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Strategic Staffing

Chapter 1 Strategic Staffing

Jean Phillips & Stanley Gully

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Staffing for Competitive Advantage
A competitive advantage is something that a
company can do differently from its competitors
that allows it to perform better, survive, and
succeed in its industry can be defined by
technology, innovative product lines, low-cost
products, or excellent customer service.
Every companys employees create, enhance, or
implement the companys competitive
advantage
Where do these employees come from? It all
begins with the staffing process

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Why Is Staffing Important?
Staffing outcomes determine who will work
for and represent the firm, and what its
employees will be willing and able to do.
Staffing therefore influences the success of
future training, performance management,
and compensation programs as well as the
organizations ability to execute its business
strategy.

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What is Talent Management?
Talent management is the implementation of
integrated strategies or systems designed to
increase workplace productivity by
developing improved processes for attracting,
developing, retaining, and utilizing people
with the required skills and aptitude to meet
current and future business needs.

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What Is Strategic Staffing?
Definition: The process of staffing an
organization in future-oriented and goal-
directed ways that support the organizations
business strategy and enhance organizational
effectiveness.
This involves the movement of people into,
through, and out of the organization.

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How Strategic Staffing Differs from Traditional
Staffing
Traditional staffing:
Less tied to strategy
More reactive and more likely to be done in response to an opening
Lacks continuous improvement effort
Strategic staffing systems incorporate:
Longer-term planning
Alignment with the firms business strategy
Alignment with the other areas of HR
Alignment with the labor market
Targeted recruiting
Sound candidate assessment on factors related to job success and longer-
term potential
The evaluation of staffing outcomes against pre-identified goals

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Staffing Process
Figure 1-1: A Flowchart of the Staffing Process

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Seven Components of Strategic Staffing
Table 1-1

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Workforce Planning
Definition: The process of predicting an organizations future
employment needs and the availability of current employees
and external hires to meet those employment needs and
execute the organizations business strategy.
Usually involves both the hiring manager and a staffing
specialist (determines # and types of people needed,
competencies, and talents, gauge availability of talent)
Can be short-term and focus on an immediate hiring need
Can be long-term and focus on the organizations needs in
the future. Workforce planning is better strategically the
more it addresses both the firms short- and long-term needs.
Can also address demographic issues (aging workplace or
diversity issues)

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Sourcing and Recruiting Talent
Sourcing: locating qualified individuals and
labor markets from which to recruit
Recruiting: all organizational practices and
decisions that affect either the number or
types of individuals willing to apply for jobs
and accept job offers
Sourcing identifies people who would be
good recruits. Recruiting activities entice
them to apply to the organization and accept
job offers, if extended.

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Selecting and Acquiring Talent
Selecting: assessing job candidates and
deciding whom to hire
Acquiring: involves putting together job
offers that appeal to chosen candidates, and
persuading job offer recipients to accept
those job offers and to join the organization

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Deploying Talent
Deploying: assigning talent to appropriate
jobs and roles in the organization
Succession planning and career development
enhance deployment options
Socializing: the process of familiarizing newly
hired and promoted employees with their
job, workgroup, and organization

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Retaining Talent
Succession management and career
development are effective tools
Turnover of high performers can be
expensive
Turnover of low performers can be beneficial
Retention saves money in recruiting and
hiring replacements for those leaving

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Matchmaking Process
Recruiting and selection are interdependent, two-way
processes in which both employers and recruits try to look
appealing to the other while learning as much as they can
about their potential fit.
Applicants and organizations choose each other.
Recruitment continues throughout the selection and
acquisition process until the person is no longer a viable job
candidate, or until a job offer is accepted and the person
reports for work.
Some firms continuously recruit current employees to
maintain their attractiveness as an employer and enhance
retention.

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Identifying Staffing Goals
Process Goals Outcome Goals
Relate to the hiring process
Relate to the product of
itself- i.e. how many of what
the hiring effort i.e.
quality employees apply;
number and quality of
attracting appropriate
people hired; financial
numbers of diverse
return on the staffing
applicants; meeting hiring
investment; whether the
timeline goals (within two
effort improved
weeks).
organizational effectiveness

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Staffing Goals
Should be aligned with improving the strategic performance of
the staffing system.
The primary staffing goal is to match the competencies, styles,
values, and traits of job candidates with the requirements of
the organization and its jobs.
Strategic staffing goes even further and enables the organization
to better execute its business strategy and attain its business
goals.
Staffing goals should be consistent with the goals and needs of
all stakeholders in the staffing process, including applicants and
hiring managers.

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Integration With Other Areas of HR

Training Hire competencies or train


internally?
Compensation Low / high wage affects
quality of candidates, using performance pay
as motivation
Performance management can affect
turnover if not effective
Succession planning
Career development
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Strategic Staffing
Chapter 2 Business and Staffing
Strategies

Jean Phillips & Stanley Gully

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Why Does One Company Succeed and Another Fail?

Staffing plays a central role in creating and


enhancing any organizations competitive
advantage

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Resource-Based View of the Firm
Proposes that a companys resources and
competencies (including its talent) can
produce a sustained competitive advantage
by creating value for customers by:
Lowering costs
Providing something of unique value
Or some combination of the two

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Resource-Based View of the Firm
Focuses attention on the quality of the skills of a companys
workforce at various levels, and on the quality of the
motivational climate created by management.
Human resource management is valued not only for its
role in implementing a given competitive scenario but
also for its role in generating strategic capability.
Staffing has the potential to create organizations that are
more intelligent and flexible than their competitors, and
that exhibit superior levels of cooperation and operation.

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Five Requirements of a Competitive
Advantage
Table 2-1

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Business Strategy
Definition: how a company will compete in its
marketplace
Competitive advantage: anything that gives a
firm an edge over rivals in attracting
customers and defending itself against
competition
To have a competitive advantage a company must be able
to give customers superior value for their money (a
combination of quality, service, and acceptable price)

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Components of Business Strategy
Business strategy involves the issue of how to
compete, but also encompasses:
The strategies of different functional areas in the firm
How changing industry conditions such as deregulation,
product market maturity, and changing customer
demographics will be addressed
How the firm as a whole will address the range of strategic
issues and choices it faces

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Some Sources of Competitive
Advantage
Innovation: developing new products, services, and
markets and improving current ones
Cost: be the lowest-cost provider
Service: provide the best customer support before,
during, or after the sale
Quality: provide the highest quality product or
service
Branding: develop the most positive image

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Sources of Competitive Advantage
Distribution: dominate distribution channels
to block competition
Speed: excel at getting your product or
service to consumers quickly
Convenience: be the easiest for customers to
do business with
First to market: introduce products and
services before competitors

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Three Types of Business Strategy
1. Cost leadership strategy: be the lowest cost
producer for a particular level of product
quality (Wal-Mart, Dell, FedEx)
Competitive advantage based on operational excellence:
maximizing the efficiency of the manufacturing or
product development process to minimize costs
This can only be achieved with trainable and flexible
employees who avoid waste and lower production costs
Look for adaptable, trainable employees that can follow
standard procedures!

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Three Types of Business Strategy
2. Differentiation strategy: developing a
product or service that has unique
characteristics valued by customers and for
which the firm may be able to charge a
premium price: (Rolex, Lexus, Johnson &
Johnson, Nike, 3M, Apple)
Competitive advantage based on product innovation
Look for creative, high tolerance for ambiguity,
entrepreneurial mindset

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Three Types of Business Strategy
3. Specialization strategy: focus on a narrow
market segment or niche and pursue either a
differentiation or cost leadership strategy
within that market segment (Starbucks, Red
Lobster, Seiko)
Competitive advantage based on customer intimacy: deliver
unique and customizable products or services to meet their
customers needs and increase customer loyalty aim for
team players with good people skills
Consulting, retail and banking strive for customer intimacy
Look for networking, customer relation skills,

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4. Growth Strategy
Definition: company expansion organically (happening as the
organization expands from within by opening new locations)
or through mergers and acquisitions
Success depends on the firms ability to find and retain the
right number and types of employees to sustain its intended
growth.
Organic growth requires an investment in recruiting,
selecting, and training the right people to expand the
companys operations.
Mergers and acquisitions expand an organizations business
and can also be a way to acquire the quality and amount of
talent a firm needs to execute its business strategy.

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Organizational Life Cycle and Strategy Choice

Intro-Growth-Maturity-Decline life cycle


Strategy during intro phase
Attracting top talent is a priority
Company must meet market compensation rates

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Organizational Life Cycle and Strategy Choice

Strategy during growth phase


New and growing firms often pursue innovation or
differentiation strategies to distinguish themselves from
their competition.
Because they are less established and thus higher-risk
employers, they often need to invest more money and
resources in staffing to attract the talent they need to
grow.
Because they lack a strong internal talent pool and
need to add new employees as they grow, they
frequently need to hire from outside the organization
and tend to have an external talent focus.

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Organizational Life Cycle and Strategy Choice

Strategy during maturity phase when products


and services have fully evolved, and the
products market share has become established
The focus shifts to maintaining or obtaining further market
share through cost leadership, often by streamlining operations
and focusing on efficiency.
Because mature companies have a larger pool of internal talent
from which to draw, the talent focus becomes more internal.
Requires more adaptable and mobile employees as company
may restructure

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Organizational Life Cycle and Strategy Choice

Strategy choice during decline phase when


markets are shrinking and business
performance is weakening
Can pursue a cost-leadership strategy and allow the
decline to continue until the business is no longer
profitable
Focus on reducing labor and other costs
Can try to make changes to revive the product or service
If it chooses to try to change its product or service, the
firm typically adopts a specialization or differentiation
strategy
This can change the talent mix needed

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Talent Philosophy
A system of beliefs about how employees
should be treated
How should the organization think about its
employees? expendable or investment?

