Employee Resourcing - Essay Example

EMPLOYEE RESOURCING Introduction Employee resourcing is an important function undertaken by organizations to ensure that they obtain and retain the human capital that they need, for productive employment. This includes aspects of employment practice that relate to welcoming people to the organization, and releasing them if it is necessary to do so. Employee resourcing is a key part of human resource management which "matches human resources to the strategic and operational needs of the organization" (Armstrong, 2003: 347), and ensures the complete utilization of those resources. Its main focus is on selecting and promoting people who fit the culture and the strategic requirements of the organization. Recruitment is the process by which candidates are located and attracted for employment in an organization. The necessary effort and extent of the search is based on the selection rate and the qualifications and skill sets needed for job competence. Companies usually attempt to attract large numbers of candidates, depending on the job and purpose of the recruitment effort. Further, they aim to fill vacancies quickly, select people who will perform well, and hire people who will give sustained and long-term service to the organization (Stahl, 2003: 163). The purpose of this paper is to examine the processes of employee resourcing which include attracting job applicants, recruiting candidates and selecting employees for the workforce; and to discuss the significance of employee resourcing as an important function of the human resource management activities carried out by organizations. Discussion Employee resourcing is conducted in order to meet different organizational objectives relating to staffing, performance, administration and change management. The key factors in resourcing practices are effectiveness, efficiency and fairness in the process and outcomes obtained. Human resource personnel add value to the organization through the employee resourcing function, by supporting the achievement of organizational objectives, championing the cause of effective people management and raising the quality of administration. The major constraints that resourcing personnel need to negotiate are from the labour market, employment legislation, trade unions and employee attitudes (Taylor, 2002: 17). Approaches to Employee Resourcing There are three paradigms or frames of reference that managers can use when undertaking employee resourcing functions. According to the Chartered Institute of Personnel and Development (CIPD), each paradigm may be suitable for a particular situation. The traditional paradigm represents established best practice in employee resourcing activities. The contingency-based paradigm accepts that different approaches to employee resourcing should be used for different types of situations. The new paradigm advocates innovation in the use of employee resourcing strategies according to the situation and needs that arise (Taylor, 2002: 16). As compared to traditional personnel management, human resource management (HRM) emphasizes more on finding people whose attitudes and behaviour are aligned with what management believes to be appropriate and contributive to productivity in the organization's working environment. The HRM approach to employee resourcing believes that matching resources to organizational requirements does not simply mean maintaining or ensuring the continuation of the existing conditions; on the other hand, it "promotes radical changes in thinking about the competencies required in the future to achieve sustainable growth and to achieve cultural change" (Armstrong, 2003: 347). The two fundamental questions addressed by HRM resourcing policies are: 1) What kind of people do we need to compete effectively both now and in the future' 2) What do we have to do to attract, develop and keep these people' Attracting Job Applicants and Recruiting Candidates Increased Use of Inside Recruitment Sources: Inside recruitment sources provide valuable information about the job that only insiders can provide. It is found by investigators that people who hear about a job from an inside source are less likely to leave the job, since they have increased understanding about what to expect from the employment. Offering current workers incentives such as bonuses for recruiting newcomers can promote inside recruiting. Other internal recruitment strategies are, when the organization invites former employees to rejoin; and solicits referrals from former and current workers, their families and from consumers. "These internal strategies are more effective than outside sources such as newspaper advertisements, employment agencies and job boards" (Schalock et al, 2002: 212). However, the above strategies are effective when recruiting at lower levels; for upper management positions a different method may be employed. Companies employ a managerial succession plan where managers' education, skills, experience and location preferences are computerized. This helps to produce a list of qualified candidates to be considered for new opportunities in the organization. External Recruitment: Although internal recruiting has the advantages of working with individuals with known skills and abilities, and have an already existing relationship with the organization, there are certain positive outcomes in using external recruiting such as bringing in individuals with new ideas and perspectives. Moreover, external recruiting may help organizations to face rapid turnover of employees without overusing inexperienced personnel who may not have the capabilities required for advanced positions. External recruiting processes are carried out generally as a separate human resources function. There are several sources for external recruitment such as "advertisements, employment agencies, college recruitment and walk-ins" (Stahl, 2003: 164). The choice of source depends on organizational goals such as decreasing turnover or the requirement for hiring several employees within a short time. Also, the demographic mix of individuals sought will determine whether a trade journal is used when advertising for a position, or the newspaper is the more suitable choice. Agency Marketing: It is crucial for the organization to build a community presence. Some agencies have "developed business cards or brochures to increase the visibility of job opportunities and increase the number of applicants" (Schalock et al, 2002: 212). In order to attract potential employees, these materials are placed at state and local workforce centers, schools and other public places. Further, current employees are encouraged to distribute cards and brochures to their acquaintances and friends who may be interested in the job opportunity. Some organizations use a website as a recruitment tool to give information about their distinctive employment and service