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The main problem bedevilling Irontown Inc is that of staff turnover. As noted form the case study, the company has experienced turnover of employees who complete their probationary training in the range of 24 % per year. Half of the trainees do not complete their probation…
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Download file to see previous pages The main reason for this is that the company is not expanding or growing so the trainees opt to look for greener pastures and leave the company even before completing their training. The other issue is that the company’s software is very basic and not in line with the competition in the sector. This also contributes to the staffing problems currently facing the company. Thus, it is clear from the case study that the company needs to address the issue of critical shortage of staff. As such, this paper seeks to outline a solution that can be implemented in order to stabilise the situation within two months.
A critical analysis of the data presented in the case study shows that it is imperative for the company to expand its workforce in order for it to improve its effectiveness. Among the options available in order to carry out this task in about two months, the most viable one is to contract with independent contractors. There are several benefits that can be derived from adopting this particular strategy. As such, this part of the paper seeks to highlight some of the benefits to the company as well as to provide justification why this option is regarded as the best among other alternatives available.
Review of HR principles and applicability to the case
Heneman & Judge (2006) define outsourcing as the process of contracting work to a vendor or third party administrator to perform the tasks mainly related to recruitment and staffing that could be done by the organisation itself. This entails that the functions of the human resources department in the company can be done by an outside company. These tasks include: seeking temporary employees, executive search, skills testing as well as assessing employee backgrounds among others (Kleynhans, 2006). Legally, companies can outsource the services related to recruitment and selection to the other companies as long as the task is carried out within the legal framework in a given country. In the case of Irontown Inc, the strategy of outsourcing the recruitment and staffing task to independent contractors has many advantages. For instance, the company will be in a position to concentrate on its core business while the above mentioned tasks are being performed by an experienced company. The other benefit that can be derived from adopting this particular strategy is that Irontown can reduce costs related to hiring and recruiting. According to (Heneman & Judge, 2006), the recruitment and selection process is usually longer and many organisations usually spend a fortune in recruiting and selecting the right candidates. In this particular case, it can be noted that the probationary training takes only two weeks and as noted, some trainees barely complete it hence the reason why this particular task should be outsourced to the third part. This significantly helps to lower the costs that are likely to be incurred by the company since the work will be done by the third part. The main advantage is that ...Download file to see next pagesRead More
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