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HR and Staffing Strategies
Human resource strategy: the linkage of the
entire human resource function with the firms
business strategy in order to improve business
strategy execution
Strategic HR mgmt aligns goals and values of company
with those of employees.
Staffing strategy: the constellation of priorities,
policies, and behaviors used to manage the flow
of talent into, through, and out of an
organization over time

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The Firms Commitment to Diversity
A firm can proactively recruit a diverse mix of
workers and strive to incorporate diversity
into its workplace--- or it can more passively
allow diversity to happen on its own.
Well managed, heterogeneous groups
outperform homogeneous groups in problem
solving, innovation, and creative solution
building.

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Applicants and Employees as Either Assets or Investors

If applicants and employees are thought of as


assets, the staffing focus is on managing costs
and controlling the asset. (acquire employees
cheaply and quickly good for low-cost
strategy)
By contrast, if applicants and employees are
thought of as investors rather than expenses,
the focus is on establishing a mutually beneficial
relationship in which the company invests in
their resources. (provide return on personal
investment in the company)
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The Firms Commitment to Ethical
Behavior
A firm with a talent philosophy focused on
maintaining high ethical standards will be
more forthcoming and communicate more
clearly with applicants and build trust among
employees.

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Nine Elements of Staffing Strategy
1. Do we want a core or flexible workforce?
Core employees consist of workers considered to be
central to what the organization does or produces.
Flexible workers or contingency workers have less
job security.
2. Do we prefer to hire internally or externally?
3. Do we want to hire for or train needed skills?
4. Do we want to replace or retain our talent?
5. What levels of which skills do we need where?

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Nine Elements of Staffing Strategy
6. Will we staff proactively or reactively?
Job-Oriented Staffing: recruit when you need to fill a job
opening
Talent-oriented staffing: recruit and hire when no specific job
opening (labour market tight)
7. Which jobs should we focus on?
8. Is staffing treated as an investment or a cost?
9. Will staffing be centralized or decentralized?
Centralized: All staffing activities channeled through 1 unit
(economies of scale, uniform procedures)
Decentralized: Different units house own staffing activities
(specialized hiring, more responsive)
Combined some staffing function shared, others decent.

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Competitive Talent Advantage
Human capital advantage: Hiring and retaining
outstanding people that produces a stock of exceptional
talent
Human process advantage: superior work
processes create a competitive advantage.
The firms work gets done in a superior way.

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LEGAL FRAMEWORK CANADA
Chapter 3

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Human Rights Laws and Legislation
Discrimination
The act of treating people differently, negatively or
adversely and making a distinction between certain
individual, or groups based on prohibited grounds of
discrimination
Direct discrimination (conscious act)
Indirect/adverse affect/constructive discrimination
Systemic Discrimination (e.g., ageism)
Discrimination based on Association
Human Rights Laws and Legislation
Bona Fide Occupational Requirements (BFOR)
A practice that is established as an essential requirement of the
job and is thus not discriminatory
The Meiorin Case established a 4-part test
Accommodation
Responsibility to eliminate rules, practices or barriers that
have an adverse impact on individuals with disabilities
Duty to Accommodate
An integral responsibility of employers to promote inclusion
(can involve work schedules, changes to work done, or the
work environment
Reasonable Accommodation
Obligation to the point of undue hardship
Individual Accommodation
Flexibility in dealing with individual employee requests
Human Rights Laws and Legislation
Harassment
A discriminatory practice to harass an individual based on
a prohibited ground of discrimination
Can take many forms
Verbal abuse or threats
Unwelcome remarks about a persons body, attire, age,
marital status, ethnic or national origin, religion, etc.
Displaying offensive or derogatory pictures
Practical jokes that cause embarrassment
Unwelcome invitations
Leering or other gestures
Condescension or paternalism that undermines self-respect
Unnecessary physical contact
Physical assault
Strategic Staffing
Chapter 4 Strategic Job Analysis
and Competency Modeling

Jean Phillips & Stanley Gully

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Job Analysis
Definition: a systematic process of identifying and
describing the important aspects of a job (incl. working
conditions, tools, technologies) and the characteristics
workers need to perform the job well
Helps define the ideal individual for a job from the
perspective of the company, its strategy, and their
potential coworkers.
Job analyses also help group jobs into job families or
groupings of jobs that call for similar worker
characteristics
Enables firm to hire people for different jobs from same pool

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Job Analysis for Staffing
A job analysis that produces a valid selection
system identifies worker characteristics that:
Distinguish superior from average and unacceptable workers;
Are not easily learned on the job; and
Exist to at least a moderate extent in the applicant pool.
Typically involves job analyst collecting info
from those who hold the job + supervisors. They
then compile and summarize this info and have
job experts check it.
Future-oriented job analysis: job analysis
technique for analyzing new jobs or analyzing
how jobs will look in the future
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Practical Reasons to do a Job Analysis
Table 4-3

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Job Description
A written description of the duties and responsibilities of the job
itself based on a job analysis. Job descriptions usually include:
The size and type of organization
The department and job title
The salary range
Position grade or level
To whom the employee reports and for whom the employee is responsible
Brief summary of the main duties and responsibilities of the job
Brief summary of the occasional duties and responsibilities of the job
Any special equipment used on the job
Any special working conditions (e.g. shift or weekend work, foreign travel, etc.)
Purpose and frequency of contact with others
The statement, Other duties as assigned to accommodate job changes and special projects

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Person Specification

Person specification or job specification: summarizes the


characteristics of someone able to perform the job well
Describes the ideal candidate
Essential criteria: job candidate characteristics that are
critical to adequate new hire performance and for which
candidates should be screened
Desirable criteria: job candidate criteria that may enhance
the new hires job performance, but that are not essential to
adequate job performance

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Outcomes of Job Analysis
Figure 4-1

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Job Analysis Methods
Must be:
Reliable, or replicable
A reliable job analysis procedure will produce the same
results when it 1) is applied to the same job by a
different job specialist; 2) when a different group of
job experts is used; and 3) when it is done at a
different time.
Valid, or accurately measure what it was intended to
measure
A valid job analysis accurately captures the target job.

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Job Analysis Techniques
Critical incidents technique: identifies behaviors that
lead to extremely effective or extremely ineffective
job performance (identify circumstances, action,
consequences) collect thru interviews or written
records.
Use to identify set of critical job duties and relevant worker
characteristics for successful performance of these duties
Can also collect duties first and give examples of good or bad
performance
Useful for infrequent or unusual work events that may be missed
Inexpensive; used in conjunction with other techniques to illustrate
extremes

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Job Analysis Techniques
Job elements method: uses expert brainstorming
sessions to identify the characteristics of successful
workers
Used in industrial occupations and lesser-skilled jobs

1. Select group of experts


2. Conduct brainstorming sessions to identify characteristics that
successful workers have
3. Assign weights to each characteristic based on
1. Proportion of barely acceptable workers who have job element
2. How effective the element is when picking a superior worker
3. The trouble likely to occur if element is not considered
4. Practicality
4. Analyze job element data

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Job Analysis Techniques
Structured interview technique: subject matter experts
provide information about the job verbally in a structured
interview
Good if small # of job experts available or must be quick
Should be conducted by job analyst professional to reduce bias (as limited
data exists)
Task inventory approach: job experts generate a list of 50-
200 tasks that are grouped in categories reflecting major
work functions that are then evaluated on importance and
amount of time spent.
Structured Questionnaires: a standardized, structured
questionnaire that can be used for just about any job (e.g.,
the Position Analysis Questionnaire or PAQ)
Advantage: Speed and low cost.; more objective comparison
Disadvantage: high reading level, not very customizable
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Issues with Job Analysis
Employees can emphasize only what theyre
good at.
May get defensive or worried that jobs are
being analyzed.
Emphasize that it will help identify employee
characteristics that will augment the firms business
strategy and increase companys return on staffing
investment

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Planning Job Analyses
Determine time and resources necessary and available
More resources = greater validity
Collect background information about the company, its
culture and business strategy, the job, and the jobs
contribution to strategy execution and competitive
advantage
Identify job experts (more high-performing employees)
Identify appropriate job analysis technique(s) to use
Can be inductive (main duties of job have not been determined)
or deductive (duties have already been determined)

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Job Analysis Steps

K Knowledge, S - Skills, A Abilities, O Other (integrity, values)


Typical intelligence, conscientiousness, extraversion, emotional stability

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Task Statements
Table 4-6

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Job Requirements Matrix
Table 4-11

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Tips for Writing Job Descriptions
Provide enough info to pique interest
Supplement JDs with regularly negotiated
goals + developmental opps
Write enough flexibility into job descriptions
Be descriptive with title

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Competency Modeling
Definition: a job analysis method that identifies the necessary
worker competencies for high performance
Competencies: rather than focusing on job tasks, they are the
broader worker characteristics that underlie successful
performance or behavior on the job; multiple types of KSAOs
Because competencies are linked to the organizations business
goals, strategy, and values, a person specification resulting from a
job description can enhance hiring quality and strategy execution
A competency-based job description:
Enhances a managers flexibility in assigning work
Lengthens the life of a job description
Can allow firms to group jobs requiring similar competencies under a single
job description

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What is a Competency?
Definition
An underlying characteristic of an individual contributing
to
Job or role performance and
Organizational success
Similarities to KSAOs
Differences between competencies and KSAOs
More general or generic
May contribute to success on multiple jobs
Contribute not only to job performance but also to
organizational success
Exhibit 5.20: Examples of
Competencies
Organization Usage
OThree strategic HR reasons for doing competency
modeling:
Create awareness and understanding of need for change in
business
Enhance skill levels of workforce
Improve teamwork and coordination

Less useful for technical skills


Competencies Related to Specific Job Environments

Table 4-12

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Job Rewards Analysis
Job rewards analysis: identifies the intrinsic
and extrinsic rewards of a job
Analyzes the intrinsic rewards that are non-monetary and
derived from the work itself and the firms culture
Including the satisfaction of meeting personal goals,
continuous learning, and doing meaningful work.
Analyzes the extrinsic rewards that have monetary value
of a job.
Include base pay, bonuses, and benefits.
Can help recruiter learn what motivates job
candidates and identify rewards that are
appealing
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Job Rewards Analysis
Employee value proposition (EVP): the intrinsic and
extrinsic rewards an employee receives by working
for a particular employer in return for his or her job
performance (if equal or exceeds, less likely to quit)
How to do job rewards analysis:
First determine exactly what attracts job candidates, and
why employees enjoy their work.
Then craft a message to clearly state what makes your
company the obvious choice over the competition.

