Premium Essay

The Challenge of Managers to Hire the Right People

In:

Submitted By emilyysaunderss
Words 1387
Pages 6
The Challenge of Managers to Hire the Right People A manager has one of the most demanding roles in the business world. In today’s business environment, he or she is responsible for a wide variety of tasks while facing many challenges. One of these is hiring the right people for an organization. The hiring process is difficult because many people apply for jobs, but very few are actually a good fit for the company. In addition, the replacement of employees is costly. However, exceptional managers are able to create a fairly consistent selection process while applying theories of management in order to face the challenge of hiring the right person. Hiring the right people has become a major challenge for most managers in today’s business world. Eric P. Bloom states, “Everyone employed by the company…is an expense to the company.” (2) Therefore, part of that expense is the cost it takes to replace a new employee through the hiring process, otherwise known as employee turnover. There are countless sources that show varying statistics on exactly how much this costs, mostly depending on the role and salary of an employee. For example, a Center for American Progress (CAP) study showed average replacement costs for a mid-range employee (annual earnings between thirty and fifty thousand dollars) was twenty percent of his or her salary. The study also suggested the cost to replace an executive, such as the CEO of a company, could be up to as much as two hundred and thirteen percent of his or her salary. It is difficult to pinpoint an exact cost because many factors are either intangible or go untracked in an organization. Some of these include the costs of advertising for an open position, lost time and productivity during the training process, and the impact on the culture of the workplace when one employee leaves and another is brought in. (6) In his article, Eric

Similar Documents

Premium Essay

Molex Case Study

...operates 50 manufacturing plants and 21 different countries and employs 16,000 people worldwide. The following case study is an analysis how Molex faces the legal, cultural and ethical challenges of globalization. The analysis will address various roles that the host governments have played in the operations of Molex and will conclude with a summary on how the Molex Corporation handles the strategic and operational challenges facing their global managers. Molex has faced legal, cultural, and ethical challenges in a manner that has set standard of global business practices at a higher level. The key element to this unique standing is Molex's human resources department. Molex’s hiring policy is to hire only experience, human resources managers from other countries in the same country in which they have a manufacturing facility. The purpose of this hiring practice is to have qualified people who know the language, knowledge of local laws, will have the ability to recruit the right people in the country and will posses local credibility. Molex does business in 50 different countries and all have different laws. By hiring managers from the operating country they will have experience and knowledge of local employment laws, the recent compensation laws and have superior knowledge of the cultural norms towards work in the country. In addition to this staffing policy. The company also frequently hires foreign nationals...

Words: 524 - Pages: 3

Premium Essay

Challenges and Issues in Recruiting Employees

...| Issues and Challenges in Recruitment and Selection of Employees | | Contents Introduction 2 Recruitment 3 Recruitment & Selection Process 4 Importance of Managing the Recruitment and Selection Process 7 Issues in Recruitment & Selection 9 Challenges in Recruiting and Selection 11 Discussion and recommendations 14 Conclusion 20 References 21 Introduction Organisations today are increasingly transforming from regional company to a Multi-National Company. However; the effects of such operations do not end up with international markets and consumer products. In fact, Managers today are faced with several breath taking challenges of leading a true global workforce. As we can remember the good old days when we can find staff by advertising in the local newspaper, and graduates and apprentices were plentiful and grateful for a job. Due to the scaled- back university courses/intakes and apprenticeship schemes, the aging population and the resources have left Australia desperately short of qualified people, and thus, now HR managers are often required to think globally to fill out positions. Recruiting efficient staff in an international context is the process of identifying and attracting potential candidates outside the country and initiate the process of evaluating them for future employment. Once candidates are identified, organisations can begin their selection process. This process includes: collecting, measuring, evaluating information...

Words: 4232 - Pages: 17

Free Essay

Increasing Employees Productivity

...New Hires Up to Speed Quickly ow do managers and organizations quickly transform new hires into productive employees, a process called “rapid on-boarding”? This question is hardly trivial. Whether a company is growing to take advantage of a new market opportunity, restructuring to remain competitive or simply trying to cope with attrition resulting from retirements and turnover, one thing is certain — more and more employees are newcomers to work groups, departments or organizations. In today’s volatile economy, more than 25% of all workers in the United States have been with their company less than a year and more than 33% less than two years. Americans will, on average, change jobs 10 times between the ages of 18 and 37.1 And, of course, new employees are only part of the challenge — the constant state of internal restructuring in most organizations continually pushes managers to assimilate waves of employees suddenly transferred into new work roles and relationships. The Challenges The first and most obvious challenge with newcomers is jumpstarting their productivity. Initially, newcomers are typically a net drain on productivity, drawing a salary, incurring training and orientation expenses, and consuming co-workers’ time without providing much in return. A recent study by Mellon Financial Corp. found that lost productivity resulting from the learning curve for new hires and transfers was between 1% and 2.5% of total revenues. On average, the time for new hires to achieve...

