Recruitment and Selection Strategy

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Recruitment and Selection Strategy “Harrison Corporation, a U. S. -based corporation with business units in Europe and South America, has recently decided to create a business unit focusing on expansion into Central America. As a low-cost producer of discount office supply products, the company will continue producing products at the existing facilities, or purchased from existing suppliers. This unit primarily focuses on marketing and delivery of products to two groups of customers: corporate customers, retail, and consumers. Currently, the organization markets primarily through the Internet and through catalogs mailed to businesses.

To reach direct sales customers, such as retail and direct consumers, the company mails catalogs to homes and offers its products in discount stores. Although the company has a Spanish website and has translated its catalogs, it has not been able to penetrate the Central American market. As a result, the company has decided it needs a presence in Central America; therefore, they have created a business unit that will be in Costa Rica, from where marketing and sales activities will take place,” (Apollo Group, 2011). [The citation for a direct quote needs the page number] .

What are the key qualifications for a person filling the position? Key Qualifications To implement the new direction of expansion of Harrison Corporation’s business unit into Costa Rica, there are five key positions that need fulfilling. Those positions are Regional Manager, a Marketing Analyst, a Business Development Specialist, a Product Development Specialist, and a Customer Service Specialist. Each of these positions shares a few similar qualifications such as the need to be “fluent in both Spanish and English and willing to live in Costa Rica, where Harrison’s Central America office is based, “(Apollo Group, 2011). Needs page number] . Each specific position has its own key qualifications that need to be met by a candidate prior producing a job offer. For example the Regional Manager position requires that the selected candidate meet the following qualifications: “Bachelor’s degree in Business or Engineering field required, Five to seven years of relevant experience in business management, marketing and sales preferably within the office supplies market, and Analytical skills and disciplines in support of business planning, strategy development/deployment, relationship management, and conflict resolution,” (Apollo Group, 2011).

The Marketing Analyst position requires that the selected candidate meet the following qualifications: “Bachelor’s degree or equivalent degree in Engineering, Mathematics, Statistics, Finance, Economics, or other quantitative fields or equivalent direct experience required; Master’s degree preferred, Minimum one year analytic work experience, such as consulting, marketing analytics, financial/actuarial analysis, strategic planning; Two years preferred; Advanced degree may substitute for some required experience, Demonstrated proficiency with personal computers and relevant software packages, the ability to structure, and solve problems using quantitative tools, such as Excel and SAS, and Demonstrated written and verbal communication skills,” (Apollo Group, 2011). [Needs page number] . The Business Development Specialist position requires that the selected candidate meet the following qualifications: “Ability to build both internal and external relationships, Strong communication, organization, and time management skills, Solid problem solving and consultative skills required, Self-driven, motivated and results oriented, Strong ability to gain knowledge of IT products and services, and Bachelor’s degree (B A) from four-year college or university; or one to three years related experience and training; or equivalent combination of education and experience,” (Apollo Group, 2011).

The product development specialist position requires that the selected candidate meet the following qualifications: “Excellent team leadership and strong project management skills, Able to work with and communicate with all levels of the organization and outside vendors, High energy, detail-oriented individual who is adaptable to change and requires minimal direction, Must possess the ability to multitask in a fast paced dynamic environment, A Bachelor’s degree preferred, and two to ten years of experience as a product manager/supervisor coordinating large projects and leading multi-departmental workgroups preferred,” (Apollo Group, 2011). [Needs page number] . The customer service specialist position requires that the selected candidate meet the following qualifications: “Must have the nowledge of commonly-used concepts, practices and procedures within the customer contact center industry, Must be able to perform basic computer, keyboard, mouse and typing functions; Must be able to perform data entry functions, High school diploma or general education degree (GED), a Minimum of six months call center experience preferred, Excellent oral and written communication skills, including fluency in both Spanish and English, Ability to demonstrate care and concern for customers, and able to maintain composure during stressful situations ,” (Apollo Group, 2011). [Needs page number] . What is the recruitment strategy? The Recruitment Strategy Developing a recruitment strategy is important to ensure the company can find the best candidates for the positions available. Sangeetha (2010) suggests that when companies have a strong recruitment policy it is easier to attract good candidates. This also increases the possibilities of luring candidates away from the competition. The recruitments strategy sets the process in motion. It dictates “…where, and how to look for qualified applicants” (Heneman & Judge, 2009, p. 202).

