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Part 5 Staffing Activities: Employment

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1 Part 5 Staffing Activities: Employment
Chapter 12: Final Match McGraw-Hill/Irwin

2 Staffing Organizations Model
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 12-2

3 Chapter Outline Employment Contracts Job Offers Job Offer Process
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 Timing of the Offer Job Offer Acceptance and Rejection Reneging New Employee Orientation & Socialization Orientation Socialization Examples of Programs Legal Issues Employment Eligibility Verification Negligent Hiring Employment-at-Will

4 Learning Objectives for This Chapter
Learn about the requirements for an enforceable contract Recognize issues that might arise in the employment contract process Understand how to make strategic job offers Plan for the steps of formulating and presenting a job offer Know how to establish a formal employment relationship Develop effective plans for new employee orientation and socialization Recognize potential legal issues involving final matches

5 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?

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

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

8 Employment Contracts (continued)
Form of contract Written contract Does 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 contract One-year rule Parole evidence Suggestions

9 Employment Contracts (continued)
Disclaimers Oral or written statement explicitly limiting an employee right and reserving that right for employer Recommendations for enforcement Clearly 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.

10 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

11 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

12 Discussion questions 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?

13 Job Offers Strategic Approach to Job Offers Job offer content

14 Ex. 12.1: Strategic Approach to Job Offers

15 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 Hours Idiosyncratic deals Ex. 12.3 Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages Restrictions on employees Acceptance terms Sample job offer letter-Ex. 12.4

16 Exhibit 12.3 Idiosyncratic Deals
Category Examples Tasks and work responsibilities that are specially tailored to the employee's unique KSAOs An engineer in a technology firm with an interest and background in marketing will participate in marketing meetings A salesperson who is especially familiar with a certain product line will be given paid time to share expertise with other workers A customer service provider interested in management will be paid to attend skill development workshops

17 Exhibit 12.3 Idiosyncratic Deals
Category Examples Flexible schedules to accommodate individual employee needs An employee will be allowed to come in later in the day and leave later to accommodate childcare needs An employee whose spouse works a non-standard workweek will be given a Tuesday to Saturday schedule A non-exempt employee will have variable hours per week

18 Exhibit 12.3 Idiosyncratic Deals
Category Examples The ability to work outside of the main office A virtual private network or cloud-based servers will be used to allow employees to access work data remotely Provide mobile devices like tablet computers or smartphones and pay for connectivity fees for an employee who travels frequently with her family

19 Exhibit 12.3 Idiosyncratic Deals
Category Examples Financial incentives that are particular to the employee and match his or her unique contribution to the organization Compensate an especially productive research developer based on patent applications Designate an employee with well-developed social networks a “rainmaker” and pay for each new client he brings in to other salespeople Pay a bonus to a manager with strong developmental skills for each person she successfully mentors

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

21 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

22 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

23 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

24 Formulation of Job Offer (continued)
Strategies for presenting initial offer Lowball offering the lower bounds of terms and conditions to the receiver Market matching an offer that is “on the market,” neither too high nor too low Best shot gives a high offer, one right at the upper bounds of feasible terms and conditions

25 Presentation of Job Offer
Mechanical approach Relies on one-way-communication Highly efficient and inexpensive All applicants treated the same for legal purposes Sales approach Active interaction with applicant Allows organization to respond to concerns Much higher chance of offer acceptance

26 Job Offer Process: Acceptance, Rejection, Reneging
By organization By offer receiver Reneging

27 Discussion questions 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?

28 New Employee Orientation and Socialization
Exh. 12.7: New Employee Orientation Program Suggestions Socialization Content People Performance proficiency Organization goals and values Politics Language History Delivery

29 Discussion questions 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?

30 Legal Issues Employment Eligibility Verification Negligent hiring
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

31 Discussion questions What are the steps an employer should take to develop and implement its policy regarding employment-at-will?

32 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.

33 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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