Recruiting and Maintaining Staff - Essay Example

? Recruiting and Maintaining Staff of the of the Recruiting and Maintaining Staff Introduction The issues of recruiting and maintaining staff or proper, efficient and effective personnel throughout the organization has been one of the key concerns of human resource managers and HR Department Heads wherever they are, and in whatever organization they are part of. Ever since it was realized that man is a key resource to getting things done in organizations and helping accomplish their goals, so that success and profitability follow, it has been the keen desire of every business owner and HR manager to recruit and maintain the best possible staff for the longest possible time so that the objectives of the enterprise could be attained using their labor and expertise. Achieving the satisfaction of the business owners would mean that the best performers are rewarded for their efforts, and management efforts are appreciated as well. This is unfortunately, easier said than done. An organization has to compete with others in the marketplace and in the same or different industry, in order to attract, retain and keep the best employees on their payroll. At the same time, achieving the best fit for positions in different departments and at different levels of the organization is important. A good employee must not only have the proper skills and attributes for the job, he must be able and willing to perform his duties with responsibility and confidence, whether individually or as a member of a team. He must be a self starter but also willing to follow the instructions, dictates and policies of the organization. Where problems arise, he must be able to approach his supervisors and take their advice. In fact an open culture and collaborative friendly approach to problem solving have been the hallmarks of the best organizations (Peters & Waterman, 2004). Management by objectives and providing valuable feedback and guidance during interim and annual performance reviews can help the willing and able employee succeed and earn the respect of his peers as well as his superiors (Crosby, 1992). In today’s recessionary environment, organizations are cautious about hiring too many employees. Business has dwindled and consumer confidence is scarce. College and university graduates are having an increasingly difficult time finding and keeping jobs. It seems that the workplace is full of doom and gloom too, with a lot of directives to follow if one is to hold onto his or her job and make it up the career ladder. More and more of the work population are disenchanted with this state of affairs and the result is that the national unemployment rate of 10 percent in the USA is almost constant. The combination of consumer inertia and loss of confidence in the system means that it will be some time before we overcome this crisis. This review will focus on how to attract and retain the best staff for the longest possible time by making HR a strategic partner in their lives as well as in promoting the objectives of the enterprise. We will be focusing especially on employee retention, workforce turnover, retaining recent graduates and young worker turnover. Employee Retention: How to Retain Employees in a Downturn  The effects of the financial crisis that occurred in the sub-prime mortgage sector in 2007 had spilled over and affected the rest of the world by 2008. It was really disastrous for most of the world’s economies, given that our financial and economic and trade systems are inexorably linked to one another like compartments in a beehive. Any problem that spills out of control can affect and contaminate the world’s economies in a matter of days or weeks. Since the USA is one of the world’s biggest economies, its links through economic and trade relations would affect all of its trading partners in some measure, and that is exactly what happened. With the world’s major markets in a nosedive, the situation looked gloomy for a lot of world economies. Even now, most of the EU nations are looking for a way to scramble out of the crisis, as they offer stimulus packages in Greece, Portugal and Spain to bring back their failed systems on track. But this state of affairs has had another, deeper effect. The reduction in business and trading opportunities has led to reduced employment, mass layoffs, staff reductions and downsizing the likes of which were being compared to the Great Depression of the 1930s. What are employees to do? Many of us have faced the axe and still others work reduced hours to enable their companies and jobs to carry on. While they still have a job, their pay check has been reduced while their bills are the same. Once can blame the economy and the Government for not taking proper action against the lenders, investment bankers and CEOs who profited from the entire fiasco and were left unscathed while others lost their homes and cars and joined the homeless. Hardly any but the highly specialized sectors have picked up in business but they require a good education and stellar credentials to get into. Even the multinational businesses and banks have been hit as their overseas assets and liabilities meant that they were exposed to risk overseas and that the pain would be felt elsewhere if not at home. This is very much the story everywhere. Yet we have no means to punish the perpetrators of this ordeal. We can establish stricter controls but there is no controlling human greed. We can be our own worst enemies. While the Government has been keen to set limits on the compensation of Wall Street executives, it is also worried about the effect this will have on business recovery. Sometimes a story of top executive compensation leaks out filling us with envy and anger. Justice clearly has not been served here. A review of the literature clearly indicates that there are six keys to retaining personnel. These are through having proper procedures for recruiting, communications, training, job satisfaction, pay, and benefits. Thus efforts to retain the best personnel begin with recruiting. Attracting and retaining the best people are not two different things, but the same. It requires creating and maintaining a positive reputation, internally as well as externally. On their part, employers must be honest with the recruiter about the beliefs, expectations, organizational culture, demands, and opportunities within the organization. By representing the organization realistically, a worker will attract others who will be content working within the culture (Lawler, 2000). Ulrich & Brockback (2005) state that the better the match between recruits and the organization, the more likely it is to retain them. Crosby (1992) believes that you must take time during