Talent Management and Recruitment and Selection - Essay Example

?Talent Management Table of Contents Table of Contents 2 Talent Management 3 Recruitment and Selection 4 Recruitment 5 Selection 7 Absence Management10 Impact of Recruitment& selection and Absenteeism on Financial performance and other management related factors 12 Impact on Financial Outcomes 13 Impact on non financial outcome 13 References 14 Talent Management Recruiting the right person for the right position is an important task of the human resource manager. When the task is executed efficiently then it has a positive impact on the company. Talent management can create long term success if the talent management strategies are aligned to the goals and objectives of the company. It is a holistic approach to the business planning and human resource which improves the effectiveness of the company and the potential of the people. Talent management helps in the integration of different initiatives of the company (Ashton and Morton, 2005). Figure 1: Talent Management System (Source: Ashton and Morton, 2005) Some of the important components of talent management system are as follows: Need- The business need derived from the business model. Data Collection: The fundamental data needed for good talent acquisitions. Planning: Talent and people planning guided by data analysis critical for good talent decisions. Activities: The conversion of plans into integrated set of activities. Results: The cost, measures and effectiveness criteria to judge the value and impact of Talent Management (Ashton and Morton, 2005). Talent management includes organizational assessment and employee assessment focusing on important positions to be filled (Ashton and Morton, 2005).The assessment of the talent management methods include interviews and psychometric testing which are aligned to the company’s competency model. A potential candidate will complete an intensive and rigorous set of interviews, this will help the candidate to get to know about the company and the interviewer will have an in depth assessment about the potential of the candidate. One of the main objectives of the talent management process would be to recruit high potential talents and reduce cost and time required in hiring process. The topics chosen for this study ‘Recruitment and selection’ and ‘Absence management’ have a direct impact on the productivity of the organization. Recruitment and selection are a integral part of the talent management activity as the right candidate for the right position not only helps in improving the effectiveness of the companies but also helps in the reduction of administrative costs. Absenteeism of the workers and employees has become a huge concern for many organizations hence the management of the company should deal with problem effectively to reduce the operational cost. Recruitment and Selection The efficiency and quality of an organization depends upon the human resource of an organization. Hiring and selecting the right candidate for the right position becomes essential. Recruitment and selection form the process of hiring the employees. Recruitment is a strategic function of the human resource department. It is the systematic process of generating a pool of qualified candidates for the organizational post. The process of hiring the candidates starts with human resource planning which helps to determine the type and number of employees an organization needs. Hiring is an ongoing process and not confined to the formative stages of an organization. This is because some employees leave the organization through retirement and resignation. The process stops only when the organization ceases to exist. Recruitment The process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, to apply for jobs with an organization (Gusdorf, 2008, p.01). The sources of recruitment are as follows: (Source: Author’s creation) Internal Sources a) Job Posting: The traditional method to announce a job vacancy was to post notice on the HR bulletin board but presently the job notice is sent electronically through email or organization wide intranet system (Gusdorf, 2008). b) Nepotism: This method includes the hiring of the relatives. Nepotism should adhere to the policy of the organization and care should be taken that the civil rights act is not violated because in many states it is illegal to discriminate in the hiring process based on a person’s marital status (Gusdorf, 2008). c) Transfer: It is concerned with the transfer of one employee from one department to another having similar position and responsibility. This is known as job rotation (Bose, 2004). d) Promotion: It is concerned with the shifting of an employee to higher position with higher responsibilities, status, facilities and income (Bose, 2004). External sources a) Advertisement: The usual practice of the management of the organization is to advertise about a job vacancy for a higher or junior level post (Kot and Leat, 2008). The advertisements will be published in the newspapers, journals and periodicals of management associations. b) Employment Exchange: A network of employment exchanges in a country is run by the government. It is an important source of recruitment of personnel. The job seekers get them registered with these