TALENT MANAGEMENT

KMBN-HR-01
3rd Semester
 Talent Management
Unit-1

Introduction to Talent Management

Talent Management: An Introduction

In today„s challenging business environment of going global and competition
becoming intense, organizations have mounting pressure to perform better than
before. Over the years, creation and preservation of knowledge has become a key
tool in accelerating competitiveness and enhancing organizational capabilities to
respond to market changes, wherein employees„ skills and personalities are
appropriately deployed to optimize performance, is a critical and difficult task.
Furthermore, identifying and developing executives who have leadership potential,
like every other vital strategic function, is a demanding process that is equal parts
of Arts and Science. To carry out this mission, organizations should develop and
deploy talented people who can articulate the passion and vision of their
organizations. Though operating excellence, technical competence, marketing
savvy, energy and drive are always important, talent-intensive organizations also
require soft skills that facilitate execution across departments. Not only Software
and BPO Companies, no organization can rest in peace under the assumption that
once they have recruited the employee in place, their job is done. The real
challenge that is faced by these industries is not hiring the right person for the
right job, neither their Performance Management System, nor their Work Climate
nor Culture, but in retaining the employee. It is proven beyond argument that it is
the people who make or break the organization.

Talent management refers to the anticipation of required human capital for an

organization and the planning to meet those needs. The field increased in
popularity after McKinsey's 1997 research and the 2001 book on The War for
Talent. Talent management in this context does not refer to the management
of entertainers.

Meaning of Talent Management

Talent management is an organization's ability to recruit, retain, and produce the

most talented employees available in the job market. Talent consistently uncovers
benefits in these critical economic areas: revenue, customer satisfaction, quality,
productivity, cost, cycle time, and market capitalization. Having good talent
management is when one has good skills, knowledge, cognitive abilities, and the
potential to do well. Talent management is also an important and necessary skill

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for people in the workforce to acquire. Finding good and talented people is not a
hard thing to do, but making sure that they want to stay working for the same
business is the challenge. If someone has so much talent and they are good at
what they do, businesses will want them to stay and work there forever. However,
most of those people are either satisfied with the job they have, or they go out and
look for better opportunities.

Need for Talent Management

Talent Management is on HR professionals „minds these days, as HR works to

obtain, retain and develop manpower. For talent management to be effective, what
is important is to hire employees who seem to be the best fit in the organization.
Organizations are taking steps to manage talent most effectively and also to
develop their own employer brand. These brands simplify decision-making and
communicate the value they create for their customers. Likewise, employees also
identify themselves with certain organizations especially in the light of forecasted
labour shortage. Organizations that formally decide to "manage their talent"
undertake a strategic analysis of their current HR processes. This is to ensure that
a co-ordinate, performance oriented approach is adopted.

Role of Talent Management in Building sustainable competitive Advantage to

a Firm

Organizations work towards the achievement of their mission and strategic

objectives. This requires a thorough understanding of the resources required for
achieving the same. Resources here imply financial and non financial both and
they are equally important and interdependent.

Technically these resources have been divided into two, non contingent and
differentiating capabilities. Whereas non contingent capabilities are basics that
enable an organization to compete and exist in the marketplace, differentiating
capabilities are those that differentiate an organization from that of the other and
offer competitive advantage. Effective marketing management, for example can be
one of non contingent capabilities. Similarly many HR processes aspire to develop
non contingent capabilities but they often fail to align with the strategy and offer
competitive advantage. Most of these processes end up developing people in
similar areas and similar capacities as their rival firms but this fails to provide any
competitive advantage.

For organizations to develop competitive advantage through HR processes it

is very important to define strategic differentiating capabilities and then
develop a process for identifying and developing the same. This empowers the

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HR people to create an impact on the organizational strategy and also provides a
link between talent management and strategy.

For HR to prove that talent management can be of strategic importance to

organizations, the critical relationship between the two must be proven. Talent
management specially needs to be projected as a differentiating strategic capability
that can offer real and substantial competitive advantage.

According to research conducted by various bodies it was found out that creation
of differentiating strategic capabilities signifies the relationship between business
strategy and human resources. Human resources, it was deduced are the primary
sources of strategic advantage. The research study was primarily based on
Resource based view (RBV) of an organization. This view has gained significant
ground among HR practitioners as basis of models for formation and structure of
resources.

Unlike other non contingent capabilities that can be developed easily and cannot
contribute to a large extent towards the development of a sustainable competitive
advantage, differentiating strategic capability such as strategic HR through talent
management can. However for human resources to qualify as potential sources of
competitive advantage they should fulfill the following criteria:

 Strategic Value: The resource has to contribute substantially and add value
in his/her area of expertise.
 Rare: Unique in terms of skills, knowledge and abilities in order to qualify as
rare.
 Appropriable: The extent to which the resource is owned by the firm.
 Inimitable: Such that the resource cannot be replaced even after the
competitors having spotted the same.
 Cannot be Substituted: This means that the resource cannot be
substituted by the rival firms and that there is no match for the talent!

There are not many things in the business environment that can fulfill all the
above criteria and offer unique competitive advantage except human resources
and that is under the jurisdiction of talent

Key Process of Talent Management

People are, undoubtedly the best resources of an organization. Sourcing the best
people from the industry has become the top most priority of the organizations
today. In such a competitive scenario, talent management has become the key
strategy to identify and filling the skill gap in a company by recruiting the high-
worth individuals from the industry. It is a never-ending process that starts from
targeting people. The process regulates the entry and exit of talented people in an

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organization. To sustain and stay ahead in business, talent management can not
be ignored. In order to understand the concept better, let us discuss the stages
included in talent management process:

Process of Talent Management

Stage 1 : Understanding the requirement

Stage 2 : Sourcing the talent

Stage 3 : Attracting the talent

Stage 4 : Recruiting the talent

Stage 5 : Selecting the talent

Stage 6 : Training and development

Stage 7 : Retention

Stage 8 : Promotion

Stage 9 : Competency Mapping

Stage 10 : Performance Appraisal

Stage 11 : Career Planning

Stage 12 : Succession Planning

Stage 13 : Exit
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 Understanding the Requirement: It is the preparatory stage and plays a

crucial role in success of the whole process. The main objective is to
determine the requirement of talent. The main activities of this stage are
developing job description and job specifications.
 Sourcing the Talent: This is the second stage of talent management
process that involves targeting the best talent of the industry. Searching for
people according to the requirement is the main activity.
 Attracting the Talent: it is important to attract the talented people to work
with you as the whole process revolves around this only. After all the main
aim of talent management process is to hire the best people from the
industry.
 Recruiting the Talent: The actual process of hiring starts from here. This is
the stage when people are invited to join the organization.
 Selecting the Talent: This involves meeting with different people having
same or different qualifications and skill sets as mentioned in job
description. Candidates who qualify this round are invited to join the
organization.
 Training and Development: After recruiting the best people, they are
trained and developed to get the desired output.
 Retention: Certainly, it is the sole purpose of talent management process.
Hiring them does not serve the purpose completely. Retention depends on
various factors such as pay package, job specification, challenges involved in
a job, designation, personal development of an employee, recognition,
culture and the fit between job and talent.
 Promotion: No one can work in an organization at the same designation
with same job responsibilities. Job enrichment plays an important role.
 Competency Mapping: Assessing employees‟ skills, development, ability
and competency is the next step. If required, also focus on behaviour,
attitude, knowledge and future possibilities of improvement. It gives you a
brief idea if the person is fir for promoting further.
 Performance Appraisal: Measuring the actual performance of an employee
is necessary to identify his or her true potential. It is to check whether the
person can be loaded with extra responsibilities or not.
 Career Planning: If the individual can handle the work pressure and extra
responsibilities well, the management needs to plan his or her career so that
he or she feels rewarded. It is good to recognize their efforts to retain them
for a longer period of time.

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 Succession Planning: Succession planning is all about who will replace
whom in near future. The employee who has given his best to the
organization and has been serving it for a very long time definitely deserves
to hold the top position. Management needs to plan about when and how
succession will take place.
 Exit: The process ends when an individual gets retired or is no more a part
of the organization.

Talent Management process is very complex and is therefore, very difficult to

handle. The sole purpose of the whole process is to place the right person at the
right place at the right time. The main issue of concern is to establish a right fit
between the job and the individual.

Talent management versus human resources management

The relationships between human resources management and talent management

have been frequently discussed in recent years. Many authors argue that talent
management is only a new buzzword for old activities. Undoubtedly, there are
many similarities between human resource management and talent management.
The main HR functions are the planning of human resources, attraction, selection,
retention, development and allocation of HR. Many researchers mentioned that
talent management has been serving the same function albeit with a different
focus. Creel man (2004) defines TM as the process of attracting, recruiting and
retaining talented employees. But there are key differences between HRM and TM.
TM is talent focused, with a more directed and detailed focus on certain groups of
people. TM, unlike HRM, focuses on all staff. One of the differences that should be
noted is that the talent management system is integrated with other activities.
Egalitarianism, which is typical for HR activities, is acceptable in talent
management only with difficulties. Well-proportioned resource allocation, typical
for HRM, is not suitable for talent management. On the other hand
HRM is more focused on the development of people. Talent management is viewed
as a strategic process mandatory for the global strategy (Vladescu, 2012). Talent
management supposes the implementation of methods for recruiting and selecting
employees, and it also applies methods to scout out talents. The talent mindset
implemented in talent management is another difference between TM and HRM.

Company´s approach to human resource management is important for the success

of talent management. In fact, it is the core of talent management, and so it makes
sense that effective processes in all the traditional areas of HRM are an essential
part of talent management. Building the employer´s brand is an important role of
HRM. A positive employer helps to attract the best talents for organization. Human
resources management focuses on all employees, while talent management focuses
on “key employees” or “talent” or “top talent”. Top talent can be defined as a

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person “who routinely exceeds expectations while exhibiting the right behaviours
and is agile in the learning approach. These are the people whom customers pay a
premium and others strive to work with. Human resources (HR) departments can
set the stage for success by hiring and training capable employees. But developing
such personnel into a team of dynamic, motivated, long-term participants in the
company's processes must be the responsibility of all management from the CEO
to a floor supervisor. TM is a part of HRM.

Recruitment

Recruitment (hiring) is a core function of human resource management. It is the

first step of appointment. Recruitment refers to the overall process of attracting,
selecting and appointing suitable candidates for jobs (either permanent or
temporary) within an organization. Recruitment can also refer to processes
involved in choosing individuals for unpaid positions, such as voluntary roles or
unpaid trainee roles. Managers, human resource generalists and recruitment
specialists may be tasked with carrying out recruitment, but in some cases public-
sector employment agencies, commercial recruitment agencies, or specialist search
consultancies are used to undertake parts of the process. Internet-based
technologies to support all aspects of recruitment have become widespread.

Selection

Selection is the process of selecting a qualified person who can successfully do a

job and deliver valuable contributions to the organization. A selection system
should depend on job analysis. This ensures that the selection criteria are job
related and will provide meaningful organizational value.

Retention

Employee retention refers to the ability of an organization to retain its

employees. Employee retention can be represented by a simple statistic (for
example, a retention rate of 80% usually indicates that an organization kept 80%
of its employees in a given period). However, many consider employee retention as
relating to the efforts by which employers attempt to retain employees in their
workforce. In this sense, retention becomes the strategies rather than the
outcome.
A distinction should be drawn between low-performing employees and top
performers, and efforts to retain employees should be targeted at valuable,
contributing employees. Employee turnover is a symptom of deeper issues that
have not been resolved, which may include low employee morale, absence of a
clear career path, lack of recognition, poor employee-manager relationships or
many other issues. A lack of satisfaction and commitment to the organization can

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also cause an employee to withdraw and begin looking for other opportunities. Pay
does not always play as large a role in inducing turnover as is typically believed.

