How to reduces cost in recruitment

In a tougher economic climate, recruiters are struggling to keep up with spiralling recruitment costs. Inhouse, the drain on recruiters can be huge, while outsourcing to traditional recruitment agencies can end up becoming a high cost to recruiters. All this is surprising when there is a recruitment model that actively reduces recruitment costs. Flat fee for lower cost per hire: Flat fee recruitment lets recruiters see exactly what the cost of recruitment is. It also cuts the many hidden costs of hiring. The Response Web Recruitment approach has been proven to offer up to 74% reduction in recruitment costs and up to a 90% reduction in the time spent hiring new employees. Online recruitment: An innovative online recruitment model can significantly reduce the costs of recruitment. This is achieved by combining advanced recruitment technology with specialist recruitment knowledge - an approach that has helped save over 14.4m since 2003. Better reach: Reaching the right people has traditionally formed a significant part of recruitment costs. But online recruitment allows recruiters to find the people they need while keeping costs low.

Recruitment cost can be reduced by. 1. Taking more people from employee referal. 2. Getting profiles from networking. 3. Getting right person, becuase if the person taken has not appropriate skills then it will add to recruitment cost as it will effect the team, chances are more that people from the team may leave the job due to demotivation. so its very important that person especailly in managerial position should have required skills for a particular job. Recruitment Time can be reduced by. 1. Keeping the database ready for future requirements. 2. Aalways keep the pipeline ready

How to reduces time in recruitment

Time is an important factor in recruitment. For every day you're without an employee you could be causing a knock on effect across the business. When a business is understaffed, it's not just the department with the vacancy that is affected. For example, if you're without a key member of staff within your IT department, not only does that mean others in that team have to work harder, it might mean that there is a delay in repairing the computer of a sales person which directly results in them losing a lucrative sale.

It's a simple example, but it shows the importance of your cog in the overall mechanics of the business. Be prepared It's an old saying, but one which is almost always the case; If you fail to plan, you plan to fail. Reducing the time to hire is all about making sure you're ready to move when the need for recruitment arises. Analysing employment trends within your company and industry is a vital part of the planning stage. When are your key sales periods where you will need more people in retail stores? When are your end of year accounts due, meaning you will need more help in the finance department? Even a day can make a huge difference so aim to have a stash of resources which you can instantly take from as soon as the need arises. For example, you should have a job description for every single person within your organisation right from the office junior through to your high level directors. You should be able (at least in theory) to be advertising for a vacant role within 24 hours. Other departments have disaster recovery plans and the HR team should be no different. If you suddenly lost the top five members of your sales team to a competitor, what would you do? There are generally three types of roles you will apply for in your business:

High churn role Generally the lowest time to hire, but the most frequently advertised. The benefit of high churn roles is that you regularly get the opportunity to test new techniques to fine tune your hiring methods. This is the group of candidates that your ongoing recruitment campaign should be targeting. There are many instances where companies run recruitment campaigns even when they have no vacancies. Medium churn roles These are the roles which come up less frequently for more integral parts of your business. This could be a mid-level manager who leaves their subordinates with nobody to report to, or a specialist employee who has a unique skill set. The best way to reduce time to hire with these positions is to build a talent pool which you can contact when the time comes. Combining this with a highly targeted online recruitment campaign should bring you a good crop of candidates to select from. Low churn roles For long term strategic roles which are much less frequently recruited for, it's less important for you to fill the role quickly and more important to find the right person. However, there are still some things you can do to help push the process along. Head-hunters generally work on commission only and you should be able to get regular reports on who in the industry may be ready to make a move so when the time comes you know the best people out there to fill the departing shoes.

A smooth process Finding candidates is one thing, but speeding up the process of interviewing and decision making is just as important.

Before you plan a recruitment campaign, get everyone involved together to work out a timeframe that you can agree to. Work out exactly who needs to be involved at every stage, and what time they have available. Remind them how important this process is in getting the right employee and that even putting aside a couple of hours to review CVs would be a great help. Allocate time for interviews and stick to them as strictly as you possibly can. As you get closer to the final decision, you generally need to speak to people higher up in the organisation. Unfortunately these are often the people with the least time on their hands! Be understanding with the various people involved in the recruitment process, but also let them know the importance of running a smooth hiring process. Temporary workers are often the saving grace of businesses and their value shouldn't be overlooked. Rather than hiring a new employee who isn't right for your business, it's often better to take on a contract worker until the right permanent employee become available. Although the short term costs may be more, they far outweigh the costs of making a bad hire. Internal recruitment is your other option for filling a position quickly, although remember that shifting an employee into a new role will only open up a gap elsewhere.

