C19RT Exam Notes - Recruitment

**C19RT EXAM NOTES** **[Lecture -- 6 (Recruitment)]** 1. Recruitment- Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and onboarding employees. In other words, it involves everything from the identification of a staffing need to filling it...

**C19RT EXAM NOTES** **[Lecture -- 6 (Recruitment)]** 1. Recruitment- Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and onboarding employees. In other words, it involves everything from the identification of a staffing need to filling it. It is the process of actively seeking out, finding and hiring candidates for a specific position or job. 2. Internal vs external recruiting- Internal recruitment involves filling job vacancies with existing employees, while external recruitment involves hiring new employees from outside the organization. Both approaches have their benefits. Internal recruitment can boost employee morale and retention, while external recruitment can bring in fresh perspectives and new skills. 3. Internal recruitment- Internal recruitment refers to the practice of filling job vacancies within an organization by considering existing employees for the position. It involves identifying and promoting suitable candidates from within the company, such as through internal job postings, employee referrals, or talent management programs. For instance, these new hires might make a lateral move from a different department or receive a promotion to a more influential job title. It involves promoting employees from lower positions or transferring them from one department to another. 4. Advantages of Internal Sources of Recruitment- a. Knowledge retention: It allows the company to retain institutional knowledge and experience. When existing employees are promoted, they already understand the company\'s culture, processes, and values and thus transition smoothly into the new role. b. Boosts employee morale: Knowing that there are growth opportunities within the organization can motivate current employees to perform better in their roles. It also improves loyalty towards the organization. c. Shorter training period: Internal recruitment often results in shorter training periods as existing employees are already familiar with the company\'s operations. d. Cost-saving: Internal recruitment can be cost-effective as it eliminates or reduces the expenses associated with external advertising, recruitment agencies, job board fees, marketing the role at events, processing applications, paying agencies, interviewing candidates, running background checks. and onboarding new employees. e. Time-saving: Internal recruitment lets you speed past all of the most time-consuming stages of the recruiting process. f. Familiarity with the Organization: Internal candidates are already familiar with the organization\'s culture, policies, and processes, reducing the time needed for onboarding and training. g. Cultural Fit: Current employees are already familiar with the company culture and values, so internal recruitment can help maintain and strengthen the existing organizational culture. h. Track Record: Internal candidates have a track record within the organization, reducing the risk of a bad hire. i. Employee Loyalty and Morale: By promoting from within, organizations can boost employee morale, loyalty, and motivation by demonstrating that they value and recognize the skills and contributions of their current staff. j. Opportunities for Career Development: When employees see opportunities for advancement within the organization, it can lead to increased job satisfaction and a higher level of commitment to the company. This can also result in improved employee retention. 5. Disadvantages of Internal Sources of Recruitment- a. Limited Diversity: Internal sources offer limited diversity in terms of perspectives and ideas brought into the organization. By continually promoting from within, companies may miss out on fresh insights that external candidates could bring. b. Skill Gap: Not all positions can be filled internally due to a lack of specific skills or expertise among current staff members. You limit your talent pool: There's an entire world of potential candidates out there, and by choosing to focus on hiring internally you might be overlooking applicants who are better suited to the role. External recruits can have skills and talents your existing teams are lacking or knowledge and experience that would benefit the company as a whole. c. Internal political risks: Resentment and jealousy sometimes arise when internal recruiting leads to one employee winning out over another. Remaining transparent and using a fair, merit-based hiring procedure in your hiring process can help mitigate these risks. d. Increased training costs: If an internal candidate has some qualifications but not all, you may spend a lot of time and money training them to fill the position. An external candidate who already has the necessary training doesn't require the extra expense. e. Stagnation: Over-reliance on internal recruitment can discourage external talent from applying, potentially leading to stagnation. 