CONTEMPORARY ISSUES AND TRENDS IN HUMAN

RESOURCE MANAGEMENT

Subject: Human Resource Management

Prof. Sanjay Kaushik

Team members: Ashok Kumar(MBA GEN A) Nikki Latta

Sanchit Kaura

Swati SharmaMarch 3rd, 2017

SIGMA-ALDRICH & KELLYOCG KellyOCG created service level

agreements (SLAs) Comprehensive data mining from various

internal and external sources. This involved reaching out to the HR and

TA team, other internal recruiters, external recruiters the company was working with, and existing employees to consolidate existing databases.

candidate résumés, various channels for pharmaceutical-specific sourcing, and information on pharmaceutical shared services in the IT domain—checked for relevance, categorized, and centralized for ready access.

Created role definitions, which incorporated pharmaceutical related elements and IT requirements for each role, to reach out to candidates.

1. RECRUITMENT PROCESS OUTSOURCING ( S TA F F I N G

C O M PA N I E S )

Recruitment Process Outsourcing is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider.

Technavio is a leading global technology research and advisory company. Global recruitment process outsourcing market to grow at a CAGR of close to 18% during the period 2017-2021.

RPO COSTING MODELSManagement Fee Model (typically monthly) - agreed-upon number of positions, may have escalation factors if the number of hires increases over a period of time

Cost Per Hire Model - A fee is paid for each candidate who is successfully brought through the program and hired (or other action such as offered a position), may be used for short-term

Management Fee Plus Cost Per Hire - This is a combination of the above two. This combines the consistent recruiting effort under the management fee, with payments for the success (hires) of the program.

Cost Per Slate - This is a sourcing model where the RPO provider charges a fee for a set number of sourced, screened and qualified candidates for each open position. From there, the candidates are provided to the internal recruiters for continuation of the recruiting and hiring processes.

Cost Per Transaction - A fee is charged for a specific process to be completed by the RPO provider, such as initial screening or reference checks.

BENEFITS OF USING STAFFING COS.

Focus on core business activities

Shrink HR and Administration costs (Payroll, Benefits, Training, Accounting)

Ease of handling – Planned & unplanned absences

Regulatory and Statutory ComplianceBetter Employer – Employee relationsThe recruiter can help write the job descriptionSince matching applicants with employers is a recruiter’s entire job, they’re able to devote the time and get applicants in place quickly, meaning you’ll be able to fill the position faster.

They can handle reference checks for you. (Idfy – third party verification)

Recruiters are typically well-versed in their respective industry and can identify and connect with a larger group of candidates - wider applicant pool at the recruiter’s disposal.

POTENTIAL PITFALLS OF USING A RECRUITER

Morale: The temporary workers might develop resentment for doing the same job without the benefits that you provide your permanent employees.

Legal Issues: Some employers have been sued for keeping workers as temporaries for long periods of time, the courts viewed this as an attempt to skirt employer responsibilities

It’s difficult for an external agency to know your business as well as you do. This means that a recruiter may be more likely to overlook an otherwise qualified candidate who doesn’t satisfy every box on a checklist. In other words, a great candidate may be passed over if the recruiter doesn’t know when to be flexible in the candidate qualifications.

There is an extra expense involved with recruiters—typically a portion of the new hire’s initial salary. Obviously, this expense may be quite high in some cases. There is a time commitment involved in finding the best recruiting agency to contract with – quality compromiseDepending on the situation, a recruiter may place a candidate for interviews with several companies concurrently. This can increase the likelihood that your chosen candidate will have competing offers.

2. DOWNSIZING

Make (a company or organization) smaller by shedding staff.

ISSUES

Survivor sickness – decreased effort and creativity, increased resentment and fatigue

 Leaves a company ill-equipped to handle the return of strong revenue numbers

Maintaining productivity with less employees

MOST COMMONLY USED BY EMPLOYERS

Natural attrition/wastage (leave on their own accord)

Early retirement (VRS -Voluntary retirement scheme is a method used by companies to reduce surplus staff)

Compulsory redundancy

ALTERNATIVES

RedeploymentWage reductionMandatory vacationsEmployee sabbatical (At Adobe, employees may take a sabbatical for every five years of tenure. The first sabbatical is four weeks, then at the 10-year mark employees are entitled to five weeks’ sabbatical. After 15 years, the time off increases to six weeks, and it stays at that length for every subsequent five years.)

Hiring freeze

3 . T H E P O W E R O FP E O P L E A N A LY T I C S

HR was reactive and compliance orientedPeople analytics helps organizations to make smarter, more strategic and more informed talent decisions. With people analytic, organizations can find better applicants, make smarter hiring decisions, and increase employee performance and retention.

