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and Recruitrnent
Ma. Theresa P. Benitez

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This chapter cor.rsists of two major HR
activities involved in talent acquisition. The first
activity deals rvith workforce planning and the
second one deals with recruitment. !ilorkforce
planning is essential in informing HR practitioners
of the nurnber of positions the organization needs
in the short (or even long term) and the skills and
competencies required for these positions. The
outcome of rvorkforce planning signals the HR
practitioner to be prepared to assess the supply
side of the organization's human resources; to
determine the gaps in human resources; and to
conduct internal as well as external recruitment.
Recruitment refers to the organizational activities
MANAGING HUMAN RESOURCES

a job and
that influence the number and types of applicants who apply for
External
whether the applicants accept iob; ih"t "r. offered (Ivancevich,2013).
attention
recruitment in.lrrd., the actions intended to bring a iob opening to
the
of potential candidates outside the organization and to influence whether these
(Breaugh'
.""aii"t.t apply, maintain interest and, in the end, accept a lob offer
2008).
..war for talents," it is commonly accepted that there is no such
In the so-called
thing as a dearth of good qandidates, but only a dearth of the right candidates
for your organization.

A large part of human resource management is about being able to assess

info.matLn (about people, the circumstances within the organization, and many
external factors that impact the organization) and making the "right"
decisions
that will enable the organization to achieve its goals. Since havin$ the right people
decisions
onboard is the most crucial ingredient in the success of an organization,
about who to hire and to have onboard are often regarded as the most crucial
involved
decisions organizations have to make. Hiring managers and all those
in the process of acquiring talent must consider themselves as the gatekeepers

of an organization as they have the critical responsibility of allowing only the

"right people" in.
'While
common sens$suggests that the hiring manager only needs to cast the
"recruitment net" fat and wide to get the best "catch" or find the "right fit,"
however, the war for talents has become fiercer and fiercer over the last years,
both locally and globally, that getting the "best catch" is no longer as easy. As
most HR practitioners will attest, it takes skills and patience to spot' attract,
and hire jood candidates. In the last half decade, for example, where several
coontries haue had relatively high unemployment levels, surveys ironically have
shown that employers in a number of seciors are struggling to find enough skilled
and experienced individuals to fill the posts available (GIPD annual survey report
2013). This illustrates evermore the need for an HR practitioner to be creative
and effective in finding the "best catch" for his/her organization'

So, how does one go about making the right decision?

. The successful quest to find and retain the best people often and ideally begins
even long before candidates get to know about the vacancy in an organization or
set foot in th. .o*p"ny's premises or the HR office. The foundations of a $ood
hiring decision are iaid on a process known as tnonpower planning or worhforce.
planning.
 Cl-iAPiER 2 . Workforce planning and Recruitrnent z5

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Deciding on which person wilI make rhe besr fit in an organizarion srarrs
with knowing the righr kind of people needed by the organization to enable ir
to succeed. It has been said that if you don't know what you,re looking for, how
will you know where to look and how will you know that you have already found
what you're looking for?

Although workforce planning can be a tedious process, it provides a roadmap

(or blueprint) for the HR departmenr ro execure (almost) all of its functions.
Ultimateln it provides the organization with a guide to make staffing decisions
such as promotions and all other "movements that relates to getting people into,
around and/or out of an organization" (Bechet, 2002, p.10). This adage holds
true for effective talent acquisition, which must be based on a careful assessment
of the manpower needs and musr be aligned with the defined manpower plan of
an organization.

Figure 1. Workforce Planning Cycle

In planning a trip, for example, whether for a vacation or for work, one
will normally want ro know about the planned destination: how the weather is,
what currency the local residents tender, what language they speak, what food is
available, etc. These are important to know so that the traveler will know what
 I

MANAGING HUMAN NESOURCES

-.-__
i

II mode of transportation to-take, what clothing ro pack, how much money to bring,
I etc. Even when deciding on what clothes to lvear on a particular day, the person
needs to consider what activities are expected for the day, how the weather is,
and what clothes are available in one's closet.

In the same way, an HR prac.titioner has to know about the planned

"destination" of the organization and what situation the organization is in, in
order to know what kind of competencies and how many employees are needed.
For an organization,this "destination" are its vision, business goals, and strategic
plans. The distinct path or route to reacl.ring thirt desired vision is defined by
its mission. Flence, manpower planning is heavily dependent and driven by the
company's mission and vision.

The overall objective of workforce planning.is to define the right profile of

people at orgaoization requires to meet its short-term and long-term plans and
goals. It is a "process of identifying and addressing the staffing implications of
business strategies and plans" (Bechet, 2002, p.7) and of the changes happening
I within and outside the organization.
i
I Concretely, the process of workforce planning helps the organization identify
I
the "right" kind of people and "right" number of people needed by the organization
!r
4
i
for the present and for the future, while taking into consideration its plans,
ttl
available resources, mission, as well as the internal and external (economic, social,
political) environments. For most companies, the end result of the manpower
i
planning process is a staffing plan which specifies the required human resources
needed to deliver the desired outcomes and help the organization attain its
objectives. Other organizations come up with other outputs such as the plantilla
(which is a defined structure, hierarchy, categories of positions, and number of
employees per position in an organization) their desired or targeted manpower
profile. or headcount
rr,

{:
1
Theoretical Bases
I
ti
il
The actual beginning of the discipline of manpower planning or HR planning
cannot be clearly identified. However, it is generally accepted that the theories
1

of HR planning have come and evolved from the basic theories of HRM. The
entire field of HRM has, in fact, "evolved over the last hundred years in reaction
to significant changes in the way organizations get their work donei (Vosburgh,
2007,p,58). Broadly speaking, manpower planning must have been applied and
done ever since people have collaborated in working groups (Tyson, 2005). In
particular, Smith and Batholomew (1988, p. 236),tracedmanpower planning as a
centuries-old practice in the U.K. where the ancient guilds and trades were aware
of the impact that their "decisions on the entry flows (of people) could make all
 CIiAPTER 2 . Workforce Planning and Recruitment

the difference between misery and prosperity and they must have been at Ieasr
dimly conscious of rhe concepts which we call demand and supply.,,

The history, evolution, and experience of the military on both sides of the
Atlantic ocean indicares that the practice o{ manpower planning quickly emerged
and developed as the need to deal with labor shortages and the avoidance of
"labor wastages" became paramount to the success of both the u.K. and the U.s.
militaries and their respective war efforts (Dill et a1.,1,966; Smith & Bartholomew,
1988). In fact, the earliest recorded work on manpower planning can be found in
the 18'h century, when in 1779, an actuary, John Rowe, was engaged in a study of
career structures, wastage rates, and promotion prospects in the Royal Marines
(Smith & Bartholomew, 1988).
o'The needfor
The need for the military to optimize and utilize its resources-including
manpower-led to the steady growth of manpower planning, even if the planning the military
process had not yet been clearly labeled as such. The term "manpower planning"
to optimize
came into general use only in the 1950s (Smith & Bartholomew, 1988). Iri fact, it
was after !ilorld War II, when the field of industrial-organizational psychology as andutilize its
a whole blossomed, (Riggio, 2013) that the modern version of HR or manpower resources-
planning emerged. During this period, the Tavistock Institute for Human
Relationships conducted various studies on "labor.wastage and turnover" and
including
began applying scientific and mathematical principles in solving operarional and manpower-
manpower issues and problems of both military and industrial organizations
(Tyson, 2005). These studies steadily contributed to the growth of the practic
led to the
of manpower planning and the use of mdre complex quantirative methods and steady
models in studying labor supply and demand. growth of
Although the practice of HR planning can be traced back to the military's manpower
need to optimize its human resources, the most rudimentary theory related to
manpower planning is, however, found in the classic management theory of Henri
planning."
Fayol. This theory mapped out 14 management principles that manageri needed
to focus on, which included "stability of personnel' (Crainer, 2003). Fayol posited
that an organization needs to achieve as much stability in its workforce as possible
in order to run smoothly since the entry and exit of personnel into and out of the
organization was deemed to be disruptive in an organization.

As the field and the body of knowledge of industrial-organizational psychology

grew and the specializations within HR emerged after World rVar II, HR planning
became increasingly linked with the strategic planning process of companies. In
the 1980s, the release of James Walker's book on HR planning became a hallmark
in the history of HR planning. The book was instrumental in pushing for strategic
HR planning and gave it a structure, focus, and practice not existing before and
helped the specialization develop (Gubman, 2004).
2a MANAGING HUIUAN RESOURCES

Scope of Workforce Plannin$

'sforkforce planning can be performed at various levels of an organization.
Planning can be done for an entire organization, a division or section within the
organization, a set of units or workgroups, or even for a single unit within the
company.

Formal or informal planning

Manpower planning is ordinarily conducted whenever there is a change in

the kind and number of people needed in the organization or in the unit. Changes
in the staffing profile, headcount, or staffing levels occur when there are changes
taking place within and outside the organization.

Ipternal changes within an organizatien can prompt the need for changes in
the staffing profile through rightsizing and re-training or re-tooling. Examples
of internal changes that irnpact the kind and number of people needed include:

a. company expansion
b. financial difficulties, company downsizing, or closure
c. company relocation
d. company mergers
e. changes in technology or production/work systems or streamlining of
systems

f. new product lines or services offered

g. increased targets for production, sales, services, etc.

