Jet Blue Recruitment Efforts - Essay Example

JETBLUE CASE STUDY Low-cost airlines are one of the components of the U.S. tourism industry, which entered the market in 1978 and are now popular as no- frills, discount and budget carrier which typically offer low fares in exchange for eliminating all other traditional services (Baker, 2013). However, to remain competitive, these services should provide good quality to their customers through collaborative efforts of employees, management and all other stakeholders. In fact, customers’ satisfaction depends greatly on the interaction between them and employees; hence, it is worth mentioning about the vital role of employees within low-cost services. In this case, it is necessary to analyze human resource strategies, policies and practices directed toward the provision of best services within the airline industry. The following paper will examine and make an analysis of resource strategies, policies, and practices and their relation to one of the well-known low-cost U.S. carriers, JetBlue Airways. In terms of hiring practices, JetBlue follows the Equal Employment Opportunities laws through its Corporation Affirmative Action Policy, which impedes any ways of discrimination and harassment against any candidate, employee, suppliers, and customer. As one of the key company’s values, Caring and Integrity in following EEO rules is doubtless (O’reill & Hoffer Gittell, 2001). According to the Corporation Code of Conduct (2014), JetBlue respects individuals in a non-discriminatory manner and without regard on race, gender identity, sexual orientation and religion, age, citizenship, disabilities and such status as veteran. These are all the regulations of the company based on such laws as Age Discrimination in Employment Act of 1967, Americans with Disabilities and Rehabilitation Act of 2008 and Fair Labor Standards Act of 1958 (EEO Laws, n.d.). Recruitment efforts The process of recruitment should be aimed to not only filling with certain organizational gaps, but be focused on searching for specific skills and experiences of people to build an organization. The recruitment process at JetBlue, according to O’reilly and Hoffer Gittell (2001), is the most important thing as it means to search for those who would fit company values. For internal sources, employees are at the highest concern within the company, as they know the requirements of various positions and are able to take full responsibility on such knowing and desire to hold a new job. JetBlue motivates talented crewmembers in different ways, developing its reputation for special treating of employees and offering them great work environment and opportunities for growth. As mentioned by Gusdorf (2008), job posting is the most widely used method to find an appropriate candidate within an organization. Job posting informs employees about the job opening. Other managers consider that employees’ referrals are the best methods to find top performers and some organizations even provide a bonus to the employee who recommended such expert. As to the external recruitment, placement agencies have become a strong source for company’s ability to find the right person. According to Florea (2014), an agency is good method in searching people for those positions, whose accurate descriptions were specified and job specifications were provided by the company-seeker. Agencies put their advertisements and later receive applicants in order to conduct the first round of interview before the particular candidate meets the employer. During such round, an applicant is tested if one meets the employer’s requirements. If an employer rejects the applicant, it should discuss with an agency the reasons and give more accurate description of whom the company seeks. In this case, JetBlue is very picky (Dodds, 2007). Applicants should be people that are aware in company’s values of safety, caring, integrity, fun, and passion. It also offers customized employment packages tailored to the jobs, pay and benefits packages. Moreover, there is no probationary period for new employees and benefits include medical benefits, personal time instead of conventional holidays and double pay for employees who work on holidays. As the company expects sustained growth of the business, there will be a need to attract more talented people. Thus, it is important for JetBlue to show its high concern and care about employees, and respect to the candidates and applicants. Internal recruitment methods are called to improve morale among the existing employees and promote loyalty among them as they feel secured by how the company treats them. For applicants from outside, the company offers many favorable opportunities for personal and professional growth. Personnel selection In selecting people to particular positions, companies may utilize several personnel selection practices, such as interviews, ability and personality tests. Thus, according to Ployhart (2011), situation judgment tests enable a company to see applicant’s ability to react on potential work-related situation. While respondents are provided with the few behavioral choices for solving the issue or problematic situation, an HR representative is capable to understand which option will be most or least effective in real-life use. During the process of selection, applicants can be tested through assessment center, where multiple competencies