2 Staffing Organizations Model MissionGoals and ObjectivesOrganization StrategyHR and Staffing StrategyStaffing Policies and ProgramsSupport ActivitiesCore Staffing ActivitiesLegal complianceRecruitment: External, internalPlanningSelection: Measurement, external, internalJob analysisEmployment: Decision making, final matchStaffing System and Retention Management12-2
3 Chapter Outline Employment Contracts Job Offers Job Offer Process Requirements for Enforceable ContractParties to ContractForm of ContractDisclaimersContingenciesOther Employment Contract SourcesUnfulfilled PromisesJob OffersStrategic Approach to Job OffersJob Offer ContentJob Offer ProcessFormulation of Job OfferPresentation of Job OfferJob Offer Acceptance and RejectionRenegingNew Employee Orientation & SocializationOrientationSocializationExamples of ProgramsLegal IssuesAuthorization to WorkNegligent HiringEmployment-at-Will
4 Discussion Questions for This Chapter If you were the HR staffing manager for an organization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organization?If the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain.What are the advantages and disadvantages to the sales approach in the presentation of the job offer?What are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective) in helping to make the person/job match happen?What are the steps an employer should take to develop and implement its policy regarding employment-at-will?
5 Employment Contracts Requirements for enforceable contract Parties to contractForm of contractDisclaimersContingenciesOther employment contract sourcesUnfulfilled promises
6 Employment Contracts Requirements for enforceable contract OfferAcceptanceConsiderationParties to contractEmployee or independent contractorThird parties
7 Employment Contracts (continued) Form of contractWritten contractDoes the company mean to be held to this?Where appropriate, avoid using words that imply binding commitment.Make sure all related documents are consistent with one another.Always have a second person review what another has written.Look at the entire hiring procedure.Oral contractOne-year ruleParole evidenceSuggestions
8 Employment Contracts (continued) DisclaimersOral or written statement explicitly limiting an employee right and reserving that right for employerRecommendations for enforcementClearly stated and conspicuously placed in appropriate documents.Employee should acknowledge receipt and review of the document and the disclaimer.Should state that it may be modified only in writing and by whom.The terms and conditions of employment, including the disclaimer, as well as limits on their enforceability, should be reviewed with offer receivers and employees.
9 Employment Contracts (continued) ContingenciesExtending a job offer contingent on certain conditions being fulfilled by offer receiverOther employment contract sourcesEmployee handbooksOral statements made by employer representatives
10 Employment Contracts (continued) Unfulfilled promisesOrganizational HR issuesDo not make promises unwilling to keepBe sure promises made are keptPotential legal claimsBreach of contractPromissory estoppelFraud
11 Discussion questionsIf you were the HR staffing manager for an organization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organization?
12 Job OffersStrategic Approach to Job OffersJob offer content
14 Job Offer Content Starting date Duration of contract Compensation Starting payFlat vs. differential ratesExh. 12.2: Example of Starting Pay PoliciesVariable payShort termLong termBenefits - Ex. 12.3HoursSpecial hiring inducementsHiring bonusesRelocation assistanceHot skill premiumsSeverance packagesRestrictions on employeesOther terms and conditionsAcceptance termsSample job offer letter-Ex. 12.4
15 Job Offer Process Formulation of job offer Presentation of job offer Job offer acceptance and rejectionReneging
16 Formulation of Job Offer Knowledge of competitorsLabor demand issuesWho are the competitors?What terms and conditions are they offering for the job for which the hiring organization is staffing?Labor supply issuesOffers need to attract number of staff requiredOffers need to consider KSAOs of each offer receiver and the worth of the KSAOs
17 Formulation of Job Offer (continued) Applicant truthfulnessMinimal evidence exists on degree of applicant truthfulnessTo combat deceit, organizations are pursuing verification of all applicant informationLikely reactions of offer receiversApproaches to assess reactions to offersGather information about various preferences from offer receiver during recruitment/selection processConduct research on why offer receivers accept or decline job offers
18 Formulation of Job Offer (continued) Policies on negotiations and initial offersJob offers occur for both external / internal staffingConsider costs of job offer being rejected by candidateCandidates may be receiving counteroffers from current employerCurrently employed candidates incur costs for leaving and expect a “make whole” offerCandidates are sophisticated in presenting their demands
19 Formulation of Job Offer (continued) Strategies for presenting initial offerLowballoffering the lower bounds of terms and conditions to the receiverCompetitivean offer that is “on the market,” neither too high nor too lowBest shotgives a high offer, one right at the upper bounds of feasible terms and conditions
20 Presentation of Job Offer Two approachesMechanical approachSales approach
21 Job Offer Process: Acceptance, Rejection, Reneging By organizationBy offer receiverRenegingExh. 12.6: The messy process of reneging
22 Discussion questionsIf the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain.What are the advantages and disadvantages to the sales approach in the presentation of the job offer?
23 New Employee Orientation and Socialization Exh. 12.8: New Employee Orientation Program SuggestionsSocializationContentPeoplePerformance proficiencyOrganization goals and valuesPoliticsLanguageHistoryDelivery
24 Discussion questionsWhat are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective) in helping to make the person/job match happen?
25 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 hiringWorkplace torts issue involving claims by an injured plaintiff that plaintiff was harmed by an unfit employee who was negligently hired by companyEmployment-at-willInvolves right of either employer or employee to unilaterally terminate employment relationship
26 Discussion questionsWhat are the steps an employer should take to develop and implement its policy regarding employment-at-will?
27 Ethical IssuesIssue 1A 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.
28 Ethical IssuesIssue 2An 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.