3. Group HR
Do you agree?
Great companies “first got the right people on the
bus, the wrong people off the bus, and the right
people in the right seats – and then they figured
out where to drive it.”
Good to Great: Why Some Companies Make the Leap and Others Don’t –
Jim Collins
4. Group HR
Manpower Planning
• Manpower Planning is a Process by which an
organization ensures that
– Right number of people
– Right kind of people
– At the Right time
– At the Right place
– Doing the Right things for which they are suited for
achieving the goals of the organization.
5. Group HR
Factors affecting Manpower Planning
• Sales and production forecasts
• The effects of technological change on task needs
• Variations in the efficiency, productivity, flexibility of
labor as a result of training, work study,
organizational change, new motivations, etc.
• Changes in employment practices (e.g. use of
subcontractors or agency staffs, hiving-off tasks,
buying in, substitution, etc.)
6. Group HR
Factors affecting Manpower Planning
• Variations, which respond to new legislation, e.g.
payroll taxes or their abolition, new health and
safety requirements
• Changes in Government policies (investment
incentives, regional or trade grants, etc.)
10. Group HR
Recruitment is not about filling jobs that are currently
vacant – it is about making a continuous, long-term
investment to build a high quality workforce capable of
accomplishing the organization’s mission now and in
the future
www.ipma-hr.org
Any example you know of?
11. Group HR
Recruitment is a critical management function
that all levels of the organization need to be
involved in planning and implementation
www.ipma-hr.org
12. Group HR
Global Sourcing is changing the shape of the
business world!!!
Features of the ‘New’ World
• global sourcing barriers fading away
• Disappearance of the Time Zones
• Transformation of the work processes into pieces
that can be constructed and deconstructed
13. Group HR
Changing Role of HR: Modified Recruitment
Structure
Currently organisations use one or more of the following staffing
structures:
Decentralized Staffing Model —Allows individual business units to
develop and fill their own staffing plans.
Hybrid Staffing Model —Combines decentralized approach with certain
centralized (or shared services) components.
Outsourced Staffing Model —Promotes efficiency, consistency and
potential cost saving
HR Business Partner Structure —HR business partners work with
designated business units.
14. Group HR
How do organizations structure their recruiting
departments?
Corporate Leadership Council
15. Group HR
Pros and Cons of Recruiting Department Structures
Centralized Hybrid Decentralized
Pros Cons Pros Cons Pros Cons
•Facilitates
practice and
lead sharing
•Enhances
Consistency
•Enables
Standardization
•Creates a
disconnection
between
recruiters and
business units
•Enables a mix
of process
efficiencies
and
connection
with the line
•Creates
staffing
resource
flexibilities
•Creates
resource and
process
inefficiencies
•Distance
function from
the support of
corporate
headquarters
•Improves
communication
with the line
•Enables
recruiters to
learn business
•Creates
resource
inefficiencies
•Discourages
candidate and
practice sharing
across the
department
•Lacks process
efficiencies of
centralized
structures
•Reduces
consistency and
standardization
Corporate Leadership Council
16. Group HR
• Three Main Functions of Recruitment Process are:
– Attract a pool of suitable candidates
– Deter unsuitable candidates from applying
– Create a positive image of the organization
18. Group HR
Recruitment from Inside
Advantages
Career plan for existing workers &
morale
Motivator for good performance
Relatively easier assessment of
applicants as information is available
Reduced recruitment costs (travel
expenses)
Causes succession of promotions
Have to hire only at entry level.
Disadvantages
Existing employees may not bring-in new ideas
to their new job (inbreeding).
Lower level employees may not have capacities
required at higher jobs.
High-powered employees might not be able to
wait long enough for their turn (“political”
infighting for promotions).
Internal strife for the post might impact
negatively on possibilities for team work
among existing employees.
Need for management development program
19. Group HR
Recruitment from Outside
Disadvantages
Relatively higher costs.
Risky of getting the wrong person.
May cause morale problems for
internal candidates not selected.
Advantages
Larger pool of talent.
Objectivity and extensive effort put into the
process likely to lead to a better candidate
selection.
New industry insights, ideas, way of thinking
& approaches might challenge existing norms
and act as catalyst in continuous improvement/
innovation.
Cheaper and faster than training professionals.
No group of political supporters in
organization already.
20. Group HR
Sourcing Channels
Recruitment methods
Internal
• Job Posting
• Skills Data Base
• Employee Referrals by Other
Departments
External
• Advertisement
• Placement Agencies
• Internships
• Job Sites
• E-Recruiting
• Campus
• Data Base
• Alumni
• Associations/Interest Groups/
Networks
• Temporary Leasing
• Employee Referrals
• Passive Recruiting (Unsolicited application)
• Career Fairs
21. Group HR
Despite the importance of strategic workforce planning, most HR
departments have not yet developed a formal plan to participate
in their companies’ business cycles.
Ninety percent of HR departments have no independent planning
and forecasting function, and many HR departments have no
formal staffing strategy of any kind.
Rather, they tend to operate independently of the business cycle,
developing reactive staffing solutions instead of proactive
strategies that anticipate movements in the business cycle.
