Miss Jyothi G.

H PG Dept of Management Studies& Research Centre

Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Recruitment & Selection

Unit:1
Workforce Planning and Recruitment Analytics

What is Workforce Planning?

Workforce planning, also called strategic workforce planning, is about making sure that the right
person is in the right job at the right moment. This means that there are not too many people
available (overstaffing) or too few (understaffing).

Workforce planning is about predicting future labour market needs. It requires an understanding
of the make-up of the current workforce, an investigation into future service needs and an
analysis of the type and size of workforce required to meet them.

Workforce planning thus solves staffing problems for today and for the future. According to
Evers (2014), strategic workforce planning is becoming increasingly important for a number of
reasons.

 Demographic changes: An aging workforce poses a number of different problems, including

a lack of in-demand skills, reskilling challenges, and mass-retirement.
 Cost reduction: Increasing global competition forces companies to work smarter. At the
same time, the aging workforce is a more expensive one – but not necessarily a more
productive one.
 Talent management: Talented employees form a competitive advantage for the company.
Having people with the right drive and lining up a talent pipeline to replace the aging group of
senior management and executives in the company is essential.
 Flexibility: Today’s competitive landscape requires faster and more disruptive innovation.
The revenue produced by products that are less than a few years old has increased
tremendously in the last few decades. At the same time, the tactics that got us here won’t get
us where we need to go next.
When it comes to workforce planning, there are four criteria.
As explored in our HR Metrics & Dashboarding Certificate Program, the goal of workforce
planning is to have a workforce with the right size, shape, cost, and agility.

 The goal of size revolves around the number of people and job roles. A workforce that is too
large is overstaffed and works inefficiently while a workforce that is too small, means that the
company isn’t producing what it potentially could produce. This can be indicated by an
excess of vacancies.
 The goal of shape revolves around having the required competencies needed today and
tomorrow (in the form of succession planning).
 The goal of cost revolves around reaching an optimum labor cost. Too much will bankrupt
the company but too little will result in work not getting done.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 The goal of agility is about having a workforce that is lean and flexible and can adapt to
changing market demands.
 Strategic workforce planning therefore revolves around ensuring that the company’s
workforce has the right size, shape, cost, and agility for the future.
The workforce planning process
So how does workforce planning work? There are multiple approaches to workforce planning
but the process is usually similar. However, before we go into the process, let’s start off with a
number of basic guiding principles.

Basic principles of workforce planning

Workforce planning is the dynamic between what we have today and what we need tomorrow.
Our current (employee) formation is therefore relevant when we make decisions about
tomorrow’s ideal formation.

Here are three basic principles of strategic workforce planning

1. Strategic workforce planning is in line with the organization’s strategy. The organizational
strategy is a long-term plan that dictates what the company strives to achieve in the next five
to ten years. This is an excellent guideline for planning your workforce
2. Good workforce planning follows the 80/20 Pareto principle. 80% of the effect is achieved by
only 20% of the work. When you engage in strategic workforce planning, focus on the
organization’s primary functions (also called: critical roles). These are the ones that contribute
most to the organizational results. Overhead and management are of secondary concern.
3. What’s in the name: workforce planning is strategic. It focuses on tactical and strategic
decisions and therefore has a long-term focus.
The workforce planning process
Workforce planning is about predicting future labour market needs. It requires an understanding
of the make-up of the current workforce, an investigation into future service needs and an
analysis of the type and size of workforce required to meet them.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

The Workforce Planning Cycle has similarities to the formal decision making framework
covered in Topic 1. Each cycle provides the firm with knowledge and additional experience of
the process. Manpower planning is a continuous process as the external environment is dynamic
and the underlying conditions of demand and supply alter constantly.

A number of business tools can be used to assist the process such as Ansoff's matrix, a decision
making framework and SWOT, PEST and Gap analysis. The decision making is strategic and is
likely to involve several functions or departments in addition to the HRM department. For
example, the finance department will be required to ensure suitable funding is available for
recruitment and training (and redundancy packages). Operations will be involved as the
processes may be automated or outsourced.

Workforce planning is one of the core activities of human resource management. It is carried out
on both a short and long term basis. It involves several processes:

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 The firm's strategic plan is the starting point for the workforce plan. The firm will need
to put together a workforce which provides departments with the resources to meet their
short and long term objectives and to provide the firm with competitive advantage. Goals
included in corporate plans could include growth and increased market share. This would
have significant implications for employee requirements.
 Judgment on future workforce requirements. The firm needs to forecast the number of
employees required. The skills needed across the organisation, and in which parts of the
organisation particular employees are needed.
 Assessment of the current workforce. The firm needs to identify how many people they
currently employ and their skills, strengths and weaknesses, age, length of service and
possible retirement. The firm then needs to impose historical data to identify trends such
as labour turnover and average length of service to establish to what extent the current
workforce will meet future requirements if it evolves in a predictable manner.

