Existing Hiring Processes in the Company - Assignment Example

Contents Contents Introduction 2 The Problem 3 5 Discussion 5 Existing Hiring processes 6 Job s 7 Selection Methods 7 Proposed Changes 8 Bibliography 10 Appendix 10 Abstract XYZ Company (you can put your desired name here) is currently facing high employee turnover and is failing to retain high performing employees. A closer analysis of the overall recruitment process indicates the lack of the involvement of the line mangers at various stages of the recruitment as well as the absence of behavioral and cognitive tests to be applied to initially screen out the employees. This proposal suggest that the organization must revamp its compensation structure and bring it in-line with the industry practices besides ensuring that it implement different behavioral and screening tests to find the right employees. It also need to intrinsically motivate its employees by offering them better chances of training and development so that their skills can be upgraded and they become more productive. Introduction Organizations, in a complex competitive world have to take into consideration different factors which allow them to develop their core competencies. Over the period of time, the strategic role of HRM within the organization, it has became really critical for the organizations to actually look for new ways of improving employee performance and implement processes and systems which can increase the productivity of the employees. The issue of performance therefore is of paramount importance for the organization as a whole in order to ensure that it generates the desired level of performance. (Collins, 2007) One of the problems which organization is currently facing is that its overall employee selection methods are not entirely efficient and often result into high employee turnover. High employee turnover often therefore result into the productivity losses as well as engage organizational resources on potentially unproductive activities of finding right employees for the job. As such it indicates that the HRM has to play significant part in ensuring that the organizations must take into consideration the factors which can be helpful in retaining the employees and ensuring that they remain productive and help achieve the organization its strategic objectives. This internal memo therefore has been prepared with the objective of briefing the management regarding a potential problem and what actions can be taken in order to ensure that the organization continue to achieve its objectives while at the same time ensuring that the employee productivity remain at the desired level along with acceptable level of employee turnover. The Problem XYZ Company (You can put the name of your choice) is currently facing high employee turnover and the recent hires have left the organization within six months of joining the company. This high ratio of employee turnover therefore indicates towards some problems in our selection and recruitment processes as well as the overall HRM strategy. A comparative analysis in the industry would suggest that competitors might be offering higher and better compensation to the potential employees and therefore were able to attract and retain them. This problem therefore requires that the company must reconsider many aspects of its HRM policy and make drastic changes in its compensation structure in order to ensure that the employees are retained. No of Employees Interviewed No of Employees hired No. of employees left 20 10 4 The above table indicates a rough estimation of the overall hiring activity within last few months and depicts a very different picture for the organization to ponder upon. Despite the fact that organization put significant efforts of the organization in overall recruitment process it may not be able to attract and retain the employees. The above graph shows the comparison between the average compensation by the Company and the average compensation by the industry. Firm is currently paying $1000 per month for an average job however, industry is offering $1200. Discussion Productivity loss due to the inefficient selection process is one of the main issues faced by the organizations. The major problem with our organization is the higher employee turnover therefore it is resulting into the significant bottleneck in the overall processes. This is significant due to the fact that high employee turnover result into the break into the normal day to day activities and company has to go through the whole cycle of the recruitment again and again in order to ensure that the right kind of employees are hired. (Dayan, Fox, & Kasten, 2008) Recruitment is a critical process as it allows the organizations to find the right kind of employees for right kind of jobs. However, it is a very systematic process and requires a deeper understanding of how the different organizational dynamics work and how HRM can contribute towards the achievement of the recruitment objectives. Recruitment is so significant that organizations must have to ensure that the people who have been hired for the job are the right kind of people and are best strategic fit with the overall organizational objectives. (Blits & Gottfredson, 1990) It is in this perspective that the organizations basically have to ensure that they hire the right kind of employees in order to achieve the desired level of the productivity. What is significantly more important is the assessment of different attitudes and skills of the employees in order to ensure that the employees are easily fit into the overall organizational environment as well as the culture and contribute positively towards the success of the organization. (Evuleocha, Ugbah, & Law, 2009) Existing Hiring processes The existing hiring processes at the organization are not probably in-line with the overall organizational strategy and direction. The current recruitment processes involve hiring employees based on their experiences and without significant effort being placed into assessing