Impact of Brexit on Recruitment in the United Kingdom
Brexit, referring to the withdrawal of the United Kingdom (UK) from the European Union (EU), has had far-reaching implications across various sectors. One area significantly affected by this decision is recruitment in the UK. In this essay, we will explore how Brexit has impacted recruitment processes and practices in the country.
Prior to Brexit, the UK enjoyed access to a large pool of skilled workers from EU member states. However, with the new immigration rules and the end of free movement, the recruitment landscape has undergone a transformation.
One immediate consequence of Brexit is the tightening of immigration regulations. The freedom of movement for EU citizens no longer applies, and a new points-based system has been introduced. This has made it more challenging for UK businesses to attract and hire talent from the EU. The added bureaucratic hurdles, such as visa requirements and sponsorship obligations, have increased the complexity and cost of recruiting from abroad.
As a result, many industries in the UK are experiencing labor shortages, particularly in sectors heavily reliant on EU workers, such as healthcare, hospitality, and construction. The scarcity of skilled labor has put upward pressure on wages and increased competition among employers for qualified candidates.
To mitigate these challenges, businesses have had to adjust their recruitment strategies. They are now focusing more on upskilling and reskilling their existing workforce, as well as seeking talent from non-EU countries. Additionally, some companies have expanded their operations to other EU countries, aiming to access a broader talent pool.
Overall, Brexit has brought about significant changes to recruitment in the UK, requiring businesses to adapt and find innovative solutions to address the labor market challenges posed by the new post-Brexit environment.
Overview of Recruitment in the United Kingdom
Recruitment plays a crucial role in meeting businesses’ workforce needs, ensuring they have access to skilled and qualified individuals to drive their growth and success. Prior to examining the impact of Brexit on recruitment, it is important to understand the current state of recruitment in the UK.
Pre-Brexit Recruitment Landscape
Before Brexit, there were already existing labor shortages and skill gaps within certain industries in the UK. For instance, research conducted by Read and Fenge (2018) highlighted challenges faced by social care sector recruiters due to factors such as low wages, demanding working conditions, and limited career progression opportunities.
To address these pre-existing challenges, businesses employed strategies that included both domestic and international recruitment efforts. Cooperating with universities worldwide allowed UK institutions to attract students from former Soviet countries (Chankseliani, 2017). Additionally, companies sought talent from EU member states under free movement policies facilitated by EU membership.
Anticipated Effects of Brexit on Recruitment
Post-Brexit scenarios raise concerns about potential impacts on talent acquisition for UK businesses. One significant factor is changes to immigration policies affecting access to talent from EU countries following Britain’s departure from freedom-of-movement agreements. Johnson’s study (2019) explores how tech workers are leaving Britain due to uncertainty around future employment prospects related directly or indirectly with Brexit consequences.
One possible outcome could be a shift towards more domestic hiring as companies may turn their focus inwardly when seeking new recruits rather than relying heavily on non-UK EU talent. This could result in a revitalization of domestic talent pipelines and an emphasis on upskilling existing employees.
Challenges Faced by Businesses Post-Brexit
Post-Brexit, businesses are expected to face specific challenges in recruiting and retaining talent. Legal or regulatory hurdles may arise due to changes in immigration laws or trade agreements between the UK and the EU.
Companies will need to navigate these new complexities while continuing to attract qualified candidates who meet their requirements. They may also have to ensure compliance with evolving regulations related to work permits, visa sponsorship, and right-to-work checks.
Strategies for Adaptation
To adapt successfully to post-Brexit recruitment challenges, businesses can employ various strategies. One approach is investing in upskilling programs for existing employees, allowing them to acquire the necessary skills needed for new roles within the organization. Expanding domestic talent pipelines through collaborations with education institutions can help create a steady stream of skilled graduates ready for employment opportunities. Seeking alternative sources of international talent from non-EU countries is another option that companies should consider.
Case Studies: Impact on Different Sectors/Industries
To illustrate how different sectors/industries are affected by Brexit’s impact on recruitment, let us examine two case studies:
The tech industry has experienced a significant impact from Brexit on its labor force (Johnson, 2019). Uncertainty surrounding future employment prospects has led many tech workers from Britain towards Ireland where they perceive more stability and better career opportunities.
Similarly, the social care sector faces considerable challenges recruiting and retaining staff due to factors such as low wages and limited career progression (Read & Fenge, 2018). While Brexit adds further uncertainty about accessing overseas workers within this sector, it also provides an opportunity for greater investment in domestic workforce development efforts.
Government Initiatives and Support
Recognizing the importance of supporting businesses with post-Brexit recruitment challenges, the UK government has implemented various initiatives. These include providing guidance to companies on navigating changes in immigration regulations and offering financial incentives for upskilling programs.
However, it is essential to continuously evaluate the effectiveness of these initiatives and identify areas for improvement. Regular consultations with businesses and industry representatives can help refine government support mechanisms and ensure they align with evolving needs.
In conclusion, Brexit has had a significant impact on recruitment practices in the United Kingdom. Changes to immigration policies and trade agreements have introduced new challenges for businesses seeking talent both domestically and internationally. To navigate these challenges successfully, organizations must adapt their recruitment strategies by investing in domestic talent pipelines, upskilling existing employees, and exploring alternative sources of international talent.
While the road ahead may be uncertain, proactive measures taken by businesses, combined with effective government support, can mitigate many of the disruptions caused by Brexit’s impact on recruitment in the UK.
Johnson, D. (2019). Brexit pushes tech workers from Britain to Ireland: Confusion about the future is changing recruitment – [Resources_Careers]. IEEE Spectrum, 56(8), 18–19.
Read, R., & Fenge, L. (2018). What does Brexit mean for the UK social care workforce? Perspectives from the recruitment and retention frontline. Health & Social Care in the Community, 27(3), 676–682.