Human Resource Planning

Human Resource Planning (HRP) is the process of forecasting the future
human resource requirements of the organization and determining as to how
the existing human resource capacity of the organization can be utilized to
fulfill these requirements. It, thus, focuses on the basic economic concept of
demand and supply in context to the human resource capacity of the organization.

It is the HRP process which helps the management of the organization in meeting
the future demand of human resource in the organization with the supply of the
appropriate people in appropriate numbers at the appropriate time and place.
Further, it is only after proper analysis of the HR requirements can the process of
recruitment and selection be initiated by the management. Also, HRP is essential
in successfully achieving the strategies and objectives of organization. In fact, with
the element of strategies and long term objectives of the organization being widely
associated with human resource planning these days, HR Planning has now
became Strategic HR Planning.

An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability in

the organization is the foremost step in HR Planning. It includes a
comprehensive study of the human resource strength of the organization in
terms of numbers, skills, talents, competencies, qualifications, experience, age,
tenures, performance ratings, designations, grades, compensations, benefits,
etc. At this stage, the consultants may conduct extensive interviews with the
managers to understand the critical HR issues they face and workforce
capabilities they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the
business is the second step in HR Planning. All the known HR variables like
attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set
transfers, etc. are taken into consideration while determining future HR
demand. Further, certain unknown workforce variables like competitive factors,
resignations, abrupt transfers or dismissals are also included in the scope of
analysis.
 Demand Forecast: Next step is to match the current supply with the future
demand of HR, and create a demand forecast. Here, it is also essential to
understand the business strategy and objectives in the long run so that the
workforce demand forecast is such that it is aligned to the organizational goals.

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 HR Sourcing Strategy and Implementation: After reviewing the gaps in
the HR supply and demand, the HR Consulting Firm develops plans to meet these
gaps as per the demand forecast created by them. This may include conducting
communication programs with employees, relocation, talent acquisition,
recruitment and outsourcing, talent management, training and coaching, and
revision of policies. The plans are, then, implemented taking into confidence the
mangers so as to make the process of execution smooth and efficient. Here, it is
important to note that all the regulatory and legal compliances are being followed
by the consultants to prevent any untoward situation coming from the employees.

Hence, a properly conducted process of HR Planning by an HR Consulting Firm

helps the organization in meeting its goals and objectives in timely manner with
the right HR strength in action.

Consequences of Failure in Managing Talent

Organizations have to face the following problems, if they fail to manage talent:-
1) Loss of key leaders – sometimes not finding even an approximate replacement.
2) Repeated turnover of key persons from an organization will affect the very Work
culture within the organization.
3) Poor performance affecting targets and productivity.
4) Financial crisis.

Suggestive Tools for Managing Talent:

In this process, the HR Manager has to execute 2 types of functions

1. To find leaders who will take the organization from where it is today to the next
step forward – In other words, to commanding heights of excellence.

2. To put in place the existing staff in such activities which helps in retaining and
developing them.

Keeping in view the budgetary constraints and the organization size where he had
to manage, few of the following tools can be used in retaining talent:-

1 . Timely performance appraisals with suitable rewards and recognitions.

2. Creating an environment for staff to pursue higher education.

3. Mentoring of staff in some special and important cases in terms of attitudes,

outlook, mindset etc.

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4. Providing On–the job training for certain categories of employees, organized
development programs for executives in-house or sponsor and encourage staff to
attend workshops and seminars.

5. Implement job rotation and job enrichment wherever possible, so that staff can
become experts in multi tasking and assume higher responsibilities.

Finally to conclude the future of organizations depends on how the whole

organization and not just HR anticipates and reacts to changes in this era of talent
shortages. They have a long way to go to lead organizations implement far-
reaching changes and bringing about transformation among the members of the
organization. Talent Management is a continuous process.

Talent Vs. Knowledge

Talent – the word refers to a natural ability; to describe someone as talented is to
say that they have an innate understanding of the intricacies of their field, and
can produce something impressive, even if they lack an ability at times to explain
it. Knowledge, conversely, is an understanding that is acquired through study and
experience. In the songwriting field, both are usually necessary.

Talents versus Knowledge Employees

Most organizations do not know how to distinguish between their talents and
knowledge workers. All talents are knowledge workers, but not all knowledge
workers are talents. Talents are more than knowledge workers. To operate
successfully, every organization needs both talents and knowledge workers.
Knowledge workers may become talents through dedication and a well-defined
goal, but most don't make the transformation. The following are seven differences
between talents and knowledge workers.

Identifying High Potentials in current organizations

Many organizations are caught in the same dilemma: how to identify high
potentials, how to develop them as leaders, and when to promote them. The

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benefits to having them are obvious, but how can organizations maximize their
contribution and keep them engaged?

Simply identifying high potentials within the organization is correlated with

positive business results. Companies that know who their high potentials are have
greater bench strength, and leaders who have been notified of their high-potential
status are more engaged and more likely to commit energy to growth and
development opportunities. Turnover is also lower among high potentials (11
percent per year) than the general leadership population (13 percent).

Many organizations are seeing this benefit. About 65 percent of companies

we surveyed identify high potentials, and of those organizations, almost 60 percent
inform them of their special status. While HR professionals mostly agree that their
identification methods are unbiased, their evaluation methods are sound, and that
their program is targeted to specific needs of this group, about a quarter of
respondents disagree with each of these statements. Even more worrisome, a full
33 percent of respondents note that their organization‟s process for identifying
high potentials is inconsistent.

WHERE TO START
 Consistently identify high potentials. You can do this via clear evaluation
criteria around competencies and expectations.
 Evaluate high potentials‟ success. Measure the success of high-potential
development programs to ensure that offerings satisfy these leaders‟ learning
needs and preferences.
 Evaluate selection and promotion processes for bias and consistency. This
was an area of perceived weakness by HR leaders in our study. If it‟s a
concern in your organization, work with leaders to ensure that consistent,
quantitative measures of leader success are applied across the organization.

HOW TO EXCEL + DIFFERENTIATE

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 Give high potentials the tailored learning experiences they crave. This means
external coaching, short-term and special projects, or rotational-placement
programs. Some experiences can be provided at low cost.
 Provide simulations of major events or decisions. These experiences allow
leaders to practice reacting to realistic scenarios. Networking events to
expose high potentials to senior leaders and mentoring programs can have
significant impact as well.

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Talent Acquisition

Job Analysis

It is the process of objectively determining the specific duties, responsibilities

and working conditions associated with a specific job, as well as the personal
skills and qualifications required to perform that job satisfactorily.
- Job analysis assesses what employees are doing. So it is the process of getting
information about job. It investigates exactly what the worker does in a
particular job, how he does it, why he does it, how much skills is required to do
it and physical demands, environmental conditions associated with this specific
job.

Job Analysis Methods:-

1)-Observation
2)-Interview
3)-Questionnaire
4)-Checklist
5)-Diary or log of job

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Most Common Methods of Job Analysis

1)-Observation Method: A job analyst observes an employee and records all his
performed and non-performed task, fulfilled and un-fulfilled responsibilities and
duties, methods, ways and skills used by him or her to perform various duties and
his or her mental or emotional ability to handle challenges and risks. However, it
seems one of the easiest methods to analyze a specific job but truth is that it is the
most difficult one. Why? Let’s Discover.

It is due to the fact that every person has his own way of observing things.
Different people think different and interpret the findings in different ways.
Therefore, the process may involve personal biasness or likes and dislikes and
may not produce genuine results. This error can be avoided by proper training of
job analyst or whoever will be conducting the job analysis process.

This particular method includes three techniques: direct observation, Work

Methods Analysis and Critical Incident Technique. The first method includes direct
observation and recording of behaviour of an employee in different situations. The
second involves the study of time and motion and is specially used for assembly-
line or factory workers. The third one is about identifying the work behaviours that
result in performance.

2)-Interview Method: In this method, an employee is interviewed so that he or

she comes up with their own working styles, problems faced by them, use of
particular skills and techniques while performing their job and insecurities and
fears about their careers.

This method helps interviewer know what exactly an employee thinks about his or
her own job and responsibilities involved in it. It involves analysis of job by
employee himself. In order to generate honest and true feedback or collect
genuine data, questions asked during the interview should be carefully decided.
And to avoid errors, it is always good to interview more than one individual to get
a pool of responses. Then it can be generalized and used for the whole group.

3)-Questionnaire Method: Another commonly used job analysis method is getting

the questionnaires filled from employees, their superiors and managers. However,
this method also suffers from personal biasness. A great care should be takes
while framing questions for different grades of employees.

In order to get the true job-related info, management should effectively

communicate it to the staff that data collected will be used for their own good. It
is very important to ensure them that it won’t be used against them in anyway. If

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it is not done properly, it will be a sheer wastage of time, money and human
resources.

4)-Checklists:

The checklist method of job data collection differs from the questionnaire method

in the sense that it contains a few subjective questions in the form of yes or no.

The job holder is asked to tick the questions that are related to his/her job.

Checklist can be prepared on the basis of job information obtained from various

sources such as supervisors, industrial engineers, and other people who are
familiar with the particular job.

Once the checklist is prepared, it is then sent, to the job holder to check all the

tasks listed in the list he/she performs. He/she is also asked to mention the

amount of time spent on each task by him/her and the type of training and

experience required to do each task. Information contained in checklist is, then,

tabulated to obtain the job-related data.

Like questionnaire method, the checklist method is suitable in the large

organisations wherein a large number of workers are assigned one particular job.
Since the method is costly and, therefore, is not suitable for small organisations.

5)-Diaries or Log Records:

In this method, the job holder is asked to maintain a diary recording in detail the

job-related activities each day. If done judiciously, this method provides accurate

and comprehensive information about the job. This overcomes memory lapses on

the part of the job holder. As recording of activities may spread over several days,
the method, thus, becomes time-consuming one.

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The disadvantage associated with this method is that it remains incomplete

because it does not give desirable data on supervisor relationship, the equipment
used and working conditions prevalent at the work place.

These are some of the most common methods of job analysis. However, there are
several other specialized methods including task inventory, job element method,
competency profiling, technical conference, threshold traits analysis system and a
combination of these methods. While choosing a method, HR managers need to
consider time, cost and human efforts included in conducting the process.

The problems that may crop up while conducting job analysis are:
1. Lack of support from the top management.
2. Relying on one source and method of data collection.
3. Non-trained and non-motivated job holders who are the actual source of job
data.
4. Distorted information/data provided by the respondents i.e., the job holders
because of non- preparedness on their part.
Interviewing

The interview method of gathering information requires that a manager or HR

specialist visit each job site and talk with the employees performing each job. A
standardized interview form is used most often to record the information.
Frequently, both the employee and the employee’s supervisor must be interviewed
to obtain a complete understanding of the job.

Some typical interview questions include:

 What is the job being performed?

 What are the major duties of your job position? What exactly do you do?
 What physical locations do you work in?
 What are the education, experience, skill, and [where applicable]
certification and
 licensing requirements?
 In what activities do you participate?
 What are the job’s responsibilities and duties?
 What are the basic accountabilities or performance standards that typify
your work?
 What are your responsibilities? What are the environmental and working
conditions

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 involved?
 What are the job’s physical demands? The emotional and mental demands?
 What are the health and safety conditions?
 Are you exposed to any hazards or unusual working conditions?

Questionnaires
The questionnaire is a widely used method of gathering data on jobs. A survey
instrument is developed and given to employees and managers to complete. The
typical job questionnaire often covers the areas shown below. The major advantage
of the questionnaire method is that information on a large number of jobs can be
collected inexpensively in a relatively short period of time. However, the
questionnaire method assumes that employees can accurately analyze and
communicate information about their jobs. Employees may vary in their
perceptions of the jobs, and even in their literacy. For these reasons, the
questionnaire method is usually combined with interviews and observations to
clarify and verify the questionnaire information.
One type of questionnaire sometimes used is a checklist. Differing from the open-
ended questionnaire, the checklist offers a simplified way for employees to give
information. An obvious difficulty with the checklist is constructing it, which can
be a complicated and detailed process.

