Strategic Human Resource Management.

HRM 3007 Strategic Human Resource Management Module Assignment

Name: Claire Duff

Student Number:

Course: BA Business Studies

Year: 4

Tutor: Kevin Lamb

I would expect a medium or large organisation to be continually updating their recruitment and selection strategy Due to the importance recruitment and selection pose to the future of the organisation and I would hope that the organisation would consider many of the following.

The first area an organisation would look at is its advertisement strategy. The fundamental question would be how to target the relevant mediums to reach potential employees and what is required to attract the right employee for the job and the company. This would then mean that the organisation would have the capacity to attract a broad range of potential candidates from all ethnic backgrounds and areas of the country. Additionally, in conjunction with advertising a cost effective scheme could be to implement an award to current employees to introduce potential employees to the organisation. This benefit would only be paid upon the completion of a successful probationary period. Once the candidates had been chosen the next section of strategy would be aimed at improving the interview section of recruitment. The organisational strategy for this section would look to conduct fair interviews to each candidate regardless of skills, experience, race, sex and qualifications. This way the best candidate for the job would be selected rather than a biased choice. Once the interviews have been completed, able and well trained managers would be called upon to select and assess the potential candidates for relevant posts within the organisation. This should be easily achieved through increased sophisticated methods of selection, enabling sound judgements to be made and the correct choice of candidate to be obtained. A further choice within many larger organisations is outsourcing recruitment. This is where an organisation uses agencies and recruitment consultants to find suitable employees. The two final parts of an organisations recruitment and selection strategy are the use of assessment days and educational institutions.

Advertising

Although this is the just first area of the overall recruitment strategy, advertising, by its very nature, is normally the most important and most expensive part of the whole process. It is considered the most important part because without a successful advertising campaign the organisation may never be able to attract quality candidates in sufficient numbers. This would prove to be disastrous to the company as they may be forced to settle for an inferior employee. The first and perhaps pivotal step for the organisation to take before deciding which sort of employee is needed is to examine its own pertinent needs and objectives thereby recognising which skills and qualifications are needed. This will cut down on superfluous correspondence and time wasting, interviewing a person who did not meet the job requirements. Because this part of the recruitment strategy is so expensive it is very important to get it right. It would be wasteful to use a blanket policy. Demographics has a part to play in the advertisement strategy. Since the industrial revolution certain areas around the country have encouraged certain skills and abilities to develop and it would be prudent to look at this diversity when deciding which skills and abilities to target in any given advertisement campaign. It is important that not only are the right areas targeted but that the correct message and requirement is being conveyed. Advertising in itself is a highly skilled and crafted vehicle and thought and originality is an integral part of this most important process. During the past decade the advent of IT has meant that more and more organisations are looking to complete their job advertising and applications through the internet. This is a cost cutting and time saving method.

Educational Institutions

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Educational Institutions

A small proportion of organisations are now forming industrial relationships with universities, to enable them to attract the top people in their field. Two examples of this can be seen at the University of Bristol. Sponsorship during the final year is offered by the company after the successful completion of a placement year, to under graduates. This is beneficial to both parties. Also when graduates who specialise in engineering apply for positions at Rolls Royce Plc they are looked upon favourably by that organisation and are normally entered into the Rolls Royce “fast track” scheme. This will allow that employee to move quickly up through the managerial structure of the organisation. The beneficial effect of this scheme is twofold. It helps the graduate to find suitable employment swiftly and without the need to relocate and it helps the employer to find top grade recruits with little drain on resources. It would definitely show business acumen if more organisations realised the potential of being allied to their local university or educational centre. This option seems to be underused by many companies and organisations. This is puzzling as there is so much to gain from such an alliance. However, there is a trend towards this option being adopted by larger organisations situated near major universities as shown by the quote below.

“Graduate recruitment is a major annual exercise for some companies, which go to great efforts to produce glossy brochures, visit campuses on the “milk run” and use elaborate sifting and selection procedures to vet candidates, including bio data and assessment centres.”

(A Handbook of Human Resource Management 8th Edition, Michael Armstrong, 2001, Kogan Page Limited, Pg 398.)

Outsourcing Recruitment.