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3 Criteria for Employee Value Propositions

1. Magnitude refers to a reward package that is neither too


small nor too large in economic terms.
Spending too much on rewards can negatively impact the firms
financial stability, and hurt investor relations.
2. Mix refers to the composition of the reward package
matching the needs and preferences of applicants or
employees.
Offering stock options that vest in five years to a young, mobile
workforce, or free daycare to an older workforce is not consistent
with workers needs and preferences.
3. Distinctiveness refers to the uniqueness of the total reward
package.
Rewards with no special appeal and that do not set the organization
apart as distinctive do not present a compelling value proposition.

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Job Reward Dimensions
Amount refers to how much of it is received.
i.e., how much pay, what level of task variety
Differential is how consistent the reward is across different
employees.
e.g., all employees receive the same number of vacation
days, but merit bonuses range from 2% to 15% of base
pay
Stability is how reliable the reward is.
Is the reward the same all of the time, or does it change
(e.g., does it vary based on organizational performance or
business requirements?)
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Job Rewards Matrix
Table 4-13

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Strategic Staffing
Chapter 5 Forecasting and
Planning

Jean Phillips & Stanley Gully

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Workforce Planning
Workforce planning: the process of predicting an
organizations future employment needs and the availability
of current employees and external hires to meet those
employment needs and execute the organizations business
strategy.

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Workforce Planning Process
1. Identify the business strategy.
2. Articulate the firms talent philosophy and strategic staffing
decisions.
3. Conduct a workforce analysis. - forecast labour demand and
supply
4. Develop and implement action plans. Develop action plans to
address any gaps between labor demand and labor supply
forecasts.
The action plans should be consistent with the firms talent
philosophy, and can include recruiting, retention, compensation,
succession planning, and training and development.
Action plans can be short-term or long-term, depending on the
firms needs and the predictability of the environment.
5. Monitor, evaluate, and revise the forecasts and action plans. As
the environment changes, forecasts and action plans may need to
change as well.
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Forecasting
Given the uncertainty of forecasts, construct
estimates as a range, providing low,
probable, and high estimates.
Recalculate estimates as changes happen in
the organizations internal and external
environments and as the firms assumptions
and expectations change.

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Forecasting Business Activity
An organizations product demand directly affects its
need for labor
Locate reliable, high-quality information sources
within and outside of the organization to forecast
business activity
Types of business activity forecasts:
Seasonal
Interest rate (higher rates discourages capital investment; lower rates
= higher demand)
Currency exchange
Competitors
Industry and economic (GDP, industry forecasts)
Others (consumer spending, unemployment rate)

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Forecasting Labor Demand
It is a good idea to identify minimal as well as optimal
staffing levels when analyzing labor demand.
An organizations demand for labor depends on its forecasted
business activity and its business needs, which depend on its
business strategy.
Business needs can include things like:
Achieving the staffing levels necessary for generating a given amount
of revenue within a particular period of time (e.g., salesperson
staffing levels necessary to generate $5 million of net/new revenue
within 6 months)
Increasing staffing levels to execute a growth strategy
Decreasing staffing levels during a restructuring
Obtaining the new talents needed to create new products or provide
different services

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Staffing Ratios
The estimated level of business activity at a
firm can be converted into the number of
employees the company will need to attain
the desired level of productivity by using
staffing ratios.
A staffing ratio is a mathematical way of
calculating the number of employees a firm
needs to produce certain levels of output.
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Ratio Analysis
Assumes that there is a relatively fixed ratio
between the number of employees needed and
certain business metrics.
Using historical patterns within the firm helps to establish
a reasonable range for these ratios.
This process can be used for either justifying new
positions or demonstrating the need for layoffs.
Need consistent historical trends to calculate ratios.

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Possible Ratios
Production to employees
Revenue per employee
Managers to employees
Inventory levels to employees
Number of customers or customer orders to employees
Labor costs to all production costs
The percent utilization of production capacity to employees

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Scatter Plots
Scatter plots show graphically how two
different variables --- say revenue and
salesperson staffing levels --- are related.
They are used to determine what staffing
levels should be changed as a factor (variable)
changes.

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Publishing as Prentice Hall
Trend Analysis
Uses past employment patterns to predict future needs.
For example, if a company has been growing five percent annually for the last
eight years, it might assume that it will experience the same five percent
annual growth for the next few years.
Any employment trends that are likely to continue can be useful in
forecasting labor demand.
Because so many factors can also affect staffing needs, including
competition, the economic environment, and changes in how the
company gets its work done (e.g., automation might improve
productivity), trend analysis is rarely used by itself in making labor
demand forecasts.

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Judgmental Forecasting
Relies on the experience and insights of people in the organization to
predict future needs.
Top-down: organizational leaders rely on their experience and knowledge
of their industry and company to make predictions about what future
staffing levels will need to be. Top managers estimates then become
staffing goals for the lower levels in the organization.
In some cases, particularly when companies are facing financial difficulties or
restructuring, budgets may determine these headcount numbers.
Bottom-up: uses the input of lower-level managers in estimating staffing
requirements. Based on supervisors understanding of the business
strategy, each level provides an estimate of their staffing needs to execute
the strategy. The estimates are consolidated and modified as they move
up the organizations hierarchy until top management formalizes the
companys estimate of its future staffing needs into staffing goals.

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Return on Investment Analysis
Estimate the return on investment from adding a new position based on the
costs and outcomes resulting from that new hire.
First assign dollar values to the benefits you expect from a new hire for the
period of time most appropriate for the position and your organization.
How much revenue during the period will be directly generated as a
result of this position?
How much money per period will this position save your organization in
terms of increased efficiency, and how much value will it add in greater
productivity, quality, or customer service?
Then compare this amount with the cost of adding the new hire.
Compute the cost of hiring, including advertising the position,
interviewing, screening, travel, relocation, and training expenses.
Add this to the compensation for the new position during the time period
to get your initial investment.
Compare this amount with the value your company will gain to determine
the return on the investment of adding the new position.

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Forecasting Labor Supply
The external labor market consists of people who do not
currently work for a firm.
A firms internal labor market consists of the firms
current employees.

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Forecasting the Internal
Labor Market
To forecast internal talent resources for a position,
subtract anticipated losses from the number of
employees in the target position at the beginning of
the forecasting period.
These losses may be due to factors including promotions,
demotions, transfers, retirements, and quits. In tighter
labor markets when workers are harder to find, more
employees than usual may leave the organization to
pursue other opportunities than leave during looser labor
markets when jobs are less plentiful.
Anticipated gains for the position from transfers,
promotions, and demotions are then added to the
internal labor supply forecast.

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Transition Analysis
A statistical technique used to analyze internal labor markets
and forecast internal labor supply.
A simple but often effective technique for analyzing an
organizations internal labor market, which can be useful in
answering recruits questions about promotion paths and the
likelihood of promotions as well as in workforce planning.
Can also forecast the number of people who currently work
for the organization likely to still be employed in various
positions at some point in the future.
The analysis is best performed for a limited number of jobs at
a time to keep it easily interpretable.

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Internal Labor Market Forecasting Methods

Talent inventories: summarize each employees skills,


competencies, and qualifications
Replacement charts: visually shows each of the possible
successors for a job and summarizes their present
performance, promotion readiness, and development
needs
Employee satisfaction surveys to identify the potential for
increased turnover

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Forecasting the External
Labor Market
Organizations monitor the external labor
market in two ways.
The first is through their own observations and
experiences. For example, are the quality and
quantity of applicants responding to job
announcements improving or getting worse?
The second way is by monitoring labor market
statistics generated by others.

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Resolving Labor Supply/Demand Gaps
Action plans proactively address an
anticipated surplus or shortage of employees.
Understanding whether a shortage or surplus
of applicants is the result of temporary
factors or whether it reflects a trend that is
likely to continue is important because
different staffing strategies are appropriate for
each.

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Temporary Talent Shortage
Because higher salaries cost the organization more money
throughout the new hires tenure with the company, hiring
inducements that last only as long as the talent shortage does
are often better.
Companies often turn to more expensive recruiting methods
such as search firms, or lower their hiring standards so that
more recruits are considered qualified.
Neither of these strategies is guaranteed to work
More expensive recruiting methods may quickly drain a recruiting budget
without resulting in an acceptable hire
Lowering hiring standards decreases the quality of the companys
workforce, which may not be acceptable
Options include offering hiring incentives such as sign-on
bonuses and retention bonuses such as stock options or cash to
be paid after the employee has successfully worked with the
company for a certain period of time.