Job Analysis Questionnaire

 Materials and equipment used

 Financial/budgeting input
 External and internal contacts
 Knowledge, skills, and abilities used
 Working conditions
 Special duties performed less frequently
 Duties and percentage of time spent on each
 Work coordination and supervisory responsibilities
 Physical activities and characteristics
 Decisions made and discretion exercised
 Records and reports prepared
 Training needed

2. JOB DESCRIPTION: Is a written statement of the duties, responsibilities and

organizational relationships that are required of the employee in a given job. A job
description gives an employee a clear and concise resource to be used as a guide

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for job performance. Likewise, a supervisor can use a job description as a
measuring tool to ensure that the employee is meeting job expectations.

The components of job description are:

1. Date, revised date.

2. Job title.

3. Department.

4. Division.

5. Code number.

6. Job position required

7. Job summary.

8. Organizational relationship:

i. position accountable for

ii. position accountable to

9. Job duties and responsibilities.

Uses of job description:

1. Serves as basis for selecting and recruiting an individual to fill the position.

2. Essential for the placement and orientation of new employees.

3. Essential for employee's performance evaluation, transfer and promotion.

4. Useful in identifying the needs for employee's training.

5. Helps to prevent both gaps and overlaps at work

. 6. Helps to prevent arguments among employees about “who should do what.”

Developing Job description

Step 1: Perform a Job Analysis

This process of gathering, examining and interpreting data about the job’s tasks
will supply accurate information about the job so that an organization can perform
efficiently. Performing a job analysis includes the following steps:

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 Interviewing employees to find out exactly what tasks are being performed.

 Observing how tasks are performed.

 Having employees fill out questionnaires or worksheets.

 Collecting data on jobs from other resources such as salary surveys and
the Occupational Outlook Handbook.

The results should be documented and reviewed by the employee who is currently
in the position—and his or her supervisor—for any changes regarding the
knowledge, skills, abilities, physical characteristics, environmental factors and
credentials/experience of the position:

 Knowledge—comprehension of a body of information acquired by experience

or study.

 Skill—a present, observable competence to perform a learned activity.

 Ability—competence to perform an observable behavior or a behavior that

results in an observable product.

 Physical characteristics—the physical attributes an employee must have to

perform the job duties with or without a reasonable accommodation.

 Environmental factors—working conditions (inside or outside the office).

 Credentials/experience—the minimum level of education, experience and

certifications acceptable for the position.

Step 2: Establish the Essential Functions

Once the performance standard for a particular job has been made, essential
functions of the position must be defined. This will provide a better avenue for
evaluating Americans with Disabilities Act (ADA) accommodation requests.
Defining the essential functions encompasses the following steps:

 Ensure that the tasks as part of the job function are truly necessary or a
requirement to perform the job.

 Determine the frequency at which the task is performed or how much time
is spent performing a task.

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 Determine the consequences of not performing the function and whether
this would be detrimental to the employer’s operation or result in severe
consequences.

 Determine if the tasks can be redesigned or performed in another manner.

 Determine if the tasks can be reassigned to another employee.

Once the essential functions are defined, the employer can make a determination
as to whether the functions are essential or marginal. The use of the term
“essential function” should be part of the job description, and it should explicitly
state how an individual is to perform the job. This will provide future guidance as
to whether the job can be performed with or without an accommodation.

Step 3: Organize the Data Concisely

The structure of the job description may vary from company to company; however,
all the job descriptions within an organization should be standardized so that they
have the same appearance.

The following topics should be included:

 Job title—name of the position.

 Classification—exempt or nonexempt under the Fair Labor Standards Act
(FLSA).
 Salary grade/level/family/range—compensation levels, groups into which
jobs of the same or similar worth are placed in and/or range of pay rates,
including minimum and maximum pay bands.
 Reports to—title of the position this job reports to.
 Date—date when the job description was written or last reviewed.
 Summary/objective—summary and overall objectives of the job.
 Essential functions—essential functions, including how an individual is to
perform them and frequency at which the tasks are performed; the tasks
must be part of the job function and truly necessary or required to perform
the job.
 Competency—knowledge, skills and abilities.
 Supervisory responsibilities—direct reports, if any, and the level of
supervision.
 Work environment—the work environment; temperature, noise level, inside
or outside, or other factors that will affect the person’s working conditions
while performing the job.
 Physical demands—the physical demands of the job, including bending,
sitting, lifting and driving.

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 Position type and expected hours of work—full time or part time, typical
work hours and shifts, days of week, and whether overtime is expected.
 Travel—percentage of travel time expected for the position, where the travel
occurs, such as locally or in specific countries or states, and whether the
travel is overnight.
 Required education and experience—education and experience based on
requirements that are job-related and consistent with business necessity.
 Preferred education and experience—preferred education and experience
based on requirements that are job-related and consistent with business
necessity.
 Additional eligibility qualifications—additional requirements such as
certifications, industry-specific experience and the experience working with
certain equipment.
 Affirmative action plan/equal employer opportunity (AAP/EEO)
statement—clause(s) that outlines federal contractor requirements and
practices and/or equal employer opportunity statement.
 Other duties—disclaimer, see Step 4.

Step 4: Add the Disclaimer

It is a good idea to add a statement that indicates that the job description is not
designed to cover or contain a comprehensive listing of activities, duties or
responsibilities that are required of the employee. Other duties, responsibilities
and activities may change or be assigned at any time with or without notice.

Step 5: Add the Signature Lines

Signatures are an important part of validating the job description. They show that
the job description has been approved and that the employee understands the
requirements, essential functions and duties of the position. Signatures should
include those of the supervisor and of the employee.

A draft of the job description should be presented to upper management and the
position supervisor for review and approval. A draft allows a chance to review, add
or subtract any detail before the final job description is approved.

The final job descriptions should be kept in a secure location, and copies should
be used for job postings, interviews, accommodation requests, compensation
reviews and performance appraisals. Employers may also wish to post them on
their intranet.

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3. JOB SPECIFICATION: Job specification is derived from job analysis and job
description. It is the personal qualifications, skills, physical and mental demands
required for effective job performance.

It answers the following questions:

 What human traits and experience are necessary to do this job?

 What kind of person to recruit for and qualifications needed?

 What qualities that person should be tested for?

Uses of job specification:

Helps for the purpose of recruiting and selecting the candidates to fulfill the job.

EVALUATION OF FACTORS AFFECTING HRP

HUMAN RESOURCE PLANNING

Human resource planning can be defined as the process of identifying the number
of people required by an organization in terms of quantity and quality. All human
resource management activities start with human resource planning. So we can
say that human resource planning is the principle/primary activity of human
resource management.

Factors affecting HRP:-

1. Employment :- HRP is affected by the employment situation in the country i.e.

in countries where there is greater unemployment; there may be more pressure on
the company, from government to appoint more people. Similarly some company
may force shortage of skilled labour and they may have to appoint people from
other countries.

2. Technical changes in the society :- Technology changes at a very fast speed

and new people having the required knowledge are required for the company. In
some cases, company may retain existing employees and teach them the new
technology and in some cases, the company have to remove existing people and
appoint new.

3. Organizational changes :- Changes take place within the organization from

time to time i.e. the company diversify into new products or close down business

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in some areas etc. in such cases the HRP process i.e. appointing or removing
people will change according to situation.

4. Demographic changes :- Demographic changes refer to things referring to age,

population, composition of work force etc. A number of people retire every year. A
new batch of graduates with specialization turns out every year. This can change
the appointment or the removal in the company.

5. Shortage of skill due to labour turnover :- Industries having high labour

turnover rate, the HRP will change constantly i.e. many new appointments will
take place. This also affects the way HRP is implemented.
6. Multicultural workforce :- Workers from different countries travel to other
countries in search of job. When a company plans it’s HRP it needs to take into
account this factor also.

7. Pressure groups :- Company has to keep in mind certain pleasure. Groups like
human rights activist, woman activist, media etc. as they are very capable for
creating problems for the company, when issues concerning these groups arise,
appointment or retrenchment becomes difficult.

Strategic approach to recruitment and selection:-

The human resource plans of organisations determine the resources that the
organisation needs to be able to attain the objectives of the organisation. The plan
also states the resources that are available for the organisation. The available
resources in this case are both internal and external resource. In some situations,
the skill needed by the organisation might be obtained through the process of
recruitment. The management of some organisations may plan to reduce the
number of staff, redeploy employees or even train and develop the human
resource. Other organisations might consider promotion and retention using
incentives to reduce mobility of labour. In those organisations that decide to
engage in a recruitment process, a job analysis is conducted. A job analysis is a
document that contains a job description and person specification. Organisations
compete to attract the best categorise of labour force. During periods of high
unemployment, the problem in organisations is not to attract desirable applicants
but to select them. In order to select the best candidates, the job needs to be
analysed to determine the duties required by the position as well as the

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characteristics of the candidates to be hired. This objective is obtained through a
process known as the job analysis.

Recruitment and selection Recruitment and Selection are the activities that are at
the origin of human resource management. In other words, recruitment and
selection are the main activities of human resource management.Recruitment is
the process of looking for suitable candidates willing to offer services to an
organisation. Organisations usually invite a good number of aspiring employees
judged as qualified from which the best candidates are then selected to fulfil the
job requirements. Selection has to do with the collection of details concerning the
background of the candidate to evaluate and choose suitable candidate to be
employed for the job. Recruitment and selection can only be meaningful if
applicants are given equal opportunity.

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Talent acquisition

Talent acquisition is the process of finding and acquiring skilled human labor for
organizational needs and to meet any labor requirement. When used in the context
of the recruiting and HR profession, talent acquisition usually refers to the talent
acquisition department or team within the Human Resources department.
The talent acquisition team within a company is responsible for finding, acquiring,

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assessing, and hiring candidates to fill roles that are required to meet company
goals and fill project requirements.

Talent acquisition as a unique function and department is a relatively new

development. In many companies, recruiting itself is still an indistinct function of
an HR generalist. Within many corporations, however, recruiting as a designation
did not encompass enough of the duties that fell to the corporate recruiter. A
separate designation of talent acquisition was required to meet the advanced and
unique functions. Modern talent acquisition is a strategic function of an
organization, encompassing talent procurement, but also workforce planning
functions such as organizational talent forecasting, talent pipelining, and strategic
talent assessment and development.

Talent Acquisition Process:-

It includes:-

 Overview
 Position Descriptions
 Job Requisitions
 Interviewing Candidates
 Checking References
 Offer Process

Overview

TalentCentral facilitates communication between hiring managers, recruiters and

candidates, using an application that provides real-time tracking through all
stages of the recruiting process - from requisition creation to the new employee
joining Vanderbilt.
TalentCentral encourages open dialogue between the hiring manager and the
recruiter. This partnership ensures that the position description matches the
needs of the hiring manager, that requisitions are posted expeditiously, and that
candidates are screened and presented to the hiring manager.
Once the hiring manager accepts the candidate slate, the interviewing process
begins. Each candidate's status is updated automatically and available to both the
hiring manager and the candidate. When a hiring decision is made, and an offer is
accepted, TalentCentral generates the offer letter of record. Background checks, if

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needed, are initiated automatically and the new hire receives details about the
onboarding process.

Position Descriptions

TalentCentral is designed to import automatically position-specific information

from PeopleSoft and the Jobs Descriptions Database when a requisition is created.
Information includes items like the job title and description, and basic
qualifications for each job code. For the hiring manager, this automated feature
ensures that up-to-date titles and qualifications are used, and improves posting
time by reducing the need for data entry.
Hiring managers are encouraged to include detailed job duties as well as job
related preferences to the position description. This information will be reviewed in
the strategy session with your recruiter. The posting may be customized by your
recruiter in order to attract the highest quality applicants for your position.

Job Requisitions

The online TalentCentral job requisition will be used by the hiring manager and
Talent Acquisition Team to initiate and document the sourcing and hiring of talent
for Vanderbilt. A requisition will be initiated by the hiring manager and, after
necessary approvals, will be forwarded automatically to the recruiter through
TalentCentral.