The firm's demand for additional labour will be affected by other considerations:

 The flexibility of the existing workforce in terms of the range of skills they possess - can
employees be redeployed to other departments or functions?
 The extent to which the existing workforce can be trained or retrained to provide the
skills required in the future.
 The demand for labour is a 'derived' from the demand for a firm's good and services.
Changes in demand patterns will influence the demand for labour.
 Changes in the external environment, such as recession, increased competition,
changing tastes and fashions.
 Employee loyalty affecting labour turning.

"There are three types of workforce planning: operational, tactical and strategic. While most
organisations doing it are highly engaged in short-term operational workforce planning -
headcount forecasting and staffing requisitions - relatively few are highly engaged in long-
term strategic workforce planning, which includes actions such as business planning, needs
assessments and scenario creation."

Once estimates for future workforce requirements and skill levels are agreed, the firm will have
to create plans to meet the requirements. In practice this is likely to focus on how to fill the
workforce. This will involve consideration of:

 The availability of a certain type of labor within the market.

 What rivals might want from the pool of labor available.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 Additional costs, such as housing which might influence the ability to attract employees.
 Trends within the population, such as an increase in participation rates of women in the
workforce, especially on a full-time basis.
 Employment and other related laws.
 Government policies.
 Future unemployment trends reflecting levels of immobility of labor.

Other factors will apply if the firm is seeking a contracting workforce in all, or some, areas. This
will require an investigation of:

 'Natural wastage' opportunities, such as voluntary redundancy or early retirement.

 Involuntary redundancies.
 De-layering and the creation of flatter management structures
 More flexible working conditions, such as job-sharing homeworking
 Greater emphasis on a small core of permanent workers and more peripheral self-
employed or short-term contract employees.

It is NOT always possible to find the right people in the correct numbers and so an employer
might consider:

1. Outsourcing some output to sub-contractors

2. Hiring externally recruited labour
3. Encouraging recruitment by offering training, sponsorship or special development
programmes
4. Retraining current employees
5. Adopting more mechanisation
6. Paying more to those currently working at the company
7. Spreading the work around the current workforce

What are recruitment analytics?

Real-time information derived from data and predictive analysis is the definition of recruitment
analytics.
Data and reporting tools empower hiring teams with key insights and hiring reports that drive
recruiting strategies. By using software to identify and compile a list of talent, it’s easy to make
good hiring decisions. And by analyzing what has — and hasn’t — worked in the past, hiring
professionals can adjust strategies as needed. In addition, recruitment reporting reveals the
quality and cost of hiring, as well as the time it took to fill the position.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

What are the key metrics should track for recruitment data?
 Source of candidates – which hiring platforms are the candidates coming from
 Number of applicants – how many qualified applicants are there for each job
 Time to hire – how long is the hiring process
 Cost per hire – what are the internal and external costs associated with hiring
 Quality of hire – how does this hire stack up to previous hires
 Retention – are you retaining your employees
 Overall velocity of hires – what percentage of your jobs are filled on time
 Applicant to hire ratio – how many interviews and applicants are required to fill the role

What are the recruitment data and their roots?

Well, data are the figures and statistics gathered from recruitment activities. These activities
include candidate sourcing techniques, channels to find candidates, onboarding practices, etc. It
can mainly be obtained from sources like,
 Applicant Tracking Systems (ATS)
 Human Resource Information Systems (HRIS)
 Satisfaction survey forms etc.
 Customer Relationship Management Software (CRMS)
 Advertising websites to study click-through and conversion rates.

Job vs Work

―Work‖ and ―job‖ are two words that have similar yet different meanings. Although they are
used interchangeably, their meanings may differ according to how they are used.

The use of the word ―job‖ to describe a piece of work was first recorded in the 1550s. It comes
from the Middle English word ―gobben‖ which means ―lump or mass.‖ It is a noun that is used
to refer to work that an individual does for a living.

―Job‖ is defined as ―an activity that an individual performs in exchange for a specific fee or
payment.‖ It is also referred to as an occupation, profession, career, or trade. It is a responsibility
of an individual towards his employer that he must perform well because he is paid for it. A job
is a formal kind of work.
The word ―work‖ is used as a noun as well as a verb. The noun work first appeared in the 1650s
to refer to an industrial place. It comes from the Old English word ―worc‖ or ―weorc‖ which
means ―something done, action, or business.‖ ―Work‖ is defined as ―a physical or mental activity
that is performed in order to accomplish or produce something.‖ It is something that an
individual does in the performance of his job or of his responsibilities towards his employers or
other people.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Definition of Job

In simple terms, a job is referred as a piece of work, more specifically a task performed regularly
for an agreed price. It is a part of one’s occupation, performed with a motive of earning money.
A job can be part-time or full-time.

BASIS FOR
JOB WORK
COMPARISON
Meaning A job is described as an activity, Work refers to any kind of activity that
performed by an individual for involves physical or mental strain, so
consideration. as to accomplish a goal.
Noun Countable Uncountable
Nature Specific Generic
Monetary Always present. May or may not be present.
compensation
Describes Your position in the company. Activities done by you.

