A recruiting strategy is formal plan of action involving an organization's attempts to successfully identify, recruit, and hire high-quality candidates for the purpose of filling its open positions.

1. © INTEGRAL
UNIVERSITY
Recruitment and Selection
Strategies
Mr. Shahab Ud Din
Assistant Professor
DCBM

2. Objectives
• Understand the strategic nature of recruitment
and selection processes.
• Comprehend the planning and execution of
recruitment strategies.
• Recognize matters of statutory and common law
as applied to the employment process.
• Understand the process of selection practices.

3. Budgetary Constraints
HR
Requirements
(Needs)
Employee
Career Goals
Organizational
Goals & Objectives
Analysis of
Current
Work Force
(Supply)
HR Gap
(Shortage or Surplus)
HR
Trend Forecasts
Inventory of
Employee Skills,
Numbers, & Flow
through Organization
Needs versus Supply Analysis
determines
determines
Compared
with
Compared
with

4. Human Resource Planning
Labor Demand
Conditions and Select Responses
1. Shortage: Labor Demand Exceeds Labor Supply
•Training or retraining
•Promotion from within
•Recruitment from outside
•Use of part-timers or temporary workers
2. Surplus: Labor Supply Exceeds Labor Demand
•Pay cuts
•Reduced hours
•Voluntary early retirements
•Inducements to quit (for example, severance pay)
•Succession planning
•Subcontracting
•Use of overtime
•Layoffs
•Work Sharing
3. Labor Demand Equals Labor Supply
•Replacement of quits from inside or outside
•Internal transfers and redeployment

5. Strategic Planning – Data Analysis
1. External Environment
– Labor market, competition, economic factors, etc.
– The levels of KSAA
2. Internal Environment
– Mgmt styles, resource allocation, work environment, interdepartmental
relations, productivity, etc.
• SWOT ANALYSIS
• Strengths (the org. does well)
• Weaknesses (the org. could do better)
• Opportunities (things that could benefit the org.)
• Threats (things that could harm the org.)

6. Recruitment Strategies
• The process of generating a pool of qualified
applicants for positions within the organization
• Labor Market: (The external factors that influence recruitment strategies)
– Individuals in possession of KSAAs
• meet the standards for employment within the organization.
• Factors in the locality of the operation:
– Educational experience
– Personality types
– Unemployment rates
– Competitor recruiting practices
– Age of the population
– Diversity levels and others

7. Recruitment Strategies
- Internal Quality Drives - KSAA
HR manager matches the profiles of the
labor market with the KSAAs
• Labor Force Population
– The collective number of individuals in a targeted
population
• Labor Pool
– Individuals who are in possession of appropriate
KSAAs for positions within the organization

8. Recruitment - Quantity driver
Forecasting (Manpower Planning)
Forecast of vacant positions that will require placement
over a period of one year
• Project the # of positions to be placed in each
category during each month over the next year
• Predict the number of position replacements in each
category due to growth and turnover

9. Recruitment Strategic Planning
(cont.)
• Identify sources for recruitment
– External sources
– Internal sources

10. Sources for Recruitment
Internal Sources External Sources
Job Postings Competitors
Bidding Systems Schools, Colleges
Promotions and Transfers Labor Unions
Referrals Trade Associations
Former Staff and
Applicants
Agencies/
Executive Search Firms
Media

11. Internal sources of recruiting
Anyone who has access to those within the organization
Succession planning
– Identifying internal individuals for promotional
opportunities.
– Systemic way to generate internal promotions

12. Internal sources of recruiting
Disadvantages:
Advantages:

13. External sources of recruiting
1. Competitors
2. Schools and Colleges
3. Agencies/Executive Search Firms(“headhunters”)
4. Media advertisements
• Newspaper media (classified advertising)
• Internet
• Trade publication media
5. Trade associations

14. External sources of recruiting
Advantages:
Disadvantages:

15. Evaluating Recruitment Planning and
Practices
- Effectiveness and Efficiency
Recruitment Efficiency
– The use of resources in the quest to be
effective
Recruitment Effectiveness
– How well the practices meet the recruitment goals
of generating large pools of qualified applicants
within minimal timeframes???

