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RECRUITING AND RETAINING TALENT
p r e p a r e d f o r t h e c o u r s e t e a m b y
Narendra Prasad
U5
I N T R O D U C T I O N T O H U M A N R E S O U R C E
M A N A G E M E N T
Unit 5: Recruiting and retaining talent 5.2
Recruiting and Retaining
Talent
Recruiting HRRecruitment
Sources Role of Recruiters
Managing
Employee
Turnover
Managing
Employee
Retention
Definition
Recruitment
Policies
Internal Sources
Advantages and
Disadvantages
External
Sources
Behaviour of
Recruiters
Enhancing
Recruiters
Impact
HR Practices
Exit Interview
Employee Layoff
Advantages and
Disadvantages
Communication
Voluntary &
Involuntary
Turnover
Process of Job
Withdrawal
Job Satisfaction
U n i t 5 c o n c e p t m a p
This map represents the core concepts that we’ll be covering
in this unit, and examine the relationships between them.
Unit 5: Recruiting and retaining talent 5.3
Study organiser
Before you begin this unit, please check through your study organiser. It shows
the topics that we’ll be covering, the skills you need to acquire (the learning
outcomes) and the activities you’ll do to help you acquire these skills.
Unit/Topic Learning outcomes Readings & Activities
Recruiting Human
Resources
Outline the recruitment process.
Describe various
recruitment policies
organisations adopt to
make job vacancies attractive.
Reading 5.1, Chap.5 in
textbook
Activity 5.1
Recruitment Sources Identify and describe
various sources from
which job applicants can
be drawn.
Activity 5.2
Role of the Recruiter Describe the role of a
recruiter in a recruiting
process
Activity 5.3
Process of Job
Withdrawal
Discuss the relationship
between job satisfaction
and various forms of job
withdrawal.
Identify the major
sources of job
satisfaction in work
context.
Reading 5.2, Chap. 10
in the textbook
Activity 5.4
Employee Retention Identify strategies
managers could employ
to promote and retain its
key employees
Activity 5.5
It is recommended that you spend at least 12 hours on this unit.
Unit 5: Recruiting and retaining talent 5.4
Introduct ion
It is essential for the organisation to ensure that their recruitment process is
effective so that it delivers the highest calibre of employees. Recruitment serves
to create a buffer between planning (described in unit 4) and actual selection of
new employees (our topic for discussion in the next unit).
In our preceding unit we examined the significance of human resource planning
to organisations and its critical relationship to organisational overall strategies.
We took in-depth look at the actual development and implementation of a human
resource plan. We concluded the unit by scrutinising strategies management may
adopt in addressing labour surplus and shortage situations in organisation and the
consequences each of these strategies could have on the employees.
We begin this unit by outlining the process of recruitment and then describe some
recruitment policies organisations use to attract talent. We then focus our
attention to recruitment sources before describing the recruiter’s role in a
recruitment process. Towards the end of the unit we briefly describe the job
satisfaction aspect of employment and discuss its influence in retaining key
employees in organisations
You will be required to read specified parts of chapters 5 and
10 of your textbook to get an insight of concepts to be covered
in this unit.
Now read the section on ‘recruitment’ in
chapter 5 of your textbook. It gives you a
descriptive overview of policies and
processes, sources of job applicants and
the role of a recruiter in a recruitment
process
R e a d i n g 5 . 1
Unit 5: Recruiting and retaining talent 5.5
What is Recru itment?
The role of human resource recruitment is to provide a supply of potential new
recruits that organisation can draw on if the need arises. Thus, recruitment is the
process of attempting to locate and encourage potential applicants for existing or
potential job openings. It involves strategies to create a pool of appropriately
qualified and experienced people so that selection strategies can be initiated.
Recruitment must not be confused with the belief of landing a job at an
organisation. It merely involves searching and obtaining qualified applicants
for the organisation to consider when filling job openings. Recruitment stops
short of deciding which individuals should be hired from the pool of applicants.
Now take some time to reflect on the following newspaper advertisement which
appeared in one of the local dailies.
