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HRM Case Study: Suzuki Philippines - Talent & Retention

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Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
Understanding the Role of Human Resources in
Driving Success at Suzuki Philippines
Suzuki Philippines - Laguna, Philippines
Clarine Gail L. Armada, Gelsey Ann N. Baniquet, Larenz B. Galang, Bea
Dominique M. Pagtalunan
BACKGROUND
Suzuki has been a prominent player in the Philippine automotive
market, offering a diverse range of vehicles that cater to the needs of local
consumers. Since its entry into the market, Suzuki Philippines has
established itself as a trusted brand known for producing affordable,
reliable, and fuel-efficient cars. Suzuki’s focus on innovation, quality, and
customer satisfaction has made it a key contender in the highly
competitive Philippine automotive industry.
The Human Resource (HR) department at Suzuki Philippines plays a
vital role in driving the company's success by fostering a supportive and
dynamic work environment. With a focus on talent development,
employee well-being, and organizational growth, the HR team ensures
that Suzuki attracts, retains, and nurtures skilled professionals who are
aligned with the company’s values and goals. Through various programs in
training, performance management, and employee engagement, Suzuki
Philippines aims to build a highly motivated and capable workforce.
However, no matter how effective the HR department is, success
ultimately depends on the collaboration and dedication of all employees
across different departments within the company. With the growing
demand for skilled professionals and the rapid pace of change in
technology and business practices, maintaining a stable and engaged
workforce is crucial, and more so in recruiting other skilled professionals.
INTENDED OUTCOME
This study seeks to implement talent acquisition and retention
programs that enhance recruitment efficiency, align with organizational
objectives, and foster employee engagement. These initiatives aim to
create an inclusive workplace that motivates employees to perform well
while reducing turnover rates and improving workforce stability. Specific
objectives include developing effective recruitment strategies to
streamline the screening process, fostering work life balance,
implementing strategic time management solutions, and boosting
employee performance and satisfaction through well structured HR
initiatives. Additionally, the program focuses on reducing turnover rates by
enhancing retention efforts and ensuring employees feel valued and
supported in their roles. Furthermore, it specifically aims to:
a. Create a program in retention rate of the employee reduce the
turnover rate
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
b. Develop recruitment strategies, to enhance screening process and
identified specific roles of the employee
c. Foster work life balance and engagement
d. Create a time management and strategic solutions in HR
Department
e. Boosts the employee performance and satisfaction for their task in
the company
THE CHALLENGE
In today's rapidly changing business landscape, the role of the HR
department has become more crucial than ever. As organizations strive to
attract and retain top talent, HR professionals are faced with the challenge
of developing innovative strategies to meet the evolving needs of
employees. In Suzuki Philippines, these challenges are:
1. Recruitment of Talents (Screening Process)
One of the challenges identified at the HR Department is the
recruitment of talent, particularly the screening process. The HR
employees are facing significant difficulties in determining which
candidates to hire, based on a certain criteria. The screening
process is a critical component in the talent acquisition process as
this ensures that only the most qualified and most suitable
candidates proceed to the next stages and be accepted in the
company.
1.1 Impact
With the poor screening tests at the company, unqualified
employees are often hired, resulting in poor job performance, and
low productivity. Consequently, this results in having a higher and
faster turnover rate, which is more costly for the organization, due
to wasted resources and efforts. Furthermore, these occurrences
collectively contribute to the damage in the company’s reputation
and image.
1.2 Cause
One of the possible causes of this challenge is due to the
usage of poor screening tools and programs that are currently
utilized in the company. The current tools may lack well-defined
criteria, making it difficult to assess candidates objectively and
consistently.Furthermore, these tools may not be able to eliminate
the biases in the process, and are not good enough to thoroughly
assess the qualities, skills, and knowledge of the candidates. This
inefficiency increases the likelihood of hiring candidates that are
unqualified, which extremely affects the overall performance and
productivity of the organization.
2. Retention of Employees
One of the biggest challenges faced by this company is the
retention of employees. With the job market becoming increasingly
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
competitive, it is becoming more and more difficult for businesses
to hold on to their top talent. This is especially true in industries
where specialized skills are in high demand, as employees are
constantly being lured away by higher salaries and better benefits.
