SHRM - Sourcing and Recruiting


Precursor to recruitment; generates a pool of qualified applicants, identifying both active and passive job seekers. Involves internal and external advertising.


Process of encouraging candidates to apply for job openings. Attracting quality (not quantity of) candidates is the critical factor.

Advantages of internal recruitment

- Reward for past performance
- Makes use of people who already know the organization
- Motivates other employees / improves morale
- Can be cost effective
- Promotes career paths and adds to EVP

Disadvantages of Internal Recruiting

- May foster stagnation; candidates may have limited or no outside perspective
- Heavy burden on Learning and Development
- May create negative or competitive work environment as ppl try for promotions

Advantages of External Recruiting

- Brings in new ideas and talent
- Org gains needed competencies
- Provides cross-company insights
- May reduce training costs
- Helps org promote diverse environment

Disadvantages of External Recruiting

- May results in misplacement
- Increases recruitment costs
- May cause morale problems for internal candidates
- Longer onboarding and orientation

HCMS acronym

Human Capital Management System

Inside moonlighting

Internal recruiting source; workers take a second job in the org, often when there is a short-term need and additional work is minimal.

Job Bidding

Internal recruiting method that allows employees to indicate an interest in a position before one becomes available.


Internal recruiting source where managers nominate high-performing workers as candidates for internal roles.

Skill banks and skill tracking systems

Internal recruiting source; computerized talent or skill inventories furnish lists of qualified people.

Succession planning

Internal recruiting source; Potential talent in an organization is identified and developmental plans are established to help prepare individuals for promotional roles.

External Recruiting Source: Community Awareness

Approach that increases awareness of the organization's brand and identifies the organization as a premier place to work (e.g., participation in community volunteer programs, humanitarian events, local job fairs, local school events)


External Recruiting Source: An advertising partnership that provides advertising in a certain area targeted to people who meet a certain criterion, such as spending a certain amount of time in one geographical area

Intra-region recruiting

External Recruiting Source: Sourcing for specific skills (e.g., language and cultural skills) in a specific country for positions that cannot be filled by local hires (e.g., recruiting in Singapore for positions in China)

Open houses

External Recruiting Source: Events where walk-in applicants are invited to learn about an organization

Outplacement services

External Recruiting Source: Services that maintain job sites or job boards for individuals displaced due to layoffs

Is contacting former employees considered internal or external recruitment?


What are some challenges of internet recruiting from a global perspective?

May raise issues of data privacy, may be less effective in cultures that value face-to-face communication over technology, and in some cultures, it may be inappropriate to post a resume on a website.

Advantages of E-Recruitment (internet recruiting)

- includes active and passive candidates
- allows immediate response to job ads
- increases applicant pool
- facilitates better candidate matching
- allows more realistic preview of job
- can target specialized skills
- can target particular culture-fit g

Disadvantages of E-Recruitment (internet recruiting)

- High volume of responses, including unqualified candidates
- Labor-intensive and costly filtering process; not getting back to candidates may damage employment brand
- Data privacy may restrict activities
- May exclude qualified candidates who would pre

Advantages of using social media for recruitment

- Low-cost publicity
- Can target geographically diverse talent
- Can reduce recruiting costs and time-to-fill
- Ability to engage passive candidates

Disadvantages of using social media for recruitment

- Info on prospective candidates may not be accurate
- Some content may be maliciously planted
- Employer may learn more than they want to know about a candidate, which may carry legal risks such as discrimination claims

What are some guidelines for recruiting effectively?

1.) Be proactive and have a defined TA strategy; 2.) Build a brand that entices the best candidates to apply; 3.) Use realistic job profiles; 4.) Automate - keep a database of qualified candidates; 5.) Innovate / be open to new methods; 6.) Treat candidat

What are some of the costs associated with turnover or an extended time-to-fill period?

Costs directly attributable to the loss of the employee; Costs associated with identifying, onboarding, and retaining a new worker; Lost opportunity costs, such as lost revenue


Finding the right people with the right skills for the right price in the right place at the right time.


Number of people on the org's payroll at a particular time. AKA "Full-time equivalency" (FTE)

True or False: large swings in headcount are the result of employee turnover.

False; significant changes in headcount are the result of operational changes, such as acquisitions, greenfield operations, or divestitures.

What does calculating headcount tell us?

Provides representation of the average number of employees the org requires.

What does dividing the workforce into groups and subgroups tell us?

Gives us knowledge of the composition of the workforce and helps us plan for diversity and operational requirements

How do demographic metrics help HR?

Allows HR to use metrics for planning and forecasting.

How might a Talent Acquisition strategy react to a workforce that is nearing retirement age?

1.) May plan to start recruiting externally, or 2.) May plan to develop younger staff in preparation for supervisory roles.

Cost of Hire: Equation

Cost of Hire = Total costs / # of new hires

In the Cost of Hire Equation, what does "Total Costs" refer to?