This is a very common practice by large organisations as it is a proven way of obtaining employees quickly and cheaply. The organisation will normally contact an agency or recruitment consultant. Agencies are normally small regional companies that have a high number of qualified professionals and unqualified administration workers. The benefits to the company are manifold. The company will not have to advertise for the position, which can cost substantial amounts of money. Also the organisation does not have to pay to train the applicants, as the agency will match the company’s requirements to a possible candidate. They will screen all applicants and will have a record of qualifications, ability and experience of potential aspirants. This service will come as a packaged and although expensive, will ultimately save a company or organisation money. In Northampton both Barclay Card and Nationwide use this method of recruitment. Agency workers are employed on a temporary basis and if they meet the criteria for which they are employed then and only then are they offered permanent employment. This method of recruitment is cheaper, reliable and offers a “taste before you buy” option. If the employee is unsuitable or unsatisfactory then, because of the temporary status of the employee, the contract can be terminated instantly. This is becoming a very attractive alternative to the normal method of recruitment and more and more companies are opting for this service. Quite large organisations prefer this arrangement as they find that this type of selection offers more flexibility. They also find that it is preferable to have a long term temporary employee than to have a permanent employee for a short term. A temporary employee will help a company to deal with “peaks and troughs” but will not impinge on redundancy payments and pensions etc. If an employee is retained on a permanent basis then the agency will request an introduction fee of between 10% and 20% of the first year’s basic salary. A recruitment consultant acts in a similar way except that with a consultancy the potential employee is recruited straight onto the permanent staff. However, the benefits of a consultant over an agency are that they provide expertise and reduce the recruitment process workload. The workload is reduced due to the fact that the consultant will advertise and interview for the position within the company. As with an agency a recruitment consultant will charge a percentage of the first year's basic salary. This will normally be between 15% and 20%.

Non-Preferential Interviews and Assessment Days

The interview and assessment days are an important moment when the culmination of all the planning and arranging come together. It is a complex moment. This is the first time contact has been made and it is the coming together of two sides of the equation, the candidate and the employer. Much will depend on these vital moments. Opinions will be formed and acted upon from both sides. Interviewing techniques must be honed, as it is important to get this part of the recruitment and selection strategy right. Advertisement, selection and correspondence have all been working towards this goal and it is imperative that everything goes to plan. It is a time when decisions, which can have far reaching effects both for the applicant and the organisation, have to be made. Above all it must be fair minded, a level playing field. In the highly publicised equal opportunities world in which we live, it is most important that the interview is undertaken without prejudice. There can be no discrimination against sex, race or age. It is imperative that the interviewer must be impartial at all times. The best candidate for the job is paramount and everything else is of secondary importance.

Referrals

This type of recruitment and selection is growing in popularity in the non specialist field. This is a process that offers current employees financial incentives and benefits for recommending friends or family for vacancies within the organisation. This is a cost effective method for a company to implement. This process has proven to be beneficial to both employer and existing employees.

A worrying trend is the fact that many organisations experience a high labour turnover within the first six months of employment. Obviously the recruitment and selection process is failing a percentage of potential employees. This is a modern phenomenon. In the past employees left school and stayed with the same company for life. So what has changed? People’s expectations have changed. They are more informed and therefore more selective in their choice of employment. Job satisfaction and fulfilment within employment is desired. So how can recruitment and selection improve the situation? A dedicated interview panel that are trained to promote the company in an articulate manner is a must as there must be no ambiguities. Another influence is the financial benefits offered. These could include a good basic salary possibly with performance related bonuses and a pension scheme, which could be based on final salary. Also another attractive financial benefit is a healthcare package e.g. BUPA. This and pensions would be implemented after twelve months employment. The panel needs to establish what the potential employee’s future aspirations are and if they fit in within the future structure of the company. It is imperative that the prospective employee understands the requirements needed for the vacancy. This will ensure job satisfaction and thereby employee loyalty. The majority of employees will want to know the organisations strategies for job promotions i.e. does the company promote from within its ranks. It needs to be stressed at the interview that if the probationary period of employment is successful the organisation will be willing to invest in employees through training and development. A very important loyalty benefit is a share save scheme. This scheme allows an employee to purchase shares at a reduced price. There is an additional inducement. If an employee saves for the full term then extra shares may be purchased. This binds the employee to the company for a minimum period of five years. However, if an employee chooses to leave before he completes the five year term he forgoes the double option of shares and inducement. Finally the implementation of a substantial loyalty bonus after two years continuous employment should have a positive effect on the labour turnover rate. I do believe that if these aspects of recruitment and selection were introduced at an early point in the process the high percentage of employees leaving within the first six months would be greatly reduced. This is because these points show commitment from the employer to the employee and this will encourage the employee to return the commitment to the employer.

