Human Resource Management - Case Study BM701DL

Buckinghamshire New University

Module Title: Human Resources Management

Module Code: BM701DL

Student ID No: 21125373

Dissertation Title: Case Study of Hi-Tec International

Module Co-ordinator / Tutor: Dorothy Smith

Word Count: 2659

Submission Date: 17th September 2011

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Human Resource Management - Case Study BM701DL

Table of contents Page Number Executive Summery 1. Question1: How effectively Hi-Tec can move In recruitment without justifying Unnecessary spending 1.1. Issues 1.1.1. Recruit fresh graduates and train them 1.1.2. Advertisement in national newspapers 1.1.3. The use of head hunters 1.2. Solution 1.2.1. Fix Internal issues 1.2.2. Internet Recruitment 1.2.3. Employee Referrals 1.2.4. Make Every Employee a recruiter 1.2.5. Collaborate with a university 1.2.6. Make on the spot offers 2. Question 3: Improve retention of staff who Leave shortly after joining 2.1. Issues 2.2. Solution 2.2.1. Analyse reasons for turnover 2.2.2. Improved Selection techniques 2.2.3. Increased learning and development opportunities 2.2.4. Revised the way staffs are rewarded so their Efforts are better recognised 2.2.5. Made changes to improve work life balance 2.2.6. Increased pay 3. Conclusion 4. References 5. Bibliography 15 15 16 16 17 9 11 11 13 14 14 3 3 3 4 4 6 6 7 8 8 9 9 3 3

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Executive Summery

Hi-Tec is one of the fast growing international companies founded in the mid -1980s in the USA. Head quoted in the UK and employees over 30000 people in 60 counties and generating a massive $19 Billion annual turnover. I-Tec specialises in the provision of computer hardware and software solutions to cooperate sector and capitalize on their use of the internet. It provides both standard and bespoke solutions to customers. The key competency of the business is its ability to innovate in highly specialised and competitive markets it operates. Hi-Tec has got very competitive skilful people and some leading international names in internet technologies. The company pays top rate salaries, annual bonus, discounted stocks, pension, health and life insurance to its employees with a very attractive working environment. This has created the company a desirable place to work for resulting labour turnover levels to be low as 5%.

The business has doubled in size every year. This has created an issue in finding required skills to meet the expansion needs. Below evaluates how effectively Hi Tec can approach to overcome this challenge.

1. Question: 1How effectively Hi-Tec can move in recruitment without justifying unnecessary spending

1.1Issues 1.1.1Recruit fresh graduates and train them This have not provided good results as it takes some time to learn a set of skills by new comers , at the time they do the leaned skills have made redundant by a new technology. Very few will make a carrier in the company out from this and most struggle and fail.

1.1.2Advertisements in national newspapers The targeted skilled labour group from the advertisement are mostly employed somewhere else with good perks and not actively seeking a new job thus unlikely to see the advertisements.

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Human Resource Management - Case Study BM701DL

1.1.3The Use of Head hunters There have been some success over this but it demands higher charges and also opens up a risk of employees recruited from this method been lured away again after some months by the same agent.

So the above said have not worked to the level expected in fulfilling the requirement to growth speed at Hi-Tec International

Development of new business is increasingly been held up as a result of a lack of adequate professional personal. Below evaluates how I advice Hi Tec to try new ways in fulfilling its recruitment.

1.2 Solution

Recruitment

According to (Dowling and Schuler, 1990) searching for and obtaining potential job candidates in sufficient numbers and quality so that the organisation can select the most appropriate people to fill its job needs According to Beaumont (1993) three key issues that have increased the importance of the selection criteria. Changes of the labour market have led to a more diverse work force, which have an increasing pressure of fairness in selection.
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Desire for multi skilled flexible workforce and an increased emphasis on teamwork has meant that selection decisions are much based more with behaviour and attitudes than with matching individuals to immediate job requirements.

Emphasis between cooperate strategy and people management has led to strategic selection that links selection process to outcome organisational goals and aims match flow of people emerging.

Hi-Tec can develop short term and long term strategies for recruitment to remedy their problem. Below graph shows contemporary approach results on recruitment

CIPD Survey (CIPD: 2009)

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In this consent Hi-Tec can look at implementing below methods,

1.2.1Fix internal issues In this case 2.5% of employees have been subject to dismissals. This reflects a problem inside the organisation. Efforts have to be made to solve this issue. It will help to reduce the new recruits and reduce recruitment overheads. A contemporary approach to human resource planning would be a good solution. According to Armstrong (2005) there are many benefits of this, To attract and retain people with appropriate skills and expertise. To develop well trained work force and making them adoptable to everchanging uncertain environment To reduce dependence on external recruitment and formulating retention and development strategies To improve people utilisation and introducing more flexible systems at work. Business and resource strategies should be aligned towards business goals. Then a scenario planning should be done which is forecasting on the assumptions when you cannot predict the future.