The need for changes in an organization's staffing levels and profile can be
externally-driven as well. This happens during the times when the economy or
political environment is beset with problems. It also happens when there are
changes in the market where the organization operates or comPetes in (e.g., entry
of new players or competition), or when factors in the labor market change (e.g.,
introduction of new labor laws or standards).

In summary, any internal or external change that affects people in an

organization (i.e., how work is done, how people work together, interact, relate
with one another, etc.) indicates the need for some form of manpower planning,
since it helps the organization identify how it can and should effectively adapt to
that change. Workforce or manpower planning is a necessary part of the many
changes in the management processes and efforts to help the organization to be
more effective, competitive, profitable, and successful.
 Cl-iAPr.En 2 . Workforce Planning and Recruitment

Steps in Workforce Planning

Depending on the nature of the organization (i.e., the size, type of organization,
its industry, history, etc.), workforce planning can be very basic or complicated. It
can be a simple activity performed by one person in one day or a complex process
that involves the HR department working with various units or functional groups
in the organization over a long period of time. Regardless of the complexity of
the process taken, there are usually four distinct phases or stages in workforce
planning (Ivancevich & Konopaske, 2013).

A. Situational analysis or environmental scanning

B. Forecasting demand
C. Analysis of the supply of human resources
D. Development of plans for action

Situational analysis or environmental scanning

In illustrating what the first step of manpower planning is like, recall the
analogy presented earlier about the traveler or vacationer. The traveler needs to
know certain aspects about the planned destination: the weather, the currencS
language spoken, culture, geography and populal tourist spots because knowing
about these facts will help him/her plan his/her trip better. For the vacationer,
knowing enough about the targeted destination will ensure that the planned dream
vacation will materialize. Coupled with this information, the preconceived notions
the vacationer or traveler may have about that particular destination and his/her
past.travel expbriences in general will be useful in making decisions about the
planned trip. In summary, all these bits of information and experiences will help
if the traveler reaches his/her desired location with ease and if heishe is able to use
the information effectively to plan and execute his/her next steps. Ifithout the help
of such information, the traveler might end up wasting money, time, and effort.

Similarly, for the HR practitioner, the first step of manpower planning

involves a review of the environment in which his/her organization operates
and of identifying/focusing on curreRt and anticipated factors in the internal
environment that may affect the organization. Often, the environmental scan
involves examining relevant aspects of the external environment such as the
economy of the country it operates in, the political climate, and the regulatory
and demographic factors, as shown in Figure 2.

Apart from scanning the external environment, some organizations also

consider the internal environment, which involves looking at internal resources
and anticipating how these may need to change in the future to meet organizational
goals.
 30 MANAGING HUMAN RESOUNCES

This internal scan can also include an examination of the history and past
experience of the organization such as the trends in its grorvth or decline as a
company, employee turnover rates, track record in employing and retaining good
workers, changes in leadership, its use of technology, etc. Following the mantra
that past behavior predicts future behavior, it is also valuable for the organization
to make such an examination of its'past "behavior" so that its future is better
anticipated and planned for.

Situational analysis (SWOT analysis)

A structured yet simple way of doing an environmental scan is through a
situational analysis or SWOT analysis. SWOT stands for Strength-Weakness-
Opportunities-Threats.

This method was developed and first described by Edmund P. Learned; c.

Roland Christiansen, Kenneth Andrews, and William D. Guth in1959.It became
popular in the 1980s when General Electric used it as framework to analyze
various internal and external factors that had maior impacts on the organization
and those that were considered vital.to its success'

EXTERNAL FACTORS.
External factors
(opportunities and
INTERNAL FACTORS. threats) considered
The analysis of internal may includethe
factors (strengths foilowing items that
and weaknesses) that generally have an
are relevant to the impact on manpower
manpower plan often in an organization:
includes a review of
the following areas:

!,
::l
;]:
tii
tl
::;

Figure 2. Factors to be Considered in the SWOT Analysis

 ali-li\Fl ER2 . Workf6vee F!**ning and Recrtlitmemt

HELPFUL:,::;,
{For your.objEceqe}

Figure 3. SWOT Analysls Matrix

The SWOT framework categorizes and labels internal aspects of the

organization as strengths and weaknesses and external situational factors as
either opportunities or threats. Through the analysis of these four areas, an
organization is able to identify both positive and negative factors that influence
its success from within or outside the organization. The advantage of doing a
SWOT analysis is that it helps the organization develop a full awareness of maior
factors that may affect the organiiation's ability to attain its goals.

Put together, the facors can be placed into four quadrants of a S\7OT matrix
or table and analyzed in such a way that at orgatization's resultant plans are
able to leverage on existing organizational strengths, correct its weaknesses,
take full advantage of opportunities, and avert identified threats to its success.

After taking stock of these factors and getting a "bird's eye" and "worm's
eye" view of the environment within which the organizaiion operates, the HR
planner is equipped to move on to the next stage of planning, which involves
forecasting and projecting how the future of the organization will be like.

Forecasting demand

As one can imagine, a traveler who haphazardly packs his/her suitcase

without giving any thought to the anticipated weather of the place he/she plans
to visit, and then hurriedly hops into his/her car for the long land trip without
knowing the road conditions and the best route towards his/her destination,
makes himself/herself prone to having a bad travel experience: getting lost along
32 MANAGING HUMAN RESOURCES

the way, wasting time, spending money on what could have been avoidable
expenses, and simply not enioying the trip on the whole.

In contrast, a person who researches exhaustively on the lnternet about the

planned vacation, sources affordable packages from various travel agencies, and
reads up on travel guides about the place to come up with a definite travel itinerary,
a computation of anticipated trip expenses, and even a list of souvenirs to buy
for friends and relatives, is better assured of a dream-come-true vacation. For
this discerning and wise traveler, the expenses for the trip will be projected using
his/her knowledge about prevailing currency, exchange rates, cost of local tours,
meals, souvenir items, and applicable taxes in the chosen destination. Based on
these, a budget for the trip can be prepared so that the traveler knows how much
to save up and bring on the trip.

Such describes the nature and purpose of the next step of manpower planning.
The HR practitioner, after taking careful note of relevant inputs from the
environment scan or S\7OT analysis, begins to map out certain details of the
manpower plan. He/She makes a projection of how many people are needed by
the organization and what qualities and competencies these people must possess
in order to realize the plans of the organization. This process which identifies the
number and kind of people that an organization will need at some point in the
future is known as demand forecasting (Lundenburg,20t2).

For example, a bank that plans ro set up ,n offrhor. branch, after knowing
the economic conditions and regulatory requirements of the foreign country and
the projected operations of that branch, will need next to establish or forecast how
many people (e.g., how many bank tellers, managers, accountants, IT specialists,
etc.) are needed to maintain the branch.

Overall, the process of forecasting uses past data to predict future manpower
needs. Of course, like any prediction, demand forecasting of manpower can be
slightly off-the-mark, or at times, be downright wrong. The precision of the
manpower forecast is dependent on the accuracn completeness, and relevance of
the data used; the method of forecasting employed; and the ability of the forecast
to take into consideration as many factors that can impact the actual manpower
levels.

Figuratively speaking, the HR pracitioner must take a long, hard look into
his/her shiny crystal ball to ensure that his/her predictions are correct. Thankfully,
there are tools and methods that HR practitioners can use in making these
predictions methodically and objectively. Depending on the type of data used
and the type of analysis done, there are two general approaches to forecasting
manpower demands: the quantitative approach and the qualitative approach.
 C|IAPTER 2 . Workforce Planning and Recruitment 33

Quantitative forecasting approaches

The quantitative approaches to manpower demand forecasting involve the use
of statistical or mathematical methods in analyzing the data. Among companies
today, the most common quantitative methods are:

a. Historical ratio analysis

b. Trend analysis
c. Statisticalanalysis

Ratio analysis
One of the simplest ways to make a forecast is through the examination or
analysis of the relationship between two quantitative or numerical factors in the
organization that have a direct impact on the success of the organization. The
particular relationship that is examined between these two factors is that of a
ratio (proportion of one factor measured against the other factor). The ratio
analysis forecasts the extent to which one factor will increase or decrease when
the other factor is changed. Additionally, the ratio analysis examines the historical
relationship of these two factors to project future changes'

In manpower planning, one of the main objectives is to establish staffing levels'

Therefore, in using the ratio analysis, the first factor is usually a causal factor
(one that directly affects or measures the success of an organizational activity)
such as sales volume or production/output and the second factor is usually the
number of employees needed to generate those sales or output. In order to make
the projection using the ratio analysis, the manpower planner proiects the increase
or decrease in manpower needed for the future based on the ratio (nature of the
relationship) between sales volume/production and the number of employees in
the past.

For example, a car dealer studied its sales in the three months and established
that it is able to generate P80 million in car sales in one month with 4 sales
representatives. The ratio is P20 million in sales (causal factor) to 4 sales
representatives. Hence, if the dealer would like to know how many People are
needed to increase sales to P120M a month, they could make the proiection based
on the 80:4 ratio. This would result in a projected need to increase the manpower
by 2 sales representatives.

