Strategic Staffing Slides

Strategic Staffing Chapter 1 Strategic Staffing
Jean Phillips & Stanley Gully
Copyright 2009 Pearson Education, Inc.
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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
Copyright 2009 Pearson Education, Inc. 1-2
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.
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.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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What Is Strategic Staffing?

Definition: The process of staffing an organization in future-oriented and goaldirected 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 longerterm 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.
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.
Identifying Staffing Goals

Process Goals Relate to the hiring process itself- i.e. how many of what quality employees apply; attracting appropriate numbers of diverse applicants; meeting hiring timeline goals (within two weeks). Outcome Goals Relate to the product of the hiring effort i.e. number and quality of people hired; financial return on the staffing investment; whether the effort improved 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
Strategic Staffing Chapter 2 Business and Staffing Strategies

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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
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!

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

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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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.
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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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
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
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. 3. 4. 5.
Do we prefer to hire internally or externally? Do we want to hire for or train needed skills? Do we want to replace or retain our talent? What levels of which skills do we need where?
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. 8. 9.
Which jobs should we focus on? Is staffing treated as an investment or a cost? 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.
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

Bona Fide Occupational Requirements (BFOR)
Accommodation
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
Responsibility to eliminate rules, practices or barriers that have an adverse impact on individuals with disabilities
Duty to Accommodate
Reasonable Accommodation
Individual Accommodation
An integral responsibility of employers to promote inclusion (can involve work schedules, changes to work done, or the work environment Obligation to the point of undue hardship
Flexibility in dealing with individual employee requests

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

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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
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 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. 2. 3. 4. Proportion of barely acceptable workers who have job element How effective the element is when picking a superior worker The trouble likely to occur if element is not considered Practicality
4. Analyze job element data


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 50200 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
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
Table 4-6
Task Statements
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Table 4-11
Job Requirements Matrix
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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
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?)
Table 4-13
Job Rewards Matrix
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Strategic Staffing Chapter 5 Forecasting and Planning

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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. 2. Identify the business strategy. 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.
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)
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.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-80
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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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.
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.
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.
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.
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
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
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
The three questions that need to be answered are:
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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. 2. 3. 4. 5. 6. Advertising expenses Agency and search firm fees Employee referral bonuses Recruiter and applicant travel costs Relocation costs 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.
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

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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
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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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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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

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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
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
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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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Distributive: the perceived fairness of the hiring or promotion outcome
Perceptions of Fairness Three Types of Fairness
Procedural: beliefs that the policies and procedures that resulted in the hiring or promotion decision were fair
Did you get the job or promotion? Yes = more fair Only type of fairness that organizations have little control of
Interactional: fairness of the interpersonal treatment and amount of information received during the hiring process
Honesty, respect, recruiter warmth, and informativeness
Respect applicants privacy, avoid delays, use job-related assessments, give fair opportunity to perform
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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
Employment opps that do not meet minimum Noncompensatory screening factors are rejected by job seekers
The jobs location, the type of job, pay, etc.
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
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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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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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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

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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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Screening Methods

Some External Assessment Methods
Resumes and cover letters (ppl may lie) Job applications and weighted application blanks Biographical information Telephone screens 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
Evaluative Methods
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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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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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)
Reducing Adverse Impact
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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

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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 employer image
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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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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
Career Crossroads Model
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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 backup 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

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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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Often, some job requirements are essential to job performance but others can compensate for each other.
Combining Multiple Hurdles and Compensatory Approaches
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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For job offer acceptances:
Closing the Deal
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

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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 (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
Orientation and Socialization
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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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.
Effective Socialization
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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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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.
Involuntary Employee Separations
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Downsizing Targeting Methods
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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
Effective Downsizing
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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.
Survivor Syndrome
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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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
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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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
Termination Tips
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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

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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.
Some can be both
Lower applicant quality, fewer apps per position Good for monitoring progress of staffing system; can be used to adjust and improve staffing outcomes midstream 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 customerrelated 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: 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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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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Strategic Staffing Chapter 1 Strategic Staffing

Jean Phillips & Stanley Gully

Copyright 2009 Pearson Education, Inc.

Staffing for Competitive Advantage

Why Is Staffing Important?

What is Talent Management?

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

What Is Strategic Staffing?

Copyright 2009 Pearson Education, Inc.

How Strategic Staffing Differs from Traditional Staffing

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Seven Components of Strategic Staffing

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Sourcing and Recruiting Talent

Selecting and Acquiring Talent

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Identifying Staffing Goals

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2009 Pearson Education, Inc.

Strategic Staffing Chapter 2 Business and Staffing Strategies

Copyright 2009 Pearson Education, Inc.

Why Does One Company Succeed and Another Fail?

Copyright 2009 Pearson Education, Inc.

Resource-Based View of the Firm

Copyright 2009 Pearson Education, Inc.

Resource-Based View of the Firm

Copyright 2009 Pearson Education, Inc.

Five Requirements of a Competitive Advantage

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Components of Business Strategy

Copyright 2009 Pearson Education, Inc.

Some Sources of Competitive Advantage

Copyright 2009 Pearson Education, Inc.

Sources of Competitive Advantage

Three Types of Business Strategy

Three Types of Business Strategy

Three Types of Business Strategy

Copyright 2009 Pearson Education, Inc.

Copyright 2009 Pearson Education, Inc.

Organizational Life Cycle and Strategy Choice

Intro-Growth-Maturity-Decline life cycle Strategy during intro phase

Copyright 2009 Pearson Education, Inc.

Organizational Life Cycle and Strategy Choice

Strategy during growth phase

Organizational Life Cycle and Strategy Choice

Copyright 2009 Pearson Education, Inc.

Organizational Life Cycle and Strategy Choice

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

HR and Staffing Strategies

The Firms Commitment to Diversity

Applicants and Employees as Either Assets or Investors

The Firms Commitment to Ethical Behavior

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Nine Elements of Staffing Strategy

Nine Elements of Staffing Strategy

Will we staff proactively or reactively?

Competitive Talent Advantage

Copyright 2009 Pearson Education, Inc.

LEGAL FRAMEWORK CANADA Chapter 3