Week 6 Task 2

User Generated


Business Finance


Osram Sylvania

Read the opening vignette in Chapter 13 - Osram Sylvania

In what ways did the technology improve the company's staffing function?

Do you think it is appropriate for Osram Sylvania to rank-order applicants based on their answers to the online prescreening questions? Why/why not?

If you were a hiring manager at Osram Sylvania, what metrics would you most want to have available about your hires?

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PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Chapter 13 Staffing System Evaluation and Technology Outline Staffing Technology at Osram Sylvania Staffing Outcomes Evaluating Staffing Systems Key Performance Indicators Staffing Metrics Six Sigma Initiatives The Balanced Scorecard Approach Staffing Evaluation Ethics Technology and Staffing Evaluation Résumé Screening Software Applicant Tracking Systems Company Web sites Digital Staffing Dashboards Develop Your Skills: Creating a Digital Staffing Dashboard Staffing Technology at Osram Sylvania Summary Learning Objectives After studying this chapter, you should be able to: • Describe the effects staffing activities have on applicants, new hires, and organizations. • Explain the different types of staffing metrics and how each is used best. • Describe a balanced staffing scorecard. • Explain how digital staffing dashboards can help managers monitor and improve the staffing process. • Describe how staffing technology can improve the efficiency and effectiveness of the staffing function. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Staffing Technology at Osram Sylvania1 The North American business of Osram AG of Germany, Osram Sylvania, is headquartered in Danvers, Massachusetts. Employing over 11,000 people, Osram Sylvania has provided lighting solutions for homes, businesses, and vehicles for over 100 years. As a manufacturing organization, the effectiveness of the company’s processes determines its success. The company recognizes that its recruiting process is costing it unnecessary time and money as it fills 80 or more open positions a month. Osram Sylvania’s recruiters gather e-mail résumés from the company Web site and various job boards, then cut, paste, and forward them to hiring managers. Each recruiter spends 6 to 10 hours per week just cutting, pasting, and forwarding the e-mail résumés. The company also lacks a standard recruiting process across its 26 North America locations. As a government contractor, Osram Sylvania is subject to the Office of Federal Contract and Compliance Program’s (OFCCP) Internet Applicant Guidelines that it is finding difficult to meet without some form of technology. The company wants to streamline its recruiting processes, provide a common structure for all 26 locations, and incorporate external staffing vendors to effectively source and hire quality employees. Imagine that Osram Sylvania asks you for advice on how it can better incorporate technology to create a more effective staffing system. After reading this chapter, you should have some good ideas that you can share with the company. Executing a business strategy is often harder than creating one. One study found that of the 90 percent of 1,800 large companies that had detailed strategic plans, only about one in eight achieved their strategic goals.2 Why so few? Not tracking performance is one reason.3 Another reason goals go unmet is because it’s unclear who within the firm is accountable for their execution.4 The same is true for the staffing function. A key goal of strategic staffing is to get the right people with the right competencies into the right jobs at the right time. But doing so requires that the effort be continually monitored, tracked, and evaluated. Few companies make investment decisions about recruitment and staffing based on hard data, rather than anecdotal evidence. Yet some companies do successfully use data to create a competitive staffing advantage. HR technology company SAP is using data analytic tools to better support company goals, including analyzing recruiting metrics and learning and development program outcomes to get new hire up to speed even faster.5 Corning Inc. gets monthly reports from its recruiting vendor showing the number of applicants versus hires from each recruiting source, including all major and niche job boards. This helps Corning to decide what percentage of its budget to spend on each sourcing channel. Corning believes that it would spend 50 percent more on its recruiting function if it didn’t analyze this information regularly because it would throw money at the wrong sources.6 Technology makes it possible to monitor the recruitment process in real time, making it possible to identify bottlenecks or a possible bias and correct it quickly. Qualified candidates can be identified as soon as they submit an application, allowing the extension of an immediate interview offer. This both speeds up the hiring process and improves the applicant experience. It can also be possible to have an applicant tracking system hide personal details when recruiters are assessing applicants, reducing the potential for bias. Applicant tracking systems can also identify and flag differential job offer rates across interviewers. For example, if one interviewer is advancing 50 percent of the candidates interviewed and another is advancing only 10 percent, the reasons can be examined and training provided as needed.7 Staffing Evaluation the analysis of a staffing system to assess its performance and effectiveness To maximize the effectiveness of a staffing system and the investment made in it, evaluating the process is critical. A staffing evaluation enables a firm’s human resource department to justify what it has done and to identify how its activities contribute to the organization’s bottom line. Part of making sure that the human resource department is effective is showing a firm’s top managers the hard numbers related to the company’s staffing. Measuring and evaluating the staffing function can also provide a firm with feedback about how well its various policies are being implemented. For example, many firms claim to have a “promotion from within” policy, but don’t actually promote many employees. Unfortunately, these firms continue to claim success because they lack systematic information about actual internal promotion rates. Additionally, as we discussed in Chapter 8 measured are more likely to be , things that are PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. attended to and addressed.8 The feedback provided by the evaluation effort is necessary to refine and further develop a firm’s staffing policies and practices, as well as to learn how well they are achieving their intended results. Technology is an important tool in the staffing process. Technology can enhance the usability and efficiency of sourcing, recruiting, and assessment tools. It can also create a positive candidate experience that enhances the company’s employer brand and helps candidates better understand the company, its jobs, and its career opportunities. The Internet can also be used to conduct interviews or administer assessments, saving time, improving standardization, and facilitating assessment validation, analysis, and improvement. The data sets created by online or electronically administered tests also facilitate the development of optimal scoring algorithms and the identification of any adverse impact. We have discussed aspects of staffing evaluation at various points in the book. The purpose of this chapter is not to review themthe aspects of staffing evaluation but to discuss the broader issues related to evaluating a staffing system. We first describe different types of staffing outcomes, and then discuss the techniques and tools used to evaluate them as well as the staffing system as a whole. We then describe the role technology plays in terms of the staffing and evaluating process. After reading this chapter, you should understand why evaluation is critical to strategic staffing, how to evaluate staffing systems, and how to leverage technology to improve the effectiveness of staffing systems. Staffing Outcomes How far-reaching are the effects of staffing activities? Staffing activities extend far beyond simply hiring and promoting people. An organization’s staffing activities affect a firm’s applicants, new hires, customers, and the organization as a whole. Before they ever become employees, the strategic staffing process influences people’s willingness to apply and stay in the candidate pool, their expectations about the job and organization as an employer, perceptions of fairness, and willingness to recommend the employer to others and accept its job offers. The influence of strategic staffing on a candidate does not end once a candidate is hired. For example, if the firm recruits and screens for the wrong candidate characteristics, it will hurt its chances that a new hire who accepts the company’s offer will succeed in the organization. It will also mean that the talents and efforts the organization needs will be missing. The negative spillover effects related to poor staffing practices can hurt the organization’s future recruiting success and image as an employer as well. As a result, it may take longer for the firm to fill jobs, create higher turnover and lower new hire quality, reduce the firm’s supply of internal leadership talent, and lower the return on the company’s staffing investment. By contrast, hiring the right people allows the organization to leverage the contributions of its employees right away rather than having to invest the time and resources necessary to change how they behave and think. Performing staffing activities strategically reduces the time to fill open positions by increasing the number of employees qualified for promotion. It also increases the return on the investment a company has made in its staffing system. Figure 13-1 shows how effectively designed staffing systems can create a positive cycle of employee outcomes that enhance an organization’s effectiveness. Similarly, poorly designed systems can create a negative cycle that can derail an organization’s expansion efforts, impede its strategic implementation, and limit its long-term profitability. Granted, other factors including training, the supervisor’s management skills and style, and compensation can also influence some of the new hire outcomes listed in Figure 13-1 . However, staffing practices can strongly influence these outcomes, and the ways in which they do so are relevant to strategic staffing. Both good and bad staffing practices have financial consequences for organizations. A firm often incurs large direct costs if critical positions are unfilled for longer than necessary, for example. Direct costs are those charges incurred as an immediate result of some staffing activity. For example, poor hiring increases a firm’s direct costs in the areas of training, supervision, turnover, and lower productivity. Direct costs are relatively easy to measure and track over time. Direct Costs costs incurred as a direct result of a staffing activity Indirect costs are those not directly attributable to staffing activities, such as lost business opportunities, missed deadlines, lost market share, cost overruns, reduced organizational flexibility, and declines in the morale of a firm’s workforce. The indirect costs of poor hiring can be even more significant than the direct costs but more difficult to measure. Conducting a staffing evaluation can help a firm calculate both the direct and indirect costs of its staffing system and identify ways to improve the company’s return on its staffing investment. Indirect Costs costs not directly attributable to staffing activities (e.g., lost business opportunities and lower morale) PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Evaluating Staffing