Because it is straightforward and easy to use, the ratio analysis is used for
manpower planning by both large and small companies. In practice, however,
the historical ratio as a forecasting method best benefits new companies or those
which have little historical data on staffing levels. Organizations that can make
forecasts based on a wide array of information that has been built up over the
course of the company's history are better off using other methods that utilize such
existing and useful information so that their manpower plans are better informed.
g4 MANAGING HUMAN RESOURCES

As experience shows, a decision based on the analysis of more factors is often

much better than one made based on limited information. Hence, it is important
for the HR practitioner to consider as many relevant factors as possible in the
manpower plan so that the forecasts and projections are as accurate and realistic
as possible. The following is an examination of other quantitative methods used
in forecasting that require more data than the historical ratio.

Trend analysis
Quite similar to the ratio analysis, the trend analysis examines the changes in
an organization's staffing levels over a period of time and determines a pattern
or trend in these changes when they are compared with changes in the level of a
key performance or financial metric of the organization.

For example, an organization may look into the total number of customer
service employees it has at the end of each of the last five years, and the number
of customer transactions received in each year. Or, a car dealer may compare car
sales volume per sales representative for each year. Doing so, links the number
of employees with a key factor that is important for the organization (i.e., sales
volume, customer transactions) so that the trend or Pattern in the changes in
these two factors allows the HR practitioner to make future staffing predictions.

Table 1. Figures for Trend Analysis

These data can be plotted in a graph to show the trend or pattern in sales
asthey relate to number of sales staff required and extrapolated to proiect what
will be needed in a future time.

Statistical analysis
Previous methods have focused on forecasts based on the analyses of the
relationship_of single factors (e.g., sales) with manpower levels. An approach to
demand forecasting that can simultaneously analyze multiple factors using more
sophisticated formulas is the Statistical analysis. Specific methods of statistical
analysis include the econometrics modeling and the regression analysis.
 CHAP-iER 2 . Workforce Planning and Recruitment

2oo9 I zoog i zoog W zoos lI zoog I zoog

20

Figure 4. Trend Analysis

The statistical analysis consists of studyinj sets of equations describing

the complex interrelationships of various factors related to the business of the
organization such as production time, sales volume, turnover rates, retirement
rates, growth rate, and net profit on the manpower levels. Often, a mathematical
model is created to describe the interplay of these factors and it becomes the tool
and basis for making estimate of staffing levels for the future.

Since this method requires the input of a larger amount of data and the
simultaneous analysis of a group of factors, most HR practitioners doing statistical
analyses for the forecasting are aided by computer software that are capable of
doing such analyses.

Qualitative forecasting approaches

In contrast to quantitative approaches, qualitative approaches to forecasting
are less statistical and rely on experts' assessment to anticipate future staffing
needs. Although they are relatively easier to use and are often less rigid than their
quantitative counterparts, qualitative methods, nevertheless, demand from the HR
planner an objective and systematic review of past data, experts' experience, sound
judgment, and conclusions derived from existing information or knowledge about
organizational plans. The common methods under the qualitative approaches are:

a. Expert forecasts
b. Delphi technique
.36 MANAGING HUMAN RESOURCES

Expert forecasts
In this method, managers estimate future human resource requirements based
on their past experiences, judgment and knowledge about the organization's
future and its anticipated manpower needs. Since managers are knowledgeable
about organizational plans, they are in a good position to make predictions about
staffing levels that are needed to attain these goals.

sounds relatively simple to

\(hile this intuitive or subjective type of forecasting
do, expert forecasts are critically dependent on the expert's experience and ability
to make use of this experience to arrive at reasonable estimates of manpower
requirements. Hence, the expert who is chosen and tasked with making the
forecast must have enough experience and knowledge of the company's or
department's past performance as well as knowledge of the planned road ahead.
This qualitative approach to forecasting can also entail'the expert's analysis of
historical quantitative and qualitative data, but not neceqsarily with the level of
rigor and detail of modeling or statistical analyses. Such quantitative data are
enriched with the perspective of the expert's experience and knowledge.

At times, the experts can also use information from surveys and benchmarking
studies to estimate workforce staffing numbers.

Delphitechnique
Resting on the same assumption that managers are experts within the
organization who are in the best position to proiect the.needed profile of people
needed for the organization, the Delphi technique, aims to improve the objectivity
of expert forecasts. This method involves a group of preselected individuals
and getting their inputs on future manpower levels and then consolidating their
projections.

The Delphi technique sometimes uses a "bottom-up" approach to gathering

and consolidating staffing'proiections from "experts" within the organization,
such as lower-level managers, and then transmitting these proiections "upwards"
in the organization for the confirmation of higher levels of management.

Alternatively, the Delphi technique may be employed using a series of

questionnaires on staffing pro,ections that are completed by a group of managers.
Data from these quqstionnaires are consolidated by the HR planner and then
shown to the members of the group for their review. The process of reviewing,
consolidating, and presenting to the experts is repeated until an agreement or a
general consensus is reached by the panel of experts.

The Delphi technique may or may not require the group to meet face-to-face.
In either case, considerable skill in coordination, consolidation, and consensus-
building is needed from the HR planner. \0hen the technique involves group
 CiiAPIER 2 . workforce Planning and Recruitment

decision-making, a lot of coordination and cooperatioll among the members of

the forecasting group is required.

Use ofboth quantitative and qualitative methods

HR planners generally do not rely on proiections derived from one method
alone but use several methods to cross-check their proiections and to obtain the
most accurate results. Cognizant that neither the quantitative nor the qualitative
approach is superior to the other, manpower proiections idealiy, should include the
use of both approaches, In combination, the two approaches serve to complement
each other, thus providing a more complete forecast by bringing together the
contributions of various soufces of information and different perspectives.

Analysis ofthe $upply of'Hrxrnan H.escurces

The nelxt step in manpower planning is forecasting supply of human

resources. Forecasting supply involves determining the availability of
manpower in the future by looking at the internal and external sources:
people already employed by the firm and those outside the organization'
(Lundenburg, 2012, P. 4l

Specifically, the purpose of supply forecasting is to determine the size and

quality of present and potential people available from within and outside the
organization to meet the future demand for manpower as identified in step two
of the planning process. Supply forecast is the estimate of the number and kind
of potential people that could be available to the organization.

Using again the analogy of the traveler, at this stage of his/her dream vacation
planning he/she would already have identified his/her ideal travei itinerary, his/
her projected expenses and budget for the trip, and documentary and logistical
requirements he/she needs to travel (such as visa applications, travel insurance,
etc.). He/She would then have to forecast whether or not heishe would have
enough resources (such as time, money, and effort) to realize these plans. In
terms of expenses, for example, he/she would need to establish whether he/she
has enough money saved up, an adequate credit line with the bank, and other
income tiat is expected to come in to cover all his/her proiected expenses. He/
She would need to know, figuratively speaking, how deep his/her pocket is and
determine how much he/she would still need to earn or borrow to defray all the
expenses for his/her dream vacation.

lnternal supply

In the same way that the traveler would check his/her available cash-on-hand
and guaranteed sources of income, manpower supply forecasting techniques
often start with an examination of internal sources of manpower. This means
38 MANAGING HUMAN RESOURCES

that the HR planner must make an inventory of the manpower available in the
organization: number and quality of people available in the organization (their
education, training, experience, job performance, age, years of service in the
organization, etc). The HR planner could also make a skills invenrory which is
a summary of the skills and abilities of employees, especially of those who are
considered critical for the organization's success.

Based on this inventory, assessments are made on the readiness of employees

to move upward or laterally within the organization. Replacement charts are a
visual representation for identifying internal candidates available and qualified to
fill anticipated demand. Replacement charts include both a hierarchical diagram
and information relating to current employee performance, educarion, and an
assessment of how ready the employee is to move to a higher or lateral position.

The two important techniques for forecasting human resource supply are
succession analysis and Markou analysis.

Succession analysis
The succession analysis consibts of: 1) making a detailed inventory of how
many people are currently in various job categories or have specific skills within
the organization and 2) making an analysis of the expected movements and
changes in the inventory as a result of retirements, promotions, transfers, voluntary
turnovers, and terminations.

Promotiorts, demotions, New hires,

transfers, resignations, promotions, transfers
retirements, layoffs,
deaths

Figure 5. Succession Analysis

Markov analysis
The second technique used in forecasting internal supply cailed the Markov
analysis is named after Russian mathematician Andrei Andreyevich Markov. The
forecast is made by developing a transition matrix or Markov matrix that shows
the internal flow of human resources. Specificalfy, projections of movements
of people over a period of time is made based on the historical average rate of
movement from one position to another. The projection is usually expressed in
terms of a statistical probability (i.e., the likelihood of a movement) for the given
period. Table 2 shows an example of a transition matrix.
 CHAPTIR 2 . Workforce Planning and Recruitment

Table 2. Sample of Transition Matrix

Manager 0.10 0:?0

Supervisor 0.05 0.25 i 0.70
Non-supervisory:stafJ O:25 l:;!rsi$

For non-supervisory staff, for example, there is a25"/" probability of exiting

or leaving the organization in 12 months, a 0o/o probability of promotion to
manager, a 10% probability of promotion to supervisor , and a 55% probability
of being a line worker this tinre next year.

