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Human Resources

  2. 2. TheHumanResource PlanningProcess
  3. 3. Humanresourceplanningistheprocesswherebyorganizationsdeterminethe staffingsupporttheywillneedtomeetbusinessneedsandcustomerdemands. Thereareavarietyofconsiderationsthatimpactthisplanning,including impendingretirementsandtransitions,theavailabilityofemployeeswithcertain skillssetsandchangesintheenvironmentthatmayrequiretrainingforexisting employees.
  4. 4. Humanresourcesplanningisoneoftheimportantpartofoverallhuman resourcessystemoftheorganization.Thequalityofthissystemdecidesthe overallhumanresourcesqualityintheorganization. Itisveryimportanttostudyandevaluatehumanresourcesplanningprocessin ordertounderstandtheoverallstatusofhumanresourcessysteminan organization.Thisisaforwardlookingprocesswhichdecidesfuture requirementandqualityofmanpowertoachieveorganizationalgoals
  5. 5. Forecasting Forecastinghumanresourcedemandistheprocessofestimatingthefuture humanresourcerequirementofrightqualityandrightnumber. Demandforecastingisaffectedbyanumberofexternalandinternalfactors. Intheabsenceofthisplanitisverydifficulttoprovidetherightkindof peopleattherighttime.
  6. 6. FACTORS AFFECTING HR DEMAND FORECASTING HumanResourceDemandForecastingdependsonseveralfactors,someof whicharegivenbelow.  Employmenttrends;  Replacementneeds;  Productivity;  Absenteeism;and  Expansionandgrowth.
  7. 7. labor demand forecasting is about finding the right number of people, with the right skills, at the right time. Businesses don’t want a surplus of employees nor do they want gaps in their employee pool which results in reduced productivity, performance and profitability. When business owners are considering labor demand forecasting, their first questions are likely to be:
  8. 8.  Where are we going as a business – what is our intended growth in the next 3-5 years (or longer)?   Will we be developing or expanding our services or product range?  What technological advancements may affect what we do and will this affect our need for differing staffing levels?  What are our absenteeism and turnover rates like?  Do we have sufficient management support to progress our objectives and will they be behind the plans?
  9. 9. When undertaking labor demand forecasting there tend to be two approaches – quantitative and qualitative. The quantitative approach is often led by HR and computer specialists who focus on this area and who use a variety of statistical and mathematical approaches to determine the needs, including indexation (forecasts determined in relation to one or more fixed organizational indices) or trend analysis (forecasts based on the study of past human resource growth). These are often complex and expensive – but a real need, especially for larger organizations.
  10. 10. Small and medium sized businesses (SMEs) often prefer to rely on qualitative approaches to determine labor demand forecasting. These approaches tend to use experts within the business to determine future need i.e. the employees, managers and business owners themselves. Popular approaches include the Delphi Technique (uses problem solving and expert consultation methods in a structured manner); managerial judgement (business owners and managers assess their own labour requirements taking into account factors such as retirements, promotions, new technologies etc); and the Nominal Group Technique (using group processes to compare predictions on the staffing needs for the future).
  11. 11. One of the major advantages of using qualitative methods, especially with SMEs is that the techniques used involve the people that are likely to be affected by any changes to the business in relation to human resources practices. Therefore, there is likely to be greater commitment and acceptance of policies and practices by those involved. One of the downsides however is the time and cost of involving employees, managers and business owners in the processes. Having a HR Consultant on hand, able to lead the process and adopt the most appropriate processes to lead businesses through these processes, can help to achieve effective forecasting of future employee needs.
  12. 12. Labor Supply Analysis Once a business has forecast what it’s future requirements are likely to be, it is then important to determine what number of employees will be needed, with what skills and when. Labor supply may come from within the organization or outside. The first step therefore, is to do an analysis of the skills currently within the business. If skills are not available internally, then they may need to be sought externally. Once looking externally factors such as availability of skills within the job market will be a major consideration.
  13. 13. Balancing the Supply and Demand If a business is short of employees to achieve the business objectives, effective recruitment strategies will need to be devised. Considerations will then relate to job design, career development, flexible work options, remuneration and reward programs. If a business has too many employees, effective strategies will need to be created to manage retirements, redundancies and if appropriate, dismissals.
  14. 14. Basedontheforecastsforlabordemandandsupply,theplannercan comparethefigurestodeterminewhethertherewillbeashortageor surplusoflaborforeachjobcategory. Determiningexpectedshortagesandsurplusesallowstheorganizationto planhowtoaddressthesechallenges. Determining Labor Surplus or Shortage
  15. 15. Options for Reducing a Surplus Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining
  16. 16. Options for Avoiding a Shortage Overtime Temporary employees Outsourcing Retrained transfers Turnover reductions New external hires Technological innovation
  17. 17. Changing workforce demographics Age distribution – considerations for businesses may include:  Do we have many/any employees nearing retirement?  Do we have the skills and experience within the business to take on the roles of those retiring?  What valuable information and experience do we need to capture before those retiring leave the business?  What succession plans do we have in place?  How are we going to successfully manage and integrate those joining the business who are already in their 60s + ?
  18. 18. Retirement isn’t necessarily at 65 years and the need to find employment and gainfully employ older workers is going to be a major consideration for individuals. If younger people are heading overseas with prospects of better pay and work experience, how will we find apprentices and those prepared to commit long term to our business? How do we manage and create mutual benefit when employing Generation Y?
  19. 19. Education The level of education levels is rising significantly and employers need to know how to address this. We need to keep our employees challenged and provide opportunities to utilize the skills gained through training and education. If positions are not available to highly qualified candidates, they will likely seek employment with your competitors or go overseas. Taking advantage of increased skill levels should be seized as an opportunity to further develop the strengths and competitive advantage within your business. Though it is important to understand that in demanding more challenging positions, employees will likely seek career progression and salaries to match.
  20. 20. Many more roles are being created within the service industry, with emphasis being on technical and professional positions. In contract, there is a decrease in manufacturing and agricultural roles. If businesses seek employees to work in manufacturing roles it is important to determine where in the future these employees will come from. How will businesses adapt remuneration packages, career development plans, re-design jobs to ensure that jobs are satisfying, offer growth yet still ensure productivity and profitability for businesses. The emphasis on flexible working options is also a major consideration for businesses – be this in the form of allowing employees to work from home or work flexible hours. Pluses may include reduced overheads, less time spent in traffic when commuting to work and greater job satisfaction for many – though equally, some employees may become isolated working on their own, which could result in decreased job satisfaction and reduced productivity. Job Trends
  21. 21. Goal setting and Strategic Planning
  22. 22. Drawing up action plans and setting goals are the natural follow- up measures after evolving strategies. The next step is framing action plans and involving all employees so that they can responsibly fulfill their part towards accomplishing the set goals. Business organizations are fully aware that all business goals – be they short term or long term – have to be achieved by the employees or rather the human resources at their command.
  23. 23. A sense of dedication and commitment on the part of each individual employee is, therefore, crucial for a company to achieve its business goals. It is the ultimate responsibility of the HR managers to instill in all employees a spirit of oneness and a feeling of belonging to the company. HR management professionals have increasingly begun to realize this type of emotional integration among employees is the key to the organization's success.
  24. 24.  The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses.  The goals should come directly from the analysis of supply and demand.  For each goal, the organization must choose one or more human resource strategies.  Organizations should retain and attract employees who provide a core competency (what makes it better than competitors)
  25. 25. Downsizing in any business is generally not viewed by employees or management as a positive practice, although it can result in many positives, such as staying in business, cost savings and business strength. Managers are loathe to be the ones to carry out the process and typically leave this unwelcome duty to human resources professionals. Company downsizing can cause rising stress levels and increased workloads for HR departments. With knowledge and skill, however, HR can successfully navigate through workforce layoffs.
  26. 26. • Downsizing strategy – strategy to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization Survivors – employees remaining with an organization after a downsizing Downsizing- activities undertaken to improve organizational efficiency, productivity, and/or competitiveness that affect the size of the firm's workforce, it's costs , and it's work processes.
