Planning and Recruiting
Planning and Recruiting HMG 6228
University of Central Florida
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This 11 page Class Notes was uploaded by Monica Notetaker on Thursday October 13, 2016. The Class Notes belongs to HMG 6228 at University of Central Florida taught by Dr. Wei Wei in Fall 2016. Since its upload, it has received 23 views. For similar materials see Critical Issues in Hospitality Human Resources in Hospitality at University of Central Florida.
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Date Created: 10/13/16
Chapter 3: Planning and Recruiting Managers who don’t know where they are going --- that is, who don’t plan --- are choosing by default to take the road to high recruitment costs, high training costs, and low productivity Critical steps in the human resource planning process o Identifying potential employees o Encouraging potential employees to apply for a position o Selecting the right applicants for the job Selecting qualified employees is an expensive one, it is considerably less expensive he the alternative: processing unqualified staf Planning Human Resources The human resource planning process involves anticipating an organization’s business demands and providing the staf to meet those demands Two critical factors: the supply of and the demand for staf o Supply represents the number of potential employees that are available to a hospitality company o Demand Represents the number and nature of the jobs the company needs o Supply and demand are afected by conditions both within and outside the organization (internal and external factors) External and Internal Factors Influencing Supply and Demand for Employees External Factors o Three factors combined reduced the demand for employees Recession eliminated many jobs and put millions of people out of work Baby boomers who were projected to retire the record numbers and thus free up positions have instead continued to work Generation Y (1980s – mid 1990s) (Millennials or Echo Boomers) have at last started to look for permanent careers after staying in school or working at part-time jobs longer than previous generations, placing additional pressure on the limited number of jobs available o The highest levels of unemployment in the United States (and many other countries around the world) since the Great Depression of the 1930s Internal Factors o In the past, employees were more likely to leave their current jobs to find better opportunities elsewhere, but that is less true in today’s troubled economic climate o Employees remaining in their current jobs for longer periods of time have put pressure on human resources departments to develop new ways to develop these employees to meet future company needs through training and development programs o Internal supply and demand is also influenced y the upward movement of employees in organizations o Turnover is more likely to occur in the least skilled jobs o One of the most important internal factors influencing the supply and demand of workers is the reputation of a business among employees o Employee satisfaction can determine potential employee supply o Internal factors that afect recruiting What specific competencies are required? How are we going to address competency gaps? How should we develop our succession plan? What performance objectives do we need to establish, and how will they be measured? How will we reward employees? How will we communicate to employees their progress and success? Forecasting Demand The goal of forecasting is to accurately match the demand for employees and skills with the available supply Two general types of forecasting: bottom-up forecasting and top-down forecasting o Bottom-up forecasting The process of asking managers within an organization to estimate their needs for the upcoming period Method is intuitive; based solely on the experience of the managers Not necessarily the best method o Top-down forecasting Eliminates the extent of inaccurate intuitive estimate when forecasting demand for human resources Relies on quantitative or statistical approaches Trend Analysis One method commonly used to forecast human resources demand Competition, demographics, and changing government regulations an influence the demand for human resources Key is to select the single factor that most accurately predicts demand o Should relate to the nature of the business o Evidence does suggest that occupancy rate can be a good predictor Trend analysis consists of six steps o Identify the appropriate business factor that relates to the number of personnel required o Chart the historical record of how that factor relates to the size of the work force o Chart the trend in room occupancy o Compute the average labor productivity for the company o Use the historical employee ratio to project future labor demand o Make adjustments in the trend based on unusual event --- past or present --- that may influence the estimate Garbage in, garbage out o If good information is provided for the computation, hospitality managers should expect estimates to be within 5 to 10 percent of real needs o When poor information is used in the formula, predictions are worthless o Housekeeping and food and beverage departments have notoriously high employee turnover rates Forecasting Supply Involves an analysis of the internal labor supply and an estimate of the external labor supply Easier to forecast the internal supply The internal supply Begins with the careful inventory of the present staf and their current skills Employees may acquire these skills within the time frame of the prediction o Hotel may have a higher number of skilled employees than it realizes The use of skills inventories helps managers anticipate such eventualities Skills Inventories List each employee’s current skills, ability to learn new skills, qualifications, and career goals Compile and maintain skills inventories in computerized human resource information systems (HRISs) o Maintained and updated continually To be efective, skill inventories must meet two criteria: (1) they must be regularly updated (2) both managers and employees must agree on the information included in the inventory Skills inventories for managers are often called management inventories o Emphasize problem-solving skillsand examine an individual’s management track record Promotions, Layoffs, and Retirements In unionized properties, these policies are typically included in the union contract to establish the relationship between employers and employees Help properties forecast supply, because they establish what a property must do when an employee is promoted, laid of, or retires Replacement and Succession Charts Replacement chart o Can help estimate the internal supply of employees in a particular position Succession charts o Used to plot anticipated successions in an organization by position Succession Planning To prepare succession charts for management positions, hospitality companies often begin by completing and regularly updating a management succession plan A management succession plan form quantifies the information in a management succession or replacement chart Management