What is Human Resource Planning (HRP)?

Human Resource Planning (HRP) is a strategic and systematic process that involves
forecasting an organisation’s future workforce needs and planning to meet those needs. It
involves analyzing the current workforce, identifying future requirements, and developing
strategies to ensure the organisation has the right talent in the right place at the right
time. Human Resource Planning (HRP) is like making a plan for the people who work for a
company. Making plans ahead of time for what skills and how many people a business
needs to reach its goals. It’s about putting the right people in the right jobs at the right time.
It also helps a business get ready for the future by letting it plan for problems and make the
best use of its employees. It’s like making plans ahead of time to make sure you have the
right team to win.
What is the aim of human resource planning?
Having the right number of employees is the aim of HR planning in order to maximise
revenue for the organisation. Human resource planning needs to change with a company’s
goals and strategy as they do. Furthermore, as globalization grows, HR departments will
have to adopt new procedures to comply with national labor laws that differ from one
another. Human resource departments will need to adopt new strategies and resources to
attract, develop, and retain employees as a result of the growing number of companies
using remote workers. This will also have an impact on HR planning. Human Resource
Planning (HRP) is the process of making sure that a company has the right people with the
right skills in the right jobs at the right time.
The main goals and aims of HRP are:
1. Alignment with Organisational Goals: The goal of HRP is to make sure that the
employees are working towards the same goals as the company as a whole. Furthermore, it
makes sure that the human resources plan helps the overall business plan succeed.
2. Predicting the Company’s Need in the Future: One of the main jobs of HRP is to
guess what the company will need in terms of human resources in the future. Companies
can avoid gaps or oversupplies of skills and talent by knowing what skills and talent will be
needed in the near future.
3. Making the best use of human resources: HRP tries to make the best use of the
company’s human resources. This means making sure that the right people are in the right
jobs by looking at things like their skills, experience, and the needs of the organisation.
4. Making the organisation more flexible: HRP wants to make the company more flexible
when things change. Companies can make plans to deal with changes in the business world
more effectively if they know about possible problems and chances ahead of time.
5. Recruiting and retaining talented people: HRP is very important for getting and
keeping talented people. It includes figuring out what new employees are needed, making
plans for hiring them and putting in place plans to keep key employees.
To sum up, the main goal of Human Resource Planning is to plan how to best use and
manage an organisation’s people so that it can meet its present and future business needs.
Process of Human Resource Planning (HRP)
1. Environmental Scanning: Identify and analyze external factors that may affect the
organisation’s human resource needs, such as economic trends, technological changes, and
legislative requirements.
2. Internal Analysis: Evaluate the current workforce, including skills, competencies, and
demographics. Understand the strengths and weaknesses of the existing workforce.
3. Forecasting Future Demand: Project future demand for human resources based on
organisational goals, growth plans, and changes in technology or markets.
4. Forecasting Future Supply: Assess the internal and external sources of human
resources. Internal sources include current employees, while external sources may include
recruitment strategies.
5. Identifying Gaps: Compare the forecasted demand and supply to identify potential gaps
in the workforce. Identify potential areas of surplus or shortage.
6. Developing Action Plans: Devise strategies to address the identified gaps. This may
involve recruitment, training, development, succession planning, or restructuring.
7. Implementation: Put the action plans into practice. This may include hiring new
employees, providing training programs, or restructuring existing teams.
8. Monitoring and Evaluation: Continuously monitor the effectiveness of the human
resource plans. Evaluate whether the organisation is achieving its goals and adjust the plans
as necessary.
Examples of Human Resource Planning (HRP)
1. Expansion Planning: A company planning to expand its operations may conduct HRP to
identify the additional workforce needed, including the skills required, and develop plans to
recruit or train employees accordingly.
2. Succession Planning: Identifying and grooming employees to fill key leadership
positions in the future. Succession planning ensures a smooth transition when current
leaders retire or leave the organisation.
3. Skills Gap Analysis: Assessing the current skills of the workforce and identifying gaps
in skills that may be needed in the future. This helps in planning training and development
programs to bridge those gaps.
4. Restructuring or Downsizing: If an organisation needs to downsize or restructure, HRP
helps in identifying which departments or positions will be affected, managing workforce
transitions, and minimizing the impact on productivity.
5. Technology Changes: Anticipating the impact of technological advancements on job
roles and skills. HRP helps in preparing the workforce for changes and ensuring that the
organisation has the necessary skills to remain competitive.

JOB ANALYSIS

Job analysis is a process of determining which characteristics are necessary for satisfactory
job performance and analyzing the environmental conditions in which the job is performed. It
analyzes the work content of job & job content of work. The process of job analysis leads to
development of two documents viz., job description and job specification. Job description
indicates the tasks and responsibilities, job title, duties, machines, tools and equipment,
working conditions and occupational hazards that form part of the job whereas job
specification comprises of the capabilities required to perform job, education, experience,
training, judgmental skills, communication skills and personal skills required to perform the
job effectively.

2.2.1 Significance of Job Analysis

Job analysis is a vital tool in taking a variety of human resource decisions. It is used to design
and execute a number of human resource management activities and programs. They are
described here: 1. Manpower Planning: job analysis helps in forecasting manpower
requirements based on the knowledge and skills and quality of manpower needed in
organization.

2. Recruitment: A carefully designed job analysis provides information as to what sources of

recruitment are to be used to hire employees. For example, job analysis in a retail stores about
merchandise sorters tells that village level schools are potential source of recruitment.
3. Selection: Selection of the right candidate to the right job can only be done with the help of
job analysis. In the case of retail stores, a billing assistant can be selected with the knowledge
of accounting, cash, and computer operations. This is possible with the help of job analysis.

4. Training and Career Development: Job analysis provides valuable information to develop
training programs. It provides information about what skills are to be trained. It also provides
information about various techniques to be used in career development of employees.

5. Placement and socialization: After people are selected and trained, they must be placed in
suitable jobs. Job analysis provides information about the suitability of jobs. A clear job
analysis guides the process to socialize the employees to develop sound relationships with all
those persons.

6. Compensation: Job analysis provides information as to how much compensation and other
financial and non-financial benefits to be associated with each job.

7. Employee Safety and Welfare: Job analysis details information on working conditions.
Thus, management tries to provide safety and welfare measures that are outlined in job
analysis.

8. Performance Appraisal: Performance of employees is appraised based on standard criteria

provided in the job analysis.

9. Counselling: A good job analysis provides information to the superiors about the jobs.
They use this information to guide and counsel employees about their career options,
performance, training requirements and skill up-gradation.

10. Strategic Planning: Job analysis enables human resource manager to develop a long-range
strategic plan in all concerned areas of human resources.

2.2.2 Components of Job Analysis 1. Job Description: It is an important document. It is

descriptive in nature. It is useful to identify a job for consideration by job analyst. Important
questions to be answered through job description are: What should be done? - Why it should
be done? -Where it should be done? There is no universal format of writing job description.
According to Ghorpade the following information is common in most of the job descriptions.
● Job title: title of the job and other identifying information such as wages, salaries, other
benefits ● Summary: summary is written in one or two lines that describes what outputs are
expected from job incumbents. Equipment: a clear statement of tools, equipment and other
information required to perform job effectively. ● Environment: a clear description of the
working conditions of the job, the location and other characteristics of work environment
such as hazards, noise, temperature, cleanliness etc. ● Activities: a description about the job
duties, responsibilities, and expected behaviour on the job. A description of social interactions
associated with the job such as the size of work group, interpersonal interaction on the job is
made. Job analyst writes job description in consultations with the workers and supervisors.
After writing draft job description, comments and criticism are invited to improve its content.
Final draft is then prepared. Job description is written either by making personal observation
or using questionnaire to collect relevant information from supervisors and workers. Job
description should be reviewed from time to time.

2. Job Specifications: It also known as man or employee specifications is prepared on the

basis of job specification. It specifies the qualities required in a job incumbent for the
effective performance of the job. Basic contents of a job specification are as follows: 1.
Personal characteristics such as education, job experience, age, sex, and extra co-curricular
activities. 2. Physical characteristics such as height, weight, chest, vision, hearing, health,
voice poise, and hand and foot coordination, (for specific positions only).

3. Mental characteristics such as general intelligence, memory, judgment, foresight, ability to

concentrate, etc.

4. Social and psychological characteristics such as emotional ability, flexibility, manners,

drive, conversational ability, interpersonal ability, attitude, values, creativity etc. Various
contents of a job specification can be prescribed in three terms: 1. essential qualities which a
person must possess; 2. desirable qualities which a person may possess; and 3. contra-
indicators which are likely to become a handicap to successful job performance

3. Job evaluation: It is a process of determining the relative worth of a job. It is a process

which is helpful even for framing compensation plans by the personnel manager. Job
evaluation as a process is advantageous to a company in many ways: 1. Reduction in
inequalities in salary structure - It is found that people and their motivation is dependent upon
how well they are being paid. Therefore the main objective of job evaluation is to have
external and internal consistency in salary structure so that inequalities in salaries are
reduced. 2. Specialization - Because of division of labour and thereby specialization, a large
number of enterprises have got hundred jobs and many employees to perform them.
Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is
possible only through job evaluation. 3. Helps in selection of employees - The job evaluation
information can be helpful at the time of selection of candidates. The factors that are
determined for job evaluation can be taken into account while selecting the employees. 4.
Harmonious relationship between employees and manager - Through job evaluation,
harmonious and congenial relations can be maintained between employees and management,
so that all kinds of salaries controversies can be minimized. 5. Standardization - The process
of determining the salary differentials for different jobs become standardized through job
evaluation. This helps in bringing uniformity into salary structure. 6. Relevance of new jobs -
Through job evaluation, one can understand the relative value of new jobs in a concern.
According to Kimball and Kimball, “Job evaluation represents an effort to determine the
relative value of every job in a plant and to determine what the fair basic wage for such a job
should be.” Thus, job evaluation is different from performance appraisal. In job evaluation,
worth of a job is calculated while in performance appraisal, the worth of employee is rated.

METHODS OF JOB ANALYSIS

Job analysis methods can be categorized into three basic types: (1) Observation Methods; (2)
Interview; and (3) Questionnaire 1. Observation Method: Observation of work activities and
worker behaviors is a method of job analysis which can be used independently or in
combination with other methods of job analysis. Three methods of job analysis based on
observation are: (i) Direct Observation; (ii) Work Methods Analysis; and (iii) Critical
Incidents Technique. (i) Direct Observation: Using direct observation, a person conducting
the analysis simply observes employees in the performance of their duties. The observer
either takes general notes or works from a form which has structured categories for comment.
Everything is observed: what the worker accomplishes, what equipment is used etc. The
limitation of this method is that it cannot capture the mental aspects of jobs, such as decision
making or planning, since mental processes are not observable. (ii) Work Methods Analysis:
This method is used to describe manual and repetitive production jobs, such as factory or
assembly-line jobs. This method is used by industrial engineers to determine standard rates of
production.

