Improving Diversity through the Recruitment, Selection & Placement Process - BHP Billiton - Case Study Example

Running head: IMРRОVING DIVЕRSITY Imрrоving Divеrsity thrоugh thе Rесruitmеnt, Sеlесtiоn & Рlасеmеnt Рrосеss Executive summary The objective of this report is to identify, investigate and assess ways of enhancing the overall diversity of the workforce at BHP Billiton by improving the company’s recruitment, selection and placement (RSP) processes. It is noted in the report that although BHP Billiton attaches significant value to workforce diversity as revealed through analysis of information in its website and in its annual report of 2014, the company does not have an elaborate scheme to enhance workforce diversity through its RSP practices. Comparisons have been made between the company’s RSP practices and theory from literature on the topic. It is revealed that BHP Billiton’s RSP practices tend to be too broad and are largely traditional. To improve the situation, it is recommended that the company should make its RSP practices more specific and adopt new and innovative RSP practices to attract more diverse groups for employment. 1. Introduction The purpose of this report is to identify, explore and evaluate ways of improving the overall diversity of the workforce at BHP Billiton through improving the company’s recruitment, selection and placement (RSP) processes. Workforce diversity is a phenomenon that recognises the realism that people are different in many aspects, including gender, age, marital status, sexual orientation, disability, ethnicity, personality, social status, religion and culture (Shen, Chanda, D’Netto & Monga, 2009, p. 235). BHP Billiton, an Australian multinational resources company, describes itself as a company that needs “a workforce that reflects diversity in all forms, including gender, skills, experience and ethnicity” (BHP Billiton, 2015a, para. 5). However, the company’s website does not indicate any elaborate strategy that the company uses to achieve workforce diversity through its RSP processes. In view of this, this report will evaluate BHP Billiton’s current recruitment practices in regard to how they are focused on attaining workforce diversity. The findings will be analysed in relation to theories in literature on how RSP practices can be used to achieve workforce diversity. Based on the analysis, suggestions will be developed as to how BHP Billiton can improve its RSP practices to create a more diverse workforce. The suggestions will also be evaluated to determine which ones are more appropriate for BHP Billiton’s scenario. 2. Analysis of BHP Billiton’s RSP practices 2.1 Current RSP practices within BHP Billiton that focus on workforce diversity According to BHP Billiton’s website, the company is “committed to diversity in the broadest sense, including thought and perspective, age, disability, nationality, ethnicity, orientation and gender” (BHP Billiton, 2015b). The company also notes that it strives to achieve diversity across all levels of the organisation and its operations in different countries (BHP Billiton 2015b). To illustrate the level of workforce diversity that exists in the company, BHP Billion notes that its board of directors comprises 14 members, who include two women, and is made up of people from eight countries. The company also has a target of increasing the number of female board members to three since it believes that critical mass is a significant driver of a more diverse labour force. Based on BHP Billiton’s annual report of 2014, the company has 47044 employees and 76759 contractors who work in 130 sites in 21 countries (BHP Billiton, 2015b; BHP Billiton, 2014, p. 46). The workforce is made up of 116 different nationalities and 23 ethnicities. Further, the composition of the workforce by gender is 84% male and 16% female (BHP Billiton, 2015b). BHP Billiton only notes that its recruitment practices are managed locally and that employment opportunities are provided based on merit (BHP Billiton, 2015b), but it does not mention if there is any elaborate scheme that is used to meet all the dimensions of workforce diversity on its RSP practices. For instance, it is noted that employing directly from local communicates allows the company to be an active component of those communities (BHP Billiton, 2015c). However, there is no mention of how the company takes into consideration communities that are not found in areas where it operates. For instance, although 49 percent of BHP Billiton employees are Australians (BHP Billiton, 2015b), there is no mention of what proportion of this percentage are Indigenous communities. As well, the description given does not indicate how BHP Billiton’s RSP practices strive to attain other dimensions of workforce diversity such as disability and sexual orientation. There are also just few indications that BHP Billiton has a plan in its RSP practices to ensure that the company achieves workforce diversity. These include Indigenous employment and training programs and initiatives such as the Broad-Based Black Economic Empowerment (B-BBEE) program that empowers people of African descent, as well as raising the representation of women in the company’s workforce (BHP Billiton, 2015b). It is however important to note that B-BBEE is a legislation in South Africa (Horwitz & Jain, 2011), one of the countries in which BHP Billion operates, and not an initiative of the company. 