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Persistent Talent Shortage
If it is likely that a worker shortage will last a
number of years, an organization must:
Reduce its demand for the talents that will be in
short supply
By increasing their use of automation and technology,
and by redesigning jobs so that fewer people with the
desired talent are needed.
Outsourcing

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Temporary Employee Surplus
If slowdowns are cyclical or happen frequently, using
temporary or contingent workers who are the first to be let
go when business slows can help to provide a buffer around
key permanent workers.
Temporary layoffs may need to last more than six months to
be cost-effective due to severance costs, greater
unemployment insurance premiums, temporary productivity
declines, and the rehiring and retraining process.
Losing the investments the organization has already made in hiring
and training the laid off workers can also be costly.
Alternatives to layoffs include across-the-board salary cuts
or a reduction in work hours, or reallocating workers to
expanding areas of the business.

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Permanent Employee Surplus
Early retirement incentives, layoffs, and not filling vacated
positions can all reduce an employers headcount, but with a
cost.
Early retirement programs can result in the most skilled and
productive employees leaving the organization.
Layoffs can damage workforce morale and hurt the firms reputation
as an employer.
Not filling open positions can leave key positions in the organization
vacant or understaffed.
Action plans to address a persistent employee surplus may
also involve reassignments, hiring freezes, and steering
employees away from careers in that position to reduce the
need for future layoffs.
Retraining employees to fill other jobs in the firm can help
bring labor supply and demand into balance.

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Staffing Planning
The three questions that need to be answered
are:
1. How many people should we recruit?
Staffing yields: the proportion of applicants moving from
one stage of the hiring process to the next
Hiring yields: the percent of applicants ultimately hired
(also called selection ratios)
2. What resources do we need?
Workload-driven forecasting use historical data on avrg
number of hires per recruiter over given period of time
Staffing efficiency driven forecasting: the total cost
associated with the total compensation being hired
3. How much time will it take to hire?
Produce a timeline
Continuous recruiting can shorten the hiring timeline

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External Cost Per Hire
External cost per hire: six basic elements account for 90% of
the costs to hire
To calculate the cost of external hiring:
1.Advertising expenses
2.Agency and search firm fees
3.Employee referral bonuses
4.Recruiter and applicant travel costs
5.Relocation costs
6.Company recruiter costs (prorated salary and benefits if the recruiter
performs duties other than staffing)
Saratoga Institute adds an additional 10% to cover miscellaneous
expenses including testing, reference checking, hiring manager time,
and administrative support.

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Internal Cost Per Hire
Internal cost per hire includes four elements:
1.Internal advertising costs
2.Travel and interview costs
3.Relocation costs
4.Internal recruiter costs

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Strategic Staffing
Chapter 6 Sourcing: Identifying
Recruits

Jean Phillips & Stanley Gully

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Sourcing
Definition: identifying and locating high
potential recruits
Done for internal as well as external job
candidates
Involves the analysis of different possible
sources of recruits to identify those best able
to meet the firms staffing goals

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Types of Job Seekers
Active job seekers: people who need a job and are
actively looking for information about job openings
Semi-passive job seekers: people who are interested
in a new position but only occasionally look actively
for one
Passive job seekers: currently employed and are not
actively seeking another job, but could be tempted
by the right opportunity
Many high-quality candidates are usually in this group,
although it may be difficult to find them and interest them
in your job opportunity

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Recruiting Sources
Internal recruiting sources: locate people
who currently work for the company who
would be good recruits for other positions
External recruiting sources: target people
outside the firm

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Internal Recruiting Sources
Succession management - evaluating,
developing, and preparing employees to
assume other roles in the future
Talent inventories record of employees
past performance, education, experience,
etc.
Employee development
Internal job posting systems
Employee referrals
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Some External Recruiting Sources
Employee referrals
In-house recruiters
Newspapers and other written media
Online job boards
Search firms
Professional associations
Observation
Resume Dataase

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More External Recruiting Sources
Job fairs
Acquisitions and mergers
Raiding competitors
Offshore labor
Networking
Schools
Previous employees
Non-U.S. citizens
Walk-ins
Creative sourcing

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Internet Data Mining
Boolean searches
Flipping or flip searching
Web crawlers
Networking sites

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Creating a Sourcing Plan
1. Profile desirable employees to identify promising
sources
Identify what desirable talent and successful current
employees in targeted jobs like to do and how you
might reach them if you were to try to recruit them now
Using surveys or focus groups, ask where do they like to
go, what media do they use, what organizations do
they belong to, and what events do they attend? What
web sites and other sources would they use if they were
to look for another job? How did they first learn of their
first job in your firm?

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Creating a Sourcing Plan
2. Perform ongoing recruiting source
effectiveness analyses by tracking
Recruiting Yield Analysis tracks recruiting source
that produced each applicant and evaluates each
recruiting source on basis of relevant criteria

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Creating a Sourcing Plan
3. Prioritize recruiting sources based on staffing
goals and employee profiles
Prioritize recruiting sources based on staffing goals
and the results of the recruiting source effectiveness
analysis
Referring to the last slide:
If quality is the most important goal, college hiring would
be the preferred source
If hiring speed is more important than quality, employee
referrals would be given priority to source the needed
engineers

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Sourcing Nontraditional Applicants
Workers with disabilities
Older workers
Welfare-to-work

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Global Sourcing
Integration: the coordination of a single global
staffing strategy with the organization retaining
adequate controls over local operations
Differentiation: the need to acknowledge and
respect the diversity of local country cultures and
expectations and thus giving some latitude to local
managers to tailor the strategy to meet the needs of
their location
Local employment agencies can be a useful source of
guidance in terms of information on the
characteristics of the local labor force

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Geographic Targeting
Definition: sourcing recruits based on where they
live
Can focus on the local labor market
Can focus on labor markets in locations similar to the
organizations location in terms of city size, cost of living,
climate, recreational opportunities, etc.
Can target individuals likely to find the firms location
attractive
Lower-level positions in an organization are
typically filled from the local labor market, and the
geographic boundaries tend to widen as the
position moves up the organizations hierarchy

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Strategic Staffing
Chapter 7 Recruiting

Jean Phillips & Stanley Gully

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Recruiting
Definition: helping an organization employ a
talented group of employees who contribute
to the organizations business strategy
Includes converting leads into applicants
Includes generating interest in a company + job
Includes persuading candidates to accept job
offers
Can be source of sustainable competitive
advantage
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Applicant Reactions
An important goal of recruitment is to
give every applicant a positive feeling
about the organization
Both parties are pursuing a business
relationship
Perspectives of both parties are important
Firms expect applicants to be sincere and honest;
applicants expect employers to consider them on their
own merits and make a sincere effort

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Perceptions of Fairness
Three Types of Fairness
Distributive: the perceived fairness of the hiring or
promotion outcome
Did you get the job or promotion? Yes = more fair
Only type of fairness that organizations have little control
of
Procedural: beliefs that the policies and procedures
that resulted in the hiring or promotion decision were
fair
Respect applicants privacy, avoid delays, use job-related assessments,
give fair opportunity to perform
Interactional: fairness of the interpersonal treatment
and amount of information received during the hiring
process
Honesty, respect, recruiter warmth, and informativeness

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Spillover Effects
Definition: indirect or unintended
consequences of an action
If candidates are forced to wait extended periods
for pre-scheduled interviews, met unprepared and
distracted interviewers, felt that the selection
process was unfair, and were not made to feel
important or welcome, will they still fly your
airline or buy your products? Apply for another
job with you in the future? Tell their friends and
family how impressed they were with your firm
and influence them to become customers or job
applicants?
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Recruitment Continues
Recruiting does not end until person is
removed from consideration or is hired
and reports for work.
Recruiting must keep employee
interested

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The Recruiter
Graduates choose or dont choose companies b/c of recruiter.
Unemployed ppl may persist a negative encounter with a recruiter
but passive job seekers will be less likely to do so.
Recruiters competence and recruiting delays send signals to
applicants.

Needs to have:
Familiarity with the job and organization
Trustworthiness and credibility
Reflect what it is like to work for the company
Good listening and communication skills
Good social skills
Intelligence
Extroversion, enthusiasm, self-confidence

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Signaling
Recruiters traits and behaviors may act as signals of
the company and job.
A CEO involved in recruiting may signal a jobs
importance
A demographic minority recruiter may signal the
firms demographic diversity

Similarity to recruiter does not necessarily lead


to more favorable applicant attitudes but it
does have impact on how attractive a job is.
The key is the recruiters ability to relate to a
recruits value system and motivation.

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Reviewer Profile
Profile of individual recruiters who
have been the most effective in the
past.
Includes skills, characteristics, backgrounds
Helps firms figure out who should do the
recruiting and what the job specifications should
be for different recruiters.