  27. 27. • Alternatives to Downsizing: - Hiring freeze - Mandatory vacation - Reducing the workweek - Reducing overtime - Reducing salaries (and extending if necessary) - Short-term facility shutdowns - Obtaining cost-reduction ideas from employees - Voluntary sabbaticals - Lending employees - Exit incentives
  28. 28. • Planning for Downsizing • If an organization has decided to embark on a downsizing strategy, planning is essential. Here are some key issues: -Determining how many people will lose their jobs -Determining who will be let go; and on what basis (seniority, performance, or potential) -Determining how the reduction will be carried out; which methods will be used (attrition, early retirement, severance, layoffs or termination) -Determining the legal consequences; will there be violations (wrongful dismissal, employment standards , collective agreement or human rights)
  29. 29. -Designing current and future work plans (Represents a key challenge for the organization and is frequently neglected) -Implementing the decision -Performing follow-up evaluation and assessment of the downsizing efforts (This step is crucial, but is often ignored) Downsizing and restructure has a huge impact on those employees left. Human Resources and the perception employees have. Personally I had to downsize several employees in 2011 and the impact on HR was very negitive. Though most employees understand it may be required it still has a negitive impact on the HR department and how other see you.
  30. 30. • Survivor Reactions: There is considerable evidence that downsizing may produce a number of dysfunctional behaviours among the employees who remain with the organization, such as: - Negative attitudes and behaviours - Reduced performance capabilities - Lower organizational productivity • A study has also found that a higher level of job insecurity was associated with: - Less effort to ensure that the quality of the individual's work was higher than his or her peers - A lower score on "organizational citizenship behaviour" (which involves engaging in activities such as volunteering for thingsnot required by the organization or helping out new employees) - Lower organizational loyalty (commitment to the organization) - Higher levels of career loyalty (a focus on the individual's career) - More job-search behaviour (seeking alternative employment)
  31. 31. • Downsizing and "High Involvement" HRM High Involvement Human Resource Management-a commitment to human resource management practices that treat people as assets. Human resources experts have a considerable role to play in downsizing and restructuring: Advising on restructuring the organization to maximize productivity and retain quality performers. • Develop skill inventories and planning charts to evaluate the impact of downsizing on HR needs and projected capabilities. • Communicating the downsizing decision effectively. • Evaluating the downsizing program after completion. Includes the assessment of who left the organization and who remains. Key issues include job design and redesign, worker adjustment to change, the need for employee counselling, organizational communication and a review of the appropriateness of HRM policies and programs.
  32. 32. • Human Costs of Downsizing: As Cascio suggests, most reduction programs fail to meet their objectives: "Study after study shows that following a downsizing, surviving employees become narrow-minded, self-absorbed, and risk averse. Morale sinks, productivity drops, and survivors distrust management." There are some benefits of losing a job: Time to reflect • Grow new ideas, direction and career plan • Get out of a job that was substandard • Spend more time with family and hobbies
  34. 34. A retirement buyout is a form of early retirement package that employers occasionally offer workers. Typically, they are given to older workers already nearing retirement. Buyouts amount to compensation packages designed to provide incentives for employees to retire ahead of schedule. Companies often create retirement buyouts for older employees to reduce their payroll, removing those who have earned larger compensation packages because of their tenure and experience.
  35. 35. Voluntary or Forced Retirement buyouts typically are voluntary, but they can be forced, too. In a voluntary retirement buyout, an organization offers compensation incentives to employees who have the option of taking or leaving the offer. The buyout offers might be tailored to specific employees, or they might be applied to any employee that fits a certain profile. The buyout offers might be available for only a short period of time, or they might be part of an ongoing program. Forced retirement buyouts are more akin to layoffs in that workers must accept the buyouts. However, the design of the buyout typically gives workers some of the benefits of retirement, including years of credit toward pension benefits, and the workers targeted are nearing retirement.
  36. 36. Financial Impact The most significant potential benefit of a retirement buyout is the financial reward that accompanies it. Retirement buyouts tend to be generous because employers are hoping to persuade workers to accept payments and sacrifice future compensation. The size of a buyout offer's financial component typically is tied to a worker's years of experience at an organization. Compensation can come in the form of a lump sum or an annuity. The drawback is that workers have to give up the security and size of their current salary earlier than they likely had planned.
  37. 37. Health Insurance Implications Organizations differ in the way that they handle health insurance coverage for retirement buyout candidates. Some organizations provide low-cost or no-cost health insurance as part of retirement buyout offers, extending coverage until the workers turn 65 years old and become eligible for Medicare, according to, a website of the National Endowment for Financial Education. However, other organizations do not offer aid for health insurance costs in their buyout packages, creating a new financial burden for the retirees.
  38. 38. Layoff Risk A retirement buyout offer might not make sense for some employees, but declining a retirement buyout carries a certain risk. In particular, retirement buyouts sometimes are strategic steps that a company takes when it is struggling and attempting to cut costs. The buyout offer could prove to be one of multiple workforce reduction steps. Retirement buyouts do not always precede a wider reduction in staff, but in some cases substantial retirement buyouts do precede layoffs. Workers, therefore, face the risk of turning town a retirement buyout offer that is superior to the severance package that comes with later layoffs.
  40. 40.  Temporary employees are hired to assist employers to meet business demands yet allow the employer to avoid the cost of hiring a regular employee. Sometimes, it is the expectation of the employer that if the temporary employee is successful, the employer will hire the temporary employee.  A temporary employee who demonstrates a good work ethic, fits the company culture, learns quickly, regularly lends a helping hand, and doesn't need a manager to tell her what to do next, may receive an offer of employment.  This is a win for both the employer and the temporary employee.  Most frequently, though, hiring temporary employees serves a business purpose for the company and the objective is to hire temps rather than taking on the cost of a regular employee.
  41. 41.  In some instances, the temporary employee may want to work part-time without committing to a full time job within a company.  Temporary employees, who are pursuing a career as a freelance writer or developing their own product with the intent to start a company, are good prospects as temporary employees.  Business purposes include: seasonal customer demand, temporary surges in manufacturing orders, an employee on sick or maternity leave, and short- term, clearly defined work such as that of a census worker.  Temporary employees allow employers to maintain a cushion of some job security in employment for regular workers. Employers can let the temporary employees go first in a business or economic downturn.
  42. 42.  Temporary employees work part or full-time. They rarely receive benefits or the job security afforded regular staff. A temporary assignment can end at any time depending on the employer’s needs.  In other ways, temporary employees are often treated like regular employees and attend company meetings and events.  When using temporary employees or seasonal employees, do not feel that you are compelled to hire them just because they’ve worked for you for ninety days or more. In fact, examine the success of a temp at thirty days.  If you are not certain that he will make a superior employee, replace him with another temp. Your supervisors tend to settle for good enough because the temp comes to work every day and does the job.
  43. 43.  Employers will experience increased difficulty when scheduling temporary employees due to the rules of the Affordable Care Act (ACA). Here's a summary of how it affects how you schedule temporary employees and how many days they can work before they are eligible for health care through the temporary employer.  Temporary employees are hired directly by the company or they are obtained from a temporary staffing agency. If an agency provides the temporary employee, the employer pays a fee over and above the compensation collected by the employee.  Temporary employees, who work through an agency, may have paid benefits such as health care insurance. These employees remain the employee of the agency, though, not the employee of the company where they are placed.
  44. 44. Outsourcing refers to an organization contracting work out to a 3rd party, while offshoring refers to getting work done in a different country, usually to leverage cost advantages. It's possible to outsource work but not offshore it; for example, hiring an outside law firm to review contracts instead of maintaining an in-house staff of lawyers. It is also possible to offshore work but not outsource it; for example, a Dell customer service center in India to serve American clients. Offshore outsourcing is the practice of hiring a vendor to do the work offshore, usually to lower costs and take advantage of the vendor's expertise, economies of scale, and large and scalable labor pool.
  45. 45. Benefits There are several reasons for companies to both offshore and outsource. Outsourcing Benefits  Why do companies outsource? There are several reasons why a company might outsource. While this can be a politically sensitive topic, management experts generally agree that outsourcing - when done right - increases competitive advantage with a natural division of labor that evolves in any society. Reasons for outsourcing include:  Cost advantage: Costs are arguably the chief motivation behind outsourcing. Often companies find that contracting work out to a 3rd party is cheaper.
  46. 46.  Focus on core competency: There are a lot of business functions in a company. For example, human resources, information technology, manufacturing, sales, marketing, payroll, accounting, finance, security, transportation and logistics among others. Most of these are not "core" to the company. A "core" activity is one which offers the company competitive advantage over its competitors. It is an activity that the company does better than the competition, which is the main reason its customers do business with the company. Having to handle non-core functions is a distraction, so many companies outsource them.  Quality and Capability: Often companies don't have in-house expertise for certain activities. In these cases, it is more efficient to outsource, and resulting products and services tend to be of higher quality when provided by outsourcing vendors.
  47. 47.  Labor flexibility: Outsourcing allows a company to ramping up and down quickly as needed. For example, a company may need a large number software programming experts for 6-8 months to develop an application. It would be infeasible to hire people for only 6 months. Outsourcing, however, can provide flexibility so the company does not have to worry about hiring and firing.