Edwards, D., Trigg, L., Carrier, J., Cooper, A., Csontos, J., Day, J., Gillen, E., Lewis, R., & Edwards, A. (2022). A rapid review of innovations for attraction, recruitment and retention of social care workers, and exploration of factors influencing turnover within the UK context. Journal of Long Term Care, 205–221.
Chankseliani, M. (2017). Four Rationales of HE Internationalization: Perspectives of U.K. Universities on Attracting Students From Former Soviet Countries. Journal of Studies in International Education, 22(1), 53–70.
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At the heart of every Human Resource Management (HRM) practice is a deep-seated concern regarding how human capital can be managed to derive the best results for any organization. One of the most critical functions and processes in HR is recruitment and selection. The importance of Human Capital and the impact it portends for companies and business organizations cannot be understated – it is the most crucial asset in every organization. As such, it follows that the mechanisms and procedures employed by organizations in recruiting talent among its ranks are an accurate presentation of how an organization intends to implement its mission and achieve its vision.
This paper examines the importance of this process in recruitment and selection, especially in the modern work environment. It does this by evaluating the standard frameworks of recruitment and selection before it explores the common trends as practiced in the modern era. It then examines the challenges faced by HR professionals within this context and concludes by highlighting some recommendations to address these challenges.
Recruitment and Selection – Getting it Right
The importance of the recruitment process in any organization is evident – recruiters ensure that an organization succeeds in achieving its goals and objectives by availing the best candidates whose competence and skills make them the best suited for the job. In this sense, recruiters are the filters that select the most appropriate candidates for organizational success. In the modern business environment—one that is continually evolving—the need to hire individuals who are knowledgeable, loyal, adaptable, dependable and skilled has become even stronger. As such, the recruitment and selection process is one of the core responsibilities of Human Resources (HR) in most organizations. This is because it is widely regarded as a process that fundamentally affects the potential for revenue growth and hence the profit margins of any profit-driven organization in comparison to other tasks like leadership development, onboarding, retention and talent management (Bhatia, 2013).
The theoretical framework under which this topic will be discussed in this paper is based on two theories – the human capital theory and Resource-Based View theory (RBV). The human capital theory contends that humans are the most important asset of any organization and that their market skills are a form of capital which essentially makes humans a type of investment (Buta, 2015). This point of view is critical especially in developing an understanding of the incentives as well as the structure of earnings and wages. The Resource-Based View theory is premised on the notion that an organization can develop a competitive advantage by creating a human resource capital which is unique to its organizational demands and which cannot be imitated by other organizations (Rothaermel, 2012). The representation is a graphic representation of the Resource-Based View theory framework.
In this paper, the task is to position the recruitment and selection process as a pivotal component of organizational success.
The Recruitment and Selection Process
Human talent is without a doubt, one of the most sought-after commodities in the 21st century workplace. Therefore, the process of searching, isolating and recruiting these talents is at the heart and soul of all organizations. Within the professional realm of Human Resources, recruitment is defined as the ‘process of searching out and attracting qualified job applicants’ (The Strategic Importance of Recruitment, 2012). Naturally, this begins with identifying the position that needs to be filled and ends when an adequate number of candidates have submitted their application forms or resumes. The strategic plan of the organization dictates the identification of job openings. In some instances, these needs can arise unexpectedly due to factors such as terminations, natural attrition, or resignations.
Once the need for hiring has been identified, the next step is to select an appropriate method that will facilitate an effective recruitment process. Some organizations prefer to recruit from within while others prefer to widen their selection pools by going outside the organization’s talent pool. Each of these methods has their advantages and disadvantages. For example, when an organization hires from within, it enhances the morale, commitment, and performance of its employees. However, when a company’s existing pool of talent does not meet the required standards, it is common for such companies to search outside. Studies show that most entry-level jobs are mostly filled by candidates sourced externally (The Strategic Importance of Recruitment, 2012). Because of the advances in technology that inform HR processes, online recruitment is increasingly becoming a popular strategy for getting external talents. Job fairs and co-operative education programs are equally powerful recruitment methods.
Once the recruitment process had ended, the next step selection involves choosing the most suitable candidate from the pool of recruiting. Methods of selection usually vary from one organization to the other depending on their demands and culture. Regardless, this process is usually complex and involves a lot of decision making. The structure of the selection process typically depends on a lot of things such as the urgency, number of potential candidates, and so on. Irrespective of the structure of the selection process, the main objectives of selection tests are: (a) prediction, (b) diagnosis, and; (c) situational behavioral assessments. (Opayemi & Oyesola, 2013).
The Selection Process
The overall selection process can be made up of several stages. This is exemplified in the diagram shown below. It is, however, instructive to understand that the steps in a selection process vary depending on many factors that will be discussed herein.
According to Alsabbah and Ibrahim (2013), Kamran, Dawood, and Hilal (2015), the structure of the selection process differs from one organization to the other and mostly depends on a company’s needs. In most cases, however, the selection process comprises several stages which are:
Evaluation – the evaluation stage entails applicants submitting their applications usually in application forms. The information contained in these forms include the name of the candidate, age, education, experience, expected salary, hobbies, and references, etc. the applicants who apply are the called shortlisted candidates.
Preliminary interview – in this stage, the shortlisted candidates are invited for the interview. Their personal interests, career goals, objectives for applying, and general attitudes are evaluated. Those who meet the basic standards proceed to the next stage.
Selection tests – in this stage, the candidates are subjected to written examinations. Different types of selection tests can be used depending on the nature of the job, responsibilities, and the number of applicants. Some of the typical selection tests are intelligence, personality, attitude, interest and professional examinations. Qualification and skills are also assessed in this stage. The goal is to select candidates who meet the minimum requirements.
