Recruitment & Selection Process in Consumer Durable Industry
Consumer Durable Industry is known as one of the highest employee turnover carrying industry in the word (LinkedIn, 2018). Below the given index will prove that with the figures compared with the other industries that are in the business.
Table 1.0: Sectors with Highest Employee Turnover Rates - Year 2018
Source - Booz, 2018
Singer is one of the main players in Consumer Durable Industry in Sri Lanka. In the annual report 2017/2018 it says that Singer maintains a commitment to employee engagement that is respectful of individual dignity and human rights. Their employment practices are premised on attracting and retaining human talent based on merit (Singer Sri Lanka PLC Annual Report 2017/2018, p.80). Furthermore it says the recruitment and selection of employees who have the potential to be the Company leadership in the future ensure the growth of the business. Beyond academic credentials and skill levels, various factors also need to be taken into consideration when making recruitment and selection decisions.
Table 2.0: Employee Capital of Singer Sri Lanka PLC, Year 2017/2018
Source - Singer Sri Lanka PLC, Annual Report 2017/2018
Even after a very systematic way of recruiting employees to the Company, it has identified a reasonable number of employee turnover per year is high. According to the HR directors review “there can be several reasons for employees to leave an organization. Managers who focus on grooming their successors can avoid many of these reasons. When a manager sees the potential in an employee with the required personality traits, they build skills and leadership training into their daily interactions with staff. This can have an immense effect on the corporate culture, as staff understand that they are valued by their manager and the Company. Empowering staff via training and development of new skills can lead to the Company retaining high performing, loyal staff and avoid the high costs associated with the recruitment and selection and training of new employees” (Singer Sri Lanka PLC, Annual Report 2017/2018, p.81).
High Employee Turnover in Consumer Durable Industry
Employee turnover has detrimental consequences on organizational performance (Mumun & Hasan, 2017). The specific business problem is that some durable goods industry leaders lack strategies to reduce employee turnover (Burnett 2018). By understanding what strategies reduce turnover and how to implement them, durable goods industry leaders could improve the work environment, increase job satisfaction, and decreasing job dissatisfaction. Within the literature, researchers drew relationships between leadership behaviors, job satisfaction, employee empowerment, and employee turnover (Javed et al, 2014). These strategies could provide business leaders with a competitive advantage when competing for employees looking for alternative job opportunities in the global economy (Ali et al, 2014). Below video will give a precise description of high employee turnover specially in retail industry.
Video 1.0 describes that employee turnover is a costly problem for the employers. The Society of Human Resource Management identified that the average employee turnover for any industry stands at 15%, whereas in the retail industry it stands at 22% annually, which is fairly high value compared to other industries.
Job satisfaction, work-life conflict and decrease of justice can lead people to quit there jobs. In addition, not getting promotion on time, low motivation, lack of involvement are also some signs for employees to take a decision of quitting there job. And finally the speaker says “Organizations are better able to keep employees if they address the concerns of those individuals that might lead to a control of employee turnover”.
Video 1.0: Employee Turnover
Source - Gregg learnings, 2018.
References
Ali, N, Jan, S, & Tariq, M. (2014). Transformational and transactional leadership as predictors of job satisfaction, Life Science Journal.
Burnett, M 2018, Stategies to reduce employee turnover in the durable goods industry, Walden University.
Gregg learnings, 2018, Human Resource Management Concepts,<https://www.youtube.com/watch?v=twWZfKg9CHw >
Javed, H, Jaffari, A & Rahim, M (2014), Leadership styles and employees job satisfaction, A Case from the private banking sector of Pakistan, Journal article of Asian Business Strategy.
Mamun, C & Hasan, M (2017), Problems and perspectives in Management.
Singer Sri Lanka PLC, Annual Report 2017/2018.
Organizations invest large sums of money to motivate and train, develop, maintain and retain their employees within their organization. Therefore, managers should minimize employee turnover at any cost. Although there is no standard framework for understanding the employee turnover process as a whole, a wide range of factors have been useful in interpreting employee turnover (Kevin et al, 2004).
ReplyDeleteAgreed Ranga. Employee turnover is expensive from the view of the organization. Voluntary quits which represents an exodus of human capital investment from organizations and the subsequent replacement process entails manifold costs to the organizations (Ongori, H 2007).
DeleteEmployee job satisfaction and engagement factors are key ingredients of employee retention programs. The importance of addressing these factors is obvious, but actually doing so takes time and these tasks are often left for another day. However, the payoff of focusing on employee retention—in terms of increased performance, productivity, employee morale and quality of work, plus a reduction in both turnover and employee-related problems—is well worth the time and financial investment. The bottom line is that by managing for employee retention, organizations will retain talented and motivated employees who truly want to be a part of the company and who are focused on contributing to the organization's overall success(SHRM).
ReplyDeleteYes Janaka, talented people possess special gifts, abilities and aptitudes which enable them to perform effectively (Armstrong, M 2017). As defined by the CIPD (2007), ‘Talent consists of those individuals who can make a difference to organizational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential.’
DeleteOne of the main critical issue’s organizations facing today is employee attrition (Allen, 2010). Career development is one of the main human resource aspects that provide the opportunity for employees to continuously be a part in the diverse activities in the organization that develops employees (Shrm, 2012). Career development task includes succession planning (Broadbridge,2007), talent management (Shrm, 2012), leadership development (Day & Harisson 2007), structured career management and self-assessment (Baruch & Peiperl, 2000). Combined effect of training and development along with career development opportunities have a significant influence on employee retention (Juhdi, Pa'wan & Hansaram, 2013).