Systems As we have explained, evaluating a staffing system allows a firm to objectively assess how well its different staffing initiatives are working and to subsequently improve them. As you learned in Chapter 8 , regularlyRegularly measuring key pieces of information and correlating different staffing measurements can be extremely valuable. Tracking data and making comparisons over time is one way to do this. For example, tracking turnover rates for the organization as a whole and for its individual departments and jobs can help a company identify trends in its staffing; so will tracking the firm’s headcount in combination with other factors, such as its revenue or production volumes. This will allow the firm to identify how closely one factor leads or lags another and understand how the firm’s staffing activities affect the rest of the organization’s operations. Establishing meaningful trends and relationships enables a firm to make more accurate projections and action plans as well. Next, we discuss key performance indicators, staffing metrics, the role Six Sigma can play in terms of improving the staffing process, and how the staffing evaluation process is implemented. Figure 13-1 Strategic Staffing Outcomes Key Performance Indicators Staffing evaluation begins with an understanding of the requirements of the company’s business strategy, talent philosophy, human resource strategy, and staffing strategy. These factors determine what the firm’s most important staffing outcomes are. Once we identify these outcomes, we identify key performance indicators (KPIs) that are measurable factors critical to the firm’s success and long- and short-term goals.9 KPIs are the outcomes against which the effectiveness of the staffing system is evaluated. Key Performance Indicators (kpis) measurable factors critical to the firm’s success and longand short-term goals To design effective KPIs, it is essential to understand what is important to the business and what key business measures exist.10 Many factors can be useful to measure and track. However, the KPIs that will result in an organization’s success are those best able to enhance a firm’s strategy execution. These KPIs can include things such as financial measures of revenue growth, customer satisfaction, innovation, and a firm’s globalization efforts.11 For example, an evaluation that demonstrates that a new staffing system increased a firm’s revenue because the company’s new hires were of higher quality and generated revenue more quickly shows how staffing can contribute to the bottom line. In this example, the KPI is employee revenue generation, and the related staffing evaluation metrics are new hire quality and time to productivity. It is also important to focus on company culture PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. and the stakeholder values that will lead to organizational success in choosing KPIs. If a stated business objective is to develop a diverse workforce, it is important to identify and track underrepresented candidates and employees and where they were recruited so that those sources can be leveraged. In terms of evaluating staffing systems, it is important to understand lagging and leading indicators. A lagging indicator is a factor that becomes known only after a staffing decision has been made. A lagging indicator might be a measure of a recruiting source’s effectiveness, the time to fill a position, or the fit, performance, or promotability of a firm’s new hires. Lagging indicators measure various aspects of the success or failure of a staffing system but do not help a company improve its staffing efforts midstream. That is, the indicators do not identify exactly what went wrong or right, or indicate how to improve. In general, lagging indicators are not useful for managing staffing on a day-to-day basis but can identify areas of a staffing system that should be further analyzed and perhaps improved after the fact.12 Lagging Indicator a factor that becomes known only after a staffing decision has been made By contrast, a leading indicator precedes or predicts a staffing outcome. For example, lower applicant quality and fewer applications per position often precede negative staffing outcomes such as longer time to fill, new hires who take longer to contribute to the firm, and higher turnover. Leading indicators are useful for monitoring the progress of a staffing effort. In other words, they can provide the firm with timely information it can use to adjust and improve the company’s staffing outcomes midstream. For example, if the number of applications a company is receiving and their quality are below target levels, this can indicate that the firm should engage in additional sourcing and recruiting activities before the staffing effort progresses too much further, and the risk of a poor candidate being hired increases. Leading Indicator a factor that precedes or predicts a staffing outcome Some indicators can be both leading and lagging indicators. This, of course, can complicate a staffing evaluation effort. For example, the number of applicants is often used as a leading time-to-fill indicator. However, the number of applicants that apply for a position can also be a lagging indicator of a company’s employer image. Table 13-1 describes several indicators and some of the outcomes they can lead or lag. Table 13-1 Leading and Lagging Staffing Indicators When an organization lacks the luxury of a dedicated staff to develop, track, and analyze the firm’s staffing metrics, it must make careful choices about which metrics and indicators best serve its needs. In one small company of 400 employees that sells and leases health care equipment to hospitals, a human resources director and an assistant track the metrics that best reflect the company’s culture and strategic goals to ensure that employee costs track favorably against the firm’s revenues and profits. Four of the metrics tracked and benchmarked against prior years are lagging indicators: employee cost divided by sales revenue, employee cost divided by net income before taxes, turnover, and ratings of human resources’ performance. Absenteeism and time to fill are leading indicators.13 Linking people measures to KPIs in a reliable way can require large amounts of data for large companies, such as American Express. American Express keeps a close eye on 15 to 20 different metrics associated with its key positions, including how long it takes to fill the positions, how many offers the company makes before a position is filled, and retention rates. Successfully launching such an evaluation depends heavily on the firm being able to use technology to gather PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. the data. To gather the information and metrics sought, a firm’s human resource department must work closely with the company’s information technology and finance departments. Evaluating a large amount of data also requires both trial and error and patience on the part of those conducting the evaluations. Staffing Metrics Because people pay attention to what gets measured, carefully selecting key metrics to track can help focus employees on key behaviors and outcomes. But too much information makes it difficult to focus attention on the metrics and outcomes that are the most important. To evaluate its staffing success, telecommunication company Avaya sets goals for how many experienced employees it intends to acquire from its competitors. The company also measures the performance of individuals who move internally from one business to another compared with the average performance of employees in that division. One company representative says, “Most companies will say their recruitment is successful if they retain the people that they hire. We look beyond that and set very specific goals for ourselves.”14 Southwest Airlines measures key metrics including cost per hire, new hire quality, compensation, time to productivity, and retention and promotion rates of high-potential employees and uses these measurements to continually improve its staffing and talent management process. If Southwest notices that an operational group is logging above average overtime, for example, it works with that group to reduce overtime by decreasing turnover or increasing staffing.15 Staffing metrics can be thought of as long term or short term, and can be efficiency or effectiveness oriented. Next, we discuss these different types of metrics and how they are best used. Long-Term and Short-Term Metrics Metrics can be tracked over many different time periods. Short-term metrics help a firm evaluate the success of its staffing system in terms of the recruiting and new hire outcomes achieved. These metrics include: • The percentage of hires for each job or job family coming from each recruiting source and recruiter • The number of high-quality new hires coming from each recruiting source and recruiter • The number of diverse hires coming from each recruiting source and recruiter • The average time to start (by position, source, and recruiter) • The average time to contribution (by position, source, and recruiter) Long-term metrics help a firm evaluate the success of its staffing system in terms of the outcomes that occur some time after employees are hired. These metrics include: • Employee job success by recruiting source and by recruiter • Employee tenure by recruiting source and by recruiter • Promotion rates by recruiting source and by recruiter Short-term metrics are useful as leading indicators of a company’s ability to have the right people in the right jobs at the right time to execute its business strategy and to meet its immediate staffing goals. Long-term metrics are useful as lagging indicators. They are best used for evaluating the effectiveness of the firm’s long-term staffing system—for example, the longterm, on-the-job success of employees and their turnover and promotion rates. Staffing Efficiency Metrics Staffing efficiency refers to the amount of resources used in the staffing process. Efficiency metrics are analyzed to make process improvements designed to minimize the amount of resources needed to staff a firm—specifically, the firm’s hiring costs and replacement costs. A firm’s hiring costs include sourcing, recruiting, screening, referral bonuses, travel expenses, advertisements, the cost of assessing and doing background checks on candidates, and the meals and transportation associated with their recruiting processes. Replacement costs include hiring costs as well as the productivity losses that occur while positions remain unfilled. Staffing efficiency metrics include the cost per hire, the time to fill positions, and the number of requisitions handled per full time equivalent (FTE) staffing member. Many firms also calculate onboarding costs, such as training and time-tocontribution costs, which can also be used as indicators to measure a firm’s staffing efficiency. Staffing Efficiency the amount of resources used in the staffing process PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. The critical factor to remember when tracking staffing efficiency metrics is that it is necessary to be efficient but also meet the needs of a firm’s customers. On the one hand, time-to-fill rates that are below a certain benchmark might reflect that the firm is staffing itself efficiently. On the other hand, the same rates might indicate that hiring managers are not spending enough time interviewing enough candidates to ensure that they are hiring the best ones. One way to compute staffing efficiency is as a percentage of the amount of new hires’ compensation. The staffing efficiency ratio can be calculated by dividing a firm’s total staffing costs by the total compensation of its new hires recruited, and then multiplying the result by 100. For example, a staffing efficiency of 12 percent means it costs $0.12 cents to bring in $1.00 of compensation, or $12,000 to hire someone who makes $100,000 a year.16 An organization that hires 400 employees annually, each with a compensation of $40,000 annually, would save about $320,000 in staffing costs every year by improving its staffing efficiency by just 2 percent (400 × $40,000 = $16 million total compensation recruited; 2 percent of $16 million = $320,000). By relying more on technology to source, recruit, and screen their employees, many firms could easily achieve such a 2 percent savings.17 Staffing Effectiveness Metrics Strategic staffing is not simply hiring a large number of people or hiring them quickly or cheaply. Strategic staffing is hiring people who become successful in the job, are a good fit with the company, and stay with the organization. Although efficiency and cost are often the initial focus of a firm’s staffing evaluation efforts, many companies subsequently shift their focus toward measuring their staffing effectiveness .18 Staffing effectiveness relates to how well the staffing process meets the needs of a firm’s stakeholder needs and contributes to the organization’s strategy execution and performance. Staffing effectiveness metrics help answer questions such as “Is the number and caliber of finalists being sent to hiring managers meeting their needs?” and “Is the hiring experience and speed acceptable to candidates?” Staffing efficiency is often easier to measure and evaluate than staffing effectiveness. For example, it is relatively easy to measure how many jobs each recruiter is filling (staffing efficiency), but what is often more important is whether the jobs are being filled with the right people (staffing effectiveness). Staffing Effectiveness how well the staffing process meets the needs of a firm’s stakeholders and contributes to the organization’s strategy execution and performance There are many possible measures of staffing effectiveness. Perhaps the most obvious measure of staffing effectiveness is new hire job success. Job success refers to job performance as well as the new hire’s fit with his or her work group, unit, and organization, and the degree to which his or her values are consistent with the company’s culture and values. Tracking this metric by recruiting source, recruiter, and hiring manager can help improve a company’s future staffing efforts. The quality of hire reflects whether the company hired the people it set out to as defined by hiring managers’ predetermined job performance requirements. New hire job success starts with the quality of the people hired. The quality of hire can be assessed using new hires’ performance ratings after an appropriate time on the job, hiring manager satisfaction surveys, objective employee productivity measures, and even safety, absenteeism, and turnover rates. New hire quality matters when it comes to an organization’s performance. The War for Talent study, published in 2001 by McKinsey & Co., revealed that high performers in operations roles increased the productivity of their firms by 40 percent; high performers in managerial roles increased their firms’ profits by 49 percent; and high-performing salespeople created 67 percent more revenue for their firms than average or low-performing employees. Overall retention or turnover rates might seem like good metrics, but remember that retaining poor performers can actually impose a cost on the firm. Tracking the voluntary turnover rate of top performers as well as measuring the turnover rate of bottom performers, as we discussed in the last chapter, can provide more meaningful information. Tracking monthly turnover by hiring manager, department, or business unit and by race, gender, or age group need not take a lot of time and can reveal patterns that might suggest poor staffing or poor management. Measuring the turnover of employees based on the sources from which they were hired can help identify the return on investment (ROI) from each source. Jeff Cottle, senior vice president of human resources and organizational strategy at SCT, a global informationtechnology company, tracks turnover by employee type to assess controllable voluntary turnover and understand what’s causing it. Says Cottle, “Our perspective on the use of metrics…is based on our belief that human-capital metrics have a direct correlation to financial metrics.”19 PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Evaluating the value of top performers can also be a useful metric. When a competitor was pursuing one of its top technical employees, Texas Instruments (TI) wanted to find out what the employee was worth. TI added up all the ideas that the employee had generated for the company, and what those ideas were worth in terms of patents. TI decided that the employee was probably fairly valued at about $25 million and decided it was worth its trouble to get him to stay. TI gave him a nice amount of stock, structured in a way that provided him an incentive to stay another decade. The company even arranged for a week of private golf lessons for his wife and him at a famous golf resort.20 Measuring what a top employee is worth, and comparing that to what an average employee is worth, can be a useful indicator. McDonald’s knows that a top manager is worth 35 percent more in profits than an average manager.21 Calculating the value of a company’s top performers can help managers justify what it is worth to invest more in recruiting, hiring, and retaining them. TI doesn’t track, and isn’t concerned about, what it spends to hire key technology workers. The company understands that these employees will produce far more for the company than what they’re paid, and believes that hiring costs are too small a percentage of an employee’s value to worry about.22 Many other metrics are possible. To identify which divisions in the company are creating new talent, Cisco Systems uses a metric that tracks why a person moved within the company rather than simply how many people moved. High performers tend to want to take on new challenges so tracking their movement inside the company is a way to make sure managers serve as talent “launching pads,” rather than talent hoarders. Once identified, those managers who “launch” talent are rewarded accordingly.23 Some of the key staffing metrics utilized by Valero Energy include:24 • Brand-related metrics. Valero measures the value of its employment brand by calculating the cost savings related to the positions it fills via its corporate Web page, community referrals, and nonemployment-related TV ads. The recruiting department estimates that the Valero brand saved the company $4,309,005 in recruiting costs. • Staffing efficiency metrics. Valero utilizes the staffing efficiency measure developed by Staffing.org, an independent and nonproprietary nonprofit corporation that develops standard human resource performance metrics. Valero calculates its staffing efficiency by dividing the firm’s total recruiting costs by the total compensation for all the positions it fills annually (the sum of the base starting salaries for each external hire during their first year). Staffing efficiencies in the range of 5 to 9 percent are considered excellent, and those above 16 percent indicate inefficiency.25 However, these ranges can vary by industry, organizational size, and region. • Sourcing channel metrics. Some of the measures Valero applies to each sourcing channel are: ◾ The staffing cost of the source ◾ The percentage of the firm’s budget the source represents ◾ The percentage of applicants recruited via the source ◾ The percentage of positions filled via the source ◾ The source’s speed ◾ The source’s efficiency ◾ The turnover at 12 months of new hires recruited from the source ◾ The dependability of the source ◾ The average salary of the position filled via the source • Internal recruiters are also monitored on the preceding metrics. Return on Investment As we have stressed throughout this book, staffing costs are an investment. When using metrics and evaluating staffing activities, it can be easy to focus on staffing efficiency and lose sight of staffing effectiveness. If a firm is only concerned with hiring enough people quickly and cheaply, as is often the case during periods of rapid expansion and labor shortages, the firm is not likely to pay much attention to employee-quality requirements. At one point, the human resources department of the telecommunication company GTE (now a part of Verizon) was under pressure to focus largely on efficiency and cost reduction. To hire people faster, recruiters started sourcing from temporary agencies and job banks rather PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. than graduating college students and experienced professionals. This change improved GTE’s staffing efficiency. One region of the company reduced its time to fill a position to 50 percent below GTE’s company average, and the cost per hire was very low. Unfortunately, the turnover rate in the region rose to twice the company’s average and customer service levels in the region fell. Instead of hiring experienced professionals and new graduates, sourcing through temporary agencies and job banks was less selective.26 For GTE, the previous higher staffing costs and longer times to fill had been good investments. A cautionary note is in order here: If the only goal an organization pursues is hiring the highest-quality people, its staffing program might not produce enough hires or might produce them at an unacceptable cost. Indeed, a common hiring mantra of organizations is to hire the best talent available. However, as we have explained, not all business strategies require the best talent for all jobs. Architectural Support Services, a computer-aided design company providing technical support for architects, is a case in point: When the company was relatively young, it hired the best and brightest professionals available. However, poor morale and high turnover caused by infighting among the high-powered staff compromised its operations. The organization realized that it did not need to fill all of its positions with the most talented graduates from elite four-year institutions, and started recruiting from community colleges instead. The company was rewarded with a much more loyal and committed workforce, and its results improved.27 The lesson here is that a balance must be struck between staffing efficiency and staffing effectiveness. A firm can calculate the ROI for its individual staffing activities, such as the ROI of different recruiting sources or assessment methods, or for the staffing system as a whole. Although many companies have no idea which candidate sources produce the best employees, others have turned the evaluation of their hiring sources into a science. This helps the companies determine the degree to which their recruiting investments are paying off, which allows the firms to cut out poor-performing sources, and to negotiate better contracts with outside recruiters based on the results they produce. With that said, measuring a firm’s overall staffing ROI is not always easy. Nonetheless, if the associated measurements are made carefully, the effectiveness and ROI of staffing initiatives can be demonstrated.28 Six Sigma Initiatives Developed in the 1980s at Motorola, and now practiced by many large corporations, including GE and Dow Chemical, Six Sigma is a data-driven quality initiative that uses statistics to measure and improve business processes and their outcomes to near perfection.29 The central principle of Six Sigma is to measure defects, identify and remove the sources of error, and to reduce defects to near zero. Six Sigma was developed in a manufacturing environment, but the principles and process can be used to improve any process, including staffing. Six Sigma a data-driven quality initiative that uses statistics to measure and improve business processes and their outcomes to near perfection Six Sigma can be used to improve a variety of staffing outcomes, such as: • Lowering turnover among high performers • Improving the quality of applicants • Improving the fit of new hires with a firm’s corporate culture • Reducing the time to fill positions • Increasing the return on the company’s staffing investment GE Medical Systems used Six Sigma processes to develop its recruitment Web site.30 Microsoft aligned its recruiting efforts with the rest of its company’s implementation of Six Sigma, and even created a senior “manager of quality improvement” position to help improve the processes the company uses to hire its technical employees.31 Six Sigma methodology begins with a process map that defines and graphically maps out the process to be improved. The process map, which encompasses the entire process, helps firms identify the important metrics that need to be analyzed. After identifying the source of any defects in the system, an improvement program is created to remove the cause of the defects. To improve the quality of a staffing process, each step of the process must maximize the probability that the selected candidate meets the hiring manager’s expectations by maximizing the chances that unqualified candidates are screened out at each step, and enhancing the interest qualified candidates have in the job and the organization as an employer. Figure 13-2 illustrates a staffing process map. