Chapter 11th

Keeping employees even after they leave

and
Measuring Staffing Effectiveness and Efficiency, Calculating Staffing Costs
and Evaluating Staffing Options, Maintaining GEMS (Global Employees
Mobile and Skilled).
Recruiting Evaluation and Metrics

1 Prepared by: ZULAIKHA MAHMOOD, NUML (LAHORE CAMPUS)

 Source

 Hiring and Keeping the Best People. (1992). Harvard Business School Press – Boston ( 135 to 142)

 STRATEGIC STAFFING: A Practical Toolkit for Workforce Planning by Thomas P. Bechet (229 to 236, 237-252)

 The black well hand book of employee selection (458)

 https://www.linkedin.com/pulse/5-fundamental-questions-q5-evaluating-recruitment-process-sexton/

 STAFFING ORGANIZATIONS Seventh Edition by Herbert G., Timothy A. Judge and John D. (639-43)

 https://mobilityexchange.mercer.com/Insights/article/Attracting-and-Retaining-Globally-Mobile-Talent-6-
Things-I-Learned

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 Content
1. Keeping Valued People in Your Orbit
2. Hiring Former Employees
3. Exit Interviews
4. Measuring Staffing Effectiveness and Efficiency
5. Calculating Staffing Costs and Evaluating Staffing Options
6. Maintaining GEMS (Global Employees Mobile and Skilled).
7. Steps in developing an expatriate selection system
8. Recruiting Evaluation and Metrics
9. Benefits of HR metrics

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 Objectives
At the end of this lecture, students will be able to learn about
 Using alumni relations and informal contacts to keep departed employees in your company’s orbit
 The benefits of rehiring former employees
 Using exit interviews to uncover the root causes of employee turnover
 How to measure staffing efficiency and effectiveness both
 How staffing costs should be measured and analyzed
 How to main or manage GEMS (Global Employees Mobile and Skilled)/expatriates
 Steps in developing an expatriate selection system
 Potential options available for global assignments

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 Questions
1. For keeping the employees after they leave, what possible strategies can be adopted to retain
them?
2. If you are a manager ad have to rehire the former employees. What will you do to successfully
rehire them? What are the benefits of rehiring former employees ?
3. Why it is necessary to measure staffing efficiency and effectiveness both? And how to do it?
4. How staffing costs should be measured and analyzed?
5. Write a detail note on maintenance of GEMS (Global Employees Mobile and
Skilled)/expatriates?

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 Keeping employees even after they leave
 One of the realities of market-wise retention is that you will never be able to keep all employees particularly
the most talented, who have the greatest mobility.
 People retire.
 Keeping Valued People in Your Orbit

 Losing a good contributor is a big headache and produces nothing but negative thoughts and extra work. But don’t let those
negative thoughts color your parting with the employee. In some cases you should not even use the word parting. Leading firms
now have regular “alumni” programs that:

 • keep track of former employees;

 • maintain up-to-date, password-protected directories of former employees to which alumni have access;
 • post job vacancies and recruiting information;
 • provide free access to the firm’s latest research; and
 • host events that bring alumni together with current employees.

 For example: universities organize alumni dinners everywhere.

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 Hiring Former Employees
 “You can’t go home again” does not hold true for former employees. Just because a valued person has left your
company, don’t assume that he or she is gone for good.

 Some women drop out while their children are infants but are ready to return a few years later. Others leave for
what appear to be great career moves, only to be disappointed and disillusioned. Rehires can be a valuable asset for
your company.
 . Here are a few things you can do to increase the number of employee rehires:

 Cure the problems that made them leave in the first place..
 Keep the lines of communication open between your firm and the best of its departed
employees.
 Make re-employment as easy as possible.

