* * *

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Human Resource Management: Finding and Keeping the Best Employees

11
1-1 11-1

Nickels

McHugh

McHugh

McGraw-Hill/Irwin Understanding Business, 8e

2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

CHAPTER

* * *

HR Challenges
Shortages Unskilled Workers Undereducated Workers Shift in Workforce Composition Laws & Regulations Single-Parent & TwoIncome Families Attitudes Toward Work Continued Downsizing Overseas Labor Pools Customized Benefits Employees With New Concerns Decreased Loyalty
11-2

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Determining HR Needs
1. Prepare HR 3. Assess HR Inventory Demand 2. Prepare Job 4. Assess HR Analysis Supply Job 5. Establish Description Strategic Plan Job Specification
11-3

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Hiring Process
Recruit Select
Application Form Interview Test Investigate Examine Probation

Train/Develop
Orientation OJT Apprenticeship Off-The-Job Training Online Training Vestibule Training Job Simulation

11-4

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HR Executives Recruiting Preferences

Temp-to-Hire Engagement Staffing/Recruiting Agency Professional Association Internal Recruiters Classified Advertising Internet/Job Boards Referrals
Note: Multiple responses allowed

0%

10%

20%

30%

40%

50%

60%

Source: USA Today

11-5

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Applicants Mistakes
Interview
2% 14%

Resume Cover Letter

32%

Reference Checks Interview Follow-up Screening Call

6%

7%

9% 9% 21%

Other Do Not Know

Source: USA Today

11-6

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Interviewing Mistakes
5% 18% 3%
Little/No Knowledge of Company Unprepared to Discuss Career Plans Limited Enthusiasm

No Eye Contact

25%

49%

Unprepared to Discuss Skills/Experience

Source: USA Today

11-7

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Number Interviewed to Find Quality Hire

One 2 to 3 4 to 6 7 to 10 More than 10 0% 10% 20% 30% 40% 50%

Source: USA Today, January 24, 2005

11-8

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Important Factors When Phrasing Interview Questions

Language
Relevance Information Level Complexity Information Accessibility

Source: University of Central Arkansas

11-9

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Training & Development Assess Needs Design Training Evaluate Effectiveness

11-10

* * * 1. 2. 3. 4. 5. 6. 7.

Training Methods
Employee Orientation On-The-Job Apprenticeship Off-The-Job Online Vestibule Job Simulation
11-11

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Management Development
On-The-Job Coaching
Understudy Job Rotation Off-The-Job Courses & Training

11-12

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Performance Appraisal
1. Establish Standards 2. Communicate Standards 3. Evaluate Performance 4. Discuss Results 5. Take Corrective Action 6. Use Results to Make Decisions
11-13

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Employee Retention
Compensation
Individual Team

Flextime
Core Time Compressed Workweek

Fringe Benefits Job-Sharing

Home-Based & Mobile Work

11-14

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Compensation & Benefits Program Objectives

Attract the right people Employee incentives Retain valued employees Maintain competitiveness Financial security for employees
11-15

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Salary

Pay Systems
Bonus plans Profit-sharing plans Hourly wage and daywork

Piecework system
Commission plans

Gain-sharing plans
Stock options

11-16

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Vacation Days Per Year

Italy France Germany Brazil UK Canada Korea Japan USA 0 10 13 20 30 40 50
11-17

42 37 35 34 28 26 25 25

* * *

Scheduling To Meet Employee Needs

Flextime Plans Home-Based & Other Mobile Work

Job-Sharing Plans

11-18

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Number of Hours Americans Work Per Week

51+ Hours 18% 1-29 Hours 30-39 Hours 10% 10%

46-50 Hours 16% 40 Hours 34%

41-45 Hours 12%

Source: USA Today

11-19

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Telecommuting: Affect on Career

6% 25% No Affect 39% Help Hurt Not Sure/No Answer

30%

Source: USA Today

11-20

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Benefits of Job-Sharing
Opportunities for wanting to work only part-time
High level of enthusiasm and productivity Reduced absenteeism and tardiness Ability to schedule in peak demand period Retention of experienced workers
11-21

* * *

How Employers Are Becoming Flexible

Go Out Of Their Way to Accommodate Child-care Issues Offer Flexible Work Schedule Permit Time Off To Deal With Personal Issues Employees Schedule Their Own Vacation 0%
Source: insala.com, April 2005

20%

40%

60%

80% 100%

11-22

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Benefits of Providing Flexibility

Higher Employee Retention

Higher Employee Job Satisfaction

Better Relations With Workers

0%
Source: Insala.com, April 2005

20%

40%

60%

80%

100%
11-23

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Why is Retention Important?

Employee turnover could cost up to 40% of a companys annual profits
The average company loses $1 million with the loss of every ten managerial employees

Turnover costs are 50%-100% of the exemployees annual salary

Source: insala,com, April 2005

11-24

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Top 10 Reasons Employees Stay On Their Job

1. Credit Union Membership
2. Health Benefits 3. Salary 4. Good Coworkers

6. Childcare
7. Vacation Time 8. Sick Leave 9. Distance from Home 10. Popular Company

5. Office Hours

Source: Creditunionrate.com, accessed July 13, 2006

11-25

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Employee Movement
Promotion/Reassignment
Termination Retirement Resignation

11-26

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HR Laws
Civil Rights Act (1964) Age Discrimination Act (1967) Equal Employment Opportunity Act (1972) Affirmative Action Reverse Discrimination Civil Rights Act (1991) Americans with Disabilities Act (1990)

Social Security Act (1935)

Occupational Safety and Health Act (1970) Employment Retirement Income Security Act (1974)
11-27

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Implementing EEOC Which statements are T/F?

1. Its OK to ask any applicant whether he or she has an automobile.
2. It appropriate to ask applicants to attach photographs.

3. During interviews, its not appropriate to ask an applicant his/her age.

4. Its appropriate to ask if an applicant is a naturalized citizen. 5. Its not appropriate to ask an applicant about past work experience.
11-28

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6.

Implementing EEOC Which statements are T/F?

You may ask an applicant to indicate what foreign languages he/she can read, write or speak fluently. 7. Its appropriate to ask an applicant if he/she has an arrest record. 8. Its OK to ask whether the applicant is physically able to lift heavy weights. 9. Its appropriate to ask women questions about their children. 10. You have the right to ask an applicant for names of work-related and personal references.
11-29

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Companies Aid to Disabled Employees

Renovate Workplace Job Reassignments Change of Hours Change of Responsibilities 0% 10% 20% 30% 40% 50%

Source: USA Today

11-30