Functional area 02—Talent Planning and Acquisition

Impact of total rewards on recruitment and retention

Introduction What is the most effective way for human resources (HR) and total rewards managers to ensure employee retention within Islamic banks in Jordan? Herein lies the central question driving the current study. Organizations across the world seek to retain their talent. The loss of an employee has been proven to incur exorbitant costs in the recruitment, selection, and training of a replacement, costs amounting to a full year's compensation or more (Allen & Bryant, 2013; Cascio, 2006). Furthermore, an organization's human resources are among its most precious; skilled and competent employees—and thus their retention—are acknowledged as being imperative for business success (Maamari & Alameh, 2016; Mandhanya, 2015; Taamneh, Alsaad, & Elrehail, 2018). How to attract and then retain such human capital is thus a key concern for businesses globally, no less for Jordan's Islamic banks. Over the last two decades, a growing amount of research has investigated the factors that contribute positively to employee retention (Akhtar, Aamir, Khurshid, Abro, & Hussain, 2015; Dobson, 2009; Hollihan & LeComte, 2006; Morgan, Dill, & Kalleberg, 2013; Steinhaus & Perry, 1996; Young, Worchel, & Woehr, 1998). This research has consistently demonstrated that total rewards—the sum of every form of financial and nonfinancial compensation—play a key role in increasing employee retention within organizations (Allen, Shore, & Griffeth, 2003; Malhotra, Budhwar, & Prowse, 2007; Newman & Sheikh, 2012; Twenge, 2010). Social exchange theory, for example, has been used to argue that when employees are satisfied with the total rewards offered by their organization, this leads to employee retention. It can thus be convincingly maintained that an individual's motivation to remain with an organization is greatly determined by the total rewards he or she receives. To guarantee not only the retention of but also optimum performance from its employees (Milkovich & Newman, 2008), an organization must offer a range of diverse means of rewarding its staff. Indeed, effective total rewards systems have been envisioned as ongoing processes of exchanges between employer and employee, on the psychological, sociological, economic, and political levels (Bergmann & Scarpello, 2002). While a significant amount of research exists to support the effectiveness of total rewards as a contributing factor to employee retention (Akhtar et al., 2015; Cao, Chen, & Song, 2013; Durrani & Singh, 2011; Medcof & Rumple, 2007; Morgan et al., 2013; Twenge, Campbell, Hoffman, & Lance, 2010; Wangari & Were, 2014), there is little consensus regarding which of the three types of rewards—extrinsic, intrinsic, or social—has the strongest impact on retention (Akhtar et al., 2015; Morgan et al., 2013; Newman & Sheikh, 2012). Armstrong and Murlis (2004); Bakuwa, Chasimpha, and Masamba (2013); Chen and Hsieh (2006); Gibson and Tesone (2001); Milkovich and Newman (2008); Muralidharan and Sundararaman (2011); and Zingheim and Schuster (2007), for example, all offer evidence of intrinsic rewards as demonstrating greater influence on retention than either extrinsic or social rewards. Morgan et al. (2013) and Nnabuife, Chiekezie, and Elom (2017), however, claim there is a closer relationship between extrinsic rewards and employee retention. Especially in the context of the ongoing war for talent, it is essential that employers understand how different elements of total rewards influence the willingness of employees, notably the high performers and most highly qualified, to remain with an organization. This is also because it is, of course, unfeasible that an organization supply every possible financial and nonfinancial benefit to it employees. One key factor that has so far been largely disregarded in the extant literature on how total rewards relates to employee retention is the individuality of every employee: There is no guarantee that the various rewards provided will affect each individual employee in the same way, and this should be accounted for. A system of total rewards cannot therefore expect to be successful unless the organization has a thorough understanding of the various needs, expectations, and values—as well as education, skills, and potential—of its different employees. This study aims at achieving a deeper understanding of the relationship between total rewards and employee retention in Islamic banks in Jordan, taking account of the particularity of the employees in this specific setting. Especially in developing countries and the organizations therein, employee retention has become a problem that significantly hinders business development. While a total rewards approach has been highlighted as a critical determinant of employee retention in any context, there remains a limited understanding based on empirical proof of what a successful total rewards system comprises, and minimal recognition of the importance of including employee needs in the design of such a system. Furthermore, none of the extant studies into different types of rewards and how effective they are in improving employee retention have been conducted in the particular context of Islamic banks in Middle East. Given the ethical codes, corresponding expectations and priorities of much of the workforce therein, this context will not necessarily follow patterns typical in Western countries and organizations. The Islamic banking sector is furthermore one that holds economic importance in the Middle East, and particularly in Jordan; its prosperity is of significant consequence to the country and region's economic welfare, thus meriting closer study. It is the intention of this study to address this gap. Literature Review Employee Retention Employee retention continues to pose one of the greatest challenges facing organizations and managers today (Pregnolato, Bussin, & Schlechter, 2017), with the loss of valuable talent incurring heavy costs to the organization in terms of institutional know-how as well as the time, money, and efforts needed to recruit and train replacements. Iqbal (2010), in a study of employee turnover in Saudi Arabian organizations, claimed that in a technical firm, the cost of losing one employee can reach up to $200,000 or 250% of that employee's salary. Chiboiwa, Samuel, and Chipunza (2010) put the cost of replacing an employee at 150% of that employee's salary, a significant draw on the operations and maintenance budget. Anis, Rehman, Rehman, Khan, and Humayoun (2011) evaluated the cost of replacement at roughly the same sum of 1 year's salary plus benefits for the given employee. In itself, finding suitably qualified replacements is not easy (Boyens, 2007) and requires significant efforts as well as expense. In the current climate of intense competition for talent among businesses worldwide, high turnover is an ever-greater threat. As more and more organizations begin to offer higher rewards systems that foster individual career development, others are having to seriously address their own retention strategies. For organizations to keep up with their competitors and guarantee the growth of their businesses, such strategies must effectively ensure employee satisfaction, enhance employee performance, and ultimately safeguard against high turnover (Nwokocha & Iherirohanma, 2012; Ramlall, 2004). Employee retention strategies are therefore those aiming to prevent the loss of an organization's highly valuable employees. They aim to motivate employees to remain with their employer organization for as long as possible to the advantage of both. Acquiring and retaining capable employees is key for any organization given that employee expertise and knowledge stand at the core of a firm's economic competitive advantage. A longer employee retention period is considered a significant part of an organization's competitive advantage; an organization's performance and productivity are therefore expected to increase when its employees remain with the firm for a longer period. According to Amadasu (2003), Gberevbie (2008), and Taplin, Winterton, and Winterton (2003), the implementation of appropriate and adequate employee retention approaches will result in employees staying and working toward achieving the organizational objectives. Various studies have attempted to identify the determining factors behind employees' intentions to leave their job and move to another organization (e.g., Bluedorn, 1982; Kalliath & Beck, 2001). The reasons that have emerged are multiple. A combination of job pressure, lack of job satisfaction, and low commitment to the organization is cited as leading to employees' resignation (Firth, Mellor, Moore, & Loquet, 2007). According to Kaliprasad (2006), the employee retention capacity of an organization totally relies on the organization's capability to manage its human resources well; it is well noted that unhappy employees will lean toward leaving their organization (Schuler & Jackson, 2006). Total Rewards Total rewards consist of all monetary, nonmonetary, extrinsic, intrinsic, and social benefits that an employee could receive from his or her employer organization (Chinyio, Suresh, & Salisu, 2018; Dessler & Cole, 2011; Dobson, 2009; Morgan et al., 2013; Twenge et al., 2010). Several studies have demonstrated the critical role played by a total rewards approach in ensuring organizational commitment and willingness to remain among employees (Chiboiwa et al., 2010; Medcof & Rumple, 2007; Morgan et al., 2013; Newman & Sheikh, 2012). Wang (2004) furthermore argued that the increased motivation and retention of employees, as a result of total rewards, contributed to ensuring top-notch individual performance and workforce loyalty. Within the literature, three principal forms of organizational rewards are identified: extrinsic, intrinsic, and social (Morgan et al., 2013; Twenge et al., 2010; Williamson, Burnett, & Bartol, 2009). Extrinsic rewards essentially consist of tangible benefits including pay, promotion opportunities, career development, and a reasonable workload (Malhotra et al., 2007; Morgan et al., 2013). Intrinsic rewards, on the contrary, are intangible forms of compensation, such as the opportunity to have input into the definition of one's job tasks, meaningfulness of job tasks, and coworker support (Hackman & Oldham, 1976; Morgan et al., 2013). Social rewards include those derived from positive social interactions within the workplace such as enjoying supportive relations with colleagues and supervisors (Twenge et al., 2010; Williamson et al., 2009). As previously discussed, while much research supports the premise that a total rewards approach to employee compensation positively impacts retention (along with motivation, organizational commitment, and performance), there are inconsistent findings concerning which types of rewards are most effective in this regard. A comprehensive literature review suggests that a majority of modern studies support the greater influence of intrinsic rewards as determinants of retention. Stone, Bryant, and Wier (2010), for example, noted that financial incentives do not always achieve what they are supposed to, and that material incentives in general fail to fulfill employees' basic psychological needs or indeed account for the diversity of individual needs. On the same note, Hill and Tande (2006) found that 88% of highly skilled employees left their organization on the basis of nonmonetary motives. The principal causes of turnover were limited development opportunities (39%), unhappiness with management (23%), and feeling a lack of recognition (17%). Ultimately, however, numerous recent studies advocate for the implementation of a total rewards strategy comprised of a diverse range of incentives so as to meet the various material and nonmaterial needs of an organization's workforce and thus increase their likelihood to remain within the organization (Akhtar et al., 2015; Armstrong & Brown, 2006; Cao et al., 2013, among others). Extrinsic rewards Extrinsic rewards are considered the factors that make up the external context within which a job is executed (Herzberg, Mausner, & Synderman, 1959; Olsen, Kalleberg, & Nesheim, 2010). They consist of the total package of tangible benefits obtained by the employee from their employer organization, including financial compensation, employer insurance, organizational support for education and training, promotion opportunities, reasonable workload, and supervised career development (Morgan et al., 2013). As noted by Thorndike (1911), the idea that people are motivated to work by key factors like wages or other financial or material incentives, thus extrinsic rewards, goes back to the very dawn of academic research into work. And despite the fact that much recent literature focuses primarily on the importance of other types of compensation, extrinsic rewards remain essential to employment and employee management (Twenge et al., 2010). The receipt of extrinsic benefits deemed sufficient for the individual employee's needs is likely to positively affect his or her choice to remain with that organization (Chinyio et al., 2018). Specifically, it has been noted that wages are likely the only essential extrinsic reward (McGovern, Smeaton, & Hill, 2004), although various studies link employees' intention to continue with their current employer with the joint benefits of high wages and opportunities of advancement (Bishop, Weinberg, Leutz, Dossa, & Pfefferle, 2008; Chinyio et al., 2018; Stearns & D'Arcy, 2008). Based on the above, the following hypothesis is made: Hypothesis 1 (H1): Extrinsic rewards have a significant relationship with employee retention in Islamic banks in Jordan. Intrinsic rewards Intrinsic rewards refer to nonfinancial benefits such as supervisor support in executing job tasks, the opportunity for autonomy in or having one's own input into job tasks, the meaningfulness of those tasks, and support from coworkers (Morgan et al., 2013). In exchange for the intrinsic rewards offered to employees, the principal benefit gained by the employer organization is the core motivation that develops in an employee to achieve his or her job tasks rather than motivation driven purely by the idea of receiving tangible incentives and further extrinsic rewards. Hence, an interesting work environment, challenging and varied work tasks, and responsibility are all acknowledged as factors that render a job intrinsically motivating. Such a job should furthermore allow employees to see the results of their hard work, and sense how their work makes a significant difference to others (Deci & Ryan, 2000; Hackman & Oldham, 1980). These intrinsic features of the job are an essential factor in an employee's evaluation of their job regardless of the significance of the job's extrinsic aspects (Gallie, Felstead, & Green, 2012). Intrinsic rewards usually exist within and emerge from doing the job itself, such as a sense of accomplishment, challenge, autonomy, personal and professional development, status, acknowledgment, the admiration of superiors and coworkers, and self-esteem (Mahaney & Lederer, 2006, p. 43). It is believed that employees are more likely to work hard and generate excellent results if they are well motivated; feel proud of what they do; believe their exertions are vital for the success of the team; and have jobs that are exciting, rewarding, and stimulating (Mahaney & Lederer, 2006, p. 50). The effects of the lack of some of these intrinsic benefits have been interestingly documented. For example, Wetzels, Ruyter, and Bloemer (2000) and De Ruyter, Wetzels, and Feinberg (2001) found that feelings of uncertainty, subsequent stress increase, and ultimate emotional detachment from the employer organization are likely to occur in employees who are uncertain about their employer's expectations of them. If, on the contrary, such clarity was afforded to the employees, they might reasonably be expected to demonstrate greater intention to remain. Other studies have highlighted the effectiveness of intrinsic rewards such as work-life balance, appreciation, challenging tasks, and special projects in motivating and retaining employees, notably those who already have significant work experience (Hytter, 2007; Jeffords, Scheidt, & Thibadoux, 1997; Zahra, Irum, Mir, & Chisti, 2013). Ultimately, there are numerous academic voices that have laid emphasis on the importance of offering intrinsic rewards for the sake of improving employee retention (Cao et al., 2013; Medcof & Rumple, 2007, among others). Accordingly, the following hypothesis is proposed: Hypothesis 2 (H2): Intrinsic rewards have a significant relationship with employee retention in Islamic banks in Jordan. Social rewards As stated in most of the needs-based motivation theories, one of the elements of intrinsic motivation is the need to belong or to be connected (McClellend, 1985; Ryan & Deci, 2000). Social rewards target this particular need and include affection, admiration, praise, and attention from others. They are social interactions known to produce a sense of security and to reinforce employees' feelings of belonging and acceptance within the working environment. Social rewards manifest in the opportunities a working environment offers to individuals to build friendships and have positive contact with multiple other individuals in the course of work. In receiving these social rewards, employees will experience the feeling of proficiency and self-confidence both in the performance of their tasks and in social interactions. This type of reward is particularly significant because it can be delivered frequently and instantly, for example, directly after witnessing desirable behavior from an employee. The simplest gestures, expressed through a smile or a kind word from a person of interest, can be the best motivation for individuals to go the extra mile and excel at what they do. Employees are likely to develop a sense of obligation and emotional attachment toward their organization if they are pleased with the way in which their supervisors direct them and evaluate their performance (Eisenberger, Armeli, Rexwinkel, Lynch, & Rhoades, 2001). Hence why social rewards can be an excellent choice to maintain continuant and consistent employee involvement within an organization, and why social rewards are considered a more effective motivation tool than financial incentives. Based on the above, the following hypothesis is proposed: Hypothesis 3 (H3): Social rewards have a significant relationship with employee retention in Islamic banks in Jordan. Method The instrument used in this study to collect data is a questionnaire. The questionnaire consists of five parts. In the first part, respondents were asked to provide demographic information (gender, age, level of education, years of experience, and employer bank). In the remaining parts, respondents were asked to express their level of agreement with multiple statements relating to the main variables in this study: extrinsic rewards, intrinsic rewards, social rewards, and employee retention. The measures of both extrinsic and extrinsic rewards were taken from Morgan et al. (2013). The measures of social rewards were taken from Twenge et al. (2010). Finally, the measures of employee retention were taken from Kehoe and Wright (2013). All answers were given on a 5-point Likert-type scale where 1 = strongly disagree and 5 = strongly agree. The study population included all employees in the Islamic banks in Jordan: Islamic International Arab Bank, Jordan Islamic Bank, Jordan Dubai Islamic Bank, and Al Rajhi Bank, distributed over 136 branches across Jordan (this figure being taken from the Central Bank of Jordan, 2016 report). A sample consisting of 500 employees were randomly selected for the study to avoid sampling bias. The analysis unit included branch managers, administrative staff, and accountants. Of the total number of questionnaires distributed in the study sample, 392 (78.4%) were recovered. Seven questionnaires were incomplete and therefore not valid for analysis. Thus, the final number of questionnaires that fulfilled the necessary conditions and accordingly underwent analysis was 385, 77% of the total distributed. Descriptive Statistic Table 1 demonstrates that the number of male respondents came to 244, representing 63.3% of the total respondents, while 141 were female, representing 36.6%. In terms of age group, the highest percentage of the sample (50.9%) was between 31 and 40 years old, while the second highest (28.1%) was aged 41 years or more. Regarding the level of education, the highest proportion of the total study sample (67%) was bachelor's degree holders, 22.3% were master's degree holders, while the lowest percentage (10.65%) have a PhD degree. Finally, as regards professional experience, the greatest proportion of the sample (30.9%) claimed to have between 5 and 10 years of experience, and the second largest between 11 and 15 years, representing 28.8%. Table 1. Demographical Characteristics of the Respondents (n = 385). Table 1. Demographical Characteristics of the Respondents (n = 385). View larger version Data Analysis This study selects the variance-based structural equation modeling with partial least squares (normally known as PLS-SEM) to analysis our model. As a nonparametric technique, PLS-SEM can be used for prediction purposes by maximizing variance explained in dependent variables, particularly when data violates the normality assumption and when some key regressors are omitted from the model (Garson, 2016; Hair, Hult, Ringle, & Sarstedt, 2014; Petter, 2018). In addition to these proprieties, we belief that PLS-SEM is appropriate for this study because it offers a greater statistical power in that it is more likely to identify relationships as significant when they are indeed present in the population (Hair, Risher, Sarstedt, & Ringle, 2018; Sarstedt, Ringle, & Ting, 2019). Therefore, PLS-SEM is the data analysis technique of this study. We conducted the PLS-SEM analysis with the software ADANCO by Henseler and Dijkstra (2018) to assess both the measurement and structural models of this study. Each model is described and discussed in detail below. Measurement Model Assessment The measurement model of this study involves four latent constructs, including extrinsic rewards (ER), intrinsic rewards (IR), social rewards (SR), and employee retention (ERT). Both extrinsic and intrinsic rewards are operationalized as reflective second-order constructs (multidimensional constructs); meanwhile, social rewards and employee retention are operationalized as reflective first-order constructs (unidimensional constructs). The construct of extrinsic rewards is reflected through five first-order constructs, including financial rewards (FR), organizational support for education and training (OSET), promotion opportunities (PO), reasonable workload (RW), and supervised career development (SCD) (Morgan et al., 2013). The construct of intrinsic rewards is reflected through four first-order constructs, comprising supervisor support of job tasks (SSJT), input into job tasks (IIJT), meaning of job tasks (MJT), and coworker support (CWS) (Morgan et al., 2013). Because the measurement model contains latent variables constructed at a second-order level, we first assess the psychometric proprieties of the first-order constructs (Alsaad, Mohamad, & Ismail, 2015; Wetzels, Odekerken-Schröder, & Van Oppen, 2009). Then, using repeated indicator approach to model the second-order construct of extrinsic and intrinsic rewards (Becker, Klein, & Wetzels, 2012; Polites, Roberts, & Thatcher, 2012), we simultaneously estimated the second-order model and the structural model. The results indicate that the measurement model of the first-order constructs comes across standard validity and reliability criteria. As shown in Table 2, loadings of items and the average variances extracted (AVE) of each construct were all greater than the threshold of 0.5, which demonstrate an acceptable convergent validity (Hair, Ringle, & Sarstedt, 2011). For reliability, the table shows that composite reliability (CR) coefficients were greater than the cutoff 0.7, demonstrating a great deal of reliability (Hair et al., 2011). For discriminant validity, Table 3 shows the results of Fornell-Larcker criterion which is a common way to provide insights into discriminant validity. In this criterion, discriminant validity is proven when each construct's AVE is larger than its squared construct correlations with other constructs (Fornell & Larcker, 1981), which is the case of this study. Furthermore, we used the cross-loading method to evaluate the discriminant validity of the measurement model (Hair et al., 2011). The results presented in Table 4 showed that the item loadings in their postulated latent variable are all higher than the loadings of the items in other constructs, demonstrating acceptable discriminant validity. Table 2. The Psychometric Proprieties of the First-Order Constructs. Table 2. The Psychometric Proprieties of the First-Order Constructs. View larger version Table 3. Discriminant Validity: Fornell-Larcker Criterion. Table 3. Discriminant Validity: Fornell-Larcker Criterion. View larger version Table 4. Discriminant Validity: Cross-Loading. Table 4. Discriminant Validity: Cross-Loading. View larger version Similar to the first-order model, the second-order model performs very well in terms of validity and reliability. Results in Table 5 show that the dimensions (first-order constructs) of extrinsic and intrinsic rewards all weight more than 0.5 on their postulated second-order construct which were well greater than the conventional threshold (Alsaad, Mohamad, & Ismail, 2017, 2018; Becker et al., 2012; Polites et al., 2012). Moreover, all the path coefficients and t-values from second-order to first-order are significant at p < .001. Table 5. Evaluation of the Second-Order Model. Table 5. Evaluation of the Second-Order Model. View larger version Common Method Bias (CMB) This study employed Harman's one-factor test to assess common method variance (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003; Podsakoff & Organ, 1986). A principal component analysis was conducted of all variables included in this study. The results show that no single factor appeared as a dominant factor accounting for most of the variance. The factor with the greatest eigenvalue accounted for only 13.0% of the variance, which indicates that CMB is not a major concern. Because Harman's one-factor test suffers some limitations (Jarvis, MacKenzie, & Podsakoff, 2003), we also adopted full collinearity test which is effective in the identification of CMB, particularly in PLS-SEM (Kock, 2015, 2017; Kock & Gary, 2012). Full collinearity test examines whether, or not, predictor variables along with a criterion variable collinear with each other in a model. According to rule of thumb, the model can be considered free of CMB if variance inflation factors (VIFs) of the full model, including the criterion variable, does not exceed the threshold 3.3 (Kock, 2015, 2017; Kock & Gary, 2012), which is the case of this study as shown in Table 6. Table 6. Full Collinearity Test. Table 6. Full Collinearity Test. View larger version Structural Model Assessment We assess the hypothesized relationship in this section and examine the explanatory power of the model. We applied the PLS algorithm and bootstrap procedures to estimate the R-square, path coefficients, standard error, and t-statistics. The results are presented in Table 7 and depicted in Figure 1. According to R-square assessment of the employee retention, the percentage of variation explained is moderate (R2 = %23.6). Based on the results in Table 7, there appears to be a positive effect of extrinsic rewards on employee retention (coefficient = 0.084, p < .05). This indicates that the increase of one degree in extrinsic rewards leads to an 8.4% improvement in employee retention. There is furthermore a positive effect, statistically significant on an alpha level of α < 0.05, of intrinsic rewards on employee retention (coefficient = 0.098, p < .05). Thus, an increase of one degree in intrinsic rewards leads to improving employee retention by 9.8%. A positive effect, statistically significant on an alpha level of α < 0.05, of social rewards on employee retention (coefficient = 0.431, p > .00) is also evident, indicating that the increase of one degree in social rewards leads to an improvement in employee retention of 43.1%. Accordingly, we accept all of our hypotheses which state that there are relationships between total rewards (extrinsic, intrinsic, and social rewards) and employee retention in Islamic banks in Jordan.

