Douglas Scott

Unit 10

Investors in People

Northbrook Technology

Centre name: Priory College

Centre number: 71561

Candidate name: Douglas Scott

Candidate number: 1160

Contents page

Introduction                                                                        3

Methodology                                                                        5

People Investment Planning        7

Recruitment and Selection at Northbrook Technology        12

Training                                                                        17

Motivation        25

Legislation and Ethical Issues Governing Recruitment and Selection        39

Safeguards on Employees’ Welfare and Appraisal                                45

Conclusion        52        

Bibliography                                                                         61

Appendices

Introduction

As part of my A-Level Business Studies course, I have been asked to investigate how a business invests in people in terms of recruitment, selection, motivation and training.  I have chosen to study Northbrook Technology for my investigation, as they have a good reputation for managing their staff, having won numerous awards.

The aim of the coursework is,

“To produce a report on how Northbrook Technology, recruits, trains and generally invests in their employees”

Northbrook Technology, one of the largest software companies in Northern Ireland, was founded in January 1999 as a wholly owned subsidiary of the Allstate Corporation, the largest publicly owned Property and Casualty Insurance Company in the US.  Northbrook Technology specialises in delivering high-quality, low cost technology and business solutions to its parent company, The Allstate Corporation.  The Allstate Corporation is a Fortune 47 company.  This means it is one of the top 500 companies in North America and Canada.  Allstate insures 1 in 8 homes and cars in the US and to date has made revenues of $30 billion, yielding a $3 billion profit.

Northbrook Technology plays “a strategic role in developing, transforming and maintaining the various technology platforms used within Allstate”.   Northbrook started recruiting in January 1999 and established its first office in Belfast’s Corporation Street.  The company quickly outgrew that location and moved to its current building at Lanyon Place in February 2002.  For strategic reasons, including a large labour pool and growing demand for services, NTNI opened a second facility in Londonderry, followed by its Strabane location.  Currently the company employs more than 1500 people in these facilities.  Northbrook Technology is focused on delivering the highest quality customer service to Allstate and has a proven track record of delivering on-time, high quality information technology and business process outsourcing solutions at a globally competitive price.  The business located in NI for a number of reasons.  NI has a large number of highly skilled IT graduates but very few IT companies - this provided Northbrook with a very large pool of potential employees.

Last year in November 27th at the Belfast Business Awards NTNI received the People Development Award.  They have also won the Investors in People Champion for Health and Wellbeing.

Methodology

For this coursework I had “To produce a report on how Northbrook Technology, recruits, trains and generally invests in their employees” and also if the staff at Northbrook Technology are motivated.

For the coursework we are doing both desk and Field Research.  Field research is obtaining new data for a specific purpose. The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered by face-to-face interviews, by telephone or by post, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded.  

Field research has the advantage that the firm itself has control over the whole process. The disadvantages are that it takes longer, and costs more.  

 

Desk research

This is the use of existing data that has already been collected. It can be anything from a company's own sales statistics to Department for Business, Enterprise and Regulatory Reform.  Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations.  

Traditionally, these have been paper-based, but more and more information is now available on CD-ROM or on-line through the Internet. Desk research has the advantages of being cheaper and quicker than field research. The disadvantages are not knowing if the findings are accurate, or how relevant they will be to your product.

For the coursework we had to carry out a number of Methods of Research these included a motivation questionnaire sent to staff, an interview presentation with Jim Norris Human Resources Manager and also some desk research using the internet.

People Investment Planning

People investment planning is the process of analysing an organisations needs for employees and ascertaining how this can be met from both the internal and external labour markets.  It is an approach which highlights the importance of developing the workforce in the best possible way in order to meet the objectives set by Allstate, Northbrook parent company.

Northbrook plans their workforce by anticipating their staff needs and matching this to the labour supply.  It is important to get this right because if the organisation has too many staff (over manning) it will be inefficient and if it has too few (under manning) it will not be effective.  The flow chart below shows the stages in People Investment Planning:

People investment planning is important as it identifies Human Resources needs and also identifies possible shortfalls in Northbrook’s capabilities for example the staff may not have the proper skills for the job.