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Dow Chemical uses Six Sigma for its staffing processes on a global basis to improve its processes and yield higher productivity. Dow Chemical’s Human Resources Information Technology Global Director Jon Walker states, Figure 13-2 A Staffing Process Map Best practices and proven methodologies are key to improving the staffing process enterprise-wide. Since we’ve been able to engineer new processes and staffing management technology, we have achieved an increase in Sigma by at least 50 percent.…An increase in Sigma will typically result in bottom-line efficiency and cost reduction of five percent or more. As it relates to staffing management, we attribute our productivity gains to finding quality candidates faster, faster time to contribution and a reduction in cycle-time by forty percent.32 When local unemployment was a low 2 percent, one Colorado manufacturer was paying a substantial amount of overtime to its experienced workers because it was having trouble recruiting for positions in its 24/7 operation. The company applied Six Sigma quality tools to the staffing process and found that because hiring was taking six weeks—candidates had to apply one week, test the next, interview the next, undergo a blood test, then receive an offer—many quality PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. candidates found jobs elsewhere. By mapping the process and removing barriers, the manufacturer shortened its hiring time to one week, improving hiring rates and reducing the overtime and higher salaries the firm had previously had to pay while the positions were unfilled.33 Six Sigma and other quality methodologies focus on not just measuring activities but also understanding the variables that affect those metrics and then systematically attempting to control those variables. The DMAIC (define, measure, analyze, improve, and control) process of Six Sigma can be applied to existing internal processes, and the DMADV (define, measure, analyze, design, and verify) method can be effectively used in creating new processes. In more detail, these processes are:34 DMAIC (Define, Measure, Analyze, Improve, and Control) • Define the problem. Reduce unwanted turnover among high performers. • Measure. Identify key measurements underlying turnover, such as the turnover rate among high versus low performers. • Analyze. Understand the key factors and trends that create turnover, such as low employee engagement, the dissatisfaction of employees with their supervision or pay, and high outside demand for the employees’ skills. • Improve. Identify and execute a plan to address those factors. • Control. Implement controls to lower turnover on an ongoing basis. DMADV (Define, Measure, Analyze, Design, and Verify) • Define project goals and customer deliverables, such as improved new hire quality. • Measure. Determine hiring managers’ needs, such as their need to hire good employees quickly. • Analyze the process of sourcing, recruiting, screening, and making job offers. • Design the staffing process to screen out undesirable candidates and maximize the quality of new hires. • Verify the performance of the process and its ability to meet the needs of hiring managers. Although some areas of sourcing, recruiting, and selection are more art than science, if an area can be measured, Six Sigma can be applied to it. For example, by increasing its spending on validated selection tools, a firm can weed out more undesirable candidates and reduce the interviewing and travel expenses related to further screening them. Not only can the tools reduce the firm’s recruiting expenses, they can improve the quality of candidates hired and increase employee retention. The Balanced Scorecard Approach Good performance is about more than bottom-line financial results. The balanced scorecard is a tool used to monitor, assess, and manage the performance of employees as well as align their interests with a firm’s key business objectives by assigning them both financial and nonfinancial goals.35 In other words, the balanced scorecard approach “balances” a firm’s strategic, operational, financial, and customer-related goals. The approach also helps managers monitor and assess the performance of their employees so as to quickly take corrective action when needed. After all, financial results are historical measures. Thus, focusing solely on them when evaluating a firm’s staffing process is limiting because they reveal only how the company has done in the past—not how it will do in the future. Monitoring nonfinancial measures, including how applicants and employees react to the firm’s staffing process and how satisfied hiring managers are with it, for example, can warn a firm about problems that might lie ahead. For example, a dip in employee satisfaction ratings might prompt a manager to say, “because low employee satisfaction leads to higher turnover and weakens our image as an employer, we should address declining employee satisfaction now.” Balanced Scorecard a tool used to monitor, assess, and manage the performance of employees as well as align their interests with a firm’s key business objectives by assigning them both financial and nonfinancial goals Balanced scorecards help organizations in the following ways:36 • Compare and track the performance trends of different business units, departments, and employees within the organization • Benchmark the organization against other organizations • Identify the company’s best performers and its best practices PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Corporate scorecards are first developed to define the goals and agenda for the entire organization. Each business unit then looks to the corporate scorecard for guidance in creating their own balanced scorecards that support the broader goals and strategies of the organization. Once business unit scorecards are created, each support unit—including a firm’s human resource management and staffing department—can create its own scorecard to clarify its goals and track its progress toward meeting them. A balanced staffing scorecard contains objectives, targets, and initiatives for each activity that adds value to the staffing process. Using software, such as Oracle’s Balanced Scorecard package, managers can more easily compare the staffing performance of different units, and benchmark it against the firm’s budgets, historical data, and peer firms within the industry. From their computers, managers can then click on any indicator to conduct more detailed analyses of the data. If there are problems with the staffing process, the system allows employees to collaborate online to analyze the causes and to take corrective action. It also helps managers see how their decisions impact the company’s strategy. Balanced Staffing Scorecard contains objectives, targets, and initiatives for each activity that adds value to the staffing process A company’s goals and strategies should guide the development of the firm’s staffing scorecard. Most of the measures should focus on staffing effectiveness—that is, creating value for the firm. A smaller number of measures should focus on staffing efficiency and cost control. The choice of scorecard criteria should be based not only on the company’s strategy and goals, but also the challenges the company anticipates, such as a tightening labor market or changing workforce demographics. The criteria of the scorecard can also be chosen to address any current problems the firm is experiencing—for example, if the firm is having difficulty staffing its key leadership positions. Assume that every unfilled sales representative position costs a hypothetical retailer $8,000 per day in lost revenue. The company has about 2,000 sales representatives, and averages 120 openings at any given time. The company wants to minimize the time sales representative positions are vacant. In addition, the time hiring managers spend on the sales floor with their representatives adds 20 percent to the revenues the representatives generate. Thus, the retailer wants its managers to balance their sales floor time with the time they spend recruiting and interviewing candidates. To ensure that it is being sufficiently selective, the company would like its hiring managers to interview four to seven candidates per hire. The firm also wants to ensure that it is hiring a diverse sales force and controlling turnover to reduce replacement expenses and lost sales. Figure 13-3 Monthly Balanced Staffing Scorecard for Sales Representatives Accordingly, the company might create the monthly staffing scorecard as shown in Figure 13-3 . Note that the columns to the right show the performance metric being tracked for each zone and the goal for each metric is shown in italics in the first row of each column. The data cell for each region is coded green when a metric is consistent with its target, yellow when the metric is becoming problematic, and red when it is out of its target range. The company tracks the time hiring managers spend and number of interviews they conduct per sales representative hire to make sure that enough, but not too much, time is being spent recruiting. The company, of course, also tracks the amount of time it takes to fill a position. If a high percentage of sales PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. positions are vacant, this signals that urgent action is needed. Turnover rates are tracked to identify where retention efforts might be appropriate. New hires’ average first year performance as well as the diversity of candidates hired to ensure that the firm is complying with EEO laws and that the company’s commitment to diversity is being supported is also tracked. Any problematic demographic areas are listed in the corresponding cell. Tracking the average store staffing level in a zone can help to indicate whether staffing issues are creating problems keeping stores staffed appropriately with sales representatives. Customer service scores are in the last column and suggest that stores with the greatest staffing challenges also have the lowest customer service scores. Ideally, any cell in the scorecard could be clicked on to retrieve more detailed information within each zone to better diagnose any issues that need attention. It often doesn’t require a massive effort to improve a firm’s staffing metrics. One way to begin is by identifying a problem area and determining how to start measuring and improving it. If the turnover of new hires is a problem, for example, start