Verbal and written offers/contract techniques

Is a verbal offer binding? An unconditional verbal offer becomes legally binding and enforceable on its acceptance, just like a written offer. However, certain offers, such as in a real estate sale or purchase, must be made in writing. Is a Verbal Job Offer Binding? A verbal or oral job offer can form a legally binding contract if it's accepted by the applicant. The legal position doesn't change just because some important terms of the contract (salary, etc.) are not yet finalized or the applicant hasn't started working yet. A verbal offer in such cases is no different from a written job offer. If you accept a job which is offered to you verbally, you enter into a legally enforceable contract. Thus, if someone offers you a job over the phone and you accept it, you cannot go for another interview, accept another job and then reject the offer you already accepted. Likewise, the employer cannot unilaterally withdraw a verbal offer of employment unconditionally accepted by you. The job offer must be unconditional. If the offer is made subject to certain conditions, like medical checkup or references, a final agreement is not formed until the set conditions are fulfilled. Mere acceptance of a conditional offer does not constitute a valid contract. A verbal job offer, which is made and accepted formally, is legally binding on both the parties. However, it's a bit more complicated than a written agreement since you must establish the terms of employment at the time of the offer. Usually, in the case of a verbal offer, there is no witness or any other proof of offer or associated conditions. That's the reason it's usually followed by a written confirmation. The employer offers you a job, you accept it, the employer sends across an offer letter, finally, you accept the offer in writing and a written contract is formed. Verbal vs. Written Job Offer Although a verbal job offer is no different from a written offer, it's good to have at least some part, like the job description, in writing. Legally speaking, a job offer, whether verbal or in writing, is of no significance unless you have a contract of employment, since either of the parties can rescind such an offer. Job application and hiring processes differ from company to company. One employer may hire an applicant on the spot, while another company may have a multi-step process spread over a period of several weeks. However, irrespective of the company culture, it's always better to insist on a written job offer. It gives you peace of mind and confidence, especially for submitting your resignation in your current organization. In a verbal job offer, the hiring manager and the prospective employee negotiate the salary, perks, job responsibilities and the reporting day, among others. In the age of background checks and employee verification, making and accepting a verbal job offer implies a good amount of trust between the parties. A verbal job offer is more of an informal type in nature, usually with very few parameters to restrict the work environment. For example, there may be no provisions for periodic pay hikes and paid leaves. In most cases, a written job offer made initially, is a conditional one. It requires the candidate to pass certain pre-employment steps, like a background check and past salary verification, before being handed over a final written offer. After finalizing the terms of employment, when the candidate signs the written offer, it's prudent for him to get a copy of the same with the employer's signature. Without an employment contract, you may lose the job even before you start. This risk is higher in the case of a verbal job offer because the employer can deny that he offered you a job, especially if you don't have anything to prove your side. Verbal Offer to Sell or Buy Real Estate In most of the states including North Carolina, contracts to buy or sell a property or real estate must be executed in writing; verbal agreements in such cases are invalid. If there is another offer already accepted and signed by the seller, you may lose the property to another buyer. Similarly, unless you put down the verbal agreement on paper and get it signed by the seller, you cannot enforce the agreement, and the seller can accept another offer. It's up to the seller whether he chooses to honor or reject a verbal agreement. If you need help with questions like "Is a verbal offer binding?" you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Applicable federal laws and regulations related to talent planning and acquisition activities

Major Laws and Regulations that Affect the Selection Process The following is a list of the major laws and regulations that affect the selection process. Before you proceed with recruiting, be sure you are familiar with these regulations: Age Discrimination in Employment ActAmericans with Disabilities Act (ADA)Equal Pay ActFederal Executive Order #11246Illinois Human Rights ActImmigration Reform and Control Act (IRCA)Pregnancy Discrimination Act of 1978Title VII of the Civil Rights Act Age Discrimination in Employment Act Prohibits discrimination against persons 40 years of age and over. Promotes the hiring, promotion, and other terms and conditions of employment of older people. Requires hiring decisions based on abilities rather than age. May Ask:Are you at least 18 years of age? May Not Ask: What is your date of birth?How old are you?What are the ages of your children?When did you attend high school?When did you graduate from high school? Americans with Disabilities Act (ADA) Requires facilities to be accessible to the disabled. Prohibits employment discrimination on the basis of disability. Prohibits pre-employment medical inquiries and examinations. Prohibits an organization from excluding a qualified person if he or she can perform the "essential functions" of the job either unaided or with "reasonable accommodation." May Ask:Are you capable of performing the position's essential job functions with or without accommodation?Can you meet the attendance requirements of this job? May Not Ask:Do you have a disability?Do you have any previous major medical problems?Have you ever received worker's compensation?How many days were you sick last year?What prescription drugs are you currently taking?Have you ever been treated for alcoholism or mental health problems? Equal Pay Act Prohibits discrimination based on sex in the payment of wages or benefits when men and women perform work requiring similar skills, effort, and responsibility for the same employer under similar working conditions. Federal Executive Order #11246 Requires federal contractors to engage in affirmative action to address underrepresentation in the work force based on race, ethnicity, or gender. Illinois Human Rights Act Provides for freedom from discrimination because of race, color, religion, sex, national origin, ancestry, age, marital status, physical or mental handicap, military status, or unfavorable military discharge, in connection with employment. Immigration Reform and Control Act (IRCA) Prevents employment of illegal aliens. Requires employers to ensure applicants are legally employable in the United States. Requires employees to complete an Employment Eligibility Verification Form (I-9 Form). Employers often violate the act by asking for identification only from people of color; or applicants with obvious cultural, language, speech, or accent differences. May Ask:Are you legally employable in the United States?Are you able to speak/write English fluently?What languages other than English do you speak? May Not Ask:What kind of last name is Smith?Where were you born? Were your parents born there?What is your lineage or national origin?What is your spouse's nationality?Are you a citizen of a country other than the United States?What is your native tongue? How well do you speak English?What is your maiden name? Pregnancy Discrimination Act of 1978 Prohibits discrimination based on pregnancy. Women affected by pregnancy, childbirth, or related medical conditions shall be treated the same as non-pregnant employees for all employment-related purposes, including fringe benefits. May Not Ask:When do you plan to have children?How many children do you have?What are the ages of your children?What is your maiden name? Title VII of the Civil Rights Act Prohibits discrimination in hiring, compensation, and terms, conditions, or priveleges of employment based on race, religion, color, sex, or national origin. May Ask:You may ask applicants to volunteer racial information -- when it is not seen by the individual or office involved in the hiring decision.What professional organizations do you belong to?Are you available to work weekends? (If job related).Have you used any other name(s) on employment or education records?For purposes of checking your work record and credentials, have you ever changed your name or assumed another name? May Not Ask:You may not ask applicants to supply a photo in the application process.What race are you?Tell me all the clubs you belong to.What place of worship do you attend?Do you wish to be addressed as Mrs., Miss, or MS.?What is your spouse's name?Where is your spouse employed?