16. Selection Practices

17. Selection Practices
The goal is to pick the most qualified applicant
to join the organization
“We chose a qualified applicant
to fill the position”
» For legal reasons - with the public
• All of the activities within the selection process are for the
purpose of selecting a single person to fill an employment
position
Pre-employment Activities

18. Pre-Employment Activities- figure
8.4
1. Applicants submit resumes and complete Application Blanks in person or online
2. Short pre-screening interviews with a human resource representative
3. HR rep eliminates unqualified candidates from the pool
4. Applicants are scheduled for screening interviews
5. HR rep selects 3-5 candidates from that pool for further selection
6. Pre-employment tests for ability, aptitude, personality, honesty or assessment centers
7. HR rep forwards pre-employment file to hiring department managers
8. Managers from departments conduct additional interviews with remaining candidates
9. Manager advises HR rep of selection for employment
10. HR rep makes a tentative offer to the candidate of choice pending drug or medical test results
11. Security office is authorized to conduct background investigation of selected candidates
12. A formal offer of employment is extended to the candidate indicating start date and orientation
reservation
13. Applicants who were not chosen are advised of their status
14. Applications are retained in applicant files for one-to-three years

19. Pre-Employment Activities
Application
• A standard form that is on paper or online
– To elicit as much information about the applicant as
possible
• The format must comply with legal requirements that vary
by state
• The form is retained in the applicant records for a period of
time and may be used for consideration for future positions
– or new form for each position applied for
• Legal document

20. Sample Application Blank form
• Basic personal job-related information
• Employment experience
– employer name, location, type of business, address, phone number, start
and end dates of employment, starting title, ending title, starting and
ending pay rate, and description of duties.
• References
• Emergency contact
• A pre-employment statement that requires
the signature of the applicant.

21. Selection Practices
Pre-Employment Activities
• HR rep conducts a short pre-screening
interview
• Determining which candidates are clearly not
qualified for the position.
• The remaining pool of applicants are
scheduled for 2nd interviews with the HR
office.
• Reference checks w/ prior employers
• Employment tests

22. Pre-Employment Activities
6. Pre-employment tests
Types of test…
• Ability tests: perform the job
• Aptitude tests: mental capacity, memory
(e.g.,short order cook), speed of thought
• Personality: match the candidate with the job
position
• Psychological battery: honesty

23. Pre-Employment Activities
6. Pre-employment tests
Validity : measures what it is intended to measure
Reliability : measures the same outcomes consistently
This factor has two implications
1. Construct and validate the instruments
– the subject of legal scrutiny in the event of a disparate
impact case involving racial bias, or others types of
statistical flaws.
2. The psychologist acts as an independant
contractor
– moves the legal responsibility for the instrument from the
organization to a third party contractor

24. Pre-Employment Activities
• Based on the results of these interviews, three-to-five
candidates are referred to the hiring department for
further interviews.
• In some cases, after passing the departmental interview
process, candidates will be scheduled to meet with the
executive committee
• The department director has the ultimate decision making
authority concerning the candidate selected for hire.
– This determination is made during a round of departmental
interviews and pre-employment testing.

25. Selection Practices
10. Tentative offer pending on additional testing
Additional testing
– Drug tests via urine or blood
– Medical physical examinations
• Why???
The reason the organization waits until the pending offer stage
• These tests are very costly
• ADA and reasonable accommodation?

26. Selection Practices
11. Background investigation
Security dept. search
– Arrests, driving record and credit histories
– Information must be on a “need to know” basis
• Invasion of Privacy
• Negligent Hire
– The employer has the responsibility to guard
against potential harm to another party arising
from the employment relationship

27. Selection Practices
Formal offer of employment to the job candidate
• An official offer of employment letter
– Signed by the director of human resources
– Clearly articulates the benefits, terms, and conditions of the
employment offer
• Compile a “start packet” for the first day of
scheduled work for the new hires

28. Selection Practices
Formal offer of employment to the job candidate
• “Start packet”
– Prepare for the first day of scheduled work for the newly hired
individual
• Completed application blank and original copy of the offer letter
• Payroll change notice form
• Job description
• W-2 forms
• Benefits selection form
• Relocation agreement (if appropriate)
• New employee checklist
• Parking permit
• Vehicle identification form
• Identification card, name badge
• Employment Eligibility Verification (I-9 form)
• Employee handbook and handbook receipt
• Notice of orientation
• any other necessary documents to fully process the person as a new
employee with the organization

29. Types of Interviews
1. Structured Interview
– A listing of questions that is followed exactly by the interviewer
without deviation
• Ask all applicants the exact same questions
• Elicit specific information that is useful when making the final
selection decision
2. Unstructured/ non-directive
• Interviewer directs the interview down whatever path
seem appropriate at the time
3. Semi-structured
• Questions are prepared
• Allow for flexibility during the interview process
Sample Roy’s Structured interview questions