Determining the recruitment strategy is necessary to start the advertising process. Harrison Corporation is well known among midsized business for selling good quality office products at reasonable prices. Their goal is to create a similar presence in Central America. As they set up their business in Costa Rica, they need to increase the number of employees. To do so they want to attract candidates with some knowledge of their products. Relevant labor market (must include discussion of home country versus host country staffing for each position) Relevant Labor Markets Determining the key requirements for the positions will help determine the best candidates.

Candidates who are bilingual in Spanish and English are necessary because Harrison Corporation is operating in the United States and Central America. The other key requirements are a bachelor’s degree, strong communication skills, experience in marketing, strong analytical skills, and independent as well as self-motivated. Because the company’s interest in recruiting the best candidates, separating domestic and international recruiting practices is necessary. This is because different means are more common in different cultures. The United States is using technology in recruitment practices. Internet advertisements or banners are also available to use (Heneman & Judge, 2009).

In Costa Rica, word or mouth, or radio is a better strategic option. Although these are viable options finding good candidates who have the knowledge, skills, and abilities (KSAOs) needed to fill global positions are challenging (Millhauser & Rahschulte, 2010). One way to overcome this challenge is to hire a local HR staff member in Costa Rica. This individual would be beneficial in helping overcome both communication and cultural barriers that the corporation encounters. * Role of succession management and career management Role of Succession Management and Career Management Succession planning and career management are useful and play a role in recognizing talented employees.

Heneman and Judge note, “Through replacement and succession planning the organization constructs internal talent pipelines that ensure steady and known flows of qualified employees to higher levels of responsibility and impact” (Heneman & Judge, 2009, p. 108). Managing succession planning is one way to ensure that people within the organization can more up the corporate ladder. Succession planning “…can be used throughout the entire management team, including the identification and preparation of individuals for promotion into the entry management level” (p. 108). The key to succession planning is “…assessing each promotable employee for KSAO or competency gaps, and where there are gaps, creating employee training and development plans that will close the gap” (p. 110). Fleischmann has slightly different views on the goals of succession planning.

He suggests the goals include “…maintaining the desired level of quality in products and services; maintaining a competitive advantage, career growth for employees who can contribute most to the future success of the organization, and employee retention (Fleischmann, 2000). Harrison Corporation will need to have a system in place to identify and develop their employees. It can be accomplished by creating or using software program and maintaining employee profiles that lists “…the person’s performance, core competencies, and promotability” also included are “…other KSAO information such as education, language skills, and past experiences” (p. 112).

With this information in place it is easy to identify and address any competency gaps (Heneman & Judge, 2009). * How will candidates be identified? * * Search firms * Advertising * Internet * Career planning system * Other Identifying the CandidatesHarrison will need to identify highly qualified candidates for very specific needs. The specific KSAO’s will cut down the startup time Costa Rican office. Identifying candidates with the specific KSAO’s would be better to search with the local pool. Search FirmsSearch competing firms to see if highly qualified professionals are interested in working for Harrison. Doing so will bring in already trained employees, saving time, and money on training.

The company will need to ensure that most of the positions are filled with highly trained employees to save the time on the startup process. AdvertisingThe cost of living in Costa Rica is cheaper than in the United States. Therefore, local advertising firms familiar with the local market conditions will give an upper advantage to identifying the right population and advertisements. Certain areas of Costa Rica may not have pools of highly trained professionals to fit the specifics of the positions. Harrison’s positions will require educated professionals to fulfill specific duties in the Costa Rican office. InternetUnder half of the Costa Rican population has Internet use. According the Internet World Statistics, only 43. % uses the internet (“Internet World Stats”, 2010. ) Many professionals contending for the offered positions may be highly qualified but may never see positions posted on the Internet. However, using the Internet to identify qualified applicants will continue to be a major source to use. Career Planning SystemUsing career planning systems with the Costa Rican government can be helpful to find the right candidates. Career planning systems can help reduce the unemployment rate for the country. Partnering with other companies in the market and also providing job fairs to search for highly qualified candidates is a good strategy for candidate identification. How will candidates be attracted? Employment branding * Advertising * Other Attracting Candidates Attracting potential candidates can be a difficult task. Attracting the right people for the right job is important for the organization to meet its hiring goals and staffing needs. Potential candidates look for employment not only appealing to their professional needs but also to their personal needs. Candidates are attracted to an organization through employment branding and advertising. Employment branding has a significant role in not only attracting but also retaining potential employees. Employment branding is a strategy about enhancing recruitment and retaining employees.

