unit 5 revised( 7th august)

28
RECRUITING AND RETAINING TALENT prepared for the course team by Narendra Prasad U5 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

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Page 1: Unit 5 Revised( 7th August)

RECRUITING AND RETAINING TALENT

p r e p a r e d f o r t h e c o u r s e t e a m b y

Narendra Prasad

U5

I N T R O D U C T I O N T O H U M A N R E S O U R C E

M A N A G E M E N T

Page 2: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.2

Recruiting and Retaining

Talent

Recruiting HRRecruitment

Sources Role of Recruiters

Managing

Employee

Turnover

Managing

Employee

Retention

Definition

Recruitment

Policies

Internal Sources

Advantages and

Disadvantages

External

Sources

Behaviour of

Recruiters

Enhancing

Recruiters

Impact

HR Practices

Exit Interview

Employee Layoff

Advantages and

Disadvantages

Communication

Voluntary &

Involuntary

Turnover

Process of Job

Withdrawal

Job Satisfaction

U n i t 5 c o n c e p t m a p

This map represents the core concepts that we’ll be covering

in this unit, and examine the relationships between them.

Page 3: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.3

Study organiser

Before you begin this unit, please check through your study organiser. It shows

the topics that we’ll be covering, the skills you need to acquire (the learning

outcomes) and the activities you’ll do to help you acquire these skills.

Unit/Topic Learning outcomes Readings & Activities

Recruiting Human

Resources

Outline the recruitment process.

Describe various

recruitment policies

organisations adopt to

make job vacancies attractive.

Reading 5.1, Chap.5 in

textbook

Activity 5.1

Recruitment Sources Identify and describe

various sources from

which job applicants can

be drawn.

Activity 5.2

Role of the Recruiter Describe the role of a

recruiter in a recruiting

process

Activity 5.3

Process of Job

Withdrawal

Discuss the relationship

between job satisfaction

and various forms of job

withdrawal.

Identify the major

sources of job

satisfaction in work

context.

Reading 5.2, Chap. 10

in the textbook

Activity 5.4

Employee Retention Identify strategies

managers could employ

to promote and retain its

key employees

Activity 5.5

It is recommended that you spend at least 12 hours on this unit.

Page 4: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.4

Introduct ion

It is essential for the organisation to ensure that their recruitment process is

effective so that it delivers the highest calibre of employees. Recruitment serves

to create a buffer between planning (described in unit 4) and actual selection of

new employees (our topic for discussion in the next unit).

In our preceding unit we examined the significance of human resource planning

to organisations and its critical relationship to organisational overall strategies.

We took in-depth look at the actual development and implementation of a human

resource plan. We concluded the unit by scrutinising strategies management may

adopt in addressing labour surplus and shortage situations in organisation and the

consequences each of these strategies could have on the employees.

We begin this unit by outlining the process of recruitment and then describe some

recruitment policies organisations use to attract talent. We then focus our

attention to recruitment sources before describing the recruiter’s role in a

recruitment process. Towards the end of the unit we briefly describe the job

satisfaction aspect of employment and discuss its influence in retaining key

employees in organisations

You will be required to read specified parts of chapters 5 and

10 of your textbook to get an insight of concepts to be covered

in this unit.

Now read the section on ‘recruitment’ in

chapter 5 of your textbook. It gives you a

descriptive overview of policies and

processes, sources of job applicants and

the role of a recruiter in a recruitment

process

R e a d i n g 5 . 1

Page 5: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.5

What is Recru itment?

The role of human resource recruitment is to provide a supply of potential new

recruits that organisation can draw on if the need arises. Thus, recruitment is the

process of attempting to locate and encourage potential applicants for existing or

potential job openings. It involves strategies to create a pool of appropriately

qualified and experienced people so that selection strategies can be initiated.

Recruitment must not be confused with the belief of landing a job at an

organisation. It merely involves searching and obtaining qualified applicants

for the organisation to consider when filling job openings. Recruitment stops

short of deciding which individuals should be hired from the pool of applicants.

Now take some time to reflect on the following newspaper advertisement which

appeared in one of the local dailies.

