Human Resource
Human Resource
Staffing is a very important task in a company. Staffing is defined as the process of determining human resource (HR) needs in an organization and securing sufficient quantities of qualified people to fill those needs. The objective of the staffing process is to ensure that an organization continuously has the right quality and quantity of employees in the right place at the right time to perform successfully (Caruth 1). It is important for performance, growth, vitality, and success of the company. It does cost the company to staff both directly and indirectly.
Direct staffing costs include advertising, test’s, salaries of the staffing specialists, use of office and equipment and much more. A large company typically spends around $10,000 during the hiring process of one employee. According to a survey on cost related staffing by the Bureau of National Affairs, budgets for human resource represent a median of 2.7 percent of a total company’s payroll and 1 percent of the operating budget.
Indirect staffing costs, meaning the expense of staffing that is readily identified without financial need, consists of a few category’s. First, the time HR spends interviewing prospective employees, conducting performance appraisals, making promotion or termination decisions, documenting staffing actions, and more. Secondly, The time supervisors or employees spend training new employees. Third, the amount of productivity lost by the new employee while in the process of learning to perform the job. Fourth, in some instants, the amount of wasted materials resulting from the new employees mistake’s while learning the job (Caruth 3-4). Referring to both direct and indirect costs, it is important to select the best person for the job, to ensure that the organization maximizes the benefits from the new recruit.
Most organizations conduct job analysis, process of determining the pertinent information relating to the nature of a specific job, to determine current human resource needs on the basis of existing or newly created jobs. Skills inventory is used which consolidates information about the organizations current human resources. Six categories of information that are usually included in a skills inventory are 1) skills: education, job experience, and training. 2) Special qualifications: memberships in professional groups, special achievements. 3) Salary and job history: present salary, past salary, dates of raises, various jobs held. 4) Company data: benefit plan, retirement information, and seniority. 5) Capacity of individual: scores on tests, health information. 6) Special preferences of individual: location or job preferences (Rue 251).
Human resource planning involves getting the right number of qualified people in the right job at the right time. When organizations use HRP the first question is “Where are we now?” Using job analysis and skills inventories can answer this question. “Where the company wants to go” is based on human resource forecasting, the process that attempts to determine the future human resource needs of the organization in light of the organization’s objectives. Some variables to consider in forecasting include sales projections, skills required in potential business ventures, composition of the present workforce, technological changes, and economic conditions (Rue 252). After forecasting is complete, the organization gets involved in activities to bring its current level of human resources in line with forecasting predictions. Depending on the forecast, organizations will recruit and select new employees, develop current or new employees, promote or transfer, and in worse case scenario, layoff or discharge employees.
Recruiting involves seeking and attracting a supply of people from which qualified candidates for job vacancies can be selected. The more diverse the candidates are, the better. Reviewing each applicant cost time and money, so it is important that the recruiter provides enough information about the job so unqualified individuals can select themselves out of job candidacy (DeCenzo 148). Recruiting is usually done through advertisements, online, or schools because they have the best turn out for qualified individuals.
After recruiting has been taken care of, the next phase the organization gets into is selecting. Selection is the process of choosing individuals who have relevant qualifications to fill jobs in an organization. The first step in the selection