Determining the strengths and weaknesses along with the hidden elements of an organization culture will help to improve in assessing potential candidates and creating an exceptional communication to attract and retain talented individuals. Understanding what engages the employees of the organization and what will develop it is the foundation for generating an effective employment brand (National College for School Leadership, n. d. ). Advertising is a marketing tool for organizations to capture the attention of a candidate. Advertising creates an initial interest in a job posting and encourages a potential candidate to inquire for more information.

Review the advertisements from the competitors to determine what is attractive to a candidate. An effective advertisement needs to include something that differentiates the organization from the competitor, some relevant information of the organization highlighting that ideas are important to the applicant more so than the organization. The information should not be boastful but communication should be direct and concise (National College for School Leadership, n. d. ). How will you select the final candidates? Towanna- corrections and updates made * Interview methodologies * Testing * Reference checking * Background and criminal checks * Who will be involved in the process? Selection Process

Potential candidates will be given an invitation to participate in a panel interview. The panel will consist of three individuals: Regional manager, product manager, and the customer service manager, all based out of the United States home office. The selection interview is a dialogue between two of more people in which information regarding qualifications and experience is gathered and evaluated. The Harrison Corporation interview process will be structured and presented as a situational interview. A situational interview “is an interview where applicants are confronted with specific issues questions or problems that are likely to arise on the job”.

Applicant responses will be ranked, and those achieving an average score of 30-45 will be given an invitation to continue in the hiring process. Those selected to continue forward in the hiring process will participate in cognitive ability test, and well as a personality test. It is critical to the success of the company to employ individuals who not only have the expected education and experience that the company is seeking, but are also a fit for the company and the position. It is the expectation that many will make it to the next step of the hiring process, the results pulled from the personality and cognitive ability test will assist in the selection process.

A typing and general computer skills test will be administered to individuals who successfully make it to the second level of the hiring process for the customer service position. Individuals selected to move forward to the final phase of the hiring process will be subjected to background and reference checks. An outside vendor will conduct background checks, and the reference checks conducted by Harrison’s HR staffing. In addition to reference and background checks, individuals selected for the positions will be required to submit and pass a drug screen. Employment with Harrison will be contingent on the outcome of the drug test. Will you offer incentives to candidates?

Incentive Program Incentive programs help in the unification of teams, maintain or improve staff morale, and increase efficiency. Monetary and nonmonetary incentive plans is incorporated in the pay benefits for the Harrison employees. Implementation of a quarterly payout program for the customer service representatives will be centered on production, quality, and attendance. Management staff will be incentivized according to the yearly the performance of their prospective departments. The incentive programs are a bonus to the pay structure; however, not an entitlement and therefore subject to suspension if the company deems it financially necessary. *

Rewards and Compensation Plan for each position and the region When organizations seek to hire new employees, rewards and compensation are important components of the process. Harrison Corporation is hiring employees both in the United States and Costa Rica, so it is necessary to consider the region and the employees when putting together a rewards and compensation plan. This paper will focus on the issues involved to determine the base pay and incentive packages. Administrative issues associated with staffing and rewards plans are also reviewed specifically affirmative action and equal employment opportunity as well as laws and regulations related to disparate treatment and disparate impact.

