Strategic Staffing Chapter 1 Strategic Staffing

Strategic StaffingChapter 1 Strategic StaffingJean Phillips & Stanley GullyCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-11COHR 303 - M/T and F/E PackageStaffing for Competitive AdvantageA competitive advantage is something that a company can do differently from its competitors that allows it to perform better, survive, and succeed in its industry can be defined by technology, innovative product lines, low-cost products, or excellent customer service. Every companys employees create, enhance, or implement the companys competitive advantage Where do these employees come from? It all begins with the staffing process Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-22COHR 303 - M/T and F/E PackageWhy Is Staffing Important?Staffing outcomes determine who will work for and represent the firm, and what its employees will be willing and able to do.Staffing therefore influences the success of future training, performance management, and compensation programs as well as the organizations ability to execute its business strategy. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-33COHR 303 - M/T and F/E PackageWhat is Talent Management? Talent management is the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining, and utilizing people with the required skills and aptitude to meet current and future business needs.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-4What Is Strategic Staffing?Definition: The process of staffing an organization in future-oriented and goal-directed ways that support the organizations business strategy and enhance organizational effectiveness. This involves the movement of people into, through, and out of the organization. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-55COHR 303 - M/T and F/E PackageHow Strategic Staffing Differs from Traditional StaffingTraditional staffing:Less tied to strategyMore reactive and more likely to be done in response to an openingLacks continuous improvement effortStrategic staffing systems incorporate:Longer-term planningAlignment with the firms business strategyAlignment with the other areas of HRAlignment with the labor marketTargeted recruitingSound candidate assessment on factors related to job success and longer-term potentialThe evaluation of staffing outcomes against pre-identified goals Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-66COHR 303 - M/T and F/E PackageStaffing ProcessFigure 1-1: A Flowchart of the Staffing ProcessCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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7COHR 303 - M/T and F/E PackageSeven Components of Strategic Staffing

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1-8Table 1-18COHR 303 - M/T and F/E PackageWorkforce PlanningDefinition: The process of predicting an organizations future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organizations business strategy.Usually involves both the hiring manager and a staffing specialist (determines # and types of people needed, competencies, and talents, gauge availability of talent)Can be short-term and focus on an immediate hiring needCan be long-term and focus on the organizations needs in the future. Workforce planning is better strategically the more it addresses both the firms short- and long-term needs.Can also address demographic issues (aging workplace or diversity issues)Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-99COHR 303 - M/T and F/E PackageSourcing and Recruiting TalentSourcing: locating qualified individuals and labor markets from which to recruit Recruiting: all organizational practices and decisions that affect either the number or types of individuals willing to apply for jobs and accept job offers Sourcing identifies people who would be good recruits. Recruiting activities entice them to apply to the organization and accept job offers, if extended.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1010COHR 303 - M/T and F/E PackageSelecting and Acquiring TalentSelecting: assessing job candidates and deciding whom to hire Acquiring: involves putting together job offers that appeal to chosen candidates, and persuading job offer recipients to accept those job offers and to join the organization

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1-1111COHR 303 - M/T and F/E PackageDeploying TalentDeploying: assigning talent to appropriate jobs and roles in the organization Succession planning and career development enhance deployment optionsSocializing: the process of familiarizing newly hired and promoted employees with their job, workgroup, and organization Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1212COHR 303 - M/T and F/E PackageRetaining TalentSuccession management and career development are effective toolsTurnover of high performers can be expensiveTurnover of low performers can be beneficialRetention saves money in recruiting and hiring replacements for those leavingCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1313COHR 303 - M/T and F/E PackageMatchmaking ProcessRecruiting and selection are interdependent, two-way processes in which both employers and recruits try to look appealing to the other while learning as much as they can about their potential fit. Applicants and organizations choose each other.Recruitment continues throughout the selection and acquisition process until the person is no longer a viable job candidate, or until a job offer is accepted and the person reports for work. Some firms continuously recruit current employees to maintain their attractiveness as an employer and enhance retention.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1414COHR 303 - M/T and F/E PackageIdentifying Staffing GoalsProcess GoalsRelate to the hiring process itself- i.e. how many of what quality employees apply; attracting appropriate numbers of diverse applicants; meeting hiring timeline goals (within two weeks).Outcome GoalsRelate to the product of the hiring effort i.e. number and quality of people hired; financial return on the staffing investment; whether the effort improved organizational effectivenessCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-15Staffing GoalsShould be aligned with improving the strategic performance of the staffing system.The primary staffing goal is to match the competencies, styles, values, and traits of job candidates with the requirements of the organization and its jobs. Strategic staffing goes even further and enables the organization to better execute its business strategy and attain its business goals. Staffing goals should be consistent with the goals and needs of all stakeholders in the staffing process, including applicants and hiring managers.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1616COHR 303 - M/T and F/E PackageIntegration With Other Areas of HRTraining Hire competencies or train internally?Compensation Low / high wage affects quality of candidates, using performance pay as motivationPerformance management can affect turnover if not effectiveSuccession planningCareer developmentCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-1717COHR 303 - M/T and F/E PackageStrategic StaffingChapter 2 Business and Staffing StrategiesJean Phillips & Stanley Gully Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-1818COHR 303 - M/T and F/E PackageWhy Does One Company Succeed and Another Fail?Staffing plays a central role in creating and enhancing any organizations competitive advantage Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-1919COHR 303 - M/T and F/E PackageResource-Based View of the FirmProposes that a companys resources and competencies (including its talent) can produce a sustained competitive advantage by creating value for customers by:Lowering costsProviding something of unique valueOr some combination of the two Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2020COHR 303 - M/T and F/E PackageResource-Based View of the FirmFocuses attention on the quality of the skills of a companys workforce at various levels, and on the quality of the motivational climate created by management. Human resource management is valued not only for its role in implementing a given competitive scenario but also for its role in generating strategic capability.Staffing has the potential to create organizations that are more intelligent and flexible than their competitors, and that exhibit superior levels of cooperation and operation.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2121COHR 303 - M/T and F/E PackageFive Requirements of a Competitive Advantage Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-22

Table 2-122COHR 303 - M/T and F/E PackageBusiness StrategyDefinition: how a company will compete in its marketplaceCompetitive advantage: anything that gives a firm an edge over rivals in attracting customers and defending itself against competition To have a competitive advantage a company must be able to give customers superior value for their money (a combination of quality, service, and acceptable price) Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2323COHR 303 - M/T and F/E PackageComponents of Business StrategyBusiness strategy involves the issue of how to compete, but also encompasses: The strategies of different functional areas in the firmHow changing industry conditions such as deregulation, product market maturity, and changing customer demographics will be addressedHow the firm as a whole will address the range of strategic issues and choices it faces Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2424COHR 303 - M/T and F/E PackageSome Sources of Competitive AdvantageInnovation: developing new products, services, and markets and improving current onesCost: be the lowest-cost providerService: provide the best customer support before, during, or after the saleQuality: provide the highest quality product or serviceBranding: develop the most positive image Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2525COHR 303 - M/T and F/E PackageSources of Competitive AdvantageDistribution: dominate distribution channels to block competitionSpeed: excel at getting your product or service to consumers quicklyConvenience: be the easiest for customers to do business withFirst to market: introduce products and services before competitors Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2626COHR 303 - M/T and F/E PackageThree Types of Business Strategy1. Cost leadership strategy: be the lowest cost producer for a particular level of product quality (Wal-Mart, Dell, FedEx)Competitive advantage based on operational excellence: maximizing the efficiency of the manufacturing or product development process to minimize costsThis can only be achieved with trainable and flexible employees who avoid waste and lower production costsLook for adaptable, trainable employees that can follow standard procedures! Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2727COHR 303 - M/T and F/E PackageThree Types of Business Strategy2. Differentiation strategy: developing a product or service that has unique characteristics valued by customers and for which the firm may be able to charge a premium price: (Rolex, Lexus, Johnson & Johnson, Nike, 3M, Apple)Competitive advantage based on product innovationLook for creative, high tolerance for ambiguity, entrepreneurial mindset