ReplyDeleteYes Chamila, Robinson et al (2004) define employee engagement as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.”
DeleteThe processes and sources of recruitment have evolved over time and continue to do so linked to the professionalization of human resources management as well as to factors related to the environment, the sector and the level of economic and technological development (Carbonel et al., 2020).
ReplyDeleteFurthermore, Recruitment can be defined as searching for and obtaining a pool of potential candidates with the desired knowledge, skills and experience to allow an organization to select the most appropriate people to fill job vacancies against defined position description and specification (Ahmad, 2002).
ReplyDeleteFor a company to stay competitive it must recruit, select and retain an efficient and effective team of employees (Taylor, 2002).
DeleteConsidering the FCMG Sector,Unilever (Sri Lanka) Ltd has well planned, pre decide system for recruiting it called as Man Power Planning it happens annually on every June or July. This will conduct by HR business partners, Recruitment manager and line managers. In this meeting they discuss about all their new plans, current situation of the company, about new products they are going to introduce to the market, targets to be achieve in the future etc. Specially they talk about new opportunities in separate sections, who are going to leave the company in upcoming year and if there are new brands to introduce new employees to handle it as an example when brand “Lakhme” come to the market they have to decide what kind of new employments will required, what kind of employees should recruit, when they should recruit and what are the requirement they should have likewise organization has to decide the man power for that new product(Annual Report 2018/2019)
ReplyDeleteRecruiting is more complex today than it has ever been (Marie et al, 2010). Every vacancy is different and there are a number of sourcing options available to attract the right pool of candidates. Some roles will attract a large pool of candidates keens to work with the organization, whereas other roles will be more challenging due to specialists skill shortages. In this case, organization may be looking at developing relationships with potential future candidates (University of Otago,2020).
DeleteAgree with you. Recruitment and selection play a major role in achieving the HR strategy of the company and that is to attract and retain suitable employees within the organization (Anderson, 2001). Those two functions can be identified as key functions of HRM of the organization where the effectiveness and efficiency of such functions directly impact on the success of the organization.
ReplyDeleteYes Sohan. Recruitment is the process of seeking applicants for positions within a business - on either a general basis or targeted to address particular vacancies. Selection takes the next step, where the employer makes a choice between two or more interested applicants. However, applicants also select their future employer, making decisions as to how further they wish to pursue their original employment enquiry (Torrington et al, 2014).
DeleteIn order for an organization to build and sustain the competitive advantage, streamlining the recruiting/staffing is crucial (Djabatey, 2012). Success of the organization depends on the performance of those who are employed in it. Hiring wrong people or failure to expect fluctuations in hiring needs can be costly ( Djabatey, 2012). Therefore, it is imperative that conscious efforts are exerted towards human resource planning. Thus, recruitment and selection become vital for; individuals need to be attracted on a timely basis, in adequate numbers and with appropriate qualifications ( Ekwoaba, J, Ikeije, U & Ufoma, N 2015). If the latter is not honored sufficiently, turnover could emerge in abundance.
ReplyDeleteHuman resources with knowledge and competencies are the key assets in assisting organizations to sustain their competitive advantage. Globally competitive organizations depend on the uniqueness of their human resources and the systems for managing human resources effectively to gain competitive advantages. Performance evaluation of the human resources is a vital issue in this regard (Ahmed et al, 2013).
DeleteHeneman and Judge (2009) have described four types of employee turnover under two categories. It can be seen that turnover is either voluntary being initiated by the employee, or involuntary, being initiated by the organization. Involuntary turnover is split into discharge and downsizing types. Discharge turnover is aimed at the individual employee, due to discipline and/or job performance problems. Downsizing Turnover: It occurs as part of an organizational restructuring or cost-reduction program to improve organizational effectiveness and increase shareholder value.
ReplyDeleteRegardless of business type there are two main types of employee turnover: voluntary and involuntary. Within each of those categories, however, there are various reasons for why a company might have employee turnover. While the term “turnover” sometimes has a negative connotation, not all turnover is bad. For example, when a poorly performing employee is let go and replaced with someone who is motivated and excels at their job, productivity can soar. This new worker can bring bottom-line benefits, as well as provide an overall boost to team morale (Armstrong, M 2017).
DeleteWell explained. Recruitment and selection are important operations in human resource management, since the future direction of the organization is depends on employees who work for the organization. Therefor organization is required to follow appropriate selection processes, the reason being, if the selection is not carried out in an appropriate manner, then it would impose unfavourable effects upon the organization and loss would be incurred to the employer in terms of money, time, and efforts (Kapur,2018).
ReplyDeleteRecruitment is the process of seeking applicants for positions within a business - on either a general basis or targeted to address particular vacancies. Selection takes the next step, where the employer makes a choice between two or more interested applicants. However, applicants also select their future employer, making decisions as to how further they wish to pursue their original employment enquiry (Torrington et al, 2014).
DeleteHigh turnover will bring destruction to the business in the form of direct and indirect costs.
ReplyDeleteDirect costs refer to costs such as recruitment, selection, orientation, workshop and training for fresh staff. Indirect cost are Expenditure on education, and real self-confidence, the stress on the existing employee and cost of the breakdown of social capital (Al Mamun,C.A .2017).