6. Advantages of external recruitment- a. Fresh Perspectives: External recruitment brings fresh perspectives and new ideas to the organization. New employees may offer innovative solutions to existing problems, contributing to the company\'s growth. When a company goes with an external recruitment method, there is a quite better possibility of finding and identifying a fresher candidate who is capable of delivering new skills and inputs for the betterment of the company. b. Diverse Talent Pools: By casting a wider net outside of the organization, companies can attract candidates from various backgrounds, experiences, and cultures. This diversity can lead to enhanced creativity, better problem-solving abilities, and improved decision-making processes within the organization. By hiring externally, you can search for more qualified candidates with specific skills and talents that could take your organization in a new direction, help you expand more quickly, and develop and train your existing workforce. c. Increased diversity: Successful companies require diversity in demographics, experience and thought so they can better leverage a varied customer base. Likewise, a diverse workplace enhances company culture and widens your organization's problem-solving capabilities. d. Specialized Skills: External recruitment allows organizations to attract candidates with specific skills and expertise that may not be available internally. e. Specific Expertise: External recruitment allows the company to bring in individuals with specific expertise that may not be available within the organization. External recruitment presents the company with suitable candidates, qualified and experienced in the field. Eventually, the company selects and appoints the best. New Business Insights: Hiring externally provides access to individuals with experience in different companies, bringing in new and creative business methods and ideas. Therefore, hiring a candidate with external recruitment makes things clear and better for the company who is in desperate need of fresher skills and inputs for the overall growth of the company. f. Better growth: When a company selects a candidate with high potential, then there is a higher possibility of the overall growth of the company. The employees within the organization also broaden their capacity and may try to match with the new talent. Therefore, external recruitment holds on to the objective where it handles the selection procedure sorting by finding a skilled and qualified candidate for the position offered. g. Ideas from other industries: Another smart factor that can be observed from candidates recruited from external recruitment is that they offer unique and new ways that are followed in the competitor or other companies they worked for. The organization can gain insight into various other aspects of other industries by means of external recruitment. 7. Disadvantages of external recruitment- a. Longer onboarding time: One of the disadvantages of external recruitment is the potentially longer onboarding time for new hires. Unlike internal candidates who are already familiar with the company\'s culture and processes, external recruits often require more time to acclimate. This can lead to delays in productivity and increased training costs as they get up to speed. Onboarding involves structured training, a degree of mentorship, and regular check-ins to ensure things are going smoothly. b. Expensive process: Recruiting externally requires conducting job postings, reviewing resumes, conducting interviews, and onboarding new hires. This process can take a significant amount of time and effort. Recruiting staff is costly and time-consuming, with expenses ranging from advertising the role and licensing the software required to automate and review large numbers of applicants, to training, onboarding, even potential relocation for the new employees. c. Integration challenges: There might be challenges in integrating new employees into existing teams due to unfamiliarity with colleagues and established workflows. External recruits are strangers to your company and the people who work there. That means it's going to take them a little longer to settle into your company's culture and way of doing things. d. Increased risk of turnover: Starting a new job is tough, as new recruits often struggle with feeling overwhelmed, underqualified, or overlooked by their new employer. e. Risk of Mismatch: There is a risk of hiring a candidate who is not the right fit for the organization, as recruiters may not have a full understanding of the candidate\'s work style and capabilities. f. Time-consuming: External recruitment consumes time---from advertising, selection, and interview to recruitment. Moreover, the more potential candidates come up; the more selective the hiring process becomes, thereby consuming more time. It usually takes longer to hire externally due to the need for more extensive searches and assessments, although working with the right recruitment partner can help you considerably reduce time to hire and save time and money. 8. Types of external recruitment- a. Advertisement- This is one of the most commonly used, yet one of the most effective types of recruitment strategies. Advertising is simply putting up job postings on various platforms such as LinkedIn, your company's career site, and other social media platforms with the potential to attract candidates. b. Social Media Recruitment- Employers can take advantage of this and focus on advertising their jobs as well as company culture on social media attracting target candidates. Employment exchanges- A term that has come from ages, employment exchanges are mostly run by the Government. Many candidates register themselves under these employment exchanges and are then sponsored by employers for recruitment to open job roles or advertised. Employment exchanges are run by private individuals and are equipped to supply the required manpower. c. Educational Institutions- Educational institutions are a major source to attract potential candidates as students fresh out of college. This type of recruitment is popularly called Campus