JH603 STAFFING Evaluating HR

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JH603 STAFFINGEvaluating HR Recruitment

• WHY,HOW EVALUATION ?

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Why Evaluation ?

• Organisational EFFECTIVENESS of HR process
• WORTH and Justification OF INVESTMENT
• Responsiveness to Labour market cost
• Marketing HRM as a function to internal clients
• Add value/cost to Planning (short or long term)
  and improve precision of planning decisions
• Dealing with Change (of priorities or
  environment)

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HOW ?techniques of evaluation

• Cost/Benefit e.g. hire costs compared to output
  (correlation ) e.g. C/B ? Good result is a low
  number
• Performance measures e.g. turnover
  rates,selection ratios,lead times
• Direct cost measures (cost tracking) hiring
  costs,exit costsas of payroll
• Cost containment/Profit centre approach
• and non- costs at profit centre directly
  compared to a wide range of measures internal and
  external measures

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Specific(quantitative)measures(Evaluaion
formulae)

• Response Time (RT)
• Fill Time (FT)
• Referral rate (interview referral )
• Internal response (applications/jobs )
• Internal Hire ( of jobs filled by internals)
  (IR)
• Interview and process times
• Selection ratios(SRinterviewed/selected,interview
  ed/available jobs) etc. see p223 for examplesl
• Overall Ratio (p224 )

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Overall Ratios

• Job per. promotions still employed /3 ?
  (subjectivity and lack of control or influence of
  recruiter are issues )
• RTFT IRAV cost Qual. /n(5) Effectiveness
  Index (issues ? e.g. weighting )

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BENCHMARKS

• External comparisons to INDUSTRY,OCCUPATION (see
  CMN p225)
• Can be National or International particularly in
  Global Industry Environment
• Competitor or Ally can provide comparison
• Within same company Divisions

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Evaluation to Aid Flexibility Responsiveness

• Change-affecting all HR functions
• Workforce Diversity (participation rates )
• Work- Life Balance(stress,TO,absenteeism)
• Changes of Expectations (Generational)
• Change in Work itself the Workplace (eg.
  technology )
• Demographic challenges (eg.shortages )
• Lifelong Learning and Knowledge Industries
• Client expectations

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Evaluation and Retention

• Retention as a measure of success (strategies)
• -Internal Recruitment
• -Flexible rewards and work conditions
• -Culture management
• -Leadership styles (supportive)
• -Career management (planning and oportunity )
• -Mobility Travel
• -Work/Life balance
• Emphasis on Communication

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Specific COST Factors

• Direct and Indirect (p.235)
• Wastage(p.236 )
• Long Term Hidden Costs
• - Replacement
• -Opportunity cost
• -org. image(to externals )
• -morale eg. teams

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Direct Costs

• Job Design and Analysis
• Advertising
• Agency
• Testing
• Medical or other contingent costs
• Travel relocation
• Individual package costs

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Indirect Costs

• Preparation and documentation
• Interviewer and face-to-face costs
• Administration
• Job or office adaptation
• Flat learning curve
• Induction

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Long term hidden costs

• Replacement
• Morale
• Lost opportunity
• Damage to competitiveness, image or company
  reputation
• Destructive impact on team or individuals
• Time bombs

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Employer of choice

• Being an EOC is a major recruitment and retention
  strategy
• Benefits
• Marketing and recruiting
• Quality labour pool
• Reduce turnover
• Morale and enthusiasm
• Profitability and productivity

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Qualities of an EOC

• The basics are probably similar in most EOCs
  although there is plenty of individual quality
  features in companies
• Remuneration, rewards, conditions
• Innovation and novelty
• Learning and personal development
• Flexibility and choice
• Recognition
• Self-management
• Teams, social and charismatic involvement with
  industry identities or leaders

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Becoming an EOC

• Internal/External survey and feedback
• Participation and involvement
• Consultation
• Feedback
• Features
• Personal work conditions and flexibility
• Child care and recognition of family commitments
• Personal support (nurturing)
• Share and profit options

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Conclusion

• Evaluation is essential but can be challenging
  particularly if HRM is under-resourced.unskilled,l
  acks HRIS,lack of managerial support.
• Payoff or return may be long term or short term

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Next week

• Career and Succession Planning this is not
  covered in set text.see
• De Cieri H. Kramar R. 2003 Human Resource
  Management in Australia strategy,people
  performance McGraw Hill
• and Heneman and Judge