Recruitment may be described as the process through which an organization or company attracts employees and stimulates them to apply for job or career opportunities in an organization. It may also be seen as a hiring process of the right kind of people with the right skills and qualification on the right jobs. Hood, et al (2014) describes that recruitment process is a two-way process as applicants make a fit assessment about the potential employers in the same way that employer makes fit assessments about the applicant. Such an initiative necessitates organizations to manage their impression for them to be considered and perceived as welcoming employees of non-traditional applicants. Most human resource managers in many organizations, therefore, face a great challenge in designing and implementing effective recruitment vehicles which will effectively attract and engage with prospective skilled and qualified employees of a wide diversity (Saini, 2014). The report will, therefore, seek to address the challenges faced I recruiting workforce with a special reference to the finance and insurance industries as our case study as well as recommend some effective strategies which can be used to address the challenges.
Nature and call for new strategies in recruitment process
Just like most organizations, the banking and insurance industries no longer post advertisements for open positions due to the inefficiency of the strategy of marketing open positions. Martín-Alcázar et al. (2012) suggest that earlier this was done by most organizations but has been abandoned with the hope of attracting well-qualified candidates and reflects wide-ranging diversity. Van Hoye, (2013) argues that human resource managers need therefore to develop a more effective and inclusive strategy and are tasked with the responsibility of creating and marketing recruitment vehicles which will effectively communicate the availability of career opportunities to diverse communities. Organizations that value diversity in the workforce are likely to be perceived as attractive to non-traditional applicants.
Major challenges faced by Human Resource Managers in recruitment process
Most human resource managers have continued to suffer in their roles as their functioning has continued to change over the years. Many companies and organizations have therefore opted to outsource some functions and especially those of conducting recruitment and assessments to third parties so that the company internal resources may be focused towards strategic issues of the company. Such an initiative has resulted due to the continued challenges experienced by the human resource managers and the department at large. The challenges causing such changes include; challenges resulting and relating to recruitment, retention and motivation employees, leadership development in the organization as well as those resulting and relating to corporate culture.
Employee’s recruitment, retention, and motivation
Research has considered employees recruitment, retention, and motivation as the most challenging issues that challenges human resource managers and departments in the modern corporate world. Based on a research conducted by the Society of Human Resource Managers, it has been reported that most human resource managers anticipate that retaining the best workforce or employees will be the biggest challenge in their profession in the year 2022 as reported by Jaidi et al. (2011). These results indicated a prediction of people seeking for new jobs and opportunities with an improvement in the economy an ideology guided by the perception that many employees holding that” grass is always greener on the other side of the street”. Employers in these industries will, therefore, need to develop new methods to attract talent in their recruitment process which can be achieved through social media platforms, posting on job boards, attending company job fairs as well as sending out company promotional mailings to generate more interest.
Employees in the modern world are looking for jobs and career opportunities which provide a better balance between employment and family life; the employee desired autonomy as well as the ability to make a difference in the organization and the society (Chami-Malaeb & Garavan, (2013)). Therefore the human resource managers in these industries should emphasize the need to search for diversity in the workforce that will create new ideas, increase the company productivity and promote a sense of equality which builds teamwork. Diversity in the recruitment of workforce can be achieved through; a constant update on the company recruitment website by taking into considerations the ease of use of the website, the usefulness and the extent to which the users or potential applicants can interact with the website. Such a measure will attract the applicant intentions to pursue a career opportunity in that organization.
The advertising materials also used to advertise job opportunities should portray the targeted audience. Research provides that black applicants showed no preference to work for organizations that depicted black workers in their adverts but showed preference to working with organizations which depicted black supervisors. Hence the managers should be cautious of the targeted audience as this will help them attract the right people for certain job opportunities as analyzed by (Chami-Malaeb & Garavan, 2013). They should also expand the requirements or list of schools used for campus recruitment since it is an effective measure to rely on recruitment sources that are targeted to a particular group of applicants.
Human resource managers should also consider the recruiter’s demographics in their recruitment as some recruiter’s characteristics may send some important signals to candidates on the extent to which an organization values diversity (Mandhanya, 2015). And lastly, they should also include the targeted recruitment sources as it is believed that the most effective plans for recruitment are the ones which include a targeted source to a particular pool of candidates the company is seeking to recruit.