Recruitment, wherein employers interview students and hire the best ones for their open roles. d. Recruitment agencies- Yet another popular and reliable type of recruitment, engaging with an expert third-party Recruitment services provider does not only help you recruit the best candidates for the job but also provide you with full-scale HR (Human Resources) services and recruitment services as per your needs. There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns. e. Word of mouth- Large brands and well-known companies can leverage word-of-mouth recruitment because unsolicited job seekers approach them daily. With an established employer brand recognized as an employer of choice, they only need to announce that they're hiring to attract a strong response. **[Lecture -- 7 (Selection)]** 9. Selection- Selection in HR refers to the systematic process by which an organization identifies the most suitable candidate for a specific job role. The selection process is vital as it impacts organizational performance, workforce compatibility, and long-term employee retention. Key goals include minimizing hiring risks and aligning candidates' skills and values with the organization\'s needs. 10. The 'classic trio' selection method- 1. Application Form- a. Purpose: Initial screening; captures basic qualifications. b. Usage: Used by over 80% of employers. Pros: Consistent and standardized; helps with initial shortlisting. c. Cons: Limited in capturing personality or soft skills. 2. Interview- a. Purpose: In-depth evaluation of candidate fit. b. Usage: Used by nearly all employers. c. Types: Structured, unstructured, panel. Pros: Assesses communication skills, cultural fit, problem-solving. d. Cons: Can introduce bias; performance may vary. 3. Reference Checking- a. Purpose: Verifies candidate background and behavior. b. Usage: Used by over 75% of employers. c. Pros: Confirms previous performance, reduces hiring risk. d. Cons: Potentially biased feedback; time-consuming. 11. Online sifting- **online sifting** refers to the automated process of screening job applications using digital tools or software. This method is primarily used to manage large volumes of applications by filtering candidates based on specific criteria set by the hiring team, such as experience, skills, education, or keywords relevant to the job description. 12. Interview formats- d. One-to-One Interview: Informal and allows for a comfortable conversation, but risks information overload and personal bias. e. Two Interviewers/Panel Interview: Reduces bias with multiple perspectives, though challenging to organize and can feel intimidating for candidates. f. Sequential Interview: Offers a thorough evaluation from different interviewers but can be repetitive and lengthy, risking candidate dropout. g. 360-Degree Interview: Used for senior or team-critical roles, providing comprehensive feedback but can be time-consuming. 13. Employment referencing- Employment referencing is an essential part of recruitment because it gives employers a way to verify your qualifications and experience. By contacting recent employers, recruiters can confirm whether you were a good employee and that your CV is accurate, which can give them the confidence to make you an offer. **[Lecture -- 8 (The new employee)]** 14. Employment Contract- A contract of employment is a formal, legally binding agreement between an employer and employee and is the basis of the employment relationship. It details the rules, responsibilities, and expectations for the work relationship. Employment contracts are usually formal written documents recorded in hard copy or digital form. The employee or employer can reference the employment contract to resolve disputes or misunderstandings during employment. 15. Psychological contract- The psychological contract refers to the unwritten, intangible agreement between an employee and their employer that describes the informal commitments, expectations and understandings that make up their relationship. A psychological contract helps establish trust and commitment between the employer and employee. Both clearly understand what is expected from them in the workplace and can focus on delivering. Employees who believe their psychological contract is fair (i.e., they receive as much as they give) are generally more motivated and committed to their work and the company's wider goals and more likely to go above and beyond to perform. 16. Employee induction- In the context of Human Resource Management (HRM), "induction" refers to the process of introducing and orienting new employees to their organization, their job roles, and the company's culture and values. Employee induction is a dedicated process organizations use to welcome new employees and introduce them to their new workplace. This process typically includes activities that familiarize new hires with company culture, organizational structure, and their specific roles and responsibilities. The primary goal of company induction is to help new employees integrate into the organization smoothly, understand their job responsibilities, and become productive members of the team. Induction involves orientation and training of the employee in the organizational culture, and showing how he or she is interconnected to (and interdependent on) everyone else in the organization. 