1.2.2 Internet Recruitment (Using website and more) With advancement of the technology this has emerged as a key stream. According to (Searle, 2006) number of organisations using their corporate web site as recruitment channel has been significantly increased. This is very effective to Hi Tec as the targeted IT professionals are always in touch with internet. In modern world this could be defined as use of cloud computing for recruitment. Also Hi Tec can advertise vacancies on specialist internet Recruitment sites. Alternative ways to recruitment would be Use of professional groups websites like Linked In Use of Social Networks like Face book, Twitter and etc

The benefit of using internet recruitment is reduction of costs and reaching wider pool of applicants. Also it will reduce the time in recruitment cycle.

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Technology can be used to scan CVs match against the selection criteria which will reduce paperwork. According to (Pilbean and Corbridge 2006: Searle, 2006) it will provide positive cooperate brand image. This provides greater flexibility to active and passive candidates. Job vacancies news letters are distributed by most recruitment sites. Also Hi-Tec target international candidates by using video streaming technologies such as skype.

In addition internet recruitment can create opportunities to use number of preselection tools and tests to improve match between applicants and job vacancies (Redman and Wilkinson, 2006)

However there are some concerns about internet recruitment. CIPD (2006) survey findings have reviled that this method appears to generate increased interest from unsuitable candidates (Pilbeam and Corbridge, 2006: CIPD, 2006)

Nevertheless Hi-Tec can effectively use this method for recruitment for the targeted professionals.

1.2.3 Employee Referrals

This is where existing employees suggest potential candidates drawn from their own networks. CIPD recruitment and retention survey findings (CIPD, 2009) have pointed this. The organisations used to recruit by using this method has been increased significantly. This will directly reduce recruitment costs and also lead applicants to gain more realistic and live job preview. In addition the willingness of existing employees to recommend their organisation to others is used as a measure of organisational commitment in high performing workplaces (Purcell et al, 2003)

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However this method also has some concerns as there could be implications from an equality and diversity perspective. Also this could be seen as a form of discrimination.

Since Hi Tec have got a very smart talent pool it can use its existing employees for the referral scheme as an immediate short term recruitment strategy.

1.2.4 Make every employee a recruiter This is another level of referral strategy. Hi-Tec can give the recruitment process more bounce, more legs and develop a sense of urgency by making all employees a recruiter. This can be encouraged by a moderate referral bonus scheme. So employees can get a bonus for every referral hired by Hi-Tec thus creating a competency for talent search. In a short period this would give better results at a minimum cost and compared to the money paid for a recruitment agency still it will be cheaper and provide quick results to fill shortages. Bonus will be paid to motivate and satisfy the employees. They could be the best sales people for the company to bring best results over recruitment issue.

1.2.5 Collaborate with a university Hi-Tec can collaborate with a university to fulfil its gaps. This is categorised as long term strategies and take sometime to develop.

Identify bright students at the graduations and offer them training and jobs this will of course provide good results in quick learning and quick join to the show. Students also have to be deployed to small assignments and give rapid training in getting them hit the ground at work as quickly as possible.

Develop a methodology for students to join and complete their internships at Hi-Tec. Then the students can be indirectly promoted to work for Hi-Tec. By that students are exposed to a pre skills learn and will make a good opportunity for Hi Tec to offer jobs.

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Human Resource Management - Case Study BM701DL

Participate in education fairs and IT conferences / IT product launches and trade fares in head hunting. These events normally get large crowd attracted and the intended professionals can be selected with minimal cost from this.

1.2.6 Make On-the spot Offers This is another methodology can be useful for Hi-Tec to speed up the recruiting process. Managers can often extend a job offer to a candidate on the interview day. Hi Tec recruitment officers have to understand the importance of moving quickly on IT hires because the targeted crowd and be easily lured by other companies while Hi-Tec decides whether or not to recruit them. Therefore HiTec has to cut through internal red tapes if theres any in delaying to make offers.

By practicing above discussed points Hi-Tec will be able to get good results over its recruitment challenge.

2. Question 3: Improve retention of staff who leave shortly after joining

Issue

Analysing the given case of Hi-Tec below issues can be identified, Company have no issues in retention but a turnover of 5% Inability to find employees with required skills and expertise Bottleneck the expansion due to inability to fill the shortage of vacancies

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At first place though company perceives that retention is not a problem they have to look at the turnover.

Labour turnover is inevitable, so most employers are looking to reduce it. Loss of knowledge and skills and their ability meeting business goals comes under threat.

The CIPD Survey (CIPD, 2009) shows below the key reasons for employee turnover

CIPD Survey (CIPD, 2009)

Solution 2..1 Analyse reasons for turnover

For this Hi-Tec can look at turnover issues by

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Information from staff attitude/satisfaction surveys Conducting exit interviews and surveys o What is the reason for dismissal o Discussions and questionnaires Word of mouth

Methods used to find why people leave.

