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Recruitment Step 1: Identify Hiring needs: The recruiter typically discusses the role with the department head and works
Process to learn more about the position. They discuss the type of person they are looking for, beneficial skills and
the desired experience level.
Step 2: Job Description: A job description that accurately describes the position and the requirements.
They use information gathered from discussions with the department manager, along with information
about similar positions within the company.
Step 3: Searching Process:
The recruiter uses their knowledge of the position to advertise it in a way that is most likely to reach and
attract the best candidates.
They typically try to receive as many applications as possible to look for candidates that are a good fit.
Step 4: Shortlisting the Candidates:
Those candidates who have the minimum qualifications & the required credentials will be selected.
Step 5: Interviewing Candidates:
The recruiter has an introductory interview with these candidates and advances the best candidates to the
next stage of the process.
Once they identify the best candidates, the department manager assumes control over the hiring process
and makes the final decision.
Step 6: Evaluating Candidates:
The recruiter works to narrow this down to a more manageable number. Contact past employers and ask
them if they’ll give a reference. Choose the most suitable candidate and proposed the offer.
Step 7: Induction of the New Employee:
Once the candidate accepts the job offer, they are hired. An accepted offer letter begins a process of filling
out and filing paperwork related to employment.
Onboarding your new worker in a welcoming and professional way will help integrate them in a manner
that lays the groundwork for a long-term productive relationship between them and your company.
Strategies or Look internally before externally: Internal candidates are already familiar with and contributing to your
Tips for corporate culture and goals. Given their past success within your organization.
effective Treat candidates like customers: A candidate’s first impression of your company is critical.
recruitment One of the best recruiting techniques is to treat interviewees the same way you treat your customers.
process Be respectful of their time. Be hospitable. Make yourself available.
Use professional social media: A fantastic tool not only for recruitment but also for spreading out the
company’s environment by sharing photos and videos from company events, your workplace and/or day-to-
day office life you give potential applicants a glimpse into your company culture.
Implement an employee referral program: a well-developed employee referral program can encourage even
more of your employees to refer the best talent they know.
Claim your Company Page: Job seekers often take time to research employee reviews, salary data, benefits
and more before applying to jobs. By claiming your Company Page, you can respond to reviews, customize
your page, and add your employer branding.
Attend industry-related meetups: While job fairs can be helpful for finding qualified candidates, non-
recruiting-specific events are also an excellent opportunity to meet motivated industry professionals who
are eager to network and advance in their field.
Topic 3 Selection Process (HRM)
Selection Selection is the process of putting right men on the right job. It is a procedure of matching organisational
requirements with the skills and qualifications of people. Effective selection can be done only when there is
effective matching. By selecting best candidate for the required job, the organisation will get quality
performance of employees.
Factors 1. Profile Matching Factor:
affecting the The most important factor that effects on selection is profile of the candidate and job specification. The
process of profile of the candidate should match with job specification. For this purpose, scores secured by the
selection candidates in various tests are taken as a standard and success or failure of the candidate is decided at each
stage of selection. Scores secured in the test, performance in the interview are taken to match the
candidate biodata with the job specification.
2. Organizational and Social Environmental Factor:
Organizational and Social factors also influence the selection process. Candidates who are able and efficient
may fail to work in a type of organization located in a place which is not conducive to work.
For some candidate’s hot environment may be problem for others cool environment may be hardship.
Therefore, while selecting the candidates, the prevailing environment, the capacity, and suitability of the
candidate to work in that environment should also be considered.
3. Successive Hurdles:
There are number of hurdles in the process of selection which a candidate has to pass through successfully
to get an appointment. These hurdles may be interview, test, group discussion, reference enquiry etc. All
these hurdles influence on the selection process and need to be considered at the time of selection.
4. Multiple Co-Relations:
Multiple co-relations are yet another factor that influences on the process of selection. Multiple co-relation
means relation between two or more factors. It assumes that deficiency in one aspect can be counter
balanced by an excess amount of another. A candidate who is poor in communication may be extra-ordinary
good in bookkeeping and accounting. Now multiple co-relation factors may be applied, and candidate may
be selected.
Selection Tests (a) Intelligence Tests:
They test the mental ability of candidates. These tests measure the learning ability of candidates in
understanding questions and their power to take quick decision on crucial points. People who can quickly
answer to these questions are found to be skilful and can be offered training to improve skills for the job in
organization.
(b) Aptitude Tests:
They test an individual’s capacity to learn a par-ticular skill. There are mainly two types of aptitude tests.