Interviewing Candidates

Hiring managers will conduct interviews with candidates selected from the list of
applicants referred by the Talent Acquisition Team. In an effort to ensure
consistency and to select the best candidates for open positions, behavioral
interviewing techniques are recommended.
Targeted Selection is Vanderbilt University's approach for interviewing and
selecting new employees. It enhances and develops a variety of key behavioral
interviewing skills. To schedule training.Hiring managers are responsible for being
consistent and equitable in interviewing candidates. They should:

 Interview a number of candidates to ensure that a fair comparison takes

place
 Ask only job-related questions
 Use the same standardized interview guide for all those interviewing for the
same position

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 Schedule and plan to spend the same amount of interview time with all
candidates

Checking References

Vanderbilt requires a minimum of two work-related references from the

candidate's previous employment. References should be obtained from individuals
who provided supervision to the individual or have unique insight into his or her
work, or from the office specifically designated by the employer to provide such
information. To supplement any references obtained by the hiring manager,
employment verifications on external candidates will be conducted by a pre-
employment screening vendor and initiated by the recruiter on final candidates.
References for internal candidates are as important. The recruiter or hiring
manager can conduct these depending on circumstances and preferences. The
recruiter will extend a contingent offer until the current supervisor provides the
reference.

Offer Process

Once a finalist is selected, the recruiter, in consultation with the hiring manager,
develops the salary recommendation and builds the offer letter of record within
TalentCentral. The recruiter can send the offer letter directly to the candidate or to
the hiring manager, for them to share with the candidate. If the offer is accepted,
the hiring manager notifies the recruiter and this triggers a background check (if
needed). Upon successful completion of the background check, the hiring
manager, with assistance from the onboarding administrator, gives the new hire
their official start date, initiates the onboarding process and arranges for the new
hire's orientation.

Pre-Employment Criminal Background Check

Vanderbilt uses a third party vendor to conduct all pre-employment background

checks. The background check will be completed only after a contingent offer of
employment is made to the selected candidate and the Talent Acquisition Team is
notified.
Vanderbilt will conduct pre-employment background checks on all final candidates
for positions in departments that have elected or are required to use these checks
in the hiring process. All offers of employment are contingent upon the successful
completion of the background check. Prospective hires cannot begin work prior to

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the hiring department receiving notification from the Talent Acquisition Team that
the candidate meets all pre-screening criteria.
Please note that external staffing agencies employing temporary workers must
adhere to the same background screening procedures and criteria established for
Vanderbilt staff. Departments must notify Vanderbilt Temporary Services of the
intent to make such hires. Hiring managers should ensure that in appropriate
cases a background check is done for independent contractors who will be
performing work on campus. A person's status as an employee or independent
contract consultant is determined by Human Resources Compensation.
Strategic trends in talent acquisition:-
1. Becoming More Mobile

Today’s job seekers live on their smart phones and tablets. We all need to make it
easier for any and every candidate to learn about our companies, apply for our
jobs, and interact with hiring managers via their mobile devices.

2. Finding New Ways to Attract Passive Candidates

Unemployment rates are low, and many experts expect that they will continue to
drop. For employers, this means that top-notch employees will be at a premium.

The best employees are already working, and very few of these employees
are actively looking for jobs. They are not spending their free time on job boards or
applying for open roles Therefore, it is vital any employer in need of great
employees to uncover, identify, and convert passive candidates into interested,
active applicants. Employers can either do this on their own, or turn to expert
recruiting firms to help them.

3. Understanding and Reworking Roles in the Organization so as to Counter

the ‘Skills Gap’
Many employers recognize that the education professionals in their field receive
does not necessarily equip candidates to address the needs of the organization.
While the education issue itself has to be addressed, companies and employers
don’t have to wait around for that to happen. They can get a jump on the
competition by reevaluating and restructuring their jobs and open roles.

For example, an organization could implement remote work, telecommuting, and

flexible schedule options as a way to attract professionals who have the skills they

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need, but who may not be geographically available. Another useful tactic may be to
realign the duties of certain roles in order to match the skills that the workforce
currently has, thus ensuring that work gets done, no matter what the skills
shortage may look like.

4. ‘Selling’ the Company to Prospective Employees

These days, job seekers no longer apply by the hundreds for one job. An improving
economy means more choices for candidates. Today’s job seeker looks not only for
a well-paying position, but also a company with a corporate mission they believe in
and values that align with their own.

Employers need to clean up their reputations and aim for good reviews and reports
on social media sites like Glassdoor. More and more job seekers are looking at
these sources and using them to evaluate prospective employers. Job seekers will
not hesitate to turn down job offers from companies that get poor ratings on
Glassdoor and similar platforms.

5. Looking Within and Investing in Current Employees

The current talent market is rough for employers. This raises an important
question: Why turn to the outside market when you already have great employees
working for you?
It is far less costly to cultivate your existing workforce through learning and
professional development opportunities than it is to start fresh and look to
external resources. Given the size of the skills gap and the fierce competition for
candidates, employers may want to first focus on leveraging existing talent before
they throw all their resources at the external talent market.

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Employee Engagement
Employee engagement is a property of the relationship between an organization
and its employees. An "engaged employee" is defined as one who is fully absorbed
by and enthusiastic about their work and so takes positive action to further
the organization's reputation and interests. An engaged employee has a positive
attitude towards the organization and its values.[1]
An organization with "high" employee engagement might therefore be expected to
outperform those with "low" employee engagement
Employee engagement first appeared as a concept in management theory in the
1990s,[2] becoming widespread in management practice in the 2000s, but it
remains contested. It stands in an unspecified relationship to earlier constructs
such as morale and job satisfaction. Despite academic critiques, employee-
engagement practices are well established in the management of human
resources and of internal communications.
Drivers of engagement
Some additional points from research into drivers of engagement are presented
below:

 Employee perceptions of job importance – "...an employee's attitude toward

the job's importance and the company had the greatest impact on loyalty
and service than all other employee factors combined."[17]
 Employee clarity of job expectations – "If expectations are not clear and
basic materials and equipment are not provided, negative emotions such as
boredom or resentment may result, and the employee may then become
focused on surviving more than thinking about how he can help the
organization succeed."[18]
 Career advancement / improvement opportunities – "Plant supervisors and
managers indicated that many plant improvements were being made outside
the suggestion system, where employees initiated changes in order to reap the
bonuses generated by the subsequent cost savings."[19]
 Regular feedback and dialogue with superiors – "Feedback is the key to
giving employees a sense of where they‘re going, but many organizations are
remarkably bad at giving it."[18] "'What I really wanted to hear was
'Thanks.[20] You did a good job.' But all my boss did was hand me a cheque.'"[15]

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 Quality of working relationships with peers, superiors, and subordinates –
"...if employees' relationship with their managers is fractured, then no amount
of perks will persuade the employees to perform at top levels. Employee
engagement is a direct reflection of how employees feel about their relationship
with the boss."[21]
 Perceptions of the ethos and values of the organization – "'Inspiration and
values' is the most important of the six drivers in our Engaged Performance
model. Inspirational leadership is the ultimate perk. In its absence, [it] is
unlikely to engage employees."
 Effective internal employee communications – which convey a clear
description of "what's going on". "'

Preparing a recruitment plan:-

How you plan your recruiting is important not only to ensure you find the right
person for a job opening, but also because the costs of bad recruitment decisions
can be very high in terms of both time and money.

The following steps can help make sure your business has an effective recruitment
plan:

1-DETERMINE YOUR RECRUITMENT GOALS

A recruitment plan should be based on your business goals. For example, are you
planning to expand or change your business? What skills are required to
accomplish this objective? From there, you should establish specific recruitment
goals. One goal will be attracting the best people to work in your business. The
best people will make a direct difference to your bottom line, helping to raise your
service and quality level. People who are less than dedicated to your business can
compromise customer experiences.

Some other recruitment goals may be:

 Attracting a higher standard of candidate

 Attracting a candidate who has skills you currently do not have in your
organization
 Promoting your company as a dynamic place where people want to work
Determine your overall recruitment needs through having well established
business goals.

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2-REVIEW JOB DESCRIPTIONS

Take time to review the job description, which may need to be changed since the
last person was hired. Or, if it is a new position, you may need to create a new job
description. You may want to talk to the previous person in the position and get
their input on how the job description could be improved, and what the highlights
of the job were. Make sure the description includes all of the critical job related
components.

3-CONSIDER PEOPLE-FINDING STRATEGIES

How you find staff for your business can be divided into short-term and long-term
recruiting techniques. Short-term techniques are designed to generate an
immediate selection of candidates. Long-term techniques involve developing
relationships with key people and the community, and promoting your company
as a rewarding place to work. The focus is on keeping long-term relationships with
people who have the potential to work for your organization.

4-USE ALTERNATIVE LABOUR POOLS

Have you considered hiring co-op students, immigrants, aboriginals, people on
social assistance or EI, persons with disabilities, or baby boomers? Sometimes the
right person for the job may not be from the most obvious pool of applicants.

5-APPRECIATE THE PERCEPTION OF YOUR WORKPLACE FROM THE

OUTSIDE
How your workplace is perceived or positioned will affect how candidates respond
to job postings. To stand out in the job market, employers must offer something
different from competitors. For example, many tourism employers provide seasonal
hiring; an inability to offer permanent, full-time positions can set limits on the
selection of candidates. Yet this can be turned into something more appealing by
offering ongoing summer employment from year to year.

6-KEEP A SHORT LIST

Once your job ads are posted, be sure that you are clear about your selection
criteria. What skills do you need to add to your business? How will you choose one
candidate over another?

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Short-listing is the first step in identifying the candidates who display the skills
and selection criteria you are looking for. Shortlisting—when done well—can cut
down on interviewing time later on.

7-HONE YOUR INTERVIEWING TECHNIQUE

Before interviewing, develop job-related questions so there are no awkward
pauses, and so you remain in charge of the interview. Be sure to ask open-ended
questions that allow the candidate to tell you about themselves, such as "What are
some things you would like to avoid in a job? Why?" and "In your previous job
what kind of pressures did you face?"

8-CHECK THOROUGHLY BEFORE MAKING A JOB OFFER

Have you obtained a signed application, conducted reference checks and
scheduled background checks? Have you determined a salary offer based upon
market, qualifications and internal comparisons?

9-FOLLOW THROUGH AFTER A CANDIDATE HAS ACCEPTED

Have you confirmed the offer in writing and advised other employees within the
company? Be sure to make arrangements for the candidate‘s start date well ahead
of time. You‘ll also want to advise the other candidates that the position has been
filled.

With the right recruitment plan in place, you'll be in a better position to hire the
best people for your company.

List of popular job portals operating in India:-

Here is a list of top 15 online job portals in India in 2017:

1. CareerJet.co.in
2. Careerbuilder.co.in
3. WisdomJobs.com
4. Careesma.in
5. Jobstreet.co.in
6. Iimjobs.com
7. Freshersworld.com
8. Indeed.co.in
9. Glassdoor.co.in
10. FreeJobAlert.com

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11. Monsterindia.com
12. Timesjobs.com
13. Shine.com
14. Linkedin.com
15. Naukri.com

Searching and downloading applicant profile by using job portals:-

Search through resumes

Although their traditional role is to post job ads, job boards also serve as resume
databases by encouraging candidates to upload their resumes. Instead of (or, in
addition to) posting a job opening and waiting for incoming resumes, you could
search through the portal‘s database to find matching candidates. Set specific
criteria to narrow down your resume search: by location, skills, education level
and experience.

Use sourcing tools

Many sites build sourcing-specific tools for recruiters. Monster‘s Talent bin is a
large resume database where you could choose from millions of profiles for each
position. Along the same lines, CareerBuilder‘s resume database uses Boolean
logic to provide accurate results that decrease your search time.