Millennial at the Workplace

 Silent People: Silent people were born between 1928 and 1945. They're currently
between 74-91 years old.
 Baby Boomers: Baby boomers were born between 1946 and 1964. They're currently
between 57-75 years old
 Gen X: Gen X was born between 1965 and 1979/80 and is currently between 41-56 years
old
 Gen Y: Gen Y, or Millennials, were born between 1981 and 1994/6. They are currently
between 25 and 40 years old
o Gen Y.1 = 25-29 years old
o Gen Y.2 = 29-39
 Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently
between 9 and 24 years old
 Gen A: Generation Alpha starts with children born in 2012 and will continue at least
through 2025.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Millennial
Generation Y, also known as millennials or the Millennial Generation, often have certain skills
and behaviors that make them unique and valuable employees. Knowing the strengths of this
tech-savvy and ambitious generation can help you form successful office collaborations.

Generation Y is a demographic that is characterized by people who were born between 1981 to
1996. A few people born outside of the generational range might have millennial characteristics
of the millennial generation, even though they may technically be Generation X or Generation Z.

Value work-life balance, confident, tech-savvy

Characteristics of the millennial generation

1. Gen Y is tech-savvy

Generation Y is the first generation to grow up with the internet, cell phones and digital
communication. ―Digital natives'' is a term often used to describe people who grew up tech-
savvy. These professionals are comfortable learning and using the latest software releases in the
workplace. They may find it easier to learn new software, such as shared chat platforms.

2. Gen Y values flexibility

Many millennials prefer a flexible work schedule and workplace. Since many millennials hold
computer-based jobs, they may seek positions that are at least partly remote and allow them to
work outside of a traditional 9-to-5 schedule.

3. Gen Y seeks work-life balance

Gen Ys usually seek positions in which they can have a solid work-life balance. They prefer jobs
that allow them to spend more time with their family and/or pursue personal goals. In some
cases, they may prefer a job with more flexible hours over one that offers higher pay.

4. Gen Y is results-oriented

Another reason why millennials value flexibility is that they are results-oriented. They would
rather tell you what they accomplished instead of telling you how long they worked. If they can
complete a project faster than the allotted amount of time, they can achieve more. The ability to
list more achievements can make them feel accomplished in the workplace.

5. Gen Y seeks rewards and praise

Millennials grew up in a world of digital communication and social media, which could make
them more dependent on praise than other generations. Sometimes, receiving praise during a
team meeting from a manager can help a Gen Y employee stay motivated and productive.
Attention and praise let a millennial know when they’ve exceeded expectations.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

6. Gen Y are innovators

Many Gen Ys are innovative and look for new ways to be more efficient. They often ask
questions about a rule or established process so they can better understand ways to make
improvements. The ability to apply their knowledge of new software and technology to automate
and improve processes is an invaluable asset in any office.

7. Gen Y enjoys collaboration

Instead of working individually and focusing on a specific set of tasks, members of Generation Y
often try to find ways to work together to complete projects. Gen Ys won’t hesitate to step
outside their departments to find solutions, whether that means consulting with someone in IT
for better software or checking profitability charts with someone from accounting. This also
helps foster a results-oriented workplace with everyone working toward a shared goal.

8. Gen Y is ambitious

Generation Y challenges how things are done so they can reach their goals. This is an ambitious
generation that wants to do something new or break a record that was previously out of reach.
They’re not afraid to work hard to overcome challenges and obstacles.

Members of Generation Y try to follow the ―work smarter, not harder‖ motto. They would rather
develop a strategic solution to a problem that saves time, money and effort so they can apply that
savings to other problems.

1. Values meaningful motivation

2. Challenges the hierarchy status-quo
3. Places importance on relationships with superiors
4. Intuitive knowledge of technology
5. Open and adaptive to change
6. Places importance on tasks rather than time
7. Passion for learning
8. Openly receptive to feedback and recognition
9. Free-thinking and creative
10. Values social interactions in the workplace

Types of millennials

1. The Traditionalist

The Traditionalist craves for stability. In all aspects of their lives, they don’t wish to deviate too
far from the norm. They are driven by their need for comfort and security. They don’t want to
miss out on the best of things but they also don’t see the need to be overly idealistic in thinking

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

they can pursue their dreams without a cost to their security. A stable job, a stable income, a
stable family is what they strive for. This stability gives them security, and they give their loyalty
in exchange for this security. A volatile relationship with work and relationships disconcerts
them. Traditionalists echo the stereotyped Baby Boomers that are typically known to be loyal,
committed and hardworking individuals that easily submit to hierarchy. They are in a way a
continuation of the generations before them.

2. The Dreamer

The Dreamer craves to fulfill their life’s purpose, to follow their bliss, and to live a life of
meaning. They aren’t necessarily idealists but spend a vast amount of energy taking slow and
steady steps toward fulfilling their dreams and passions in life. They want a life that is
characterized with meaning, and a life where they do what they absolutely love. They envy those
who seem to have ―made it.‖ The magnitude of their actions in response to their dreaming nature
characterizes them differently. We see Dreamers on a spectrum. On the one end, they are
dreamers who are not yet ready to take action to pursue their callings, and on the other hand, they
are fully ready to embrace the uncertainties and risks to achieve what they were born to do.
Millennial Dreamers have a wider range of passion and possibilities than ever before thanks to
technology and globalization.

