chapter 5 - recruitment - (8 mc, 1 sa) Flashcards
selection ratio
Selection ratio = # of positions / # of qualified applicants
10/100 = .10 vs. 90/100 = .90
Selection mode vs hiring mode
–> Which scenario is better? Lower number/percentage of applicant pool.
purpose of recruitment
To increase the pool of applicants at a minimum cost
To meet the organization’s legal and social obligations
To help to increase the success rate of the selection process
internal recruitment sources
Used for filling above entry-level jobs
Benefits of a promotion-from-within policy?
- Socialized in the company… already trained
- Develops them within the company
- Builds loyalty and commitment through promotions
Limitations of a promotion-from-within policy?
- Conflict between coworkers (work politics)
internal recruitment sources - Warning signs of a weak talent “bench” - not getting internal applications promoted
It takes a long time to fill key positions.
Key positions can be filled only by hiring from outside.
Vacancies in key positions cannot be filled with confidence in the abilities of those chosen for them.
Replacements for positions often are unsuccessful in performing their new duties
internal recruitment sources - Inventorying In-house Talent (via HRIS)
Information systems containing skills inventories of employees that can be used:
- To screen candidates for an internal job opening
- To predict career paths
- To support succession planning
Job Posting:
- Posting vacancy notices and maintaining lists of employees looking for upgraded positions.
Methods for identifying qualified internal candidates - ASSESSMENT CENTER
A process by which individuals are evaluated as they participate in a series of situations that resemble what they might be called on to handle on the job.
- In-basket exercises
- Leaderless group discussions
- Role playing
- Behavioral interviews
internal recruitment - CLOSED RECRUITMENT
- Employees are not made aware of openings, the organization contacts the ees they are interested in
- Advantages? Problems?
–> Advantages: find most qualified applicants
–> Problems: less applicants and employees may feel hurt if they aren’t chosen
internal recruitment - OPEN RECRUITMENT
- Employees are made aware of the position opening (e.g., job posting)
- Advantages? Problems?
–> Advantages: more applicants
–> Problems: more rejections and is more time consuming
external recruitment sources - internet
Internet Recruiting (e-cruiting)
- Can reach a large audience – national/ international
- Can also target your audience by where you place your message
- Is relatively low cost
- Can use to locate passive job seekers
- Can use to show videos of a typical day in the job
- Can help create an employment “brand”
Methods:
- Posting jobs on the organization’s own website
- Posting jobs on job websites
- Social media – LinkedIn, Facebook, Blogs
EXAMPLE - CIsco
HR metrics after they moved to use of e-cruiting:
Cisco cost per hire = $6,500
Industry cost per hire = $10,800
100 recruiters were able to go from handling 2,000 to 8,000 applicants
Cisco hiring cycle = 45 days
Three years previous = 113 days (prior to use of e-cruiting)
Internet recruiting shaves an average of 20 days off the hiring cycle
why do we externally recruit
Two instances when an organization will use external recruiting:
1. For filling entry-level jobs
2. For filling upper level jobs with no available internal applicants
external recruitment sources - employee referrals
The most effective of all recruitment sources
Which recruitment sources are most useful/efficient in locating qualified applicants? → employee referrals
methods for improving recruitment effectiveness/HR metrics: YIELD RATIOS
Yield ratio = Percentage of applicants from a recruitment source that make it to ANY later stage of the selection or employment process. (accepts/applicants)
College recruiting = 100 applicants, 40 acceptable = 40% yield
Internet = 500 applicants, 45 acceptable = 9% yield
Employment agencies = 50 applicants, 15 acceptable = 30% yield
Employee referrals = 8 applicants, 6 acceptable = 75% yield
Example yield ratios:
Above average ees / # qualified applicants
# Job offers / # qualified applicants
Anything can be examined in a yield ratio—you can compare any downstream stage to an earlier stage in the recruitment/selection/employment process.
methods for improving recruitment effectiveness/HR metrics: COST PER HIRE
Recruiting metrics - cost per hire
Cost of Recruitment (per employee hired)
You can calculate recruitment costs in terms of:
1) Cost per hire per recruitment source
2) Cost per hire across all recruitment sources
Recruitment costs by source
College recruiting = Total cost $25,000, 15 hires = $1,667 / hire
Internet = Total cost: $650, 4 hires = $162 / hire
Private employment agencies = Total cost $35,000, 7 hires = $5,000 / hire
Employee referrals = Total cost: $3,000, 3 hires = $1,000 / hire
Total Recruitment costs per hire = $63,650 / 29 hires = $2,195 / hire
methods for improving recruitment effectiveness/HR metrics: QUALITY OF HIRE
Quality of Hire (or Fill) = (PR + HP + HR) / N
PR = Average job performance rating of new hires
HP = % of new hires reaching acceptable productivity within an acceptable time frame
HR = % of new hires retained after one year
N = number of indicators
PR = average 3.5 on 5.0 scale (70%)
HP = Of 100 hires made one year ago, 75 are meeting acceptable productivity levels (75%)
HR = 20% turnover (80% retention rate)
N = 3
Quality of hire = (70 + 75 + 80)/3 = 75
75% quality level for new hires hired over the last hiring cycle
methods for improving recruitment effectiveness/HR metrics: ACCEPTANCE RATES
Acceptance Rate
Percentage of applicants who accept our job offers
100 job offers, 75 accepted = 75% acceptance rate
What factors could be causing a low acceptance rate?
Applicants may be receiving better offers from other companies or the recruitment process turned them away