Candidate/employee testing processes and procedures

Screening by Means of Pre-Employment Testing September 10, 2018 LIKESAVEPRINTEMAIL REUSE PERMISSIONS Scope—This article discusses the basics of pre-employment testing, types of selection tools and test methods, determining what testing is needed, a source for reviews of commercially available tests, and implementation and monitoring of pre-employment tests by HR practitioners to ensure that they are reliable, valid, legal and effective. This toolkit does not address drug testing. Overview An organization that makes good hiring decisions tends to have higher productivity and lower turnover, which positively affects the bottom line. Hiring the wrong people can have a negative impact on employee morale and management time and can waste valuable training and development dollars. Pre-employment testing and new screening tools and technology can help HR professionals minimize hiring time and select the most qualified individual who best fits the organization. Pre-employment tests need to be selected and monitored with care; employers run the risk of litigation if a selection decision is challenged and determined to be discriminatory or in violation of state or federal regulations. Tests used in the selection process must be legal, reliable, valid and equitable, and HR professionals need to stay aware of any developing trends. See: Know Before You Hire: 2018 Employment Screening Trends Predictive Assessments Give Companies Insight into Candidates' Potential Most Recruiters Not Fully Confident in Applicant Screening Methods Basics of Pre-Employment Testing Definition of an employment test Employment tests usually are standardized devices designed to measure skills, intellect, personality or other characteristics, and they yield a score, rating, description or category. However, according to the Uniform Guidelines on Employee Selection Procedures of 1978 issued by the Equal Employment Opportunity Commission (EEOC), any employment requirement set by an employer is considered to be a "test." Types of selection tools and test methods Cognitive ability tests measure intelligence. The most common types, IQ tests, measure general mental ability. Other tests gauge verbal ability, math skills, spatial perception, or inductive and deductive reasoning. Physical ability tests measure strength, endurance and muscular movement. Aptitude tests measure an applicant's ability to learn a new skill. Personality tests measure characteristics such as attitudes, emotional adjustment, interests, interpersonal relations and motivation. Employers frequently use these tools, but critics say they are an invasion of privacy and unrelated to job performance. See What Do Personality Tests Really Reveal? Honesty and integrity tests measure an applicant's propensity toward undesirable behaviors such as lying, stealing, taking drugs or abusing alcohol. Two types of tests assess honesty and integrity. Overt integrity tests ask explicit questions about honesty, including attitudes and behavior regarding theft. Personality-oriented (covert) integrity tests use psychological concepts such as dependability and respect for authority. Critics have said these tools may invade privacy and generate self-incrimination. They also claim that candidates can interpret the questions' intent and provide politically correct answers. Some states have regulations regarding these types of tests, so employers should consult with legal counsel before implementing. Polygraph tests provide a diagnostic opinion about a candidate's honesty, but their validity has been called into question, which has led to restrictions on their use. The Employee Polygraph Protection Act of 1988 prohibits employers from requiring or requesting pre-employment polygraphs under most circumstances. Medical examinations determine whether a candidate can perform the essential duties of a specific position (e.g., bending, lifting, walking and sitting). The ADA prohibits pre-offer medical examinations. See Testing: Physicals: What are the compliance issues involved in conducting pre-employment physical examinations? Pre-employment alcohol testing is not recommended because it is considered medical testing under the ADA, and so must be job-related and consistent with business necessity. Testing for illegal substances is not considered a medical examination. Determining what testing is needed To implement a pre-employment testing process, the employer must 1) determine which tests are necessary; 2) select or develop a test that appropriately evaluates the knowledge, skills, abilities and other characteristics (KSAOs) needed; and 3) monitor use of the test. Implementing a valid testing process can be time-consuming, but the wealth of information gleaned may be worth the effort. The first step is to identify the KSAOs required to perform the job: Knowledge is information the employee must possess (e.g., knowledge of accounting principles). Skills are learned behaviors needed to successfully perform a job (e.g., typing). Abilities are observable behaviors, including those needed to perform the physical requirements of the job (e.g., climbing stairs, lifting). Other characteristics include any other job requirements (e.g., attitude, reliability). The process of deciding which tests to use begins by isolating the KSAOs the new employee must possess on Day 1. In other words, what must the person know and be able to do without additional on-the-job training? Once the list of KSAOs is created, the employer can consider testing options. Knowledge is evaluated via written and oral questions. Although commercial tests are available for a host of specific job fields, they should be evaluated for reliability and validity before use. An employer may also develop and validate customized questions for a written exam or an interview, ensuring interviewers ask the same questions of each applicant for the position. Skills are best assessed by having the applicant perform them. Obviously, some skills are more easily assessed than others, but testing key job skills may be valuable. Again, employers should develop a standardized, job-related, validated assessment process for use with each applicant. Skills can be tested by asking for work samples or by developing job-related assessment centers. Abilities are also best assessed by demonstration. When strenuous physical activity is involved, however, safety concerns may trump the need for evaluation. Many employers prefer the mental ability test, which measures general intelligence, but it is uncertain whether such tests predict job performance, and they often have a discriminatory impact. For jobs that require frequent learning or mental acumen, a job-related assessment center is a better option. Other characteristics can be assessed in various ways, depending on the specific attribute. Some of these tests will be classified as medical evaluations and cannot be administered until the employer makes the job offer. Selection of appropriate tests Developing an employment test that meets legal and regulatory criteria and professional standards is an arduous task. It is expensive and time-consuming and requires sophisticated test development skills. The Uniform Guidelines on Employee Selection Procedures of 1978 details the standards to which the EEOC will hold employers accountable when using employment tests. Commercially available tests used in making employment decisions should be researched using a reliable guide. Unfortunately, many commercially available employee selection tests fail to meet the necessary criteria for use in employment testing. The Mental Measurements Yearbook (MMY), which is published by the Buros Center for Testing housed at the University of Nebraska-Lincoln, is one means of making informed decisions about commercially available tests. The MMY series is a source of objective, professional-quality reviews of commercially available tests and is widely respected and cited in all fields of psychological assessment. The Society for Industrial and Organizational Psychology provides many resources on employment tests and how to select them in the Employment Testing section of their website. Selected tests should be convenient, competitively priced, reputable and accurate. The vendor must be able to demonstrate that its procedures comply with applicable laws. A vendor's references and accuracy guarantees should be checked prior to making a final decision. See: SHRM's HR Vendor Directory. How to Choose Hiring Assessments That Work for You Choosing Effective Talent Assessments to Strengthen Your Organization Legal Issues Employers must ensure that any selection tests are reliable and valid, yielding consistent results that predict success on the job; if not, discrimination claims are likely to ensue. The EEOC's Uniform Guidelines on Employee Selection Procedures detail how the EEOC will evaluate a testing method called into question; the agency offers additional guidance in its Employment Tests and Selection Procedures fact sheet. States may have individual requirements and guidelines for those working in that state. Consulting with an attorney before implementing any selection method is advised. See DOL Cracks Down on Company's Use of Hiring Tests. Establishing reliability A reliable selection instrument will have a high degree of consistency. Otherwise, test results may vary between applicants, groups or evaluators. Many employers think properly used and administered formal tests can be beneficial to the employment selection process. However, perfect reliability is difficult to achieve because a variety of factors can challenge a test's integrity—such as inappropriate or irrelevant questions or rater bias in evaluating job candidates. To improve reliability among raters, organizations should provide adequate training on the ground rules for each selection test. See Validate Employment Tests to Avoid Lawsuits and What compliance issues are involved in creating a pre-employment test? Establishing validity Validity measures the degree to which the conclusions drawn from a test are accurate. In other words, does the test accurately measure job-related factors that predict job performance? For a pre-employment assessment instrument, validity is the extent to which the test or tool actually measures what it purports to measure. Test publishers conduct validation studies in accordance with guidelines issued by the EEOC, and certain industry and professional standards. One of the most widely used and respected examples of these standards can be located through the Society for Industrial and Organizational Psychology. The EEOC has approved three primary forms of validity: Content validity is appropriate when a job analysis defines a job in terms of the important behaviors, tasks or knowledge required for successful performance, and the assessment or test is a representative sample of those behaviors, tasks or knowledge (e.g., a typing or mathematics test, or an exam for certified public accountants). The Uniform Guidelines on Employee Selection Procedures state that to demonstrate the content validity of a selection procedure, a user should show that the behaviors measured in the selection procedure are a representative sample of the behaviors of the job in question, or that the selection procedure provides a representative sample of the work product of the job in question. This is the least sophisticated type of validity to assess, provided the HR practitioner or consultant is a competent job analyst. Criterion-related validity relates to a test's ability to predict how well a person will perform on the job. The desired KSAOs for job performance are the "criterion variables." Tests, or predictors, are then devised and used to measure different job dimensions of the criterion variables. "Tests" may include having a college degree, scoring a required number of words per minute on a typing test or having five years of medical transcription experience. These predictors are then validated against the criteria used to measure job performance, such as supervisor appraisals, attendance and quality of work performed. There are two different approaches to measuring criterion-related validity. In an assessment of concurrent validity, an employer tests current employees and compares scores with job performance ratings, so that the test scores and performance measures are available at the same time. In an assessment of predictive validity, the employer compares applicants' test results with their subsequent job performance. Construct validity refers to the extent to which a selection device measures a particular "construct" that, according to a job analysis, underlies the successful performance of the job in question. Typical constructs include intelligence, honesty, dependability and mechanical comprehension. Because a theoretical construct is used as a predictor in establishing this type of validity, the legality and usefulness of assessment tools like personality tests are more likely to be questioned. Monitoring use of pre-employment tests It is critical for an organization to continuously monitor the use of any pre-employment test to support legal compliance. Implementing a tracking process for procedures and results, including recording the candidates' profile, tests given, and scores achieved, can help ensure testing procedures are valid over time. Staying abreast of legal developments in employment testing is also necessary to validate their continued use. If any adverse impact against a protected group is found when auditing a selection test, legal counsel should be sought out immediately. Global Issues Employers in the United States with employees in other countries must decide whether and how to tailor their testing programs to comply with applicable international laws, regulations and business practices. Employers should identify those laws and customs, and with the advice of legal counsel, recommend a strategy that addresses the legal parameters and practical constraints of administering a testing program. General considerations should include the stringent individual privacy laws prevalent in many countries, the cultural differences in societal tolerance (or intolerance) of employment testing, and the practical difficulties of administering any program.

Current market situation and talent pool availability

This article is excerpted from Chapter 6 of the newly published The Recruiter's Handbook: A Complete Guide for Sourcing, Selecting, and Engaging the Best Talent (SHRM, 2018). Talent pools are groups of employees who are being trained and developed to assume greater responsibilities within the organization. Often, but not always, they have been identified as high-performing and high-potential individuals. Talent pools allow organizations to develop employees in areas that align with company competencies and values instead of focusing on developing specific position skills. This allows talent pools to address the biggest challenge with succession planning, which is telling individuals they're part of the plan. Organizations can communicate to a group, "You're the future of the company," instead of telling an individual, "You are our next chief marketing officer." Talent pools provide the flexibility needed in emerging or developing industries. Some industries are moving so quickly that they don't know what next year looks like, much less what their five-year recruiting strategy should include. That unpredictability can make traditional succession planning efforts difficult and talent pools an ideal tool. Creating a talent takes some planning and here are four proven steps to to developing an organizational talent pool: Step 1. Review the organizational strategies. Much of the information regarding the strategies has already been gathered as part of the workforce planning activity. The goal here is to identify the competencies needed to make those strategies happen. In the future, the strategies will change, but the competencies may remain the same. An example is critical thinking skills. Regardless of the strategy, critical thinking is necessary. Step 2. Assess the company's current talent to identify any skills gaps. Again, this information was gathered during the staffing analysis and workforce planning activity. Organizations can accomplish this step using a variety of techniques, including performance reviews, assessments, multi-rater feedback, and interviews. A combination of techniques could prove to be exceptionally valuable. The key consideration is consistency. Step 3. Create modules or groups of activities that will help employees learn the skills they need. Once the organization identifies the skills it will help employees develop, recruiting can work with learning and development to figure out the process. A combination of internal and external training and project-based learning may be useful. Three activities proven to be very effective include: Management coaching. Good managers have valued relationships with their employees. They are positioned to deliver open, honest feedback that can help employees change behaviors and improve performance. Peer-to-peer feedback. Organizations spend an incredible amount of time collaborating. Peer-to-peer interaction is how most employees spend their time. Training employees to deliver timely, specific feedback can make an impact. Mentoring. Organizations can encourage mentoring relationships to cover topics that don't necessarily warrant a training program—like office politics and negotiation skills. Employees can benefit from the wisdom of experience. Step 4. Monitor progress and make regular adjustments. Like succession planning and recruiting strategies, talent pools need to be monitored. The organization should conduct regular talent assessments and observe market conditions. Both internal and external factors can prompt a change in talent development strategy. The talent wars aren't going away anytime soon. Organizations must think about the future. They are not going to be able to find all the talent they need via external recruiting. Talent pools allow companies to develop future talent from within. They also give businesses the flexibility to meet their fluid operational needs.

Staffing alternatives (for example: outsourcing, temporary employment)

Three Alternatives in Labor Resourcing Models Every day, thousands of people contribute to the success of companies that do not directly employ them. This non-employee workforce is comprised of temporary or contingent workers, contractors, and independent contractors, consultants, interns, and a number of other classifications. It is estimated that across different industry verticals, the percentage of non-employee contributors is regularly as high as 50% at companies of all sizes and across multiple industries. They work in every imaginable function—from IT to legal and marketing. So why do organizations adopt this practice? For many, it's simply about maintaining a level of flexibility in their workforce to manage through demand cycles in their business. For others, it's more strategic and dependent on the need for specialized talent to complete critical projects—functions like product design, testing and launch, new technology implementation, or a response to a product quality event. However, far more organizations have integrated diverse labor resourcing models into their talent supply chains—often to manage their businesses as efficiently as possible, but also out of necessity in order to gain access to specialized services offered at the right price and scale. Some examples of specialized services might include a team of medical writers to complete a segment of a clinical trial; scientists to manage the collection, testing, and documentation of agricultural samples during geographically-diverse growing seasons; or a team to run a contact center to manage the response to a natural disaster.So how is this vital workforce engaged? There are three primary resource models, each with variations and nuances dependent on the industry, country legislative requirements, and individual company policies.The three models are:Contingent Workers - also referred to as Staff Augmentation, Contractor Workers or Temporary Employees.Project-Based Workers - also known as SOW Contractors, Service Providers, or Independent Contractors.Fully-Outsourced Service Provider - often as part of a Business and Professional Services (BPS) solution or Business Process Outsourcing (BPO) program. CONTINGENT WORKERS Contingent workers are utilized in wide variety of functions, primarily to add capacity to an organization's full-time workforce. This often helps companies meet increased volume driven by seasonal demand cycles, short-run production requirements, fulltimeemployee absences, specialized skills gaps, or expertise needed for a shortterm requirement. Many companies choose to maintain a consistent population of contingent workers so they can quickly flex up or down in response to changes in demand, without having to impact their full-time regular employees. Additionally, a group of fully-trained contingent workers is an ideal pipeline to draw from when new full-time employee openings are created. In this model, the bill-paying customer provides supervision and direction to the worker and maintains responsibility for work product outcome. Three factors to consider when utilizing a contingent workforce model: Are assignment lengths for contingent workers capped by HR policies? Can your management team absorb additional workers and provide the proper amount of supervision and work direction? What level of effort is required to replace and retrain the contingent worker? PROJECT-BASED WORKERS Project-based workers tend to be utilized to fulfill requirements that have a defined start and stop, are longer term in nature (generally 6-36 months), and require semi to highly-skilled workers to deliver the desired project outcome. Additionally, projectbased worker engagements are governed by a Statement of Work (SOW) outlining specific deliverables, terms, Service Level Agreements (SLAs) for individuals, or a team of workers to meet the project requirements. Some key deliverables for firms that provide project-based workers as a service is a robust bench or pipeline of specialized talent, domain and/or industry expertise, and sound engagement and retention practices. Many workers with specialized skills and experience choose this employmentmodel as it offers an excellent balance of stability and flexibility, while also providing opportunities for diverse corporate culture experiences. In this model, supervision and guidance on how the work is performed is shared between the bill-paying customerand the service provider, with specifics outlined in an SOW. Here are three factors to consider for project-based solutions: Does the project have a defined start and stop and overall duration that exceeds contingent worker assignment length guidelines? Is it crucial to retain control of work direction and outcome ownership? Is it best for the work to be performed on-site at your work facility? FULLY-OURSOURCED SERVICE PROVIDER Fully-outsourced service provider arrangements are used for work functions ranging from routine administrative tasks to complex engineering services, and from high-volume transactions to specialized technical support. Some outsourced work is considered"non-core" to the bill-paying customer's business, while other services are vital to the enterprise, but are managed more efficiently by the service provider due to technology or specialization. Services provided in this model may be performed off-site at the serviceproviders' location or on-site at the customers' facility. Either way, this model represents the most significant level of work outcome responsibility transfer from bill-paying customer to service provider. Is a fully-outsourced service provider right for you? Three questions you should ask: If the work is tied to an ongoing function, does your organization perform the function efficiently and cost effectively? Do service providers exist that specialize in the function to be outsourced as a core competency? Is the talent required to perform the work specialized and costly to recruit and retain? There are many factors to consider when building your talent supply chain, including company HR and Procurement policies related to labor utilization, as well as risks associated with talent retention and IP protection. Striking the ideal balance between the talent you build, buy, or borrow is a crucial decision that can impact access to scarce talent, or lead to missed opportunities to increase productivity and efficiency.