F i g u r e 5 . 1 S i t u a t i o n s V a c a n t

Trans International Hotel

Position Vacant: Sales Assistant

Duties and Responsibilities:

• Provide a positive selling approach to maximize room and rate yield at the

hotel, ensuring a timely response to all reservation enquires

• Maintain current knowledge of room types, hotel facilities and rates

packages

• In general, doing sales and marketing of the hotel and achieving sales

target

• Maximum of three years of experience is needed in a similar role.

Direct your applications to:

The Manager

Trans International Hotel

P.O.Box 11231,

Nadi Airport.

Source: The Fiji Times, 26th June, 2010: p 73

Advertisements like the one shown above appear almost daily in local

newspapers. In the above case Trans International Hotel as an employer informs

potential sales assistant applicants about the required competencies for the vacant

position. Through this advertisement potential applicants are motivated to apply

for the position open to them. Whether or not the position of sales assistant will

Page 6: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.6

be filled by someone from within the organisation or from outside will depend

upon the HR policies of Trans International Hotel, the requirement of the job and

the availability of suitable talent within the organisation.

The importance assigned to recruitment differs among companies. In general,

however, all companies have to make decisions in three areas of recruiting:

1. Human resource policies that affect the types of job companies has on

offer

2. Recruitment sources used to solicit applicants

3. Characteristics and behaviours of the recruiter

Rec ru i t me nt a nd Hum an res o urc e p o l i c i es

Human resource policies are concerned with decisions on how it will carry out

human resource management, including how it will fill job vacancies. Several

personnel policies are especially relevant to recruitment. Each of these

recruitment policies are described below.

i ) I n t e r n a l v e r s u s E x t e r n a l R e c r u i t i n g

Most organisations try to follow a policy of filling job vacancies from internal

promotions and transfers. Promotion from within can provide current employees

with great motivational opportunity as well as a sense that they are being valued

in the organisation. This also helps in the retention of high calibre employees.

From the organisation’s perspective, recruiting from within saves training costs

since promoted staff possess a sound knowledge of organisational culture,

organisational policies, practices and processes. Limitations and advantages for

both internal and external types of recruitment will be dealt with under

Recruitment Sources.

i i ) L e a d - t h e - M a r k e t P a y S t r a t e g i e s

Pay is an important job characteristic for almost all applicants. Organisations

have a recruiting advantage if their policy is to pay more than the current market

wage. Increasingly, organisations that compete for applicants based on pay do

so using forms of pay other than wages or salary. Housing benefits, free

transport, free phone privileges, insurances schemes and free education for

children are only some schemes employers offer to attract best candidates from

the labour market.

i i i ) E m p l o y m e n t - a t - W i l l P o l i c i e s

In an employment- at- will situation, an employee is hired for an indefinite

duration in the absence of a written contract. Either party (the employer or an

employee) may end the employment relationship for any cause at any time. An

alternative to employment at will is to establish due-process policies. These

policies formally lay out the steps an employee may take to appeal an employer’s

decision to terminate that employee. In decisions about employment-at-will

policies, organisations should consider not only the legal advantages of

employment at will but also the effect of such policies on recruitment. Employees

Page 7: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.7

nowadays prefer job security at workplace. They refrain from seeking

employment at institutions that has a bad image in employment relations

especially where employees are fired at will.

i v ) I m a g e A d v e r t i s i n g

Advertising designed to create a generally favorable impression of the

organisation is called image advertising. Image advertising is especially

important for organisations in highly competitive labor markets that perceive

themselves as having a bad image. Whether the goal is to influence the

perception of the public in general or specific segments of the labor market, job

seekers form beliefs about the nature of the organisation well before they have

any direct interviewing with these companies. Companies with strong corporate

image and sound management practices usually attract best candidates for

vacancies compared to organisations who have a bad reputation in labour

relations.

Multinational companies in US, Australia and the like are exploring new

strategies to attract recruits. One such strategy is that of latest social networking

technology such as Twitter, Facebook, ‘forums’ and LinkedIn to recruit the best

and the brightest talent.

1. Provide an example of a recruiting advertisement which you have recently

encountered in the media e.g. newspaper, TV etc. List the job competencies

required in the vacancy

2. What is meant by the term “recruitment policy”?

Activity 5.1

Page 8: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.8

3. What is meant by the term ‘fringe benefits’? How does it help in the

recruitment process?

