Archive for year: 2023

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C H a P T E R

After studying this chapter, you should be able to:

LO1 Explain the strategic importance of the recruitment function.

LO2 Discuss the constraints facing a typical recruiter.

LO3 Identify the appropriate recruiting methods for different types of jobs.

LO4 Explain how to generate effective recruitment advertisements.

LO5 List key measures for evaluating the effectiveness of the recruitment function.

Recruitment

LEaRNING ObjECTIvEs

In this ever-changing, global, technologically demanding business environment, sourcing and retaining talent becomes the competitive battleground. Just as sports teams recruit aggressively for best athletes, business organizations in the future will compete aggressively for the best talent … Successful firms will be those most adept at attracting, developing and retaining individuals with the skills, perspective and experience sufficient to drive a global business.

D av e U l r i c h 1

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172 PART 3  Attracting Human Resources

F inding new employees for the organization is a continuing challenge for most human resource departments. Sometimes the need for new workers is known well in advance because of detailed human resource plans. At other times, the human resource department is faced

with urgent requests for replacements that must be filled as quickly as possible. In either case, finding qualified applicants is a key activity, as seen in the following example:

Consulting giant Accenture Inc. <http://www.accenture.com> is a leading employer in Canada with about 4,500 employees. Globally, Accenture hired approximately 70,000 employees in 2011 including about 1,000 new workers hired in Canada. Their projections were for a similar-sized hiring spree in 2012. With this fast-paced growth, Accenture faces one of the biggest human resource challenges: “attracting and retaining the best and brightest.”2

Recruitment is the process of finding and attracting capable individuals to apply for employment and to accept a job offer if/when one is made to them. Selection involves the identification of candi- dates from this pool of applicants who best meet job requirements using tools such as application blanks, tests, and interviews. The recruitment process begins with generating a pool of applicants, continues during selection while decisions are made among applicants to choose the best one, and then extends after selection decisions have been made to convince candidates who have been made an offer, to accept the job.3

Recruitment includes all activities by an organization that affect an applicant’s decision to apply for and to accept a position. These can be activities that the organization purposefully engages in to persuade applicants to want to work for them (such as recruitment websites), or unintentional things (like the length of time between when an applicant applies for the job and when they hear about an interview, or public relations fiascos such as the British Petroleum oil spill in the Gulf Coast in 2010 4) that may affect applicant attraction to the organization.5 Recruiting is a two-way street: It is a matching process between firms with jobs and individuals seeking jobs. The organization is trying to entice highly qualified people to consider working for their organization. Meanwhile, applicants are trying to learn about what it would be like to work for the organization. Work is a large part of most people’s days, and can have a substantial impact on their well-being. How the organization treats them from the moment they first learn about the organization right through to a job offer being extended to them, can impact whether or not they will choose to work for the organization. Moreover, the process of recruiting doesn’t end once a job has been accepted or started; it continues with newcomer socialization.

Responsibility for recruitment usually belongs to the human resource department. This responsibility is important because the quality of an organization’s human resources depends on the quality of its recruits. Since large organizations recruit almost continuously, their human resource departments use specialists for the activity. These specialists are called recruiters.

As Figure 5-1 illustrates, recruitment can be done only after the identification of job openings through human resource planning or requests by managers. As mentioned in Chapter 3, advance knowledge of job openings allows the recruiter to be proactive.

After identifying openings, the recruiter learns what each job requires by reviewing job analysis information, particularly the job descriptions and specifications. This information tells the recruiter the characteristics of both the jobs and the future job incumbents. When the job analysis information appears outdated or superficial, recruiters can learn more about a job’s requirements from the requesting manager. Knowing the job’s requirements helps recruiters to choose methods of finding the right number and type of applicants.

Typically, most recruiters use more than one recruitment method to find suitable candidates for vacant job positions. Common recruitment methods include recruitment advertisements and postings on websites and job boards; school, college, and university campus visits; contacts with professional and labour associations; and use of government agencies such as Human Resources and Skills Development Canada (HRSDC). Sometimes, to attract high-quality applicants, a recruiter may have to use unconventional procedures, as the following example shows:

Inspector Kevin McQuiggin from the Vancouver Police Department <http://vancouver.ca/police/> recognized that it was getting harder and harder to recruit IT talent to the force. In the past, the VPD averaged about a thousand applications a year from traditional recruitment sources like job fairs, putting ads in the newspaper, and word of mouth. In this new era, attracting tech-savvy applicants who will need to complete the 2–3 years of training to get up to speed, and then stick around for the

recruitment The process of finding   and attracting capable  applicants to apply for  employment and   accept job offers that   are extended to them.

selection The identification of  candidates from a pool of  recruits who best meet job  requirements, using tools  such as application blanks,  tests, and interviews.

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CHAPTER 5  Recruitment  173

long haul, is a rising challenge for police forces around the world. To alleviate the hiring crunch and attract a technologically adept crowd, McQuiggin held a recruiting seminar in Second Life <http:// www.youtube.com/watch?v=HkJChEdCFDk>, a three-dimensional virtual world with millions of people around the globe participating through their avatars. The first VPD recruitment session was hosted by VPD avatars made in the images of the VPD real-life recruiters. It was attended by 30 avatars producing four applications.6

Recruitment involves far more than just getting people to apply for jobs, and success in recruit- ment is not simply measured by the number of applications received. The right type of applicants is far more important than the number of applicants. Many successful organizations have recog- nized the strategic importance of recruitment and made it an integral part of their overall human resource management strategy. The following section discusses the strategic importance of the recruitment function.

Strategic Importance of the Recruitment Function

In the recent past, recruitment has gained considerable attention among practitioners as well as in the media. A variety of factors, including an aging population, which results in a large number of retirements, stiff competition for talent, growth in the Canadian economy, and rising compensation and aspiration levels of new entrants, has been found to make the task of recruiting very challenging. Over the 2006–15 period, growth in Canada’s economy is anticipated to create about 1.7 million new non-student jobs, and a further 3.8 million positions will need to be filled due to retirements. Over the longer term, positions freed due to retirement will generate an even higher share of total job openings.7 Front-line positions are the easiest to fill, while executives, skilled trades, and high- tech jobs are the toughest to recruit for. Even in the recent recessionary settings, some jobs such as physicians, nurses, and radiologists continued to be hard to fill in several parts of Canada.

Today, recruitment of human resources has a significant impact on the organization and its strategic success. The more important HR and organizational activities affected by recruitment are examined below.

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LO1

Figure 5-1 An Overview of the Recruitment Process

The Selection Process

Job Analysis Results

Number of Job Vacancies

Review Job Specifications

Characteristics of Recruits

Comments from Job Incumbents

Comments from Managers

Constraints on Recruiter

Recruitment Methods

Employer Services • Advertising • Walk-ins • Referrals • Applicant tracking system Other Organizations: • Educational institutions • Professional associations • Labour organizations • HRSDC • Professional search firms • Temporary-help agencies

Maintaining Applicants

in the Applicant

Pool

Pool of Recruits

Influencing Job

Choices

Human Resource

Plans

Requests from

Managers

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174 PART 3  Attracting Human Resources

Gaining Competitive Advantage from Human Capital Successful firms recognize that today, more than ever before, human capital spells the difference between success and failure. Despite the existence of state-of-the-art human resource systems and procedures, poorly qualified and motivated recruits often prove extremely costly to firms. In con- trast, in today’s global knowledge economy, the presence of highly skilled and motivated workers can be a real competitive advantage.

Experience working in a foreign country is considered a major asset by many employers. As one executive recruiter noted, “an international assignment on your CV gives you an edge over competitors because it shows breadth of experience and adaptability.”8 In one survey of 6,000 employees, 75 per- cent of the respondents considered foreign work credentials “essential” or “extremely useful.”9 How- ever, managers with foreign country experience are also hard to come by. Only about 37 percent of 2,700 executives surveyed stated that they would consider taking an overseas assignment. This makes people with foreign work experience extremely valuable, which in turn makes recruiting them difficult.

Further, if applicants lack the necessary skills and/or aptitudes, considerable additional resources may have to be invested into selection, training and development, employee communication systems, and employee relations practices. A small pool of recruits also poses a major challenge to the selection procedure (which will be discussed in the next chapter).

Reaping the Benefits of Diversity Management Today, many Canadian firms recognize the vitality and competitive advantage that often accompanies a diverse workforce. Further, as discussed in Chapter 4, if the firm’s workforce does not reflect the larger labour market composition, the firm may be asked to pursue an employment equity program to correct imbalances. Progressive employers monitor their environments continuously and adjust their recruitment strategies to deal with the emerging trends in a proactive manner:

Maple Leaf Electronics, a software manufacturer, has 50 computer programmers on its payroll, of which 45 are men. Recently, the Statistics Canada figures on the local labour market indicated that, in the larger labour market, about 35 percent of the programmers were women. The company’s human resource manager realized that the current 10 percent utilization rate of women was far below the societal figure and decided to actively seek out women when recruiting.

Hiring from a larger, diverse pool of candidates offers a greater choice of job applicants to the firm. A diverse workforce also offers greater flexibility and additional capabilities in some instances. It reflects an organization’s commitment to broader social goals and projects a better image of the firm to clients and other constituents.

Focusing on Employee Development When recruiting (especially for middle- and upper-level jobs), a firm has a choice: it can either develop and promote internal candidates or hire from outside. The strategic choice of internal versus external recruitment has profound implications for an organization.

The advantage of hiring skilled employees from outside is that they already possess the neces- sary skills to begin work immediately and little training may be needed. However, this must be weighed against the fact that current employees, especially in smaller organizations, know a lot more about the organization, its strategy, and its culture. A conscious effort to train and develop employees to assume higher job positions in the future also acts as a strong motivator for many employees.10

Figure 5-2 lists some of the advantages and weaknesses of each strategy. Needless to say, the specific strategy chosen by the firm has major implications for recruitment and salary costs, employee morale, and organizational innovation and change. One additional consideration is that, typically, promoting an employee will generate a job opening somewhere else in the organization.

The internal promotion of a supervisor to a manager position results in a supervisor opening, which may in turn be filled by the internal promotion of a front-line worker. The front-line worker position may need to be filled by recruiting externally.

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competitive advantage A competitive advantage  exists when the firm is able  to deliver the same value  and benefits as competitors  but at a lower cost (cost  advantage), or deliver   more benefits or unique  value that exceed those   of competing products  (differentiation advantage).

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CHAPTER 5  Recruitment  175

Investing Resources into Recruitment The decision about the total recruitment budget affects the quality of recruits and the overall effectiveness of recruitment activity. It is important to note that the costs of recruitment are not simply the hiring costs (such as the costs of advertisement, recruiter’s travel, and so on). Often the costs of a bad hire may not be translatable into monetary terms as there is no accurate way of measuring the number of lost customers or resources due to delays and inefficient handling of a situation.11 Further, inappropriate recruits often leave the organization, causing significant addi- tional costs to hire and train replacements. Often such costs are not apparent. However, some organizations, such as NCR Corporation, have recognized the importance of the recruitment func- tion and have found innovative ways to recruit qualified persons and reduce recruitment costs:

NCR Corporation <www.ncr.com> produces point-of-sale terminals, automated teller machines, cheque- processing systems, and barcode scanners, and is one of the largest providers of IT maintenance support services. It maintains its competitive edge by hiring employees at the entry level, retaining them, and promoting from within. In the past, its recruitment program, “Project 6K,” used standard- ized procedures to recruit the best university students for entry-level positions. Universities and colleges are rated on a four-point scale (“1” being the best). In the number 1 category, students with a GPA of 3.2 or higher will be contacted; at a school rated in the number 4 category, only students with a GPA of 3.4 or better would be considered by the recruiter. The company believes that such a focused recruitment effort helps it to secure high-quality recruits while minimizing the recruitment costs. The company actively seeks a competitive advantage through its employees by hiring top people and creating a work climate where they are highly productive.

Figure 5-2 Internal versus External Recruiting

Internal Recruiting

Advantages •  Employee is familiar with the organization and its culture.

•  Employee is “known” to the firm; the fit of this individual to the organization will be known as well.

•  Improves workforce morale and motivation.

•  Information about employee performance is known in addition to scores on selection tests;  this improves the organization’s ability to predict the person’s success in the new job.

Weaknesses •  Internal rivalry and competition for higher positions; can reduce interpersonal and

interdepartmental cooperation.

•  No “new blood” is brought into the system, which can prevent creative solutions from emerging.

•  Poor morale (leading to possible turnover) of employees who were not promoted.

•  May be expensive to offer counselling, training, and development to employees who vied for,  but did not get, the promotion.

•  Performance evaluation records are only relevant to the extent that the promotion job is  similar to the employee’s current job.

External Recruiting

Advantages •  Organization is able to acquire skills or knowledge that may not be currently available within.

•  Newer ideas and novel ways of solving problems may emerge.

Weaknesses •  Newcomers may not fit in with the organization and into its present culture.

•  Newcomers take a longer time to learn about the organization’s culture, policies, and practices.

•  Usually, hiring from the outside is more expensive.

•  Lowered morale and motivation levels of current employees who don’t see any career growth  possibilities within the firm.

