chapter 7: recruiting and retaining qualified employees jackson and schuler © 2003 south-western...
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Chapter 7:Chapter 7:
Recruiting and Retaining Recruiting and Retaining Qualified EmployeesQualified Employees
Jackson and SchulerJackson and Schuler
© 2003 South-Western College Publishing. All rights reserved.
Eighth editionEighth edition
Managing Human Managing Human ResourcesResources
© 2003 South-Western College Publishing. All rights reserved. 7–2
Chapter OutlineChapter OutlineChapter OutlineChapter Outline
Recruiting and Retention within the HR SystemRecruiting and Retention within the HR System The Strategic Importance of Recruiting and The Strategic Importance of Recruiting and
Retaining Talented EmployeesRetaining Talented Employees Recruiting Methods and SourcesRecruiting Methods and Sources Recruiting from the Applicant’s Perspective Recruiting from the Applicant’s Perspective
Enhances RetentionEnhances Retention Equal Opportunity and NondiscriminationEqual Opportunity and Nondiscrimination Reducing Recruiting Needs Through RetentionReducing Recruiting Needs Through Retention
© 2003 South-Western College Publishing. All rights reserved. 7–3
Recruiting and RetentionRecruiting and Retentionwithin the HR Systemwithin the HR System
Recruiting and RetentionRecruiting and Retentionwithin the HR Systemwithin the HR System
RecruitingRecruiting Searching for and obtaining qualified job Searching for and obtaining qualified job
candidatescandidates
© 2003 South-Western College Publishing. All rights reserved. 7–4
Recruitment and RetentionRecruitment and RetentionRecruitment and RetentionRecruitment and Retention
RecruitmentRecruitment The first step in the hiring process; the The first step in the hiring process; the
process is completed after selectionprocess is completed after selection
RetentionRetention Everything an employer does to encourage Everything an employer does to encourage
qualified and productive employees to qualified and productive employees to continue working for the organizationcontinue working for the organization
Ideally, both management and applicant Ideally, both management and applicant needs are satisfied in the selection process.needs are satisfied in the selection process.
© 2003 South-Western College Publishing. All rights reserved. 7–5
Integrated HR SystemIntegrated HR SystemIntegrated HR SystemIntegrated HR System
External Sources• Walk-Ins
• Referrals
• Other companies
• Agencies
• Schools
• Trade associations and unions
• Foreign nationals
External Sources• Walk-Ins
• Referrals
• Other companies
• Agencies
• Schools
• Trade associations and unions
• Foreign nationals
Internal Sources• Promotion
• Transfer
• Rehire
Internal Sources• Promotion
• Transfer
• Rehire
Legal Considera-tions
• EEO
• AAPs
Legal Considera-tions
• EEO
• AAPs
Recruitment and Retention Activities
• Realistic Job Preview
• Career development
• Flexible arrangements
• Fairness
Recruitment and Retention Activities
• Realistic Job Preview
• Career development
• Flexible arrangements
• Fairness
Objectives for Recruitment and Retention• How Many?
• Where?
• Who?
• When?
Objectives for Recruitment and Retention• How Many?
• Where?
• Who?
• When?
Proof of Qualified Applicants to Select From and Offer Jobs
Proof of Qualified Applicants to Select From and Offer Jobs
Global and Organizational Environment
• Economy
• Competition
• Strategy
• Vision, values
• Reputation
Global and Organizational Environment
• Economy
• Competition
• Strategy
• Vision, values
• Reputation
Other HR Activities• Legal
• Planning
• Job Analysis
• Selection
• Training
• Compensation
Other HR Activities• Legal
• Planning
• Job Analysis
• Selection
• Training
• Compensation
© 2003 South-Western College Publishing. All rights reserved. 7–6
Examples of Strategic Choices and Examples of Strategic Choices and Recruitment ObjectivesRecruitment Objectives
Examples of Strategic Choices and Examples of Strategic Choices and Recruitment ObjectivesRecruitment Objectives
Increase Market Increase Market Share by Offering Share by Offering Lowest-Cost Lowest-Cost ServicesServices
Retain talent as company growsRetain talent as company growsPredict rate of growth and increase Predict rate of growth and increase
size of workforcesize of workforceImprove efficiency of recruitmentImprove efficiency of recruitmentFind low cost ways to attract and Find low cost ways to attract and
retain talentretain talent
Respond to Respond to Declining Industry Declining Industry Trends by Trends by Diversifying into Diversifying into New BusinessesNew Businesses
Implement layoff plansImplement layoff plansAttract and retain best talentAttract and retain best talentPlan lateral transfers from declining Plan lateral transfers from declining
business areasbusiness areasRecruit for new businessesRecruit for new businesses
© 2003 South-Western College Publishing. All rights reserved. 7–7
Job Analysis Answers These Job Analysis Answers These QuestionsQuestions
Job Analysis Answers These Job Analysis Answers These QuestionsQuestions
What are the characteristics of the ideal What are the characteristics of the ideal recruit?recruit?