Words: 5590 - Pages: 23

Premium Essay

Human Resources

...Allison Simpson April 24th, 2015 Writing Assignment #2 Introduction A human resource manager is an individual within an organization responsible for hiring new employees, supervising employee evaluations, mediation between employees and bosses when necessary, and general overseeing of the personnel department. There are many issues that HR teams consistently face. Some of them include retention, recruitment, productivity, training and compliance, health and safety, discrimination and diversity, discipline, outsourcing, payroll, and employee queries. Issues In this particular situation, two of the main issues Francine is likely to face are recruitment, and training and compliance. Francine mentioned that most employees are hired by word of mouth, which is where recruitment comes in. She also noticed customers complaining that it takes too long to reach a customer service representative, which is why she obviously needs to work on training and compliance. Complexities Recruitment of talent is a major challenge that the Human Resources’ department faces. Finding employees with the correct mix of skills, personalities, and necessary motivation, is very difficult, even when there is a large group of possible candidates. Training and Compliance is an extremely important part of employee development. Training benefits the personal knowledge of the employees, but it also ensures that companies are getting the best from their workforce. Many roles demand official training...

Words: 1809 - Pages: 8

Premium Essay

The New Business of Business Leaders: Talent Management

...Introduction We live in an age when people are the business differentiators that power innovation in design, IT, supply chain, process, training, networking, communication, content, and everything else. People make the difference, and talent management is the business strategy to maximize that difference. Talent intelligence provides the information you need to truly know who is driving your organizational success and how to unlock the power of your people. Who provides the key to unlock that power? You. You are the line-of-business leader who hires the talent, makes the talent productive, develops the talent, moves the talent around, pays the talent, and manages performance. As a business manager, you are the one who makes the talent decisions every day that lead to business success. Over the course of this five-part white paper series, the role of business leaders in driving talent management functions is explored, with a particular focus on the tools and approaches that will make them successful. Other papers will address hiring and onboarding, learning and development, retaining and growing talent, and performance management and compensation. This paper addresses talent management and the importance of it to business leaders. 1 The New Business of Business Leaders: Talent Management Talent Practices That Fuel Business Success In the new millennium, leading business organizations are capturing data about people, turning it into actionable information...

Words: 1814 - Pages: 8

Free Essay

Organizational Analysis

...unfailing commitment to customer satisfaction for the company's continued growth and success. The company does anything and everything it takes to ensure that their clients receive the best possible service. At Capitol Concierge, they believed that each and every one of their clients are a VIP and should be treated as such. Capitol concierge does many service such as having an on-site concierge for the convenience of their clients. Whether you need a concierge, lobby attendant, front desk staff and/or valet service, the on-site concierge works in your property's lobby to personally tend to the needs of the tenants, residents, and guests. The On-Site Concierge is the first point of contact and is there to take requests, monitor and sign people in, take and follow up on maintenance calls, and create a welcoming atmosphere to your tenants and residents. The on- site concierge is physically available to receive and facilitate individuals' requests during your selected hours, and follows up on all remaining requests after they leave for the day. Another service that capitol concierge provide is a virtual concierge. The virtual concierge service provides you with on-line access to the company’s wide array of offerings and capabilities. Clients are able to place online orders with the customized concierge team that services their property remotely, that team of concierges facilitates the fulfillment of the order. This...

Words: 1503 - Pages: 7

Premium Essay

Discovering the Right Fit in the Healthcare Industry

...Discovering the Right Fit in the Healthcare Industry Lina Robinson ENG 1000 Lorrinda Khan November 14, 2011 Introduction The health care industry is constantly changing at a rapid pace that requires organizations to adapt to the process of newly managed care. The hiring process is vital to an organization’s growth and development, so during the interviewing process, employers should be able to notice if the job is right for a new hire or not. Money, energy and time spent properly hiring, orientating and training a new employee doubles in order to do so. Organizations depend on their existing and new employees’ production and longevity to enhance their mission statement, character and capitol, in order to be successful. “Every organization wants to attract, motivate, and retain the most qualified employees and match them to jobs for which they are best suited” (BLS, 2010-2011). Organizations go through all of these steps to fill positions, but still fail to place the new hire in the right fit that will benefit them as well as the company. To prevent the issue, the hiring department has to understand new hires strengths and where to place them in the organization. It is not an easy task making hiring decisions, but good training (various seminars, coaching and educational literature) can improve organization’s potential skills to hire the right employees and place them in a position that suits their strengths, and in turn...

