HR Planning and

Recruitment
 Lets have a look

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 Workforce Planning
Workforce (or employment or personnel) planning is the process of deciding
what positions the firm will have to fill, and how to fill them. Its aim is to
identify and address the gaps between the employer’s workforce today, and
its projected workforce needs.

Objectives (Towers Watson):

First, it reviews the client’s business plan (sales growth) and workforce data;
Second, it identifies what positions the firm will have to fill (internally) and potential
workforce gaps (demand and supply projection);
Third, they develop a workforce strategic plan; here they prioritize key workforce
gaps and identify specific (training and other) plans for filling any gaps.
Finally, they implement the changes and use various metrics to monitor the process.
FIGURE 5–1 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the
job.
The Recruitment and Selection Process
1. Decide what positions to fill through personnel planning and
forecasting.
2. Build a candidate pool by recruiting internal or external
candidates.
3. Have candidates complete application forms and undergo
initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor and
others interview the candidates.
Dhaka Bank Limited
CITI NA
Prime Bank Limited
Linking Employer’s Strategy to Plans
 Planning and Forecasting (Labor Demand)
How many people with what skills will we need? Managers consider several
factors (projected retirements, growth plans, and turnover history in short-term
and long term).
•Employment or Personnel Planning
 The process of deciding what positions the firm will have to fill, and how to fill them.

•Succession Planning
 The process of deciding how to fill the company’s most important executive jobs.

•What to Forecast?
 Overall personnel needs
 The supply of inside candidates
 The supply of outside candidates
 Succession Planning
Succession planning involves developing workforce plans for the company’s
top positions. Succession planning is the ongoing process of systematically
identifying, assessing, and developing organizational leadership to enhance
performance.

Steps in a succession planning:

 Forecasting Personnel Needs
Forecasting Tools

Trend analysis Ratio analysis Scatter plotting

Trend analysis can provide an Ratio analysis provides A scatter plot shows graphically
initial estimate of future staffing forecasts based on the how two variables—such as sales
needs, but employment levels historical ratio between (1) and your firm’s staffing levels—
rarely depend just on the are related. If they are, and then if
some causal factor (like sales you can forecast the business
passage of time. Other factors
(like changes in sales volume
volume) and (2) the number activity (like sales), you should
and productivity) also affect of employees required (such also be able to estimate your
staffing needs. as number of salespeople). personnel needs.
 Forecasting Personnel Needs
Management judgement
Few historical trends, ratios, or relationships will continue unchanged into the future.
Judgment is thus needed to adjust the forecast.

Factors preventing traditional forecast of personnel requirements:

Decisions to upgrade quality or enter into new markets

Technological changes
Administrative changes resulting in increased productivity
Financial resources available, for instance, a projected budget crunch.
Forecasting the Supply of Inside
Candidates
Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents
 MARKOV ANALYSIS

Employers also use a mathematical process known as Markov (named after

Russian mathematician Andrei Andreyevich Markov) analysis (or
“transition analysis”) to forecast availability of internal job candidates.

Markov analysis involves creating a matrix that shows the probabilities

that employees in the chain of feeder positions for a key job (such as
from junior engineer, to engineer, to senior engineer, to engineering
supervisor, and to director of engineering) will move from position to
position and therefore be available to fill the key position.
 Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate

• Sources of Information
 Periodic forecasts in business publications
 Online economic projections
 Bureau of Labor Statistics (BLS)
 Other agencies and private sources
 Predictive Workforce Monitoring
 Effective Recruiting
• Employee recruiting means finding and/or attracting applicants for the
employer’s open positions.