Cogni-tive tests which measure intellectual, mental aptitudes. The second one is called motor tests which
check the hand – eye coor-dination of employees.
c) Proficiency Tests:
These tests are also called performance or occupational tests. They determine the skills and knowledge
acquired by an individual through experience and on the job train-ing.
(d) Job knowledge tests
These tests are used to judge profi-ciency in operating mechanical equipment, dictating, typ-ing, computer
applications etc. These tests can be written and practical both. These tests are good in selecting typists,
stenographers with supervisor etc.
(e) Work sample tests
In this test the applicant is given a piece of work to perform in a stipulated time.
His performance will judge whether he can be picked up for the job.
(f) Personality tests
These tests judge the psychological make-up of any person.
These tests check a person’s motivational level, emotions, integrity, sympathy, sensitivity etc. These traits in
an individual provide the manager with an overall picture of his personality.
Selection Employment Interview:
Process Employment interview is a process in which one-on-one session in conducted with the applicant to know a
candidate better. It helps the interviewer to discover the inner qualities of the applicant and helps in taking
the right decision. Includes: Phone interview, Business interview, HR interview.
Employment Tests:
Employment tests are device to check a real knowledge of candidates for the respective jobs. Such as:
English test, IQ test and self-assessment.
Checking References:
Reference checking is a process of verifying the applicant’s qualifications and experiences with the
references provided by him. These reference checks help the interviewer understand the conduct, the
attitude, and the behaviour of the candidate as an individual and also as a professional.
Medical Examination: Medical examination is a process, in which the physical and the mental fitness of the
applicants are checked to ensure that the candidates can perform a job or not. This examination helps the
organization in choosing the right candidates who are physically and mentally fit.
Final Selection: The final selection is the final process which proves that the applicant has qualified in all the
rounds of the selection process and will be issued an appointment letter.
Benefits of The quality of personnel working in the organization determines its success. Selection is an important
selection function of the management.
process Procurement of Skilled Employees
In the process of selection, only desirable candidates are hired, and others are denied the opportunity.
Therefore, in selection, the suitable candidates who are fit for the job are selected from the prospective
employees.
Reduction in the Cost of Training
When, through selection, proper candidates are selected, the cost of training is reduced. This is because the
selected qualified personnel have better grasping power, and they can understand the techniques of work
better and more quickly.
Solution to Personnel Problems
Personnel problems are reduced in the organization when proper selection of personnel is made.
Labor relations improve and workers become more satisfied with their work.
Many problems like labor turnover, absenteeism and monotony are not experienced in the organization.
In summary, Selection helps in appointing competent employees who perform better at work leading to
reduction of rate of industrial accidents and building up the contented workforce for the organization.
Topic 4 Compensation
Compensations Compensation and benefits are two important aspects of human resources. Compensation includes wages
and benefits and salaries, while benefits include things like health. Compensation and Benefits in HRM refer to the salary,
monetary, and as well as non-monetary privileges provided to the employees at the workplace by the
Objectives of
organization.
Compensation
Acquire qualified personnel. - Retain current employees - Comply with legal regulations - To be adequate
and Benefits
Consistency in compensations - Motivating personnel - Ensure equity - Control costs - Facilitates
understanding.
The key Fixed pay: is the minimum amount of money an employer pays to their employee, excluding any bonuses or
components of overtime. An employee is paid a fixed pay monthly rather than on an hourly basis.
compensation Variable pay: is a payout from an employer that is based on the individual performance of an employee, as
and benefits well as the overall performance of the company.
Equity pays: Sometimes companies include stocks and options as part of employee compensation. These
are non-cash in nature and represent an ownership of the company. This allows employees to gain a share
of the overall profits of the company,
Health benefits In the US, healthcare is a common and well-received benefit to employees. Given the often-
high costs of benefits and healthcare plans, offering your employees healthcare coverage is a major benefit.
Insurance As discussed in the previous point. Medical insurance is part of the package these days. Many
companies also offer insurance for parents and siblings as well or at subsidized rates. Other insurance can
even be included.
Accommodation Many companies even offer accommodation to employees. This can be either be in the
form of a company provided place or the employee can claim the rent and the lease amount as per the
company rules and policies. Many companies even provide car or taxi facilities to employees to reach office.
Importance of Attracting top talent: People are continuously attempting to put themselves in the best financial position
compensation possible. Examine the pay and benefits packages provided by your competitors. To attract excellent
and benefits candidates, make sure you offer a comparable compensation package to potential employees.