Internal workforce assessments (for example: skills testing, workforce demographics, analysis)

Workforce Planning Is Essential to High-Performing Organizations By Peter Louch, VemoOctober 3, 2014 LIKESAVEPRINTEMAIL REUSE PERMISSIONS In today's talent-based economy, the workforce itself is arguably the most important tangible asset of most organizations. Despite its importance, this asset is often not carefully planned, measured or optimized. This means that many organizations are not sufficiently aware of the current or future workforce gaps that will limit execution of business strategy. Yet at the same time, boards of directors, CEOs and chief human resources officers will frequently declare that workforce planning and data- driven decision-making is a top priority for their organizations. While it is difficult to understand this apparent gap between intent and execution, the most obvious cause is a lack of consistent objectives regarding the outputs of workforce planning, and a lack of consistent process by which organizations conduct workforce planning and predictive modeling. Organizations need an approach that moves workforce planning from the domain of "futurists," where only a few people live, to the domain of operational effectiveness, where management is accustomed to spending its time and energy. This article outlines what a pragmatic and operational workforce planning process should look like—as well as predictive tools that help organizations measure and respond to their workforce gaps. Using this model and tools, high-performance organizations can use workforce planning to ensure that they have the required talent to drive business objectives. Overcoming Traditional Barriers to Workforce Planning Workforce planning has topped the wish list of HR executives for years, but it has consistently been one of the most difficult programs to launch within HR. There are myriad reasons, but the most common are: Time frame. Many managers are focused on executing current-year results, but workforce planning has typically addressed a longer time frame and doesn't show immediate gains that can help meet this year's results. Data integrity concerns when "getting out of the gate." Managers are reluctant to review future plans when they feel that they can't get a proper view of current head count. Control. Some managers have gut feelings and don't want to reference data without a compelling data story. There is no opportunity to shift this stance until managers experience the actual pain that could have been avoided through workforce planning. Detail. Organizations have a hard time settling on the appropriate level of granularity of workforce planning, or their job taxonomy. It's generally understood that a workforce plan has to distinguish one type of job from the next, but is it sufficient to look at broad labor categories, narrower job families, individual jobs, or actual skillsets? So many organizations get into self-imposed delays in rolling out their planning program by trying to find the perfect level at which to plan. From a planning perspective, however, if organizations could start by planning out high-level job categories, this is a great start, and may be enough. Forecasting. Traditional forecasting methods are poor at predicting the actual individuals at risk for turnover and retirement, and, thus, are not sufficiently actionable. Two recent trends serve to moderate—and sometimes even eliminate—these potential roadblocks. The first is a broad-scale acceptance of data-driven decision-making that is infusing the culture of organizations and making workforce planning inherently more attractive. The second involves recent advances in predictive analytics and modeling technology. These advances provide more compelling near-term actionable information about granular employee-level supply risk, while simultaneously helping with demand-based scenario planning. Coupled together, these trends have a profound ability to move workforce planning from a "nice-to-have" status to a critical program for high-performance organizations. Diagram 1 outlines a workforce planning process that combines end-user-based demand planning with predictive supply analytics. Diagram 1. Workforce Planning Process Following the workforce planning activities outlined in the diagram results in these benefits: Aligns strategic planning with head count and talent planning. Creates a clear view of talent demand and supply issues by expense area, reporting relationship, and by location. Provides managers easy-to-use reports and tools to determine the impact of their talent decisions and prioritizes future workforce investments. Provides leaders the right metrics—identifying talent risk before it impacts business objectives. Helps control unplanned talent costs and highlights issues that limit employee productivity. Builds competitive advantage through planned versus reactive talent management. Gives business leaders consistent reporting of results to quantify measurable and meaningful outcomes. The concepts of planned versus reactive risk management, and developing the right metrics are perhaps the most crucial levers to drive support for workforce planning. By shifting workforce planning from a top-down strategic exercise that is only geared towards provoking thought about the future to an operational exercise designed to manage talent risk, workforce planning becomes a concrete activity with specific financial implications. By providing metrics to quantify the risk, it provides something even more concrete for leaders to manage. Demand Planning Within the demand planning component of workforce planning, an organization determines the head count it needs in each job role for each organizational unit. Traditionally, a single person has conducted this work or a center of expertise has created plans and reports for internal customers. However, the future is inherently uncertain. According to Peter Cappelli in his research on workforce planning, "The error rate in the U.S. on a one-year fore- cast of demand at the stock keeping unit (SKU) code or individual product level, for example, is over 30 percent" ("A Supply Chain Approach to Workforce Planning," Organizational Dynamics). Considering this uncertainty, centrally-generated reports and plans are interesting, but understandably have not resulted in the business gaining long-term adoption of the plans, or the workforce planning process. There are two keys to moving beyond this demand planning impasse. The first is cultural. Organizations should avoid confusing planning with the plan, and should value planning as much, if not more, than the actual plan. The plan will not happen. The future is far too uncertain. Planning, however, is a competency that helps managers deal with such uncertainty more quickly and effectively. The second key is to move from top-down planning to bottom-up planning, which requires technology that al- lows end users to evaluate various factors and define talent demand for their business area. This bottom-up planning can be rolled up for various corporate-wide outputs such as the corporate workforce plan, the budget feed, the real estate plan, the reforecast, and more. But, it also can be conducted as needed as part of a frequent recalibration of talent needs based on the state of the business. According to Quinn Thompson, global director of Talent Acquisition and Diversity at International Paper on the shift to user-defined input driving their workforce planning process: "It starts with the benefits created by a center of excellence (CoE), but is based on software that allows end users to create their own workforce plans and end-customers to leverage predictive analytics for their customized gap analyses." A lower-performance organization will have managers decide in a vacuum on their need for talent. In this setting, the industry experience of managers and the amount of data available to make the decision defines the quality of the output. In a high-performance organization, managers are guided through the decision-making process. For example, a manager may be led through a decision tree based on strategic objectives and job criticality. Alternately, a manager may be provided with demand drivers and conduct what-if scenarios that help determine the appropriate number of workers for the workload based on a combination of historical staffing levels and productivity objectives. In the ideal situation, a manager could be provided a detailed proforma demand plan that describes the staffing level for job roles based upon how the organization typically staffs against work volumes and other demand drivers. Then the manager can be led through decision- making to ask questions such as: Do we typically staff against demand correctly? Specifically, do we hire too soon, too late, too much, too little—because knowing how the business is likely to behave in its staffing approach does not mean it's the correct approach. It's just a great starting point of the decision-making—and not the end, as there may be a need to not only know, but also optimize staffing levels. When we examine our business strategies and look at the specific ways we want to create value, does that describe certain roles that should be staffed up? Conversely, when we look at those strategies, are there certain staff areas that are relatively low risk for understaffing. Because it is not possible to staff everything generously, where can we "understaff" with minimal risk to the business? In summary, a technology-enabled bottom-up approach to demand planning creates a more accurate plan and enables a planning culture where managers use data to make staffing decisions - and are more equipped to evaluate how changes to business objectives and environment should impact staffing levels. Internal Supply Analysis Within the internal supply analysis component of workforce planning, an organization evaluates whether it has the supply internally to meet its demand. On a quantitative basis, the process is to evaluate talent supply by job role after attrition: turnover, retirement and internal job movement. On a qualitative basis, it is important to also look at capability and performance, even within jobs that are fully staffed. To derive a supply forecast, a lower performance organization will simply carry forward historical turnover rates or use industry benchmarks. This approach is not sufficiently actionable—at best it is only interesting data to consider as part of workforce planning; at worst, it is incorrect. A high-performance organization will use predictive analytics to identify the risk of turnover, retirement, and workforce mobility of specific individuals. Machine learning statistics packages allow an organization to conduct complex multivariate analysis that incorporates employee demographics, employer actions and workplace conditions, and external economic conditions. Diagram 2 illustrates some of the factors that can be used for predicting turnover, retirement and mobility, as well as the rough importance of such factors in predictive studies. Diagram 2. Drivers of Attrition. An accurate internal supply forecast can thus be aggregated by any dimension and provide a much clearer line of sight into supply risks that need to be closed to fully meet talent demand requirements. Knowing which individuals are at highest risk for turnover provides an organization the lead-time to address future workforce gaps with minimal disruption to the business, enabling the following outcomes: Creation of targeted replacement planning and knowledge transfer for critical roles. Understanding which talent gaps are largest, highest priority and/or most difficult to fill externally. Proactive sourcing by the recruiting function based on prioritization of gaps. Road map of future open positions that can be fi through promotions and developmental assignments. Managed attrition programs that avoid costly work- force reductions for job roles that have a reduced staffing requirement. As with demand planning, technology is a key enabler for internal supply analysis, since it provides a forecast of attrition and movement risk on an employee-by-employee basis. Furthermore, this approach helps organizations that are not currently proficient at demand planning to move towards proficiency by highlighting problems that require consideration of the importance of that problem, i.e., the demand. For example, if a certain employee is known as highly likely to turnover, a manager can ask what's the risk to my work unit of this likely turnover event? Will we still get the required work completed? If the answer is no, is it because of the necessity of the role or the performance of the individual? If the answer is yes, is it because we are overstaffed in this role? Can we eliminate the role with the likely turnover event and hire for a more critical need? In short, reviewing turnover, retirement, and movement risks helps this hypothetical manager conduct demand planning on a micro level, and with the right tools and training, the manager will improve talent decision-making. Gap Analysis and Action Planning Within the gap analysis and action-planning component of workforce planning, an organization evaluates its gaps and determines what actions it can take to close those gaps. Traditionally, those actions consisted of recruiting, development and transition, but with modern predictive technology, an organization can also model the prospective impact of potential interventions in HR policies and talent management actions. A lower performance organization may not understand its gaps, except in the most qualitative sense. This organization can have qualitative action-planning discussions that educate leaders about some workforce risks, but cannot quantify those risks or change any organizational behaviors based on these gaps. A proficient organization can combine its demand planning and internal supply analysis as described above and gain a much clearer picture of the size, type, and timing of gaps between demand and supply. These gaps will lead to a high-quality directional recruitment plan and will highlight areas where an organization may wish to beef up its developmental programs where there are large and consistent gaps. This gap analysis will also highlight where there are job roles that are subject to career transition in one part of the business (demand less than supply) and requiring recruitment in another part of the business (demand greater than supply), so that an organization can reallocate resources and avoid some of the costly cycles of staffing up and down. Each of these responses to the demand-supply gap represents valuable organizational action-planning to address gaps, but do not go as far as making specific interventions to change and control the demand-supply gaps. A high-performance organization will build upon the specific quantitative plan for build-buy-lease as discussed for a proficient organization and will also use technology to conduct what-if analysis to evaluate specific management interventions. The organization will understand how a number of factors drive retention, engagement and organizational performance, including: Pay strategy and annual merit increase. Career ladders and working structures. Promotions, lateral transfers and reorgs. By understanding these relationships, a high-performance organization can seek to close gaps not only through the traditional means of build-buy-lease, but also achieve higher retention and performance by optimizing its workforce policies around those desired outcomes. This organization will not only be creating the appropriate plans to address gaps between its forecasted demand and supply, but will be selectively addressing potential retention and performance risks of critical resources and roles, and will manage those risks through individual action planning measures. Summary There is now an approach for high-performance organizations to develop and sustain high-quality workforce planning programs, and break down the traditional barriers to effective workforce planning. The organization must foster a data-driven planning culture and be willing to value the planning process as much as the actual plan. The managers who participate in this planning process will then be better equipped to make decisions as business results and forecasts change—and more skilled at simulating how changes in business objectives and conditions require different talent sets. The organization must also invest in workforce planning technology that supports predictive supply analytics, bottom-up demand planning, employee- level action-planning, and summarization of gaps. By taking this approach, a high performance organization will be able to conduct gap analysis on the work unit, business unit, and on the organization as a whole. At the work unit level, managers will be better at planning and responding to changes in the business. Managers will also be able to make data-driven decisions that move gradually from blanket HR policies to targeted HR interventions based on the importance of a role or the performance of the individual. Business units and the total organization will also reap the benefits of the workforce planning pro- gram. Finance and real estate will have the information needed to construct their budgets. Human Resources will be able to make better high-level decisions about recruitment, development, redeployment, and transition pro- grams. And, senior leadership will be able to monitor the people health of the organization and the organizational capacity to meet present and future business objectives.

Applicant tracking systems and/or methods

am going to share 5 important tips and facts about the applicant tracking systems that every hiring manager and recruiter should know to be able to truly harness its power and avoid some of its obvious pitfalls. 1. Application tracking systems are not flawlessThis is one reality you must come to face. The fact that they are automated doesn't make them foolproof. They are not meant to replace your commitment and dedication to every aspect of your work day rather they are there to help improve your process and make your daily job easier. 2. They are very powerfulLike every automated system, ATSs can be very powerful to make you succeed. As long as you are able to use it in a way it was designed to be used, you can do incredible things with them. 3. They are as good as the skills of those who will use themThe most important factor for success is not the quality of your ATS; it is the skills and usability of your team. Make sure to provide enough training to your team so that they become comfortable using it. 4. The database is always a goldmine if you know how to use itone of the greatest assets that come with ATSs is their ability to gather data within a very short time. If you know how to use this information, you will have gotten yourself a goldmine. 5. On a good day, your ATS is your best fiendApart from saving you time and money, good ATSs are capable of reducing the administrative and personnel stress you go through every time you need to hire for positions. In the final analysis, having an ATS is very beneficial if you handle it the way it is meant to be handled. What is an applicant tracking system? An applicant tracking system for recruiters simplifies the recruiting process by using automated intelligence to screen for the best, most qualified candidates. Since many open positions can attract hundreds or even thousands of candidates without the necessary qualifications, this saves companies and recruiters time that would otherwise be spent manually weeding out these candidates. How do applicant tracking systems work? Candidates are looking for application processes that are easy and user-friendly. The best applicant tracking systems allow people to easily apply for a position via any device without needing to log in. This means that companies benefit from a larger pool of applicants, which can then be ranked automatically based on skills and experience. During the recruitment process, applicant tracking systems allow users to submit feedback and notes about a candidate easily. Some of these systems allow for collaboration from a mobile device, making it easy for busy recruiters and hiring managers. The best ATS software uses the latest technology such as natural language processing and artificial intelligence, to screen and sort candidates' resumes. These systems scan resumes, look for keyword matches, and use other algorithms for data analysis. Many applicant tracking systems also integrate with job boards, streamlining job postings. The benefits of an ATS There are many benefits of using an ATS, and you can expect to see metrics like time, cost, and candidate quality improve. Interview scheduling is easy with automated emails allowing candidates to choose a time that works for both hiring managers and themselves. An applicant tracking system can also allow recruiters and hiring managers to see all the information and metrics they need with a click of a button. The best systems include robust, user-friendly dashboards and configurable workflows including key performance metrics and industry benchmarks. Signs businesses need an applicant tracking system While companies of all sizes can use applicant tracking systems, they're particularly useful for businesses that are regularly hiring employees for various positions or those that tend to get large numbers of applicants for each position. Businesses are likely to see a significant ROI with an applicant tracking system if they're screening more than 1000 resumes annually. They'll also benefit from an ATS tracking system if they have a long or convoluted hiring process or experience problems with their recruiting and administration. Applicant tracking systems can significantly reduce time-to-fill. This means that companies that find it difficult to manage the workload associated with large pools of candidates will find the streamlined process much more effective. Start using an ATS today Recruiting new talent for your business can be a major challenge, and you want to be sure you end up with the right choice. Having an online applicant tracking system can help simplify the hiring process and save recruiters and hiring managers a huge amount of stress. Applicant tracking systems can transform that way your business handles recruiting and help you in your search for the perfect new additions for your business.