(iii) Critical Incidents Technique: It involves observation and recording of examples of

particularly effective or ineffective behaviors. Behaviours are judged to be “effective” or
“ineffective” in terms of results produced by the behavior. In this method a person using the
critical incidents must describe behaviour in retrospect, or after the fact, rather than as the
activity unfolds. Accurate recording of past observations is more difficult than recording the
behaviours as they occur. 2. Interview: In this method, the Analyst interviews the employee,
his supervisor and other concerned persons and record answers to relevant questions. The
interviewer asks job related questions and a standard format is used to record the data. The
limitation of this method is that it does not provide accurate information because the
employee may not provide accurate information to protect his own interest. Success of this
method depends upon the rapport between the analyst and the employee. 3. Questionnaire: In
this method properly drafted questionnaires are sent to jobholders. Structured questionnaires
on different aspects of a job are developed. Each task is described in terms of characteristics
such as frequency, significance, difficulty and relationship to overall performance. The
jobholders give their rating of these dimensions. The ratings obtained are analyzed and a
profile of actual job is developed. This method provides comprehensive information about a
job. The limitation of this method is that it is time consuming and costly

JOB DESIGN

Job design is next to job analysis.Job design involves systematic attempts to organize tasks,
duties and responsibilities into a unit of work to achieve certain objectives. Job design
integrates the work content and qualifications required for each job that meets the needs of
employee and the organization. Job design makes the job highly specialized and well
designed jobs are important in attracting and retaining a motivated work force. According to
Michael Armstrong, “Job Design is the process of deciding on the contents of a job in terms
of its duties and responsibilities, on the methods to be used in carrying out the job, in terms of
techniques, systems and procedures, and on the relationships that should exist between the
job holder and his superior subordinates and colleagues.” Job Design is affected by three
categories of factors: Organizational Factors: The organizational factors that affect job design
are characteristics of task, work flow, ergonomics and work practices. ● Characteristic of
task: Each task consists of 3 elements, namely, planning, executing and controlling. Job
design involves the assembly of a number of tasks into a job or a group of jobs. A job may
require an employee to perform a variety of connected task. All these characteristics of jobs
are taken into consideration for job design. ● Workflow: The flow of work in an organization
is strongly influenced by the nature of the product. This product usually suggests the
sequence and balance between jobs if the work is to be completed efficiently. ● Ergonomics:
Ergonomics is concerned with the designing and shaping of jobs as per the physical abilities
and characteristics of individuals so that they can perform their jobs effectively. ● Work
Practices: Work practices are the set methods of performing work. This can affect the job
design as there is little flexibility in designing the job especially if the work practices are
approved by employee unions. Environmental Factors: Environmental factors affect job
design. Environmental factors include employee abilities & availability and Social & Cultural
expectations. ● Employee Abilities & Availability: Abilities and availability of people plays
an important role while designing jobs. Due attention needs to be given to the employee who
will actually perform the job. Social And Cultural Expectations: Jobs should be designed
keeping the employees in mind. Due to increase in literacy rate and knowledge, employees
are now more aware and only perform jobs that are to their liking and match their profile. ●
Behavioral Factors: Behavioral factors are related to human needs and they need to be
satisfied properly. Behavioral elements include the following: ● Feedback: Employee should
be given proper feedback about his job performance. This will enable the employee to
improve his performance and complete the job in a proper manner. ● Autonomy: Employee
should be given proper autonomy required to perform the work. The absence of autonomy
may lead to poor performance on the part of employees. ● Use of Abilities: The job should be
designed in such a manner that an employee will be able to use his abilities fully and perform
the job effectively.

● Variety: Absence of variety in the job assigned may lead to boredom. Adequate scope to
variety factor should be given while designing a job.

2.5 METHODS OF JOB DESIGN

Job Simplification: In the job simplification technique, the job is simplified or specialized. A
given job is divided into small sub-parts and each part is assigned to one individual
employee. Job simplification is introduced when job designers feel that the jobs are not
specialized enough. Job Rotation: Job rotation implies systematic movement of employees
from one job to the other. Job remains unchanged but employees performing them shift from
one job to the other. With job rotation, an employee is given an opportunity to perform
different jobs, which enriches his skills, experience and ability to perform different jobs. It is
the process of preparing employees at a lower level to replace someone at the next higher
level. It is generally done for the designations that are crucial for the effective and efficient
functioning of the organization. By this to some extent boredom is reduced. However for this
people interest is primary importance. By this they can also learn new things, new techniques,
and new ways of doing better work. It may also happen that over a period of time they will be
finding a job for which they are better suitable. They can also contribute in a better way to
achieve the goals of the organization. This aspect of job rotation can be seen widely applied
in Retail scenario, where end user or consumer is in direct presence all through. This has for
large extent reduced boredom, reduced irregularities due to familiarity, acquired new skills &
assuming new & varied responsibilities. In other words it will lead to better job satisfaction,
which is the ultimate goal for better contribution.

Job Enlargement: Job enlargement means expanding the scope of the job. Many tasks and
duties are aggregated and assigned to a single job. It is opposite to job simplification. Job
enlargement is an extension of Job rotation, exposing the people to several jobs without
changing the job duties to be performed. He is taken off the boring job for a while & is
allowed to take up a related task & so on. Monotony is relieved temporarily. Critics are of the
opinion that this approach involves nothing more than having to perform several boring jobs
rather than one. Job enlargement is to expand in several tasks than just to do one single task.
It is also the horizontal expansion of a job. It involves the addition of tasks at the same level
of skill and responsibility. It is done to keep workers from getting bored. This would also be
considered multi tasking by which one person would do several persons jobs, saving the
company money and man hours that normally would be paid to additional workers. Small
companies may not have as many opportunities for promotions, so they try to motivate
employees through job enlargement. For example when I worked at a restaurant. I would bus
the tables, wash the dishes, and run food upstairs. If they had just one person doing each job
on the same night, it would cost the management three times the money. This adds more
functions; increases variety of tasks & this is short lived. It cannot enrich the human content
of job. The ultimate answer is Job Enrichment. Job Enrichment: Job enrichment means
making the job rich in its contents so that an employee will get more satisfaction while
performing that job. It upgrades the responsibility, scope and challenge. A vast majority of
the jobs are repetitive & monotonous in nature. This results in reducing the motivational
content& human element of the job with repercussions on performance. The central focus of
job enrichment is giving people more control over their work (lack of control is a key cause
of stress, and therefore of unhappiness.) Where possible, allow them to take on tasks that are
typically done by supervisors. This means that they have more influence over planning,
executing, and evaluating the jobs they do. In enriched jobs, people complete activities with
increased freedom, independence, and responsibility. They also receive plenty of feedback, so
that they can assess and correct their own performance. Job Enrichment tries to embellish the
job with factors of motivation: Achievement – Recognition – Increased Responsibilities –
Self Involvement – Opportunities for Growth – Advancement – Increased Competence. Job
Enrichment is concerned with redesigning the job to include a variety of work content; that
gives the person more autonomy & responsibility for planning, directing & controlling his
own performance & provide opportunity for personal growth & meaningful work experience.
Job Enrichment also for decentralization of decision making rights to individual over areas
that directly affect his task functions. The emphasis is on the result of efforts rather than the
procedure to carry out the work, thus making the job result oriented. This also results in
motivation, satisfaction in believing oneself to be personally accountable for results & being
able to know how satisfactory ones efforts are. By Job Enrichment, condition or state of
human capabilities which were not fully utilized & creation of frustration among the
individual is removed to the extent possible

RECRUITMENT

2.1 Introduction The human resources are the most important assets of an organization. The
success or failure of an organization is largely dependent on the caliber of the people working
their in. In order to achieve the goals or the activities of an organization therefore we need to
recruit people with requisite skills qualifications and experience. In today's competitive
environment, choice of the right employees has for reaching implications for an
organization’s functioning. Employees well selected with the right kind of skills, knowledge
and potentials would contribute a lot to the efficient running of the organization. Human
resource problems including attitudes, skills and productivity issues all begin at the stage of
recruiting. With wrong recruitment, the organisation has to pay heavily in terms of low
productivity, low competency and wrong placement. The organisation suffers heavily in
beating competition and brining innovation, if proper recruitment is not done and the right
kind of manpower is not deployed in the organisation. Recruitment is sometimes confused
with employment. The two are not one and the same. Recruitment is just one step in the
process of employment. Similarly recruitment and selection are also different in nature. The
function of recruitment precedes the selection process. Recruitment is concerned with
developing suitable techniques for attracting more and-more candidates while selection is the
process of finding out the most suitable candidate for the job.

2. 2 Meaning and definitions Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organisation. When more persons
apply for jobs then there will be a scope for recruiting better persons. The job-seekers too, on
the other hand, are in search of organisations offering them employment. Recruitment is a
linkage activity bringing together those with jobs and those seeking jobs Recruitment is the
process which prompts people to offer for selection in an organisation. This involves locating
sources of manpower to meet job requirements. In his words, "It is a process of searching for
prospective employees and stimulating and encouraging them to apply for jobs in an
organisation. It is often termed positive in that it stimulates people to apply for jobs to
increase the hiring ratio, i.e., the number of applicants for a job. According to Flippo,
"Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organisation". According to Dale S. Beach
"Recruitment is the development and maintenance of adequate manpower resources. It
involves the creation of a pool of available labour upon when the organization can depend
when it needs additional employees.”