Find relevant job portals for your role

To minimize time spent sourcing candidates through job portals, you need to look
in the right places. We work remotely brings remote workers and employers (from
all kinds of industries) closer together, whereas Mogul is the place to attract more
women for tech roles. If you‘re offering paid internships, check out Way Up. You
might find local job portals useful when you want to search in a limited
geographical area. For Greek candidates, you should check out Skywalker, in
Ireland, use Irish Jobs.

Consider non-traditional job boards

Many sites serve as a de-facto job board, without being designed as one. Their
advantage is that they gather people interested in a specific area and allow

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recruiters to post their job openings and look through resumes. This is very useful
to source candidates with a specific skill set.

Put your company on the map

Effective sourcing also means that candidates can easily find companies that are
hiring. Job portals offer spaces for advertising: they usually put special banners
for companies with current openings. In addition, they highlight job postings from
premium accounts. On Glassdoor, candidates find both job ads and information
about companies they consider applying to. You should aim to promote your
company through Glassdoor to boost your employer brand. Eventually, you‘ll
encourage more candidates to consider your job opportunities.

Sources of Recruitment of Employees

The searching of suitable candidates and informing them about the openings in
the enterprise is the most important aspect of recruitment process.

The candidates may be available inside or outside the organisation. Basically,

there are two sources of recruitment i.e., internal and external sources.

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(A) Internal Sources:
Best employees can be found within the organisation… When a vacancy arises in
the organisation, it may be given to an employee who is already on the pay-roll.
Internal sources include promotion, transfer and in certain cases demotion. When
a higher post is given to a deserving employee, it motivates all other employees of
the organisation to work hard. The employees can be informed of such a vacancy
by internal advertisement.

(B) External Sources:

All organisations have to use external sources for recruitment to higher positions
when existing employees are not suitable. More persons are needed when
expansions are undertaken.

Preparing recruitment budget:-

Here are five simple steps that will help you build a recruiting budget:

1. Determine your personnel budget

Employers often ask Glassdoor if they should factor in personnel cost into their
cost-per-hire. This is entirely up to each company‘s discretion, but I want to warn
you that it can significantly impact cost-per-hire calculations. Whether you factor
this into your cost-per-hire ratio or not, you must list out each job title needed on
the team, include hiring dates, and track salary impact per head count by quarter
to determine an appropriate personnel budget. To accurately forecast total cost, be
sure to add 30% to total to ―fully burden‖ for benefits, taxes, T&E, etc. Also,
include any contractor or part-time employees that you plan to bring on during the
year.

2. Factor in program and systems fees

With so many factors, your recruiting budget can easily balloon. Elements include
implementing a CRM system, managing social accounts, posting jobs online,
running employee referral programs, revamping your career site, adding photos
and videos that reflect your culture, installing recruiting analytics tools and
investing in your employer brand.

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You will need to account for the fees involved with each system and ensure you
keep track of campaign lengths. According to a recent Harris survey of employers,
an employer brand alone can typically amount to a $129,000 annual investment.
Ensuring that you have enough budget to cover recruiting tools and fees is
important to win the war for talent!

3. Estimate an annual expected number of hires

Coming up with your recruiting budget breakdown by program requires estimating
the number of job openings per year. Break this down by quarter to see what
budget needs to be spent on each channel when. At Glassdoor, we look at every
channel we use for our job ads and determine what we will spend on each by
quarter based on our open number of positions.
4. Track the cost of events
As a marketer, I know that staging events are time consuming and definitely not
cheap. Whether you are a small business looking to build awareness via career
fairs or an enterprise looking to host meet-ups that help candidates in becoming
familiar with your brand, it can be an expensive initiative. Be sure to consider all
the events that you will be hosting or attending during the year to come up with
an accurate budget.
5. Include an employee referral bonus program

Last, be sure you consider your spend on employee referral bonus programs. At
some companies, 50% or more of hires can come through employee referrals.
Having a strong program in place ensures success and rewards your employees for
introducing you to new candidates. Be sure to factor in fees that you will pay for
hard-to-fill positions then multiply that by half the openings that you will have
throughout the year, depending on the ratio of employees that you receive through
word of mouth.

Employer branding
Employer brand is the term commonly used to describe an organization's
reputation as an employer, and its value proposition to its employees, as opposed
to its more general corporate brand reputation and value proposition to customers.
The term was first used in the early 1990s, and has since become widely adopted
by the global management community. Minchington describes your employer
brand as "the image of your organisation as a 'great place to work' in the mind of
current employees and key stakeholders in the external market (active and passive
candidates, clients, customers and other key stakeholders). The art and science of

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employer branding is therefore concerned with the attraction, engagement and
retention initiatives targeted at enhancing your company's employer brand."
Formulating Better Recruitment Strategy(specially for managerial/executive
jobs)
Some of the ways to formulate better recruitment strategies for your company are
as follows:

1. Identifying and Prioritizing Jobs:

Requirements keep arising at various levels in every organisation; it is almost a
never-ending process. It is impossible to fill all the positions immediately.

Therefore, there is a need to identify the positions requiring immediate attention

and action. To maintain the quality of the recruitment activities, it is useful to
prioritize the vacancies—whether to focus on all vacancies equally or focusing on
key jobs first.

2. Candidates to Target:
The recruitment process can be effective only if the organisation completely
understands the requirements of the type of candidates that are required and will
be beneficial for the organisation.

3. Sources of Recruitment:
The strategy should define various sources (external and internal) of recruitment.
There is a need to know the sources to be used and focused for the recruitment
purposes for various positions. Employee referral is one of the most effective
sources of recruitment.

4. Trained Recruiters:
The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They
should also be aware of the major parameters and skills (e.g., behavioral, technical
etc.) to focus while interviewing and selecting a candidate.

5. How to Evaluate the Candidates:

The various parameters and the ways to judge them i.e., the entire recruitment
process should be planned in advance. Like the rounds of technical interviews, HR
interviews, written tests, psychometric tests etc.

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Selection process

Steps Involved in Selection Procedure:

A scientific and logical selection procedure leads to scientific selection of
candidates. The criterion finalized for selecting a candidate for a particular job
varies from company to company.

Brief details of the various steps in selection procedure are given as follows:
1. Inviting applications:
The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job description and job
specification are provided in the advertisement for the job. It attracts a large
number of candidates from various areas.

2. Receiving applications:
Detailed applications are collected from the candidates which provide the
necessary information about personal and professional details of a person. These
applications facilitate analysis and comparison of the candidates.

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3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive
applications ends, the applications are sorted out. Incomplete applications get
rejected; applicants with un-matching job specifications are also rejected.

4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications, the
written test is conducted. This test is conducted for understanding the technical
knowledge, attitude and interest of the candidates. This process is useful when the
number of applicants is large.

Many times, a second chance is given to candidates to prove themselves by

conducting another written test.

5. Psychological tests:
These tests are conducted individually and they help for finding out the individual
quality and skill of a person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test

6. Personal interview:
Candidates proving themselves successful through tests are interviewed per-
sonally. The interviewers may be individual or a panel. It generally involves officers
from the top management.

The candidates are asked several questions about their experience on another job,
their family background, their interests, etc. They are supposed to describe their
expectations from the said job. Their strengths and weaknesses are identified and
noted by the interviewers which help them to take the final decision of selection.

7. Reference check:
Generally, at least two references are asked for by the company from the can-
didate. Reference check is a type of crosscheck for the information provided by the
candidate through their application form and during the interviews.

8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job.
In-spite of good performance in tests and interviews, candidates can be rejected on
the basis of their ill health.

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9. Final selection:
At this step, the candidate is given the appointment letter to join the organization
on a particular date. The appointment letter specifies the post, title, salary and
terms of employment. Generally, initial appointment is on probation and after
specific time period it becomes permanent.

10. Placement:
This is a final step. A suitable job is allocated to the appointed candidate so that
they can get the whole idea about the nature of the job. They can get adjusted to
the job and perform well in future with all capacities and strengths.

Assessment centre
Assessment Centres are an alternative method of recruiting to the usual interview
structure. They have gone in and out of favour – when are they the best solution to
a recruitment need, and what should they consist of?

In an ideal world, when recruiting for positions we would have the opportunity to
"try before you buy" and see an individual actually at work before you hire them.

The use of assessment centres

 They are far more accurate than a standard recruitment process as they allow a
broader range of selection methods to be used during the process
 They enable interviewers to assess existing performance as well as predict
future job performance
 They give the opportunity to assess and differentiate between candidates who
seem very similar - in terms of quality - on paper
 They give the candidates a better insight into the role as they are tested on
exercises, which are typical for the role they have applied for
 They help employers build an employer brand. Candidates who attend
assessment centres which genuinely reflect the job and the organisation are
often impressed by that company, even if they are rejected
 The cost of an assessment centre is usually cheaper compared with the
potential cost of many recruitment phases and the cost of recruitment errors
 They are a fair process – they complement an organisation‘s diversity agenda
and ensure that people are selected on the basis of merit alone.

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Selection errors

Selection errors is the bias introduced by the selection of individuals, groups or

data for analysis in such a way that proper randomization is not achieved, thereby
ensuring that the sample obtained is not representative of the population intended
to be analyzed. It is sometimes referred to as the selection effect.

There are two types of selection error. In the "false positive error," a decision is
made to hire an applicant based on predicted success, but failure results. In the
"false negative error," an applicant who would have succeeded is rejected based on
predictions of failure.

Top 10 selection errors and solution to minimize these errors:-

To help you reduce your turnover and improve your bottom line, below are
solutions to the top 10 employee selection mistakes.

1. Use only a "gut feel" approach

No relationship has been found between years of experience hiring people

and effective selection, so the experienced manager is no more effective than
the rookie manager. Experienced managers tend to rely more on gut feel and
stray from validated practices for effective selection.

Experience and intuition are important, but so are more reliable and valid
ways to collect data such as testing, simulations and work samples. No one
aspect of the selection process should be relied on exclusively; rather they
should be weighted based on the company's values and the job
requirements.

Solution: Design and train on a selection process that contains various

forms of data collection (qualitative and quantitative). Design your process
and weight each selection component based on your company's values.

2. Don't know what you are looking for

It is hard to find "it" when you do not know what you are looking for.

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Solution: Like most decision-making, employee selection is fundamentally
emotional. Therefore, it is important to define and prioritise the Critical
Success Factors (CSFs) for the job in advance. This enables clear thinking to
establish a specific position profile. Yes, it takes time, but it is an effective
use of time versus "shooting in the dark". See the following Applicant
Evaluation Tool to help you avoid this mistake.

3. Screen in vs. screen out

Most interviewers inherently look for characteristics that match the
company culture and job requirements. They want to find a winner – a
match! This perspective subtly but significantly makes us filter in good
attributes and rationalise why negative attributes will not be a problem if we
hire this person.

Solution: View your job as an investigator who is looking for any little clue,
any reason, why this candidate will not be wildly successful.

4. Talk 80% and listen 20%

The reverse should be true. If you are talking too much, then you are selling
the job (see below) instead of screening the candidate.

Solution: The interviewer should listen 80% of the time.

5. Take candidates at their word

Do not settle for vague general responses to be polite.

Solution: You are on a data collection mission. Probe for specific examples
and situations where the candidate has demonstrated the success factors
you are looking for. Let the candidate know at the beginning of the interview
that your goal is to fully and specifically understand his / her capabilities.

6. Give in to work and market pressures

The vast majority of managers hire too quickly and fire too slowly. In a tight
labor market, it is not uncommon for a hiring manager to meet the
candidate only once then make an offer. And when candidate supply is
plentiful, managers tend to miss the opportunity to sift through lots of
candidates to find the very best fit due to "lack of time". Interesting that

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these same managers can find the time to deal with performance issues
resulting from poor selection - again, pay me now or pay me later.

Solution: Use the 3x3x3 Rule: 3 employees interview 3 candidates 3

different times. You are thinking, "All that time for one hire?" You will spend
much more time than that if you make the wrong hire.