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Types of Recruiters
Internal staff/managers (can be impractical to
take out of current job but know jargon)
Internal recruiters (can answer broad
questions but may not know jargon)
External recruiters (expensive, lack depth of
knowledge, have extensive network)

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Factors Influencing Recruiter
Effectiveness
Labour market surplus vs. shortage
Size and visibility of organization
Job characteristics
Hiring managers are they on board?
Coworkers

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Recruiter Training
Different recruiters must look for same competencies, values,
and experience or qualified applicants will be overlooked
Recruiting knowledge tailoring pitches to specific groups
Interpersonal skills reflect values of company, project
warmth and empathy, listening and communication skills
Presentation skills
Cultural skills
Organizational goals and recruiting objectives
Legal issues
Multiple assessments assess candidates for other roles

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Recruiter Goals & Feedback
Strategic metrics:
New hire job performance / failure rate; turnover of
new hires; manager / new hire satisfaction; training
success
An organization usually has specific goals for
recruiters that are consistent with firms
objectives and staffing strategies:
Employer branding
Candidate screening
Generating candidates interest
For a recruiter to pursue the organizations goals:
The organizations goals must be known by the recruiter and be
consistent with the recruiters personal goals
The recruiter must receive feedback in relation to these goals

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Recruiter Incentives
The behaviors and outcomes that are
rewarded are the ones most likely to be
pursued by recruiters

Align rewards with staffing goals

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Organizational Image
Definition: a general impression based on both feelings and
facts.

The more favorable a companys image, the more people are


likely to consider the organization attractive as an employer
and state a willingness to respond to its recruitment
advertisements.

Organizational images differ across subgroups of individuals.


College undergraduates have malleable images of orgs.

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Employer Brand
Definition: attitudes toward and perceptions of the
organization as an employer

How an organization is reputed to treat applicants and


employees is likely to have a particularly strong effect on
applicant attraction.

Newer or lesser-known organizations with weak or


nonexistent images among job seekers may have greater
difficulty attracting recruits using passive recruitment sources
such as newspaper advertisements than organizations that
are more widely known and favorably thought of.

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Nature of the Recruiting Message
Different types of recruiting materials are used to attract
the attention of potential applicants and induce them to
apply
Message content should appeal to the goals and values of
the targeted recruits
Ex. Brochures that highlight diversity may attract minorities
Should be informative, address a range of job or organizational
characteristics, and provide specific information about those
characteristics.
General ads appeal to wide variety of applicants and increase
number of unqualified candidates
Unusual or extreme info tends to receive greater attention
Employment opps that do not meet minimum Non-
compensatory screening factors are rejected by job seekers
The jobs location, the type of job, pay, etc.

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Realistic Job Previews
Definition: provide both positive and potentially negative
information to job candidates.
Rather than trying to sell the job and company by presenting
the job opportunity in the most positive light, realistic job
previews strive to present an honest and accurate picture.
Three functions of realistic job previews:
Self-selection (can determine if they are good fit)
Vaccination (allows them to develop coping mechanisms to deal with
unpleasant parts of the job)
Commitment to the choice (they cannot claim they didnt know)

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Realistic Job Previews

Useful for reducing turnover when employees claim the job


wasnt what they expected

Can be used to counter inaccurate employer images (ex.


McJob)

Focus on non-visible aspects (fast pace, performance


expectations, benefits)

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Self-Assessment Tools
Determine if a candidate is a good fit.

If bad fit, applicant will self-select out

Self-assessments should be anonymous and


not used for selection

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Timing of Information

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Achieving Recruitment Consistency
Develop a Recruiting guide
Formal document that details the process to be followed
in recruiting for an open position.
Clarifies company policies and procedures relating to
appropriate budgets, activities, timelines, responsible staff,
legal issues, and the specific steps to be taken in recruiting
for the position.
Clarifies roles of employees in recruitment process and
ensures that all relevant policies and procedures are
followed

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EEOC Best Practices
in Recruiting
Establish a policy for recruiting and hiring
Engage in short-term and long-term strategic planning.
Identify barriers to equal employment opportunity.
Specify the firms recruiting goals.
Make a road map for implementing the plan.
Evaluate the firms managers on the progress they make
toward the companys equal employment opportunity goals

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EEOC Best Practices
in Recruiting
Ensure that there is a communication network notifying interested
persons of opportunities,
Communicate the competencies, skills & abilities required for
available positions.
Communicate about family-friendly and work-friendly programs.
Participate in career and job fairs and open houses.
Work with professional associations, civic associations, and
educational institutions to attract people with protected
characteristics.

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EEOC Best Practices
in Recruiting
Provide recruiters, employees, and search firms with
instructions to recruit diverse candidate pools and expand the
companys search networks.
Partner with organizations dedicated to serving diverse
groups.
Use internships, work-study, co-op, and scholarship programs
to attract
Develop and support educational programs
Become more involved in the community

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Strategic Staffing
Chapter 9 Assessing External
Candidates

Jean Phillips & Stanley Gully

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External Assessment Goals
Identify job candidates who would make good hires and
screen out those who would make poor hires
Maximize fit with organization culture, staffing goals, and
business strategy
Person-job fit: persons ability fits with demands of the job; persons
desires and motivations fit with attributes and rewards (primary focus
of most staffing)
Person-group fit: match btwn individual and his or her work group, incl
the super
Person-organization fit: fit between individuals values, beliefs,
personality and the values, norms, culture of the organization has
impact on attitudes and citizenship behaviours (behaviours ppl engage
in that go beyond their job requirements)
Person-vocation fit: fit between persons interests, abilities, values and
personality and his or her chosen occupation, regardless of the
employer
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External Assessment Goals
Maximize return on investment
Support talent philosophy and HR strategy
Investors: more interviews and careers section on website
Assets: efficient candidate assessment and minimize meetings
Establish and reinforce employer image
Ensure legal compliance

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Complementary and Supplementary
Fit
Complementary fit: when a person adds
something that is missing in the organization
or work group by being different from the
others
Supplementary fit: when a person has
characteristics that are similar to those that
already exist in the organization

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Possible Assessment Outcomes

False positives expensive for high-risk jobs. False negatives expensive for
highly competitive jobs.

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Dollar Return on Investment

Bad hires can actually cost the


organization money.
The longer the good performers stay;
greater ROI

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Identify Development Needs
Assessment tests can also identify new hires
developmental needs.
If a top candidates assessment scores show that his or her
organization and time management skills are good but
their customer service skills need further development,
post-hire training can improve these skills.
Some assessment methods even identify applicants
preferred learning styles, which can decrease training
time, improve training effectiveness, and increase
retention.

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Hiring Stages
When people first apply for a job, they are
considered job applicants and are evaluated against
the minimum acceptable criteria for the job, such as
relevant education and skills (screening assessment
methods).
Those applicants passing the initial screen are
considered job candidates and are assessed in more
depth using evaluative assessment methods
A series of evaluative assessments are often performed, with the
lowest performing candidates being screened out after each phase.
Job offer made from group of finalists after passing
contingent assessment methods (background check,
drug screen, etc.)

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Some External
Assessment Methods
Screening Methods
Resumes and cover letters (ppl may lie)
Job applications and weighted application blanks
Biographical information
Telephone screens
Evaluative Methods
Cognitive and noncognitive (psychomotor, sensory, physical) ability tests
Values assessments
Personality assessments
Integrity tests written tests of honesty, trustworthiness, reliability, character
Polygraph tests
Job knowledge tests
Interviews (structured and unstructured)
Situational judgment tests measure noncognitive skills
Graphology determine personality from writing
Job simulations can be verbal or motor, may differ in fidelity (how realistic)
Work samples
Reference checks asking scenarios are better
Contingent Methods
Medical and drug tests, and background checks (must be relevant to job)
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Comparison of Commonly
Used Assessment Methods

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Biodata
when job app items are used to predict job success
Interests, work experiences, training, and education
Assesses achievement orientation and preferences for group vs.
individual work
Allows people to describe more personal aspects and their experiences
and successes in social, educational, occupational pursuits

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Cognitive Ability Tests
Computerized, paper and pencil test that assesses mental ability
High level of mental ability = acquire and use new info effectively
Cognitive ability important in complex jobs, when individuals are new to a job,
and when there are changes in the workplace that require new ways of doing
things
Cultural differences tend to exist and applicants may see as not relevant

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Personality Assessments
focus on big 5: extraversion, conscientiousness, emotional
stability, agreeableness, openness to experience

Conscientiousness (most consistent) and emotional stability predict


performance for most jobs

Extraversion jobs where interacting and influencing others is


important (Ex. Managerial)

Agreeableness interpersonal interactions (helping, nurturing,


cooperating)

Openness creativity and ability to adapt to chg.

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Publishing as Prentice Hall
Steps in Crafting a
Structured Interview

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STAR Technique
A technique for answering behavioral
interview questions:
Situation or Task: describe in enough detail for
the interviewer to understand the situation
and what you needed to accomplish
Action that you took
Results that you achieved

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Evaluating an Assessment Methods
Effectiveness
Validitywhether the assessment method predicts relevant
components of job performance
Return on investmentwhether the assessment method
generates a financial return that exceeds the cost associated
with using it
Applicant reactionsincluding the perceived job relatedness
and fairness of the assessment method; perceiving sufficient
opportunity to perform, or believing that one had an
adequate opportunity to demonstrate ones ability to do the
job, influences perceptions of the fairness of the selection
process, particularly if the person is rejected for the job

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Evaluating an Assessment Methods
Effectiveness
Selection ratiohaving a low selection ratio means hiring only
a few applicants, which allows an assessment method to have
maximum impact in improving the performance of the people
hired
Usabilitypeople in the organization must be willing and able
to use the method consistently and correctly
Adverse impactan assessment method is more effective if it
predicts job performance and other important hiring
outcomes without discriminating against members of a
protected class

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Reducing Adverse Impact
Use targeted recruitment to increase the numbers of
qualified minority applicants
Expand the definition of job performance to include
areas of such as commitment and reliability
Combine predictors test that discriminates against
men + test that discriminates against women
Using well-developed simulations rather than
cognitive ability tests
If selection ratio low, use low adverse impact
processes first
Use banding bucket the candidates into categories
(Decreases validity)

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Assessment Plan
The assessment plan describes:
Which assessment method(s) will be used
In what sequence
What weight each assessment will receive
Characteristics that will be trained after hire are not assigned
to any assessment method, but any existing qualifications
required to qualify for the training program should be listed.