SOURCES OF RECRUITMENT

INTERNAL SOURCES Internal source is one of the important sources of recruitment. The
employees already working in the organisation may be more suitable for higher jobs than
those recruited from outside. The present employees may help in the recruitment of new
persons also. Internal sources consist of the following: 1. Present Employees Promotions and
transfers from among the present employees can be a good source of recruitment. (i) Transfer.
Transfer involves shifting of persons from present jobs to other similar places. These do not
involve any change in rank, responsibility and prestige, the number of persons do not increase
with transfers but vacant posts may be attended to. (ii) Promotions. Promotions refer to
shifting of persons to positions carrying better prestige, higher responsibilities and more
salaries. The higher positions falling vacant may be filled up from within the organisation. A
promotion does not increase the number of persons in the organization position. Promotion
avenues motivate employees to improve their performance so that they get promotions to
higher positions. 2. Employee Referrals Employee referrals can be a good source of internal
recruitment. Employees can develop good prospects for their families and friends by
acquainting them with the advantages of a job with the company furnishing letters of
introduction and even encouraging them to apply. This source is, usually, one by the most
effective methods of recruiting because many qualified people are reached at a very low cost
to the company. In an organisation with a large number of employees, this approach can
provide quite a large pool of potential organisational members. Most employees know from
their own experience about the requirements of the job and what sort of persons the company
is looking for. Often employees have friends or acquaintances who meet these requirements.
A major limitation of employee referral is that the referred individuals are likely to be similar
in type to those who are already working in the organisation. This may lead to informal
groups based on race, religion or sex. 3. Former Employees Former employees are another
internal source of recruitment. Some retired employees may be willing to come back to work
on a part time basis or recommend someone who would be interested in working for the
company. Sometimes, people who have left the company for some reason or the other are
willing to come back and work. Individuals who left for other jobs and greener pastures,
might be willing to come back at higher emoluments. An advantage of this source is that the
performance of these people is already known. 4. Previous Applicants Although not an
internal source, in the true sense, those who have previously applied for jobs can be contacted
by mail. This is a quick and an inexpensive way to fill an unexpected vacancy. This is a very
suitable method for filling the professional openings. EXTERNAL SOURCES Every
enterprise has to use external sources for recruitment to higher positions when existing
employees are not suitable. More persons are needed when expansions are undertaken.
External methods are discussed as follows: 1. Advertisement. Advertisement is the best
method of recruiting persons for higher and experienced jobs. The advertisements are given
in local or national press, trade or professional journals. The requirements of jobs are given in
the advertisements. The prospective candidates evaluate themselves against their
requirements of jobs before sending their applications. Management gets a wider range of
candidates for selection. The flood of applications may create difficulties in the process. 2.
Employment Exchanges. Employment exchanges run by the government are also a good
source of recruitment. Unemployed persons get themselves registered with these exchanges.
The vacancies may be notified with the exchanges, whenever there is a need. The exchange
supplies a list of candidates fulfilling required qualifications. Exchanges are a suitable source
of recruitment for filling unskilled, semi-skilled, skilled and operative posts. The job-seekers
and job givers are brought in contact by the employment exchanges. 3. Unsolicited
Applicants. Persons in search of employment may contact employers through telephone, by
post or in person. Generally, employers with good reputation get unsolicited applications. If
an opening is there or is likely to be there then these persons are considered for such jobs.
Personnel department may maintain a record of unsolicited applications. When jobs suitable
for these persons are available these are considered for employment. 4. Professional
Organisations. Professional organisations maintain complete bio-data of their members and
supply it to companies on demand. These organisations also act as exchange between the
members and recruiting firms. Firms can seek clarifications and clear doubts about persons
they want to recruit. This source of recruitment is found reliable for recruiting persons at
middle and upper levels of management. 5. Data Banks. The recruiting firms can prepare a
data bank about various persons in different fields. They can collect information from
educational institutions, employment exchanges, professional organisations etc. It will
become another source and the firm can get the particulars as and when it needs to recruit. 6.
Similar Organisations. The organisations producing similar products or having the same line
of business act as an important source of recruitment. The persons having same experience as
required by the recruiting firms will be available in similar organisations. This would be the
most effective source for executive positions and newly established or diversified and
expanded organisations. 7. Casual Callers. Management may appoint persons who casually
call on them for meeting short-term demands. This will avoid following a regular procedure
of selection. These persons are appointed for short periods only. They need not be paid
retrenchment or lay off allowance. This method of recruitment is economical because
management does not incur a liability in pensions, insurance and fringe benefits. 8. Labour
Contractors. It is quite common to engage contractors for the supply of labour. When workers
are required for short periods and are hired without going through the full procedure of
selection etc. Contractors or jobbers are the best source of getting them. The contractors
maintain regular contracts with workers at their places and also bring them to the cities at
their own expense. The persons hired under this system are generally unskilled workers. 9.
Trade Unions. Generally, unemployment and underemployed persons make a request to trade
union leaders for finding suitable jobs for them. Union leaders are aware of various vacancies
in firms and also know the management. These leaders can help in the recruitment of suitable
persons. In some organisations trade unions are consulted before starting a recruitment
process for certain categories of employees. In such situations trade union leaders can give
the names of persons available for recruitment. 10.Gate Recruitment. Unskilled workers may
be recruited at the factory gate. In some industries like jute a large number of workers work
as badli or substitute workers. These may be employed whenever a permanent employee is
absent. More efficient among these badli workers may be recruited to fill permanent
vacancies. A notice on the notice board of the company specifying the details of the Job
Vacancies can be put. Such recruitment is called direct recruitment. It is a very economical
method and used mainly for unskilled and casual job vacancies. 11.Campus Recruitment.
Colleges, universities, research laboratories are fertile grounds for recruiters. The Indian
Institutes of Management (IIMs) and the Indian Institutes of Technology (IITS) are on the top
list of avenues for the recruiters. In fact, in some companies recruiters are bound to recruit a
large number of candidates from these institutes every year. Campus recruitment is so much
sought after by the recruiters that each college, university department or institute will have to
have a placement officer to handle recruitment functions. Campus recruitment is often an
expensive process. Majority of those recruited leave the organisations after some time in
search of greener pastures outside. Problems notwithstanding, campus placement is the major
source of recruitment for prestigious companies such as Hindustan Lever Limited, Tata,
Larsen and Toubro etc. 12.Recruiting Agencies. Several private consultancy firms e.g. A.F.
Ferguson Associates, Price Waterhouse Coopers, ABC consultants etc. perform recruiting
function on behalf of client companies by charging fees. These agencies are particularly
suitable for recruitment of executives and specialists. They perform all the functions of
recruitment and selection so that the client is relieved of this burden. But the cost of
recruitment through these agencies is very high. 13.Walk-ins, Write-ins and Talk-ins. Now-a-
days walking-ins are becoming a very popular method of recruitment. Today's newspapers are
full of new openings to be tapped in newer ways. Six out of ten are through walk-in-
interviews. The applicants just walk in with their resumes for interviews. However, the walk
in interviews posts a tough challenge for the interviewers who do not know how many
candidates are to be interviewed. The number of candidates sometimes be varying directly
with the temperature outside. From employee view point, walk-ins are preferable as they are
free from the hassles associated with other methods of recruitment, In write ins, job seekers
send written enquiries and they are asked to complete application forms for further
processing. Talk-ins are also becoming popular now-a-days. Job aspirants are required to
meet the recruiter, on an appropriated date for detailed talks. No application is required to be
submitted in this case. 14. Displaced Persons. Implementation of a project in a particular area
would result in displacement of several hundred inhabitants. Rehabilitating the displaced
persons is a social responsibility of business. Rehabilitation of displaced persons is mandated
by the government and the World Bank has made it conditionality for granting assistance to
the concerned country. However, the track record of companies in this respect is
disappointing. 15. Competitors. Rival firms can be a source of recruitment. Popularly called,
poaching or raiding, this method involves, identifying the right people in rival companies,
offering them better terms and luring them away. There are legal and ethical issues involved
in raiding rival firms for potential candidates. Unfortunately, today's young managers are
known for rootlessness and job hopping. Loyalty to the organisation is a thing of the past.
This is a challenge for the HR managers. 2. 7 METHODS OF RECRUITMENT Methods of
recruitment are different from the sources of recruitment. Sources are the locations where
prospective; employees are available. On the other hand, methods are ways of establishing
links with the prospective employees, Various methods employed for recruiting employees
may be classified into the following categories. 1. Direct Methods. Under direct recruitment,
employee contacts, manned exhibits and waiting lists are used. Representatives of the
organisation are sent to the educational and training institutions for scouting prospective
candidates. These travelling recruiters exchange information with the students, clarify their
doubts, stimulate them to apply for jobs, conduct campus interviews and short list candidates
for further screening. They act in cooperation with placement head of the institution. Another
direct method is to ask employees of the organisation to contact the public and tell them
about the vacancies. Manned exhibits involve sending recruiters to seminars and conventions,
setting up exhibits at fairs and using mobile offices to go to the desired centres. Some
organisations prepare the waiting lists of candidates who have indicated their interest in jobs
in person, through mail or over telephone. 2. Indirect Methods. Advertisement in newspapers,
journals, on the radio and television are used to publicize vacancies. A well thought out and
clear advertisement enables candidates to assess their suitability so that only those possessing
the requisite qualifications will apply. This method is suitable when the organisation wants to
reach out to large target group scattered geographically. Considerable details about jobs to be
filled and qualifications required can be given in the advertisements. But a large number of
candidates may be unsuitable. 3. Third Party Methods. Various agencies can be used to recruit
personnel. Public employment exchanges, management consulting firms, professional
societies, temporary help societies, trade unions, labour contractors are the main agencies In
addition, friends and relatives of existing staff and deputation method can be used.

RECENT TRENDS IN RECRUITMENT The following trends are, being seen in

recruitment: Outsourcing In India, the HR processes are being outsourced from more than a
decade now. A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organisation by the initial screening of the candidates according to
the needs of the organisation and creating a suitable pool of talent for the final selection by
the organisation. Outsourcing firms develop their human resource pool by employing people
for them and make available personnel to various companies as per their needs. In turn, the
outsourcing firms or the intermediates charge the organisations for the services. Advantages
of outsourcing are: 1. Company need not plan for human resources much in advance. 2. Value
creation, operational flexibility and competitive advantage. 3. Turning the management's
focus to strategic level processes of HRM. 4. Company is free from salary negotiations,
weeding the unsuitable resumes/candidates. 5. Company can save a lot of its resources and
time. Poaching/Raiding "Buying talent" (rather than developing it) is the latest mantra being
followed by the organisations today. Poaching means employing a competent and
experienced person already working with another reputed company in the same or different
industry; the organisation might be a competitor in the industry. A company can attract talent
from another firm by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidates. But it is seen as an unethical practice and not
openly talked about. Indian software and the retail sector are the sectors facing the most
severe brunt of poaching today. It has become a challenge for human resource managers to
face and tackle poaching, as it weakens the competitive strength of the firm. E-Recruitment
Many big organizations use Internet as a source of recruitment. E-recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through worldwide
web. The job seekers send their applications or curriculum vitae i.e. CV through e-mail using
the Internet. Alternatively job seekers place their CV's in worldwide web, which can be
drawn by prospective employees depending upon their requirements. Advantages of E-
Recruitment are: • Low cost. • No intermediaries • Reduction in time for recruitment. •
Recruitment of right type of people. • Efficiency of recruitment process. SELECTION 2.10
INTRODUCTION A properly planned recruitment and selection process is required for
appointment of suitable persons. The selection process starts after the receipt of appropriate
number of applications through various sources. The purpose of selection is to assess the
suitability the candidate for employment in the organisation. As, number of all applicants
may be not be suitable, and in order to save time and money of the organization as well as
that of the candidates, it is important to scrutinize the applicants and select only those
candidates for the tests or interview. Suitable from the organization’s part view point. 2.11
MEANING AND DEFINITION To select means to choose. Selection is the process of
picking up individuals (out of the pool of job applicants) with requisite qualifications and
competence to fill jobs in the organisation. According to Dale Yoder, "Selection is the process
in which candidates for employment are divided into two classes those who are to be offered
employment and those who are not". According to Thomas Stone "Selection is the process of
differentiating between applicants in order to identify (and hire) those with a greater
likelihood of success in a job". Thus, the selection process is a tool in the hands of
management to differentiate between the qualified and unqualified applicants by applying
various techniques such as interviews, tests etc. In this sense, it is a negative process of
employment which only a few who qualify for job are offered employment and others are
denied the opportunities. A sound selection policy ensures the selection of suitable
candidates. 2.12 SELECTION The selection procedure consists of a series of methods or
steps or stages by which additional information is secured about an applicant. At each stage
facts may come to light which may lead to the rejection of an applicant. Selection procedure
may be compared to a series of barriers which an applicant is required to cross before he is
finally selected. Essentials of a Selection Procedure The selection procedure should be
prepared in such a way That it suits the organization’s needs. The procedure will be
successful if it satisfies the following requirements: (i) There should be sufficient number of
applicants from whom the required number of candidates may be selected. The selection will
not be proper if number of candidates is less. (ii) There should be some person who is
assigned the authority to select. The authority is given on the basis of type of persons to be
selected and the nature of work they will take up. (iii) There should be some standard of
personnel with which a prospective employee may be compared i.e. there should be available
before hand a comprehensive job specification as developed by job analysis. Significance of
Selection Procedure The success of an organisation depends on the quality of personnel
selected for the jobs. Thus, selection of personnel is a very important function of
management. The importance of selection can be judged from the following factors: 1.
Procurement of Skilled Workers. Only the suitable candidates who are fit for the job are
selected from among the prospective candidates for employment. In this way, selection is a
process by which only desirable candidates are hired and others are denied the opportunities.
2. Reduction in the Cost of Training. Proper selection of candidates reduces the cost of
training because (i) qualified personnel have better grasping power, they can understand the
techniques of work better and in no time; (ii) the organisation can develop different training
programmes for different persons on the basis of their individual differences, thus, reducing
the time and cost of training considerably. 3. Solution to Personnel Problems. Proper
selection of personnel reduces personnel problems in the organisation. Many problems like
labour turnover, absenteeism and monotony shall not be experienced in the organization if
proper selection is made. Labour relations will also be better because workers will be fully
satisfied by their work. Thus, selection of proper personnel helps the management in getting
the work done by the people effectively. 2.13 SELECTION PROCESS The selection
procedure consists of a series of steps. Each step must be successfully cleared before the
applicant proceeds to the next. The selection process is a series of successive hurdles or
barriers which an applicant must cross. These hurdles are designed to eliminate an
unqualified candidate at any point in the selection process. Thus, this technique is called
"SUCCESSIVE HURDLES TECHNIQUE". In practice, the process differs among
organisations and between two different jobs within the same organisation. Selection
procedure for the senior managers will be long drawn and rigorous, but it is simple and short
while hiring lower level employees.