F i g u r e 5 . 1 S i t u a t i o n s V a c a n t
Trans International Hotel
Position Vacant: Sales Assistant
Duties and Responsibilities:
• Provide a positive selling approach to maximize room and rate yield at the
hotel, ensuring a timely response to all reservation enquires
• Maintain current knowledge of room types, hotel facilities and rates
packages
• In general, doing sales and marketing of the hotel and achieving sales
target
• Maximum of three years of experience is needed in a similar role.
Direct your applications to:
The Manager
Trans International Hotel
P.O.Box 11231,
Nadi Airport.
Source: The Fiji Times, 26th June, 2010: p 73
Advertisements like the one shown above appear almost daily in local
newspapers. In the above case Trans International Hotel as an employer informs
potential sales assistant applicants about the required competencies for the vacant
position. Through this advertisement potential applicants are motivated to apply
for the position open to them. Whether or not the position of sales assistant will
Unit 5: Recruiting and retaining talent 5.6
be filled by someone from within the organisation or from outside will depend
upon the HR policies of Trans International Hotel, the requirement of the job and
the availability of suitable talent within the organisation.
The importance assigned to recruitment differs among companies. In general,
however, all companies have to make decisions in three areas of recruiting:
1. Human resource policies that affect the types of job companies has on
offer
2. Recruitment sources used to solicit applicants
3. Characteristics and behaviours of the recruiter
Rec ru i t me nt a nd Hum an res o urc e p o l i c i es
Human resource policies are concerned with decisions on how it will carry out
human resource management, including how it will fill job vacancies. Several
personnel policies are especially relevant to recruitment. Each of these
recruitment policies are described below.
i ) I n t e r n a l v e r s u s E x t e r n a l R e c r u i t i n g
Most organisations try to follow a policy of filling job vacancies from internal
promotions and transfers. Promotion from within can provide current employees
with great motivational opportunity as well as a sense that they are being valued
in the organisation. This also helps in the retention of high calibre employees.
From the organisation’s perspective, recruiting from within saves training costs
since promoted staff possess a sound knowledge of organisational culture,
organisational policies, practices and processes. Limitations and advantages for
both internal and external types of recruitment will be dealt with under
Recruitment Sources.
i i ) L e a d - t h e - M a r k e t P a y S t r a t e g i e s
Pay is an important job characteristic for almost all applicants. Organisations
have a recruiting advantage if their policy is to pay more than the current market
wage. Increasingly, organisations that compete for applicants based on pay do
so using forms of pay other than wages or salary. Housing benefits, free
transport, free phone privileges, insurances schemes and free education for
children are only some schemes employers offer to attract best candidates from
the labour market.
i i i ) E m p l o y m e n t - a t - W i l l P o l i c i e s
In an employment- at- will situation, an employee is hired for an indefinite
duration in the absence of a written contract. Either party (the employer or an
employee) may end the employment relationship for any cause at any time. An
alternative to employment at will is to establish due-process policies. These
policies formally lay out the steps an employee may take to appeal an employer’s
decision to terminate that employee. In decisions about employment-at-will
policies, organisations should consider not only the legal advantages of
employment at will but also the effect of such policies on recruitment. Employees
Unit 5: Recruiting and retaining talent 5.7
nowadays prefer job security at workplace. They refrain from seeking
employment at institutions that has a bad image in employment relations
especially where employees are fired at will.
i v ) I m a g e A d v e r t i s i n g
Advertising designed to create a generally favorable impression of the
organisation is called image advertising. Image advertising is especially
important for organisations in highly competitive labor markets that perceive
themselves as having a bad image. Whether the goal is to influence the
perception of the public in general or specific segments of the labor market, job
seekers form beliefs about the nature of the organisation well before they have
any direct interviewing with these companies. Companies with strong corporate
image and sound management practices usually attract best candidates for
vacancies compared to organisations who have a bad reputation in labour
relations.
Multinational companies in US, Australia and the like are exploring new
strategies to attract recruits. One such strategy is that of latest social networking
technology such as Twitter, Facebook, ‘forums’ and LinkedIn to recruit the best
and the brightest talent.
1. Provide an example of a recruiting advertisement which you have recently
encountered in the media e.g. newspaper, TV etc. List the job competencies
required in the vacancy
2. What is meant by the term “recruitment policy”?
Activity 5.1
Unit 5: Recruiting and retaining talent 5.8
3. What is meant by the term ‘fringe benefits’? How does it help in the
recruitment process?