3. The Relational Devotee

The Relational Devotee is one that prioritizes their relationships over everything else. From
family, to friendships, to partners and colleagues, they find the greatest meaning in pursuing a
connection with every individual. They need to feel connected to a person or a community. They
are driven by love and by their desire for connection. These relationships are central to most
decision-making situations. It’s people first, everything else second. Millennial Relational
Devotees are not afraid of the cross-cultural and international borders that separate them and
their loved ones. Social media has made it easier to keep in touch with people anywhere around
the world.
4. The Experience Maximizer

The Experience Maximizer has a relentless curiosity about the world and a desire to learn and
expand their knowledge through accumulating different life experiences. They live in a way that
The Traditionalist would consider irresponsible. Whether its travelling around the world, or
working across industries, or trying new hobbies, or accumulating a diverse set of skills, The
Experience Maximizer lives in a trial and leave manner. They believe that this is the best way to
broaden their horizons and make informed decisions later on. The Millennial Experience
Maximizer sees infinite possibilities and areas to explore. Anything is possible.

5. The Achiever

The Achiever is the accomplished individual with countless achievements to their name.
Sometimes we wonder if they are born as humans like the rest of us, but most of the time, we are

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

too distracted with gaping at their accolades to do so. For most Achievers, the constant need for
challenge, growth and status drives their ways of life. They hate stagnation and do their best to
stay ahead of the crowd by constantly challenging themselves to get to the next level. Unlike The
Traditionalist or the Dreamer who are driven by stability and meaning, The Achiever just wants
to be challenged and to be ahead of themselves and the rest in all areas of their lives. The
Millennial Achiever is ambitious and bold. They are keen on tackling the big global issues that
generations before would have never dared dreamed. Poverty? Environment? Bring it on! They
are out to change the world, period.

Organization Structure and Work Structure

Organizational structure aligns and relates parts of an organization, so it can achieve its
maximum performance. The structure chosen affects an organization's success in carrying out its
strategy and objectives. Leadership should understand the characteristics, benefits and limitations
of various organizational structures to assist in this strategic alignment.

Organizational structure is the method by which work flows through an organization. It allows
groups to work together within their individual functions to manage tasks. Traditional
organizational structures tend to be more formalized—with employees grouped by function
(such as finance or operations), region or product line. Less traditional structures are more
loosely woven and flexible, with the ability to respond quickly to changing business
environments.

Organizational structures have evolved since the 1800s. In the Industrial Revolution, individuals
were organized to add parts to the manufacture of the product moving down the assembly line.
Frederick Taylor's scientific management theory optimized the way tasks were performed, so
workers performed only one task in the most efficient way. In the 20th century, General Motors
pioneered a revolutionary organizational design in which each major division made its own cars.

Types of Organizational Structure

 Pyramid Structure
 Matrix Structure
 Hub & Spoke
 Inverted Pyramid

What are the benefits of organizational structures?

Though not all businesses use organizational structures, those that do can reap several benefits.
Here are some benefits of implementing an organizational structure in your company:

 Faster decision making

 Multiple business locations
 Improved operating efficiency
 Greater employee performance

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 Eliminates duplication of work

 Reduced employee conflict
 Better communication

Strategic Job Design

Job design is the process of creating a job that enables the organization to achieve its goals while
motivating and rewarding the employee.
According to Michael Armstrong, "Job Design is the process of deciding on the contents of a
job in terms of its duties and responsibilities, on the methods to be used in carrying out the job,
in terms of techniques, systems and procedures, and on the relationships that should exist
between the job holder and his superior subordinates and colleagues."

How job design works

To properly redesign jobs, we need a framework to guide this redesign process. The best-known
framework is Hackman & Oldham’s job characteristics theory.
Back in 1980, Hackman & Oldham proposed that each job should have five core job
characteristics to be motivating for the individual. These characteristics remained consistent over
time and are still used today.
Characteristic Description
Skill variety The degree to which a job requires a broad array of skills. A financial controller
managing three different departments will have more skill variety than a
controller managing one specific department. Jobs with greater skill variety are
more challenging and require more competence
Task identity The degree to which an individual performs a whole piece of work. For
example, designing a full house interior is more rewarding than designing a
single room
Task The degree to which the work impacts others. When work impacts others, the
significance task feels more meaningful, leading to higher satisfaction
Autonomy The level of independence and freedom an individual has. Higher levels of
autonomy make a person feel more responsible for their work
Feedback The information that workers receive about the effectiveness of their work.
Feedback can come from the work itself (e.g., a functioning product) and

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

external sources (e.g., customer satisfaction). Feedback from the work itself
provides the most satisfaction and leads to knowledge of the results of work
activities

Job design strategies

1. Job rotation
Job rotation is a practice of moving employees between jobs in an organization. This increases
the skill variety, helps employees orientate in potential new roles, and learn through different
experiences.
Job rotation programs can lead to increased motivation and create flexibility in deployment
resulting in easy replacement in case of absence.
2. Job enlargement
Job enlargement involves adding additional activities within the same hierarchical level to an
existing role. An example is a designer specialized in hotel room design, now also getting
involved in restaurant design. The work requires similar skills but the work’s content differs.
3. Job enrichment
Where job enlargement is aimed at adding tasks, job enrichment is characterized by adding
motivational dimensions. This means that job enlargement could be a form of job enrichment.
Job enrichment focuses on adding motivators to existing roles, increasing the MPS. Examples
include adding opportunities to receive feedback, establishing client relationships to increase task
significance, and creating natural work units, which is aimed at grouping interrelated tasks
together to increase task identity.
4. Job simplification
Job simplification is the opposite of job enlargement and a bit of the odd one out. Job
simplification is the process of removing tasks from existing roles to make them more focused.

