Chapter Summary
5.1 Describe the main external forces acting on recruiting efforts.
The main external forces are the effective labor market and the social and legal forces that act on us as well as our potential recruits. These forces include (1) supply and demand, meaning whether there are plenty of candidates for the available jobs or whether there are more jobs than candidates; (2) the unemployment rate in the recruiting area; (3) competitors and whether competition for available workers is strong or weak; and (4) the social and legal environments, meaning the social factors that recruits emphasize when weighing whether or not to accept employment in a particular company and what limits are placed on recruiting efforts by laws and regulations.
5.2 Name the five main organizational recruiting considerations.
The five considerations are organizational policies, when we should recruit new employees, alternatives to recruiting, the reach of the recruiting effort, and how to use social media. Policies set the other four items. When to recruit tells us whether or not we should first mitigate a shortage with other organizational tactics, such as overtime. Alternatives include using overtime, outsourcing some work, or using temporary or contract workers or other options to mitigate a shortage. Reach determines the geographic locations that we will search for new employees. Finally, we need to determine how we are willing to use social media to assist in our recruiting efforts.
5.3 Identify the major advantages and disadvantages of both internal and external recruiting.
The major advantages of internal recruiting include increases in organizational engagement and job satisfaction, the ability to learn more about the “big picture” in the company, the fact that the individual feels comfortable working for the company, the fact that the company knows the individual and that person’s work history, lower recruiting costs, and a relatively speedy process compared to external recruiting. Disadvantages include the facts that the pool of applicants is smaller, you will have to fill the old job of the person you hire, success in one job doesn’t necessarily mean success in a different job, external candidates may be more qualified, internal candidates may feel they are entitled to the job, and we may perpetuate resistance to change and stifle innovation and creativity.
Advantages of external recruiting are that we avoid perpetuating resistance to change and encourage innovation and creativity, we may be able to find individuals with complex skill sets who are not available internally, there will be lower training costs for complex positions, and we have the potential to increase diversity. Disadvantages include potential disruption of the work team, the fact that it takes longer than internal recruiting and costs more, the fact that it may adversely affect current employees’ motivation and satisfaction, higher orientation and training costs, and the fact that the candidate may look great on paper but may not perform after being hired.
5.4 Summarize the major challenges and constraints involved in the recruiting process.
The most obvious constraint is money. We have to avoid spending too much on the recruiting process. Additionally, organizational policies also affect how we recruit. Our organization’s image also plays a significant role in our ability to source the people we need from the communities around us. Next is the type of job. Not all jobs are clean or fun. Finally, our selection and training of the recruiter and their delivery of an RJP is a major factor in recruiting success. We have to find an individual who has the ability to actively listen and empathize with the candidate.
5.5 Discuss the basic methods available for evaluating the recruiting process.
The recruiting yield ratio calculates how many people make it through the recruiting step to the next step in the hiring process. Another measure is cost per hire. You also may want to analyze time required to hire. New-hire turnover is another measure of success. If we have high rates of turnover immediately after recruitment and selection, we probably need to reevaluate our recruiting and selection process. Finally, we can also analyze new-hire performance ratings and compare them to the organizational norms. If our new hires perform at a significantly lower level than the norm, we may want to analyze where they are not being successful and provide training opportunities to increase their chances for long-term success.