In order to combat this issue, companies must find ways to engage
and motivate their employees to stay with the organization for the
long term.
1.1 Impact
Low retention of employees results in high turnover rates,
increasing in recruitment and training costs, as well as decreased
productivity and morale among remaining employees. Additionally,
a lack of continuity and experience within the workforce can lead to
disruptions in workflow and hinder the overall success of the
organization.
1.2 Cause
One major cause of low employee retention could be
attributed to the difficulty of the tasks assigned to employees.
When employees are constantly faced with challenging or
overwhelming tasks, they may become discouraged and ultimately
decide to leave the organization in search of a less stressful work
environment.
Additionally, the generational gap between older, more
experienced employees and younger, less experienced employees
can also contribute to high turnover rates. Younger employees may
feel undervalued or underutilized, while older employees may
struggle to adapt to new technologies or ways of working. It is
important for companies to bridge this gap and create a supportive
and inclusive work environment for employees of all ages.
ESTABLISHED PRACTICE
Suzuki Philippines had developed a strong set of Human Resource
practices aimed to foster employee development, enhancing culture, and
supporting the company’s growth objective. Listed below are some of the
key HR practices at Suzuki Philippines:
Talent Acquisition and Recruitment
The talent acquisition and recruitment practices at Suzuki
Philippines, like many well-established companies, likely involve a
combination of traditional and modern strategies to attract, assess, and
hire the best candidates for various positions. Aside from the common
practices such as job postings, screening, and interviewing, analysis of
salaries and benefits across business industries are being reviewed. This is
to ensure that the current compensation for the employees remains
competitive in the industries.
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
Retention of Employees
Suzuki Philippines ensures that the right people are always ready to
step up in different key roles when needed. To do this, Suzuki Philippines
is practicing succession planning to identify the vision of each employee to
ensure a smooth transition and continuity of operations in case of any
changes in leadership. This strategic approach also helps in nurturing
talent within the organization and promoting career growth among
employees.
Performance Review
Each employee of Suzuki Philippines is being reviewed
through key performance indicators on a quarterly basis to identify
their performance. The assessment will be done by themselves,
referred to as self-evaluation, and afterwards be discussed with the
manager as to why they gave themselves the score indicated. If the
employee falls short on the final evaluation of the manager,
issuance of a performance improvement plan will be done to
improve the performance of the employee.
KEY POINTS FOR EFFECTIVE PRACTICE
Table 1. Key Points for Effective Human Resource Practices
KEY POINTS
DESCRIPTION
BENEFIT
RISK
Fair Treatment
Enhance
employee
satisfaction and
morale but may
lead to delays in
decision making
Enhance
employee
satisfaction and
morale
Focusing on
fairness lead to
Delays in
decision making
Hire the Right
People
Improves team
dynamics,
productivity, and
problem solving
skills but can be
delayed by
length hiring
process
Improves team
dynamic,
productivity, and
problem solving
skills for
innovations
Taking too much
time for hiring
the right
employee
Performance
Review
Helps improve
employee
performance but
may lead to
perceptions of
favoritism and
biases
Improve
performance of
the employee
It may lead to
favouritism and
biases
Human Resource Management Case Study
Increases
employee
retention but
Support
carries the risk of
Employee Growth employees
leaving for better
opportunities or
salty demands
Positive work
environment
Strengthens
collaboration and
team cohesion
but can distract
employees from
focusing on
business goals
Armada, Baniquet, Galang, Pagtalunan
Increase
employees
retention
Employee finds
another work or
demand in salary
increase
Enhance
collaboration and
team cohesion
May create divert
attention of
employee from
main business
goals
Presented in the table above are the key points for effective practice
in Suzuki Philippines, which includes fair treatment to employees, hiring
the right people, having a performance review, support on employee
growth, and a positive work environment. Although the said key points
have their own risks, the benefits of implementing them far outweigh any
potential challenges. By prioritizing these aspects of workplace culture,
Suzuki Philippines can foster a strong and motivated team that is
dedicated to the company's success.