Steps involved in employee selection are explained in detail as follows: 1. External and
Internal Environment Selection is influenced by several external and internal environmental
factors. The important external factors affecting selection are supply and demand of specific
skills in the labour market, unemployment rate, labour market conditions, legal and political
considerations etc. The internal factors are organization’s image, organization’s policy,
human resource planning and cost of hiring. 2. Reception The receipt and scrutiny of
applications is the first step in the process of selection. A receptionist in the personnel
department gives information about new openings to the visitors and receives their
applications. 'The scrutiny of applications is essential to take out those applications which do
not fulfill the requirements of posts. Some people send applications even when they do not
possess the required experience and qualifications. These applicants if called for preliminary
interviews will waste their own time and that of the company. These applications should out
rightly be rejected and information should be sent to the applicants in this regard. 3.
Preliminary Interview Preliminary interview is a sorting process in which the prospective
candidates are given the necessary information about the nature of the job and the
organisation. Necessary information is obtained from the candidates about their education,
skills, experience, expected salary etc. If the candidate is found suitable, he is selected for
further screening. This 'courtesy interview' as it is often called, helps the department screen
out obvious misfits. Preliminary interview saves time and efforts of both the company and the
candidate. It avoids unnecessary waiting for the rejected candidates and waste of money on
further processing of an unsuitable candidate. Preliminary interview is brief and generally
carried out by a junior executive across the counter or at the reception office. Since rejection
rate is high at preliminary interview, the interviewer should be kind, courteous, receptive and
informal. He should give a good account of the company so that the applicant takes a good
view of it and hopes to apply again whenever new opening emanates. 4. Blank Application
Form A blank application form is a widely accepted device for getting information from a
prospective applicant. This is a way of getting written information about candidate's
particulars in his own handwriting. It enables the personnel department to draw tentative
inferences about the applicant's suitability for employment. The information collected in the
application form may also be circulated to various members of selection committee for
enabling them to make a view about different applicants. The information collected in blank
application relates to the following particulars: (i) Bio-data. Bio-data includes name of the
applicant, father's name, date of birth, place of birth, permanent address, height, weight,
identification mark, marital status, physical disability etc. (ii) Educational Qualifications.
This part of educational qualifications relates to education acquired, institutions attended,
percentage of marks, distinctions achieved, technical education acquired, subjects studied,
areas of specialisation. (iii) Work Experience. Application blank also enquires about previous
experience, similar or other jobs held, nature of duties, salaries received, names of previous
employers, reasons for leaving the present job. (iv) Curricular Activities. The information
about participation in extra-curricular activities like N.S.S., N.C.C., debates and
declamations, sports, etc. is also received in blank application form. (v) References. The
applicant is also asked to give some references from where an enquiry may be made about his
nature and work. The references are normally the persons with whom the applicant has
worked but are not related to him. (vi) Salary Demanded. The salary demanded by the
applicant is also given in the application blank. An attempt is made to elicit maximum
information in application blank. The information asked for should be relevant and specific.
It should have relevance to the post he has applied for. The information collected should be
brief and to the point. Questions requiring essay-type answers should be avoided. Evaluation
of Application Forms Application forms may be evaluated in the following ways: 1. Clinical
Methods. Under this method application forms are analysed in such a way that all possible
inferences are drawn about candidates from the information supplied. The personnel traits are
projected in such a way that the suitability of candidates is evaluated against the job
requirements. A properly designed application form can provide clues to a person's leadership
ability, emotional stability, writing ability, assertiveness, attitude towards superiors and other
people, etc. The clinical method makes the use of psychology in framing the application form
and then evaluating it. 2. Weighted Method. In this method different points/traits are assigned
weights. The points are given after reading the answers of applicants in the forms. In
developing a weighted application form it is necessary to identify those items of the
personnel. WEIGHTED APPLICATION BLANKS (WAB) Some organisations assign
numeric values or weights to the responses provided by the applicants. This makes the
application form more job related. Generally, the items that have a strong relationship to job
performance are given higher scores. For example, for a sales representative's position, items
such as previous selling experience, area of specialisation, commission earned on sales, age,
marital status etc. may be given more weightage as compared to caste, religion, language etc.
The total score of each applicant is then obtained by adding the weights of the individual item
responses. The resulting scores are then used in the final selection. WAB is best suited for
jobs where there are many employees specially for sales and technical jobs. It can help in
reducing the employee turnover later on. However, there are several problems associated with
WABs e.g:  It takes time to develop such a form.  The WAB would have to be updated
every few years to ensure that the factors previously identified are still valid products of job
success.  The organisation should be careful not to depend on weights of a few items while
finally selecting the employee. 5. Selection Tests Applicants who pass the screening and the
preliminary interview are called for tests. Different types of tests may be administered
depending on the job and the company. A test provides a systematic basis for comparing the
behaviour, attitudes and performance of two or more persons. Tests are based on the
assumption that individuals differ in their job related traits which can be measured. Tests help
in reducing bias in selection by serving as a supplementary screening device. Tests help in
better matching of candidate and the job. Tests may reveal qualifications which remain
hidden in application form and preliminary interview. Tests are useful when the number of
applicants is large. Moreover, to be effective, tests must be properly designed and
administered. However, test is not a fool proof method. At best, it reveals that the candidates
who have scored above the predetermined cut off points are likely to be more successful than
those scoring below the cut off points. 6. Selection Interview Interview is the oral
examination conducted for the purpose of employment. It is a formal, in depth conversation,
which evaluates the applicant's acceptability. Interview is an excellent selection device. It is a
very flexible device which can be adopted to select unskilled, skilled managerial and
professional employees. In selection interview, the interviewer matches the information
obtained about the candidate through various means to the job requirements and to the
information obtained through his own observations during the interview. Thus, interview is a
purposeful exchange of views, the answering of questions and communication between two
or more persons. Interview gives the interviewer an opportunity: (i) to size up the candidate
personally (ii) to ask questions that are not covered in tests (iii) to make judgments on
candidate's enthusiasm and intelligence (iv) to assess subjective aspects of the candidate-
facial expressions, appearance, nervousness and so forth (v) to give facts to the candidate
regarding the company, its policies, programmes etc. and promote goodwill towards the
company. However, interviews do have some limitations. Absence of reliability is one
limitation. Due to personal and subjective judgments, no two interviewers offer similar
scoring after interviewing an applicant. Lack of validity is another shortcoming. This is
because, few departments use standardized questions upon which validation studies can be
conducted. 7. Checking References The references may provide significant information about
the candidates if they happened to be his former employers or with whom he might have been
working earlier. The applicants are normally asked to name two or three persons who know
about his experience, skill, ability, etc. but should not be related to him. The prospective
employer normally makes an investigation on the references supplied by the candidate and
undertakes search into his past employment, education, personal reputation, etc. Though
checking references may be a good source of information but referees may not give frank
opinion about the candidate. If the referee happens to be a former employer he will, generally,
either praise the candidate or criticize his work and ability. Such extreme postures may not
help in knowing the exact position of candidates. There may be persons who will not say bad
things about a candidate when it is a question of his future. They will say good things about
the candidates. It may be said that checking references does not serve much of a purpose
because no impartial evaluation of the candidates is received from the referees. 8. Final
Selection Up to this stage, selection is handled by personnel department or staff executives.
Since the persons employed are to work under line officers, the candidates are referred to
them. Line officers will finally decide about the work to be assigned to them. If line officer is
a production manager or foreman he may assess on the job performance of the candidates. If
the candidate is not suitable for one job then he is tried at some other. If candidate's
performance is not upto the mark then he may be kept as apprentice for some time. Normally,
a candidate is not rejected at this stage. 9. Physical Examination After the selection decision
and before the job offer is made, the candidate is required to undergo physical fitness test.
Candidates are sent for physical examination either to the company's physician or to a
medical officer approved for the purpose. Such physical examination provides the following
information: (i) Whether the candidate is physically fit for the specific job or not? (ii)
Whether the candidate has health problems or psychological attitudes likely to interfere with
work efficiency or future attendance? (iii)Whether the candidate suffers from bad health
which should be corrected before he can work satisfactorily? (iv)Whether the candidate's
physical measurements are in accordance with job requirements or not? A job offer is, often,
contingent upon the candidate being declared fit after the physical examination. The results of
medical fitness test are recorded in a statement and preserved in the personnel records. Such
records will protect the employer from worker's compensation claims that are not valid
because the injuries or illnesses were present when the employee was hired. 10. Job Offer
The next step in the selection process is the job offer to those applicants who have crossed all
the previous hurdles. Job offer is made in the form of an appointment letter. Such a letter,
generally, contains a date by which the candidate must report for duty. Reasonable reporting
time is given to all the appointed candidates. This is particularly necessary when the
appointed person is already in employment, in which case he has to give notice to the
previous employer. Moreover, the job may require movement to another city which means
considerable preparation and shifting of property and family members. Some organisations
also inform the rejected candidates about their non selection. Their application may, however,
be preserved for future use. The applications of selected candidates are always preserved for
future references. 11. Contract of Employment After the job offer has been made and the
candidate accepts the offer, a contract for employment is executed by the employer and the
candidate. The basic information that is included in a written contract varies according to the
level of the Job. Generally, the following details are included in the contract: (i) Job title (ii)
Details of duties (iii) Date when the continuous employment starts (iv) Remuneration and
method of payments (v) Hours of work including lunch break, overtime and shift
arrangements (vi) Holiday arrangements and details of holidays (vii) Sickness leaves rules
(viii) Length of notice due to or from an employee (ix) Grievance procedure (x) Disciplinary
procedure (xi) Work rules (xii) Terms of Termination of employment (xiii) Terms for union
membership (xiv) Employers right to vary terms of the contract subject to proper notification
being given. Great care is taken in drafting the contracts. Often services of law firms are
obtained to get the contracts drafted and finalized. Employers, who belong to high employee
turnover sectors, insist on agreements being signed by newly hired employees. The limitation
of contracts is that it is almost impossible to enforce them. A determined employee will leave
the organisation, contract or no contract it is for this reason that several companies have
scrapped the contracts altogether. 12. Evaluation. The selection process, if properly
performed, will ensure availability of competent and committed personnel. A period audit,
conducted by people who work independently of the human resource department, will
evaluate the effectiveness of the selection process. The auditors will do a thorough the
intensive analysis and evaluate the employment programme.

