Making Decision And Making The Job Offer

Published Date: 02 Nov 2017

2.1 INTRODUCTION

As a result of globalisation and enhanced customer expectations in today’s business environment, competitions among organizations have become more intensive (Newell 2005). In order to respond, organizations need to attract and retain high-quality individuals who can respond effectively to this changing environment (Newell 2005)

Recruitment and Retention has always been a critical issue for HR Department to work with as there are many factors which will affecting the activities; therefore, demand and need between the job seekers, employees and the employer has to be study, review and fulfil to one and another from time to time for better retention plan and easier recruitment process.

The factors stated below which affecting the recruitment and retention activities in WXY Company will be discuss in the later part in this chapter:

A non-structural and improper functions Human Resource Department which failed to carry out the functions within it such as:

Recruitment and Selection

Compensation and Benefit

Training and Learning and Career Development

Company related issues:

Industries constraint

Public awareness or the company reputation

Organization and its Management culture

When an organization failed to possess the successful elements to recruit and retain then the organization is most likely losing their competitiveness to attract and retain talents within the talent’s market, and that is what WXY Company is facing.

2.2 LITERATURE REVIEW

2.2.1 RECRUITMENT AND SELECTION

Recruitment is the process of generating a pool of capable people to apply for employment to an organization, and Selection is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons most likely to succeed in the job(s), given management goals and legal requirements." (Bratton and Gold 2003)

Selection is the process of choosing from a group of applicants the individual best suited for a particular position (Mondy and Noe 1993)

The process to attract and identifying the RIGHT candidate is very important, because if "wrong personnel are hired for certain jobs, not only they will not contribute to organizational success, but may even damage the organization in terms of lower productivity, potential loss of clients, training costs, advertising costs, recruitment fees and redundancy packages (Smith and Graves 2002). In addition, according to a journal by Hacker (1997), a poor recruitment decision can cost an employer an amount equal to 30 percent of the employee’s first-year earnings. So, how to start a successful Recruitment and Selection?

The below step in Recruitment and Selection may elaborate the doubt:

Table 1: RECRUITMENT AND SELECTION STEP

STEP

RECRUITMENT

STEP

SELECTION

1

Analysing the Job

5

Shortlisting the candidate

2

Determine the Job Description and Job Specification

6

Interviewing

3

Determine the recruitment method

7

Making decision and making the job offer

4

Advertise the job

8

Job placement

STEP IN RECRUITMENT & SELECTION

STEP 1: Analysing the Job

Before we start recruitment, a very first step is Job Analysis. A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. The job analysis normally will include the following exercise:

reviewing the job responsibilities and tasks of current employees

analysing the work duties and responsibilities that need to be accomplished by the employee who filling the vacancy

combine the current work scope and the new task to fit the new employee

There are two approaches in which job analyses are conducted: task-oriented or worker-oriented.

Task-oriented

Task-oriented procedures focus on the actual activities involved in performing the work in terms of work duties, responsibilities, and functions

Worker-oriented

Worker-oriented procedures aim to examine the human attributes needed to perform the job. These human attributes have been commonly classifies into four categories: Knowledge, skills and abilities and personality factors.

STEP 2: Determine the Job Description and Job Specification

Job descriptions and job specifications developed based on the information obtained through job analysis, including the competencies, skills and with relevant qualification required to accomplish needed tasks, and the needs of the organization to produce work.

Job Descriptions describe duties, tasks and responsibilities for a specific job and normally will include the following items:

Job title – title of the job and other identifying information such as their job grading

Location – name of organization, department

Reporting structure

Responsibilities/duties – a list of the main elements of the job and a summary that describe key responsibility of the job

Job specification describes the qualifications and skills needed from the candidates to perform a specific job and normally include:

Education

Experience

Personal circumstances

Personality

Present post

Once the job description and job specification is developed, and then is time to get ready with the hiring process as we already identified the candidate characteristic that we should hire.

According to the definition of Strategic human resource management, job description and recruiting staff is only the start point (Bratton and Gold 2003). Proper training, development, appraisal and staff motivation are all important aspects in an ideal human resource strategy.

STEP 3: Determine the Recruitment Method

There are 3 major recruitment methods which includes of internal, external and internet recruiting.

Internal recruiting methods including promotions or transfer within company, position opens for employee self-nomination or current employee referral.

External recruiting methods including recruit direct from University or Colleges, via local labor office, through recruitment agencies, staff pinching, media sources such as newspaper, magazines, radio or television and job fair or special event’s seminar.

Internet recruiting refers to online job portal such as Jobstreet.com, JobsDB.com or Monster that offer online job posting for employer to search for the right candidate. And also the employer website which normally having a "Career" or "Job Opportunity" tab for job seeker to apply for the job. This recruiting method has become the most convenient way for employer to market the job and as for the job seeker, is just a click away to apply a job.

STEP 4: Advertise the Job

After the method has been determined, HR department will work together with hiring manager on the advertisement draft. The draft shall basically include the main responsibilities and the requirements of the candidate, and job advertisement shall avoid bombastic word and use simple terms and easy readable terms for job seeker. An advertisement draft is advisable to include a brief Company introduction so that the job seekers are aware what the industry is that the Company belong to.

