Philippines’ Top HR Blog

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Induction Crisis (part 1) – The Heel of the Recruitment Achilles

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By Matylda Rabczenko
Guest Writer, Warwick Business School

During the hunt for capable employees, managers often over-invest into recruitment and selection alone, whilst forgetting about the last pillar to successfully obtaining medium to long-term workers: induction.

Simplistically speaking, induction can be considered as a process of integrating new employees into an organization and familiarizing them with the job requirements, but in reality it is more complex than it sounds. According to Rice, et al.’s (1950) 3 stages to become a true employee, ‘induction crisis’ (the first of the three) is the most problematic and bares the greatest number of casualties; the crisis occurs when an employee fails to adjust to the organization and makes the decision to resign.

Decades of studies, beginning in the 1950s, have confirmed a strong link between inadequate induction and high turnover rates amongst new recruits. Usually, the crisis can take place as soon as within the first 6 weeks of employment; some leave immediately, others postpone taking action by a year or more.

Before considering solutions, it is crucial to take into account what drives this HR failure. Here are a few common sources (a detailed description can be found in Skeats’ 1991 book on Successful Induction, which I would recommend as an initial guide!).

False expectations. These can be usually attributed to over-selling the position during the recruitment process, as well as misunderstandings about salaries and promotions. Induction may help in counteracting the overselling and depicting the reality of the job.

Company style. Although the company style is conveyed through advertisements, company websites, etc., the true company style and culture may come as a surprise to some new employees. Induction provides you with a good opportunity to give the new recruit a preview of the way in which people operate within your company.

Demands of the job. It is often not just the company that over-sells the position, but also the employee him/herself. Consequentially, the employee may become overwhelmed by his/her new responsibilities. Similarly, an employer may hire someone who is overqualified for a role and will find it boring. Induction allows you to have an exchange of expectations with the new employee, which may on occasion result in re-assignment to a more suitable role.

Difficulty with colleagues. Clashes with fellow co-workers are especially likely to occur when the new employees are thrown into a workplace environment without previously interacting with one another. In this case, induction can be a great opportunity for your new employees to socialize in a more informal setting.

Keep following our blog for the part 2 discussion including tips for success and conclusions!


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Improve Your Recruitment in the Philippines

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By Yvonne Manzi
Social Media Officer, Profiles Asia Pacific

For your company to be successful in the Philippines, it is important that you do not simply apply general international recruitment practices. Across regions the differences can be more defined than you think, and failing to recognize and appropriately respond to them can lead to severe problems.

A 2012 Kelly OCG report outlines 5 ways in which you can improve your recruitment in the Asia-Pacific region.

Know what motivates.
Today it is widely accepted that to motivate employees to achieve their best results, companies need to give them more than just great salaries. Across regions, there are significant differences that are influenced by culture and values, which must be taken into account. What matters in HR is not why these issues arise, but how to respond appropriately. It is therefore of utmost importance for HR professionals to recognize the motivational trends in the region, and devise ways to address them.

In the Philippines, as in other countries in Asia-Pacific, the basis for employee motivation is the value they perceive they have. Applying Western-style opportunity+responsibility motivational methods is acceptable but limited; you must also practically show your employees that they have real worth. In general terms, this can be shown in two ways: through the right job title, and through corporate reputation. If the employee has an important job title, and he/she works for a company that is socially responsible, influential and that gives back to the community, the results will be more impressive. First, the employee will feel more valued and thus be motivated to perform better, and second, the clients will respond more positively because these cultural trends are ingrained in their mindsets as well.

Beware the pressures of a growing market.
In Asia-Pacific, a region with already limited skilled labor, talent search and retention is becoming increasingly difficult. The market is quickly growing both within specific countries and within other developing regions. This means that there are more and more opportunities for candidates all-around, and there are more incentives being offered to candidates by competing companies and recruiters. This means that it becoming even more critical for organizations to find the right long-term candidates who they will keep and develop for a long time.