What is the most appropriate way to determine base pay? Towanna—corrections and updates made Job-based pay Person-based pay (skills or competencies? ) * Determining Base Pay To determine compensation, “each employee must be assigned a rate of pay that is acceptable in terms of external, internal, and individual equity and in terms of the employer’s cost” (Noe, Hollenback, Gerhart & Wright, 2008, p. 486). In the case of Harrison Corporation the following positions are evaluated to determine the appropriate type and level of compensation: * regional manager * marketing analyst * business development specialist * product development specialist * customer service specialist

Compensation for all positions with the exception of regional manager is compensated based on the type of job performed and evaluated on the three-point job evaluation system. A job evaluation system is an “administrative procedure used to measure internal job worth. ” (Noe, Hollenbeck, Gerhart & Wright, 2008 p. 492). Experience, education, and complexity of the job, are the three factors considered in the final salary outcome. The total sum of these three factors determines the employees’ base salary. Using this system is advantageous because it provides a tool for evaluating internal pay equity, and fosters objectivity, and facilitates centralized control. The position of regional manager is compensated based on the competency-based pay system. Competency-based pay is a compensation model that focuses on paying the person rather than paying for the job” (Shimko, 2000, pg 30). This type of system compensates the individual based on the value of his or her skills in the market. The regional director is responsible for the success of his or her business unit, and therefore should be compensated based on the impact he or she has on the performance of the business. Competency-based pay in this position is advantageous because it reinforces a culture for improvement; the better the unit does the more opportunity for pay increases through bonuses and incentive pay. * What other rewards considerations should be included for this position or business unit? Base pay as a percent of total pay

Benefits packages including global considerations * Rewards Considerations for Position or Business Unit According to Noe et al. , [Latin “et al. ” means “and the rest. ” If the source has two authors, always include both names in each citation in the text. When a work has three to five authors, include all author names in the first citation, just the name of the first followed by “et al. ” in all others. In the case of six or more authors, even in the first reference, include just the name of the first author followed by “et al. “] “ from an employer’s perspective pay is a powerful tool for furthering the organization’s strategic goals” (p. 486). Several reasons support this claim.

First, “pay has a large impact on employee attitudes and behaviors” (p. 486) In other words, pay “influences the kind of employees who are attracted to (and remain with) the organization and it can be a powerful tool for aligning current employees’ interests with those of the broader organization” (p. 486). Second, “employee compensation is typically a significant organizational cost and thus requires close scrutiny. ” (p. 486). Pay is also important from an employee perspective. Noe et al. , state, “pay is often considered a sign of status and success” and as such “… pay decisions must be carefully managed and communicated” within the organization (p. 486). Base pay as a percentage of total pay

Harrison Corporation is attempting to fill the five positions of regional manager, marketing analyst, business development specialist, product development specialist, and customer service specialist in its Central American based counterpart. To do so the organization must take into consideration the type of rewards that should be included with these positions. To determine this, Harrison Corporation must first determine what percentage of the total pay for each position will make up the base pay. As the Harrison Corporation human resources staff begins to determine what the base pay should be, they have to take into consideration a few important points. The first point is the importance of pay to recruit and retain the best quality employee. “Pay is also often considered a sign of status and success.

Employees attach great importance to pay decisions when they evaluate their relationship with the organization. Therefore, pay decisions must be carefully managed and communicated,” (p. 487). The second point is that decisions about how pay structure are divided into two sections, pay level, and job structure. “Pay level is defined here as the average pay (including wages, salaries, and bonuses) of jobs in an organization. Job structure refers to the relative pay of jobs in an organization,” (p. 487). Pay level in comparison to the market pay has an effect on the external equity of a company in how it attracts and retains quality employees. This in turn affects a company’s labor costs and its employee attitudes.

Job structure allows development of internal job evaluations, which affects the company’s internal equity, this in turn affects how company actions like promotion, job rotation, and transfers affect the cooperation among employees and the employee attitudes Often one may think that an employee’s base pay is a simple measurement of an individual candidate’s skill sets or KSAO attributes. Rather, base pay focuses more on the job position, which results in a standardized assessment of similar jobs both within the company and within the competing market. The reason for this is to promote stability and upkeep morale within the organization under the idea of equity theory.