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 Exit Interviews
 Most HR departments conduct exit interviews with departing employees, either directly or through
questionnaires. The aim of these interviews is to get feedback about the firm,its operations,the root causes of
turnover, and the performance of its managers from people who now have less reason to hedge or conceal their
views.
 If your company isn’t doing this or not doing it in a serious or systematic way, insist on a change.At a
minimum,an exit interview should seek answers to these questions:
 What originally attracted you to this company?
 How satisfied were you with employment here (on a 1-5 scale)?
 How would you assess your boss or supervisor (again,on a 1-5 scale on various dimensions:ability to
communicate,leadership, fairness,employee development,etc.)?
 Why are you leaving? (if the exit is voluntary)
 Would you consider applying for another job here in the future?
 How could we make this a better place to work?

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 Measuring Staffing Effectiveness and
Efficiency
 The strategic staffing process begins when you review
your business strategies and plans and identify your
most critical staffing issues. Next, you develop a
series of staffing strategies that best address your
most critical issues.

 Finally, you define a specific set of staffing plans and

actions, those that best support the implementation
of your staffing strategies.

 As soon as you begin to implement these staffing

plans and actions, you will begin to see results. Some
people will be hired and others will leave. Some
people will be promoted and others will be
transferred.

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 Measuring Staffing Efficiency
It is fairly easy to measure the efficiency of your staffing processes. Typically, efficiency is measured in terms of time, speed,
cost, or volume. Any construct that measures one of these is a measure of efficiency.
Time or speed measures
 Average time to fill an opening (all openings)
 Time to fill (external sources only)
 Time to fill (internal sources only)
 Number of jobs filled per time period (e.g., month or quarter) • Volume measures
 Average time between requisition and acceptance (or start date) • Acceptance rates
• Number of jobs filled (in total)
Cost measures • Number of candidates per source
 Average cost per hire • Number of candidates per opening
 Cost per hire per source(e.g., Internet vs. referral vs. agency) • Ratio of callbacks to initial interviews
 Cost per interview
 Cost per acceptance • Job posting response rates
 Cost per promotion • Turnover rates
 Cost per relocation

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 Measuring Staffing Effectiveness
 Efficiency measures address quantity in some way, but none of them address quality.

 What good is it to hire people quickly if those people do not have the skills that are
needed to implement your business plans or leave to take another job soon after they
come to work for you?

 Another set of measures is needed to measure the results of your staffing process fully.
Clearly, we need to have some way of measuring whether we are hiring, promoting,
redeploying, and retaining not just people in general, but the right people in particular.
 Many organizations try to define the ‘‘right people’’ (or ‘‘good hires’’) in terms of skill,
tenure, or performance. A good hire might be one who stays at least three years and
achieves higher than average performance ratings. But these proxies are difficult to define
and even more difficult to measure on an ongoing basis.

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 Measuring Both Effectiveness and Efficiency
 When you are measuring the success of your strategic staffing processes, you must
analyze both effectiveness and efficiency. Examining either of these alone is
insufficient. A process that quickly and cheaply recruits people with the wrong
skills may technically be efficient, but it is clearly ineffective.

 Tracking Progress
 The critical benefit of measurement and metrics comes not at the end of the
process, but in tracking progress along the way. If you evaluate progress measures
at key milestones, you will still have the opportunity to adjust what you are doing,
thus increasing the probability that your overall staffing needs will be met
efficiently and effectively.

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 Calculating Staffing Costs and Evaluating Staffing Options
 In many cases, it is not enough (or even possible) to simply define one set of staffing plans
that should be implemented to support the company’s business plan.

 Often, it is necessary to develop and evaluate several options that have different cost and
timing implications. In other cases, it is necessary to review staffing plans from a big
picture perspective and draw some overall conclusions before the most effective plans and
actions can be identified.

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 Step 1: Calculate Staffing Costs
 Costs must be considered when staffing plans are being developed. In some cases, it is
necessary to calculate the costs of several different staffing scenarios before the
selection of the best strategy can be made.
 There are two separate types of staffing costs that should be analyzed: the cost of
maintaining your desired workforce configuration, and the cost of making the
transition from your current workforce to that desired future state.

 Total staffing costs for any given planning period are the sum of the maintenance and
transition costs for that period.