Interviewing and selection techniques, concepts, and terms

What is employee selection? Employee selection, also known as candidate selection, is the process of finding a new hire best suited for the role in question. The steps in the employee selection process depend on the role you're hiring for, your recruiting budget, the seniority of the position, available resources, and your organizational needs. Rather than relying on one method as the sole criterion for selecting or rejecting candidates, your selection methods should be combined to make the most informed decision possible. For example, you can combine pre-employment tests with other employee selection methods like job interviews or trial days to accurately predict job success and cultural fit. Booking.com shares their employee selection process and methods for different roles. What are the types of candidate selection methods? Before we dive into the topic and detail the different selection methods, let's quickly look at how they're classified or grouped. External vs internal recruitment First off, you can recruit candidates from external sources, and this method is called external recruitment. Secondly, you can look inside of your company and source candidates for new or open roles from your existing employees. This is called internal recruitment. Sourcing channel classification Another way to classify the different candidate selection methods is to group them based on the sourcing or recruitment channel used. For example, you can use advertising to source new candidates; this includes direct advertising, where you place job adverts on job boards or your career site, and social advertising, where you source your candidates through job adverts shared on social media platforms. Talent pool and referral recruitment Another channel for finding new employees can be your existing talent pool or database of candidates who have previously applied to roles within your company and were suitable but were not hired. Then, you can rely on referral recruitment as another selection method. Here, as the name implies, you're asking your existing employees to refer potential candidates. Internships and apprenticeships If the roles you're hiring for are entry-level, as is often the case in high volume recruitment, then a good employee selection method is to offer internships and apprenticeships. Both options ensure that you're getting candidates with the right skills and potential, and the "trial" period gives you the perfect opportunity to develop their skills, while assessing their culture fit. Boomerang employees This method doesn't apply to all roles, but it can be a solution if, for example, you're hiring a lot of seasonal workers. Boomerang employees are basically people who have worked for your company before, and have left on good terms. You already know they have the right skills, and they know the ins and outs of the job already, so they're a good option to consider. In the next section, we'll focus on the external recruitment methods and referral recruitment, and we'll detail some of the types of assessments you can use to make sure you're selecting the top candidates for your open roles. Before you continue Subscribe and stay up-to-date with everything recruitment related by receiving a weekly content digest and email updates on new resources! Best employee selection methods for choosing top talent 1. Assess cognitive ability Cognitive ability is the number one predictor of job performance across all employment levels and industries. Cognitive ability assessments are a form of pre-employment testing used to evaluate how well candidates use a wide range of mental processes, such as working with numbers, abstract thinking, problem-solving, reading comprehension, and learning agility. When implemented and administered correctly, cognitive skills assessment is a highly effective method for predicting job success. However, one potential pitfall is the risk of adverse impact, which is the negative effect that a biased selection process has on a protected group of people. To prevent it from hindering your recruitment efforts, you should make it a point to regularly measure the adverse impact of your cognitive ability tests. For example, our platform provides recruiters with a variety of recruitment dashboards that track the most important hiring metrics. Among others, you can see if there's any bias in your recruitment process, in which stages it occurs, and whether one location is more prone to bias than others. If you'd like to see the Harver cognitive assessment in action, you can book a demo below. Cognitive Ability Testing 2. Evaluate learning agility Evaluating learning agility is another effective employee selection to build into your recruiting process. American author, Alvin Toffler, broke down learning agility well when he said: "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn." In other words, learning agility is the ability to be in a new situation, not know how to handle it, and then figure it out anyway. An agile learner can apply his or her past learnings to new scenarios that they have yet to experience. Learning agility is a crucial ability that you can measure to gain a true understanding of how applicants function and adapt in ever-evolving work environments. That said, it's challenging to develop a well-constructed, reliable assessment for gauging learning agility. Challenging, but not impossible. If you'd like to see what this assessment looks like in practice, book a demo below. Cultural Fit Assessment 3. Situational judgement test (SJT) Another great way to enhance employee selection is to assess situational judgement capabilities. Situational Judgement Tests (SJT) present candidates with various scenarios that they might experience if they're selected for the specific role they're applying for. Here's for example an SJT developed by our People Science team for a client in the BPO/Contact Center vertical. This type of pre-employment assessment asks the candidate to choose the best and the wrost way to handle a job situation. The scenarios are strategically chosen in collaboration with your recruitment or talent team, to illustrate the critical incidents that an employee might deal with once hired. Behind the scenes, these hiring tests assess how well applicants prioritize client inquiries, follow instructions, and handle situations that crop up in the workplace. They're highly predictive of job performance and culture fit and can provide candidates with a realistic job preview early on in the application process. With that said, Situational Judgement Tests can be costly and sometimes difficult to construct and implement by a recruitment team alone. This is because they typically require input from an industrial-organizational (IO) psychologist, as well as a production team and designer. While our platform does offer a series of out-of-the-box employment tests, SJTs are always tailor-made, based on a client's profile, company culture, and hiring needs. You can see below an example of the new candidate journey that we've designed for McDonald's, which includes a preview of their SJTs as well. Harver provides both out-of-the-box and custom SJTs. If you'd like to see industry-specific examples, and understand how they can help your company hire better candidates, you can book a demo below. Ready to transform your hiring process? Book a demo 4. Measure employee integrity Of course, you want to hire honest, reliable employees for your organization—but how exactly do you measure something like that? Employee integrity tests allow you to collect insights into candidates' honesty, dependability, and work ethic. Integrity and other relevant soft skills are typically assessed via a digital personality questionnaire. Of organizations that work with pre-employment testing 24% use integrity tests. Source: CriteriaCorp However, there are potential legal issues to be mindful of before jumping on the integrity testing bandwagon. Some have been challenged in court for requiring candidates to rate statements that could be seen as discriminatory. Some areas, such as Massachusetts in the U.S., have even banned employee integrity testing altogether. To avoid legal problems, it's important to be sure your test complies with applicable laws, does not have an adverse impact, and demonstrates validity. 5. Test job knowledge Does the candidate have the actual knowledge needed to do the job in question? While most of the time that knowledge can be learned on the job and other factors are more important, there are certain roles that require applicants to possess specific job knowledge and skills already. Each job family requires a different skills assessment; however, some skills like multitasking, typing, and language proficiency can be useful across various roles and industries. With that said, skills assessments are still an extra step for candidates. That's why timing is everything. Introducing a skills test too early in the recruiting process can scare away applicants. To avoid this, keep your skills assessment short, allow an adequate amount of time to complete it and wait until you have a small, shortlisted pool of candidates to move forward. 5.3 Interviewing Learning Objectives Explain the various types of interviews and interview questions. Discuss interview methods and potential mistakes in interviewing candidates. Explain the interview process. Interviewing people costs money. As a result, after candidates are selected, good use of time is critical to making sure the interview process allows for selection of the right candidate. In an unstructured interview, questions are changed to match the specific applicant; for example, questions about the candidate's background in relation to their résumé might be used. In a structured interview, there is a set of standardized questions based on the job analysis, not on individual candidates' résumés. While a structured interview might seem the best option to find out about a particular candidate, the bigger concern is that the interview revolves around the specific job for which the candidate is interviewing. In a structured interview, the expected or desired answers are determined ahead of time, which allows the interviewer to rate responses as the candidate provides answers. This allows for a fair interview process, according to the US Office of Personnel Management1. For purposes of this section, we will assume that all interviews you perform will be structured, unless otherwise noted. Types of Interviews Interview processes can be time-consuming, so it makes sense to choose the right type of interview(s) for the individual job. Some jobs, for example, may necessitate only one interview, while another may necessitate a telephone interview and at least one or two traditional interviews. Keep in mind, though, that there will likely be other methods with which to evaluate a candidate's potential, such as testing. Testing is discussed in Section 5.4.1 "Testing". Here are different types of interviews: Traditional interview. This type of interview normally takes place in the office. It consists of the interviewer and the candidate, and a series of questions are asked and answered. Telephone interview. A telephone interview is often used to narrow the list of people receiving a traditional interview. It can be used to determine salary requirements or other data that might automatically rule out giving someone a traditional interview. For example, if you receive two hundred résumés and narrow these down to twenty-five, it is still unrealistic to interview twenty-five people in person. At this point, you may decide to conduct phone interviews of those twenty-five, which could narrow the in-person interviews to a more manageable ten or so people. Panel interview. A panel interview occurs when several people are interviewing one candidate at the same time. While this type of interview can be nerve racking for the candidate, it can also be a more effective use of time. Consider some companies who require three to four people to interview candidates for a job. It would be unrealistic to ask the candidate to come in for three or four interviews, so it makes sense for them to be interviewed by everyone at once. Information interview. Informational interviews are usually used when there is no specific job opening, but the candidate is exploring possibilities in a given career field. The advantage to conducting these types of interviews is the ability to find great people ahead of a job opening. Meal interviews. Many organizations offer to take the candidate to lunch or dinner for the interview. This can allow for a more casual meeting where, as the interviewer, you might be able to gather more information about the person, such as their manners and treatment of waitstaff. This type of interview might be considered an unstructured interview, since it would tend to be more of a conversation as opposed to a session consisting of specific questions and answers. Group interview. In a group interview, two or more candidates interview at the same time. This type of interview can be an excellent source of information if you need to know how they may relate to other people in their job. Video interviews. Video interviews are the same as traditional interviews, except that video technology is used. This can be cost saving if one or more of your candidates are from out of town. Skype, for example, allows free video calls. An interview may not feel the same as a traditional interview, but the same information can be gathered about the candidate. Nondirective interview (sometimes called an unstructured interview). In a nondirective interview, the candidate essentially leads the discussion. Some very general questions that are planned ahead of time may be asked, but the candidate spends more time talking than the interviewer. The questions may be more open ended; for example, instead of asking, "Do you like working with customers?" you may ask, "What did you like best about your last job?" The advantage of this type of interview is that it can give candidates a good chance to show their abilities; however, the downside is that it may be hard to compare potential candidates, since questions are not set in advance. It relies on more of a "gut feeling" approach. It is likely you may use one or more of these types of interviews. For example, you may conduct phone interviews, then do a meal interview, and follow up with a traditional interview, depending on the type of job. Interview Questions Most interviews consist of many types of questions, but they usually lean toward situational interviews or behavior description interviews. A situational interview is one in which the candidate is given a sample situation and is asked how he or she might deal with the situation. In a behavior description interview, the candidate is asked questions about what he or she actually did in a variety of given situations. The assumption in this type of interview is that someone's past experience or actions are an indicator of future behavior. These types of questions, as opposed to the old "tell me about yourself" questions, tend to assist the interviewer in knowing how a person would handle or has handled situations. These interview styles also use a structured method and provide a better basis for decision making. Examples of situational interview questions might include the following: If you saw someone stealing from the company, what would you do? One of your employees is performing poorly, but you know he has some personal home issues he is dealing with. How would you handle complaints from his colleagues about lack of performance? A coworker has told you she called in sick three days last week because she actually decided to take a vacation. What would you do? You are rolling out a new sales plan on Tuesday, which is really important to ensure success in your organization. When you present it, the team is lukewarm on the plan. What would you do? You disagree with your supervisor on her handling of a situation. What would you do? Examples of behavior description interview questions might include the following: Tell me about a time you had to make a hard decision. How did you handle this process? Give an example of how you handled an angry customer. Do you show leadership in your current or past job? What would be an example of a situation in which you did this? What accomplishments have given you the most pride and why? What plans have you made to achieve your career goals? Top 36 Interview Questions and Answers (click to see video) Examples of how to answer those difficult interview questions. As you already know, there are many types of interview questions that would be considered illegal. Here are some examples: National origin. You cannot ask seemingly innocent questions such as "That's a beautiful name, where is your family from?" This could indicate national origin, which could result in bias. You also cannot ask questions about citizenship, except by asking if a candidate is legally allowed to work in the United States. Questions about the first language of the candidate shouldn't be asked, either. However, asking "Do you have any language abilities that would be helpful in this job?" or "Are you authorized to work in the United States?" would be acceptable. Age. You cannot ask someone how old they are, and it is best to avoid questions that might indicate age, such as "When did you graduate from high school?" However, asking "Are you over 18?" is acceptable. Marital status. You can't ask direct questions about marital status or ages of children. An alternative may be to ask, "Do you have any restrictions on your ability to travel, since this job requires 50 percent travel?" Religion. It's illegal to ask candidates about their religious affiliation or to ask questions that may indicate a religion-affiliated school or university. Disabilities. You may not directly ask if the person has disabilities or recent illnesses. You can ask if the candidate is able to perform the functions of the job with or without reasonable accommodations. Criminal record. While it is fine to perform a criminal record check, asking a candidate if they have ever been arrested is not appropriate; however, questions about convictions and guilty pleadings are acceptable. Personal questions. Avoid asking personal questions, such as questions about social organizations or clubs, unless they relate to the job. Besides these questions, any specific questions about weight, height, gender, and arrest record (as opposed to allowable questions about criminal convictions) should be avoided. HR professionals and managers should be aware of their own body language in an interview. Some habits, such as nodding, can make the candidate think they are on the right track when answering a question. Also, be aware of a halo effect or reverse halo effect. This occurs when an interviewer becomes biased because of one positive or negative trait a candidate possesses. Interview bias can occur in almost any interview situation. Interview bias is when an interviewer makes assumptions about the candidate that may not be accurate (Lipschultz, 2010). These assumptions can be detrimental to an interview process. Contrast bias is a type of bias that occurs when comparing one candidate to others. It can result in one person looking particularly strong in an area, when in fact they look strong compared to the other candidates. A gut feeling bias is when an interviewer relies on an intuitive feeling about a candidate. Generalization bias can occur when an interviewer assumes that how someone behaves in an interview is how they always behave. For example, if a candidate is very nervous and stutters while talking, an assumption may be made that he or she always stutters. Another important bias called cultural noise bias occurs when a candidate thinks he or she knows what the interviewer wants to hear and answers the questions based on that assumption. Nonverbal behavior bias occurs when an interviewer likes an answer and smiles and nods, sending the wrong signal to the candidate. A similar to me bias (which could be considered discriminatory) results when an interviewer has a preference for a candidate because he or she views that person as having similar attributes as themselves. Finally, recency bias occurs when the interviewer remembers candidates interviewed most recently more so than the other candidates.