CIPD Survey (CIPD, 2009)

Below reasons have found employees leaving a business and by occupation

CIPD Survey (CIPD, 2009)

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CIPD Survey (CIPD, 2009)

Manfred kets De Vries ( Cited in Williams, 2000:28) stated that todays high performers are like frogs in a wheelbarrow: they can jump out at any time. So high performing companies like Hi-Tec have to turn their attention more towards retention of their high performing staff. Firstly labour turnover reasons have to be carefully analysed.

Retention and turnover survey (CIPD, 2009) show the most steps taken by organisations to improve retention as,

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CIPD Survey (CIPD, 2009)

Hi-Tec and adopt to increasing retention by taking below effective points 2..2 Improved Selection techniques

Hi tec can look in to the latest selection techniques which are given below Job Analysis before circuiting the nature of the job is highly investigated, Job purpose, output required, job holder responsibilities and how it fits to the organisation structure have to carefully reviewed
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Human Resource Management - Case Study BM701DL

Creating a good job profile. by doing the job analysis a good job profile can be created Look at internal talent pool by promoting internal staff it will support carrier progression, employee engagement and supports succession planning. This will then helps to improve retention.

Clear advertising the advertisement have to be very clear and indicate, requirement, desirable criteria of the job applicant, nature of the organisation, job location, reward package, tenure, etc

2..3

Increased learning and development opportunities

Below methods can be used by Hi-Tec in order to train their staff according to Julie Beardwell, (2007). Human Resource Management 2..4 On the job training External conferences workshops and events Formal education courses Instructor-led training off the job Coaching by line managers Audio/video tapes and learning resources Job rotation, secondment and shadowing E-leaning Internal knowledge sharing sessions

Revised the way staffs are rewarded so their efforts are better recognised.

Hi-Tec is having a generous bonus scheme, and pension and health and life insurance but it might not be enough to increase retention. Additionally company can look at improving rewards model according to CIPD reward management (CIPD, 2011) Main points can be looked at are Bonus o Merit pay rises
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o Individual bonuses o Individual non monetary recognition awards o Combination schemes Employees offered long term incentive schemes o Save as you earn (SAYE) o Share incentive plan (SIP) o Company share option plan o Executive share option schemes o Executive restricted/performance share plan Employer offering contributory pension o Defined contribution (DC) o Defined Benefit (DB) o Contribution to personal pension

2..5

Made changes to improve work life balance

The are many ways contemporary businesses are approaching this concept and below are some of the most important ways to use 2..6

Reduced hours Change working patterns Flexi-Times Job Sharing Home working Term-time only

Increased pay

Hi Tec can also look in to their way the basic pay has been structured. Below methods can be used to do amendments to basic pay, Market rates with job evaluations Individual performance Competencies Skills Employee potential/ value and retention
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3. Conclusion

Length of service

Hi tec have a big challenge over recruitment and above have discussed the best possible remedy to recruitment and retention practices. Above approaches will be a definite advantage for Hi Tec to reduce its turnover levels and towards the retention of its employees.

4. References 1. Julie Beardwell, Tim Claydon (2007). Human Resource Management. 5th ed. England: FT Prentice Hall. 677 2. Dessler, Gary: Human Resource Management, Eighth Edition. New Jersey, USA, 2000 3. IT majors reboot employee retention strategies. 2010. Financial Express, , pp. n/a. 4. Exclusive research: IT employee retention high priority. 2000. Chain Store Age, (10870601), pp. 30-30. 5. EARLS, A.R., 1998. Retention getters: The 25 companies that excel at IT retention. Computerworld, 32(6), pp. 82-82-83. 6. MODERI, M. and FOOTE, D., 2005. Is IT Retention Efforts Working? Optimize, 4(12), pp. 23-23-24. 7. IT staffing: Retention is cheaper than recruiting. 1999. Health management technology, 20(3), pp. 32-32-34. 8. RATHS, D., 2000. Get creative about IT recruiting. InfoWorld, 22(30), pp. 42-42-43. 9. The Off-Line Advantage: Survey Shows Word of Mouth, Staffing Firms Critical IT Recruiting Tools. 2002. United States, New York: PR Newswire Association LLC. 10. KING, J., 1997. IT recruiting options multiply. Computerworld, 31(39), pp. 1-1, 110. 11. CIPD. (2009). Annual Report -Recruitment, retention and turnover. Available: http://www.cipd.co.uk/hr-resources/survey-reports/recruitmentretention-turnover-2009.aspx. Last accessed 15th Sep 2011 12. ANDERSON, N and SHACKLETON, V. (1993) Successful selection interviewing. Oxford: Blackwell.
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5. Bibliography Available from : http://www.deomi.org/EOEEOResources/documents/EmployeeRetent ion-Lyons.pdf (last accessed 14th Sep 2011) Available from : http://www.cpscccsp.ca/PDFS/CPSC%20Final%20Report%20June28%20%207%20case%20studies2%20oct%207%2004.pdf (last accessed 14th Sep 2011) Available from : http://www.mergespeaks.com/pdfs/FMIRetentionTurnoverEnglish.pdf (Last accessed 13th Sep 2011)

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