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176 PART 3  Attracting Human Resources

Other investments into the recruiting process include selecting and training recruiters. When selecting recruiters, friendliness or personableness, knowledge of the job, organization, and career- related issues, and enthusiasm are important characteristics.12 Choices must also be made about whether recruiters should be HR professionals, line managers, or coworkers. HR professionals may be knowledgeable about career paths and the organization, but lack understanding of specific job details. Line managers, on the other hand, may know details of the job and company, but not necessarily career development opportunities. And coworkers may understand the job very well, but not necessarily the organization or career paths to the same extent as HR professionals. Depending on the areas of expertise of the recruiters, training may be needed in other areas.13

Additional training is also recommended for interviewing skills, job analysis, interpersonal aspects of recruiting, laws and regulations, and recruitment targets. Marketing and sales training may also be advantageous for creating advertisements and being persuasive to candidates.14

Key issues in the context of evaluating the effectiveness of the recruitment function and its contribution to organizational success will be discussed in a later section in this chapter. But first, it is important to recognize the several constraints a recruiter faces.

A successful recruiter must be sensitive to the constraints on the recruitment process. These limits arise from the organization, the recruiter, and the external environment. Although the emphasis may vary from situation to situation, the following list includes the most common constraints:

• organizational policies • human resource plans • diversity management • recruiter habits • environmental conditions • job requirements • costs • inducements

Organizational Policies Organizational policies can constrain the recruiter. Policies seek to achieve uniformity, economies, public relations benefits, and other objectives unrelated to recruiting. Four policies that have impli- cations for recruitment are highlighted below.

1. PRomoTe-fRom-WIThIn PolIcIeS As already pointed out, promote-from-within policies are formulated to give present employees the first opportunity for job openings and facilitate their career growth. These policies are wide- spread. Searching for candidates internally versus external searching significantly impacts how recruiting is conducted. For instance, will recruitment ads be placed in the newspaper or posted in the lunchroom? Moreover, the content of the job postings will be different: substantially less infor- mation will be needed about the organization for internal as opposed to external candidates, and internal candidates may have a better sense of what a job entails than an external applicant.

Bypassing current employees can lead to employee dissatisfaction and turnover. On the other hand, promoting a positive organizational culture encourages people to join and stay with a firm.15 Employees are likely to be loyal to their employer only if they believe the organization values them. Nevertheless, there may be generational differences in the extent to which workers plan to spend their careers with their current organizations:

In a recent Conference Board of Canada report, 80 percent of Boomers reported planning to stay with their organization, whereas only 37 percent of Gen Xers and 24 percent of Gen Ys plan to stay.16

The “employee goal” discussed in Chapter 1 also necessitates the human resource manager to recognize and foster employee aspirations at the workplace.

Constraints on Recruitment

LO2

3

organizational policies Internal policies that affect  recruitment, such as  “promote-from-within”  policies.

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  CHAPTER 5  Recruitment  177

2. comPenSATIon PolIcIeS A common constraint faced by recruiters is pay policies. Organizations with human resource departments usually establish pay ranges for different jobs. Recruiters seldom have the authority to exceed stated pay ranges:

If Charles Shaw at Ontario Electronics decides to recruit externally, the pay range will influence the job seeker’s desire to become a serious applicant. For example, when the market rate for junior engineers is $3,500 to $3,800 per month, satisfactory applicants will be few if Charles can offer only $3,000 to $3,200 per month.

3. emPloymenT STATuS PolIcIeS Some companies have policies restricting the hiring of part-time and temporary employees. Although there is growing interest in hiring these types of workers, several unionized settings have limitations against hiring part-time, temporary, and contract workers, which can cause recruiters to reject all but those seeking full-time work. Likewise, policies against hiring employees who “moonlight” by having second jobs also inhibit recruiters. Prohibitions against holding extra jobs are intended to ensure a rested workforce.

4. InTeRnATIonAl hIRIng PolIcIeS Policies in some countries, including Canada, may also require foreign job openings to be staffed with local citizens. The use of foreign nationals, however, does reduce relocation expenses, lessen the likelihood of nationalization, and if top jobs are held by local citizens, minimize charges of economic exploitation. Moreover, unlike relocated employees, foreign nationals are more apt to be involved in the local community and understand local customs and business practices.

Human Resource Plans The human resource plan is another factor recruiters consider. Through skills inventories and pro- motion ladders, the plan outlines which jobs should be filled by recruiting and which ones should be filled internally. The plan helps recruiters because it summarizes future recruiting needs. This foresight can lead to economies in recruiting:

At Ontario Electronics, Charles Shaw checked the human resource plan before recruiting junior mechanical engineers. The plan indicated a projected need for three junior electrical engineers and a mechanical engineer during the next four months. Two internal candidates were hired for two of the junior positions. For the other positions, there were no internal candidates available. Charles decided to recruit mechanical engineering candidates at the same time when he was looking for the remaining junior electrical engineer. If advertisements were to be placed in the university news paper, there would be no additional cost for seeking both types of engineers. Travel costs, advertising costs, and the time devoted to a second recruiting trip would be saved.

Diversity Management Programs Where diversity management and employment equity programs exist, recruitment must also take these programs into account.

Ontario Electronics never pursued policies that intentionally discriminated against any group. But over the years, its sources of engineering recruits had been mostly white males who attended the small local university. In the recent past, the firm had initiated a voluntary diversity management program that focused on bringing more women and minorities into its technical and managerial cadres. To fulfill the intent of the diversity management program, Charles decided to recruit engineering technicians at a large metropolitan university, where female recruits were more likely to be found.

As we saw in Chapter 4, employers cannot discriminate against people with physical disabilities unless the disability would prevent the person from doing the job after reasonable accommodation by the employer. Proactive employers such as the Vancouver International Airport use innovative recruitment programs to tap the skills of a diverse workforce:

Realizing that there are thousands of physically and mentally challenged individuals who seek work, Vancouver International Airport <http://www.yvr.ca> actively started to recruit personnel among this group to their “barrier-free” workplace.17

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human resource plan A firm’s overall plan to   fill existing and future  vacancies, including  decisions on whether   to fill internally or to   recruit from outside.

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diversity management Recognizing differences  among employees belonging  to heterogeneous groups  and creating a work  environment in which  members of diverse   groups feel comfortable.

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178 PART 3  Attracting Human Resources

Recruiter Habits A recruiter’s past success can lead to habits. Admittedly, habits can eliminate time-consuming delib- erations that reach the same answers. However, recruiter habits may also perpetuate past mistakes or obscure more effective alternatives. So although recruiters need positive and negative feedback, they must guard against self-imposed constraints.

Consider again the recruitment of the junior engineer at Ontario Electronics. Suppose that the engi- neering department expresses satisfaction with recruits from the nearby university. Such positive feedback encourages recruiters to make a habit of using this source for beginning engineers. Since all these engineers have a similar curriculum, they may also share strengths and weaknesses. As a result, the engineering department may suffer because of the educational uniformity of new recruits.

Environmental Conditions External conditions strongly influence recruitment. Changes in the labour market and the chal- lenges mentioned in Chapter 1 affect recruiting. The unemployment rate, the pace of the economy, spot shortages in specific skills, projections of the labour force by Statistics Canada, labour laws, and the recruiting activities of other employers—all of these factors affect the recruiter’s efforts.

Faced with a labour market that had a severe shortage of experienced drivers, Coastal Pacific Xpress Inc. <http://www.cpx.ca/>, a Surrey, B.C.–based long-haul trucking firm, increased the pay of its owner-operators by 45 percent in four months to attract more recruits.18

Although these factors are considered in human resource planning, the economic environment can change quickly after the plan is finalized. To be sure that the plan’s economic assumptions remain valid, recruiters can check three fast-changing measures.

1. leAdIng economIc IndIcAToRS Statistics Canada <http://www.statcan.gc.ca> routinely publishes the direction of the leading indi- cators. The economic indices suggest the future course of the national economy. If these indices signal a sudden downturn in the economy, recruiting plans may have to be modified. Other agencies such as HRSDC, Industry Canada, the World Bank, and the International Monetary Fund also publish information that is of great interest to national and international organizations.

2. PRedIcTed VeRSuS AcTuAl SAleS Since human resource plans are partially based upon the firm’s predicted sales, variations between actual and predicted sales may indicate that these plans also are inaccurate. Thus, recruiting efforts may need to be changed accordingly.

3. emPloymenT STATISTIcS Statistics Canada routinely reports various employment statistics. Periodically, it produces reports on the state of employment in different industry sectors.

Employers can also monitor competition for specific job groups by looking at the ads in major newspapers. For clerical and production workers, who are usually recruited on a local basis, the human resource department may want to create its own ads index to monitor local changes in ads.

Organizations worldwide are likely to face a spiralling employee attrition rate over the next decade or so.

A survey of more than one million workers in 50 countries indicated that one third of the global workforce will change employers in two years. Sixty-four percent of employees who reported being uncertain or not committed to staying with their employer actually left the company within five years.19

Tighter competition for applicants may require more vigorous recruiting. When business con- ditions decline, an opposite approach is called for, as the following example illustrates:

As a major recreation centre was opening in Quebec, the leading economic indicators dropped. Although the human resource plan called for recruiting 100 workers a week for the first month, the employment manager set a revised target of 75. Lower recruiting and employment levels helped establish a profitable operation even though first-year admissions fell below the projections used in the human resource plan.

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recruiter habits The propensity of a  recruiter to rely on  methods, systems, or  behaviours that led to   past recruitment success.

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  CHAPTER 5  Recruitment  179

Job Requirements Of course, the requirements of each job are a constraint. Highly specialized workers, for example, are more difficult to find than unskilled ones. Recruiters learn of a job’s demands from the requesting manager’s comments and job analysis information. Job analysis information is especially useful because it reveals the important characteristics of the job and applicants. Knowledge of a job’s requirements allows the recruiter to choose the best way to find recruits, given the constraints under which the recruiter must operate.

“Find the best and most experienced applicant you can” is often a constraint that is imposed on recruiters as though it were a job requirement. At first, this demand seems reasonable: all managers want to have the best and most experienced people working for them. But several potential problems exist with this innocent-sounding request. One problem in seeking out the “best and most experi- enced” applicant is cost. People with greater experience usually command higher salaries than less experienced people. If a high level of experience is not truly necessary, the recruit may become bored soon after being hired. Moreover, if the human resource department cannot show that a high degree of experience is needed, then experience may be an artificial requirement that discriminates against some applicants. Another point about experience is worth remembering: for some people in some jobs, 10 years of experience is another way of saying 1 year of experience repeated 10 times. Someone with 10 years of experience may not be any better qualified than an applicant with only 1 year.

Costs Like all other members of an organization, recruiters must also operate within budgets. The costs of identifying and attracting recruits are an ever-present limitation:

Manitoba Engineering Company Ltd. found that the average cost of recruiting engineers in the com- pany was more than $3,300 per hire. To hire senior engineers and managers, the cost was even higher. To fill a $70,000 per year position, the company often had to pay $5,000 to $6,000 to search firms. To monitor and control costs, the human resource manager of the company was asked to assess the effectiveness of the company’s recruitment programs and costs of recruitment under alternative recruitment methods.

Careful human resource planning and forethought by recruiters can minimize these expenses. For example, recruiting for several job openings simultaneously may reduce the cost per recruit. Of course, a better solution would be to take action to reduce employee turnover, thus minimizing the need for recruiting. Proactive human resource management actions go far in achieving this objective.

Inducements The recruiter is very much like a marketer—he or she is selling the company as a potential place of work to all eligible recruits. As with any marketing effort, inducements may be necessary to stimulate a potential recruit’s interest. The growing global marketplace means that workers are also mobile, and attracting them may require unconventional incentives or inducements:

Nurses at Health Canada <http://www.hc-sc.gc.ca> are offered up to a $4,500 inducement for working in remote and isolated First Nations communities.20 KFC in Japan developed a unique strategy for attracting qualified employees by offering them a trip to Hawaii. This enabled the company to meet local competition as well as competition from other international organizations, and look for Japanese workers effectively.21

Not all inducements are monetary or even tangible.

A department of an Atlantic Canadian university takes all its potential faculty recruits to the scenic areas for a day’s car tour in an effort to “sell” the location (and through that, the institution). Faced with severe constraints on the compensation package it can offer, the department decided to use its “intangible” assets to assist in its recruitment and selection process.

Flextime, high quality of life, etc., can be potential selling points for a firm; in some instances, certain items (such as flextime) can also be a constraint if all major employers are using them. In such an instance, a firm needs to meet the prevailing standards. Inducements may be a response to overcoming other limitations faced by the recruiter:

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costs Expenses related to  attracting recruits.

inducements Monetary, nonmonetary,   or even intangible  incentives used by a   firm to attract recruits.

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180 PART 3  Attracting Human Resources

The fast food industry, which employs a large percentage of young workers, typically experiences high employee turnover. To reduce turnover and thereby its recruiting costs, one fast food chain introduced an educational assistance program. Under the program, an employee could accrue up to $2,000 worth of tuition credits over a two-year period. Result? Turnover among participants in the program is a mere 22 percent compared to a 97 percent turnover of those who were not part of the plan. It significantly reduced the firm’s recruitment efforts and costs.