details. Use of Structured Interviews: Developing an effective team is a crucial challenge for human resource management personnel. Selecting a work team is accomplished most effectively if a planned, structured, interview process is used when screening applicants. Strucured interviews consist of a consistent set of prepared questions which are based on important job behaviours relating to the applicant as a potential employee of the organization, and his work competency. The questions are designed to identify inadequate work capabilities on the part of the employee and to distinguish clearly between the desired and inadequate work performances. Applicants' answers are evaluated with a predetermined scoring guide (Schalock et al, 2002: 213). Realistic Job Previews: It is found that there are increased retention rates of employees in organizations that hold a systematic, realistic job preview for new hires. Before accepting employment employees develop a realistic work impression; this leads to increased personal satisfaction in the work and consequent job loyalty. The applicant is enabled to make an informed decision based on consistent, non-distorted, job and organizational information. To rule out unrealistic expectations, tenured as well as new employees can be asked to contribute information on positive and negative work characteristics. In order to ensure appropriate selection of candidates, and to avoid any "people problem" it is suggested by Ryan & Tippins (2004: 305), that the human resources department should make the processes of attracting job applicants, recruitment and hiring to be of the highest quality. Identifying future best performers for the business environment, and weeding out those who may not be suitable, help to attract and select a more diverse workforce. For best results, the organizational requires that these goals have to be accomplished quickly and in a cost-effective manner. HR professionals are called upon to formulate new strategies for attracting job applicants, new instruments for selection, and new ways to enhance workforce diversity. This has to take place concurrently with incorporation of the sometimes competing needs and views of varied stakeholders such as the hiring managers, the applicants, the legal department, recruiters, labour unions, and other groups. For the purpose of meeting staffing and recruiting challenges, there is an extensive body of research to guide HR professionals regarding which strategies work, and which do not. Research-based evidence is useful in the areas of what selection tools work, what recruitment strategies work, how selection-tool use can help promote workforce diversity, and what staffing and recruiting processes lead to positive applicant perceptions. However, since the world of psychological research takes time to master, Ryan & Tippins (2004: 316) recommend that human resource managers should hire the services of a professional industrial and organizational psychologist who is an expert in recruiting and selection research, to help in translating research into effective practice. It is important that the psychologist should be selected on the basis of one who can explain research, understand the specific organization's requirement, and has experience in real world settings. Further, it is essential that the HR personnel should educate themselves and critically evalute the decisions of the professional psychologist. Keeping up with latest developments in the fields of recruitment and selection, from various sources such as current literature on the topics, lectures and classes; and thinking critically on the information obtained are crucial for staying current with the advances in the world of employee resourcing. Also, systematically collecting data and evaluating efforts made towards resourcing are essential. There is room for misconceptions to occur because of mistaken beliefs about recruitment and selection. Accurate information and data collection are essential for understanding the processes and outcomes, and "making correct interpretations of the facts and careful evaluations" (Ryan & Tippins, 2004: 316). Since data collection is a difficult process in many organizations, the process can be simplified by new technology for obtaining extensive information with little effort on the part of human resource personnel. The Six Distinct Stages in the Recruitment Process Needs Identification: The need to recruit may arise in two ways: either a vacancy is created by an internal transfer or promotion, or by the termination of an employee's job, either voluntarily or compulsorily. Otherwise, there may be a need for a person to take responsibility for a number of related tasks (Secord, 2003: 351). Identification of Key Skills: These are knowledge and attributes that are desirable or necessary to perform the role. An important part of the process is the development of an outline defining the job specifications and behaviours necessary for success in the particular position. The individual has to match all the requirements for the job as well as fit in with the organization's culture (Secord, 2003: 351). Targeting Candidates: Possible candidates can be identified by a number of methods: internal advertising and job postings, succession plans, external advertising, targeted executive searches, recruiting agencies and internet postings. Internal advertising is found to be the most frequently used method, providing opportunities for employees within the organization to broaden their skills. Also, by indicating the availability of internal opportunities, procedural equity is ensured, in the recruiting process. Selection: Using a planned process normally consisting of shortlisting, interviewing and formal assessment, the most suitable candidates are selected. Key skills, knowledge and required attributes should form a part of the selection process. The selection process should be seen as valid and fair when both internal and external candidates are competing for the same jobs (Secord, 2003: 351). The Hiring Decision: The decision should reflect the integrity of the process, and "professionally obtained data should be used to best effect, although it is often a neglected part of the process" (Secord, 2003: 351). The decision should be taken after using a structured process in which the last few candidates selected finally, should be assessed against the range of key skills and attributes necessary for the job. Orientation/ Induction and Follow-Up: This includes a process of introducing and integrating an individual to an organization. To provide information about standard practices, introducing individuals to their broader work contexts will help to ensure their motivation. Further, following up with successful candidates is useful in identifying the aspects of the recruiting process which may be related to success or failure, though generalization should