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2828COHR 303 - M/T and F/E PackageThree Types of Business Strategy3. Specialization strategy: focus on a narrow market segment or niche and pursue either a differentiation or cost leadership strategy within that market segment (Starbucks, Red Lobster, Seiko) Competitive advantage based on customer intimacy: deliver unique and customizable products or services to meet their customers needs and increase customer loyalty aim for team players with good people skillsConsulting, retail and banking strive for customer intimacyLook for networking, customer relation skills, Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-2929COHR 303 - M/T and F/E Package4. Growth StrategyDefinition: company expansion organically (happening as the organization expands from within by opening new locations) or through mergers and acquisitions Success depends on the firms ability to find and retain the right number and types of employees to sustain its intended growth.Organic growth requires an investment in recruiting, selecting, and training the right people to expand the companys operations. Mergers and acquisitions expand an organizations business and can also be a way to acquire the quality and amount of talent a firm needs to execute its business strategy. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3030COHR 303 - M/T and F/E PackageOrganizational Life Cycle and Strategy ChoiceIntro-Growth-Maturity-Decline life cycleStrategy during intro phaseAttracting top talent is a priorityCompany must meet market compensation rates Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3131COHR 303 - M/T and F/E PackageOrganizational Life Cycle and Strategy ChoiceStrategy during growth phaseNew and growing firms often pursue innovation or differentiation strategies to distinguish themselves from their competition. Because they are less established and thus higher-risk employers, they often need to invest more money and resources in staffing to attract the talent they need to grow. Because they lack a strong internal talent pool and need to add new employees as they grow, they frequently need to hire from outside the organization and tend to have an external talent focus. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3232COHR 303 - M/T and F/E PackageOrganizational Life Cycle and Strategy ChoiceStrategy during maturity phase when products and services have fully evolved, and the products market share has become establishedThe focus shifts to maintaining or obtaining further market share through cost leadership, often by streamlining operations and focusing on efficiency.Because mature companies have a larger pool of internal talent from which to draw, the talent focus becomes more internal. Requires more adaptable and mobile employees as company may restructure Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3333COHR 303 - M/T and F/E PackageOrganizational Life Cycle and Strategy ChoiceStrategy choice during decline phase when markets are shrinking and business performance is weakeningCan pursue a cost-leadership strategy and allow the decline to continue until the business is no longer profitable Focus on reducing labor and other costsCan try to make changes to revive the product or serviceIf it chooses to try to change its product or service, the firm typically adopts a specialization or differentiation strategyThis can change the talent mix needed Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3434COHR 303 - M/T and F/E PackageTalent PhilosophyA system of beliefs about how employees should be treated How should the organization think about its employees? expendable or investment?

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HR and Staffing StrategiesHuman resource strategy: the linkage of the entire human resource function with the firms business strategy in order to improve business strategy execution Strategic HR mgmt aligns goals and values of company with those of employees.Staffing strategy: the constellation of priorities, policies, and behaviors used to manage the flow of talent into, through, and out of an organization over time

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-3636COHR 303 - M/T and F/E PackageThe Firms Commitment to DiversityA firm can proactively recruit a diverse mix of workers and strive to incorporate diversity into its workplace--- or it can more passively allow diversity to happen on its own.Well managed, heterogeneous groups outperform homogeneous groups in problem solving, innovation, and creative solution building. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-37Applicants and Employees as Either Assets or InvestorsIf applicants and employees are thought of as assets, the staffing focus is on managing costs and controlling the asset. (acquire employees cheaply and quickly good for low-cost strategy)By contrast, if applicants and employees are thought of as investors rather than expenses, the focus is on establishing a mutually beneficial relationship in which the company invests in their resources. (provide return on personal investment in the company) Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-38The Firms Commitment to Ethical BehaviorA firm with a talent philosophy focused on maintaining high ethical standards will be more forthcoming and communicate more clearly with applicants and build trust among employees. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-39Nine Elements of Staffing StrategyDo we want a core or flexible workforce?Core employees consist of workers considered to be central to what the organization does or produces.Flexible workers or contingency workers have less job security.Do we prefer to hire internally or externally? Do we want to hire for or train needed skills?Do we want to replace or retain our talent?What levels of which skills do we need where?

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-4040COHR 303 - M/T and F/E PackageNine Elements of Staffing StrategyWill we staff proactively or reactively?Job-Oriented Staffing: recruit when you need to fill a job openingTalent-oriented staffing: recruit and hire when no specific job opening (labour market tight)Which jobs should we focus on?Is staffing treated as an investment or a cost?Will staffing be centralized or decentralized?Centralized: All staffing activities channeled through 1 unit (economies of scale, uniform procedures)Decentralized: Different units house own staffing activities (specialized hiring, more responsive)Combined some staffing function shared, others decent.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-4141COHR 303 - M/T and F/E PackageCompetitive Talent AdvantageHuman capital advantage: Hiring and retaining outstanding people that produces a stock of exceptional talentHuman process advantage: superior work processes create a competitive advantage. The firms work gets done in a superior way. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall2-4242COHR 303 - M/T and F/E PackageLEGAL FRAMEWORK CANADAChapter 3Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-43Human Rights Laws and LegislationDiscriminationThe act of treating people differently, negatively or adversely and making a distinction between certain individual, or groups based on prohibited grounds of discrimination Direct discrimination (conscious act)Indirect/adverse affect/constructive discrimination Systemic Discrimination (e.g., ageism)Discrimination based on AssociationHuman Rights Laws and LegislationBona Fide Occupational Requirements (BFOR)A practice that is established as an essential requirement of the job and is thus not discriminatoryThe Meiorin Case established a 4-part testAccommodationResponsibility to eliminate rules, practices or barriers that have an adverse impact on individuals with disabilitiesDuty to AccommodateAn integral responsibility of employers to promote inclusion (can involve work schedules, changes to work done, or the work environmentReasonable AccommodationObligation to the point of undue hardshipIndividual AccommodationFlexibility in dealing with individual employee requestsHuman Rights Laws and LegislationHarassment A discriminatory practice to harass an individual based on a prohibited ground of discriminationCan take many formsVerbal abuse or threatsUnwelcome remarks about a persons body, attire, age, marital status, ethnic or national origin, religion, etc.Displaying offensive or derogatory picturesPractical jokes that cause embarrassment Unwelcome invitations Leering or other gesturesCondescension or paternalism that undermines self-respectUnnecessary physical contactPhysical assault Strategic StaffingChapter 4 Strategic Job Analysis and Competency ModelingJean Phillips & Stanley GullyCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-4747COHR 303 - M/T and F/E PackageJob AnalysisDefinition: a systematic process of identifying and describing the important aspects of a job (incl. working conditions, tools, technologies) and the characteristics workers need to perform the job well Helps define the ideal individual for a job from the perspective of the company, its strategy, and their potential coworkers.Job analyses also help group jobs into job families or groupings of jobs that call for similar worker characteristicsEnables firm to hire people for different jobs from same poolCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-4848COHR 303 - M/T and F/E PackageJob Analysis for StaffingA job analysis that produces a valid selection system identifies worker characteristics that: Distinguish superior from average and unacceptable workers; Are not easily learned on the job; and Exist to at least a moderate extent in the applicant pool. Typically involves job analyst collecting info from those who hold the job + supervisors. They then compile and summarize this info and have job experts check it.Future-oriented job analysis: job analysis technique for analyzing new jobs or analyzing how jobs will look in the future Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-4949COHR 303 - M/T and F/E PackagePractical Reasons to do a Job Analysis

