C05 - HR Planning and Recruitment

Because learning changes everything.
Chapter 5
Human Resource
Planning and Recruitment
Human Resource Management

Gaining A Competitive Advantage
THIRTEENTH EDITION
Raymond Noe, John Hollenbeck, Barry
Gerhart, Patrick Wright
© 2023 McGraw Hill, LLC. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill, LLC.
Introduction
Societal trends and events affect employers through:
• Consumer markets (demand for goods and services)
• Labor markets (supply of people)
Keys to effectively utilizing labor markets:

• Clear idea of current configuration of human resources.
• Know where organization is going and how present HR
configuration relates to future configuration.
• Plan to address discrepancies.
© McGraw Hill, LLC 2

Figure 5.1 Overview of the Human Resource
Planning Process
Access the text alternative for slide images.

The Human Resource Planning Process 1
Forecasting:
• Ascertain supply of and
demand for various types of
human resources.
• Predict areas within
organization that will have
future labor shortages or
surpluses.
LO 5-1
Forecasting (continued)
• Determining labor demand:

• Demand forecasts are
developed around specific job
categories or skill areas relevant
to organization’s current and
future states.
• Organizations differ in the

sophistication with which labor
demand forecasts are derived.
At the most sophisticated level,
an organization might have
statistical models that predict
labor demand.
LO 5-2
• Determining labor supply:
• Internal labor supply
analyzes how many people
are currently in various job
categories within the
company.
• Consider retirements,
promotions, transfers,
voluntary turnover, and
terminations.

• Determining labor surplus
or shortage:
• Ascertain whether there
will be a labor shortage or
labor surplus for certain
job categories.
LO 5-3
Goal Setting, Strategic Planning and

Program Evaluation:
• Focus on the problem and identify

programs aimed at redressing a
labor shortage or surplus.
• Implement said programs and

evaluate if effective (i.e. labor
shortage addressed or labor
surplus reduced)

Goal Setting and Strategic Planning (continued)

• Downsizing:
• Reduce labor costs.
• Technological changes reduce need for labor.
• Immediate success on reducing costs but negative effects on long-

term organizational effectiveness.
• Leads to loss of talent, disrupts social networks needed to promote
creativity and flexibility.
• May lose irreplaceable assets.
• Motivation levels drop off.


• Early retirement programs and buyouts:
• Baby Boomers (late 50s to 70s) delaying retirement, which
may cost more and end up blocking advancement of
younger workers
• Some concerns about losing the experience and implicit
knowledge of older workers.
• One solution: Voluntary attrition through early retirement
incentive programs.


• Temporary workers and independent contractors:
• Most widespread means of eliminating a labor shortage.
• Advantages.
• Flexibility.
• Frees firm from administrative tasks and financial burdens of
being the “employer of record.”
• Agencies typically handle employees.
• Where necessary, temporary person can bring objective
perspective to organization’s problems and procedures.


• Outsourcing and offshoring:
• Outsourcing uses outside organizations for a broad set of
services.
• Offshoring is outsourcing where jobs leave one country and
go to another.
• Increase due to rapid technological changes.
• Quality control problems, security violations, and poor customer
service experiences.

Table 5.2 Options for Reducing an Expected
Labor Surplus
OPTION SPEED HUMAN SUFFERING
Downsizing Fast High
Pay reductions Fast High
Demotions Fast High
Transfers Fast Moderate
Work sharing Fast Moderate
Hiring freeze Slow Low
Natural attrition Slow Low
Early retirement Slow Low
Retraining Slow Low

Table 5.3 Options for Avoiding an Expected
Labor Shortage
OPTION SPEED REVOCABILITY
Overtime Fast High
Temporary Fast High
employees
Outsourcing Fast High
Retrained Slow High
transfers
Turnover Slow Moderate
reductions
New external Slow Low
hires
Technological Slow Low
innovation

The Human Resource Recruitment Process 1
HR recruitment is any practice or activity by the

organization to identify and attract potential employees.
• Three areas of recruitment:

1. Personnel policies.
2. Recruitment sources.
3. Recruiter's characteristics and behavior.
LO 5-4
Personnel Policies:
• A generic term used to refer to organizational decisions that
affect the nature of the vacancies for which people are recruited.
• Internal Job Postings: Vacancies provide opportunities for

advancement and promotion (promote from within).
• Companies that take a “lead-the-market” approach to pay—

that is, a policy of paying higher-than-current-market wages—
have a distinct advantage in recruiting.
• Employment-at-will policies: policies stating that either an

employer or an employee can terminate the employment
relationship at any time, regardless of cause.

Recruitment Sources
• Internal sources:
• Applicants already known to the firm and knowledgeable about
the job.
• Cheaper and faster.
• Inside hires often outperform outsiders.
• External sources:
• May not be any internal recruits.
• Exposure to new ideas or ways of doing business.
• Good way to strengthen company and weaken competitors.
LO 5-5
Recruitment Sources (continued)

• Direct applicants and referrals:
• Direct applicants: people who apply for a vacancy without
prompting from an organization.
• Referrals: people who are prompted to apply for a vacancy by
someone within the organization.


• Electronic recruiting (e-recruiting):
• Use of the organization’s website to solicit applications.
• Online job boards:
• LinkedIn, JobStreet, etc.


• Public and private employment agencies:
• State employment office (DOLE).
• Primarily serve blue-collar market.
• Private agencies.
• Primarily serve white-collar market.
• Charge organization for referrals.
• Don’t have to be unemployed to use them.
• Executive search firms (headhunters).


• Colleges and universities:
• On-campus interviewing and job fairs.
• Internship programs.
• Evaluating the quality of a source:

• Yield ratios: the percentage of applicants who successfully
move from one stage of the recruitment and selection
process to the next.

Recruiters:
• Primarily responsible for the initial recruitment and
screening of applicants into the company
• Typically handle the end-to-end recruitment process:
• CV screening
• Initial interview
• Assessment
• Final interview by hiring manager
• Job offer & onboarding
LO 5-6
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© 2023 McGraw Hill, LLC. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill, LLC.

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Because learning changes everything.

Human Resource Management

Keys to effectively utilizing labor markets:

© McGraw Hill, LLC 2

Access the text alternative for slide images.

© McGraw Hill, LLC 3

• Determining labor demand:

• Organizations differ in the

© McGraw Hill, LLC 6

Goal Setting, Strategic Planning and

• Focus on the problem and identify

• Implement said programs and

© McGraw Hill, LLC 8

Goal Setting and Strategic Planning (continued)

• Immediate success on reducing costs but negative effects on long-

© McGraw Hill, LLC 9

Goal Setting and Strategic Planning (continued)

© McGraw Hill, LLC 10

Goal Setting and Strategic Planning (continued)

© McGraw Hill, LLC 11

Goal Setting and Strategic Planning (continued)

© McGraw Hill, LLC 12

© McGraw Hill, LLC 13

© McGraw Hill, LLC 14

HR recruitment is any practice or activity by the

• Three areas of recruitment:

3. Recruiter's characteristics and behavior.

• Internal Job Postings: Vacancies provide opportunities for

• Companies that take a “lead-the-market” approach to pay—

• Employment-at-will policies: policies stating that either an

© McGraw Hill, LLC 16

• Cheaper and faster.

• Inside hires often outperform outsiders.

• Exposure to new ideas or ways of doing business.

• Good way to strengthen company and weaken competitors.

Recruitment Sources (continued)

© McGraw Hill, LLC 18

Recruitment Sources (continued)

© McGraw Hill, LLC 19

Recruitment Sources (continued)

• Charge organization for referrals.

• Don’t have to be unemployed to use them.

• Executive search firms (headhunters).

© McGraw Hill, LLC 20

Recruitment Sources (continued)

• Evaluating the quality of a source:

© McGraw Hill, LLC 21

• Job offer & onboarding

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