Describe about the Attraction and Retention for Depends on Business Success.
Success in business depends on attracting and retaining the best talent in place in the present and for the future. It is preferable to look for quality than quantity. An employer should know how to attract great employees and make them stay. Because retention of great talent translates into profits, as these employees love what they are doing and are knowledgeable (Amundson, 2007). All in all, it will result in customer satisfaction and job satisfaction. A lot of company’s resources are wasted on the employees inefficient for the job profile a company demands. Attracting here refers to the search of the talented and knowledgeable candidates for the company, and it includes the job analysis, selection, and appointment of the candidate. Retention of an employee means to make the appointed candidate stay in the organization. In this report, both the points are approached and described relevantly (Andersen, 2016).
Wal-Mart Stores Inc is a multinational retail company that operates in more than twenty-five countries. It has a chain of discount department stores, hypermarkets, and grocery stores totalling around 11,500 stores spread throughout the world. Walmart is the largest private employer globally with more than two million employees. The Human Resource Management of Walmart has a very critical job and participation in the success of the company. The HRM department of the company aims to maximize the employee performance and ultimately maximizing the sales capacity (Arthur, 2012). The HRM department of Walmart has some major components like human resource planning, job analysis and design in its strategy. With the help of these major components, the HRM department of Walmart develops an adequate workforce through proper job description and specification as per the company’s demands. After that a proper attracting applicant’s process, selection process, appointment process, rejection process, legal compliance, orientation, socialization and strategies to ensure the retaining of efficient employees are taken up by the HRM department (Bell, 2012).
Job Analysis and Design of Walmart
It is very important for a company to analyze the jobs that company has an opening in. This is done so the advertisement provided in the website should carry all the information required to find the best candidates for the company. For this, the organizational design needs to be understood, and then the job specification will be designed that will be able to find the best candidate for the job (Chi, 2007).
Organizational Design- Walmart has a hierarchical functional structure which is implemented in the job design and analysis of the organization by the HRM department of the company. The organizational structure of the company makes it easy to distinguish between the characteristics of each job which is very important to find the correct employee for the job (Edenborough, 2012). They have a clear line of authority, communication, and command in the organizational structure. Though it is sometimes difficult to judge the and clearly define the job because of the changing global demands and the company is still following it traditional organizational structure. This may lead to the uncertainty in job analysis and design (Folsom, 2008).
Methods of Job Analysis- the work-oriented and the worker-oriented job analysis are the two methods of job analysis used by Walmart. For the sales positions, the company applies the work-oriented analysis. This method is taken up by the company to provide information about the tasks and results. This method is applied by Walmart in the form of direct observations and interview of the applicants. The HRM department of the company observes the sales personnel’s activities directly (Han, 2008). To analyze the jobs of team supervisors and leaders, interviews are conducted. This method helps the HRM department of the company to establish expectable job results. When talking about the other method then the worker-oriented method of job analysis provides information on cognitive, perpetual, and interpersonal activities. To analyze the managerial jobs the company uses worker-oriented job analysis method. The company has a specific application of the worker-oriented job analysis method known as Work Profiling System (WPS) that is designed especially for the managerial positions. The company has divide its job requirements in two parts which in not sufficient to accommodate all types of job opening in the company. Thus, the HRM department should think of some more alternatives for it (Jones, 2010).
Job Description- Walmart is the largest retailer in the world with a variety of job descriptions. Its employee turnover is high, especially for the employees working on hourly basis which act as problem for the company (Kenny, 2012). Nevertheless, the company’s HRM department uses the variables as criteria for job description, and they are as follows:-
- Position- the position where the opening has created
- Function- the function of the employee at that position
- Duties- duties need to be performed by the employee
- Performance Standards- standards that the employee should maintain in his performance
- Job Factors- factors that are required in the job and applicants
- Job Knowledge- if an employee has knowledge about the job as it will increase the performance of the employee (Koedel & Xiang, 2016).
Walmart emphasizes on analytical and problem-solving skills, abilities and knowledge for the managerial positions. For sale personnel, Walmart emphasizes on job knowledge and interpersonal skills. Interpersonal skills are very important as per the Walmart’s HRM department as they directly communicate with the customers (L, Compton, Morrissey, W.J, & Nankervis, 2014).
Job Specification- Walmart has a wide collection of job specifications. But, in general, job descriptions divide into two parts essential attributes and desirable attributes. For sales positions, essential attributes are followed, and they are as follows:-
Communication skills- this skill is very important because sales personal directly communicates with the customers (Parker, 2007).
Business knowledge- an employee should have the knowledge of what business they are entering and going to work in.