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Choosing Assessment Methods
Which methods best assesses applicant
characteristics or competencies
identified as important during the job
analysis
Often necessary to use more than one
assessment method.

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Strategic Staffing
Chapter 10 Assessing Internal
Candidates

Jean Phillips & Stanley Gully

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Internal Assessment
The evaluation of a firms current employees
for training, reassignment, promotion, or
dismissal purposes

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Internal Assessment Goals
Accurate assessment
Maximize return on investment
Positive stakeholder reactions fairness, ease
of use, speed
Support talent philosophy and HR strategy
Investors: More feedback into assessment process
to improve promotability
Assets: Less likely to do this
Establish and reinforce HR strategy and
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Internal Assessment Goals
Identify employees development needs
Assessing ethically
Legal compliance
Evaluating fit with firms other jobs
Assessing employees to enhance firms
strategic capabilities
Gathering info to make downsizing decisions

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Internal Assessment Methods
Skills inventories
List that outlines which employees have certain
skills, competencies, and job characteristics
Mentoring programs
Performance reviews of task and interpersonal
behaviors
Task acquaintance: amt and type of work contact
evaluator has with person being assessed

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Internal Assessment Methods
Multi-source (360-degree) assessments
Job knowledge tests
Assessment center methods
Clinical assessments (expensive)
Trained psychologists subjectively analyze
candidates attributes, values, and styles in
context of a job (thru personality tests, direct
observation, interviews)

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Nine Box Matrix
Nine box matrix: a combined assessment of an
employees performance and potential.
Is a method for displaying judgments made about
employees, not for making those judgments.
It can help companies understand the overall
strength of their workforce, but only if the
employees were accurately evaluated in the first
place.

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Nine Box Matrix

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Career Crossroads Model
Focuses on managerial and leadership positions rather than
technical or professional work.
Each level of leadership requires different sets of
competencies and values. Leaders values and priorities must
change.
Starting Point: Managing yourself
Passage 1: Managing others
Passage 2: Managing managers
Passage 3: Managing a function
Passage 4: Managing a business
Passage 5: Managing multiple businesses
Passage 6: Managing the enterprise

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Succession Management
Succession management: an ongoing process of
systematically identifying, assessing, and developing
an organizations leadership capabilities to enhance
its performance
Succession management plans: written policies that
guide the succession management process
Replacement planning: the process of creating back-
up candidates for specific senior management
positions

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Steps in Developing a
Succession Management System

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What Makes Succession Management
Effective?
Understanding the nature of talent gaps with
enough time before the talent is needed
Standardized process and is usable by different
business units.
Align with other human resource processes including
recruitment, selection, rewards, training, and
performance management.
Continually evaluate and improve the system.

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Succession Management Tips

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Career Planning
Career planning: a continuous process of self-assessment and
goal setting.
Goals, preferences, capabilities of employees are assessed
and compared with HR strategy and succession plan
Matches or mismatches discussed with employee as well as
career development opportunities

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Career Development Tools
Assessment centers simulate the position an employee is interested
in pursuing and whether or not they are a good fit for the job.
Career counseling and career development workshops help
individuals understand the jobs that best match their motivations
and talents, and help them develop the skills they need to
successfully compete for these opportunities.
Training and continuing education skills in training in a more
formalized educational setting.
Job rotation, challenging assignments and mentoring
Sabbaticals used to reenergize employees
Challenging and developmental job assignments can enhance key
competencies and build experience in important job tasks before
the individual assumes the position.

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Making a Career Development Plan
Assess yourself

Set goals

Develop an action plan

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Evaluating Internal Assessment
Validitywhether the assessment method predicts relevant
components of job performance

Return on investmentwhether the assessment method


generates a financial return that exceeds the cost
associated with using it

Applicant reactionsincluding the perceived job


relatedness and fairness of the assessment method

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Evaluating Internal Assessment
Selection ratiohaving a low selection ratio means hiring
only a few applicants, which allows an assessment method
to have maximal impact in improving the performance of
the people hired

Usabilitypeople in the organization must be willing and


able to use the method consistently and correctly

Adverse impactan assessment method is more effective if


it predicts job performance and other important hiring
outcomes without discriminating against members of a
protected class.

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Strategic Staffing
Chapter 11 Choosing and Hiring
Candidates

Jean Phillips & Stanley Gully

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Combining Assessment Scores
When using more than one assessment method , a
candidates scores must be meaningfully combined
Two ways of combining:
1. Multiple hurdles
2. Compensatory approach

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Multiple Hurdles
Multiple hurdles: candidates must receive a passing
score on an assessment before being allowed to
continue
Costly and takes more time
Used when cost of poor performance is high
For example, when safety is at risk

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Compensatory Approaches
Compensatory approach: high scores on some
assessments can compensate for low scores
on other assessments.

This approach is less useful for jobs in which


specific talents must exist at a minimum level.

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Executing the
Compensatory Approach
Unit weighting: equally weighting all assessments
Rational weighting: experts assign a different subjective
weight to each assessment score (experts must agree on
weight)
Statistical weighting: using a statistical technique, such as
multiple regression, to assign a different weight to each
assessment score (must have large sample size and small # of
assessments to work)
Multiple regression: the most scientific approach to determining how
to weight each assessment in computing a candidates overall score

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Combining Multiple Hurdles and
Compensatory Approaches
Often, some job requirements are essential to job
performance but others can compensate for each other.

Final Choice
Cut score: a minimum assessment score that
must be met or exceeded to advance (may
increase false negatives)
Rank ordering: ranking candidates from highest
to lowest scoring.
Banding: Clumping ppl in categories and
assigning scores
Hiring manager or team should make final decision

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Job Offer Strategies
Particularly for firms with a talent philosophy of viewing
employees as investors rather than assets, the job offer
should maximize the employee value proposition offered to
the finalist (balance btwn intrinsic/extrinsic rewards)
Before extending a job offer, verify the truthfulness of any
statements made by the applicant that were relied on
Grade point average, prior work experience, prior salary, etc.
Identify a backup hire in case your first choice does not take
the job.

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Compensation Decisions
Low job offer: below-market rewards package
(inappropriate for key positions)
Competitive job offer: total rewards package
is competitive with the market
High job offer: total rewards package is above
the market
Maximum job offer: the companys best and
final offer
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Employment Contract
Implicit employment contract: an understanding that
is not part of a written or verbal contract.
Because binding contracts for employment or for
future compensation can be created verbally, great
care should be taken during discussions with
prospective new hires.
To be legally binding and enforceable, any contract
must consist of an offer that is accepted on the terms
offered. Something of value (consideration), usually
promises of pay in exchange for promises for labor,
must also be exchanged.
Offer letter: written letter describing in clear and
precise terms exactly what the compensation
structure and terms of employment will be.
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Employment Contracts
Statements on a job application blank (e.g., a
statement that providing false information is
grounds for termination), statements in
employee handbooks, and statements in other
documents may become interpreted as
enforceable contracts.
Often focus more on termination issues than
on employment.

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Additional Agreements
First rights to their inventions and patents
Nondisclosure agreements
Noncompete clauses / restrictive covenants
Nonsolicitation agreements
It is a good idea to consult legal counsel before
preparing any contract forms or statements on
application forms

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Presenting a Job Offer
Should reinforce the company image and the
positive impression formed by the candidate
during the hiring process
While the candidate is considering the offer, it
is a good idea to stay in contact with him or
her to reinforce your enthusiasm

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Negotiable Job Offer Elements

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Job Offer Negotiation Tips
Do not look at a negotiation as an either/or proposition
Identify what you can and cannot part with
Try to identify and use sources of leverage
Suppress your emotions
Know your BATNA
Take time to evaluate the offer
Be realistic
Practice your negotiation skills
Document and be prepared to discuss your skills and
accomplishments
Be appreciative and respectful
Remember that employment is an ongoing relationship

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Closing the Deal
For job offer acceptances:
Ensure that the finalist followed the proper procedures,
accepted the job offer as written, and responded before
the deadline.
Congratulate the new hire and express your enthusiasm
about having him or her onboard.
It can also be helpful to ask what persuaded the person to say yes
Stay in contact with the new hire and encourage his or her
supervisor and coworkers to do the same.
Once a job offer has been accepted, the recruiters role is
to begin building the new hires commitment to the
company and enhancing his or her ability to succeed on
the job.

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Closing the Deal
When the company rejects a candidate:
Do so respectfully.
Distributive fairness will be perceived as low, and to reduce
negative spillover effects, efforts should be made to
enhance the procedural and interactional fairness
perceptions of rejected applicants.
Negative reactions of rejected internal candidates may be
reduced by explaining why they were not chosen, and
what they can do to be more competitive for the position
in the future.
Development plans can be created to help the rejected employees
enhance their experience and qualifications.

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Closing the Deal
When a finalist rejects a job offer:
Try to find out why and whether an enhanced
offer might be acceptable.
Promptly and respectfully acknowledge the job
offer rejection.
If a rejected applicant is qualified for a different
position or if they might be hirable in the future
for the job to which he or she applied, requesting
permission to retain the applicants information
for a period of time can help to build a talent
pipeline and facilitate the future sourcing and
recruiting of pre-qualified applicants.

