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July 21, 2013

Essay on Internal and External Recruitment

11:14 AM
Internal and External Recruitment
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization.” There are two types of recruitment methods: internal and external.
        Internal process refers to the process of recruiting employees from inside the organization. It includes transfers, promotions, demotion, upgrading, retired employees, retrenched employees, and recruiting dependents and relatives of deceased employees. In contrast, external recruitment refers to the process of recruiting candidates from the outside sources.
     These sources are press advertisements, educational institutes, employment exchange programs, outsourcing through placement agencies, unsolicited applicants, and employee referrals. Most companies opt for external recruitment method especially those with a huge staff such as Publix. Nevertheless, internal process, too, has its advantages and shortcomings.
Internal recruiting is the search for in-house employees who have the abilities and the attitudes to fulfill the requirements needed and help the organization achieve its objectives. (Edwin, 2004) The major advantage of internal recruitment is its low cost and time saving characteristic. It only requires sorting out of already existing employees—who are promoted, demoted, or transferred. This makes selection process less time consuming and inexpensive as compared to external recruiting. Plus, the hint at potential promotion or transfers sends out a clear indication to the current work force that the organization offers room for growth. This may fulfill the need of employees struggling to achieve their best.
The external recruitment method is another way of recruiting people for a job position. It involves the recruitment of people who are not actually working for the organization but who are outsiders. There are various types of external recruitment, some of which are international recruitment, advertising and employee referrals, which we will discuss later on in this assignment. (Stone 2008)
This method has its advantages such as the pool of applicant and talent is bigger or there will be people with different skills and qualifications and its disadvantages, such as it is difficult to attract and select a new employee or the latter may not be able to adapt himself to the organization or his personality may not match the company’s culture. (Lerner 2008, 6)


                                   Strategic Staffing – goals and evaluating systems
The first step for any business is examining what type of staffing strategy to use when looking to hire potential new employees. A staffing strategy is defined as a strategy that focuses on the supplying of staff or employees for a specific job function within a company. The first step in developing the staffing strategy for any organization is looking at the staffing models from the other similar organization. Staffing models are related sets of reports, charts and graphs that are used to precisely understand how employee time is spent and at what cost. These sets of related charts and graphs provide both a broad and in-depth picture of work activity time and cost. The staffing plan then will allow the organization to forecast the future workflow, estimate the number of employees and predict potential problems that may arise in the facility.
The second step in determining what type of staffing strategy to use is to look at the specific job prerequisites and determine where to look for the type of employee needed to fill that position. Training new employees to do specifically skilled jobs can be an expensive and slow process therefore; many companies look for employees that already possess certain levels of education or specific training. This type of strategy is often very successful because the education or specific skills do away with the time spent in job training. "The goal for corporations remains the same: employ the highest quality talent, those who best fit a job position and are the strongest performers. (Snell, 2002). Staffing strategies for hiring unskilled specific job duties is a less extensive search.
The unskilled employee can be found with several methods. Often companies will simply advertise in the local newspapers. The local newspaper allows the company to get a broad message that they are looking for potential employees. Many companies turn to government agencies to find unskilled labor. Companies often place their job opportunities at the local job employment agencies located at their local county job agencies. The choice of attempting to staff the facility with local county personnel has its advantages over advertising in local papers because the local county job employment service allows the employer to have a continuously open source of potential employees. Companies realize that they need to use several types of staffing strategies in order to fill their company with the best-qualified employees.

Publix is a reputable supermarket chain known for its premier customer services. In its case, the company has employed retail staffing specialists who are researchers, strategy builders, and company ambassadors and data analysts. The recruiting team helps more than 1,000 stores in attracting applicants who have a passion for people, high standards of excellence, and availability to work retail hours. (www.publix.com) At Publix supermarket occasionally candidates are hired from outside sources to fill management positions, most promotions are made from within to ensure that our managers are fully aware of our standards, our best practices, and our culture.

The company also uses JPP(Job Preference Program) system which requires applicants to call an 800 number where they connect with a forty-to-ninety-minute basic skills test that helps weed out unqualified candidates before any time is invested in live interviews.(Branham, 2001 )
The networking system allows applicants to go to stores within commuting distance. In one instance, the computer automatically upgraded the job status of woman from cashier to sale associate hiring her for the new position on the basis of her long-term objective mentioned in her application.


The main objective to having a staffing strategy is to help meet the company's business goals. By understanding business goals keeps the competitive advantage low for other organizations to try to take over. By having the company business goals in mind helps with the continuous growth of the company to become larger and possibly hire more often with in time.

