Internal vs. External Recruitment

1. HRM 313. Ch 6B - Recruitment Methods 1 Internal vs. External Recruitment

2. HRM 313. Ch 6B - Recruitment Methods 2 Internal Recruitment I Advantages Rewards good work of current employees Is cost effective Improves morale Can assess known past performance Can result in succession of promotions Disadvantages Can produce organizational inbreeding Places heavy burden on training and development May cause political infighting for promotions

3. HRM 313. Ch 6B - Recruitment Methods 3 Internal Recruitment II Job posting Giving current employees the chance to respond to announcements (bulletin board, newsletters, memos, electronic bulletins, tape audio systems) Allows all qualified employees to compete for positions Helps manage individual career development Helps discover talent within the organization Is a communication device Can accommodate seniority Job bidding Allowing employees to indicate an interest in a position that they feel qualified for before one becomes available Encourages employees to be proactive in improving their KSAs Talent inventories (Skill tracking systems) Computerized talent or skill inventories with a list of people who have the needed KSAs Can be time-consuming and costly to maintain

4. HRM 313. Ch 6B - Recruitment Methods 4 External Recruitment I Advantages Brings new ideas into the organization Helps organization get needed competencies Provides cross-industry insights May reduce training costs Helps organization meet EEO goals Disadvantages May result in misplacements Increases recruitment costs May cause morale problems for internal candidates Requires longer orientation or adjustment time

5. HRM 313. Ch 6B - Recruitment Methods 5 External Recruitment II Former employees Their job performance is known Could cause morale problem among remaining employees Previous applicants Is award of their qualifications Is easier and more efficient Employee referrals Can help identify people who fit well into the organization Is cost-effective Generally results in the highest one-year survival rates (realistic job preview) Can perpetuate existing patterns of discrimination Labor unions Particularly in construction industries

6. HRM 313. Ch 6B - Recruitment Methods 6 External Recruitment III Trade and professional associations Specially for skilled or professional jobs Can talk to potential applicants at meetings Walk-ins Open house Is informal and relatively inexpensive Internet Offers several avenues for recruiting across occupations Saves costs and time Reaching an appropriately broad cross section of applicants? Has potential for violating antidiscrimination laws Issues Attracting job applicants � Capitalize on the organization�s reputation or product image. Sorting applicants � Screen out unqualified applicants. Making quick contact Establishing personal contact

7. HRM 313. Ch 6B - Recruitment Methods 7 External Recruitment IV Media advertising Reaches a large audience of applicants Employment agencies Public / private employment agencies, and executive search firms Provides pre-screening services Can be expensive Educational recruiting Career or college fairs, school-to-work programs Reaches broader potential candidates Can establish long-term relationships Mergers and acquisitions Needs to integrate a large number of workers quickly Other companies� M&A can provide an opportunity for recruitment.

8. HRM 313. Ch 6B - Recruitment Methods 8 Glass Ceiling Reviews Bad practices Word of mouth Employee referrals Executive search firms unaware of EEO objectives Job postings that rely on informal networks Recruiting venues that create discomfort (e.g., hotel rooms) Areas for reviews How management positions are filled Succession planning for internal candidates Promotion and transfer processes at senior levels Executive performance appraisals Training offered to executive candidates Mentoring and networking programs Termination policies and procedures for executives

9. HRM 313. Ch 6B - Recruitment Methods 9 Recruitment Effectiveness I Short-term considerations Average time required to recruit applicants Selection and acceptance rates of applicants Cost per applicant hired Quantity of applicants Quality of applicants EEO implications Long-term considerations Performance of hires Tenure/turnover of hires Absenteeism per hire Training costs

10. HRM 313. Ch 6B - Recruitment Methods 10 Recruitment Effectiveness II Evaluating recruiters Number of applications processed Hires produced Applicant reactions Eventual success on the job by those recommended for hire by a recruiter Evaluating recruitment sources Total cost Cost per hire Number of applicants generated Yield ratios Eventual job tenure Performance of hire on the job Time-lapse data

11. HRM 313. Ch 6B - Recruitment Methods 11 Relations with other HR Practices Pay Reservation wage The minimum pay to make an offer acceptable, frequently based on Benefits and work arrangements Most employers take the compensatory approach Most applicants prefer Flexibility in benefits Opportunities to learn