Benefits of Job Design

1. Employee Input: A good job design enables a good job feedback. Employees have the
option to vary tasks as per their personal and social needs, habits and circumstances in the
workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the
philosophy of ―leave them alone’ job design lays due emphasis on training people so that
are well aware of what their job demands and how it is to be done.
3. Work / Rest Schedules: Job design offers good work and rest schedule by clearly
defining the number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically demanding jobs
by minimising the energy spent doing the job and by aligning the manpower
requirements for the same
5. The quality of services provision
6. To satisfy every employee
7. Decrease the challenges that face employees such as allowances or not coming to work.
8. Increase product production in a company

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Job design is the process of

a) Deciding the contents of the job.
b) Deciding methods & processes to carry out the job.
c) Making optimize use of job/work-time so that job/work-time should not be wasted as time
is money and time cannot be earned, but can be saved by making efficient use of it.
d) Avoiding manual task if can be handled by machines or automated.
e) Synchronization of work, and no conflict with other jobs
f) Deciding the relationship which exists in the organization.

Strategic issues/ Recruitment Challenges

 Building a strong Employer Brand
 Lack of qualified candidates
 Expanding candidate reach
 Targeting passive candidates
 Attracting the right job candidates
 Building talent pools proactively
 Inefficient talent sourcing
 Engaging with active and passive job seekers
 Eliminating bias
 Ensuring easy team collaboration
 Streamlined selection process
 Choosing the right candidate
 Adoption of new technologies

What make bad recruitment?

 Not Creating an Accurate Job Description
 Failing to Consider Recruiting From Within
 Relying Too Much on the Interview
 Using Unconscious Bias
 Hiring People Less Qualified Than You
 Rejecting an Overqualified Candidate
 Waiting for the Perfect Candidate
 Rushing the Hire
 Relying Too Much on References
 Expecting Too Much, Too Soon From a New Recruit

What is the Hiring Process?

The hiring process is the process of reviewing applications, selecting the right candidates to
interview, testing candidates, choosing between candidates to make the hiring decision and
performing various pre-employment tests and checks.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Hiring Process
1. Identifying hiring needs
2. Planning
3. Creating a job description
4. Recruiter and hiring manager intake meeting
5. Posting and promoting job openings
6. Applicant screening
7. Job Interviews
8. Applicant talent assessment
9. Background check & Reference checks
10. Pre-employment testing
11. Decision
12. Job offer
13. Hiring
14. Onboarding

Factors affecting/influencing the Recruitment Process

Recruitment metrics
Recruitment metrics are a standard set of measurements used to manage and improve the process
of hiring candidates into an organization.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Standard Recruitment Metrics

1. Speed Metrics

Metric
Definition Formula
Type

The time it takes to identify and recruit a

candidate or an existing employee to fill a The clock starts on the metric
vacant position within an organization. Fill is calculation the moment the
defined as the step in the recruiting process requisition is approved by the
Time to where the candidate has cleared the hiring organization. The clock stops
Fill (TTF) background and/or reference checks. This on the metric calculation the
metric is generally used for the calculation moment the candidate clears the
and measurement of hiring external background and, if necessary,
candidates vs. existing internal employees reference checks.
within an organization.

The time it takes to identify and recruit a The difference in time between the
Time to candidate or existing employee to accept a moment the requisition is approved
Accept position within an organization. Accept is by the hiring organization and
(TTA) defined as the verbal or written acceptance of when the candidate accepts the
the job position being presented verbal or written job offer.

The clock starts on the metric's

The time it takes to identify and recruit a calculation the moment the
Time to candidate or existing employee to start in the requisition is approved by the
Start (TTS) new position that they have accepted within hiring organization and stops based
an organization. on the candidate's target or real
start date.

This calculation calculates the

difference between when a
Time a candidate spends in each of the
candidate first enters a workflow
workflow step of the Applicant Tracking
step and when that candidate leaves
Time in System (ATS) in business days. Examples of
that workflow step. Example:
Workflow standard ATS step are: Candidate
Candidate applies to a job opening
Step Application; Recruiter Screening;
on January 1 and then is moved by
(TWS) Submission to Hiring Manager and review;
a recruiter to the Recruiter Screen
Initial interviews(s); Final Interview; Offer;
workflow step in the ATS on
Background Checks; Hire.
January the 4th. The time in the
candidate application step is

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

tabulated as 4 days.

