Internal Hiring or External Recruitment †Free Samples to Students

Question: Discuss about the Internal Hiring or External Recruitment. Answer: Introduction Human Resource Management is a crucial aspect of any organization. HRM performs a sundry set of functions within the business and helps businesses in managing the organizations most valued assets. An effective HRM ensures efficient recruitment of employees, timely training and development, transparent communication in the business, fair compensation for employees and expeditious addressing of employee grievances. Human Resource Management has achieved significant importance in the last few years: In practice as well as in literature (Brewster Hegewisch, 2017). This report throws light on two vital roles played by the HRM viz-a-viz recruitment selection as well as employee retention and talent management. Ensuring that the organization is equipped with the right people at the right time is very pivotal for the success of the business. HRM ensures that competent people are hired in the business through a transparent and highly effective process (Board, 2017). Once the employees institute tenure, it becomes the responsibility of the HRM to create a positive working environment for employees to remain associated with the business for a long term. This is where talent management comes into the picture and fortifies that at any given point of time an adequate number of people are associated with the business (Armstrong Taylor, 2014). Effective recruitment and selection are pivotal to the success of any business. These two process combines ultimately determine the quality of the employees in an organization (Costen, 2012). Managing human resources of the organization begins at bringing in the right employees for the right job profile in the business. Recruitment includes the process of bringing competent and interested candidates to apply for the jobs available in the organization. On the other hand, Selection refers to the process that these candidates undergo before being finalized for the position. Organizations need to respond to rapidly changing global environment. Continued success is, thus, dependent on attracting and retaining high quality individuals who can respond effectively to this changing environment (Newel, 2015). Recruitment process and decisions Recruitment involves the process of attracting the interest of a pool of capable people who will apply for jobs within the organization (Bratton Gold, 2017). It is a core function of Human Resource Management. Recruitment process ideally begins with identifying a gap between the HR needs of a business and the current workforce employed by the business. Once the gap has been identified, businesses attract candidates through a variety of sources and make those candidates go through a selection procedure. Recruitment plays a vital role as businesses tend to understand its manpower recruitment and competent candidates seek jobs. Effective recruitment processes are not just necessary for the business but for the growth of the economy. Malaysian unemployment rate stands at 3.4% this January (Trading Economics, 2018). On the other hand job vacancies in the country slumped to 401835 in the last quarter of 2017. There is a 2% rise in the labor force in 2017 as compared to 2016, yet there is an increasing need to work upon employee dissatisfaction (Department of Statistics Malaysia, 2018). This could be due to decreasing job satisfaction and lowering growth opportunities. Average salary increase rate in Malaysia declined to 5% in 2017 (New Straits Times, 2018). These statistics are evident that there is an increasing need for Malaysian organizations to improvise the recruitment process in order to be able to attract new talent in the business. Recruitment process at all the organizations varies slightly on the bases of organizations attrition rate, size of the organization as well as nature of the business. Large organizations like Dell have a large pool of candidates who have shown interest in working for the firm. The goodwill and effective positioning of these organizations automatically attracts candidates to work with these firms. On the other hand, small organizations or Startups like Food Matters need to put additional efforts in attracting potential candidates. Therefore, these organizations resort to various recruitment strategies discussed in the next part of the report. Dell also supports internal recruitment because of the large number of employees working with the business. The organization posts job requirements on the company website as well as ties up with online job portals in order to attract competent candidates (Dell EMC, 2018). While on the other hand, new generation startups resort to social recruiting and extensive employee referrals while initiating the recruitment process. Recruiting strategies Every organization adopts various strategies to recruit talent into the organization. Recruiting strategies can be categorized into two main streams. These are internal and external recruitment. Both these forms of recruitment play a vital role in attracting a pool of competent candidates who are interested in working with the organization (DeVaro, 2016). Recruitment strategies play a vital role in the success of the business to ensure the growth in the Malaysian job market. The increasing attrition rate in organizations has created a need to be creative with recruitment as well as enhance focus on employee satisfaction. According to research, a staggering 74% of employees are unsatisfied with current jobs. Over 61% people validated that low pay was the major reason leading to job dissatisfaction. (Jobstreet, 2015). However, in order to counter the same, companies have been putting efforts in providing other benefits to employees (Monroe Consulting Group, 2015). Internal recruitment involves promotions, job enhancements and geographical transfers. Often organizations have a pool of employees who would be willing to perform different roles within the same organization. Whenever, a vacancy is formed in a business, it is recommended to analyze if the vacancy can be filled by internal sources alone. External recruitment involves recruitment brokers, online recruitment portals, companys website, social media recruitment. The size of the company widely impacts the recruitment strategies adopted by the company. There are certain jobs that are more likely to be filled by internal mobility (promotions and lateral transfers) than by hiring (Bidwell Mollick, 2015). A few recruitment strategies adopted by organizations are as below: The Apple Inc. is a multinational business specializing in technology related services and products. The organization has offices across the globe and is in constant need