According to Noe et al, (2008), “Equity theory suggests that people evaluate the fairness of their situations by comparing them with those of other people” (p. 487). If new staff is hired at a much higher base pay than their coworkers, it may create a sense of unfairness and resentment within the organization. Benefits packages including global considerations When a corporation is attempting to make a move into the global market, they take into consideration several factors such as market competition. Market competition is the ability to attract quality employees on a global scale and what type of benefit packages they use to attract and retain quality employees.

By setting up operations in Costa Rica, Harrison Corporation must effectively compete in a global market. They must keep their products quality, quantity, and price at a level that will bring in a good revenue stream that overcomes any investment costs. Operating costs such as labor can drive up the costs of a product; this in turn can cause Harrison Corporation to lose business. If Harrison Corporation wants to remain competitive they must ensure their labor costs are set at a reasonable level. “An organization that has higher labor costs than its product market competitors will have to charge higher average prices for products of similar quality (p. 89). In the absence of clear evidence on productivity differences, costs need to be closely monitored (Noe et al. , 2008). While taking labor costs into consideration, Harrison Corporation must still be able to provide direct compensation such as salaries, wages, and bonuses, along with indirect compensation through benefits such as health care, cost of living, and social security to their staff that will attract and retain quality staff. One of Harrison Corporation’s biggest concerns in the global market is labor market competition, which “is the amount an organization must pay to compete against other companies that hire similar employees.

These labor market competitors typically include not only companies that have similar products but also those in different product markets that hire similar types of employees” (p. 498). Organizations that remain competitive in the labor market it “… will fail to attract and retain employees of sufficient numbers and quality,” (p. 498). One tool that Harrison Corporation can use to determine the type of benefit package that will bring in quality employees is benchmarking. “Benchmarking is a procedure in which an organization compares its own practices against those of the competition” (p. 498). This can be used to compare pay structures as well.

Noe et al, (2008) note, “Market pay structures can differ substantially across countries both in terms of their level and in terms of the relative worth of jobs” (p. 498). For example, “Compared with the labor markets in Germany and the United States, markets in Slovakia and Korea provide much lower levels of pay overall and much lower payoffs to skill, education, and advancement,” (p. 498). To attract employees from higher paid countries like the United States, Harrison Corporation can use benefit packages and incentives such as “expatriate pay and benefits (like housing allowance and tax equalization) continue to be linked more closely to the home country,” (p. 499). * Incentive packages * Individual * Team Incentive Packages

Incentive pay, also known as “pay for performance” is usually given for particular performance results instead of just for the hours worked. Because incentives are not the solution to employee challenges, incentives can be a way to increase the performance of the employees. Management will decide either to provide individual incentives or team incentives. Both individual and team performance and contributions must be measurable and tied in to goal of the company to be fair and avoid conflict (Billikopf, 2006). For example, the team or individual who receives the best performance for the month will receive a gift certificate or half a day off with pay. In some instances, employers are more likely to offer tax free incentives.

Incentives can also be benefits that do not require the organization to provide, such as retirement plans, health insurance, dental insurance, stock options, paid leave, and childcare. Another incentive program is directed to customer behaviors, which have a role in motivating employees by establishing personal relationships with customers. In doing so, the process enhances customer satisfaction and consequently increasing sales. An excellent business interaction between the customers and personnel plays a major role any business environment (Employees: Types of Programs, 2008). What are the administrative issues associated with the staffing and rewards plans? Affirmative action and EEO * Disparate treatment * Disparate impact * Metrics and Measurements Administrative Issues Associated with Staffing and Rewards Plans The most common administrative issues in the United States are associated with staffing and rewards plans are affirmative action and equal employment opportunity. Other present issues are disparate treatment and impact. Companies in the United States who have staff in other countries will still need to consider the laws in the United States as well as international labor laws. Harrison creates a staffing and rewards plan for the division in Costa Rica, incorporating Costa Rican labor laws.

Affirmative Action and EEO Affirmative action laws prevent the women and minority discrimination in employment and education (Fullinwider, 2011). The measures taken to create staffing plans will incorporate affirmative action to prohibit sex or race discrimination. Furthermore, equal employment opportunity (EEO) laws are also considered so as not to discriminate using the same standards as U. S. discrimination laws. The company’s plan follows the Costa Rican Constitution of the Respect for Human Rights (U. S. Department of State, 2005). The law protects women, religious freedom, and the right to association. The Ministry of Labor enforces many labor laws.