turnover in hospitality is often as high as 50 to 100 percent or more annually Recruitment Buisnessdictionary.com o The process of identifying and hiring the best qualified candidate (from within or outside the organization) for a job vacancy in the most timely and cost-efective manner “warm body” syndrome o Quickly hiring readily available personnel no matter what their qualifications Marriott corporations is ranked as the fourth best diversity-aware company in the United States The vital few o Initiatives the company must undertake for each group Pricewaterhousecoopers o Hospitality companies shows that companies that are most successful at filing high employee needs because of rapid company growth are those that concentrate their human resources eforts on recruitment, career development, culture orientation, and communications Process begins by reconciling the demand for labor with the supply The Pre-Recruitment Process A great deal of recruiting actually takes place before ads are placed in newspapers or notices are posted in employee lounges The pre-recruitment process consists of a number of interrelated steps o Beginning with defining job requirements and ending with evaluating recruiting methods Important considerations of the pre-recruitment process o Define job requirements Define the job and its requirements, a manager needs to understand the primary responsibilities and tasks involved in the job, the background characteristics needed to perform the job, the personal charateristics required, the key features of the organization’s culture, and the manager’s managerial style o Review Job analysis information, job description, and job specifications These tools are current, applicable, and complete o Identify and review applicable laws and regulations o Determine the message you wish to convey to applicants Businesses that carefully consider the message they want to send, and present the situation realistically, establish conditions that encourage long-term success o Determine what you want to learn from recruits about competitors and the community Recruiting also gives managers a great opportunity to learn about the outside world o Decide whether to recruit internally, externally, or both Internal recruitment programs ae designed to create career ladders that encourage personnel to remain with the company longer o Determine where to recruit For external recruiting, managers must determine the sites ith the most potential for applicants --- schools, competitors, apartment complexes, churches, and so on o Select recruiters The impression that many applicants may form about your operation is based on how they perceive the recruiters Right recruiters is critical to attracting the right applicants o Select and implement recruiting strategies and methods Word of mouth Mass media (radio, television, newspapers, magazines, the internet) o Establish criteria for evaluating the pool of applicants Unsuitable catches Waste management time on interviews Not catch any applicants who really fit the criteria To avoid these pitfalls, managers should establish clearly defined evaluation criteria at the outset of recruiting o Establish criteria for evaluating the recruiting methods Costs, costs per hire, number of contacts made, acceptance- ofer ratios, and salary-requested rates all vary depending on the type of recruiting method used The ultimate goal for human resources practitioner is to balance internal promotions and external hires Internal Recruiting Hired from within Beneficial in many ways o Improves the morale of the promoted employee o Improves the morale of the other staf members who see opportunities for themselves o Gives managers a better assessment of the abilities of internal recruits, since their performance has been observed over time o Results in a succession of promotions for supervisory and management positions o Costs less than external recruiting o Reduces training costs Disadvantages o Promote inbreeding; after time, the flow of new ideas into the company diminishes o Cause morale problems among those employees skipped over for promotion o Political overtones; some employees attribute promotions to friendships with managers and supervisors o Create a critical gap in one department when personnel are use to fill a gap in another External Recruiting Hiring from outside sources Easiest at the entry level because managers can readily evaluate the skills and abilities required for such jobs Advantages o Brings “new blood” and new ideas into the company o Gives recruiters an opportunity to see how things are on the outside by talking with applicants from both direct and indirect competitors o Provides fresh look at the organization, which sometimes reinforces the reasons current employees work for the company o Sometimes cheaper than raining current employees o Avoids many of the political problems associated with internal recruiting o Serves as a form of advertising for the company Disadvantages o More difficult to find a good “fit” with the company’s culture and management philosophy through external recruiting o Morale problems can develop if current employees feel they have no opportunity to advance in the organization o Job orientation for external recruits takes longer than it does for internal recruits who already know the goals of the company, how the payroll system works, and so on o Lower productivity over the short run o Political problem and personality conflicts can result when employees believe they could do the job as well as the external recruit o External candidates amy not prove to be as they first appear Recruitment sources Managers recruit through the most common methods available Internal Sources Include career planning, skills inventories, and internal job posting systems Postings or announcements include a job description and job specifications to inform employees of the responsibilities and skills required on the job Job bidding results when employees sign a list indicating they are interested in applying for posted positions Employee referrals can be one of the most cost efective methods of recruitment today Providing incentives, rewarding employees with promotions, and targeting employees for future promotions are all efective ways to make referral recruiting better External Sources Local circumstances determine sources for external recruiting Typical sources that may be of value o Employment agencies o Schools o Colleges o Churches and synagogues o Youth groups o Apartment complexes o Apartment newsletters o Local sports teams o Women’s group o Child-care centers o Professional trade journals o Craft centers o Exercise centers o Senior citizen groups o Government division on aging unit o Agencies for people with disabilities o Student organizations o Sales, supply, and machinery representatives o Community events o Urban league and other agencies o Government rehab agencies o Social media and company website testimonials o Government veterans’ agencies o Chamber of commerce o Social/health organizations o Soial service organizations o Volunteer groups o Welcome organizations o Military agencies o Employees at other companies o State