of employees. In order to attract a pool of talented candidates, Apple Inc. posts the vacancies in the organization on its official website (Apple Inc, 2018). That is the only source of recruitment adopted by Apple. The brand awareness and goodwill of Apple makes it easy for the firm to attract candidates. Social media is also becoming an increasingly prevalent and relevant tool of recruitment by various organizations. This was started by LinkedIn recruiting. Today, the world of recruiting has gone nearly 100% digital (Taylor, 2016). The large reach and wide usage of social media has made it possible for organizations to reach out to a wide number of candidates through social media platforms. There are various online job portals like Jobstreet, Fastjobs and Monster.com. These portals are aimed at bridging the gap between employers and competent candidates. Such portals can be used by organizations to contact candidates. There are various organizations like Country Garden who have listed vacancies in online portals and have been able to recruit employees through such portals (Jobstreet, 2018). Country Garden recruited 250 employees in 2014 via Jobstreet (Cheng, 2014) Employee referrals are one of the most efficient ways of recruiting competent candidate within the organization. The employees get a certain pre-decided referral bonus for recommending candidates which keeps them motivated. The major advantage of recruiting through referrals is an additional amount of trust that can be bestowed upon a new employee if he or she has been referred by an existing employee. Therefore, referred candidates are more likely to be hired (Brown, Setren Topa, 2016). Employee selection is an important organizational process for assessing individuals and their attributes (Bolander, 2016). Once a pool of competent candidates has been gathered, every candidate from that pool goes through a selection process. The aim of the selection process is to test various attributes of the candidates and based on the analysis, select the most appropriate candidates and offer them to work with the business. Every organization has a different selection criteria. The Google LLC is a leading multinational technology company which specializes in internet related services and products. The Selection process at Google is mentioned below: The first step of the Google Selection process is online application that needs to be filled by interested candidates from the Google Website. The application is then shortlisted by expert based on candidates skillset and previous experiences. The second step of the Google Selection process involves hangout or telephonic interviews. The candidates are asked open ended questions. Often candidates are asked to write algorithms in various coding languages to assess the technical skills. The shortlisted candidates are then invited for a face to face interview. Four different strengths will be analyzed which is ability, leadership, role related knowledge and Googleyness (Google, 2018). Googleyness is a terminology given by Google where the organization analyzes the ability of candidates to move outside comfort zone. Negotiation and Selection Once the candidate has been shortlisted after the onsite interview, both the parties negotiate over the offered salary and upon reaching a common ground, the candidate is selected to work with the organization and an official selection letter is rolled out to the employee. Above are the steps for selection process by google which is almost similar the other companies, but SGS differs a little from Googles process because candidates after clearing the face to face interview are then invited to take psychometric and logical reasoning tests to help recruiters understand the candidates motivation, behavior and reasoning skills (SGS, 2018). Employee selection is more complex than hiring a qualified employee to perform a particular job. It is emphasized that employee selection processes and techniques are often keys to effective execution of other HR processes (Farr Tippins, 2017). Retention and Talent management Employee retention and talent management are crucial firms of any organization. Employee retention is important to ensure than organizations retain competent employees in the business leading to improved productivity and efficiency. Talent management is the overall process of managing talent within the organization. Addressing work life balance is one of the key variables in addressing issues of employee retention (Deery Jago, 2015). This covers the entire spectrum of human resource activities in the business including employee recruitment, engagement, satisfaction, retention and motivation. Talent retention is one of the major challenges faced by organizations (Forbes, 2017). Various organizations across the globe put tremendous efforts in retaining employees. Malaysian retention scores have severely declined, 36% of employees confirm that employees are likely to leave current organization within a span of two years (Willis Towers Watson, 2017). There are various advantages associated with retaining employees. These advantages include reduced training costs, improved trust and smooth functioning of the business. Employee attrition is the process of current employees leaving the organization. The reason behind employees leaving the organization might be voluntary or involuntary. Voluntary reasons involve resignation due to health issues, personal problems, and dissatisfaction with the organization, better opportunities or change of industry. Involuntary reasons include retirement or poor performance at work. As mentioned above, there is an increasing gap between unemployment rate and vacancies. Besides that, the attrition rate of the country stands high at 15.1% (Willis Towers Watson, 2018). This could be due to decreasing job satisfaction and lowering growth opportunities. Average salary increase rate in Malaysia declined to 5% in 2017 (New Straits Times, 2018). The increasing attrition rate in organizations has created a need to be creative with recruitment as well as enhance focus on employee satisfaction. Research revealed that over 70% of employees who demonstrated loyalty towards the firm did not receive pay increases. Moreover, out of the 30% of employees that received salary hikes, 52% received increases of below 10%. But to counter the same, companies have been putting efforts in providing other benefits to employees (Monroe Consulting Group, 2015). According to Michael page, Malaysian employees leave the current company for two predominant reasons including lack of career progression (52%) and seeking a fresh challenge (43%). 