Products knowledge- Walmart’s sells everything from ‘Pin to a Plane’ there it is important that the employers take all knowledge about the various products sold by the company (Paul, 2014)
Throughout the organization, these essential attributes are important for all the sales employees. All these attributes help the employee to deal with the customers, as they are one with whom the customers directly communicate. There are some attributes known as desirable attributes that are preferred by the company but do not make necessary for a sales employee to efficiently fulfil the job (Persky & Merriman, 2012). The desirable attributes specified by the company are as follows:-
Likable and sociable qualities- to be social and friendly with the customers and make the customer feel happy coming to the stores.
Multi-tasking skills- if an employee is multitasking than it will help lot to run the processes of the company (Reed, 2014).
Walmart has a huge demand of employees with the rate it is increasing its stores. Thus, it is important that the company should have a bit flexible approach in the skills required for the positions in the company.
With the changing global demands, the change in the structure of the company is also required, and that will affect the requirements of the job profile that the company wanted. Such changes are to be researched upon by the company’s HRM department.
Job analysis should be more detailed that emphasizes the exact composition demanded by the companies (Reitz, 2014).
Process of Attracting Applicants
All the company needs talented and knowledgeable employee working in there company. For attracting such talent companies use various methods. A website portal known as Walmart Careers is used for displaying the jobs available in the company across the world. It displays the opening and the job description (Robichaud, 2014). It also includes the skills and capabilities required for a particular position. One can go on this website and log in as a candidate applying for the job. A candidate has to put in the location and the field in which he wanted a job. If an opening is there then it will display the job description, minimum qualification required, and then the submission of the candidate’s resume is asked. This is the only method used by Walmart for attracting the applicants to work for the company and it is not sufficient for hiring the best talent for the company as many people are not internet savy (Rose, 2013).
Walmart is using just a single method of attracting applicants which are insufficient to attract proper talent.
Many people do not have access to internet then it will be a lost opportunity for them.
Giving a newspaper advertisement with the details about the job can help in attracting knowledgeable and talented people for the job opening (Safdar, Waheed, & Rafiq, 2015)
The Selection, Recruitment, Appointment and Rejection Process
The HRM department of Walmart uses different recruitment sources and methods fitted to various positions in the organization. The retail industry specific criteria are also used by the company in the selection process. The recruitment practices of Walmart are discussed below (Sathya & Dr.R.Indradevi, 2012).
Walmart Recruitment Practices
Recruitment Sources-the HRM department of Walmart uses external and internal recruitment sources for different positions in the company. The focus of the internal recruitment sources is on the current employees. It finds the candidates that are suitable to fulfil the opening or the new position at Walmart. The external recruitment sources are used to find the talent for the company from the labour market. The internal method of recruitment can increase expectations in the employees and if they do not get fulfilled it may affect the morale of the employees (Zhou, 2014). The different types of internal recruitment sources are used by Walmart. The most significant ones are as follows: -
The employees currently working for the company are the recruitment source for the positions like supervisory and managerial positions. The HRM department prefers to promote the hourly based sales employees to managerial positions (Bae, 2011). The HRM department of the company states that more than seventy percent of their managers started as hourly sales employees and now reached this position. For Walmart, their current employees are the biggest source of recruitments. On the job, trainees are also taken as internal recruitment source by the company. A small number of trainees working for the company like in the position in sales and marketing are promoted to take the higher positions in the department they were working in. This saves a lot of time of the company wasted in the talent hunt and training the new employees for the position. When a company takes major changes, then few people can get promoted for a period to fill in the gaps of the workplace, but when these recruitments will be sent back to their old designation then they will lose their morale and some may even feel cheated (Bais, 2012).
The Walmart company deals in various fields for them it needs external recruitment source. The following sources are mainly used as the significant sources for the company:-
Respondents to job advertisement
The company’s website is the main human portal that is being used as the Walmart external source of recruitments. The job openings are regularly posted on the website. The recruitment source provides the cost benefits to the company. The HRM department is focusing in the campuses of colleges for the recruitment process. The external market increases the cost benefits for the company. There are many applicants that have already applied for the job. The company does not deal with such applicants, and no need of extensive research need to be done (Batistic, 2015).
Recruitment Methods- as per the recruitment sources used by the company, the direct and indirect methods are the corresponding recruitment method. Under the direct method, the company directly get in-touch with the prospective employee. Like, occasionally the company goes for the campus selection. The HRM department contacts the students who might want to join the company by applying for the job opening. It is beneficial as it speeds up the recruitment process rather than waiting for the applicants (Cesario, 2015). The method enables the HRM department to apply certain criteria in the selection of students for being contacted. Like, students enrolled in business-related degree programs can be contacted for supervisory or managerial job openings. Though there is a disadvantage also to use the direct method as it limits the potential candidate’s number (Gberevbie, 2008).
