HRP is the process an organization uses to ensure that it has the right amount and right kinds of people to deliver a particular level of output or services at some point in the future. HRP entails using a variety of qualitative or quantitative methods to forecast labor demand and labor supply and then taking actions based on those estimates.

The hiring process consists of three activities: recruitment, selection, and orientation.

The hiring process is filled with challenges. These include (1) determining which characteristics are most important to performance, (2) measuring these characteristics, (3) evaluating applicants’ motivation, and (4) deciding who should make hiring decisions.

Because choosing the right person for a job can have a tremendous positive effect on productivity and customer satisfaction, it is important that each step of the hiring process be managed carefully.

Recruiting should focus on attracting qualified candidates, internally and/or externally. Recruiting efforts should be tied to the firm’s HRP efforts. To ensure proper fit between hires and their jobs and to avoid legal problems, firms should conduct job analyses.

Many selection tools are available. These include letters of recommendation, application forms, ability tests, personality tests, psychological tests, interviews, assessment centers, drug tests, honesty tests, reference checks, and handwriting analysis. The best (and most legally defensible) selection tools are both reliable and valid.

Several federal legal issues govern staffing practices. The Civil Rights Act, the Age Discrimination Act, and the Americans with Disabilities Act all prohibit various forms of discrimination. Executive Order 11246 spells out affirmative action policies. Employers must also take steps to protect themselves from negligent hiring litigation.