RECOMMENDATION
Recommendation 1: HAP On: Hiring Assessment Program
The proponent’s first recommendation is meant to address the first
challenge identified, which is the screening process in the recruitment of
talents. To address this, a screening program entitled “HAP-On: Hiring
Assessment Program”.
HAP-On is a screening program designed to enhance the candidate’s
screening process. The program’s name is inspired by the phrase “hop-on”
which encourages the candidates to perform their best during interviews,
which indicates their readiness and eagerness to join the organization.
This program comprises three screening stages which can be
adopted by the organization.
1.1 Screening Stages
1st Level: Video Screening
The initial stage of screening occurs at an online platform for virtual
interviews, specifically through HireVue. In this, each candidate is
provided with the same set of pre-generated questions, which can be
completed anytime by the candidate, as long as it is within the timeframe
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
specified by the employer. The process can be completed independently by
the candidate. This approach eliminates bias by ensuring that all
candidates are answering the same set of pre-generated questions.
Additionally, this initial stage allows the employer to evaluate the public
speaking and quick thinking skills of the candidate.
2nd Level: Online Reverse Interview
The second screening stage provides an opportunity for the
employer to determine the candidate’s enthusiasm and genuine interest in
joining the organization. This type of interview involves the candidate
asking different questions to the employer about the company, which can
be used to assess a candidate’s eagerness and seriousness about being
hired. With this, the employer is able to determine if the candidate is
aligned with the goals and values of the company.
3rd Level: Skill and Behavioral Assessment
The final screening stage involves a comprehensive evaluation of
the skills and knowledge of the candidate in order to determine the most
suitable tasks, and roles based on their capabilities. This final stage
ensures that the competencies of the candidate are aligned with the
organization’s needs.
1.2 Benefit Analysis
This section presents and thoroughly discusses the benefits of the
first recommendation to the organization. The identified benefits are as
follows;
a. Enhance productivity of the company
By hiring candidates who are thoroughly assessed across
multiple dimensions, not solely based on their job skills, the
productivity of the company will increased since the hired
candidates demonstrates a strong eagerness to work with the
organization but will also be appropriately matched to roles that
aligned with their skills and talents, indicating a better job fit and
improved performance.
b. Efficient skill evaluation
The HAP - On Program, includes a particular stage intended
for assessing the skills of the candidate and matching them to
suitable tasks/roles. The third stage of the program is solely for the
evaluation of the skills that a candidate has.
c. Cost-effective screening process
As most of the stages in the screening program are done
virtually or online,the organization can significantly reduce costs
associated with traditional in-person interviews, such as preparing
venues, meals, or other logistical arrangements. This program
offers a more cost-effective approach in terms of talent acquisition,
particularly in the screening process.
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
1.3 Risk Analysis
This section presents and thoroughly discusses the risks of the first
recommendation to the organization. The identified risks are as follows;
a. Time-consuming Screening Process
As there are three stages involved in the screening program,
the hiring process of new talents may last for at least 1 to 2 weeks.
However this duration is essential to thoroughly assess each
candidate and determine their suitability for the job, and their
alignment with the organization.
b. Technology barriers
Since the first and second stage is completed virtually,
approximately 75% of the program relies on technology. Therefore,
if an issue or problem occurred with the online platform, or internet
connectivity, the whole screening program will be disrupted and
delayed.
1.4 Cost Analysis
Table 2. Cost Analysis for Recommendation 1
Description
Cost
Online Platform for Virtual
Interviewing (HireVue)
Php 2,900 (Per Interview)
Face-to-face Interview Setup
Preparations
Php 1,080 (Per Interview)
Total
Php 3,980
Presented in the table above is the cost analysis for
recommendation 1, which includes HireVue and the cost it takes for a
face-to-face setup. HireVue initially costs Php 2,900 per interview,
inclusive of the services provided. While face-to-face interview setup
preparations may initially cost Php 1,080 inclusive of the initial phone
calls, and pay for the interviewees from specialist to managers. In the
long run, utilizing HireVue can lead to cost savings as it eliminates the
need for travel expenses and reduces the time spent on coordinating
schedules. Additionally, face-to-face interviews may also result in higher
costs due to factors such as venue rental and refreshments for
interviewees.