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 Suppose that an analysis of current salary costs shows
that the average salary for individuals currently
working in the software engineers/ project manager
job category was $77,295. However, a 3.5 percent
average salary increase was also expected for the
15 Prepared by: ZULAIKHA MAHMOOD, NUML (LAHORE CAMPUS) coming year. That would raise the average salary for
this category to $80,000.
 Transition Costs
 Transition costs and other staffing related expenses that arise when your organization moves from one
workforce configuration to another during a planning period (e.g., the cost of moving from ‘‘supply now’’ to
the desired ‘‘supply then’’) must also be calculated. This typically includes the costs associated with search,
recruiting, candidate evaluation, placement, relocation, initial training, outplacement, severance, and early
retirement packages
 To calculate these transition costs, first determine the costs associated with each type of staffing action that you
plan to implement. '

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 Combine Maintenance and
Transition Costs

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 Step 2: Analyze Staffing Costs
 Often, there are several staffing plans that might be implemented to address a particular set of staffing issues.
Selecting the best approach from among these alternatives usually requires an analysis of total staffing costs.

 It is not enough to look at just maintenance costs or just transition costs, you must look at the total.

 Since transition costs are usually one-time charges and maintenance costs are ongoing, a scenario that is cheaper in
the near term might quickly become more expensive to maintain in the long run.

 Consequently, you should decide which staffing plan scenario to implement only after you have considered the
long-term maintenance costs of each.

 Remember that these decisions should not be based on cost considerations alone. Timing is also a key consideration.

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 Step 3: Evaluate Options and Draw Broad Conclusions
 This section describes various kinds of high-level conclusions and probing questions that can be derived
from the detailed staffing plans that are typically produced when the strategic staffing process is used.

 These analyses and questions are meant to provide the user with a better understanding of some of the big
picture issues and implications of the staffing plans that are developed.
 Two main categories of suggestions have been provided.
 The first set of suggestions should be applied when a single staffing plan or scenario has been developed.

 The second set should be applied when comparing one staffing plan or scenario to another (e.g., to
identify major differences between the plans).

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 Evaluating a Single Scenario
 When you are trying to draw broad conclusions from a single strategic staffing plan,
Review Initial Gaps and Surpluses: First, review your initial gaps and surpluses. Identify and focus
on those that seem particularly large.
Review Assumptions: Review your assumptions to determine the possible causes of the large gaps
and surpluses. Where necessary, revise your assumptions and rerun the model.
 Turnover. Review the assumptions that you made regarding losses.
 Planned hiring. Look at the hiring you have anticipated.
 Other staffing moves. Look at the other staffing moves you have assumed (e.g., promotions or transfers). Are they really
needed?
 Compare Supply to Demand. Look at current supply and forecast demand. Identify job categories that show a
significant increase or decrease
 Supply. Verify that your supply number is correct (e.g., that there is no double-counting and that no people are missed).
 Demand. Review your demand assumptions.
 Compare supply to demand. From an overall or total perspective, what is the extent of the change?
 Develop Staffing Plans. Once you are sure that your assumptions are realistic and appropriate, re-run the model to
update your net needs. Define staffing plans to eliminate gaps and surpluses

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 Comparing Multiple Scenarios
 When you are drawing broad conclusions across multiple scenarios, researcher suggest the
following approach.

 First, define the best staffing plans for each scenario to be considered. It is sometimes
helpful to establish one scenario as a base case and compare others to it.

 Review your results and models following the process described for a single scenario.
Once you are sure that your initial models are as accurate as possible, begin the
comparison of one scenario with another. Here are some comparisons you may wish to
consider:

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 Analyze Demand.
 Compare the overall total demand for the two (or more) scenarios.
 Calculate absolute and percent differences.
 Look for large differences
Compare Net Needs.
 Compare the total net needs under one scenario to the total net needs under another (calculate absolute
and percent differences).
 Compare row and/or column net needs as well.
 Look also for large differences in individual cells.
Compare Staffing Plans and Numbers of Actions.