Factors affecting effective recruitment:

 Supply of workers
 Outsourcing of specialized group
 Fewer “qualified” candidates
 Non-recruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm
 Employment laws
Internal Sources of Candidates
Advantages Disadvantages

• For knowledge of candidates’ • Failed applicants become

strengths and weaknesses discontented
• More accurate view of candidate’s • Time wasted interviewing inside
skills candidates who will not be
• Candidates have a stronger considered
commitment to the company • Inbreeding strengthens tendency to
• Increases employee morale maintain the status quo
• Less training and orientation required
 Finding Internal Candidates

Hiring-from-Within Tasks

Posting open Succession

Rehiring former employees
job positions planning (HRIS)

Job positing publicizing the The process of deciding

open job to employees how to fill the company’s
(usually by literally posting most important executive
it on company intranets or
jobs.
bulletin boards).
Outside Sources of Candidates

Locating Outside Candidates

1 Recruiting via the Internet 6 Executive Recruiters/ Head hunter

2 Advertising 7 On Demand Recruiting Services (ODRS)

3 Employment Agencies 8 College Recruiting

4 Temp Agencies and Alternative Staffing 9 Referrals and Walk-ins

5 Offshoring/Outsourcing
Recruiting via the Internet
• Advantages
 Cost-effective way to publicize job openings
 More applicants attracted over a longer period
 Immediate applicant responses
 Online prescreening of applicants
 Automation of applicant tracking and evaluation

• Disadvantages
 Exclusion of older and minority workers
 Unqualified applicants overload the system
 Personal information privacy concerns of applicants
Advertising for Outside Candidates

• The Media Choice

 Selection of the best medium depends on the positions for which the firm is recruiting.
 Newspapers: local and specific labor markets
 Trade and professional journals: specialized employees (Sales Management)
 Internet job sites: global labor markets
• Constructing (Writing) Effective Ads
 Create attention, interest, desire, and action (AIDA) .
 Create a positive impression (image) of the firm.
Why Use a Private Employment Agency?

• No HR department: firm lacks recruiting and screening capabilities to

attract a pool of qualified applicants.
• To fill a particular opening quickly.
• To attract more minority or female applicants.
• To reach currently employed individuals who are more comfortable dealing
with agencies than competing companies.
• To reduce internal time devoted to recruiting.
Avoiding Problems with
Employment Agencies

• Give agency an accurate and complete job description.

• Make sure tests, application blanks, and interviews are part of the agency’s
selection process.
• Review candidates accepted or rejected by your firm or the agency for
effectiveness and fairness of agency’s screening process.
• Supplement the agency’s reference checking by checking the final
candidate’s references yourself.
Specialized Staffing and Recruiting
• Alternative Staffing
 In-house contingent (casual, seasonal, or temporary) workers employed by the
company, but on an explicit short-term basis.
 Contract technical employees supplied for long-term projects under contract from
outside technical services firms.

• On-Demand Recruiting Services (ODRS)

 Provide short-term specialized recruiting to support specific projects without the
expense of retaining traditional search firms.
Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows “trial run” for prospective employees
 No recruitment, screening, and payroll administration costs

• Costs of Temps
 Increased labor costs due to fees paid to temp agencies
 Temp employees’ lack of commitment to the firm
 Offshoring and Outsourcing Jobs
Political and military
instability

Resentment and anxiety Cultural

of employees/unions misunderstandings

Outsourcing/
Offshoring Issues Customers’ securing and
Costs of foreign workers
privacy concerns

Special training of foreign Foreign contracts, liability,

employees and legal concerns

Outsourcing means having outside vendors supply services (such as benefits management, market research, or manufacturing) that the firm’s own employees previously did in-house.
Offshoring is a narrower term. It means having outside vendors abroad supply services that the firm’s own employees previously did in-house.
College Recruiting
• On-campus recruiting goals • On-site visits (inviting good candidates
to the office or plant)
 To determine if the candidate is worthy of
further consideration  Invitation letters

 To attract good candidates  Information packages

 Planned interviews
 Timely employment offer
 Follow-up

• Internships
 Sources of Outside Applicants

Other Sources of Outside Applicants

Employee referrals Walk-ins

Recruiting a diverse team?
 Developing and Using Application Forms

Uses of Application Form Information

Applicant’s
Applicant’s education Applicant’s Applicant’s likelihood
prior progress and
and experience employment stability of success
growth