Recruitment Selection and Retention Presented by Nur Hasanah

Recruitment, Selection and Retention Presented by: Nur Hasanah, SE, MSc

Preface • One of the primary roles of a recruiting effort is to attract a number of qualified applicants. • However, retaining those employees selected is also an important issue.

Strategic Choices 1. Organizations can choose to “make” or “buy” their employees (that is, hire lessskilled workers or hire skilled workers and professionals). 2. Organizations make strategic decisions regarding the budget allocated for recruiting and selecting employees. 3. An organization can make a strategic choice to explore untapped labor sources.

4. Organizations make strategic decisions regarding the technological sophistication of their recruiting and selection devices. 5. An organization can choose the extent to which internal versus external recruiting methods are used (that is, recruiting within the organization or outside the organization). 6. An organization must decide whether to develop a plan to retain qualified workers.

Make or Buy “Make” hire less-skilled workers or “Buy” hire skilled workers and professionals. Make invest more in training and educational programs Buy pay more

Budget • Determine the hiring costs to control the costs. • The process of recruiting can be very expensive.

Explore untapped labor sources Handicapped Homeless Welfare recipients Refugees

Technological sophistication Computers Telerecruiting Internet

Recruiting Methods External Recruiting Internal Recruiting • Job posting • Skills inventories • Job bidding • Referrals • School and college recruiting • Advertising • Public employment agencies • Private employment agencies • Executive search firms • The internet and the www

Advantages and Disadvantages Internal recruitment Advantages Disadvantages • Employees familiar with organization • Lower recruiting and training costs • Increase morale and motivation for employees • Probability of success due to better assessment of abilities and skills • Political infighting for promotion • Inbreeding • Morale problems for those not promoted

Advantages and disadvantages External recruitment Advantages Disadvantages • New ideas and approaches • Clean slate regarding company-specific experiences from which to build • Level of knowledge and skill not available in current organization • Lack of “fit” between employee and organization • Lowered morale and commitment of employees • Increased adjustment period

Utilizing recruiting sources • Integrating both internal and external recruiting techniques.

Retaining employees Four Keys to Keep Top Performers Be a Select the company for right person which people in the first want to work place Manage the joining-up process Coaching to maintain commitment

Alternatives to recruitment • Another strategic decision businesses can make is not to recruit. • Instead, they can rely on alternative staffing options.

Common alternative staffing options Temporary workers Part-time workers Leased workers Independent contractors Outsource Employees hired on an as-needed basis. Employees who are employed on a continuing basis but work less than full time, normally less than 35 hours a week. Employees who are hired through a leasing company for a fee. Individuals who contract with multiple companies to provide a specific skill or ability. To turn over complete responsibility of a specific business function to another firm.

Evaluating Recruiting Methods • The methods used in recruiting should be evaluated periodically. • One of the most important reasons to evaluate recruiting methods is to determine the costs versus the benefits of various methods.

Selection • Selection is the process of choosing individuals who have the necessary qualifications to perform a particular job well.

The Selection Process Application blanks and resumes Verification and criminal background checks Testing Interviews Reference checks Job offer Physical examination Hire new employee

Strategies for effective recruiting and selection • Organizations in a retrenchment mode would emphasize “making” employees rather than “buying” highly trained or educated employees. • Thus little recruiting is done above the entry level, and selection is based on weeding out undesirable or unqualified applicants. • Thus new hires might be given trainability tests or intelligence or aptitude tests to identify those individuals most likely to learn from training. • To make sure the employees retained are experts, firms in this mode might emphasize training their employees.

• Organizations in a growth mode emphasize “buying” their employees rather than “making”. • Recruiting methods are sophisticated at all levels of the hierarchy, and efforts are focused on identifying appropriate skills and acquiring qualified individuals. • Thus growth firms might prefer to use work sample tests as a selection device.

• The organizational strategy not only affects a firm’s recruiting approaches and selection criteria but also affects which attitudes and personality traits are seen as the best “match” or “fit” between the applicant and the organization. • For example, employees with a need for a risk taking and a high tolerance for change and ambiguity would be well suited in an organization with a growth strategy. • Conversely, an employee with a need for structure and a low tolerance for change and ambiguity might be better suited in an organization with a retrenchment strategy.

Management guidelines 1. Managers should consider recruiting minorities, females, handicapped and older workers as the workforce demographics change. 2. Managers can often improve employee satisfaction, commitment and retention rates by promoting from within the company when feasible. 3. Career development should usually be part of any training program for new hires.

4. Preemployment forms should be free of questions that could be perceived as discriminating. 5. Affirmative action principles, if observed in the recruiting and selection process, can help to develop a more diverse workforce. 6. Measurement realibility and validity should always be considered in the recruiting and selection process. 7. The specific recruiting and selection methods should be consistent with the strategic thrust of the firm.