Which competencies must people have when Which competencies must people have when they first enter the organization?they first enter the organization?
How important is it for new hires to learn new How important is it for new hires to learn new competencies?competencies?
What career opportunities can be discussed What career opportunities can be discussed with applicants?with applicants?
© 2003 South-Western College Publishing. All rights reserved. 7–8
Current Strategic Recruitment Current Strategic Recruitment IssuesIssues
Current Strategic Recruitment Current Strategic Recruitment IssuesIssues
Keeping costs under control while ensuring Keeping costs under control while ensuring that the organization can grow, diversify, that the organization can grow, diversify, expand internationally expand internationally
Recruiting technical workers and senior Recruiting technical workers and senior managementmanagement
Legal compliance and affirmative actionLegal compliance and affirmative action Involving employees in recruitmentInvolving employees in recruitment
© 2003 South-Western College Publishing. All rights reserved. 7–9
The Value of Retention:The Value of Retention:Costs of TurnoverCosts of Turnover
The Value of Retention:The Value of Retention:Costs of TurnoverCosts of Turnover
Out-of-pocket expenses to recruit, hire, and Out-of-pocket expenses to recruit, hire, and train new employeestrain new employees
Lost productivity:Lost productivity: Errors made by inexperienced employeesErrors made by inexperienced employees Damaged productsDamaged products Projects or contracts lostProjects or contracts lost Lower morale among remaining employeesLower morale among remaining employees Lost knowledge and business contactsLost knowledge and business contacts
© 2003 South-Western College Publishing. All rights reserved. 7–10
Roles and Responsibilities for Roles and Responsibilities for Recruiting and Retaining EmployeesRecruiting and Retaining Employees
Roles and Responsibilities for Roles and Responsibilities for Recruiting and Retaining EmployeesRecruiting and Retaining Employees
Line ManagersLine Managers
•With HR, develop objectives, plans
•Understand HR linkages
•Disseminate info to internal candidates
•Know labor market trends
•Abide by laws
•Facilitate retention
Line ManagersLine Managers
•With HR, develop objectives, plans
•Understand HR linkages
•Disseminate info to internal candidates
•Know labor market trends
•Abide by laws
•Facilitate retention
HR ProfessionalsHR Professionals
•Develop objectives, plans
•Design recruitment and retention activities
•Evaluate recruitment outcomes
•Provide training in recruitment
•Use exit interviews, surveys
HR ProfessionalsHR Professionals
•Develop objectives, plans
•Design recruitment and retention activities
•Evaluate recruitment outcomes
•Provide training in recruitment
•Use exit interviews, surveys
EmployeesEmployees
• Openly discuss Openly discuss objectivesobjectives
• Consider all aspects Consider all aspects of HR in career of HR in career decisionsdecisions
• Participate in Participate in recruitment effortsrecruitment efforts
• Assist in diversity Assist in diversity effortsefforts
• Seek info on Seek info on company openingscompany openings
EmployeesEmployees
• Openly discuss Openly discuss objectivesobjectives
• Consider all aspects Consider all aspects of HR in career of HR in career decisionsdecisions
• Participate in Participate in recruitment effortsrecruitment efforts
• Assist in diversity Assist in diversity effortsefforts
• Seek info on Seek info on company openingscompany openings
© 2003 South-Western College Publishing. All rights reserved. 7–11
Recruiting Methods and SourcesRecruiting Methods and SourcesRecruiting Methods and SourcesRecruiting Methods and Sources
• Research shows no clear differences in Research shows no clear differences in employment experiences of employees employment experiences of employees recruited from different sourcesrecruited from different sources
• Advantages of Using Multiple SourcesAdvantages of Using Multiple Sources• Increases diversityIncreases diversity• Generates a larger pool of applicantsGenerates a larger pool of applicants
© 2003 South-Western College Publishing. All rights reserved. 7–12
Internal SourcesInternal Sources
Job PostingsJob Postings
TalentTalentinventoriesinventories
PromotionsPromotions
TransfersTransfers
Recruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and Sources
© 2003 South-Western College Publishing. All rights reserved. 7–13
Internal RecruitmentInternal RecruitmentInternal RecruitmentInternal Recruitment
ProsPros Reduces labor Reduces labor
costscosts Valued by Valued by
employeesemployees Enhances Enhances
reputation as reputation as employeremployer
ConsCons Limits applicant Limits applicant
poolpool May cause May cause
infightinginfighting InbreedingInbreeding
© 2003 South-Western College Publishing. All rights reserved. 7–14
External Labor MarketExternal Labor Market
Walk-in applicantsWalk-in applicants
Traditional MediaTraditional Media
Employee referralsEmployee referrals
Employment Employment agenciesagencies
InternetInternet
School placementSchool placement
Trade associationsTrade associations
Foreign nationalsForeign nationals
Acquisitions/Acquisitions/MergersMergers
Recruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and SourcesRecruitment Methods and Sources
© 2003 South-Western College Publishing. All rights reserved. 7–15
Employing Foreign WorkersEmploying Foreign WorkersEmploying Foreign WorkersEmploying Foreign Workers
Employers must be authorized to hire foreign Employers must be authorized to hire foreign nationals to work in U.S.nationals to work in U.S.
Legislation affecting the hiring of foreign Legislation affecting the hiring of foreign workers:workers: Immigration Reform and Control Act (1986)Immigration Reform and Control Act (1986) Immigration Act of 1990Immigration Act of 1990 American Competitiveness in the 21st American Competitiveness in the 21st
Century Act (2000)Century Act (2000)
© 2003 South-Western College Publishing. All rights reserved. 7–16
Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)Employing Foreign Workers (cont’d)
Use culturally Use culturally appropriate methods to appropriate methods to advertiseadvertise
Document domestic Document domestic recruiting efforts’ lack of recruiting efforts’ lack of successsuccess
Ensure equal treatment Ensure equal treatment in salary/benefitsin salary/benefits
Monitor % with various Monitor % with various types of visastypes of visas
Provide relocation Provide relocation supportsupport
Provide training and Provide training and acculturationacculturation
Plan for visa expirationsPlan for visa expirations Assist in repatriationAssist in repatriation
© 2003 South-Western College Publishing. All rights reserved. 7–17
Contingent EmployeesContingent EmployeesContingent EmployeesContingent Employees
Hired to cope with Hired to cope with unexpected or unexpected or temporary challengestemporary challenges
IncludeInclude Part-timersPart-timers FreelancersFreelancers SubcontractorsSubcontractors Independent Independent
professionalsprofessionals
Recently called “free Recently called “free agents”agents”
Limit to 3-12 month Limit to 3-12 month assignments assignments
Recruited using internet Recruited using internet or temporary agenciesor temporary agencies
© 2003 South-Western College Publishing. All rights reserved. 7–18
Recalls and RehiresRecalls and RehiresRecalls and RehiresRecalls and Rehires
Used by seasonal businesses to cope with Used by seasonal businesses to cope with unexpected staffing shortages after unexpected staffing shortages after downsizingdownsizing
May rehire former regular employees as May rehire former regular employees as temporary employeestemporary employees
Inexpensive to recruitInexpensive to recruit
© 2003 South-Western College Publishing. All rights reserved. 7–19
Contingent EmploymentContingent EmploymentContingent EmploymentContingent Employment
ProsPros Employees have Employees have
flexibilityflexibility Workers can Workers can
preview jobs and preview jobs and organizationsorganizations
Easier to give Easier to give regular employees regular employees temporary leavestemporary leaves
ConsCons Contingent Contingent
workers may have workers may have less commitmentless commitment
Conflict common Conflict common between regular between regular and temporary and temporary workersworkers
© 2003 South-Western College Publishing. All rights reserved. 7–20
Recruiting from the Applicant’s Recruiting from the Applicant’s Perspective Enhances RetentionPerspective Enhances RetentionRecruiting from the Applicant’s Recruiting from the Applicant’s Perspective Enhances RetentionPerspective Enhances Retention
