RECRUITMENT AND SELECTION Zunaira Saqib

NBS

AGENDA OF THE WEEK

• Discuss Course Outlines

• Any Improvements / Amendments in the Course or Evaluation Criteria

• Introduction to Recruitment and Selection

HUMAN RESOURCE MANAGEMENT

• Human Resource Management

• Recruitment and Selection

• Compensation

• Training and Development

• Performance Appraisals

• Retention

• Downsizing / Firing

RECRUITMENT AND SELECTION: WHAT IS IT?

• Recruitment can be defined as searching for and obtaining a pool of potential candidates with the desired knowledge, skills and experience to allow an organisation to….

• Select the most appropriate people to fill job vacancies against defined position descriptions and specifications.

R & S MODEL

R & S Model

Intro, Needs & Costs

Job Analysis

Advertisement and Shortlisting

Resume, CV, Cover Letter

Personality and Subject Based Tests

Work Sampling and Assessment Centers

Interviews

Other ways of recruitment

Orientation

Hire the wrong person for the job: Experience high turnover (PTCL)

• Hire the wrong person for the job: Experience unethical practices: Kweku Adoboli, £1.4 billion, Swiss bank UBS’ Global Synthetic Equities Trading team in London

Waste time with useless interviews (Gvt Dep in Open Houses)

Have your firm in court because of discriminatory actions (British airways case)

Have some employees think their salaries are unfair and inequitable relative to others in the organization (women vs. men salaries)

R & S RIGHT PRACTICES, WHAT DIFFERENCE IT MAKE?

MICROSOFT

• Total Market Value

• $412 Billion

• Total Value of all Physical Assets (buildings, equipment, and furniture)

• $24 Billion

• Where is the extra $388 Billion coming from?

• Intangible Assets

• Brand Names

• Intellectual Capital

• Patents

• Human Resource

A LOOK AT PAKISTAN LABOR MARKET

• 2013 Statistics according to Pakistan Bureau of Statistics

• Labour force participation rate• 53.1% Both

• 81.1% Male

• 24.1% Female

THE PROBLEMS/CHALLENGES OF R AND S

• Getting the JOB Requirements right

• Getting the right person

• Attracting the best talent – always

• Saving Costs

• Avoid Turnover

• Avoiding Legal Issues

THE CHALLENGES OF R & S IN PAKISTAN

•Equal Opportunity

•Location Based Problems (War, Terrorism, Culture)

•Globalization

•Changing work and changing workforce

1. App Developer

2. Data Miners

3. Admission Consultants

4. Generational Expert (Age Gaps)

5. Chief Listening Officer (Twitter , Facebook, Youtube)

http://www.forbes.com/sites/meghancasserly/2012/05/11/10-jobs-that-didnt-exist-10-years-ago/3/

5 JOBS THAT DID NOT EXIST 10 YEARS AGO

5 EDUCATION CHOICES THAT WERE NOT VERY POPULAR 10 YEARS AGO

PAKISTAN SERVICES SECTOR

• Increased from 39 percent of GDP in 1960-61 to 53.3 percent of GDP in 2009-10

• Largest contributor in the GDP of Pakistan

• Transport

• Storage

• Communications

• Wholesale, Retail Trade and Hotels and Restaurants

• Financial Institution

• Entertainment and Recreation

WORKFORCE AND DEMOGRAPHIC TRENDS

Demographic Trends

Generation “Y”

Retirees

Nontraditional Workers

Trends Affecting

Human Resources

• Baby boomers , born between 1946 and 1964

• Generation X, born 1965 to 1977

• Gen Y , born 1978 to 1994

WHAT DOES THE WORKFORCE LOOK LIKE TODAY?

TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016

TOP 10 COUNTRIES BY LABOR FORCE

• Half the population below 20 years

• 60 percent below 30 years

• Workforce growing at a faster rate than total population

• Youth literacy is about 70%

Source: http://www.defence.pk/forums/economy-development/137335-pakistans-opportunity-reap-demographic-dividend.html#ixzz2KCd8abFC

• The Finances Matter… Specially after Financial Crunch

• Human resource accounting

• Measuring an quantifying the qualitative data of Human Resource of your organization

THE COSTS OF R & S

• Can you Value an Employee – Put a Figure against it? HOW?

• Expenses• Recruitment Cost

• Salary

• Benefits

• Training + Expense during stay in office

• Value• Productivity

• What is it?

• Employees from other industries information technology employees, accountants, graphic artists, human resources personnel and other knowledge workers, the calculation is more difficult because the productivity of these employees cannot be given a specific, accurate number. Arbitrary productivity values must be assigned to each such employee.

THE COSTS OF R & S

THE COSTS OF R & S

• Replacements Costs

• Measures only the cost of replacing the employee.

• Replacement Costs Include• Recruitment

• Selection

• Compensation

• Training cost (income forgone during the training period)

• Cost of an Employee’s Annual Salary THE COSTS OF R & S

• Measuring HR Performance• Metrics

• A set of quantitative performance measures that HR managers use to assess their operations

• E.g. of HR Metrics

• Absence Rate[(Number of days absent in month) ÷(number of employees during mo.) ×(number of workdays)] × 100

THE COSTS OF R & S

• Metrics

• Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷Number of Hires

THE COSTS OF R & S

• Metrics

• Turnover Rate

Number of separations during the month / average number of employees during month * 100

THE COSTS OF R & S

Health Care Costs per Employee Total cost of health care ÷ Total Employees

HR Expense Factor

HR expense ÷ Total operating expense

Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T.

Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–

20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,

Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce

Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.

THE COSTS OF R & S