Costa Rican labor laws do not fully protect disabled workers or national origins. Even though Costa Rican law does not protect some administrative issues, international employment organizations and unions help to protect workers’ rights. For example, the International Labor Rights Forum (ILRF), International Labour Organization (ILO), and International Movement Against All Forms of Discrimination and Racism (IMADR) all advocate for fair and humane treatment for all workers worldwide (H. G. Legal, n. d). The main goals of the organizations are to promote rights for employees and create fair working conditions. The organizations also advocate against disparate treatment and impact. Disparate Treatment and Impact

Harrison Corporation plans staffing and rewards with disparate treatment and impact as a guideline. The favorable treatment of any employee or group employees prohibits opportunities for employees hired and also for promotion. Organizations that treat employees less favorably because of race, color, religion or national origins prohibit opportunities for rewards or promotion. Disparate treatment is not tolerated in the United States and like affirmative action and EEO, Harrison plans around Costa Rican labor laws mostly around women rights and religious freedom. Again, a few international organizations will govern international corporations like Harrison of violations.

Group discrimination governed by such groups allows high standards of fair treatment. The staffing and reward program specifically outlines the criteria for staffing, rewards, and promotions to ensure protection from discriminatory acts. Such specific criteria will prohibit disparate treatment of individuals and also disparate impact upon any groups in the protected traits. The general administrative issues associated with the staffing and reward plan ensures enforcement of Costa Rican labor laws. After consult with the Costa Rican Ministry of Labor, Harrison plans to cover administrative issues by following the United States labor laws within affirmative action, EEO, disparate treatment, and impact. References

Apollo Group, (2011), “Harrison Corporation Profile”, University of Phoenix, Retrieved on January 8th, 2011 from: https://portal. phoenix. edu/classroom/coursematerials/hrm_548/20111206/ Billikopf, G. (2006). Incentive pay. Retrieved from http://cnr. berkeley. edu/ucce50/ag-labor/7labor/08. htm Fullinwider, R. (2011). “Affirmative Action”. The Stanford Encyclopedia of Philosophy (Winter 2011 Edition), Edward N. Zalta (ed. ), Retrieved from http://plato. stanford. edu/archives/win2011/entries/affirmative-action/ Employees: Types of Programs. (2008). Retrieved from http://www. incentivecentral. org/employees/types_of_programs. 1872. html Heneman, G, H. , & Judge, A, T. (2009).

Staffing organizations (6th ed). New York: McGraw – Hill. H. G. Legal Directories. (n. d. ). Employment Discrimination Law. Retrieved from http://www. hg. org/employment-discrimination-law. html Internet World Stats. (2010). Costa Rica: Internet Usage Statistics. Retrieved from:http://www. internetworldstats. com/am/cr. htm Milhauser, K. L. , & Rahschulte, T. (2010). Meeting the needs of global companies through improved international business curriculum. Journal of Teaching in International Business, 21(2), p. 78-100. National College for School Leadership. (n. d. ). National College for School Leadership. Retrieved from http://www. nationalcollege. org. k/index/leadershiplibrary/leadingschools/successionplanning/recruiting-headteachers-senior-leaders/recruitment-process/attracting-candidates. htm Noe R. ,A. , Hollenback, J. R. ,Gerhart, B. , Wright, P. M. , (2008). Human resource management: Gaining a competitive advantage. (6th ed. ). New York: McGraw – Hill. Sangeetha, K. K. , (2010). Effective recruitment: A framework. IUP Journal of Business Strategy, 7(1/2), p. 93-107 Shimko, D. W. (2000, February). Choosing a Pay Structure That Works for Your Practice. Retrieved from http://www. aafp. org/fpm/2000/0200/p30. html U. S. Department of State. (2005). Costa Rica: Bureau of Democracy, Human Rights, and Labor. Retrieved from http://www. state. gov/g/drl/rls/hrrpt/2004/41755. htm

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