Recommendation 2: WoRI: Workforce Retention Initiative
This is a program designed to address the high turnover rates in the
workforce. The initiative aims to provide support and resources to help
employees feel valued and engaged in their work, ultimately leading to
higher retention rates. By implementing strategies such as professional
development opportunities, flexible work arrangements, and competitive
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
compensation packages, companies can create a more positive work
environment and improve employee satisfaction.
2.1 Components of the Program
New Hire Buddy System
This system pairs new employees with experienced team members
who can provide guidance, support, and mentorship during their transition
into the company. This not only helps new hires feel more comfortable and
connected in their new role, but also fosters a sense of community and
camaraderie within the organization. The buddy system has been proven
to reduce turnover rates among new employees and increase overall job
satisfaction.
Competitive Compensation and Benefits
In addition to providing a supportive network through the buddy
system, the company ensures that employees are fairly compensated for
their work and have access to a comprehensive benefits package. This
includes competitive salaries, performance-based bonuses, health
insurance, retirement plans, and other perks such as flexible work
arrangements and professional development opportunities. By offering a
strong compensation and benefits package, the company aims to attract
top talent, retain employees long-term, and ultimately drive success for
the organization as a whole.
Establishment of Clubs
Creating different leisure clubs and employee resource groups
further promotes a sense of belonging and camaraderie among staff
members. These clubs provide opportunities for employees to connect
with one another outside of work, engage in shared interests, and foster a
sense of community within the company. From book clubs to sports teams
to volunteer initiatives, these clubs offer a variety of ways for employees
to come together and build relationships that extend beyond the office
walls. Additionally, employee resource groups focused on diversity, equity,
and inclusion serve as a platform for underrepresented voices to be heard,
create a more inclusive work environment, and drive positive change
within the organization. Through these initiatives, the company
demonstrates its commitment to fostering a supportive and inclusive
workplace culture where all employees feel valued and respected.
Trainings and Webinars (Local and International)
These trainings will cover topics such as leadership development,
communication skills, diversity and inclusion, and more. Employees have
the opportunity to participate in webinars led by industry experts both
locally and internationally, providing valuable insights and perspectives. By
investing in the professional development of its employees, the company
not only supports individual growth but also strengthens the overall
capabilities of the organization. Additionally, these trainings and webinars
help employees stay up-to-date with the latest trends and best practices
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
in their respective fields, ultimately contributing to the company's success
and competitiveness in the market.
Collaborative Appraisal
Evaluation of employee performance is also a key aspect of the
company's commitment to professional development. Through regular
feedback sessions and goal-setting meetings, employees are able to track
their progress, identify areas for improvement, and set new objectives for
growth. This open and transparent approach to performance management
fosters a culture of continuous learning and development within the
organization. Additionally, by recognizing and rewarding employees for
their hard work and achievements, the company motivates and
incentivizes them to strive for excellence in their roles. Overall, the
company's focus on professional development and performance appraisal
not only benefits individual employees, but also contributes to the overall
success and competitiveness of the organization in the long run.
Task Evaluation Program
The Task Evaluation Program is a key component of the company's
performance management system, allowing managers to assess employee
performance based on specific tasks and objectives. This program
provides a structured framework for evaluating individual and team
performance, identifying areas for improvement, and setting clear goals
for future growth and development. By regularly reviewing and evaluating
employee performance, the company can ensure that employees are
meeting expectations and contributing to the organization's success. This
feedback loop also allows for continuous improvement and adjustment,
ensuring that employees have the support and resources they need to
excel in their roles.
2.2 Benefit Analysis
This section presents and thoroughly discusses the benefits of the
second recommendation to the organization. The identified benefits are as
follows;
a. More Engagement of Employees
By recognizing and rewarding top performers, companies can
create a culture of excellence and motivate other employees to
strive for similar success. Ultimately, a well-designed performance
management program can have a positive impact on employee
morale, retention, and overall business success.
b. Work and Life Balance
When employees feel that they have the flexibility to manage
their work and personal lives effectively, they are more likely to be
engaged and motivated in their roles.
c. Professional Growth
When employees are given the chance to learn new skills,
take on challenging projects, and advance in their careers, they are
more likely to feel fulfilled and motivated in their roles.