STEP 5: Shortlisting the candidate

Shortlisting simply means screening of candidate in the selection process, and the below table give a clearer definition how is the selection can be done:

Table 2: Job Performance vs Selection Criteria Predictors

(Human Resource Management, 2010)

Elements of Job Performance

Selection Criteria for Employee Characteristic

Predictors of Selection Criteria

Quantity of work

Quality of work

Compatibility with others

Presence at work

Length of service

Flexibility

Ability

Motivation

Intelligence

Conscientiousness

Appropriate risk for employer

Appropriate permanence

Experience

Past performance

Physical Skills

Academic Qualification

Interests

Salary Expectation

Test scores

Work reference

Previous job tenure

Medical test

Criminal record

STEP 6: Interviewing

Interviewing is a skill (Rob Yeung, 2008)

A good interview shall carry 3 main objectives:

to evaluate candidate in an accurate and fair manner in order to identify the candidate who will add most value in the job;

to treat candidates in a professional and courteous manner so that they will want work for your organization.

to help candidate to understand the nature of job so they can decide whether they want to work for your organization.

Most interviewers will tends to have common misconceptions to prejudge the interviewee will lead to unsuccessful interview. Interviewers who are having the Halo and horns effect mindset, rely too much on the strong track background record or rate highly on the candidate that they like (who may have similar background with them); a non-structured interview which conduct by an interviewer who without a proper guidance and training in interview which relying on instinct or even appearance alone will not find the best candidate for sure.

An effective interviewing allow you to bring in the right candidate who are with relevant work knowledge which eventually able to make up a more diverse workforce. A good interviewer is also able to create a positive impression about the organization and the people who work in that organization to the interviewee and attract the interviewee to join the organization.

STEP 7: Making decision and Making the Job Offer

After done with interviewed the potential candidate, the management shall make the decision based on the consideration between job elements, Selection criteria and predictors of selection criteria that as shown in Table 2. All the aspects shall be consider and select a candidate who could best fit to the vacancy position.

When considering a candidate’s fit in recruitment and selection, two types of fit have to be paid attention, which are job fit and organization fit. Billsberry (2000) introduced his three key stages of making a rational selection decision on organizational fit:

Analysis and Selection Criteria

Choose

Best Fit

Attract & Access ApplicantsFigure 1: Key stages of making a rational selection decision

After selection decision is make based on the best fit, the company could proceed to offer the job to the shortlisted candidate. The offering is normally conducted by the HR personnel after finalizing with Hiring Manager. Hiring Manager shall work closely with HR Personnel on the job offering including the remuneration package to avoid any discrepancy and conflict in between the offering process and the remuneration being agreed.

STEP 8: Job Placement

Upon knowing new staff joining, employer need to get ready with the preparation like getting ready the equipment that required by the new entrant, getting ready with the work stations with appropriate tools and prepare a Inductions program.

Inductions Program are used in many organization to allowed the new entrant’s to have a better understanding to organization and its culture.

Induction can be defined as the process of helping a new employee to settle quickly into their job so that they soon become an efficient and productive employee (Foot & Hook, 1999)

The induction program shall normally include run down such as introduction of company related information, get around knowing the working environment and the people within Company and introduction of job role, An induction program enable the new starter to become a useful, integrated member of the team, rather than being "thrown in at the deep end" without understanding how to do their job, or how their role fits in with the rest of the company. A good induction program can increase productivity and reduce short-term turnover of staff.

However, the recruitment does not stop after Induction Program, the new entrant shall be reviewed from probation period up to confirmation period and their needs and wants during this period shall be attended and address appropriately in order to help in retention plan later.

COMPENSATION AND BENEFIT

In today talent’s market, talents are not only looking for better pay scheme in monetary but in fact seeking for a better "Total Rewards" package.

Money is not the major motivator. Challenge, growth opportunities, flexibility, great co-workers, meaningful work, a good boss and recognition (often in nonmonetary forms are examples of things that matter more to most of your people. When those are missing, talented people walk. (Beverly Kaye and Sharon Jordan-Evans, 2008)

A "Total Rewards" simply means monetary and non-monetary rewards that provided to the employees in order to attract, retain and motivate them (Human Resource Management, 2010) and "Total Rewards" could also act as a strategy to address the issues created by recruitment and retention.

Indeed, today’s talents are looking beyond the "big picture" in deciding where they want to work. Work and personal life should be seen as complementary priorities, not competing ones. When a company helps its employees effectively run on work life balance module, the employees feel a stronger commitment to the organization.

Employees are asking for a workplace that helps them balance the demand of their works and family lives, rather than forcing them to choose one over than other. (Beverly Kaye and Sharon Jordan-Evans, 2008)

Work life balance is rated the single most important consideration among employees aged 21 to 30. (Management Issues, 2006)

But what does "Total Rewards" help in recruitment and retention?