Transition techniques for corporate restructuring, mergers and acquisitions, due diligence process, offshoring, and divestitures

estructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations. Businesses attempting to downsize may also outsource some operations to save money. In other cases, restructuring may involve the reassignment or alteration of duties within the organization to improve performance or incorporate new technologies. In today's uncertain and fluctuating economy, company restructures happening across many industries put additional challenges in front of human resource and business leaders, as well as the employees who are impacted. In 2018, large companies like Pfizer, HP (which included 5,000 jobs cut), Lowes, Kellogg, and Starbucks, among many others, underwent corporate restructuring. Related content: 8 Tips for Handling Layoffs Most of these restructuring plans included layoffs and, in cases like Starbucks, are the result of companies becoming less focused on agility than growth over the past several years. Regardless of the reason for restructuring, it's imperative that your company consider your workforce and the potential impact on your employment brand during the restructuring process. Restructuring usually comes with a displacement of employees through layoffs and early retirements. I've written about How to Manage Your Digital Employment Brand After a Layoff, and many of these principles apply to restructuring, particularly when it comes to communication with your workforce. Keep in mind the impact on your employment brand, which will need more attention than ever during a restructuring phase. The benefits of organizational change Restructuring has its disadvantages, many that can be addressed through communication (covered in the next section). But it also has its advantages. If an organization downsizes during restructuring, its operational costs may decrease. For example, payroll expenses will be lower if the business dismisses some of its employees. Likewise, outsourced operations are usually less expensive than in-house labor. Additionally, when a company eliminates layers of management during its restructuring, communication and decision making often improve. Restructuring can be an opportunity to introduce new technologies, for example, so a company can increase its operational efficiency. For example, records become more accurate and easier to access if a company implements software to manage them. When employing a restructuring communication plan, it's better to focus on the fiscal health of your company and not the outsourcing. Transparency, yes, but about what leads up to a company's need to restructure, not celebrating the benefits of doing so. Related content: How to Build Resilience in Organizations Undergoing Change Change management: Why communication matters If your company isn't already having quarterly all-staff meetings about its fiscal health, now is the time to start, whether you see layoffs coming down the road or not. Your staff members are the core of your company. Keeping secrets leads to rumors, which lead to people jumping ship. A simple overview of departmental revenue, profit and loss, is sufficient. Be sure to allow time for your employees to ask questions. And if your CEO is presenting, make sure he or she is briefed on how to answer them. If an employee asks "are we restructuring or going to lay off staff?" (and you know that you might have to in the future), be honest. Gentle, but honest. You'd be surprised how many staff members appreciate honesty and how quickly it can starve the rumors. Sure, you might have a few employees start looking elsewhere, but they're likely to be employees who would be looking, anyway or who realize their roles are redundant within the new company structure. If an employee asks "are we restructuring or going to lay off staff?" (and you know that you might have to in the future), be honest. Gentle, but honest. @jmillermerrell #SmartTalkHR @RiseSmart https://bit.ly/2H1orKM There's a reason why changes like corporate restructuring can put additional stress on a company's workforce, and it's tied into behavioral psychology and neuroscience. Dr. Britt Andreatta is the CEO of 7th Mind Inc, a TEDx Speaker and a best-selling author who focuses her research, training and consulting on the subject of neuroscience in the workplace. Dr. Andreatta's work focuses on workplace neuroscience, specifically in the areas of leadership, learning, change and culture. When it comes to organizational change, Dr. Andreatta says that it is important for organizations and leaders to understand where each employee is on the change journey. She says that leaders who are involved in creating and building new organizational strategies have had time to adjust to the new change while employees often have not been given the time to consider, learn about and adjust to those same changes. This is one of the many situations where workplace neuroscience and leadership can help. Dr. Andreatta explains that there are three categories of people who take part in the workplace change journey. They are 1) expedition designers, 2) guides who are most often managers, and 3) travelers. She says that people throughout the organization will fall into these different categories depending on the change processes taking place and where they work within the organization. In cases like layoffs and restructuring, you'll want to identify your expedition designers and guides, and make sure your HR leadership team includes a mix of both. The goal isn't necessarily to soften the blow for your employees, but to help them understand what lies behind your company's business decisions, and emphasizing that the decisions are not made personally, but emphasizing that your company recognizes the personal impact these individuals have made. These leaders are your company's support structure. Create collaborative networks and support systems for the leaders placed into new roles and make sure they are not isolated to figure things out on their own. Related content: If Change is the Only Constant, Then Let's Get Better at It Your HR leaders must be change agents, and your company should ensure that your leadership team is communicating often, sharing what it can about stabilization and how these business decisions are strategically supporting the future health of the company. Candor and transparency are important in these communications. Your HR leaders must be change agents, and your company should ensure that your leadership team is communicating often, sharing what it can about stabilization @jmillermerrell #SmartTalkHR @RiseSmart https://bit.ly/2H1orKM HR teams as company change agents Prepare to be proactive rather than reactive. Though restructuring is potentially tumultuous, the moves you make beyond staff cuts will determine how quickly your organization recovers and is able to move forward. Be aware of some of the--often inconspicuous--challenges that arise. If all leadership team members are prepared, transparent, and comfortable speaking about the process, you'll avoid some of the consequences of poor employee communication and ultimately retain a positive employer brand. Building transparency and trust that will allow you to keep your candidate funnel full and continue to grow other areas of your business and meet talent demand. In order for an organization to remain competitive in this fast-moving economy and global climate, leaders have to make decisions that can involve organizational changes, layoffs, and restructures. However, thorough research, communication, and preparation through the use technologies and resources like RiseSmart can help employees navigate the change and provide the company with the tools, plans, and information to help ease the transition. Managing Human Resources in Mergers and Acquisitions July 19, 2016 LIKESAVEPRINTEMAIL REUSE PERMISSIONS Scope—This article focuses on the management of human resources in the process of mergers and acquisitions (M&As). It describes the typical phases of an M&A and HR's role during different parts of the M&A process. The article also discusses the business case for HR's involvement throughout the M&A process and highlights communications, technology, outsourcing and global issues related to M&As. Overview Mergers and acquisitions (M&As) are tools businesses use to achieve organizational objectives—tools that have profound impacts on the employees of the organizations at every level as two organizations attempt to integrate into one. A merger is generally defined as the joining of two or more different organizations under one common owner and management structure. An acquisition is the process of one corporate entity acquiring control of another corporate entity by purchase, stock swap or some other method. An estimated 70 percent to 90 percent of all M&As fail to achieve their anticipated strategic and financial objectives.1 This rate of failure is often attributed to various HR-related factors, such as incompatible cultures, management styles, poor motivation, loss of key talent, lack of communication, diminished trust and uncertainty of long-term goals. This article discusses the importance of managing "people issues" in the context of M&As, with an emphasis on the role of HR professionals, who must be adept at recognizing potential problems, identifying solutions and persuading management to adopt them. The article offers an overview of the five phases of the merger or acquisition transaction and discusses the business case for M&As. It addresses the key issues that must be managed in an effort to assist HR practitioners in preparing for the challenges and practical realities of M&A transactions, including: Creation of new policies to guide the new organization. Retention of key employees. Employee selection and downsizing. Development of compensation strategies. Creation of a comprehensive employee benefits program. The article closes with the discussion of the importance of a well-planned communication strategy and briefly addresses cultural fit, technology and outsourcing decisions, and global issues. HR's Role in M&A Transactions The consideration of a merger or acquisition usually comes packed with mixed feelings, including excitement, fear, uncertainty, enthusiasm and resistance. These emotional reactions can occur at every level of the organization. How an organization deals with its employees before, during and after the transaction can have a determinative impact on the success of the transaction. See: Mergers & Acquisitions: An HR Guide for Success Company Leaders Tell HR: Know the Business and Be Relevant Be a Master of Mergers and Acquisitions Both mergers and acquisitions present significant challenges to HR professionals. The M&A process requires management of both organizations to consider all implications of a proposed merger or acquisition before agreeing to one—which necessarily involves consideration of the "people issues" created by a proposed merger or acquisition. HR professionals are often involved in the process by advising management on human resource matters, including using surveys and other metrics to gather relevant data, identifying potential conflicts or HR challenges between the two companies, integrating HR practices and company cultures after an M&A, and managing talent decisions such as layoffs, to name a few. HR professionals face a number of challenges during M&As, including: Attempting to maintain an internal status quo, or to effect change—either to facilitate or thwart (in the case of a hostile takeover) a possible merger or acquisition, as instructed by upper management. Attempting to provide guidance to upper management from a "people" perspective as to whether organizational goals will be better fulfilled in the form of a merger versus an acquisition, or by making internal changes. Assuming that a merger or acquisition has been approved, discerning all aspects of the two separate organizations and the one combined organization that will be affected. Communicating with employees at every step in the M&A process with both an appropriate level of disclosure and an appropriate level of confidentiality. Devising ways to meld the two organizations most effectively, efficiently and humanely for the various stakeholders. Dealing with the reality that M&As usually result in layoffs of superfluous employees under the combined organization. This reality entails coordinating separation and severance pay issues between the combining organizations. Proactively avoiding legal issues for violation of federal and state anti-discrimination laws and the Worker Adjustment and Retraining Notification Act (WARN). Participating in the defense of lawsuits that may be brought as a result of a merger or acquisition. Aligning the HR function to achieve the organization's strategic objectives. See Aligning Workforce Strategies With Business Objectives. Addressing the ethical dilemmas involved, in which an HR professional may be required to eliminate his or her own position, the position of a current co-worker, or the position of an HR counterpart in the combining organization. Anatomy of an M&A Transaction Mergers and acquisitions tend to go through similar phases. A brief summary of those distinct parts of most transactions follows to familiarize HR professionals with the M&A process. Phase 1: Identifying buyers Phase 1 involves identifying potential candidates that would be interested in merging with, buying or selling to the organization with the goal of bringing significant advantages to both parties. It is important to sign a nondisclosure agreement (NDA) before sharing much information between companies. NDAs are not fail-safe, but they offer some legal protection and highlight the need for secrecy. An organization's management must also carefully decide, even with a signed NDA, how much information to disclose and at what stage of the process. An interested buyer usually wants to know more than the organization wants to share, and its representatives have to use discretion at every stage to determine what level of disclosure will intensify the buyer's interest without harming the business should the deal fall through. An HR professional may be involved in the process of communicating the need for an NDA, collecting signatures and maintaining the records. Phase 2: Securing third-party services Phase 2 involves the legal, accounting, regulatory and technical aspects of completing the transaction. It is during this phase that third-party professional services are secured (e.g., lawyers, accountants, investment bankers and M&A advisors). These individuals or groups are critical to the success of the transaction and will be involved in the development of the structure and content of the legal agreement. An HR professional might be involved in interviewing the third-party professional and negotiating an independent contractor agreement. Phase 3: Preparing for the transaction Parties make sure their teams are briefed, ready and on the same page, and sign a letter of intent before they begin the due diligence process. It is important for parties to ensure that their legal documents (e.g., option plans, board of director notes, NDAs, partnership agreements, benefits plans) are organized and in good shape. Also crucial is for parties to ensure that they have completed the proper government filings, that they have adequate product and marketing documentation, and that their financial records are sound and have been audited by a legitimate third party. HR professionals are likely to be heavily involved in the collection and organization of such records. The parties sign a letter of intent if they tentatively can agree on the priority issues involved in the transaction. A letter of intent is a document that seeks to provide some initial points of understanding and that binds the parties to keep the information discussed confidential. This document is signed prior to the start of the due diligence process and prior to formal board of directors' approval of the deal. During the due diligence process, it is critical to read documents carefully to eliminate any surprises that could jeopardize the deal. Parties should decide up front how much information they will share during due diligence; they should expect to have to share a significant amount of detail. Parties must have the required documentation organized and prepare multiple copies so they will not be slowed down by copy requests. In addition, parties should be aware that due diligence almost always takes longer than expected. Phase 4: Negotiations, valuation and final agreement Regarding negotiations themselves, many tactics are employed, and the right ones often depend on the types of organizations involved. Different industry sectors use different valuation metrics (e.g., multiples of revenue, discounted cash flow or EBITDA, which is "earnings before interest, taxes, depreciation and amortization"). The parties' financial advisors, both internal and external, generally control this aspect of the transaction. Assuming the due diligence process has not uncovered any material issues that cause a reconsideration of the transaction, and assuming the price seems right, both parties draft, negotiate and approve the legal agreement. Regulatory and filing issues must be considered at this time. Despite the prior approval of the parties and their respective boards of directors, organizations must often take additional steps (e.g. filings with the relevant secretary of state, taxing authorities and other government agencies with regulatory authority over either company, such as the federal Securities and Exchange Commission). Phase 5: Implementation In this phase, the two organizations are combined into one. New workgroups are established, and redundant employees are laid off. The corporate culture for the combined organization is established and communicated to all employees. HR professionals may be involved in formulating a new mission statement, vision statement and possibly a values statement. Organizational policies and procedures will be revised and coordinated with significant input from HR professionals. Business Case As shown above, the business case for involvement of HR professionals at every step in the M&A process is overwhelming. Studies consistently show that most mergers and acquisitions fail, mainly because of people and culture issues. In the period leading up to and immediately following a significant transaction, a tendency exists for employees to begin considering their own personal situation. Questions usually contemplated include "Where am I going?"; "What do I want out of both my personal and business life?"; and "Will I like the new company and its management group?" The longer the period of uncertainty lasts, the more attractive alternative employment becomes. To make things more difficult, the best and brightest managers are the ones immediately targeted by recruiters attempting to lure them to other organizations. The loss of key employees can seriously erode the potential value of a transaction for the acquiring firm. Perhaps equally damaging, and just as costly, are those people who stay on the payroll but who emotionally "check out" and do not perform at their previous levels of productivity. If the process is not managed well, a company may end up with the employees who simply had the fewest alternatives. HR's Involvement Before the Transaction HR professionals typically play pivotal roles in an acquisition's core due diligence activity. During due diligence, information about talent and culture—along with typical assessments of employee benefits plans and liabilities, compensation programs, employment contracts and policies, legal exposure, and more—can provide insights into the value of a property and its workforce and can decrease the likelihood of unhappy and expensive surprises once the deal is complete. A thorough review of the acquired organization's legal position generally takes place during the due diligence phase of the transactions. This is a time when all people-related policies, plans, practices and programs should be scrutinized to ensure compliance with applicable employment laws and regulations. See: Considering an Acquisition? Begin Total Rewards Planning Now What to Look for in the Data Room Acquisition Checklist Discovery Checklist In the HR arena, one area that has significant potential for creating issues is that of retirement benefits. The questions concerning defined benefit plans, defined contribution plans, vesting, valuation of liabilities and overfunding or underfunding of plans are complex issues that can create real challenges for members of the HR team. In addition to a review of retirement-related issues, HR should also conduct a full analysis of the target company's health care benefits and costs, as well as its worker's compensation liabilities. See: Handling Benefits in an M&A or IPO Deal Assessing Employee Benefits Prior to Mergers, Acquisitions & Divestitures Benefits Transition During a Merger or Acquisition Companies can inadvertently assume significant liability if they do not conduct careful due diligence before finalizing the transaction. The target company can have pending charges or litigation from the Equal Employment Opportunity Commission or face unfair labor practice claims from the National Labor Relations Board. Each of these potential legal problems needs to be addressed specifically in the acquisition agreement, and the purchasing company or surviving company may want to secure an indemnification in the agreement as well. Such an indemnification provision keeps a company from assuming unreasonable risks, especially if litigation currently is pending. Because the two entities will be combining into one, to be meaningful, the indemnification provisions are likely to extend to key officers, directors and shareholders—which again raises "people issues" that may require the involvement of HR professionals. While one or two cases of discrimination or sexual harassment can normally be resolved fairly easily, the HR team needs to be most concerned with examples of systemic problems created by a lack of appropriate policies or a failure to enforce those policies. Legal issues that typically cause the most problems include those related to wage/hour issues, leave issues (including the Family and Medical Leave Act, the Uniformed Services Employment and Reemployment Rights Act, and workers' compensation), integrating immigration-compliance procedures and affirmative action plans. Key Areas of HR Involvement After the Transaction The outdated view of HR as a purely administrative function rather than as a strategic one often results in HR professionals being excluded from many aspects of the M&A process in which they could add significant value to the process. Having the necessary skill sets to effectively manage the integration (e.g., knowledge in employee relations, communications, change management and legal requirements) should gain the confidence of senior management in HR. Competency in these areas also should enable HR professionals to handle the complicated process of managing human resources during mergers and acquisitions. See Once the Deal is Done: Making Mergers Work. Creation of new policies to guide the new organization To shape the culture of the newly merged organization, the employer must develop and communicate to employees a cogent people-related strategy. Such a strategy should include the development of key policies, rules and guidelines to govern employee behavior and related workplace expectations (e.g., attendance, time off, harassment, drug testing, privacy). Retention of key employees To retain the key talent that will help make the new organization successful, management should communicate its intentions to the "star performers" as early in the process as is legally possible. This means requesting access to conduct confidential interviews with key employees in advance of the actual closing date. Most importantly, management should be very careful not to undercommit to these key people, or they will consider other employment options. Star performers know who they are and understand their personal and professional marketability. See: Noncompete Agreements: How to Protect Your Company During an M&A Begin Retention Strategy Early During Mergers, Acquisitions Retention Bonus Agreement Employee selection and downsizing Early placement of management is a critical factor in beginning to stabilize the new organization. Any delays in placing key managers complicate the transition by increasing uncertainty, diverting attention and fostering internal competition. A major challenge for the acquiring company is in deciding who to retain, who to redeploy and who to terminate, as well as effectively managing those processes. Relocating key personnel or even entire departments may be necessary. See Employment Downsizing and Its Alternatives. Ideally, the HR and management teams will have been able to assess the skills, capabilities, potential and motivations of key employees involved in the merger or acquisition. Typical methods include interviewing and testing techniques and the use of outside consultants. Once these tasks are completed, the HR team should take immediate steps to "re-recruit" and place these employees into key positions of the new entity. See Should employees complete new-hire paperwork after a merger or acquisition? and How do I handle forms I-9 during a merger or acquisition? Most M&A deals count on both the organizational and financial efficiencies that will result from a reduction in the number of employees needed to run the new organization. This outcome means that HR will spend a large amount of time assessing employee knowledge, skills and abilities (KSAs) to decide who will stay and who will go. The strategy may include terminations, early retirements and a longer-term plan to simply not fill certain positions as they are vacated. The ways in which these decisions are made will—in the long run—be as important as the actual decisions themselves. Moreover, the manner in which talent management decisions are made will communicate a great deal about what the organization values. Development of compensation strategies Depending on the circumstances of the deal—and the compensation policies of the combining companies—HR will likely be called on to splice disparate payment plans into a program that fits the new organization. Alternatively, HR may have to discard the original plans and then create a program from scratch that meets the goals and direction of the newly merged entities. Either way, old and new employees will be concerned about what is happening with their pay and will want full and early disclosure about the changes being considered. In addition, members of the senior management team will be anxious to see what types of special arrangements (e.g., stock options, special retirement provisions, severance agreements) will be offered to them given the high-profile nature of the new positions. The development of an executive compensation strategy will require an additional set of complex decision-making, as well as board approvals. See Managing Pay Challenges in an M&A or IPO Deal and In M&As, Financial Awards Target Key Talent. Creation of a comprehensive employee benefits program Just as with compensation programs, HR will likely be required to link disparate employee benefits into a program that fits the newly formed organization, or simply discard the existing plans and start over. Either way, the creation of a comprehensive employee benefits program is a complex undertaking, and one that takes time. Throughout that process, however, employees are sure to be concerned about possible changes to their employee benefits coverage and will want to be informed about "the new package" as soon as that information is available. See How are the FMLA rights of employees handled when the employer undergoes a merger or an acquisition? Communications Having a well-planned communication strategy in place is critical in the M&A process. Effective communication involves providing information on a) the shared vision for the new company, b) the nature and progress of the integration and the anticipated benefits, and c) the outcomes and rough timelines for future decisions. Communicating clear, consistent and up-to-date information not only will give employees a sense of control by keeping them informed, but it also can increase the coping abilities of employees and minimize the impact of the integration on performance. The following steps highlight the components of a successful communication program: Establish multiple routes of communication (e.g., one-on-one meetings, group sessions, newsletters, intranet updates). Focus on the themes of change and progress by highlighting projects that are going well and action items that are being delivered on time. Repeat the common themes of the M&A to increase employee understanding of the rationale behind the transaction. Provide opportunities for employee involvement and feedback. Ensure that employees understand there will be problems, but give a commitment that the problems will be identified and addressed as early as possible. Critical to successful integration is the manner in which the restructuring is implemented. The highest priority is that the acquiring company needs to be straightforward about what is happening and what is planned. Even when the news is bad, the one thing employees of newly acquired companies appreciate most is the truth. That includes being able to say "we don't know" about certain areas or "we have not yet decided" about others. Being honest also includes sharing information about when and by what process a decision is expected to be reached. See Seven Trust Busters in Mergers and Acquisitions. The truth also means acknowledging some of the stress and other emotions that are undeniably present. Organizations should never tell employees that everything will be "business as usual." The reality is, change is occurring. Likewise, employers should resist the urge to tell employees that they have "a wonderful future" to look forward to, when they are still confused and grieving over the past. Employers should not attempt to sugar-coat matters with false platitudes such as calling the deal a "merger of equals" when one company is clearly the majority stakeholder and therefore has the ability to cast the deciding vote in a split decision. Once decisions are made about functions and people, the organization must treat those employees who will be negatively affected by the transaction with dignity, respect and support. Not only is this approach the humane thing to do, but it also is a powerful way of showing those who remain what kind of company they are now working for and of helping them begin to develop some positive feelings toward the new organization. The Importance of Cultural Fit Cultural compatibility issues often arise when bringing together two or more cultures in the M&A process. Because culture encompasses the beliefs and assumptions shared by members of an organization and influences all areas of group life, the M&A integration always has a degree of misalignment, regardless of the perceived similarity between the two firms. Since cultural clashes can affect important M&A outcomes, focusing on cultural alignment has been identified as the top challenge in M&A transactions. See Successful Mergers Integrate Cultures and Culture Clash. Technology and Outsourcing Decisions Managing HR technology and deciding which systems to keep or replace, as well as which functions to outsource, can be a highly complex undertaking. Making such decisions requires that employers thoroughly assess the HR systems and people capabilities of both organizations. Technology integration must occur thoroughly and quickly enough that normal operations never appear disturbed to users. See Merging HR Systems—A Mergers and Acquisitions Checklist. Global Issues Much of the pressure to compete and perform has intensified from globalization and the emergence of China and India as two of the fastest-growing economies in the world. During the 1990s and through about 2005, M&A activity was controlled largely by U.S. and European-based corporations. The climate has changed as Asian-based businesses look to expand their markets and become truly global players. The Middle East, even with its volatile political and religious climate, also is becoming a hotbed for M&A activity. Countries such as the United Arab Emirates and Saudi Arabia have plenty of cash available from their vast oil wealth and are looking to diversify their business holdings. The cultural and communication issues involved in a global transaction can create even more complexity for HR practitioners. See Cross-Border Mergers Create Mountain of HR Compliance Details.

