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T4: Recruitment Policies (p.204) (Lead-the-market pay strategies (p.205)…
T4: Recruitment Policies (p.204)
Internal v External recruits
Internal
Employee loyalty
Job security
Career advancement opportunities
Highly attractive to graduate recruits
Collins research shows strongly orgs results from this
Noe p.207 - Internal CEO appointments outperform external in several stats
External
During recessions, strong orgs may take advantage by poaching from weaker competition
Needed when no internal suitable applicant
Lead-the-market pay strategies (p.205)
Good when specialist or high-level skill required
Can be base rate or package options
Profit-share?
Can be a slippery slope if too reliant on this option
Can help to reduce effects of poor org reputation, e.g. Walmart
Employment-at-will policies
Effectively 'casual contracts' in NZ
So either party can terminate at any point
Sends bad message about organisation anyway
Low job security
Image advertising (p.206)
Appeals more the peoples 'Why' - Sinek
May be used to improve a bad reputation or overcome a scandel
May be used as a differentiating feature - i.e. Mainfreight
Advertising the org/brand - not the specific role
Intrinsic Motivational Strategies
Army uses this to recruit - gain skills for your future
NFP/Community orgs would rely on this also
Alternative to high pay strategies
Golf club examples
Intrinsic motivation strategies
Explained: GC is NFP org and leisure activity so can capitalise on intrinsic motivation strategies, this is also linked to image advertising in the form of being a prestigious organisation
Pros
Can attract keen golfers for lower wages than they may take elsewhere
Can make up compensation package in the form of valuable perks
Cons
Interests can decline and become less of a motivation over time - e.g. Rick with his shoulder injury
Interest in the org activity can be given too much weight during recruitment and selection and can result of a poor person-job fit favouring a person-organisation fit - e.g. Rick
Recommendations
Careful not to put too much weight on potentially temporary aspects of a persons characteristics in recruitment and selection
Ensure there is scope for value changes in the compensation package
Employment-at-will policies in the form of 'casual contracts' used, particularly in one department, 'fixed-term contracts' used in another to fit seasonal needs
Pros
Used well in course dept. in the form of fixed-term summer interns in order to meet seasonal low-skilled requirements and create a pool of potential candidates for permanent positions which have been trialled already
Meets seasonal needs
Cons
Low job security and therefore commitment from staff
High and costly turnover as staff find permanent options elsewhere
In hospo dept. 60-80% staff are casual so this transient/non-commitment culture permeates the whole dept.
Recommendations
Should be restricted to the lowest possible number of positions filled this way
Even if employees need to start on casual, they should not stay there for much beyond 3-6 months
Image advertising
Pros
Likely to attract more of the right person-organisation fit
Can lead to more referral recruitment opportunities
Cons
Org needs to be able to live up to and maintain the reputation/values it is promoting, GC suffers from this
If too narrow, may reduce the pool of suitable applicants
Explained: GC uses this, promoting there 'premier' ranking and long history in their recruitment practises
Recommendations
Ensure image is a true reflection of the organisation
Uses external recruitment because generally too small to have succession planning for most positions
Pros
Brings a fresh perspective to the organisation, this is especially beneficial to the golf club which is particularly traditional and archaic in many of its practices and has been performing poorly for over 20 years
Widens the pool of applicants so can bring a better fit to role than what will be available internally
Can motivate existing staff to up their game in order to impress or compete with new recruits, i.e. me raising to the challenge of a new boss
Can offer an opportunity to bring in people with particular insight into the industry or growth direction of the organisation, e.g. my background in F&B
Cons
Lose high performers when they have no where else to go in the organisation when they have outgrown their position
Disruptive to have to fill most positions with brand new staff and can impact on existing staff morale
Takes a lot of time/energy/cost to socialise external people
T5
: Higher turnover costs than when some/more internal recruitment can be integrated with external recruitment
T6:
Higher training costs for external recruits, more requirement for organisational culture training