the hiring process to make wise decisions. The employer must be candid about the working conditions, responsibilities, opportunities and other details to reduce the chances of making hiring mistakes. Phillips and O’Connell (2003) strengthen this thought by noting that it is imperative that companies give prospective employees a true picture of the organization, if they hope to match the personality type with the climate and culture of the organization. All this makes it clear that if organizations want to increase retention they must start with a solid recruiting process. Ahlrichs (2000) believes that the key to employee retention is quite simple and is related to communication. Communication with the employees must begin early in the relationship- in fact from their first day on the job. Ahlrichs believes that the impression period of a new employee is probably less than two weeks. Employers and department heads must engage the employee early on by sharing the importance of the job they do. Crosby (1992) follows this up by stating that early on an atmosphere of fairness and openness must be created by clearly laying out company policies. Phillips & O’Connell (2003) indicate that it is important to communicate the values of the organization to its employees in order to increase their level of consent, participation, and motivation. Crosby (1992) echoes this thought by pointing out that the vision of the organization must be shared with the employee- as well as the importance the employees play in helping fulfill it. Lack of communication may result in gaps between management’s perceptions of quality employment and the employees desired and perceived quality of employment (Phillips & O’Connell, 2003). There should be a common purpose and trust among all employees. People want to feel as if they are a vital piece of something larger (Ahlrichs, 2000). As Lawler (2000) points out, managers must make sure employees know what they should do and why it is important. Further, Crosby (1992) notes that communication must be two-way in order to be effective. Employers must also listen to what employees have to say. An atmosphere must be created in which employees feel comfortable making suggestions and trying our new ideas. All in all, the literature revealed that communication must begin early in the employer/employee relationship. The organizational values and culture must be made clear to all employees and their importance within the organization must be continually emphasized. It is very important that the employee feel like a valued member of the organization. Training helps underscore this feeling. Thus training personnel is a way to show you respect them and want them to grow. The organization is making an investment in the employee by offering training (Ulrich & Brockback, 2005). Good training can de-emphasize salaries and benefits, in part by building a positive work environment and by giving employees advancement opportunities (Crosby, 1992). Training can help strengthen employee loyalty as well as revitalize personnel. For an increasing number of people, the chance to learn new skills is a significant personal goal for both the career opportunities education can provide and for the chance to do something a little different (Werther & Davis, 2005). Training emphasizes to the employee that they are valued and respected. This in turn leads to increased loyalty and retention. Preventing Worker Turnover from Escalating Maintaining a low rate of employee turnover has always been an important goal for the HR department. HR should look into the reasons for leaving of every employee and note similarities or differences. It should be made certain that records of employee exit interviews are kept confidential at all times. Sometimes an employee does not fit in or finds his career stalled; at other times it is the non-recognition of his efforts on the job and office politics that are the reason for his departure (Ulrich et al, 2001). While an organization must be competitive in terms of compensation and benefits, it is the relationship with the supervisor that is often a crucial factor in determining whether a person stays or goes (Werther & Davis, 2005). Employees want more interaction with management, more self-satisfaction on the job, more responsibility and more control over decisions affecting them. They want their work to make a difference and want to be part of something that matters (Phillips & O’Connell, 2003). Organizations should encourage innovation by soliciting the advice and input of their staff members, followed by responses to ideas, complaints or questions (Phillips and O’Connell, 2003). It is difficult to keep people on the job if they have no say in how to do it (Crosby, 1992). People need to be recognized and appreciated for their accomplishments in the workplace. In most organizations the feeling of under-recognition is the most pervasive feeling in the workplace (Werther & Davis, 2005). HR can act positively in this respect by provide a great deal of personal and team recognition (Ahlrichs, 2000). Another way is to recognize achievements with memos, mentions in staff meetings or articles in the newspapers (Crosby, 1992). In an atmosphere of uncertainty, it is important to communicate more with employees, not less. Employees are ready to believe the worst and may believe rumors more readily than fact when the going is tough and they are sure that the axe is going to fall. It is the time when the office grapevine goes into overdrive. In such a situation, HR has a duty to communicate its strategy and timeframe to all the employees in the organization. If there are indeed going to be job cuts there should be proper justification for it. One should make sure that a mix of experience and youth is retained in terms of bench strength even after the dismissals. This can help the organization get back on track fast whenever things improve. HR should maintain a friendly demeanor in an already tense atmosphere. Recommending trusted and loyal employees to others or for training to get them other jobs will score high marks for HR and for the firm as well. But by far one of the best ways to retain employees is for organizations to offer career advancement opportunities. Workplaces failing to offer employees career opportunities, room for advancement and enhancement of skills and knowledge may find it difficult to retain qualified employees (Phillips & O’Connell, 2003). Ulrich & Brockback (1995) confirm this by pointing out that promoting from within is one of the proven methods of employee retention. Promoting from within also shows that there is room for advancement and growth within the organization. The literature reiterates that employee involvement, recognition, importance