This analysis, therefore, allows the HR planner to predict how many people
will remain in the organization in the future and can forecast how many people
there will he at certain levels in the organization. This helps identify the positions
which could potentially be vacant and have to be filled at some future time.

Hxternal supply

In the event that internal supply or inventory falls short of the staffing demand
forecasted, external suppiy forecasting needs t6 be done to see how the gap in
the internal demand and supply can be addressed. This external forecasting
typically involves a labor market analysis such as employment trends, the current
strengths and weaknesses of the workforce, emerging employment trends, college
and university enrollment trends, and economic opportunities that indicate the
availability of people outside the organization (Henderson, 2010).

Development of plans for action

At this point of the planning process, the HR planner has at his/her disposal
an array of detailed information about the supply and expected demand for
manpower, the gap between this supply and demand, and the internal and external
factors that may enhance or diminish the organization's ability to effectively close
this manpower gap.

The final step in planning involves consolidating all of these data and inputs
and determining the most effective strategy to close the gap and achieve the
desired manpower profile. At long last, the HR planner must identify the right
number and profile of people needed by the organization in various positions at
the specified time in the future. Along with these quantitative and qualitative
manpower proiections, the HR planner has to identify the organization's chosen
strategies to reach these projections.
40 MANAGING HUMAN RESOURCES

Among the strategies that an organization can consider to attain the desired
manpower profiles are the following:

a. Acquiring talent and hiring manpower externall,v

b. Building internal talents (through training, promotions, and lateral moves),
c. "Renting talents" through shorr-term contractual engagements,
consultancies, and outsourcing services
d. Making changes in schedules and work arrangements (e.8., providing
flexible work hours, increasing or decreasing overtime work, etc.)
e. Making planned reductions in the workforce through retirements and
exit programs.

In practice, it is rare, if not impossible, for an organization to have a constant

balance between its manpower supply and demand because of volatile economies,
ever-changing needs of organizations, increasing mobility of employees, and simply
because so many factors affect the business or operations of an organization. In
most cases, therefore, there is generally a gap between current manpower and
predicted demand.

In situations where the forecasted demand in manpower for certain iobs is

to decrease its manpower.
less than the current sup,ply, the organization needs
The most common strategies to achieve this would be to have a "rightsizi-ng"
or "downsizing" program that consists of offering early retirement packages,
redundancies, retrenchments/layoffs, reduction of workloads, and combinations
of these. In implementing these exit activities, the organization's compliance to
laws governing separation pay and bther severance benefits is mandatoryl hence,
knowledge of these laws is important to the HR practitioner. Careful consideration
must be given to identifying who among the workforce shall be offered separation
and made part of the exit program. Data on performance, employee tenure,
productivity, etc., are key to helping the organization identify candidates for
the exit program. Finally, the organization must weigh the financial costs of the
exit program to ensure that the proiected long-term financial benefit of the exit
program outweighs the expenses for the exit program.
- In manyorganizations that forecast growth in their operations, the forecasted
demand in manpower is often greater than the proiected supply and thus calls for
the need to "buy, rent, or grow" talent for the organization's future.

The need to acquire talent or manpower from outside the organization

results in the need to engage in recruitment activities to source the needed
 CHAPTiR 2 . Workforce Planning and Recruitment

external candidates. To guide the HR practitioner in sourcing candidates, ciear

recruitment objectives have to be established (Breaugh, 2009).

Aided by inputs from the previous steps of HR planning, establishing the

recruitment objectives means identifying the following:
. Number of open positions to be filled
. Date on which positions should be filled
. Number of applications desired
. Typ" of applicants sought:
- Level of education
- Knowledge, skills and abilities
- " Interests and values
. Job performance goals for new hires
. Expected new-hire retention rate

Other manpower gaps in the organizarion's projected supply and demand

can be addressed by "growing" talent within the organization through training
and development interventions and programs. Jhese will be discussed in detail
in Chapter 5. Additionally, gaps can also be resolved by "renring or borrowing"
talents through outsourcing or by hiring external consultants to handle highly
specialized but non-core activities of the organization. In mapping out these
manpower strategies, HR practitioners must always keep in mind the enablers
and obstacles to implementing these plans effectively. Hence, it is necessary to
review trends established and insights gained in the previous steps of the HR
planning process.

For our traveler, the final step in planning his/her vacarion is coming up with
the final travel itinerarS budget, list of things to pack and so on based on all
information he/she has acquired throughout the earlier srages of hisiher travel
planning. With all the steps he/she has taken, one could definitely conclude that
his/her travel plans are well laid-out and that these will surely pave the way for
the best vacation a traveler could hope for.

Once the process of HR planning indicates rhe need to fill or address a

manpower need in the organization, the quest of the HR practitioner continues
and progresses onto the recruitment stage of talent acquisition. As mentioned
earlier, the open or vacant positions can be filled by promotions or transfers from
within the organization. In the event that these positions have to be filled from
sources outside the organization, the recruitment process comes into play.
 42
Uncle Sam "l Want You for
U.S. Army" poste r, 1917, by
James Montgomery Flagg
(1877-1960)
MANAGING HUMAN RESOURCES
Recruitment
This image of Uncle Sam saying "I want you" for the U.S. Army
is perhaps the most popular, and possibly the mosr effective icon of
employee recruitment in history. This patriotic recruirmenr campaign
drew and attracted millions of American men to enlist in the U.S.
Army and risk their lives in service to their counrrv.
Due mainly to its overuse, this poster design is no longer considered
remarkable in our current time. However, the efficac,v of the
government's recruitment campaign is attributable to quintessential
appeal of Uncle Sam. The choice of the icon and slogan rvas the result
of careftrl and deliberate study and search for a commanding yet
appealing poster boy for the U.S. Army.
In the same way, arry organization seeking qualified candidates
to fill lob openings in a company must think of and engage in a series
of activities that will inform the right people about the job vacancies
and entice these people to apply for these jobs. Nowadays, beyond lust putting
up posters, there are many effective means of recruiting qualified applicants. The
succeeding sections will discuss each of these methods along with their advantages
and disadvantages.
Methods ofRecruitment
Job advertising
Advertising or announcing a job vacancy is the most common way of attracting
people to apply for jobs. There are many ways to do job advertising. A job ad'can
be posted in newspapers, journals, magazines, bulletin boards, and the Internet.
Depending on its nature, iob posting is either paid for or posted for free.
Before the era of the Internet, the most popular method of recruitment was
the posting of job ads or "want ads" in daily newspapers or most often in the
Sunday papers. The ads were normally found under the "classified ads" section.
rTith the dawn of online news sites, announcing job vacancies through newspapers
has expanded to both print and electronic formats.
The main advantage of posting fob ads in newspapers is its ability to reach
a wide audience/readership, depending on the popularity and circulation of the
newspaper. Since more people will know about the job vacancy, this results in
more job applications for the vacancy through this recruitment channel.
 CIAPIFR 2 . Workforce Planning and Recruitment

The main disadvantage of job ads is its cost effectiveness (i.e., ability to yield
good results or outcomes without costing a lot of money). Posting in newspapers
and online news sites, unfortunately, can be more costly, compared to placing
ads through other channels. The cosr of job ads is ordinarily based on the size of
the job ad, the placement or layout of the ad in the newspaper, and the schedule
and frequency of its posting.

Although the high yield of applications from job ads is definitely considered
an advantage, it likewise poses as a disadvantage since the recruiter does not
have any control over the quality of the multitude of applicants who reply to
the ad. Virtually anyone who reads the ad'can apply for the position. For the
recruitment specialist or manager, this means spending more time and effort to
review applications to determine who are really qualified and who are not.

To address this inherent shortcoming of job ads, companies pay more money
for larger ads that contain detailed information about the company and the job
vacancy. Providing more information allows the interested reader and potenrial
lob-sgeker to make a.more informed decision about whether to apply or not.

This deliberate thought process of reviewing information abour an organization

and the job vacancy undertaken by the potenrial applicant making a decision to
apply or not based on his/her assessment of specific requirements or qualifications
is called self-selection.

In the same way that job ads are posted on newspapers, similar job
advertisements can be placed in magazines or other publicarions. compared with
that of newspapers, the readership of these publications tends to be smaller and
more targeted thus yielding fewer applications. However, recruitment practitioners
often get a pool ofcandidates that possesses specific characteristics and qualities
generally associated with the readers of the targeted publication. For example,
if you need to hire a chemical engineer, placing a job ad in a popular science
magazine'will more likely yield applications from chemical engineers, chemists,
or science enthusiasrs than if you place the ad in a newspaper.

lnternet postings

Among these avenues for posting job ads, the most common platform for job
ads is the Internet because it is a relatively inexpensive, quick, and reliable way
of making the company and vacancy known locally and internationally.