Recruiters and HR professionals must make sure they have a number of skills in order to remain competitive in the Philippines. They must have:
a) an understanding of upcoming skills shortages
b) access to global candidate networks
c) strategies for developing and engaging existing employees
d) long-term strategies for increasing the inflow of talent

Dig deeper to measure candidate quality.
As I mentioned earlier, in emerging markets there is a shortage of highly skilled staff. 83% of responding companies blame this on hiring issues in Asia-Pacific, compared with percentages in the 70s for the Americas and EMEA. The complicating factors are low unemployment rates, largely given because of the aforementioned growth which affects most sectors.

According to the Kelly OCG report, this means that “it is common to find organizations seeking candidates without the ideal previous experience, but with the fundamentals to be able to learn as they go”. It is therefore important for your company to determine how effective the interview and screening process is. The skills that need to be measured are:
a) aptitude for learning
b) team-work and leadership
c) communication
d) problem-solving and strategic insight
Perhaps one of the most effective ways to ensure this is to integrate assessment solutions in the hiring process.

Think flexibility.
The Kelly OCG report states that “contingent and temporary labor has grown almost everywhere in the past decade, yet it has grown exceptionally quickly in the Asia-Pacific market”. Promotion of this type of labor can indeed create insecurity in the lower end of the market, but the report explains that for those with high-level and in-demand skills, the situation is a win-win one. The candidates will be more inclined to participate because this will provide for improved work-life balance, they will be able to choose their favored projects, and it is especially beneficial for women who may want to remain or re-enter the job market while they have a family.

So, how to do this? According to the report, the steps are 3:
a) Determine what the success factors are for specific roles. They may not necessarily require permanency to reach the same results. Especially with the aid of internal networks and the right technology.
b) Focus on collaboration. Give managers the responsibility, but then allow them the freedom to delegate and re organize the work on their terms. They will be more able to target the strengths of particular individuals.
c) Engage specialists rather than generalists. This will increase the quality and productivity of work, and reduce job dissatisfaction.

Improve your “candidate experience”.
The candidate experience is the process the potential employee has to undergo when applying for a position within your company. Just like a customer, the candidate should also receive a positive experience. This means that it needs to be tailor-made for the candidate, and appropriately targeted and marketed.

The basic elements that are indicated by the report are 5:

1) The brand experience
2) The reputational experience
3) The technological experience
4) The human experience
5) The process experience

(See side figure for explanation)

If successfully done, what will this lead to?

There are 3 positive outcomes:
a) A desirable yet unsuccessful candidate will be more inclined to reapply to future opportunities
b) The successful candidate will be more engaged from the start
c) You will be perceived more positively in the recruitment market, and this will increase your inflow of applicants

These guidelines should provide you with some very valuable insight!


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HR Planning in Times of Uncertainty

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By Matylda Rabczenko
Guest Writer, Warwick Business School

Uncertainty

In current times of uncertainty, HR planning is commonly associated with bureaucratic rigidity that is inapplicable to the rapidly changing modern world, where reliance on past statistics gives us little scope to make future forecasts.

But contrary to this widely shared dogma, today’s fast-paced firms need a degree of HR planning if they want their workforces to keep up with the unstable market demands. This has been supported by research from the past decade, which confirms that HR planning continues to make important contributions to the better monitoring of staffing costs and employee numbers, as well as to the maintenance of a workforce profile, which allows for better-informed resourcing decisions.

Broadly speaking, once implemented, HR planning can result in one of 2 forecasts: labor shortages, or labor surpluses. A majority of Western companies will endure the latter due to the recession. However, unlike the Western world, the Philippines have not experienced the effects of the recent financial slump. Instead, the economy is undergoing incredible growth, largely due to heavy foreign direct investment, which has been fuelling cohorts of new ventures. Consequentially, there is a high demand for labor, which is widely available, however rarely skilled. On occasion, this may result in skilled-labor shortages, in which case the employers must resort to: employee overtime, employee outsourcing, or employee retention schemes.

