Chapter 6 Recruiting and labor markets

Chapter 6
Recruiting and labor markets
Recruiting is the process of generating a pool of qualified applicants for
organizational jobs
 Cost of unfilled jobs
 Quality of workforce may cost more
 Be strategic when recruiting: know the industry, know your
 Train your recruiters and managers: don’t violate EEO rules
Labor market: external pool from which
employers attract employees
 Labor market components:
 Labor force population: all individuals who are available for
selection if all possible recruitment strategies are used
 Applicant population: a subset of the labor force population that
is available for selection using a particular recruiting approach
 Applicant pool: all persons who are actually evaluated for
selection. Use an Applicant tracking system
 Individuals selected
 Note: unemployment rates and applicant population
Considerations for determining
applicant populations
 # and type of recruits needed
 Timing of recruiting to ensure timely placement
 External and internal messages on job details
 Qualifications of competent applicants to be considered
 Sources for obtaining qualified applicants
 Outside and inside recruiting means to be used
 Administrative recruiting and application review activities
Different labor markets and recruiting
 Industry and occupational labor markets: careers: nurses,
home health care, post secondary teachers, truckers and
 Educational and technical labor markets: military, medical,
informational technology (IT)
 Geographic labor markets: local, area or regional, national,
or international
 Global labor markets: overseas jobs and laws
Strategic recruiting decisions
 Recruiting presence and image: continuous efforts to
recruit, keeps employer in labor market and intensive
recruiting when needed (Midland)
 Employment branding and image: the view held by both
employees and outsiders
Organization based versus outsourced
 Recruitment process outsourcing (RPO): add to number of
candidates and reduce recruiting costs
 Professional employer organizations (PEO) and employee
leasing: employees are hired and leased to a company
 Regular versus flexible staffing: temporaries, independent
contractors, reducing cost of insurance, vacation, and
benefits pay
Recruiting and EEO: diversity
 EEO and recruiting efforts: non biased and work to hire
underrepresented protected class members
 Recruiting diversity: race, ethnicity, older, single parents,
disabilities, welfare to work, homeless
 Job previews: advantages, demands, expectations, and
challenges of job
 Recruiting source choices: internal vs. external
Internet recruiting
 E recruiting: internet job boards, professional/career websites,
employer websites
Social networking sites
E video
Legal concerns: demographics of applicants, confidentiality,
Advantages: saves time and money
Disadvantages: more resumes, less access by lower socioeconomic
Legal issues in Internet recruiting
 Are rejections really based on the qualifications needed for the job?
 How can data about an individual’s protected characteristics be collected
and analyzed for reports?
Are too many people being excluded on the basis of unlawful
Do they really want the job, just because they accessed a job board?
How does Internet recruiting relate to confidentiality and privacy
Advantages: may save money, add to the pool, save time
Disadvantages: more work because more applicants, more emails to deal
Companies getting away from job boards and here goes: LinkedIn and
Employment agencies
 Headhunters: employment agencies that focus their efforts
on executive, managerial and professional positions
 (1) contingency firms charge a fee to employer after person
is hired
 (2) retainer firms charge a client a set fee whether or not the
contracted search is successful.
External recruiting sources
 Media: newspapers, magazines, TV, radio, billboards
 Job fairs and creative recruiting: SHRM chapter, virtual job
fairs, drive through job fairs
 Educational institutions and recruiting
 Desirable capabilities of college recruits: GPA, leadership
potential, communication skills, professional motivation
 Recruiting for high school and technical schools
Internal recruiting methods
 Internal recruiting databases and internet related sources
 Internal candidates: you know more about them, no real
recruiting costs…
 Job posting system in which the employer provides notices of
job opening and employees respond by applying for specific
openings: how long should an employee stay in a job before
applying for another one, should they tell their current boss,
what if no one applies that qualifies?
Employee focused recruiting
 Current employee referrals
 Rerecruiting of former employees and applicants: former
Recruiting evaluation and metrics
 Quantity and quality
 Time to fill openings
 Costs per recruiting method
 Recruitment satisfaction analyses
 Process metrics yield ratios selection rates: comparison of the
number of applicants at one stage of the recruiting process with
the number at the next stage AND acceptance rate: percent of
applicants hired divided by total number of applicants offered jobs
 Success base rates: compare the number of past applicants who
have become successful employees against the number of
applicants they competed against for their jobs.
Increasing recruiting effectiveness
 Resume mining: software approach
 Applicant tracking: from job listing to performance appraisal
Employer career website:
Internal mobility: tracks internal candidates
Realistic job previews: preview of employer and jobs
Responsive recruitment: applicants get timely responses

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