Employee Motivation: Employees who are adequately compensated reflect that you value them as
employees and persons. When employees feel valued, they are more likely to come to work. Furthermore,
higher corporate morale motivates workers to go to work and do a good job.
Increase productivity: Employees that feel valued are more driven and loyal, resulting in higher
productivity. Employees are more motivated to do a good job.
Job Satisfaction: When the right payment system is in place, job satisfaction rises. Employees may brag
about their holiday bonuses or keep a close check on the company stock because they have stock options.
The right compensation program engages employees in their work.
Types of Direct compensation: is paid directly to the employee and has monetary value.
Compensation: It includes Base pay (salary and wages) - Variable pay - Commission payment - Bonus payment - House rent
allowances. - Overtime payment
Indirect compensation: monetary in nature, meaning it has a financial value that can be calculated — but is
not a direct payment in the form of cash.
non-financial compensation: Non-monetary compensation includes time off, flexible work hours, coaching
and training opportunities, recognition and awards, some fringe benefits, and other perks such as learning
and development opportunities, company cars, meals, phones or laptops, parental leave, and childcare.
Factors Productivity of workers - Ability to pay - Government Policies
affecting Industry Standards - Labour Unions -
compensation Cost of Living
management: Demand and Supply of Labour.
Benefits of the Record-keeping.: An HRIS is a record-keeping system that keeps track of changes to anything related to
HRIS employees. The HRIS can be seen as the single source of truth when it comes to personnel data.
Compliance: Some data is collected and stored for compliance reasons. This includes material for the
identification of employees in case of theft, fraud, or other misbehaviors, first contact information in case of
accidents, citizens identification information for the tax office, and expiration dates for mandatory
certification. All this information can be stored in the HRIS. It is essential that data is stored safely and
securely, in line with GDPR regulations.
Efficiency: Having all this information stored in one place not only benefits accuracy but also saves time.
Some companies keep a lot of data about employees as physical paperwork. Finding the right folder, and
locating the right sheet, can take up a lot of staff time.
HR strategy: The HRIS permits the tracking of data required to advance the HR and business strategy.
Depending on the priorities of the organization, different data will be essential to track. This is where the
HRIS shines.
Self-Service HR: A final benefit is the ability to offer self-service HR to employees and managers. This enables
employees to manage their own affairs. When done right, the HRIS can offer a good employee experience.
Keep in mind that not all HRIS systems offer this in a user-friendly manner!
Disadvantage of Security Breach: As with any computer technology and database, there is the risk that hackers will access
HRIS information and use it for nefarious purposes. Employees provide employers with financial, tax and personal
information such as emergency contacts. A security breach could be catastrophic. HRIS Cost As with any new
technology, there is a cost to license and implement a new system.
Cost range: It depends on the capabilities of the HRIS system, but they may be as high as $300 per employee
for large companies with many benefits and capabilities. Smaller companies should expect to pay anywhere
from $40 to $100, and that doesn't include payroll processor costs.
Overestimating statistics: When you have the recruitment process automated, it definitely makes things
easier. But your managers still need to look for a personal approach when it comes to candidates and
workers. Though some numbers can show you the real performance, there are metrics that you can observe
only through direct communication, e.g., proactivity, toxicity, positive mindset, etc.
HRIS functions Applicant Tracking System (ATS):This software handles all the company’s recruiting needs. It tracks
candidate information and resumes, enables recruiters to match job openings to suitable candidates from
the company’s application pool, and helps in guiding the hiring process.
Payroll: Payroll automates the pay process of employees. Contractual data and information on new hires is
often entered into this system – sometimes combined with time & attendance data – and at the end of the
month, payments orders are created.
Benefits administration: Another functionality of the HRIS is benefits management. Employee benefits are
an important aspect of compensation and are also managed in this system. More advanced systems offer an
employee self-service model for employee benefits. In this case, employees can select the benefits they are
looking for themselves. One may want more paternity leave, the other one a more expensive company car.
This self-service approach to benefits is also called a cafeteria model.
Time & Attendance: This module gathers time and attendance data from employees. These are especially
relevant for shift workers where employees’ clock in and out. Back in the day, employees often wrote down
their working hours on a piece of paper. Then, the manager would manually enter the data into a time
tracking system. Based on this data, payment orders were generated and paid to all employees. Nowadays,
workers often check work by fingerprint or a card that is synced with an HRIS. This gives an exact time for
arrival and departure. Any issues with lateness are easily detected.
