Chapter 5Expanding the Talent Pool Recruitment and Careers

Chapter 5
Expanding the Talent Pool: Recruitment and Careers
Copyright ©2019 Cengage. All Rights Reserved.
Learning Outcomes
After studying this chapter, you should be able to
Describe how a firm’s strategy affects its recruiting efforts, and
outline the elements that are part of a strategic recruiting
strategy.
Describe the methods firms use to recruit externally and
internally.
List some of the ways firms can improve their recruiting and the
metrics they use to do so.
Explain how career management programs integrate the needs of
individual employees and their organizations.
Explain why diverse recruitment and career development
activities are important to companies.
Discussion Starter #1
Luke’s Lobster uses social networking to promote its brand.

How has the use of the Internet and social networks affected
how today’s companies brand and recruit?
3
ANSWER: To help establish their employer brands as well as
recruit talent, firms are utilizing the Internet and social media
websites. Using the Internet and social networks is an
inexpensive way to brand and recruit. The strategy can be
particularly effective for small companies that can’t afford to
pay for a lot of job advertising to promote their firms and
attract candidates.
Looking on the Internet is the most commonly used search tactic
by jobseekers and recruiters to connect with one another. Both
companies and applicants find the approach cheaper, faster, and
potentially more effective. There are tens of thousands of
independent job boards and niche job boards. Specialty Internet
recruiting sites are also common, too.
Social media websites allow firms to create company pages,
post and advertise jobs, showcase their company’s attractive
features, and join groups that target certain types of
professionals. In fact, many companies, such as Zappos, no
longer accept résumés and instead use social media to recruit
applicants. Social media sites, such as Facebook and LinkedIn,
have also made it easier to find passive jobseekers—people who
are not looking for jobs but could be persuaded to take new
ones given the right opportunity.

5.1 Business Strategies and Their Link to Strategic Recruiting
Recruiters always have to consider the firm’s strategy.
4
Figure 5.1:
Elements of a Recruitment Strategy
Section 5.1a: Elements of a Recruiting Strategy
Figure 5.1 shows the various elements a firm has to consider as
part of its recruitment strategy. The elements include the
strength of the firm’s employment “brand,” the types of
positions the company is recruiting for, where it needs them,
when it needs them, and who is responsible for doing the
recruiting and making the recruiting decision.
5
Activity
Step 1: Conduct an online search and find at least three articles
related to the importance of selecting an appropriate recruiting
strategy.
Step 2: Using these articles as reference, write a two-page

report summarizing your findings with examples to substantiate
it. Be sure to cite your sources.
Step 3: Share your report with the rest of the class to initiate a
class discussion.
6
Estimated class time: - Step 1 & 2 should be done before class,
45 minutes total
5.2 External and
Internal Recruiting Methods
The two primary locations in which to find candidates are those
external to the firm (external candidates) and those internal to
the firm (internal candidates), each of which are recruited
somewhat differently.
7
Figure 5.2:
Sources of External Recruitment

Section 5.2a: External Recruiting Methods
Figure 5.2 shows the major external recruitment methods. The
“active” and “passive” labels indicate that some methods take
more effort on the part of the applicant and/or the recruiting
firm than others.
8
5.2a External Recruiting Methods
(slide 1 of 6)
Advertisements
Advertising can reach a large audience of possible applicants.
Preparing recruiting advertisements not only is time consuming;
it requires creativity in terms of developing their design and
message content.
Walk-Ins and Unsolicited Applications and Résumés
It is often believed that individuals who contact employers on
their own initiative will be better employees than those
recruited through ads.
The Internet
Looking on the Internet is the most commonly used search tactic
by jobseekers and recruiters to connect with one another.
Both companies and applicants find the Internet cheaper, faster,
and potentially more effective.

9
(slide 2 of 6)
Social Media
Firms are utilizing social media websites (e.g., Facebook,
LinkedIn) to recruit employees.
Passive jobseekers – People who are not looking for jobs but
could be persuaded to take new ones given the right opportunity
Mobile Recruiting
Mobile recruiting – The process of recruiting candidates via
their mobile devices
Job Fairs
At a job fair companies and their recruiters set up booths, meet
with prospective applicants, and exchange employment
information.
Virtual job fair – Job fairs conducted online
10
Video Highlight #1
This six-minute, step-by-step demo of LinkedIn Recruiter shows
how the recruiting tool can be used to find and attract the best
passive jobseekers on LinkedIn.