Companywebsites
Employers are increasingly using their company websites for recruiting because
it is an inexpensive way to convey considerable information about a iob opening
and the employer.
44 MANAGING HUMAN RESOURCES

This, however, may be considered a relatively passive way of recruiting

candidates because the number of qualified applicants or the "hits" this channel
will get depends on the popularity and reputation of the company and the website
itself.

Research has shown that company websites that are effective in attracting
applicants generally have these characteristics:

a. They contain information that are important to job candidates, such as

description of the position and its functions, expected salary, company
location, etc.
b. They allow applicants to give relevant information online easily (e.g., post
r6sum6s or fill up online application forms)
c. They provide the applicants with the status of their application (e.g.,
acknowledges receipt of r6sum6s, submission of pre-employment
requirements)
d. They include information on the company's application procedure and
explain the next steps that the candidate must go through in the hiring
process.

Online jobboards
Many organizations rely heavily on online job boards such as JobsDB,
Jobstreet (locally) an'd CareerBuilder (in the U.S.) in announcing
vacancies.

These online ads have a wider reach compared to the printed "want ads" and
are generally less expensive than classified ads. However, recruitment practitioners
are also quick to point out that online ads share some of the disadvantages of their
printed counterparts. For example, a common complaint about online job ads
is that they tend to generate too many potential job candidates, some of whom
are unqualified.

Use of socialmedia
Social media sites like Facebook and Twitter are part of people's everyday
life. Their utility has transcended the level of being merely a tool or avenue for
individuals to express themselves; social media has permeated and influenced
almost every aspect and type of human activity, even job-hunting. As more
candidates are using social media as part of their job-seeking strategies,
organizations likewise are using even more varied social networking resources
to recruit. The use of the Internet for recruitment has gone beyond the confines
of iourcing for people who have a technology background or who at least are
computer-literate, and has opened up new opportunities for both job-seeker and
employer/recruiter alike.
 al-lAPil:.i I . Workforce Planning and Recruitment

According to a 201.3 SHRM survey, 77'/" of organiztrtions use social

networking sites for recruiting people. TI.re m:rin reasons why sociaI networking
sites are popular are their cost-effectiveness and their ability to reach iob-seekers
alm<lst anywhere in the world. Since more than half of the rvorld's population
connects to social n-redia sites regularly, organizations can attrirct pcople actively
looking for jobs and even get the attention of "passive" job-seekers.

Passive job-seekers are people who are not actively seeking jobs but are open
to exploring employment opportunities that are offered or referred to them for
their career growth. They are usually employed and, therefore, already have work
experience and have proven to have passed the standards of the organizations
where they are employed. Furthermore, they are often considered as engaged
employees of their companies since they have no expressed desire to look for
employment elsewhere. In summary, passive iob-seekers are an attractive market
for recruiters because of the former's work experience and capacity for engagement.

The most popular social media sites used for recruiting candidates are Linkedln,
Facebook, and Twitter. The 2013 SHRM study found that 94'h of organizations
use Linkedln, which describes itself as "the world's largest professionaI network
with 300 million members in over 200 countries and territories around the globe,
including executives from every Fortune 500 company" (Linkedln Corporation,
2015, para. 1). The services of Linkedln allow employers to announce job vacancies
to its network of users/members for a fee and enable.Linkedln members to view the
profiles of fellow members and examine their professional qualifications online.

In fact, "social networking sites no longer just provide venLres for posting jobs.
Many are adding enhancements such opportunity to brand the employer's
as the
job on Facebook or send targeted emails to groups within those who are registered.
Niche job boards are also growing."

For positions that require specific or specialized skill sets or professional

qualifications, recruitment practitioners sometimes target candidates through
social media sites of trade associations or professional organizations.

Headhunting or executive search firms

There are a number of companies that offer recruitment and selection services
to clients for a fee. They are called "executive search firms," "recruitment
agenciesr" or colloquially as "headhunters." Executive search firms operate by
having pre-screened pools of candidates who are ready to be sent and referred to
companies in need of people. Search firmstan be advantageous to employers who
have limited networks of candidates for critical and senior positions and who have
limited capacity in doing rigorous employee screening and background checking.
These agencies often have vast pools of candidates for varied positions whom they
have screened through batteries of tests and interviews. Because these companies
46 MANAGING HUMAN RESOURCES

are highly specialized, they are able to refer a shortlist of candidates rvho are of
high caliber and open to seeking employment in other companies. Recruitment
firms are also able to help companies cut down on the time needed to find and
hire good candidates. Additionally, they offer a guarantee to the companies that
if hired candidates do not perform well or do not stay on the iob for the agreed-
upon period, the search firms are conimitted to providing a suitable or equally
qualified replacement.
'While
contracting search firms to handle a company's recruitment needs has
its advantages, this approach to rbcruitment is very expensive and is appropriate
mostly for candidates for senior positions or specialist roles. Nevertheless, CIPD
surveys show that about half of all employers see recruitment agencies as an
effective method of attracting candidates.

Employee referrals

Research literature and experience of HR practitioners over the past decadeS

attest to the efficacy of employee referrals as a recruitment channel. In SHRM
surveys, for example, employee referrals are rated as one of the most commonly
used and best methods..

In this recruitment method, current employees of the organization ask or refer

people they know to apply for work in the organization. Many companies have
formal "employee referral programs" that reward or provide monetary anil non-
monetary incentives for employees to refer and encourage qualified candidates
they know to apply for vacant positions in the company.

A20'13 survey done by Jobvite, a company that specializes in recruirment

technology, showed that 680/o of companies offer compensation for employee
referrals so that they could gain a competitive edge in hiring.

There.are also organizations that do not have a formal employee referral

system or program in place; yet employees of these companies invite or refer
people they know as possible recruits. Regardless of whether the organization has
a formal system in place or not, employee referrals are effective for the following
reasons:

1) Employees, especially the good ones, will only refer people rhey believe
will make good employees. This allows for a form of pre-screening to be
done.
2) Current employees are likely io provide those they refer with realistic
information about the job and the culture in the organization, so the
prospective applicants can make more informed decisions whether they
fit the position and in the organization too.
 CrApiER 2 . Workforce planning and Recruitment

3) Current employees are likely to help the person they have referred master
the new job once he/she is hired.
4) Referrals from current employees are an especially effective way to bring
job openings ro the atrenrion of ..passive candidates,, who are highly
qualified bur are already employed elsewhere. These passive candidatei
are not very likely to take notice of job postings, but they will respond to
an inquiry about a job opportunity from someone they know.

Research has consisrently shown rhat, compared with those recruited by

other methods, candidates who are employee referrals tend to have better job
qualifications, perform better, and remain longer in the organization when they
are hired. Specifically, Burks, Cowgill, et al. (2013) found that:

1) Hires from referrals perform approximately 25% better than hires from
'oEmployees,
other sources.
2l A referral from a top performer who is hired will perform almost three
especially
times better compared to the referred worker from a berow average good ones,
performer. A top performer referral who is hired will pefiorm 9Oo/o
percent better than the average referral.
will only refer
3) Referred workers are between 10 percent and 30 percent ress likely to quir
people they
than workers hired from other sources. believe will
Not only are employee referrals effective in recruiting highly qualified make good
candidates, this recruitment method also entails less cost for the organization. employees."
In the u.S., for example, traditional recruitment methods can cost at least
$18,000, but employee referral programs usually cost less than $1,000 (vanNest,
20t2). ln addition, since referred workers tend to stay longer than those hired
through other sources, the cost of turnover is also less for the organization
in the long term.

Research done by Dr. John Sullivan and Associates from 200g-2011 show
that the hiring rate of employee referrals is 1 in 3, whereas for non-referrals it
is 1 in 18 (sullivan, 2012). This metric indicates that it takes the HR personnel
less time and effort to recruir quality candidates since the employee referrer has
already done the initial screening for them. The study also sho*s thrt the time-
to-hire of referrals tends to be around 55% faster than those that simply applied
from an organization's career page.

Although employee referrals are notably successful as a source of good

candidates, organizations that require applicants in large volumes do not benefit
as much from referrals since employees have only a finite number of contacts that
they could refer for employment. The success of the referral system depends very
heavily on the size, span, and volume of the actual network of friends o. .orrr".,,
of the employees and of the recruiters themselves.
48 MANAGING HUMAN RESOURCES

Internal recruitment

Internal recruitment is done when people within the organization are sourced
as possible candidates for new or vacant positions. This internal hiring can be
company-initiated or employee-initiated. In a company-initiated internal hire, it
is the hiring or line manager that identifies a candidate for the vacancy and then
offers the position to the candidate. In an emplo,vee-initiated internal hire, it is
the employee who applies for the vacant position rvithin the same company and
must still be screened and,selected for the job.

Internal hires are advantageous because they are already familiar with the
company and no longer need to be oriented about the general aspects of the
organization for they are on-boarded as much as external hires would need to be.
Depending on how long the internal hire has already been with the compann he/
she will already be familiar with the company rules, its culture, and its operations,
thus saving the organization time and effort for the orientation, socialization,
and onboarding of the employee.

Organizations that allow internal applications also help foster career growth
for people within the company and thereby enhance employee engagement and
commitment. Some companies encourage internal applications by announcing
job vacancies to employees within the company before the vacancy is announced
externally and before external candidates are considered for the position. At times,
companies specify that internal candidates are preferred over external hires.