  48. 48. Offshoring is when a business relocates or moves some or part of its operations to another country. Outsourcing involves contracting with another company (onshore or offshore) to perform some business-related task. For example, a company may decide to outsource its accounting operations to a company that specializes in accounting, rather than have an in-house department perform this function. Thus a company can outsource the accounting department, and if the function operates in another country, this would also be offshoring. The focus of this chapter will be on the HRM function when work is offshored.
  49. 49. Outsourcing refers to an organization contracting work out to a 3rd party, while offshoring refers to getting work done in a different country, usually to leverage cost advantages. It's possible to outsource work but not offshore it; for example, hiring an outside law firm to review contracts instead of maintaining an in- house staff of lawyers. It is also possible to offshore work but not outsource it; for example, a Dell customer service center in India to serve American clients. Offshore outsourcing is the practice of hiring a vendor to do the work offshore, usually to lower costs and take advantage of the vendor's expertise, economies of scale, and large and scalable labor pool.
  50. 50. Benefits of offshoring Offshoring provides many of the same benefits as outsourcing, including: Cost savings: Companies usually offshore manufacturing or services to developing countries where wages are low, thus resulting in cost savings. These savings are passed on to the customers, shareholders and managers of these companies.
  51. 51.  Skills: The competitive advantage of nations often means that some countries or regions develop a much better ecosystem for certain types of industries. This means there is better availability of skilled human resources in that region for specific types of tasks. For example, India and the Phillipines have a large pool of English-speaking, college educated youth; as well as a mature training infrastructure; that makes it ideal for business process outsourcing. Therefore, many companies choose to offshore certain business functions (e.g. call centers for customer support) to these locations. These can either be captive or outsourced.  Note that you do not need to outsource in order to offshore. Captive offshore units are set up to leverage the benefits of offshoring without having to outsource to vendors. This is usually done when companies believe that their offshore centers for production/service will provide them with an edge over the competition.
  52. 52. Risks and Criticism  Offshoring and outsourcing have both been subject to a lot of criticism, especially from a political standpoint. Politicians and laid-off workers often blame offshoring for "stealing jobs". Most economists, however, agree that offshoring lowers costs for companies and passes on benefits to consumers and shareholders.  There are, however, risks associated with offshoring. These include project failure due to poor communication; civil or political unrest impacting production or service delivery; arbitrary changes in economic policy of governments may force unncessary restrictions on MNCs; and poor infrastructure in the developing country may affectquality or timeliness.  While the benefits of outsourcing and offshoring largely overlap, they do not face the same disadvantages. Outsourcing, when done within the country, does not face the same political criticism of loss of jobs. Risks associated with outsourcing can largely be attributed to the vendor's lack of familiarity with the client's business. Another risk is a lack of alignment of long-term business objectives of the client and the vendor.
  53. 53. Offshoring Outsourcing Definition Offshoring means getting work done in a different country. Outsourcing refers to contracting work out to an external organization. Risks and criticism Offshoring is often criticized for transferring jobs to other countries. Other risks include geopolitical risk, language differences and poor communication etc. Risks of outsourcing include misaligned interests of clients and vendors, increased reliance on third parties, lack of in-house knowledge of critical (though not necessarily core) business operations etc. Benefits Benefits of offshoring are usually lower costs, better availability of skilled people, and getting work done faster through a global talent pool. Usually companies outsource to take advantage of specialized skills, cost efficiencies and labor flexibility.
  54. 54. IMPLEMENTING AND EVALUATING THE HR PLAN  When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals.  That person must also have the authority and resources needed to accomplish those goals.  Regular progress reports should be issued.  The evaluation of results should not only look at the actual numbers, but should also identify which parts of the planning process contributed to success or failure.
  55. 55.  HR RECRUITMENT PROCESS  The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises.  Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.  Recruitment Sources: Internal Sources  Job Posting: the process of communicating information about a job vacancy:
  56. 56. On company bulletin boards In employee publications On corporate intranets Anywhere else the organization communicates with employees
  58. 58. Recruiting Human Resources • The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. • Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
  59. 59. Figure 5.2: Three Aspects of Recruiting
  60. 60. PERSONNEL POLICIES The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
  61. 61. Personnel Policies  An organization’s personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies.  Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce.  Each of these strategies has a particular set of pros and cons. Policies should be evaluated as to their ability to support the organization’s long- term strategy.
  62. 62. Personnel Policies Internal versus external recruiting Lead-the-market pay strategies Employment-at-will policies Image advertising Several personnel policies are especially relevant to recruitment:
  63. 63. Role of Personnel Policies There are numerous laws and regulations which regulate the nature of the relationship between an employee (and volunteer, in the case of nonprofits) and his or her organization. They are intended primarily to ensure that everyone is treated fairly and equitably regardless of their race, creed, color or sexual orientation. They are intended to ensure that the treatment of employees and volunteers is based primarily on their job performance. Common types of activities guided by the laws and regulations are, for example, hiring and firing, benefits and compensation, affirmative action, rights of privacy, discrimination and harassment, and wrongful termination.
  64. 64. One of the fastest growing types of lawsuits brought by employees against their organizations is wrongful termination of employment. Other common types of lawsuits are in regard to allegations of discrimination and harassment. It is far better for organizations first to ensure that these types of improper types of behaviors do not occur, than to have to defend themselves in courts of law. The best way to ensure occurrence of proper behaviors is to enact comprehensive guidelines regarding how employees and volunteers are treated in the workplace. These general guidelines are called personnel policies. Specific sequences of activities resulting from the guidelines are often called procedures.
  65. 65. Sample List of Personnel Policies The following is a sample list of policies. Consider the following list to get an impression of some of the major policies in an organization. This list is by no means definitive for every organization. The policies developed by an one organization depend on the nature and needs of the organization. Work Schedule, Work day hours , Lunch periods Holidays Vacation Sick Time Personal Leave Leave of Absence Severe Weather Workers' Compensation Information and Procedures When there is an injury or accident on the job What is covered under Workers' Compensation Type of injury covered by Worker's Compensation Insurance Medical expenses resulting from a work-related injury
  66. 66. Training on Policies If employees’ or volunteers’ (in the case of nonprofits) behaviors do not conform to the written personnel policies for your organization, and if an employee or volunteer sues your organization, then courts will consider your written policies to be superseded (or replaced) by your employees’ or volunteers’ actual behaviors that you appeared to be permitting to occur. For example, if policies specified that employees should not discriminate on the basis of race, creed or color, yet there was a history of your employees clearly discriminating against other employees on that basis, then courts will conclude that your policies are to permit discrimination. Therefore, it is critical that employees and volunteers have clear understanding of each personnel policy and that their behaviors conform to those policies. The best way to accomplish that understanding if for employees and volunteers to be trained on the policies and for their supervisors to always be sure that policies are followed.
  67. 67.  All employees and volunteers receive an orientation that includes overview of the policies and procedures.  All employees and volunteers sign a document that indicates that they have reviewed the policies and will act in accordance with them.  Supervisors regularly issue reminders to employees and volunteers about key policies.  All supervisors themselves act in accordance with the policies.  Any violation of terms of the policies is immediately addressed with reprimand or termination of the employee or volunteer, depending on the nature of the violation.
  69. 69. Recruiting employees can be a somewhat precarious process. With the exorbitant cost of hiring and training an employee with job and soft skills matching the job description, making a mistake in this arena can substantially harm net profit for the entire year. One major consideration in recruitment is whether to hire externally or promote from within your organization. There are advantages to either method of filling openings
  70. 70. Internal Recruitment An internal recruitment strategy is characterized by promoting employees from within an organization to fill upcoming positions. Many firms use such devices as job posting boards, email flashes, intranet posts and fliers to advise existing employees of positions they may vie for. This recruitment may be in the form of creating and shuffling temporary teams to fill certain tasks or may be permanent changes. Internal recruitment may be primarily horizontal or it may be for promotions in which the promoted employee's former position may not be filled.
  71. 71. • Advantages of Internal Recruitment Internal recruitment has some natural advantages. You do not have to "reinvent the wheel" with an internal recruit. He will likely understand your business model, your culture and your processes before assuming the new position. The resulting outcome is that he will assimilate into the new position faster than a new employee who will need to be trained on the many formalities of your firm from benefits to where your fire exits are before he can begin job-specific training. These employees take longer to find, longer to train, more money to prepare for the job and may not fully integrate into your culture after all of the training process. Often, the opportunity to advance provides a strong motivation in a firm that employs a strong internal recruitment strategy.