Recru itment Sources
A significant element of organisation’s recruitment strategy is its decisions about
where to look for potential applicants. Different sources of applicants can be
reached using different methods of recruiting. Company’s current employees are
a major source of potential applicants, commonly known as internal labour
market. Another potential source of applicants is people who don’t work for the
organisation; they are called the external labour market. Each of the major
sources from which organisations draw its recruits has its advantages and
disadvantages.
I n t e rn a l So ur c es The effective use of internal sources require a system for locating qualified job
candidates and for enabling those who consider themselves qualified to apply for
the opening. Qualified job candidates within the organisation can be located by
any one or combinations of the following channels:
computerised record system,
job posting, and
temporary worker pools.………...…………………………………………
i ) C o m p u t e r r e c o r d S y s t e m s
Computers have made possible the creation of data banks that contain the
complete records and qualifications of each employee within an organisation.
Known as Talent Inventories, the database usually include employees’ names,
prior jobs, experiences, performances, compensation histories and demonstrated
competencies. Some advance databanks also contain employees’ work related
interests, geographical preferences and their career goals. Like savings accounts,
these information systems allow organisations to screen its entire work force in a
matter of minutes and can be “withdrawn” anytime to fill an internal opening.
Unit 5: Recruiting and retaining talent 5.9
i i ) J o b p o s t i n g
Job posting is a process of communicating information about a job vacancy on
company bulletin boards, employee publications or corporate websites or
anywhere else the organisation communicates with employees. Job postings
usually provide complete job descriptions. A well constructed job description
communicates competencies needed as well as organisational goals and
objectives. Inclusion of information about compensation and performance
standards makes job postings a popular mode of internal recruitment.
i i i ) T e m p o r a r y W o r k e r P o o l s
Temporary workers such as those in clerical jobs, accounting and word
processing categories often help organisations to meet fluctuations in their labour
demand which may arise from illness, vacations, terminations and resignations.
Establishing contacts with temporary pool of workers has often been beneficial to
education and health sectors. In- house temporary employees are generally
protected by the same employment laws, overtime provisions, and minimum
wage guidelines as those enjoyed by their full time counterparts
Adva n t a ges a nd D i s ad va n t ag es o f In te rna l Rec ru i t me nt For the employer, relying on internal sources offers several advantages. Internal
recruitment generates applicants who are well known to the organisation,
applicants are relatively knowledgeable about the organisation’s vacancies and
it’s faster and less expensive than external recruiting. Counterbalancing the
advantages of internal recruitment are several disadvantages. In some
circumstances potential candidates from outside the organisation should be
considered in order to prevent inbreeding of ideas and attitudes. Applicants hired
from the outside can bring with them the latest knowledge acquired from the
previous employers. Political infighting for promotion, discontentment among
those who are not promoted, criticism from those outside the organisation who
cannot get in are some of the other limitations of recruiting from within.
Ex te rna l S ou rce s Organisations that are growing rapidly and require large numbers of highly
skilled professionals often need to recruit from the external labour market as
internal recruitment simply cannot produce the number of people needed to
sustain continued growth. Even when companies have enough people within the
organisation, the internal applicants may not have the right competencies to fill
the required positions. Thus, it may be cheaper, quicker and easier for the firm to
hire people who have been trained elsewhere. Methods of recruiting from the
external labour market include: direct applicants and referrals, advertisements,
employment agencies, schools, and web sites sources.
Unit 5: Recruiting and retaining talent 5.10
i ) D i r e c t A p p l i c a n t s a n d R e f e r r a l s
Direct applicants are people who apply for a vacancy without prompting from the
organisation. Referrals are people who apply because someone in the
organisation prompted them to do so. One advantage is that many direct
applicants are to some extent already “sold” on the organisation. Many job
seekers use social networks to help find employment. A benefit of such sources is
that they cost less than formal recruiting efforts. Considering these combined
benefits, referrals and direct applicants are among the best sources of new hires.