of work, and career advancement opportunities are all important when dealing with employee retention and reducing worker turnover. Retaining Young Graduates One of the most important talking points in today’s HR departments is how to attract and retain young aspiring graduates for the long term. It is often said that every twenty years there is a new generation and this is no less true than of today’s youth. Fresh from college or university, many of them have unrealistic dreams of the workplace. Those with MBAs typically think that they are set to climb up to the top without much difficulty. Yet it is the patient and hardworking employees that get the results and the rewards. He will not be overlooked for a promotion or bonus and likes to challenge the status quo. He is ready for challenges but if he is not rewarded up to his expectations he is likely to leave in a huff for the nearest competitor. Today’s employees like to work smart, not hard and are savvy and willing to take challenges and risks if they think it will pay off (Phillips & O’Connell, 2003). We have already touched upon the importance of training and development, good pay and benefits and a level playing field for all employees to perform and get recognized and rewarded for their efforts. Proper feedback and supervision with orientation, training and support on the job can make even an ordinary employee a good performer. While people may think that money and benefits or lack thereof are the main reasons people leave their jobs, this is not always the case. While compensation and benefits may be a key factor in the final decision-making process, a money shortage is usually not what causes people to look elsewhere in the first place (Ulrich et al, 2001). Money may be the reason they give when they resign, but it’s like white noise. They are conscious of it for a while but if they are bored on the job, money alone is not going to keep them there (Lawler, 2000). Preventing Early Turnover Studies have shown that it is exceedingly important to judge employees on merit only. What matters is their work attitude, ability to work hard, level of interest and motivation and potential to grow with the organization. The best measure is how they would react to a certain job related scenario. That’s why this is the most important part of job interviews. Also the entire selection and hiring process takes time and is a cost to the organization. So it is important that it is done well. Nevertheless, all organizations have a probationary period where either party can decide to let go if it is not working out. Potential employees should be able to stick at a task till it is clear that nothing more can be got out of the situation. Their doggedness and tact and willingness to try different approaches to get the job one shows their adaptability and maturity as well. These are the employees that should be selected for the jobs in the organization. Proper training and orientation is important as well and can play an important part in a new employee’s fit into the workplace. Each must be given a mentor or buddy who is responsible to give them proper feedback and guidance when needed. It helps immensely if HR introduces them to the boss and the people they will work with on the first day. HR and their supervisors must also be available to help them as they get set within the workplace and its culture. If all this is done correctly and the employee is satisfied, it is highly likely that he will stay. Management by objectives is one good way to both get performance and measure results. Wherever possible the goals of the organization are converted into achievable workloads so that progress can be measured on a daily, weekly or even annual basis. Using the HR value proposition and the HR scorecard are good ways to correlate strategy with the desired results (Ulrich et al, 2001; Ulrich & Brockbank, 2005). Although traditional benefits such as vacation and health are still important, today’s workers are also looking for more non-traditional benefits. Benefits such as flexible work hours, availability of child care and tuition assistance programs or discounts on services now top the list of desired benefits (Phillips & O’Connell, 2003). The literature clearly indicates while still factors, money and benefits are not as important as job satisfaction in terms of employee retention. Difficulties Faced During the Research Process The first difficulty was finding enough time to do the research. Life is busy even as a student but once I had made out a schedule of activities I tried to stick to it the best I could. I had to spend a lot of time at the library, first thinking about my approach- then finding the relevant books to help me. The second difficulty was the writing process. Although the general guidelines and the Power point file helped a lot in the organization of the paper, deciding what to write and then editing it so that it made sense and had a proper flow was the challenging part. Conclusion Based upon the above literature review on the topic of employee recruitment, hiring, orientation and retention, certain common factors emerged which made it clear to me that the one or two most critical aspects of managing the HR function for an organization are to promote a level playing field where justice and equity is provided for each and every employee, there are no favorites and nobody can bend the rules and get away with it. This is instrumental in boosting employee morale. Employees know that HR cares when they see these principles in action. Moving from improving employee morale to engaging in employee involvement and having an open door policy to encourage employee involvement and show that you care can be a good action for an HR head to make part of his or her job responsibility. The point is to treat employees as assets, rather than liabilities. References Ahlrichs, N. (2000). Competing for Talent: Key Recruitment & Retention Strategies for Becoming an Employer of Choice. Nicholas Brealey Publishing. Crosby, P. (1992). The Eternally Successful Organization. Signet Books. Lawler, E. (2000). Rewarding Excellence: Pay Strategies for the New Economy. Jossey-Bass. Peters, T. & Waterman, R.(2004). In Search of Excellence: Lessons from America’s Best Run Companies. Harper Paperbacks. Phillips, J. & O’Connell, A. (2003). Managing Employee Retention: A Strategic Accountability Approach. Butterworth-Heinemann. Ulrich, D.; Huselid, M. & Becker, B.(2001). The HR Scorecard: Linking People, Strategy and Performance1st ed. Harvard Business Press. Ulrich, D, & Brockbank, W. (2005). The HR Value Proposition, 1st ed. Harvard Business Press. Werther W. & Davis, K. (2005). Human Resources & Personnel Management, 5th Ed. McGraw Hill. Read More