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4-50Table 4-350COHR 303 - M/T and F/E PackageJob DescriptionA written description of the duties and responsibilities of the job itself based on a job analysis. Job descriptions usually include: The size and type of organizationThe department and job title The salary rangePosition grade or levelTo whom the employee reports and for whom the employee is responsible Brief summary of the main duties and responsibilities of the jobBrief summary of the occasional duties and responsibilities of the jobAny special equipment used on the jobAny special working conditions (e.g. shift or weekend work, foreign travel, etc.) Purpose and frequency of contact with others The statement, Other duties as assigned to accommodate job changes and special projectsCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5151COHR 303 - M/T and F/E PackagePerson SpecificationPerson specification or job specification: summarizes the characteristics of someone able to perform the job well Describes the ideal candidateEssential criteria: job candidate characteristics that are critical to adequate new hire performance and for which candidates should be screened Desirable criteria: job candidate criteria that may enhance the new hires job performance, but that are not essential to adequate job performance Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5252COHR 303 - M/T and F/E PackageOutcomes of Job AnalysisFigure 4-1Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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53COHR 303 - M/T and F/E PackageJob Analysis MethodsMust be:Reliable, or replicableA reliable job analysis procedure will produce the same results when it 1) is applied to the same job by a different job specialist; 2) when a different group of job experts is used; and 3) when it is done at a different time.Valid, or accurately measure what it was intended to measure A valid job analysis accurately captures the target job. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5454COHR 303 - M/T and F/E PackageJob Analysis TechniquesCritical incidents technique: identifies behaviors that lead to extremely effective or extremely ineffective job performance (identify circumstances, action, consequences) collect thru interviews or written records. Use to identify set of critical job duties and relevant worker characteristics for successful performance of these dutiesCan also collect duties first and give examples of good or bad performanceUseful for infrequent or unusual work events that may be missedInexpensive; used in conjunction with other techniques to illustrate extremesCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5555COHR 303 - M/T and F/E PackageJob Analysis TechniquesJob elements method: uses expert brainstorming sessions to identify the characteristics of successful workers Used in industrial occupations and lesser-skilled jobs

Select group of expertsConduct brainstorming sessions to identify characteristics that successful workers haveAssign weights to each characteristic based on Proportion of barely acceptable workers who have job elementHow effective the element is when picking a superior workerThe trouble likely to occur if element is not consideredPracticality Analyze job element dataCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5656COHR 303 - M/T and F/E PackageJob Analysis TechniquesStructured interview technique: subject matter experts provide information about the job verbally in a structured interview Good if small # of job experts available or must be quickShould be conducted by job analyst professional to reduce bias (as limited data exists)Task inventory approach: job experts generate a list of 50-200 tasks that are grouped in categories reflecting major work functions that are then evaluated on importance and amount of time spent.Structured Questionnaires: a standardized, structured questionnaire that can be used for just about any job (e.g., the Position Analysis Questionnaire or PAQ)Advantage: Speed and low cost.; more objective comparisonDisadvantage: high reading level, not very customizableCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5757COHR 303 - M/T and F/E PackageIssues with Job AnalysisEmployees can emphasize only what theyre good at.May get defensive or worried that jobs are being analyzed.Emphasize that it will help identify employee characteristics that will augment the firms business strategy and increase companys return on staffing investmentCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5858COHR 303 - M/T and F/E PackagePlanning Job AnalysesDetermine time and resources necessary and availableMore resources = greater validityCollect background information about the company, its culture and business strategy, the job, and the jobs contribution to strategy execution and competitive advantageIdentify job experts (more high-performing employees)Identify appropriate job analysis technique(s) to useCan be inductive (main duties of job have not been determined) or deductive (duties have already been determined)Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-5959COHR 303 - M/T and F/E PackageJob Analysis Steps

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4-60K Knowledge, S - Skills, A Abilities, O Other (integrity, values)Typical intelligence, conscientiousness, extraversion, emotional stability60COHR 303 - M/T and F/E PackageTask Statements

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4-61Table 4-661COHR 303 - M/T and F/E PackageJob Requirements MatrixCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Table 4-1162COHR 303 - M/T and F/E PackageTips for Writing Job DescriptionsProvide enough info to pique interestSupplement JDs with regularly negotiated goals + developmental oppsWrite enough flexibility into job descriptionsBe descriptive with titleCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-63Competency ModelingDefinition: a job analysis method that identifies the necessary worker competencies for high performanceCompetencies: rather than focusing on job tasks, they are the broader worker characteristics that underlie successful performance or behavior on the job; multiple types of KSAOsBecause competencies are linked to the organizations business goals, strategy, and values, a person specification resulting from a job description can enhance hiring quality and strategy executionA competency-based job description: Enhances a managers flexibility in assigning workLengthens the life of a job descriptionCan allow firms to group jobs requiring similar competencies under a single job descriptionCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-6464COHR 303 - M/T and F/E PackageWhat is a Competency?DefinitionAn underlying characteristic of an individual contributing toJob or role performance andOrganizational successSimilarities to KSAOsDifferences between competencies and KSAOsMore general or genericMay contribute to success on multiple jobsContribute not only to job performance but also to organizational successExhibit 5.20: Examples of Competencies

Organization UsageOThree strategic HR reasons for doing competency modeling:Create awareness and understanding of need for change in businessEnhance skill levels of workforceImprove teamwork and coordination

Less useful for technical skillsCompetencies Related to Specific Job EnvironmentsCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-68Table 4-12

68COHR 303 - M/T and F/E PackageJob Rewards AnalysisJob rewards analysis: identifies the intrinsic and extrinsic rewards of a jobAnalyzes the intrinsic rewards that are non-monetary and derived from the work itself and the firms cultureIncluding the satisfaction of meeting personal goals, continuous learning, and doing meaningful work.Analyzes the extrinsic rewards that have monetary value of a job. Include base pay, bonuses, and benefits. Can help recruiter learn what motivates job candidates and identify rewards that are appealingCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-6969COHR 303 - M/T and F/E PackageJob Rewards AnalysisEmployee value proposition (EVP): the intrinsic and extrinsic rewards an employee receives by working for a particular employer in return for his or her job performance (if equal or exceeds, less likely to quit)How to do job rewards analysis:First determine exactly what attracts job candidates, and why employees enjoy their work. Then craft a message to clearly state what makes your company the obvious choice over the competition. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-7070COHR 303 - M/T and F/E Package3 Criteria for Employee Value PropositionsMagnitude refers to a reward package that is neither too small nor too large in economic terms. Spending too much on rewards can negatively impact the firms financial stability, and hurt investor relations. Mix refers to the composition of the reward package matching the needs and preferences of applicants or employees. Offering stock options that vest in five years to a young, mobile workforce, or free daycare to an older workforce is not consistent with workers needs and preferences. Distinctiveness refers to the uniqueness of the total reward package. Rewards with no special appeal and that do not set the organization apart as distinctive do not present a compelling value proposition. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-7171COHR 303 - M/T and F/E PackageJob Reward DimensionsAmount refers to how much of it is received. i.e., how much pay, what level of task varietyDifferential is how consistent the reward is across different employees. e.g., all employees receive the same number of vacation days, but merit bonuses range from 2% to 15% of base payStability is how reliable the reward is. Is the reward the same all of the time, or does it change (e.g., does it vary based on organizational performance or business requirements?) Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-7272COHR 303 - M/T and F/E PackageJob Rewards Matrix4-73Table 4-13