There are six main reasons why there could be a low percentage of ethic minority workers within the organisation compared to the population within the local area.

Job Advertisements need to be designed to reach members of the under represented groups. Advertisements need to be easily understood by ethnic minority groups. The language used should be concise and the use of pictorial images would be helpful. Local newspapers and periodicals within pertinent areas could be targeted and leaflets in various languages could be distributed to local community centres. Also taking advantage of career days and fairs in areas where these groups are concentrated could be beneficial.

The use of employment agencies and career offices in the areas where these groups are concentrated. There are now many recruitment agencies in large cities, owned and managed by ethnic minorities with the sole strategy of finding full time employment for the lesser represented groups. In order for ethnic minority numbers within employment to rise, organisations may need to start using these agencies more frequently.

Recruitment and training for school leavers designed to reach members of these groups. A large number of ethnic minority school leavers do not possess the basic skills to be successful within a large organisation. In conjunction with the careers office a company could create awareness by offering training sessions in basic information technology, English and communication skills, enhancing the ability for these school leavers to be successful within the workplace.

Encouragement of employees from these groups to apply for promotion or transfer opportunities. Recognising promotional skills and the contribution that an employee from an ethnic minority group can make to a particular organisation and encouraging that contribution is conducive to a productive and fulfilling environment. Being alert and spotting potential promotional material and valuing the diversity that an employee from this group can offer shows sound management skills. Operating an “open door” type of management will further encourage and channel outstanding employees. Thus allowing questions, problems and ethnic concerns to be discussed easily and quickly and problems resolved.

Training for promotion or skilled training for employees of these groups who lack particular expertise but show potential. The introduction of modern apprenticeships to people of an ethnic background will help future employees who show potential but lack expertise to achieve a certain standard. This would enable them to earn a basic wage whilst acquiring the skills required to succeed. This is the most appropriate way for people with little or no financial backing to obtain skills and to further their education.

Ensure all managers within the company organisation are trained in cultural awareness. The introduction of specialists in equal opportunities and racial equality from outside the organisation to highlight potential problem areas. This will allow managers to increase their awareness of social as well as cultural differences within a multi national ethnic minority group.

Other factors that could have an affect upon the labour turnover rate and the sufficiently low numbers of ethnic minority recruits is that it is not offering enough additional packages within the employment. Many companies can prevent these two problems occurring by offering some, or all, of the following benefits.

Good working environment. This is a major factor that employees look for from an organisation. A number of examples of this are air conditioning, modern furnishings for seating and working and good working space.

Safety. In all industry, requirements by law, say that employees must be safe within their working environment. This goes as far as offering employees protective clothing, glasses and shoes when necessary in order to perform the requirements of the job.

Equipment. Good quality equipment is a must in a modern office. Chairs that support the spine. Desks at the required height and computers that are modern and have the latest, or at least relevant, software. Failure to do this can result in RSI “Repetitive Strain Injury” and an employee who becomes frustrated and disenchanted with their job. Some employers offer an added incentive by allowing employees the use of their equipment, i.e. internet and telephone. These items to be used by the employee for their own personal use during non working hours.

Subsidies. Under this title there are a number of perquisites larger organisations can offer to employees, which will have a positive effect upon that employee's decision to stay with the company. These are the subsidising of food, drink, membership to sports clubs, supporting charities that employees are interested in and sports and hobby sponsorship.

Good communication. Communication is of primary importance. An employee needs to know in which direction an organisation is going financially. That employee also needs to know that his/her job is safe and where they stand within the future structure of the company. Communication allows worries to be aired and concerns to be addressed. A stable and solvent company must produce figures, targets, strategies and objectives on a regular basis.

Approachable management. All employees need a good relationship between their manager and themselves. This is an essential part of the working environment. These days an organisation needs to have a policy of “open door” management. This allows employees to approach any manger, at any time with any problem, question or complaint.