HRM recruitment and Selection
Recruitment and Selection overview
”The number of employees who describe themselves as very likely to leave their current job has increased more than 502 percent in the past year”.( Schuler 1993)With this quote, one can observe that the generation Y does not really stick to one job or one career their whole life. They are easily bored or always want to try something new. By having a closer look at the situation, organizations nowadays are facing a lot of troubles with this new trend because hiring and recruiting so many people to replace others who have been in the company for no more than three month is very expensive. HR professionals estimate turnover costs to be about 30 percent of the annual salary of the person being replaced.
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.
Developing a Staffing Strategy for Dell 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.
Source and Recruit talent
Dreher and Dougherty (2001) state that hiring the right people means more than just securing employees who possess the knowledge, skills and abilities required to perform a particular job; these people must be able to obtain new knowledge and skills as jobs and surroundings change. Therefore, it is very important for companies who wish to stay on top of the competition to develop and maintain high quality recruitment systems. The recruiting system is especially important when the hiring is being done in a foreign country.
According to Frauenheim (2006) Dell is planning thousands of new hires in India. According to Park (2004) Dell has already added 700 jobs in 2003 with only 1000 of them coming from the United States. Specifically, where did these employees come from and where will Dell find the latest round of employees? Well, Frauenheim states that for the most part Dell can tap into the streams of students graduating each year from the country's universities to fill slots. But when it comes time to hire the hundreds of midlevel and senior manager positions these expansion plans will require expert advice.
Business and Staffing Strategies
One strategy to dealing with the increase in Indian salaries is to start dragging in managers from other business. Hiring Indians who have worked in America for a while is considered very important because they would take with to learn US business culture. Moreover a position of 155 countries by ease of doing business in 2006, the World Bank and its affiliate, the International Finance Corporation, list India at 116, two places below Iraq, 56 below Pakistan and 25 below China ("Still in the Way," 2006). These statistics reflect on India's diversity, and the differences between the regions within India.
In March 2006, Dell said it has created an effort to search globally for managers to fill the 20, 000 person increase in its Indian workforce expected in the next three years. That is nearly a doubling of its current workforce. According to Helmholz Dell's director of executive talent acquisition "It is too early to tell how difficult it is to find management talent in India" (2006) But he says a critical issue related to managers below the senior level will be how firms hold on to them. "At the lower and mid level, you've got higher attrition rates," Helmholz says. "The company that has a better retention strategy will win." (Dreher & Dougherty 2001)
Smart corporate strategists know that adaptable organizational structures drive winning strategies in turbulent markets. So they map and remap their business units quickly with shifting market opportunities.
According to Eisenhardt & Brown (1999) patching is the strategic process by which corporate executives routinely remap businesses to changing market opportunities. It can take the form of adding, splitting, transferring, exiting, or combining chunks of businesses. Patching is a reorganization strategy that allows managers to focus on the best chances and leave the less gifted opportunities behind. Using this technique allows managers to constantly adjust their businesses to match changing market opportunities. With the patching strategy, managers are likely to focus on high potential businesses while using not as much of corporate resources on low-potential operations. Thus patching is an effective strategy in businesses that are experiencing mergers, expansions and rapid growth in creating economic value for the corporation.
Dell Computer regularly uses patching to focus more closely on target markets. For example, in 1994, Dell split into two segments. Since that time, Dell has announced a new split almost quarterly. As a result Dell's commercial relationship accounts are now segmented into corporate and small business accounts while government accounts are split into three segments; federal, state, and local. Dell's nonprofit sales are further divided into segments such as education and medical. All this segmentation has resulted in managers that are tightly focused on increasingly specific market opportunities. (Park 2004)
Talent philosophy and staffing decisions
Smart corporate strategists know that adaptable organizational structures drive winning strategies in turbulent markets. So they map and remap their business units quickly with shifting market opportunities.