http://www.cipd.co.uk/NR/rdonlyres/746F1183-3941-4E6A-9EF6135C29AE22C9/0/recruitretntsurv07.pdf ( use full may be) \

Recruitment outsourcing could help limit recruitment costs

15 Apr 2011 Concerns amongst small and medium-sized enterprises (SMEs) that the cost of recruitment is too high could potentially be addressed by recruitment outsourcing. According to new research from Maximus UK, many SMEs feel that the cost of recruitment is high, with 43 per cent stating that it often comes in at more than 2,000 per candidate. Maximus UK interviewed a total of 500 businesses in its survey and 80 per cent claimed that recruitment was one of the biggest challenges facing small firms in the UK.

The call for help highlights the huge benefits of recruitment outsourcing, which can take the responsibility for recruitment of business owners, who can then focus on more pressing matters. In fact, more than half of SME owners claimed they were responsibile for recruitment and that it was a time-consuming process. Following the publication of the study, David Riches, director of operations at the British Chambers of Commerce, said: "There are many barriers for companies attempting to recruit new staff. "The cost and time involved in hiring new staff can be difficult for SMEs."

INTRODUCTION OF HR

During the first four hundred years of industrialization, it was all about machines, which gradually replaced the human labor. They were so important that humans were not even considered a resource. Not anymore. With information revolution, internet connectivity and the age of customized services, humans are the greatest resource. That makes human resource management, by far, the most important stream of the art of managing business. Human resources are by far the most important resources for any organization. Needless to say then that making the best possible use of these resources is crucial to the fate of organization, and hence once of the most important priority for the managers of that organization.

What makes Human Resource Management different?

What makes it different from other streams of management is the fact that Human resources management or HRM cannot be defined by simple thumb rules, nor can it be taught or explained by simple theories, without a grave risk of oversimplification. It requires keen observation of human traits, sensitivity arising from emotional intelligence, and understanding of human nature like a psychologist.

Different sub-streams of Human Resource Management Human resources management originally began as personnel management, but today it encompasses many well defined sub-streams of functions that can be listed as under: (1) Workforce planning (2) Recruitment (3) Orientation & skills management (4) Personnel administration & compensation (5) Time management (6) Employee benefits administration & personnel cost planning (7) Performance appraisal Each of these sub-streams is a more or less specialized function, yet one can say that HRM itself is more than these entire put together.

The greatest challenge of Human Resource Management Unlike managing other resources like machines, real estate and finance, managing human beings is a totally different ball game, simply because unlike other assets, each employee has his own goal and will work first to attain that goal, even if it is at the cost of the goals of the organization. Thus, no employee can ever be made to provide his optimum output for the organization unless the goals of the organization are closely aligned with his own goals. This, in short, is the greatest

challenge for all HRM experts, and in every organization, the need is to go about it in a way which is unique and specific for that organization.

Evolution of Human Resource Management Literature on Human resources management is fairly rich in terms of academic theories. Success of Henry Ford and his Ford Motors in early twentieth century gave rise to the term 'Fordism' consisting of the theory that high corporate profitability can be achieved by high wages to the employees. Even before Ford, Fredrick Winslow Taylor had propagated the 'scientific management theory' or 'Taylorism' wherein scientific studies of processes were believed to lead to optimum human resource utilization. These 'modernistic' theories suffered from one grave drawback - they treated human beings as homogeneous, ignoring the individual differences in them. Later academic theories, often referred to as 'post-modernism' attempted to correct this folly by admitting that human beings are complex and solutions to their problems cannot be obtained by simple thumb rules. In recent times, the academic theory has given place to practical applications and HRM experts today specialize in resolving individual problems of the organization in a step-by-step pattern. This means focusing on one of the several human resource management processes enumerated above, beginning from recruitment and ending with performance appraisal. These days, one of their greatest challenges is managing the process of collective bargaining, or the 'contract' between employee and the organization in a way that ensures commitment of the individual towards organizational goals. Another focus of modern HRM practices is to provide the employees a clear understanding of these organizational goals.

Science Vs Art While technology threatens to take over most functions of business management away from the experts, HRM is one field which is unlikely to be faced with this threat. It was, is and will always

be an expertise that is as much of a skill as an art, and hence beyond the intelligence that our computers possess. The human resources of an organization consist of all people who perform its activities.

Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.

What is the focus of HRM department? The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell. (Dr. James Spina, former head of Executive Development at the Tribune Company). HRM is involved in managing the human resources with a focus on expanding customer base that gives profit to the company. The bottom line of the company is the focus of the HRM department as well as the function.

Contributing to the Bottom-line of the Company through HR Top-line Activities A growing body research shows that progressive HRM practices have a significant effect on corporate bottom-line and middle-line performance. The positive effect on financial performance, productivity, product and service quality, and cost control are documented by researchers.

High-performance work systems (HPWS) is a term used to describe a collection of HR practices or characteristics of HR systems designed to enhance employees competencies so that employees can be a reliable source of competitive advantage. A summary of the research on HPWS indicated that a one standard deviation of improved assessment on a HPWS measurement tool increased sales per employee in excess of $15,000 per employee, an 8 percent gain in labor productivity.

The Activities of Human Resources Management The activities performed by HRM professionals fall under five major domains:

(1) Organizational design

(2) Staffing

(3) Performance Management and Appraisal

(4) Employee and Organizational Development

(5) Reward System, Benefits and Compliance

Acquiring human resource capability should begin with organizational design and analysis. Organizational design involves the arrangement of work tasks based on the interaction of people, technology and the tasks to be performed in the context of the objectives, goals and the strategic plan of the organization. HRM activities such as human resources planning, job and work analysis, organizational restructuring, job design, team building, computerization, and workermachine interfaces fall under this domain.

Recruitment, employee orientation, selection, promotion, and termination are among the activities that fit into the staffing domain. The performance management domain includes assessments of individuals and teams to measure, and to improve work performance. Employee training and development programs are concerned with establishing, fostering, and maintaining employee skills based on organizational and employee needs.

Reward systems, benefits and compliance have to do with any type of reward or benefit that may be available to employees. Labor law, health and safety issues and unemployment policy fall under compliance component.

Major Trends Affecting HRM The following trends have an effect on human resource management function and department. The importance of HRM increases due to some of them and the practices of HRM are affected to some extent due to some of them.

1. Increased globalization of the economy. 2. Technological changes and environmental changes. 3. The need to be flexible in response to business changes. 4. Increase in litigation related to HRM. 5. Changing characteristics of the workforce.

The

Importance

of

HRM

Measurement

Many HRM systems and activities are not subjected to systematic measurement. Many organizations do not assess either the short- or long-term consequences of their HRM programs or activities. A recurring theme of the book is that measurement and accountability are key components to organizational effectiveness and competitive advantage. Good measurement, allied with business strategies, will help organizations select and improve all of their HRM activities and provide a much stronger connection between HRM activities and organizational effectiveness.

Stanford University professor Jeffrey Pfeffer considers measurement to be one of the keys to competitive advantage. His book Competitive Advantage Through People cites measurement as one of the 16 HRM practices that contribute the most to competitive advantage.

A new book entitled The Workforce Scorecard by Professors Mark Huselid, Brian Becker, and Dick Beatty extends research on the "balanced scorecard" to a comprehensive management and measurement system to maximize workforce potential.

Competitive Advantage and HRM Competitive Advantage refers to the ability of an organization to formulate strategies that place it at favorable position relative to other companies in the industry. Two major principles, namely customer value and uniqueness, are relevant for gaining competitive advantage.

Competitive advantage occurs if customers perceive that they receive more value form their transaction or relationship with an organization than from its competitors. HRM needs to make

efforts to ensure that all employees are focused on understanding customer needs and expectations.

The second principle of competitive advantage derives from offering a product or service that your competitor cannot easily imitate or copy.

The status of HRM is improving relative to other potential sources of competitive advantage for an organization. Professor Pfeffer notes that "traditional sources of success (e.g., speed to market, financial, technological) can still provide competitive leverage, but to a lesser degree now than in the past, leaving organizational culture and capabilities, derived from how people are managed, as comparatively more vital."

For success in 21st century, HRM activities must be (1) responsive to a highly competitive marketplace and global business structures, (2) closely linked to business strategic plans, (3) jointly conceived and implemented by line and HR managers, and (4) focused on quality, customer service, productivity, employee involvement, teamwork, and workforce flexibility.

Importance of Study of HRM for Students Specializing in Other Functional Areas of Management Even as line managers in any functional department, management students are likely to manage people at some point in their career. Research shows that the manner in which one conducts the human resource responsibilities of the management job will be the key for effectiveness and growth in ones career.