Evaluating the recruiting function

38 EXERCISE

Evaluating the Recruiting function

J. OBJECTIVES

A. To make you aware of the necessity o[ evaluating the efficiency and effectiveness of
various recruitment sources.

B. To provide you with practice analyzing data, drawing conclusions, and planning a
strategy to remedy identified problems or deficiencies.

C. To make you aware of the linkages among staff turnover, recruitment sources,
recruitment methods, and adequate staffing.

II. OUT-Of-CLASS PREPARATlON TIME: 2 hours

III. IN-CLASS TIME SUGGESTED: 45 minutes

IV. PROCEDURES

Read the entire exercise, including the backgrolUld on St. Vincent’s Hospital. Then, using the
data provided in Exhibit 2.16, do the caJcuJations on Form 8. A yield ratio is the number of
applicants necessary to fill vacancies with qualified people. It is the relationship of applicant
inputs to outputs at various decision points. For example, the yield ratio for all recruitment
sources in Exhibit 2.16 shows that 273 nurse applicants were generated over the three-year
period from 2005 to 2007. Since only 221 were classified as potentially qualified, the yield
ratio is 2731221 or 1.24 to I. The yield ratio for “potentially qualified” among “walk-ins” is
1.26 (53 –;- 42). The average cost per nurse hired among “walk-ins” is $119.23
($1,550 –;- 13). Students should form groups of two to four students each and calculate
the yield ratios for each recruitment source at each stage of the recruitment process on Form
8. These data show that the hospital needs to start with more than five times as many
applicants as it needs to fill job openings and more than 13 times as many applicants as it
hopes to have as above-average performers.
Do the calculations for Form S on your own prior to class. Think about the implications of

these data for future recruitment at the hospital. Then look at Exhibit 2.17 in conjunction with the
background description and think about the implications for the recruiting process. During the
class period, [olm groups of three to five, which will act as a consulting team for the hospital.
With your group, discuss and answer the questions at the end of this exercise. At the end of the
class period, have a spokesperson for each group discuss the group’s answers and rationale with
the entire class.

BACKGROUND

51. Vincent’s Hospital is a 260-bed hospital in a northeastern city affiliated with the Roman
Catholic church. The administrator is Sister Claire, a 56-year-old member of the Daughters of
Charity religious order.

During the last decade, the hospital operated with a nursing staff of approximately 450
registered nurses and experienced a nursing turnover rate of about 25 percent per year. The
turnover rate was average for the city during this time period. However, it has accelerated to
an average of 35 percent over the past three years.

These higher turnover rates have put additional pressure on the recruiting process to
provide larger numbers of qualified candidates. However, Sam Barnett, director of human

had«’ 38 . f.vd/laling Ih,’ Reau/ling Junelion 127

resources, has reported more difficulty locating qualified nurse candidates over the last three
years. Barnett’s office has prepared the recruitment data shown in Exhibit 2.] 6. The data show
that 273 applicants (from all sources) had to be screened to produce 52 qualified candidates
who accepted a job offer. One year later, 19 of these 52 had left the hospital. The last column
shows the direct and indirect costs of recruitment by source, including clerical time, super­
visor lime, and direct costs, such as travel and postage. The human resource department has
also conducled a telephone survey of all the nurses they could locate who did not accept a job
offer from the hospital during the most recent three-year period. Reasons for such rejections
are shown in Exhibit 2.17.

Sister Mary Louise, the 62-year-old director of nursing service, has conducted all off-site
recruitment for maoy years. This includes both the nursing job fair and the State Nursing
Association meeting. She has begun to feel burned out as a result of all her external recruiting
and internal evaluation of candidates over the years.

At a recent meeting, she suggested that an outside group (your group) be brought in to
analyze the whole recruiting process, identify problems and opportunities, and suggest
improvements. Sister Claire and Barnett readily agreed to an outside consultant because they
are aware of current severe nursing shortages due to declining nursing school enrollments.
St. Vincent’s itself contributed to this enrollment decline by closing its own School of Nursing
due to fewer applications and the high cost of operation.