The time a candidate spends in the selection

Shown in days, it is the difference
process for an opening. This metric only
in time between the successful
Applicant measures the successfully hired candidate
candidate’s application submission
Cycle Time and does not account for any other
and the moment the candidate
(ACT) candidates. It is a good measure of the
accepts the verbal or written job
efficiency of the recruiting team once a
offer.
qualified candidate is identified.

2. Quality Metrics

Metric Type Definition Formula

Example: Recruiting function

Submissions to Number of candidates that are submitted submits 10 candidates to the
Business to the business by the recruiting function business against the requirements
Acceptance over the requirements of the position that of the role and the business accepts
Percentage are accepted by the business as a 7 that they will move forward to
(SBA) percentage the next step of the recruiting
workflow. SBA = 70%

Number of candidates submitted to

Compares a quality data point on the the business from the recruiting
recruiting functions ability to present a function that they accept as a
quality number of candidates to the percentage (SBA Metric)+
business/organization for consideration as percentage of candidates that do
a percentage of those that the business not leave in their first twelve
accepts to proceed forward in the months of employment divided by
recruiting workflow process in these two data points. Example:
combination with the organization's Data Point 1: Recruiter submits 10
ability to retain candidates that have candidates to the business who
First Year
started their new position and are still accepts 8 = 80% submission quality
Quality (FYQ)
with the organization after their first (SBA).
twelve months of employment. Attrition
is defined as employees who have left the Data Point 2: In the previous fiscal
organization either a) On their own year, 10% of candidates hired left
accord or b) Were terminated from the organization within their first
employment from that organization year of employment = 90%
within the first twelve months of Retention. 80% + 90% = 170
employment. Also referred to unmanaged divided by two data point
or managed attrition. indicators = 85% First Year Quality
(FYQ)

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Number of candidates presented the

Compares the number of candidates that offer who accept the offer as a
Offer
are presented a written or verbal job offer percentage. Example: 10
Acceptance
vs the percentage of candidates that Candidates are presented a job
Rate (OA)
accept the job offer offer with 8 accepting the job offer
= an 80% OA
The ratio of the number of
A percentage metric to determine the candidates that start the job
quality of the candidate application application and the number of
Application process and experience. A good candidates that complete the online
Drop off Rate candidate application experience should application as a percentage.
(ADR) determine a higher percentage of Example: 100 candidates start an
candidates starting and completing the application for a position but only
application process 40 complete the application
process. ADR = 60%
A standard set of questions that gets
asked of Hiring Managers within an
organization by the Recruiting function Variations exists in how
on their level of satisfaction around some organizations produce a
or all of the following: measurement of outcome from the
Hiring overall scoring system being used
Manager  Overall experience working with the from leveraging a net
Satisfaction recruiting function during the hiring promoter score approach to a Likert
process Scale approach of 1 to 7, with 1
 Quality of candidates submitted being extremely satisfied to 7 being
 Speed and responsiveness extremely dissatisfied.
 Value added to guide and help the
business through the hiring process
A standard set of questions that gets
asked of candidates during or after the
hiring process about their level of
satisfaction around some or all of the Variations exists in how
following: organizations produce a
measurement of outcome from the
 Overall experience working with the overall scoring system being used
Candidate
organization during the hiring from leveraging a net
Satisfaction
process promoter score approach to a Likert
 Overall experience working with the Scale approach of 1 to 7, with 1
recruiting function during the hiring being extremely satisfied to 7 being
process extremely dissatisfied.
 Satisfaction with the technology and
experience used during the
application process

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 Speed and responsiveness

 Value added to guide and help the
candidate through the hiring process

3. Productivity Metrics

Metric Type Definition Formula

A recruiting metric to help determine

the value of potential investments
made by an organization in each of
their different initiatives around the
Total number of candidate applications
attraction of candidates applying their
as a percentage, grouped by source
job opportunities. Each of these
category. Example: During a 12-month
initiates are traditionally grouped into
Source of period, an organization had 5,000
candidate source categories in an
Application candidates apply to their positions,
Applicant Tracking System (ATS).
(SoA) where 1,000 of those candidate
Examples of traditional candidate
applications came from Job boards.
source of application categories are:
Job boards provided 20% of the
Employee Referrals; Job Boards;
applications.
Organization's Career pages; Social
Media; 3rd Party Staffing Agencies;
Career Fairs; Internal Employment
sites

A recruiting metric to help determine

the value of potential investments
made by an organization in each of
their different initiatives that
Total number of candidates hired as a
ultimately leads to a candidate being
percentage broken out by percentage
hired. Each of these initiates is
of each source category. Example: For
traditionally grouped into candidate
a 12-month period an organization had
Source of Hire source categories in an Applicant
1,000 candidates hired to their
(SoH) Tracking System (ATS). Examples of
positions where 300 of those candidate
traditional candidate source of
applications came from Employee
application categories are: Employee
Referrals. Employee referrals
Referrals; Job Boards; The
influenced 30% of the applications.
organization's Career pages; Social
Media; 3rd Party Staffing Agencies;
Career Fairs; Internal Employment
sites
Candidate A metric calculating why candidates Total number of candidates who
Withdrawal do not want to proceed forward with withdrew from the recruiting process

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Reasons during the interview process against a as a percentage breakout by each of