2.2 Differences between BHP Billiton’s RSP practices and practices in theory Although BHP Billiton has made attempts to achieve workforce diversity by recruiting people locally (where it operates), it can be said that these practices are not adequate as they cannot guarantee diversity in all aspects. There is a significant difference between BHP Billiton’s approach to RSP practices and the approaches discussed in literature. According to Munjuri (2012, p. 10), one of the ways through which an organisation can attain workforce diversity is the use of diverse recruitment policies. The author also notes that recruiting from a wider array of ethnicity and age gives firms a larger pool (p. 13). Organisations also have to offer deliberate support to minority groups through aspects such as providing equal employment opportunities and diversity training (Munjuri, 2012, p. 16). Thus, the difference between BHP Billiton’s RSP practices for achieving workforce diversity and what is found in theory is that they are not specific in scope, and are largely driven by the need to comply with the law (for instance the B-BBEE program). Another difference between BHP Billiton’s RSP practices and what is discussed in theory is that BHP Billiton tends to focus solely on traditional RSP practices. For instance, apart from encouraging diversity and searching for talent as well as motivated graduates from a wide array of backgrounds and academic disciplines to join its workforce (BHP Billiton, 2015d), the company does not have other specific strategies of promoting diversity and inclusion. In literature, (e.g. Grobler, Wärnich, Carrell, Elbert & Hatfield, 2006; Oracle, 2014), it has been reported that employers in various countries are responding to the shortage in skilled labour by employing a number of non-traditional RSP practices and looking beyond complying with employment regulations and affirmative action programs. For instance, in South Africa, employers are using strategies such as disadvantaged training programs, learning and mentorship programs, careers exhibitions, telerecruiting, and diversity data banks to ensure that they are able to reach people with diverse attributes and from different backgrounds (Grobler et al. 2006, p. 168). According to Oracle (2014, pp. 1-2), such innovative RSP practices help organisations to identify and benefit from new talent pools both within the organisation and externally. They also help organisations to understand different groups and thus reach them using approaches that suit their needs. 2.3 Areas of BHP Billiton’s RSP practices that can be improved to achieve more diversity One of the areas that BHP Billiton needs to work on is to increase the specificity of its RSP practices so that they are aimed at achieving workforce diversity along specified dimensions. As noted above, the current RSP practices are broad in nature and largely target compliance with laws regarding employment, diversity and inclusion. An example of intervention is that adopted by ExxonMobil, one of the world’s largest oil and gas companies in the world. The company has various programs that support diversity and inclusion in RSP and other human resource practices within the organisation. These include the Black Employee Success Team (BEST), the Asian Connection for Excellence (ACE), the Inclusion and Diversity of Employees (PRIDE), Global Organisation for the Advancement of Latinos (GOAL), and the Women’s Interest Network (WIN). These groups facilitate RSP practices through professional development initiatives, sponsorship of educational as well as community services to enhance awareness about the company, and guiding and mentoring new recruits (Exxon Mobil Corporation, 2015). Another area that BHP Billiton needs improve is with regard to expanding its RSP practices. According to Daft (2010, p. 358), organisations can increase the diversity of their workforce by for instance using better formal recruiting procedures, providing internship programs to give different people opportunities, and coming up with innovative ways of attracting people from previously untapped labour markets. For instance, recruitment can be conducted targeting ethnic minorities (such as the Indigenous Australians), but such recruitment should be based on individual abilities instead of ethnic membership (Shore et al., 2011, p. 1269). For instance, Marathon Ashland Petroleum company has developed a six-point recruiting strategy that is aimed at increasing diversity through areas such as recruiting cross-functionally and corporate-wide, creating relationships with first- and second-tiered schools to recruit students from minority communities, providing internship programs for ethnic and racial minorities, providing minority scholarships, establishing affiliations with minority organisations, and creating informal mentoring programs (Daft, 2010, p. 358). Expanded RSP practices also include demographically targeted recruitment and mentoring (Hays-Thomas & Bendick Jr., 2013, p. 196). By adopting such strategies, BHP Billiton will be able to have a wider reach to people of different backgrounds. 