BUS301 Study Guide

Unit 3: Recruitment and Selection

3a. Discuss strategies for recruiting and selecting talent in an organization

  • How does an executive search firm differ from a corporate recruiter?
  • What is an employee referral program (ERP)?
  • What are the goals of employee orientation and onboarding?
  • What is one advantage of using social media to attract talented people to an organization?
  • Although there are many reasons why corporations incorporate social media in their recruiting efforts, why should they be cautious in relying on social media for screening and background checks?

HRM should ensure the recruiting and selection process is fair and the outcomes are positive for both the applicants and the organization.

Overview of the Steps to the Recruitment Process

Overview of the Steps to the Recruitment Process

Various recruiting methods have advantages and disadvantages. Employee leasing refers to businesses that "rent" employees from a management company because they do not want to manage or keep track of payroll and other HR costs and responsibilities.

Many companies successfully use employee referral programs (ERPs) to recruit new employees by asking current employees to recommend job applicants. The referrals' quality is generally high, and they are often an important part of the overall HRM strategic plan and recruitment strategy.

Special interest groups (SIGs), also called specific interest groups, follow a particular profession or area of interest, such as women in project management. SIGs may require membership and may have areas for job postings or discussion boards.

Companies use social media recruitment in many ways in their recruiting and selection process. Advantages include a wide reach for potential talent and the relatively inexpensive costs of proactively ensuring a healthy pipeline of qualified applicants. In addition, it is an effective way for a company to promote its brand and foster credibility. LinkedIn, Facebook, and Twitter (now "X") are popular sites for companies to maintain their profiles.

However, companies need to be aware of existing state and federal employment laws when using social media for tasks such as screening applicants and performing background checks. While social media supports recruitment efforts, it is recommended that companies rely on clear job descriptions, good interview questions, and due diligence as the foundation of their recruiting and selection efforts. 

Other ways of sourcing talent or an organization include (but certainly not limited to):

  • internal postings;
  • advertising in newspapers and specialist publications;
  • search consultants;
  • schools and university contacts; and
  • word of mouth from current employees.

Advantages and Disadvantages of Recruiting Methods

Recruitment Method

Advantages

Disadvantages

Outside recruiters, executive search firms, and temporary employment agencies

Can be time-saving.

Expensive.

Less control choosing final candidates to be interviewed.

Campus recruiting and educational institutions

Can hire people to grow with the organization.

Plentiful source of talent.

Time-consuming.

Only appropriate for certain types of experience levels.

Only appropriate for certain types of experience levels.

Professional organizations and associations

Industry-specific.

Networking.

May require a fee for ad placement.

May be time-consuming to network.

Website or Internet recruiting

Diversity-friendly.

Low cost.

Quick.

Could be too broad.

Be prepared to deal with hundreds of résumés.

Social media

Inexpensive.

Time-consuming.

Overwhelming response rate.

Events

Access to specific target markets of candidates.

Can be expensive.

May not be the right target market.

SIG (special/specific interest groups)

Industry-specific.

Research required for specific SIGS tied to jobs.

Referrals

Higher quality people.

Retention.

Concern for lack of diversity.

Nepotism.

Unsolicited résumés and applications

Inexpensive, especially with time-saving keyword résumé search software.

Time-consuming.

Traditional classified advertisements (print and web-based)

Can target a specific audience.

Can be expensive.

Employee leasing

For smaller organizations may mean the leasing company administers compensation and benefits.

Can be a good alternative to temporary employment if the job is permanent.

Possible costs.

Less control of who interviews for the position.

Public employment agencies

May recruit a more diverse workforce

No cost to the employer.

Thousands of points of service nationwide.

May receive many résumés, which can be time-consuming to process.

Labor unions

Access to specialized skills.

May not apply to some jobs or industries

Builds relationship with the union


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3b. Describe best practices in recruitment and selection

  • To avoid prejudices in the hiring process, what is good advice about screening applicants?
  • What are other best practices when recruiting and selecting an applicant?
  • Contrast validity and reliability in evaluating and choosing selection tools for hiring new employees. Which concept implies we should get the same results repeatedly?

It is helpful to compare applicants after interviews using a common set of information to assist hiring managers in avoiding prejudices. Additionally, several rounds of screening with different interviewers and involving senior management in the process all contribute to a perception of fairness and enthusiasm within the company.

In addition to the interview process, other best practices include valid and reliable selection tests, background checks, and evaluation of the degree of "cultural fit" and value congruence with the organization. These are important elements of effective hiring practices. Selecting the right people by employing these best practices impacts subsequent turnover and productivity.

Validity refers to the underlying construct of a measurement or whether it measures what it purports to measure. Three main types of validity include content, construct, and criterion validity.

Reliability refers to whether a researcher can obtain the same measurement or result time after time or is repeatable. For example, will a company's recruitment and selection processes work every time they need to hire someone, or just once?

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Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • employee leasing
  • employee referral programs (ERPs)
  • reliability
  • social media recruitment
  • special interest groups (SIGs)
  • validity
  • value congruence