Some employers offer current employees financial incentives for referring
applicants who are hired and perform acceptably on the job. A major downside of
referrals is that they limit the likelihood of exposing the organisation to fresh
viewpoints. Sometimes referrals contribute to hiring practices that appear unfair
such as nepotism i.e. the hiring of relatives at workplace.
i i ) A d v e r t i s e m e n t s i n N e w s p a p e r s a n d M a g a z i n e s
One of the most widely used methods for contracting applicants is through
advertisements. Apart from the traditional modes of newspaper and magazine
advertising, organisations have now adopted to radio, television, billboards and
posters to advertise about their vacancies. The aim of recruitment advertising is to
make people aware that a vacancy exists. It is also an ideal opportunity for the
organisation to promote a specific corporate image to the community at large.
From the applicants’ perspective, an effective and attractive advertisement is
important because, as one study showed, there appears to be a positive
relationship between the accuracy and completeness of information being
provided through advertisements, and the recruitment process.
Advertising places a severe burden on the recruitment office. Many applicants
who don’t meet the minimum criteria of a job may still be attracted by the
advertisements and apply for positions. They do this in a hope that if employers
are not able to obtain suitable applicants for the position then their application
will be considered.
i i i ) E l e c t r o n i c R e c r u i t i n g
The Internet has opened up new outlook for organisations trying to recruit talent.
There are many ways to employ the internet for recruiting. One of the easiest
ways to get into “e-recruiting” is simply to use the organisation’s own Web site
to solicit applicants.
i v ) P u b l i c E m p l o y m e n t A g e n c i e s
Employers can register their job vacancies with their local state employment
office and the agency will try to find someone suitable, using its computerised
inventory of local unemployed individuals. In some developed and developing
countries governments provide funding to a variety of local employment
agencies. Private employment agencies provide much the same service as public
employment agencies, but primarily serve the white-collar labor market. Another
difference between the two types of agencies is that private agencies charge
employers for providing referrals.
Unit 5: Recruiting and retaining talent 5.11
Adva n t a ges a nd D i s ad va n t ag es o f Ex t e rn a l Rec ru i t me nt
Hiring from outside the organisation is a relatively inexpensive and an effective
method of recruiting. In cases of employees trained by other organisations, hiring
companies will already have some background information on employee
performance, attendance and safety records through their due diligence process.
Employees recruited from outside bring innovate ideas and can be very effective
in changing the corporate culture of an organisation.
Opponents of external recruitment claim that outsiders may not fit into
organisation’s culture, a longer orientation is required for new recruits and some
claim that it can be a very expensive affair especially if recruits are from
overseas.
Figure 5.2 below gives a brief outline of the merits and demerits of external
recruitment.
Source: Nankervis, A., et al 2008:193.
Unit 5: Recruiting and retaining talent 5.12
1. Explain the difference between ‘direct applicants’ and ‘referral’ categories of
applicants.
2. Discuss the merits of internal and external modes of recruiting
3. Explain the difference between an electronic and newspaper advertisement?
Activity 5.2
Unit 5: Recruiting and retaining talent 5.13
Recru iter ’s ro le in a recrui t ing Process
Beh av i ou r an d Cha ra c t e r i s t i c s o f rec ru i t e r s
Research suggests that recruiters make a substantial difference when they do not
present themselves well during a recruiting process. Recruiters can have a
negative effect on applicants even if the job and the organisation are both
appealing. Some studies indicate that students for example, prefer recruiters who
have work experience in their specialties and have some personal knowledge of
the local universities. They also respond positively to recruiters, who are friendly,
knowledgeable, and truthful and who have some personal interest in the
applicants. If these characteristics are lacking in recruiters then organisations are
highly likely to lose out on some very capable applicants.
B e h a v i o u r o f t h e R e c r u i t e r
Many studies have looked at how well realistic job previews – background
information about jobs’ positive and negative qualities – can help organisations
minimise turnover among new employees. Realistic job previews requires that
in addition to telling applicants about the nice things a job has to offer like the
pay, benefits, opportunities for advancements etc, recruiters must also tell
applicants about the unpleasant aspects of the job such as “It’s hot, dirty and
sometimes you will need to work in the weekends”. Telling job applicants only
about the positive aspects of a job may work in a short run but in longer term it
may prove to be counterproductive. When applicants take jobs that do not fit their
skills or meet their expectations for career advancement, their performance and
morale at work are likely to suffer.