More recently, several employers have been using nontraditional benefits to attract and retain their employees:

Some of the benefits offered today include fitness centre subsidies, reimbursement of professional membership fees and course fees, on-site vaccination programs, employee mental health insurance, retiree health care benefits, financial planning assistance, and on-site parking.22

The key in all cases is to understand the needs and motivations of the target recruits and offer a set of inducements that appeal to them. Not all inducements have to be monetary.

RBC Financial Group finds that its focus on workplace diversity has paid rich dividends when recruiting employees. It found that when job candidates come in for interviews at RBC, they often ask about the bank’s diversity initiatives and whether resource groups exist. The fact that the bank has four resource groups is a big drawing factor when recruiting. The bank’s Reach focuses on people with disabilities; Royal Eagles focuses on the needs of the Aboriginals; Pride is for lesbian, gay, bi-sexual, and transgendered people; and Mosaic helps members of visible minorities and new Canadians to integrate into the workforce and the larger community.23

Traditionally, job seekers formally apply for a job through either submitting their résumé or completing a job application. The résumé (or curriculum vitae or CV) is a brief summary of the applicant’s back- ground. It typically includes a one- to two-page summary of the applicant’s education, work expe- rience, personal contact information, work goals, and related skills. Often, a résumé is the first piece of information about a job candidate that an employer will see.

In the case of unsolicited applications, the résumé is the information source that a recruiter will use in deciding whether the applicant is worthy of further consideration. This makes the résumé a vital part of a job search for any person. To help them sift through a large pile of résumés, many recruiters such as Home Depot and TD Canada Trust will scan paper résumés into a database and/ or accept résumés electronically. They will then use résumé screening software such as Resumix to filter through and score the résumés according to key education and job requirements:

Organizations such as MCI Telecommunications <http://www.mci.com/> and Disneyland Resorts <http://disneyland.disney.go.com> use computer scanning to take advantage of the large number of résumés they receive. When résumés arrive at either MCI or Disneyland Resorts, clerks scan the résumés into a computer database. Later, recruiters can search the database for candidates with specific qualifications. When the hiring manager needs to fill a position, he or she tells the recruiter the job requirements and applicant profile. The recruiter then searches the database using key words. The computer displays the number of résumés that meet the required criteria. If the number is too large or too small, the recruiter can change the required qualifications (e.g., if a search for candidates who have had 10 years of work experience yields only five résumés, the recruiter can change the search criterion to seven years of experience). Once the program finds a manageable number of applicants, the recruiter can view the résumés or résumé summaries online and eliminate any that are not appropriate. Then, the recruiter can print selected résumés.24

Applying for a Job

3

résumé A brief voluntary listing   of an applicant’s work  experience, education,  personal data, and   other information   relevant to the job.

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The second way of formally applying for a job is by completing a job application form. Many people think that completing a job application form after submitting a résumé is redundant. Not so! The job application form collects information about recruits in a uniform manner, and hence is an important part of all recruitment efforts. Even when recruits volunteer detailed information about themselves on a résumé, job applications are often required so that the information gathered is comparable across candidates. Furthermore, job application forms designate the information the recruiters would like to have for each applicant, and may make indicators such as education credentials and gaps in employment history more readily apparent.

Each human resource department generally designs its own form. Nevertheless, certain common features exist. Figure 5-3 provides a typical example of an application form and its major divisions.

6Figure 5-3 A Typical Application Form

Kanata Electronics, Inc. “An Equal-Opportunity Employer”

application for Employment

Personal Data   1.  Name

2.  Address    3. Phone number

Employment status   4.  Type of employment sought    Full-time     Part-time

Permanent     Temporary

5.  Job or position sought

6.  Date of availability, if hired

7.  Are you willing to accept other employment if the position you seek is unavailable?

Yes    No

8.  Approximate wages/salary desired $   per month

Education and skills   9.  Circle the highest grade or years completed.

9  10  11  12  13  1  2  3  4  1  2  3  4

High School  University  Graduate School

10.  Please provide the following information about your education.

(Include only vocational schools and colleges.)

a.  School name    Degree(s) or diploma

School address

Date of admission    Date of completion

b.  School name    Degree(s) or diploma

School address

Date of admission    Date of completion

11.  Please describe your work skills. (Include machines, tools, equipment, and other abilities you possess.)

job application form A company’s form  completed by a job  applicant indicating their  contact information,  education, prior  employment, references,  special skills and other  questions pertaining   to the position.

3

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182 PART 3  Attracting Human Resources

Work History Beginning with your most recent or current employer, please provide the following information about  each employer. (If additional space is needed, please use an additional sheet.)

12.  a.  Employer    Dates of employment

Employer’s address

Job title    Supervisor’s name

Job duties

Starting pay    Ending pay

b.  Employer    Dates of employment

Employer’s address

Job title    Supervisor’s name

Job duties

Starting pay    Ending pay

References In the space provided, list three references who are not members of your family.

13.  a.  Name    Address

Name    Address

Name    Address

14.  Please feel free to add any other information you think should be considered in evaluating   your application.

By my signature on this application, I:

a.  Authorize the verification of the above information and any other necessary inquiries that    may be needed to determine my suitability for employment.

b.  Affirm that the above information is true to the best of my knowledge.

Applicant’s Signature    Date

Name and Address Most application forms begin with a request for personal data. Name, address, and telephone number are nearly universal. But requests for some personal data, such as place of birth, marital status, number of dependants, sex, race, religion, or national origin, may lead to charges of discrimination. Since it is illegal to discriminate against applicants, an unsuccessful applicant may conclude that rejection was motivated by discrimination when discriminatory questions are asked. The human resource department must be able to show that these questions are job-related if it asks them.

When applications solicit information about health, height, weight, disabilities that relate to the job, major illnesses, and claims for injuries, potential legal problems exist. Discriminating against people with disabilities is prohibited under the Canadian Human Rights Act. The burden of proof that such questions are job-related falls on the employer.

Employment Status Some questions on the application form concern the applicant’s employment objective and avail- ability. Included here are questions about the position sought, willingness to accept other positions, date available for work, salary or wages desired, and acceptability of part-time and full-time work schedules. This information helps a recruiter match the applicant’s objective and the organization’s needs. It may also cue the recruiter to be sensitive about an applicant’s current employment status.

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Often applicants who are currently employed will not have their current place of employment contacted for a reference until they are close to receiving a job offer so that if they are not successful in obtaining the new job, their current employer does not know they were looking for an alternative.

Education and Skills The education and skills section of the application form is designed to uncover the job seeker’s abilities. Traditionally, education has been a major criterion in evaluating job seekers. Educational attainment does imply certain abilities and is therefore a common request on virtually all applications. Questions about specific skills are also used to judge prospective employees. More than any other part of the application form, the skills section reveals the suitability of a candidate for a particular job.

Work History Job seekers must frequently list their past jobs. From this information, a recruiter can tell whether the applicant is one who hops from job to job or is likely to be a long-service employee. A quick review of the stated job title, duties, responsibilities, and ending pay also shows whether the candidate is a potentially capable applicant. If this information does not coincide with what an experienced recruiter expects to see, the candidate may have exaggerated job titles, duties, responsibilities, or pay.

References Besides the traditional references from friends or previous employers, applications may ask for other “reference-like” information. Questions may explore the job seeker’s criminal record, credit history, friends and relatives who work for the employer, or previous employment with the organi- zation. Criminal record, credit history, and whether the applicant has friends or relatives who work for the company may be important considerations if the job involves sensitive information, cash, or other valuables. Job-relatedness must be substantiated if these criteria disproportionately dis- criminate against some protected group. Previous employment with the organization means there are records of the applicant’s performance.

Signature Line Candidates are usually required to sign and date their applications. Adjacent to the signature line, a blanket authorization commonly appears. This authorization allows the employer to check references; verify medical, criminal, or financial records; and undertake any other necessary investigations. Another common provision of the signature line is a statement that the applicant affirms the information in the application to be true and accurate as far as is known. Although many people give this clause little thought, falsification of an application form is grounds for discharge in most organizations:

Jim LaVera lied about his age to get into the police officers’ training program. As he neared retirement age, Jim was notified that he would have to retire in six months, instead of 30 months as he had planned. When Jim protested, the lie he made years before came to the surface. Jim was given the option of being terminated or taking early retirement at substantially reduced benefits.

Recruitment Methods

To let job seekers know about job opportunities at the company, there are many options for recruiters. In most instances, recruiters will tend to use several methods at the same time in their search for applicants.

Walk-ins and Write-ins Walk-ins are job seekers who arrive at the human resource department seeking to drop off their résumé or to complete a job application form. Write-ins are those who send a written inquiry by either mailing in their résumé or completing a job application on-line. Indeed, today, a significant percent- age of human resource managers prefer to receive résumés and job applications electronically

3

LO3

walk-ins/write-ins Job seekers who arrive   at or write to the human  resource department in  search of a job without  prior referrals and not in  response to a specific ad.

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184 PART 3  Attracting Human Resources

because of the ease of storage and retrieval.25 Suitable résumés and applications are typically kept in an active file until an appropriate opening occurs or until the application is too old to be considered valid—usually six months. Larger firms relate information collected like this into their overall human resource information systems.

Employee Referrals Present employees may refer job seekers to the human resource department. Employee referrals have several unique advantages. First, employees with hard-to-find job skills may know others who do the same work.

RBC and KPMG were chosen as two of Canada’s Top Employers for 2012, in part, because of their employee referral programs. RBC offers referral bonuses of up to $1,500 for some positions, with KPMG referral bonuses of up to $5,000.26

Second, new recruits already know something about the organization from those employees who referred them. Thus, referred applicants may be more strongly attracted to the organization than are walk-ins. Third, employees tend to refer friends whom they identified through personal networking. These persons are likely to have similar work habits and work attitudes. Even if work values are different, these candidates may have a strong desire to work hard so that they do not let down the person who recommended them.

Employee referrals are an excellent and legal recruitment technique. However, recruiters must be careful that this method does not intentionally or unintentionally discriminate. The major problem with this recruiting method is that it tends to maintain the racial, religious, sex, and other features of the employer’s workforce. Such results can be viewed as discriminatory. The Canadian Forces have organized recruitment campaigns designed to attract more women to military careers. Should there be limitations as to choice—for example, wanting to be a submariner?

Advertising Advertising is an extremely common, effective method of seeking recruits. Since it can reach a wider audience than employee referrals or unsolicited walk-ins, many recruiters use it as a key part of their efforts.

employee referrals Recommendations by  present employees to the  recruiter about possible job  applicants for a position.

LO4C P/A ndre wV augh an.

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CHAPTER 5  Recruitment  185

Ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply. They are the most familiar form of employment advertising. For highly specialized recruits, ads may be placed in professional journals or out-of-town newspapers located in areas with high concentrations of people with the desired skills.

For example, recruiters in finance often advertise in Vancouver, Toronto, Montreal, and Halifax news- papers because these cities are major banking centres.

Ads have some significant drawbacks. They may lead to thousands of job seekers for one popular job opening, many of whom may not be qualified for the position.27 Often the ideal recruits are already employed and not reading job ads. Finally, secretly advertising for a recruit to replace a current employee cannot easily be done with traditional ads.

These problems are avoided with blind ads. A blind ad does not identify the employer. Interested applicants are told to send their résumé to a box number at the post office or to a non-corporate email account.

The cost of most advertising is determined by the size of the advertisement (in general, larger ads cost more), and the size of the distribution of the advertisement (ads that are circulated to more people generally cost more than ads reaching fewer people). They may also be produced using various media with radio and small print ads as typically the least expensive, followed by recruitment brochures and billboards, with television advertising as the most expensive form of recruiting. Typically, television advertising is only used for large hiring campaigns with a national focus. For instance, the Canadian Forces ran a TV ad campaign when they were looking to hire 30,000 recruits during one summer.

Because most readers will be travelling in an automobile, the amount of information that can be conveyed on a billboard is limited. Another limitation of this approach is that it generally requires considerable lead time to prepare a sign. In deciding whether to use a billboard, the recruiter should consider the type of job to be advertised. If it is a job for which the firm is continuously recruiting, it may be worthwhile to have a billboard in visible locations.28

Transit advertising involves placing posters in buses, commuter trains, and subway stations. By and large these are only used by employers who have difficulty filling positions using traditional methods. Transit job advertising is relatively inexpensive. If it is placed in a specific geographic location (such as a particular bus stop), it allows an organization to target its advertising to a specific demographic or even ethnic group. If placed in a bus or train, a job advertisement can be seen by thousands of persons each week (or even day). In order to make it easy to respond, the organization should attach coupons that can be torn off, completed, and mailed.