Recru itment Sources

A significant element of organisation’s recruitment strategy is its decisions about

where to look for potential applicants. Different sources of applicants can be

reached using different methods of recruiting. Company’s current employees are

a major source of potential applicants, commonly known as internal labour

market. Another potential source of applicants is people who don’t work for the

organisation; they are called the external labour market. Each of the major

sources from which organisations draw its recruits has its advantages and

disadvantages.

I n t e rn a l So ur c es The effective use of internal sources require a system for locating qualified job

candidates and for enabling those who consider themselves qualified to apply for

the opening. Qualified job candidates within the organisation can be located by

any one or combinations of the following channels:

computerised record system,

job posting, and

temporary worker pools.………...…………………………………………

i ) C o m p u t e r r e c o r d S y s t e m s

Computers have made possible the creation of data banks that contain the

complete records and qualifications of each employee within an organisation.

Known as Talent Inventories, the database usually include employees’ names,

prior jobs, experiences, performances, compensation histories and demonstrated

competencies. Some advance databanks also contain employees’ work related

interests, geographical preferences and their career goals. Like savings accounts,

these information systems allow organisations to screen its entire work force in a

matter of minutes and can be “withdrawn” anytime to fill an internal opening.

Page 9: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.9

i i ) J o b p o s t i n g

Job posting is a process of communicating information about a job vacancy on

company bulletin boards, employee publications or corporate websites or

anywhere else the organisation communicates with employees. Job postings

usually provide complete job descriptions. A well constructed job description

communicates competencies needed as well as organisational goals and

objectives. Inclusion of information about compensation and performance

standards makes job postings a popular mode of internal recruitment.

i i i ) T e m p o r a r y W o r k e r P o o l s

Temporary workers such as those in clerical jobs, accounting and word

processing categories often help organisations to meet fluctuations in their labour

demand which may arise from illness, vacations, terminations and resignations.

Establishing contacts with temporary pool of workers has often been beneficial to

education and health sectors. In- house temporary employees are generally

protected by the same employment laws, overtime provisions, and minimum

wage guidelines as those enjoyed by their full time counterparts

Adva n t a ges a nd D i s ad va n t ag es o f In te rna l Rec ru i t me nt For the employer, relying on internal sources offers several advantages. Internal

recruitment generates applicants who are well known to the organisation,

applicants are relatively knowledgeable about the organisation’s vacancies and

it’s faster and less expensive than external recruiting. Counterbalancing the

advantages of internal recruitment are several disadvantages. In some

circumstances potential candidates from outside the organisation should be

considered in order to prevent inbreeding of ideas and attitudes. Applicants hired

from the outside can bring with them the latest knowledge acquired from the

previous employers. Political infighting for promotion, discontentment among

those who are not promoted, criticism from those outside the organisation who

cannot get in are some of the other limitations of recruiting from within.

Ex te rna l S ou rce s Organisations that are growing rapidly and require large numbers of highly

skilled professionals often need to recruit from the external labour market as

internal recruitment simply cannot produce the number of people needed to

sustain continued growth. Even when companies have enough people within the

organisation, the internal applicants may not have the right competencies to fill

the required positions. Thus, it may be cheaper, quicker and easier for the firm to

hire people who have been trained elsewhere. Methods of recruiting from the

external labour market include: direct applicants and referrals, advertisements,

employment agencies, schools, and web sites sources.

Page 10: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.10

i ) D i r e c t A p p l i c a n t s a n d R e f e r r a l s

Direct applicants are people who apply for a vacancy without prompting from the

organisation. Referrals are people who apply because someone in the

organisation prompted them to do so. One advantage is that many direct

applicants are to some extent already “sold” on the organisation. Many job

seekers use social networks to help find employment. A benefit of such sources is

that they cost less than formal recruiting efforts. Considering these combined

benefits, referrals and direct applicants are among the best sources of new hires.

