Case Study of Human Resource Recruitment

Human Resource Recruitment

Human Resources Planning

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Recruitment

Organization’s strength is based on the quality of its employees an aspect that places high relevance to the human resource departments and the practices used (Ume, 2008). MSCG concerns in consultancy targets to, direct clients towards adopting the best practices in their recruitment process. This will guarantee recruitment of ideal candidates, professionalism in HR practices, employee and talent retention and productivity in optimal deployment of the workforce (Loosemore, 2003).

Staffing Methods

One of the main activities of human resource management is staffing. Staffing is important because it provides a supply of individuals needed to fill the jobs within an organization necessary to achieve business objectives. Once HR professionals have done job analysis a job description can be prepared. This job description is used when recruiting individuals. Online, ground recruiting, talent search from fresh graduates, employee pouching, use of profession agents and temporary placements count among the methods used in staffing (Richter & Henning, 2010).

Online and Ground Recruiting

Internet recruiting is one of the methods by which HR professionals have available. This method of recruiting has several advantages over traditional methods but also has several disadvantages. Companies first began using the Internet as a recruiting tool by posting available jobs on a bulletin board. Using this method, prospective applicants could search for positions in which they were interested and contact employers directly. Usually this contact was made via telephone, fax, or mail (Loosemore, 2003). As the use of email became more common some companies accepted applications through email. Due to the detonative use of the Internet some companies developed corporate websites by which prospects could apply online by completing a web form. “There are more than 160 million Internet users in the U.S. And 1.2 billion world (Fey, Morgulis-Yakushev, Hyeon Jeong, & Bjorkman, 2009).

Online recruitment methods have advanced to incorporate social media recruiting to help employer attract more candidates to their open positions. The future of online recruiting is not just in sites like LinkedIn and Facebook, but in more specialized social networking sites and websites for a specific industry or profession. A recent survey by the Institute for Corporate Productivity shows that about sixty-five percent of business professionals are connecting with each other and with employers on the social networking sites. There are millions of people on social media sites and more companies are using social media to target candidates (Yakubovich & Lup, 2006).

The on ground recruiting methods suffers a bigger blow against online recruiting owing to its cost implication in terms of money and time. The convenience observed in online recruitment far outweighs the aspects related to ground recruitment. Majority of American employers are switching to online recruitment since it has a bigger outreach. The use of online recruitment is also ideal for a software development company since it allows for more information to be shared relating to the job and candidate (Harrison, 1986).

Among other ground recruitment measures is the use of Scouting. Scouting means sending the representation of the organizations to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs. The representatives provide information about the company and exchange information and ideas and clarify the doubts of the candidates. This method of recruitment opens avenues to collect more information from the likely candidate and also convince them to create interest on job offering. The method is less cost effective given the need to brand a particular job offering using sales agents. It is ideal for a software development company since it increases the potential of targeting an ideal candidate judging from their work (Belcourt, 2006).

Fresh graduate and employee pouching

Buying talent” (rather than developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software sector is facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm (Yakubovich & Lup, 2006).

Campus recruiting is becoming more competitive. Winning companies will have a strong product offering and be able to adapt their recruitment practices to the needs of new college graduates of Generation Y (Loosemore, 2003). Along with on-campus recruiting tools, such as career fairs and interviews, employers can also work experimental education programs into their college recruitment efforts. These include internships and co-op programs. Employers have long since rated these as some of the most effective college recruitment methods.

Campus recruitment can be costly. Costs are largely dependent upon how many students a company needs to hire. Companies should evaluate whether the cost-per-hire is economical. If a company is spending up to two-thirds of its recruitment budget on students they do not hire, the recruitment program should be re-evaluated.

According to a recent NACE survey, the average overall budget for campus relations and recruiting was $386,634. The same survey showed that the average cost-per-hire was $5,417. Cost-per-hire figures ranged from $87 to $43,000. Costs can vary immensely from one company to another, because there is no universal formula being used by all employers.

Cost effective recruitment and selection strategies

The human resource role plays a very important role in an organization. Human resources are by far the most important asset that an organization can have if it chooses the appropriate persons. In the course of a company’s existence, its employees keep changing. Based on the employee turnover rate, the human resource manager will engage in staffing functions from time to time. The effectiveness and efficiency of the hiring process has an impact on the level of employee turnover. When the hiring policies are inadequate, the company incurs huge cost in terms of wasted time and money as new trainees are recruited, selected and trained for the job. As such, an inadequate recruitment and hiring policy leads to wasted resources (Belcourt, 2006). To reduce such waste, it is important for a company to develop a hiring policy that is cost effective. As Rioux and Bernthal notes, the effectiveness of a hiring strategy determines the ability of a company to recruit and retain qualified employees (Belcourt, 2006).

Each and every company desires to achieve better results always. This can only be achieved by having the required manpower to accomplish upcoming and scheduled organizational mission. Employee resourcing ensures that a company has appropriate skilled people. The aim of resourcing strategy is to ensure that the organization identifies its employees need both now and in the future, and tries to connect them through internal and external recruitment s as well as employee development (loosemore, Dainty and Lingard 2003).