be avoided (Secord, 2003: 351). The main purpose of the recruitment process is to identify the best qualified person for a job, and ensure that they carry out the designed set of tasks appropriately. Integrating Resourcing Strategies With Business Requirements The HRM approach to resourcing is based on the philosophy that it is people who implement the strategic plan, and the process of resourcing is one of "planning with people in mind" (Armstrong, 2003: 348). The integration of business and resourcing strategies is developed on the framework of the distinctive human resource needs arisng from the direction in which the organization is going. The employee resourcing strategies are based on the following factors: the number of employees required in terms of projected activity levels; skills required on the basis of technological and product/ market developments, and strategies to enhance quality or reduce costs; organizational restructuring outcomes arising from rationalization, decentralization, delayering, mergers, product or market development, or the introduction of new technology such as cellular manufacturing. Further, an agenda of implementing cultural changes in the organization, in such areas as ability to deliver, performance standards, quality, customer service, team working and flexibility, which require people with different attitudes, beliefs and personal characteristics (Armstrong, 2003: 348). These factors will be intensively impacted by the type of business being carried out and the strategies adopted by the organization. To support and promote the business strategy of the organization, resourcing strategies provide the people and skills required, who are also required to contribute to the formulation of that strategy. Human resource directors are obligated to identify and indicate to their colleagues the human resource opportunities and constraints that will affect the achievement of strategic plans. In mergers or acquisitions for example, important considerations will be the capability of the company's management to handle the new situation and the quality of management in the new integrated business environment (Armstrong, 2003: 349). The planning of employee resourcing involves various factors such as the theory and practical implications of human capital, human resource planning, talent management, recruitment, selection interviewing, selection testing, introduction to the organization and also release from the organization (Armstrong, 2003: 349). On the basis of meta-analytic findings, Schmidt & Hunter (1998: 262) present the validity of nineteen selection procedures for predicting job performance, training performance, validity of paired combinations of general mental ability (GMA), and eighteen other selection procedures. On the whole, the three combinations with the highest multivariate validity and utility for job performance evaluation were GMA along with a work sample test, GMA with an integrity test and GMA with a structured interview. The latter two combinations are additionally useful because they can be used for both entry level selection and selection of experienced employees. These findings are of practical utility for the function of employee resourcing. In recent years researchers have used the predictive findings to create theories of job performance and to test them. These theories help to understand human competence in the workplace. In economic terms, there can be substantial financial gain from increasing the validity of hiring methods. Hence companies would do well to use high validity selection methods for promoting organizational progress and profits. Global Employee Resourcing Managing talent is the most challenging issue that employers in Europe are contending with, in leading organizational progress. HR professionals in the United Kingdom include managing globalization and improving leadership development as high priority issues in the coming years. In the contemporary global world, there are many resourcing challenges that employers need to deal with. Today companies are increasingly sourcing and deploying talent on a global basis. The issues that drive international recruitment include skills shortages, the initiatives that organizations are undertaking to make workplaces more diverse, and to capitalize on the different skills, behaviours and competencies that form part of the new global environment. According to Wilson (2008: 5), Since companies require to respond rapidly to resourcing issues in different parts of the world, the selection and correct assignment procedures may be overlooked. The consequences will be greatly damaging for organizations especially in the sphere of cultural issues, and financial and legal matters such as tax compliance. When resourcing of employees is carried out after planning, "the competencies based on adaptibility, emotional stability, resilience, self motivation and orientation to change", that employees capable of working successfully across borders are required to have, can be determined in the selection process (Wilson, 2008: 8-9). Conclusion This paper has highlighted the human resources management function of employee resourcing. The main features of employee resourcing were identified as attracting and recruiting job applicants, and selecting employees based on the suitability of their skill sets and knowledge for the job, and their level of "fit" in the organizational culture. The various approaches to employee resourcing, the six different stages in the recruitment process, the importance of integrating resourcing strategies with business requirements, and the increasing need for global employee resourcing have been evaluated and discussed. It is evident that employee resourcing forms a crucial function of organizational operations for ensuring an appriopriately qualified and skilled workforce, and it is expanding extensively in scope to meet global resourcing needs. References Armstrong, M. 2003. A handbook of human resource management practice. The United Kingdom: Kogan Page. Ryan, A.M. & Tippins, N.T. 2004. Attracting and selecting: what psychological research tells us. Human Resource Management, 43 (4): 305-318. Secord, H. 2003. Implementin best practices in human resources management. The United States of America: CCH Canadian Ltd. Schalock, R.L., Baker, P.C. & Croser, M.D. 2002. Embarking on a new century. The United States of America: AAMR Publications. Schmidt, F.L. & Hunter, J.E. 1998. The validity and utility of selection methods in personnel psychology: practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124 (2): 262-274. Stahl, M.J. 2003. Encyclopedia of Health Care Management. London: Sage. Taylor, S. 2002. People resourcing. The United Kingdom: Chartered Institute of Personnel Development Publications. Wilson, F. 2008. Meeting the challenges of global resourcing. Strategic HR Review, 7 (2): 5-10. Read More