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
d. Balanced Skills with Task
Providing opportunities for skill development and training can
also help employees feel more confident in their abilities and better
equipped to handle challenging tasks.
e. Less Cost to the Company In Terms of Recruitment
Companies that invest in their employees' well-being and job
satisfaction are more likely to attract top talent and maintain a
positive reputation in the industry. Ultimately, the WoRI program
offers a comprehensive approach to workforce retention that
benefits both employees and employers alike.
f. Low Turnover Rate
By prioritizing employee retention through programs like
WoRI, companies can create a positive cycle of success that
benefits everyone involved. This can lead to higher levels of
innovation and creativity, as employees feel valued and motivated
to contribute their best work.
g. Increased Interactions and Network
Increased collaboration, communication, and
ultimately improving overall productivity and morale.
teamwork,
2.3 Risk Analysis
This section presents and thoroughly discusses the risks of the
second recommendation to the organization. The identified risks are as
follows;
a. Increased Cost
By investing in the growth and well-being of their workforce,
companies can reduce turnover rates and create a more stable and
productive team. However, this may incur costs as they have to be
well-compensated.
b. Risk in Time Management
Since these are added tasks and activities to the employees,
they have added workloads that can compromise managing their
time well.
c. Employee Focused on Increased Salary
More compensation may drive employees to focus for the
sake of earning more rather than adding value to the company.
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
2.4 Cost Analysis
Table 3. Cost Analysis for Recommendation 2
Description
Cost
Mentor Compensation
Php 21,910
Webinar Preparations (Local)
Php 5,000
Training Preparations (Local)
Php 9,000
Webinar Preparations
(International)
Php 35,000
Training Preparations
(International)
Php 50,000
Extracurricular Expenses
Php 5,000
Total
Php 120,910/year
This table highlights the annual investment required to support a
comprehensive mentoring and training program, totalling Php 120,910.
This budget includes mentor compensation of Php 21, 910, ensuring
experienced guidance for participants. Local webinar and training
preparations, costing Php 5,000 and Php 9,000 respectively, facilitate
accessible learning opportunities within the region. Meanwhile,
international preparations demand larger allocations, with Php 35,000 for
webinars and Php 50,000 for training, reflecting the program's
commitment to global standards and exposure. Additionally, Php 5,000 is
allocated for extracurricular activities to enrich participants' overall
experience. This strategic investment underscores the program's
dedication to fostering excellence, equipping participants with valuable
skills, and ensuring impactful knowledge sharing on both local and
international scales.
CONCLUSION
Suzuki Philippines, a reputable automotive company that is known
for producing affordable, reliable, and fuel-efficient cars, has been in the
industry for many years and has gained a strong following among Filipino
consumers. And just like any other business industry, Suzuki Philippines
also faces challenges in their human resources (HR) department. There
were two major identified challenges, which include talent acquisition and
recruitment specifically in the screening process and retention of
employees. Although Suzuki has established practices in the HR
department, these identified challenges are still occurring due to the
competitive nature of the automotive industry and the changing demands
of the workforce. Therefore, the group crafted two recommendations to
aid the said challenges: (1) HAP On: Hiring Assessment Program, which
recommends utilizing both online and traditional face-to-face interview
setups, and (2) WoRI: Workforce Retention Initiative, which includes a
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
new hire buddy system, competitive compensation and benefits,
establishment of clubs, training and webinars (local and international),
collaborative appraisal, and task evaluation. The benefits of these
recommendations outweigh the cost it entails as they address the specific
needs of the workforce in a comprehensive manner, ultimately leading to
increased employee satisfaction, retention, and productivity. Implementing
these recommendations can also help the automotive industry stay
competitive in the market by attracting and retaining top talent.
ADDITIONAL INFORMATION
Human Resource Management Case Study
Armada, Baniquet, Galang, Pagtalunan
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