30. Types of Interviews- Pros/Cons
1. Structured
 Optimize comparisons and provide consistent documentation
 But - do not permit you to react to interviewee responses
2. Unstructured
 A lot of information is covered
 But –
 The amount of time the interview takes
 May left out important information
 Low inter-rater reliability
3. Semi-structured
 Takes into account reactive responses from the interviewee
 But can leave you open to charges of discrimination if the
interviewer is not careful.
 Most flexibility – if do properly, it can provide the most specific
information in a reasonable amount of time

31. Employment Interviews
- Stress interview
• Reserved for trained interviewers
– To observe the applicants response to a stressful session of
discussion
• Interviewing panel of high ranking members of the organization
• Interview is in an environment designed to replicate an interrogation
scenario for the purpose of creating an intimidating the interviewee
• Not a pleasant experience for most job candidates
– Effective in eliciting programmed responses from previous
intensive training during stressful situations
Example
Security personnel
– Test the ability of a candidate to decide courses of actions given scenarios that
are posed in a stressful manner

32. What must interviewer do before interviewing
a job applicant so that the interview is
relevant?
• Review the job requirements
• Review the employment application
• Decide on the structure of the interview
• Decide on the questions you will ask
• Understand the hospitality organization’s mission
statement, goals, and objectives
• Conduct the interview in comfortable, distraction-
free environment

33. Reward Management

34. Rewards
• A reward system has the following important
features:
– an incentive plan may consist of both ‘monetary’
and ‘non monetary’ elements
– the timing, accuracy and frequency of incentives
are the very basis of a successful incentive plan
– the plan requires that it should be properly
communicated to the employees to encourage
individual performances, provide feedback and
encourage redirection

35. Financial Non-Financial
Intrinsic Extrinsic
Decision making
Job freedom
Responsibility
Job enrichment
Personal growth
Diversity of activities
Rewards

36. Rewards
Extrinsic Rewards
Financial
Performance based Explicit membership
based
Piece work Group Personal Insurance
Commission Hospitalization
Incentive Sick leave
Performance bonus
Merit pay

37. Extrinsic Rewards
Non Financial
•Office décor
•Preferred lunch hour
•Preferred assignments
•Preferred location
•Secretarial assistance

38. Rewards and Expectancy Theory
According to the expectancy theory the
tendency to act in a particular way
depends upon the strength of an
expectation that the act will be followed
by a given outcome and how attractive
that outcome will be

39. Rewards and Expectancy Theory
There are two variables involved here
Attractiveness of the reward / outcome
Performance - reward linkage—the degree to
which an individual feels that a certain level of
job performance will lead to a certain job
outcome
Effort - performance linkage—the probability
that a given effort will lead to a certain
performance

40. Types of Rewards
Intrinsic vs extrinsic rewards
Financial vs non-financial rewards
Performance based vs membership
based rewards

41. Intrinsic Rewards
• Intrinsic rewards come from the satisfaction
one gets from the job itself
• This satisfaction comes from self-initiated
rewards, such as having pride in one’s work,
having a feeling of accomplishment, or being
part of a team

42. Extrinsic Rewards
• Extrinsic rewards include money,
promotions, or fringe benefits
• For money or other extrinsic rewards to be
used as effective motivators, they should be
made contingent on the employee’s
performance

43. Extrinsic Rewards
• Rewards may enhance the employee’s financial well
being
directly
– through wages, bonuses, profit-sharing,
or indirectly
– through supportive benefits such as pension plans,
paid vacations, paid sick leave, and purchase
discounts

44. Non-financial Rewards
• Non-financial rewards emphasize making life
on the job more attractive
• Care must be taken in providing the ‘right’
non - financial reward for each person
• For example: a paneled office, a carpeted
floor, or a private bathroom may be just the
office furnishings that stimulate an employee
towards top performance

45. Non-financial Rewards
• Performance-based rewards are exemplified by
the use of commissions, piecework pay plans,
incentive systems, group bonuses, or other
forms of merit pay plans
• Membership - based rewards include cost-of-
living increases, profit sharing, benefits and
salary increases attributable to labour market
conditions, seniority or time in rank, or future
potential

46. Qualities of Effective Rewards
Significance
Equitable distribution – fairness
Visibility
Flexibility, e.g. annual performance bonus
Low cost—cost benefit of reward

47. Employee Benefits
and
Services

48. Concept
• Employee benefits and services –
Any benefits that the employee receives in addition to
direct remuneration
‘Fringes embrace a broad range of benefits and
services that employees receive as part of their total
compensation package. It is based on critical job
factors and performance. Benefits and services
however are indirect compensation because they are
usually extended as a condition of employment and
are not directly related to performance’