“LinkedIn Recruiter Demo”
11
VIDEO: LinkedIn Recruiter Demo (5:50)
This six-minute, step-by-step demo of LinkedIn Recruiter shows
how the recruiting tool can be used to find and attract the best
passive jobseekers on LinkedIn.
https://www.youtube.com/watch?v=pGgy_T-6nA0
TOPICS/CONCEPTS: recruiting, recruitment, passive
jobseekers, external recruiting methods, social media
(slide 3 of 6)
Employee Referrals
Word-of-mouth recommendations are the way most job
positions are filled.
Research findings:
Employee referrals are the best source of applicants.
Referred employees have higher retention rates than those who
are not referred and are hired in less than half the time as other
candidates.
Once hired, applicants referred by an employee tend to remain
with the organization longer.
Negative factors:
Corporate “inbreeding” – Occurs when firms hire employees
similar to those who provided the referrals and thereby
discriminate against protected classes
Nepotism – A preference for hiring the relatives of current
employees

12
(slide 4 of 6)
Re-recruiting
Re-recruiting – The process of keeping track of and maintaining
relationships with former employees to see if they would be
willing to return to the firm
Executive Search Firms
In contrast to public and private employment agencies, which
help jobseekers find the right job, executive search firms (often
called “headhunters”) help employers find the right person for a
job.
Educational Institutions
High schools and community colleges
Work-study programs
Internships
13

Figure 5.3: Steps for Strengthening a Firm’s
On-Campus Recruiting Relationships
Rather than recruiting students from dozens of schools, which
can be expensive, more companies are targeting smaller
numbers of colleges and forming closer partnerships with them.
Employees guest lecture at the schools and develop
relationships with instructors, who then recommend students for
jobs. Some companies are sending their CEOs to campus
because they have found that it puts a “face” on the company
and attracts more applicants. Figure 5.3 shows some of the steps
firms can take to strengthen their on-campus recruiting
relationships.
14
Figure 5.4:
Unpaid Internship Guidelines
Figure 5.4 shows the criteria that must be met if an intern is not

to be paid, according to the U.S. Department of Labor.
15
(slide 5 of 6)
Professional Associations and Labor Unions
Placement centers are usually included at the national meetings
of professional associations.
Labor unions have been a principal source of applicants for
blue-collar and some professional jobs.
Public Employment Agencies
Each of the 50 U.S. states maintains an employment agency that
works with employers to post their job openings in online job
banks and matches unemployed qualified workers to the jobs so
they can apply for them.
Private Employment Agencies
Private employment agencies are companies that, for a fee,
match people with full-time jobs.
16
(slide 6 of 6)
Staffing Agencies
Staffing agencies (e.g., Adecco, Kelly Services) are firms that
hire and place workers in temporary positions.

Independent Contractors
Independent contractors – Workers who are self-employed and
do project work on a contract basis for different organizations
Employee Leasing
Employee leasing – The process of dismissing employees who
are then hired by a leasing company (which handles all HR-
related activities) and contracting with that company to lease
back the employees
17
5.2b Internal Recruiting Methods
(slide 1 of 2)
Most companies try initially to fill job vacancies above the
entry-level position through promotions and transfers.
Promoting employees rewards them for their past performance
and encourages them to continue their efforts, which in turn can
improve morale within the organization and support a culture of
employee engagement.
Research suggests that internal candidates are likely to
outperform external candidates.
When qualified employees are passed over for external
candidates, a firm’s current employees can become disillusioned
to the point where they begin looking elsewhere for jobs.
When experienced employees leave an organization, they take
with them years of corporate knowhow that is hard to replace.

18
Figure 5.5: Warning Signs
of a Weak Talent “Bench”
Section 5.2b: Internal Recruiting Methods
Some signs that a firm needs to work harder at grooming
internal talent are shown in Figure 5.5.
19
5.2b Internal Recruiting Methods
(slide 2 of 2)
Internal Job Postings
Bulletin boards
Intranets
Identifying Talent through Performance Appraisals
Nine-box grid – A comparative diagram that includes appraisal
and assessment data to allow managers to easily see an
employee’s actual and potential performance.
Skills Inventories and Replacement Charts
Skills inventories – Track an employee’s education, past work

experience, vocational interests, specific abilities and skills,
compensation history, and job tenure to see how they can best
be used
Replacement charts – Used for succession planning
20
Figure 5.6:
An Example of a Nine-Box Grid
Section 5.2b: Internal Recruiting Methods
Figure 5.6 is an example of a nine-box grid.
21
5.3 Improving the
Effectiveness of Recruiting
A firm can improve its effectiveness when it comes to recruiting
by doing the following:
Recruiters need an accurate job analysis.
Line managers and employees need to be intimately involved in
the process.
A job-starting date that works for both the organization and the