tracking it by manager and uncover the reasons why people are leaving. Track the information back to the firm’s staffing activities, identify areas for improvement, and then make changes and track their results. If new hires are leaving after a year because they don’t see a clear career path for themselves in the company, add realistic job preview and career information to the recruitment and socialization process, and incorporate career planning into employees’ annual performance discussions. Subsequently track the turnover rates of new hires and see if they improve. If not, reassess what is causing the turnover problem and try again. The metrics used shouldn’t be too complex or numerous to understand or explain to others. Because Nokia wants each of its new hires to fit in with its culture and be able to continually learn and adapt to the company’s changing business needs, human resources and hiring managers partner to carefully assess the match between what Nokia needs and can offer new hires and what each candidate needs, wants, and can contribute to the company. Tracking the attrition of new hires at the 12-month mark helps indicate where problem areas might lie, and signals Nokia’s human resources personnel to devise corrective measures to address the underlying issues. Nokia further evaluates its staffing effort by conducting focus groups or using other methods designed to identify the reasons why attrition is too high. The reasons could be the hiring process, the hiring manager’s skills, HR issues, and the overselling of jobs or the organization. Nokia is careful not to micromanage with staffing metrics. To reinforce its culture, additional metrics are collected only when performance and attrition metrics indicate that a problem is occurring. Nokia is also careful to tailor any staffing metrics it utilizes to different employee populations and problems.37 It is often a good idea to implement a staffing evaluation program incrementally rather than taking on the entire staffing system at once. Evaluate one component of the system at a time by calculating its impact on relevant KPIs, such as a division’s productivity, employee tenure, performance, labor costs, and employee promotions. For example, a company pursuing a cost-leadership strategy based on an operational excellence competitive advantage might be very concerned about its labor costs. This, of course, would be a good component to track. The direct and indirect cost savings of better recruiting, hiring, and onboarding, as well as the costs of open jobs, such as those associated with severance and unemployment pay, overtime, and the cost of hiring temporary employees, can also be factored in. You can also involve other units of the company, like its finance and operations departments, to acquire the information and data you need. This process helps build the case that staffing activities influence important organizational outcomes and can secure the buy-in needed to make staffing improvements and increase the scope of the evaluation program. It is important to match a firm’s staffing metrics to the different people responsible for them in the hiring process. For example, Nokia tracks the performance of its newly hired executives to the recruiter or search agency that referred them. At lower levels in Nokia, the performance of new hires is tracked to both employees’ hiring managers and their recruiters.38 Staffing Evaluation Ethics Ethical issues must be attended to in staffing evaluation. The data used to conduct a staffing evaluation must be high quality. Thus, it is important that everyone responsible for collecting the data ensure that it is accurate. It is also important to keep personal information about PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. applicants and employees private. Any personal information about an employee, including the person’s performance and salary information, should be kept confidential and secure. In addition, if applicants or employees are told that the information collected about them will be used in a particular way, the data must be used only in that way. It is also important to realize that some performance comparisons between different recruiters can be unfair. Some recruiting is more difficult because there are fewer diverse, qualified individuals or fewer qualified individuals in general. Recruiting for certain job families can also be more difficult if there is a labor shortage related to those jobs. Nursing and truck-driving jobs are good examples. These positions can be very difficult to fill. One expert recommends that to be fair, recruiter comparisons should be limited to year-to-year comparisons within the same job family and within the same geographic region.39 Technology and Staffing Evaluation One expert says, “When the war for talent is fought over the Internet, corporations will be won and lost over staffing technology.”40 To be sure, the Internet has changed staffing practices in dramatic ways. For example, recruiting employees online costs only about 5 percent of what it costs to recruit them through “help wanted” ads and other traditional means. Online recruiting, application submission, and résumé screening have reduced the average 43-day hiring cycle by more than two weeks.41 Technology, such as the Internet, has helped companies reach larger numbers of qualified applicants worldwide. Using technology doesn’t merely mean using the Internet to source and recruit applicants, though. Databases and analytical software have made it substantially easier for companies to gather and organize volumes of information about applicants and employees throughout their careers, for example.42 Technology can also facilitate the administration of employee surveys that can help evaluate the effectiveness of the staffing system. Bernard Hodes’s QTrac software assesses the ROI of a firm’s employment branding and staffing efforts. An online survey is administered to new hires after 30 days on the job and again at 90 days, 180 days, and 365 days. The survey for each period asks different questions that are most relevant to a new hire at that time to identify any weakness in the recruiting, onboarding, training, and new hire experience and enhance effective recruiting and retention. The home improvement retailer Lowe’s uses the monthly reports its QTrac software generates to improve the company’s recruiting techniques and the experience of its job candidates. After only two months of QTrac reporting, information was learned that Lowe’s translated into tangible plans for improving the process.43 Thus, technology helps companies evaluate their staffing functions in terms of their effectiveness and efficiency and better manage their internal labor talent. Next, we discuss some of the most commonly used staffing technologies and tools: résumé screening software, applicant tracking systems, and human resource information systems and how they are used. We then discuss a company’s Web site as a critical staffing technology, followed by digital dashboards. Résumé Screening Software Résumé screening software screens résumés for certain words or phrases so that recruiters do not have to look at every résumé. This software saves recruiters a lot of time and makes Internet recruiting much more manageable for companies that receive thousands of responses to their job postings. However, relying too heavily on software can result in a firm overlooking highly qualified candidates who do not match specific criteria. As one expert says, “In some cases, the best candidate might not have a specific skill but can learn it.”44 If a company does not invest enough time and resources finetuning a system to uncover the best candidates, recruiters might pull up too many résumés matching the desired keywords but too few that are outstanding.45 It is important to be careful when selecting résumé screening software—depending on how the software works, it may disproportionately exclude groups of people from various protected categories. For example, a lawsuit filed against one company alleged that the firm’s screening software disproportionately screened out African Americans. Rather than deleting résumés, the software identified those that had the words or phrases the company was looking for. It was argued that the words used by the screening software were not the same words that members of the African American community would use to convey that information despite being very well PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. qualified for that job. The case was settled relatively quickly, and there is very little information on what the words were.46 Nonetheless, the case highlights the importance of being an informed consumer and fully understanding how a software package works. Applicant Tracking Systems An applicant tracking system (ATS) is software that allows a database with applicant information and job information to be maintained so that matches between the two are easier to make. First-generation applicant tracking systems only collected résumés and offered basic search capabilities. Today’s systems, whether they’re used in-house or in tandem with job boards, allow human resources and line managers to oversee the entire recruitment and staffing process—everything from mining résumés to doing basic screening and conducting background checks and facilitating the onboarding of new hires. Some ATSs are able to generate detailed profiles of candidates that include their education, background, skills, behavioral attributes, work history, and salary requirements. PNC Financial Services Group’s applicant tracking system filters out applicants lacking at least two years of cash-handling experience and e-mails rejected applicants within a day suggesting that they search its careers site for jobs for which they are better qualified.47 Applicant Tracking System software that allows a database with applicant information and job information to be maintained so that matches between the two are easier to make Large organizations spend an estimated 7 percent of their external recruitment budgets on applicant tracking systems.48 ATSs not only reduce costs but also help to speed up the hiring process and improve the company’s ability to find people who fit the firm’s success profile.49 Salesforce.com’s Vana HCM cloud-based recruiting tools not only allow organizations to configure job postings, automatically process résumé attachments, and post openings to thousands of job boards, but the tracking reports help to identify which positions were hard to fill in the past to help allocate the right resources and time for future recruiting efforts. ATSs can also provide managers with interview and selection guidelines and even help prescreen applicants by administering online prescreening tests or questionnaires to them. For example, Continental Airline’s flight attendant candidates answer 41 questions online before being allowed to complete a formal application.50 Because ATSs store candidate-related data inside a database, searching, filtering, and routing applications is faster and more effective. This frees up recruiters’ time to source and communicate with candidates, and can reduce inefficiencies, costs, and the time it takes to fill positions. Reporting tools that help facilitate a firm’s EEOC compliance are often included, as are tools for managing communications with applicants. ATSs are made by large software firms such as PeopleSoft, SAP, and Oracle, and firms such as HR Diagnostics, RecruitPro, and Hirebridge. Their cost ranges from a few hundred dollars to millions of dollars, depending on their complexity. Training end users to properly use the systems is critical for success, as is selecting the best reporting metrics to incorporate, and carefully testing the usability of the system’s functions. The more integrated the various functions are, the more usable the system will