CHAPTER 6

Recruiting and Labor Markets

SECTION 2 Jobs and Labor

©
© 2011
2011 Cengage
Cengage Learning.
Learning. All
All rights
rights reserved.
reserved. May
May not
not be
be
scanned,
scanned, copied
copied or
or duplicated,
duplicated, or or posted
posted to
to aa publicly
publicly PowerPoint
PowerPoint Presentation
Presentation by
by Charlie
Charlie Cook
Cook
accessible
accessible Web
Web site,
site, in
in whole
whole or
or in
in part.
part. The
The University
University of
of West
West Alabama
Alabama
 Chapter Objectives

After you have read this chapter, you should be able to:
• List different ways that labor markets can be identified and
approached.
• Discuss strategic recruiting decisions on recruiting images,
outsourcing, and other related areas.
• Explain why Internet recruiting has grown and how it affects
recruiting efforts done by employers.
• List and briefly discuss five external recruiting sources.
• Identify three internal sources for recruiting and issues associated
with their use.
• Describe three factors to consider when doing recruiting
measurement and metrics.

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–2
 The Importance of Recruiting
• Recruiting
 Is the process of generating a pool of qualified
applicants for organizational jobs
 Seeks to improve workforce quality for competitive
advantage:

Quality of
Cost of Cost of
recruited
recruiting candidates unfilled jobs

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–3
 FIGURE 6–1 Integrating Recruiting Components

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–4
 Strategic Recruiting and HR Planning
• Effective Recruiting Requires:
 Knowing the business and industry
 Identifying keys to success in the labor market
 Cultivating networks and relationships
 Promoting the “company brand”
 Using metrics to measure recruiting effectiveness
 Identifying talent before it is needed
• Training Recruiters and Managers
 Recruiting-related job skills
 Diversity and sensitivity skills
 Ethical recruiting behaviors
© 2011 Cengage Learning. All rights reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–5
 Labor Markets
• Labor Markets
 The external supply pool from which organizations
attract their employees
• Unemployment Rates and Applicant Population
 Low unemployment creates competition for
employees, raising labor costs.
 High unemployment results the availability of more
applicants and more qualified applicants.

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–6
 FIGURE 6–2 Labor Market Components

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–7
 FIGURE 6–3 Considerations for Determining Applicant Populations

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–8
 Reaching the Applicant Population

Recruiting
Decisions

Recruiting Recruiting Applicant Administrative

Method Message Qualifications Procedures

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–9
 Different Labor Markets and Recruiting

Geographic Labor Global Labor

Markets Markets

Labor
Markets

Industry and Educational and

Occupational Labor Technical Labor
Markets Markets

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–10
 Strategic Recruiting Decisions

Organization-Based
Sample
vs.
Outsourced Recruiting
Recruiting Source
Recruiting Presence
Choices: Sample
and Image
Internal vs. External

Strategic
Recruiting Sample
Recruiting Training of
Sample
Nontraditional
Decisions Sample
Recruiters
Workers

Recruiting and EEO:

Regular vs.
Sample
Diversity Sample
Flexible Staffing
Considerations

Realistic Job
Sample
Previews

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–11
 FIGURE 6–4 Recruiting and Diversity Considerations

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–12
 Internet Recruiting

Effects of Internet Recruiting

Adjusting to Identifying new Training for

new recruiting types of recruiting managers and
approaches for specific jobs HR recruiters

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–13
 Internet Recruiting (cont’d)

E-Recruiting Places

Internet Job Professional/ Employer

Boards Career Websites Websites

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–14
 Recruiting and Internet Social Networking

Social Networking Recruiting Advantages:

• Allows job seekers to connect with employees of potential
employers
• Allows employers to engage in social collaboration by joining
and accessing social technology networks to help applicants
post resumes and complete applications online

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–15
 Recruiting Using Special Technology Means

Internet Recruiting Tools

Blogs E-Video Twitter

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–16
 Legal Issues in Internet Recruiting

The use (or misuse) of

screening software

Collection of federally required

applicant information

Legal Issues in
Exclusion of protected classes
Internet
from the process
Recruiting

Proper identification of
“real” applicants

Maintaining confidentiality
and privacy

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–17
 Internet Recruiting

Advantages Disadvantages

• Recruiting cost savings • More unqualified applicants

• Recruiting time savings • Additional work for HR staff
• Expanded (global) pool of • Many applicants are not
applicants seriously seeking employment
• Better targeting of specific • Access limited or unavailable to
audiences some applicants
• Privacy of information and
discrimination issues

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–18
 External Recruiting

Media Sources

Competitive Employment
Recruiting Sources Agencies
External
Recruiting
Sources
Labor Unions Job Fairs

Educational
Institutions

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–19
 FIGURE 6–5 Advantages and Disadvantages of External Recruiting

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–20
 FIGURE 6–6 What to Include in an Effective Recruiting Ad

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–21
 FIGURE 6–7 College Recruiting: Considerations for Employers

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–22
 Internal Recruiting

Employee Job
Databases Postings

Internal
Recruiting
Sources
Former
Promotions
Employees
and Transfers
and Applicants

Current-
Employee
Referrals

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–23
 FIGURE 6–8
Advantages and
Disadvantages of
Internal Recruiting

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–24
 Recruiting Evaluation and Metrics

Evaluating Recruiting Evaluating Recruiting

Quality and Quantity Satisfaction

Evaluating
Recruiting
Efforts

Evaluating the Time

Evaluating the Cost
Required to Fill
of Recruiting
Openings

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–25
 FIGURE 6–9 Recruiting Measurement Areas

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–26
 Recruiting Metrics

General
Recruiting
Process Metrics

Yield Selection Acceptance Success Base

Ratios Rate Rate Rate

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–27
 FIGURE 6–10
Sample Recruiting
Evaluation Pyramid

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–28
 Increasing Recruiting Effectiveness

Technical Approaches Non-Technical Approaches

• Resume mining software • Personable recruiters

• Applicant tracking • Emphasizing positives about the
• Employer career websites job and employer within a
realistic job preview
• Internal mobility tracking
system • Fair and considerate treatment
in the recruiting process
• Enhancing applicants’ perceived
fit with the organization

© 2011 Cengage Learning. All rights reserved. May not be scanned,

copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 6–29