Recruitment Process Contribution to the Strategic Priorities of an Organization - Term Paper Example

Assessment of the impact of the recruitment and selection process contribution to the strategic priorities and competitiveness of an organization Thekey question that an organization seeks to answer is ‘What talent requirements need to be filled to support the organizational impetus to meet strategic objectives?’ The capability of the internal recruitment function to satisfy this question determines the organizational capability to arm itself appropriately to meet oncoming challenges. Recruitment strategy is determined by the organizational context and draws upon existing intelligence to design appropriate tactics to achieve manpower objectives. The impact of recruitment when viewed as a larger responsibility requiring the involvement of different organizational capabilities is much higher than when recruitment is considered the sole responsibility of a small group of people hired for the purpose of administering recruitment activity. Armstrong (2009, p. 87) underscores that ‘No single aspect of HR strategy should be considered in isolation. The links between one area and other complementary areas need to be established so that the ways in which they can provide mutual support to the overall strategy can be ascertained.’ Burke describes the impact of incorporating Likert’s System 4 of Participative Group Management. This organizational decision led to internal habit changes and recruitment process changes. Top management representatives drove this organizational change and ensured active participation by the various departments. The recruitment process included observation of candidates in different situations and the decision of recruitment was given in the hands of the people who were to be worked with. The selection process included a feedback session with the candidate that explained the reason the candidate’s acceptance or rejection. (2002, p. 86) This experience highlights the need for an organizational view about the manner in which recruitment and selection processes should be designed, who alongside the recruitment function should be party to the process design and gauge system and manpower capabilities to sustain the processes. The recruitment function holds primary responsibility for the implementation of the process but organizational involvement is necessary to review contradictory practices and curtail unrealistic expectations. Organizational context Industry performance, competitor action, customer expectation and shareholder satisfaction form the factors that determine the competitive advantage of the firm. Companies adopt hiring practices to suit the supply-demand situation of the labor market. The labor market, competitive industry practices and capital intensity of the industry determine the recruitment methodology. The importance of recruitment and selection process lies in the ability to provide necessary talent to enable entry into new markets, shoring up for future growth in short timelines, meet the rate of attrition and any other strategic initiatives of the company. ‘…as the first stage in the strategic HRM value chain, recruitment controls and limits the potential value of such downstream HR processes as employee selection or training and development.’ (Boxall, Purcell & Wright, 2007, p. 273) The organizational context to be considered is the scale of recruitment activity. High attrition rates force regular pressure on the recruitment function and reduce the scope for innovative practices and strategic intervention. Planned recruitment activity that works under the pressure of coping with current and future organizational demand Another aspect is the availability of systems, psychometric tools and organizational willingness to allow for processes to cater to the requirements of speed for effective recruitment. Organizations with elaborate hierarchical structures, belief in personal capability in gauging people over the results of psychometric tools and the lack of investment in systems that cater to the recruitment function lead to process inefficiencies, dual effort and time lag and higher costs. Chang emphasizes the importance of organizational passions being reflected in the recruitment and screening process to gauge the candidate’s ‘perceived ability to uphold them and dedication to doing so.’ (2001, p. 158). The author cites the example of Disney Institute that was ‘founded to help individuals explore their passions and to show others how Disney has benefited from its passions… Disney has translated its passion for the “guest experience” into superior performance in its markets…’ (2001, p. 150). This emotional context that runs through the fabric of the organization is important since the candidate appropriateness is determined primarily by attitude and secondarily by talent which is distinct from the normal focus of selection. Analoui highlights the benefit of recruitment with an approach that seeks suitability, malleability and flexibility. The suitability approach seeks to fit the right person for the job while the malleability fits the person within the cultural context and flexibility ‘seeks versatile and adaptable individuals’ who can rise to the occasion in case of future organizational change. The author highlights McDonald’s combination of these approaches to suit the dynamic global needs of the organization. (2007, p. 142) Recruitment and cost advantage Boxall, Purcell & Wright (2007, p. 276) lay down the five conditions that the recruitment function should satisfy in order to make a positive contribution on organizational performance. 