American hotel and lodging associations o Local and state assistance programs o Ads o Employees at same-chain properties Retied employees of the operation may be happy to help out and can provide an immediate source of qualified workers during staf shortages or in other times of need Other methods used successfully o Telecruiting o Talent scout cards o Point-of-sale messages o Direct mail campaigns o Database recruiting o Government-funded programs o Information seminars o Referral incentives o Sign-on bonuses Creative Recruiting tactics Open houses o Much like open houses at homes for sale, allow potential recruits to see the operation for themselves Interaction sessions o Applicants get to know each other Online Recruiting The measures most commonly used to asses website quality include an examination of the site’s readability and the organization’s efectiveness in promoting itself to potential customers and potential employees Potential applicants today can learn about specific jobs, the company’s potential for growth, orientation and compensation programs, and other factors that might influence their decision to apply Good websites include online applications or links to application sites Testimonials and YouTube postings by employees are also efective One of the advantages of posting jobs on the internet is the potential for a rapid response Advertising Must be done with care Must obtain permission before distributing job notices, bulletins, and other forms of advertising Evaluating Recruitment Methods A critical determinant of recruiting success is the rate of applicants hired via each recruitment method per dollar spent on the process Managers must maintain files on each method used in order to conduct an assessment of diferent recruiting methods o Files should contain information about costs (both in terms of dollars and recruiting time), the number of recruits attracted and hired, and so on o Data gathered can create a recruitment efectiveness log Recruiting from the Applicant’s Viewpoint An applicant’s point of view can provide managers with information on how recruiters function Managers themselves have been --- or may be --- recruits at some point in time Applicants can provide valuable information about competitors What Recruiters look for Appearance, first impressions, and personality all rated very high with recruiters Recruiters on college campuses are interested in learning about candidate’s strengths and weaknesses and in determining how these characteristics served as advantages or liabilities in previous jobs Want to know about applicants because they represent the future market for companies Look for “digital dirt” on applicants today by scanning the internet for information about applicants’ lives 83 percent of the companies it studied conducted “digital dirt” searches Applicants who are worried that their activities posted online will haunt them, have some choices: o Overwhelm the negative impression by posting a lot of new information that casts the applicant in a more favorable light o Delete information o Hire professionals to cleanse their internet presence Preparing for recruitment interviews Benefits the candidate to do some preliminary research Find out basic facts about the company, any recent developments within the company, the direction in which the company is headed, and how it is perceived by stock analysts Hospitalitynet.org or ehotelier.com What Recruiters Ask Typically request the same general information Excellent interview skills are very important to their hiring decisions Follow up each interview with a thank-you letter o Regard this as evidence of the candidate’s attention to detail o Final indication of his or her final interest in the position Applicants are doing Their Homework, too Applicants are sizing up the company with which they are interviewing at the same time the company is sizing them up o Looking for reasons they might want to work for the company Develop an interest in a specific company for various reasons o Personal experience as a consumer o Word-of-mouth from faculty members o Word-of-mouth from alumni o The company’s representative’s personality o Word-of-mouth from students o Guest lecturers in class o The company representative’s appearance o Company participation in job fairs o Three-month work experience and internships o Company-sponsored tours Least influential o Company sponsored scholarships o Company videos o Company sponsored social events o Company information on the internet Human Resource Information Systems (HRISs) Can be a competitive advantage for companies Some believe that HRISs are a means to control employees, others believe the objective is data control, while still others see such systems as developmental changes in the social psychology of organizations “personnel departments” o Focus was keeping records on employees An HRIS is a method of collecting, maintaining, organizing, analyzing, and reporting information about people and jobs Another recruiting tool because it provides so much useful information about supply, demand, specific needs and characteristics of employees, and so on The types of data typical stored in an HRIS include: o Personal data o Recruiting data o Work experience data o Compensation/work assignment data o Benefit plan data o Exit interview data Used in operational reports, regulatory reports, and analytic reports Operational reports in a hotel might include such items as job vacancy information, wage reports, or recruiting reports Preparing regulatory reports --- such as required annual reports to the EEOC and OSHA --- is much easier when information is collected, stored, and compiled in an HRIS One of the best applicants of an HRIS is analytical reporting o Compare method of recruiting to turnover activity Federal privacy act of 1974 limits only information collected and stored in federal agencies, it provides some indication of where limits may someday be placed in private industry Operators employing HRISs should review and be aware of the three specific rights of individuals under this act o review, copy, and amend reports about themselves kept in any personal file o prevent information about them from being used for any purpose other than that for which it was collected o sue for damages as a result of any action that violates their rights best protection in this area o set up specific policies regarding the collection and use of information o inform employees of these policies o require employees to read and sign a statement acknowledging these policies System Errors mistakes associated with an HRIS are related to the system the business chooses total systems implementation will cost approximately eight times the software and hardware costs any property considering an HRIS should keep the following points in mind: o managers should be active participants in installing the system o data collection should focus on “need to know” information o reporting needs should be analyzed thoroughly before choosing a system development of needs analysis vendor evaluation customization technical testing acceptance testing
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