Regardless of the advertising media, applicants prefer to learn basics about the job including hours of work, location, wages, and benefits right on the advertisement.29 Job ads must contain not only information about the job but also information presented in a way that effectively portrays a message about the job, the work environment, management style, organizational climate, and future growth potential. This can’t be done if the ad contains information that explains only what responsibilities the job includes, who can be qualified, where it is located, and how and when to apply. Recruiters must also determine whether to portray the job only in an attractive manner so that applicants are enticed to apply for and accept the job, or whether to also include potential negative aspects of the job. Realistic recruitment messages portray the job and organization as it really is by including both positive and negative aspects. This ‘tell it like it is’ philosophy may lead some applicants to decide not to apply, but applicants who choose to apply and eventually accept job offers may be more committed to the organization, and leave less frequently; they may be better able to cope with job demands and they may avoid the disappointment of finding out negative aspects after they’ve accepted the job.30

The choice of whether to use an attractive or a realistic message may depend on the labour market and particular requirements of the job:

If applicants are hard to find, then enticing prospects with an attractive message is likely best. And if there are lots of potential applicants, then having some applicants self-select out of the applicant pool by using a realistic message will help recruiters by leaving them with fewer applicants to sort through.

Figure 5-4 provides an example of an ad that provides relevant job information and at the same time “sells” the company to potential applicants.

ads Advertisements in a  newspaper, magazine, etc.  that solicit job applicants  for a position.

blind ads Job ads that do not identify  the employer.

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186 PART 3  Attracting Human Resources

Figure 5-4 Sample Ad

Traditional recruitment advertisements may be insufficient, particularly when recruiting people with hard-to-find skills or when labour markets are tight. Figure 5-5 lists some of the information contained in good job ads along with other desirable attributes.

As one can see, there are many decisions to be made about recruitment advertising. Regardless of the media and the message, the layout, design, and copy of an advertisement should reflect the image and character of the company and departments that are being represented.31 This includes dimensions such as the size of the organization, the degree of decentralization seen in the firm, the degree of dynamism and progressive policies typical of the unit, and so on. This in turn means that an ad should emphasize the nature of the organization and the benefits of the package that it offers to attract the applications of qualified people, but at the same time be specific enough to screen out the wrong persons.

The Internet The Internet is increasingly becoming one of the most important tools to match jobs with candi- dates—whether one is a recruiting firm or a job applicant. There are three major reasons for this. First, the Internet offers a cost-effective distribution of information to over 100 countries and millions of users and its information is accessible day and night. Second, by specifying the exact qualifications and job skills needed, the time needed to weed out unsuitable job candidates is minimized. Indeed, the applicants themselves may, on the basis of information supplied, decide not to apply for unsuitable positions. This also adds to the recruiting process the important attribute of timeliness. Third, it is relatively inexpensive. Compared to the commissions to be paid to an executive search firm or the travel expenses of a campus recruiter, the cost of putting an ad on the Internet is minimal, making it an attractive alternative for many organizations.

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Figure 5-5 Attributes of Good Job Ads

Good job ads, in general, seem to have several common characteristics, such as the following:

1.  They attract attention!

2.  They address the audience and use a language that the applicant finds comfortable.

3.  They use short sentences and familiar words that are action-oriented.

4.  They contain all relevant information about the job and the firm. Some major items here are:

•  job title

•  working conditions

•  a clear description of the job

•  training offered

•  organizational and work culture

•  major skills, competencies, and educational requirements

•  career and personal development possibilities

•  location of the job

•  salary, benefits, and other incentives

•  travel and other requirements

•  company selling points

5.  They sequence the content logically and in an engaging manner.

6.  They respect provisions of human rights and other laws and the dignity of the readers.

7.  They do not use sexist, racist, or otherwise unacceptable language. Even the use of adjectives  that are normally associated with males or whites may be unacceptable to other groups (e.g., use  of adjectives such as “assertive,” “dominant,” “aggressive,” etc., usually connote male sex roles;  while terms such as “compassionate,” “gentle,” and “sympathetic” signify female sex roles).32

8.  They stand out from other advertisements with good copy layout, visual balance, visual tension,  and colour contrast.

9.  Their size and presentation should be cost-effective compared with other recruitment methods  and considering size and location of target audience.

10.  They should make a favourable projection of corporate image and activities without boasting or  making unsupported claims.

One company reported savings of $70,000 a day in recruitment costs by switching to the Internet as the main recruitment tool.33

Internet recruiting has taken off in a number of areas. There are job board sites where job seekers can post their résumés and recruiters can post their job opportunities. Further, most orga- nizations now have a Careers section on their corporate website that can be accessed in two clicks or less from their home pages.34 Careers pages often contain detailed information about job oppor- tunities, wages and benefits, the organization, and increasingly, employee testimonials about what it is like to work at the company.

To attract members of Generation Y to their careers, Safeway Canada <http://www.safeway.ca/> worked with an HR and marketing consulting firm to create the Safeway Jobpod website <www. jobpod.ca>. The Jobpod site allows prospective applicants to visit links that appear like buttons on an iPhone. The site includes Generation Y video hosts and information on topics including student programs and educational reimbursement, different types of career opportunities at Safeway, what to expect on the first day, a calculator to help prospective applicants figure out how long it will take them to earn various amounts of money, and of course, a button to apply for jobs.

The Internet has had such a significant impact on recruitment that over 50 percent of all résumés today are submitted electronically.35

Internet recruiting Job recruitment using   the Internet.

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188 PART 3  Attracting Human Resources

To improve upon how résumés are searched on its job board site, Monster <www.monster.ca> has launched Power Résumé. Employers can use this product to search out job seekers with particular qualifications; the software then rates job seekers out of 10 and distills their résumés down to a short summary with education, skills, and years of experience that can be stacked side-by-side for easy comparison. Workopolis <www.workopolis.com>, an online career resource with job postings from across Canada, distributes its job postings automatically on Twitter.36 With over 30,000 new résumés posted each month, Workopolis is now offering employers a creative new way to sell themselves to potential recruits—namely Workopolis TV, featuring career advice and employers talking about what makes their companies great places to work as they highlight available positions.37

To leverage technology, recruiting has also expanded to mobile devices. iPhone, BlackBerry, and Android have applications that allow job seekers to search and apply for jobs through their smartphones. Many organizations are also on Facebook, where the average user is age 32, and LinkedIn <http://ca.linkedin.com/>, where the average user is 37 years old.38

For some suggestions on how to recruit on the Internet, see the “Spotlight on HRM” below. One caution with recruiting on the Internet is that a large portion of Canadians, especially

those who are less educated or do not have broadband service access, cannot take full advantage of the Internet,39 thus limiting its recruitment effectiveness. Further, since the Internet opens up recruiting to a global audience, great care has to be taken when designing ads and choosing hiring procedures.

SPOTLIGHT ON ETHICS facing Recruitment dilemmas

Like many other HR activities, recruitment often raises ethical dilemmas and questions. Consider the following situations. Do you believe that there are ethical issues here? Rate each item on a five-point scale with these anchors:

1. Very unethical

2. Somewhat unethical

3. Can’t decide

4. Somewhat ethical

5. Very ethical

What values, beliefs, or other arguments justify your conclusion? Please list them on a separate sheet of paper along with your ratings, using the above scale.

1. Because of a sudden spurt in demand for your products caused by the temporary closure of a competing plant, you need an additional manager. Your plant is located in a somewhat remote place devoid of many urban conve- niences. You know that this is only a temporary position, but if you publicize it as such, you are unlikely to attract any competent candidates. In your advertisements and during the job interviews, you decide not to make any statements about the short-term nature of the position. You will not make any false statements, but also will not divulge that the position is going to be available for only about six months.

2. Of late, your firm, a designer clothing firm, has not been very successful in coming out with many innovative designs. If you do not make a breakthrough in the immediate future, the possibility exists that your firm may go under. You meet the chief designer of your competitor and offer an $8,000

raise to him in an effort to attract him to your firm and turn around your fortunes.

3. Your firm has been attempting to introduce diversity at your workplace. You have had a fair degree of success until now, except with members of one ethnic community who your HR department finds to be “troublemakers.” Employees who belong to this community are found to be emotionally upset even over minor matters and are very vocal in their complaints. You find that a lot of productive time is wasted in managing conflicts and settling disputes. During a recent conversation with a professional colleague in another firm, you mentioned this matter. He confirmed similar experiences in his organization. He also told you that whenever he gets applications from members of this community (who can be identified from their names), he tends to pass them into the inactive file without serious consideration. He suggested that you follow the same practice until the situation improves.

4. Your firm, a successful software programmer with a 25 per- cent market share of a specific product, badly needs to know more about a competitor’s patented program. While you do not intend to infringe their patents, a good knowl- edge of the intricacies of their program and future product plans can help you get a head start in the next phase of development and capture some of their market share. You offer a very attractive salary and a share of profits emerg- ing from the new product to the star programmer with your competitor. You are hopeful that when she joins your firm, she will be able to tell you secrets of your competitor’s success and future plans.

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SPOTLIGHT ON HRM Recruiting on the Web

Recruiting on the Internet is one of the hottest topics in human resource management currently; however, its effectiveness is dependent on the care and planning behind the strategy. Recruiting is often among the first functions developed on a corporate Web page.41 This means that the message and tone you convey on the Web page can affect not only your recruit- ment effectiveness but also the general public image of the company. Some organizations have experienced a remarkable increase in the number of applications they receive when recruiting on the Internet. (Prior to a buyout in 2003, Good Guys, an electronics chain in the United States, increased the number of applications it received from 14,000 to 32,000 in one year by recruiting on the Internet.) Some of the suggestions for improv- ing a firm’s recruitment success on the Internet are as follows:

1. Make your postings attractive: In the past, print media costs and space constraints have forced recruiters to use brief job descriptions. Online job postings can be longer and more informative, can be visually more exciting, and can be inter- active. Because the website has to compete for attention from surfers, it is important that the website be attention- grabbing, be easy to surf, and have self-contained information.

2. Publish your Web address on everything: Make sure that your Web address (URL) is included in your traditional ads in the newspapers, marketing information, public relations notices, and all other corporate communication devices.

3. Continue to look for unconventional recruitment outlets: Even when you announce job openings in less conventional locations (e.g., a minority language newspaper), include your URL in your message.42

4. When publishing material for college, university, or trade school markets, always include your URL: This group, of all population segments, accesses the Internet most often. Research evidence indicates that Internet surfers are younger, well educated, and technologically oriented.

5. Register your site: Make sure that you register your site with all popular search engines, such as Yahoo, MSN, and Google.

6. Use specialized recruitment websites: Today, a plethora of recruitment sites specialize in different kinds of personnel. By advertising on specialized websites, you are likely to target specific markets. Examples include the following: For teachers: <www.recruitingteachers.org> For fire and police personnel: <www.ifpra.com> For engineers: <www.engineeringjobs.org> For information technology personnel: <www.jobserve.com> For jobs in sports and recreation field: <www.canadiansport.com/jobs> For accounting jobs: <www.acctjob.ca> Careers in oil and gas industry: <www.careersinoilandgas.com> For working from home: <www.hea-employment.com> For hospitality careers: <www.hcareers.ca>

7. Target the websites in the province or territory where the job is: HRSDC can give you a breakdown of applicants in each province for a specific job. There are also special- ized websites for each province (e.g., for Government of B.C. recruitment: <http://employment.gov.bc.ca/>).

8. When national recruitment efforts fail, consider attract- ing foreign nationals: Once again, there are many choices in terms of recruitment websites, including the following: For Australia: <http://www.iconrec.com.au/en-AU/Pages/default.aspx> For the U.K.: <www.topjobs.co.uk> For E-countries: <www.ecountries.com>

9. Post the recruitment ad in Internet newsgroups: They are free (at least most of them are). Because the news- groups continuously update materials, you will need to periodically reinsert your ad. This also gives you an oppor- tunity to revise your ad. Some examples of popular newsgroups are “can.jobs,” “ont.jobs,” and “tor.jobs.” Some of the other interesting websites (most of them originating in the U.S.) are:43

CareerBuilder.com: <www.careerbuilder.com> Career Magazine: <www.careermag.com> MonsterTrak: <www.jobtrak.com> Irrespective of where the ad is listed, it should contain all key words likely to be used by a firm’s recruits when access- ing the information using search engines.44

10. Take advantage of special Internet advertisement offers: Advertise your openings with popular online newspapers and magazines as their websites are well surfed.

11. List your ad with all major Web-based job banks (including HRSDC’s): Use the various career sites to send applicants to you.45 Included here are the following: <www.workopolis.com> <www.monster.ca> <www.recruitersonline.com> <www.brassring.ca>

12. Remove the ad as soon as the position is filled: If the recruitment is for a one-time position, the advertisement should be removed as soon as the position is no longer available. The site should also indicate the period of time during which applications are kept active.

13. Choose software carefully: Software that scans the résumés should be keyed for pertinent, job relevant words. A peri- odic review of the “screened out” applications indicates whether the software is deleting applications from pro- tected employment groups systematically. Such validation studies can help to avoid potential legal challenges.

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Although many countries use English as their major language for business, there are vast differences in English usage across countries. For example, several words and expressions used in North America are alien to people in Hong Kong, Australia, or India, although many applicants in those countries are fluent in English. Many symbols and graphics also have vastly different meanings in different countries. For example, a thumbs-up gesture meant to signal a positive thought would be obscene in Sicily.40

Job applicants in Holland and France expect that employers will ask them about personal details such as gender, age, and marital status, although such questions are illegal in Canada.