Selection interview – this interview usually is more comprehensive compared to the preliminary interview. In this stage of the selection process, the candidates are subjected to face-to-face interactions where critical aspects such as speech delivery, intelligence, motivation, and the capacity to understand a problem are evaluated. The candidates are interviewed on questions directly related to the job to gauge their suitability. These interviews can be structured, semi-structured or unstructured.
Reference check – this is a background information check usually done to confirm the information provided by the candidates are true.
Decision-making – this is usually the final step in which candidates who have succeeded in the above steps are presented with appointment letters. These letters contain information on job description, salary, benefits, accountability, authority, and etcetera.
Validity and Credibility of Selection Tests
The validity and credibility of the selection tests go a long way in determining the caliber of employees that will be hired. The overall goal is to hire employees who are the best fit in relation to the job and for this reason, it is imperative that the selection tests are rigorously analyzed using up-to-date credibility tests. In this regard, the reliability of selection tests can be examined using three different methods (Opayemi & Oyesola, 2013):
Over time – the outcome should be the same throughout the testing period.
Across different sample – the outcome from a group of employees ought to be the same during the testing period.
Across different rates – this test compares the results from two (or more) independent raters. A consistent rating throughout the testing period indicates that the selection test is reliable.
Similarly, validity tests simply evaluate the correctness of the selection test. The practice is that the candidates who emerge with the best results should be able to perform equally as well in real working environments. In other words, validity tests measure job relatedness. The commonly used validity tests are: (a) content validity, (b) concurrent validity, (c) predictive validity, and; (d) construct validity (Bertua, Anderson, & Salgado, 2005). The details of these validity tests are beyond the scope of this discussion and therefore will not be discussed herein.
The Importance of Recruitment and Selection
Since a comprehensive summary of the recruitment and selection process has been provided in the preceding paragraphs, this paper now focuses on the importance of the recruiting and selection process. As such, the proceeding analysis will categorize the four significant implications for the recruitment and selection process into (i) costs, (ii) retention, (iii) productivity and loyalty, and; (iv) legal issues.
A common perception among HR professionals is that a lot of money and effort goes into managing employees and this sometimes leads into a situation where organizations end up over-staffing or understaffing for its organizational needs. Logically when the number of employees in a department is higher relative to the need for which they were employed, then the company will incur higher operational costs in maintaining such as department (Ekwoaba, Ikeije, & Ufoma, 2015). In the long run, this will diminish the earnings of the company. Conversely, when an organization understaffs a department such that critical positions are left unattended, then the organization also faces the risks of incurring losses because of reduced revenue earnings.
Today the traditional concept of hiring where all job vacancies were treated equally has shifted to one that prioritizes the hiring process as one based on criticality. The objective of this style is to create a perfect balance between work that needs and employees in a manner that is sustainable for the company. Moreover, the process of recruitment and selection places more emphasis on selecting and ultimately hiring the candidates that exhibit the highest level of competency and skill (Ekwoaba et al., 2015). As such, the cost of hiring a candidate has a direct implication on the company, and as demonstrated in most cases, weak hiring mechanisms do place higher costs on the organization (Ekwoaba et al., 2015).
A weak hiring system is likely to bring in employees with high failure rates. This happens when a newly hired employee(s) voluntarily quits or is terminated within a few months irrespective of their performance. Weak hiring systems thus create a situation where a company can repeat the recruitment and selection process for the same position repeatedly – a scenario that increases the costs of damages incurred by the organization (Ekwoaba et al., 2015).
As technology continues to be more and more integrated into the management of businesses, most companies are going the extra mile into not only using job recruiters who possess business acumen, astute judgement, and an ability to foresee the crucial factors that will likely impact the growth requirements of their organizations, but also supplementing their effort with talent management and recruitment software to facilitate the efficacy of the recruitment and selection process (Bhatia, 2013). The use of tried and tested technology is thus a practical recommendation that is expected to reduce the inefficiencies of human-led recruitment and selection processes significantly.
Productivity and Loyalty
These two entities are linked – an employee who feels connected to the organization will work hard to help it achieve its objectives. On this basis, it is the recruiter’s responsibility to ensure that they get as much details from potential employees in order to sufficiently analyze their strengths and weaknesses. These pieces of information can be obtained from the candidates if the recruitment and selection process employs strategic mechanisms for achieving this goal. In general, loyal employees demonstrate a track record of competitiveness, innovation, excellence which cumulatively results in increasing the profitability of the business.
The most common legal problem that arises from recruitment and selection processes is discrimination. Discriminatory practices often have dire consequences on the reputation of an organization and sometimes can also have financial implications. In the United States, for instance, the department of labor expressly prohibits discrimination based on religion, race, sex, political affiliation, and many other features that have often been used in facilitating discriminatory practices (Saez, 2018). In the end, recruiters are required to implement checks and balances to ensure that their methods are beyond reproach. For example, most organizations advertise only the basic requirements for the job. In recent years, the practice of listing language proficiencies and physical capabilities has gradually been phased out unless they are inherently vital in the position (Heneman III, Judge, & Kammeyer-Muller, 2015). Some organizations also encourage the recruitment and selection process to be run by more than one recruiter.
Practices and Trends in HR
The standard practice in many HR functions seems to be that most organizations do not concern themselves with the Return on Investment (ROI) especially when it comes to their human capital. Most organizations are guilty of perpetuating a recruitment process that does not measure the impact that its employees have on the organization. This is compounded by the trend among organizations not to document or make reports on their recruitment process. Furthermore, there is no accountability on HR regarding the opportunities missed and the costs incurred during the recruitment (Cascio, 2016). But as focus on strategic activities of HR departments continue to increase, an ever-increasing number of organizations are becoming more interested in calculating ROI on recruitments. As such, the activities and functions of HR are increasingly being assessed in a bid to quantify their outcomes and results.