According to Eisenhardt & Brown (1999) patching is the strategic process by which corporate executives routinely remap businesses to changing market opportunities. Patching is a reorganization strategy that allows managers to focus on the best opportunities and leave the less promising opportunities behind. Using this method allows managers to adjust their businesses to match changing market opportunities. Managers are likely to focus on high potential businesses while using less corporate resources on low-potential operations with the patching strategy. Thus patching is an effective strategy in businesses that are experiencing mergers, expansions and rapid growth in creating economic worth for the corporation.
Legal Issues: EEOC Best practices
· The EEOC is the agency directly responsible for enforcing various laws that an employer must abide by to employ individuals. The EEOC identifies by which conditions an employer may hire individuals and ensure that such individuals are all given an equal opportunity for employment.
· A law is referred to as an "Act". Some of the acts that the EEOC is responsible for enforcing are:
· · Equal Pay Act of 1963 - this act requires that all employees are paid equally if all employees are doing same job duties and responsibilities;
· · Title VII of Civil Rights Act (CRA) - ensures that workers are not discriminated upon based on their race, color, gender, age, or origin;
· · Age Discrimination in Employment Act of 1967 - this act ensures that individuals who are of age 40 and above are not discriminated upon;
· · Pregnancy Discrimination Act of 1978 - identifies that a woman who is expecting cannot be discriminated against, the condition falls under the basis of sex discrimination;
· · Americans with Disabilities Act of 1990 - ensures that individuals with disabilities are not discriminated against;
· Civil Rights Act of 1991 - this is an extension of the original CRA of 1866 and 1871.
Staffing laws overview
Employment law may be the Human Resource Manager's biggest challenge. Equal Opportunities Legislations have been put in place to prevent discrimination against certain groups of people examples are the Sex Discrimination Act, Race Relations Act and the Equal Pay Act. Employers and Human Resource Managers must ensure not only through the recruitment and selection process but also throughout the employee's career that they are protected from these discriminations, which can be very time consuming if a discriminations issues arise. An example of discrimination is the Stephen Lawrence murder case where Sir William MacPherson who was investigating the murder found evidence of intuitional racism in the police force (Foot and Hook, 2002)
As an organization employing individuals in the US, must ensure that not every candidate who inquires to any position is discriminated upon. All hiring managers and any individual who will be having contact with any of the recruiting and hiring process must be trained on how to conduct themselves.( Phillips 2009). The human resources department must ensure that an application for employment does not inquire as to the candidate's personal information that may violate any of the acts as are enforced by the EEOC.
Strategic Job Analysis / Competency Model
A Job Analysis is a very important part of the recruitment process as it provides a framework to base your decisions on. For instance, if you decide that a third level qualification is required for a particular job then you can dismiss all application forms from candidates who are below this level. Begin specific in this way means you do not fall foul of equal opportunities policies.
Now that you have decided that, you require another employee it is important to get the right person for the job. Writing a job description will help the company define exactly what you want your new employee to do, and it will help the applicants understand what they are applying for. A good job description will set out the boundaries within which a person is to work along with the tasks and responsibilities to be undertaken, so that it gives both the employer and employee an understanding of what is excerpted from both of them. It should also include the main purpose of the job and the results the person should achieve.
Sourcing and Recruiting staff
The recruitment and selection processes are commonly seen as one single action.. Recruitment is the general process whereby organizations utilize staff to fill accessible or new positions whereas the selection process contains a series of actions to best identify the most suitable candidate for the specific vacant post.
Measurement and methods
Once the company has decided on the position it wants to fill and the type of candidate, there is a range of options for finding suitable applicants. Different methods will be appropriate for different jobs. There is a combination of methods, which can give you the best choice of candidate.
This 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.
Via the Internet
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.
The Job Centre can be a low cost method of advertising a job vacancy, as their services are free of charge. It can also produce groups of candidates looking for work within 7 - 10 days and give advice in government assistance etc. However the down side is that the candidates tend not to be highly qualified and can waste a lot of time by not turning up for interviews.