7. Selling the job

This is another mistake that can be exacerbated in a tight labor market.
Managers want to sell the candidate on their company because they know
that the candidate likely has an offer on the table from a competing
company.

Solution: The effective, long-term objective is to look for a good "fit" for the
job and the company, regardless of the labor market conditions.

8. Oblivious to the legal Do's and Don'ts

This may not prevent you from making the right selection decision, but it
sure will increase your company's liabilities.

Solution: Ignorance is no excuse. Know, train, and enforce the law in your
selection processes.

9. Go with the Flow

This comes down to lack of preparation and relying on those "favorite
questions" and gut feel. Most interviewers do not take control of the
interview.

Solution: Once you have identified the success factors and prioritised them,
then prepare questions (and appropriate follow-up questions / probes) that
will extract the necessary information from the candidate. Remember, it is
your interview. You set the process, timing, roles, pace and questioning - not
the candidate. This requires thoughtful preparation.

10. Listen only to the candidate's words

90+% of all communication is nonverbal, so being attuned to the multitude
of nonverbal cues provides an interviewer with much richer information
about the candidate.

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Solution: Don't stop at the traditional cues: eye contact, posture, facial
expressions and gestures. Consider intonation, pacing of speech, energy
level, self-confidence. How did you feel after the interview? Enthused, tired,
impressed? Perhaps those who work with the candidate will feel the same
way.

RELIABILITY

Reliability refers to the consistency or stability of response on a test, for example a

group takes a cognitive ability test on this week and achieves a mean score of 100.
The same test is repeated after a week and the groups reported mean score of 62.
Then we have to conclude that something is wrong with test. We would describe
the test as unreliable because it yields inconsistence measurements. Slight
variation in test score is natural but the fluctuation should not be larger.

Tests which produce wide variation can not be used in selection procedure.

There are three methods by which the reliability of a test can be determined. They
are:

A. Test Retest Method

B. The Equivalent Forms Method
C. Split-Halves Method

1. Test Retest Method

This method involves administering a test twice to the same group of people.
Then correlation is done to determine the correspondence between the two
set of scores. The correlation coefficient called reliability coefficient. If the
correlation is positively high then reliability is also high.

2. The Equivalent Forms Method

This method also uses test retest approach in parallel forms. However,
instead of using the same test a second time, a similar form of the test is
administered
The disadvantage of this method is that it is difficult and costly to develop
two separate and equivalent tests.

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3. Split-Halves Method
In this method, the test is taken only once. The items are divided in half and
the two sets of scores are correlated.

VALIDITY

Validity is the determination of whether a psychological test or other selection

device measures what it is intended to measure.

 Criterion related validity

 Predictive validity
 Concurrent validity
 Content validity
 Construct validity
 Face validity

 Criterion-Oriented or Predictive Validity:

When you are expecting a future performance based on the scores obtained
currently by the measure, correlate the scores obtained with the performance. The
later performance is called the criterion and the current score is the prediction.
This is an empirical check on the value of the test – a criterion-oriented or
predictive validation.

 Predictive validity
It involves administering the new test to all job applicants for a specified period
and hiring them all, regardless of their test score. At a later date, some measure of
job performance, such as production figures or supervisor ratings are obtained on
each worker. The test scores and the fob performance criteria are correlated to
determine how well the test predicted job success.

 Concurrent validity
It is more popular with management than the predictive validity. It involves giving
the test to employees already on the job and correlating the scores with job
performance.

 Content validity
This type of validity assesses test items to ensure that they adequately sample the
skills the test is designed to measure.

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 Construct validity
This type of validity attempts to determine the psychological characteristics
measured by a test.

 Face validity
This type of validity is not a statistical measure but a subjective impression of how
well the test items seem to be related to the requirements of a job.

Interviewers have different styles and methods of interviewing. The main aim of the
interviewer is to find out whether the candidate can act accordingly to different
situation and circumstances. They try to extract the most information from the
candidate so as to know the outcome of the interview. Following are the types of
Interview methods widely used by the interviewers.

1. The Telephone Interview

A. Telephone interviews are hugely valuable because they speed up the
interview process and minimize time-wasting, whilst culling your weaker
candidates earlier on.
B. A face-to-face interview will take up your time as well as your candidate‘s, so
having a quick chat to suss out whether they‘re suitable, before meeting up
will benefit both of you.
C. A CV only tells part of the story; hearing the candidate‘s tone of voice and
assessing their direct answers will provide a much more detailed insight into
their personality. In general, a telephone interview should take about 30
minutes, giving you both a chance to warm up for 5 minutes, check each
other out for 20 minutes and warm down for 5. Of course, if a candidate
manages to keep you on the phone for longer than 30 minutes wit‘ engaging
conversation, that‘s a very good sign.

Advantages:

 It‘s quicker than a face-to-face interview.

 It‘s cheaper than a face-to-face interview.
 It‘s less effort for you and the candidate.
 You can assess the candidate‘s telephone manner.
 You can reach long-distance candidate.

Disadvantages:

 The call could be interrupted (bad signal, other calls, background noise).

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 You can‘t read a candidate‘s body language.
 You might have to schedule it outside of working hours (if their employers
don‘t know)
 It‘s difficult to build as much rapport via the telephone.

2. The Video Interview

A. Video interviews (Skype, Google, Hangouts, Face Time) are great alternative
to telephone interviews.
B. The fact that you can actually see each other adds a certain level of
importance and professionalism to the ‗call‘ and removes the temptation for
either party to multi-task or lose focus.
C. Of course, you could still face similar issues to those that plague the
telephone interview.
D. Background distractions could still occur, other calls could come through,
bad signal could distort the conversation and, as you can both see each
other, there‘s no hiding from them.

Video interviews will vary in length depending on the situation. If used as a

substitute for telephone interview, at the beginning of the process, then it should
last roughly 30 minutes. If used as a substitute to the individual face-to-face
interview, nearing the end of the process (either a group video chat or one-to-one)
then it should last roughly an hour.

Advantages:

 It‘s quicker than a face-to-face interview.

 It‘s cheaper than a face-to-face interview.
 It‘s less effort for you and the candidate.
 You can reach long-distance candidates.
 You can cull weaker candidates right at the start of the process
 You‘ll be able to tell if they‘re focused (or just reading from noes).

Disadvantages:

 The video call could be interrupted (bad signal, connection, background

noise).
 You‘ll find it difficult to read candidate‘s body language.

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 You might have to schedule it outside of working hours (if their employers
don‘t know).
 It‘s difficult to build rapport via a video chat.
 You have to look professional and focused (unlike via the telephone)

3. The panel Interview

A. Panel interviews are the same as individual, face-to-face interviews, but
with two or more interviewers in the room.
B. The main advantage of panel interviewing is that it precludes any personal
biases that might creep into the assessment process.
C. Each interviewer will pick up on different characteristics, strengths and
judgment.
D. Panel interviews should last 45 minutes, at the very last, giving you a
suitable amount of time to work out whether the person is genuinely right
for the role.

A really great interview will last longer than an hour; your candidate must be
doing something right if they‘ve managed to engage you in conversation for such a
prolonged amount of time.

Advantages:

 No personal biases.
 The chance to compare different opinions.
 More chance to get notes (while other talk).
 All relevant people meet at the same time.
 Weak interviewers might need back-up.
 The candidate gets a chance to meet everyone.

Disadvantages:

 Some interviewers could get complacent.

 It could be overwhelming for the candidate (scary!)
 Interviewers could interrupt each other, striving for dominance.
 There‘s a risk of disagreement.

4. The Assessment Day

A. Assessment ―days‖ can be used to assess larger group of interviewees at the
same time, for a range of different skills.

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B. Common amongst graduate employers, they are a great way to evaluate
candidates in more detail, for a longer period of time.
C. If you‘re interviewing a large group and your offices are only small, it‘s a
good idea to seek out a local assessment centre to host the day for you.
D. Most assessments take place across one day (although some companies
have been known to host week-long assessment interviews.)

They‘re commonly used as the very first recruitment step, to suss out the
superstar candidates in a big crowd, or as the only step, with an individual
interview scheduled at some point, meaning the entire process is completed in
just one day.

Advantages:

 Extra time to get to know each of the candidates.

 It minimizes legal risk and is less disputable.
 You can assess interpersonal skills and teamwork.
 You can interview all candidates at once.
 It sparks competition.
 Out of the norm, so generates genuine answers.

Disadvantages:

 More difficult to administer effectively.

 The pressure will put some candidates off.
 You‘ll have to focus for a longer time.
 Dominant personalities will quash others.
 You could miss something or someone
 More difficult to build rapport with individuals.
 Some candidates work better individually.
 It requires more staff to pull off.

Choosing the types of job interviews technique in 3 steps

The job interview might seem, at first glace, to be a fairly basic procedure. But
there are actually a lot of different interview techniques to choose from, depending
on the nature of the job, the candidates in question, and the interviewers.
Thinking your interview technique through is well worth your time – having the

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right process in place ensures you‘re getting as much as possible out of your
candidates so that you can make an informed hiring decision.
To help, here‘s a quick three-step guide to choosing the best interview technique
for your next hire.
1. Select a format
The first step in developing an effective interview technique is choosing the right
method.
2. Decide between structured or unstructured
Job interviews can be divided into two types: structured and unstructured. In a
structured interview, the hiring manager or recruiter has written down exactly
what to ask, how to ask it, and what kind of response they‘re looking for.
An unstructured interview is the opposite: the interviewer doesn‘t have a set-in-
stone list of questions. Instead, they let things flow organically, more like a
conversation than a job interview.
A word of warning: while the unstructured format might seem like the one that
would get a candidate away from rehearsed answers,
3. Choose your question style(s)
There is no shortage of interview questions to choose from, but knowing the
benefits and challenges of each type can help you mix-and-match accordingly.
Here are four of the most common question styles:
I. Behavioral
II. Competency
III. Case study
IV. Situational

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Comprehensive approach to retaining employees:-
Employee retention refers to the ability of an organization to retain its
employees. Employee retention can be represented by a simple statistic (for
example, a retention rate of 80% usually indicates that an organization kept 80%
of its employees in a given period). However, many consider employee retention as
relating to the efforts by which employers attempt to retain employees in their
workforce. In this sense, retention becomes the strategies rather than the
outcome.
A distinction should be drawn between low-performing employees and top
performers, and efforts to retain employees should be targeted at valuable,
contributing employees. Employee turnover is a symptom of deeper issues that
have not been resolved, which may include low employee morale, absence of a
clear career path, lack of recognition, poor employee-manager relationships or
many other issues. A lack of satisfaction and commitment to the organization can
also cause an employee to withdraw and begin looking for other opportunities. Pay
does not always play as large a role in inducing turnover as is typically believed.[1]
In a business setting, the goal of employers is usually to decrease employee
turnover, thereby decreasing training costs, recruitment costs and loss of talent
and organizational knowledge. By implementing lessons learned from
key organizational behavior concepts, employers can improve retention rates and
decrease the associated costs of high turnover. However, this isn't always the case.
Employers can seek "positive turnover" whereby they aim to maintain only those
employees whom they consider to be high performers.

What Is Turnover?

When employees leave a company and have to be replaced, that's called turnover.
A certain amount of turnover is unavoidable, but too much can ruin a company.

Some employees will always retire, move away, go back to school, or leave the
workforce. This level of turnover is not only unavoidable, it can be beneficial. It
brings new people into the organization with new ideas and a fresh perspective.

