What is the HR Planning Process
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What is the HR Planning Process
Cal Poly Pomona Professor Burnley College of Business Administration Summer 2019 Management & Human Resources Department
Human Resources Management (MHR 3210) Online
Exam 1 Review
Chapter 1 (Sections 1-8a, 1-8b, 1-10)
- HR Planning
- HR Planning Process (pay attention to everything in slide with the planning process; including the links)
Q: What is HR Planning?
- Process of analyzing and identifying the need for an availability of people so that the organization can meet its strategic objectives
HR planning helps employers get the right number of employees with the right capabilities at the right times in the right places.
Q: What is the HR Planning Process
- Conduct SWOT analysis
- Determine available workforce
(How many employees within the organization that are available to move into other positions and how many potential employees are available out in the open market)
- Forecast supply (1-10a) and demand for human resources (employees) (1-10b)
- Managing Talent Supply Imbalances
- (Figure 1-4 along with the obvious possibility of hiring to address a talent shortage. See following link regarding layoffs/RIFs
Q: What is recruiting?
- The process of generating a pool of qualified applicants for jobs. Recruiting is the first part of “staffing.”
Q: what are some Recruitment types?
- Internal Recruiting:
- Recruiting existing employees for open positions; this is generally done through the following:
- Job postings on bulletin boards or company intranet
- Supervisor/HR recommendations based on employee assessment of performance appraisals, education and other knowledge and skills
- External Recruitment:
- The following are common external recruitment sources:
- Advertising – company website, career websites, newspapers, magazines, etc…
- Educational Institutions
- Career Fairs
- Employment Agencies and Employee Search Firms
- Professional Associations
- Employee Referrals – the book refers to this as “word of mouth” under internal recruitment. However, when an existing employee refers a friend for example, that friend is from the labor market. Therefore employee referrals are an external recruitment source
Cost of Recruitment:
Total recruiting expenses* = Recruiting Cost per Hire Number of Recruits Hired
*Recruiting expenses – *Recruiting expenses – different organizations include different expenses. For example, I disagree with the expenses listed in the book being categorized as “recruitment” expenses. The expenses in the book are “selection” expenses and/or employee compensation expenses in my opinion. See “# 3 Cost of Hire” at the following link for expenses that I think are true “recruitment” expenses; all except for the last expense they have are recruiting expenses
- There are other metrics used to evaluate the effectiveness of recruitment other than the cost of recruitment. Check out the link on the previous slide again and take note of the following metrics:
“7 Recruiting Metrics You Should Really Care About”
- Time to Hire
- From the time you advertise your vacancy, how much time passes before the successful candidate starts? Not just before they accept your offer, but until they are actually on board?
- Companies with strong talent management processes have faster hiring times than those without.
- Of course, the exception is any market that is short of suitably talented candidates; if you have strict hiring standards, it may take longer to find the appropriate person.
- Compare the time to hire across different roles and aim to lower the average as time goes on.
Every job vacancy needs to know:
- How many applicants came from each source;
- How many qualified applications were garnered from each source;
- Where the short-listed applicants were sourced; and ultimately
- Where the successful candidate first heard about the position.
- Cost of Hire
- Advertisements placed (if they are billed directly to you);
- Setting up and maintaining social media accounts like Facebook and LinkedIn;
- Time your hiring managers spend interviewing potential employees;
- Recruiter fees; and
- Any accounting and administrative costs involved in setting up a new employee (eg contracts, pay accounts, health benefits etc)
- Now that you’re seeing the true extent of the costs involved in hiring a new employee, it’s important to look at your retention rates .
- Thousands of dollars per year can be drained from your budget with low staff retention rates. The costs don’t just come from direct expenses associated with hiring a new person but also in the loss of productivity around the resignation, rehiring and retraining processes.
- Remember the cost of losing an employee can be as high as 3-4 times their salary. Retention rates are best looked at from a cross-sectioned perspective. What is the turnover rate for a specific role?
- Compare that to the turnover rate across specific departments. Try checking the turnover rate by pay grade. i.e how many resignations vs terminations has each department / role / pay grade had? A proper analysis of this metric should be performed every 3-6 months and graded across a period of time to show trends.
- Open Vacancies vs Position Filled
Chapter 4 and Appendix D
- Internal recruitment and methods/sources
- External recruitment and methods/sources
- Internal vs. external recruitment (advantages/disadvantages)
- Recruiting Evaluation
- Cost of recruiting
- Recruiting expenses
- Time to hire
- Sourcing Channel/Recruitment source yield
- Open Vacancies vs. Filled positions
- Acceptance Ratio
- Selection methods (i.e. applications, interviews, etc…)
- Selection criteria
- Predictors of selection criteria
- Background investigations (i.e. medical exam, drug test, etc…)
- Negligent hiring
- Unlawful pre-employment inquires (Appendix D)
- Training (definition)
- ADIE Model
- Organizational analysis
- Task analysis
iii. Person analysis
- Reaction, Learning, Behavior and Results model
III. Types of training and development (orientation, legal compliance, etc..)
- Performance Management
- Performance Appraisal
- Performance Criteria
- Performance Standards (SMART from slide)
- Performance Methods
iii. Forced Distribution
- Critical Incident Method
- Performance Appraisal Errors
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