  72. 72. External Recruitment An external recruitment strategy is one which a human resources department will systematically search the employee pool outside its own employees to fill positions. Many firms will use advertisements in newspapers, job search websites, job fairs and referrals from current employees to fill positions. Some companies will utilize a temporary employee agency to fill positions that can be completed quickly and with less company-specific skill required to complete the desired task. Other firms will use headhunters or hiring consultants to seek, screen and deliver
  73. 73. Advantages of External Recruitment External recruitment also has some substantial advantages. Unlike internal recruits, you are getting an inflow of often completely new ideas with an employee who has not been exposed or overexposed to your corporate culture. An outside prospect often yields new ideas. She may bring information or methodologies from her former employer that can be integrated into your best practices. Internal job pools may cause problems with a larger company's diversity mix, and lead to problems with the Equal Employment Opportunity Commission in terms of promoting a diverse workplace. External job recruiting allows for rebalancing in this realm if needed. External recruiting may lead to team stability, as teams may remain intact when hiring externally.
  75. 75. An intrinsic reward is an intangible award of recognition, a sense of achievement, or a conscious satisfaction. For example, it is the knowledge that you did something right, or you helped someone and made their day better. Because intrinsic rewards are intangible, they usually arise from within the person who is doing the activity or behavior. So “intrinsic” in this case means the reward is intrinsic to the person doing the activity or behavior.
  76. 76. An extrinsic reward is an award that is tangible or physically given to you for accomplishing something. It is a tangible recognition of ones endeavor. For example, it’s a certificate of accomplishment, a trophy or medal for winning the race, a badge or points for doing something right, or even a monetary reward for doing your job. Because extrinsic rewards are tangible, they are usually given to the person doing the activity; as such, they are typically not from within the person. Therefore, extrinsic rewards means the reward is extrinsic to the performer of the activity or behavior Here is an important distinction that I like to emphasize. When talking about rewards, intrinsic rewards are those that originate from within the person, and extrinsic rewards are those that originate from something beyond the person.
  77. 77. Importance of Effective Recruitment & Selection
  78. 78. Employing the right person for your small business might be the most important part of your venture. An effective recruitment and selection process reduces turnover. These processes match up the right person with the right job skills. Interviews and background checks ensure that you employ a candidate who is reliable and carries out the objectives you planned for providing quality services and goods to your customers.
  79. 79. Recruitment It is important to list the skills your new hire will need to fulfill his duties. You get much better results in your recruitment process if you advertise specific criteria that are relevant to the job. Include all necessary skills, and include a list of desired skills that are not necessary but that would enhance the candidate's chances. If you fail to do this, you might end up with a low-quality pool of candidates and wind up with limited choices to fill the open position.
  80. 80. Screening and Interview Process Your screening process provides a vital opportunity for you to focus on what candidates can offer your company. It is important that you screen heavily, either by using your own judgment or by enlisting the help of managers you trust. The interviewer must know what the job is and what will be required for a new hire to perform well. The interview process also allows you the opportunity to express your company’s vision, goals and needs. It is vital that the interview elicits responses from applicants that can be measured against your expectations for the position. If you don’t use the interview to effectively eliminate applicants who don’t fit into your company culture, you might find yourself dealing with turnover, confusion and disgruntled employees.
  81. 81. Selection When you choose a candidate based upon the qualifications demonstrated in the resume, the interview, employment history and background check, you will land the best fit for the position. Base your decisions about a specific candidate upon specific evidence rather than any gut instincts. If you hire people who can do the job instead of people you merely like, you will have higher productivity and quality in your products or services.
  82. 82. The Long Haul Your goal in hiring responsible and reliable employees should be to make your small business profitable and efficient on a long- term basis. The recruitment and selection process is the time you not only identify a candidate who has the experience and aptitude to do the job that you are looking to fill, but also to find someone who shares and endorses your company’s core values. The candidate will need to fit in well within your company’s culture. Your selection and recruitment process should provide you with an employee who adapts and works well with others in your small business. Failure to recruit and select for the long term can result in high turnover.
  83. 83. • Reputation When you effectively recruit and select the right employee, there is a domino effect. Your new hire will do her job well. Employees will see that you make wise decisions. You will gain respect from your workforce, and you will get higher productivity as a result of that respect. This positive attitude will affect the quality of your products or services, and ultimately, your customers' perceptions of your company.
  85. 85. Recruiting yield pyramid The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted
  87. 87. The balanced selection of the recruitment sources to be used in the organization is a key success factor for the effective recruitment process. The organization can choose from many recruitment sources as it can optimize the recruitment process. The recruitment sources drive the costs, length and quality of the job candidates (including the number of job resumes needed to handle with). The organization has to choose the recruitment sources, which work best for the industry. The organization has to find the unique recruitment sources for the key job positions as it attracts the best job candidates sooner than the competitors in the same industry, location and function.
  88. 88. Recruitment Sources Evolution Some years ago, the selection of the recruitment sources was easy. The web job boards were not in place and newspaper job advertising was ruling the game. It has changed so much from those times. Almost every company had a specific recruitment agency, which was able to handle the newspaper job advertising.
  89. 89. Recruitment Sources: Internal Sources • Job Posting: the process of communicating information about a job vacancy: – On company bulletin boards – In employee publications – On corporate intranets – Anywhere else the organization communicates with employees
  90. 90. Advantages of Internal Sources 1. It generates applicants who are well known to the organization. 2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations. 3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.
  91. 91. One in Three Positions Are Filled with Insiders
  92. 92. Recruitment Sources: External Sources Direct applicants Referrals Advertisements in newspapers and magazines Electronic recruiting Public employment agencies Private employment agencies Colleges and universities
  93. 93. Figure 5.3: External Recruiting Sources – Percentage of Employees Hired
  94. 94. The traditional recruitment sources were: Newspaper Job Advertising Recruitment Agencies (Job Agencies) Headhunters (Executive Search) Referral (Employee’s Recommendations) The modern recruitment sources are: Web Job Boards LinkedIn Professional Communities Web Sites Facebook
  95. 95. Traditional versus Modern Recruitment Sources The traditional recruitment sources are not dead. They still deliver the job candidates, and they help to build a quality brand name on the job market. The newspaper advertising is not the best recruitment source anymore, but it works well for many job positions. The modern recruitment sources provide the dynamic job candidate who are familiar with modern technologies. On the other hand, HR Recruiters have to be competent to use modern technologies, and they have to learn the art of digging specialized web sites to attract the best talents from them. There is no winning recruitment source at the moment. Many HR Recruiters believed the Recruitment Agencies will disappear quickly. They are still with us. The recruitment agencies still deliverer job candidates to companies.
  96. 96. Here are the top 10 recruitment sources your company should continuously leverage to reach the best talent out there. Job Boards. Perhaps one of the main recruitment sources, job boards have grown thanks to the ease of online job searches. Think of where your talent pool would go to find a job—if you’re looking for a graphic designer, post your job on boards that designers usually visit. Post jobs in general job boards as well, especially when looking for entry-level candidates, as they tend to go there first. Company Website. Posting all job opportunities on your company’s website is a given. Whether candidates arrive there directly or are directed there from another site, this is the place where all your recruiting lives. On your own website, you can post not only job openings but also FAQ’s about working at your company, like benefits offered and anything that helps your company stand out.
  97. 97. Social Media. LinkedIn, Google+, Facebook, Twitter, among others—these social media networks are key recruiting sources. Nowadays most candidates are on one or all of these networks, making them a perfect place to promote your job openings. Yet social media is not just for posting jobs; it also offers an opportunity for a conversation. It’s a place where you can promote your company’s brand and contribute insightful information about your company and industry. Once you build a foundation with your followers, they’ll be more likely to come directly to you when seeking a new job. Referrals. One of the fastest growing recruiting sources out there is employee referrals. Tapping into your existing workforce to get new talent is a smart strategy. Consider offering referral incentives, like bonuses. Make sure your employees know that they can refer candidates to current openings. Establish a system for doing so, whether it’s having the employee submitting the candidate’s resume for him or specifically asking for an employee referral in all your job applications.
  98. 98. Direct Contact. Similar to employee referrals, direct contact leverages current employees specifically going after a candidate. This usually works well with senior-level staff, since they know very well what the company is looking for and they have wide professional networks. These employees seek out candidates, cultivate relationships, and bring them in as referrals when the right time comes. Temp-to-Hires. Another way to bring in new employees is through temporary or part-time employment first. Portals that help you find temporary and seasonal employees can all be seen as a recruiting source. Consider offering good temps and contingent employees a permanent position in your company. Career Fairs. Having a company presence at career fairs puts you in the center of a pool of candidates. This works better if you’re looking for candidates with a certain skill set—like software development or graphic design—as industry-specific career fairs tend to yield more potential candidates. Also consider career fairs at colleges and universities, which offer a great opportunity to reach a pool of potential entry-level candidates.