Employee resourcing is categorized under human resource planning capacity. With effective management, employee resourcing can help the company to achieve organizational freedom by ensuring access to full range of skills that can be utilized for longer term strategic planning and rapid response to upcoming problems and arising opportunities. Employee resourcing can improve can help to achieve job satisfaction, employee development and career management system (Yakubovich & Lup, 2006). Employee resourcing is concerned with many activities an element from recruitment and selection. It is concerned with many areas that unsure an institution meets its needs for specific necessary skills and behaviours.

The success of an organization is highly dependent on the quality of the workforce. To obtain the most qualified employees, organizations have recently adopted a recruitment and selection strategy that is useful, cost effective and easy to align with the overall organizational strategy. This strategy is employee outsourcing (Fey et al., 2009). This entails contracting the services of an appropriate recruitment and selection company to provide these services to the company as it concentrates on other areas of the company’s operations, for a small company like ours, cutting cost is important if the firm is to remain in the highly volatile software developing business. Thus the outsourcing strategy is the most cost effective strategy for optimal hiring (Fey et al., 2009).

Other than leaving the company’s human resource function with enough time to handle other HR functions, the firm offering these outsourcing services is an experienced organization that has devoted it is time to this task entirely. Thus, the chances of making a misjudgment in finding an employee for the given position are very small. Moreover, the competition that is prevalent in this new yet thriving business has ensured that the cost of acquiring these services is very reasonable and affordable. However, this strategy cannot be effective if the firm does not give maximum support to the service provider. This strategy calls for the active participation of the HR department in a number of areas (Richter & Henning, 2010).

The role of such a strategy is to enhance an organization’s ability to hire and retain qualified employees. More so, the recruitment process needs to be attract only competent candidates, not over qualified or under qualified candidates. Reducing cost is crucial in such a strategy and the human resource manager has the role of designing and ensuring implementation of such a strategy. For the process to be cost effective, it has to highlight the importance of a clear job analysis and specification. The current job market if filled with job seekers and an unclear job specification can lead to numerous applications. To avoid this, the firm, through the human resource department will engage in a rigorous exercise aimed at identifying the requirements of a job in detail. For instance, in the current vacant position, there will be specifications on age since the firm requires young software engineers.

A detailed job analysis will help job seekers to easily identify whether they fit the advertised job. Moreover, it will help the interviewers to easily tell the extent to which a candidate is fit for the selection and even for hiring. Therefore, the first step in this strategy is to give a detailed description of each job or vacant position in the firm. This will identify the job design and evaluation criteria. By so doing, the firm will be able to identify probable future jobs and candidates thus avoiding wastage of time in establishing such requirements. In addition, a detailed job description will help in avoiding time wastage since likely candidates are identified beforehand.

Since the recruitment process can identify candidates from within or from outside the organization, the strategy will entail employee participation in the recruitment process. As noted by (Kolodinsky, Madden, Zisk, & Henkel, 2010) employee involvement has a lot of benefits. First, employees have firsthand experience of the job and know the type of skill required in handling the task. This way, they are able to describe the job in more job related terms that will easily grab the attention of qualified candidates while leaving out the under qualified lot. In the actual selection process, employee involvement helps to identify overqualified candidates who may become dissatisfied with the job soon after employment and leave either willingly or unwillingly resulting in increased turnover.

Thirdly, employees can identify potential qualified candidates reducing the tasks involved in recruitment. This will be used for some technical posts where employees will be allowed to recommend candidates for certain posts based on their networking experience. Some of the tasks that the firm’s HR will engage in to promote quick recruitment will include determining in advance the remunerations that the firm will offer for each job and recording and storing the particulars of various job positions and policies on employment equity and criteria. The issue of remuneration is especially important since most qualified candidates refuse job offers due to unsatisfactory compensation (Belcourt, 2006).

In assisting the outsourcing service provider to come up with a manageable list of qualified candidates, the HR department will continuously keep in touch with the firm to give assistance on areas such as the organizational culture and values of the firm (Evans et al., 2007). This is because the right candidate is one who is highly likely to be comfortable and to fit in with the culture of the firm. Such assistance will involve the participation of the HR officials in some of the interviewing sessions to ensure that the firm conducts it in a manner that is likely to produce the required outcome.

Training and skills development

Untrained or poorly trained users will cost significantly more to support than well-trained workers. Untrained traveling workers who spend a significant portion of their time away from the office, and who often have networking questions from multiple remote locations, are generally more expensive to support, regardless of the types of devices they’re using.”1 Cost categories may include: Increased down time, Co-worker distraction and Rework

Training also affects employee retention. According to the American Society for Training & Development, 41% of employees at companies with inadequate training programs plan to leave within a year versus 12% of employees at companies who provide excellent training and professional development programs.

A successful corporate skills development program includes components for essential learning, future learning and corporate mandates. Essential learning Employees should be provided with training opportunities to develop the minimum skills required to perform their tasks. Training may include new hardware or software training or update training for new releases. Any product training should also include corporate usage policy training, including business rules or security modules, compliance and product maintenance (including backup and archiving policies). Future learning Often overlooked, future learning is an essential component of a successful training program. Organizations should provide clear paths to continuing education to help end users quickly get answers to their problems. Online training, embedded learning and reference cards can help reduce help desk volumes and operational costs.

