7 - Personnel Planning and Recruitment

Personnel Planning

The critical process of ensuring an organization has the right people in the right place at the right time to meet its strategic goals. It involves assessing the current workforce, forecasting future needs, and developing plans to meet those needs.

Recruiting

• The process of attracting, screening, and selecting qualified candidates for open positions within an organization.

• It is a key component of personnel planning and aims to find suitable candidates who align with the company's goals.

Workforce Planning

A strategic process that helps organizations align their human resources with their business objectives.

• The process involves analyzing current workforce data, forecasting future needs, and creating strategies to bridge any gaps between the two.

Forecasting Personnel Needs

The process of estimating how many people, and with what skills, an organization will need to achieve its goals. Key steps include:

• Analyzing market trends to predict future sales

• Forecasting revenue based on projected sales 

• Estimating the required staff size by analyzing workload and efficiency

Potential Labor Pool

Individuals who might be suitable for a position but do not yet meet the required qualifications. They have the potential to develop the necessary skills for the future 

Available Labor Pool

Individuals who currently possess the necessary qualifications, certifications, and experience for a position and are actively seeking employment.

Screening

The initial review of applications to identify candidates who meet the basic qualifications, helping to narrow the applicant pool

Selection

The process of choosing the most qualified candidate from the screened applicants often through interviews, assessments, and reference checks 

Tight Labor Market

A market with a shortage of available workers relative to open jobs, which increases competition among employers for talent and drives up wages. 

Loose Labor Market

A market with a surplus of job seekers compared to available jobs, which increases competition among candidates and puts downward pressure on wages. 

Internal Recruiting

The practice of seeking qualified candidates for open positions from within the organization. Its benefits include lower turnover, reduced costs, and improved employee morale.

However, it carries risks like "talent hoarding," where managers refuse to share their best employees.

Succession Planning

The process of identifying and developing internal employees for key leadership positions to ensure continuity 

Three main steps of Succession Planning

1. Identify key position needs critical to the company’s success

2. Develop inside candidates by creating development plans

3. Assess and select the right fit based on performance, skills, and cultural fit

External Recruiting Methods

Strategies used to attract candidates from outside the organization. Common methods include:

• Internet Sites: Online job boards like Indeed or LinkedIn.

• Social Media: Using platforms like Facebook or Twitter to engage with candidates.

• Advertising: Traditional print and online job advertisements.

• Employment Agencies: Firms that specialize in screening and connecting candidates with employers.

Signaling Theory (in Recruiting)

A theory suggesting that job candidates form perceptions about an employer based on the incomplete information they encounter during their job search, such as the content of recruitment ads and the behavior of recruiters.

Diversity-Oriented Recruiting

A conscious effort by organizations to increase workforce diversity by employing people from underrepresented groups.

This involves using diverse interviewers, ensuring advertisements reflect diversity, and building an inclusive culture through relationship recruiting—establishing long-term connections with potential candidates.

What are the legal Issues in Recruiting?

Recruiting practices must be fair to avoid discrimination. Employers cannot restrict protected groups and must be careful with:

• Job Advertisements: Wording like "recent graduate" can unintentionally exclude older, experienced candidates.

• Supervisory Recommendations: Relying solely on these may limit the diversity of the applicant pool.

• Social Media: Reviewing profiles can lead to preferential treatment based on protected characteristics like religion or political beliefs.