1. labor cost efficiency with a spill-over effect of enhanced customer perception 2. identify and tap rare talent 3. adopted set of unique recruitment tactics to manage the demand supply differential 4. the unique tactics are difficult to substitute by competition and provide an edge 5. recruitment aligned with other HR practices to provide an integrated human resource management solution to the organization Efficiencies in the recruitment function lead to the possibility of sharing between varied HR functions. This sharing could take the form of data-mining opportunities, systems enhancement, process reviews and information and idea sharing that lead to effective strategizing to meet contingencies of sudden demand in a scarce labor supply situation. The intra-functional effectiveness leads to a seamless flow of information and enhances the speed and quality of decision making. Pfeffer emphasizes the strategic importance of the recruitment and selection process by citing the examples of large consulting firms like McKinsey and KPMG Peat Marwick. ‘The distinctive competence of a professional services firm is the skill of its staff and if those people can be obtained just as readily elsewhere,… then the competitive position of the organization is diminished.’ (1995, p. 21) The competitive position in turn has an impact on profitability. Inter-firm competition for available talent triggers an increase in the wages for labor supply (Peck, 1999, p. 139). This factor forces the organization to consider the possibility of creating separate approaches for different employee groups. ‘Companies such as GM and IBM have volume-based manufacturing businesses as well as knowledge-based service businesses.’ Performance management approaches and the allotment of budgets to retain these diverse talent groups will be different in design and intent (Berger & Berger, p. 112). Organizational belief in internal recruitment is an important aspect of organizational context. An organization that believes in providing internal resources with growth opportunity and requisite training to take on new assignments have a focus on recruitment at lower levels and thereby reduces the cost of recruitment. An audit that brings out the existing skill, knowledge and experience of existing employees provides a good basis for decision making. (Thomson, 2002, p. 44) Effective recruitment and selection processes linked with good workforce management practices can contain attrition. Flawed selection leads to costs that are estimated by experts to cost between 75% of the annual salary for the position up to 24 times the person’s salary. Some of the reasons for this cost escalation are due to deterioration in productivity of an active job seeker, loss of knowledge that the incumbent takes away and time lost in finding a replacement and bringing the person up to the required level of productivity. (Andrews, 2004, p.22) There is a cost associated from the initiation of the recruitment process to the point of candidate conversion to employee status. First, is the time and money spent on communicating; this is followed by the process of receiving applications and screening. The cost of associated travel and the time spent on interviews and conversion efforts should be considered on the basis of the actual expense of individuals working on recruitment. Cost estimation provides the organization with a metrics that allows for choices that lead to desired results with controlled costs (Edwards, Scott, & Raju, 2003, p. 80). Pre-requisites of an effective recruitment and selection process Brand A strong brand is a powerful draw for recruitment. It is also a pull to retain valued staff. This requires an exercise in identification of competencies to select the right resource to deliver the promise that the brand holds (Barlow & Stewart, 2006, p.158). Good recruitment practices supported by a positive brand receive the desired response from the right candidate pool. Innovative practices Organizational willingness to consider investment in alternatives to traditional recruitment practices requires a budgeted amount to be kept aside for the possibility. This attitude provides flexibility when traditional sources fail to provide the candidates in time (Arthur, 2005, p. 46). Decided selection techniques Clarity about the required competencies for the role forms the basis for deciding selection techniques for assessing the criteria. The choice of techniques to be used for screening and the use of relevant feedback at the point of final decisions is an important aspect of screening efficiency. For instance, initial interview notes and reports of different tests should be referred to at the point of decision making. (Roberts, 1997, p. 117) Attracting the right audience Bratton and Gold cite Gratton’s explanation of the success of Hewlett-Packard in attracting candidates. The main features of the HP way included concern and respect for individuals, linking organizational and individual objectives, measurement of needs and aspirations and sensitivity to employee feelings about their work (2001, p. 196). These values were translated into the all activities related to HRM and led to the creation of the ideal candidate. Internal process efficiency Efficiency within the organization are demonstrated in the speed with which candidates are called upon, interviewed and converted to employees. Metrics like candidate-offer ratios and time lag between a vacancy arising and getting filled provide relevant functions with impetus to force efficiencies into the system. Google Google’s overall objective of growth has a key focus area of new product development. The company aggressively develops prototypes for use by its worldwide audience. Feedback is received and serves as the base for perfecting the product and offering it on a commercial basis (Scott, 2008, p. 39). The strategy for talent engagement is to make the best possible hiring decisions and reduce attrition cost. Rigorous hiring practices have served to make it possible to attract highly qualified people into the business (Scott, 2008, p. 61). Google takes pains to create an image of providing a workplace culture