will be measured. The company’s major values are reflected in the way it selects people. It takes values as a guide identifying potential employees for the job. As safety is among the first values that the company follows, it takes all necessary activities to ensure its customers to feel safe flights. Mechanics are among those employees who are able to provide best services before other crewmembers will use them. In practice, the process of choosing the right applicant for mechanic position means that a person should be responsible and does not have to agree to any certifications without complete work compliance, despite possible pressure from the management. In the recruitment process of pilots, the company seeks for a person to be as knowledgeable in computers as attentive to details and would fit the overall company culture. There are several goals that the company follows utilizing the personal interview process for mechanics and pilots. As stated (O’reilly & Hoffer Gittell, 2001), the company strives to find the most suitable person for the positions. Hence, personal interview enables JetBlue management to find the perfect fit using a questioning method. The other reason to make these personal interviews is that not only a company needs the best employee, but the person should also realize the whole importance of the chosen position and why certain work fits the one. This will enable a person to stay longer within the company and JetBlue to have the best employee. Factors that influence a performance appraisal system To increase employees’ productivity, companies choose performance appraisal system to improve service delivery, accountability, communication and efficiency among staff. However, there are numerous factors that influence performance appraisal system, among which are factors connected to the kind of treatment employees receive from employer (Daoanis, 2012). Thus, the performance appraisal process is influenced by the lack training opportunities for employees. Another factor that impacts employees’ appraisal is the relationship between staff members. The bigger part of performance appraisals do not encourage cooperation within the work team and what is more, an unpleasant relationship arises between people after the appraisal process. In addition, lack of proper monitoring necessary for employee performance appraisal leads to more number of faults of employees and increases dissatisfaction with the appraisal results (Mwirigi & Namusonge, n.d.). Moreover, there is an impact on employee appraisal if there is a lack of a clear policy guide on rewards management. Employees’ commitment within JetBlue would be lower if the company and HR division, in particular, would not conduct an orientation program where important for the company things would be described. These things are the level of productiveness, ability to ensure safety and customer-centric vision of any employee of JetBlue. Another factor that impacts performance appraisal system is employee skills. To JetBlue, these skills are not connected with employees’ previous experience, but with an ability to follow company values and to live them. The motivation of employees is what impacts the performance appraisal system. The staff is expected to be recognized for their work and rewarded. In JetBlue, such motivation is the customized employment package, which means special treatment for every employee based on the job, pay and benefits package. Among the considerable advantages of JetBlue HR policies, there is a customized pay and benefits package that exceed the industry standard. In addition, the company offers distinct job options in particular for flight attendants designed to balance work and life responsibilities. Customer service and ramp workers are paid additionally one dollar more per hour, while pilots, technicians and dispatchers got stock options. The effective way to impact performance appraisal system is to enable people to leave feedback about their working conditions. Thus, at JetBlue flight attendants were asked about the stock options and most of them were satisfied. 360-degree feedback evaluation As an alternative to traditional appraisal system, a 360- degree feedback system enables an organization to improve the process by enlarging the information. This method is highly effective to evaluate organizational performance. According to Fleenor and Prince (1997), 360-degree assessment enables organization to look at individuals’ skills and behaviors, as well as abilities and performance from the other perspective. Another positive aspect of the 360-degree feedback is its ability to mitigate gaps of top-down assessment. The 360- degree feedback gives an opportunity to assess individuals in a way of self-evaluation, job satisfaction, and organizational effectiveness. Another advantage of using 360-degree feedback evaluation is that the assessment can be used to better understand organizational values. For JetBlue, it is important to stay cost-effective service with customer-centric vision and productive working employees. In terms of keeping the company feeling of small one, the method of 360-degree feedback makes it more possible for employees to effectively deliver services and meet the goals of a company. Utilizing 360-degree feedback, behaviors within an organization can be improved and corrected, while employees can still feel themselves as a part