exchanges and the names of the jobseekers are supplied to the management of the companies on the basis of their requisition (Bose, 2004). c) Recruitment at Factory Gate: It is one of the direct methods of recruitment by placing a job notice at the factory gate. This system is usually followed to fill casual vacancies of non managerial workers (Bose, 2004). d) Internet Recruitment: This a new form of recruitment where the organization post about their job vacancies in their official websites or on specialized websites like monster.com and career builder (Gusdorf, 2008). e) Educational Institutions: Campus recruitment is also one of the newest methods of recruitment where the management of the company hires graduates from educational institutions (Bose, 2004). Methods of recruitment like job posting, Nepotism, Recruitment at Factory gate are applied to non managerial and managerial workers. Transfer, Promotion, Advertisement, Employment exchange, Internet Recruitment and Educational Institutions are methods of recruitment specifically for managerial workers. The management must ensure that the job position, responsibilities, duties and income must be stated clearly and accurately in the sources of recruitment. This would help in attracting the right candidates for the managerial and non managerial position. Selection The process of choosing from a group of applicants the individual best suited for a particular position and for the organization (Gusdorf, 2008, p.07). In this method a group of prospective candidates are selected for screening and interview purposes to assess their degree of qualities and knowledge in terms of their job requirements. The selection process is as follows: a) Receipt of applications: In this step the application forms are distributed among the prospective candidates for them to fill it up. The application form gives preliminary information about candidates which would help the interviewer in formulating interview questions (Bose, 2004). b) Scrutiny of Application: A proper scrutiny of the application forms is conducted to select the most suitable candidates out of the prospective candidates called for the preliminary interview (Bose, 2004). c) Preliminary Interview: In this round the candidates get to communicate with the managers. During the interview process the interviewer gets to know the candidate and vice versa. This round is necessary as it helps the managers to understand whether the candidate is suitable to for the position mentally and physically (Bose, 2004). d) Selection: The candidates who are selected in the preliminary interview round are finally selected for the job position. A dexterity test like personality test, typing test is usually followed after this round (Bose, 2004). e) Checking of References: A candidate is generally required to give some referential names, e.g. names of persons who have similar qualifications, experience, character etc. The interviewer usually makes a thorough research into the candidates past employment, education, police record etc (Bose, 2004). f) Medical Examination: The examination is conducted to test whether the selected candidate is mentally sound or not (Bose, 2004). g) Placement and Orientation: The selected candidates are given proper training and orientation to enhance their skills and abilities (Bose, 2004). From the above rounds, interview, selection and medical examination is conducted for managerial and non managerial workers whereas the other rounds like receipt of applications, scrutiny of application, preliminary interview, checking of references and placement and orientation is conducted for managerial positions only. Importance of Recruitment & Selection a) To determine the present and future requirement of the organization in conjunction with its job analysis activities and personnel planning. b) To ensure that the organization is adequately staffed all the time and the purpose is to attract and recruit suitable candidate for the correct position. c) It helps in attracting the candidates at a minimum cost. d) It helps in meeting the organizational, legal and social obligations regarding the composition of the workforce. Sometimes, the organization recruit workforce for the managerial and non managerial positions from abroad which is also known as ‘outsourcing’ for managerial workers and ‘labour immigration’ for the non managerial positions (Choi, Woods and Murrmann, 2000). The skilled and unskilled workers are usually the target of the labour immigration by the manufacturing, hospitality, hospital industries (Choi, Woods and Murrmann, 2000). This helps in contributing to the human capital to their economy so that they create job opportunities for other workers. When the labour workforce is emigrated from one country to another then it has an impact on the earnings and employment of the native worker. The managerial workers are emigrated from one country to another as a worker preference immigrant. It was observed that when the managerial workers are immigrated they become productive and create job opportunities for others who want to have a job in the domestic market (Choi, Woods and Murrmann, 2000). Thus we can observe that an effective recruitment and selection process will help in improving the efficiency and productivity