Publix’s normal practice for staffing new stores is to invite applications for all non-management positions three to four weeks before the opening of a new store. The company also organizes job fairs which allow the desiring candidates to complete their application forms and later to be interviewed there and then by the managers.  Sign posted at its Job Application Center directs the applicant to the new stores.
When a candidate applies at the Job Application Center, he/she is not required to state the store that one wants to work at since the application becomes visible to both the managers of the store one is applying at and the mangers of the new store simultaneously.  This allows the company to respond to the staffing needs of both the stores and keep an eye on the future needs as well.  
Developing a Staffing Strategy for Publix is crucial and requires a partnership with the recruiter and management staff in order for the hiring process to be successful for the company. By enabling a partnership with management and recruiters this allows the company to work together to find the perfect fit for the position. This means the hiring manager is there in the initial hiring process with the recruiter. This also allows the strategy assessment of the hiring of the employee equal involvement because the recruiter and manager are working as a team.
Publix also makes transfers (internal recruitment) in its management to ensure that the store continues to offer best customer services, effective operation, and quality products. It also occasionally hires external candidates for one or more managerial positions. The mix of internal and external recruitment methods is strategically important for the company it paves the way for a competitive environment and inclusion of motivated employees.
Press advertising can generate quick responses and it also reaches a wide range of possible applicants actively looking for a new job. However, this method can be expensive and it may attract too many candidates who are not in your chosen sector.
Using recruitment agencies can save a lot of time and money as they will advertise shortlist and interview. This method can also be quicker than others as the company has access to the agency's database of potential candidates. On the other hand, recruitment agencies can be very expensive, they may not understand exactly what the company requires and they may use limited selection methods as recruitment consultants' skills can vary. As stated above, Publix has hired staffing retailers for that matter.
Using the Internet can shorten the recruitment cycle and can be cheap depending of the site the company chooses--some companies list vacancies for posts on their own websites. Moreover, it can reach a wide range of applicants 24 hours per day. Nevertheless, the Internet is still not the first choice of people looking for jobs, and, you may get a greater number of candidates that are not in the companies chosen sector. Publix has a maintained and updated websites offering desiring candidates to submit their application online.
Turnover can be a positive process when an employer manages to bring new recruits, along with their new ideas and vigor into the organization. Yet, unmanaged employee turnover can easily steal your company's knowledge base, profits and competitive edge in the market. With today's high employment levels, organizations that don't actively manage turnover's impact, find that the balance of power has shifted from the employer to the employee. Excessive turnover is often a symptom of fundamental problems within the business.

Employee retention is very important to organizations. If employees cannot be retained, the organization or the company will have to invest money for training new employees repeatedly. The cost of restoring an employee is high not only financially, but also in terms of lost productivity, the time taken by the employer to go through the resumes and the cost invited to conduct interviews.
Selection can be done through interviews, which is the most widely used technique, selection tests that involve written assignments or assessment entries, which are sometimes used for selecting managers. The selection process needs to be handled with care to avoid costs of failure to select the right candidate or legal problems arising from bad practice.
It is the responsibility of the recruitment department to make the appropriate arrangement for short listing. This should involve as many of the interviewers as possible and if this is not practical, there must be a minimum of two people. If you interview three candidates and select one for the job, one of the other two may feel they were better qualified for the position and take action against the company. If you have the records from the selection process, you will be able to justify your decision.

The winning companies will be those that are the most meticulous and successful at hiring the best managers. While it is not hard to find managers, any organization looking to expand in India and hire the best Indian managers should expect to have to pay for them.
Organizations are experiencing major environmental upheavals such as increased globalization deregulated industrial relation system, competition and technological advances. These economic, social and political contexts have in turn triggered a complex multiplicity of overlapping, concurrent initiatives that are radically altering existing structures, cultures and job requirements. In turn, HR and line managers must successfully source and attract potential employees in a highly competitive environment as well as abiding by legislation relating to equal employment, workplace relations and privacy legislation. Additionally, the integrating of recruitment tools such as job analysis and design as well as an understanding of the organization’s culture are necessary to establish selection criteria in selecting potential employees. (Schuler 1993).
This will ensure validity and consistency for selection methods including interviews and psychological testing. Finally, HR management must finalize the selection process with legitimate medical examinations and reference audits in accordance with any privacy laws. Publix’s human resource management is vital for the profitability and sustainability of the company in global and competitive market. It is their task to make sure that employee, managers and the company is running efficiently and effectively, that the most suitable candidates are selected for vacant and new positions.



References
Branham, Leigh, (2001) “Keeping the people who keep you in business” AMACOM Div American Mgmt Assn
Snell, A. (2002). “Low employment is good for strategic staffing. Recruiting Exchange”. Cambridge University Press.
Flippo, B. Edwin.(2004) “Principles of personnel management” McGraw-Hill, University of California
Stone, R. J. 2008. Managing Human Resources. 2nd ed. Milton Qld: John Wiley & Sons Australia Ltd.
J.Lerner, L. 2008. To cut down on turnover, find out why employees leave. Boston Globe
Schuler, RS & Huber, VL (1993) Personal and Human Resource Management West Publishing Company 5th Edition


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