There are four types of turnovers:

1)-Voluntary- is the first type of turnover, which occurs when an employee
voluntarily chooses to resign from the organization. Voluntary turnover could be
the result of a more appealing job offer, staff conflict, or lack of advancement
opportunities.[1]
2)-Involuntary-which occurs when the employer makes the decision to discharge
an employee and the employee unwillingly leaves his or her position.[1] Involuntary

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turnover could be a result of poor performance, staff conflict, the at-will
employment clause, etc.
3)- functional-which occurs when a low-performing employee leaves the
organization. Functional turnover reduces the amount of paperwork that a
company must file in order to rid itself of a low-performing employee. Rather than
having to go through the potentially difficult process of proving that an employee is
inadequate, the company simply respects his or her own decision to leave.
4)-dysfunctional- which occurs when a high-performing employee leaves the
organization. Dysfunctional turnover can be potentially costly to an organization,
and could be the result of a more appealing job offer or lack of opportunities in
career advancement. Too much turnover is not only costly, but it can also give an
organization a bad reputation. However, there is also good turnover, which occurs
when an organization finds a better fit with a new employee in a certain position.
Good turnover can also transpire when an employee has outgrown opportunities
within a certain organization and must move forward with his or her career in a
new organization.[6]
Turnover as with the non resolution of an employee asset issue (E.g. Cyber :
Opportunity & risk) and their course of work in the digital era.
Managing Voluntary Turnover
Hardworking human resources departments expend a lot of effort trying to fill an
open position with the right job candidate. Once this position is filled, the hope is
that the new employee will prove to be a hard worker who stays with the company.
All too often, job positions open again when an unsatisfied employee takes another
job. This can be a frustrating chain of events, but there are steps you can take to
reduce this type of voluntary turnover.

1. Create an environment that encourages trust and communication. Give your

employees new tasks or greater responsibility with their current tasks. This
demonstrates that you trust your employees and feel that they are competent to
complete the assignment. Communicate to them what your expectations are and
what the time line for the assignment looks like. When the task is completed, give
them feedback.

2. Give employees a goal, and recognize a job well done. You can do this by helping
your employees develop a career plan. Ask them where they would like to be
professionally in one year, two years and five years. Then help your employees set
goals to reach these professional levels. When goals are accomplished, let your

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employees know that you have noticed. Set up a small rewards system to add
incentive. This helps your employees to feel more invested in and happy with their
jobs, causing them to be less likely to leave.

3. Invest in training your employees. Provide the professional training and tools
they need to succeed. If an outside training course is needed or new office
equipment would increase efficiency, make the investment. This action on the part
of the company makes the statement that your employees are valued. When people
feel appreciated, they are more apt to stay.

4. Remain competitive with other companies. Voluntary turnover can arise from an
opportunity for a better job. Examine your benefits package -- your company's
401k plan, health insurance coverage and vacation. Make it equivalent to or better
than similar companies to reduce turnover. Also, look at what you are paying your
employees. Determine whether your starting salaries are competitive and whether
promotions and raises are in line with or better than your competitors.

5. See to it that you do not overburden or stress out your employees. Sometimes
companies add too much responsibility or pressure to existing employees instead
of hiring new people to share the load. This attempt to save money can
unintentionally backfire, causing dissatisfaction in your current employees.
Dissatisfaction in a current job leads to looking elsewhere. Instead, keep your
employees' workload and deadlines at a challenging but attainable level.
Compensation is an important component of your startup’s talent management
strategy, and your compensation plans should support this.
To attract talent and remain competitive, startups need to design a practical and
cost-effective compensation plan that meets both the needs of their business and
the market for talent.

Compensation: A key tool for talent management

Remember that compensation can be a key recruitment and retention tool, and
should always be leveraged to motivate employees toward business objectives.
Use compensation plans to reward all employees for business success, or to
recognize individual contributions toward that success.

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Establish your compensation philosophy and strategy

Create your compensation philosophy

Having a compensation philosophy helps you consistently run your compensation
plan while maintaining the flexibility to respond to changing business priorities
and environments.

Create an overriding philosophy that focuses on your startup’s intent and overall
approach to compensation. This will help you make consistent strategy decisions
and implement more tangible aspects of the plan.

Define your compensation strategy

Aim to keep your compensation strategy as simple as possible, to facilitate
communication and understanding. To develop your strategy, consider the key
elements of the overall compensation package:

 Who is the market? Who do you compete with for talent and skills?
 Do you want to lead, match or lag behind this market? Do you want to
compare to the median or average rate?
 Is your goal to have fairness between employees within the organization
or to be competitive within each specific skills market—or can you
balance both?
 What mix does your startup favour? It could include:
o Base salary
o Bonus and incentive plans
o Stock options
 What mix does your key talent (e.g., your A-players, tech talent) favour?
It could include:
o Base salary
o Bonus and incentive plans
o Stock options
Once you have thought these through, pull together your key decision points and
articulate them into a philosophy and strategy statement. This will guide your
tactical compensation and talent management decisions and help you
communicate your approach to employees.

Compensation philosophy and strategy statement: Example

―XYZ Company intends to administer pay in a manner that is non-discriminatory
and competitive, taking into consideration the organization’s overall financial
condition, the supply and demand for skills, and individual performance.
Our compensation strategy is to develop salary ranges that are competitive with
the range of salaries being offered in the skills market, based on published salary
data and business conditions. Salary ranges for certain positions may be targeted

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differently, based on competitive challenges that develop from time to time.
Individuals will be paid within the range determined for their position, based on
individual performance and contribution.‖

Building your compensation strategy into your compensation plan

Once you have identified your startup’s compensation strategy, you can work to
implement it into your compensation plan. You’ll need to:

 Assess your current position against the position and marketplace that
you have defined in your strategy. To conduct this assessment, you
must have accurate job descriptions for your employees. Always match
jobs based on content, scope and impact, and not on the job title. To
obtain relevant data, you must participate in the same surveys as your
defined market for talent
 Assess talent in similar roles against each other internally, and validate
any differences in pay
 Develop guidelines for your incentive plans (if applicable)
 Develop guidelines for your stock options plan (if applicable)

An effective compensation strategy should:

 Meet basic financial needs. This helps with their security needs (Maslow’s
hierarchy) and allows employees to focus on their work without worry.
 Be clearly linked to established performance measures. Performance
measure need to be clear and based on organisational culture and
strategy priorities. What we reward gets repeated. If we reward poor
behaviour (even though it achieves results) those behaviours become part of
the culture (The way we do things here).
 Be fairly and applied consistently. Employees need to know that they are
being paid fairly (compared to the market and colleagues), and that the pay-
for-performance strategy clearly differentiates between high and low
performance. An effective compensation strategy rewards high performers
who act in line with cultural and strategic goals.
 Be easy to understand and transparent. Compensation is something that
can easily be misunderstood. Management can reduce confusion by helping
employees understand how compensation decisions are made based on
individual performance, budget, and performance of the organisation as a
whole in the market. Give managers talking points, tools and training so they
can help employees understand how their own performance impacts their
compensation and what they need to do to achieve higher levels within the
organisation.
 Be an integral part of the overall talent management plan. The
compensation strategy impacts retention, recruitment and succession

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planning as well as moth-to-month performance and motivation. Pay-for-
performance plans have been found to significantly influence top performers
in their decisions to join or leave an organisation.
Defining the elements of total rewards
Total rewards are the monetary and non-monetary return provided to employees in
exchange for their time, talents, efforts and results. It involves the deliberate
integration of five key elements that effectively attract, motivate and retain the
talent required to achieve desired business results.
The five key reward elements are:
 Remuneration/Compensation
 Benefits
 Work-Life
 Performance and Recognition
 Development and Career Opportunities

These elements represent the ―tool kit‖ from which an organization chooses to
offer and align a value proposition that creates value for both the organization and
the employee. An effective total rewards strategy is the art of combining these five
elements into tailored packages designed to achieve optimal motivation. This
results in satisfied, engaged and productive employees, who in turn create desired
business performance and results. In this successful exchange relationship, the
employee provides time, talent, efforts ,results and the employer provides a total
rewards package that is perceived as valuable by the employee.
Total rewards operate in the context of overall business strategy, organizational
culture and human resources strategy. Indeed, a company’s exceptional culture or
external brand value may be considered a critical component of the total
employment value proposition. In addition, other external influences on a business
that affect total rewards design include:
 Legal/regulatory issues
 Cultural influences and practices
 Competition
 Labor market

1)-Remuneration/Compensation-Pay provided by an employer to an employee for

services rendered (i.e. time, effort and skill). Remuneration/Compensation
comprises four core elements:
 Fixed pay – Also known as ―base or basic pay‖, fixed pay is nondiscretionary
compensation that does not vary according to performance or results achieved. It
usually is determined by the organization’s pay philosophy and structure.
 Variable pay – Also known as ―pay at risk‖, variable pay changes directly with the
level of performance or results achieved. It is a one-time payment and must be
reestablished and re-earned each performance period.

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 Short-term incentive pay – A form of variable pay, short-term incentive pay is
designed to focus and reward performance over a period of one year or less.
 Long-term incentive pay – A form of variable pay, long-term incentive pay is
designed to focus and reward performance over a period longer than one year.
Typical forms include stock options, restricted stock, performance shares,
performance units and cash.

2)-Benefits-Programs an employer uses to supplement the cash compensation

that employees receive. These programs are designed to protect the employee and
his or her family from financial risks and can be categorized into the following
three elements:
 Social Insurance
o Unemployment
o Worker’s compensation
o Social Security
o Disability (occupational)
 Group Insurance
o Medical
o Dental
o Vision
o Prescription drug
o Mental health
o Life insurance
o Accidental death and dismemberment insurance (AD&D)
o Disability 3
o Retirement
o Savings
 Pay For Time Not Worked – These programs are designed to protect the
employee’s income flow when not actively engaged at work.
o At work (breaks, clean-up time, uniform changing time)
o Away from work (vacation, government holidays, company holidays, personal
days)

3)-Work-Life
A specific set of organizational practices, policies and programs, plus a philosophy,
which actively supports efforts to help employees achieve success at both work
and home. There are seven major categories of organizational support for work-life
effectiveness in the workplace. These categories encompass compensation, benefits
and other human resources programs. In combination, they address the key
intersections of the worker, his or her family, the community and the workplace.
The seven categories are:
 Workplace flexibility
 Paid and unpaid time off

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 Health and well-being
 Caring for dependents
 Financial support
 Community involvement
 Management involvement/culture change interventions

4) - Performance & Recognition Performance

A key component of organizational success, alignment of organizational, team and
individual performance is assessed in order to understand what was
accomplished, and how it was accomplished. Performance involves the alignment
of organizational, team and individual effort toward the achievement of business
goals and organizational success.
 Performance planning – is a process whereby expectations are established
linking individual with team and organizational goals. Care is taken to ensure
goals at all levels are aligned, and there is clear line of sight from performance
expectations of individual employees all the way up to the organizational objectives
and strategies set at the highest levels of the organization.
4  Performance – is the manner of demonstrating a skill or capacity.
 Performance feedback – communicates how well people do a job or task
compared to expectations, performance standards and goals. Performance
feedback can motivate employees to improve performance
Recognition: Acknowledges or gives special attention to employee actions, efforts,
behavior or performance. It meets an intrinsic psychological need for appreciation
of one’s efforts and can support business strategy by reinforcing certain behaviors
(e.g., extraordinary accomplishments) that contribute to organizational success.
Whether formal or informal, recognition programs acknowledge employee
contributions immediately after the fact, usually without predetermined goals or
performance levels that the employee is expected to achieve. Awards can be cash
or non-cash (e.g., verbal recognition, trophies, certificates, plaques, dinners,
tickets, etc.). The value of recognition plans is that they:
 Reinforce the value of performance improvement
 Foster continued improvement, although it is not guaranteed
 Formalize the process of showing appreciation
 Provide positive and immediate feedback
 Foster communication of valued behavior and activities

5)- Development and Career Opportunities

Development: A set of learning experiences designed to enhance employees’

applied skills and competencies. Development engages employees to perform better
and engages leaders to advance their organization’s people strategies. Career
Opportunities: A plan for employees to advance their career goals, and may

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include advancement into a more responsible position in an organization. The
organization supports career opportunities internally so that talented employees
are deployed in positions that enable them to deliver their greatest value to the
organization. Development and career opportunities include the following:
 Learning Opportunities
o Tuition assistance
o Corporate universities
o New technology training
o Attendance at outside seminars, conferences, virtual education, etc.
o Self-development tools and techniques
o On-the-job learning; rotational assignments at a progressively higher level
o Sabbaticals with the express purpose of acquiring specific skills, knowledge or
experience
 Coaching/Mentoring
o Leadership training
o Access to experts/information networks --- association memberships,
attendance and/or presentation at conferences
o Exposure to resident experts
o Formal or informal mentoring programs --- in or outside one’s own organization
 Advancement Opportunities
o Internships
o Apprenticeships with experts
o International assignments
o Internal job postings
o Job advancement/promotion
o Career ladders and pathways
o Succession planning
o Providing defined and respectable ―on and off ramps‖ throughout the career life
cycle

Integrated Rewards Philosophy: A Blueprint for Success

Organizations that put little emphasis on defining a philosophy or strategy often
regard such positioning statements as non-binding rhetoric. For example, a typical
rewards philosophy statement usually states that the purpose of the company’s
compensation plans is to: ―Attract, retain and motivate our people, and provide
pay that is competitive with the marketplace and consistent with performance
achievements.‖ While one cannot argue with these points, there is nothing in these
statements that has any meaning to individual employees, provides tools or
guidance to make decisions, nor suggests that the organization is different from
others in the marketplace. There is little clarity about the purpose of various
programs, nor can these statements be used to guide human resource actions.