Admittedly, calculating the ROI on recruitment is not an easy process because of the high numbers of variables involved. But since it portends critical implications on the activities of the whole organization, this is a task that every recruitment manager needs to perform. To achieve this, the manager should (Thoo & Kaliannan, 2013):
Define the objectives of the recruitment in terms of the results that should be achieved.
Devise mechanisms to accurately measure critical aspects of the recruitment process such as time of hire, the effectiveness of recruitment source, and the cost-of-hire.
Establish a precise estimate of the costs of the recruitment project.
Calculate the intangible and tangible benefits the organization will accrue, including payback period, from the recruitment.
Ensure that recruitment managers are well trained.
The ability to evaluate the recruitment process in terms of ROI is fundamental for organizations that desire to strengthen their HR processes. This is because it significantly improves the recruitment function and develops a strategic human capital advantage for the company (Thoo & Kaliannan, 2013). But even as employers pile the pressure on HR professionals for increased accountability, experts contend that recruiting trends are getting more and more competitive. The main trends that have dominated talent acquisition in recent years are branding, repairing the potential candidate’s experience, maximizing talent analysis, and venturing into untapped sources (Maurer, 2016). They are also aware that getting real talent is getting harder and this is forcing companies to reinvent their strategic approaches to talent acquisition. The year 2015 beckoned the beginning of thoughtful attitudes in recruitment, but this approach will only pay off for companies and organizations that focus on important success determinants.
Employers are expected to improve their branding if they are to attract highly qualified job seekers who themselves are becoming increasingly selective about companies. The onus is on employers to make themselves attractive to potential employees, and this means availing as much information as they can about the organization, its culture as well as corporate values. Some organizations have taken this a notch higher- they are using employees’ photos to showcase their culture, training opportunities, and key benefits associated with working with them (Maurer, 2016). This practice is supported by the notion that employees are the best brand ambassadors any organization and as such, their stories do much more compared to the company’s mission statement.
Another trend that is expected to continue is the use of talent analytics. Talent acquisition professionals are under increasing pressure to demonstrate ROI in the recruitment process. This has forced them to move away from traditional methods of recruitment that were primarily based on instincts and instead focus on techniques that can convert everyday data into actionable information that can guide decision-making (Maurer, 2016). With the advent of HR data scientists, data science in HR has become a fundamental aspect of the recruitment process.
Most companies are going beyond routine operational measurements like cost-per-hire, source-of-hire, and time-to-fill to mine more in-depth metrics on talent (Morgan, 2018). Some organizations have turned to data analytics to analyze competitors’ talent pools with the aim of finding the candidates with the skill-set that they want and which can be convinced to join their organizations. The use of talent data analytics essentially captures the whole-person analysis in determining whether potential employees have the experience, competencies, drivers, and traits to bring additional value to an organization.
Employers have widened the scope of their talent search by venturing into new sources. Cross-industry hiring, for instance, is believed to make persons who have worked in various fields acquire experience that could come in handy. These types of employees also carry with them a wealth of cultural diversity that is especially appealing for new companies (Maurer, 2016). Nevertheless, internal hiring is likely to be embraced going forward because of the advantages it has over external hiring. According to Bryne Mulrooney, the CEO of a company that specializes in recruitment, internal sourcing has a shorter hiring-to-productivity time and considerably lowers staffing costs, which in the long run translates into better financial performance. This system also promotes talent development – a feature that keeps employees motivated as they become more valuable to the organization as the knowledge they acquire compounds with time (Maurer, 2016). The consensus is that the hiring process has changed fundamentally and in addition to personality and aptitude, experience is increasingly being seen as one employee feature that can be adjusted.
Repairing the candidate experience is another trend that most organizations are quickly catching up on. They try to create positions that can be filled with candidates with the right combination of skills and competence. Failure to maintain contacts with employees, minimal engaged by recruitment during the recruitment process, and tedious and lengthy application process do leave candidates and employees feeling unappreciated.
Elaine Orler, the CEO of a talent acquisition consultancy firm based in San Diego, opines that every touch point starting from the application process to the interactions with the schedulers to interviewers’ preparedness to turnaround time, creates an impression in the candidate about the employer (Maurer, 2016). The well-coordinated these experience are the higher the acceptance rates of a firm considering that highly skilled candidates will most likely be juggling job offers from different companies. In short, recruiters are expected to give candidates white-glove treatment whether they succeed for the job or not for it increases the interest of the candidate to apply when another opening comes up.
Technology is slowly but gradually being integrated into the talent acquisition processes. Cross-platform expansion and technology consolidation are becoming increasingly streamlined as organizations shift from multiple vendor systems to conflating their tracking systems, management of their human capital, and video conferences into one platform (Maurer, 2016). While this process is admittedly coming along at a slow pace, its impact in HR processes stands to be significant. Nonetheless, conventional talent management suites have also been expanding and increasing their recruiting potential. But while the recruitment and selection would seem, in principle, to be a straightforward HR process, the reality is much different in practice. The following section outlines some of the common challenges faced by HR recruiters and the possible solutions that have been proven to help in alleviating some of these problems.
Common Challenges in HR Recruitment and Selection
The recruitment process is widely seen as a procurement activity designed to identify and hire the best candidates for a job. On the part of recruiters, this directs attention to their expertise, business perspective, and ability to make decisions that are beneficial to both the organization and the individual. The challenges start from the type of recruitment method to use – whether to use internal or external talent pools. The ever-evolving job market dynamics with regards to technologies, recruitment sources, competition and etcetera compounds the range of problems that HR professionals encounter. Furthermore, in a job market that is already saturated, recruiters are constantly faced with new challenges that they ultimately need to overcome in order to get the best candidates in line with the requirements of the organization. While these problems are unmistakably unique to every organization, the primary challenges faced by recruiters are:
Adapting to globalization – the HR professionals are typically required to keep pace with changes happening in the within the realm of Human Resources across the world (Thoo & Kaliannan, 2013).