73COHR 303 - M/T and F/E PackageStrategic StaffingChapter 5 Forecasting and PlanningJean Phillips & Stanley GullyCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7474COHR 303 - M/T and F/E PackageWorkforce PlanningWorkforce planning: the process of predicting an organizations future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organizations business strategy. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7575COHR 303 - M/T and F/E PackageWorkforce Planning ProcessIdentify the business strategy. Articulate the firms talent philosophy and strategic staffing decisions. Conduct a workforce analysis. - forecast labour demand and supplyDevelop and implement action plans. Develop action plans to address any gaps between labor demand and labor supply forecasts. The action plans should be consistent with the firms talent philosophy, and can include recruiting, retention, compensation, succession planning, and training and development. Action plans can be short-term or long-term, depending on the firms needs and the predictability of the environment. Monitor, evaluate, and revise the forecasts and action plans. As the environment changes, forecasts and action plans may need to change as well. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7676COHR 303 - M/T and F/E PackageForecastingGiven the uncertainty of forecasts, construct estimates as a range, providing low, probable, and high estimates. Recalculate estimates as changes happen in the organizations internal and external environments and as the firms assumptions and expectations change. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7777COHR 303 - M/T and F/E PackageForecasting Business ActivityAn organizations product demand directly affects its need for labor Locate reliable, high-quality information sources within and outside of the organization to forecast business activityTypes of business activity forecasts:SeasonalInterest rate (higher rates discourages capital investment; lower rates = higher demand)Currency exchangeCompetitorsIndustry and economic (GDP, industry forecasts)Others (consumer spending, unemployment rate)Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7878COHR 303 - M/T and F/E PackageForecasting Labor DemandIt is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand.An organizations demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy. Business needs can include things like:Achieving the staffing levels necessary for generating a given amount of revenue within a particular period of time (e.g., salesperson staffing levels necessary to generate $5 million of net/new revenue within 6 months)Increasing staffing levels to execute a growth strategyDecreasing staffing levels during a restructuringObtaining the new talents needed to create new products or provide different services Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-7979COHR 303 - M/T and F/E PackageStaffing RatiosThe estimated level of business activity at a firm can be converted into the number of employees the company will need to attain the desired level of productivity by using staffing ratios. A staffing ratio is a mathematical way of calculating the number of employees a firm needs to produce certain levels of output.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-80Ratio AnalysisAssumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics. Using historical patterns within the firm helps to establish a reasonable range for these ratios. This process can be used for either justifying new positions or demonstrating the need for layoffs. Need consistent historical trends to calculate ratios.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8181COHR 303 - M/T and F/E PackagePossible RatiosProduction to employeesRevenue per employeeManagers to employees Inventory levels to employees Number of customers or customer orders to employeesLabor costs to all production costs The percent utilization of production capacity to employeesCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8282COHR 303 - M/T and F/E PackageScatter PlotsScatter plots show graphically how two different variables --- say revenue and salesperson staffing levels --- are related.They are used to determine what staffing levels should be changed as a factor (variable) changes.

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5-83Trend AnalysisUses past employment patterns to predict future needs. For example, if a company has been growing five percent annually for the last eight years, it might assume that it will experience the same five percent annual growth for the next few years. Any employment trends that are likely to continue can be useful in forecasting labor demand. Because so many factors can also affect staffing needs, including competition, the economic environment, and changes in how the company gets its work done (e.g., automation might improve productivity), trend analysis is rarely used by itself in making labor demand forecasts.

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5-8484COHR 303 - M/T and F/E PackageJudgmental ForecastingRelies on the experience and insights of people in the organization to predict future needs.Top-down: organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be. Top managers estimates then become staffing goals for the lower levels in the organization. In some cases, particularly when companies are facing financial difficulties or restructuring, budgets may determine these headcount numbers.Bottom-up: uses the input of lower-level managers in estimating staffing requirements. Based on supervisors understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy. The estimates are consolidated and modified as they move up the organizations hierarchy until top management formalizes the companys estimate of its future staffing needs into staffing goals. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8585COHR 303 - M/T and F/E PackageReturn on Investment AnalysisEstimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire. First assign dollar values to the benefits you expect from a new hire for the period of time most appropriate for the position and your organization.How much revenue during the period will be directly generated as a result of this position? How much money per period will this position save your organization in terms of increased efficiency, and how much value will it add in greater productivity, quality, or customer service? Then compare this amount with the cost of adding the new hire. Compute the cost of hiring, including advertising the position, interviewing, screening, travel, relocation, and training expenses. Add this to the compensation for the new position during the time period to get your initial investment.Compare this amount with the value your company will gain to determine the return on the investment of adding the new position. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8686COHR 303 - M/T and F/E PackageForecasting Labor SupplyThe external labor market consists of people who do not currently work for a firm. A firms internal labor market consists of the firms current employees. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8787COHR 303 - M/T and F/E PackageForecasting the Internal Labor MarketTo forecast internal talent resources for a position, subtract anticipated losses from the number of employees in the target position at the beginning of the forecasting period. These losses may be due to factors including promotions, demotions, transfers, retirements, and quits. In tighter labor markets when workers are harder to find, more employees than usual may leave the organization to pursue other opportunities than leave during looser labor markets when jobs are less plentiful. Anticipated gains for the position from transfers, promotions, and demotions are then added to the internal labor supply forecast.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8888COHR 303 - M/T and F/E PackageTransition AnalysisA statistical technique used to analyze internal labor markets and forecast internal labor supply. A simple but often effective technique for analyzing an organizations internal labor market, which can be useful in answering recruits questions about promotion paths and the likelihood of promotions as well as in workforce planning. Can also forecast the number of people who currently work for the organization likely to still be employed in various positions at some point in the future.The analysis is best performed for a limited number of jobs at a time to keep it easily interpretable. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-8989COHR 303 - M/T and F/E PackageInternal Labor Market Forecasting MethodsTalent inventories: summarize each employees skills, competencies, and qualifications Replacement charts: visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs Employee satisfaction surveys to identify the potential for increased turnoverCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9090COHR 303 - M/T and F/E PackageForecasting the External Labor MarketOrganizations monitor the external labor market in two ways. The first is through their own observations and experiences. For example, are the quality and quantity of applicants responding to job announcements improving or getting worse? The second way is by monitoring labor market statistics generated by others.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9191COHR 303 - M/T and F/E PackageResolving Labor Supply/Demand GapsAction plans proactively address an anticipated surplus or shortage of employees. Understanding whether a shortage or surplus of applicants is the result of temporary factors or whether it reflects a trend that is likely to continue is important because different staffing strategies are appropriate for each.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9292COHR 303 - M/T and F/E PackageTemporary Talent ShortageBecause higher salaries cost the organization more money throughout the new hires tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified. Neither of these strategies is guaranteed to workMore expensive recruiting methods may quickly drain a recruiting budget without resulting in an acceptable hireLowering hiring standards decreases the quality of the companys workforce, which may not be acceptableOptions include offering hiring incentives such as sign-on bonuses and retention bonuses such as stock options or cash to be paid after the employee has successfully worked with the company for a certain period of time.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9393COHR 303 - M/T and F/E PackagePersistent Talent ShortageIf it is likely that a worker shortage will last a number of years, an organization must:Reduce its demand for the talents that will be in short supply By increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed.Outsourcing