of the workers (Choi, Woods and Murrmann, 2000). Absence Management Absence from a work has been a growing problem in various organizations which reflect low productivity and low morale of the employees. The importance of issues like employee absenteeism becomes a huge concern for the employees when the organization is forced to achieve enhanced levels of performance. Employee absence can be categorized into two types 1) Actual illness or injury of the employee 2) No illness or injury. Sometimes the root cause of the illness or injury is attributed by the way an organization is managed. In other aspects, the absence of the employee is attributed to lower job satisfaction. Employee and labour Absenteeism can represent a huge cost for the organization and can be an indicator to deeply rooted problems and queries (Bennett, 2002). The aspects which contribute to the employment absenteeism can be misbehaviour of the employer, dissatisfaction related to work etc. Labour and employee absenteeism requires adequate amount of attention and action because they are usually costly and disruptive. To manage the problems of labour and employee absenteeism effectively is known as labour management. When a labour was absent it affected the productivity of the factory and also decreased the efficiency of other employees. Some of the major reasons of labour absenteeism were low wage rate, low morale and non standardized rules and regulations of the organization. Eminent economist Henry Ford had developed a theory named cyclic capitalist collapse which focused on how labour time was related to efficient use of labour time and management of resources helps creating organizational value (MacLean, 2007). As per his theory the root cause of the problem needed to be identified by the management and also recommended the use of efficiency measures like investment in highly productive machinery, linking of production process, division of labour time which would enhance the employee skills and the output. The managers use the Fordist model as an absent management tool which can identify the problems related to employee and workers (MacLean, 2007). This theory can be applied to the managerial workers also. The process of Fordist model is as follows: 1) Identifying the problem: The management needs to identify the root cause of the problem. The problem can be related to the personal life of the worker or the work environment of the organization. 2) Absence as a symptom: The identified problem can be an indicator to problems in supervision and other management related problems. The identified problem needs to evaluated and assessed. Causes related to illness should also be taken into consideration as sometimes long work hours can be a contributing factor to illness of employees and labours (MacLean, 2007). 3) Measurement: The absence of an employee/labour can be measured in various ways. Some of the measurement ways are as follows: i) Lost time rate= Number of working days or hours lost/ total number of working days ii) Days lost per employee= Number of working days lost in a year or a month/ average number of employees yearly or monthly. iii) Average length of absence= Total number of days lost/ Total number of absences (Eggert, 2009). iv) Individual Frequency= Number of employees absent one or more times /Average number of employees (Eggert, 2009). v) Frequency rate= Number of individual absences per year or month/ Average numbers employed per year or month (Eggert, 2009). The manager needs to understand the utility of identifying and measuring the problems because it is directly related to the productivity and efficiency of the organization. As per the survey conducted by the Human Resource consulting in the year 2006 it was found out that 65 percent of the Irish companies never made an attempt to calculate the reason behind employee and labour absenteeism or the cost involved in the absenteeism (Price, 2011). Most of the managers were unaware of the impact of employee absences on indirect costs and direct costs. The organization incurs huge cost when there is an employee and labour absenteeism. Some of them are as follows: 1) Wages: Overtime costs, paid to workers who work on behalf of the absent labours. 2) Redeployment: Moving the employees away from their regular work to a more urgent work for which they have not been trained (Eggert, 2009). Sometimes, due to the increase in communication gap between the workers/employees and employers of the organization the worker feels deprived and this affects his productivity (Destination Excellence, n.d.) Communication plays a vital role in an organization and managers should try to decrease the communication gap and establish a pleasant relationship with the workers/ employees. A HR manager should be available round the clock in the factory to address the needs and problems of the workers. This will not only boost the morale of the workers but also improve the relationships between the employer and workers. The managerial workers are privileged as most of the organizations have standardized human resource policy which helps in addressing the problems of the employees. Impact of Recruitment& selection and Absenteeism on Financial performance and other management related factors There is a definite