In order to prevent such desperate measures, companies employ HR planning to predict both internal and external labor demand on a constant basis. This way, strategies to tackle employee shortage or surplus can be planned before the problem even arises, thus preventing the labor shortage or surplus from happening, or at least ameliorating the company’s approach.

When analyzing internal demand, there are 5 questions that need to be asked:

1. Is employee turnover high or low? High employee turnover can be an indicator of upcoming labor shortages. On the other hand, low employee turnover may imply the success of retention strategies, meaning that the company will not experience labor shortages.
2. What do the ‘employee movements’ say? How many employees have changed positions to ones within or outside of the company, and why? Employers often use replacement charts, succession plans, or transition matrices in order to track this.
3. How high is employee productivity? If employee productivity is not high enough to fulfill quotas, then this implies labor shortages.
4. Is the organizational performance on the rise or fall? When organizational performance is falling, then the company is likely to experience labor surpluses, as profits fall short of wages.
5. What is the company’s strategic direction? In cases where the company intends on broadening its scope of activities, the expected outcome would be labor shortages.

Analyzing external demand is much more tricky, as this may involve an endless number of factors. The questions below highlight some of the most important issues that should be considered:

– Are there enough unemployed and qualified individuals to satisfy the company’s resourcing needs?
– What are the general levels of unemployment and within relevant occupations?
– What types of skills are available in the area? As mentioned earlier, the question of skills is especially pertinent to the Philippines, where skilled-labor shortages are more likely to occur than in the Western world.
– What are the industry trends?
– What are the government’s legal frameworks?

These questions alone should give you a better idea of your business’s future recruitment challenges. They should also give you an idea of the importance of properly applied HR planning. Perhaps, it’s time to give it a shot!


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Selling to HR Professionals

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By Yvonne Manzi
Social Media Officer, Profiles Asia Pacific

The importance of HR for companies is becoming increasingly evident. The expertise of HR professionals in the management of everything-employees makes them one of the most important pieces in the puzzle of maintaining a successful company.

However, given their busy schedule and versatile roles, marketing to them can be difficult. This infographic that was recently published by the HR Marketer provides very useful information.


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The 4 B’s of Talent Acquisition

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By Yvonne Manzi
Social Media Officer, Profiles Asia Pacific

In this highly competitive era, managers that merely dispense people to jobs based on instinct are likely to severely fall behind. This Resoomay Infographic places the cost of a bad hire at $840,000 (₱34,305,600). It is therefore of utmost importance that companies not be superficial in their acquisition of talent. The McKinsey Quarterly (2003, 2) states that “a systematic and continuous approach to fitting the right person to the right job at the right time [is] the Holy Grail of workforce organization.”

If you want to make sure your company doesn’t fall prey to such common neglect, the key steps to follow are 3:
1. Evaluate the company’s current state and talent pool
2. Identify current and upcoming gaps
3. Devise a strategy to decisively fill these gaps

It is at point 3 that strategic talent acquisition is essential. To fill the talent gaps, you typically have 4 options.

1. Build. Developing talent within the organization. It creates a culture of appreciation and trust, thus mitigating risks for low productivity or turnover.
2. Bounce. Reorganizing talent by removing obsolete jobs, and redistributing it to positions that are a better fit. Bouncing unproductive persons from the company altogether.
3. Buy. Recruiting outside talent. This can lead to excellent candidates, but is also costly and time-consuming. Ultimately there is no guarantee that the hire will be successful.
4. Borrow. Hiring contract employees. This option is flexible, it does not involve excessively expensive risks, and allows for a “trial period” with potential talent.

So, which is the right option?

This will depend on the size and internal resources of your company, as well as talent supply and demand. For new ventures which have not yet built a strong relationship with long-term employees, borrowing may be desirable. This can then be followed by building employee-employer trust alongside the growth of a distinct company culture.

Ultimately it is of utmost importance for companies to ensure that they have a systematic and consistent approach. Employees must fill the job descriptions with the basic required skills, and they must fit the culture of the organization.


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