A two-part learning module for undergraduate students
By Myrna L. Gusdorf, MBA, SPHR
Recruitment and Selection: Hiring the Right Person
Project team Author: SHRM project contributors: Myrna Gusdorf, MBA, SPHR
Bill Schaefer, SPHR Nancy A. Woolever, SPHR
External contributor: Editor: Design:
Sharon H. Leonard Katya Scanlan, copy editor Blair Wright, senior graphic designer
© 2008 Society for Human Resource Management. Myrna Gusdorf, MBA, SPHR Note to Hr faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: +1-800-283-7476 Fax: +1-703-535-6432 Web: www.shrm.org/hreducation 08-0872-IM
Part i – ReCRUitMent
When HR planning indicates the need for additional labor, organizations have a number of choices to make. This may be the first step in a full-scale recruitment and selection process, but sometimes hiring additional employees is not the best method to obtain additional labor. It may be appropriate for an organization to consider alternatives to recruiting, such as outsourcing or contingent labor, instead of hiring regular employees. If this is a temporary fluctuation in work volume, the simplest solution may be part-time labor or overtime by existing employees. The costs of recruitment and selection can be staggering; hiring new employees should occur only after careful consideration and only when the organization anticipates a long-term need for additional labor. Estimates on the cost to replace supervisory, technical and management employees run from 50 percent to several hundred percent of employee salaries.1 Careful HR planning must consider the overall growth prospects of the organization and accurate forecasting of future labor needs. Recruitment planning begins only when other alternatives have been considered and eliminated.
RECRUITMENT: The process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, to apply for jobs with an organization.2
INterNaL eNVIroNmeNt Promotion From Within Your organization’s promotion policy will have a significant effect on the recruitment process. If the open position is above entry level, it may be appropriate to promote someone already working for the organization. Many organizations use promotion from within as a motivation tool and a reward for good work or longevity with the organization. When employees see their co-workers being promoted, they become more aware of their own career opportunities. Promotion may be especially important in a stagnant economy where people have little chance of improving their lot by changing organizations. Their only opportunity for career growth and increased income is to move up within their current organization. The problem with promotion from within is that the promoted person leaves a staffing gap in his or her
© 2008 Society for Human Resource Management. Myrna gusdorf, MBA, SPHR 1
former position, so there is still a position to be filled. However, that gap is likely to be at a lower, less-skilled position, and therefore it may be an easier position to fill. The advantage of promotion from within is that your promoted employee is already comfortable with the corporate culture, knows organization policies and will likely get up to speed much faster than a person new to the organization. The disadvantage of promotion from within is that the organization loses out on the chance for new ideas and the...