Minimum motivation – the view of most HR professionals is that recruitment is a thankless job because they seldom get the appreciation and recognition they believe they deserve for getting the best candidates and top performers for the company especially when the impact of these candidates is tangible across the performance spectrum (Thoo & Kaliannan, 2013).
Process analysis – most companies demand a flexible, responsive, cost-effective and adaptive recruitment process that is timely and able to cater to the company’s requirements (Thoo & Kaliannan, 2013). Nevertheless, such companies might not be investing in attaining such systems.
Strategic prioritization – HR professionals are often required to make strategic moves when performing their recruitment and selection functions. This is to enable them to exploit the opportunities that arise from the challenges that come with new systems (Thoo & Kaliannan, 2013). As such, reviewing staffing needs and prioritizing tasks in line with markets demands has in recent years emerged as a critical challenge for these professionals.
Workforce diversity – while ideally, diversity is a good aspect of an organization’s workforce, sometimes integrating people from different cultures and backgrounds do present significant challenges for HR professionals (Kamran et al., 2015). If this aspect is not managed correctly, it does escalate conflict levels in an organization and ultimately impairs the ability of the organization to achieve its goals.
Government policies – this is an external challenge that most HR departments have to acknowledge. Government policies can limit the operations of HR and certainly has implications for organizational demands and needs (Kamran et al., 2015).
The recruitment and selection process varies from one organization to the other, and this variance can be as a result of many factors such as the size of the company, corporate culture, objectives, and etcetera. Be that as it may, the importance of the recruitment and selection process in helping in the attainment of organizational goals and objectives has been adequately substantiated in this paper. The fundamental role of the recruitment function is to avail the best candidates for the organization, and the benefits that are associated with an effective recruitment process are numerous ranging from cost reduction, elimination of potentially catastrophic discriminatory practices, enhanced employee productivity and retention, and compliance with legal requirements.
However, recruitment is not a simple, straightforward exercise – it is hampered by a wide array of challenges that make the role of HR professionals increasingly tedious. The current trends in HR practices as discussed in this article enumerate some of these bottlenecks and the potential ramifications they portend to any organization. Furthermore, as the job market becomes more and more saturated, talent acquisition is becoming a much harder objective to meet. HR recruiters have been forced to employ somewhat unconventional methods to keep up the ever-evolving corporate landscape. And as these challenges continue, HR professionals are facing increased calls for accountability – an aspect that has created a need to adopt more empirical-based approaches in the recruitment function as more organizations demand favorable ROIs on the investments on their human capital. With this in mind, below are some of the recommendations that could significantly address the issues in HR recruitment.
At the elementary level, recruitment and selection process should be well-defined in order meet its critical objective – tapping the best talent. It is also vital that the response time during the whole recruitment process is reasonable relative to the time frame provided in order to minimize the chances of losing potential employees to rival companies. The methods used in this crucial process should be versatile but effective. With the advent of social media and the World Wide Web, there are numerous sources of talent pools that can be exploited by recruiters.
The conventional stage-by-stage interview like the one discussed in this paper are time-intensive and are less cost-effective. A practical interview strategy like panel interviewing would portend better returns in the short term since it is less time-consuming. However, it might not be effective in identifying the most appropriate candidate. A well-structured recruitment process that is clear on the type of candidate the organization wants and which is within the cost and time constraints may be a better alternative. The uniqueness of organizational needs and demands means that there is no one-size-fits-all strategy with regards to recruitment and selection.
Some challenges such as lack of motivation, strategic prioritization, and process analysis boil down to organizational policy. But HR professionals should be able to demonstrate that with better corporate policies, their processes can yield better ROIs for the organization. As such, HR should play a core function in the design and implementation of these policies. The integration of technology in recruitment should shift focus to empirical-based methods rather than the traditional methods which were more instinctive.
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Did you find any useful knowledge relating to recruitment and selection in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
This essay is based on a recruitment plan for a manager trainee position in an American based company known as Enterprise Rent-A- Car. It highlights the road map for staffing a manage trainee’s position. A good plan enables a company to hire qualified employees who are committed to attain successful personal careers as well help in attaining the company’s objectives through hard work. Enterprise Rent-A- Car Company is a top car rental company in the United States of America under the management of Enterprise Holdings, Inc (Rent-A-Car Par. 1). It is the best place for management trainees to start careers as per the Business Week’s listing in the year 2006.
The company’s business strategy mainly focuses on customer satisfaction. This has contributed to the company’s fast growth over the past decades. In the Company group, there is National Car Rental, WeCar, Alamo Rent-A-Car and RideShare among others. Its business model provides a variety of vehicle classes that are available for renting. Most of its vehicle models are bought from General Motors. The culture of Enterprise Rent-A- Car Company stands on the following core values: good brand name, honesty, fun, hard work, listening to customers, community development and inclusion of globally sustainable activities.
The company was founded in 1957; it has been ranked the best in customer satisfaction particularly in airport rentals over the past eleven years. It is the provider of vehicle on rental basis to NHL and NCAA among other big transit companies. The company is prominent as the largest fresh college graduate employers in the United States of America, Enterprise Rent-A- Car Company’s management structure is majorly informal. It allows the employees from all levels to interact freely. Enterprise Rent-A- Car Company has branches worldwide including USA, Canada, Germany, Ireland and the United Kingdom (England, Scotland, Wales and Northern Ireland) with more than 70,000 employees all over the world (Rent-A-Car Par. 3).
Enterprise Rent-A- Car Company’s global presence helps the company to access larger market share thus high revenue for the company. During the recruitment plan exercise, attention should be given on how to staff such a sensitive position due to its key roles and responsibilities as pertains to a trainee manager. There are consequences and implications of having low performers in the position. For instance, a low performer can lead the company sales revenue reducing drastically, this can be as a result of market share loss. Implications of having high performers in the position include, rise in the percentage market share due to the innovative nature of the employee, this ensures high revenues for the company. The company should have a strategic context for future proposal for recruiting and selecting for this job. This is due to the dynamic nature of the rental car business as there is more use of information technology as seen it the case where the customers book for a car through the company’s website. Such services recommend employees with substantial knowledge on the use of such eCommerce platforms.
