting message influences the number and types of people who apply • Novelty seems to help; what works best can change quickly • Appeal to the goals and values of targeted talent pool • Communicate the employer value proposition • Including information about the job's location, requirements, and salary can save the time and expense of processing and screening applicants who are not likely to accept job offersRealistic Job Previewsprovide both positive and potentially negative information to job candidates. • Rather than trying to sell the job and company by presenting the job opportunity in the most positive light, realistic job previews strive to present an honest and accurate picture. • The goal is not to deter candidates by focusing on factors that might be perceived negatively, but to provide objective information that job candidates can use to self-assess their fit with the job and organization.Manufacturing lineproviding a tour of the facilityDrilling righot, cold, weather, etcSelf-Assessment Tools• Perceiving a good fit with a company's culture and job opportunities improves a job seeker's attraction to the organization • Bad fits self-select out • Self-assessments should be anonymous and not used for selection • Online self-assessmentsWhat Makes Recruiters More Effective? • Desirable Recruiter Characteristics- Familiarity with the job & organization - Good listening skills - Good communication skills - Intelligence - Self-confidence - Extroversion - Enthusiasm about the job & the company - Trustworthiness - CredibilitySignalingBecause people often have limited information about organizations and jobs, in the absence of objective information they may rely on the recruiter's traits and behaviors as signals of aspects of both the company and the job opportunity. • A CEO involved in recruiting may signal a job's importance • A demographic minority recruiter may signal the firm's demographic diversity • Recruiter behaviors affect applicant attraction indirectly through influencing applicant perceptions of job and organizational attributes.Recruiter's Demographics & Attitudes• Recruiter demographic similarity doesn't necessarily increase applicant attraction • Recruiter behavior toward applicants and applicants' perception of the recruiter's knowledge do matter • Recruiter profiles of who has previously been the most effective for different positions • The recruiter should be able to relate to a targeted recruit's values and motivations to be persuasiveWho Recruits?• Internal recruiters • Chatbots • External recruiters (retained and contingency search firms, full-scale and on-demand recruitment process outsourcing; staff augmentation) • Hiring managers • Future coworkersFactors Influencing Recruiter Effectiveness-the organization's characteristics -the characteristic of the job -hiring managers -coworkers -the labor marketRecruiter Training- Recruiter knowledge - Interpersonal skills - Presentation skills - Cultural skills - Organizational goals and recruiting objectives - Legal issues - Multiple assessments - Applicant attractionStrategic Recruiting Metrics How do we know if a recruiter is effective?• New hire job performance • New hire failure rate • Turnover of new hires • Hiring manager satisfaction • New hire satisfaction • New hire time to productivity • New hire training successRecruiter Goals & Feedback• An organization usually has specific goals for recruiter activities including: - Employer branding - Candidate screening - Generating candidates' interest • For a recruiter to pursue the organization's goals: - The organization's goals must be known by the recruiter and be consistent with the recruiter's personal goals - The recruiter must receive feedback in relation to these goalsRecruiter Incentives• The behaviors and outcomes that are rewarded are the ones most likely to be pursued by recruiters • Align rewards with staffing goals • Balance long-term and short-term goals • Balance team and individual goalsGlobal Recruiting• Employers often lack the same brand recognition in different countries • Practical difference exist in staffing laws and normsThe EU's GDPR• The European Union's General Data Protection Regulation gives EU residents greater control over their personal data - Job seekers must actively opt-in to give direct consent for data to be collected and be able to withdraw their consent - OR the employer must have a "legitimate interest" such as proactively sourcing on LinkedIn for a specific role - AND the data must be collected for a specific and limited purpose (not for general talent pipelining) • Violations can result in fines of up to 4% of annual revenueTiming of Information- Later in the recruiting process • Job offer details & company benefits • More detailed info about job requirements, responsibilities, authority, advancement potential, job & company stability, and the firm's values & culture - Earlier in the recruiting process • Info about the candidate's potential fit with the job duties & company • Broad info about the job & companyRecruitment Consistency - Recruiting guide- A formal document that details the process to be followed in recruiting for an open position. - Addresses both internal and external recruiting processes. - Clarifies company policies and procedures relating to appropriate budgets, activities, timelines, responsible staff, legal issues, and the specific steps to be taken in recruiting for the position. - Helps to standardize the recruiting procedures used by the organization, clarify which employees are expected to perform what roles during the recruitment process, and helps to ensure that all of the relevant recruiting policies and procedures are followed during the recruitment process.EEOC Best Recruiting PracticesRecruiting Technology• Mobile recruiting • Texting • Careers sites • Social media • Gamification • Artificial intelligence • Applicant tracking systemsRecruiting EthicsBecause no regulating agency oversees recruiting practices, ethical recruiter behavior starts with the employer clearly defining expected recruiter behaviors - Ethical code for sourcers and recruiters emphasizing key organizational values and providing ethical guidance - Provide clear channel for recruiter questions and hiring issuesBenefits to ethical recruiting- Decreased risk of lawsuits - Increased trust may appeal to high-quality passive candidates - Enhanced applicant reactions - Enhanced current and future recruiting effectivenessMost common ethical issues in recruiting:- What information to communicate - How honest, fair, and transparent to be with recruitsBest Practices in Recruiting Ethics