Since recruitment of new nurses has begun to fall behind turnover of nurses employed at
St. Vincent’s, the vacancy rate has begun to increase. Five years ago, only II percent of staff

EXH IBIT 2.16 Data em Recruitment Sources [or Uegistered Nu rscs at St. Vincent’s Hospital, 2005-2007

Invitation Ilualified One- Above- Total
Number of Potentially for and Offered Accepted Year Average Recruitment

Recruitment Soun;e Applicants Qualified Interview Job Job Survival Rating Costs

1 Internet appl icet ions 83 72 fJJ 38 21 12 5 $1,145
2 Walk-ins 34 17 8 6 3 1 1 900
3 Employee referrals 13 12 7 5 4 3 2 400
4. Newspaper ads 24 16 8 4 2 1 0 750
5. Journal ads 19 18 10 8 4 2 2 450
6. Educational

Inslitu\ions

Junior COlleges 16 13 11 6 2 2 1 1.200
Hospital-based 8 8 3 2 1 0 0 BOO
schools

University programs 24 24 16 14 10 8 7 1,300
7. Private employment 9 9 8 5 2 2 1 4,000

agency

8. Public employment 8 4 2 0 0 600
agency

9 Drrect mail 15 14 4 3 0 0 450

10. Job fair 13 7 5 3 1 1 900
1L Siale NurSing

Associa lion meeti ng 7 7 4 3 0 0 0 1.150
Totals 273 221 146 98 52 33 20 $1<1,045

Purl.2 • MI'(l1Irg HlOn(ll1 Resource RC/ltltrt’mc/lts 128

FORM 8 Yield Ratios at Each Step in the Recruitment Process and Recruitment Cost per Nurse Hired, St. Vincent’s Hospital, 2005-2007

l!’
~. ”

~

‘”

”

~
~’

~
~
~’

“”g.”
~

,.”

‘”

Yield Rates

Recruitment Sources
Potentially
Qualified

Accepted
Interview

Offered
Job

Accepted
Job

One-Year
Survival

Above-Average
Rating

Average Cost
Per Nurse

mred

1. Internet applications

2. Walk-Ins

1 Employee referrals

4. Newspaper ads

5. Journal ads

6. Educational institutions
Junior colleges
Hospital-based schools
University programs

7. Private employment agency

8. Public employment agency

9. Direct mail

10. Job fair

11. State Nursing Association
meeting

Averages for all sources 1.24 1.87 2.79 5.25 8.27 13.65

EXHI81T 2.17 Reasons for Nurse Rejection of n Job Qffer from St. Vincent’s Hospital, 1996-1999

Reason Number Percent
RecrUitment Processes

Job attributes not communicated 2 4.3

Negative perception or recruiter 12 26.1
Negative perception of hospital 2 4.3

Lack of timely follow-up 13 28,3

Perceived lack of honesly in recruitment process 1 2,2

Negative Information from recruiter 1 2.2

Job Attribu/es

Location of hospital 3 6.5

Salary offer 2 4.3
Hours of work 2 4.3

PromoliOnal opportu nItles o 0.0
Fringe benefits o 00
Working conditions 3 6.5

Perceived roor Job “match” 5 10_9

Totals 46 1000

nursing positions were unfilled. This percentage has now increased to 23 percent. One result
has been an exl)dusting workload on the ex.isting nursing staff. In addition to increased
turnover, the symptoms of staff burnout (i.e., stress, conflict, absenteeism) arc becoming
more evident.

QUESTIONS

1. How would you evaluate the nurse recrUltlllg strategy currently being used by the
hospital? Is the hospital using too few or too many recruiting sources? Why?

2. If you feel the hospital is using too many recruitment sources, which ones would you
eliminate and why?

3. What stage or stages in the recruitment process seem to be most amenable to improve­
ments? What specific improvements would you suggest to decrease the yield ratios? Why?

130 P(Jrl 2 . Mr:c:/ing HJmf(l’~ lle’:jOUfC(‘ Rt:qtljrtmcnts