It is important for Northbrook to match demand with labour supply as there must be enough staff to meet objectives but not too many as Northbrook will be inefficient in their work.

Northbrook Technology must make decisions on Human Resources Planning in the following ways:

  • Yearly reviews to establish objectives
  • Number of staff and skills needs are established to meet Allstates’ demands
  • Training needs determined and training providers sourced
  • Consider staff available internally and see if needs can be met internally, if not then Northbrook will source staff externally.

“Future needs of organisation in term of people, skill and abilities”

  • HR demands set by Allstate
  • Training needs assessed and providers sourced
  • Northbrook must be able to replace staff in a month – the period of notice required
  • Sickness and maternity also need covered

Internal Supply of Labour

Labour already available in the organisation

Northbrook assesses staff they already have.  The Resources Manager will check if staff in the Technical Operation Department are in “Billing” (being directly to the customer for services earning own revenue) or “On the Bench” (working on team but not earning revenue).  Staff who are “On the Bench” can rotate projects, requiring extra training.  These needs would be examined in the performance management scheme which takes place every six months.

Analysis of age, skill and training of existing

Northbrook does not consider age when carrying out People Investment Planning as there is a law that states this is illegal to do so.  The Only reason age may be considered is when analysing upcoming retirements.  Every technical employee must complete a skills database and update skills regularly through training and work experience.  All training is offered on business needs if the training would not benefit Northbrook then it is not offered to employees.  Training involves computer-based learning as well as having libraries of technical manuals.  There are 3 training rooms to do all this training in.  Training requirements are identified through the performance management system as part of employee development.  Employees and line managers will discus and address training need and complete a Skills Synopsis Sheet (in appendices).  This shows the skills which the member of staff have to develop.  This is done in a number of times per year.

Succession Planning      

Succession Planning is the process of grooming staff for promotion.  This takes place to a lesser degree at Northbrook as they have a good career advancement programme for technical staff.  All management opportunities are advertised both internally and externally as Northbrook do not groom people for these roles, all applicants are considered equally.  By advertising externally they can find people who will bring new ideas and work methods to make Northbrook more efficient.  Staff at Northbrook must give at least one month’s notice when leaving.  This is to give Northbrook time to recruit a replacement and to be trained to the high standards Northbrook requires.  All new staff have a probationary period of 6 months; if they are well trained in this time there is always the possibly they could leave and join competitors.

Identifying future skills shortages in the organisation  

Northbrook runs a strategic skills programme where employees are trained for new technologies which are going to be introduced in the future.  Employees are selected for this based on their ability to learn new programming languages.  The purpose of this scheme is to address both current and future skills and shortages.

Redevelopment, redundancy and retirement and existing staff

The Performance Management Scheme to allow staff to acquire new skills as this is to make staff more flexible.  Having flexible staff allows them to be redeployed to other business areas when necessary.  This is useful when covering absentees.  Skills synopsis sheets provide helps determine training needs, it acts as a checklist.  Also a motivation tool, if staff can move around “job rotation” they will not be bored doing the same job everyday.  This would provide a more stimulating and rewarding work environment.  There have been no redundancies as Northbrook has been growing and is set to continue this trend.  The average age of workers is 30 so there is low retirement rates as very few are near retirement ages.  Two staff retired last year 2007 both in their 60’s.  Northbrook is aware that retirement will be an issue which needs to be considered in greater details in a few year’s time.

External Supply of Labour

Northbrook feel they don’t have enough staff in the business at this current time so they will need to recruit externally.  They have to consider the employment levels in the province.  It states that Londonderry, Strabane and Belfast have the highest unemployment in Northern Ireland with a percentage of 4.1%, 4.2% and 3.5% respectively.  This gives a wide range of potential applicants.  However, a very competitive market for software developers has lead to very few suitable applicants at graduate and experience levels.  This has led to Northbrook recruiting overseas as well as locally to address this as there aren’t enough the suitable graduates.  Unemployment in Northern Ireland has decreased since 2004.  The figure in 2005 was 5.3% and today is it down to 4.3%.  This has been a major drop in 2-3 years but this is because businesses such as Northbrook have been trying to cut down unemployment and the figure show this.  This has lead to an increase in the number of recruits 1/3 from Poland and India.  Northbrook participates in industry salary surveys which cover employment issues including skills shortages and unemployment.  In order to recruit the best staff Northbrook offer flexible working and other benefits such as “duvet days” where the worker can phone in one day per year and say they are not coming in they are  “lying in bed”.  Strategy development and processes are reviewed annually to ensure Allstate’s needs are met.  Leading on from this reports are created detailing performance and productivity to ensure staff are well trained and there is a low absence rate.  Information is used to assess areas for improvement.