Advertising costs, recruiter & agency costs, referral incentives, relocation bonuses, screening costs, travel costs, salary cost of recruiters

What might skew our calculations of the cost of hire?

Mixing different types of employees into the same equation. For example, lumping senior-level employees with lower-lever employees may result in a skewed calculation of cost of hire.

CPH Acronym

Cost Per Hire

Cost Per Hire definition

Measure of the effort exerted (financially) to staff an open position in the org.

Why is knowing the Cost Per Hire important? I.e., how does it help us make decisions?

Importance of retention

Cost Per Hire Equation

CPH = Sum of internal and external costs / Total number of hires in a time period

Define "External Costs" as used in the Cost Per Hire equation

All sources of spending outside the org on recruiting efforts during a specific time period. E.g., agency fees, advertising, job fair costs, travel costs.

Define "Internal Costs" as used in the Cost Per Hire equation

All sources of internal resources and costs used for staffing efforts during a specific time period. E.g., salary and benefits of recruiting team, fixed costs such as HRIS costs.

CPHI acronym

Cost Per Hire, Internal

Cost Per Hire, Internal

Measures Cost Per Hire for a single org; it is not designed for comparison with other orgs' CPH data.

CPHC acronym

Cost Per Hire, Comparable

Cost Per Hire, Comparable

Creates the CPH measure for comparison across organizations

Recruitment Cost Ratio

(Sum of external costs + internal costs) / (First year compensation of hires in a time period x 100%)

What does a Recruitment Cost Ratio tell us?

How much cost are we incurring compared to total salaries in that first year. I.e., recruitment costs vs salary costs. I.e., what percentage of the salary did it take to recruit that person / those people. Are we efficient and effective in our recruitment

Yield Ratio

Can determine which recruitment source or method or type of recruiter produces the greatest yield and identify areas that may need improvement.

What are some examples of yield ratios that a TA might use?

1.) Qualified applicants / Total applicants; 2.) Minority applicants / Total applicants; 3.) Offers accepted / Offers extended

What could we do to increase our yield ratio of our qualified applicants to our total applicants? (Example: yield ratio shows 100 qualified candidates / 300 total candidates = 33%)

May need to re-evaluate our sourcing approach, make sure job description is clear and correct, re-evaluate job advertisements

Days to fill

AKA time to fill; number of days from when a job req is opened to when the offer is accepted

What may happen when we emphasize speed in our efforts to decrease Time To Fill?

May increase recruitment costs and decrease quality of hire.

Lost Opportunity Cost

How much is a business losing because we don't have a position filled. Increase in OT pay, loss in sales, etc.

What does a Day-To-Fill metric help HR & managers understand?

Helps determine a realistic amount of time to hire new workers. Also helps managers plan for redistributing work amongst existing employee while the position is open. Helpful with resource and budget planning.

Factors Influencing Recruitment

Cost efficiency, Quality, and Speed

What are some factors that will affect the time-to-fill metric?

Type of employee (full time vs part time vs temporary,) Level of employee, Specialized (or not) roles, Legal compliance requirements, Labor market conditions, Total rewards offerings


AKA turnover. The loss of employees due to reasons other than firing and other employer-initiated events. Implies employer has no direct control over how many employees are lost to attrition

What are some "direct costs" of attrition?

Monetary; money spent on sourcing, recruiting, selecting, hiring, orientation, and onboarding

What are some "indirect costs" of attrition?

AKA "invisible costs;" difficult to quantify financially, but there may be expensive damage to goodwill and reputation

What is a challenge when calculating metrics globally?

May need to adjust metrics to reflect a specific location. E.g., in countries where job changes are infrequent, a longer time to fill can be expected than for countries where job changes are common.

What is a target?

Goal or objective

What is a measure?

A number without context. "35%

What is a metric?

A number with context. "35% of employees with 5+ years of experiences are leaving.

What are analytics? / What do they help us do?

Proactive approach to business problems or issues to help drive the outcome that we're looking for.

Example: If the org has a 35% turnover rate, what would analytics help us do?

Take a proactive approach; understand the exiting workers take knowledge with them and ask 1.) what can we do to retain the people with this knowledge? (We can't always do this.) and 2.) What can we do to retain the knowledge itself? (Succession planning,

Workforce analytics

Tools and quantitative methods that help an org draw conclusions from its HR data quickly and efficiently

How can predictive analytics help staffing teams?

Identify traits that make for successful performance, find a broader range of candidates than provided by traditional methods, reduce search time, improve analysis of the quality of candidates, reduce time to fill

Which is the first activity an HR professional would complete when beginning to recruit for an open position?

Sourcing. Sourcing precedes recruitment. This generates a pool of qualified individuals who may be potential candidates. Orgs use a variety of techniques and incorporate employment branding to source talent.

What the primary characteristic of direct costs related to turnover?

Direct costs of turnover can be quantified. ($$) They include recruitment fees as well as costs for sourcing, hiring, and onboarding.