be. Attracting and retaining diverse, high-quality talent is central to ConAgra Food’s strategy for continued growth. To make its staffing process more strategic, ConAgra realized that one of the most powerful ways to enrich and diversify its talent pool was to leverage the Internet in a way that would allow the company to find external candidates. The company’s ATS now automatically stores all applications and résumés submitted to the company via the Internet, and ConAgra’s HR managers review only those that are prescreened by the system. This eliminates hours of research by recruiters. More than 50 percent of ConAgra Foods’ recruiting and staffing activities are now done through the Internet and its internal résumé database, and the company has seen an increased flow of quality talent. Including a metrics system also allowed the company to implement actionable recruiting goals to measure the quality and diversity of its candidates.51 According to experts, at a minimum an applicant tracking system should be able to:52 • Scan résumés • Generate mailing labels and letters that can be sent to accepted and rejected applicants • Generate EEO reports • Schedule and track interviews • Store the firm’s job descriptions • Generate staffing statistics by activity, recruiter, and recruiting sources • Generate a job requisition analysis • PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Generate a staffing cost analysis • Create applicant profiles • Generate mailing labels • Allow managers’ notes regarding different candidates and the staffing process to be stored online Figure 13-4 shows a screenshot from HR Diagnostics’s applicant tracking system. The system shows the number of candidates at each stage in the hiring process, and the menu at the left gives managers easy access to reports, testing outcomes, and other information about candidates and the hiring process. Figure 13-4 An Example of an Applicant Tracking System (ATS) From http://www.hr-diagnostics.com., Reprinted with permission from HR Diagnostics. Human Resources Information Systems A human resources information system (HRIS) is a system of software and supporting computer hardware specifically designed to store and process all HR information and keep track of all employees and information about them. Also known as human resources management systems (HRMS), these systems support most modern HR departments. An HRIS combines separate HR systems into a centralized database that performs the majority of HR transactions,53 including reporting capabilities. Some systems are able to track applicants before they become employees. The better HRIS systems help to manage all employee information, report and analyze employee information, manage applications and résumés, and facilitate employee onboarding. Human Resources Information System (Hris) a system of software and supporting computer hardware specifically designed to store and process all HR information and keep track of all employees and information about them Human resources information systems usually include each employee’s:54 • Department • Job title • Job grade • Salary • Salary history • PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Position history • Supervisor • Training completed • Special qualifications • Ethnicity • Date of birth • Disabilities • Veteran status • Visa status • Benefits selected Because of local and cultural differences in what data gets entered into the HRIS system and how things are labeled, it can be challenging to create global reports. Because of this difficulty, HRIS technology solutions are sometimes implemented differently in different geographic regions.55 Company Web Sites You have probably noticed that many companies feature on their Web sites special careers sections dedicated to the firm’s employment opportunities. In fact, corporate Web sites have become the primary way most students research companies and evaluate career opportunities. In addition to providing information about current job openings, the careers site can also contain information about a firm’s corporate culture and mission. Many companies are able to accept applications and administer prescreening tests online. Thoughtfully developed careers sites can also result in more effective interviews because applicants’ basic questions will already have been answered by the Web site content, and poor fits are more likely to have selfselected out after learning more about the organization and job opportunity online. It is critical that the path to careers sites be easy to find, and that they be kept usable. When one insurance company buried a jobs link at the bottom of its homepage, requiring users to scroll past unrelated information, job-related inquiries submitted to the firm dropped by 80 percent. Other companies are working on creative ways to grab a candidate’s attention as they build their recruiting pages.56 Goldman Sachs’s interactive careers Web site at www.goldmansachs.com/careers/index.html is a good example. Organizations can use as much space as they feel they need to communicate their unique employer brand and showcase their employment opportunities. Search functions can help visitors identify the job opportunities they wish to pursue and their desired work locations, and self-assessment inventories can help applicants decide which opportunities are best for them. Drop-down menus and résumé builders can allow visitors to submit their background information in a standardized manner, facilitating the screening and record keeping of this information. If done professionally and in an easy-to-navigate manner, Web sites can help establish and maintain an organization’s image as a good employer. Although a high-quality Web site can be expensive to build, it should be thought of as an investment that will be amortized over the large numbers of people likely to see and use it. The investment is also likely to reduce hiring times and other staffing-related costs. Despite the benefits of staffing technology, there can be some dysfunctional or unintended consequences related to it as well.57 Computerized recruiting and staffing systems can depersonalize the hiring process and make it less flexible, negatively impacting applicant attraction and retention rates. If some subgroups lack access to computerized systems or the skills needed to utilize them, online recruiting can result in adverse impact. Privacy concerns sometimes make applicants less willing to use e-recruiting systems.58 Some research has shown that e-recruiting doesn’t always attract the most qualified job applicants and, in fact, has a tendency to attract individuals who switch jobs frequently.59 The following are some experts’ guidelines for e-staffing:60 • The Internet should not be the only recruiting source a company uses. • E-recruiting should be used when large numbers of candidates are needed, when fairly high education levels are required, and to target applicants in specific labor markets, such as high-technology employees, students seeking part-time work, or new graduates seeking full-time work. • E-recruiting systems should provide applicants with accurate information about a company’s unique characteristics and give a realistic preview of the company. • PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Company Web sites should promote values that most new employees will find attractive. • E-staffing systems should be aligned with the company’s strategic goals and enable firms to attract applicants who can help them meet their strategic objectives. • Feedback should be regularly collected from job applicants about the types of implicit and explicit messages a company’s Web site conveys about the firm and its culture. • To attract diverse applicants, e-staffing systems should be culturally sensitive and possibly include special features (e.g., be presented in multiple languages and an option for large font to accommodate the needs of individuals with vision disabilities). • To protect applicants’ privacy, e-staffing systems should be governed by privacy protection policies that (a) restrict data access, (b) restrict data disclosure, and (c) ensure that only job-relevant data are collected for decision-making purposes. For privacy reasons, all medical information must be kept separate from the employee’s other information, in a place where managers cannot see it. Digital Staffing Dashboards Just as the dashboard of a car gives the driver indications of the car’s performance and warns when there is danger, digital staffing dashboards are interactive computer displays that indicate how a staffing function is meeting its goals, using whatever metrics the user chooses. The metrics are often those from the balanced staffing scorecard but can include other metrics as well. Digital dashboards reflect the idea that a picture is worth a thousand words: The dashboards display large amounts of data in a clear and user-friendly format, usually with charts and graphs, and are interactive, allowing the user to break high-level data down into more detailed reports. Like automobile dashboards, digital dashboards usually present important information in a way that grabs the manager’s attention. For example, if a staffing initiative is over budget, a graph related to it might display a red blinking light. SAS’s Strategic Performance Management package is such a system.61 Digital Staffing Dashboards interactive computer displays that indicate how a staffing function is meeting its goals Digital staffing dashboards can include a variety of information including the names of top recruiters and their performance, the number of positions a firm has open, the number of candidates at each stage in the selection process, employee skill sets, turnover rates, diversity statistics, staffing expenses, and many other metrics. Well-crafted staffing dashboards help companies monitor and manage their workforces and chart their progress toward meeting strategic and tactical staffing objectives. Capital One Financial Group uses dashboards to identify its top performers. Erickson Retirement Communities of Baltimore uses dashboards to identify which retirement complexes are having trouble retaining staff members and which complexes have seen employee satisfaction ratings dip.62 Chicago’s Northwestern Memorial Hospital uses dashboards to track its turnover, open positions, number of hires, the reasons why applicants are rejected or decline an offer, and other metrics.63 Digital dashboards can also keep employees aware of how well they are performing. Thus, if an employee receives a poor performance review at the end of the year, the person is less likely to be surprised and upset by it.64 Digital dashboard technology is also scalable, allowing even small- and medium-sized companies to use the technology, and contains safeguards to protect sensitive employee data. ABN AMRO Bank, one of the largest banks in Europe, implemented a digital staffing dashboard to better understand the effects its human resource policies were having on its recruitment and retention efforts and to provide better visibility of the firm’s workforce trends and events. In addition to providing a global overview of the company’s HR operations (such as the firm’s headcount and average employee compensation) by respective quarters and years, the dashboard-based application also gives end users the option of examining KPIs in greater detail, for instance, to evaluate employee compensation by age groups.65 Figure 13-5 illustrates a recruiting effectiveness dashboard developed by Recruiting Roundtable Research for Alpha Company (a hypothetical company). The dashboard allows Alpha Company to track its hiring quality, candidate conversion rates, new hires’ perceptions of the firm’s recruiting effectiveness, and candidate conversion factors, or the reasons new hires gave for accepting job offers with Alpha Company. Because what gets measured gets managed, digital dashboards help keep managers focused on the key factors that drive company success. Creating an effective dashboard takes some planning. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Utilizing it can take time, require managers to adapt how they manage, and even alter a firm’s corporate culture. This chapter’s Develop Your Skills feature provides some tips for creating a good dashboard. Figure 13-5 Recruiting Effectiveness Dashboard Source: Recruiting Executive Dashbaord, Recruiting Rountable Research © 2007 Corporate Executive Board. All rights reserved. Reprinted with permission. Develop Your Skills Creating a Digital Staffing Dashboard Creating digital staffing dashboards requires time, expertise, and an understanding of what drives a firm’s staffing success.66 Here are some tips for creating a digital staffing dashboard: 1. Identify the factors that determine a firm’s staffing and business success. The factors might include the following:67 ◾ The firm’s talent depth in its key positions ◾ The job success of the firm’s new hires (including their performance, fit with the organization, and promotion rates) ◾ The recruiting sources of top performers (e.g., the colleges top performers attended) ◾ The retention and absenteeism rates of hires from different sources and different supervisors ◾ The cost per hire ◾ The average time to fill a position ◾ The time to productivity (the time it takes a new hire to achieve a minimum level of output) ◾ The top five nonmonetary reasons that people accepted the firm’s job offers ◾ Vacancy percentages in key positions ◾ The time it takes HR personnel to refer résumés to hiring managers ◾ The time it takes to interview candidates after they have applied with the firm ◾ The time between a candidate’s interview and the offer made to him or her ◾ The percentage of bad hires ◾ The percentage of diverse hires PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. ◾ Applicants’ and managers’ satisfaction levels with the hiring process ◾ The five primary reasons top performers leave the firm ◾ The turnover rate of top performers 2. Set specific goals. Each metric should be associated with a target level or range that reflects a business priority (e.g., hiring and retaining more top performers or promoting from within) or financial return (e.g., reducing turnover and saving money).68 3. Prioritize the information. Dashboards are ineffective if they contain too much information. Identify which metrics are critical, and put them on the main dashboard page. Creating drill-down pages with more detailed information and additional metrics can help limit the amount of information presented on any single dashboard. 4. Identify how best to present the data. Bar charts, tables, pie charts, graphs, and even speedometer-style displays are all possible. Managers and employees can be asked to test different formats to identify what works best. 5. Assess users’ comprehension of the data. Ensure that users are not misinterpreting the data and that they can quickly and clearly understand the information being communicated. 6. Consider including dynamic capabilities. Dynamic capabilities on the dashboard will allow managers to plan for different scenarios and growth projections.69 7. Create data entry accountability. If the data used by the system are not entered accurately or on time, the dashboard will not be accurate.70 Assess and reward managers for maintaining the database. Staffing Technology at Osram Sylvania71 Osram Sylvania adopted staffing technologies that automatically crossposts position requisitions to both internal and external careers sites, as well as to their five top-producing job boards. Embedded URL tracking and a staffing dashboard that monitors results help save time and increase résumé flow. To manage the increased number of candidates, the company uses custom candidate prescreening questions that are embedded in the application process for each job. Now when hiring managers log into the system, their candidates are presented in ranked order based on their answers to the prescreening questions. Managers also use mail merge templates to communicate with candidates and set up interviews. And everything is tracked and visible to both recruiters and hiring managers. Employee referrals that come in both through the external Web site as well as the intranet are also tracked. Osram Sylvania’s staffing dashboard and built-in reporting now keep track of key statistics like time to hire and EEO compliance. Diversity is monitored at every stage of the hiring process, so managers can proactively spot if and at what hiring stage certain protected groups are dropping off. Regular diversity reports that used to take several hours are now completed with four mouse clicks, saving substantial time. The company claims a weekly savings of $4,000 from the automation of its résumé processing. Automated job board posting and source tracking have also increased candidate quality, quantity, and time to hire. The company is in compliance of OFCCP rules on Internet candidate searches, and hiring managers are more involved in the recruiting process. Osram Sylvania feels that its new staffing system has also enabled it to hire more effectively. Summary Surprisingly few organizations currently evaluate the effectiveness of their recruiting and hiring efforts, making this a high-potential area in which human resources can contribute to the organization’s bottom line. One of the biggest challenges in staffing is often the reluctance of hiring managers to rely on the type of strategic staffing system presented in this book, despite its proven effectiveness. Managers often feel that they are good judges of people, and prefer to “trust their gut” and use their instincts in determining where to recruit and who to hire. Understanding and applying the strategic staffing process presented in this book provides a company a strategic staffing advantage over firms that prefer to use an unscientific method based on instinct. Staffing professionals with these skills are also more valuable than those who lack them. A variety of staffing sources, methods, and skills is usually required if a staffing program is to be effective in meeting all of its goals. Available staffing methods must be analyzed and chosen because they are appropriate to staffing the current vacancy. As the importance of quality and quantity goals change relative to each other, the staffing function must be prepared to change its evaluation strategy as well. In order to measure, we must have clear goals and objectives that are based on the business strategy and the firm’s objectives. Utilizing statistical and software tools for analyzing and predicting staffing outcomes is an important part of maximizing a staffing system’s quality and its return on investment. For a staffing system to consistently produce new hires who fit an organization’s unique definition of success, quality data as well as training in the tools and processes needed to analyze and interpret this information are necessary to make data-based decisions and create a culture that supports the continual evaluation and improvement of the staffing system. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Today, the increasing demand for HR technology parallels increasing interest in evaluating staffing systems and improving staffing ROI. Technology systems are becoming a critical tool in enhancing the value staffing creates for an organization, and in enhancing the efficiency and effectiveness of the staffing function. While initially used primarily by large organizations, more small and midsize companies now use software products to both effectively measure human capital investment and track a wide range of HR metrics.72 As you learned in Chapter 1 and as we have stressed throughout this book, employees are the key to every organization’s performance and survival. Strategic staffing involves the movement of people into, through, and out of the organization in future-oriented and goal-directed ways that support the organization’s business strategy and enhance organizational effectiveness. Planning, measurement, and continuous evaluation and improvement are important to the success of any staffing system. Staffing must be tied to business strategy and reinforce the company’s competitive advantage. It must also be aligned with the other functional areas of human resource management, including training, compensation, and performance management. By partnering with hiring managers and positively influencing the flow of talent into, through, and out of an organization, staffing professionals play an important strategic role in organizations. Takeaway Points 1. A firm’s staffing activities can affect the willingness of applicants to stay in the hiring process and accept job offers as well as their willingness to recommend the employer to others. Staffing can also affect new hires’ job expectations, motivation and job engagement, performance, and retention, and influence the organization’s performance, strategy execution, and leadership capabilities. 2. Staffing metrics can be short-term or long-term and efficiency or effectiveness oriented. Short-term metrics can be used as leading indicators to gauge a company’s ability to have the right people in the right jobs at the right time. Long-term metrics are best for evaluating the effectiveness of the staffing system because they drive the financial impact of staffing on the organization. Staffing efficiency metrics assess the resources used in the staffing process, and staffing effectiveness metrics measure how well the staffing process meets the needs of a firm’s stakeholders and contributes to the company’s strategy execution and performance. 3. A balanced staffing scorecard is a tool for managing employees’ performance and for aligning their incentives with the firm’s key business objectives. The scorecard balances a firm’s strategic, operational, financial, and customer goals and helps managers monitor and assess the performance of employees so as to quickly take corrective action when needed. 4. Digital staffing dashboards are interactive computer displays of indicators of how the staffing function is meeting its goals, using whatever metrics the user chooses. By continually monitoring selected staffing metrics and alerting managers when goals are not being met, dashboards help managers monitor and improve the staffing process. 5. Staffing technology can improve the efficiency and effectiveness of the staffing function by creating a database of applicant and employee information and automating many of the steps of the staffing process. This can save firms time and money. Because technology allows data to be stored and reports to be generated automatically, it can also facilitate the staffing evaluation process. Discussion Questions 1. What might prevent organizations from evaluating their staffing systems, and what can be done to remove these barriers? 2. In your opinion, what three metrics might a university use to evaluate the effectiveness of its efforts to fill instructor positions? 3. If your manager was reluctant to invest in an applicant tracking system, how would you persuade him or her to make the investment? 4. As an applicant, how would you feel knowing that technology were used to make an initial decision to screen you out of the hiring process? 5. What information do you want to see when you visit the careers section of a potential employer’s Web site? Exercises 1. Strategy Exercise: Metrics are only information—it is up to you to interpret and use them. Interpret the following metrics and identify what they might mean by addressing the questions that follow them. a. Compare the following two recruiting sources: 1. Which program do you conclude is better? 2. If the hires from source X are retained for two years, and the hires from source Y are retained for five years, would your conclusion change? 