49. Concept
• Benefits and compensation provided to the
employees usually depend on the conditions
of employment and other factors like security,
safety, health, welfare and recreation of
employees
• These benefit programs must be managed
carefully to enhance recruitment and to boost
the morale of the employees

50. Why Organizations Provide Benefits
– Employee demand: To meet rising prices and increased
cost of living employees demand various types of benefits
Example: Variable dearness allowance, Enhanced HRA
Trade union demands: The growth and strength of trade
unions has substantial influence on the benefits and
services a company offers
– Employer’s preferences: Employers prefer to give benefits
to employees as it enhances employee’s morale and works
as an effective motivational tool provided it is within the
accepted norms and limits

51. Benefits Improve Human Relations
– Satisfying workers’ economic, social and
psychological needs by providing various facilities
Example: Credit facilities, canteen and recreational
facilities, retirement benefits, medical benefits etc
– Social Security: Benefits which provide security to
employees against various contingencies and accidents
Example: Safety measures, medical facilities and
compensation in case of accidents

52. Role of Benefits
• Indirect compensation is used to achieve
organizational, employee and societal objectives
– Organizational Objectives: Every organization
provides certain benefits to its workers in order to
support recruitment and to retain them
– Employee objectives: The employees desire these
as they are provided at lower costs and
conveniently available. Example: Insurance benefits
– Societal objectives: Life-insurance, health care,
disability and retirement benefits, reduce the
burden on society and provide security to
employees against social risks

53. Features of Benefits and Services
• The cardinal feature of employee benefit
programs is that the employee must make
contribution to the organization that equals
the costs borne by the employer
• The employee benefits should satisfy a real
need Extreme care and serious research
should be undertaken to identify the needs
of the employees

54. Features of Benefits and Services
• Benefits selected should be such that they can be
more efficiently used for a group than an individual
Example: Life insurance for a group can be obtained
at a significantly lower price than insurance for an
individual
The benefit program should be flexible enough to
adapt to varying employee needs. Various factors
like age, family, status and financial requirements
are to be taken into consideration

55. Features of Benefits and Services
The organization should undertake an extensive
and well-planned program to communicate to the
employees about various services and benefits
being provided
The cost of benefit should be calculable and
provision should be made for sound financing

56. Coverage of Benefits
1. Payment for time not worked
(a) Vacation
(b) Holidays
(c) Sick leave
(d) Miscellaneous types of non-working plans
(e) Shifts premium

57. Coverage of Benefits
2. Employee Security
(a) Severance pay
(b) Golden handcuffs
(c) Lay-off
(d) Guaranteed annual wage
(e) Supplementary unemployment benefits
(f) Retrenchment compensation

58. Coverage of Benefits
3. Safety benefits
4. Health Benefits
(a) Medical benefit or insurance
(b) Managed care
• Health maintenance organization
• Preferred-provider organization

59. Coverage of Benefits
5. Disablement benefit
6. Maternity benefit
7. Dependent benefit
8. Insurance benefits
(a) Life insurance
(b) Vision insurance
(c) Dental insurance

60. Coverage of Benefits
9. Welfare and recreational facilities
(a) Educational assistance
(b) Legal assistance
(c) Housing facilities
(d) Financial services
(e) Employee assistance programs

61. Coverage of Benefits
9. Welfare and recreational facilities
(f) Canteens
(g) Childcare
(h) Consumer societies
(i) Holiday homes
(j) Travelling and transportation
(k) Parties, picnics, club memberships
(l) Social service leave program

62. Coverage of Benefits
10. Old age and retirement benefits
(a) Provident fund
(b) Pension
(c) Deposit linked insurance
(d) Medical benefit
(e) Gratuity
(f) Retirement counseling

63. Employee Stock Option Plans (ESOP)
Employees of a company are granted the
right to purchase the company’s stock at a
predetermined price, which is below the
market value
• ESOP originated in the US in 1960s
• ESOP is being used by Indian companies as
an effective reward and retention strategy

64. Employee Stock Option Plans (ESOP)
• Legal loopholes come in the way of making
the scheme attractive
• These hassles are yet to be cleared by the
Securities and Exchanges Board of India
(SEBI)
• As of today the shares offered under ESOP
are treated as preferential issues

65. There are several variations to ESOP:
Stock appreciation rights:
• Here employees are given rights to a particular
number of shares at the market rate on the date of
allotment of the Rights
• No shares are transferred to the employees nor are
they given money to buy the scrips
• The rights are redeemable in installments at regular
intervals at the market price prevailing on the date
of redemption