Building a Corporate ReputationBuilding a Corporate Reputation Planning to become an “employer of choice”Planning to become an “employer of choice”
• What benefits to offerWhat benefits to offer• How to communicate to publicHow to communicate to public
RisksRisks• Investment requiredInvestment required• Benchmarking may highlight deficienciesBenchmarking may highlight deficiencies• May raise employee expectations and May raise employee expectations and
awareness awareness
© 2003 South-Western College Publishing. All rights reserved. 7–21
Recruiting: The Applicant’s Recruiting: The Applicant’s PerspectivePerspective
Recruiting: The Applicant’s Recruiting: The Applicant’s PerspectivePerspective
Recruiters should:Recruiters should: Make it easy to applyMake it easy to apply Make a good impressionMake a good impression Make an attractive offerMake an attractive offer Give applicants information Give applicants information
they needthey need Reject with tactReject with tact
Status of recruitersStatus of recruiters Treatment of applicantsTreatment of applicants Promptness of decisionsPromptness of decisions
© 2003 South-Western College Publishing. All rights reserved. 7–22
Making an Offer Applicants Will Making an Offer Applicants Will AcceptAccept
Making an Offer Applicants Will Making an Offer Applicants Will AcceptAccept
Most job seekers are looking for “acceptable,” Most job seekers are looking for “acceptable,” rather than “ideal” job.rather than “ideal” job.
Location, job, company, and match with Location, job, company, and match with organization’s values are all important to the organization’s values are all important to the applicant.applicant.
© 2003 South-Western College Publishing. All rights reserved. 7–23
Making an Acceptable OfferMaking an Acceptable OfferMaking an Acceptable OfferMaking an Acceptable Offer
PayPay Noncompensatory reservation wage is the Noncompensatory reservation wage is the
minimum pay to make an offer acceptable, minimum pay to make an offer acceptable, frequently based on:frequently based on:• Prior compensationPrior compensation• Length of unemploymentLength of unemployment• Availability of salary informationAvailability of salary information
Generally higher for males than femalesGenerally higher for males than females
© 2003 South-Western College Publishing. All rights reserved. 7–24
Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)Making an Acceptable Offer (cont’d)
Benefits and Work ArrangementsBenefits and Work Arrangements Most employers take the compensatory Most employers take the compensatory
approachapproach Most applicants preferMost applicants prefer
• Flexibility in benefitsFlexibility in benefits• Opportunities to learnOpportunities to learn
© 2003 South-Western College Publishing. All rights reserved. 7–25
Giving Applicants the InformationGiving Applicants the InformationThey NeedThey Need
Giving Applicants the InformationGiving Applicants the InformationThey NeedThey Need
Realistic Job PreviewsRealistic Job Previews Describe positive and negative aspectsDescribe positive and negative aspects Increases number of recruits and Increases number of recruits and
commitmentcommitment Help individuals self-selectHelp individuals self-select
Give More Information UsingGive More Information Using AdsAds Job descriptionsJob descriptions Film/videoFilm/video Work samplesWork samples
© 2003 South-Western College Publishing. All rights reserved. 7–26
Equal Opportunity and Equal Opportunity and NondiscriminationNondiscrimination
Equal Opportunity and Equal Opportunity and NondiscriminationNondiscrimination
EEO-1 ReportEEO-1 Report Employer information report required from Employer information report required from
most employers with more than 100 most employers with more than 100 employeesemployees
Reports composition of workforce byReports composition of workforce by• Job familyJob family• SexSex• Race/ethnicityRace/ethnicity• Employment statusEmployment status
© 2003 South-Western College Publishing. All rights reserved. 7–27
Equal Opportunity and Equal Opportunity and Nondiscrimination (cont’d)Nondiscrimination (cont’d)
Equal Opportunity and Equal Opportunity and Nondiscrimination (cont’d)Nondiscrimination (cont’d)
Applicant Tracking SystemsApplicant Tracking Systems Keep data as applicants move through Keep data as applicants move through
system and generate reportssystem and generate reports Demographic information must be kept Demographic information must be kept
