HR Planning
What are the three stages of HR planning?
Forecasting, Goal Setting & Strategic Planning, Program Implementation & Evaluation
What is the difference between internal and external recruiting?
Internal = Hiring from within the company; External = Hiring new employees from outside the company.
What is the quickest way to reduce a labor surplus?
Downsizing (layoffs), pay reductions, or demotions.
What is a yield ratio, and how is it used in recruitment?
A metric that measures how many applicants from a recruiting source move forward in the hiring process.
What is an employment-at-will policy?
It allows employers to terminate employees at any time for any legal reason, and employees can quit at any time.
What is the purpose of workforce forecasting?
To predict future labor supply and demand to ensure the organization has the right workforce.
Name two advantages of internal recruiting.
Lower cost, faster hiring process, increases employee motivation, and retains company culture.
Why might companies avoid downsizing even if they have a labor surplus?
It can hurt employee morale, damage company reputation, and create skill shortages when demand rebounds.
How do companies calculate cost per hire?
Total recruiting costs divided by the number of hires.
How does a due process policy protect employees?
It ensures employees have the right to appeal termination or disciplinary decisions.
Name two quantitative forecasting methods used in HR planning.
Trend analysis and ratio analysis.
What is the main disadvantage of external recruiting?
It can be expensive and time-consuming compared to internal hiring.
What is the most common short-term solution to a labor shortage?
Overtime for existing employees.
What is a common way to measure the effectiveness of a recruitment strategy?
Comparing the number of qualified applicants, time-to-hire, and retention rates.
What is a lead-the-market pay strategy, and why do companies use it?
It means paying above market rates to attract top talent and improve retention.
What is the difference between a labor shortage and a labor surplus?
Shortage = too few employees; Surplus = too many employees for available jobs.
Why might a company use headhunting or executive search firms?
To find highly qualified candidates for specialized or senior-level positions.
Name two long-term solutions for addressing a labor shortage.
Hiring more employees, training/retraining current staff, outsourcing, automation.
What are two key traits of an effective recruiter?
Strong communication skills and the ability to assess candidate fit.
Why is employer branding important in recruitment?
It helps attract top candidates by promoting the company as a great place to work.
What is a transitional matrix and how is it used in HR planning?
A tool that tracks employee movement within an organization to predict job availability and turnover trends.
What is a realistic job preview (RJP), and why do companies use it?
RJPs provide honest information about job expectations to help reduce turnover by ensuring candidates fully understand the role before accepting.
What is a workforce utilization review, and why is it important?
It analyzes whether a company’s workforce aligns with demographic goals, especially for affirmative action planning.
How does a recruiter’s behavior impact an applicant’s decision to accept a job?
A recruiter’s professionalism, responsiveness, and ability to provide clear job expectations can influence whether a candidate joins the company.
What is a job posting system, and how does it benefit internal recruiting?
A method where employees can view and apply for open positions within the company, increasing career mobility.