Description of the staffing system used by the company for the job
Enterprise Rent-A- Car Company uses both external and internal recruiting systems. External recruitment planning involves news paper advertisements, recruiting on campus, referrals among others. The advantage of using this system is that it gives the Enterprise Rent-A- Car Company new and varied approaches from its employees despite such a process being so expensive to undertake. On the other hand, internal recruitment is where the current employees can be promoted or demoted to fill the positions. This has an added advantage since it is a cheaper way of recruiting employees to fill positions within a company.
Perform the job/ competency analysis on the job in present and in the near future
Job analysis is the procedure followed when analysing a job for its specification and description. This comprises a list of qualifications required to be attained by the recruits and elements of that given job respectively. Job analysis is also used to evaluate employees to determine the level of incentives to be awarded. During job analysis the recruitment teams are able to come up with recommended qualifications for the job. Here are the possible qualifications essential and desirable in new hires in the position of a manager trainee for Enterprise Rent-A- Car Company;
Bachelor’s degree with a minimum of six months sales experience, customer service, excellent supervisory skills as most of the roles involve supervising others within the company.
Good leadership experience probably as a student leader in college.
A valid driver’s license is a MUST.
No drug related conviction for the last three years while driving.
Must be above 18 years.
Must be authorized to work in the country where he/she wants to work.
Must be flexible to work anywhere when posted.
Sourcing of Potential Employees
Advertisements for job vacancies are made through mass media. College recruiting is commonly used by Enterprise Rent-A- Car Company as a source of labour, this is either done through face-to-face interviews or applications through Enterprise Rent-A- Car Company’s website. Other sources of labour are current employees, referrals from employees, former employees, former military, customers, print and radio advertisements, internet advertising and social media, employment agencies and temporary employees. The above named sources are also the future labour supplies for the position.
Appropriate recruiters are chosen to perform the task of selecting the right candidate for the job. The reward system is essential for this group of people in order to ensure that the recruiting process is successful. Human resource planning is essential during the selection process, in order to achieve this objective the past staffing levels, change in technology, the activities involved during staffing and other similar information are essential for the planning process.
The gaps between employees’ current supply and future labour demands of an organization helps in forecasting employee competencies and behaviour needed in the organization’s future. Present sales revenue are also used in strategic human resource planning future numbers of employees and the skills needed and the source of such people. Cultural diversity affects the labour cost, ease in human resource acquisition, flexibility, innovation, and problem solving techniques in the company as it adapts multi-cultural awareness and effective interpersonal skills into the workplaces. This is essential for multinational companies like Enterprise Rent-A- Car Company.
Internal Employee Assessment Plan
Employees’ job analysis is performed to provide employees with their performance results, these results can be used to distribute compensation as well as during training activities but more importantly to find potential candidates for any vacant positions. Any feedback should be delivered to the employees through the three approaches: telling and selling, telling and listening and problem solving (Pride, Hughes and Kapoor 62). Employee assessment results are important when downsizing an organization, the reason for the layoff should be clearly defined to the worker. This should be communicated to the new employees to avoid any legal issues. Legal precautions should be considered to avoid law suits for instance there should be a termination agreement. Right sizing of the company employees should be done to improve the employees’ efficiency this will as well reflect on the future labour demands of the company.
How decision-making plan enables the company to comply with Equal Employment Opportunity and other legal requirements
Good decision making procedures enable the company to avoid lawsuits as there is a well defined selection technique that avoids discrimination in any form say in terms of sex, race, religion or nationality. Age discrimination Act of 1967 which was amended in 1986 to eliminate discrimination against older people above the age of forty can be avoided through good decision making plans. Organizations with good decision makings plan help in selecting even the candidates with disabilities thus avoiding law suits from such people under the Americans with disabilities Act of 1990. Affirmative action by the company to encourage members from the minority groups to apply for jobs and hiring of qualified candidates from such groups can be achieved through effective decision making processes. The occupation safety and health Act of 1970 to protect the employee’s working environment to prevent ill health and loss of lives can be included in the terms and conditions of a company contract during decision making (Pride, Hughes and Kapoor 102).
For effective and comfort of the new worker in Enterprise Rent-A- Car Company he/she will need information on how business is conducted in the organization. Furthermore the new employee will need information on; how daily routines are conducted within Enterprise Rent-A- Car, its history, objectives, activities and products. Lastly the new employees are given the company policies, rules and regulations not forgetting their rights and benefits (Harold and Heinz 48).
It helps to cross check the costs of the selection process, the costs include; time spent during the process, salaries for recruiters, advertisement costs and recruitment expenses. Evaluation of the recruitment plan process can be based on the rate of application sent out, number of shortlisted candidates, performance of the shortlisted candidates, the total cost of the process, time lapsed data and reviews on the projected on the entire process. There are a number of recruitment evaluation methods; number of successful inquiries, the number of candidates at every stage of the recruitment plan process, the final number of candidates recruited and the number of the new employees retained in the organization for more than a half a year (Aswathappa, 2007).
Barriers of effective implementation of a recruitment plan
Perception; due to the difference in the way people perceive ideas, implementation of a plan can be a problem if the involved parties have different frames of reference. This may result in disagreements hence delays in its implementation. For example the members of a recruiting committee may not rate the recruit equally. This can result in a conflict when choosing the final list of the successful candidates. What is fair to one person may seem to be unfair to the other resulting to an unfair process, when people are recruited on an added advantage of their age, religion, region, race or gender among others.