potential new hire needs to be established.
After the person has been hired, the firm should conduct a
“debrief” and identify any lessons to improve the recruiting
process.
22
5.3a Using Realistic Job Previews
Realistic job preview (RJP) – Informing applicants about all
aspects of the job, including both its desirable and undesirable
facets
Proponents of RJPs believe that applicants who are given them
are more likely to remain on the job and be successful because
they will experience fewer unpleasant surprises.
23
Explain how realistic job previews (RJPs) operate.
As a manager or business owner, would you use them?

24
ANSWER: The purpose of a realistic job preview (RJP) is to
provide job applicants with information concerning all aspects
of the job, including both its desirable and undesirable facets.
The RJP might also include a tour of the working area,
combined with a discussion of any negative health or safety
considerations and time to talk candidly with the firm’s
employees about the upsides and downsides of the job.
Students’ answers will vary as to whether they would use an
RJP. Proponents of RJPs believe that applicants who are given
them are more likely to remain on the job and be successful
because they will experience fewer unpleasant surprises. Yet
some companies avoid RJPs because they worry that presenting
both the positive and negative aspects of a job could discourage
applicants.
5.3b Surveys and Employee Profiles
Another way to improve a company’s recruiting is to survey
managers, top performers, new hires, and candidates who turned
down jobs.
Employee profiles – A profile of a worker developed by
studying an organization’s top performers to recruit similar
types of people

25
5.3c Recruiting Metrics
Time-to-fill – Metrics that refer to the number of days from
when a job opening is approved to the date a person accepts the
job and begins it
Quality-of-fill – A metric that measures how well new hires
have gotten “up to speed,” are performing, and their retention
levels
Yield ratio – The percentage of applicants from a particular
source that make it to the next stage in the selection process
Acceptance rate – The percentage of applicants who accept a
firm’s jobs after being offered them
Applicant tracking system (ATS) – A system recruiters use to
post job openings, screen résumés and uploaded profiles,
contact via email potential candidates for interviews, and track
the time, costs, and other metrics related to hiring people
26
Figure 5.7: Time-to-Fill Calculations

Section 5.3c: Recruiting Metrics
Figure 5.7 shows how time-to-fill metrics are calculated.
27
5.4 Career Management:
Developing Talent Over Time
Proactive companies see career development and recruiting
functions as strategic imperatives and, therefore, as an ongoing
process designed to maximize the talents of their employees and
retain them.
These companies study their firms’ strategies in conjunction
with their organizational charts, job analysis information, and
external factors such as the labor market and the competition,
and then recruit proactively and continually.
Managers play a key role in expanding the talent pools of firms.
Good managers “grow” talent by listening to their employees’
aspirations, act as coaches, identify their strengths and areas of
improvement, and offer them continual feedback.
Good managers also ensure employees receive training, self-
assessment tools, and information about the organization and
possible career paths within it.
28
Figure 5.8: Steps in the
Career Management Process

Section 5.4: Career Management: Developing Talent Over Time
Figure 5.8 shows the steps in the career manage ment process.
29
5.4a The Goal: Matching the Needs of the Organization to the
Needs of Employees
A career development program should be viewed as a dynamic
process that matches the needs of the organization with the
needs of employees as those needs change.
30
Figure 5.9: Blending the Needs of Individual
Employees with the Needs of Their Organizations
Section 5.4a: The Goal: Matching the Needs of the Organization

to the Needs of Employees
As Figure 5.9 shows, the organization’s goals and needs should
be linked with the individual career needs of its employees in a
way that improves the effectiveness of workers and their
satisfaction as well as achieves the firm’s strategic objectives.
31
5.4b Identifying Career Opportunities and Requirements (slide 1
of 2)
To identify career opportunities and requirements, managers
have to continually analyze the:
Competencies required for jobs
Progression among related jobs
Supply of ready (and potential) talent available to fill those jobs
32
5.4b Identifying Career Opportunities and Requirements (slide 2
of 2)
Job progressions – The hierarchy of jobs a new employee might
experience, ranging from a starting job to jobs that successively
require more knowledge and/or skill
Job progressions serve as a basis for developing career paths —
the lines of advancement in an occupational field within an
organization—for individuals.
An individual’s career advancement can move along several
different paths via promotions, transfers, demotions, and even
exits.
Promotion – A change of assignment to a job at a higher level in

the organization
Transfer – The placement of an employee in another job for
which the duties, responsibilities, status, and pay and benefits
are approximately equal to those of the previous job the person
held
Demotion – A downward transfer that moves an individual into
a lower-level job that can provide developmental opportunities
33
Figure 5.10: Typical Line of Advancement in HR Management
Section 5.4b: Identifying Career Opportunities and
Requirements
Figure 5.10 illustrates a typical advancement for an HR
associate for a large multinational corporation.
34
Figure 5.11:
Stages of Career Development