Some employers offer current employees financial incentives for referring

applicants who are hired and perform acceptably on the job. A major downside of

referrals is that they limit the likelihood of exposing the organisation to fresh

viewpoints. Sometimes referrals contribute to hiring practices that appear unfair

such as nepotism i.e. the hiring of relatives at workplace.

i i ) A d v e r t i s e m e n t s i n N e w s p a p e r s a n d M a g a z i n e s

One of the most widely used methods for contracting applicants is through

advertisements. Apart from the traditional modes of newspaper and magazine

advertising, organisations have now adopted to radio, television, billboards and

posters to advertise about their vacancies. The aim of recruitment advertising is to

make people aware that a vacancy exists. It is also an ideal opportunity for the

organisation to promote a specific corporate image to the community at large.

From the applicants’ perspective, an effective and attractive advertisement is

important because, as one study showed, there appears to be a positive

relationship between the accuracy and completeness of information being

provided through advertisements, and the recruitment process.

Advertising places a severe burden on the recruitment office. Many applicants

who don’t meet the minimum criteria of a job may still be attracted by the

advertisements and apply for positions. They do this in a hope that if employers

are not able to obtain suitable applicants for the position then their application

will be considered.

i i i ) E l e c t r o n i c R e c r u i t i n g

The Internet has opened up new outlook for organisations trying to recruit talent.

There are many ways to employ the internet for recruiting. One of the easiest

ways to get into “e-recruiting” is simply to use the organisation’s own Web site

to solicit applicants.

i v ) P u b l i c E m p l o y m e n t A g e n c i e s

Employers can register their job vacancies with their local state employment

office and the agency will try to find someone suitable, using its computerised

inventory of local unemployed individuals. In some developed and developing

countries governments provide funding to a variety of local employment

agencies. Private employment agencies provide much the same service as public

employment agencies, but primarily serve the white-collar labor market. Another

difference between the two types of agencies is that private agencies charge

employers for providing referrals.

Page 11: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.11

Adva n t a ges a nd D i s ad va n t ag es o f Ex t e rn a l Rec ru i t me nt

Hiring from outside the organisation is a relatively inexpensive and an effective

method of recruiting. In cases of employees trained by other organisations, hiring

companies will already have some background information on employee

performance, attendance and safety records through their due diligence process.

Employees recruited from outside bring innovate ideas and can be very effective

in changing the corporate culture of an organisation.

Opponents of external recruitment claim that outsiders may not fit into

organisation’s culture, a longer orientation is required for new recruits and some

claim that it can be a very expensive affair especially if recruits are from

overseas.

Figure 5.2 below gives a brief outline of the merits and demerits of external

recruitment.

Source: Nankervis, A., et al 2008:193.

Page 12: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.12

1. Explain the difference between ‘direct applicants’ and ‘referral’ categories of

applicants.

2. Discuss the merits of internal and external modes of recruiting

3. Explain the difference between an electronic and newspaper advertisement?

Activity 5.2

Page 13: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.13

Recru iter ’s ro le in a recrui t ing Process

Beh av i ou r an d Cha ra c t e r i s t i c s o f rec ru i t e r s

Research suggests that recruiters make a substantial difference when they do not

present themselves well during a recruiting process. Recruiters can have a

negative effect on applicants even if the job and the organisation are both

appealing. Some studies indicate that students for example, prefer recruiters who

have work experience in their specialties and have some personal knowledge of

the local universities. They also respond positively to recruiters, who are friendly,

knowledgeable, and truthful and who have some personal interest in the

applicants. If these characteristics are lacking in recruiters then organisations are

highly likely to lose out on some very capable applicants.

B e h a v i o u r o f t h e R e c r u i t e r

Many studies have looked at how well realistic job previews – background

information about jobs’ positive and negative qualities – can help organisations

minimise turnover among new employees. Realistic job previews requires that

in addition to telling applicants about the nice things a job has to offer like the

pay, benefits, opportunities for advancements etc, recruiters must also tell

applicants about the unpleasant aspects of the job such as “It’s hot, dirty and

sometimes you will need to work in the weekends”. Telling job applicants only

about the positive aspects of a job may work in a short run but in longer term it

may prove to be counterproductive. When applicants take jobs that do not fit their

skills or meet their expectations for career advancement, their performance and

morale at work are likely to suffer.