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9494COHR 303 - M/T and F/E PackageTemporary Employee SurplusIf slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the first to be let go when business slows can help to provide a buffer around key permanent workers. Temporary layoffs may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process. Losing the investments the organization has already made in hiring and training the laid off workers can also be costly. Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expanding areas of the business.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9595COHR 303 - M/T and F/E PackagePermanent Employee SurplusEarly retirement incentives, layoffs, and not filling vacated positions can all reduce an employers headcount, but with a cost. Early retirement programs can result in the most skilled and productive employees leaving the organization.Layoffs can damage workforce morale and hurt the firms reputation as an employer. Not filling open positions can leave key positions in the organization vacant or understaffed. Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs. Retraining employees to fill other jobs in the firm can help bring labor supply and demand into balance.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9696COHR 303 - M/T and F/E PackageStaffing PlanningThe three questions that need to be answered are: How many people should we recruit? Staffing yields: the proportion of applicants moving from one stage of the hiring process to the nextHiring yields: the percent of applicants ultimately hired (also called selection ratios) What resources do we need? Workload-driven forecasting use historical data on avrg number of hires per recruiter over given period of timeStaffing efficiency driven forecasting: the total cost associated with the total compensation being hired How much time will it take to hire?Produce a timelineContinuous recruiting can shorten the hiring timeline

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5-9797COHR 303 - M/T and F/E PackageExternal Cost Per HireExternal cost per hire: six basic elements account for 90% of the costs to hire To calculate the cost of external hiring:Advertising expensesAgency and search firm fees Employee referral bonuses Recruiter and applicant travel costs Relocation costs Company recruiter costs (prorated salary and benefits if the recruiter performs duties other than staffing) Saratoga Institute adds an additional 10% to cover miscellaneous expenses including testing, reference checking, hiring manager time, and administrative support.Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5-9898COHR 303 - M/T and F/E PackageInternal Cost Per HireInternal cost per hire includes four elements:Internal advertising costsTravel and interview costsRelocation costsInternal recruiter costs

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5-9999COHR 303 - M/T and F/E PackageStrategic StaffingChapter 6 Sourcing: Identifying RecruitsJean Phillips & Stanley GullyCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-100100COHR 303 - M/T and F/E PackageSourcingDefinition: identifying and locating high potential recruits Done for internal as well as external job candidatesInvolves the analysis of different possible sources of recruits to identify those best able to meet the firms staffing goalsCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-101101COHR 303 - M/T and F/E PackageTypes of Job SeekersActive job seekers: people who need a job and are actively looking for information about job openings Semi-passive job seekers: people who are interested in a new position but only occasionally look actively for one Passive job seekers: currently employed and are not actively seeking another job, but could be tempted by the right opportunity Many high-quality candidates are usually in this group, although it may be difficult to find them and interest them in your job opportunityCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-102102COHR 303 - M/T and F/E PackageRecruiting SourcesInternal recruiting sources: locate people who currently work for the company who would be good recruits for other positionsExternal recruiting sources: target people outside the firm Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-103103COHR 303 - M/T and F/E PackageInternal Recruiting SourcesSuccession management - evaluating, developing, and preparing employees to assume other roles in the futureTalent inventories record of employees past performance, education, experience, etc.Employee development Internal job posting systemsEmployee referralsCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-104104COHR 303 - M/T and F/E PackageSome External Recruiting SourcesEmployee referralsIn-house recruitersNewspapers and other written mediaOnline job boardsSearch firmsProfessional associations ObservationResume DataaseCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-105105COHR 303 - M/T and F/E PackageMore External Recruiting SourcesJob fairsAcquisitions and mergers Raiding competitors Offshore labor NetworkingSchoolsPrevious employeesNon-U.S. citizensWalk-insCreative sourcingCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-106106COHR 303 - M/T and F/E PackageInternet Data MiningBoolean searchesFlipping or flip searchingWeb crawlersNetworking sites

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6-107107COHR 303 - M/T and F/E PackageCreating a Sourcing PlanProfile desirable employees to identify promising sourcesIdentify what desirable talent and successful current employees in targeted jobs like to do and how you might reach them if you were to try to recruit them now Using surveys or focus groups, ask where do they like to go, what media do they use, what organizations do they belong to, and what events do they attend? What web sites and other sources would they use if they were to look for another job? How did they first learn of their first job in your firm? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-108108COHR 303 - M/T and F/E PackageCreating a Sourcing PlanPerform ongoing recruiting source effectiveness analyses by trackingRecruiting Yield Analysis tracks recruiting source that produced each applicant and evaluates each recruiting source on basis of relevant criteriaCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-109109COHR 303 - M/T and F/E PackageCreating a Sourcing PlanPrioritize recruiting sources based on staffing goals and employee profilesPrioritize recruiting sources based on staffing goals and the results of the recruiting source effectiveness analysisReferring to the last slide:If quality is the most important goal, college hiring would be the preferred sourceIf hiring speed is more important than quality, employee referrals would be given priority to source the needed engineers

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6-110110COHR 303 - M/T and F/E PackageSourcing Nontraditional ApplicantsWorkers with disabilitiesOlder workersWelfare-to-workCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-111111COHR 303 - M/T and F/E PackageGlobal SourcingIntegration: the coordination of a single global staffing strategy with the organization retaining adequate controls over local operationsDifferentiation: the need to acknowledge and respect the diversity of local country cultures and expectations and thus giving some latitude to local managers to tailor the strategy to meet the needs of their locationLocal employment agencies can be a useful source of guidance in terms of information on the characteristics of the local labor force Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-112112COHR 303 - M/T and F/E PackageGeographic TargetingDefinition: sourcing recruits based on where they liveCan focus on the local labor marketCan focus on labor markets in locations similar to the organizations location in terms of city size, cost of living, climate, recreational opportunities, etc.Can target individuals likely to find the firms location attractive Lower-level positions in an organization are typically filled from the local labor market, and the geographic boundaries tend to widen as the position moves up the organizations hierarchy Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6-113113COHR 303 - M/T and F/E Package7-114Strategic StaffingChapter 7 RecruitingJean Phillips & Stanley Gully114COHR 303 - M/T and F/E Package7-115RecruitingDefinition: helping an organization employ a talented group of employees who contribute to the organizations business strategyIncludes converting leads into applicantsIncludes generating interest in a company + jobIncludes persuading candidates to accept job offers Can be source of sustainable competitive advantageCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall115COHR 303 - M/T and F/E Package7-116Applicant ReactionsAn important goal of recruitment is to give every applicant a positive feeling about the organization Both parties are pursuing a business relationshipPerspectives of both parties are importantFirms expect applicants to be sincere and honest; applicants expect employers to consider them on their own merits and make a sincere effortCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall116COHR 303 - M/T and F/E Package7-117Perceptions of Fairness Three Types of FairnessDistributive: the perceived fairness of the hiring or promotion outcomeDid you get the job or promotion? Yes = more fairOnly type of fairness that organizations have little control ofProcedural: beliefs that the policies and procedures that resulted in the hiring or promotion decision were fair Respect applicants privacy, avoid delays, use job-related assessments, give fair opportunity to performInteractional: fairness of the interpersonal treatment and amount of information received during the hiring processHonesty, respect, recruiter warmth, and informativenessCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall117COHR 303 - M/T and F/E Package7-118Spillover EffectsDefinition: indirect or unintended consequences of an action If candidates are forced to wait extended periods for pre-scheduled interviews, met unprepared and distracted interviewers, felt that the selection process was unfair, and were not made to feel important or welcome, will they still fly your airline or buy your products? Apply for another job with you in the future? Tell their friends and family how impressed they were with your firm and influence them to become customers or job applicants? Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall118COHR 303 - M/T and F/E Package7-119Recruitment ContinuesRecruiting does not end until person is removed from consideration or is hired and reports for work. Recruiting must keep employee interestedCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall119COHR 303 - M/T and F/E Package7-120The RecruiterGraduates choose or dont choose companies b/c of recruiter. Unemployed ppl may persist a negative encounter with a recruiter but passive job seekers will be less likely to do so.Recruiters competence and recruiting delays send signals to applicants.

