Employee Hiring, Recruitment, Selection, Training, and Compensation

1. CHAPTER 17 Human Resource Management

2. Learning Objectives • Discuss the importance of hiring the right employees • Evaluate the advantages and disadvantages of the six major sources of employee recruitment • Describe the four tools commonly used in employee selection • Discuss the need for employee training and name the seven methods of providing this training

3. Learning Objectives • Explain the two components of a compensation plan and the variable elements of a benefits system • Profile an effective sequence for disciplining and terminating employees

4. Discuss the importance of hiring the right employees LO - 17.1

5. Hiring the Right Employees

6. Recruitment requirements Defining the positions to be filled Stating the qualifications Recruitment Process

7. Job Analysis • Process of gathering information about a job, including a job description and a job specification • Indicates what is done on the job, how it is done, who does it, and to what degree • Foundation on which all other human resource activities are based • Used to ensure equal employment opportunity

8. Steps in Job Analysis Gain the support and cooperation of employees Identify the jobs to be analyzed Choose a job analysis technique

9. Identification facts Skill requirements Job analysis questionnaire Job responsibilities Effort demanded Working conditions Job Analysis

10. Elements of job description Job identification Job summary List of essential duties Task statement Job Description • Written description of a non management position that covers the title, duties, and responsibilities of the job

11. Requirements essential for successful performance Knowledge Skills Abilities Other personnel requirements Job Specification

12. Job Specification • Bona fide occupational qualification (BFOQs) • Limited right to hire on the basis of gender, religion, or national origin if a job has special requirements that make such discrimination necessary

13. Evaluate the advantages and disadvantages of the six major sources of employee recruitment LO - 17.2

14. Advertising for employees Employment agencies Other sources Major sources Internet job sites Relatives and friends Employee referrals Executive recruiters (headhunters) Employee Recruitment

15. Advertising for Employees

16. Employment Agencies

17. Executive Recruiters

18. Internet Job Sites • Provide access to millions of potential employees • Charge to list jobs by geographic location, industry, and the package selected

19. Employee Referrals

20. Relatives, Friends, and Other Sources of Recruitment • Relatives and friends • Advantage - Knowledge of applicant’s abilities, expertise, and personalities • Disadvantage - No approach is more laden with long-term repercussions • Other sources • Job fairs • Trade association meetings • Specialized Internet sites • Help wanted signs • Notice on the employee bulletin board

21. Recruitment

22. Describe the four tools commonly used in employee selection LO - 17.3

23. Common selection tools Application form Selection interview Testing Selecting Employees Resume

24. Purposes of Application Forms and Résumés

25. Conducting Effective Interviews

26. Testing

27. Achievement, aptitude, and personality tests Performance (ability) tests Commonly used tests Physical examinations Drug tests Honesty tests Testing

28. Testing

29. Temporary Employees and a Professional Employer Organization (PEO)

30. Hiring Independent Contractors Versus Employees • Employee recruitment is expensive • Employers are not required to withhold Social Security and Medicare taxes, or offer benefits for independent contractors

31. Factors That Determine Classification of Workers

32. Discuss the need for employee training and name the seven methods of providing this training LO - 17.4

33. Placing and Training Employees

34. Placing and Training Employees

35. Benefits of Employee Training and Development

36. On-the-job training (OJT) Correspondence courses Methods of training Job rotation Lecture Conferences Role-playing Programmed learning Placing and Training Employees

37. Explain the two components of a compensation plan and the variable elements of a benefits system LO - 17.5

38. Determining wage rates Hourly wages All-salaried employees Piecework rates Commission Compensating Employees

39. Incentive-pay programs Bonuses Profit-sharing plans Compensating Employees One-time reward provided to an employee for exceeding a performance standard Employees receive additional compensation based on the profitability of the entire business

40. Compensating Employees • Benefits • Part of an employee’s compensation in addition to wages and salaries • Health and life insurance, paid vacation time, pension and education plans, and discounts on company products • Benefits required by law • Time off for voting, jury duty, and military service • Workers’ compensation • Social Security retirement and disability, Medicare and Medicaid • Pay state and federal unemployment taxes

41. Compensating Employees • State short-term disability insurance programs • Comply with Family and Medical Leave Act (FMLA) • Benefits not required to be provided by law • Retirement plans • Health plans • Dental or vision plans • Life insurance plans • Child care • Discounts on products or services • Paid vacations, holidays, or sick leave

42. Flexible benefit packages Health insurance Other benefits Retirement plans(IRAs, SEP, 401(k), Keogh plans) Child care and elder care Compensating Employees

43. Table 17.1 - Retirement Plan Preview Sources: “The Basics of Employee Benefits,” Entrepreneur, May 2014, www.entrepreneur.com; Rosalind Resnick, “A Better Plan for Not Working,” Entrepreneur, June 2010; and “The Benefits of Individual 401(k) Plans,” The Tax Adviser, December 2009.

44. Table 17.1 - Retirement Plan Preview Sources: “The Basics of Employee Benefits,” Entrepreneur, May 2014, www.entrepreneur.com; Rosalind Resnick, “A Better Plan for Not Working,” Entrepreneur, June 2010; and “The Benefits of Individual 401(k) Plans,” The Tax Adviser, December 2009.

45. Profile an effective sequence for disciplining and terminating employees LO - 17.6

46. Disciplinary Measures

47. Disciplinary Measures

48. Dismissing Employees • At-will doctrine: Employee hired for an indefinite period may be discharged for any or no reason, cause or no cause, unless specifically prohibited by law • Restrictions on at-will discharges • Implied contract • Good faith and fair dealing • Public policy exception • Providing just cause

49. Dismissing Employees • Establishing just cause • Mention the specific work-rule violation • Indicate that the employee had prior knowledge of the rule and consequences of violation • Show the rule was a business necessity • Conduct a thorough and objective investigation of the violation • Give employees opportunity to present their side of the story • Document that employee had opportunity to improve or modify performance

50. Dismissing Employees • Show evidence or proof of guilt to justify the actions taken • Show employee was treated consistent with past practices • Demonstrate that the disciplinary actions were fair and reasonable in view of the employee’s work history • Have disciplinary action reviewed by an independent party