(CWR) requisition. The outcome is a grouping the candidates withdrew groupings.
of common reasons why candidates Example: 500 candidates withdrew
are not interested in proceeding. from sales positions for an
Examples of potential candidate organization in a fiscal year.
withdrawal reasons: Too much travel
required; Base salary too low;  150 (30%) said too much travel
Organization's benefits package; required
Relocation; Role requirements not  100 (20%) said base salary too low
motivating enough; Organization's  20 (4%) said Organization's
external brand. This is useful to assist benefits package
organizations in determining trends  80 (16%) Relocation
that indicate areas that need  100 (20%) Role requirements were
improvement. Example comparison not motivating enough
groupings: Similar job family  50 (10%) Organization's external
positions; Positions in certain brand
geographies; Positions in different
organizational business units;
Positions by recruiters; Positions
grouped by hiring managers
A metric that determines how much
time as an overall percentage is spent Total number of filled requisitions plus
by the recruiting function working on canceled requisitions that are worked
requisitions that get canceled vs the on during a fiscal year divided by the
Req
time spent on requisitions that get number of those requisitions that are
Cancellation
filled. A high percentage of time spent canceled. Example: A recruitment
Rate (RCR)
by a recruiting function working on process fills 5,000 requisitions a year
positions that get canceled creates with an additional 1,250 requisitions
inefficiencies in the organization's being canceled. RCR = 20%
recruiting process.
Total number of requisitions that are
Similar to the RCR: how much time as created during a fiscal year that are net
an overall percentage is spent by new growth positions as a percentage
New vs recruitment working on requisitions out of 100 vs the percentage of
Replacement that are net new growth positions for requisitions that are created that are
Req Type an organization vs time spent on backfilling an employee. Example:
(NvR) requisitions that are backing an 10,000 requisitions are created in a
existing position where the employee fiscal year where 6,000 (60%) are net
left the role. new growth positions vs 4,000 (40%)
are backfilling and employee.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

4. Cost Metrics

Metric Type Definition Formula

A metric that identifies the total cost A recruiting department’s total resource
of recruiting resources that are costs, including full-time employees,
Recruiting required by an organization to fill all contractors, and temps, divided by
Resources the requisitions in a fiscal year. Note: number of candidates hired for a fiscal
Cost to This metric is a simpler derivative of year. Example: An organization spends
Acquire total Cost Per Hire metrics that try to 1 million dollars a year on total resource
(CTA) capture all recruiting related expenses costs and they fill 400 requisitions in a
and investments involved in hiring fiscal year. 1 million divided by 400,
candidates. CTA = $2,500

Internal & External Recruitment Approaches

A). Recruiting Fundamentals
Employers generally use some combination of internal and external recruitment tactics. Both
approaches have certain basics in common: A foundation in rigorous job analysis; well-crafted
job descriptions; and compliance with applicable laws, especially equal employment opportunity
laws.
1. Hiring Manager Intake Meetings
When a role needs to be filled (either internally or externally), HR should schedule an intake
meeting with the hiring manager to learn more about the job, the essential requirements and the
profile of the ideal candidate. The recruiting strategy (how are we going to find these internal or
external candidates) can be discussed, and expectations can be set (what will HR do, what will
the hiring manager do, etc.). Using a checklist of questions and discussion topics to address
during these meetings can help to capture the key elements, and sending a follow-up e-mail to
the hiring manager outlining the agreements and expectations that were set during the meeting
can ensure everyone is on the same page.
2. Job Analysis And Job Descriptions
Before the recruitment process begins, employers should first conduct a job analysis to determine
the elements of the job and then develop a job description that defines the job responsibilities and
skill sets needed to perform it. See Performing Job Analysis and Job Analysis Template.

B). Internal Recruiting

Internal recruiting typically consists of one or more of the following approaches:

 Internal job posting.

 Nomination by manager.
 Knowledge, skills and abilities database.
 Succession planning.
Regardless of which approach—or combination of approaches—an employer adopts, it should
craft a policy that is fair and equitable to internal applicants, that sets expectations for employees

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

applying for a position, and that is implemented consistently and communicated openly
throughout the organization.
Job Posting
Many employers use internal job postings to encourage employees to identify internal
promotional opportunities and respond to those openings for which they have skills and
interest. See What are the benefits to posting jobs internally?
Nominations
Some companies have a more closed approach to internal recruitment and may ask managers to
nominate high-performing individuals as candidates for internal roles. This tends to be an
informal system, yet it may be highly effective in smaller organizations in which individuals are
familiar with the work of employees in other departments. However, this approach may appear
or in fact involve favoritism or unlawful discrimination. The consequences of either of these may
offset any benefits the employer may gain by promoting from within.
Knowledge, Skills And Abilities Database
Human resource information systems (HRISs) are commonly used to track various personnel-
related issues. These may include a database of employees' knowledge, skills and abilities
(KSAs). New hires can create a KSA profile that details their background, experiences and
career goals and update the profile periodically, usually in conjunction with a performance
review or career development discussion. This database can used by HR to identify individuals
for potential promotion or transfer.
Succession Planning
Organizations can use succession planning strategies not only to identify the potential talent in
the organization, but also to establish developmental plans to help prepare individuals for
promotional roles. See Retool Your Succession Planning to Meet Future Challenges.