E n h a n c i n g t h e R e c r u i t e r ’ s I m p a c t

Although recruiters may have little influence on job choice, this does not mean

recruiters cannot have an impact. Researchers have tried to find conditions in

which recruiters do make a difference. Based on this research, an organisation

can take several steps to increase the impact that recruiters have on the people

they recruit such as:

Can provide timely feedback

Can avoid behaving in ways that convey the wrong impressions about the

organisation

Can recruit with teams rather than individual recruiters

Page 14: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.14

1. Discuss ways in which organisations could improve the effectiveness of their

recruiters

2. Briefly define the tem realistic job previews. How does it relate to employee

turnover?

3. Discuss the phrase ‘job applicants respond positively to recruiters who they

perceive as warm and informative’

Activity 5.3

Page 15: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.15

Managing Employee Turnover

Because of increased mobility of the working population, organisations these

days encounter numerous challenges in retaining their qualified employees.

Employees stay or leave organisations due to a variety of reasons. The number of

employees leaving an organisation within a reported period is called employee

turnover. The following section briefly explains two types of turnovers

experienced by employers: voluntary and involuntary turnover.

Vo lu n t a ry an d Inv o lu n t a ry T u rn ove r

Involuntary turnover occurs when organisations (employers) initiate the turnover.

Many organisations use the word ‘termination’ to refer to employees who has

been discharged for work for a discipline related reason. Termination of

employment can also result from internal organisational changes, economic

adjustments, plant closure, redundancy decisions or simply moving the factory

job to another location.

Voluntary turnover is initiated by individual employees, often when the

organisation prefers that the person stay as a member of the organisation. Both

kinds of turnover are costly, incur loss in productivity and diminish the image of

employers and organisations. For involuntary turnover, some former employees

may seek to redress their grievances through the courts, which may cost millions

of dollars to the organisations. Let us now consider some reasons for employee

turnover.

Un de rs ta nd i ng t he r ea so ns f o r Tu rnov er - P rocess o f J ob Wi th d ra wa l

Job withdrawal is a set of behaviours that dissatisfied employees perform to

avoid the work situation. The overall model of job satisfaction, job withdrawal

and manifestations of job withdrawal is illustrated by Figure 5.3 overleaf.

Read the section on voluntary and

involuntary turnover, job withdrawal and

job satisfaction in Chapter 10 of your

textbook.

R e a d i n g 5 . 2

Page 16: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.16

Causes of Job

dissatisfaction

Personal disposition

Tasks and roles

Supervisors and co-

workers

Pay and benefits

Manifestations of Job

withdrawal

Behaviour change

Physical job

withdrawal

Psychological job

withdrawal

Job

dissatisfaction

Job

withdrawal

Figure 5.3 An overall model of the job dissatisfaction-job withdrawal process

Source: From Human Resource Management, 4th

ed, by Kramar, Bartmar & De

Cieri, 2008

This model resembles to Figure 10.4 (p.304) in your textbook but has been

slightly modified for the purpose of simplicity. On the right hand side of the

model, we show a set of behaviours which arises out of employees due to job

dissatisfaction. These behaviours are classified under the headings of behaviour

change, physical job withdrawal and psychological job withdrawal. We present

each of these withdrawals in progression, that is, individuals try the next category

only if the preceding form of job withdrawal is either unsuccessful or impossible

to implement.

B e h a v i o u r C h a n g e

There are various causes of job dissatisfaction as outlined on the left hand side of

the model. The first response to dissatisfaction would be to try to change the

workplace conditions that generate the dissatisfaction. This is done through

pushing for changes in company’s policy or personnel which may involve

confrontation and conflict with the employee’s supervisor. From the manager’s

point of view, the complaints, confrontations, and grievances may be seen as an

act of threat. However, this is an opportunity for the manager to learn and solve

important organisational problems. Some employees may engage in whistle-

blowing, taking their charges to the media with the hope that when the public

learns about the situation, the organisation will be forced to change. From the

organisation’s point of view, whistle-blowing is harmful because of the negative

publicity.

P h y s i c a l J o b W i t h d r a w a l

If behaviour change fails or seem impossible, a disgruntled worker may

physically withdraw from the job. Some options for physically leaving a job

range from arriving late to work, calling in sick, requesting a transfer or even

leaving the organisation for good.………………………………………………….