the connection between the overall job requirement and the current skills of the potential employees. Finding right kind of employees is significantly more challenging in an environment which is more competitive. Skilled employees always look for more lucrative opportunities to relocate to the new jobs therefore the retention of the employees is a challenge which organizations have to manage. In order to ensure that the employees are retained, the overall recruitment process shall be developed in such a manner that it helps attract and retain the employees. The current selection process suggests that the resumes are initially screened by the HRM and they are subsequently sent to the line managers. However, during this process, some of the important criteria are left behind and the lack of involvement of the line managers at this initial stage therefore indicate that initial screening process is conducted solely on based on the hard facts about the applicants without giving a cogent thought to the soft skills of the employees and their strengths which can be helpful for the organization in the long run. It is critical to note that the organization therefore needs to adapt different techniques such as conducting cognitive testing, assessment centers etc in order to understand the overall behavior of its potential employees and how such behavior can be molded in order to make the employees a better fit within the organization. The use of assessment centers will be more cost effective method because it can allow the organization to economically screen out right kind of employees while at the same time keeping its costs under control. Job Descriptions A closer analysis of the existing job description process will indicate that the input of the line managers is really restricted. Most of the job descriptions are prepared superficially and HR managers need to deeply probe into the overall nature of the work and skills required to complete the tasks easily. The lack of the involvement of the line managers also indicates the lack of coordination between the HRM and other departments. Job descriptions are prepared by keeping in view the industry practices and the emphasis on the overall organizational culture is less significant. Selection Methods As discussed above that the selection of the employees take place mutually between the HRM and the respective departments. However, there is a lack of use of the tools such as pre-employment screening tests to assess the cognitive skills of the employees and screen out those employees which are better fit with the organization. There are three different layers or levels of employees within the organization for which different selection methods are used. What is significant however, is the lack of an standardize tool within the organization which can help HR managers to initially assess the suitability of the candidates and their overall fit with the organization. It may be easier to find an employee with the right kind of job skills however, to ensure that the employee is also a right fit with the overall organizational strategy is critical also. This is more significant when organization basically attempt to employees at higher level of management. Proposed Changes It is really important that the firm must revise its compensation structure and bring it in-line with the overall industry compensation. Since firm is facing high employee turnover, it must also ensure that its compensation serves as an added motivation for the employees in order to retain them. Further, organization need to develop a standardized set of initial screening tests in order to screen out the right kind of employees to take them to the next stage of selection. Short listing candidates based on their resumes and core skills may not sometimes provide a clear glimpse into the overall attitude of the employee towards the work and organization as a whole therefore it is critical that behavior assessment tests are developed and implemented in their true spirits. (Gillian, 2002). Firm also need to ensure that the involvement of line managers is significant during the whole recruitment cycle. Involving line managers from the start of the application process will allow them time to better evaluate the skills of the potential employees thus they will be able to attract the kind of employees which will retain with the firm. since line managers also have the intuitive understanding of the soft skills required to complete the job therefore they are always in better position to evaluate different attitudes and skills of the employees before they are hired. This will allow the organization to actually hire only those employees who have the desire and will to stay at the organization and contribute towards its success. For this, it is however, critical that the firm must also implement a better training program. Bibliography 1. Blits, J., & Gottfredson, L. (1990). Employment testing and job performance. Public Interest, (98), 18-25. Retrieved from Academic Search Premier database. 2. Collins, S. K. (2007). Employee Recruitment: Using Behavioral Assessments as an Employee Selection Tool. Health Care Manager , 26 (3), 213-217. 3. Dayan, K., Fox, S., & Kasten, R. (2008). The Preliminary Employment Interview as a Predictor of Assessment Center Outcomes. International Journal of Selection and assessement , 16 (2), 102-111. 4. Evuleocha, S. U., Ugbah, ,. S., & Law, S. (2009). Recruiter Perceptions of Information that Employment References Should Provide to Assist in Making Selection Decisions. The entity from which ERIC acquires the content, including journal, organization, and conference names, or by means of online submission from the author. Journal of Employment Counseling , 46 (3), 98. 5. Gillian, J. (2002). Effective Hiring Practices. Professional Safety, 47(11), 46. Retrieved from Academic Search Premier database. Appendix A) Employee turnover table1 Source: http://www.hrcapitalist.com/2009/04/macro-employee-turnover-statistics-worthless-until-you-show-me-the-.html Read More