There are, however, companies that have policies that set conditions on how
and when employees can apply for positions within the company. For example, an
employee may only be allowed to apply for a vacant position within the company
if he/she has been allowed by his/her supervisor and only if he/she has already
been working with the company for a year. Some HR experts say that policies
that restrict internal applications in any way are disadvantageous to the company
(!7heeler, 2005) because it runs the risk of losing a good employee who is unable
to avail of career opportunities within the organization.

Rehiring former employees

Research (Kumavat, 2012) as well as recruitment experience over many

decades (Sullivan, 2014) has shown that rehiring emirloyees who have worked for
the organization in the past has been effective in sourcing qualified candidates.
HR practitioners, in fact, cite the rehiring of former employees as the second best
source of quality candidates; the best source, as mentioned earlier, is employee
referrals.

Rehires, also known contemporarily as "boomerang employees" are

advantageous because then like internal candidates, normally need very little or
 CHAPTER 2 . Workforce Planning and Recruitment

no time at all to get reacquainted with the company, to adjust ro the company
culture, and easily transition into their positions. Their knowledge of the company
operations, work environment, and culture is their distinct advantage over other
candidates.

Recruiting former employees, especially those with good or excellenr track

records with the company, is an effective sourcing channel because boomerang
employees are considered to be "tried and tested" by the company. Additionally,
if they have gained relevant work experience outside the company, rhar makes
rehiring back into the company even more advantageous.

For example, sourcing from previously laid-off workers of a retrenchment or

redundancy program in the past, can be a source ofgood candidates, especially
if these are former employees who were average or above average performers in
the company. Had the company not experienced an economic downturn and not
been forced to let go of some employees, these employees would have presumably
been retained. In such cases, the HR department already has a record of how
these employees perform, which can help the organization assess the former
employees'capacity to be effective contributors and workers when they are rehired.
Similarly, employees aheady have a clear idea of what the company is about and
the "ins and outs" of the organization so that their second onboarding tends to
be easier to conduct.

Depending on the reasons why these employees.left the company and how
long their previous stint was, rehires tend to be more committed to stay in the
company during their second stint than orher external candidates . Even former
employees who left because they were unhappy with certain conditions in the
company, may be more committed to stay oncd they know, upon their rehiring,
that the undesirable conditions in the company have changed for the better, for
example, a difficult boss has already left the company. This is because their
decision to rejoin the company for their second stinr is generally a very well-
informed one and they have a very realistic view of the company due to their
previous experience working in it.

Rehiring former employees who were dismissed due to performance issues

or disciplinary issues, however, is not advisable. considering that past behaviors
predict future behaviors, there is a high risk in rehiring pasr poor performers.
There is little or no guarantee that they will be successful during their second
stint with the company.

The recruitment of "boomerang employees" is cost-efficient since

will be needed for re-training and for building up their
less time and effort
commitment to the organization. Furthermore, if the organization already
knows the rehire very well and has sufficient documentation of their pasr
performances and set of skills and competencies, less time is needed for screening
and the rehiring process.
MANAGING HUMAN NESOUECES

To facilitate the rehiring of former employees, some companies, maintain a

database of their "alumni employees" and have programs to network and to stay
in touch with them. For example, former employees of one of the largesg BPO
companies in America have access to a special alumni employee portal where
they can get news about developments in the company and especially about job
vacancies that need to be filled.

Other companies, on the other hand, encourage former employees to.consider

re-employment by allowing these rehires to retain their previous seniority status
or years of service when they come back.

Walk-ins

Most of the previous recruitment channels discussed so far entail a

deliberate and systematic effort on the part of the organization to source and
search for iob applicants. There are instances, however, when sourcing is not
as pro-active and deliberate. Sometimes, job applicants simply "walk-in" to
apply for the job with or wit-hout knowing if there are available openings in
that organization. ufalk-in applications are made in person, by mail, fax,
or online.

Although these applications are unsolicited, walk-in applicants are considered

to be keenly interested in finding a lob in the particular organization because they
have gone out of their *ay to apply without knowing if there is an opening or
not. $7alk-in applications are mosr common in organizations that are well known
and established and generally have a good repurarion as an employer; hence the
desire ofjob-seekers to be hired in that organizatiot.Large organizations rhat are
known to offer attractive salaries, opportunities for growth, and are considered
"employers ofchoice" tend to especially attract fresh graduates and new entrants
intb the workforce.

V/hile the interest of the applicanrs may be expressly present in such cases, and
these applicants are eager to find work and are readily available for employment,
the company, however, has very little control or knowledge about the quality of
walk-in candidates. Hence, there is a need for HR to spend time and effort in
properly screening these candidates.

In practice, organizations never rely on walk-in candidates. However,

some companies adopt practices that, nevertheless, make walk-in
applicants feel welcome to apply. Doing so helps the organization build
its good reputation as an employer among job-seekers, provided that
HR practitioners respond ro rhese inquiries and applications in a timely
manner.
 a-i-i;iPiEii 2 . Workforce Planning and trtecruit.nent

College recruiting

Each year, there are about half a million students who graduate from local
colleges and universities and become active job-seekers. This forms a very large
pool of potential applicants to recruit from; hence, recruitment strategies and
techniques targeting this sector of the job rnarket have evolved considerably over
the past decades.

The most common forms of college recruitment involve participating in iob

fairs conducted by the schools, forging partnerships with the college placement
offices, posting job vacancies in college bulletin boards, and student internship
programs.

To facilitate the employment of their graduating students, most of the local

colleges and universities nowadays organize "job fairs" for their students. The fairs
consist of activities that provide career planning and guidance and prepare their
students for successful job hunting. Various employers are invited to participate
in these iob fairs and are allowed to set up booths for their companies on campus
where they could meet the students. Arrangements are also made for onsite
submission of applications and applicant screening (e.g., testing and interviews)
during these campus fairs.

Participation of companies in job fairs is advantageous because they are

able to reach a wide group of potential applicanis who are eager job-seekers.
Depending on the fees collected by the schools for participation in these fairs,
the cosi is generally more affordable for companies, relative to that charged by
other recruitment channels.

Job fairs are particularly effective in hiring applicants for entry level positions
in an organization. Employers often target schools that offer academic degrees
and programs which are aligned with what the organization needs in qualified
applicants. For example, a telecommunication company that needs to hire
engineers will benefit greatly from joining job fairs of schools that offer reputablei
established engineering courses.

lnternships

Formal arrangements between schools and employers, called internships, allow

students to work for the company for a specified period of time. Internships are
often part of the academic requirements of some college or technical courses that
students need to complete a program or degree. Under such arrangements students
are assigned by the company to handle actual work and undergo/receive training
to perform the functions of a certain position in the company. The student interns,
depending on the agreements made between the school and the company, may
MANAGING HUMAN RESOURCES'

or may not receive monetary stipends or honorarium for the work they perform
in the company.

Internships are beneficial to employers, schools and to the learners. Employers

engaging the interns are able to spot talented students whom they would want to
hire eventually and who are already trained in and exposed to the organization.
This form of on-the-iob training entails minimaI cost, even if the company pays
the interns. However, it requires a considerable amount of time since the company
needs to train a group of candidates who usually have no work experience at all.
In addition, the potential recruitment that could be done is generally limited to
entry-level positions that can be filled in by the graduating students.

It is easy to see how internships benefit schools since the internships enable
students to undergo real or actual work experience as part of their education and
preparation for their careers.

Creative recruitment methods

Apart from using the traditional means of recruiting candidates as described

in the previous sections, many HR practitioners and employers have developed
their own unique methods of attracting candidates. The creation of these "non-
conventional" techniques are often driven by the need of the company to focus on
a particular segment of the labor market and attract particular groups of people.
In addition, these uni\ue approaches are sometimes developed in line with the
company's desire to stand out from other employers and to convey to prospective
job candidates that it is distinct from, if not superior to, orher employers in the
same industry.
'While
not expressly advertised nor packaged as recruitment strategies, some
large local and global companies organize student leadership training programs
exclusively for the top graduating students as an outreach activity of the company.
Although basically outreach programs, they pursue the company's two-pronged
objective of spotting and developing potential high-performing employees. A good
example of this non-conventional is shown in Box Inset # 1..

As already mentioned, employers can benefit from seeking out prospective

job candidates who are not actively looking for a lob.