Training: Learning and development is a key element when it comes to employee management. This module
allows HR to track qualification, certification, and skills of the employees, as well as an outline of available
courses for company employees. This module is often referred to as an LMS, or Learning Management
System, when it’s stand-alone. An LMS usually includes available e-learning and other courses to be followed
by employees.
Performance management: Performance management is a key part of managing people. Performance
ratings are generated once or multiple times a year by the direct manager or peers of the employee.
Succession planning: Creating a talent pipeline and having replacements available for key roles in the
organization is another key component of an HRIS.
Employee self-service: Employee self-service has already been mentioned. Organizations are focusing
increasingly on having employees and their direct supervisors manage their own data. Requests like holidays
can be asked for by the employee him/herself. After approval, these are then immediately saved into the
system (and registered to track for payroll and benefits purposes).
Reporting & Analytics: A much rarer module in HRIS systems is reporting and analytics. Modern systems
enable the creation of automated HR reports on various topics like employee turnover, absence,
performance, and more. Analytics involves the analysis of these insights for better-informed decision
making. We’ll explain more about this in the section below.
HRIS suppliers Cornerstone: Cornerstone On Demand, as one of the largest providers for Small and Medium businesses,
offers different suites including recruiting, learning, performance management, and an e-learning LMS.
Workday: Workday is arguably one of the best-known HRIS out there. Founded in 2005, it has rapidly grown
to a global HRIS giant with over 10,000 employees. Workday specifically tailors to mid- and large-sized
businesses.
SAP: SAP is better known as an ERP, or Enterprise Resource System. These are systems that keep track of a
company’s resources, which include among other things financial assets, orders, and people. In 2011, SAP
acquired Success Factors, making SAP Success Factors one of the major players in the HCM market, especially
for large companies.
Oracle: Oracle HCM Cloud was released in 2011. It includes modules on talent management, workforce
rewards, workforce management, and work-life solutions.
Ultimate Software: Ultimate Software was ranked by Forbes as the 7th Most Innovative Growth Company.
The company provides one system of records for HR, payroll, and talent management. Systems include time
and attendance, onboarding, performance management, compensation, succession management, and more.
HRIS specialist & HRIS analyst: there are two job roles that involve the HRIS. The first one is the Human
Resource Information Specialist. The HRIS specialist is responsible for implementing and maintaining the
HRIS for the organization. This also involves on-the-job training for HR professionals in the use of the system.
This function is usually in the IT arm of the HR department.
The HRIS analyst provides support for the HRIS. This includes researching and resolving HRIS problems and
being a liaison with other parts of the business, like finance/payroll.
HRIS Search.
implementation Start your implementation by finding out what your different stakeholders need from an HRIS. Based on
in 6 steps these requirements, you can create a list of potential providers. You can then invite these providers to make
proposals. Ideally, at the end of this phase, you’ve chosen a suitable HRIS provider.
Plan and align.
In this phase, you choose an implementation partner, create a steering committee and an implementation
team. The steering committee usually consists of senior delegates from your chosen HRIS provider, the HR
director from your organization, the internal project manager, and preferably a senior user from your
business (optional). The implementation team’s main responsibility is working on the day-to-day tasks that
come out of the implementation.
Define and design.
At this point, you need to specify your user groups and map out your processes and workflows. Define the
functional and technical requirements for your HRIS infrastructure, system, and security. Also, note that you
might need to build integration between your HRIS with other existing systems during this phase.
Configure and test.
In this phase, you need to create a core test team to test your new HRIS and provide feedback for potential
improvements. After this, you should also create a user acceptance test, where you can bring in a number of
users to provide final feedback.
Train and communicate.
Before the Go-live moment, you will need to prepare a training program for your technical staff, a
communication plan, a Frequently Asked Questions page, as well as other support documents.
Deploy and sustain.
Once all your support processes are in place, you can officially launch your HRIS. Remember to constantly
collect feedback and to update your training material in line with the evolving systems. Constant, accurate
communication is key here.
By following these six steps, you can select and implement the best HRIS for your company. Again, if you
want to go into more detail, check out the Digital HR Certification program. This program has courses on
Design Thinking in HR and on building and implementing a Digital HR Strategy. These elements are essential
when it comes to defining user requirements and implementing a software solution.
Human resources Metrics
What is a A human resources metrics is beneficial for organizations with employees reporting through more than one
human channel or to more than one leader. It’s called a matrix because it is laid out in a grid or matrix pattern.
resources For example, an ad agency that employs writers, designers, and developers likely has team members working
Metrics ? on a handful of different projects at the same time. In this instance, an organizational matrix shows at first
glance who has ownership over what projects and which stakeholders are involved.