Align the entire group of reward scheme with company goals

Lower fixed costs and risk (in recruitment and retention)

Balance costs and perceived value of compensation and benefits

Improve employee attraction and retention

Increase employee morale, motivation and productivity

Improve competitive positioning

An effective total rewards strategy is aligned with business strategy, is customized to an organization’s workforce and considers the interplay among various rewards element. (Watson Wyatt Worldwide, 2007)

Total Rewards Approaches is form up by 3 major components:

Indirect Rewards which could help contribute to a sense of life fulfilment of employee. Eg: Flexi working hours, insurance coverage, company trip or activities, retirements plan and etc Figure 2: Components in Total Rewards Approaches

Direct monetary rewards which consists of wages and variable pay such as bonus, incentives.

Rewards given based on performance through performance reviews and thereafter given recognition thru career development or succession planning

No single component could work on its own but maybe certain component may rank higher in terms of priority, such as pay. However, there are other components, which contribute to a sense of fulfilment for an employee and

ended up act as an attractive and competitive tool to complete within the talents market to make the difference between whether an employee stays or goes.

A total reward is an approach that gives the Company a framework to manage the compensation and benefits issues based on accurate assessment and analysis then to review the issues within so that it could be competitive within the talents market.

TRAINING, LEARNING AND CAREER DEVELOPMENT

The purpose of training and management development programs is to improve employee capabilities and organizational capabilities.

When the organization invests in improving the knowledge and skills of ots employees, the investment is returned in the form of more productive and effective employees. Training and development programs may be focused on individual performance or team performance. A development in career path will also act as a tool on retention which employee was given recognition to be develop into next higher ranking in their position.

The creation and implementation of training and development programs should be based on training and development needs identified from a training needs analysis so that the time and money invested in training and development is linked to the mission or core business of the organization (Watad & Ospina, 1999: Kenneth M. York)

Therefore, to maximize the effectiveness of training and development, organizations must constantly assess their employees’ current training and development needs and identify training and development needs to prepare employees for their next position. This requires that organizations recognize that different employees will have different needs and that these needs will change over time as these workers continue in their careers.

With the planned career and development path, employee will feel secure in their position so that to prevent them to look out from the Company.

Training Needs Analysis is necessary tools to identify what is skill or knowledge lacking on an employee and how the skills or knowledge could help the employee to improve their productivity in their performance and eventually the employees could use that skills or knowledge to achieve the organization goals.

Figure 3: Connections between training needs analysis versus organization needs and their employees (http://www.the-connection.com)

The above chart has showed the linkage of the Training Needs Analysis with the organization and employees needs in training. This tells that the organization performance will derived from the employee’s performance where employees performance is rely on the knowledge and the skills that they possess, should it be any lacking in any aspects, the training needs analysis is the tools to identified the lacking and thereafter to work out the solution on how to overcome the lacking.

COMPANY RELATED ISSUES

Industries Constraint

Public Awareness or the Company Reputation

Organization and Its Management Culture

There are many different industries within the market for talents to choose from, talents prefer to seek job or career at higher popularity and public awareness companies.

As refer to the Top 10 of "Employers of your choice Malaysia 2012" (Appendix A), we could see that the most popular industry is accounting and consulting services industry as there are total 4 companies out of top 10 is under this industry while the second popular is banking services industry which stand up by 3 companies; while the other companies are either multi-national company or public listed company which having higher public awareness.

From the listing, we are able to see that the talent pools within market prefer to look for well-established, multinational or public listed company as their ideal organization to work with. The reasons being could due to those well-established organization is projecting a good corporate image and they could be having significant core values which could lead all employees work towards to the same direction to achieve same corporate objective.

Of course, the industry is also does matter, as far as the Employers of Choice listing has shown, we could easily see that accounting or finance related industry is the most popular industry that employees loves to joined with. And for those industries which have least popularity and public awareness, it is less likely to attract the talents pool at their first sight when searching for jobs.

Therefore, the popularity and public awareness of a company is also an important element when comes to attracting of talents from the market; but even if the company have least or none public awareness, in fact the popularity still can be develop; through word of mouth by the employees who resigned or currently working, by the clients, through work related project, through joining of seminar or fair activities, advertising, charity and a lot more, all these activities could help to create higher public awareness.

According to the 2007 Recruitment, Retention and Turnover survey conducted in UK, 80% of survey participants see the main resourcing objective for investing in employer branding is to attract the people you want to recruit. 57% say they are also keen to improve the external perceptions of the organisation and 41% are hoping to differentiate themselves from the competition. Chartered Institute of Personnel and Development (CIPD)

However, apart from promoting to the public to increase the popularity and public awareness, what can a company do to make their employees feel secure with their job and thereafter manage to retain and attract new people? I believe the below points could help in retention and eventually link it back to easier recruitment activities since the system has been established:

Appropriate training and development on employee to help with work effectiveness.

The work enjoyment that the employees could gain from the effective workforce team.

A good leadership method from management which could gain respect. The focus of accountability and responsibility that appeals to leaders needs to embrace every individual, team and department.

Organizations corporate values with clearly defined goals, where individuals are rewarded for achievement.

Company culture represents the glue that keeps all these different geniuses and dynamos working towards a common goal, but it also needs to be managed to stay productive.

The building blocks of a company’s culture are its core values. Employees will follow what management displays as priorities for the company.

(Melissa Crossman, 2012)