P s y c h o l o g i c a l W i t h d r a w a l

If an employee is primarily dissatisfied with the job itself, he may display a very

low level of job involvement. Job involvement is defined as the extent to which

an individual is dedicated to a job. Someone with high job involvement for

example would work beyond expectation to complete a special project.

Organisational commitment is defined as the loyalty of an individual to the

organisation.

Page 17: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.17

Job Sa t i s f ac t i on a n d j o b w i th d ra wa l Job satisfaction is a pleasant feeling resulting from the perception that one’s job

fulfills or allows for the fulfillment of one’s important job values. This definition

reflects three important aspects of job satisfaction:

a. Job satisfaction is related to a person’s values, meaning what a person

consciously or unconsciously desires to obtain

b. Different employees have different views of which values are important. One

person may value high pay above anything else, another may value

opportunity to travel and yet another may prefer staying home and doing the

work.

c. The third important aspect of job satisfaction is based on perception of his or

her present situation, relative to his or her values.

Organisations can contribute to job satisfaction by addressing the four sources of job

dissatisfaction identified in our model, shown on the left hand side in Figure 5.3.

P e r s o n a l D i s p o s i t i o n s

Employers need to understand that dissatisfaction with other facets of life such as

spouse or family may attribute to performance at workplace. To address these

issues, employers:

Refer employee to employee assistance programs

Hire employees who have positive attitudes

T a s k s a n d R o l e s

Employers can improve job satisfaction by making jobs more complex and

meaningful. This can be done by:

Job enrichment

Job rotation

Developing and appropriate job roles

S u p e r v i s o r s a n d C o - w o r k e r s

The two primary sets of people in an organisation who affect job satisfaction are

co- workers and supervisors. Because supportive environment reduces

dissatisfaction, many organisations foster teambuilding (for example through

sports or social activities) through employee interaction.

P a y a n d B e n e f i t s

Human resource specialists can also help job satisfaction by establishing

satisfactory pay levels and communicate with employees about their pay structure

and pay raises.

Page 18: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.18

1. Discuss any three strategies employers may implement to improve job

satisfaction in organisations

2. Discuss the four types of conditions that lead up to job withdrawal

Activity 5.4

Page 19: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.19

Managing Employee Retent ion

The issue of employee retention has become a ‘hot’ topic among HR researchers

and practitioners. Two reasons have been identified for a growing focus on

employee retention: Firstly, the ongoing rise in employee turnover rates in many

industries and secondly, the cost involved in terms of the additional recruitment

and training that is needed to replace workers. However, it is inevitable that some

employee will obviously go as they will be lured by better and more attractive

terms and conditions from outside employers.

Numerous employee retention strategies have been documented in the HR

research literature. Some may be more suitable for a given organisation than

others. Some suggested retention strategies are discussed below:

In addition to addressing issues like personal disposition, tasks and roles,

supervisors and co – workers, pays and benefits, organisations can also

reduce unwanted turnover by improving their HR practices.

Implementation of a family friendly culture, allowing autonomy instead

of fixed hours of work, child friendly work sites, generous vacations,

sabbatical leave program for partners, and provisions of parental leave

should allow employers in successfully keeping their annual turnover

rates at negligible levels.

Another HR practice which may improve employee retention rate is

initiating a policy to minimise employee layoffs in organisations.

Intelligent managers are well aware of the price organisations pay in

sending people home for a reason or another. Once layoffs decisions are

instigated, profits may improve in short term but this may come with a

long term cost. Those who survive layoffs often display a low morale at

the workplace. Because of the fear of being displaced, some best

employees may look elsewhere for employment. Facing the threat of job

loss and seeing others lose their jobs can often be a bitter and a traumatic

experience. Thus some companies do everything possible to avoid layoff

in organisations.

Conducting exit interviews may present another opportunity for the

organisation to gather information for retaining its core employees. An

exit interview process will help organisations understand why people

leave and give clues as to where some improvements need to be made.

The primary purpose of the exit interview has always been the resolution

of unresolved and/or outstanding concerns of both the employer and

employee.