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Reneging
Reneging: backing out of a contract after it is accepted.
Employers sometimes renege on extended and even accepted
job offers due to a changing business environment,
unexpected business slump, reorganization, being sold, or
shut down.
Often companies that renege on a job offer will give the job offer
receiver compensation for breaking the contract
Instead of reneging, it may be possible to defer the new hires start
date and offer partial salary in the interim, or hire the individual as a
consultant and convert him or her to a full-time hire as soon as
possible (e.g., when a hiring freeze is lifted).
Treating the new hire with respect can reduce feelings of
inequity and anger, and keep the individual interested in
working for the firm in the future.

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Strategic Staffing
Chapter 12Managing Workforce
Flow

Jean Phillips & Stanley Gully

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Time to Productivity
Many organizations invest more money in
hiring new employees than in helping them
acclimate and become productive.
On average, the time for new external hires to
achieve full productivity is eight weeks for
clerical jobs, 20 weeks for professionals, and
more than 26 weeks for executives.

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Orientation and Socialization
Orientation (or onboarding): the process of completing new hires
employment-related paperwork, and familiarizing them with their
jobs, coworkers, work spaces, work tools, and the companys
policies and benefits
Different from training: provides employees with knowledge/skills to do job
Socialization: a long-term process of planned and unplanned,
formal and informal activities and experiences through which an
individual acquires the attitudes, behaviors, and knowledge needed
to successfully participate as an organizational member
goal of socialization is to get new employees up to speed on
their jobs and familiarize them with the organizations culture,
or the norms, values, behavior patterns, rituals, language, and
traditions

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Socialization
Can speed up the time it takes new hires to reach the point at
which they start generating a return on the companys
investment in them.
Can improve employee retention and employee engagement,
Prepares employees to perform their jobs effectively, fit into the
organization, and establish productive work relationships.

3 phases: anticipatory socialization (interacting w/ company reps),


encounter (training + learning), settling in (evaluation of
performance and potential career opps within the company

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Socialization Choices

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Effective Socialization
Should actively involve new employees, encourage them to
ask questions, and clarify their role in business strategy
execution.
Helpful managers and peers can enhance employees learning
of the new job.
.
Research suggests that socializing new employees as a group,
using formal activities and materials in a predetermined order
within a specified time frame, giving them access to role
models or mentors, and providing social support enhance
newcomer loyalty, reduce turnover, and increase
commitment, job satisfaction, task mastery, and values
congruence.

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Managing the Flow
of the Workforce
Having the right people in the right jobs to
execute business strategy requires effectively
managing turnover and retention, succession
management, redeployment, and separations.

Optimal turnover: turnover level that produces


the highest long-term levels of productivity

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Turnover

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Why Top Performers Leave

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Identifying Turnover Causes
Exit interviews: asking departing employees why
they are leaving to acquire information that can
be used to improve conditions for current
employees
Should not be done by bosses of employee
Train the interviewers
Wait. Dont do it right away

Employee satisfaction surveys can identify


problems that can be addressed to prevent
additional turnover
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Retention Strategies

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Retention During Mergers
and Acquisitions
Create financial agreements with key talent that
serve as golden handcuffs and create mobility
barriers.
Financial incentive packages such as retention
bonuses or stock options that mature over time can
retain essential employees,
Companies can also increase the value of severance
packages offered to workers who stay until a merger
or acquisition is completed

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Managing Succession
Succession plans need to support the organizations long-term
direction, growth, and planned change, and should enable an
organization to have the right people in the right place at the right
time to execute the business strategy.

Mobility policies: specify the rules by which people move between jobs
within an organization and clearly document the rules for opening
notification, eligibility qualification, compensation and advancement,
and benefit changes related to advancement.
Should be well developed, clearly communicated, and perceived as
fair by employees.

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Workforce Redeployment
Workforce redeployment: the movement of
employees to other parts of the company or to other
jobs the company needs filled to match its workforce
with its talent needs.
Matching employees expertise and knowledge to
customers needs and deploying the right people is the
same way a supply chain deploys assets.
For firms trying to maximize the efficiency of their
workforce, which is particularly important for companies
pursuing a low-cost strategy, workforce optimization is
critical.

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Involuntary Employee Separations
Downsizing: permanent reduction of employees
intended to improve the efficiency or effectiveness of
the firm.
Usually done in response to a merger or acquisition,
revenue or market share loss, technological and industrial
change, new organizational structures, and inaccurate
labor demand forecasting.
Downsizing is a popular intervention for organizations
looking to improve flexibility, reduce bureaucratic
structure, increase decision-making efficiency, and
improve communication.
Private sector employers often downsize to reduce costs to
maximize shareholder returns, and to remain competitive
in an increasingly global economy.
Public sector downsizings are driven by budget reductions
and technology improvements that allow fewer workers to
do the same amount of work.
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Downsizing Targeting Methods

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Effective Downsizing
Fully planning the downsizing is important to reduce the negative
consequences the downsizing has on employees and the company.
Unintended outcomes of a downsizing include:
Increased costs from voluntary turnover, training, and consultants
Reduced shareholder value
Decreased efficiency due to the loss of expertise
Reduced morale and motivation (waves of downsizing are the worst)
Increased absenteeism and turnover of desirable employees due to
stress and uncertainty
Lower employee trust in the company
A damaged reputation as an employer
When a companys employees take advantage of unemployment
insurance, the companys future premiums rise
Higher cost of attracting top talent after a downsizing

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Survivor Syndrome
Survivor syndrome refers to the emotional effects of the
downsizing on surviving employees, during and after a
downsizing.
These effects include fear, anger, frustration, anxiety, and mistrust, which
can threaten the organizations survival.
Survivors often are preoccupied with whether additional layoffs
will occur, and feel guilty about retaining their jobs while
separated coworkers are struggling.
Can lead to a variety of adverse effects including higher turnover, lower
commitment and loyalty, and less flexibility among surviving employees.
Although some studies suggest that survivors guilt leads to
increased effort, other studies suggest that job insecurity
reduces productivity.

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Layoffs
Layoff: temporary end to employment.
Employers tend to dislike layoffs compared to other downsizing methods,
in part because they are forced by law (in the case of most public sector
employees) or by bargaining agreements to employ seniority-based
criteria.
This does not guarantee that the right competencies will remain in the and
often means the retention of the most expensive employees.
Layoffs also increase employee health problems and withdrawal
behaviors.
Layoffs often have a negative impact on employee diversity, since women
and minorities tend to be disproportionately affected by seniority-based
layoff policies.
During a layoff, career transition assistance is usually provided to
employees along with job placement and training assistance, severance
pay, and continuation of benefits such as health insurance for a period of
time.
Layoffs have a negative impact on a firms reputation that is significantly
stronger for newer than for older firms.

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Some Layoff Alternatives
Attrition due to retirement, death, or resignation
Hiring freeze: not hiring any new employees
Early retirement incentives: allow retirement with full or reduced pension
benefits at an earlier age than normal
Buyout incentives: a lump sum payment to encourage employees to leave
voluntarily
Leave without pay
Flexible work arrangements
Workforce redeployment
Cross training and retraining
Reducing work hours and/or pay
Sharing company ownership with workers in exchange for lower pay
Increasing the use of temporary or contract employees who are let go
rather than laying off core workers

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Best Downsizing Practices
Senior leadership should play a vital role
Frequent two-way communication
Involve the right people in downsizing planning
Identify work processes that will not be needed in the future
organization
Incentives such as early retirement and buyouts work well
and are popular with employees
Using multiple strategies and techniques to accomplish goals
for downsizing helps to leverage the outcome
Provide career transition assistance to both separated and
surviving employees
Monitor progress
Successful downsizing depends on the survivors trust,
fairness perceptions, and belief in firms future

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Discharging Employees
May happen immediately after a policy
violation or other job misconduct (e.g., a
safety violation, failure to renew a
professional license, etc.), or after a long
pattern of poor performance
it is important to document the termination
and keep thorough and accurate records
regarding the cause of the termination.
Usually done best after progressive discipline

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Discharging Employees
Having terminated (or laid off) employees sign a severance
agreement that includes a release stating that the departing
employee gives up some or all rights to sue you can reduce
the risk of future litigation.
Employee releases are most often used when a company
does not have proper documentation to fire an employee
but wants to end the employment relationship and reduce
the possibility of a lawsuit.
Must have consideration - usually money beyond any
standard severance agreement; the employee needs to be
given appropriate time to consider the offer and even
change his or her mind after signing it; and the employee
should be able to negotiate some of its contents to show
that it was willingly signed.

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Common Termination Errors
Doing it publicly
Writing a positive letter of reference after a termination for
cause (this opens the company to charges of negligent
referral)
Trying to document a termination for a just cause case that
doesnt exist
Firing an employee after a merit raise or favorable
performance review
Stating that the person conducting the termination meeting
disagrees with the termination
Juries have also looked unfavorably at terminations that were
done at end of a work day or work week, after the employee
returns from a business trip, or at beginning of holiday

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Termination Tips
Remain impartial, calm, and in control of the
conversation; be respectful
Listen to employee requests for severance terms, but
reserve final decisions for a later time;
Be clear and dont send mixed messages
repeat yourself if you feel your message is not being
heard
Dont give career advice
dont say laid off because it implies the possibility
of return
Hold the meeting in a private, neutral location

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Termination Tips
Do not engage in argument or make promises
Discuss the effective termination date, any severance
package, etc.;
Be aware of legal compliance issues
Write up an accurate record of the termination
interview and provide a copy to the employee
Cover matters such as returning identification cards,
keys, and how to receive final paycheck
Involve company security, if needed
Notify all relevant parties after discharge that the
employee has been terminated

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Strategic Staffing
Chapter 13Staffing System
Evaluation and Technology

Jean Phillips & Stanley Gully

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Direct and Indirect Costs
Direct costs: charges incurred as an immediate
result of some staffing activity (e.g., higher
training costs, lower productivity)

Indirect costs: not directly attributable to


staffing activities (e.g., lost business
opportunities, lower morale)

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Staffing Evaluation
Analysis of a
staffing system
to assess its
performance
and
effectiveness

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Staffing System Evaluation
Evaluating a staffing system allows us to objectively
identify which staffing activities are related to
business strategy execution and company
performance, assess how well different staffing
initiatives are working, and improve the staffing
system based on what is learned.
Competitive advantage can be created through
staffing by identifying the staffing activities that drive
business success and strategy execution, evaluating
them, and improving them.
Measurement occurs at a single point in time, and
isnt as useful as is tracking and making comparisons
over time.