When an indirect method is taken for the recruitment, then the aim of HRM department of the company is to reach out to a large population of the worker. And this method is completed by posting an advertisement about the job opening on the website of the company. The majority of Walmart resources are provided to the company by using the indirect method of recruitment. The reach of such indirect method advertisement is on the global basis, thereby creating a large-scale support for the company. Also, using indirect method tend to be cost-effective. The HRM cost is also minimum in case of Walmart, as they place the advertisement on their corporate website (Greenhill, 2010).
Selection Process at Walmart
Selection Criteria- the job position decides the selection criteria of Walmart. The basic criteria consist of training, and education backgrounds check and checking of any criminal background. For the position of hourly salesman, the company uses knowledge retention and the interpersonal skills. It is very important for the employees to have interpersonal skill for this position (Manson & Carr, 2011). This is because the sales personal directly communicates with the customer. Walmart’s HRM department also demands skills like problem-solving abilities, and conflict management skills for the position of a supervisor or managerial. They are expected to perform the job of analyzing and solving problems in the workplace (Mishra, 2013).
Methods and Techniques- most of the positions, in the Walmart are evaluated using structured interviews and job knowledge evaluation. To determine the details about the applicant’s perspective and expectations regarding Walmart structured interviews are used. The information collected from the interview helps in determining the person-job and person-organization fit (Ng, 2015). For many positions Walmart uses the personality and situational judgment test. Though theses test are normally used for finding an employee for managerial positions, and especially in the HRM department, finance, and others. The personality test helps the company in deciding whether the candidate can function as per the demand in the company’s context and nature of business. The determination of analytical and problem-solving abilities is done through situational judgement tests. These different tests given to candidate ensure the HRM department’s approach for the applicants for a position is comprehensive throughout the Walmart’s global structure (Rangriz & Pashootanizadeh, 2014).
More recruitment areas should be established by the HRM department of the company to get the better applicants for the job opening.
It is not necessary that the potential candidate is looking at the website of the company when the job opening arises, there using local advertisements methods will help in gaining a good number of potential applicants.
College going students have a fresh approach, but they lack in experience and product knowledge, thus, the company will bear the loss while a student will turn into an efficient employee. Once he becomes a professional, he will start searching for better options. Thus filling up of a bond with the students becomes helpful in retaining them for long (Scroggins, 2007).
Appointment Process at Walmart
A company has a full procedure that it follows to judge the best employee for the company. In Walmart also a well-defined procedure is applied to appoint the best candidate for the company. The company’s HRM department shortlist the three best candidates that fulfil the criteria required for the position opened in the company. The three candidates are interviewed by the panel of three and questions related to the job requirement, previous work-experiences, etc. are asked. If a candidate is liked by the panel, then they are given to fill a detailed form where there is a lot of information need to be filled (Yurtseven & Halici, 2011). Then the candidate is called for the orientation process. In orientation process, the candidate is showed few videos about the company and the expectation that the company has from the candidate. It is a three days process, and at the end of it, a module test is taken by the candidate that is necessary to be passed (Andersen, 2016). If a candidate fails to clear the module test then the whole process of orientation is repeated to make the applicant familiar with the processes of the company. A training program is held once the candidate clears the module test, and after this, the candidate is signed for the position in the company he is hired for. A written agreement is given to the employee with all the right and benefits mentioned in the agreement regarding the employee (Arthur, 2012).
Rejection Process of Walmart
The candidates those who are rejected in the online process are being informed by an Email sent through the company website. The people who get selected for the interview but fail to clear it are given a thank you note for taking part in the interview and then asked to leave (Bell, 2012). The documents and information submitted by the candidates rejected by the company HRM department is kept saved in the database of the company. This is done because in future if any candidate applies again then the data regarding the applicant are available to the HRM department of the company and they can decide whether to call the applicant again for the job interview or not (Edenborough, 2012).
Every employee has right to know his rights and benefits he is entitled to get from the company. Also, a written document that specifies the appointment of the candidate in the particular company is important for the applicant to get. This legal framework is as per the country where the store is situated. All this is known as the legal framework that is required to be fulfilled on the appointment of the employee. Walmart follows a proper legal framework while appointing the employee for the company (Folsom, 2008). Once the applicant gets finalized by the company he has to sign an agreement with the company, which generalize all the rights and benefits that an employee is liable to. All the facilities given by the company is also mentioned in the agreement like the break time, holidays, sick leave, overtime payment, etc. Walmart follows all the legal procedure framed for the employees as according to the country the store and the job positions. For example, if a candidate is finalized in a store situated in Australia then all the legal papers will be made as per the Fair Work Act of Australia. This is because Fair Wok Act is the legal policy for employees that safeguard the rights and benefits of the employees in Australia (Jones, 2010).