22 Prepared by: ZULAIKHA MAHMOOD, NUML (LAHORE CAMPUS)

 Maintaining GEMS
(Global Employees Mobile/Expatriate)
 It is even suggested that international assignment experience has become “a ticket to the top” and executives
reported their international assignments as the single most influential leadership development experience .

 Clearly, the potential benefits of expatriate assignments for both companies and individuals are tremendous.
Proper expatriate selection will help reinforce corporate integrity, values, and culture (with the right
corporate representatives in place), improve the multinational’s return on investment (of the expensive
human capital investment), and avoid assignment failure.
 “Expatriates who remain in their assignments until the end of the term (attendance),meet the performance
standards, and adjust to the new culture (satisfaction, well-being) are considered as the most successful
ones”. Also, selection instruments with predictive validity in the domestic context may have less predictive
power in international selection procedures due to the very specific requirements of an international job,
such as language proficiency, adaptability, and cross-cultural awareness

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  Big Five personality characteristics also have some relationship to expatriate success and
should be considered in expatriate selection systems. Extroversion and openness seems
important.
 The process of selecting people for cross-cultural training, receiving actual training, and then
being sent abroad after successful training rather than directly selecting people for an
international assignment may reduce costs (of failure) and may shape realistic perceptions
about the foreign culture.
Steps in developing an expatriate selection system
 The process for selecting global assignees has four phases
 1)Decision making or self-selection
 2) Creating a candidate pool
 3) Technical and managerial skills assessment
 4) Making a mutual decision.

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 Phase one: Allow for self-selection
 The goal of a self-selection instrument is to help employees make a thoroughly informed and realistic decision about
a global assignment.
 This will encourage employees to critically evaluate three significant dimensions:
 1) personality and individual characteristics, 2) career issues, and 3) family issues.
Phase two: Create a pool of candidates
 From the self-selection phase, the candidate pool is created.HR will give interested employees the opportunity to
place themselves in the candidate pool database.
Phase three: Assess candidates’ technical and managerial skills
 HR then scans the database for all possible candidates that match the requirements and this list is forwarded to the
business unit making the request.
Phase four: Make a mutual decision
 An assignee, at this phase, has been tentatively “selected.” Given the high stakes often associated with a global
assignment, organizations may still want to consider offering additional opportunities for self-selection (de-
selection) or assessment (selection) at this phase.

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 Ex-employees from your own company (Externally hiring for
international assignments)
 Some companies go to great lengths to maintain a link with their alumni. These alumni are viewed as the best
ambassadors of the company and of its mobility programs. International assignments can create situations where the
companies cannot guarantee a job upon repatriation, or where assignees prefer to stay in the host location.
Carefully managing the departure of these employees and keeping a link with them leaves the door open for future
cooperation.
 Trailing spouses.
 The inability of employees’ spouses to find work in the host location is one of the greatest barriers to global
mobility. Spouses of assignees might have to stop or slow down their careers. Offering them a chance to work
during the assignment or helping them rejoin the workforce upon repatriation is a win-win scenario for assignees
and companies.

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 Older workers:
From a talent perspective, ensuring the inclusion of older workers, prolonging their
participation to the workforce, or bringing them back for specific projects is a useful weapon
in the talent strategy arsenal.

Locally Hired Foreigners

 It is not always possible to remove the barriers to mobility due to family, dual income, and
cost issues. Companies are increasingly focusing on people who have already moved.
Many locally hired foreigners are likely to be in the categories we have been discussing:
older workers who have retired and localized in the host location, and former expatriates
who left a company because they could not or did not want to find a job in their home
countries.

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 Recruiting Evaluation and Metrics

ü New hire turnover is not rare for organisations today, especially in a highly turbulent and competitive
marketplace. However, when organisations start to lose their top quality candidates to competitors early in
their tenure, it is a possible sign that something serious is going wrong.

ü Organisational effectiveness depends on the performance of a company’s human capital. To reduce the risk
of employees taking flight organisations need to evaluate their recruitment strategy.

ü . Over the course of the staffing process it is possible to develop quantitative indicators that show how
effectively and efficiently the staffing system is operating.