Needs to have:Familiarity with the job and organization Trustworthiness and credibilityReflect what it is like to work for the companyGood listening and communication skillsGood social skillsIntelligenceExtroversion, enthusiasm, self-confidence120COHR 303 - M/T and F/E Package7-121SignalingRecruiters traits and behaviors may act as signals of the company and job. A CEO involved in recruiting may signal a jobs importance A demographic minority recruiter may signal the firms demographic diversity

Similarity to recruiter does not necessarily lead to more favorable applicant attitudes but it does have impact on how attractive a job is.

The key is the recruiters ability to relate to a recruits value system and motivation.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall121COHR 303 - M/T and F/E Package7-122Reviewer ProfileProfile of individual recruiters who have been the most effective in the past.Includes skills, characteristics, backgroundsHelps firms figure out who should do the recruiting and what the job specifications should be for different recruiters.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall122COHR 303 - M/T and F/E PackageTypes of RecruitersInternal staff/managers (can be impractical to take out of current job but know jargon)Internal recruiters (can answer broad questions but may not know jargon)External recruiters (expensive, lack depth of knowledge, have extensive network)1-123Factors Influencing Recruiter EffectivenessLabour market surplus vs. shortageSize and visibility of organizationJob characteristicsHiring managers are they on board?Coworkers1-124Recruiter TrainingDifferent recruiters must look for same competencies, values, and experience or qualified applicants will be overlookedRecruiting knowledge tailoring pitches to specific groupsInterpersonal skills reflect values of company, project warmth and empathy, listening and communication skillsPresentation skillsCultural skillsOrganizational goals and recruiting objectivesLegal issuesMultiple assessments assess candidates for other rolesCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall7-125125COHR 303 - M/T and F/E PackageRecruiter Goals & FeedbackStrategic metrics:New hire job performance / failure rate; turnover of new hires; manager / new hire satisfaction; training successAn organization usually has specific goals for recruiters that are consistent with firms objectives and staffing strategies:Employer brandingCandidate screeningGenerating candidates interest For a recruiter to pursue the organizations goals:The organizations goals must be known by the recruiter and be consistent with the recruiters personal goalsThe recruiter must receive feedback in relation to these goals

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall7-126126COHR 303 - M/T and F/E Package7-127Recruiter IncentivesThe behaviors and outcomes that are rewarded are the ones most likely to be pursued by recruiters

Align rewards with staffing goalsCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall127COHR 303 - M/T and F/E Package7-128Organizational ImageDefinition: a general impression based on both feelings and facts.

The more favorable a companys image, the more people are likely to consider the organization attractive as an employer and state a willingness to respond to its recruitment advertisements.

Organizational images differ across subgroups of individuals. College undergraduates have malleable images of orgs.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall128COHR 303 - M/T and F/E Package7-129Employer BrandDefinition: attitudes toward and perceptions of the organization as an employer

How an organization is reputed to treat applicants and employees is likely to have a particularly strong effect on applicant attraction.

Newer or lesser-known organizations with weak or nonexistent images among job seekers may have greater difficulty attracting recruits using passive recruitment sources such as newspaper advertisements than organizations that are more widely known and favorably thought of.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall129COHR 303 - M/T and F/E Package7-130Nature of the Recruiting MessageDifferent types of recruiting materials are used to attract the attention of potential applicants and induce them to apply Message content should appeal to the goals and values of the targeted recruits Ex. Brochures that highlight diversity may attract minoritiesShould be informative, address a range of job or organizational characteristics, and provide specific information about those characteristics.General ads appeal to wide variety of applicants and increase number of unqualified candidatesUnusual or extreme info tends to receive greater attentionEmployment opps that do not meet minimum Non-compensatory screening factors are rejected by job seekersThe jobs location, the type of job, pay, etc.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall130COHR 303 - M/T and F/E Package7-131Realistic Job PreviewsDefinition: provide both positive and potentially negative information to job candidates. Rather than trying to sell the job and company by presenting the job opportunity in the most positive light, realistic job previews strive to present an honest and accurate picture. Three functions of realistic job previews:Self-selection (can determine if they are good fit)Vaccination (allows them to develop coping mechanisms to deal with unpleasant parts of the job)Commitment to the choice (they cannot claim they didnt know)Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall131COHR 303 - M/T and F/E Package7-132Realistic Job PreviewsUseful for reducing turnover when employees claim the job wasnt what they expected

Can be used to counter inaccurate employer images (ex. McJob)

Focus on non-visible aspects (fast pace, performance expectations, benefits)Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall132COHR 303 - M/T and F/E Package7-133Self-Assessment ToolsDetermine if a candidate is a good fit.

If bad fit, applicant will self-select out

Self-assessments should be anonymous and not used for selectionCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall133COHR 303 - M/T and F/E Package7-134Timing of Information

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall134COHR 303 - M/T and F/E Package7-135Achieving Recruitment ConsistencyDevelop a Recruiting guideFormal document that details the process to be followed in recruiting for an open position. Clarifies company policies and procedures relating to appropriate budgets, activities, timelines, responsible staff, legal issues, and the specific steps to be taken in recruiting for the position. Clarifies roles of employees in recruitment process and ensures that all relevant policies and procedures are followedCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall135COHR 303 - M/T and F/E Package7-136EEOC Best Practices in RecruitingEstablish a policy for recruiting and hiringEngage in short-term and long-term strategic planning.Identify barriers to equal employment opportunity.Specify the firms recruiting goals.Make a road map for implementing the plan. Evaluate the firms managers on the progress they make toward the companys equal employment opportunity goalsCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall136COHR 303 - M/T and F/E Package7-137EEOC Best Practices in RecruitingEnsure that there is a communication network notifying interested persons of opportunities,Communicate the competencies, skills & abilities required for available positions.Communicate about family-friendly and work-friendly programs. Participate in career and job fairs and open houses. Work with professional associations, civic associations, and educational institutions to attract people with protected characteristics. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall137COHR 303 - M/T and F/E Package7-138EEOC Best Practices in RecruitingProvide recruiters, employees, and search firms with instructions to recruit diverse candidate pools and expand the companys search networks. Partner with organizations dedicated to serving diverse groups. Use internships, work-study, co-op, and scholarship programs to attract Develop and support educational programsBecome more involved in the communityCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall138COHR 303 - M/T and F/E Package9-139Strategic StaffingChapter 9 Assessing External CandidatesJean Phillips & Stanley Gully

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall139COHR 303 - M/T and F/E Package9-140External Assessment GoalsIdentify job candidates who would make good hires and screen out those who would make poor hiresMaximize fit with organization culture, staffing goals, and business strategyPerson-job fit: persons ability fits with demands of the job; persons desires and motivations fit with attributes and rewards (primary focus of most staffing)Person-group fit: match btwn individual and his or her work group, incl the superPerson-organization fit: fit between individuals values, beliefs, personality and the values, norms, culture of the organization has impact on attitudes and citizenship behaviours (behaviours ppl engage in that go beyond their job requirements)Person-vocation fit: fit between persons interests, abilities, values and personality and his or her chosen occupation, regardless of the employer140COHR 303 - M/T and F/E Package9-141External Assessment GoalsMaximize return on investmentSupport talent philosophy and HR strategyInvestors: more interviews and careers section on websiteAssets: efficient candidate assessment and minimize meetingsEstablish and reinforce employer imageEnsure legal compliance141COHR 303 - M/T and F/E Package9-142Complementary and Supplementary FitComplementary fit: when a person adds something that is missing in the organization or work group by being different from the others Supplementary fit: when a person has characteristics that are similar to those that already exist in the organization Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall142COHR 303 - M/T and F/E Package9-143Possible Assessment Outcomes

Copyright 2012 Pearson Education, Inc. publishing as Prentice HallFalse positives expensive for high-risk jobs. False negatives expensive for highly competitive jobs.143COHR 303 - M/T and F/E Package9-144Dollar Return on Investment

Copyright 2012 Pearson Education, Inc. publishing as Prentice HallBad hires can actually cost the organization money. The longer the good performers stay; greater ROI144COHR 303 - M/T and F/E Package9-145Identify Development NeedsAssessment tests can also identify new hires developmental needs. If a top candidates assessment scores show that his or her organization and time management skills are good but their customer service skills need further development, post-hire training can improve these skills. Some assessment methods even identify applicants preferred learning styles, which can decrease training time, improve training effectiveness, and increase retention. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall145COHR 303 - M/T and F/E Package9-146Hiring StagesWhen people first apply for a job, they are considered job applicants and are evaluated against the minimum acceptable criteria for the job, such as relevant education and skills (screening assessment methods). Those applicants passing the initial screen are considered job candidates and are assessed in more depth using evaluative assessment methodsA series of evaluative assessments are often performed, with the lowest performing candidates being screened out after each phase. Job offer made from group of finalists after passing contingent assessment methods (background check, drug screen, etc.)