Words: 1930 - Pages: 8

Premium Essay

Major Issue in Hr Department

...issues & challanges faced by HR Manager are: Health & Welfare, retirement, change management, compensation, Employee rewards, HR effectiveness measurement, HR technology selection & implementation, industrial relations, Leadership development, Learning and development, Legal/Regulatory compliance, M&A integration/restructuring, Organizational effectiveness, Outsourcing, Staffing: mobility of employees, Recruitment and availability of skilled local labour, retention and succession planning. Health & Welfare of the employees is a big challenge. If health of the employees of an organization is sound, they are able to perform well. Change Management represent a particular challenge for personnel management staff, as this expertise has generally not been a consistent area of focus for training and development of HR professionals. An intensified focus on training may be needed to develop added competencies to deal with change management. Leadership development also proves to be a big challenge HR professionals continue to wrestle with understanding the best ways to keep people in the pipeline and develop leaders for future succession planning. HR professionals are expected to provide the essential frameworks, processes, tools and points of view needed for the selection and development of future leaders. Across the globe leadership development has been identified as a critical strategic initiative in ensuring that the right employees are retained, that the...

Words: 592 - Pages: 3

Premium Essay

Ethical Issues in Management

...application process. Managers are faced with ethical and legal aspects of hiring along with social issues that make ethically responsible management practices increasingly important. This paper will provide information about ethical and legal aspects associated with hiring and provide moral and ethical issues faced by managers. This paper will also describe the relationship between social issues and ethically responsible practices that relate to hiring. Moral and Ethical Issues Many people don’t understand the cost related to making a poor hiring decision. From productivity, customer service, and liability prospective have been widely studied and has been estimated to be three times the annual salary of the individual involved (Calvasina, Calvasina, & Calvasina 2008). Therefore, it is important for managers to make their decisions of an applicant based on skills as well as moral and ethical values. It is very difficult at times for managers because their responsibilities include not only hiring, but also promotion, conduct of employees, and motivation. But it is even more important that managers involved in hiring adhere to the laws who are written to protect applicants, and that they hire the best applicant for the job without regard to race, gender or religion. It can become very difficult to hire individuals if a manager doesn’t have biases aside when interviewing an applicant (Calvasina, Calvasina, & Calvasina 2008). But most managers in organizational...

Words: 1143 - Pages: 5

Premium Essay

Hr Interview

...Jack Brown Davenport University We have learned new and exciting insight from our interview with Jim D’Amico, the current Director of Talent Acquisitions at Spectrum Health. Jim has worked in the past as a Senior Manager and a Strategic Staffing Manager for global staffing at Bissell Homecare incorporated, Senior Recruitment Manager at the Schwan Food Company, and as the Manager of Talent Acquisitions at Barnes Distribution. With these past jobs, one would think that he received his degree in Business Management, Human Relations, or Human Resources, but he did not. He received an education degree and it was out of chance that he began his human resource career. Jim D’Amico’s first plan was to be a schoolteacher because that’s where the ladies are (personal communication, 2014). It was not until someone took a chance on him that he ran with the idea of management. During the interview, Jim joked about his experience and said he did not know any better and it was all “dumb luck” (2014). One cannot help but believe that there is something greater to Jim’s success and accomplishments than “dumb luck.” Jim’s current position at Spectrum Health has given him his greatest challenges faced up to date. He hires more than 6,000 people a year, which includes all hires except executives and physicians. According to Who We Are (n.d.) from Spectrum Health’s website, the key strategies for their leaders are to, “foster and grow leaders with the vision to keep us focused on achieving ever...

Words: 2065 - Pages: 9

Premium Essay

Health Care Human Resource Management

...Health Care Human Resources Management   It used to be that human resource was only thought of as the department who hires employees and safe keeps the clerical part of the organization. Human Resource is much more involved in the entire structure of the organization then just the clerical part of it. Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The HRM department is responsible for three major areas including staffing, employee compensation and benefits and defining and designing work. HRM works for the benefit of the organization through managing its greatest business asset which is the employees. The task of managing employees of an organization brings many challenges, how HRM must remain focused on recruiting, retaining and engaging their organizations leaders and workforce to be successful. Several new trends are affecting how HRM make their hiring decisions. Two recent trends important to HRM leaders are leadership compensation/competencies and workforce engagement. In the setting of limited resources and new government mandates, healthcare is moving toward value-based care. HRM is now challenged to adjust executive compensation to keep in step with the industry change. In a population health model, physicians receive a value-based reimbursement to care rather than a fee for services. The physicians’ performance needs to be continually monitored in order to accurately...