17. Induction improvement strategies- Several key features enhance the induction experience, focusing on effective integration and engagement: h. Updating Procedures- Keeping induction content up-to-date ensures relevance, helping new employees align with current standards and avoid outdated practices. i. Consulting New Starters- Direct feedback from new hires allows for program refinement, fostering a culture of openness and making new employees feel valued. j. Prioritizing Induction- Continuously focusing on induction signals its importance, driving a culture of ongoing improvement in onboarding practices. k. Multiple Communication Methods- Combining various communication styles (e.g., digital and in-person) helps accommodate diverse learning preferences, enhancing comprehension. l. Job-Specific Training- Role-specific training equips new hires with the necessary skills for their positions, reducing the learning curve and boosting confidence. m. Providing a \'Welcome\' Pack- A welcome pack offers practical information and a personal touch, making new employees feel supported and informed from day one. n. Senior Management Involvement- Involvement of top leadership in orientation shows commitment to new hires, reinforcing their importance within the organization. o. Covering Informal Rules- Including informal workplace norms aids cultural adaptation, helping new employees integrate into both official and social aspects of the organization. 18. Challenges of employee turnover- a. **Increased Recruitment Costs:** Recruiting new hires involves advertising job openings, conducting interviews, and onboarding, which require a substantial financial investment. These costs can be particularly burdensome for mid-level roles, where hiring expenses often range from 16% to 20% of the employee\'s annual salary. b. **Loss of Institutional Knowledge:** Experienced staff often carry valuable expertise and insights that are difficult to replace. This disruption can affect workflows and decision-making processes, especially if the departing employee held a critical role within the organization. c. **Loss of Revenue:** When positions remain vacant or are filled by less experienced individuals, productivity can decline, resulting in delays or substandard service delivery. This directly affects customer satisfaction and profitability, especially in industries where maintaining client relationships is crucial. d. **Reduced Productivity:** Remaining employees often have to take on extra responsibilities to fill the gaps left by departing colleagues. This increased workload can lead to burnout and inefficiencies, making it harder for teams to meet deadlines and maintain quality standards. e. **Low Morale:** Frequent departures create a sense of instability and uncertainty among the workforce. Employees may feel anxious about their job security or demotivated due to the additional workload and changes in team dynamics. f. **Damage to Employer Brand:** When employees frequently leave, it raises questions about the company's work culture and management practices. Negative reviews on platforms like Glassdoor can deter top talent from applying, making it harder to attract skilled professionals. g. **Client and Customer Dissatisfaction:** Departing employees, particularly in customer-facing roles, can disrupt the continuity of service. This leads to clients feeling neglected or frustrated, which can harm the company's reputation and result in lost business opportunities. h. **Training and Onboarding Challenges:** New hires require time and resources to be trained, delaying their ability to contribute effectively to organizational goals. This process can strain existing training teams, reducing the overall quality of the onboarding experience. i. **Higher Workload for Remaining Employees:** As they take on additional responsibilities, their stress levels and absenteeism may increase, potentially resulting in a cycle of further resignations. Over time, this continuous strain can have a cascading effect on the organization's overall performance. 19. Advantages of employee turnover- 1\. Introduction of Fresh Ideas and Innovation Turnover allows organizations to bring in new employees who introduce fresh perspectives and innovative solutions. These new hires often have experiences from other industries or companies that can help the organization stay competitive and foster creative problem-solving. 2\. Enhanced Team Dynamics Replacing underperforming employees or those not aligned with the company culture can improve team cohesion. This results in better collaboration, productivity, and a more positive work environment, which ultimately supports organizational goals. 3\. Flexibility to Adapt to Change Turnover enables organizations to adjust their workforce to meet changing business needs. As industries evolve, bringing in employees with relevant skills ensures the company stays competitive and adapts more easily to new market trends. 4\. Opportunity for Internal Promotions Employee turnover creates opportunities for internal promotions, which can boost morale and motivate existing staff. When employees see opportunities for advancement, it encourages loyalty, reduces stagnation, and enhances job satisfaction. 5\. Improved Employee Fit and Alignment Turnover allows organizations to replace employees who are not a good fit for the company's values or goals. This leads to a workforce that is more aligned with the organization's mission, which can enhance productivity, engagement, and overall performance. 6\. Reduced Resistance to Change Long-standing employees may resist organizational changes. Turnover can bring in individuals who are more adaptable and open to new strategies or processes, facilitating smoother transitions and fostering a more flexible organizational culture. 