New hire employee orientation processes and procedures

Purpose The welcoming of new employees is a collaborative effort that includes human resources (HR), the hiring department and other teams throughout [Company Name]. Preparing for new hires and providing appropriate guidance and information during the first several days of employment can ensure success. This short-term orientation process is not a replacement for onboarding of employees to their specific role and department, which is a more detailed and longer process. First Day HR will meet with the new hire at the start of his or her first day of work to complete new-hire paperwork, prepare key and ID cards, and review benefits information. Hiring managers should be well-prepared for an employee's first day at work and should welcome new hires with the following: Workstations set up with appropriate equipment and supplies. Introductions to co-workers and a tour of the facilities. A buddy assigned to coordinate onboarding activities. Lunch with the hiring manager. An overview of the department's mission, values and key policies. A new-hire checklist is available to facilitate this orientation process. Orientation Meeting New hires will be scheduled to attend an orientation meeting within the first week of employment. The meeting will be conducted in one full day and will include the following: Human Resources Introduction to the company, its mission, functions and culture. Review of company organizational chart. Employee handbook review. Benefits plan information, discussion and preliminary enrollment. Safety Safety and health policies reviews—safety, fire, emergency evacuation, job-related safety issues. Key Administrative Policies Anti-harassment policy review and discussion. Policy reviews—pay periods, travel, personal vehicle use, training requests. Administrative procedures—security, computer systems and logins, telephone systems, supplies and equipment. Department Overviews An overview provided by a management representative from each [Company Name] department about the purpose of and functions within his or her department. A discussion led by a management representative from each [Company Name] department focusing on frequently asked questions as well as individual questions from participating new hires. Time spent completing new-hire paperwork and time spent in the orientation meeting are considered hours worked. Each employee's time card should reflect the time engaged in the orientation program as paid hours and should be coded appropriately.

Metrics to assess past and future staffing effectiveness (for example: cost per hire, selection ratios, adverse impact)

Recruiting metrics are an essential part of data-driven hiring and recruitment. However, if you would keep track of every recruiting metric you could find on the web, you'd have no time left to do actual recruiting! In this article, we'll list the 19 most important ones for you. But first, let's answer the question: What are recruiting metrics? What are recruiting metrics? Recruiting metrics are measurements used to track hiring success and optimize the process of hiring candidates for an organization. When used correctly, these metrics help to evaluate the recruiting process and whether the company is hiring the right people. Making the right recruiting decisions is important. This image (from Greenhouse) shows the employee's lifetime value as the sum of all the HR decisions made about that employee. Using this image we can see that hiring someone who is more suited for the job has the potential to create an enormous return on investment (ROI). This is why recruiting the right people is so important. Whether you're starting off by measuring recruiting data or fine-tuning your recruiting metrics, this list will give you a great overview. Now that we've set the stage, let's look at the 17 most relevant recruiting metrics. 1. Time to fill This refers to the time it takes to find and hire a new candidate, often measured by the number of days between publishing a job opening and hiring the candidate. Time to fill is influenced by supply and demand ratios for specific jobs as well as the speed at which the recruitment department operates. It's a great metric for business planning and offers a realistic view for the manager to assess the time it will take to attract a replacement for a departing employee. In the learning bite below, we explain the Time to Fill metric in even more detail! 2. Time to hire Time to hire represents the number of days between the moment a candidate is approached and the moment the candidate accepts the job. In other words, it measures the time it takes for someone to move through the hiring process once they've applied. Time to hire thus provides a solid indication of how the recruitment team is performing. This metric is also called 'Time to Accept'. Related online course ahead! Continue reading below ↓ Talent Acquisition Certificate Program Advance your career by becoming a strategic & data-driven Talent Acquisition Specialist. Online, Self-Paced & Globally Accredited. Download Syllabus A shorter time to hire often enables you to hire better candidates, preventing the best candidates from being snatched up by a company that does have a short time to hire. It also impacts your candidate experience as nobody likes a recruiting process that takes a long time. This metric is heavily influenced by your recruitment funnel. If you are hiring for jobs that have a relatively straight-forward recruitment process of one interview, the time to hire will be shorter than when you have a phone intake, assessment day, and three rounds of interviews. For that reason, you should be a little bit careful when interpreting the time to hire benchmark we included below! Time to hire by industry benchmark. Source: Workable. 3. Source of hire Tracking the sources which attract new hires to your organization is one of the most popular recruiting metrics. This metric also helps to keep track of the effectiveness of different recruiting channels. A few examples are job boards, the company's career page, social media, and sourcing agencies. 4. First-year attrition First-year attrition is a key recruiting metric and also indicates hiring success. Candidates who leave in their first year of work fail to become fully productive and usually cost a lot of money. First-year attrition can be managed and unmanaged. Managed attrition means that the contract is terminated by the employer. Unmanaged attrition means that they leave on their own accord. The former is often an indicator of bad first-year performance or bad fit with the team. The second is often an indicator of unrealistic expectations which cause the candidate to quit. This could be due to a mismatch between the job description and the actual job, or the job and/or company has been oversold by the recruiter. How T-Shaped are You? The most successful HR professionals in today's digital business environment have a T-shaped competency profile. Take the free assessment now! Start assessment This metric can also be turned around as 'candidate retention rate'. 5. Quality of hire Quality of hire, often measured by someone's performance rating, gives an indicator of first-year performance of a candidate. Candidates who receive high-performance ratings are indicative of hiring success while the opposite holds true for candidates with low-performance ratings. Low first-year performance ratings are indicative of bad hires. A single bad hire can cost a company tens of thousands of dollars in both direct and indirect costs. To read more about how to assess these costs, check out our article on HR costing. When combined with the channel through which the candidate was sourced, you can measure sourcing channel quality (see recruiting metric no. 17). Quality of hire is the input for the Success Ratio. The success ratio divides the number of hires who perform well by the total number of candidates hired. A high success ratio means that most of the hired candidates perform well, however a low ratio means that you need to fine-tune your selection process! The success ratio is used as input for recruitment utility analysis. This analysis enables you to calculate an ROI for different selection instruments. 6. Hiring Manager satisfaction In line with quality of hire, hiring manager satisfaction is another recruiting metric that is indicative of a successful recruiting process. When the hiring manager is satisfied with the new candidates in their team, the candidate is likely to perform well and fit well in the team. In other words, the candidate is more likely to be a successful hire! 7. Candidate job satisfaction Candidate job satisfaction is an excellent way to track whether the expectations set during the recruiting procedure match reality. A low candidate job satisfaction highlights mismanagement of expectations or incomplete job descriptions. A low score can be better managed by providing a realistic job preview. This helps to present both the positive and negative aspects of the job to potential candidates, thus creating a more realistic view. 8. Applicants per opening Applicants per job opening or applicants per hire gauges the job's popularity. A large number of applicants could indicate a high demand for jobs in that particular area or a job description that's too broad. The number of applicants per opening is not necessarily an indicator of the number of suitable candidates. By narrowing the job description and including a number of 'hard' criteria, the number of applicants can be reduced without reducing the number of suitable candidates. 9. Selection ratio The selection ratio refers to the number of hired candidates compared to the total number of candidates. This ratio is also called the Submittals to Hire Ratio. The selection ratio is very similar to the number of applicants per opening. When there's a high number of candidates, the ratio approaches 0. The selection ratio provides information such as the value of different assessment and recruitment tools and can be used to estimate the utility of a given selection and recruitment system. To calculate the utility of these tools, take a look at this article by Sturman (2003) on the ROI of selection tools. 10. Cost per hire We could write a full article on cost per hire. The cost per hire recruitment metric is the total cost invested in hiring divided by the number of hires. Cost per hire consists of multiple cost structures which can be divided by internal and external cost. By quantifying all of them you can calculate the total recruitment cost. 11. Candidate experience When we talk about recruiting metrics, candidate experience shouldn't be overlooked. Candidate experience is the way that job seekers perceive an employer's recruitment and onboarding process, and is often measured using a candidate experience survey. This survey uses Net Promotor Score and helps to identify key components of the experience that can be improved. 12. Offer acceptance rate The offer acceptance rate compares the number of candidates who successfully accepted a job offer with the number of candidates who received an offer. A low rate is indicative of potential compensation problems. When these problems occur often for certain functions, the pay can be discussed earlier in the recruiting process in an effort to minimize the impact of a refused job offer. An example is by listing pay in the job opening or by asking for the candidate's salary expectations. 13. % of open positions The % of open positions compared to the total number of positions can be applied to specific departments or to the entire organization even. A high percentage can be indicative of high demand (for example due to fast growth) or low labor market supply. 14. Application completion rate Application completion rate is especially interesting for organizations with elaborate online recruiting systems. Many large corporate firms require candidates to manually input their entire CV in their systems before they can apply for a job. Drop-out in this process is indicative of problems in this procedure, e.g. web browser incompatibility with the application system, or a non-user-friendly interface.This recruiting metric fits well with our number 15. 15. Recruitment funnel effectiveness Recruitment is a funnel which begins with sourcing and ends with a signed contract. By measuring the effectiveness of all the different steps in the funnel, you can specify a yield ratio per step. This makes for some excellent recruiting metrics. For example, 15:1 (750 applicants apply, 50 CVs are screened) 5:1 (50 screened CVs lead to 10 candidates submitted to the hiring manager) 2:1 (10 candidate submissions lead to 5 hiring manager acceptances) 5:2 (5 first interviews lead to 2 final interviews) 2:1 (2 final interviews lead to 1 offer) 1:1 (1 offer to 1 hire) The recruiting funnel has changed a lot over the last few years due to advances in HR tech. The first few steps are often atomized: software helps to automatically screen CVs and select the best fits. Some companies opt to go for video interviews to change submittals and even first interviews.In other words: expect this funnel to change over time. 16. Sourcing channel effectiveness Sourcing channel effectiveness helps to measure the conversions per channel. By comparing the percentage of applications with the percentage of impressions of the positions, you can quickly judge the effectiveness of different channels. A simple way to do this is by using Google Analytics to track where the people who viewed the job opening on your website actually came from.By setting 'goals', like the successful completion of an application form, this conversion rate can be made much more accurate. Maybe the people coming from LinkedIn and Twitter don't apply, but the people coming in from Facebook do! 17. Sourcing channel cost You can also calculate the cost efficiency of your different sourcing channels by including ad spend, the amount of money spent on advertisement, on those platforms. By dividing the ad spend with the number of visitors who successfully applied through the job opening you measure the sourcing channel cost per hire. 18. Cost of getting to Optimum Productivity Level (OPL) The cost of getting to Optimum Productivity Level (OPL) is the total cost involved in getting someone up to speed. This includes things like onboarding cost, training cost, the cost of supervisors and co-workers involved in on-the-job training, and more. Usually, a percentage of the employee's salary is also included in this calculation, until they hit 100% OPL. On top of this metric, there is also the "logistical" cost of replacing an employee. These are also called the cost per hire. Research by Oxford Economics (2014) lists OPL cost in retail at £ 16,240 (approx. $ 20,200), in media £ 21,633 ($ 27,000), and in legal £ 35,307 ($ 44,000). 19. Time to productivity Time to productivity, or time to Optimum Productivity Level, measures how long it takes to get people up to speed and productive. It is the time between the first day of hiring and the point where the employee fully contributes to the organization.