Words: 1546 - Pages: 7

Premium Essay

Basic Functions of a Manager

...Functions of a Manager Gary Turner September 2014 Basic Functions of a Manager A manager is someone who manages a group of people in a department or a specific area in a department. As part of having the title “manager” a manager should be able to hire people for his or her department or area of responsibility. The manager should also be able to plan, set goals, lead and organize the activities and resources pertinent to his or her roles of responsibility; therefore, there should be five key management functions a manager should be able to accomplish: Plan, Organize, Staff, Lead and Control (Dawn, 2003). The first primary key function of a manager is planning. A manager should be able to plan and set goals for his or her team or department .The manager should be able to take steps in moving toward the goals he or she establishes and evaluate if the steps are working or if there needs to be corrective action (Dawn, 2003). The manager should be able to come up with different solutions for the problems that are encountered in pursing those goals. A manager should have the appropriate skills to document clearly the team or departmental goals, actions, plans and strategies. Planning also involves planning at a level that includes the smaller picture stuff at a practical tactical level (Dawn, 2003). Following the planning stage, the manager has to utilize his or her organizational skills, which is the second key function of a manager A manager should have good...

Words: 732 - Pages: 3

Premium Essay

Background Checks

...they are making a right choice for an organization. Background check helps employers to determine the credibility of a person. Although employers are allowed to do the background check on applicants and employees, they should comply with the laws protect applicants and the employee from discrimination. There are many concerns employers have while doing background checks, however, the level of background checks depend on the type of the job. The main concern employers with the background check are to make sure that applicant or an employee does not have any criminal records....

Words: 479 - Pages: 2

Premium Essay

Scaling Challenges

...Scaling Challenge #1: Passing the Hat AS a start-up, executives need to be prepared to wear more than one functional hat to be successful. As you scale, however, you must carefully oversee the process of passing those hats to new executives and managers that join the team. This looks easy on paper (just draw up the new org chart), but it can prove extremely challenging in practice. While it is easy to pass the hat in form, it may not be easy to pass the hat in substance when the on-boarding of the new hat owner is arduous, i.e., big learning curve, lots of important internal relationships, and so forth. As long as the old hat-owner offers greater knowledge and effectiveness in the relevant functional area, everyone in the organization will gravitate to her for decisions and support, regardless of what the new org chart says. The problem can be further exacerbated if the old hat owner isn’t all that willing to pass the hat in the first place or if the old hat owner is too willing and runs away from the responsibility faster than the new executive can get up to speed. Poor hat passing can result in confusion, frustration, conflict, executive turnover and ultimately poor business performance. Hat passing is tricky business that requires the buy-in all of all those affected, a solid foundation of respect between the two hat-passers, and a thoughtful approach to managing the transition. Without these fundamentals in place as you are scaling, you may find that you are dropping more...

Words: 1371 - Pages: 6

Premium Essay

Human Resource Management Roles

...Resource Management Roles Sheilah Schmidt HCS/341 March 24, 2014 Gregory Kennedy Human Resource Management Roles According to the Bureau of Labor Statistics (2014), “human resource managers plan, direct, and coordinate the administrative functions of an organization” (p. 1). Managers also oversee recruiting, hiring, and interviewing new staff, and plan strategically. Human resource health care manager have specific roles. A human resource management’s roles in the health care industry include, staffing and placement, legal research on health care, management of employees, and decision-making (Russell, 2014). Human resource functions include employee relations, employment, records, benefits, compensation, human resource strategic planning, organizational design, performance management, human resource development, organizational development, and employee health program (Wolf, 1989). Staffing and Placement Employment involves services of people through recruitment, selection, placement, and orientation for the operation of the organization. According to Gómez-Mejía (2010), “recruitment is the process of generating a pool of qualified candidates for a particular job.” “Selection is the process of making a “hire” or “no hire” decision regarding each applicant for a job” (p. 161). There are challenges in the hiring process. If poor hiring decisions have been made, additional training may never be reached; inaccurate information may be given to customers, and employee turnover may...

Words: 708 - Pages: 3