E n h a n c i n g t h e R e c r u i t e r ’ s I m p a c t
Although recruiters may have little influence on job choice, this does not mean
recruiters cannot have an impact. Researchers have tried to find conditions in
which recruiters do make a difference. Based on this research, an organisation
can take several steps to increase the impact that recruiters have on the people
they recruit such as:
Can provide timely feedback
Can avoid behaving in ways that convey the wrong impressions about the
organisation
Can recruit with teams rather than individual recruiters
Unit 5: Recruiting and retaining talent 5.14
1. Discuss ways in which organisations could improve the effectiveness of their
recruiters
2. Briefly define the tem realistic job previews. How does it relate to employee
turnover?
3. Discuss the phrase ‘job applicants respond positively to recruiters who they
perceive as warm and informative’
Activity 5.3
Unit 5: Recruiting and retaining talent 5.15
Managing Employee Turnover
Because of increased mobility of the working population, organisations these
days encounter numerous challenges in retaining their qualified employees.
Employees stay or leave organisations due to a variety of reasons. The number of
employees leaving an organisation within a reported period is called employee
turnover. The following section briefly explains two types of turnovers
experienced by employers: voluntary and involuntary turnover.
Vo lu n t a ry an d Inv o lu n t a ry T u rn ove r
Involuntary turnover occurs when organisations (employers) initiate the turnover.
Many organisations use the word ‘termination’ to refer to employees who has
been discharged for work for a discipline related reason. Termination of
employment can also result from internal organisational changes, economic
adjustments, plant closure, redundancy decisions or simply moving the factory
job to another location.
Voluntary turnover is initiated by individual employees, often when the
organisation prefers that the person stay as a member of the organisation. Both
kinds of turnover are costly, incur loss in productivity and diminish the image of
employers and organisations. For involuntary turnover, some former employees
may seek to redress their grievances through the courts, which may cost millions
of dollars to the organisations. Let us now consider some reasons for employee
turnover.
Un de rs ta nd i ng t he r ea so ns f o r Tu rnov er - P rocess o f J ob Wi th d ra wa l
Job withdrawal is a set of behaviours that dissatisfied employees perform to
avoid the work situation. The overall model of job satisfaction, job withdrawal
and manifestations of job withdrawal is illustrated by Figure 5.3 overleaf.
Read the section on voluntary and
involuntary turnover, job withdrawal and
job satisfaction in Chapter 10 of your
textbook.
R e a d i n g 5 . 2
Unit 5: Recruiting and retaining talent 5.16
Causes of Job
dissatisfaction
Personal disposition
Tasks and roles
Supervisors and co-
workers
Pay and benefits
Manifestations of Job
withdrawal
Behaviour change
Physical job
withdrawal
Psychological job
withdrawal
Job
dissatisfaction
Job
withdrawal
Figure 5.3 An overall model of the job dissatisfaction-job withdrawal process
Source: From Human Resource Management, 4th
ed, by Kramar, Bartmar & De
Cieri, 2008
This model resembles to Figure 10.4 (p.304) in your textbook but has been
slightly modified for the purpose of simplicity. On the right hand side of the
model, we show a set of behaviours which arises out of employees due to job
dissatisfaction. These behaviours are classified under the headings of behaviour
change, physical job withdrawal and psychological job withdrawal. We present
each of these withdrawals in progression, that is, individuals try the next category
only if the preceding form of job withdrawal is either unsuccessful or impossible
to implement.
B e h a v i o u r C h a n g e
There are various causes of job dissatisfaction as outlined on the left hand side of
the model. The first response to dissatisfaction would be to try to change the
workplace conditions that generate the dissatisfaction. This is done through
pushing for changes in company’s policy or personnel which may involve
confrontation and conflict with the employee’s supervisor. From the manager’s
point of view, the complaints, confrontations, and grievances may be seen as an
act of threat. However, this is an opportunity for the manager to learn and solve
important organisational problems. Some employees may engage in whistle-
blowing, taking their charges to the media with the hope that when the public
learns about the situation, the organisation will be forced to change. From the
organisation’s point of view, whistle-blowing is harmful because of the negative
publicity.
P h y s i c a l J o b W i t h d r a w a l
If behaviour change fails or seem impossible, a disgruntled worker may
physically withdraw from the job. Some options for physically leaving a job
range from arriving late to work, calling in sick, requesting a transfer or even
leaving the organisation for good.………………………………………………….