  99. 99. Agency. Depending on your company’s needs, you may require the help of a recruiting agency. Recruiting agencies can be cost-effective options for finding top candidates from wider talent pools, or to find heavily sought-after candidates in more specialized industries. When considering the services of a recruiting agency, take time to weigh the pros and cons, since for some companies it’s not worth the cost. Newspapers. Although they’re old school, print job ads are still playing a role in the recruiting scene, especially considering the papers’ online presence. Depending on the job and the industry, more of the candidates you’re looking for may rely on print job ads when searching for openings. More so, however, is the possibility of reaching a wider audience by posting ads in the print edition and posting them on the newspaper’s website as well. Public employment offices. The U.S. Department of Labor offers job placement services to some categories of workers free of charge. In many cases, public employment offices will provide small businesses with lists of pre-screened applicants for a certain opening.
  100. 100. Private employment agencies. These organizations match job seekers with potential employers for a fee, usually paid by the employer once a candidate is hired. Schools and colleges. Depending on the type of position to be filled, high schools, trade and vocational schools, colleges, and universities can be good sources of candidates. Students are particularly good candidates for part-time positions or those in which prior experience is not needed. College recruiting is generally handled through a placement office. Companies usually send a representative to campus twice per year to meet with and interview students. Pinsker emphasizes that business owners should consider college recruiting as an opportunity to promote their company to both students and faculty. Alumni placement offices. Many colleges keep resumes on file for alumni who are seeking job or career changes. Alumni files can be a good source for companies seeking educated candidates with more work experience than recent graduates generally have. Understanding what recruiting sources are at your disposal and how to leverage them is a key first step to maximizing your talent acquisition. Which one of these sources seems to work best for your company? Have you successfully tried others?
  102. 102. No matter what the reasons are for why employers are trying to bolster diversity in the workplace, one thing is certain: Recruiting minorities is a crucial challenge. Workforce Diversity: encompasses race and ethnicity, gender, socioeconomic status, sexual identification and orientation, philosophy, geography, and physical ability
  103. 103. SUPERVISING OLDER WORKERS The work force is aging as baby boomer move toward retirement. Gen X managers need to learn how to motivate and manage this talent pool of older workers. Both generations have very different views of the other and will need to learn how the other generation operates. It is up to the managers, Gen X or otherwise, to take the lead and create the climate in which older workers will remain engaged and productive. Difficulty: Average Time Required: Varies Here's How:
  104. 104. Throw out all your assumptions. You may think older workers are harder workers or that they are difficult to train. Get rid of your stereotypes. Your older workers are individuals just like everyone else in your group. Treat them as such. Remember the range of ages. You wouldn't treat a seasoned manager of 35 the same as a 21-year old right out of college. Don't think the 15 year gap is any less in your older workers. A worker at 55 and a worker at 70 have different goals and needs. As a manager, you may need to look at groups getting ready to retire (55-62), retirement age and still working (62-70), and older worker who want to keep active or who need to work (70+). Each group presents different management challenges.
  105. 105. Communicate, communicate, communicate Don't assume that the older worker knows what you expect of them. They don't have the same background as you. Be very clear what you want done and what the measurements of completion and of success will be. "Bill, take care of that for me" is not enough. Try "Bill, I need you to prepare the department's budget for the next fiscal year. Use the numbers from last year and add 10% on everything except training which should go up 15%. I need it by Tuesday". Value their life experience. Your older worker have been around. They have seen a lot. They have done a lot. Recognize the value of this experience. Learn from it. Encourage the younger members of your team to learn from it. The lessons from the "school of hard knocks" are invaluable. Train them. Older workers need training as much as younger workers - just as much, just as often. The subject of the training may be different, but the need is the same. And don't believe that older workers can't be trained. They are just as receptive as their younger peers.
  106. 106. Meet their security needs. Older workers probably need benefits more than the younger workers. They need medical coverage, vision care, and financial planning. Make sure your company's benefits plan meets their needs too. Motivate them. Any manager's key job is to motivate their employees. Older workers have different motivational "hot buttons" than their younger counterparts. Opportunity for advancement is probably less important than the recognition of a job well done, but see step #1 above. You don't have to "be the boss". The older workers grew up in a hierarchical society. They know you are the boss. Most of them were bosses at some point too. Get on with leading the department and don't waste time posturing. It won't impress them anyway. They've seen it all before.
  107. 107. Be flexible. Your older workers, depending on age group (see #2 above) may want flexible hours or a shorter work week. For those of them that need that, be willing to be flexible. You need their talent and technical skill so do what you need to to keep it available. Do not, however, assume that all older workers want to go home early. Some may be motivated by working the same long, hard hours that they have always done. Use them as mentors. Let them coach and encourage the younger workers. Most older workers have a wealth of knowledge and experience that they would love to pass on. Give them the opportunity to do so and your entire organization will benefit.
  108. 108. Issues in Recruiting a More Diverse Workforce • Single parents – Providing work schedule flexibility. • Older workers – Revising polices that make it difficult or unattractive for older workers to remain employed. • Recruiting minorities and women – Understanding recruitment barriers. – Formulating recruitment plans. – Instituting specific day-to-day programs.
  109. 109. Issues in Recruiting a More Diverse Workforce  Welfare-to-work  Developing pre-training programs to overcome difficulties in hiring and assimilating persons previously on welfare.  The disabled  Developing resources and policies to recruit and integrate disable persons into the workforce.
  110. 110. Selection Method Standards for Evaluation Purposes
  111. 111.  Reliability  Validity  Generalizability  Utility  Legality Selection Method Standards for Evaluation Purposes
  112. 112. Selection Method Standard: “Reliability”  Reliability is the degree to which a measure of physical or cognitive abilities, or traits, is free from random error.  Involves selecting applicants based from their characteristics that the organization is looking for.  It uses statistical tools and graphs to test relationships between sets of numbers .  A perfect positive relationship equals +1.0  A perfect negative relationship equals - 1.0
  113. 113. Selection Method Standard: “Reliability”  Examples of Reliability Standards:  Physical Characteristics (Height, Strength or Endurance)  Cognitive Abilities (Mathematical Ability or Verbal Reasoning Capacity)  Personality (Initiative or Integrity)
  114. 114. VALIDITY
  115. 115. Selection Method Standard: “Validity”  Validity is the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance.  The measure has the to be RELIABLE (e.g. Height) if it is to have any VALIDITY.
  116. 116. Selection Method Standard: “Validity”  Criterion-related validation is a method of establishing the validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores. There are two types:  Predictive validation – A study that seeks to establish an empirical relationship between applicants’ test scores and their eventual performance on the job.  Concurrent validation – A test administered to all people currently in a job.
  117. 117. Selection Method Standard: “Validity”  Predictive validation is superior to concurrent validation for three reasons:  Job applicants are typically motivated to perform well on the tests than are current employees.  Current employees have learned many things on the job that applicants have not yet learned.  Current employees tend to be homogeneous.
  118. 118. Selection Method Standard: “Validity”  Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job.  Best for small samples  Content validity is achieved primarily through a process of expert judgment
  120. 120. Selection Method Standard: “Generalizability”  Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts.  Three contexts include:  different situations  different samples of people  different time periods
  121. 121. Selection Method Standard: “Generalizability”  It was once believed that validity coefficients were situationally specific—that is, the level of correlation between test and performance would vary as one went from one organization to another.
  122. 122. Selection Method Standard: “Generalizability”  It was also believed that tests showed differential subgroup validity, which meant that the validity coefficients for any test-job performance pair was different for people of different races or genders.
  123. 123. Selection Method Standard: “Generalizability”  Validity generalization stands as an alternative for validating selection methods for companies that cannot employ criterion-related or content validation.
  124. 124. UTILITY
  125. 125. Selection Method Standard: “Utility”  Utility is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations.  It is impacted by reliability, validity, and generalizability.
  126. 126. Selection Method Standard: “Utility”  Other factors will influence utility even when the latter is constant.  For example, the selection ratio, which is the percentage of people tested versus the total number of applicants, will impact utility as well as the number of people selected, race of employee turnover, and level of performance among chose who leave.
