Recruitment and Retention Not sure where to put retention Belongs with selection, performance appraisal, compensation, training and orientation, diversity, and strategic HRM Belongs with Recruitment • If good retention then reduces need for recruitment both directly and indirectly. General Importance of Retention • • • • • List of reasons is numerous. Employee productivity. Accidents. Surrogate measure of morale Positive group dynamic Person Org fit and PG fit take time to develop. Less critical with PJ fit. HR management is a central retention issue. • Which specific HR practices (selection, etc. include diversity mangement) influence retention and how do they influence it. Other sources are numerous too • But HR is very important for organizational based turnover. Indeed organizational turnover and total labor cost per unit sold are two significant indicators of organizational effectiveness. Turnover is directly related to HR. The second is more managerial. Psychological Contract and Turnover • Psychological contract concern expectations regarding working conditions, job duties/requirements, performance expectations, work style (such as pace, autonomy, amount of change). Written contract and Inferred contract See p. 276 • How does one develop expectations. • Recruitment, selection, orientation, performance appraisal, treatment of others, reward systems. • Becomes a big issue in recruitment as we will mention shortly. • Are the expectations met or unmet. Recruitment • Two issues Building a good qualified applicant pool (HR concern). • Getting desired applicants to accept job offers (Supervisor concern). • Strategic issues (HR and higher management). Building a qualified applicant pool • Two Broad ways to attract • Internally or Externally. Advantages and Disadvantages of each. Strategic Choice. • Types of fit and Internal vs external recruitment. Why? How to recruit internally • Informally is far most common. • Chain reaction and unplanned. • Not the best. Manpower replacement charts. Provides better guidance. If two are similarly equal then pick one who has someone ready to takeover their job. • Also psychological contract if shared. Sometimes linked to Career ladders • Job posting is an employee centered approach. Let current employees apply. Similar approach as external. Interviews, tests, but open competition. Needs to really be open. Second option is employee centered Recruiting Externally • All firms need to do so. Entry level positions, growth, turnover rates. Options • Hot issue is internet recruiting. • How to recruit effectively • Article. In reality • Referrals is most commonly used. • Why so popular? Others • Just to mention some. Intriguing issues Special populations--Video Temps and PTimers. Special promotion tactics. Spring Break. Recruiting for diversity—No single method. Securing job applicants. • What influences the ability to get people to accept job offers? • Generate a list. Firm based Managing the application process Interaction Based Recruitment Benchmarking Realistic vs Traditional Job previews • The information you tell applicant. • Think about Financial services rep for an insurance company. Plusses and minuses • Traditional job preview. Purpose is to engage in standard marketing. Emphasize the opportunities (even inflated) Realistic job preview • Present commonly occurring negative and positive attributes. Advantages of Traditional Job Previews Advantages of Realistic job previews. Job choice is a two way street • Whose choice is this in the HR triad. Two different cases. Split the class. • Detassel corn • Fast food. • Both minimum wage jobs—always highest turnover. Problem Putting it all together • You are responsible for putting together corn detassel teams. Long hours, travel, to different sites. Overtime pay, 10-20 hours a week. Minimum wage, no benefits. Pay for transportation to fields. • You have some choices over scheduling and some flexibility to offer lower cost benefits. • Need to hire 10 teams 4 people. One crew chief on team gets a 90 cent per hour pay increase. Four weeks only. How are you going to do it. Keep in mind only 75% will be around by week 2. What would be • • • • Modes of recruitment What is the population you would target. Special promotions? How do you make the job attractive to get people to accept job offers. Assume unemployment is 4.8% Working at your favorite fast food joint. • You are the head. Three full time shift managers. Three full time assistant managers. 30 part time employees. Working 10-20 hours a week. Experience 120% turnover annually. Expect to hire approximately 38 part time employees and 3 full time employees next year. • Typically short staff 1.5 days per week. No shows, sick, quits, etc. • Pay is low, benefits are available for FT only. • 50% food discounts for all employees (at cost). • What can be done to reduce turnover rates. What is your strategy for strengthening recruitment efforts. • • • • Modes of recruitment What is the population you would target. Special promotions? How do you make the job attractive to get people to accept job offers. Assume unemployment is 4.8% Next class • Read when a new manager stumbles. • What did the organization do to make the manager stumble? • You are either in HR or you are his supervisor (pick one and tell me). What would you do to avoid this in the future (identify two things). • Less than one page. • Who is presenting next.