13 1 Part 6 Staffing System and Retention

13 -1 Part 6 Staffing System and Retention Management Chapter 13: Staffing System Management Chapter 14: Retention Management Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -2 CHAPTER THIRTEEN Staffing System Management Screen graphics created by: Jana F. Kuzmicki, Ph. D Troy State University-Florida and Western Region Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -3 Staffing Organizations Model Organization Vision and Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Planning Recruitment: Selection: Job analysis Employment: External, internal Measurement, external, internal Decision making, final match Staffing System and Retention Management Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -4 Chapter Outline n Administration of Staffing Systems u Organizational Arrangements u Jobs in Staffing u Policies and Procedures u Information Systems u Outsourcing n Evaluation Systems u Staffing Validity u Staffing Process Standardization u Staffing Process Results u Staffing Costs u Customer n Legal Mc. Graw-Hill/Irwin of Staffing Satisfaction Issues © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -5 Administration of Staffing Systems n Organizational n Jobs arrangements in staffing n Policies and procedures n Information Systems n Outsourcing Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -6 Organizational Arrangements n Staffing activities are conducted in a separate functional area of a company’s HR department n Research results u Employment and recruitment are considered core HR department functions u Staffing receives a greater percentage of total HR budget than other functions -- 20% of total budget n Exh. 13. 1: Example of HR Department and Employment (Staffing) Function Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -7 Exh. 13. 1: Example of HR Department and Employment (Staffing) Function Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -8 Jobs in Staffing n Entry occurs as specialist in recruiting and interviewing n Mobility may involve both traditional and nontraditional career tracks n Jobs are becoming more customer focused and facilitative n Increasing numbers of jobs are found in staffing firms n New type of job -- Chief Talent Officer or VP for Talent Acquisition n Exhs. 13. 2 and 13. 3: Staffing Jobs Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -9 Policies and Procedures n Indicate desirable courses of action and steps to implement action u Policy Ø Guiding principle or objective sought through appropriate actions u Procedure Ø Prescribed steps of acting in similar situations n Exh. 13. 4: Staffing Topics in Compu. Serve’s HR Policy Manual Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -10 Information Systems Staffing activities generate considerable information n Issue -- Types of information to generate, and how to file, access, and use it n In small organizations, information system will likely be a paper-based, manual system n In large organizations, the information system will likely involve n u Conversion to electronic information and u Automation of staffing tasks and processes n Exh. 13. 5: Computerized Staffing Tasks Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -11 Outsourcing n Refers to contracting out work to a vendor or thirdparty administrator n Outsourcing of HR functions is increasing n Types of staffing activities outsourced u Outplacement, relocation, testing, recruitment and staffing, use of temporary employees, updating affirmative action plans, and applicant databases n Strategic and operating reasons to outsource u Expertise, flexibility, time savings, service quality, reduction of legal liability, and cost reduction Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -12 Evaluation of Staffing Systems n Staffing validity n Staffing process standardization n Staffing process results n Staffing costs n Customer Mc. Graw-Hill/Irwin satisfaction © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -13 Staffing Validity n Concept u Degree to which selection techniques used accurately match people’s qualifications to job requirements Ideally, a company only uses selection techniques with demonstrated validity n Research related to use of validation studies n u Fewer than 25% of companies conduct validation studies u Most valid techniques are not the most widely used n Potential outcomes of not conducting validation studies u Lack of knowledge of success in matching people to jobs u Lack of information of how to improve matching process u Lack of evidence to support legal challenges Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -14 Staffing Process Standardization n Concept u Consistency n of operation of a staffing system Reasons to use a standardized staffing system u Ensures same KSAO information is gathered from all applicants u Ensures all applicants receive same information u Enhance applicants’ perceptions of procedural fairness of staffing system and decisions u Less Mc. Graw-Hill/Irwin likely to generate legal challenges by applicants © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -15 Staffing Process Standardization: Steps to Evaluate Standardization 1. Map a flowchart of staffing process used for a specific job / job category 2. Develop a list of steps followed and actions taken during process 3. Identify actual deviations based on flowchart of staffing process 4. Analyze deviations and determine reason(s) for occurrence 5. Make changes in staffing system to reduce deviations and enhance standardization Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -16 Staffing Process Results n Quantitative indicators indicate effectiveness and efficiency of staffing system u Exh. n 13. 6: Evaluation of Staffing Process and Results Staffing metrics are useful barometers to gauge pulse of staffing flow u Provide objective, “bottom line” results u Useful for comparative purposes Ø Two different business units on basis of yield ratios Ø Trend in same staffing system over time u Exh. 13. 7: Staffing Metrics: Average Time and Cost Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -17 Evaluation of Staffing Systems: Staffing Costs and Customer Satisfaction n Staffing costs u Difficulties exist in determining cost estimates Ø Lack of common approach to assess costs Ø Costs vary by organization size, industry, and labor market conditions n Customer satisfaction u Managers Ø Exh. u Job 13. 8: Examples of Survey Items. . . applicants Ø Exh. Mc. Graw-Hill/Irwin 13. 9: Selection Fairness Survey. . . © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -18 Legal Issues n Records and reports n Audits n Managing Mc. Graw-Hill/Irwin legal compliance © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -19 Legal Issues n Records and reports u Creation and maintenance of records Ø Four purposes of records - p. 646 Ø Exh. 13. 10: Federal Record-Keeping Requirements u Privacy concerns u Preparation Ø Exh. of reports 13. 11: Employer Information Report EEO-1 Form n Audits Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -20 Managing Legal Compliance: Current Practices n n n n Virtually all companies sought legal consultation on HR issues 26% had an in-house attorney; 22% of those housed attorney(s) in HR department 37% specified circumstances in which an attorney must be consulted Seeking legal guidance was prompted by new laws, complaints, and changes in HR policies and procedures Legal guidance was not usually sought on pending hiring or promotion decisions but was sought at onset of discrimination and negligent hiring complaints Staffing issues subject to legal review -- employee handbooks, personnel forms, EEO/AA plans, preemployment tests Planned legal audits of HR department were rare Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -21 Managing Legal Compliance: Elements of Legal Compliance System n Key decisions in determining type of legal system u Will company use in-house attorney(s) or external counsel? u Will company establish formal compliance systems or handle matters on ad-hoc basis? u How much will legal compliance be a formal area of responsibility for managers; how will they be assisted? u How will company conduct investigations of employee complaints? u Should company establish a dispute resolution process? If yes, what approach(es) should company take? Union employees -- Grievance procedure stipulated in contract Ø Nonunion employees -- ADR procedure Ø è Exh. 13. 12: Alternative Dispute Resolution Approaches è Exh. 13: Example of ADR Procedure Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -22 Exh. 13: Example of ADR Procedure Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

13 -23 Managing Legal Compliance: Arbitration n Employer and employee (or job applicant) agree to submit dispute to neutral third-party who issues final/binding decision Agreements often include statutory discrimination claims -employee agrees not to pursue charges by any means except arbitration Suggested standards for agreement to be enforceable u Agreement must be “knowing and voluntary” u Arbitrator must be a neutral u Process should provide for more than minimal discovery u Same remedies as permitted by law should be allowed u Employee should have right to hire an attorney and employer should reimburse employee a portion of attorney’s fees u Employee should not have to bear excessive responsibility for cost of arbitrator u Types of claims subject to arbitration should be indicated u There should be a written award issued by arbitrator Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.