P s y c h o l o g i c a l W i t h d r a w a l
If an employee is primarily dissatisfied with the job itself, he may display a very
low level of job involvement. Job involvement is defined as the extent to which
an individual is dedicated to a job. Someone with high job involvement for
example would work beyond expectation to complete a special project.
Organisational commitment is defined as the loyalty of an individual to the
organisation.
Unit 5: Recruiting and retaining talent 5.17
Job Sa t i s f ac t i on a n d j o b w i th d ra wa l Job satisfaction is a pleasant feeling resulting from the perception that one’s job
fulfills or allows for the fulfillment of one’s important job values. This definition
reflects three important aspects of job satisfaction:
a. Job satisfaction is related to a person’s values, meaning what a person
consciously or unconsciously desires to obtain
b. Different employees have different views of which values are important. One
person may value high pay above anything else, another may value
opportunity to travel and yet another may prefer staying home and doing the
work.
c. The third important aspect of job satisfaction is based on perception of his or
her present situation, relative to his or her values.
Organisations can contribute to job satisfaction by addressing the four sources of job
dissatisfaction identified in our model, shown on the left hand side in Figure 5.3.
P e r s o n a l D i s p o s i t i o n s
Employers need to understand that dissatisfaction with other facets of life such as
spouse or family may attribute to performance at workplace. To address these
issues, employers:
Refer employee to employee assistance programs
Hire employees who have positive attitudes
T a s k s a n d R o l e s
Employers can improve job satisfaction by making jobs more complex and
meaningful. This can be done by:
Job enrichment
Job rotation
Developing and appropriate job roles
S u p e r v i s o r s a n d C o - w o r k e r s
The two primary sets of people in an organisation who affect job satisfaction are
co- workers and supervisors. Because supportive environment reduces
dissatisfaction, many organisations foster teambuilding (for example through
sports or social activities) through employee interaction.
P a y a n d B e n e f i t s
Human resource specialists can also help job satisfaction by establishing
satisfactory pay levels and communicate with employees about their pay structure
and pay raises.
Unit 5: Recruiting and retaining talent 5.18
1. Discuss any three strategies employers may implement to improve job
satisfaction in organisations
2. Discuss the four types of conditions that lead up to job withdrawal
Activity 5.4
Unit 5: Recruiting and retaining talent 5.19
Managing Employee Retent ion
The issue of employee retention has become a ‘hot’ topic among HR researchers
and practitioners. Two reasons have been identified for a growing focus on
employee retention: Firstly, the ongoing rise in employee turnover rates in many
industries and secondly, the cost involved in terms of the additional recruitment
and training that is needed to replace workers. However, it is inevitable that some
employee will obviously go as they will be lured by better and more attractive
terms and conditions from outside employers.
Numerous employee retention strategies have been documented in the HR
research literature. Some may be more suitable for a given organisation than
others. Some suggested retention strategies are discussed below:
In addition to addressing issues like personal disposition, tasks and roles,
supervisors and co – workers, pays and benefits, organisations can also
reduce unwanted turnover by improving their HR practices.
Implementation of a family friendly culture, allowing autonomy instead
of fixed hours of work, child friendly work sites, generous vacations,
sabbatical leave program for partners, and provisions of parental leave
should allow employers in successfully keeping their annual turnover
rates at negligible levels.
Another HR practice which may improve employee retention rate is
initiating a policy to minimise employee layoffs in organisations.
Intelligent managers are well aware of the price organisations pay in
sending people home for a reason or another. Once layoffs decisions are
instigated, profits may improve in short term but this may come with a
long term cost. Those who survive layoffs often display a low morale at
the workplace. Because of the fear of being displaced, some best
employees may look elsewhere for employment. Facing the threat of job
loss and seeing others lose their jobs can often be a bitter and a traumatic
experience. Thus some companies do everything possible to avoid layoff
in organisations.
Conducting exit interviews may present another opportunity for the
organisation to gather information for retaining its core employees. An
exit interview process will help organisations understand why people
leave and give clues as to where some improvements need to be made.
The primary purpose of the exit interview has always been the resolution
of unresolved and/or outstanding concerns of both the employer and
employee.