amount of impact of talent management activities and absenteeism on the financial and other business activities. Organizational performance is directly related to the corporate goals and strategies depending upon the size and nature of the organization. As per an international study, 83 percent of managers in Germany and 95 percent of the managers in Netherlands observe a direct leverage between organizational performance and talent management activities (Langenegger, Mahler and Staffelbach, 2010). Impact on Financial Outcomes Organizations that perform effective talent management practices have higher financial performance than other organizations. Different studies have shown that if effective recruitment and selection process is carried out then it will help in the cost savings of the organization and also lead to higher retention rates of the employees and workers (Langenegger, Mahler and Staffelbach, 2010). Effective talent management activities also have led to a significant increase in the operating profit margin of the organization. Companies like to invest in companies which have a higher employee retention rate and practice efficient talent management activities. As discussed before that labour and employee absenteeism lead to increase in operational and training and hiring cost. If the employee retention rate of the employee and the workers are not high then the organization would keep on incurring unnecessary expenditure. Companies do not invest in companies which are incurring unnecessary expenditure and this affects the return on investment and return on equity of the organization (Langenegger, Mahler and Staffelbach, 2010). Impact on non financial outcome Companies in which the employee retention rate, employee engagement are high and the employee absenteeism are low have improved their quality, efficiency and profitability. A higher job satisfaction among employees and labours improves the technical skills and innovative ability of the employees. Job satisfaction among employees is only possible only with guidance from managers about their career and development perspectives. On the corporate level, employee engagement reduces the absenteeism and improves the quality of the corporate culture of the organization. For example after the British electricity and gas supplier company ‘Npower’ had implemented an effective talent management process in the year 2008 and this had a positive impact on the company (Langenegger, Mahler and Staffelbach, 2010). The company’s revenue and productivity increased by 54 percent and 5 percent respectively and customer service complaint reduced by 14 percent (Langenegger, Mahler and Staffelbach, 2010). The employee absenteeism was low and employees confidence in their managers increased by 7 percent (Langenegger, Mahler and Staffelbach, 2010). This reflects that if the management of the company implements effective absent management process at a lower cost it would benefit the company on the whole. Employee- employer engagement increases the sharing of knowledge among employees and enhances collaboration that helps in improving the organizational performance. The recruited workforce helps in delivering excellent performance and in turn are valued and rewarded. Effective talent management activities help in improving the image of the company and also strengthen the position of the company in ranking of the most preferred employers (Langenegger, Mahler and Staffelbach, 2010). It has also been evident in United Kingdom that the organizations who have implemented absence management programs have been able to reduce their savings by 11 percent (The Hartford, 2013). 56 percent of the US organizations have decided to implement effective absent management programs to increase their effectiveness (The Hartford, 2013). The managers need to carefully evaluate the reasons behind the absenteeism of workers and employees in order to increase their organizational process. As observed ineffective talent management and absent management practices cannot only hamper the productivity but also tarnish the image of the company to a certain extent. References Ashton, C., and Morton, L. 2005. Managing talent for competitive advantage. Melcrum Publishing Limited, 4 (5), p.28-31. Bennett, H., 2002. Employee management: The key to absence management in local government? Leadership &Organizational development journal, 23 (8), p.430-441. Bose, C., 2004. Principles of management and administration. New Delhi: PHI Learning Pvt Ltd. Choi, J. G., Woods, R.H. and Murrmann, S.K., 2000. International labor markets and the migration of labor forces as an alternative solution for labor shortages in the hospitality industry. International Journal of Contemporary Hospitality Management, 12 (1), p.61-66. Destination Excellence, n.d. Employee turnover costs and solutions [pdf] Available at: < http://www.aofp.ca/Uploads/Factsheet2_EmployeeTurnover.pdf > [Accessed 24 April 2013]. Eggert, M., 2009. Absence management pocketbook. Alresford: Pocketbooks. Gusdorf, M.L., 2008. 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Innovative thinking on the practice of absence management [online] Available at: < http://www.thehartford.com/employee-group-benefits/absence-insights> [Accessed 24 April 2013]. Read More