Section 5.4b: Identifying Career Opportunities and
Requirements
A person’s knowledge, skills, abilities, and attitudes as well as
career aspirations change with age and maturity. The challenges
and frustrations people face at the same stages in their careers
are remarkably similar. A model describing these stages is
shown in Figure 5.11. The stages are (1) preparation for work,
(2) organizational entry, (3) early career, (4) midcareer, and (5)
late career. The typical age range and the major tasks of each
stage are also presented in the figure.
The first stage—preparation for work—encompasses the period
prior to entering an organization, often extending until age 25.
It is a period in which individuals must acquire the knowledge,
abilities, and skills they need to compete in the marketplace.
The second stage, typically from ages 18 to 25, is devoted to
soliciting job offers and selecting appropriate jobs. During this
period, a person might also be involved in preparing for work.
The next three stages entail fitting into a chosen occupation and
organization(s), modifying one’s goals, continuing to improve
one’s productivity, helping groom other employees, and finally
preparing for retirement.
35
5.4c Career Development Initiatives (slide 1 of 2)
Career Counseling
Involves talking to employees about their current job activities
and performance, personal and career interests and goals,
personal skills, and suitable career development objectives

Mentoring Programs
Mentors – Individuals who coach, advise, and encourage
employees of a lesser rank
Reverse mentoring – A program whereby younger employees
are called on to mentor older employees and executives about
social media trends, new technology, and marketplace trends
Tuition Assistance Programs
Corporations often offer their employees tuition assistance to
help them further their careers if they take courses related to the
firms’ businesses..
36
5.4c Career Development Initiatives
(slide 2 of 2)
Career Plateau Initiatives
Career plateau – A situation in which for either organization or
personal reasons the probability of moving up the career ladder
is low
Three types of plateaus:
Structural plateau – Marks the end of promotions
Content plateau – Occurs when a person has learned a job too
well and is bored with day-to-day activities
Life plateau – Is more profound and may feel like a midlife
crisis

37
Figure 5.12:
Career Plateau Questions
Section 5.4c: Career Development Initiatives
Figure 5.12 lists some probing questions managers can ask
themselves if they think their employees are experiencing a
career plateau.
38
5.5 Developing a Diverse Talent Pool
Employers often develop formal EEO/affirmative action policies
to recruit and promote members of protected classes so that
their representation at all levels within the organization
approximates their proportionate numbers in the labor market.
Women
Minorities
People who are disabled
Veterans
Older employees

39
What barriers to career advancement do women and minorities
face?
40
ANSWER: A major employment obstacle for women, both
skilled and unskilled, is the stereotyped thinking that persists
within our society. Women traditionally have been at a
disadvantage because they have not been part of the so-called
“good old boys’ network.” That network is an informal one of
interpersonal relationships that has traditionally provided a way
for senior (male) members of the organization to pass along
news of advancement opportunities and other career tips to
junior (male) members as well as to recommend them. Women
also still make less than men, on average, and sometimes feel as
if the workplace is a “man’s world,” and the proportion of
women in top echelons of management, although growing, still
remains extremely low.
For many minorities, employment opportunities still remain
limited because of educational and societal disadvantages. The
unemployment rates for minority youths are particularly high.

Video Highlight #2
View recruitment videos for three of most successful U.S.
companies today: Google, Apple, and KPMG.
“Google Recruitment Video”
“Apple’s Employee Recruiting Video”
“Why Choose KPMG”
41
VIDEO: Google Recruitment Video (7:21); Apple’s Employee
Recruiting Video (4:35); Why Choose KPMG (3:10)
View recruitment videos for three of most successful U.S.
companies today: Google, Apple, and KPMG.
https://www.youtube.com/watch?v=JcXF1YirPrQ
https://www.youtube.com/watch?v=X9SK052cF3c
https://www.youtube.com/watch?v=vUt1aaLxLuY
TOPICS/CONCEPTS: recruiting, recruitment

Chapter 5Expanding the Talent Pool Recruitment and Careers

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