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We often find companies that use ―generic‖ statements are more interested in
doing what others do than in defining how they can use rewards to become
distinctive in the marketplace. However, organizations that have carefully thought
through their philosophy and approach to total rewards can create a more robust
and effective system by which they support their talent requirements. Further,
they see the various programs—base salaries, variable compensation, equity
participation, recognition activities, performance feedback and development,
career building investments, employee benefits and services, etc.—as integrated.
What is your EVP?
An employee value preposition is the experience offered by an employer in
exchange for the productivity and performance of an employee.

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Emerging trends in HR:

HUMAN RESOURCE (HR) AUDIT

An HR Audit is like an annual health check-up, it plays a vital role in instilling a

sense of confidence in the Management and the HR functions of an organisation.
Human resources are the people in an organization, so a human resources audit is
a look at those people and the processes that put them in place to make sure the
system is working efficiently. An HR audit also goes beyond looking at the hiring
process into areas like employee retention, budgeting, training, employee
compensation, management/employee relations and virtually any process or
practice within the company that affects its people.

When it comes to physical health, prevention of problems is far better than waiting
until a problem arises and trying to cure it. The same holds true for human
resources auditing. Preventing problems is much easier than trying to fix them
after the fact. Good Human Resource planning and auditing can help prevent
those problems, and save companies money and difficulties.

Human Resource Accounting benefits the company ascertain how much

Investment it has made on its Employees and how much return it can expect from
this Investment.

Definition:

The American Accounting Association’s Committee on Human Resource

Accounting (1973) has defined Human Resource Accounting as
“the process of identifying and measuring data about human resources and
communicating this information to interested parties”.

Flamholtz (1971) too has offered a similar definition for HRA. They define HRA as
“the measurement and reporting of the cost and value of people in organizational
resources”.

Who should conduct the audit?

The team that is responsible for the audit should represent a cross-section of the
organization’s staff, including line staff, middle and upper management, and those
responsible for HR functions.

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Need and Purpose of Human Resource Auditing

The commonly understood audits are the established and regular accounting
audits carried out in accordance with specific statutory regulations. However, in
the case of human resource audits, there is no legal obligation, but enlightened
managements have voluntarily accepted its usefulness depending upon the
circumstances. The following circumstances may be cited as examples:

 felt concern by top management,

 compulsions of the external forces necessitating a situational audit,
 business changing significantly influenced by international business
decisions affecting human resource management, and
 an urge on the part of human resource management professionals towards
advancement of the practices and systems.

HUMAN RESOURCE INFORMATION SYSTEM(HRIS)

An HRIS, the abbreviation for Human Resources Information System, is a system

that lets you keep track of all your employees and information about them. It is
usually done in a database or, more often, in a series of inter-related databases.

HRIS systems include the employee name and contact information and all or some
of the following:

1. department,
2. job title,
3. grade,
4. salary,
5. salary history,
6. position history,
7. supervisor,
8. training completed,
9. special qualifications,
10. ethnicity,
11. date of birth,
12. disabilities,
13. veterans status,
14. visa status,
15. benefits selected,

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A human resource Information system can be as large or as small as is necessary

and may contain one or two modules or upto twenty or so. Hundreds of HRIS
software packages are being marketed for both mainframe and microcomputers. A
great many decisions need to be made in the course of adopting and implementing
an HRIS. The specific needs of the organization should dictate the type of human
resource Information system chosen. Any project as potentially expensive,
complex, and time consuming as the addition or upgrading of an HRIS requires
careful analysis and planning.

In adopting a HRIS following issues need to be addressed:

 Careful need assessment

 What type and size of HRIS should be adopted
 Whether to develop software or buy and use off the shelf software
 Should the HRIS be implemented in total or in stages.

A computerized HRIS is an information system that makes use of computer and

monitors control and influences the movement of human being from the time they
indicate their intention to join an organization till they separate from it after
joining . It consists of the following sub-system.

 Recruitment Information: It includes the placement data bank

advertisement module, general requirement and training requirement data.
 Personnel Information: It includes employee information such as transfer
monitoring and increment and promotion details.
 Manpower Planning Information: It seeks to provide information that
could assist human resource mobilization, career planning, succession
planning and input for skill development.
 Training Information: It provides information for designing course
material, arrange for need base training and cost analysis of training etc.
 Health Information System: This subsystem provides information for
maintenance of health related activities of the employees.
 Appraisal Information: It deals with the performance appraisal and merit
rating information which serves as input for promotion, increment and
secession and career planning etc.
 Payroll System: It consists of information concerning wages, salaries
incentives, allowance, perquisite deduction for provident fund etc. Data on
compensation pattern of competitor is also included in it.
 Personnel Statistics System: It is a bank of historic and current data used
for various type of analyst.

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CONCEPT OF HUMAN RESOURCE ACCOUNTING

Human Resource Accounting (HRA) is a new branch of accounting. It is based on

the traditional concept that all expenditure of human capital formation is treated
as a charge against the revenue of the period as it does not create any physical
asset. But now a day this concept has changed and the cost incurred on any asset
(as human resources) should be capitalized as it yields benefits measurable in
monetary terms.

Human Resource Accounting means accounting for people as the organisational

resources. It is the measurement of the cost and value of people to organisations.
It involves measuring costs incurred by private firms and public sectors to recruit,
select, hire, train and develop employees and judge their economic value to the
organisation.

HRA is the art of valuing, recording and presenting systematically the work of
human resources in the books of accounts of an organisation. Thus, it is primarily
an information system, which informs the management about the changes that are
taking place in the human resource of an organisation.

DEFINITIONS

“Human Resource Accounting is the process of identifying and measuring data

about human resources and communicating this information to interested
parties.”
- American Accounting Society Committee on HRA

“Human Resource Accounting is an attempt to identify and report investments

made in human resources of an organisation that are presently not accounted for
in conventional accounting practice. Basically it is an information system that tells
the management what changes over time are occurring to the human resource in
the business.”
- Woodruff

“A term used to describe a variety of proposals that seek to report and emphasize
the importance of human resources – knowledgeable, trained and loyal employees
in a company earning process and total assets.”

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- Davidson and Roman L Weel

“Human resource accounting is the measurement of the cost and value of the
people for the organisation.”
- Eric Flamholtz of university of California, Los Angeles

Objectives of HR Accounting

The objective of HRA is not merely the recognition of the value of all resources
used by the organisation, but it also includes the management of human resource
which will ultimately enhance the quantity and quality of goods and services. The
main objectives of HR Accounting system are as follows:

1. To furnish cost value information for making proper and effective

management decisions about acquiring, allocating, developing and
maintaining human resources in order to achieve cost effective
organisational objectives.
2. To monitor effectively the use of human resources by the management.
3. To have an analysis of the human assets i.e. whether such assets are
conserved, depleted or appreciated.
4. To aid in the development of management principles. and proper decision
making for the future by classifying financial consequences of various
practices.
5. In all, it facilitates valuation of human resources recording the valuation in
the books of account and disclosure of the information in the financial
statement.
6. It helps the organisation in decision making in the following areas:

Direct Recruitment vs. promotion, transfer vs. retention, retrenchment vs.

retention, impact on budgetary controls of human relations and organisational
behaviour, decision on reallocation of plants closing down existing units and
developing overseas subsidiaries etc.

Business process re-engineering (BPR) is a business management strategy,

originally pioneered in the early 1990s, focusing on the analysis and design
of workflows and business processes within an organization. BPR aimed to
help organizations fundamentally rethink how they do their work in order to
dramatically improve customer service, cut operational costs, and become world-
class competitors.[1] In the mid-1990s, as many as 60% of the Fortune

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500 companies claimed to either have initiated reengineering efforts, or to have
plans to do so.
BPR seeks to help companies radically restructure their organizations by focusing
on the ground-up design of their business processes. According to Davenport
(1990) a business process is a set of logically related tasks performed to achieve a
defined business outcome. Re-engineering emphasized a holistic focus on business
objectives and how processes related to them, encouraging full-scale recreation of
processes rather than iterative optimization of sub-processes.
Business process reengineering is also known as business process
redesign, business transformation, or business process change management.

Factors that are important to BPR success include:

1. BPR team composition.

2. Business needs analysis.
3. Adequate IT infrastructure.
4. Effective [change management].
5. Ongoing continuous improvement

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Talent Management – issues and Challenges
The scenario is worse even in developing economies of south East Asia. Countries
like U.S and many European countries have their own set of problems. The
problem is of aging populations resulting in talent gaps at the top. The developing
countries of south East Asia are a young population but quality of education
system as a whole breeds a lot of talent problems. They possess plenty of laborers
- skilled and unskilled and a huge man force of educated unemployable
professionals. These are the opportunities and challenges that the talent
management in organizations has to face today - dealing with demographic talent
problems.

It faces the following opportunities and challenges:

 Recruiting talent
 Training and Developing talent
 Retaining talent
 Developing Leadership talent
 Creating talented ethical culture

1. Recruiting Talent

The recent economic downturn saw job cuts globally. Those who were most
important to organizations in their understanding were retained, other were
sacked. Similarly huge shuffles happened at the top leadership positions.
They were seen as crisis managers unlike those who were deemed
responsible for throwing organizations into troubled waters. It is the
jurisdiction of talent management to get such people on onboard, who are
enterprising but ensure that an organization does not suffer for the same.

2. Training and Developing Talent

The downturn also opened the eyes of organizations to newer models of

employment - part time or temporary workers. This is a new challenge to
talent management, training and developing people who work on a
contractual or project basis. What’s more big a challenge is increasing the
stake of these people in their work.

3. Retaining Talent

While organizations focus on reducing employee overheads and sacking

those who are unessential in the shorter run, it also spreads a wave of de
motivation among those who are retained. An uncertainty about the firing
axe looms in their mind. It is essential to maintain a psychological contract

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with employees those who have been fired as well as those who have been
retained. Investing on people development in crisis is the best thing an
organization can do to retain its top talent.

4. Developing Leadership Talent

Leadership in action means an ability to take out of crisis situation, extract

certainty out of uncertainty, set goals and driving change to ensure that the
momentum is not lost. Identifying people from within the organization who
should be invested upon is a critical talent management challenge.

5. Creating Talented Ethical Culture

Setting standards for ethical behavior, increasing transparency, reducing

complexities and developing a culture of reward and appreciation are still
more challenges and opportunities for talent management.

Some other issues and challenges

6.Talent war

7. Technology and talent management

8.Promoting talent internally

9.population worries globally

10.Talent management to rescue HR

11.Increase in employer of choice initiatives

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