20. Employee turnover cost- i. Direct Costs - Turnover involves direct expenses like severance pay, recruitment fees, and new hire costs (e.g., signing bonuses, equipment). These are the immediate financial impacts of replacing an employee. ii. Administrative Costs - There are costs related to administrative tasks such as processing employee departures, handling recruitment, and onboarding new hires. HR staff also spend time on paperwork, contract preparation, and training. iii. Efficiency-Related Costs - Turnover can temporarily reduce productivity. Before an employee leaves, their performance may drop, and interim staff or a new hire will need time to get up to speed, which affects efficiency. iv. Potential Lost Opportunities - Losing experienced employees means a loss of knowledge and expertise, which can affect operations and decision-making. High turnover can also disrupt customer service and harm relationships with clients, leading to reputational damage. 21. Reasons for employee turnover- i. Pull Factors: These are external attractions that pull employees away from their current job. Common pull factors include better job opportunities elsewhere, attractive compensation packages, exciting career pivots, and the chance for personal growth or new challenges. Employees may also be attracted to companies that offer more flexible work arrangements or better work-life balance​. ii. Push Factors: Push factors are internal issues within the organization that drive employees away. These can include dissatisfaction with compensation, lack of career development opportunities, poor work-life balance, toxic work culture, and a lack of professional recognition. If employees feel undervalued or unsupported, they are more likely to seek opportunities elsewhere. iii. Unavoidable Turnover: These are factors beyond the control of both the employer and employee. Examples include retirement, health issues, maternity leave, non-return from leave, or relocation due to personal reasons. iv. Involuntary Turnover: This occurs when the organization initiates the separation. It can be due to performance issues, restructuring, layoffs, or redundancies. Unlike voluntary turnover, this type is driven by organizational needs rather than the employee's personal choices​. 22. Exit interview- An exit interview is a formal conversation between an employee who is leaving a company and a representative, typically from HR. The primary purpose of this interview is to gain insights into why the employee is departing and to gather feedback about their experience at the organization. 23. Challenges of exit interview- i. Optimistic Outlook: Employees who have already secured new employment may be inclined to provide more positive feedback about their former job, influenced by the relief of leaving. This can result in less critical feedback, making it harder to identify real issues. ii. Potential for Inaccuracy: Some employees might not fully disclose the true reasons for their departure, often due to a desire to avoid confrontation or damage to their professional reputation. This could lead to incomplete or sugarcoated information. iii. Timing and Emotional Disconnect: The timing of the exit interview is crucial. If it happens too close to the employee\'s departure, emotions can cloud their feedback. Additionally, if done post-departure, employees may no longer feel invested in offering honest insights. iv. Lack of Follow-Through: Exit interviews risk becoming a formality if organizations fail to act on the feedback received. Without concrete follow-up, the feedback may be seen as ineffective or ignored, rendering the process less impactful. 24. Nine areas identified by Griffith and Hom (2001) for employers to consider in managing employee turnover: i. Realistic Job Previews: Providing realistic job previews helps set clear expectations for new employees, reducing the likelihood of them leaving due to unmet expectations. This can lead to better job satisfaction and lower turnover. ii. Employee Selection: Effective selection processes ensure that the right individuals are hired for the right roles. A strong match between the employee\'s skills, values, and the job reduces the chances of early turnover. iii. Job Enrichment: Enriching jobs by increasing responsibility and providing opportunities for growth can help retain employees. Employees who feel challenged and valued in their roles are less likely to leave. iv. Workspace Characteristics: The physical environment plays a significant role in employee satisfaction. A well-designed workspace can improve morale and productivity, leading to reduced turnover. v. Induction Practices: Strong induction or onboarding processes ensure new employees feel welcomed and understand their roles from the start. Effective induction programs lead to better integration and reduce the likelihood of early departures. vi. Leader-Member Exchange: Building strong relationships between leaders and employees can foster trust and commitment. High-quality leader-member exchanges are linked to increased job satisfaction and lower turnover rates. vii. Reward Practices: Competitive compensation, benefits, and recognition are critical for retaining employees. Fair and rewarding practices help employees feel valued and appreciated, which can reduce turnover. viii. Demographic Diversity: A diverse workforce, where employees feel their unique contributions are valued, can enhance job satisfaction. Addressing demographic diversity also includes managing employee perceptions of fairness and inclusion. ix. Managing Inter-role Conflict: Balancing the demands of work and family is essential to preventing employee burnout. Employers who support work-life balance through flexible policies help reduce turnover and improve retention.