Employers must maintain ongoing and regular communication with staff
and a genuine sense of commitment throughout the organisation to
address workplace issues. They need to keep in mind that they should
treat employees the way they would prefer to be treated. If an employee
doesn’t prefer to socialise in organisational activities, they should be left
Unit 5: Recruiting and retaining talent 5.20
alone. Each employee is a unique individual and should be given the
respect he or she deserves
Employers must demonstrate integrity and ethical behaviour, managing in
ways they are sustainable and socially responsible. Employers should
‘walk the talk’ and be an inspirational example to their staff of integrity,
honesty and decency. Have in place a transparent style of leadership
which refrains from favoring, colluding or even penalising a group of
workers.
There are numerous other retention strategies employers can use to retain its key
employees. However, the strategies mentioned above are adequate at this level of
your studies.
1. Why should organisations try to reduce employee turnover in their work
places?
2. What are exit interviews and why are they important to organisations?
Activity 5.5
Unit 5: Recruiting and retaining talent 5.21
3. Identify the four factors that influence an employee’s job satisfaction (or
dissatisfaction). Which of these factors would be most expensive to change?
4. Discuss any four strategies employers could use to retain its key employees.
5. Explain the phrase “In spite of surveys and other efforts to retain employees,
some employees inevitably will leave the organisation”.
Unit 5: Recruiting and retaining talent 5.22
Summary
In this unit we discussed an integral function of human resource management of
recruitment and thereafter explored ways on retaining of key employees in
organisations. Initially we defined the recruitment process followed by a brief
discussion on recruitment policies entities use to attract potential applicants to
their organisations. Subsequently, we examined the key recruitment sources of
potential job applicants before elaborating on the role of a recruiter in a
recruitment process. The second half of the unit basically deliberated on
employee retention, focusing on the correlation between job satisfaction /
dissatisfaction and employee behaviour. We concluded this unit with a short
discussion on some alternative human resource practices which may help
organisations in retaining its talent.
In the next unit, we describe and evaluate the selection process. We also look at
the methods and effectiveness of employment tests, interviews, applications and
resumes and the role it plays in the employee selection process. The unit ends by
describing the final selection process in choosing the right candidate.
Unit 5: Recruiting and retaining talent 5.23
References
1. Kramar, R.,Bartram T.,Cieri.(2009) . Human Resource Management:
strategy, people, performanace. McGraw Hill, New York.
2. Ivancevich, J. M., Hoon, L. S. (2008). Human Resource management.
McGraw Hill, New York.…………………………………………………
3. Noe, R., Hollenbeck, J., Gerhart, B., Wright, P. (2011), Fundamentals of
Human Resource Management, 4th
ed., McGraw Hill, New York
Unit 5: Recruiting and retaining talent 5.24
Glossary
It is important that you have a good understanding of the key terms that will be
used throughout this course. Start to develop your own glossary by completing
the following table, filling in the meanings that relate to the given terms.
W o r d s M e a n i n g s
Personal policies
Decisions of organisations on how it will carry out its human
resource management policies such as that of recruitment.
Internal Recruiting
Job posting
Public Employment
Agencies
Realistic Job
previews
Involuntary turnover
Job dissatisfaction
Organisational
commitment
Exit interviews
Unit 5: Recruiting and retaining talent 5.25
Ac t i v i t y 5 .1
1. Students’ responses would vary. However, most job advertisements would
require competencies which involve applicants previous work experience,
their academic qualifications, technical skills, interpersonal skills, ability to
work under pressure, some personal skills etc.
2. Recruitment policy specifies the objectives of recruitment and provides a
framework for implementation of recruitment program. It, may also involve
organisational system to be developed for implementing recruitment
programs and procedures by filling up vacancies with best qualified people. A
significant recruitment policy would be that of promotion from within.
3. Fringe benefits (also called employee benefits are various non-wage
compensations provided to employees in addition to their normal wages or
salaries. These benefits may come in the forms of housing allowance,
subsidized education costs, phone privileges etc.
Ac t i v i t y 5 .2
1. Employee referrals occur when current employees of an organisation inform
their acquaintances about openings and encourage them to apply. Direct
applicants are people who apply for vacancies without prompting from the
organisation. They declare their interest in working for the organisation or
they may simply have a good impression of the organisation and want to
explore the possibility to work there.