C). External Recruiting

When recruiting external talent, the recruiting function is very similar to the marketing function,
in that the organization is promoting both itself and employment opportunities to potential
candidates. Adapting marketing principles to employee recruitment is a proven way to bring
discipline to the process. For example, organizations can be most effective in recruitment when
they identify their potential markets and then create specific messages and activities to reach
them. See COVID-19 Spurs Novel Approaches to Talent Acquisition.
Targeting Passive Or Active Candidates
Before deciding which recruiting method to use, organizations should first determine whether the
ideal candidates are passive or active job seekers. Those who are unemployed or unhappy in their
current employment are generally active job seekers, and those who are satisfied and
successfully working at another place of business are generally passive job seekers. Most
employers, because they are looking for candidates who have a positive record of employment
and are satisfied in their work, target passive job seekers.
Job Postings/Vacancy Announcements
It is important to understand that the job description is not always an effective job
posting/vacancy announcement. For the job posting/vacancy announcement to serve as a magnet
to attract the right candidates to the job, it should include information about what a prospective
candidate may get from the job rather than just the job duties and requirements.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

Managing Employer Brand And Image

The organization's reputation as an employer will affect its ability to attract top candidates. When
employees are satisfied with the organization, they are likely to tell their friends and contacts
about their employer, whether there is a referral program or bonus. Word of mouth and online
communications about the organization can either help or hinder formal recruitment strategies.
Employers can also manage their employment image by regulating not only the frequency of
recruitment messages (especially within any one recruitment medium) but also the wording used.

Managing The "Candidate Experience"

The organization's employer brand is also impacted by the way candidates in the hiring process
are treated—whether they get the job they apply for or not. How a candidate is treated from the
earliest stages of submitting his or her resume/application through the in-person interviews to the
offer/decline process are all considered part of the candidate experience. Employers must
develop policies and practices that set guidelines on these elements including:

 Resume/application submission—Is this an easy process that doesn't require providing

too much data? Can candidates easily navigate an employer's online or offline application
process, including via mobile devices? Can candidates easily find the careers page on the
employer's main website—in one or two clicks?
 Candidate communication—Are candidates provided timely and authentic
communication on whether their application has been accepted, the status of interviews
and answers to questions they may have about where they are in the process?
 Interviewer interactions—Are candidates interviewed by HR and hiring managers who
are prepared for the interviews, have reviewed the resume/application in advance, are
respectful of candidate responses and questions, and show consideration for the
candidate's time?
 Candidate logistics—Are candidates provided clear instructions regarding the logistics
for their visits to an employer site, including being provided a schedule of interviews and
interviewers in advance; receiving information on how to drive/travel to the employer site
and reimbursement procedures for expenses (if applicable); and provided with
appropriate meal/restroom breaks, etc.?

Developing Recruitment Partners

HR professionals often juggle the staffing function with many other duties: employee relations,
compensation, benefits, and training and development to name a few. To best meet their staffing
needs, effective HR professionals seek out additional resources that can help them recruit
candidates.
Measuring Results
Metrics used to track recruitment results can including the following:
 Hiring source—the referral source (e.g., an employee, recruitment advertisement, event).
 Quality of hire—how long the employee remains on the job as well as the job
performance of that employee.
 Vacancy rates—the number of open positions as a ratio of all positions.
 Turnover rates—the number of employees who have been terminated or left as a ratio of
the total number of positions in the organization.

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 Miss Jyothi G.H PG Dept of Management Studies& Research Centre
Asst.Professor PES Institute of Technology and Management
20MBAHR303 N H 206, Sagar Road, Shivamogga – 577 204

 Cost of turnover—all of the costs associated with replacing an employee (e.g.,

recruitment costs, selection costs, training costs).
 Time to fill—the number of days from the vacancy being posted to the time it is filled.
 Selection ratios—the number of candidates within a group selected as a percentage of the
total number recruited.
 Cost per hire—the cost of filling one position.

Legal and Ethical Issues in Recruitment

Legal Issues
A variety of federal laws prohibit employment discrimination on the basis of:
 Age.
 Citizenship.
 Race/color.
 Disability.
 Genetic information.
 Family and medical leave use.
 Military service.
 National origin.
 Pregnancy.
 Religion.
 Sex (including gender identity and sexual orientation).
 Payment of Gratuity Act 1936
 Workmen Compensation Act 1923
 Payment of Bonus Act 1965
 Employee Provident Fund Act 1947
 Maternity Act 1961
 Factories Act 1948

Ethical Issues
 Requiring candidates to pay for their services
 Altering the job description
 Advertising non-existing jobs
 Altering a candidate’s resume
 Presenting an ―expiring offer‖ to a candidate
 Faking a relationship with an employer
 Discrediting a candidate’s current employer
 Trying to offer the least possible pay
Organizational Best Practices in Recruitment
 Providing Security for employees.
 Selective Hiring
 Self-Managed and effective teams
 Fair & Performance based Compensation.
 Training in relevant skills
 Easy flow of information

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