Areas: Engagement, Diversity, Retention and attrition, Staffing and selection, Performance management, Employee lifecycle, Leadership

People analytics relies on comprehensive collection of digital data about employees’ behavior. The data can come from employees’ key performance indicator reports, email traffic, in-office interaction patterns, and social networking activity. Once collected and aggregated, data are analyzed for patterns by algorithms to inform managerial decisions.

PRACTICAL IMPLEMENTATION

A co reduced its retention bonuses by $20 million—and employee attrition by half—thanks to the use of predictive behavioral analytics. Through this process, and contrary to expectations, the company found that limited investment in management and employee training, and inadequate recognition, were the main drivers of staff defections. Expensive retention bonuses, to which the company had resorted in desperation, were simply an ineffective and costly Band-Aid. Many companies conventionally try to tackle retention issues by conducting in-depth exit interviews.

A leading healthcare organization, for example, has used these techniques to generate more than $100 million in savings while simultaneously improving the engagement of its workforce. The organization found that highly variable and unequal compensation levels were disturbing employees and driving high rates of attrition. Once the data analytics had identified an optimal minimum and maximum compensation threshold, the healthcare group increased the engagement and productivity of its employees—and reduced not only their rate of attrition but also its total compensation expenditures.

(http://www.mckinsey.com/business-functions/organization/our-insights/power-to-the-new-people-analytics)

(CONTD.)An insurance company that found the No. 1 predictor of success in sales was whether a person had typos in his or her resume. Whether the person had experience in selling insurance was No. 2 or 3. After the company realized these were top factors, it changed its hiring criteria. The company saw improvement in sales within six months.

The algorithm adapted by another co’s HR took into account historical recruiting data, including past applicant résumés and, for those who were extended offers previously, their decisions on whether to accept. the model successfully identified those candidates most likely to be hired and automatically passed them on to the next stage of the recruiting process. Those least likely to be hired were automatically rejected. With a clearer field, expert recruiters were freer to focus on the remaining candidates to find the right fit. Helped in saving and increased ROI.

(http://www.mckinsey.com/business-functions/organization/our-insights/people-analytics-reveals-three-things-hr-may-be-getting-wrong)

THE ISSUE WITH USING PEOPLE ANALYTICS

Curbs innovation

Manipulation of self-administered reports

Algorithms are not always accurate

ASSESSMENT CENTERS

An Assessment Center consists of a standardized evaluation of behavior based on multiple evaluations including: job-related simulations, interviews, and/or psychological tests. Job Simulations are used to evaluate candidates on behaviors relevant to the most critical aspects (or competencies) of the job.

HR ANEXI

OTHER TRENDS

Agile HR (smaller teams, reduce number of meetings)

Softer performance ratings (Accenture, Deloitte)

Individualization (instead of segmentation like gen y gen x, data analytics are used to narrow down on an individual)

SCRUM: work in a team in short sprints of two to four weeks. The goal is to have clear deliverables at the end of the period. The end of the period is the moment to regroup, discuss the lessons learned and determine the deliverables of the next period

People management – managers cum hr professional

REFERENCES( N I K K I )

Sites:

https://www.linkedin.com/pulse/accenture-dumped-performance-reviews-here-why-steffen-maier

https://www.linkedin.com/pulse/20141204104505-4783982-it-s-time-for-some-guerrilla-hr?trk=mp-reader-card

http://www.ceridian.com/resources/newsletters/2016/Jan/9-trends-every-hr-professional-needs-to-know.html

https://hrtrendinstitute.com/2015/11/09/trends-in-hr-people-analytics-made-easy/

http://www.business-standard.com/article/technology/why-algorithms-used-as-people-analytics-won-t-lead-to-utopian-workplaces-117022200220_1.html

http://blog.rpoassociation.org/blog/bid/224479/The-7-Risks-of-Recruitment-Process-Outsourcing

http://iveybusinessjournal.com/publication/hr-strategies-that-can-take-the-sting-out-of-downsizing-related-layoffs/

Research Paper(s):Human Resource Management: Positive and Ethical People Practices Dr. Dana McDaniel Sumpter California State University, Long Beach College of Business Administration (2013)

Ethical dilemmas in HR practice A paper from HR in a disordered world: IES Perspectives on HR 2015 Alison Carter, Principal Associate (2015)

Book(s):Contemporary human resource management by Tom Redman and Adrian Wilkinson

Case(s):RPOIndia_TalentSolutionTailoredToFit_CaseStudy.pdf

REFERENCES( N I K K I )