Notice how team members are organized under their functional leaders but may be assigned additional work
by the manager of a specific project. Under the fluid and flexible style of a matrix, resources are allocated
where needed and changes can be made when priorities shift.
14 HR Metrics Time to hire.
The average length of time that it takes for you to hire a new employee, from the time of the job posting to
their acceptance of an employment offer. You can calculate this by adding up the time for each individual hire
and dividing it by the number of new hires in a given period.
Cost per hire.
How much does it cost for you to hire a new employee? This includes things like the recruiter's time, the
possible cost of listing a job on a third-party site, time spent interviewing, etc.
Employee turnover.
Every business wants to have low employee turnover rates. If you are frequently losing employees and having
to hire new ones, there might be an issue with your hiring or staffing process. Pay close attention to this
number.
Revenue per employee.
It is very easy to determine your revenue per employee. Just divide that company's total revenue for the year
by the number of employees that you have. You can also use this metric for individual departments.
Billable hours per employee.
This metric may not be applicable to every business, but it is usually relevant for businesses that offer a
professional service like marketing agencies or legal firms. Not every employee will log hours that are directly
billable to a client, so employees should track their time to allow you to gauge this on an individual basis.
Essentially, the more billable hours per employee you have, the more revenue the company is making.
Absenteeism.
Absenteeism is the amount of time that your employees are absent from work for any reason (vacation, sick
days, other). Metrics for absenteeism are given as a percentage of the total amount of available working
days.
Cost of hr per employee.
Hiring, training, and managing your workforce costs money. If you look at your hr expenditures for the
previous month or year and then factor in the number of employees on your payroll, you can determine how
much each employee costs on average for hr. This will allow you to adjust and lower costs.
Employee engagement.
Employee engagement is one of the most difficult metrics to obtain because it cannot be found using your
financial records. You can issue company-wide surveys to your employees and ask questions rated one to five
about their experience working in the company. The results can be averaged to rate your level of employee
engagement.
Cost of training per employee.
In most situations, the success of a new employee has to do with the quality of their training. Still, that
training has a cost. You need to pay people to spend time training new employees, you may need to supply
them with equipment and materials, and they may need some time before they are ready to work without
assistance. Look at your training expenditures and the number of employees you've trained to find out how
much each new trainee is costing you.
Diversity/Eeco numbers.
The diversity of your workforce is more than an arbitrary number - it could be the key to your success.
Diversity includes race, ethnicity, job type and salary. If your business is required to file an eeo-1 report with
the equal employment opportunities commission, then you should already have access to these metrics.
CHALLENGES Lack of data management/governance
OF HR Challenges that can occur as a result of the lack of data management or governance include inaccurate data
METRICS and a lack of data ownership. To counteract those challenges, it’s important to define and prioritize metrics
that you want to implement and then identify data elements in your system that will be needed to
implement those metrics. Creating a data dictionary can also be helpful because it will define the meaning,
intended use, and format for each field, which will provide a common understanding among the people that
are providing and consuming metrics. It’s also important to educate the hr population about the metrics—
when they’d be available, how to find them, what to use them for, etc.
Implementing too many metrics
Challenges that might occur as a result of implementing too many metrics include data consumption
challenges and poor perception of hr’s understanding of the business. To counteract these challenges, you’ll
need to start with an analysis of your current reports and metrics to understand what each one is tracking
and being sent to. From there, you can narrow down the audience that is receiving the metrics and decide
what should be automated and what should be self-service. It’s important to rationalize and decide which
reports and metrics are actually needed to support business functions and which are being done simply
because the data is easily accessible.
Lack of a clear or consistent definition
Challenges that can occur as a result of the lack of a clear or consistent definition include manual data
manipulation and lack of trust in data. To counteract these challenges, start with an analysis of current
reports. Gather information from your stakeholders about what data is being run, what manipulation is
taking place and why, and what challenges are coming up. From there, it’s important to establish a consistent
data definition and address any data gaps. Once you’ve established a clear, consistent definition, it’s easier to
move forward with designing dashboards, automating metrics, and creating filters.
Targets with no context
Challenges that might occur as a result of targets that have no context to current performance or process
capability include unclear expectations and recruiter burnout. To counteract these challenges, you’ll want to
start by documenting your current processes and establishing a performance baseline. From there, you’ll
want to evaluate your existing metrics and compare your baseline to your target. If necessary, you can realign
your performance measures and establish a realistic target from there. You’ll need to discuss an action plan
for how to achieve your target.