Employers must maintain ongoing and regular communication with staff

and a genuine sense of commitment throughout the organisation to

address workplace issues. They need to keep in mind that they should

treat employees the way they would prefer to be treated. If an employee

doesn’t prefer to socialise in organisational activities, they should be left

Page 20: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.20

alone. Each employee is a unique individual and should be given the

respect he or she deserves

Employers must demonstrate integrity and ethical behaviour, managing in

ways they are sustainable and socially responsible. Employers should

‘walk the talk’ and be an inspirational example to their staff of integrity,

honesty and decency. Have in place a transparent style of leadership

which refrains from favoring, colluding or even penalising a group of

workers.

There are numerous other retention strategies employers can use to retain its key

employees. However, the strategies mentioned above are adequate at this level of

your studies.

1. Why should organisations try to reduce employee turnover in their work

places?

2. What are exit interviews and why are they important to organisations?

Activity 5.5

Page 21: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.21

3. Identify the four factors that influence an employee’s job satisfaction (or

dissatisfaction). Which of these factors would be most expensive to change?

4. Discuss any four strategies employers could use to retain its key employees.

5. Explain the phrase “In spite of surveys and other efforts to retain employees,

some employees inevitably will leave the organisation”.

Page 22: Unit 5 Revised( 7th August)

Unit 5: Recruiting and retaining talent 5.22

Summary

In this unit we discussed an integral function of human resource management of

recruitment and thereafter explored ways on retaining of key employees in

organisations. Initially we defined the recruitment process followed by a brief

discussion on recruitment policies entities use to attract potential applicants to

their organisations. Subsequently, we examined the key recruitment sources of

potential job applicants before elaborating on the role of a recruiter in a

recruitment process. The second half of the unit basically deliberated on

employee retention, focusing on the correlation between job satisfaction /

dissatisfaction and employee behaviour. We concluded this unit with a short

discussion on some alternative human resource practices which may help

organisations in retaining its talent.

In the next unit, we describe and evaluate the selection process. We also look at

the methods and effectiveness of employment tests, interviews, applications and

resumes and the role it plays in the employee selection process. The unit ends by

describing the final selection process in choosing the right candidate.

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Unit 5: Recruiting and retaining talent 5.23

References

1. Kramar, R.,Bartram T.,Cieri.(2009) . Human Resource Management:

strategy, people, performanace. McGraw Hill, New York.

2. Ivancevich, J. M., Hoon, L. S. (2008). Human Resource management.

McGraw Hill, New York.…………………………………………………

3. Noe, R., Hollenbeck, J., Gerhart, B., Wright, P. (2011), Fundamentals of

Human Resource Management, 4th

ed., McGraw Hill, New York

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Unit 5: Recruiting and retaining talent 5.24

Glossary

It is important that you have a good understanding of the key terms that will be

used throughout this course. Start to develop your own glossary by completing

the following table, filling in the meanings that relate to the given terms.

W o r d s M e a n i n g s

Personal policies

Decisions of organisations on how it will carry out its human

resource management policies such as that of recruitment.

Internal Recruiting

Job posting

Public Employment

Agencies

Realistic Job

previews

Involuntary turnover

Job dissatisfaction

Organisational

commitment

Exit interviews

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Unit 5: Recruiting and retaining talent 5.25

Ac t i v i t y 5 .1

1. Students’ responses would vary. However, most job advertisements would

require competencies which involve applicants previous work experience,

their academic qualifications, technical skills, interpersonal skills, ability to

work under pressure, some personal skills etc.

2. Recruitment policy specifies the objectives of recruitment and provides a

framework for implementation of recruitment program. It, may also involve

organisational system to be developed for implementing recruitment

programs and procedures by filling up vacancies with best qualified people. A

significant recruitment policy would be that of promotion from within.

3. Fringe benefits (also called employee benefits are various non-wage

compensations provided to employees in addition to their normal wages or

salaries. These benefits may come in the forms of housing allowance,

subsidized education costs, phone privileges etc.

Ac t i v i t y 5 .2

1. Employee referrals occur when current employees of an organisation inform

their acquaintances about openings and encourage them to apply. Direct

applicants are people who apply for vacancies without prompting from the

organisation. They declare their interest in working for the organisation or

they may simply have a good impression of the organisation and want to

explore the possibility to work there.