  127. 127. LEGALITY
  128. 128. Selection Method Standard: “Legality”  All selection methods must conform to existing laws and legal precedents.  Three acts have formed the basis for a majority of the suits filed by job applicants:  Civil Rights Act of 1964 and 1991  Age Discrimination in Employment Act of 1967  Americans with Disabilities Act of 1991
  129. 129. Selection Method Standard: “Legality”  Civil Rights Act of 1964 and 1991  This act protects individuals from discrimination based on race, color, sex, religion, and national origin.  Age Discrimination in Employment Act of 1967  Covers individuals who are over the age of 40.  Americans with Disabilities Act of 1991  Protects individuals with physical or mental disabilities (or with a history of the same).
  131. 131. Types of Selection Methods Honesty Tests and Drug Tests Work Samples Personality Inventories Cognitive Ability Tests Physical Ability Tests References and Biographical Data Interviews JOBSHR
  132. 132. INTERVIEW
  133. 133. Selection Method: “Interview”  Selection interviews are defined as a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment.  Interviews are the most widely used selection method, although research suggests it can be unreliable, low in validity, and biased against a number of groups.
  135. 135. Selection Method: “Situational Interview”  A situational interview confronts applicants on specific issues, questions, or problems that are likely to arise on the job.  These interviews consist of:  experience-based questions  future-oriented questions
  137. 137. Other Selection Methods  References, Biographical Data, and Application Blanks gather background information on candidates.  Physical Ability Tests - Relevant for predicting not only job performance but occupational injuries and disabilities.
  138. 138. Other Selection Methods  Cognitive Ability Test - Differentiates individuals based on their mental rather than physical capacities.  Personality inventories - Categorize individuals by their personality characteristics.  Work Samples - Simulate the job in miniaturized form.
  139. 139. Other Selection Methods  Honesty Test - Paper-and-pencil honesty testing attempts to assess the likelihood that employees will steal.  Drug Test - Drug-use tests tend to be reliable and valid, particularly when the screening tests" are followed up with more expensive “confirmation” test.
  140. 140. Types of Employment Tests Introduction Hundreds of tests are available to help employers in making decisions. In the section on Information to Consider When Creating or Purchasing a Test there is a discussion of what one needs to consider in choosing what test to use. In this section, general types of tests are described and their general pros and cons related. Tests discussed in this section are ones for which some general evidence of validity has been provided. A test is valid if the inferences made based on the test score are accurate (e.g., if we are correct in concluding that how well the individual does on the test tells us how well he/she will perform on the job). Some tests, such as graphology and polygraphs, have little evidence of validity for employment decision-making purposes and thus are not discussed here. All of the tests discussed here have been demonstrated to relate to one or more critical employment outcomes.
  141. 141.  The determination of what it is you want to measure with the test should precede the determination of how you are going to measure it.  1. Assessment Centers Assessment centers can be designed to measure many different types of job related skills and abilities, but are often used to assess interpersonal skills, communication skills, planning and organizing, and analytical skills. The assessment center typically consists of exercises that reflect job content and types of problems faced on the job. For example, individuals might be evaluated on their ability to make a sales presentation or on their behavior in a simulated meeting. In addition to these simulation exercises, assessment centers often include other kinds of tests such as cognitive ability tests, personality inventories, and job knowledge tests. The assessment center typically uses multiple raters who are trained to observe, classify, and evaluate behaviors. At the end of the assessment center, the raters meet to make overall judgments about peoples performance in the center.
  142. 142. Advantages Disadvantages • Have been demonstrated to produce valid inferences for a number of organizational outcomes (e.g., promotion rates). • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • May be viewed positively by test takers who see the close relationship between the test and the job. • Can provide useful feedback to test takers regarding needed training and development. • Focus more heavily on behavior demonstration than simply assessing characteristics. • Use trained raters. • Are typically less likely to differ in results by gender and race than other types of tests. • Can be costly to create and administer. • Require more labor (e.g., assessors, role-players, etc.) to administer than most other methods. • Require more time to administer than most other methods. • Can be difficult to keep calibrated or standardized across time and
  143. 143.  2. Biographical Data  The content of biographical data instruments varies widely, and may include such areas as leadership, teamwork skills, specific job knowledge and specific skills (e.g., knowledge of certain software, specific mechanical tool use), interpersonal skills, extraversion, creativity, etc. Biographical data typically uses questions about education, training, work experience, and interests to predict success on the job. Some biographical data instruments also ask about an individuals attitudes, personal assessments of skills, and personality.
  144. 144. Advantages Disadvantages • Can be administered via paper and pencil or computerized methods easily to large numbers. • Can be cost effective to administer. • Have been demonstrated to produce valid inferences for a number of organizational outcomes (e.g., turnover, performance). • Are typically less likely to differ in results by gender and race than other types of tests. • Does not require skilled administrators. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • May lead to individuals responding in a way to create a positive decision outcome rather than how they really are (i.e., they may try to positively manage their impression or even fake their response). • Do not always provide sufficient information for developmental feedback (i.e., individuals cannot change their past). • Can be time-consuming to develop if not purchased off-the-shelf.
  145. 145.  Cognitive Ability Tests  Cognitive ability tests typically use questions or problems to measure ability to learn quickly, logic, reasoning, reading comprehension and other enduring mental abilities that are fundamental to success in many different jobs. Cognitive ability tests assess a persons aptitude or potential to solve job- related problems by providing information about their mental abilities such as verbal or mathematical reasoning and perceptual abilities like speed in recognizing letters of the alphabet.
  146. 146. Advantages Disadvantages • Have been demonstrated to produce valid inferences for a number of organizational outcomes (e.g., performance, success in training). • Have been demonstrated to predict job performance particularly for more complex jobs. • Can be administered via paper and pencil or computerized methods easily to large numbers. • Can be cost effective to administer. • Does not typically require skilled administrators. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • Will not be influenced by test taker attempts to impression manage or fake responses. • Are typically more likely to differ in results by gender and race than other types of tests. • Can be time-consuming to develop if not purchased off-the-shelf.
  147. 147.  Integrity Tests  Integrity tests assess attitudes and experiences related to a persons honesty, dependability, trustworthiness, reliability, and pro-social behavior. These tests typically ask direct questions about previous experiences related to ethics and integrity OR ask questions about preferences and interests from which inferences are drawn about future behavior in these areas. Integrity tests are used to identify individuals who are likely to engage in inappropriate, dishonest, and antisocial behavior at work.
  148. 148. Advantages Disadvantages • Have been demonstrated to produce valid inferences for a number of organizational outcomes (e.g., performance, inventory shrinkage difficulties in dealing with supervision). • Can reduce business costs by identifying individuals who are less likely to be absent, or engage in other counterproductive behavior. • Send the message to test takers that integrity is an important corporate value. • Are typically less likely to differ in results by gender and race than other types of tests. • Can be administered via paper and pencil or computerized methods easily to large numbers. • Can be cost effective to administer. • Does not require skilled administrators. • May lead to individuals responding in a way to create a positive decision outcome rather than how they really are (i.e., they may try to positively manage their impression or even fake their response). • May be disliked by test takers if questions are intrusive or seen as unrelated to the job.
  149. 149. Interviews vary greatly in their content, but are often used to assess such things as interpersonal skills, communication skills, and teamwork skills, and can be used to assess job knowledge. Well-designed interviews typically use a standard set of questions to evaluate knowledge, skills, abilities, and other qualities required for the job. The interview is the most commonly used type of test. Employers generally conduct interviews either face-to-face or by phone. Interviews
  150. 150. Advantages Disadvantages • Are expected and accepted by many job applicants. • Provide an opportunity for a two-way exchange of information. • Provide a measure of skills such as oral communication skills not measured via paper and pencil or computerized tools. • Have been demonstrated to produce valid inferences for a number of organizational outcomes, if properly developed and administered (see article on Effective Interviews). • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • Are typically less likely to differ in results by gender and race than other types of tests. • May be affected by different kinds of rating errors and biases by interviewers. • Are often more time-consuming to administer than paper and pencil or computerized tools. • May be practically less useful when a large number of individuals must be evaluated because of administration time. • Can be costly to train interviewers. • May be difficult to keep interviewers calibrated and the interview process standardized. • May lead to individuals responding in a way to create a positive decision outcome rather than how they really are (i.e., they may try to positively manage their impression or even fake their response).
  151. 151. Job Knowledge Tests Job knowledge tests typically use multiple choice questions or essay type items to evaluate technical or professional expertise and knowledge required for specific jobs or professions. Examples of job knowledge tests include tests of basic accounting principles, A+/Net+ programming, and blueprint reading.