separately from applicant qualificationsseparately from applicant qualifications Use to check impact of recruiting methodsUse to check impact of recruiting methods
© 2003 South-Western College Publishing. All rights reserved. 7–28
Affirmative Action (AA) ProgramsAffirmative Action (AA) ProgramsAffirmative Action (AA) ProgramsAffirmative Action (AA) Programs
Programs to ensure proportional Programs to ensure proportional representation of qualified members of representation of qualified members of protected groups in the relevant labor marketprotected groups in the relevant labor market
Protected groups:Protected groups: WomenWomen African AmericansAfrican Americans HispanicsHispanics Native AmericansNative Americans Asian AmericansAsian Americans Pacific Islander AmericansPacific Islander Americans
© 2003 South-Western College Publishing. All rights reserved. 7–29
Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)Affirmative Action Programs (cont’d)
Reasons for AA ProgramsReasons for AA Programs As part of consent decree to eliminate the As part of consent decree to eliminate the
effects of past discriminationeffects of past discrimination As required for Federal contractorsAs required for Federal contractors On a voluntary basisOn a voluntary basis
Effective, Legal AA ProgramsEffective, Legal AA Programs Employers work to eliminate future bias byEmployers work to eliminate future bias by
• Having an EEO policyHaving an EEO policy• Analyzing their workforceAnalyzing their workforce• Working to eliminate underutilization of Working to eliminate underutilization of
protected classesprotected classes
© 2003 South-Western College Publishing. All rights reserved. 7–30
Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)Affirmative Action Plan (cont’d)
Executive Order 11246 Requires:Executive Order 11246 Requires: AA plans for contractors with federal contracts AA plans for contractors with federal contracts
greater than $50,000 and having 50 or more greater than $50,000 and having 50 or more employees.employees.
Written AA plans to be filed with Office of Written AA plans to be filed with Office of Federal Contract Compliance Programs (OFCCP).Federal Contract Compliance Programs (OFCCP).
Plans ComponentsPlans Components A utilization analysis of current employeesA utilization analysis of current employees An availability analysis of the relevant labor An availability analysis of the relevant labor
marketmarket Diversity goals and timetablesDiversity goals and timetables
© 2003 South-Western College Publishing. All rights reserved. 7–31
Benefits and Risks of AA PlansBenefits and Risks of AA PlansBenefits and Risks of AA PlansBenefits and Risks of AA Plans
BenefitsBenefits Positive perceptions among employees and Positive perceptions among employees and
applicants when companies make proactive applicants when companies make proactive effortsefforts
Enhanced diversity of applicant poolEnhanced diversity of applicant pool Avoidance of lawsuitsAvoidance of lawsuits Positive reactions by investorsPositive reactions by investors
RisksRisks Reverse discrimination chargesReverse discrimination charges AA hires may be perceived as less competentAA hires may be perceived as less competent ““Protected group” classification polarizes gender Protected group” classification polarizes gender
and ethnic groupsand ethnic groups
© 2003 South-Western College Publishing. All rights reserved. 7–32
Recruiting Practices That May Recruiting Practices That May Create Create
a Glass Ceilinga Glass Ceiling
Recruiting Practices That May Recruiting Practices That May Create Create
a Glass Ceilinga Glass Ceiling Word of mouth Word of mouth Employee referralsEmployee referrals Executive search firms unaware Executive search firms unaware
of EEO objectivesof EEO objectives Job postings that rely on Job postings that rely on
informal networksinformal networks Recruiting venues that create Recruiting venues that create
discomfort (e.g., hotel rooms)discomfort (e.g., hotel rooms)
© 2003 South-Western College Publishing. All rights reserved. 7–33
Reducing Recruiting Needs Reducing Recruiting Needs Through RetentionThrough Retention
Reducing Recruiting Needs Reducing Recruiting Needs Through RetentionThrough Retention
Turnover, not growth, Turnover, not growth, creates most creates most recruitment pressures.recruitment pressures.