2. Refer to Figure 5. 2

3. Online or electronic recruiting generally involve posting career information at

company web site to address people who may be interested in the particular

company .It may also involve posting paid advertisements at career services

to attract people who are searching for jobs.

Newspaper or media advertisements are common which contain

advertisements to acquire recruits. An example of a media advertisement is

given on page 5.5 of this unit.

Ac t i v i t y 5 .3 1. The impacts that recruiters have on the people they recruit include:

The organisation can have recruiters who could provide timely feedback.

Applicants dislike delays in feedback and can draw negative opinions about

the organisation without timely feedback being provided to them,

Feedback on selected activities

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Unit 5: Recruiting and retaining talent 5.26

Organisations can have recruiters, who avoid behaving in ways that might

convey the wrong impression about the organisation, and the organisation can

recruit with teams rather than individuals

2. RJP requires that in addition to telling applicants about the nice things a job

has to offer, recruiters must also tell applicants about the unpleasant aspects of

the job as well. Research suggests that RJP have a weak and inconsistent effect

on employee turnover.

3. Warm means the recruiters seem to care about the applicant and to be

enthusiastic about the applicant’s potential to contribute to the organisation.

Informative means recruiters provides the kind of information the applicant is

seeking

Ac t i v i t y 5 .4

1.By making jobs more complex and meaningful through such approaches as job

enrichment and job rotation, clarifying employees' roles by clearly spelling out

work methods, schedules, and performance measures, fostering team building

among supervisors and co-workers both on and off the job through activities

such as bowling leagues.

2. Job withdrawal is a set of behaviours that dissatisfied individuals enact to

avoid a work situation. The four general conditions that may cause job

dissatisfaction are: personal dispositions, tasks and roles, supervisors and co-

workers, and pay and benefits.…………………………………………………

Personal dispositions—several personal qualities have been found to be

associated with job dissatisfaction, including negative affectivity and

negative core self-evaluation.

Tasks and roles—as a predictor of job dissatisfaction, nothing surpasses

the nature of the task itself. While many aspects of a task have a link to

dissatisfaction, of particular significance are the complexity of the task,

the degree of physical strain and exertion required, and the value the

employee places on the task.

Supervisors and co-workers—Negative behaviour, particularly on the part

of supervisors, can produce tremendous dissatisfaction. Research by the

Corporate Leadership Council found that employees who said they

planned to leave their jobs most often said it was because managers acted

as if they did not value the employees.

Pay and benefits—Employees also care about their earnings. For most, a

job is their primary source of income. In addition, pay may also be an

indicator of status within the organisation and in society at large, so it

contributes to some people's self-worth.…………………………………...

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Ac t i v i t y 5 .5 1. Organisations should try to reduce both kinds of turnover (voluntary and

involuntary) because both are costly due to the need to recruit, hire, and train

a replacement. Involuntary turnover also can result in lawsuits and even

violence at workplace, something which organisations should avoid at all

cost.

2. An exit interview is a meeting of the departing employee with the employer or

a supervisor to discuss the employee’s reasons for leaving the organisation.

These interviews are important because they provide feedback to the

organisation about their actions toward and treatment of the workers.

Additionally, they can indicate problem areas.

3. Four factors that influence an employee’s job dissatisfaction/satisfaction

include personal disposition, tasks and roles, supervisors and coworkers, and

pay and benefits. Obviously, modifying the pay and benefits structure could

prove to be the most expensive.

4. One of the more common methods to retain key employees would be to try to

identify and select employees who have personal dispositions associated with

job satisfaction. Jobs could be made more complex and meaningful,

reinforcing shared values and encourage social support among employees,

establish satisfactory pay levels and constantly communicate to employees on

the pay structure and pay raises.

In addition to the above, employers could implement HR practice which are

child friendly, worker flexibility and other HR policies which inculcate family

values among employees. Also minimizing layoffs and conducting exit

interviews will to some extent minimise employee turnover.

5. Some employee turnover is unavoidable, even in the best organisations. People

retire or move for non- job related reasons. Better opportunities elsewhere,

aggressive recruitment by competitors, workload and stress levels, family

reasons difficulties with supervisors are only some reasons will leads

employees to quit.

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