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Group HR
Happy New Year!
Group HR
Recruitment & Selection
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
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.
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.)
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.)
Group HR
Manpower Planning
• Two Steps
– Demand Forecasting
– Supply Forecasting
Group HR
Demand Forecasting
• Bottom Up Technique
• Delphi Technique
• Nominal Group Technique
• Ratio Analysis
• Regression Analysis
Group HR
Supply Forecasting
• Internal Supply
• External Supply
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?
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
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
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.
Group HR
How do organizations structure their recruiting
departments?
Corporate Leadership Council
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
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
Group HR
Internal Recruitment
External Recruitment
Vs.
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
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.
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
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
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?
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.
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
Group HR
Strategic Recruiting Decisions
• Organizational-based Vs. outsourcing
• Regular Vs. flexible staffing
• Recruiting source choices
Recruiting Methods
• Internal methods
• Internet/ web-based
• External methods
Wendell French, Chapter 9, Recruitment & Selection
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.
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
Group HR
Choice of Selection Methods
• Number of applicants
• Criticality of position
• Cost/effort involved
• Predictive validity
• Extent of preparation required
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
Group HR
Determining Selection Standards
Sources of Information about Applicants
• Application Forms
• Reference Checks
• Physical Examination
Selection Tests (Reliability & Validity)
The Selection Interview
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
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
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
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
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
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

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3.Recruitment and Selection .ppt

  • 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.)
  • 7. Group HR Manpower Planning • Two Steps – Demand Forecasting – Supply Forecasting
  • 8. Group HR Demand Forecasting • Bottom Up Technique • Delphi Technique • Nominal Group Technique • Ratio Analysis • Regression Analysis
  • 9. Group HR Supply Forecasting • Internal Supply • External Supply
  • 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
  • 25. Group HR Strategic Recruiting Decisions • Organizational-based Vs. outsourcing • Regular Vs. flexible staffing • Recruiting source choices Recruiting Methods • Internal methods • Internet/ web-based • External methods 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