Hiring Employees For a Business

• Hiring employees is important for every business
• Effectively selecting and hiring the right people avoids high training costs and poor performance
• Recruiting and hiring is an ongoing process for many companies

Establishing A Need

• Establish the need for a new employee due to employees leaving, being promoted, retiring, or the creation of new roles
• HR needs accurate information about the position to hire a qualified person
• HR uses job descriptions and job specifications to find the best applicant
• Job descriptions define job duties and responsibilities
• Job specifications describe worker qualifications and needed skills

Recruiting Applicants

• An effective recruitment process yields appropriately qualified applicants
• Internal recruitment fills positions with existing employees
• External recruitment seeks new employees from outside the company
• Common external recruitment resources: current employees, onsite applications, the internet, employment agencies, and advertising

Current Employees and Onsite Applications

• Current employees can show others that a company is a good place to work
• Onsite applications used to be the most popular application method
• Companies prefer online applications today
• Some companies still accept onsite applications to help with future job openings

The Internet

• The internet is a popular resource for recruiting personnel
• Popular websites include Indeed, Monster, LinkedIn, and Jobs
• These websites help people from around the nation and world find available jobs
• A main function of these websites is to have resumes ready for applicants to upload

Employment Agencies

• They actively recruit, evaluate, and help people prepare for and locate jobs
• People may be hired by an employment agency and then hired by the company, making it a good "stepping stone"

Advertising

• It is a commonly used method of attracting job applicants
• Companies use local media, newspaper, television, and radio

Processing Applications

• Applications go through a process to determine the best applicant
• The steps include: application review, screening, testing, interviewing, selection, background check, and job introduction

Application Review

• Each applicant is reviewed to eliminate those who do not meet minimum qualifications
• Qualifications come from the job description and specification
• They include: level of education, previous employment experience, specific training, certifications, or licenses

Screening and Testing

• Critical applicant information, such as education and employment history, is verified
• Testing assesses if an applicant meets the standards for required knowledge, skills, and abilities

Interviewing and Selection

• Face-to-face interviews provide more information about the applicant, compared to a resume or application -In interviews they ask questions related to the applicant’s qualifications and potential
• Comparing information gathered in the selection process with job requirements to make a final decision
• Some companies base offers on conditions such as a drug test

Job Introduction

• HR helps a new employee with paperwork and reviews employment requirements and benefits
• New hires receive onboarding training to become familiar with day-to-day operations and procedures

Changes in Employment Status

• Changes in employment status happen in many different ways

Promotions

• Promotions advance an employee to a position with more authority and responsibility
• It usually includes more pay, prestige, benefits, and responsibility
• Promotions are best because the employees are already trained

Transfers

• Transfers assign an employee to another job with the same level of responsibility and authority
• It is sometimes called a lateral move

Discharges

• Discharges release someone from the company due to inappropriate work behavior
• Careful procedures ensure the reasons for discharge are a clear violation of communicated company rules and policies

Layoffs

• Layoffs reduce a company’s workforce temporarily or permanently
• Employees may be called back when jobs are available again

Employee Turnover

• The rate of turnover is important because losing experienced employees means new employees must be hired and trained
• New employees are not as experienced or productive as former employees
• A company with a high employee turnover ratio is not a good company to work for

Exit Interviews

• Whenever an employee leaves, managers should be interested in the reasons why
• Companies use exit interviews to improve the workplace environment and to improve employee turnover
• Exit interviews should be carefully planned out with the exact questions ready to go