  152. 152. Advantages Disadvantages • Have been demonstrated to produce valid inferences for a number of organizational outcomes, such as job performance. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • Are typically less likely to differ in results by gender and race than other types of tests. • May be viewed positively by test takers who see the close relationship between the test and the job. • Will not be influenced by test taker attempts to impression manage or fake responses. • Can provide useful feedback to test takers regarding needed training and development. • May require frequent updates to ensure test is current with the job. • May be inappropriate for jobs where knowledge may be obtained via a short training period. • Can be costly and time-consuming to develop, unless purchased off-the-
  153. 153. Personality Tests  Some commonly measured personality traits in work settings are extraversion, conscientiousness, openness to new experiences, optimism, agreeableness, service orientation, stress tolerance, emotional stability, and initiative or proactivity. Personality tests typically measure traits related to behavior at work, interpersonal interactions, and satisfaction with different aspects of work. Personality tests are often used to assess whether individuals have the potential to be successful in jobs where performance requires a great deal of interpersonal interaction or work in team settings.
  154. 154. Advantages Disadvantages • Have been demonstrated to produce valid inferences for a number of organizational outcomes. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • Are typically less likely to differ in results by gender and race than other types of tests. • Can be administered via paper and pencil or computerized methods easily to large numbers. • Can be cost effective to administer. • Does not require skilled administrators. • May contain questions that do not appear job related or seem intrusive if not well developed. • May lead to individuals responding in a way to create a positive decision outcome rather than how they really are (i.e., they may try to positively manage their impression or even fake their response). • May be problematic for use in employee selection if the test is one used to diagnose medical conditions (i.e., mental disorders) rather than simply to assess work-related personality traits.
  155. 155. Physical Ability Tests Physical ability tests typically use tasks or exercises that require physical ability to perform. These tests typically measure physical attributes and capabilities, such as strength, balance, and speed.
  156. 156. Advantages Disadvantages • Have been demonstrated to produce valid inferences regarding performance of physically demanding tasks. • Can identify applicants who are physically unable to perform essential job functions. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities, by minimizing the risk of physical injury to employees and others on the job, and by decreasing disability/medical, insurance, and workers compensation costs. • Will not be influenced by test taker attempts to impression manage or fake responses. • Are typically more likely to differ in results by gender than other types of tests. • May be problematic for use in employee selection if the test is one used to diagnose medical conditions (i.e., a physical disability) rather than simply to assess ability to perform a particular job-related task. • Can be expensive to purchase equipment and administer. • May be time consuming to administer. • May be inappropriate or difficult to administer in typical employment offices.
  157. 157. Work Samples and Simulations These tests typically focus on measuring specific job skills or job knowledge, but can also assess more general skills such as organizational skill, analytic skills, and interpersonal skills. Work samples and simulations typically require performance of tasks that are the same or similar to those performed on the job to assess their level of skill or competence. For example, work samples might involve installing a telephone line, creating a document in Word, or tuning an engine.
  158. 158. Advantages Disadvantages • Have been demonstrated to produce valid inferences regarding ability to perform the job. • Can reduce business costs by identifying individuals for hiring, promotion or training who possess the needed skills and abilities. • Are less likely to differ in results by gender and race than other types of tests (depends on particular skills being assessed). • May be more accepted by test takers due to the obvious link between the test and the job. • Less likely to be influenced by test taker attempts to impression manage or fake responses. • Can be used to provide specific developmental feedback. • Can provide test takers with a realistic preview of the job and the organization. • Does not assess aptitude to perform more complex tasks that may be encountered on the job. • May not assess the ability to learn new tasks quickly. • Often not conducive to group administration. • May require some level of job knowledge and therefore may be inappropriate for jobs where knowledge may be obtained via a short training period. • May be difficult to keep updated. • May be expensive to administer. • May be time consuming to develop and to administer.
  159. 159. Conducting Employee Background Checks – Why Do It and What the Law Allows Reasons to Conduct a Background Check A pre-employment background check can not only save you money in the long run, it can also protect your business. How? If your employees come into direct contact with your customers (for example, in a care capacity) and cause harm to a customer, your business can be liable if that employee has a criminal record. A background check can also provide insight into an individual’s behavior, character, and integrity.
  160. 160. Why do background checks? The benefits of comprehensive employment background screening include: increased applicant and new hire quality, reduced workplace violence, reduced negligent hiring liability, reduced losses from employee dishonesty, making the right hire the first time, and avoiding negative publicity. The bottom line is that pre-employment background checks help an organization be more successful.
  161. 161. Which Types of Background Checks Can and Should You Conduct There are several background checks that you can consider as you build a profile of a future employee. Not all of them, however, are appropriate or even possible for every company. For example, how you may employ the information gleaned during a criminal background check when making hiring decisions varies from state to state. Furthermore, any check on an individual’s credit score or military service requires consent. As a general rule of thumb, it’s worth considering the following background screening: credit checks, drug tests, past employers, criminal background (check with a lawyer first to see what your state permits), and driving records (sometimes necessary if the job demands this skill). If your employees work with children or in other care positions, it may also be worth checking the sex offender registry. Some states may require it.
  162. 162. Should You Run a Credit Check on Potential Employees? Used by 60 percent of employers when making hiring decisions, a credit check (which only shows history, not a score) can be a good indicator not only of an individual’s fiscal aptitude but also overall integrity. If a job description stipulates that an employee will have access to sensitive financial or customer information, many employers rely on a credit check for that extra security. Despite the popularity of credit checks, the use of this information to judge character is increasingly being considered poor practice and unfair, thanks to difficult economic times which may blot the credit history of an otherwise fiscally responsible individual. Because of this, many states and equal opportunity organizations are challenging the availability of credit information. In most states, however, it remains a fair and legal practice (Hawaii and Washington ban it).
  163. 163. Here’s what the law allows: according to the Fair Credit Reporting Act, federal law allows using credit information for employment purposes. But there are some caveats:  You must get the job seeker’s written consent.  If you decide not to hire a person based on this information, you are required to let the candidate know the source used for the check. (In truth most employers don’t give a reason for not hiring an individual to avoid this sort of legal wrangling.) So, should you run a credit check? Your best strategy might be to limit credit checks to positions for which a job seeker’s credit history has relevance, and be sure to gain the applicant’s consent to run this check and an opportunity to explain any red flags.
  164. 164. Do Your Own Detective Work There are still some basic checks that shouldn’t be ignored that you can do yourself: Verify What’s on the Resume – Call colleges and universities to verify the degree earned and ask previous employers to confirm the applicant’s work history (not a reference just a yes/no confirmation of tenure). Use the Web –You’re not looking for dirt on this one, but a quick web search can actually help you round-out the profile of your future hire, their interests, achievements, and even mitigate information that a formal background check has revealed.
  165. 165. How Do Background Checks Help? Because employers have a moral and legal obligation to provide a safe work environment, knowing whether a potential employee has been involved in criminal or dishonest activity (such as drug or other substance abuse, reckless behavior, theft, or dangerous and violent behaviors) allows the employer to better determine if an applicant is appropriate for the job and work environment. Background Checks allow an employer to better determine if an applicant poses a potential threat to other employees or customers. Background check tools such as Criminal Record Checks, Prior Employment Verifications, Education Verification, License Verifications, and other research tools can reveal potential problem areas and provide documentation that an employer has taken "reasonable care" in the hiring process. Thorough background check documentation is an important element in reducing negligent hiring liability.
  166. 166. Pros and Cons of Background Checks
  167. 167. The Polygraph and Honesty Testing Some firms still use the polygraph (or lie detector) for honesty testing, although current law severely restricts its use. The polygraph is a device that measures physiological changes like increased perspiration. The assumption is that such changes reflect changes in emotional state that accompany lying. Complaints about offensiveness plus grave doubts about the polygraph’s accuracy culminated in the Employee Polygraph Protection Act of 1988. With a few exceptions the law prohibits employers from conducting polygraph examinations of all job applicants and most employees. Also prohibited under this law are other mechanical or electrical devices that attempt to measure honesty or dishonesty, including psychological stress evaluators and voice stress analyzers. Federal laws don’t prohibit paper and pencil tests and chemical testing [as for drugs].
  168. 168. Who can use the polygraph: Local, state, and federal government employers (including the FBI) can continue to use polygraph exams,. But many local and state government employers are further restricted under state laws. Other employers permitted to use polygraph tests include: industries with national defense or security contracts; certain businesses with nuclear power related contracts with the Department of Energy; businesses and consultants with access to highly classified information; those with counter intelligence related contracts with the FBI or departments of Justice; and private businesses that are (1) hiring private security personnel, (2) hiring persons with access to drugs or (3) doing ongoing investigations involving economic loss or injury to an employer’s business, such as a theft.