that suits diverse needs. This is brought out by a variety of activities that lead to positive image building about the organization. As a recruiter, Google opts for a mix of innovative and common practices to attract the attention of potential candidates. The company prefers to receive resumes directly from interested candidates and visits institutes for recruiting fresh graduates. It manages cost by creating interaction opportunities between company and potential employees. Dr. Sullivan recounts the phenomenon of innovative recruitment strategy in Google. The strategy covers all aspects of the individual’s working experience. Job design has been conducted to ensure individual learning by each employee and consequent retention and advocacy that leads to attraction of relevant talent. Interesting projects, continuous learning and constant challenge leads to the introduction of new applications and designs to attract a larger audience online and retain the people who have worked on the project. The concept ‘20 percent work’ allows the employee to conduct research fully funded by the employer. As a result of this approach, 2 new applications were set up on a commercial basis. The innovative work culture has led to a situation of almost nil attrition at a time when the Information Technology industry is undergoing a dearth of skilled professionals. This supply chain model works on the basis of efficiency within and between roles to provide seamless service to the business. The recruiting model adopted is to break the activities into specialized roles that are connected with divisions and business units. The recruiters are put through a recruiter training before they start on the job. The recruiting function is responsible for internal executive and top level recruitment at a local and international level. Recruitment is often initiated by the recruiting function through the use of tools that generate interest on the internet and enable suitable screening of potential candidates. The Google Code Jam invites bright software engineers to participate in a software writing contest with prize money attached. Brain teasers in the form of math and programming quizzes are Google Adwords allow a search for passive candidates and an active search on the internet with the use of generic keywords lists their vacancies. The ‘Friends of Google’ initiative allows for communication between organization and individuals who are interested in updates about products and events and paves the way for lasting relationship that could turn towards an employment opportunity. These recruitment initiatives are effective in identifying the right talent at no extra cost since Google is merely using its existing product base to reach the audience. Key organization members are involved in the design and strategy of innovative recruitment-oriented events. This assures the organization of the use of internal capabilities and allows a larger view of successful initiatives for future reference. Conclusion The varied approaches to connect the recruitment and selection processes to cater to organizational objectives have not been without criticism. The much touted HP way gave rise to a narrow view of an ideal employee and those who did not fit this profile found it difficult to survive in the organization (Bryman and Bell, 2007, p. 654). Google’s recruitment process tends to be slow with levels of decision making and approval sign-offs. The need of the hour is an integrated approach to recruitment that considers the various functions of the organization and draws upon the varied capabilities available within to garner the benefits strategy oriented recruitment. Word count: 2315 References Armstrong, Michael (2000), Strategic human resource management: A guide to action. Kogan Page Publishers. Analoui, Farhad, (2007), Strategic human resource management. Cengage Learning EMEA Andrews, Ann (2004), Did I Really employ you?: A step-by-step guide to effective recruitment. Maruki Books. Arthur, Diane (2005), Recruiting, interviewing, selecting & orienting new employees. AMACOM Div American Mgmt Assn, Barlow, Janelle & Stewart, Paul (2006), Branded customer service: The new competitive edge. Berrett-Koehler Publishers. Boxall, Peter F., Purcell, John & Wright, Patrick M. (2007), The Oxford handbook of human resource management. Oxford University Press. Bratton, John & Gold, Jeffrey (2001), Human resource management: Theory and practice. Routledge. Berger, Lance A. & Berger, Dorothy R. (2003), The talent management handbook: Creating organizational excellence by identifying, developing, and promoting your best people. McGraw-Hill Professional. Bryman, Alan & Bell, Emma (2007), Business Research Methods. Oxford University Press. Burke, Wyatt Warner (2002), Organization change: Theory and practice. SAGE. Chang, Richard Y. (2001), The passion plan at work: Building a passion-driven organization. John Wiley and Sons. Cooper,Cary L. & Locke, Edwin A. (2000), Industrial and organizational psychology: Linking theory with practice. Wiley-Blackwell. Edwards, Jack E., Scott, John Carlson & Raju, Nambury S. (2003), The human resources program-evaluation handbook. SAGE. Peck, Jamie (1996), Work-place: The social regulation of labor markets. Guilford Press. Pfeffer, Jeffrey (1995). Competitive advantage through people: Unleashing the power of the work force. Harvard Business Press. Roberts, Gareth, Institute of Personnel and Development, (1997), Recruitment and selection: A competency approach. CIPD Publishing. Scott, Virginia (2008), Google. Greenwood Publishing Group. Sullivan, Dr. John, 2006, A look inside the Google talent machine. Human Resource Leader, Leading People and organizations. http://www.humanresourcesmagazine.com.au/articles/B1/0C0429B1.asp?Type=60&Category=1223 Thomson, Rosemary, Chartered Management Institute (Great Britain), (2002), Managing people. Butterworth-Heinemann. Read More