IT enabled recruitment and selection

IT-enabled recruitment and selection practices leverage technology to streamline and enhance
various aspects of the hiring process. These practices leverage information technology to
improve efficiency, effectiveness, and candidate experience. Here are some key IT-enabled
practices in recruitment and selection:

1. Applicant Tracking Systems (ATS):

o Functionality: ATS software automates the collection, sorting, and storage of
resumes and applicant information. It allows recruiters to search for candidates
based on specific criteria, track applicant statuses, and manage communication
throughout the hiring process.
o Benefits: ATS improves efficiency by reducing manual tasks, ensures
compliance with hiring regulations, and provides insights into recruitment
metrics and trends.
2. AI and Machine Learning:
o Resume Screening: AI-powered tools can analyze resumes to match
candidate qualifications with job requirements, identify keywords, and rank
candidates based on suitability.
o Chatbots: AI-driven chatbots handle initial candidate queries, schedule
interviews, and provide real-time updates, improving responsiveness and
efficiency.
o Predictive Analytics: Using historical data, AI can predict candidate success
and retention probabilities, helping recruiters make data-driven decisions.
3. Video Interviewing:
o Remote Interviews: Video interviewing platforms enable remote
interviewing, reducing geographical constraints and allowing for flexible
scheduling.
o Asynchronous Interviews: Candidates can record responses to pre-set
questions at their convenience, allowing recruiters to review responses later,
enhancing flexibility and saving time.
 4. Online Assessments:
o Skills Assessments: Online platforms offer assessments to evaluate
candidates’ skills, abilities, and knowledge relevant to the job role.
o Personality and Behavioral Assessments: Tools are used to assess
candidates’ personality traits, behavioral competencies, and cultural fit within
the organization.
5. Social Media and Job Portals:
o Recruitment Marketing: Platforms like LinkedIn, Facebook, and specialized
job portals allow organizations to advertise job openings, engage with
potential candidates, and build their employer brand.
o Passive Candidate Sourcing: Social media platforms enable recruiters to
proactively search for and engage with passive candidates who may not be
actively job-seeking.
6. Mobile Recruitment Apps:
o Accessibility: Mobile-friendly recruitment apps allow candidates to browse
job openings, submit applications, and communicate with recruiters using their
smartphones or tablets, enhancing accessibility and convenience.
7. Data Analytics and Reporting:
o Metrics and Insights: IT tools provide analytics on recruitment metrics such
as time-to-hire, cost-per-hire, applicant sources, and diversity metrics.
o Continuous Improvement: Data-driven insights help recruiters identify areas
for improvement in the recruitment process, optimize strategies, and make
informed decisions.
8. Virtual Reality (VR) and Augmented Reality (AR):
o Simulation and Training: VR and AR technologies are used for immersive
job previews, virtual tours of workplaces, and interactive simulations to assess
candidates’ technical skills and job readiness.

IT-enabled recruitment and selection practices not only streamline administrative tasks but
also enhance the overall candidate experience, improve decision-making, and support
strategic workforce planning. By leveraging these technologies, organizations can gain a
competitive edge in attracting, selecting, and retaining top talent in a digital-first era.

Recent trends in recruitment

1. Virtual Recruiting
Some 70% of the companies say their recruiting and onboarding is at least half virtual
– with 1 in 10 reporting that it is fully virtual. Virtual recruiting will continue to grow,
as will the challenges it presents in affording candidates a close-up look at company
culture and sustained in-person interaction for both the candidate and the company to
determine fit. Top notch virtual recruiting experiences aim to convey company culture
from the first moments a candidate discovers an open role with the organization.

Recruiters play a pivotal role in human capital management (HCM) — or the

practices and strategy your business uses to recruit, train and retain your workforce.
HCM is a framework that aligns your workforce to your business needs. Virtual
recruiting is playing a more significant role in HCM strategies, especially paired with
remote working. No longer is your business limited to finding candidates in the
geographic area of your offices or headquarters. Instead, you can think beyond
geographic boundaries and recruit the best candidate for a position, no matter where
he or she lives.

One example of virtual recruiting playing a strong role in HCM is accounting firm
PwC, which rolled out a mobile-enabled “choose your own adventure” experience
that gives the job seeker more control over the hiring experience. This includes the
ability to self-schedule interview times and choose an interviewer, as well as real-time
visibility for candidates to see where they are in the process. Interviews are
increasingly being conducted virtually, and candidates are being asked how they work
effectively in virtual environments.

2. Remote Work
At least a hybrid of in person and remote work is here to stay. This year will further
loosen geography boundaries on hiring pools – with more than 1/3 of companies
saying they are willing to hire remote workers from anywhere in the world.

Some 60% of applicants want flexibility in when they work and where they work. The
ability to choose remote work technology and equipment (such as standing desks or
noise cancelling headphones), along with providing collaboration technologies and
ways to learn and connect remotely will distinguish companies for job seekers.
Candidates may even begin to set themselves apart with remote work certifications –
 such as the course offered through North Dakota State University, a one-month class
designed to equip workers with the tools and skills needed to work from home.
Companies such as Ring Central are building entirely virtual teams from the very
earliest talent stages. In 2020, the collaboration platform vendor shifted its entire
internship program to virtual – including a supporting summit, as well as a project to
come up with a concept feature for their products.

3. Automation
Candidate relationship management and applicant tracking, which is often managed
using human resources management systems (HRMS), along with digital interviewing
platforms are radically altering the role of recruiters because many formerly manual
processes are being automated. HRMS improves the employee experience — and in
terms of recruiting it can help with resume management, scheduling interviews and
tracking the process for candidate, recruiter and hiring manager. By using HRMS
tools to save time at the earliest stages of the process, recruiters can ease one of the
points that introduces the most friction in the candidate experience – the length of the
recruiting process itself.

In 2024, recruiters will automate more traditionally in-person (or on-the-phone) tasks,
such as candidate screenings and initial interviews. One area experiencing huge
growth in this regard is asynchronous video technology – software that allows
applicants to film themselves answering a set of questions. Video technology helps
companies speed up the applicant to hire process – often on a massive scale. For
instance, Walmart’s “Project 24” – which has a goal of getting from a job opening to
a job acceptance within 24 hours – has aimed to ease the process of setting up in-
person interviews, messaging back and forth and scheduling and rescheduling. A pre-
employment assessment and a phone interview replaced that process. The
combination of efforts has driven down the time to identify a hire to making an offer
from 14.5 days to 3.5 days.

4. Artificial intelligence
AI technology is used to source candidates, review resumes and schedule interviews.
Some platforms leverage AI to comb through answers to written interview questions –
learning from the data and using algorithms to push the candidates forward that are
 the best fit. Recruiters are pretty bullish on AI — some 36% of recruiters say AI
would make their jobs better. They reported using AI for job recommendations on
career sites, candidate matching, job description recommendations, candidate
screening with automated messages and candidate engagement scoring. One of the
areas in which AI holds particular promise is in removing bias from job descriptions.
AI-powered writing tools can replace language that may be biased or gendered in job
descriptions. Leveraging these tools, Deloitte says one consumer goods company saw
a 30% increase in the number of qualified applicants, while another tech company
saw the job descriptions attract 28% more women and fill the positions 50% faster.

5. Chatbots
Chatbots used in the recruiting process are helping to convert more applicants and
increase the number of candidate leads. Chatbots are valuable, for instance, in giving
candidates the opportunity to learn more about the organization before even applying
– and subsequently reducing time spent answering those types of questions by a
human recruiter. Career sites with chatbots compared to those without chatbots
had 95% more conversion to leads, 40% more job seekers complete applications and
13% more job seekers click on a job requisition. Common topics candidates ask
chatbots about include how to apply, the status of applications, benefits and
compensation and questions about searching for specific roles. Marriott International
was one of the first hospitality companies to deploy recruitment chatbots. These AI-
powered chatbots guide users to open roles and even serve up relevant content to
educate them on the positions.

6. Predictive Analytics
Part of the role of the recruiter is to help attract, identify and convert the best quality
candidates to boost productivity at your company. And you can make highly educated
guesses for who will be the best for any particular role. But predictive analytics puts
data behind those decisions and helps you make even more informed estimates. It uses
historic and current data to make predictions about the future. In HR, predictive
analytics takes data from your HRMS, resumes, job descriptions and other areas to
predict outcomes about applicants. Some of the areas it might track would include the
cultural fit, their likelihood to remain with the company, their ability to learn new
skills and their ability to become and stay engaged. A single job posting at JP Morgan
 can attract thousands of applicants. The company uses machine learning algorithms to
help sort those resumes and use them as a tool to aid recruiters as they comb through
the stacks of applicants. The machine learning tries to identify what types of
applicants are more likely to be interviewed and hired and find trends in what types of
applicants are likely to stay on, especially in high turnover roles. While computers
aren’t making the hiring decisions, their recommendations are serving as important
tools for recruiters.

7. Benefits Expansion
Medical and dental coverage remain the most desired benefits among employees and
are one of the most effective tools in recruiting new candidates. But many job seekers
are looking beyond standard medical and dental coverage. Roughly half of U.S.
employees want more help from employers to save for retirement, balance work and
life and get more value from their benefits. Expanding benefits can be an effective
way to attract more candidates, especially for hard to fill roles, such as finance,
developers and other highly skilled positions.

 Mental health: One of the areas in sharp focus for both the potential
employee and the employer is mental health. About half of recruiters said job
seekers are asking about mental health benefits more frequently. The CDC
reports that symptoms of anxiety disorder and depressive disorder are
increasing considerably in the U.S. To that end, more employers are providing
special emotional and mental health programs – including free or discounted
access to mental health apps and activities like yoga. PwC is offering
employees access to a wellness coach, and Power Home Remodeling has
decreased its employee co-pays from $50 to $20 for in-network therapy
providers.

8. Empathy
Creating a culture that encourages employees to think about the needs and feelings of
others is a guiding principle of leadership today. Empathy can play a big role in
recruiting, and those doing the hiring and onboarding can gain much insight by
putting themselves in the shoes of candidates and new hires. Too often candidates
experience the phenomenon of the vanishing recruiter — where a recruiter withdraws
from all communication without any explanation, even after an initial interview.
 Infusing empathy into the recruiting process for all candidates, not just those who are
hired, will leave potential employees with a much better view of the company. This is
especially important considering that 77% of recruiters report having hired a
candidate who was not the first pick for another position.

9. Flexibility and Adaptability

Agility — or the ability to quickly maneuver and adapt your business— is key for
recruiters in 2021. One popular trend for flexibility in HR is hiring temporary workers
and contractors. Doing so can help you adjust to uncertainties in budgets and
fluctuating revenue while maintaining business continuity. Some 70% of executives
expect to hire more temporary and contract workers this year. For instance, the
Alphabet City Beer (ABC Beer Co.) hired freelancers to power its shift to a primarily
online operation – giving the company the ability to launch and run ecommerce
quickly.

10. Social Recruiting

Recruiting with LinkedIn is old news by this point. But recruiters are broadening their
scope and working on Facebook, Twitter, Instagram and more to find high quality
candidates and try to appeal and market to them via social media. Some 78% of
recruiters expect that recruiting activities will increase on social media
platforms outside of LinkedIn this year. And while phone and email remain the most
effective recruiting tools, social recruiting is predictably making major gains among
younger generations. Instagram continues to rise in use as a platform for recruiting –
growing from 18% in 2017 to 37% of recruiters using it today.

Companies like Verizon, for instance, are leveraging Instagram in creative ways to
engage people for tough-to-find roles, such as developers and engineers. The telecom
giant, as an example, presented its Instagram audience with a difficult to solve puzzle
and the tagline, “Think you can crack this code? If so apply to be a #Verizon
#Software #Developer today.”