Most (not all) turnover is Most (not all) turnover is caused by dissatisfied caused by dissatisfied employees and is employees and is undesirable.undesirable.
Exit surveys are useful Exit surveys are useful in diagnosing turnover.in diagnosing turnover.
© 2003 South-Western College Publishing. All rights reserved. 7–34
Low jobLow jobsatisfactionsatisfaction
Low jobLow jobsatisfactionsatisfaction
Other roleOther rolecommitmentscommitments
and time conflictsand time conflicts
Other roleOther rolecommitmentscommitments
and time conflictsand time conflicts
Insufficient Insufficient incentivesincentives
and rewardsand rewards
Insufficient Insufficient incentivesincentives
and rewardsand rewards
Poor jobPoor jobperformanceperformance
Poor jobPoor jobperformanceperformance
Labor marketLabor marketconditionsconditions
Labor marketLabor marketconditionsconditions
Low commitment, Low commitment, withdrawalwithdrawal
Low commitment, Low commitment, withdrawalwithdrawal
JobJobSearchSearch
JobJobSearchSearch
Process of Employee TurnoverProcess of Employee TurnoverProcess of Employee TurnoverProcess of Employee Turnover
© 2003 South-Western College Publishing. All rights reserved. 7–35
Why Employees May Not Be HonestWhy Employees May Not Be HonestAt Exit InterviewAt Exit Interview
Why Employees May Not Be HonestWhy Employees May Not Be HonestAt Exit InterviewAt Exit Interview
Want to move onWant to move on Negative comments may Negative comments may
reach new employerreach new employer Cynicism about employer’s Cynicism about employer’s
motivationmotivation Concern for those who Concern for those who
remainremain Desire not to “burn Desire not to “burn
bridges”bridges”
© 2003 South-Western College Publishing. All rights reserved. 7–36
Ways to Minimize Turnover and Ways to Minimize Turnover and Recruiting DifficultiesRecruiting Difficulties
Ways to Minimize Turnover and Ways to Minimize Turnover and Recruiting DifficultiesRecruiting Difficulties
Train supervisors to understand employees’ Train supervisors to understand employees’ concerns, provide feedback, and help with concerns, provide feedback, and help with career developmentcareer development
Invest in training, especially for low-skill jobsInvest in training, especially for low-skill jobs Use innovative HR approaches to keep Use innovative HR approaches to keep
employees’ interestemployees’ interest
© 2003 South-Western College Publishing. All rights reserved. 7–37
Managing Workforce ReductionsManaging Workforce Reductionsand Layoffsand Layoffs
Managing Workforce ReductionsManaging Workforce Reductionsand Layoffsand Layoffs
Alternatives to Layoffs:Alternatives to Layoffs: Restricting overtimeRestricting overtime Reducing workweekReducing workweek Temporary leavesTemporary leaves Job sharingJob sharing RetrainingRetraining Transfers to other Transfers to other
companiescompanies Employee BuyoutsEmployee Buyouts
Consequences of Consequences of Layoffs:Layoffs: Severance PaymentsSeverance Payments Consultant feesConsultant fees LitigationLitigation Loss of trust in Loss of trust in
managementmanagement Lack of staff for Lack of staff for
reboundrebound Loss of reputationLoss of reputation
© 2003 South-Western College Publishing. All rights reserved. 7–38
Downsizing With RespectDownsizing With RespectDownsizing With RespectDownsizing With Respect
Survivors often concerned with own survival Survivors often concerned with own survival and guiltand guilt
Managers canManagers can Use fair process to let people goUse fair process to let people go Develop careful change planDevelop careful change plan Work to regain trustWork to regain trust