Human Resources and Skills Development Canada Human Resources and Skills Development Canada (HRSDC) works to improve the standard of living and the quality of life of all Canadians by promoting a highly skilled and mobile workforce as well as an efficient and inclusive labour market. It offers a variety of programs and services for both employers and prospective employees, offered through three branches. These branches and their purposes are summarized next,46 with further information available on the HRSDC website <www.hrsdc.gc.ca>:

• Income Security and Social Development. This branch informs social policy and offers pro- grams designed to ensure that Canadians (including children, families, persons with disabilities, seniors, homeless persons, and others facing social challenges) have the knowledge, support, and information they require to maintain their well-being and to ease their participation in the larger society and the labour force.

• Learning. The Learning Branch helps Canadians to attend higher education institutions. They pro- vide advice and loans to students, and encourage individuals and organizations to save for post- secondary education. They also assist children from low-income families through education grants.

• Skills Employment. This Skills Employment branch provides programs that promote skills development and labour market participation and inclusivity by addressing employment bar- riers, contributing to life-long learning, and building an inclusive skilled labour force. They are also responsible for programs that support an efficient labour market including integration of recent immigrants, the usage of temporary foreign workers, the interprovincial mobility of workers, and disseminating labour market information across Canada. This branch also provides programs for temporary income support to eligible unemployed workers.

More specifically, in the human resource management context, HRSDC has three comple- mentary objectives:

1. To help Canadians prepare for, find, and keep work by assisting employers and job applicants in their search.

2. To assist workers in this country in their efforts to provide financial security for themselves and their families.

3. To promote a fair, safe, healthy, stable, cooperative, and productive work environment for Canadians.

HRSDC attempts to achieve these objectives through a variety of programs. Service Canada was created in 2005 to improve the delivery of government programs and services to Canadians, by making access to them faster, easier, and more convenient. Service Canada offers single-win- dow access to a wide range of Government of Canada programs and services for citizens (includ- ing several of those from HRSDC) through more than 600 points of service located across the country, call centres, and the Internet. HRSDC offers specific programs and activities including the Job Bank and Working in Canada website.

The Job bAnk The Job Bank <http://www.jobbank.gc.ca> provides a comprehensive database of thousands of jobs and work opportunities available across Canada. When an employer has a job opening, the human resource department voluntarily notifies HRSDC of the job and its requirements, which are then posted at the website. Here, prospective employees can scan the job openings and discuss any vacancy with one of the counsellors available. When an applicant expresses interest in some particular job, counsellors interview that person. Over 40,000 employers use the services to advertise full-time, part-time, and summer job opportunities.47

Human Resources and skills Development Canada (HRsDC) Federal agency that  provides programs and  services for employers   and present and   potential employees.

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WoRkIng In cAnAdA WebSITe The bilingual Working in Canada website <http://www.workingincanada.gc.ca> is a comprehen- sive source of information designed for job seekers and employers in Canada. For job seekers, the site offers a tool to search through job descriptions, examine wage rates and skills requirements, and find training and job opportunities. The information can be sorted by occupation and also within specific geographical regions. The site was designed to help Canadians choose career paths, explore educational options, and prepare for job searches and interviews. For employers, the site offers information on hiring and retaining workers, labour market information, advice on human resource management tools, and government program and regulatory information.

Private Employment Agencies Private employment agencies—which now exist in every major metropolitan area—arose to help employers find capable applicants. Placement firms take an employer’s request for recruits and then solicit job seekers, usually through advertising or from walk-ins. Candidates are matched with employer requests and then told to report to the employer’s human resource department. The matching process conducted by private agencies varies widely.

Some placement services carefully screen applicants for their client. Others simply provide a stream of applicants and let the client’s human resource department do most of the screening. Some of the private employment firms match their strategies to the emerging environmental trends, as the following illustration shows:

A metropolitan placement agency marketed its services on the basis of skill, dedication, and ready availability of its temporary workers. When faced with a shortage of school students who worked part-time, the agency began looking at other population segments. One group met all the three requirements of the agency—the recently retired and about-to-retire persons were skilled, dedicated, and prepared to accept temporary assignments. In a short while, the firm began to rely solely on this group for all its temporary staff needs.

Use of a private employment agency may be necessary when the employer needs only a few persons and on a temporary or irregular basis. Also, when the employer has a critical need to fill a position quickly, this method can be very useful. In times of tight labour markets, it may be neces- sary to attract individuals who are already employed on a part-time basis. Private employment agencies can achieve this more cost-effectively, especially if the employer has limited experience in the local labour market.

In many provinces, it is either illegal for private employment agencies to charge applicants a fee for placement, or the fees charged are regulated. Most fees are paid by the agencies’ clients— that is, the prospective employers. The fees commonly equal either 10 percent of the first year’s salary or one month’s wages, but the amount may vary with the volume of business provided by the client and the type of employee sought.

Professional Search Firms Professional search firms are much more specialized than placement agencies. Search firms usually recruit only specific types of human resources for a fee paid by the employer. For example, some search firms specialize in executive talent, while others use their expertise to find technical and scientific personnel. Perhaps the most significant difference between search firms and placement agencies is their approach. Placement agencies hope to attract applicants through advertising, but search firms actively seek out recruits from among the employees of other companies. Although they may advertise, the telephone is their primary tool for locating and attracting prospective recruits:

B.C. Radar Company needed a quality control manager for its assembly line. After several weeks of unsuccessful recruiting efforts, the human resource manager hired a search firm. The search firm reviewed the in-house phone directories of competing firms and telephoned the assistant quality control manager at one of B.C. Radar’s competitors. The phone call was used to encourage this assistant manager to apply for the position at B.C. Radar.

This brief example illustrates several important points. First, search firms have an in-depth experience that most human resource departments lack. Second, search firms are often willing to undertake actions that an employer would not, such as calling a competitor. Third, it can be seen

professional search firms Agencies that, for a   fee, recruit specialized  personnel for a company.

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192 PART 3  Attracting Human Resources

that some human resource professionals would consider search firms unethical because these firms engage in “stealing” or “raiding” among their clients’ competitors. This last example shows why search firms are sometimes called “headhunters.”48

In the past few years, the number of executive recruiting firms in Canada has been growing rapidly. Although most of them are located in large metropolitan cities such as Toronto, Montreal, or Vancouver, an increasing number of these firms are making an appearance in smaller cities and towns.

Many human resource departments view executive search firms as a regular part of their operations.49 Retainer search firms—those that work on fee-paid assignments—are more popular among HR managers than contingency search firms—those that receive a fee only if an employer hires the candidate suggested by the search firm. The latter are considered to be more aggressive and, given their reward structure, at times tempted to fill a position at any cost—even if the fit between the job and applicant is less than optimal.50

What is the reason for the growing popularity of executive search firms? Using professional search firms may lead to understanding of niche requirements in particular industries, lower cost per recruit, access to candidates integrated into specific industries and passive job seekers, and an overall higher success rate in recruiting the right quality personnel.51

In one survey of 107 Canadian organizations, over 75 percent of the responding human resource departments indicated that executive search firms could reach applicants who were unreachable through other means. However, the same survey found that a majority of respondents felt search firms were more appropriate for larger firms. Over 60 percent also indicated that their own recruiters and departments had a better understanding of the firm’s employment needs than search firms.52

When choosing a search firm, care must be taken to test the “fit” between the firm and the client organization. Some of the search firms, especially the smaller ones, are often highly specialized and may not be able to meet the general needs of a client. Checking the recruiting record of the firm and its reputation is, consequently, very important. The larger firms can be quite expensive, often charging 30 percent of the candidate’s gross starting salary as fees (not inclusive of other expenses).53 Some of the factors that should be considered in evaluating a recruiting firm include the size of the firm, staff qualifications, ability to meet time requirements, financial soundness of the firm, proven validity of the testing/selection instruments and practices, and provision of measurable results from previous contracts (track record and acceptable references).

Educational Institutions For entry-level openings, educational institutions and alumni associations are another common source of recruits. Counsellors and teachers often provide recruiters with leads to desirable candidates in high schools. Many universities, community colleges, and technical schools offer their current students and alumni placement assistance. This assistance helps employers and graduates to meet and discuss employment opportunities and the applicant’s interest.

Campus recruitment is a very competitive activity. This is especially so for employers in the mining sector because so few students are graduating from mining engineering programs in Canada. A typical chemical engineering class will have several hundred students, but the mining engineering program at Dalhousie University <http://www.dal.ca/> in Halifax had just 10 and the program at Queen’s University <http://www.queensu.ca/> in Kingston had only 30 in 2008. Graduates in mining engi- neering consequently have been able to pick and choose employers. The average job-offer acceptance rate across all industries was 82 percent, but it was just 59 percent for job offers in the mining industry.54

Past research studies indicate that students desire campus recruiters to be well informed, honest, and skilled. The title and age of the recruiter, and even whether the recruiter is an alumnus of the same institution, may also be important factors in creating a favourable impression on recruits.55 Some other characteristics of successful campus recruiters are shown in Figure 5-6. However, not many recruiters are successful in getting the best talents during their campus visits. The recruit- ment cycle is getting shorter each year with top candidates often snapped up the September before they graduate. Also, wasted staff time to interview unqualified applicants, difficulties with assessing applicants who possess no relevant experience, and applicants who provide standardized answers to interview questions can all lead to the selection of wrong candidates. The National Association of Colleges and Employers (NACE; <http://www.nace.org/>) offers a number of suggestions on best practices for campus recruitment programs.56

educational institutions High schools, technical  schools, community  colleges, and universities  where applicants for job  positions are sought.

alumni associations Associations of alumni of  schools, colleges, or other  training facilities.

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Increasingly, several organizations find that summer internships significantly facilitate college and university recruitment efforts.

Summer internships are particularly popular in large companies such as Procter & Gamble <http:// www.pg.com>, Aetna Life Insurance <http://www.aetna.com/>, and Manitoba Lotteries Corporation <http://www.manitobalotteries.com/>; however, even smaller organizations find that hiring students to complete summer projects helps them to identify qualified, motivated, and informed recruits for permanent placement.

Students can be evaluated on the basis of their success in completing their special projects in summer months. These interns are also exposed to the organization so that they have a clear idea of what to expect from the firm when they later join as full-time employees. Such “informed” recruits are less likely to leave the firm soon after they are hired.

In recent years, cooperative education has become increasingly popular in Canada. Under the “co-op education” program, students alternate study and work terms. Their work terms expose them to the realities of the work world. This also provides an excellent opportunity for the employer to assess the potential employee’s ability and attitudes without incurring any significant costs.57 Universities that provide business administration programs aimed at senior- and middle-level managers (such as executive MBA programs) are also a valuable source for recruiting managers. Keeping tapped into the alumni associations of schools, colleges, and even of prior employees can also be an excellent source for hiring experienced technical and managerial staff.58

© Digital Vision/Getty Images.

employers are required to reasonably accommodate people with physical disabilities. What if the accommodation requires the installation of an elevator for $100,000 in a branch of a national bank?

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194 PART 3  Attracting Human Resources

Figure 5-6 A Profile of an Ideal Recruiter

•  Hires for specific positions rather than looking for future recruits without any clear idea about  job vacancies.

•  Possesses considerable knowledge about the firm and the job position.

•  Discusses strengths and limitations of the firm knowledgeably.

•  Never exaggerates or oversells the employer.

•  Studies the student’s résumé carefully before the interview and asks specific questions.

•  Validly assesses the student’s awareness of and interest in the job and the company.

•  Asks thought-provoking questions to measure the student’s knowledge on relevant job matters.

•  Expresses interest in the student as an individual.

•  Is upbeat about the company and his or her own role in the firm.

•  Displays good interpersonal skills and appears polite and sincere.

•  Follows up promptly with feedback and evaluation.

•  Is professional and ethical in demeanour.

SOURCE: Based partially on and expanded from John E. Steele, “A Profile of the Ideal Recruit,” Personnel Journal, February 1997,  pp. 58–59.

Professional Associations Recruiters find that professional associations also can be a source of job seekers. Many associa- tions conduct placement activities to help new and experienced professionals get jobs; some have publications that accept classified advertisements. Professionals who belong to the appropriate associations are considered more likely to remain informed of the latest developments in their field, and so this channel of recruitment may lead to higher-quality applicants. Another advantage of this source of applicants is that it helps recruiters zero in on specific specialties, particularly in hard-to-fill technical areas.

Labour Organizations When recruiters want people with trade skills, local labour organizations have rosters of those people who are looking for employment. The local union of plumbers, for example, keeps a list of plumbers who are seeking jobs. In the construction industry, many contractors often hire on a per- project basis. A union hiring hall is a convenient channel for attracting large numbers of pretrained recruits for new projects.

Canadian Forces Trained personnel leave the Canadian Forces <http://www.forces.ca/> every day. Some veterans, such as those who have been trained as mechanics, welders, or pilots, have hard-to-find skills. Human resource departments that need skills similar to those found in the military often find nearby military installations a valuable source of recruits.

Many of the technicians who maintain commercial jet airliners were first trained in the military, for example.