  169. 169. Even in the case of ongoing investigations of theft, the law restricts employers’ rights. To administer such a test during an ongoing investigation and employer must meet four standards: 1) First, the employer must show that it served an economic loss or injury. 2) Second, it must show that the employee in question had access to the property. 3) Third, it must have a reasonable suspicion before asking the employee to take the polygraph. 4) Fourth, the employee must be told the details of the investigation before the test, as well as questions to be asked on the polygraph test itself.
  170. 170. Graphology Test: Graphology involves using a trained evaluator to examine the lines, loops, hooks, stokes, curves and flourishes in a person’s handwriting to assess the person’s personality and emotional make-up. The recruiting company, may, for example, ask the applicants to complete the application forms and write about why they want a job. These samples may be finally sent to graphologist for analysis and the result may be put use while selecting a person. The use of graphology, however, is dependent on the training and expertise of the person doing the analysis.
  171. 171. Physical Exams Pre placement physical examinations are the tests conducted on an individual prior to placement in order to assess the physical ability of the interviewee to perform verity of job related activities safely. After the applicant has cleared his job interview, the job provider firm can ask you to submit your physical test reports. Hey! There is nothing to be worry about. It is just a part of their employment hiring procedure that employer organizations follow in order to ensure that the person they are going to hire is fit, both physical and psychologically, to handle his responsibilities in the best possible way. Through this test reports, employer organizations make sure that the potential employee will not create any kind of threat to other staff members of the firm and clients as well. In all, pre-placement physical examination is a way that employers used to minimize any kind of potential risks and liabilities that may occur due to an employee’s on the work health problems.
  172. 172. What this exam consists of? Pre-employment physical test vary from the type of job an individual has applied for. According to the case in point, if the job, you are applied for, requires you to perform manually then some special tests, like general health, physical fitness etc., are conducted during examination to assess your physical ability and stamina to successfully handling of assigned duties. In most cases, this examination includes a series of physical tests written in the health questionnaire. Mentioned below are some tests that pre-placement physicals include, but are not limited to: • Functional ability of the person or physical fitness • Spinal health • General health screening including vital signs like blood pressure, temperature, medical history, pulse, respiration, height, and weight etc.) • Testing for eye-vision • Lung functioning test • Purified protein derivative (PPD) test- Tuberculosis test • Urine analysis • X-ray of chest
  173. 173. Heart diagnosis- electrocardiogram (ECG) • Drug testing which include urine test of street drugs like Marijuana (THC), Amphetamines, Cocaine, Opiates, and PCP etc. All these tests are conducted by an expert physician or nurses to accurately measure your overall health status. An important thing to know for that the pre- placement or background tests that employer companies are asked for, are legal. One cannot negotiate in this context if employer firm incorporated this test to their recruitment strategy. Employer side benefits of running Pre-placement medical test: • Improve overall productivity of the firm as the downtime due to worker’s illness or injury is less • Protection decrease in the worker’s compensation payments • Improved reputation of the firm via practical management of potential risks at the pre-placement phase Employee side benefits of undergoing this test: • Detection of various health concerns that they have not been aware of • Confidence and activeness in their work
  174. 174. Complying with immigration Law How to protect your business, and yourself, from criminal prosecution?  During the last few years, the problem of illegal immigration has been in the news almost daily. While most stories focus on the problems caused by illegal immigrants, there have been more than a few about employers who have been fined or even imprisoned for hiring illegal aliens. One of our clients who employs a large number of Hispanic workers recently called wanting to know how to protect his business and himself from criminal prosecution. He was surprised to learn, as you may be, that your obligations under the immigration laws are relatively straightforward. Unless an employer is engaged in a pattern of knowingly hiring illegal immigrants, criminal prosecution is unlikely.  The safest way to avoid problems under the immigration laws is to understand your responsibilities as an employer. Your principal responsibility is to verify the employment eligibility and identity of all employees that you hire. This must be done within three business days of the date the employee begins work.
  175. 175.  Verification is done by having the employee complete Section 1 of Form I-9, and by the employer completing Section 2. Section 2 of Form I-9 requires the employer to review certain documentation presented by the employee and to record document information on the Form.  Form I-9 describes three types of documents that can be provided by the employee. The employer may accept a document from List A, such as a passport, which is sufficient to establish an employee’s identity and work eligibility. Alternatively, the employer can accept a document from List B, such as a driver’s license, to establish the employee’s identity and a document from List C, such as a Social Security card, to establish the employee’s work eligibility. The employer must examine the documents and is required to accept them so long as they reasonably appear to be genuine and relate to the employee who presents them.
  176. 176.  An employer is not required to be a document expert. If the documents reasonably appear to be genuine, they should be accepted. As an employer, you have no right to request additional documentation and doing so may be considered an unfair immigration-related employment practice.  The requirement to have a Form I-9 completed applies only to persons you actually hire. You do not need to obtain completed forms from potential employees or independent contractors.  Once Form I-9 is complete, your job is pretty much done. However, you are required to retain the Form I-9 for three years after the date the employee begins work, or one year after the employee’s employment is terminated, whichever is later.
  177. 177. Why Applicant Screening Software Evolved The prevalence of applicant tracking systems has grown substantially since the time of the great recession. Companies advertising open positions often have hundreds, if not thousands, of applications to sift through in order to find a few “cream of the crop” candidates to interview for the job. Jobs continue to attract far more applicants than busy hiring departments have the time to interview. It’s often too much for any one person — or even a small group of HR staff members — to deal with on their own. That’s how these resume robot programs came into existence for the most part — as an aid to overwhelmed hiring managers. How Great Candidates Are Missed by Resume Screening Robots Did you know? Applicant tracking systems reject 75 percent of candidates. Many highly-qualified candidates are rejected by ATS because they fail to write their resume for the resume screening software. This is a significant flaw in the design of applicant tracking systems, reports CIO.
  178. 178. Businesses continue to use these tracking programs, despite the flaws, because they make hiring easier on hiring personnel and recruiters.  While this practice of electronically screening resumes saves time for busy HR executives, it also means that many highly qualified candidates are slipping through the cracks because they didn’t use specific language or, in some cases, formatting on their resumes. Don’t let this happen to you! For job seekers in today’s era, it’s imperative to learn how to move past the algorithms. This means that job seekers must become more creative in order to make the right impression on both the robots that initially scan your resumes and the people who will ultimately read them and need to be impressed enough to invite you to interview. The bottom line is that applicants must learn how to optimize resumes to make it through the screening process so you can ultimately get the job you seek.
  179. 179. How Do the Resume Screening Robots Work? Before you can figure out how to craft a resume that wows the robot, it’s helpful to first learn what the robot is looking for. The system is actually quite simple, despite all the complexities involved. First, the software removes all formatting from the resume and scans for specific recognized keywords and key phrases. Next, it sorts the content of your resume into individual categories: Education Contact Information Skills Work Experience Then, the employer’s list of desired skills and keywords are matched against the results of the resume to determine your potential value to the organization. Resumes with the highest scores relevant to the employer’s specified keywords and phrases combined with your years of experience will be moved up for further review. In the end, the software simply scores the resume in order to determine which candidates are most qualified to move up the ladder for an actual human within the organization to review.
  180. 180. Tips on Getting Your Resume Seen by Human Eyes While the concept of getting past applicant tracking software sounds simple on paper, it can be a challenge to those who haven’t mastered the art of writing resumes with these applicant tracking systems in mind. Implement the following practical checklist of tips to keep your resume out of the infamous online resume black hole. Nix the headers in your resume. According to Time, headers and footers jam the algorithms. Mirror wording from the actual job description in your resume. Yes, this means that you may need a custom resume for every job. While you do not want a word-for-word match of the job description, if a nurse job description calls for someone with triage experience or primary care experience, for example, be sure that your resume contains those keywords. Similarly, if the job description asks for specific software experience, include your experience with that software.
  181. 181. Nail your keywords. There is lingo in every profession. Whether it’s software, skills, certifications, licenses, responsibilities, or even procedures, there are words that matter in your profession that need to be included in your resume. Here are a few tips for getting the right combination of keywords and phrases into your resume. Use acronyms and spelled out form of titles, professional organizations, certifications, and other industry lingo, etc. If you have experience in electronic medical records, include the acronym EMR as well, for example. You have no idea which keyword the robots are scanning for. Using both allows you to be covered either way. Repeat important keywords related to your skills two or three times in the resume, or more depending on the length of your resume. Do not stuff keywords in your resume, however. Not only are the new scanners savvy to this tactic, but it’s a real turn-off to the people who actually read resumes if your resume does get past the scanner process. Give job-related keywords depth within your resume. You don’t want them listed in one single section of your resume if possible. Sprinkle them throughout your resume, instead.