11. Webinars
The absence of job fairs will cut off a channel especially effective in recruiting early
talent, as well as talent needed for geographic expansions. Compared to Instagram,
webinars may look a little old hat, but will continue to prove especially effective in
 recruiting talent by creating brand awareness and bringing the right people into the
recruitment pipeline. Companies will use webinars in a way that drives recognition
and positive associations with the business. For instance, the International Atomic
Energy Agency hosted a webinar for women interested in careers in the nuclear field.
The speakers shared information about their current projects and provided advice on
career paths.

12. Candidate Matching

Some 32% of recruiters use candidate matching software – and it’ll continue to show
its worth in 2023. Candidate match technology leverages AI and machine learning to
automate the screening of resumes and shortlisting applicants. Candidate matching
technology is extremely valuable in companies that have a lot of open positions and
get a lot of resumes on a regular basis. Canadian bookstore and music chain Indigo
can receive as many as 2,200 applications a week. It feared a degradation of its
exceptional hiring experience, and also that it might be missing out on talented people
because they were applying for specific roles. With AI it reduced its cost per hire by
71%, tripled qualified candidates, removed potential for hiring bias and ultimately
improve recruiter efficiency by 3.7 times over.

13. Recruitment Marketing

Recruitment marketing applies the concept of the marketing funnel to the recruiting
process – breaking the process and activities into awareness, interest, decision and
action stages. It targets not only people who apply, but also anyone who might be
interested. As such, it requires many of the same elements as content marketing –
finding the target audience, creating content unique to them, finding ways and
channels to best distribute it to them, capturing leads, pushing them on and measuring
the impact of your efforts with recruitment key performance indicators (KPIs). Some
leading companies have content writers who are part of the recruiting function. As an
example, accounting firm KPMG has a role dedicated to creating content solely for
the purpose of talent acquisition.

 Creative job descriptions: One area of focus is upping the creativity factor in
job descriptions themselves. The challenge is the balance of clearly describing
the work involved and giving the applicant a sense of the company culture.
 GitHub, for instance, lists its leadership principles, such as “customer
obsessed - trust by default - ship to learn” and others on every job description.
Retail giant Target makes sure to list “what we are looking for,” in required
skills, which moves beyond typical job skills and tries to describe the culture
and work environment.

14. Internal Recruiting

Hip to the benefits it presents in terms of finding qualified people and reducing
recruiting costs and improving employee retention, internal recruiting has become a
major talent strategy at many organizations. LinkedIn data shows there has been a
10% increase in internal hiring since 2015. But interestingly enough, recruiters aren’t
doing the internal recruiting — with research showing that most employees learn of
openings by searching internal postings, through relationships with hiring managers
or by word of mouth. Companies like Schneider Electric take a much more proactive
approach. The company launched an AI-powered internal mobility platform based on
data that 47% of people leaving the company couldn’t find another appealing internal
role. Employees create profiles that include their aspirations, skills and interests and
receive suggestions not only for full-time roles, but projects, training, mentoring
opportunities and more.

15. Diversity, Equity and Inclusion (DEI)

Commitment to DEI is critically important to businesses and job seekers — one-third
of recruiters say applicants are inquiring about DEI. Diversity in hiring is a growing
priority for recruiters. Just 13% said it was important in 2017, but that has leapt to
22% in 2021. Companies like Starbucks are tying DEI recruiting goals to their
business and strategic initiatives. For instance, Starbucks set inclusion and diversity
goals of achieving at least 30% representation of Black, Indigenous and People of
Color (BIPOC) at all corporate levels and at least 40% at all retail and manufacturing
and retail roles by 2025. It will tie DEI measurements to executive compensation
starting in FY21.

Some areas companies can focus on to attract and eventually hire more diverse
candidates include how job descriptions are written and who interviews candidates. In
2020’s Diversity Best Practices Inclusion Index, all of the companies in the top 10%
require diverse candidates in interview slates, but only 75% require that the panel of
 interviews are diverse. Job descriptions should be mindful of inclusive language –
taking out gender-coded words like “rock-star” or “ninja” or “guru” and just saying
what the job is. LinkedIn recommended keeping the “must-haves” to what is actually
a must-have and describing attributes needed to perform the job.

16. Employer Branding

Employer branding is when companies create and maintain a positive image for their
reputation as an employer. Branding helps businesses attract top talent, retain current
employees, and differentiate a company from its competitors. Companies looking to
brand themselves as top employers need to focus on creating a culture that promotes
employees being themselves. This can stem from employee advocacy programs and
from showcasing the company's values and mission. Not only does branding help
bring in top talent, but it can also increase job satisfaction for existing employees
which in turn improves productivity and impacts the bottom line. In today's
competitive job market, investing in employer branding is essential for companies to
stand out and attract the best talent.

17. Technology & Software

In all of these trends, technology will play a key role for the recruiting team in
ensuring that companies can quickly and effectively find talent. As the U.S. economy
adds six million jobs before 2029, challenges recruiters traditionally faced —
maintaining an efficient recruitment pipeline, marketing hard-to-fill roles and other
issues — will be exacerbated by shifting market conditions. HCM software can help
you adapt and power a more efficient recruitment process. From resume management,
to scheduling and sharing information about the interview process with hiring
managers and candidates alike, recruiters can cut down on manual tasks and focus on
more strategic areas with the aid of advanced HCM platforms. Additionally, the
software helps you track important KPIs, such as time-to-fill and others, to show
leadership and management how your efforts are impacting the bottom line.

INDUCTION

Induction, also known as onboarding or orientation, is the process of integrating a new

employee into the organization and its culture. It aims to familiarize the new employee with
their role, responsibilities, colleagues, and organizational practices. A well-planned induction
process enhances employee satisfaction, accelerates productivity, and improves retention
rates. Here’s a detailed explanation of induction, including its types, process, and methods:

Types of Induction

1. Formal Induction Programs:

o Structured Programs: These include scheduled activities such as orientation
sessions, introductions to key personnel, company policies and procedures
briefings, and training sessions. Formal induction programs provide a
systematic introduction to the organization.

2. Informal Induction:
o Buddy System: Assigning a more experienced employee (buddy) to guide and
support the new employee during their initial days or weeks. This approach
fosters informal learning and integration.
o Shadowing: Allowing the new employee to shadow a more experienced
colleague to observe daily tasks and routines firsthand.

3. Role-Specific Induction:
o Tailoring the induction process to the specific requirements and
responsibilities of the new employee’s role. This may include job-specific
training, introductions to departmental procedures, and hands-on learning
opportunities.

4. Socialization Induction:
o Emphasizing the social aspects of integration, such as introducing the new
employee to team members, organizing social events, and facilitating
networking opportunities within the organization.

Induction Process

The induction process typically consists of several stages designed to help new employees
acclimate to their new roles and surroundings:

1. Pre-arrival Preparation:
 o Sending welcome messages, employment contracts, and any necessary pre-
employment paperwork to the new employee before their start date.

2. First Day Orientation:

o Providing an overview of the organization’s mission, values, history, and
culture. Introducing key personnel, including managers, supervisors, and team
members.

3. Job Training and Familiarization:

o Offering job-specific training to familiarize the new employee with their
duties, responsibilities, and performance expectations. This may involve
formal training sessions, job shadowing, or hands-on learning.

4. Introduction to Policies and Procedures:

o Explaining organizational policies, procedures, and administrative details such
as benefits enrollment, payroll information, and workplace health and safety
guidelines.

5. Integration and Socialization:

o Facilitating interactions with colleagues and team members to build
relationships and establish rapport. Encouraging participation in team
meetings, collaborative projects, and social activities.

6. Ongoing Support and Feedback:

o Providing ongoing support, guidance, and feedback to help the new employee
adjust to their role and address any questions or concerns they may have.

Methods of Induction

1. Welcome Packs and Materials:

o Providing new employees with welcome packs containing company
information, organizational charts, employee handbooks, and other relevant
documents.

2. Orientation Sessions:
 o Conducting formal orientation sessions covering organizational policies,
values, benefits, and expectations. These sessions may be led by HR
professionals, senior managers, or department heads.

3. Training Workshops and Seminars:

o Offering workshops, seminars, or online training modules to impart job-
specific skills, technical knowledge, and professional development
opportunities.

4. Mentorship Programs:
o Pairing new employees with experienced mentors who can provide guidance,
advice, and support throughout the induction period and beyond.

5. Feedback and Evaluation:

o Seeking feedback from new employees to assess the effectiveness of the
induction process and identify areas for improvement. This helps to
continuously refine and enhance the onboarding experience.

Considerations in Induction

 Personalization: Tailoring the induction process to meet the individual needs and
learning preferences of each new employee.
 Integration with Training: Integrating induction activities with ongoing training and
development initiatives to support continuous learning and career growth.
 Cultural Integration: Helping new employees understand and embrace the
organization’s culture, values, and norms to facilitate cultural integration and
alignment.

An effective induction process sets the stage for a positive employee experience, enhances
job satisfaction and retention, and contributes to organizational success by ensuring that new
employees become productive members of the team quickly and effectively.
PLACEMENT

In Human Resource Management (HRM), "placement" refers to the process of assigning an

employee to a specific job role within the organization based on their qualifications, skills,
experience, and organizational needs. It involves matching the individual’s capabilities with
the job requirements to ensure optimal performance and productivity. Here’s a detailed
explanation of placement, including its types, process, and methods:

Types of Placement

1. Internal Placement:
o Promotion: Advancing an existing employee to a higher-level position within
the organization due to their performance, experience, or potential.
o Transfer: Moving an employee to a different position in the same department
or another department within the organization.
o Lateral Move: Shifting an employee to a different position at the same level
of responsibility, often to broaden their experience or utilize their skills in a
different context.
o Demotion: Moving an employee to a lower-level position due to performance
issues or organizational restructuring.

2. External Placement:
o Direct Hiring: Recruiting candidates externally to fill specific job vacancies
within the organization.
o Contractual Hiring: Engaging individuals on a contract basis for short-term
assignments or specific projects.
o Consultants or Agency Hires: Hiring external consultants or agency workers
to fulfill temporary or specialized roles.

Placement Process

The placement process involves several steps designed to effectively assign employees to
suitable job roles:

1. Job Analysis:
 o Conducting a thorough analysis of the job role to identify its key
responsibilities, required skills, qualifications, experience, and competencies.

2. Candidate Identification:
o Identifying potential candidates for placement through internal job postings,
employee referrals, talent pools, or external recruitment efforts.

3. Screening and Evaluation:

o Assessing candidates’ qualifications, skills, experience, and suitability for the
job role through application reviews, interviews, assessments, and reference
checks.

4. Decision Making:
o Making a final decision on the most suitable candidate for the job role based
on the evaluation criteria, organizational needs, and strategic objectives.

5. Offer and Placement:

o Extending a job offer to the selected candidate, including details such as
compensation, benefits, start date, and other terms of employment.
o Facilitating the placement process by coordinating with various stakeholders,
such as HR personnel, hiring managers, and department heads.

Methods of Placement

1. Skills Assessment:
o Evaluating candidates’ technical skills, competencies, and proficiency through
skills assessments, tests, or simulations relevant to the job role.

2. Interviews:
o Conducting structured interviews to assess candidates’ qualifications,
experience, problem-solving abilities, interpersonal skills, and cultural fit
within the organization.

3. Job Matching and Analysis:

 o Matching candidates’ qualifications, skills, and competencies with the
requirements of the job role through systematic job analysis and competency
mapping.

4. Internal Mobility Programs:

o Implementing programs and initiatives to encourage internal career
development, mobility, and advancement opportunities within the
organization.

5. Talent Management Systems:

o Utilizing technology-driven talent management systems to streamline the
placement process, track candidate progress, and facilitate data-driven
decision-making.