Signingbonus
A signing bonus is a lump sum of money that an employer provides to entice
an applicant to join or "sign-on" with the company. Although highly dependent
on the position being filled, the signing bonus typically ranges from five to 25
perient of the projected annual salary of the position the applicant is applying
for. In practice, the signing bonus is used to attract candidates for executive level
 (-f lAPlirR 2 . Workforce Planning and Recruitment

'.'*' , ;
.;r;ii'iiiLS
,iiii;,..,;l,s..'.; j .,.:,i }r ::'ril,Lr,iiJr;'i l;:l'

Accenture, for exanrple, wlrich is a leading global

management consulting company, orgarrizes an annuaJ
Student Leadership Conference for top graduating
students from select top-ranking unlversities. This
undertaking helps students "reach their full potential
and achieve things beyond the ordinary" through
accenture
workshops and structured activities that develop thelr High performance. Delivered.
Ieadership st<ills (AccerLure, 2015). Similarly, the Ayala
In 2012 Accenture had about 80,000 employees in lndia,
Group of Companies has the Ayala Young Leaders
more than in any other country, about 40,000 in the US,
Congress, which is considered an expression of the and about 35,OOO in the Philippines.
Group's commitment to national development and
strategic investment in the youth.
thus able to screen the candidates and arrlve at more
As a recruitnrenl channel, these programs can informed decisions obout their qualifications and overall
.be costly and difficult to organize; however, the main fit as they go through the program.
advantage of such activities is that they are highly
focused and exclusive, for they pre-select only the best At the same time, rn exposing students to the
graduating students. Therefore, theytarget onlythe best organization and its culture and values, the event also
students. Such programs also allow the company to provides students with a realistic preview o-f the work
observe the students as they participate in the various environment and helps them make informed choiies'
activities organized for the participants (e.9., workshops, about pursuing employment in these colppanigs. ln sum,
simulations of the work or real-life problems. student the prograrn is mutuaily and highly beneficial for the
conferences, and social activities). Emptsyg' t -ta participants and the company organizing the event.

positions and positions that historically have high levels of employee turnover.
Sometimes, it is also used to recruit candidates with skills that are special or
difficulr to firrJ rrr rhc jolr market.
Because it is in monetary fornr and its benefit to the candidate is irnmediate,
the signing bonus is advantageous for the emplo,ver since it can effectively influence
a candidate's decision to join the organization. Signing bonuses also are ofterr
giver.r u'ith thr' undcrstanding that the employee can only keep the bonus if he
stays rvith the companl' for a specific period of tinre. Hence, this is advantageous
fron.r the perspective of employee retention, at least for the short-term.

There are, however, also disadvantages to having a signing bonus. Zingheim,

et al. (2009) pointed olrt that signing bonuses can hurt employee morale if they are
available to some rvorkers but not to others, particularly to internal candidates.
For example, if a company offers signing bonuses to external candidates and
not to internirl recruits, the intcrnally promotcd employees are like[y to feel
disadvantaged or shortchanged.
54 MA]TAGING HUMAN RESOURCES

Additionally, offering an incentive to candidates who prefer ro work in rhe

organization in the first place, may be unnecessarS if not pointless. If the applicanr
will take the job with or without rhe signing bonus, having the signing bonus can
be deemed an unnecessary expense for the company.

Other recruitment activities

Among the employers that spend extra effort and invest much of their
resources in creative and even unconventional recruitment strategies/methods are
the business process outsourcing (BPO) companies. These firms are in constanr
need of new people due to the high level of employee rurnover experienced in this
particular industry. Although the compensation packages are generally comperirive
and there are several employment opportunities in BPO companies, the cause of
the high turnover is due mainly to the abnormal working schedules of employees
(i.e., "graveyard shifts'r that start in the evening and end close to dawn). Thus,
this time schedule creates an undesirable and "toxic" work environment. As a
result, it is quite challenging for recruiters in this industry to find a steady supply ,

of candidates who are both qualified and willing to work in such positions.

Because of this tremendous need to fi.ll open positions which are created by the
rapid expansion in the industry and which are constantly vacated by incumbenrs,
recruiters for BPo firms use aggressive and unique recruirmenr methods. Major
roads and thoroughfa'res in cities, for example, are peppered with highly visible
advertisemenfs and eye-catching BPo billboards; even taxi cabs have been turned
into mobile promoters of call or contact centers, as more and more taxis sport
advertisements of various BPO companies.

Taking advantage of the high volume of working class people that take the
MRT and LRT daily, some BPOs set up recruitment booths in the train starions
and malls adjacent to these stations. This way, they are directly and pro-actively
able to do their recruitment "where the people are" rather than passively wait
for people to take notice of their ads and for applications to com6 in. one Bpo
company even sets up "recruitment cafes" in malls and MRT stations where
applicants are enticed to go near the booth and discuss employment opportunities
with the BPO company over a free cup of coffee.

Selecting the Right Recruitment Method

clearln none of the discussed methods can be singled out as the best for
all recruitment needs. Each has its own advantages and disadvantages. Table 3
summarizes and compares the different recruitment methods.
 . Work{orce Pianning and Recruitment

Table 3. Comparison of Recruitment Strategies

Job ads Can be costly Generally high

Screening requires
(newspaper, (posting in company Very little control; yield of applicants
much effort due to
online, website is generally anyone can apply because ofwide
websites) without cost) ' reach
volume

Costs may vary

from zero (website
Online social Requires little effort,
posting) to Little control over
i recruitment
moderately high quality but targeted/
especially with paid
(Facebook, services that do pre-
cost (paid services narrowed down
Li nkedln) screening
of social networking
sites)

Minimal cost r Generally pre-selected

(depending on by referrers Small but pre-
Referrals Requires little effort
rewards given to : Can tap passive selected number
successful referrals)
' Candidates are
sure to have work
experience and to
Rehiring Minimal cost Small number Requires little effort
possess knowledge
about company or the
position
Job fairs have
College Candidates are limited
. a wide reach;
recruiting Minimal to to fresh graduates or Requires much time
internships target
(job fairs, moderately high cost students who are yet and effort to arrange
a small number of
internships) to grdduate
particibants
Moderate to
high cost (fee is Requires little effort
Candidates have gone
approximately since headhunter
Headhunting to various levels of Small but targeted
equivalent to one does most ofthe
screening
month salary for the screening
position being filled)

No control over quality

but candidates are
Walk-ins Virtually at no cost
, generally interested Varidi
Requiies usual effort
in the company and rn screenrng .

ready for immediate

employment
56 MANAGING HUMAN RESOURCES

Effective recruitment challenges

Despite tried and tested recruitment methods, there are several challenges to
conducting recruitment effectively. These include:
. Lack of information or the po,or brand image of the company as an
employer
There are some companies that are clearly popular among iob-seekers, as
evidenced by the constant and steady stream of applicants they get who are both
solicited and unsolicited. Their popularity stems from the positive perceptions
that people have about the company and its good reputation (i.e., brand image)
as an employer.

One way of rating the brand image of a company as an employer is to look at

the number of unsolicited applications received (e.g., walk-in applications) and its
ratio against solicited applications (i.e., in response to job ad, referrals, etc.). The
measure of unsolicited applications received indicates that even if the employer
does not exert any effort to recruit candidates, applications will still come.

Conversely, if a company does not have a respectable/good brand image or if

people know very little about the company, it is unlikely that people may be enticed
to apply to that company. Hence, no matter how good an employer that company
may be in realitn this factlinformation has little bearing on the recruitment effort
if it is not communicated to the targeted job market.
It is for this reason that companies also invest time, effort, and money in
marketing and in improving public perceptions so that they are branded as
"employers of choice." Some companies do so by competing in established awards
programs such as the People Management Association of the Philippines (PMAP)
Employer of the Year or the Employer's Confederation of the Philippines (ECOP)
Kapatiran sa Industriya (KAPATID) Awards. Other companies, on the other hand,
seek formal certification and accreditation as responsible and caring enrployers
through accrediting systems/programs as Investors in People (IiP). Since these
titles and awards attest to the quality of an organization and how it takes care of
its employees, they can be used as effective means to improve their marketability
and attractiveness to prospective candidates.

Examples of these awards are shown in Box Inset # 2.

. Time auailable to fill a uacancy

Among the real or practical challenges that recruitment practitioners face is

the time available to fill a vacancy, particularly, the lack of it. Since a vacancy
at any level in the organization has the potential to disrupt operations and the
work flow in a unit or in the entire organization) HR practitioners constantly
need to handle the pressures of filling vacancies within less and less time.
 - rlrrrir I : . Workforce Planning and Recruitmenl

People Management Association of the Philippines (DOLE) in recognition of outstanding acl.rievements

(PMAP) Employer of the Year
The Employer of the Year (EOY) Award dims to give
recognition to a company that satisfactorily fulfills its
people management responsibillties as dernonstrated
by its leadershlp, dynamisrr, professionalism, strategic
thinking and implemerrtation, conlinL,ous lmoroverrent in
HR pfocesses and programs, lrnkage of HR to business
objectives, and employee focus (People Management
Association of the Philippines, n.d., para. 1).
Employer's Confederation of the Philippines (ECOP)
Kapatiran sa lndustriya (KAPATID) Awards
The KAPATID Awards is a biennial event of ECOP
established in 1995, which recognizes companies that
exemplify good business practices and employer-
worker partnership.
The Awards has four criteria, namely, lndustrial
Peace and Harmony, Quality and Productivity, Social
Accountability, and Strategic Visioning and Partnering
for Business and Job Survival(Emoloyers Confederation
of the Philippines, 2013, para 2 & 3).
DOLE Gawad Kaligtasan at Kalusugan
The GKK is a national award given every two
years by the Department of Labor and Employmenl
and best practices of establishments and individuals
in safety controi and emergency preparedness;
industri6l hygiene and occupational health progranrs;
envlronmental protection, community relations and
social accountability progrdms; capability building in
occupational safety and health (OSH); OSH management
sysiem and international safety rating systems; and OSH
indicators and green productivity (DOLE-Occupationa{
Safety and Health Center, n.d.. para. 3).
DOLE Regional Search for Outstanding Employer
This competition seeks out deserving employers
who deserve to be awarded for their work performance,
social responsibility, Ieadership, management relations,
industry leadersh'p, and concern for worker's welfare
and protection (Tingcang, 2011).
lnvestors in People accreditation or certification
lnvestors in People (liP) is an international quality
standard and framework for good practice in managing
'people. lr is oritcomes based rather than p.q5sr;p1;ra,
and assesses the effecliveness oI people management
practices in helping to achieve business objectives.
ll rs first and fo'crnost a f.amework for improving
performance and rnaintaining corrtinuous improvement
(lnvestors in People-Philippines, 20'13, para. 5).

