Unit 5: Recruitment retention (2016)Apunte Inglés
Unit 5 Merce Mach ADE en inglés A6-B6
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Recruiting & retention within the HR system
Recruitment is the first step in the hiring process. The process is completed after
Recruiting is searching for and obtaining qualified job candidates to consider when filling job openings.
Retention is all that an employer does to encourage qualified and productive employees to continue working for the organization.
Ideally, both management & applicant needs are satisfied in the selection process.
How Strategic Business Objectives Influence recruitment and retention.
Strategic objective Examples of implications for recruitment and retention objectives Increase Return on Investment Recruiting practices need to focus on by offering innovative products attracting highly qualified applicants at and maintaining high margins the cutting edge of their fields.
Best talent not likely to be looking for jobs so need to go to them (not wait for them to come to us).
Excellent retention strategy for top talent needed as workforce will be an attractive pool that other companies will try to raid. Knowledge retention is key strategic concern, also.
Strategic objective Examples of implications for recruitment and retention objectives Increase market share by offering lowest-cost service Important to retain current talent as company grows.
Need to predict rate of growth & translate changes in market share to increases needed in size of workforce.
Continuously improve efficiency of recruitment practices needed to keep costs down.
Low-cost strategy puts pressure on compensation and benefits costs, so need to be creative in finding lowcost ways to attract and retain talent.
Strategic objective Examples of implications for recruitment and retention objectives Respond to declining industry May need to develop & implement trends by diversifying into new layoff plans, creating the challenge businesses of how to attract new talent & retain best talent at the same time.
Recruiting efforts for new business areas should include plan for lateral transfers from declining business areas, to minimize need for layoffs.
For new businesses, HR will need to develop strategies for recruiting key talent Improving productivity It is about controlling costs while ensuring that the organization can grow, diversify, and expand internationally as well as recruiting technical workers and senior management. It implies legal compliance and involving employees in recruitment. An example can be JPS Health Network.
Reducing labor costs Basically expenses to recruit, hire and train employees. However there is lost productivity such as: Errors made by inexperienced employees Paperwork mistakes Damaged products Projects or contracts lost Lower morale among remaining employees Lost knowledge and business contact Job analysis answers these questions What are the characteristics of the ideal recruit? Which competencies must people have when they first enter the organization? How important is it for new hires to learn new competencies? What career opportunities can be discussed with applicants? Recruiting & retaining within an Integrated HRM system Links to other HR Activities. Recruiting activities may affect other parts of the system, and other parts of the system may affect recruiting activities like Fairness & Legal Compliance.
HR Planning & Change.
Job Analysis & Competency Modelling Training & Development.
Benefits & Services.
Labor markets Laws and reputation Technology HR Triad: Roles & responsibilities for recruiting and retaining employees Line managers HR professionals With HR, develop objectives, plans.
Understand HR Openly discuss Design recruitment objectives.
Consider all aspects linkages.
and retention of HR in career Disseminate info to activities.
recruitment Know labor market outcomes Participate in recruitment efforts.
Assist in diversity efforts.
Provide training in recruitment.
Abide by laws.
Develop objectives, plans.
internal Employees Use exit Seek info on company openings.
Recruiting sources and methods. Research shows no clear differences in employment experiences of employees recruited from different sources—internal or external. Advantages of using multiple sources is that a larger pool of applicants is generated and diversity is increased.
Promotions Transfers Job posting Talent inventories Recruiting within the organization Benefits of a promotion-from-with policy: Capitalizes on past investments (recruiting, selecting, training, & developing) in current employees.
Rewards past performance and encourages continued commitment to the organization.
Signals to employees that similar efforts by them will lead to promotion.
Fosters advancement of members of designated within an organization.
Accurate record of past performance Limitations of a promotion-from-with policy: Current employees may lack the knowledge, experience, or skills needed for placement in the vacant/new position.
The hazards of inbreeding of ideas and attitudes (“employee cloning”) increase when no outsiders are considered for hiring.
The organization has exhausted its supply of viable internal candidates & must seek additional employees in the external job market.