of a company. In addition, the method of 360-degree feedback assists in the individual development and enables people to make decisions. Thus, to assist crew leaders appreciate the effects of their differences and recognize other team members’ contribution the 360-degree feedback is used. Called “320-degree” process within the company (O’reilly & Hoffer Gittell, 2001), the dimensions of this model reflect the company’s core values. Employee-related factors essential in determining financial compensation Companies should understand that different pay factors influence financial compensation practices. Employee pay factors include job performance, skills and competency based pay, seniority, and experience. It is established (Compensation and rewards, 2015), that job performance is the main factor that impacts the company’s expense regarding employees’ pay. There is a consideration that though such employee-related factor as job performance creates certain expense for an employer, it also increases the chances for a company to receive the same benefit from the well performed job of employee, thus bonuses can be even offered. Another factor, in particular, skills, knowledge, abilities and employee competencies influence financial compensation. Thus, knowledge refers to the certain requirements and practices connected to the particular job; some job positions require particular skills and abilities for work completion. The determinant of competency influences company’s ability to pay as well. Professional experience and education are also among the elements that influence pay. In addition, seniority determines pay in relation to staff. In the modern companies, such seniority means that depending on a number of years a person works for a company, the more pay one expects and the company determines. Discretionary employee benefits Among the most adopted benefits that companies offer to its employees, there are also such benefits not required by the law, however, can be provided by the employer. The possibilities of such benefits are endless and of many types, such as protection programs, paid time-off and accommodation and other improvements for employees. Thus, disability insurance, life insurance and retirement plan refer to discretionary employees’ benefits, which companies offer in order to attract more talented staff and be able to retain them as long as it is possible (Martocchio, 2011). If a company provides its employees with the disability insurance, in case of need, it replaces employees’ income. Moreover, it is sponsored by an employer and is more encompassing than compensation as it refers to all work and non-work illnesses and injuries. A retirement plan is sometimes referred to the pension plan and gives an individual income and beneficiaries during the whole time of retirement. Other disability programs with health protection and health insurance cover the costs of the numerous services and help to promote employees health and work within a certain company for a bigger amount of time. Due to the globalization of modern businesses, many specialists come from abroad; hence, companies can provide such benefits as the accommodation to promote more opportunities for employees and their families. Such opportunity ensures mental and physical well-being of people working for certain company and along with the family assistance programs creates all prerequisites for employee’s desire to work for the company longer. As stated on the JetBlue official website (Benefits, 2015), the company incorporates such discretionary employee benefits as life insurance, short-term and long-term disability insurance, disease management programs, health risk assessment and pilot loss of license. Its medical coverage provides more affords to health care for company’s employees in the way of visiting a doctor and receiving prescriptions. Another type discretionary benefits is the financial compensation, which offers part-time employees a dollar more, medical, 401k and profit sharing plans. Creating a friendly relationship with its employees, the company offers discounts standby travel on their airlines and reduced rate standby travel on JetBlue flights. There are one-year employment contracts made for college students with the medical insurance and $500 per month of additional pay to help employees to live in Manhattan. References Baker, D., (2013). 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JetBlue Airways: service quality as a competitive advantage, Journal of Business Case Studies, Vol.3, No.4 EEO Laws, (n.d.). National archives and Records Administration, Retrieved from http://www.archives.gov/eeo/laws/ Fleenor, J. and Prince, J., (1997). Using 360-degree feedback in organizations, Center for creative leadership, Retrieved from http://www.ccl.org/leadership/pdf/research/Using360Feedback.pdf Florea, N., (2014). Using recruitment agencies to obtain the best candidates, Management of economics, 1(73) Gusdorf, M., (2008). Recruitment and Selection: Hiring the Right Person A two-part learning module for undergraduate students, Society for Human Resource Management, Retrieved from http://www.shrm.org/education/hreducation/documents/recruitment%20and%20selection%20im.pdf JetBlue Airways Corporation Code of Business Conduct, (2014). The official website for JetBlue Airways Martocchio, J., (2011). 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