Often, this situation is aggravated b1'the lack of manpower available to handle all
the recruitmer.rt and selection activiries needed to filt the vacancy with qualified
ca nd idates.

Although rnosr cornpanies norvadays require exiting employees to give the

employer at lcast 1i to 30 davs advance notices of their resignation or one,vear
notice for their rerirenrcnt. it is the challenge for the recruiters to fill the vacancy
either before or immediarely after the employee exits.

Often, HR pr.rcririoners can address this difficulty bv having a consranr and

readv pool of pre-screcned candidates that can be tapped for hiring. This meirns
that even if there is no vrrcancy, tlre HR unit does continuous and proactive
recruitnrent rurd scrcuning for anticipated vacancies in positions that generallv
are observed to have a hich turnover rate or are hard-to-fill.
5tt MAHAGING HUMAIT RESOURCES

How is this activity undertaken?

1. what role does rriorkforce planning play in talent acquisition?
what do you think would happen to an
a Describe instances when vyorkforce planning is necessary.
would you assess the capability of that company
organization that cloes not do manpower planning? How
environment if it does not do manpower planning?
to innovate and aclapt to changes in its externdl
requires the company to lay off people, what
3 ln a company that is faced with a financial downturn and
stepsneedtobetakentodetermineWhointheorganizationhavetobelaidoff?
Given this objective' v/hy is il important
4. Explain the main ob.lective of talent acquisition or recruitment
recruitment?
that manpower planning should precede or be done before
proven by.research to yield good applicants?
what are recruitment methods that have generally been
Why are they effective?
recruitment method to use when filling
what are major factors to consider when choosing the appropriate
a vacancy?
a good image aS an employer?
7. Why iS it important for companjes to invest in maintaining

;r.,". i' 1r. rl. -'l,.,:.i, i: . |t';i:Y'ni;

i"l"{:j{i+i

An established dnd sLlccessful private secondarY,

school plans to put up an elemeniary school division\
by the year 2020. The school is proud of its low'
teacher-student ratlo of 1:20 which allows it to give
personalized quality education to its students lt is
also known for its rigorous academic training in the
fields of science and math. The school also intends
to set up its elementary school by adding one grade
level one year at a time.
1) .Assuming that teachers of the school are
required to have the ability and willingness
to teach allthe subjects in the primary school
curriculum, project how many teachers the
school will need to hire in order to teach the
projected number of students as indicated
in the table below.
What method of demand forecasting
would you use?
Determlne how many teachers will be
needed to teach all the grade levels by
year 2025.
2\ Apart from teachers, the school needs to
employ administrative staff to handie non-
teaching functions Assuming that the school
plans to have a faculty{o-staff ratio of 1:5'
project how many administrative staff the
. school will need to hire over the years up to
year 2025.
The table below contains the data needed to
make the manpower projections. Fili in the 4th and
5th columns with Your answers.

202A Grade.! 200

Grade 1 240
2021 200
Grade 2
 ,a , W{}rkf*rce ?ian*ing anC liecruit*e*t 5-rt___.__
I
I

,:. Grade l 270

::ri:: 6tU'0" , 24A
r ., Grade 3 2AO
Grade 1 300
brade 2 270
2023
Grade 3 240
Grade 4 200
':r.j,rG.iOd,e,,1,:
30o
::: Gra'd6'2 300
braoe J 270
,,i!.cradtiir,4 2aO
: ,-,::Gracle:5 200
r Grade 1 300
; Grade 2 300
. Grade 3 300
I Grade 4 270
i Grade 5 240
braoe b 200

i:..,llit1:r:rlirar. _.:1r,ati:: : 1;:i::;

'li :-;!i1{::::: : -..:a::' .: .:'::::ir:

1 Yo.u have been asked by,the HR manager to make a recruitment plan to hire 3 tr6inirig 6ssistants for
the upcoming San Pedro, Lagqna bra'nch of your Makati-based trainilrg company. The training assistants
can be fresh graduates but must have a degree ln Psychology. Behavioral Science, or Management. They
must possess good English communication skills, as well as interpersonal and customer service skills, and
must have good attention to details, and the ability to work under pressure.

The HR manager has provided a big budget for recruitment of the 3 staff but you need to urEenily fill
the 3 positions in two months. You are the only person in charge of recruitment in the HR. What recruitment
method(s) would you recommend to the HR manager? Describe in detail the method(s) you would use
Explain the basis/bases of your choice of method(s).
1tt'4,
 60 h,!ar.tnsr.t$ HUMri.h! Rrscrt,RcEs

PHASES !N WORKFORCE PLANNING . RecruitmentObjectives.

- Nurnber of c1-,e'r cas :icns to be lilled
STEP 1: Situational Analysis or Environmental
Date on '.^iir c' :c,s''.,cr:s should be
Scanning
filled
. Analysis of internal factors Number of aoplrcal,ons desired
- Human resources - Type oi apPiicaiis sought:
- Current processes )) Level of eCLraai,ci
- Financial lesorrrCS > Knowledge. S< ::S, 3ii abilities
* Physical resources interests artc va ,ies.
. Analysis of external factors Job performance goals for new hires
- Economic trends - Expected new-hire retention rate
- Labor market conditions or trends RECRUITMENT
- Regulatory conditions
Methods of Recruitment
STEP 2: Forecasting Demand
I, 1. Job advertising
2. l,rternet postrngs
manpower demands:
3. Headhunting or execLjitve search frrms
' 1. Ouantitative approaches 4. Enployee:eferrals
i, ... - Hislorical ratio analysis 5. I'tiernar'ecruitme'lt
- T'end analvsis 6. Relriring {ormer employees
- Statistical analvsis 7. Walk-ins
2. Qualitative forecasilng methods 8. College recruiting
- Expe( forecasts 9. Internships
- Delphi technique '10. Creative recruitment methods

STEP 3: Analysis .of the Supply of Human The major factors to consider lvhen choosing the
Resources
appropriate recruitment method to use when filling
r Two important techniques for forecasting vaca ncies:

. Type of vacancy and number of hires needed

.1. Successionanalysis
influence the type of recruitment method to be
2. Markov analysis used
STEP 4: Development of Plans for Action . Cost of recruitment arrd avarlable budget for
recr u i1.ner t
. Time available to fill the position or vacancies
- Acquiring talent and hiring manpower
externally Capacity of the HR unit or hiring department to

"Renting talents"
EFFECTIVE RECRUITMENT CHALLENGES
. , I it,, ' , 'e Making changes in Schedules and
.\"::
work arrangements
:.. 1. Lack of informalion or the poor brand image of
' I
.' ,', l: ,r.::'i Making p,lanned reductions in the the company as an employer
workforce . 2. Time available to fill a vacancy
 ir,:ii) i':;- a . Workforce Planning and Rearuitment 61

ldentify the term being referred to in each statement below. Pick out the answers from the words in the box.

. Signing bonus analysis

Statistical . Plantilla
. Forecasting supply . analysis
Ratio . Staffing plan
. Trend analysis . SWOT analysis . Demand forecasting
. Headhunting or search firm . lnternet posting/Company website

defines the required human 6. : is a quantitative approach

resources needed to deliver the desired
outcomes and helps the organization attain its
objectives.
1 is a term which refers to
a defined structure, hierarchy, categories
of positions, and number of employees per
pos\t\on \n an organ\zation.
3. is a framework used to
analyze various internal and externol factgrs
that have major impact on the organization.
is the process
identifies the number and kind of people that
an organization will need at some point in the
future,
is a tool that refers to the
extent tO which one factor wiil increase or
method or tool that can simultaneousiy analyze
muttipte factors using more sophistlcated
formulas.
.j
7.
planning that invblves determining the
aVailabilit5r of manpower in the future by
l6okiriti 'ai the orgdnization's intelnal' and
..- -::----- - is consldered. as the
cheapest and quickest way of making the
that compairy.'s job opening be known locally and
internation ally.
9. is the recruitment method
:--------r---
used if the employer has limited networks of
c6ngidalres for critical positions.
,

decrease when the other factor is changed. 10 :.1:::;:;I;:;:i- ;r,iS'ther,tump sqf"!,of money
Historical data are usually considered in using that an employer.provides to entice an applicant
this demand forecasting method. to join or "sign-on" with the company.

l;t'