Corporate mandates without executive mandate, many training programs fail or begin to wane shortly after implementation. To ensure success of any skills development program, organizations should incorporate training as an employee requirement. Depending on the complexity or criticality of a new application or process, some organizations require training as a condition of employment. Others use training as an incentive to ensure compliance. “Best practices to ensure class attendance include: • Not letting anyone use the new application until he or she has been trained • Charging higher per-seat support charges for untrained users • Having HR play a role in maintaining employee training records and building training credits into career planning • Giving managers rebates from IT for end users who successfully complete follow-up training (if in-house chargeback mechanisms permit this)”

Cost analysis of a training program

To maximize returns on investments, organizations should develop a training program which matches corporate needs and types of students with available training modalities. In addition to traditional classroom training, alternative modalities can provide effective skills development for an organization, particularly if the student type is effectively matched to the training method. Blended learning, combining traditional instructor-led training with self-paced learning, may provide a cost-effective way to develop skills that match or exceed instructor-only training (Loosemore, 2003).

According to IDC, classroom training will continue to dominate training delivery methods until 2012 Public classroom training is ideal for complex applications, such as systems administrator and developer training. Classroom training provides a high level of parallel communication and feedback with the instructor. Hands-on labs can provide real-world scenario exercises which mirror on-the-job tasks. Public classroom training is also suited for new users who have not developed a basic understanding of the product or the software metaphors used in the application. Classroom training typically teaches to the student with the lowest skill set, and training is typically generic and “out-of the box.” Training for company-specific policies or modifications must supplement the basic training provided in a class. Classroom training is less convenient than some other modalities as it is dependent upon location availability and class scheduling. Classroom training is typically the most expensive method for training. In addition to tuition, travel and living costs add significantly to the base expense.

In house training

Employee training is essential for companies who wish to compete in a fast-changing business world. When an organization has a number of employees who need to learn new skills, in-house training is oftentimes the most economical solution. In-house training involves bringing a trainer to any location of choice to deliver a customized training program for a group of employees. The group may consist of employees who work together in teams, or who work in various company locations across the country, or across the globe (Harrison, 1986).

In-house training may be held at the corporate headquarters or at an off-site location. It may also be held virtually depending on the needs (Belcourt, 2006).

Benefits of In-House Training include full-customized for any team, department, or organization, flexible training may take place as a single session or multiple sessions. It should be noted that in-house training programs are typically delivered in one — and two-day formats, depending on the number of employees, their work schedule, and the training topic. Therefore considerations on the company needs are incorporated especially such as the new Software Company (Belcourt, 2006).

Cost of transport to the corporation and its employees is at minimal. It will also allow the employees to have in bread understanding if the company’s culture. With the likely misdirection from facilitators will be avoided and the directors can easily incorporate their company ideas in the training sessions. In-house training is confidential, thus allowing teams to discuss and work on real issues as trainers will usually sign confidentiality agreements. It will also encourage team building and better understanding of one another (Yakubovich & Lup, 2006)

Recommendations

To fully capture the value training can provide, organizations should develop a training plan that matches user preferences to training modalities and training needs. The training plan should include an instrument to measure the return on investment in categories such as productivity gains, reduced equipment usage, reduced product failure, less-frequent help desk calls, improved customer service, compliance, increased employee morale/retention and revenue gains. Help desk teams must be well trained to ensure advocacy, and they should be solicited to generate “top ten” help desk issues for future end user training. Executive mandate may be required to ensure a successful training deployment.

References

Belcourt, M. (2006). Outsourcing the benefits and the risks. Human resource management Review, 16(2), 269-279.

Fey, C.F., Morgulis-Yakushev, S., Hyeon Jeong, P., & Bjorkman, I. (2009). Opening the Black Box of the Relationship between HRM Practices and Firm Performance: A Comparison of MNE Subsidiaries in the U.S.A., Finland, and Russia. Journal of International Business Studies, 40(4), 690-712.

Harrison, E.E. (1986). The Managerial Decision-Making Process Boston, U.S.A.: Houghton Mifflin.

Kolodinsky, R.W., Madden, T.M., Zisk, D.S., & Henkel, E.T. (2010). Attitudes about Corporate Social Responsibility: Business Student Predictors. Journal of Business Ethics, 91(2), 167-181.

Loosemore, M.D., A. & Lingard, H. (2003). Human resource management in construction industry: strategic and operational approaches. New York: Taylor & Francis.

Richter, U., & Henning, U. (2010). Liberal Thought in Reasoning on CSR. Journal of Business Ethics, 97(4), 625-649.

Ume, A. (2008). Outsourcing of recruitment and selection is beneficial for an organization Individual Analysis of Ten Banks Including Local and Multinational. . Interdisciplinary Journal of Contemporary Research In Business,, 2(5), 568-601.

Yakubovich, V., & Lup, D. (2006). Stages of the Recruitment Process and the Referrer’s Performance Effect. Organization Science, 17(6), 710-723.

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