2. Refer to Figure 5. 2
3. Online or electronic recruiting generally involve posting career information at
company web site to address people who may be interested in the particular
company .It may also involve posting paid advertisements at career services
to attract people who are searching for jobs.
Newspaper or media advertisements are common which contain
advertisements to acquire recruits. An example of a media advertisement is
given on page 5.5 of this unit.
Ac t i v i t y 5 .3 1. The impacts that recruiters have on the people they recruit include:
The organisation can have recruiters who could provide timely feedback.
Applicants dislike delays in feedback and can draw negative opinions about
the organisation without timely feedback being provided to them,
Feedback on selected activities
Unit 5: Recruiting and retaining talent 5.26
Organisations can have recruiters, who avoid behaving in ways that might
convey the wrong impression about the organisation, and the organisation can
recruit with teams rather than individuals
2. RJP requires that in addition to telling applicants about the nice things a job
has to offer, recruiters must also tell applicants about the unpleasant aspects of
the job as well. Research suggests that RJP have a weak and inconsistent effect
on employee turnover.
3. Warm means the recruiters seem to care about the applicant and to be
enthusiastic about the applicant’s potential to contribute to the organisation.
Informative means recruiters provides the kind of information the applicant is
seeking
Ac t i v i t y 5 .4
1.By making jobs more complex and meaningful through such approaches as job
enrichment and job rotation, clarifying employees' roles by clearly spelling out
work methods, schedules, and performance measures, fostering team building
among supervisors and co-workers both on and off the job through activities
such as bowling leagues.
2. Job withdrawal is a set of behaviours that dissatisfied individuals enact to
avoid a work situation. The four general conditions that may cause job
dissatisfaction are: personal dispositions, tasks and roles, supervisors and co-
workers, and pay and benefits.…………………………………………………
Personal dispositions—several personal qualities have been found to be
associated with job dissatisfaction, including negative affectivity and
negative core self-evaluation.
Tasks and roles—as a predictor of job dissatisfaction, nothing surpasses
the nature of the task itself. While many aspects of a task have a link to
dissatisfaction, of particular significance are the complexity of the task,
the degree of physical strain and exertion required, and the value the
employee places on the task.
Supervisors and co-workers—Negative behaviour, particularly on the part
of supervisors, can produce tremendous dissatisfaction. Research by the
Corporate Leadership Council found that employees who said they
planned to leave their jobs most often said it was because managers acted
as if they did not value the employees.
Pay and benefits—Employees also care about their earnings. For most, a
job is their primary source of income. In addition, pay may also be an
indicator of status within the organisation and in society at large, so it
contributes to some people's self-worth.…………………………………...
Unit 5: Recruiting and retaining talent 5.27
Ac t i v i t y 5 .5 1. Organisations should try to reduce both kinds of turnover (voluntary and
involuntary) because both are costly due to the need to recruit, hire, and train
a replacement. Involuntary turnover also can result in lawsuits and even
violence at workplace, something which organisations should avoid at all
cost.
2. An exit interview is a meeting of the departing employee with the employer or
a supervisor to discuss the employee’s reasons for leaving the organisation.
These interviews are important because they provide feedback to the
organisation about their actions toward and treatment of the workers.
Additionally, they can indicate problem areas.
3. Four factors that influence an employee’s job dissatisfaction/satisfaction
include personal disposition, tasks and roles, supervisors and coworkers, and
pay and benefits. Obviously, modifying the pay and benefits structure could
prove to be the most expensive.
4. One of the more common methods to retain key employees would be to try to
identify and select employees who have personal dispositions associated with
job satisfaction. Jobs could be made more complex and meaningful,
reinforcing shared values and encourage social support among employees,
establish satisfactory pay levels and constantly communicate to employees on
the pay structure and pay raises.
In addition to the above, employers could implement HR practice which are
child friendly, worker flexibility and other HR policies which inculcate family
values among employees. Also minimizing layoffs and conducting exit
interviews will to some extent minimise employee turnover.
5. Some employee turnover is unavoidable, even in the best organisations. People
retire or move for non- job related reasons. Better opportunities elsewhere,
aggressive recruitment by competitors, workload and stress levels, family
reasons difficulties with supervisors are only some reasons will leads
employees to quit.
Unit 5: Recruiting and retaining talent 5.28