Corporate Leadership Council
22. Group HR
Recruitment Strategy: A Six Step Approach
Recruitment strategy should answer the following
questions related to their target populations:
1. Who is being targeted through the recruitment?
2. Where is the appropriate place to recruit clients?
3. When should recruitment be done?
4. What messages should be delivered during recruitment?
5. How should the messages be delivered?
6. Who is the most appropriate person to do recruitment?
23. Group HR
Talent Forecasting
1. Business strategy —Integrates projected company growth in
terms of activity, output and revenue.
2. Human capital need —Translates business strategy into staffing
requirements.
3. Projection of future vacancies — Based on difference between
staffing requirements and current capacity.
24. Group HR
Strategic Recruiting Stages
Human Resource Planning
• How many employees are needed?
• When employees will be needed?
• What specific KSA’s are needed?
Organizational Responsibilities
• HR staff & operating managers
• Recruiting presence and image
• Training of recruiters
Wendell French, Chapter 9, Recruitment & Selection
26. Group HR
Selection
• The process of assessing candidates and appointing a
post holder
• Applicants short listed – most suitable candidates
selected
• Selection process – varies according to organisation.
27. Group HR
Selection Tools
• Interview – most common method
• Psychometric testing – assessing the personality of the applicants –
• Measures of personality
• Honesty test (substitute to polygraph)
• Aptitude testing – assessing the skills of applicants
• Measures of proficiency, achievement, or knowledge
• Measures of mental ability or intelligence
• In-tray exercise – activity based around what the applicant will be
doing
• Presentation – looking for different skills as well as the ideas of the
candidate
• Assessment Centres – battery of tests
28. Group HR
Choice of Selection Methods
• Number of applicants
• Criticality of position
• Cost/effort involved
• Predictive validity
• Extent of preparation required
29. Group HR
When using psychological tests..
• Clearly identify the objectives
• Uses a battery of test that can give range of information
• Have trained psychologists conduct and interpret tests
• Use personality testing as an adjunct to the recruitment or
career planning process and exploit its developmental
power
• Adapt tests to Indian situations
30. Group HR
Determining Selection Standards
Sources of Information about Applicants
• Application Forms
• Reference Checks
• Physical Examination
Selection Tests (Reliability & Validity)
The Selection Interview
31. Group HR
Recruitment: Return on Investment (ROI)
• Recruitment return on investment (ROI)
understands and compares the elements, costs
and risks of a recruitment related project to the
expected benefits
32. Group HR
What to Measure: Hiring
Recruiter Effectiveness
RE = RT+TF+HR+C/H +QH
N
RE = Overall Recruiter effectiveness
RT = Response Time
TF = Time to Fill
HR = Hire Rate
C/H = Cost Per Hire
QH= Quality of Hire
N = Number of Indices Used.
HR Accounting
33. Group HR
Cost Per Hire
SC = Sourcing costs (Advertising + Agency Fees + Employee Referrals)
ST = Staff Time [Travel + Interview ] x [Recruiter Pay and Benefits] or External
Agency Fee
MT = Management Time x Managements Pay and Benefits
PC = Processing Costs/ Operating Expenses
TR = Travel Cost of Applicants
RL = Relocations Costs
MS = Miscellaneous
H = Full Time or Part Time Employees Hired
CPH = SC+ST+MC+PC+TR=RL+MS
H
HR Accounting
34. Group HR
Quality of Hire (QH)
PR= Average job performance ratings of new hires
HP= Percent of new hires promoted within one year
HS = Percent of new hires retained after one year
N = Number of indicators used
QH = PR + HP + HS
N
Satisfaction of new employees with hiring.
Satisfaction of managers with new employees.
HR Accounting
35. Group HR
Number Hired (Hit Rate)
HO = OA/OE
TF =RR – OD
RR = Date requisition is received
OD = Date offer is accepted
OA = Offer accepted
OE = Offers extended
HO = Percentage of offers that result in hire
Time to Fill
HR Accounting
36. Group HR
Rewards
Compensati
on
Health
Benefits
Retirement
Benefits
Vacation
Opportunity
Development
Opportunities
Future Career
Opportunities
Organization
Growth Rate
Meritocracy
Organizational
Stability
Organization
Customer Prestige
Diversity
Empowerment
Environmental
Responsibility
Ethics
Great Employer
Recognition
Well know Brand
Market Position
Product/ Service Quality
Organization Size
Social Responsibility
Technology Level
Work
Business Travel
Innovation
Job Impact
Job-Interests
Alignment
Location
Recognition
Work Life
Balance
People
Camaraderie
Collegial Work
Environment
Coworker Quality
Manager Quality
People
Management
Senior Leadership
Reputation
The Employment Value Proposition
The set of attributes that the labor market and employee perceive as the value they gain
through employment in the organization.
Rewards
Compensati
on
Health
Benefits
Retirement
Benefits
Vacation
Opportunity
Development
Opportunities
Future Career
Opportunities
Organization
Growth Rate
Meritocracy
Organizational
Stability
Organization
Customer Prestige
Diversity
Empowerment
Environmental
Responsibility
Ethics
Great Employer
Recognition
Well know Brand
Market Position
Product/ Service Quality
Organization Size
Social Responsibility
Technology Level
Work
Business Travel
Innovation
Job Impact
Job-Interests
Alignment
Location
Recognition
Work Life
Balance
People
Camaraderie
Collegial Work
Environment
Coworker Quality
Manager Quality
People
Management
Senior Leadership
Reputation
Corporate Leadership Council