2.4 Evaluation of the changes/strategies The advantage of increasing the focus of RSP practices so that they cover more specific areas of workforce diversity is that it would enable BHP Billiton to target more groups such as the Indigenous communities, people living with different types of disabilities, and other minority groups. For instance, by adopting programs such as those that are being implemented by ExxonMobil, BHP Billiton would be to achieve diversity in several dimensions. However, one disadvantage of such initiatives is the high cost involved since there are many diversity programs to be managed. Another disadvantage is that such programs need to provide assurance that the targeted groups will be offered the support they need right from recruitment through the selection process to the placement stage. For instance, a description of the atmosphere in which the target groups will work and an assurance of support from other groups in the organisation is likely to attract more people during the recruitment stage (Virginia Commonwealth University, n.d.).Without support, such initiatives are unlikely to be successful. The other strategy, which involves expanding BHP Billiton’s RSP practices, has the advantage of involving innovative ways of targeting diverse groups based on an understanding of their needs. Rogers and Molina (2006, p. 153) note that most exemplary organisations use incentives such as internships, scholarships, affiliations with minority organisations and mentoring programs to attract people from minority groups during RSP practices. For instance, by targeting students from specific groups early enough, such students get an opportunity to learn about recruitment programs as well as the concerned organisations (Rogers & Molina, 2006, p. 153). Expanding BHP Billiton’s RSP practices is thus more appropriate compared to the first option since it is not only wide-ranging but also appropriate for diverse groups. Further, it has been noted that between 66 and 90 per cent of companies use specialised and innovative strategies for their RSP practices (Williams, 2009, p. 456). The disadvantage of using innovative RSP practices is that such practices may not necessarily capture the interests of all groups, especially those that are cannot be reached through the innovative approaches. 3. Conclusion In conclusion this report has identified, explored and evaluated ways of improving the general diversity of the workforce at BHP Billiton by improving the company’s RSP processes. Although the company values workforce diversity as seen on its website and annual report of 2014, it is indicated that the company does not have a dedicated scheme to enhance workforce diversity through its RSP practices. Differences between BHP Billiton’s RSP practices and what is found in theory are seen in that the company’s strategies seem to be too broad and not targeting specific groups. They also tend to focus on traditional RSP practices. Ways suggested to enhance workforce diversity include increasing the specificity of BHP Billiton’s RSP practices and expanding its RSP practices. 4. Recommendations BHP Billiton should make its RSP practices that target diversity more specific (i.e. focused on specific groups) to ensure that specific targets are made. BHP Billiton’s RSP practices should be expanded by including new and innovative practices suited for different groups. This will enable the company to reach much wider groups that would not have been reached using traditional RSP practices. In addition to expanding its RSP approaches, the company should also target people from many countries across the world, not necessarily those countries in which it operates. This will help enhance workforce diversity in terms of nationalities as well as other attributes. References BHP Billiton. (2014).Value through performance: Annual report 2014. http://www.bhpbilliton.com/home/investors/reports/Documents/2014/BHPBillitonAnnualReport2014.pdf BHP Billiton. (2015a). Our company. Retrieved from http://www.bhpbilliton.com/home/aboutus/ourcompany/Pages/default.aspx BHP Billiton. (2015b). Respect. Retrieved from http://www.bhpbilliton.com/home/investors/annualreporting2014/Pages/Respect.aspx BHP Billiton. (2015c). Questions. Retrieved from http://www.bhpbilliton.com/home/people/faq/Pages/default.aspx BHP Billiton. (2015d). Exceptional people resourcing the future. Retrieved from http://www.bhpbilliton.com/home/people/Pages/default.aspx Daft, R. L. (2010). Management (9th ed.). Mason, OH: South-Western Cengage Learning. Exxon Mobil Corporation. (2015). Diversity and inclusion. 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