There are benefits of People Investment Planning.  These consist of higher productivity, meeting customer needs, growth of the business, low absenteeism and low staff turnover.

Recruitment and Selection at Northbrook Technology

To begin the recruitment process they must devise a timeline to show Northbrook when the position has to be filled by.  Following on from this a job analysis has to be carried out to see the roles and responsibilities of the vacancy.  This can be done by observation or interviewing existing staff.  Once this is complete, two documents will be drawn up a job description and job specification.

The job description shows the duties and responsibilities of that person for the job.  It will also include rate of pay, hour of work and the job title.  A job specification is drawn up to detail the type of person Northbrook is looking for, e.g. skills and qualifications.  These can be broken down further by essential and desirable meaning what is essential to get the job e.g. qualification wise as what Northbrook definitely need and desirable is if you have got anything over and above the qualifications.  Once these documents have been created Northbrook will advertise the job.  They must decide whether to do this internally or externally all depending on the position.  Internal advertisements are sent by email to employees and put on the intranet.  External advertisements are put on Northbrook’s website, recruitment websites and local press.  Northbrook mostly use the internet to advertise vacancies as they are looking for IT graduates so this mean they possibly are going to be on the internet all the time looking.

When recruiting internally, Northbrook will be rotating staff or offering promotions.  There are many advantages and disadvantages of internally recruiting.  The advantages include that the employee already knows Northbrook Technology and the other way round where Northbrook knows the employee and what they are like.  It also is less expensive as outside adverts aren’t needed.  Staff also may be motivated as they can see the opportunity for promotion.  The disadvantages include not having new ideas or new blood coming in to Northbrook.  Staff may be hostile or resentful to the person getting the promotion.  Once a promotion is done, the person’s old position still has to be filled, which may eventually lead to external recruitment.

When recruiting externally, Northbrook will advertise on their website, recruitment websites and local press such as Belfast Telegraph and the Irish Times.  Advertising is mostly electronic because of the target audience, normally ICT professionals.  There are both advantages and disadvantages of external recruitment.  The advantages include having a bigger range of people from which to choose from and having new ideas brought into the business.  The disadvantages include a new person having difficulty fitting in with existing staff, existing staff may resent a new person and it is also expensive because of advertising costs and you really don’t know the new person so there is always a risk for Northbrook in terms of not knowing the person’s skills and abilities.

Once the job is advertised Northbrook will make a list of the shortlisting criteria.  This is done using a skills assessment sheet which is then communicated to relevant staff, e.g. Human Resources and the Line Manager of the person to be appointed.  Northbrook will also finalise the application forms ready for distribution.

Northbrook uses a number of methods of selection, the first of which is an application form.  An application form is a document which asks applicants a series of questions about their qualifications, skills and previous experience.  There are both advantages and disadvantages of using an application form as a method of selection.  The advantages are an application form asks everyone the same questions making comparisons between candidates easier.  Northbrook also only receive information they need as they have made a set layout meaning candidates can not include extra, possibly irrelevant, information which Northbrook do not read.  It is for this reason that Jim Norris said during his visit that this was his preferred method and he will not accept CVs or letters unless an application form was attached.

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The disadvantages of an application form include the applicant not being able to include further information which they feel is relevant and would enhance their application.  This could mean that Northbrook may miss out on appointing the best person because of the fixed layout of a form.  A standard application form for Northbrook Technology can be found in the appendices section.

Northbrook does accept Curriculum Vitae, but as stated earlier, these must be accompanied along with a standard application form.  CVs are more likely to be accepted by Northbrook for Managerial positions rather than technical positions.  Comparisons are ...

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