Retention of workforce
Retention of employees in most organizations is becoming very challenging to the human resource managers especially in the banking industry as analyzed by Craig, (2015). The companies are therefore sometimes required to provide or offer more incentives and benefit packages which have been triggered by the constantly and increasing number of people looking for jobs or opportunities that reduce their risks during tough economic periods. Employers are therefore advised to identify their key players in the company right from the entry level to the upper level of management as well as ensuring that they take the necessary steps to ensure that they retain these individuals (Cascio, (2014)). This can be achieved through formulating a merit pay strategy for the employees, designing and implementing company projects which increase the employee's responsibilities in the company as well as providing other benefits such as some free flexible time for employees, telecommuting and technologies which also help in promoting the welfare of the employees as well as making them happy.
Employees in an organization where they are not motivated to fail to perform better in their assignments and in most cases feel disengaged in the activities of the company as analyzed by Bender et al. (2013). Such issues have greatly affected and challenged organizations as increasing number of employees are seeking for opportunities where they will feel appreciated and motivated. Motivation gives morale to employees and especially in banking and insurance industries where the work is stressful and tiresome. Human resource managers should create a workplace environment where employees are motivated by offering a positive reinforcement to employees as well as training and inspiring them to become top performers in the company. It is their role also to understand what motivates the employees and incorporate them into the compensation schemes as well as rewards systems. They should also find out the reasons why people might be leaving their jobs and address the issues appropriately.
Employee leadership development
Another concern facing and challenging most human resource managers has been the aging workforce which has necessitated the human resource managers to give a consideration to developing a succession plan for the organization in a bid to develop future leaders of the company. Girard & Fallery, (2010) argues that companies that promote leadership development as said to also have better employee retention as most employees attach their reason for leaving jobs to poor leadership in the company or in the organization. There is need therefore to these industries to invest in employee training, capacity building and development programs which emphasize on leadership and growth.
The corporate culture of an organization has also been a challenge to recruiting and retaining of the workforce in most organizations. Hajro, Gibson, & Pudelko (2017) argue that organization culture influences organizational performance in terms of customer satisfaction, their attendance, safety, the price of goods or stock and also in terms of their general productivity. Therefore it is also the responsibility of human resource managers in any organization to promote the development of organization culture. In most cases, the organizations with great corporate culture have also been found to be more financially successful than their peers and usually have a lower employee turnover and are able to recruit a top talent that fits their culture and needs.
Belias et al. (2014) argue that, if the company attracts top talents, they will provide top quality customer services; create innovative products and services that contribute to the general financial success of the company. The culture of an organization has also been said to have a relationship with hiring process which results from employee sourcing, selection, and retention. Therefore human resource managers are encouraged to promote the development of organization culture as it will significantly improve the employee retention and performance and eventually lead to increased profitability and growth of the company.
Supply, demand and goodwill factors affecting recruitment
The demand and supply of labor in an organization are regulated by the human resource managers. Bartik, (2015) in his research provides that managers should be in a position to estimate the demand and supply estimates of their companies. The company can use strategic human resource planning to access the level of skill and overall productivity within the business as improving the productivity of existing workforce is cheaper than hiring new ones. They should forecast on future demands which at sometimes is much difficult than forecasting future supply and build the relevant infrastructure to meet those demands. The managers also need to implement processes and activities with the organization which promotes employee competencies. It is also understood that organizations with the good image will always attract potential and competent prospective employees to a large extent. Good public relation and rendering public services helps in enhancing the image and reputation of the organization.
From the report findings presented in the research, it is important to note that there is increasing need to attract as well as retaining skilled and competent workforce due to the competitive job market and increasing employee demands. Organizations need to develop effective strategic recruitment and retention measures and implement them to prevent future loss of skilled labor individuals leaving their jobs to search for new and greener pastures. Employee motivation is important to retaining employees as well as developing an effective corporate culture in the organization. Training workforce is a great incentive for the growth and development of leadership in the companies. It is, therefore, the responsibility of the human resource managers to initiate and implement strategies with regard to recruitment, motivation, and retention of the workforce in their companies.
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