Chapter 13: Staffing System Management Chapter 14: Retention Management

1. Part 6Staffing System and Retention Management Chapter 13: Staffing System Management Chapter 14: Retention Management

2. CHAPTER THIRTEEN Staffing System Management Screen graphics created by: Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region

3. Organization Vision and Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Organizations Model Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection:Measurement, external, internal Job analysis Employment:Decision making, final match Staffing System and Retention Management

4. Administration of Staffing Systems Organizational Arrangements Jobs in Staffing Policies and Procedures Information Systems Outsourcing Evaluation of Staffing Systems Staffing Validity Staffing Process Standardization Staffing Process Results Staffing Costs Customer Satisfaction Legal Issues Chapter Outline

5. Administration of Staffing Systems • Organizational arrangements • Jobs in staffing • Policies and procedures • Information Systems • Outsourcing

6. Organizational Arrangements • Staffing activities are conducted in a separate functional area of a company’s HR department • Research results • Employment and recruitment are considered core HR department functions • Staffing receives a greater percentage of total HR budget than other functions -- 20% of total budget • Exh. 13.1: Example of HR Departmentand Employment (Staffing) Function

7. Exh. 13.1: Example of HR Departmentand Employment (Staffing) Function

8. Jobs in Staffing • Entry occurs as specialist in recruiting and interviewing • Mobility may involve both traditional and nontraditional career tracks • Jobs are becoming more customer focused and facilitative • Increasing numbers of jobs are found in staffing firms • New type of job -- Chief Talent Officer or VP for Talent Acquisition • Exhs. 13.2 and 13.3: Staffing Jobs

9. Policies and Procedures • Indicate desirable courses of actionand steps to implement action • Policy • Guiding principle or objectivesought through appropriate actions • Procedure • Prescribed steps of acting in similar situations • Exh. 13.4: Staffing Topics in CompuServe’s HR Policy Manual

10. Information Systems • Staffing activities generate considerable information • Issue -- Types of information to generate, and how to file, access, and use it • In small organizations, information system will likely be a paper-based, manual system • In large organizations, the information system will likely involve • Conversion to electronic information and • Automation of staffing tasks and processes • Exh. 13.5: Computerized Staffing Tasks

11. Outsourcing • Refers to contracting out work to a vendor or third-party administrator • Outsourcing of HR functions is increasing • Types of staffing activities outsourced • Outplacement, relocation, testing, recruitment and staffing, use of temporary employees, updating affirmative action plans, and applicant databases • Strategic and operating reasons to outsource • Expertise, flexibility, time savings, service quality, reduction of legal liability, and cost reduction

12. Evaluation of Staffing Systems • Staffing validity • Staffing process standardization • Staffing process results • Staffing costs • Customer satisfaction

13. Staffing Validity • Concept • Degree to which selection techniques used accurately match people’s qualifications to job requirements • Ideally, a company only uses selection techniques with demonstrated validity • Research related to use of validation studies • Fewer than 25% of companies conduct validation studies • Most valid techniques are not the most widely used • Potential outcomes of not conducting validation studies • Lack of knowledge of success in matching people to jobs • Lack of information of how to improve matching process • Lack of evidence to support legal challenges

14. Staffing Process Standardization • Concept • Consistency of operation of a staffing system • Reasons to use a standardized staffing system • Ensures same KSAO information is gathered from all applicants • Ensures all applicants receive same information • Enhance applicants’ perceptions of procedural fairness of staffing system and decisions • Less likely to generate legal challenges by applicants

15. Staffing Process Standardization:Steps to Evaluate Standardization 1. Map a flowchart of staffing process used for a specific job / job category 2. Develop a list of steps followed and actions taken during process 3. Identify actual deviations based on flowchart of staffing process 4. Analyze deviations and determine reason(s) for occurrence 5. Make changes in staffing system to reducedeviations and enhance standardization

16. Staffing Process Results • Quantitative indicators indicate effectiveness and efficiency of staffing system • Exh. 13.6: Evaluation of Staffing Process and Results • Staffing metrics are useful barometers to gauge pulse of staffing flow • Provide objective, “bottom line” results • Useful for comparative purposes • Two different business units on basis of yield ratios • Trend in same staffing system over time • Exh. 13.7: Staffing Metrics: Average Time and Cost

17. Evaluation of Staffing Systems:Staffing Costs and Customer Satisfaction • Staffing costs • Difficulties exist in determining cost estimates • Lack of common approach to assess costs • Costs vary by organization size, industry, and labor market conditions • Customer satisfaction • Managers • Exh. 13.8: Examples of Survey Items . . . • Job applicants • Exh. 13.9: Selection Fairness Survey . . .

18. Legal Issues • Records and reports • Audits • Managing legal compliance

19. Legal Issues • Records and reports • Creation and maintenance of records • Four purposes of records - p. 646 • Exh. 13.10: Federal Record-Keeping Requirements • Privacy concerns • Preparation of reports • Exh. 13.11: Employer Information Report EEO-1 Form • Audits

20. Managing Legal Compliance: Current Practices • Virtually all companies sought legal consultation on HR issues • 26% had an in-house attorney; 22% of those housed attorney(s) in HR department • 37% specified circumstances in which an attorney must be consulted • Seeking legal guidance was prompted by new laws,complaints, and changes in HR policies and procedures • Legal guidance was not usually sought on pending hiring or promotion decisions but was sought at onset of discrimination and negligent hiring complaints • Staffing issues subject to legal review -- employee handbooks, personnel forms, EEO/AA plans, preemployment tests • Planned legal audits of HR department were rare

21. Managing Legal Compliance: Elements of Legal Compliance System • Key decisions in determining type of legal system • Will company use in-house attorney(s) or external counsel? • Will company establish formal compliance systems or handle matters on ad-hoc basis? • How much will legal compliance be a formal area of responsibility for managers; how will they be assisted? • How will company conduct investigations of employee complaints? • Should company establish a dispute resolution process? If yes, what approach(es) should company take? • Union employees -- Grievance procedure stipulated in contract • Nonunion employees -- ADR procedure • Exh. 13.12: Alternative Dispute Resolution Approaches • Exh. 13.13: Example of ADR Procedure

22. Exh. 13.13: Example of ADR Procedure

23. Managing Legal Compliance: Arbitration • Employer and employee (or job applicant) agree to submit dispute to neutral third-party who issues final/binding decision • Agreements often include statutory discrimination claims -- employee agrees not to pursue charges by any means except arbitration • Suggested standards for agreement to be enforceable • Agreement must be “knowing and voluntary” • Arbitrator must be a neutral • Process should provide for more than minimal discovery • Same remedies as permitted by law should be allowed • Employee should have right to hire an attorney and employer should reimburse employee a portion of attorney’s fees • Employee should not have to bear excessive responsibility for cost of arbitrator • Types of claims subject to arbitration should be indicated • There should be a written award issued by arbitrator