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 HR Metrics

 Human resources metrics are data that can help you assess whether your people activities are
generating the results you want. They also help you monitor productivity and performance of your
HR team. Recruiting KPIs (or metrics) measure how effective and efficient your recruitment
process is.

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 What to measure Benefits
• Measure outcomes not activity ü Metrics help you ensure that you
are meeting your goals and
• Develop metrics geared towards customer needs
your organization goals and ü Metrics help you focus
strategies. ü Metrics tell you where to spend
• Establish metrics to monitor key your money
ü Metrics tell you what to stop
HR Practices. doing
ü They help push continuous
improvement

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 Evaluation of staffing process: Example

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  Time to Fill = From the time job requisition was opened until the offer
was accepted by the candidate.

 Staff Resign Date: 1st October, 2014

 Recruitment Request Form: 7th October, 2014
 Offer Accept: 25th October, 2014

 Time to Fill= 18 Days

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 Time to Hire
 Time to hire measures the time between the moment your eventual hire entered
your pipeline (through sourcing or application) and the moment they accepted your
job offer. This metric indicates how fast you spotted your best candidate and moved
them across the job’s pipeline.

 opened a specific position at Day 1. Then, if your best candidate accepted your job
offer on Day 25, and they applied on Day 10, your time to hire is 25-10 = 15

 Time to Hire= Day candidate accept the offer – day candidate entered
the pipeline

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 Total Recruitment Yield Ratio

Recruitment Yield Ratio = Cv’s found suitable as per shortlisting criterion

(How many shortlisted against one Hire)
Total No. to be hired

Cv’s Found Suitable = 4000

Total No. to be hire = 8

Recruitment Yield Ratio = 4000

8

= 500

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 Recruitment Yield Ratio per source = . Total Hired . *100
(How many hired against one source) Cv’s referred from Recruitment Agency

Recruitment Yield Ratio per source = . Total Hired . *100

(How many hired against one source) Cv’s referred from Newspaper

Cv’s Referred:
Recruitment Agency = 150. Hired: 4
Newspaper = 300. Hired: 2
Recruitment Yield Ratio per source = 4 . * 100 = 2.6

(How many hired against one source) 150

Recruitment Yield Ratio per source = 2 . * 100 = .66

(How many hired against one source) 300

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 ü Though staffing costs are an obviously important concern for evaluating staffing activities.

ü The staffing cost estimates are composed of

ü (1) advertising, employment agency, and search firm fees;
ü (2) employee referral bonuses;
ü (3) travel costs for recruiter and applicants;
ü (4) relocation costs;
ü (5) recruiter salary and benefit costs; and
ü (6) a 10% add-on to approximate costs of testing, reference checking, hiring unit staff time,
administrative support, and minor expenses.

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 ü Another staffing cost metric is the staffing cost or efficiency ratio.
ü It takes into account that recruiting applicants for higher compensation level jobs might cost more, due to such
costs as executive search fees, recruitment advertising, relocation, and so forth.
ü The formula for the staffing cost ratio is

Total staffing cost ratio = total staffing costs/total compensation recruited.

ü(Total staffing cost= external + internal cost)

üExternal costs (this includes all external cost related to hiring: ATS tool, advertisements, CRM tool, job
board postings, outsourced recruiting fees, etc.)
üInternal costs (this includes labor cost of employees, benefits, etc.

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 Cost per Hire

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 Absenteeism
Some businesses use absenteeism as a measure of employee health and
wellness as it’s common knowledge that unhappy employees or those with
health or home life issues take more time off. A rate of 2.5% is typical. To
calculate absenteeism, you’ll need to add up all the missed workdays and
divide that number by the total workdays scheduled.

Absenteeism = Workdays missed ÷ Total workdays scheduled

 9 shifts, but 4 missed out.

 4/9*100
 21%

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 Recruitment and Selection Process

HR Planning
Pre-hiring Documents

Job Analysis Selection

Test Development

Job Description Assessment Center

Screening

Policy Development Competency Interview

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