Immobility and location; the locality of labour affects the recruitment plan process, marred women hesitate taking jobs in places far away from their families. This might result to inadequate number of female recruits thus affecting implementation of a gender equity recruitment plan. (Aswathappa, 2007)
Reliability; if a method cannot provide consistent outcomes whenever it is used to recruit employees, however, this might not be the case for some plans hence inappropriate to implement them. The performance and judgments of people varies from time to time as in the case of recruits and recruiters respectively. This means that if such a plan is used repeatedly with the same people involved the results are likely to vary from time to time.
Validity; A valid recruitment plan is easily predictable, but when the predicted results do not match the real situation then implementation of the stated plan may not be recommendable. This is as a result of internal and external factors such as location, trade unions regulations and paucity of desired expertise in the available labour force.
Pressure; if compulsions are used to select candidates, then such a plan may not be used due to the pressures from friends, family and politicians to select the stated candidate (Aswathappa, 2007). This means that even if the procedures where to be followed the results are always predetermined by such factors.
Aswathappa, K. Human Resource and Personnel Management. New Delhi: Tata McGraw-Hill Education, 2007.
Harold, Koontz and Weihrich Heinz. Essentials Of Management. New Delhi: Tata McGraw-Hill Education, 2008.
Pride, William M., Robert J. Hughes and Jack R. Kapoor. Foundations of Business. Boston: South-Western Cengage Learning, 2011.Print
Rent-A-Car, Enterprise. Enterprise Rent-A- Car. 2012. 22 November 2012
I do hope you enjoyed reading this recruitment plan blog. There are many other titles available in the HRM Dissertation Collection that should be of interest to human resource management students and CIPD professionals. There are many dissertation titles that relate to other aspects of HRM such as employee engagement, HRM Theory, absenteeism, training and development to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
Title: Recruitment And Selection Dissertation – A successful occupation in Human Resources Management (HRM) begins with your ability to draw the best candidates for any given vacancy. There are many principles, issues, trends and legislative requirements that will improve your organization’s recruitment and selection processes. Improve your overall business effectiveness and prevent potential HRM issues from the outset by identifying, reaching and employing the people best suited to your organization. I hope you find this post on Recruitment And Selection Dissertations useful.
GE Consumer Finance is concerned with card and payment protector insurance for private label credit cards. They have over 10 million active cardholders with their major clients consisting of the Arcadia Group, House of Fraiser, Debenhams, and Harrods. GE Consumer Finance has 5 different departments: Auto, Risk, Operations, Front End and Finance. Auto consists of the sales centre, Risk involves quality and legal aspects, Operations is concerned with collections, call centres / customer services and new accounts, Front End is concerned with marketing, card services and client management and finally Finance incorporates all the IT processes.
Psychometric tests are tools which have been developed by psychologists in order to gain an insight into aspects of human psychology that are not immediately apparent. Psychometric tests can work very differently from each other. Some, for example, are purely concerned with looking in detail at a particular individual and how that individual sees their world. These are known as idiographic tests that allow therapists to gain insight into an individual’s ideas or problems. Other types of psychometric tests are used to compare individuals with each other and therefore involve measuring individuals on scales. These types of psychometric tests are known as nomothetic tests and it is these tests which are used in employee selection which is the focus of this study.
Psychometric tests consist of personality tests and ability tests. The focus in the selection process at GE Consumer Finance is on the ability tests. Ability tests are concerned with innate mental facilities. They are designed to test intelligence, skills and aptitudes. Due to the high validity, they are used widely in the selection of employees. There are many different types of ability tests such as job specific tests, for example short hand tests for secretarial positions, or more general tests, such as verbal, numeric, spatial and perceptual skills. This dissertation focuses in particular on the verbal and numeric tests that are used in the selection process at GE Consumer Finance.
Currently at GE Consumer Finance, the verbal and numeric tests are used as part of an assessment centre for candidates applying to the company. The group of candidates that this dissertation focuses on is Interns. Interns are undergraduates who are employed by the company for one year as part of their university course.
They are incorporated into the company and are on a salary. They are usually given a mentor when they start to enable them to integrate into the organisation with as much ease as possible. Interns have to apply for their position in the same way as everyone else. They are required to attend assessment centres where they have one to one interviews, ability tests and group tasks to carry out. They are marked on a range of aspects and the results from these various selection methods are gathered together and used in order to make decisions as to who is best for the job. It is the use of the ability tests in the selection process for interns that is being investigated here in terms of whether they add value to the process.
This will be done by conducting interviews with assessors from the various departments in the company in order to find out what the current system of ability tests entails and their opinions on the areas. Ability tests scores for the interns will then be obtained and these will be compared to their current performance in order to determine if the tests were able to successfully predict job performance. Finally, if necessary, suggestions will be given as to changes that are required in the company.
In recent times, some development took place in recruitment and selection practices. These include the E-recruitment which is a good way to deal with some problems that arise during recruitment and selection practices. E-Recruitment is very effective for all organisations but those that fall under the IT sector in India need further development because the older practices are not good enough to find capable candidates for organization. New techniques should be found to screen capable candidates. Similarly, small companies are now looking to stand and compete with big firms. These small organizations are conducting more researches in recruitment and selection practices. Aligning the current HR practices with the global standards is indispensable for survival in highly competitive business environment.
IT firms have to chose and recruit highly sophisticated and capable candidates. Small firms could use recruitment and selection methods in a better way as compared to multinational firms. As previously mentioned, recruitment practices and processes were not effective for many IT firms. Also, in recent times, new development in HR practices will provide a good chance to small firms to play their role more effectively in industry and establish a strong position in the field of human resource practices. In the past, small organizations were not getting positive attention for their recruitment processes. The small and medium IT firms overlooked the importance of best HR practices. An effective recruitment and selection process plays a vital role to enhance the success ratio of a small and medium business organization lacking a good HR structure and framework.