3. What additional information would you need to make a recommendation about the source that’s preferable? b. The turnover rates of different employee subgroups of a firm are as follows: 1. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. In what ways is turnover a problem for this company? 2. How could the company address the situation? 2. Develop Your Skills Exercise: In this chapter’s Develop Your Skills feature, we gave you some tips for creating a digital staffing dashboard. Using this information, create a dashboard for Osram Sylvania (featured in this chapter’s opening vignette) reflecting the following metrics. Use color coding to indicate whether or not a metric is within the parameters the company desires. Metrics: ◾ Top five staffing vendors ◾ Job applicant quantity ◾ New hires’ time-to-contribution rates by recruiting source ◾ Diversity by recruiting source ◾ Osram Sylvania’s staffing efficiency ratio 3. Opening Vignette Exercise: This chapter’s opening vignette illustrated how Osram Sylvania used technology to improve its staffing system. Reread the vignette, and answer the following questions: a. In what ways did technology improve the company’s staffing function? b. Do you think it is appropriate for Osram Sylvania to rank-order applicants based on their answers to the online prescreening questions? Why or why not? c. If you were a hiring manager at Osram Sylvania, what metrics would you most want to have available about your hires? Case Study Staffing Evaluation at Hallmark Hallmark, founded in 1910, is the largest U.S. manufacturer of greeting cards and the owner of Binney & Smith, the maker of Crayola Crayons.73 The company pursues a differentiation and innovation strategy and uses creativity and emotion to help people connect to its products, including its stationery, party goods, photo albums, home decor, collectibles, a cable television channel, and books.74 Privately owned Hallmark has annual revenues of over $4 billion and employs 3,200 individuals at its corporate headquarters in Kansas City, Missouri, and another 12,000 around the world.75 To hire quality people more consistently, Hallmark needed a tool to help it focus its staffing efforts on what is most relevant to the company—that is, on business-relevant criteria that would allow it to more consistently hire quality employees to best execute its strategy.76 However, Hallmark didn’t want the tool to be too complex. To launch the effort, Hallmark created a staffing index to evaluate the quality of the firm’s past hires so as to source and screen candidates more effectively. Upon hiring a new employee, the person’s line manager makes an immediate assessment of the employee’s intrinsic abilities and desirability. To avoid using complex formulas that require a specialized background to understand, the ratings are simple and focused on measuring the quality and timeliness of Hallmark’s hiring system.77 The possible new hire ratings are as follows:78 1 = Average 2 = Above Average 3 = Good 4 = Very Good 5 = Walk-on-Water Good After six months, the hiring manager uses the same five-point scale to evaluate whether its initial expectations have been realized. The data are used to compare new hires who consistently get top ratings with those who don’t to identify any distinguishing factors that can be used to make the hiring process more effective.79 According to one expert, Hallmark is on the right track by keeping its system simple and not getting too wrapped up in the numbers and by focusing on the end result of making good hires. Hallmark views the staffing index only as a means to an end and knows that ultimate staffing success will be gauged not by these metrics, but by the organization’s performance.80 Questions 1. Critically evaluate Hallmark’s staffing index. What are its pros and cons? 2. What additional criteria do you think Hallmark should track, and how should it be measured? 3. Why might an employee rated “walk-on-water good” at the time of hire not live up to expectations? What can a company do to help new employees realize their potential? Semester-Long Active Learning Project Propose an evaluation system to assess the effectiveness of your recruitment and selection suggestions. How will you know if your new recruitment and selection system is working? Identify potential barriers to the effective implementation of your recruitment and selection system and propose strategies for coping with them. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Case Study Assignment: Strategic Staffing at Chern’s See the appendix at the back of the book for this chapter’scase study and work on the Case Study Assignment. Endnotes 1. Osram Sylvania, “We Make Light Better for Better Living,” 2013, http:// www.sylvania.com/en-us/about/Pages/company-profile.aspx; Alexander, I. and Anderson, S. J., “Osram Sylvania Shines New Light on Recruiting With Automation,” Talent Management Magazine, April 2008: 54–64; Cytiva, Inc., “Osram Sylvania Shines a Light on Their Recruiting Efforts with ‘Robustly Configurable’ SonciRecruit,” 2008, http://www.sonicrecruit.com/press_room/sylvania_case.pdf; “Osram,” 2010, http://www.osram.com/osram_com/Consumer/index.html. 2. Kaplan, R., and Norton, D., “The Office of Strategy Management,” Harvard Business Review (October 2005): 72–80. 3. Mankin, M., and Steele, R., “Turning Great Strategy into Great Performance,” Harvard Business Review (July–August 2005): 65–72. 4. Dessler, G., and Phillips, J., Managing Now, New York: Houghton- Mifflin, 2007. 5. Rafter, M. V., “Companies Making HR ‘Big Data’ Work,” Workforce Management, April 2013, 21. 6. Zimmerman, E., “Keeping Tabs on Productivity of Recruiting Tools,” Workforce Management Online, March 2005, www.workforce.com/section/ 06/feature/23/98/25/index.html. 7. Hips, C., “Promoting Diversity through Recruitment,” Personnel Today, August 16, 2012. http://www.personneltoday.com/articles/16/08/2012/ 58740/promoting-diversity-through-recruitment.htm. 8. Pfeffer, J., “Producing Sustainable Competitive Advantage Through the Effective Management of People,” Academy of Management Executive, 9 (1995): 55–69. 9. See Lockwood, N., “Maximizing Human Capital: Demonstrating HR Value with Key Performance Indicators,” Society for Human Resource Management, September 2006, www.shrm.org/research/quarterly/2006/0906RQuart_essay.as. 10. Ulrich, D., and Brockbank, W., The HR Value Proposition, Boston, MA: Harvard Business School Press, 2005. 11. Lockwood, “Maximizing Human Capital.” 12. Denton, D. K., “Measuring Relevant Things,” Performance Improvement, 45, 3 (March 2006): 33–38. 13. Lockwood, “Maximizing Human Capital.” 14. Marquez, J., “When Brand Alone Isn’t Enough,” Workforce Management, March 13, 2006: 39–41. 15. Margolis, D., “Southwest Airlines: Clear Skies Ahead,” Talent Management Magazine, August 2012: 38–41. 16. Group, D., and Joseph, J., 2005–2006 Recruiting Metrics and Performance Benchmark Report, Willow Grove, PA: Staffing.org and Washington, DC: BNA Inc., August 2005. 17. See Group and Joseph, 2005–2006 Recruiting Metrics and Performance Benchmark Report. 18. Sullivan, J., “Best Recruiting Practices from the World’s Most Business-Like Recruiting Function, Part 4,” Electronic Recruiting Exchange, October 10, 2005, www.ere.net/articles/db/D89CC5 F6881B4A24A9A344D6E5FF0D37.as. 19. Barkley, M., “The First Three Things That HR Should Measure,” Workforce Online, February 2003, www.workforce.com/archive/article/23/40/07. 20. Raphael, T., “Cost Per Hire—Don’t Even Bother,” Workforce, June 2002: 112. 21. Ibid. 22. Ibid. 23. Schneider, C., “The New Human-Capital Metrics,” CFO Magazine, February 15, 2006, www.cfo.com/article.cfm/5491043/1/c_2984284? f=archives. 24. Sullivan, “Best Recruiting Practices from the World’s Most Business- Like Recruiting Function, Part 4.” 25. Quartana, L., “How to Assess the Effectiveness of Recruiting,” Net- Temps.com, www.net-temps.com/careerdev/crossroads/print.htm? id=150. 26. Becker, B. E., Huselid, M. A., and Ulrich, D., The HR Scorecard: Linking People, Strategy, and Performance, Boston, MA: Harvard Business School Press, 2001, 48. 27. Cappelli, P., “A Market-Driven Approach to Retaining Talent,” In Harvard Business Review, Harvard Business Review on Finding and Keeping the Best People, Boston, MA: Harvard Business School Publishing, 2001, 27 –50. 28. Singh, R., “The Emperor’s New Metrics, Part 2,” Electronic Recruiting Exchange, September 8, 2005, www.ere.net/articles/db/001D8B71AF754FA18E 074813EB6ADD8A.asp. 29. See Harry, M., and Schroeder, R., Six Sigma, New York: Random House, 2000. 30. See http://savelives.gecareers.com. 31. Weston, S., “Six Sigma in Recruiting, Part 2,” Electronic Recruiting Exchange, April 29, 2003, www.ere.net/articles/db/3669F629B43644DC825FE6D1250890C4.as. 32. Snell, A., “Applying Six Sigma Principles to Corporate Staffing Departments,” Taleo.com, www.taleo.com/research/articles/strategic/ applying-six-sigma-principles-corporate-staffing-32.html. 33. Heuring, L., “Six Sigma in Sight,” HR Magazine, March 2004, www.shrm.org/hrmagazine/articles/0304/0304Heuring.asp. 34. Weston, “Six Sigma in Recruiting, Part 2.” 35. Kaplan, R. S., and Norton, D. P., The Balanced Scorecard: Translating Strategy into Action, Boston, MA: Harvard Business School Press, 1996; see also Becker, Huselid, and Ulrich, The HR Scorecard. 36. Monina, J., and Morre, K., “Backroom to Boardroom: Bridging People Gaps with Saratoga,” PriceWaterhouse Coopers, July 2006, www.pwc.com/Extweb/pwcpublications.nsf/docid/B5E93EADE6D40A7E8025723C00316 $file/PwC_Saratoga.pdf. 37. Based on an interview with Jose Conejos, Nokia’s vice president of global HRD and resourcing, and Jadwiga Zareba, head of resourcing for Nokia Worldwide, June 7, 2007. 38. Ibid. 39. Sullivan, J., “The Recruiter’s Scorecard: Assessing the Effectiveness of Individual Recruiters,” Electronic Recruiting Exchange, October 27, 2003, www.ere.net/articles/db/61A88F9BB9CB463FAA8312AB2D518837. PRINTED BY: sladydee@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 40. Sullivan, J., “Best Recruiting Practices from the World’s Most Business-Like Recruiting Function, Part 5,” Electronic Recruiting Exchange, October 17, 2005, www.ere.net/articles/db/4EDDC98223964CD 5B5BA718AB0CF0F59.asp. 41. Cappelli, P., “Making the Most of Online Recruiting,” Harvard Business Review (March 2001): 139–146. 42. Schneider, “The New Human-Capital Metrics.” 43. Hansen, F., “Lowe’s Builds Its Employment Brand,” Workforce Management Online, January 2007, www.workforce.com/section/06/ feature/24/62/85/index.html. 44. Greengard, S., “Smarter Screening Takes Technology and HR Savvy,” Workforce, June 2002: 57–60. 45. Ibid. 46. Flynn, G., “E-Recruiting Ushers in Legal Dangers: Legal Insight,” Workforce, April 2002, www.findarticles.com/p/articles/mi_m0FXS/ is_4_81/ai_85698986. 47. Weber, L., “Your Résumé vs. Oblivion,” The Wall Street Journal, January 24, 2012, http://online.wsj.com/article/ SB10001424052970204624204577178941034941330.html. 48. Ibid. 49. Greengard, “Smarter Screening Takes Technology and HR Savvy.” 50. Hansen, F., “Continental’s Recruiting Reach,” Workforce Management Online, December 2005, www.workforce.com/archive/article/24/23/41.php. 51. “BrassRing Revealed Recruitment Trends at Summit,” May 22, 2006, Wpsmag.com. 52. Applicant Tracking, Hr-guide.com, www.hr-guide.com/data/ 201.htm. 53. “Human Resource Information Systems,” Lycos.com, www.lycos.com/info/human-resource-information-systems.html. 54. Reh, F. J., “Human Resources Information System,” About.com, http://manageme...
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Running head: OSRAM SYLVANIA


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The technology improves the company's staffing function by reducing the overall cost of
hiring. The recruitment done through job websites is merely 5% cost of the recru...

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