Considerations in Placement

 Organizational Needs: Aligning placement decisions with the organization’s

strategic goals, operational requirements, and workforce planning initiatives.
 Employee Development: Supporting employee career growth, skill enhancement,
and professional development through strategic placement and career pathing.
 Diversity and Inclusion: Promoting diversity and inclusion by considering
candidates from diverse backgrounds, experiences, and perspectives for placement
opportunities.
 Employee Engagement: Enhancing employee engagement, job satisfaction, and
retention by ensuring that employees are placed in roles that leverage their strengths
and interests.

Effective placement practices contribute to organizational success by ensuring that employees

are assigned to roles where they can maximize their potential, contribute effectively to
business objectives, and thrive in their careers within the organization.

COMPENSATION MANAGEMENT

Compensation management, also known as wage and salary administration, remuneration

management, or reward management, is concerned with designing and implementing total
compensation package. Compensation is the human resource management function that deals
with every type of reward individuals receive in exchange for performing an organizational
task. Compensation is referred to as money and other benefits received by an employee for
providing services to his employer.

Different Types of Compensation There are different types of compensation. Schuler

identified three major types of compensation, which are mentioned below;

1. Non-monetary Compensation.

2. Direct Compensation.

3. Indirect Compensation.

Non-monetary Compensation It includes any benefit that an employee receives from an

employer or a job that does not involve tangible value. Examples are career development and
advancement opportunities, opportunities for recognition, as well as work environment and
conditions. Direct Compensation Direct Compensation comprises of the salary that is paid to
the employees along with the other health benefits. Money is included under direct
compensation. It is an employee’s base wage which can be an annual salary or hourly wage
and any performance-based pay that an employee receives. Direct compensation consisting of
pay received in the form of wages, salaries, bonuses, and commissions provided at regular
and consistent intervals. These include the basic salary, house rent allowances, medical
benefits, city allowances, conveyance, provident funds, etc. It also includes bonuses,
payments for holidays, etc

Indirect Compensation Indirect compensation can be thought of as the nonmonetary benefits

an employee gets from the organization. It includes everything from legally required public
protection programs such as Social Security to health insurance, retirement programs, paid
leave, childcare or moving expenses. While benefits come under indirect compensation and
may consist of life, accident, health insurance, the employer’s contribution to retirement, pay
for a vacation, employer’s required payment for employee welfare as social security

Rewards and recognitions, promotions, responsibility, etc., are some factors that induce
confidence in the employees and motivate them to perform better. It also instills the faith in
them that their good work is being recognized and they can boost their career opportunities if
they continue to work harder. Objectives of Compensation Management The basic objective
of compensation management can be briefly termed as meeting the needs of both employees
and the organization. Employers want to pay as little as possible to keep their costs low.
Employees want to get as high as possible. Objectives of compensation management are: 1.
Acquire qualified personnel. 2. Retain current employees. 3. Ensure equity. 4. Reward desired
behavior. 5. Control costs. 6. Comply with legal regulations. 7. Facilitate understanding. 8.
Further administrative efficiency. 9. Motivating Personnel. 10. Consistency in Compensation.
11. To be adequate

Pre-requisites for Effective Compensation Management An effective compensation system

should fulfill the following criteria: 1. Adequate: Minimum governmental, union, and
managerial pay level positions must be met by the compensation system. 2. Equitable: Care
should be taken so that each employee is paid fairly, in line with his/her abilities, efforts,
education, training, experiences, competencies, and so on. 3. Balanced: Pay, benefits, and
other rewards must provide a reasonable compensation package. 4. Secure: Employees
security needs must be adequately covered by the compensation package. 5. Cost-Effective:
Pay must be neither excessive nor inadequate, considering what the enterprise can afford to
pay. 6. Incentive Providing: The compensation package should be such that it generates
motivation for effective and productive work. 7. Acceptable to all Employees: All employees
understand the pay system well and feel it is reasonable for the enterprise and the individual

DEVELOPING PAY LEVELS

Developing pay levels in organizations involves establishing a structured framework for

determining the compensation levels for different job roles based on various factors. Here’s a
comprehensive guide on how organizations can develop pay levels:

1. Conduct Job Analysis

 Job Evaluation: Evaluate each job role within the organization to determine its
relative worth based on factors such as skills required, responsibilities, qualifications,
and experience.
 Job Descriptions: Develop detailed job descriptions outlining key duties,
responsibilities, and requirements for each position to provide clarity on job content.
2. Determine Compensation Strategy

 Market Analysis: Conduct benchmarking studies to compare the organization's pay

levels with industry standards and competitors to ensure competitiveness in the labor
market.
 Internal Equity: Ensure fairness and consistency in pay levels across similar job
roles within the organization to maintain internal equity and minimize pay disparities.

3. Develop Pay Structure

 Pay Grades or Bands: Group jobs with similar value and responsibilities into pay
grades or bands based on job evaluation results and market analysis.
 Salary Ranges: Establish minimum, midpoint, and maximum salary ranges for each
pay grade to provide flexibility in setting individual compensation levels based on
factors like experience and performance.

4. Consider External Factors

 Economic Conditions: Consider economic factors such as inflation rates, cost of

living adjustments, and prevailing wage rates in the market when developing pay
levels.
 Legal Compliance: Ensure compliance with local, state, and federal laws regarding
minimum wage requirements, overtime pay, and nondiscrimination in compensation
practices.

5. Performance-Based Pay

 Merit Increases: Implement merit-based pay increases to reward employees for

individual performance, skills development, and contributions to organizational goals.
 Incentive Programs: Develop incentive programs such as bonuses, profit-sharing, or
commission structures tied to individual or team performance metrics to motivate
employees and align compensation with business objectives.
6. Communication and Transparency

 Clear Communication: Clearly communicate the organization's pay structure, salary

ranges, and compensation policies to employees to foster transparency and
understanding.
 Employee Engagement: Engage with employees to gather feedback on
compensation practices, address concerns, and demonstrate fairness in pay decisions.

7. Review and Adjust

 Regular Reviews: Conduct periodic reviews of pay levels, market trends, and
organizational needs to ensure that the compensation strategy remains competitive,
equitable, and aligned with business goals.
 Adjustments: Make adjustments to pay levels and salary ranges as needed based on
changes in market conditions, organizational growth, or shifts in job responsibilities.

Key Considerations

 Equity and Fairness: Ensure fairness and equity in compensation practices to

maintain employee morale, motivation, and retention.
 Retention and Recruitment: Develop pay levels that attract top talent and retain key
employees by offering competitive compensation packages.
 Alignment with Business Goals: Align compensation strategies with organizational
objectives, culture, and values to support employee engagement and performance.

By following these steps and considerations, organizations can develop effective pay levels
that support their overall HR strategy, attract and retain talent, and contribute to sustained
organizational success. Regular monitoring and adjustments ensure that the compensation
framework remains relevant and competitive in a dynamic business environment.

JOB EVALUATION

JOB EVALUATION: 4.1 Job Evaluation Job evaluation aims to provide this equity and
consistency by defining the relative worth of different jobs in an organisation. Job evaluation
is the process of determining the relative worth of different categories of job by analyzing
their responsibilities and consequently, fixation of their remuneration. 4.2 Objectives of Job
Evaluation The basic objective of job evaluation is to determine the relative contributions that
the performance of different jobs makes towards the realization of organizational objectives.
This basic objective of job evaluation serves a number of purposes which may be grouped
into three categories: wage and salary fixation, restructuring job hierarchy, and overcoming
anomalies. 4.3 FEATURES OF JOB EVALUATION The purpose of job evaluation is to
produce a defensive ranking of jobs on which a rational and acceptable pay structure can be
built. The important features of job evaluation may be summarized thus:  It tries to access
jobs, not people.  The standards of job evaluation are relative, not absolute  The basic
information on which job evaluations are made is obtained from job analysis.  Job
evaluations are carried out by groups, not by individuals.  Some degree of subjectivity is
always present in job evaluation.  Job evaluation does not fix pay scales, but merely
provides a basis for evaluating a rational wage structure. 4.4 PROCESS OF JOB
EVALUAITON The process of job evaluation involves the following steps:  Gaining
acceptance: Before undertaking job evaluation, top management must explain the aim and
use of the programme to the employees and unions. To elaborate the programme further, oral
presentations could be made. Letters, booklets could be used to classify all relevant aspects of
the job evaluation programme.  Creating job evaluation committee: It is not possible for a
single person to evaluate all the key jobs in an organization. Usually a job evaluation
committee consisting of experienced employees, union representatives and HR experts is
created to set the ball rolling.  Finding the jobs to be evaluated: Every job need not be
evaluated. This may be too taxing and costly. Certainly key jobs in each department may be
identified. While picking up the jobs, care must be taken to ensure that they represent the type
of work performed in that department.  Analyzing and preparing job description: This
requires the preparation of a job description and also an analysis of job needs for successful
performance.  Selecting the method of evaluation: The most important method of evaluating
the jobs must be identified now, keeping the job factors as well as organizational demands in
mind.  Classifying jobs : The relative worth of various jobs in an organisation may be found
out after arranging jobs in order of importance using criteria such as skill requirements,
experience needed, under which conditions job is performed, type of responsibilities to be
shouldered, degree of supervision needed, the amount of stress caused by the job, etc.
Weights can be assigned to each such factor. When we finally add all the weight, the worth of
a job is determined. The points may then be converted into monetary values.  Installing the
programme: On the evaluation process is over and a plan of action is ready, management
must explain it to employees and put it into operation.  Reviewing periodically: In the light
of changes in environmental conditions (technology, products, services, etc.) jobs need to be
examined closely. For example, the traditional clerical functions have undergone a rapid
change in sectors like banking, insurance and railways, after computerization. New job
description need to be written and the skill needs of new jobs need to be duly incorporated in
the evaluation process. Otherwise, employees may feel that all relevant job factors – based on
which their pay has been determined – have not been evaluated properly. 4.5 ESSENTIALS
FOR THE SUCCESS OF A JOB EVALUATION PROGRAMME Following are the
essentials for the success of a job evaluation programme: 2.Compensable factors should
represent all of the major aspects of job content. Compensable factors selected should (a)
avoid excessive overlapping or duplication; (b) be definable and measurable; (c) be easily
understood by employees and administrators; (d) not cause excessive installation or
administrative cost; and (e) be selected with legal considerations in mind. 3.Operating
mangers should be convinced about the techniques and programme of job evaluation. They
should also be trained in fixing and revising the wages based on job evaluation. 4.All the
employees should be provided with complete information about job evaluation programme.
5.All groups and grades of employees should be covered by the job evaluation programme.
6.The programme of – and techniques selected for – job evaluation should be easy to
understand by all the employees. 7.Trade unions acceptance and support to the programme
should be obtained. Experts have advanced certain guidelines for conducting the job
evaluation programme in a systematic way : 1. Rate the job – not the person or employee on
the job. 2. Strive to collect all the facts accurately. 3. Look especially for distinguishing
features of jobs and for relationship to other jobs. 4. Study jobs independently and
objectively, and then discusses views thoroughly and open- mindedly before reaching final
decisions. 5. Job evaluation must be conducted systematically, based on factual and accurate
information. 6. The results of job evaluation must be fair and rational and unbiased to the
individuals being affected. 4.6 BENEFITS OF JOB EVALUAITON The pay offs from job
evaluation may be stated thus:  It tries to link pay with the requirements of the job.  It offers
a systematic procedure for determining the relative worth of jobs. Jobs are ranked on the
basis of rational criteria such as skill, education, experience, responsibilities, hazards, etc. and
are priced accordingly.  An equitable wage structure is a natural outcome of job evaluation.
An unbiased job evaluation tends to eliminate salary inequities by placing jobs having similar
requirements in the same salary range.  Employees as well as unions participate as members
of job evaluation committee while determining rate grades for different jobs. This helps in
solving wage related grievances quickly.  Job evaluation, when conducted properly and with
care, helps in the evaluation of new jobs.  It points out possibilities of more appropriate use
of the plant’s labour force by indicating jobs that need more or less skilled workers than those
who are manning these jobs currently. 4.7 JOB EVALUATION METHODS There are three
basic methods of job evaluation: (1) ranking, (2) classification, (3) factor comparison. While
many variations of these methods exist in practice, the three basic approaches are described
here. 1. Ranking Method Perhaps the simplest method of job evaluation is the ranking
method. According to this method, jobs are arranged from highest to lowest, in order or their
value or merit to the organisation. Jobs can also be arranged according to the relative
difficulty in performing them. The jobs are examined as a whole rather than on the basis of
important factors in the job; the job at the top of the list has the highest value and obviously
the job at the bottom of the list will have the lowest value. Jobs are usually ranked in each
department and then the department rankings are combined to develop an organizational
ranking. The variation in payment of salaries depends on the variation of the nature of the job
performed by the employees. The ranking method is simple to understand and practice and it
is best suited for a small organisation. Its simplicity however works to its disadvantage in big
organizations because rankings are difficult to develop in a large, complex organisaiton.
Moreover, this kind of ranking is highly subjective in nature and may offend many
employees. 2. Classification Method According to this method, a predetermined number of
job groups or job classes are established and jobs are assigned to these classifications. This
method places groups of jobs into job classes or job grades. Separate classes may include
office, clerical, managerial, personnel, etc. Following is a brief description of such a
classification in an office. (a) Class I – Executives: Further classification under this category
may be Office Manager, Deputy Office Manager, Office superintendent, Departmental
supervisor etc. (b) Class II – Skilled workers: Under this category may come the Purchasing
assistant, Cashier, Receipts clerks, etc. (c) Class III – Semiskilled workers: Under this
category may come Steno typists, Machine-operators, Switchboard operator etc. (d) Class IV
– Semiskilled workers: This category comprises Daftaris, File clerks, office boys etc. 3.
Factor Comparison Method Under this method, instead of ranking complete jobs, each job is
ranked according to a series of factors. These factors include mental effort, physical effort,
skill needed, responsibility, supervisory responsibility, working conditions and other such
factors (for instance, know- how, problem solving abilities, accountability etc.) Pay will be
assigned in this method by comparing the weights of the factors required for each job, i.e. the
present wages paid for key jobs may be divided among the factors weighted by importance
(the most important factor, for instance, mental effort, receives the highest weight). In other
words, wages are assigned to the job in comparison to its ranking on each job factor. 4. Point
Method This method is widely used currently. Here, jobs are expressed in terms of key
factors. Points are assigned to each factor prioritizing each factor in order of importance. The
points are summed up to determine the wage rate for the job. Jobs with similar point totals are
placed in similar pay grades. The procedure involved may be explained thus : a. Select key
jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility,
etc. b. Divide each major factor into a number of sub factors. Each sub factor is defined and
expressed clearly in the order of importance, preferably along a scale. The most frequent
factors employed in point systems are (i) skill (key factor) : Education and training required,
Breadth/depth of experience required, Social skills required, problem- solving skills, Degree
of discretion/use of judgment, Creative thinking (ii) Responsibility/Accountability : Breadth
of responsibility, Specialialised responsibility, Complexity of the work, Degree of freedom to
act, Number of nature of subordinate staff, Extent of accountability for equipment / plant,
Extent of accountability for product/materials; (iii) Effort : Mental demands of a job, physical
demands of a job, Degree of potential stress. c. Find the maximum number of points assigned
to each job (after adding up the point values of all sub-factors of such a job). This would help
in finding the relative worth of a job. d. Once the worth of a job in terms of total points is
expressed, the points are converted into money values keeping in view the hourly/daily wage
rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the
organisation.