Internal methods of locating qualified job candidates Human Resources Information Systems (HRIS). Database systems containing the records & qualifications of each employee that can be accessed to identify & screen candidates for an internal job opening.
Job posting & bidding. Posting vacancy notices & maintaining lists of employees looking for upgraded positions.
Pros and cons of internal recruitment Pros Cons Reduces labor costs Limits applicant pool Valued by employees May cause infighting Enhances reputation as employer Inbreeding External labor market.
School placement Job fairs Trade associations Acquisitions/mergers Walk-in applicants Traditional media Employee referrals Employment agencies Electronic media Outside sources of recruitment.
Unsolicited applications & resumes.
Executive search firms Educational institutions.
Public employment agencies.
Private employment agencies.
Recruiting outside the organization Labour market. Area from which applicants are to be recruited. We know as tight market if there is high employment and few available workers.
However, we know as loose market if there is low employment and many available workers.
Factors determining the relevant labour market: o Skills & knowledge required for a job o Level of compensation offered for a job o Reluctance of job seekers to relocate o Ease of commuting to workplace o Location of job (urban or nonurban).
Improving the effectiveness of external recruitment External recruitment considerations Sources of organizational recruiters o Professional HR recruiters o HR generalists o Work team members Requirements for effective recruiters o Knowledge of the recruited job’s requirements and of the organization.
o Training as an interviewer o Personable and competent to represent the organization Tips for selecting an Executive search firm Learn about the search industry; be sure to understand its weaknesses.
Investigate the firm’s “completion” rate. Some firms fill the positions they are hired for more than 90% of the time. Others fill the positions less than 70% of the time.
Be sure you know how many restrictions the firm is under. If a firm you want to use is obligated to not recruit from a long list of clients, you may need to hire more than one firm.
Determine the ratio of “lions” (the partners who often are essential to arranging a meeting and closing a deal) to “squirrels” (researchers and recruiters who help put together a list of possibilities). Be sure you meet the squirrels before hiring the lions.
Understand and carefully consider the fee structure. Most fee structures are designed to benefit the search firm making few performance commitments to clients. Negotiate a flat fee rather than a fee based on the new hire’s compensation & insist on a refundable retainer.
Understand the search process used by the firm & evaluate how likely it is that the process will yield candidates who meet your recruitment objectives.
Employing foreign workers Complying with regulations & facilitating the successful relocation of foreign workers are two responsibilities that must be accepted by employers of foreign workers. Specific activities include the following: Publicize job openings in foreign labor markets using methods that are culturally appropriate to the location.
Monitor the salaries and benefits of foreign and domestic workers.
Provide relocation support to foreign employees, including assistance with immigration, travel, permanent residence applications, visa renewals, bank accounts, credit cards, drivers’ licenses, and so on.
Develop & provide training & acculturation programs for both domestic & foreign employees.
Assist foreign employees with the process of repatriation into their home country at the end of their employment assignment.
Contingent workers Are those hired with no implicit or explicit contract for long-term employment. Are expected to cope with the unexpected or temporary challenges. Their assignments usually last 3-12 months and are recruited through temporary help agencies. This include: Free agents Independent contractors Temporary workers Rehires and recalls Those are used to cope with seasonal fluctuations. Former regular employees can be rehired as temporary ones.
Advantages: Inexpensive and effective way to recruit Freedom to work on their own schedule Disadvantages: Lack of commitment Distrust over pay Contingent employment Advantages Employees have flexibility.
Disadvantages Contingent workers may have less commitment.
Workers can preview jobs and organizations.
Easier to give regular Conflict common between regular & temporary workers.
employees temporary leaves.
Compensation may be higher than regular employees.
Using metrics to manage the talent supply chain Supply chain management refers to procedures for coordinating all aspects of the production process. Its goals are to keep costs low and to maximize productivity.
An example can be Valero Energy.
Recruiting from the applicant’s perspective Building a corporate reputation includes planning to become an “employer of choice”. This involves what benefits to offer and how to communicate to the public.