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall146COHR 303 - M/T and F/E Package9-147Some ExternalAssessment MethodsScreening MethodsResumes and cover letters (ppl may lie)Job applications and weighted application blanksBiographical informationTelephone screensEvaluative MethodsCognitive and noncognitive (psychomotor, sensory, physical) ability tests Values assessmentsPersonality assessmentsIntegrity tests written tests of honesty, trustworthiness, reliability, characterPolygraph testsJob knowledge testsInterviews (structured and unstructured)Situational judgment tests measure noncognitive skillsGraphology determine personality from writingJob simulations can be verbal or motor, may differ in fidelity (how realistic)Work samplesReference checks asking scenarios are betterContingent MethodsMedical and drug tests, and background checks (must be relevant to job)147COHR 303 - M/T and F/E Package9-148Comparison of CommonlyUsed Assessment Methods

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall148COHR 303 - M/T and F/E PackageBiodata9-149

when job app items are used to predict job success Interests, work experiences, training, and education Assesses achievement orientation and preferences for group vs. individual work Allows people to describe more personal aspects and their experiences and successes in social, educational, occupational pursuits149COHR 303 - M/T and F/E PackageCognitive Ability Tests9-150

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Computerized, paper and pencil test that assesses mental ability High level of mental ability = acquire and use new info effectively Cognitive ability important in complex jobs, when individuals are new to a job, and when there are changes in the workplace that require new ways of doing things Cultural differences tend to exist and applicants may see as not relevant150COHR 303 - M/T and F/E PackagePersonality AssessmentsCopyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

1-151 focus on big 5: extraversion, conscientiousness, emotional stability, agreeableness, openness to experience

Conscientiousness (most consistent) and emotional stability predict performance for most jobs

Extraversion jobs where interacting and influencing others is important (Ex. Managerial)

Agreeableness interpersonal interactions (helping, nurturing, cooperating)

Openness creativity and ability to adapt to chg.9-152Steps in Crafting a Structured Interview

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall152COHR 303 - M/T and F/E PackageSTAR TechniqueA technique for answering behavioral interview questions:Situation or Task: describe in enough detail for the interviewer to understand the situation and what you needed to accomplishAction that you tookResults that you achieved9-153Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall153COHR 303 - M/T and F/E Package9-154Evaluating an Assessment Methods EffectivenessValiditywhether the assessment method predicts relevant components of job performanceReturn on investmentwhether the assessment method generates a financial return that exceeds the cost associated with using itApplicant reactionsincluding the perceived job relatedness and fairness of the assessment method; perceiving sufficient opportunity to perform, or believing that one had an adequate opportunity to demonstrate ones ability to do the job, influences perceptions of the fairness of the selection process, particularly if the person is rejected for the job Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall154COHR 303 - M/T and F/E Package9-155Evaluating an Assessment Methods EffectivenessSelection ratiohaving a low selection ratio means hiring only a few applicants, which allows an assessment method to have maximum impact in improving the performance of the people hiredUsabilitypeople in the organization must be willing and able to use the method consistently and correctlyAdverse impactan assessment method is more effective if it predicts job performance and other important hiring outcomes without discriminating against members of a protected class Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall155COHR 303 - M/T and F/E Package9-156Reducing Adverse ImpactUse targeted recruitment to increase the numbers of qualified minority applicantsExpand the definition of job performance to include areas of such as commitment and reliabilityCombine predictors test that discriminates against men + test that discriminates against womenUsing well-developed simulations rather than cognitive ability testsIf selection ratio low, use low adverse impact processes firstUse banding bucket the candidates into categories (Decreases validity)Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall156COHR 303 - M/T and F/E Package9-157Assessment PlanThe assessment plan describes:Which assessment method(s) will be usedIn what sequenceWhat weight each assessment will receiveCharacteristics that will be trained after hire are not assigned to any assessment method, but any existing qualifications required to qualify for the training program should be listed. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

157COHR 303 - M/T and F/E Package9-158Choosing Assessment MethodsWhich methods best assesses applicant characteristics or competencies identified as important during the job analysisOften necessary to use more than one assessment method. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall158COHR 303 - M/T and F/E Package10-159Strategic StaffingChapter 10 Assessing Internal Candidates Jean Phillips & Stanley Gully

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall159COHR 303 - M/T and F/E Package10-160Internal AssessmentThe evaluation of a firms current employees for training, reassignment, promotion, or dismissal purposesCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall160COHR 303 - M/T and F/E Package10-161Internal Assessment GoalsAccurate assessmentMaximize return on investmentPositive stakeholder reactions fairness, ease of use, speedSupport talent philosophy and HR strategyInvestors: More feedback into assessment process to improve promotabilityAssets: Less likely to do thisEstablish and reinforce HR strategy and employer image

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall161COHR 303 - M/T and F/E Package10-162Internal Assessment GoalsIdentify employees development needsAssessing ethicallyLegal complianceEvaluating fit with firms other jobsAssessing employees to enhance firms strategic capabilitiesGathering info to make downsizing decisions

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall162COHR 303 - M/T and F/E Package10-163Internal Assessment MethodsSkills inventoriesList that outlines which employees have certain skills, competencies, and job characteristicsMentoring programsPerformance reviews of task and interpersonal behaviorsTask acquaintance: amt and type of work contact evaluator has with person being assessedCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall163COHR 303 - M/T and F/E Package10-164Internal Assessment MethodsMulti-source (360-degree) assessmentsJob knowledge testsAssessment center methodsClinical assessments (expensive)Trained psychologists subjectively analyze candidates attributes, values, and styles in context of a job (thru personality tests, direct observation, interviews)Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall164COHR 303 - M/T and F/E Package10-165Nine Box MatrixNine box matrix: a combined assessment of an employees performance and potential. Is a method for displaying judgments made about employees, not for making those judgments.It can help companies understand the overall strength of their workforce, but only if the employees were accurately evaluated in the first place.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall165COHR 303 - M/T and F/E Package10-166Nine Box Matrix

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall166COHR 303 - M/T and F/E Package10-167Career Crossroads ModelFocuses on managerial and leadership positions rather than technical or professional work. Each level of leadership requires different sets of competencies and values. Leaders values and priorities must change.Starting Point: Managing yourselfPassage 1: Managing othersPassage 2: Managing managersPassage 3: Managing a function Passage 4: Managing a businessPassage 5: Managing multiple businessesPassage 6: Managing the enterpriseCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall167COHR 303 - M/T and F/E Package10-168Succession ManagementSuccession management: an ongoing process of systematically identifying, assessing, and developing an organizations leadership capabilities to enhance its performance Succession management plans: written policies that guide the succession management process Replacement planning: the process of creating back-up candidates for specific senior management positions Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall168COHR 303 - M/T and F/E Package10-169Steps in Developing aSuccession Management System