Temporary-Help Agencies Most large cities have temporary-help agencies that can respond quickly to an employer’s need for help. These agencies do not provide recruits. Instead, they are a source of supplemental workers. The temporary help actually work for the agency and are “on loan” to the requesting employer. For temporary jobs—during vacations, peak seasons, illnesses, and so on—these agencies can be a bet- ter alternative than recruiting new workers for short periods of employment. Besides handling the recruiting and bookkeeping tasks caused by new employees, these agencies can often provide clerical and secretarial talent on short notice—sometimes within less than a day. And when the

temporary-help agencies Agencies that provide  supplemental workers   for temporary vacancies  caused by employee leave,  sickness, etc.

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temporary shortage is over, there is no need to lay off surplus workers, because “temporaries” work for the agency, not the company.59 Occasionally, temporary help are recruited to become permanent employees.

With over 50 branches in Canada, Adecco <http://www.adecco.ca> employs several thousand temporary Associates each day.60 Adecco provides a pool of workers employed by the agency who can be loaned to local organizations for particular lengths of time. For instance, Adecco may lend one of its Associates to be the Senior Accountant at an Edmonton firm for a 10 month contract while its regular employee is on maternity leave, and may lend an Associate to a .Net Developer for a 3–6 month contract in Kitchener/Waterloo. When their contracts are over, the Associates return to Adecco awaiting the next firms needing contract employment in their fields.

Departing Employees An often overlooked source of recruits is among departing employees. These workers might gladly stay if they could rearrange their schedules or change the number of hours worked. Family responsi- bilities, health conditions, or other circumstances may lead a worker to quit when a transfer to a part- time job could retain valuable skills and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer.

An employee who leaves a company to pursue another job or venture and is later rehired is known as a “boomerang employee.” As competition for top talent has intensified, the number of boomerang employees has grown vastly. A company such as Ernst & Young LLP <http://www.ey.com/CA>, a Toronto-based accounting firm, actively cultivates a continuing connection with its past employees. Former employees have access to Web casts sponsored by E&Y that discuss developments in the accounting field. A newsletter is sent a couple of times a year and several social events are held for former staff. When people leave the firm, they are even given a password to access the website, which includes a directory of current and former employees, details of what former employees are doing, and a place to post résumés. Encouraging former employees to reconsider E&Y is definitely one of the objectives of such efforts, according to a director of E&Y.61

A buy-back occurs when an employee resigns to take another job and the original employer outbids the new job offer, or renegotiates the terms of the employee’s job contract. The following dialogue provides an example:

Employee: I quit. I got a new job as a system analyst at International Plastics. Manager: You’re too valuable for us just to let you walk out the door. How much is International offering? Employee: They’re offering me $10,000 a year more! Manager: Stay and I’ll recommend a $6,000 raise. Employee: No. I’m going. Manager: How about $7,500 and an extra week of vacation? Employee: Well, okay.

Even when the authority to enter into a bidding war exists, the manager may discover that other workers expect similar raises. Many HR practitioners are averse to this approach because of its ethical implications. Employees may also reject a buy-back attempt because of the ethical issue raised by not reporting to a job that has already been accepted.

Open House A relatively new technique of recruiting involves holding an open house. People in the adjacent community are invited to see the company facilities, have refreshments, and maybe view a film about the company. This method has proven successful for recruiting clerical workers when people with office skills are in tight supply.

Job Fairs Attending job fairs can pay rich dividends to recruiters who are looking for specialized talents or a number of personnel. Over years, budgetary constraints and the emergence of Internet recruit- ment have resulted in a decline in the popularity of job fairs. However, even today, there are examples of striking successes:

buy-back A method of convincing an  employee who is about to  resign to stay in the employ  of the organization,  typically by offering an  increased wage or salary.

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The job fair organized by the University of Waterloo <http://uwaterloo.ca/>, Wilfrid Laurier University <http://www.wlu.ca/>, Conestoga College <http://www.conestogac.on.ca/>, and University of Guelph <http://www.uoguelph.ca/> has tripled in size of attendees since it was first organized in 1994. In the recent past, the event attracted some 200 companies and 2,500 to 3,000 students, making it the largest job fair in Canada. Over 10,000 visitors were estimated to have attended the event.62

Some job fairs are scheduled one year in advance; hence, employers should plan well ahead. More recently, it has also become popular to give out “swag,” such as pens, notepads, water bottles, and key chains to visitors to promote the organization.63

Several other approaches, not very popular in the past, are becoming increasingly so. These are briefly discussed below.

APPlIcAnT TRAckIng SySTemS Advances in computer technology and information transmission have made it possible to use newer methods in recruiting employees. Several employers and placement agencies now rely on videos and DVDs to convey information about job positions to potential recruits. In high-tech professions, email is also sometimes used to reach recruits. Some organizations have installed applicant tracking systems (ATS) to identify ideal candidates for each vacant job position. Under this system, the recruiter keeps a large file (or is electronically connected to other master files) of potential candidates, which not only broadens the recruitment pool but also enables a good match between the job requirements and applicant skills.64

When a manager submits a requisition for an opening, the recruiter simply matches the key require- ments of the job with applicant characteristics. Thus, job requirements such as “needs significant selling experience” and “should know French” can immediately be matched with applicant charac- teristics. Such computerized systems not only lead to a better match between jobs and candidates, but also significantly reduce recruitment time and costs.65

conTIngenT/conTRAcT/leASed WoRkeRS As discussed in Chapter 3, a very large segment of our labour market is composed of contract workers. They include the self-employed, temporary or leased employees (those who work for an agency that has trained them and supplies these employees on a need basis), and independent contractors.66 Contingent workers are useful when the work is of limited duration, so the firm can avoid fixed salary commitments. Employee leasing is a term used to reflect the hiring of employees for longer periods of time. One reason for the popularity of leased workers is cost. The employer pays a flat fee for the employees (and is not responsible for benefits). Contract and self-employed workers, often, are compensated on the basis of task completion and hence need less supervision. Often, they also require lower training costs making this an attractive proposition.

More organizations employ contract workers now than ever before. In many organizations, the pro- portion of the staff who were on contract is 7 to 10 percent. Information systems personnel were most likely to be on contract. Administration, finance, engineering, legal, and technical positions also use contract staff to an extent.67

It should be noted that contract and leased employees may not always be committed to the goals and philosophy of the organization. Because the contingent employees are not part of an organization’s regular workforce, they do not benefit from the statutory protections offered by various provincial employment laws. The contracting firm is also not responsible for remitting Canada Pension Plan premiums or withholding income tax. However, determining whether an individual is an independent contractor or an employee is not as easy as it appears. Courts and arbitrators have been increasingly monitoring contractual agreements to ensure that the employer is not using the independent contractor relationship to avoid its statutory and common law obligations.68 Accordingly, it is important for the contracting parties to understand their rights and obligations.

PARTneRShIPS WITh SocIAl AgencIeS Faced with acute competition for valuable human resources, employers are forming partnerships with social agencies and community associations to help them with their recruiting.

applicant tracking systems (aTs) Databases of potential  candidates that enable   a good match between   job requirements and  applicant characteristics  and also enlarge the  recruitment pool.

employee leasing The practice of hiring  previously trained  employees for extended  periods of time, generally  longer time frames than  temporary workers.

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As a group, people with disabilities make up some 14.3 percent of the working age population and offer a major source for highly qualified employees for a variety of jobs. In a study involving 75 employers, a significant percentage of respondents were eager to hire qualified job seekers from this group, but were facing challenges in moving forward on this front. Many did not know how to communicate their hiring needs to people with disabilities. However, in Nova Scotia, Alberta, and B.C., employers have formed partnerships with a small number of organizations to convey their messages on a timely basis. For example, the Dartmouth Work Activity Society in Nova Scotia and EmployAbilities in Edmonton have been successful in placing people with disabilities in a number of organizations. Employers also benefit because such targeted efforts result in speedier recruiting.69

dIRecT mAIl SolIcITATIonS Drawing upon marketing strategies, some firms have attempted direct mail recruiting with some success. This enables an organization to target a specific segment of the population or a geographical area (using postal codes) or members of particular email list serves.

Some firms use door hangers, bargain shopper price lists, welcome wagons, recruitment emails, and point-of-sale messages as their recruiting media.70

Although recruiters may be able to inexpensively reach many potential prospects, a very small percentage may eventually be translated into applicants. With the volume of paper and email that people receive, many direct recruitment advertisements will be recycled or deleted as spam before they are even opened. The need for personal contact and follow-up by recruiters may limit the suc- cess of direct mail solicitation.71

RecRuITmenT AbRoAd With the growing labour shortages in Canada, many employers are looking abroad to secure skilled, hard-to-find employees.

Many high-tech and software companies today look at India as a major source of highly skilled programmers. Some of the software manufacturers have gone as far as locating their operations in Indian cities such as Bangalore and Hyderabad, while others have formed partnerships with Indian firms that periodically send their own staff to North America on a contract basis.

Recently, Canada has been recruiting a large number of skilled workers from other countries. Figure 5-7 shows the origins of 186,913 economic immigrants who entered the country. With an aging domestic workforce and a predicted shortage of technical and highly skilled employees, foreign nationals may become an important source of our workforce.

Figure 5-7 Origins of Canada’s Skilled Immigrants, 2010

30 000

25 000

20 000

15 000

10 000

5 000

0

Country of Origin

Africa and the Middle East

Asia and Pacific

South and Central America

United States

Europe and the

United Kingdom

SOURCE: Chart prepared by the authors based on the data reported in Citizenship and Immigration Canada, Immigration Overview: Permanent  residents by category and source area, 2010. <http://www.cic.gc.ca/english/resources/statistics/facts2010/permanent/08.asp>. Downloaded  March 12, 2012.

direct mail recruiting Recruitment targeted   at specified population  segments or regions   using a variety of means.

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198 PART 3  Attracting Human Resources

Foreign workers, especially those from developing countries, may be less expensive (at least initially). Relocation expenses may have to be paid in some instances, which can significantly add to the total cost. Firms hiring from abroad will need to train new recruits to adapt to local and organizational culture. The process of getting employment visas may also be time-consuming.

With all of the options available for sourcing potential applicants, how does a recruiter choose which method(s) to use? The choice of recruiting method may be assisted by answering the follow- ing six questions:72

1. How many recruits are needed? Some sources such as advertising will produce larger numbers of applicants whereas others are used when small numbers of recruits are needed (e.g., employment agencies).

2. What is the skill level required? If there is a high level of skill or experience required for the job, niche recruiting might be needed for instance by approaching a professional association or using a professional search firm.

3. What sources are available in that industry and geographic region? Not all sources are available in all areas (e.g., a rural area might not have a temporary-help agency).

4. What has worked in the past? Tracking over time how well certain sources have worked may guide future recruitment efforts. For example, if advertising on an Internet job board has produced more applicants who have turned out to be good performers in the past than a community newspaper, the recruiter may choose to advertise new postings on the same job board.

5. How much is the budget? The budget will determine the methods the recruiter can afford to use. For instance, transit advertising may be too expensive to use for filling a single position.

6. Are there labour agreements in place that specify recruitment options? Collective agreements in place at the organization may obligate the recruiter to rely on internal versus external recruiting, and to use specific recruitment sources.

Choosing Recruitment Sources

Many canadian high- tech companies are taking advantage of india’s low labour costs and highly skilled programmers, thus displacing local workers. Should there be a law against exporting jobs?

© FINDLAY KEMBER/A FP/Getty Images.

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In competitive recruitment environments, recruiters will often employ multiple methods and then track each method to see the number of applicants, the quality of applicants, the number who eventually accept and perform the job well, and even retention rates. Producing a good system for tracking recruitment success saves time and effort down the road and can have a substantial impact on the organization’s bottom line.

Evaluating the Recruitment Function

Like most other important functions, the recruiting activity in an organization should also be sub- jected to periodic evaluation. Sweeping changes continue to reshape the workplace; this means that today, more than ever, knowledgeable employees constitute a key component of a firm’s com- petitive strategy.73 Typically, the recruitment process is expensive. Unless efforts are made to identify and control these costs, the potential benefits from the activity may end up being lower than the costs. Like all other corporate HR functions, recruiters will not be able to justify their own efforts unless these contribute to “bottom line” financial performance.74 Recruitment costs can run as high as 50 percent of the yearly salary for professionals and managers; what is even more important, recruitment can reflect a firm’s overall human resource strategy.75 This means that the effective- ness of the recruiting function should be evaluated on an ongoing basis. Several indices have been suggested in the past. The more popular ones are discussed below.

Cost per Hire The dollar cost per person recruited is one possible measure of the effectiveness of the recruiting function. The costs should include not only the direct costs (e.g., recruiters’ salaries, costs of adver- tisement, consultants’ fees, and so on), but also apportioned costs and overheads (e.g., time of operating personnel, stationery, rent). However, often cost data are either not collected at all or are not interpreted so as to facilitate the evaluation of recruiting. Cost data collected from previous recruiting activities could serve as useful benchmarks for comparison.

Quality of Hires and Cost A major criticism of using a simple dollar cost per hire as a measure of effectiveness is that it ignores the quality of the people hired. The performance, absenteeism, and motivation levels of employees recruited from one source (or using one media) may differ from those of other sources.

Recruits selected through advertisements in professional journals and professional conventions may have qualitatively superior performance compared to those who were selected through campus recruitment efforts.