66. There are several variations to ESOP:
– The second variation
• Here an option is given to the employee to buy shares at the
average of last 6 months market rate and offer soft loans from
the company to buy the shares whenever required
• These options are given in installments at an interval of two to
three years

67. – Positions held by employees: It is crucial to
retain employees essential for the company
– Consistent performance: Employees whose
performance has been consistently outstanding
– Length of service: Those who have stayed with
the company for a minimum number of years and
have demonstrated honesty, loyalty and
commitment
Eligibility to be covered under ESOP

68. Merits of ESOP
Employer
• Employees remain loyal and committed to the
company
• It motivates them to do well and share the fruits of
progress
• Better industrial relations, reduced employee
turnover, lesser supervision are other incidental
benefits
Employee
• He becomes a part owner, sharing dividends,
bonuses and other benefits like any other share
holder
• If the stock appreciates he gains substantially

69. Problems Related to Benefit Programs
• Lack of employee participation
• Once the fringe benefits programs are designed in a
company, the employees have little discretion
– Example: Same pension is usually granted to all
employees. Younger employees see pension as
distant and largely irrelevant
• The uniformity of benefits fails to recognize workforce
diversity
• Managers have little interest in benefit programs and
trade unions are almost hostile to the schemes

70. Problems Related to Benefit Programs
• Managers are sometimes not aware of their company
policy towards benefits and their contribution to the
quality of corporate life
• Trade unions entertain a feeling of alienation as the
benefits are likely to erode their base
• Since employees have little choice in their benefit
packages, most workers are unaware of all the
benefits to which they are entitled

71. Problems Related to Benefit Programs
• This lack of knowledge often causes employees to
request for more benefits to meet their needs
• This results in proliferation of benefits and
increased employer costs
• Employee confusion can lead to complaints and
dissatisfaction about their fringe benefit packages

72. Criteria for Determining Rewards
• Performance
• Effort- hard work but average performance
 Seniority
 Skill levels
 Job complexity

73. Competitiveness

74. • Competitiveness refers to the pay
relationships among organizations – the
organization’s pay relative to its
competitors.
• Pay level refers to the average of the array
of rates paid by an employer
(base + bonus + benefits+options) /number of
employees.

75. • Pay forms are the various types of payments
or pay mix that make up total
compensation.

76. Objectives
• Control Costs
• Attract and retain employees

77. Costs
• Labor Costs = pay level * number of
employees.
• Not only total payout but pay mix also
matters.

78. Factors affecting Competitiveness
1) Competition in the labour market for
people with various skills
2) Competition in the products and services
market which affect financial conditions
3) Characteristics unique to each
organization and its employees.

79. Labour market factors
• Nature of demand
• Nature of supply

80. Labour demand theories
• Compensating differentials
• Efficiency wage
• Signaling

81. Supply side factors
• Reservation wage or minimum wage
• Human capital

82. Competitive pay policies
• Lead
• Lag
• Match
• Flexible

83. Internal Alignmemt
Or Internal Equity

84. Internal Alignment
• Refers to the pay relationships among
different jobs/skills/competencies within a
single organization. The relationships form
a pay structure that should support the
organization strategy ,support the work
flow, be fair to employees, and motivate
behaviour towards organization objectives.

85. Pay Structure
• Refers to the array of pay rates for different
work or skills within a single organization.
The number of levels , the differentials in
pay between the levels and the criteria used
to determine the differences describe the
structure.

86. Objective
• Supports organization strategy
• Supports work flow (eg… MERCK)
• Supports fairness
procedural justice … the method
distributive justice … the results
• Motivates behaviour … line of sight

87. Internal Structures vary…
• Based on
Levels …. Hierarchial and reporting
relationships.
Differentials…egalitarian
Criteria … Content (tasks/behavior
Knowledge)
Value (worth of the wrk
(Use value vs Exchange value)
Job and person based structures.

88. What shapes Internal structures
EXTERNAL FACTORS
• Economic Pressures.
• Government policies and regulation
• External stakeholders
• Cultures and Customs
contd….

89. Continued…
INTERNAL FACTORS
• Strategy
• Technology or work design*
• Human Capital
• HR Policy
• Employee Acceptance
• Cost Implications
cont…

90. Continued…
INTERNAL STRUCTURE
LEVELS
DIFFERENTIALS
CRITERIA

91. STRATEGIC CHOICES*
• Tailored vs Loosely Coupled
• Egalitarian vs Hierarchial
• Equity Theory
• Tournament Theory
• Copy others … Best Practices