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall169COHR 303 - M/T and F/E Package10-170What Makes Succession Management Effective?Understanding the nature of talent gaps with enough time before the talent is neededStandardized process and is usable by different business units. Align with other human resource processes including recruitment, selection, rewards, training, and performance management.Continually evaluate and improve the system.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall170COHR 303 - M/T and F/E Package10-171Succession Management Tips

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall171COHR 303 - M/T and F/E Package10-172Career PlanningCareer planning: a continuous process of self-assessment and goal setting.Goals, preferences, capabilities of employees are assessed and compared with HR strategy and succession planMatches or mismatches discussed with employee as well as career development opportunitiesCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall172COHR 303 - M/T and F/E Package10-173Career Development ToolsAssessment centers simulate the position an employee is interested in pursuing and whether or not they are a good fit for the job.Career counseling and career development workshops help individuals understand the jobs that best match their motivations and talents, and help them develop the skills they need to successfully compete for these opportunities. Training and continuing education skills in training in a more formalized educational setting.Job rotation, challenging assignments and mentoringSabbaticals used to reenergize employeesChallenging and developmental job assignments can enhance key competencies and build experience in important job tasks before the individual assumes the position.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall173COHR 303 - M/T and F/E Package10-174Making a Career Development PlanAssess yourself

Set goals

Develop an action planCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall174COHR 303 - M/T and F/E PackageEvaluating Internal AssessmentValiditywhether the assessment method predicts relevant components of job performance

Return on investmentwhether the assessment method generates a financial return that exceeds the cost associated with using it

Applicant reactionsincluding the perceived job relatedness and fairness of the assessment method

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall10-175175COHR 303 - M/T and F/E Package10-176Evaluating Internal AssessmentSelection ratiohaving a low selection ratio means hiring only a few applicants, which allows an assessment method to have maximal impact in improving the performance of the people hired

Usabilitypeople in the organization must be willing and able to use the method consistently and correctly

Adverse impactan assessment method is more effective if it predicts job performance and other important hiring outcomes without discriminating against members of a protected class.Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall176COHR 303 - M/T and F/E Package11-177Strategic StaffingChapter 11 Choosing and Hiring CandidatesJean Phillips & Stanley GullyCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall177COHR 303 - M/T and F/E Package11-178Combining Assessment ScoresWhen using more than one assessment method , a candidates scores must be meaningfully combinedTwo ways of combining:Multiple hurdlesCompensatory approachCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall178COHR 303 - M/T and F/E Package11-179Multiple HurdlesMultiple hurdles: candidates must receive a passing score on an assessment before being allowed to continueCostly and takes more timeUsed when cost of poor performance is highFor example, when safety is at risk

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall179COHR 303 - M/T and F/E Package11-180Compensatory ApproachesCompensatory approach: high scores on some assessments can compensate for low scores on other assessments.

This approach is less useful for jobs in which specific talents must exist at a minimum level.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall180COHR 303 - M/T and F/E Package11-181Executing theCompensatory ApproachUnit weighting: equally weighting all assessmentsRational weighting: experts assign a different subjective weight to each assessment score (experts must agree on weight)Statistical weighting: using a statistical technique, such as multiple regression, to assign a different weight to each assessment score (must have large sample size and small # of assessments to work)Multiple regression: the most scientific approach to determining how to weight each assessment in computing a candidates overall scoreCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall181COHR 303 - M/T and F/E Package11-182Combining Multiple Hurdles and Compensatory ApproachesOften, some job requirements are essential to job performance but others can compensate for each other.

Final ChoiceCut score: a minimum assessment score that must be met or exceeded to advance (may increase false negatives)Rank ordering: ranking candidates from highest to lowest scoring. Banding: Clumping ppl in categories and assigning scores

Hiring manager or team should make final decision

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall182COHR 303 - M/T and F/E Package11-183Job Offer StrategiesParticularly for firms with a talent philosophy of viewing employees as investors rather than assets, the job offer should maximize the employee value proposition offered to the finalist (balance btwn intrinsic/extrinsic rewards)Before extending a job offer, verify the truthfulness of any statements made by the applicant that were relied onGrade point average, prior work experience, prior salary, etc. Identify a backup hire in case your first choice does not take the job. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall183COHR 303 - M/T and F/E Package11-184

184COHR 303 - M/T and F/E Package11-185Compensation DecisionsLow job offer: below-market rewards package (inappropriate for key positions)Competitive job offer: total rewards package is competitive with the marketHigh job offer: total rewards package is above the marketMaximum job offer: the companys best and final offerCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall185COHR 303 - M/T and F/E Package11-186Employment ContractImplicit employment contract: an understanding that is not part of a written or verbal contract.Because binding contracts for employment or for future compensation can be created verbally, great care should be taken during discussions with prospective new hires. To be legally binding and enforceable, any contract must consist of an offer that is accepted on the terms offered. Something of value (consideration), usually promises of pay in exchange for promises for labor, must also be exchanged. Offer letter: written letter describing in clear and precise terms exactly what the compensation structure and terms of employment will be. 186COHR 303 - M/T and F/E Package11-187Employment ContractsStatements on a job application blank (e.g., a statement that providing false information is grounds for termination), statements in employee handbooks, and statements in other documents may become interpreted as enforceable contracts. Often focus more on termination issues than on employment. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall187COHR 303 - M/T and F/E Package11-188Additional AgreementsFirst rights to their inventions and patents Nondisclosure agreements Noncompete clauses / restrictive covenantsNonsolicitation agreementsIt is a good idea to consult legal counsel before preparing any contract forms or statements on application forms

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall188COHR 303 - M/T and F/E Package11-189Presenting a Job OfferShould reinforce the company image and the positive impression formed by the candidate during the hiring processWhile the candidate is considering the offer, it is a good idea to stay in contact with him or her to reinforce your enthusiasmCopyright 2012 Pearson Education, Inc. publishing as Prentice Hall189COHR 303 - M/T and F/E Package11-190Negotiable Job Offer Elements

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall190COHR 303 - M/T and F/E Package11-191Job Offer Negotiation TipsDo not look at a negotiation as an either/or propositionIdentify what you can and cannot part with Try to identify and use sources of leverageSuppress your emotionsKnow your BATNA Take time to evaluate the offerBe realisticPractice your negotiation skillsDocument and be prepared to discuss your skills and accomplishments Be appreciative and respectfulRemember that employment is an ongoing relationship

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall191COHR 303 - M/T and F/E Package11-192Closing the DealFor job offer acceptances:Ensure that the finalist followed the proper procedures, accepted the job offer as written, and responded before the deadline.Congratulate the new hire and express your enthusiasm about having him or her onboard.It can also be helpful to ask what persuaded the person to say yesStay in contact with the new hire and encourage his or her supervisor and coworkers to do the same. Once a job offer has been accepted, the recruiters role is to begin building the new hires commitment to the company and enhancing his or her ability to succeed on the job. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall192COHR 303 - M/T and F/E Package11-193Closing the DealWhen the company rejects a candidate:Do so respectfully. Distributive fairness will be perceived as low, and to reduce negative spillover effects, efforts should be made to enhance the procedural and interactional fairness perceptions of rejected applicants. Negative reactions of rejected internal candidates may be reduced by explaining why they were not chosen, and what they can do to be more competitive for the position in the future. Development plans can be created to help the rejected employees enhance their experience and qualifications. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall193COHR 303 - M/T and F/E Package11-194Closing the DealWhen a finalist rejects a job offer:Try to find out why and whether an enhanced offer might be acceptable. Promptly and respectfully acknowledge the job offer rejection.If a rejected applicant is qualified for a different position or if they might be hirable in the future for the job to which he or she applied, requesting permission to retain the applicants information for a period of time can help to