Planning concepts and terms (for example: succession planning, forecasting)

Overview Succession planning is a focused process for keeping talent in the pipeline. It is generally a 12- to 36-month process of preparation, not pre-selection. All organizations can benefit from the principles of identifying crucial job skills, knowledge, social relationships and organizational practices and passing them on to prepare the next generation of workers, thereby ensuring the seamless movement of talent within the organization. See Create a Succession Plan that Works. Many business leaders and HR practitioners believe that succession planning is a complex process and a practice restricted to the largest organizations with the most sophisticated organizational development departments. On the contrary, succession planning can be of great value to smaller organizations that have fewer resources available for knowledge management programs and the formal, structured development of employees. See Succession Planning Is Easier Than You Think. Effective job design, varied internal development opportunities and smart organizational structure are important practices to promote the achievement of organizational objectives while creating an environment that promotes employee engagement and retention. The convergence of the organization's needs and the employees' interests can occur in succession planning because of its wide scope and open process. This article will discuss: The business case for succession planning. Factors to consider when designing a program. Potential obstacles to implementation. Characteristics of great programs. Following are a few terms surrounding succession planning processes: Training. The preparation of an employee to perform the tasks required for his or her current role. Development. The practice of equipping an employee (or group) for future roles and responsibilities. Career planning. An employee-centered practice of identifying the interests of the employee and assisting that individual, as well as providing personal development options consistent with his or her talents and interests. Career management. An organization-centered practice of creating jobs and organizational structures that promotes the achievement of business objectives. Replacement planning. A shorter-termed practice of identifying replacements for personnel in key operating functions. Succession planning. The future-focused practice of identifying the knowledge, skills and abilities to perform certain functions and then developing a plan to prepare multiple individuals to potentially perform those functions. See The Chief HR Officer's Role in CEO Succession. Business Case Reasons for engaging in succession planning include the following: Adapting to demographic changes and talent scarcity. Identifying skill gaps and training needs. Retaining institutional knowledge in a knowledge economy. Boosting morale and retention by investing in employees. Replacing unique or highly specialized competencies. Adapting to demographic changes and talent scarcity Demographic shifts will create intense competition for talent—perhaps more rapidly or slowly than anticipated, but inevitably. Candidates in the labor pool will likely lack experience and many core skill sets required for crucial positions. Harvesting critical organizational knowledge so it can be shared with subsequent generations of workers will be crucial. Business and HR leaders view the skills shortage as a top concern that needs to be addressed. The workforce simply does not have enough workers and skilled candidates to fill an ever-increasing number of high skilled jobs. See SHRM Research: The Global Skills Shortage. These trends, combined with the increasing retirement of baby boomers, present opportunities for comprehensive succession planning to fill the upcoming shortages in talent. Identifying skill gaps and training needs The process of articulating necessary skill sets and competencies for key positions yields the added benefit of identifying skill gaps and training needs in the existing population. Interventions such as cognitive and behavioral training programs can be developed during the planning period and customized to the particular learning needs of the target group. Retaining institutional knowledge More employees are now hired and paid for their thinking rather than for their labor. This means that what we know is likely more important than what we do. The entire concept of knowledge management focuses on identifying, harvesting, archiving and retrieving organizational knowledge. SHRM research on preparing for an aging workforce has found that less than 40% of HR professionals said their employers were analyzing the impact of workers over the age of 55 leaving their organizations in the next 10 years. See The Aging Workforce and How to Make Your Organization Retirement-Ready. Imagine the reductions in learning curves for critical positions that could be achieved if much of the tacit knowledge—that gained by experience—were passed from one generation of workers to another. With succession planning, that sharing can occur concurrently between the worker and the potential successor, giving the successor the unique opportunity to gain useful skills and knowledge without a long, on-the-job learning curve. In addition, succession planning substantially decreases the need for formal training programs—and the resources they consume—to recreate the learning opportunities. See SHRM Research Overview: Leadership Development. Boosting morale and retention An organization's visible investment in its human capital can be a tremendous boost to employee engagement and morale. According to Herzberg's theory of motivation, meeting the personal growth, achievement and recognition needs of employees promotes motivation. With proper design and consideration given to the group demographics, succession planning can be structured to deliver all three motivators. See How to Create a Recruiting Strategy: Buy, Build, and Borrow. Replacing highly specialized competencies Although the conventional wisdom is that no one is indispensable, replacing a leader or contributor with highly specialized knowledge or competencies is costly and time-consuming. Succession planning mitigates the effects of a sudden or unanticipated vacancy in a principal position. Factors to Consider Regardless of its scope, any succession planning program is enhanced with the consideration of a number of factors: Organizational foundations. Scope of succession planning program. Implementation team. A match of talents to tasks. Job design and skill complements. Standards and metrics. Plans for successful transitions. Alignment of existing practices. Effective use of technology in support of record keeping. See Closing the Leadership Readiness Gap Organizational foundations Like most HR programs, succession planning cannot be performed in a vacuum. Well-constructed foundation components should be in place long before succession planning programs can be implemented. Each of these steps lays groundwork for succession planning. For example, jobs can be designed with complementary or layered skill sets. An open organizational structure can be designed to reduce the barriers that prevent cross-functional learning. Candidates can be viewed in light of potential functions beyond the immediate vacancy. Through assimilation, new employees can learn the organizational culture from the outset. Once these processes are secure, the organization can identify, based on strategic objectives, key positions that are best suited to succession planning. See Succession Planning Policy. Scope of program Succession planning can go in two main directions: choosing by position or by person. A program that does both will ensure the greatest likelihood of addressing the primary purpose—keeping talent in the pipeline. Sometimes the talent resides in a particular individual who has numerous skill sets that would be valuable in a number of positions. Sometimes, certain positions themselves serve as good "training grounds" for future roles. In either case, an individual employee is selected, so that person should be: Comfortable with change. Interested in learning new skills. Accepting of uncertainty. Adaptable to multiple work environments and leaders. Identifying positions to include in a succession planning program is more of an art than a science as it is certainly an organization-specific process. However, considering the following positions may be beneficial: Positions central to strategic goals or to a competitive advantage (which have the greatest effect on the consumers' buying decision—think of a housekeeper in a hotel or an architect with specialized and uncommon knowledge in a restoration business). Positions that are organization-specific or in a highly specialized industry (roles in the judiciary system or technicians in titanium mining). Positions of influence within the organization (those that influence resource allocation or decision-making). Jobs with long learning curves (assistant to a senior leader, specialized equipment troubleshooter, contract negotiator). Positions in which experiential learning is the main knowledge acquisition method (banquet chef, home inspector, case manager). See What is a 9-box grid? Implementation team Some areas of expertise and commitment will improve the success rate of the program—such as in HR, organizational development or among other leaders. Knowledge of job design concepts, effective performance management practices, training and development initiatives, and adult learner and mentoring programs gives the program coordinators a good foundation for a well-rounded program. Having a receptive organizational culture (silo-free, accepting of change, with a learning-organization mentality and a focus on active performance management) is also essential to achieving program objectives. See Three Simple Ways to Motivate Employees. Matching talent to tasks Sensible job development requires that incumbent employees be suited for a series of positions. Fulfilling that objective entails matching individual talents with required tasks. A job analysis that reveals the knowledge, skills and abilities required for each role allows for mindful determination of practical succession steps. Identifying skill complements allows for easier transitions between roles, creates options for placement, reinforces desired performance of those skills and supports development-centered (i.e., future-focused) staff training. See 7 Steps to Developing a Replacement Plan. However, remember that succession planning differs from career pathing in that it should equip incumbents with a wide range of skills to prepare them for a number of potential roles, in contrast to fast-tracking, which moves them through a linear path of jobs. Job design Planning the stages of a succession plan requires an understanding of job design concepts. Understanding specific position attributes allows the program coordinator to perceive the relationship between the incumbent's success in one job and the potential for success in the next job, as well as the individual's appropriateness for a role based on personal preferences. Specialization and task variety, task identity, task significance, autonomy, span of control, independence and interdependence, and job pace are all salient position attributes to consider. Standards and metrics Establishing standards and metrics (what success looks like and how it will be measured) is critical for determining whether a succession planning program has been effective. Deciding in advance what constitutes a successful program may include finding methods to gauge employee satisfaction with personal development, management satisfaction with employee performance and job readiness, the extent of goals achieved, and the time to full-function attainment. Planning The in-advance nature of succession planning significantly enhances the transition for all parties. The employee, new leader and team have the opportunity to interact and develop a work style. There is also an overarching culture of employee development as an investment in the interest of the organization as a whole, as well as a practice of ongoing transitions and shared expertise. Alignment Succession planning cannot be accomplished as a stand-alone process. The principles that support succession planning must also influence the selection process and performance management. Identifying roles eligible for succession planning requires forethought during the selection phase to ensure that the right person, with development potential, is chosen. Future-focused performance management practices that highlight personal initiative, skill acquisition and development are most suitable. See Should You Tell Employees They're Part of a Succession Plan? Record keeping and technology In larger organizations where succession planning may cross departmental, business unit or even substantial geographic boundaries, the collection and organization of records associated with the process can pose considerable challenges. To manage this - particularly in the early stages - administration of a succession planning program can be limited to: Identifying portions of the organizational chart with target positions. Creating informal charts showing skill complements and job design commonalities between target positions and potential feeder positions. Maintaining summary skill set and interest resumes of incumbents in something as basic as a spreadsheet. Creating a Gantt chart of development assignments and program milestones for project planning. Once a program has a track record, it may be possible to make the case for acquiring software applications that compile succession planning data and integrate it with existing human resource information systems (HRIS). Such systems can even generate sensible succession planning avenues based on organizational structure. Of course, the quality of the data retrieved is directly related to the quality of the data entered and maintained, so records retention should be designed with this anticipated use in mind. Potential Obstacles Depending on the scope of the project and the organization's culture and readiness, the following obstacles to a formal succession planning program may exist. Consider them when planning and marketing the program. Resistance to change Succession planning is one initiative that can be done incrementally. Enhance existing selection and performance management programs to show the value and importance of building internal bench strength. Introduce the ideas of waning skill sets in the labor market and the existence of internal talent that can easily be developed. Start small, maybe with one major function, to create a success story and build credibility and agreement. Lack of support by persons of influence If outspoken naysayers get the floor, succession planning can be a tough sell. Find the source of their skepticism, and present facts and figures to support the program and neutralize issues such as these: Concerns that jobs are at risk. Worries about costs or lost productivity. Tendencies to promote knowledge-hoarding rather than knowledge-sharing. Organizational silos One way to address silos in the context of succession planning is to start with a function that is partially shared among one or more business units. Find leaders who believe in knocking down silos to see if they have jobs that could be feeders into another area. Explore the possibility of temporary assignments in other areas that could be used to develop employees for future roles. Equal employment opportunity Succession planning involves preparing employees for possible future roles; it is not pre-selection. If the succession planning program is rooted in diversity and equal employment opportunity, the ultimate selection of employees to fill new roles will reflect that focus. During the succession planning process, choose positions generally filled from within, work to identify a number of potential feeder roles and incumbents, and ensure everyone knows that succession planning is intended to match the organization's needs with the employees' interests and that it makes no promises. See Is Your Organization on Target in Developing Women for Senior Leadership Roles? Weakness in performance management If the organization has not had a consistent practice of giving honest performance feedback, not only is that an obstacle for succession planning, it is a bad business practice that needs immediate correction. Educate managers about the legal and ethical reasons for giving honest feedback. Employees deserve to know when their behavior or performance is meeting expectations. They also deserve the chance to improve their behavior or performance when it does not. There are four essential factors in an effective performance management program: A feedback process that is continuous and timely throughout the review period, so employees know how they are doing and what is expected. A dialogue that includes performance feedback measured against clear and specific goals and expectations established at the outset of the performance management cycle. A documented process for acknowledging the outcomes of the performance review process between the manager and the employee. A two-way individual conversation between the manager and the employee (preferably face-to-face) at least once a year. Manager resistance To some extent, a succession planning process involves asking managers to prepare to let go of their best performers. Approach that challenge by: Fostering a sense that keeping talent within the organization, wherever it may migrate, is the goal. Holding managers accountable for developing their subordinates and recognizing those who excel in that area. Educating managers that employees will recognize as managers-of-choice those who invest in their subordinates' development and that they will likely have their choice of internal candidates as job vacancies arise. See Succession Planning Training for Supervisors. Lack of time This issue represents the age-old conflict between time spent and time invested. Consider the amount of time spent recruiting, selecting, training and managing new employees, not to mention the assimilation learning curve. Compared with those time-consuming activities, the investment in developing incumbents' skill sets does not seem so daunting. Time invested in succession planning prepares the employee for a wider array of responsibilities within the organization. Rewarding the wrong behavior Many employees seem reluctant to share expertise with others. Often their self-esteem is linked to being the local expert. However, it is in the organization's best interest to reward employees who willingly share their expertise and demonstrate interest in learning new things. Components of Great Programs To help ensure the succession planning program meets the organization's needs and expectations, a number of components are worth considering for inclusion. See Retool Your Succession Planning to Meet Future Challenges. Prepare leaders to participate Cultivating high-level commitment and support will have a positive influence on the succession planning program. Succession planning involves not merely making time to provide learning opportunities for employees; it also involves leading the culture toward lowering barriers and creating a learning organization. Align the program with business objectives When selecting job functions for the program and methods for the transfer of learning, be sure to align them with business operations, practices and schedules. Use a variety of methodologies Adult learning occurs in different ways. Use a combination of techniques, including mentoring, cross-training, job enlargement or enrichment, job shadowing and case studies, vestibule training, and classroom training. Incorporate in performance management Employee interest in succession planning, willingness to be a part of it and efforts toward achieving goals associated with it should be part of performance management. Incorporating relevant goals in development plans is relatively easy. Promote a long-term view Succession planning is a 12- to 36-month process. Encourage team members and leaders to think long-term and big-picture during the program development. Reinforce the concept of preparation, not pre-selection. Think of succession planning as creating a "farm team" The sports analogy resonates with employees and managers alike. Responsiveness to new situations (including unexpected ones) and resilience in the face of conditions in the external environment are traits of successful organizations. Having all your knowledge or skill "eggs" in one person's "basket" is never good business practice. Look beyond the obvious Good candidates for succession are not necessarily already in traditional feeder positions. Look far and wide for employees with complementary skill sets who may be appropriate for the program. Plan for knowledge transfer Succession planning includes identifying skills and competencies next-generation employees will need to function well in key positions. Developing systems to identify and transfer that knowledge and shorten learning curves should be a primary objective. Partner with a trainer to determine the best way to promote learning. Look at succession planning in layers Layering competencies achieves many of the same benefits as developing skill complements for succession planning paths. Even if certain roles are not well suited for formal succession planning, the incumbents may be candidates for acquiring layers of related skills. Consider including them in a sort of "a la carte" learning along with the succession planning participants. Job development is not limited to promotion Succession planning might include job expansion in addition to job progression. That is, if traditional step-by-step succession planning does not work for certain functions, consider individual skill development opportunities such as enrichment, enlargement and cross-training as sources for enhancing employee skill sets.