Designing a Job Advertisement
If the company relies on job advertisements, they must be well written, be well presented and catch the eye and the attention of the type of person you wish to attract. Job advertisements do not have to be expensive to make or place in the media. If it highlights the key features of the job this can be enough to be effective.
There are some main topics, which companies should include within the job advertisements such as a Job Title. For instance if you use the term 'executive' in the job title is gives the impression of a management role if the job does not happen to be in management this can be misleading to the candidates. A salary range should be given as applicants want to know what salary to expect if they are successful and whether it matches their needs. If the salary is not disclosed it could lead to going through the recruitment and selection process, offering the position to a candidate only to find they cannot accept as the salary does not suit.
This can be a waste of time and money. The criteria used on the job advertisement should reflect the job description and the personal specification and as much detailed information as possible should be given to enable candidates to understand the nature of the job and the responsibilities involved so that they can determine if they are suitable for the position. Job advertisements can be used to attract candidates but it can also be used as a screening device to deter unsuitable candidates. Finally the advertisement should be written well so as to avoid potential indirect discrimination which could affect, for instance, a disabled applicant
Choose and Hire Candidates
The employee specification should identify the qualities required by the successful candidate in order to fulfill the requirements of the job efficiently and to achieve the business objectives. These can include experience, qualifications, training, general knowledge, also skills and personal attributes. This specification can be used as one element in the short-listing process but it can also provide help with areas such as performance appraisal reviews, establishing training and development needs and also job evaluation.
Selection is the process of choosing the most appropriate candidate from those who apply to fill the post. The selection process should be based on the agreed job descriptions and person specifications that have been created. The selection process must be conducted as an evidence based process, candidates should be assessed against the agreed selection criteria, based on relevant knowledge, skills, competencies, experience, and qualifications to perform the role as outlined in the person specification. Selection can be done through interviews, which are the most widely used technique, selection tests that involve written assignments or assessment entres, 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.
Although researchers have found interviews poor at predicting the person’s ability to do the job to the correct standard, (Solomon 1999) interviews are still the most popular form of selection. When interviewing you should have the job description, the person specification and the application form. This should form the framework of the interview. The company should have a relaxed atmosphere to put the candidate at ease so it encourages them to talk, all questions asked should be clear, purposeful and relevant, for example if you were to ask a woman if they have children, this is seen as discrimination. The interviewers should allow adequate time for each interview and all interviewers should be properly guided in the recruitment and selection process. It is imperative that a record of their information kept in case at a later stage they are ask to justify their decision in cases such as Sex Discrimination or disability discrimination. Through this, the interviewer will be able to present the information to show the correct procedure and validate his or her decision.
Orient and socialize new hires
This option can be cost effective as it makes the most of existing talent who have had firsthand experience within the companies systems and procedures. In addition, it could raise staff morale. Although there can also be disadvantages if the company has a limited number of potential candidates as it does not allow you the opportunity to bring in new people with new skills. Moreover, if an internal employee is the choice the company will still have to recruit a replacement.( Phillips 2009)
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.
Retention and Succession
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.
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.
Involuntary employee separations
Involuntary absences are out of the employee's control such as a child's sudden illness or one's own illness. Additional measures have included adjacency measures (or absence building); absences surrounding scheduled days off. This has also been referred to as "blue Monday's"; when an individual has a pattern of taking Mondays off in addition to the weekend. This is more characteristic of voluntary absences.
Staffing Systems Evaluation and Technology
Technologies are changing very rapidly currently and a new skilled workforce is required. HR Mangers may find recruitment for suitably skilled people extremely difficult. The recruitment and retention of high skilled workers can have serious cost implications.
Most of the evaluation is done through recruitment software. Once the evaluation is complete, Dell can take away these strategies and use them to help with the proper growth within the company.
Main objective to having a staffing strategy is to help meet the company's business goals. By understanding Dell 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.
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. Dell’s Human Resource Management is vital to every company and industry. 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.
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