It has also risks such as Investment required Benchmarking may highlight deficiencies May rise employee expectations and awareness Factors influencing the behaviour of job applicants The recruitment experience Easy and fast o Online applications o Promptness of decisions Behaviour of recruiters o Should show sincere interest.
o Should make a good personal impression.
o Should give applicants the information they need.
o Should not be overly aggressive in trying to sell the job.
Perceptions of fit Factors affecting applicant’s perception of fit Uncertainty about choice of occupation.
Individual needs, interests, and abilities.
Prior exposure to the occupation.
Concern about skills fitting job.
Status of the job in the organization.
Nature of the work itself.
Expectations about career advancement.
Recruiting: The applicant’s perspective Recruiters should: Make it easy to apply Make a good impression Make an attractive offer Give applicants information they need Reject with fact The status of recruiters is the treatment of applicants and promptness of decisions.
Making an offer applicants will accept Most job seekers are looking for “acceptable,” rather than “ideal” job. Location, job, company, & match with organization’s values are all important to the applicant.
Making an acceptable offer Pay. Non-compensatory reservation wage is the minimum pay to make an offer acceptable, frequently based on: o Prior compensation o Length of unemployment o Availability of salary information It is generally higher for males than females.
Benefits & work arrangements. Most employers take the compensatory approach but more applicants prefer flexibility in benefits and opportunities to learn.
Giving applicants the information they need Realistic job previews o Describe positive and negative aspects o Increases number of recruits and commitment o Help individuals self-select.
Give more information using o Ads o Job descriptions o Film/video o Work samples Recruiting ethics: Honesty pays Realistic previews: o Describe positive & negative aspects.
o Increases number of recruits & commitment.
o Help individuals self-select.
Multiple sources of information o Ads.
o Job descriptions.
o Video presentations.
o Web casts, blogs.
o Work samples Recruiting ethics: Respectful rejection Rejecting applicants is an important step in the recruitment process. However, it can tarnish firm’s reputation if it is not done properly. Applicants should be rejected by personalized tactful response in a timely manner.
Recruiting practices that may create a glass ceiling Reliance on Networking—Word-of-Mouth: Middle- and upper-level positions often are filled through word-of-mouth referrals. Corporate executives may learn of individuals, interview them casually at luncheons or dinners, & make them an offer, without a formal recruitment process.
People not in the executive network experience diminished opportunities.
Reliance on Networking—Employee Referrals: In some companies, elaborate employee referral systems are in place. If employees in the company do not represent the full diversity of the labor force, the pool of applicants created by their referrals also will not reflect this diversity.
Executive Search Firms: Employers are responsible for obtaining a diverse pool of applicants. Companies may not make executive recruitment firms aware of their equal employment & affirmative action obligations & objectives, or they may not use success in this area in deciding which search firm to hire.
Job Postings: Some companies post job notices for lower-level jobs, but not for mid- to upper-level jobs. At the higher levels, employees learn about openings only through their informal networks. Informal communications tend to flow more intensely among people who are demographically similar, which means that members of many protected groups are less likely to hear about openings for higher-level positions.
Recruiting Venues: Recruiting often occurs at conferences for trade and professional associations and interviews often are scheduled to take place in a hotel room. A study by the Wellesley College Center for Research on Women found that holding job interviews in hotel rooms can be intimidating for many women & reduces the possibility of finding qualified women applicants.
Retaining employees Understanding the Reasons for Turnover o Turnover, not growth, creates most recruitment pressures.
o Not all turnover is bad.
o Most (not all) turnover is caused by dissatisfied employees and is undesirable.
o Exit surveys are useful in diagnosing turnover.
HR Practices can Reduce Unwanted Turnover Managing layoffs Consequences of Layoffs o Having to rehire same people o Having to compete for new workers o Loss of trust in management by investors Avoiding Layoffs o Keep the long-term view in mind Assisting Displaced Employees o Treat people with respect.
Timelines for Layoffs o WARN Current issues Employee Value Proposition. A statement that answers the following question: What’s in it for me? If I take a job at a particular company, what will I get in return for the skills I bring to the company and the effort I put into doing my job? An example is Tesco.
Recruiting & retaining older workers.
o Data indicates that labor shortages in the coming years will be a real issue.
o Recruiting and retaining older workers will become increasingly important.