HRM 465 Staffing and Development

Workforce Planning

The process of predicting an organization’s future employment needs and the availability

of current employees and external hires to meet those employment needs and execute the organization’s business strategy. Workforce planning is the foundation of strategic staffing

because it identifies and addresses future challenges to a firm’s ability to get the right talent in place at the right time to execute its business strategy.

Forecasting Labor Demand

It is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand.

Replacement Charts

Visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs.

Develop Implementation Plan

Develop action plans to address any gaps between labor demand and labor supply forecasts.

• The action plans should be consistent with the firm’s talent

philosophy, and can include recruiting, retention, compensation,

succession management, and training and development.

• Action plans can be short-term or long-term, depending on the

firm’s needs and the predictability of the environment.

ROI on labor investment

Sum of all gains/sum of all expenses x 100%

Example: sales 10,000, training 1,000, labor 4,000

10,000/5,000×100% = 200%

Resolving gaps between the firms labor supply: Action Plans

The action plans should be consistent with the firm’s talent

philosophy, and can include recruiting, retention, compensation,

succession management, and training and development.

Action plans can be short-term or long-term, depending on the

firm’s needs and the predictability of the environment.

Redesigning jobs

Temporary Employee Surplus

If 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.

Alternatives to layoffs include across-the-board salary cuts

or a reduction in work hours, or reallocating workers to

expanding areas of the business.

Passive job seekers

Currently employed and are not actively seeking another job, but could be

tempted by the right opportunity.

Active job seeker

People who need a job and are actively looking for information about job openings.

Passive job seeker

Currently employed and are not actively seeking another job, but could be tempted by the right opportunity

Active job seeker

People who need a job and are actively looking for information about job openings

Internal Recruiting

Locates current employees who would be good fits with another position

External Recruiting

Targets people outside the organization

Underutilized labor source

Workers with disabilities

• Neurodiversity

Veterans

Older workers

Welfare recipients

Differentiation

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 location

Geographic Targeting

sourcing recruits based on where they live

• Can focus on the local labor market

• Can focus on labor markets in locations similar to the

organization’s location in terms of city size, cost of living,

climate, recreational opportunities, etc.

• Can target individuals likely to find the firm’s location attractive

Perpetuate Unconscious Bias

Means to unintentionally continue or reinforce hidden prejudices or stereotypes in decisions, behaviors, or systems—often without being aware of it

Applicant Reactions

An important goal of recruitment is to give every applicant a positive feeling

about the organization

Organizational and individual perspectives are both relevant

• Effective recruitment requires considering the

applicant’s perspective and needs

• Both parties are pursuing a business relationship

Interactional

Fairness of the interpersonal treatment and amount of information received during the hiring process

• Honesty, respect, recruiter warmth, and informativeness

Procedural

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 perform

Realistic Job Previews

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.

The goal is not to deter candidates by focusing on factors that might be perceived negatively, but to provide objective information that job candidates can use to self-assess their fit with the job and organization.

Economic Performance Indicators

TBD

What makes a recruiter effective: Disadvantage of getting line managers to recruit

TBD

What makes a recruiter effective: What a shortage of talent makes it hard for recruiter, the labor market influenced recruiter’s effectiveness

TBD

Recruiting metrics: turnover

TBD

Global recruiting: European Privacy Act

Global recruiting: Employers often lack the same brand recognition in different countries

Practical difference exist in staffing laws and norms

European Privacy Act: The European Union’s General Data Protection Regulation gives EU residents greater control over their personal data

• Job seekers must actively opt-in to give direct consent for data to be collected and be able to withdraw their consent

• OR the employer must have a “legitimate interest” such as proactively sourcing on LinkedIn for a specific role

• AND the data must be collected for a specific and limited purpose (not for general talent pipelining)

• Violations can result in fines of up to 4% of annual revenue

Ethics, Ethical recruiter behavior begins with…

Because no regulating agency oversees recruiting practices, ethical recruiter

behavior starts with the employer clearly defining expected recruiter behaviors.

Measurement

Measurement is the process of assigning numbers according to some rule or convention to aspects of people, jobs, job success, or aspects of the staffing system.

Predictive data

Is information about measures used to make projections about outcomes.

Criterion data

Is information about important outcomes of the staffing process.

Ratio

distance between scores has meaning and there is a true zero point (e.g., salary, typing speed, year of experience, salary in dollars, and weight

Median

The middle score, or the point below which 50 percent of the scores fall

Deficiency Error

Error that occurs when you fail to measure important aspects of the attribute you would like to measure.

Standardization

The consistent administration and use of a measure.

Selection Ratio

Is the proportion of applicants who are hired during a selection process.

Moral Courage

The desire and strength to act in accordance with ethical principles,

especially when there is a risk of suffering adverse personal consequences and the

disapproval of coworkers.

• Acting with integrity and being honest

• Being objective and avoiding bias, conflicts of interest,

or undue influence to interfere

• Maintaining professional competence

• Respecting confidentiality and data privacy

• Behaving professionally

Cost per hire

The total cost of bringing a new employee to the

company, including the cost of recruitment, equipment, travel,

administrative costs, and benefits

Time-to-hire

The number of days from when a vacancy opens to

when a new hire signs their contract

Time-to-fill

the day when the req approval through the offer is accepted

Source effectiveness

Identify source of hire is the most or least effective based on a given metric

▪ Example: LinkedIn generated 50% of hires, Indeed generated 20% of

hires, which source is the most effective.

Understand application completion rate:

How many applicants actually completed the entire application process.

▪ Example: 50 applicants completed the application among 100% who

started the application process. The rate is 50%.