The number and quality of résumés and job applications received gives an indication of the overall effectiveness of a recruitment method or source.

Offers–Applicants Ratio A somewhat better index is the ratio between the number of job offers extended and the total number of applicants calculated for each recruitment method or media. Even if a recruiting source brings in better-quality résumés, this may not be translated finally to job offers; an offers–applicants ratio gives a better picture of the overall quality of the applicant pool. The ratio of number of offers accepted to total number of job offers extended to applicants gives an indication of the overall effectiveness of the recruiting. Caution is, however, in order. The acceptance of a job offer is dependent on a number of extraneous variables, including the labour market situation, the compensation package offered by the organization and its competitors, and the firm’s location. However, when used judiciously, this measure can point up weaknesses such as lack of professionalism and long delays in the recruiting process that could encourage a prospective employee to go elsewhere. This is particularly true for good candidates, who may receive multiple job offers from employers.

1, 2, & 3

LO5

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200 PART 3  Attracting Human Resources

Time Lapsed per Hire The number of days, weeks, or months taken to fill a position provides yet another measure of the effectiveness of the recruitment system. Clearly, a firm that takes a week to fill a position when the industry average is 10 days or two weeks is, in comparison, more efficient. Once again, several external and uncontrollable factors (including the nature of the job, labour market conditions, and location) affect the time for recruiting; consequently, this index should be used in conjunction with other information.

Figure 5-9 Popular Measures Used for Evaluating Effectiveness of

Recruitment Function

1.  Total number of applications received

2.  Time required to get applications

3.  Time elapsed before filling positions

4.  Costs per hire

5.  Ratio of offers extended to number of applicants

6.  Ratio of offers accepted to number of offers extended

7.  Ratio of number of qualified applicants to total number of applicants

8.  Performance rating of hires

9.  Turnover of hires

Figure 5-9 shows some of the more popular measures used to evaluate the recruiting function. Naturally, many of these measures are influenced by a firm’s selection, training, and compensation systems. Indeed, an evaluation system that explicitly considers various factors related to the selec- tion process and that contains job performance information (including tenure and value of job to the organization) may be very useful in several organizational settings. The next chapter will look at the various steps involved in the selection of personnel from the pool of applicants identified during recruiting.

Recruitment is the process of finding and attracting capable  applicants for employment, and then once the top candidates  have been selected, recruiters seek to convince applicants to  say “yes” to the job. Before recruiters can solicit applicants,  they should be aware of organizational policies, human resource  plans, employment equity plans, recruiter habits, environmental  conditions, and the requirements of the job.

At the recruiter’s disposal are a variety of methods to find  and  attract  job  seekers.  Employer  sources  include  walk-ins,  write-ins, employee referrals, the Internet, and direct solicita- tions  through  ads  and  other  forms  of  advertisement.  Appli- cants can be found through referrals from Human Resources  and  Skills  Development  Canada  offices,  private  placement  agencies,  or  search  firms.  Of  course,  recruits  can  be  found  through a variety of institutions, such as educational, profes- sional, and labour organizations; the military; and government

training programs. Some firms have reported success in con- verting temporary employees into permanent ones, on a full- or  part-time basis, and in inducing departing employees to remain.  An open house may bring people into the facility and prompt  them to submit applications.

The choice of sources used will depend on the quality and  quantity of recruits needed, available sources, past successes  with the source, the recruiting budget, and labour agreements.  Over time, recruiters can track the success of each of their recruit- ment sources to guide them in future recruitment processes.

Applicants formally apply to organizations by submitting  completed application forms or résumés. Application forms seek  a variety of answers from recruits, including personal, employ- ment, educational, and work history information. Questions may  be asked about memberships, awards, and personal interests.  References are usually solicited on the application form as well.

Summary

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  CHAPTER 5  Recruitment  201

Like all other human resource functions, the recruitment  activity also needs to be evaluated for its degree of effectiveness  and efficiency. This is to ensure that the recruitment function  achieves both organizational and individual objectives. A number  of indices for evaluating the recruitment activity were suggested  in this chapter. Bear in mind that all of these indices are affected

How Do You Recruit Employers?

Just as organizations have to recruit potential employees, most individuals also need to scan their environments for potential  employers.  Take  this  simple  self-test  to  see  how  you  go  about  collecting  information  about  your  future  employers.  Answer  all  questions on a five-point scale of strongly agree (SA), agree (A), undecided (U), disagree (D) and strongly disagree (SD).

statement strongly agree

agree Undecided Disagree strongly Disagree

1.  I have a clear idea of the type of job I want and the  general competencies it requires.

2.  Looking at newspaper job ads is a waste of time; most  jobs are filled even before they are advertised anyway.

3.  I frequently look at job ads in newspapers circulating  in the region I am interested in.

4.  I rarely (if ever) look at the annual reports of the firms  where I would like to work in the future.

5.  I tell all my friends and acquaintances who work in  the industry or profession that I am looking for a   job in that field.

6.  I do not have a clear idea of the region or the industry  where I want to work.

7.  I regularly surf the Internet to find out more about  possible job openings in the industry or occupation   I am interested in.

8.  I don’t watch TV news or read newspapers.

9.  I keep in touch with my school and college friends,  and network with them at social or professional events.

10.  In general, I never talk to others about their experiences  in job hunting.

by a firm’s selection, training, compensation, and general human  resource–related policies. With a pool of recruits and the infor- mation contained in completed application forms, the human  resource department is now ready to assist line managers in  the process of selecting new employees.

ads alumni associations applicant tracking systems (ATS) blind ads buy-back competitive advantage costs direct mail recruiting diversity management

educational institutions employee leasing employee referrals human resource plan Human Resources and Skills

Development Canada (HRSDC) inducements Internet recruiting job application form

organizational policies professional search firms recruiter habits recruitment résumé selection temporary-help agencies walk-ins/write-ins

Terms for Review

Self-Assessment Exercise

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202 PART 3  Attracting Human Resources

sCORING

For the odd-numbered statements, give yourself a score of 5,  4, 3, 2, and 1 for SA, A, U, D, and SD, respectively. For the  even-numbered statements, give a score of 1, 2, 3, 4, and 5  for SA, A, U, D, and SD, respectively. Add up all scores.

Your total score can lie anywhere from 10 to 50 in this exer- cise. If your score is 40 or above, you are doing a good job of  keeping yourself abreast of the events in the job market. If you  got a lower score, you may want to do some of the things indi- cated above. Getting the right job takes a lot of effort and time,  and you have to begin efforts in that direction today!

1. What background information should a recruiter have before  beginning to recruit job seekers?

2. Give three examples of how organizational policies affect  the  recruitment  process.  Explain  how  these  influence  a  recruiter’s actions.

3. Under what circumstances would a blind ad be a useful  recruiting technique?

4. “If a job application form omits important questions, needed  information about recruits will not be available. But if a need- less question is asked, the information can be ignored by  the recruiter without any other complications.” Do you agree  or disagree with this statement? Why?

5. Suppose  your  employer  asks  you,  the  human  resource  manager,  to  justify  the  relatively  large  recruiting  budget  that you have been historically assigned. What arguments  would you provide? What indices or measures will you pro- vide to show that your recruitment is cost effective?

Review and Discussion Questions

1. After  months  of  insufficient  recognition  (and  two  years  without a raise), you accept an offer from another firm that  involves  a  $2,000-a-year  raise.  When  you  tell  your  boss  that you are resigning, you are told how crucial you are to  the  business  and  are  offered  a  raise  of  $2,500  per  year.  What do you do? Why? What problems might exist if you  accept the buy-back?

2. Suppose you are a manager who has just accepted the  resignation  of  a  crucial  employee.  After  you  send  your  request for a replacement to the human resource depart- ment, how could you help the recruiter do a more effec- tive job?

3. If at your company the regular university recruiter became  ill and you were assigned to recruit at six universities in two  weeks, what information would you need before leaving on  the trip?

4. In  small  businesses,  managers  usually  handle  their  own  recruiting.  What  methods  would  you  use  in  the  following  situations? Why?

(a)  The regular janitor is going on vacation for three weeks.

(b) Your  office  assistant  who  manages  all  appointments  and handles all filing in your office has the flu and won’t  be in the office for two days.

(c)  Two more salespeople are needed: one for local cus- tomers and one to open a sales office in Victoria, British  Columbia.

(d) Your only chemist is retiring and must be replaced with  a highly skilled person.

(e)  Your  only  computer  programmer/analyst  plans  to  go  on a three-week leave to India to visit his sick mother  next week. If his mother’s health turns for the worse,  he may be delayed by another week or two.

5. You  are  the  human  resource  manager  in  a  large  auto- assembly  unit  employing  2,000  semiskilled  and  skilled  employees. Each year, you recruit dozens of full-time and  part-time workers. Recently, the vice-president (Finance)  pointed out that recruitment costs in your firm are increasing  steadily. She has proposed a freeze in the recruitment bud- get. What kind of information will you provide in an effort  to change her mind on the matter?

Critical Thinking Questions

Darrow Thomas worked as a professional placement specialist  for  L.A.  and  D.  Inc.,  an  executive  search  firm.  For  the  last  three months, Darrow had not been very successful in finding  high-level  executives  to  fill  the  openings  of  L.A.  and  D.’s  cli-

ents. Not only did his poor record affect his commissions, but  the office manager at L.A. and D. was not very pleased with  Darrow’s  performance.  Since  Darrow  desperately  needed  to

Ethics Question

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  CHAPTER 5  Recruitment  203

make a placement, he resolved that he would do everything  he could to fill the new opening he had received that morning.

The opening was for a director of research and development  at  a  major  food  processor.  Darrow  began  by  unsuccessfully  reviewing  the  in-house  telephone  directories  of  most  of  the  large companies in this industry. Finally, he stumbled across  the  directory  of  a  small  food  processor  in  the  west.  In  the  directory he found a listing for Suzanne Derby, assistant direc- tor of product development. He called her, and the following  conversation took place:

suzanne: Hello. P.D. Department, Suzanne Derby speaking.

Darrow: Hello. My name is Darrow Thomas, and I am with L.A.  and  D.  One  of  my  clients  has  an  opening  for  a  director  of  research and development at a well-known food processor. In  discussions with people in the industry, your name was rec- ommended as a likely candidate. I was …

suzanne: Who recommended that you call me?

Darrow: I’m awfully sorry, but we treat references and can- didates with the utmost confidentiality. I cannot reveal that  name. But rest assured, he thought you were ready for a  more challenging job.

suzanne: What company is it? What does the job involve?

Darrow:  Again,  confidentiality  requires  that  the  company  name go unmentioned for now. Before we go any further,  would  you  mind  answering  a  few  questions?  Once  I  feel  confident you are the right candidate, I can reveal my client.

suzanne: Well, okay.

Darrow: Good. How many people do you supervise?

suzanne: Three professionals, seven technicians, and two  clerks.

Darrow: Approximately how large a budget are you responsi- ble for?

suzanne: Oh, it’s about half a million dollars a year.

Darrow: What degree do you hold, and how many years have  you been assistant director?

suzanne:  My  undergraduate  degree  and  Master’s  are  in  nutrition science. After I graduated in 1985, I came to work  here as an applications researcher. In 1993, I was promoted  to chief applications researcher. In 1996, I was appointed  assistant director of product development.

Darrow: Good career progress, two degrees, and managerial  experience. Your background sounds great! This is a little  personal, but would you tell me your salary?

suzanne: I make $79,500 a year.

Darrow: Oh, that is disappointing. The opening I have to fill  is for $96,000. That would be such a substantial jump that  my client would probably assume your past experience and  responsibility are too limited to be considered.

suzanne: What do you mean?

Darrow: Well, the ideal candidate would be making about  $90,000 a year. That figure would indicate a higher level of  responsibility than your lower salary. We could get around  that problem.

suzanne: How?

Darrow: On the data sheet I have filled out I could put down  that  you  are  making,  oh,  say  $88,000.  That  sure  would  increase my client’s interest. Besides, then they would know  a salary of $96,000 was needed to attract you.

suzanne: Wow! But when they checked on my salary history,  they’d know that $88,000 was an inflated figure.

Darrow: No, they wouldn’t. They wouldn’t check. And even  if they did, companies never reveal the salary information  of past employees. Besides, my client is anxious to fill the  job. I’ll tell you what, let me send them the data sheet; I’m  sure they’ll be interested. Then we can talk about more of  this. Okay?

suzanne: Well, if you think it would mean a raise to $96,000,  and they really need someone with my background, I guess  I’d be interested.

1. Although “headhunters” do not necessarily engage in the  practice  of  “inflating”  an  applicant’s  wage,  it  does  happen  occasionally. What would you do in Suzanne’s place? Would  you allow your name to be used?

2. Since most “headhunters” receive a commission that is a  percentage  of  the  successful  applicant’s  starting  salary,  what safeguards would you suggest to prevent “headhunters”  from inflating salaries?

