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1 Final Match CHAPTER TWELVE Screen graphics created by:
Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

2 Staffing Organizations Model
Vision and Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management

3 Chapter Outline Employment Contracts Job Offers
Requirements for Enforceable Contract Parties to Contract Form of Contract Disclaimers Contingencies Other Employment Contract Sources Unfulfilled Promises Job Offers Strategic Approach to Job Offers Job Offer Content Job Offer Process Formulation of Job Offer Presentation of Job Offer Job Offer Acceptance and Rejection Reneging New Employee Orientation & Socialization Legal Issues

4 Employment Contracts Requirements for enforceable contract
Parties to contract Form of contract Disclaimers Contingencies Other employment contract sources Unfulfilled promises

5 Employment Contracts Requirements for enforceable contract
Offer Acceptance Consideration Parties to contract Employee or independent contractor Third parties Employment contract

6 Employment Contracts (continued)
Form of contract Written contract Suggestions Oral contract One-year rule Parole evidence Disclaimers Oral or written statement explicitly limiting an employee right and reserving that right for employer Recommendations for enforcement

7 Employment Contracts (continued)
Contingencies Extending a job offer contingent on certain conditions being fulfilled by offer receiver Other employment contract sources Employee handbooks Oral statements made by employer representatives

8 Employment Contracts (continued)
Unfulfilled promises Organizational HR issues Do not make promises unwilling to keep Be sure promises made are kept Potential legal claims Breach of contract Promissory estoppel Fraud

9 Job Offers Strategic Approach to Job Offers Job offer content

10 Exh. 12.1: Strategic Approach to Job Offers
Labor Market Conditions Supply availability Tightness Organization Needs Short and Long Term Outcomes Cost Control Job Offer (Employee Value Proposition) Applicant Needs Rewards Sought Willingness to Leave Job Legal Issues Contract Language EEO/AA Goals

11 Job Offer Content Starting date Duration of contract Compensation
Starting pay Flat vs. differential rates Exh. 12.2: Example of Starting Pay Policies Variable pay Short term Long term Benefits - Exh. 12.3 Hours Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages Restrictions on employees Other terms and conditions Acceptance terms Sample job offer letter Exh. 12.4

12 Job Offer Process Formulation of job offer Presentation of job offer
Job offer acceptance and rejection Reneging

13 Formulation of Job Offer
Knowledge of competitors Labor demand issues Who are the competitors? What terms and conditions are they offering for the job for which the hiring organization is staffing? Labor supply issues Offers need to attract number of staff required Offers need to consider KSAOs of each offer receiver and the worth of the KSAOs

14 Formulation of Job Offer (continued)
Applicant truthfulness Minimal evidence exists on degree of applicant truthfulness To combat deceit, organizations are pursuing verification of all applicant information Likely reactions of offer receivers Approaches to assess reactions to offers Gather information about various preferences from offer receiver during recruitment/selection process Conduct research on why offer receivers accept or decline job offers

15 Formulation of Job Offer (continued)
Policies on negotiations and initial offers Job offers occur for both external / internal staffing Consider costs of job offer being rejected by candidate Candidates may be receiving counteroffers from current employer Currently employed candidates incur costs for leaving and expect a “make whole” offer Candidates are sophisticated in presenting their demands

16 Formulation of Job Offer (continued)
Strategies for presenting initial offer Lowball Competitive Best shot

17 Presentation of Job Offer
Two approaches Mechanical approach Sales approach Exh. 12.7: Example of a Sales Approach to Job Offers

18 Exh. 12.7: Example of a Sales Approach to Job Offers

19 Job Offer Process: Acceptance, Rejection, Reneging
By organization By offer receiver Reneging Exh. 12.8: Organization Actions to Deal with Reneging

20 New Employee Orientation and Socialization
Exh. 12.9: New Employee Orientation Program Suggestions Socialization Content People Performance proficiency Organization goals and values Politics Language History Delivery

21 Legal Issues Authorization to work Negligent hiring Employment-at-will
Under IRCA, company is prohibited from hiring or continuing to employ an alien not authorized to work in U.S. Negligent hiring Workplace torts issue involving claims by an injured plaintiff that plaintiff was harmed by an unfit employee who was negligently hired by company Employment-at-will Involves right of either employer or employee to unilaterally terminate employment relationship

22 Ethical Issues Issue 1 A large financial services organization is thinking of adopting a new staffing strategy for entry into its management training program. The program will provide the trainees all the knowledge and skills they need for their initial job assignment after training. So the organization has decided to do college recruiting at the end of the recruiting season, hiring those who have not been fortunate enough to receive any job offers, paying them a salary of 10% below market, and providing no other inducements such as a hiring bonus or relocation assistance. The organization figures this strategy and employee value proposition will yield a higher percentage of offers accepted, low cost per hire, and considerable labor cost savings due to below market salaries. Evaluate this strategy from an ethical perspective.

23 Ethical Issues Issue 2 An organization has a staffing strategy in which it over-hires by 10% the number of employees it will actually need in any job category in order to ensure it meets its hiring needs. It reasons that some of the new hires will renege on the accepted offer, and that the organization can renege on some of its offers if need be to end up with the right number of new hires. Evaluate this strategy from an ethical perspective.

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