![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](https://image.slidesharecdn.com/recruitmentandselectioncompletenote-220922131646-fb402a2c/85/Recruitment_and_Selection_Complete_note-pptx-39-320.jpg)
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Recruitment_and_Selection_Complete_note.pptx
- 1.
- 2. Do you agree? Greatcompanies “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
- 3. Human Resource Planning Human Resource 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.
- 4. Factors affecting HumanResource 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.)
- 5. Factors affecting HumanResource 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.)
- 6. Human Resource Planning Two Steps Demand Forecasting Supply Forecasting
- 7. Demand Forecasting DelphiTechnique Nominal Group Technique Ratio Analysis Work Study Method
- 8. Demand Forecasting DelphiTechnique Very important technique used for estimating demand of human resources. Takes into consideration human resources requirements given by a group of experts i.e. mangers. The human resource experts collect the HR needs, summarises the various responses and prepare a report. This process is continued until all experts agree on estimated human resources requirement.
- 9. Demand Forecasting Nominalgroup technique Problem solving process involving problem identification, solution generation and decision making Used in group of many sizes who wants to make their decision quickly, as by a vote, but want everyone’s opinions taken into account
- 10. Demand Forecasting RatioAnalysis Demand for human resources is also estimated on the basis of ratio of production level and number of workers available. This ratio will be used to estimate demand of human resources. Estimated production for next year = 1,40,000 units Estimated no. of workers needed (on the basis of ratio-trend of 1: 200) will be = 700
- 11. Demand Forecasting WorkStudy Method This technique is suitable where the estimated work- load is easily measureable. Under this method, estimated total production and activities for a specific future period are predicted. This information is translated into number of man- hours required to produce per units taking into consideration the capability of the workforce. Past-experience of the management can help in translating the work-loads into number of man-hours required.
- 12. Demand Forecasting I. Estimatedtotal annual production = 300,000 units II. Standard man-hours needed to produce each unit = 2 hrs III. Estimated man-hours needed to meet estimated annual production (i x ii) = 600,000 hrs IV. Work ability/contribution per employee in terms of man-hour = 1,500 units V. Estimated no. of workers needed (iii / iv) = 600000/1500 = 400
- 13. Supply Forecasting InternalSupply External Supply
- 14. Internal Supply PresentSupply Qualification inventories are one way of forecasting inside candidates A list of employees, their education, any internal training, special skills, and succession planning for promotion is beneficial to the future planning. A second method is referred to as personnel replacement. This is defined as the employee's present performance and the desire for promotion to additional positions based on performance, skills and experience.
- 15. External Supply Thereare numerous factors to consider for external candidates They include the geographic area of the company, potential candidates graduating From college, individuals entering or leaving the workforce, The level of skills and experience required to perform the internal jobs and the competing employers for the same skill set. This information is beneficial in determining competitive benefits and salary offerings.
- 16. Recruitment is notabout 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 Any example you know of?
- 17. Recruitment is acritical management function that all levels of the organization need to be involved in planning and implementation
- 18. Global Sourcing ischanging 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
- 19. Changing Role ofHR: 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.
- 20. Pros and Consof 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
- 21. Three MainFunctions of Recruitment Process are: Attract a pool of suitable candidates Deter unsuitable candidates from applying Create a positive image of the organization
- 22.
- 23. 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
- 24. 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.
- 25. 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
- 26. Despite theimportance 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.
- 27. Recruitment Strategy: ASix 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?
- 28. Talent Forecasting 1. Businessstrategy —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.
- 29. Strategic Recruiting Stages HumanResource Planning • How many employees are needed? • When employees will be needed? • What specific KSA’s (Knowledge, Skills & Abilities) are needed? Organizational Responsibilities • HR staff & operating managers • Recruiting presence and image • Training of recruiters
- 30. Strategic Recruiting Decisions •Organizational-based Vs. outsourcing • Regular Vs. flexible staffing • Recruiting source choices Recruiting Methods • Internal methods • Internet/ web-based • External methods
- 31. Class Activity DevelopJob Description & Job Specification Marketing Executive Marketing Manager Finance Executive Account Executive Administrative Officer Administration Manager
- 32. Selection • The processof assessing candidates and appointing a post holder • Applicants short listed – most suitable candidates selected • Selection process – varies according to organisation.
- 33. 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
- 34. Choice of SelectionMethods • Number of applicants • Criticality of position • Cost/effort involved • Predictive validity • Extent of preparation required
- 35. When using psychologicaltests.. • 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 Nepali situations
- 36. Determining Selection Standards Sourcesof Information about Applicants • Application Forms • Reference Checks • Physical Examination Selection Tests (Reliability & Validity) The Selection Interview
- 37. Recruitment: Return onInvestment (ROI) • Recruitment return on investment (ROI) understands and compares the elements, costs and risks of a recruitment related project to the expected benefits
- 38. 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
- 39. 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
- 40. 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
- 41. Number Hired (HitRate) 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
- 42. Rewards Compensati on Health Benefits Retirement Benefits Vacation Opportunity Development Opportunities Future Career Opportunities Organization Growth Rate Meritocracy Organizational Stability Organization CustomerPrestige 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