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Key Performance Indicators (KPIs)
Key performance indicators: measurable factors critical to the
firms success and long- and short-term goals that can help
understand, track, and improve organizational performance
and the bottom line.
To design effective KPIs, it is essential to understand what is
important to the business and what key business measures
exist.
The KPIs that promote and lead to organizational success are
those best able to enhance strategy execution and
organizational performance, such as financial outcome
measures (e.g., revenue growth) and strategy execution and
performance drivers (e.g., customer satisfaction, innovation,
and globalization).

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Leading and Lagging Indicators
Lagging indicator: information that is available only
after staffing decisions have been made.
Employer image, job success, turnover
Do not identify what went right or wrong or how to
improve
Leading indicator: information that precedes or
predicts staffing outcomes.
Lower applicant quality, fewer apps per position
Good for monitoring progress of staffing system; can be
used to adjust and improve staffing outcomes midstream
Some can be both
Talent availability quality of hire (leading) and employer
image (lagging)

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Long- and Short-term Metrics
Short-term metrics help to evaluate the success of a staffing
system in terms of recruiting and new hire outcomes and
include (good leading indicator):
Percentages of hires for each job from each recruiting source
Number of high-quality new hires coming from each recruiting source
and recruiter
Number of diverse hires
Average time-to-start (by position, source, and recruiter)
Average time-to-contribution (by position, source, and recruiter)
Long-term metrics help to evaluate the success of a staffing
system in terms of outcomes that take place some time after
hire and include (good lagging indicators):
Job success
Employee tenure
Promotion rates

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Staffing Efficiency Metrics
Staffing efficiency: the amount of resources used in
the staffing process.
Hiring costs include sourcing, recruiting, screening, and
referral bonuses, travel expenses, advertisements,
candidate assessments, meals, transportation, and testing
including drug tests and background checks.
Replacement costs include hiring costs as well as the
productivity loss while the position is unfilled. Reducing
time-to-fill and improving socialization and onboarding can
reduce replacement costs.

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Staffing Effectiveness Metrics
Staffing effectiveness: how well the staffing
process meets stakeholder needs and
contributes to strategy execution and
organizational performance (are the jobs
being filled w/ the right people).
Is the number and caliber of finalists being sent to hiring
managers meeting their needs?
Is the hiring experience and speed acceptable to
candidates?
Measures include new hire job success

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Staffing Effectiveness Metrics
Job success performance and fit
Quality of hire did company hire ppl it set
out to (can be assessed using perf. ratings,
satisfaction surveys, etc.)
Retention rates
Voluntary turnover rate of top performers
Voluntary turnover rate of bottom performers
Value of top performers
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Return on Investment
When using metrics and evaluating staffing activities, it can be
easy to focus on staffing efficiency and lose sight of staffing
effectiveness.

A balance must be struck between staffing efficiency and


staffing effectiveness.

ROI can be calculated for a firms investment in individual


staffing activities, such as the ROI of different recruiting
sources or assessment methods, or for the staffing system as
a whole.

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Six Sigma
Six Sigma: initiative that uses statistical analysis to
measure and improve business processes and their
outcomes to near perfection
Measures defects, remove sources of error, reduce
defects to near 0
Six Sigma can be used to improve a variety of staffing
outcomes, such as:
Lowering turnover among high performers
Improving applicant quality
Improving new hire fit with corporate culture
Reducing time-to-fill
Increasing the return on the companys staffing investment

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Six Sigma
Begins with a process map that defines and
graphically maps out the process to be improved.
After identifying the source of any defects, an
improvement program is created to remove the
cause of the defects.
To improve the quality of a staffing process, each
step of the process must maximize the probability
that the selected candidate meets the hiring
managers expectations
DMAIC (define, measure, analyze, improve, control)
for existing internal processes (DMADV (define,
measure, analyze, design, verify) for new processes

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Six Sigma
For existing internal processes, use DMAIC (Define,
Measure, Analyze, Improve, and Control)
Define the problem: reduce unwanted turnover among
high performers.
Measure: identify key measurements underlying turnover.
Analyze: understand key factors and trends that create
turnover.
Improve: identify and execute a plan to address those
factors.
Control: implement controls to lower turnover on an
ongoing basis.

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Balanced Staffing Scorecard
Balanced scorecard: a tool that balances firms
strategic, operational, financial, and customer-
related goals.
Balanced scorecards help organizations to:
Compare and track performance trends within the
organization
Benchmark the organization
Identify best performers
Corporate scorecards developed to define
goals and agenda for entire org. Each business
unit looks to this to create their own
scorecards.
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Balanced Staffing Scorecard
Balanced staffing scorecard: contains objectives, targets, and initiatives for
each activity that adds value to the staffing process.

The companys goals and strategies should guide scorecard development,


with most measures focusing on value creation and staffing effectiveness
and a smaller number addressing staffing efficiency and cost control.

The choice of scorecard criteria can be based on company strategy and


goals, anticipated challenges such as a tightening labor market or changing
workforce demographics, current problems such as difficulty staffing key
leadership positions, and practical reasons such as ease of communication to
hiring managers.

When choosing what to include on a staffing scorecard, be sure to consider


the companys talent philosophy, and HR strategy. Set clear and consistent
goals, and carefully balance cost, time, quality, and customer satisfaction.

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Balanced Staffing Scorecard

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Staffing Evaluation Process
Identify a problem area and assess how to measure and improve it.
The metrics you use shouldnt be too complex or numerous to understand or
explain to others.
It is often a good idea to implement a staffing evaluation program incrementally,
rather than taking on the entire staffing system at once.
Evaluate one component of the system at a time by calculating its impact on
relevant KPIs such as a divisions productivity, tenure, performance, labor
costs, and promotions. For example, a firm pursuing a cost-leadership strategy
based on an operational excellence competitive advantage might be very
concerned about labor costs.
Evaluating the impact of employee turnover and new hire quality on labor costs
helps build the case that these factors are important.
Involve other units like finance and operations to acquire needed information
and data.
This process helps build your case that staffing activities influence important
organizational outcomes and can secure the buy-in needed to make staffing
improvements and increase the scope of the evaluation program.

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Rsum Screening Software
Screens rsums for certain words or phrases so that
recruiters do not have to look at every rsum.

Saves recruiters a lot of time, and makes Internet recruiting


much more manageable for companies that receive
thousands of responses to a job posting.

Relying too heavily on software can lead to overlooking highly


qualified candidates who do not match specific criteria.

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Applicant Tracking Systems
Applicant tracking system: software that allows you to
maintain a database of both applicant and job information to
facilitate finding matches between openings and applicants.
Allow human resources and line managers to oversee the
entire recruitment and staffing process, from mining rsums
to identifying qualified candidates to conducting background
checks and facilitating onboarding by tracking completed tasks
and activities and automatically sending new hires relevant
information.
Reduce costs, speed up hiring process, and improve the
companys ability to find people who fit its success profile.

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Human Resources Information Systems
(HRIS)
Human resources information system: a system of software and
supporting computer hardware specifically designed to store and
process all HR information and keep track of all employees and
information about them

Combine separate HR systems into a centralized database that


performs the majority of HR transactions.

HRIS include reporting capabilities, and some systems are able to


track applicants before they become employees.

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Company Web Site
Careers site can also contain information about the corporate
culture and mission.

Online applications are possible, and prescreening tests can be


administered.

Thoughtfully developed careers sites can also result in more


effective interviews because applicants basic questions will
already have been answered by Web site content and poor fits
are more likely to have self-selected out after learning more
about the organization and job opportunity online.

Use when need lots of candidates, high education levels


required, and you need to target specific labour markets.

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Digital Staffing Dashboards
Digital staffing dashboards: interactive
computer displays of indicators of how the
staffing function is meeting its goals

Well-crafted staffing dashboards help


companies monitor and manage their
workforce and chart progress toward meeting
strategic and tactical staffing objectives.

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Seven Tips for Creating Digital Staffing
Dashboard
1. Identify drivers of staffing and business success.
2. Set specific goals and targets
3. Prioritize. Dashboards are ineffective if they contain too much information.
Identify which metrics are key, and put them on the main dashboard page.
4. Identify how best to present the data. Bar charts, tables, pie charts,
graphs, and even speedometer-style displays are all possible. Test formats
and warning colors with the people who will be using it to identify what
works best.
5. Assess user comprehension. Ensure that users are not misinterpreting the
data and that the communicated information is being quickly and clearly
understood.
6. Consider including dynamic capabilities on the dashboard to allow for
scenario planning and growth projections.
7. Create data entry accountability. If data is not entered accurately or on
time, the dashboard will not be accurate. Assess and reward managers for
maintaining the database.

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