INTERNAL EQUITY

Internal equity in the context of Human Resource Management refers to the fairness and
consistency of compensation and rewards within an organization. It ensures that employees
are paid fairly relative to their job roles, responsibilities, skills, and contributions, regardless
of factors like gender, race, or other irrelevant characteristics. Here’s a detailed explanation
of internal equity and its importance:

Understanding Internal Equity

1. Fairness and Consistency:

o Internal equity emphasizes fairness in how employees are compensated based
on the value of their work within the organization. It aims to eliminate
 disparities in pay for employees performing similar work or roles of
comparable value.

2. Job Evaluation:
o Job evaluation is a systematic process used to assess the relative worth of
different jobs within the organization. It considers factors such as job
complexity, skills required, responsibilities, and impact on organizational
goals. The results of job evaluations help establish the internal hierarchy and
structure for compensation.

3. Pay Structure:
o Based on job evaluations, organizations establish pay structures that group
jobs into pay grades or bands. Jobs within the same pay grade are considered
similar in terms of their value to the organization and are compensated within
a defined salary range.

4. Salary Administration:
o Salary administration practices ensure that salaries within each pay grade are
administered consistently. This includes setting salary ranges, determining
starting salaries, and applying policies for salary increases, promotions, and
adjustments based on performance and tenure.

Importance of Internal Equity

1. Employee Motivation and Satisfaction:

o When employees perceive that their pay is fair and equitable compared to their
peers within the organization, they are more motivated, satisfied, and
committed to their work.

2. Retention and Engagement:

o Fair compensation practices contribute to higher employee retention rates by
reducing turnover and fostering a positive work environment where employees
feel valued and respected.

3. Organizational Performance:
 o Aligning compensation with job value and contributions enhances
organizational performance by ensuring that employees are motivated to
perform at their best and contribute effectively to achieving business goals.

4. Legal Compliance:
o Maintaining internal equity helps organizations comply with legal
requirements related to equal pay for equal work and non-discrimination in
compensation practices, thereby mitigating legal risks.

Achieving Internal Equity

1. Job Analysis and Evaluation:

o Conduct thorough job analysis and evaluation to accurately assess the
responsibilities, skills, and requirements of each job role within the
organization.

2. Pay Structure Design:

o Design and implement pay structures that reflect the results of job evaluations
and ensure consistency in how jobs are grouped and compensated.

3. Regular Review and Adjustment:

o Regularly review and update job evaluations, pay structures, and salary
administration practices to accommodate changes in organizational needs,
market conditions, and employee roles.

4. Communication and Transparency:

o Communicate openly with employees about the organization’s compensation
philosophy, pay structure, and factors considered in determining salaries to
promote transparency and trust.

Challenges in Maintaining Internal Equity

1. Market Pressures:
o External market factors, such as competition for talent and economic
conditions, can challenge an organization’s ability to maintain internal equity
while remaining competitive in attracting and retaining employees.
 2. Subjectivity in Evaluation:
o Job evaluations may involve subjective judgments, which can lead to
discrepancies in how jobs are perceived and valued within the organization.

3. Changing Job Roles:

o The evolution of job roles and responsibilities over time may require
adjustments to job evaluations and pay structures to accurately reflect the
current value of work within the organization.

In summary, internal equity is essential for fostering a fair and equitable work environment
where employees feel valued, motivated, and committed to achieving organizational goals.
By aligning compensation with job value and ensuring consistency in pay practices,
organizations can enhance employee satisfaction, retention, and overall performance.

Methods and recent trends in compensation management.

Compensation management involves the strategies, policies, and practices organizations use
to reward and compensate employees for their work and contributions. It encompasses
various methods and recent trends aimed at attracting, retaining, and motivating talent
effectively. Here’s an overview of methods and recent trends in compensation management:

Methods in Compensation Management

1. Job Evaluation and Salary Surveys:

o Job Evaluation: Systematically assessing the relative worth of different jobs
within the organization based on factors like job complexity, skills required,
and responsibilities.
o Salary Surveys: Comparing the organization’s pay levels with industry
benchmarks and competitors to ensure competitiveness in the labor market.

2. Pay Structures and Bands:

o Establishing pay structures that group jobs into bands or grades based on job
evaluations and market data. This helps in setting clear salary ranges for
different job roles.

3. Merit-Based Pay and Performance Management:

 o Merit Increases: Rewarding employees with salary increases based on their
individual performance, skills development, and contributions to
organizational goals.
o Performance Management: Aligning compensation with performance
through performance appraisals, goal setting, and performance-based
incentives.

4. Variable Pay and Incentives:

o Implementing variable pay programs such as bonuses, profit-sharing,
commissions, and stock options to reward employees based on individual,
team, or organizational performance.

5. Benefits and Perquisites:

o Offering employee benefits (healthcare, retirement plans, etc.) and non-
monetary perks (flexible work arrangements, professional development
opportunities, etc.) as part of total compensation packages.

6. Equity-Based Compensation:
o Issuing equity-based compensation like stock options, restricted stock units
(RSUs), or employee stock purchase plans (ESPPs) to align employees’
interests with organizational performance and long-term growth.

Recent Trends in Compensation Management

1. Pay Transparency:
o Increasing transparency in compensation practices by openly discussing pay
ranges, salary structures, and factors influencing compensation decisions with
employees to promote fairness and trust.

2. Flexible Compensation Packages:

o Offering flexible compensation packages that allow employees to customize
their benefits and perks based on personal preferences and life stages (e.g.,
wellness programs, tuition reimbursement, childcare support).

3. Remote Work and Geographic Pay Differentials:

 o Addressing pay differentials based on geographic location for remote and
distributed workforce to ensure equitable compensation in different regions or
countries.

4. Inclusive Compensation Practices:

o Implementing inclusive compensation practices to address pay equity gaps
based on gender, race, ethnicity, and other diversity dimensions through data-
driven analysis and corrective measures.

5. Impact of AI and Analytics:

o Leveraging artificial intelligence (AI) and data analytics to analyze
compensation data, predict trends, and make informed decisions regarding pay
adjustments, market trends, and employee preferences.

6. Focus on Total Rewards:

o Emphasizing total rewards approaches that go beyond base salary to
encompass benefits, recognition programs, career development opportunities,
work-life balance initiatives, and a positive organizational culture.

7. Sustainability and ESG Factors:

o Integrating Environmental, Social, and Governance (ESG) factors into
compensation management strategies to reward behaviors and achievements
aligned with sustainability goals and corporate social responsibility.

Challenges in Compensation Management

1. Market Competitiveness:
o Balancing the need to offer competitive compensation packages with budget
constraints and financial sustainability goals.

2. Compliance and Regulatory Changes:

o Adhering to evolving labor laws, regulations, and compliance requirements
related to compensation practices across different jurisdictions.

3. Managing Pay Equity:

 o Ensuring fairness and equity in pay across demographic groups and roles,
addressing potential biases and disparities.

4. Retention and Engagement:

o Designing compensation strategies that effectively attract and retain top talent
while promoting employee engagement and satisfaction.

5. Impact of Globalization:
o Managing compensation structures and practices in multinational
organizations to accommodate diverse cultural norms, economic conditions,
and regulatory environments.

In summary, effective compensation management requires a strategic approach that considers

market trends, organizational goals, employee preferences, and regulatory compliance. By
adopting innovative methods and staying abreast of recent trends, organizations can optimize
their compensation practices to support talent management objectives and drive business
success.