HRM L5: Expanding the talent pool (Staffing / Talent Acquisition)

HR life cycle

talent acquisition process

1. HR planning: job design & HR decisions

1. sourcing: passive, active, direct

2. recruitment: internal & external

3. selection: preliminary screening & assessments

4. hiring: contracts & requirements

5. on-boarding: onboarding, week 1, first 30-90 days

strategic aspects of recruiting

1. decisions about talent

2. broad factors that affect a firms recruiting strategy

decisions about talent

• how recruitment is planned carefully to support the organization’s long-term goals, not just to fill job vacancies quickly

• all decisions about the talent need to be considered within the context of a business strategy & priorities

• example: if company plans to expand customer service / dining experience, HR are to recruit: skilled chefs & experienced waitstaff

broad factors that affect a firms recruiting strategy

• recruiting abilities: company’s ability to attract hires

• recruit externally VS internally: hire inside / outside of company

• labor market for types of positions it is recruiting: availability of skilled workers

• strengths of a firms employment brand: company reputation as a workplace

list of positions / people who recruits

• large firms: HR recruiters / generalist

• smaller firms: managers / supervisors

• work teams

• recruiting process outsourcing (RPO): practice of outsourcing an organization’s recruiting function to anoutside firm

  • example: agency

should a firm recruit internally or externally?

• most managers follow a policy of filing job vacancies above entry level through promotions and transfers

• in this way, organizations can capitalize on the investments it already made in employees since current employees already know the company / how it works

• may also look for jobs elsewhere if they have no promotion opportunities

• these are advantages and disadvantages for both

inbreeding

• behavior when managers and business owners tend to form their project / business teams to be “monolith” (group that is very uniform / all the same)

• team is consisted of employees with whom they have a lot in common

• managers adjust their selection policy to support this aim

• effects: no more newness / new set of skills

labor markets

• area from which applicants are to be recruited

• shows whether companies can easily find employees or not

2 types of labor market

1. tight market

2. loose market

tight market

• high employment, few available workers

• company must compete to attract employees

• ex: many companies are opening new restaurants in a city, but most chefs and waiters already have jobs. hence, restaurants may:

  • offer higher salaries / benefits

loose labor market

• low employment, many available workers

• employers can easily find workers

• ex: during economic recession, many business close & people lose their jobs. due to this:

  • companies receive applications, employers may offer lower salaries

factors determining relevant labor market

1. skills and knowledge required for a job: competitive advantage: specialize on certain areas

2. level of compensation offered for a job: the higher the pay = more stressful / demanding

3. reluctance of job seekers to relocate: do not want / hesitant to move to another place for a job

4. ease of commuting to workplace: easy / convenience of employees to travel to work

5. location of job: geographic location of the workplace. is it urban or non urban?

sourcing

identifying where / who to recruit

4 kinds of sourcing

• passive sourcing

• active sourcing

• direct sourcing

• indirect sourcing

passive sourcing

• target: candidates who are not actively looking

• when you need a lot of people in one position

• can be employed but not looking for a job

• example:

  • a recruiter finds a professional on LinkedIn to invite to join in the company

active sourcing

• target: when candidates actively search

• can be employed or unemployed individuals

• example:

  • people applying through job boards, company websites, or career fairs

direct sourcing

• target: specific candidate for a job position usually for a higher level such as an executive company directly searchers for / contacts candidates instead of relying on agencies / third parties.

• example:

  • HR directly messages potential applicants

indirect sourcing

relying on agencies / third parties to source applicants for you

2 types of recruitment

1. internal recruitment

2. external recruitment

internal recruitment

• the process of filling job vacancies with current employees

• reduces hiring costs, accelerates onboarding, and boosts morale

• identifying talent through performance appraisals

• skill inventories and replacement charts

• example: promotions, transfers, or internal job postings.

external recruitment

• the process of hiring candidates from outside an organization to fill vacancies access to a wider, more diverse talent pool and fresh industry perspectives

• usually through advertisements, walk ins / unsolicited applications, internet, social networking, mobile recruiting, job fairs

• can also be done through employee referrals, re-recruiting, executing search firms, professional associations, labor unions, agencies, employee listings and educational institutions

• example: company joins a job fair at a university to hire fresh graduates

warning signs of a weak talent “bench”

• takes a long time to fill key positions

• key positions can be filled only by hiring from the outside

• vacancies in key positions cannot be filled with confidence in the abilities of those chosen for them

• replacements for positions are often unsuccessful in performing duties

• promotions are made on the basis of whim, favoritism, nepotism

3 ways to improve effectiveness of recruiting

1. using realistic job previews

2. surveys

3. recruiting metrics

using realistic job previews

• giving applicants honest / complete description of the job both good and difficult parts

• no sugar coating to understand what the job really is

surveys

• HR uses this to gather feedback about the recruitment process

• to find out what works well and what needs improvement

recruiting metrics

• data / measurements used to evaluate how effective the recruitment process is

• to see whether the strategies implemented are working

recruiting metrics example

time to fill

number of days from when a job opening is approved to the date the person ultimately chosen for the job is selected

yield ratios

percentage of applicants from a recruitment source that make it to the next stage selection process

cost of recruitment