Along with this the legal department of the company manages the other compliances also, like work health and safety law obligations. The privacy clause is also added in the employee and employer agreement to safeguard the interest of the company. The Equal Opportunity Act 1984 helps in overseeing the entire recruitment and employment life. If the employee is an immigrant, then that will also be part of the legal framework and then, they will require fulfilling the details of their home country and reasons to come here and working for the company (Kenny, 2012).
A more detailed legal process is demanded each country, as the company is spread out in about twenty-five countries which make it difficult to follow all the rules of each country.
A common agreement with rights and benefits common to all the countries can be asked to be signed at starting of the employment relation.
Along with the employee’s right, the legal document should also display the employer’s right also (Koedel & Xiang, 2016).
The Orientation and Socialization Process of Walmart
Orientation Process of the Walmart
An orientation programs help an individual to understand the company and its goals better. It also helps in familiarizing the new employee with the company. The orientation process in Walmart is of three days. The first two days of the orientation programs is all about filling various papers, watching videos, and learning about Walmart (Parker, 2007). The third and the last day of the orientation program of Walmart are spent on the computers dealing with various module series. These modules are known as CBLs. Each module is about a subject which an employee has to know about. Once all the modules are done, then a quiz on the modules are taken by the employee which has to be passed if an employee fails then he can again try it till the time he gets a pass. After this, a work schedule will be given to employees, and they are to report for it from the next working day (Paul, 2014).
Socialization is very important for both the employees and the organization. Socialization helps the employee to get comfortable and adjusted with the new environment, responsibilities, and people. If an employee get adjusted with his working environment then he will give his hundred percent to the company and ultimately benefits the company (Persky & Merriman, 2012). In Walmart, it is the duty of the managers to make the employee comfortable and feel valued for the company. He introduces the company and its members to the new employee and allows him to get familiarize with the various processes of the company.
The socialization process is a very formal procedure in Walmart because of the organizational culture of the company. This provides the feeling of authority in the employee and proper and organized working procedures of the organization (Reed, 2014).
The socialization process in Walmart is very formal which make it difficult for the new employee to understand quickly. It also increases the pressure on the employee. So a bit flexible socialization process will help the employee to get quickly adjusted with the new environment.
During socialization process managers should make the employee feel valued and responsible but not pressurized (Reitz, 2014).
Walmart’s Employee Retention Programs
It is a very critical job to retain the talented and efficient employees in the company. Company like Walmart where the number employees are more than two million, then the turnover of the employees is also very high, especially in the hourly sales employees (Robichaud, 2014). To overcome this situation Walmart has come up with the following retention strategies:-
- Training and development
- Academic credit
Walmart provides the non-financial recognitions to the excellent employees like top-performing employees of all the stores. As per the business performance the bonuses are decided. Although bonus is generally for the employees working in the managerial positions of the company. To increase the employee’s morale and to fulfil the needs of the HR of the company, regular training and development is given to the employees as promotions (Rose, 2013). The company has a policy to first recruit the internal candidates to a better position then go looking for the new ones. Thus, in Walmart the hourly sale personal are promoted to supervisory and then to managerial positions of the company. Walmart is in an agreement with American Public University which provides an academic credit to the employees for the work they did at Walmart. This is the best retention strategy that Walmart has applied to retain its employees as it helps an employees to pursue a career and also climb the company’s corporate ladder (Sathya & Dr.R.Indradevi, 2012).
Every individual has a different need therefore a company manager should identify those needs and accordingly give the non-financial or financial help in the form of promotion to the employee; this will help in retaining the employees.
More form of promotions and bonuses are required to be applied on more than two million employees of the company.Training and development is good for increasing the morale of the employees but most of them does not take it as the promotion.
Thus, it is important to explain them the importance of the training and development in their career (Zhou, 2014).
For a company its employees are great assets. But in some cases the employees can prove to be a burden for the company. Thus, it is very important to select the best, talented and knowledgeable employees for the company. For this it is very important that the company attracts the most efficient candidates for the company and hire them. The point does not end with hiring the employee, it is very important to retain those employees that are assets to the company. A company has to think carefully and then design the process of hiring personals because mistakes are generally very expensive for the companies. Walmart a well-known company that owns a number of stores throughout the world follows a traditional organizational structure and design and describe the jobs according to it. This is so far working for the company, but with the changing global market and needs for how long it will work cannot be judged. It is better that Walmart should think to expand its idea of hiring employees for the company. They should explore more methods of hiring employees along with different criteria and skills in the employees to achieve new success. The HRM department works hard to get the best talent for the company to bring success to the company. To explain the whole process the example of the Walmart and it’s attracting and retention program is discussed along with some recommendations that can help the company to improve its program and earned better employees for the company and retain them for the company’s betterment. Hence, it is important for the company to attract the talent for achieving success but it is also necessary to retain them.
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