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Johnson, Human Resource Information Systems, 5e

SAGE Publishing, 2021
Recruitment at Salesteq Corporation
Assignment Purpose
Attracting employees by using different recruitment sources is an important aspect of human
resource management. Analyzing the effects of different recruitment sources as well as the
total strategy can assist in planning future recruitment strategies. In this assignment, you will
analyze recruitment planning scenarios based on the recruitment experience of the Salesteq
Corporation.

File Needed: HR Recruting.xlsx

Familiarize yourself with the spreadsheet before beginning your work.

Background
Salesteq Corporation is a successful consumer products’ company located in San Francisco. The
company has been growing at a constant rate during the past three years. Productivity gains
have been realized through computerization of its services. Salesteq has strongly supported its
personnel staff since people are viewed as a critical asset for the continued success of the
company.

Employees are recruited from four sources: the web, newspapers, radio, and referrals. All
recruits are interviewed and a selection decision is made “by someone” based on the interview
score? Salesteq’s HR staff monitor the number of interviews they conduct by recruitment
source. Additionally, recruitment data on the number of people hired, average performance of
hires at the end of the first year, and total recruitment costs are collected.

In this assignment, you will be calculating a number of HR metrics pertaining to different areas
of recruitment. These include metrics for assessing Salesteq’s previous recruitment strategy,
planned interview strategy, and actual vs. forecasted recruitment. These computations will help
you to understand what assessments go into evaluating different areas of recruitment at an
organization.

Note
As you work through the assignment, please be sure to continually save your work after each
section. Save your work as a new Excel file using your first initial and last name. For example,
Joe Smith would be:

“jsmith_HR_Recruiting.xlsx”.

Calculations
Make sure you round all calculations performed in the spreadsheet. After all, you can’t have 1/3
of a person. This will require the use of the ROUNDING function. Here is how to use this
function:
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SAGE Publishing, 2021
=ROUND (number, num_digits)

Where,
 number = number (or cell) that you are rounding. You may also use an Excel formula
here.
 num_digits = the number of digits to which number should be rounded.

As with any of the functions used in this assignment, Microsoft and YouTube have excellent
tutorials that can assist you in using them.

Part I – Results of Previous Recruitment Strategy

Please refer to the data in the section of the Excel sheet titled “Recruitment Data by Source for
Previous Year” to complete the calculations below. In this section, you will be looking
backwards at your interview strategy and success by calculating a number of key metrics. These
are:

1. Cost Per Interview. Calculate cost per interview by dividing the total cost for recruiting
for each source by the number of interviews. Calculate this for all sources.

2. Cost Per Hire. Calculate cost per hire by dividing the total cost for recruiting by source by
the number of hires. Calculate this for all sources.

3. Percent Offers. Calculate percent offers by dividing the number of offers extended to
candidates for each source by the number of interviews. Calculate this for all sources.

4. Yield Ratio. Calculate yield ratio by dividing the number of hires from each source by the
number of interviews for each source. Calculate this for all sources.

5. Total Performance. Calculate total performance by source by multiplying the number of

hires by source by the average performance. Calculate this for all sources.

6. Probability of Quitting. Calculate an estimate the quitting probability for hires of each
source by dividing the number of quits in year 1 (e.g. the anticipated number of new hires
who will quit within the first year) by the number of hires. Calculate this for all sources.

Part II – Results of Planned Interview Strategy

Please refer to the data in the sections of the Excel sheet titled “Interview Strategy by
Recruitment Source” and “Results of Planned Interview Strategy” to complete the calculations
below. In this section, you will be forecasting your recruitment plans for the coming year.
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Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021

1. Number of Offers. To obtain the number offers, multiply the number of interviews by the
percent offers received last year. Do this for each recruitment source.

2. Number of Hires. To obtain this figure, multiply the number of interviews for newspapers by
the yield ratio from last year. Do this for each recruitment source.

3. Total Performance. To obtain this figure, multiply the number of hires by the average
performance from last year (Row 12). Do this for each recruitment source.

4. Quits in 1 Year. To estimate the quits in one year, multiply the number of hires by the
probability quitting last year. Do this for each source.

5. Total Cost. To obtain the total cost of recruiting by newspaper, multiply the number of
interviews for newspapers by the cost per interview for newspapers. Do this for each
recruitment source.

Question: Now that the calculations for Part III are complete, can this organization use
historical data to make projections about future recruiting needs?

Part III – Totals for Actual vs. Forecasted Recruitment

Please refer to the data in the section of the Excel sheet titled “Totals for Actual vs. Forecasted
Recruitment” to complete the calculations below. Notice that this section of the spreadsheet
presents a summary analysis so the effects of forecasted recruitment scenarios can be quickly
compared with previous data. Notice also that the ACTUAL and FORECASTED columns are
already completed. The ACTUAL column represents actual data from last year. The
FORECASTED column represents our forecasted information from above.

The ACTUAL and FORECASTED columns currently yield identical results because the # Interview
figures found on the “Recruitment Data by Source for Previous Year” section and the “Interview
Strategy by Recruitment Source” data are the same. This was done to ensure that you entered
your formulas correctly.

1. Set all your data for all sources in the “Interview strategy by Recruitment Source” to zero.
Next, increase the number of interviews from Part II for the recruitment source with the
highest historical yield ratio until the FORECASTED number of hires in the FORECASTED
column (e.g. cell F58) equals the ACTUAL number of hires (D58).

Question: What is the interview source? How many interviews were required?

Before continuing, reset your data to the original forecasted number of interviews.
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SAGE Publishing, 2021
2. Further analysis indicated that 65 percent of Salesteq minority recruits are attracted by
radio. Assume that a minimum of 70 interviews are needed for those who apply due to
radio. Plan an interview strategy such that costs per hire do not exceed ACTUAL costs per
hire with as many FORECASTED outcomes as possible (number of hires, average
performance, and total yield) exceeding ACTUAL outcomes. Explain your strategy for this
scenario. This will require you to change the numbers across all recruitment sources, to
identify an optimal mix of recruitment sources.

As with the previous analysis, reset your interview numbers to the original data.

3. Next imagine that because of budget cutbacks, Salesteq will only budget $6,500 for the
next year’s recruitment budget. Explain your strategy for this scenario.

Question: What are the advantages and disadvantages of this recruitment planning model?
Explain.