25% people also stated that the reason for leaving current employer is feeling undervalued. (Michael Page, 2015). While looking for a new job, 32% people felt that improved workplace flexibility is the key reason for being attracted to a new job (Michael Page, 2015) Benefits are additional perks given to employees besides salaries. These include sick leaves, retention bonuses, profit sharing, education loan contributions, retirement benefits or even health insurance. These benefits are an additional gesture by the organization to demonstrate trust in employees. 63% of employers across the country feel that additional benefits provided to employees improve attraction and retention (Willis Towers Watson, 2017). Facebook provides its employees with unlimited sick leaves in a year. No doubt, Facebook enjoys a high employee retention rate. When an organization provides additional benefits to employees, it gives them reasons to stay associated with the firm. Employee engagement has emerged as the main driver for organizational success. And organizations are increasingly recognizing its importance in organizational success (Sharma Rajput, 2017). Employee engagement refers to the ability of the business to keep employees engaged. The top three engagement drivers specifically for Malaysian organization are empowerment, goals and objectives, and workload and work life (Willis Towers Watson, 2015). Enhancing employee engagement would result in increased sense of ownership and hence increased retention. The number of hours that an employee contributes to work largely impacts satisfaction as well as work-life balance of the employee. In order to retain employees, it is imperative that organizations must put efforts in improving employees work-life balance. Banking sector in Malaysia specifically believes that offering flexible working hours to employees is a key strategy for ensuring employee retention (Idris, 2014). Rewarding employees and recognizing hard work is an important strategy to keep employees motivated within the firm (Cherry, 2016). Rewards can be monetary or non-monetary in the form of cash prizes, paid vacations, promotions or improved jobs. Rewarding employees and recognizing hard work will lead to improved retention since employees will feel more valued. Employee learning plays a vital role in ensuring employee retention in the business. If employees can feel themselves growing in a particular organization then employees will tend to remain associated with the organization for a longer time. Talent management Talent management refers to the process of anticipating the need of human resources in the business and building strategies to fulfill the same (Taylor, 2014). Talent management involves ensuring that the right people are at the right job in the business. It covers the entire sector of human resource activities that take place in an organization. The talent management process has evolved a lot over time. From traditional talent management systems, organizations have shifted to role based talent management. The traditional TM system began with designing the components and processes and focused on knowledge and skills of employees. On the other hand, role base TM system begins with specific and targeted business outcomes while keeping focus on pivotal roles and accomplishments expected from and delivered by employees. This role base TM system designs workplace in a manner to reduce barriers and enable successful performances in the organization. The ultimate aim is to achieve the business results unlike traditional system which considered the end goal as an effective quality of the system. However, despite the change, talent management practices in Malaysia are still at an early stage. Most of the organizations do not have a documented HR process. This will pose a severe challenge when competing with global organizations (Kaliannan, Abraham Ponnusamy, 2016). The process and strategies adopted for talent management are different for different organization. Facebooks talent management is unique and includes the following strategies: The first step of talent management is the ability to identify the gap between current manpower and required manpower by an organization. Facebook achieves so my putting a dollar value on all employees. Facebook analyzes the value of employees in monetary terms in order to understand its manpower gaps. For example an engineer at Facebook is valued at 0.5 to 1 million dollars (ERE recruiting intelligence, 2013). Facebook aims at recruiting the most competent employees through a stern process involving a lot of interviews in a loop on a single day (Facebook, 2018). Effective recruitment is an important step in managing talent of the firm that equips organizations with effective human resources. Moreover, Mark Zuckerberg himself visits campuses and recruits talent. Facebook provides various fringe benefits to its employees as strategies to retain them. Work life balance of Facebook employees is commendable. All the employees are entitled to sick leaves for themselves as well as to cater to a sick family member. Employees are also entitles to four months of paid leaves for new parents (Tech Crunch, 2017). Such strategies by Facebook helps the firm in retaining employees. These are few talent management strategies adopted by Facebook to manage talent in an effective manner, keep employees satisfied and in turn enhance organizational efficiency. Talent management plays a crucial role in managing the human resources of any business. The concept is still relatively new in Malaysia and hence efforts must be put to enhance awareness regarding the same. Conclusion Human Resource Management is one of the most important functions of a business. Success of a business largely depends on various HR practices adopted by organizations (Marchington et al, 2016). This report has throws light on HR process like recruitment, selection, retention and talent management. There are various organizations who have set tremendous example of effective Human Resource Management like Google, Apple and Facebook. Employment scenario in Malaysia is yet not entirely effective. The population is experiencing close to full employment with the unemployment rate of 3% but human resource practices in Malaysia must change and accept the fact that the average turnover for any individual in this day and age is two-and-a-half years (The Sun Daily, 2017). This report reflects upon various strategies that leading organizations of the world have adopted in order to manage talent. It has been learnt that effective recruitment, competent HR processes, efficient talent management and efforts by the organization to retain such talents are highly important to ensure the success of any business. References Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Page 264. Bidwell, M. and Mollick, E., 2015. 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