3. If Suzanne goes along with Darrow’s inflated salary figure  and she is hired, what problems may she face?

Choose  any  two  Internet  recruiting  sites.  Select  advertise- ments for two different job positions in each site (i.e., four in  all). Compare their features and strengths. Do you expect dif- ferent types of recruits to respond to these advertisements and

sites? Why? Which of the four advertisements that you chose  is the best? Which is the worst? Why? What suggestions do you  have  to  enhance  the  effectiveness  of  poor  ads?  Report  your  findings to the class.

Web Research Exercise

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204 PART 3  Attracting Human Resources

Ontario Electronics Expansion

• Twelve engineers. Three had to be senior engineers with  experience in the latest computer technology and design.  Four had to be senior engineers with experience in pho- tographic  etching  reduction.  Five  junior  engineers  were  also  requested  in  the  belief  that  they  could  handle  the  routine computations for the senior engineers.

• An office manager, ten keyboard operators, and four secre- taries to transcribe the engineering notebooks and prepare  the patent applications.

Swensen  wanted  these  29  people  recruited  as  promptly  as  possible.

1. Assuming you are given the responsibility of recruiting these  needed employees, what channels would you use to find  and attract each type of recruit sought?

2. What other actions should the human resource department  take now that there is the possibility of very rapid expansion?

Ontario Electronics developed a revolutionary method of storing  data  electronically.  The  head  of  research  and  development,  Guy Swensen, estimated that Ontario Electronics could become  a supplier to every computer manufacturer in the world. The  future  success  of  the  company  seemed  to  hang  on  securing  the broadest possible patents to cover the still-secret process.

The human resource director, Carol Kane, recommended that  Swensen become a project leader in charge of developing and  filing  the  necessary  patent  information.  Swensen  and  Kane  developed  a  list  of  specialists  who  would  be  needed  to  rush  the  patent  applications  through  the  final  stages  of  develop- ment and the patent application process. Most of the needed  skills were found among Ontario Electronics’ present employees.  However,  after  a  preliminary  review  of  skills  inventories  and  staffing levels, a list of priority recruits was developed. It required  the following:

• An experienced patent lawyer with a strong background  in electronics technology.

• A patent lawyer who was familiar with the ins and outs of  the patent process and the patent office in Hull, Quebec.

Incident 5-1

A Case Study in Recruitment*

But what option did the firm have now? The competition from  China, Korea, Indonesia, and Malaysia was devastating. Just in  the last six months, the firm had lost two major retail suppliers  in the United States, which had pointed out that Maple Leaf’s  shoes were too high-priced for its customers. Meanwhile, there  were industry rumours that a major Indian footwear firm is plan- ning to enter the North American market. When that material- izes, Maple Leaf Shoes will likely face even greater competition  at  home.  India  has  had  a  long  history  of  producing  quality  footwear and can also take advantage of its cheap labour and  emerging high-tech industries in producing high fashion, cheap  dress shoes, and high-endurance “cross-trainer” footwear.

The recent warning from the local Human Rights Commission  (HRC)  did  not  help  matters  either.  Apparently  two  female  employees, who were denied promotion in the past, had com-

Robert Clark was a worried man.

He  looked  at  the  letter  from  Sam  Polanyi,  president  of  the  Leather Workers’ Union’s local unit in Maple Leaf Shoes again.  Polanyi had warned him of “dire consequences” if the firm did  not proceed slowly on automation in its local plant. The union  had urged its members to adopt a “work slow” tactic begin- ning next month. Worried by the decline and demise of giant  organizations  such  as  General  Motors,  Chrysler,  and  Nortel,  Maple  Leaf’s  workforce  was  strongly  against  any  impending  automation that can further reduce the workforce number at a  time when the unemployment rates in various parts of Canada  were  at  historical  highs.  In  three  months’  time,  the  contract  negotiations with the same union had to be concluded. Auto- mation  and  the  newly  proposed  workweek  would  surely  be  important bargaining items.

CasE STUDY Maple Leaf Shoes Ltd.

*Case prepared by Professor Hari Das of Department of Management, Saint Mary’s University, Halifax. All rights reserved by the author Das©2002.  Revised 2009.

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  CHAPTER 5  Recruitment  205

DIsCUssION QUEsTIONs

1. What is your evaluation of the recruitment strategy used  by Maple Leaf Shoes?

2. Evaluate the recruitment advertisement.

3. Design a new recruitment advertisement for the position  of the human resource manager.

4. Design an application form to be used for hiring a human  resource manager in the firm.

plained to the Commission. They had argued that the promotion  criteria employed by the firm for supervisory positions worked  against women. When the HRC looked at the complaint, it did  not consider their cases to be strong enough to proceed further.  However, it had warned the company about the concentration  of women in low-paid jobs and lack of clear job specifications  for supervisory positions. The Commission had urged immediate  remedial  actions,  including  an  in-depth  look  at  supervisory  competencies and job specifications. The firm was expected  to come out with a remedial plan in the next 12 months.

To top it all, neither Pat Lim nor Jane Reynolds was there in  Wilmington  to  help  him.  John  McAllister,  the  firm’s  previous  human resource manager, had resigned to take up a similar  position in Western Canada. Maple Leaf Shoes had not hired  a new manager in his place. Until now, Pat Lim, General Manager  (Marketing) was overall in charge of the human resource func- tion,  although  most  of  the  routine  decisions  were  made  by  Jane Reynolds, who in the past had served as special assis- tant to John McAllister. But recently Reynolds was admitted to  a local hospital for a surgical procedure. Clark has now been  informed that Reynolds will not be returning for some time.

Given all the pressures, Clark decided to immediately fill the  human resource manager’s position. Clark retrieved the job ad  the company had used when hiring John McAllister. He made  some  minor  changes  to  it  and  decided  to  place  it  in  local  newspapers as soon as possible. A copy of the final advertise- ment that Clark prepared is shown in Exhibit 1.

It was after making arrangements for the newspaper ad that  Clark remembered his childhood friend, Joy Flemming, who ran  a temporary help agency in Toronto. Clark and Flemming were  schoolmates and had kept in touch with each other over the  years. Flemming had built up a successful agency that supplied  clerical and office staff on a temporary basis. While Clark knew  that Flemming’s agency primarily supplied clerical workers (and  some technical/supervisory personnel), he was convinced that  Flemming’s years of experience in the local industry would have  exposed her to successful human resource professionals else- where. He decided to hire Joy to also conduct a search.

Joy was certain to ask him what kind of a person he was looking  for. In Clark’s mind, he needed a tough individual—someone  like John McAllister who could stand up to the unions and take  charge.  Clark  personally  disliked  handling  employee-related  matters; he would like to hire someone who would consult him  on major issues but who was capable of making decisions on his  or her own. There was no formal job description for the HR man- ager’s position in Maple Leaf Shoes, although a consultant was  currently working on writing a detailed job description. However,  Clark did not value such a document. He was a great believer  that these documents meant little except adding to the paper- work. A good person was what he needed now—a well-rounded,  tough, experienced person like John who would run a tight ship.

Oh, how much he missed John, Clark reflected sadly.

6Exhibit 1

MaPLE LEaf sHOEs LIMITED requires

a HUMaN REsOURCE MaNaGER

Maple Leaf Shoes Limited, the maker of Fluffy Puppy, Cariboo, Madonna, and other brands of high-quality footwear, which currently employs over 650 persons, requires a Human Resource Manager for its head office in Wilmington, Ontario. We are a fast-growing company with plans to expand operations to several provinces and countries in the near future. Currently, we export to the United States and a number of European countries.

As the Human Resource Manager, you will be responsible for overseeing all human resource functions for this large, expanding organization. You will be directly reporting to the President and be part of the top management team.

We are looking for an aggressive, results-oriented individual who can meet the organization’s challenges and facilitate our growth plans in the 21st century. This is a senior position and the typical recruit for this position will have at least 15 years’ experience in a senior management capacity. The salary and benefits will be commensurate with qualifications and experience.

We are an Equal Employment Opportunity Employer and welcome applications from qualified women and minority candidates.

Apply in confidence to:

Office of the President Maple Leaf Shoes Limited 1, Crown Royal Lane, Maple Leaf Town Wilmington, Ontario.

We help you put your best foot forward!

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CasE STUDY

206 PART 3  Attracting Human Resources

Canadian Pacific and International Bank

While CPIB had relatively minor investments in the risky port- folios  that  fatally  affected  several  American  and  European  banks, even CPIB’s mutual funds division faced a significant  and adverse decline in demand, necessitating reconfiguration  of its workforce. This meant that the attrition of qualified persons  was high, often reaching upwards of 20 percent for many firms.  Hiring  qualified  analysts  and  investment  managers  was  also  fraught with considerable difficulties since the wrong hire could  cause  considerable  damage  to  the  company’s  reputation  and  customers’  trust  at  a  time  when  investment  confidence  was  already at a low.

The average age of investment analysts and managers in OFP  was in the low to mid-forties. Hardly anyone had retired in that  job category in the past year. In the sales category, the average  age was slightly higher. One person had retired in the last year.

The  figures  in  Table  1  reflect  historical  costs.  The  following  recruitment methods are found to be more expensive currently,  requiring upward adjustment.

Campus recruiting:  increase by 15%

Advertisements:  increase by 10%

Internet recruiting:  increase by 5%

While  common  selection  criteria  were  employed  in  hiring  employees irrespective of the recruitment methods they came  through,  OFP’s  experience  was  that  recruits  from  different  sources required different levels of on-the-job training before  they could be placed into job positions. The average cost of a  day’s  training  was  approximately  $700,  which  accounted  for  all costs including time lost. The firm’s records show the fol- lowing training statistics for various recruits:

Unsolicited applicants:  3 days

Recruits from HRSDC, Internet, advertisements:  2 days

Campus recruits, applicants referred by     current employees:  1 day

DIsCUssION QUEsTIONs

1. Make your recommendation on the best recruitment  method(s) for each type of workforce.

2. What other conclusions can you arrive at when looking at  the figures provided in the case?

Canadian Pacific and International Bank (CPIB) had achieved  significant expansion in its operations in the recent past and is  currently a major global financial institution (see end of Chapter 1  for more details on the bank). One key component of its growth  strategy was the acquisition of other financial institutions. While  in most instances CPIB has been able to achieve a seamless  merger of operations, there were times when the systems and  culture  of  the  newly  acquired  organization  were  at  variance  with CPIB’s. This had necessitated routine internal audits of all  major systems in newly acquired institutions.

Mary Keddy, vice-president of human resources, is currently  looking through the results of an audit of the recruitment func- tion in Ontario Financial Planners (OFP), an investment firm  CPIB had acquired in the past. Table 1 shows a summary of  relevant data for two major groups of employees: investment  managers and analysts, and sales staff for the last two years.  The other categories of staff (such as administrative and clerical)  remained more or less stable across time. Several other activ- ities in the firm were also contracted out to agencies or carried  out by part-time employees. Other details of the workforce are  given below.

OFP, which was begun by two brothers as a family business  unit, had over time grown rapidly because of its professional  approach to conducting business and friendly client relations.  To  ensure  maximum  predictability  in  employee  behaviours,  historically  the  firm  had  focused  on  employing  family  mem- bers,  friends,  and  others  referred  by  them.  Over  a  period,  however, this practice was replaced by several other recruiting  methods. The firm also attempted to have representation from  minority groups and women in all its job categories, although  this has not always been successful. Financial planning industry  has, by and far, always been a white-male-dominated profes- sion—over 75 percent of the investment and financial planners  in the industry were white males. The senior and middle-level  managers  were  also  mostly  white  males,  Asian  Canadians  being one of the more successful minorities to reach the posi- tion of portfolio or fund managers. The only exception to this  general trend was commission-based sales jobs where women  were  making  fast  inroads,  often  reaching  nearly  one  half  of  total workforce in that category.

Getting well-qualified and competent financial planners was a  challenging task since demand for proven analysts and man- agers was great until the stock market crash of 2008. During  the  global  financial  crash,  banks  were  particularly  affected.

Evaluating Recruitment Function*

*Case prepared by Professor Hari Das of Saint Mary’s University, Halifax. All rights retained by the author. Das © 2003. Revised 2009.

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  CHAPTER 5  Recruitment  207

6Table 1 Recruiting Method Used During the Past Year

RECRUITING METHOD UsED DURING THE PasT YEaR

Investment Managers and analysts sales staff

Gender: Males 85% 60% females 15% 40%

age: Less than 30 years 60% 30% 30–45 years 20% 45% 46–65 years 20% 25%

Education: High school or less 10% 60% University degree or higher 90% 40%

RECRUITING METHOD UsED DURING THE PasT TWO YEaRs

Unsolicited applications HRsDC

Campus Recruitment

advertise- ments

Internet Recruitment

Referrals from

Employees

Total Number of applications Investment managers 50 70 60 200 250 30 sales staff 40 60 40 300 100 10

Number of Candidates Who Were Offered jobs Investment managers 1 7 9 12 13 9 sales staff 2 3 2 30 10 2

Number of Candidates Who accepted job Offers Investment managers 1 3 6 6 10 6 sales staff 1 2 2 21 4 1

Cost per Recruit in Dollars (includes all overheads) Investment managers 45 36 66 60 16 26 sales staff 42 30 63 48 17 23

Number of New Hires Who Left the firm Within Two Years Investment managers 0 1 1 3 6 1 sales staff 1 1 0 2 1 1

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