Many management article reviews provide evidence of poor follow up of best recruitment practices. Furthermore, only a few out of the two hundred academic HR journals take small organisation as a research sample and conducted any research on recruitment and selection practices in small organizations. An observation suggests that small organizations like to have an informal recruitment procedure. On the other hand, big organizations like to go with formal way of selection. A formal way of selection attracts more and more job applications and gives wide and better options to HR team screen out suitable candidates for the available job.
Recruitment and selection forms a core part of the central activities underlying human resource management. It frequently forms an important part of the work of human resource managers or designated specialists within work organisations. However, and importantly, recruitment and selection decisions are often for good reason taken by non-specialists, by the line managers. There is, therefore, an important sense in which it is the responsibility of all managers, and where human resource departments exist, it may be that HR managers play more of a supporting advisory role to those people who will supervise or in other ways work with the new employee.
As Mullins (2010) notes that ‘If the HRM function is to remain effective, there must be consistently good levels of teamwork, plus ongoing co-operation and consultation between line managers and the HR manager’. Recruitment and selection is often presented as a planned rational activity, comprising certain sequentially-linked phases within a process of employee resourcing, which itself may be located within a wider HR management strategy. The overall aim of the recruitment and selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company.
The recruitment and selection process constitutes the most important aspects of HRM because the cost of poor Recruitment and selection process is tremendously high. If an organisation fails to select right person, it has to suffer as long as those persons in the organisation. Moreover, the quality of service is strongly influenced by the recruitment and selection process of the organisation concerned. Sunseekers Tours Limited is not an exception to this truth. It recruits different categories of professionals who influence the company’s products. Recruitment and selection are two important aspects of the overall manpower planning of Sunseekers Tours Limited.
Generally, Manpower planning is the process by which an organisation ensures that it has the right number of people with right skills at the right time. The objectives of manpower planning are to ensure the use of human resources currently employed and to provide for future manpower needs of the organisation in terms of skills, numbers and ages.
Research on HR functions shows that recruitment and selection is the most important function performed by HR professionals and ineffective performance of this HR function results in serious business related issues. The HR management process of the company starts with recruitment and selection of team members after that orientation and appropriate training is given to the employees according to the job requirements and after training the employees will be working in their respective departments for which they were hired. If the HR department will not recruit quality employees according to the organizational requirements then the cost associated with the recruitment of the employees will be wasted.
The organizational resources will not only be wasted but also the employees which are being recruited will become a burden on the organization. Therefore, it is essential the HR professionals who are involved in the recruitment and selection function are capable enough to ensure scrutiny of the best candidates from the available pool so that those employees can play their part in the growth and development of the business. Academics have highlighted the importance of the recruitment and selection function by stating that the role of the recruitment function in the organization is same as role of the heart in the human body. The heart is supplying blood to different parts of the body in order to ensure the effective functioning of the human body and same the case with recruitment function as it is providing human capital to different departments of the organization.
If the heart in the human body will not supply blood to different parts of the human body effectively according to the requirement then the human body cannot be alive. Similarly, if recruitment and section function of HR department is not providing effective people to different sectors of the organization then it would be impossible to ensure the survival of the firm. An important aspect which needs to be considered before finalizing the recruitment strategy of the organization is organizational resources because if the organization does not have sufficient resources then the desired outcomes of the recruitment strategy cannot be achieved. Therefore, it is important that leadership of the organization should consider the different aspects before formulating and implementing the recruitment strategy because of its serious impacts on the organizational outcomes.
Research shows that a well developed recruitment strategy of the organization can results in significant improvement in business outcomes. Therefore, organizational focus in order to ensure the effective performance of the recruitment section function will impact the business of the organization positively and will support the management in the long run because employees being recruited by the HR professionals could be working in the organization for a quite longer period of time and if they are capable then they will be a source of continuous profit for the organization in the long run.
Recruitment and selection is the most important part of the HR planning of the firm and can assist the management in order to achieve competitive advantage over the competitors by ensuring the availability of high performing individuals. The recruitment and selection function not only hires the high quality individuals to achieve business objectives but also creates a pool of candidates which are readily available to take up the business challenges.
The recruitment activities are also helpful in selecting the high profile individuals for the firm. By realizing the increasing importance of recruitment and selection function of the firm and its direct link with the organization’s objectives, the researcher has selected this topic. Another important reason which motivates the researcher to select this particular topic is that there are few researches which are focused on the implementation of recruitment strategies in the retail industry. This research will provide a broader perspective about the recruitment and selection function and importance of effective implementation of the recruitment strategies.
This dissertation consists of total five chapters which include Introduction, Literature Review, Research Methodology, Research Findings and Conclusion and Recommendations. In the first chapter of the study, an introduction about the importance of the recruitment and selection activities of the organization is provided and the researcher has tried to identify the link between recruitment activities and business profitability of the firm.
The background of the study is also provided by the researcher in the first chapter of the study and the researcher states that that recruitment activities of the firm are not only helpful in fulfilling the staffing needs but it also help to improve the employee retention level and minimizes the staff turnover.
The research objectives and questions of the research are also provided in the first chapter of the research. In the second chapter of the research, the investigator has presented a literature review and the conceptual framework of the study. The point of views of different authors are presented and discussed in the second chapter of the study. In the third chapter, the research methodology is presented and the researcher has presented the different research methods which could be deployed in order to conduct the research and collect the research information. In the fourth chapter of the study, the final research findings are presented and analysis of the first hand information is discussed. In the last chapter, the final conclusion of the research is presented and researcher has also provided some recommendations in the last chapter of the research.
I do hope you enjoyed reading this post on HRM recruitment and selection dissertations. There are many other titles available in the HRM dissertation collection that should be of interest to human resource management students and CIPD professional. There are many dissertation titles that relate to other aspects of HRM such as employee engagement, HRM Theory, absenteeism, training and development to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.