MHR Module 2

MANAGING HUMAN RESOURCES 2.
MODULE 2
RECRUITMENT, SELECTION AND RETENTION
10 Hours
Purpose and Importance of Recruitment – Sources of Recruitment – Selection Process –
Selection Techniques – Selection Errors – Orientation, Induction, On boarding and Placement.
Retention – managing Attrition, Retention Strategies.
PURPOSE AND IMPORTANCE OF RECRUITMENT

What is Recruiting?
Recruiting is the positive process of identifying, interviewing and hiring employees for jobs.
When more people apply for a position, there will be more opportunities to hire the right
candidate. This is also why diversity is important in the recruitment process.
On the other hand, job seekers are seeking organisations that might employ them. Recruitment is
a linking activity that connects people who are employed and those who are looking for a job. In
simple terms, recruiting is the process of identifying sources from which potential workers may
be chosen. Higher productivity, better pay, good morale, lower labour turnover, and a better
reputation are all benefits of a scientific recruitment process. It encourages people to apply for
employment, which is a positive process.
Purpose and Importance of Recruitment

The purpose of the recruitment process is rather elaborate. From acquiring new talent to
continuity of business activities, the importance of an effective recruitment process never
ceases.
1. Determines the Present & Future Requirements

The recruitment process assists a company in evaluating its present and future staffing
requirements. It conducts a methodical examination of company operations to determine the
right number of recruits necessary.
2. Prevents Disruption of Business Activities

The process of recruitment ensures that the daily activities of your organisation are carried out
seamlessly. It provides businesses with all necessary human resources regularly for various job
positions. The recruitment process selects individuals from a variety of backgrounds to meet the
organisation’s needs.
DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 1

MANAGING HUMAN RESOURCES 2.3
3. Increases Success Rate of Hiring

This approach is effective in stimulating the success percentage of the company’s selecting
process. It analyses all the job applications to minimise the frequency of unqualified and
exaggerating candidates. Only qualified employee’s applications are advanced to the next stage
of the recruitment process.
4. Expands Talent Pool

The goal of recruitment is to create a wide pool of qualified candidates from which one has to
choose the most qualified individual for the job. This approach draws big groups of individuals
and encourages them to apply for open opportunities in a company.
5. Cost-Effective
It focuses on minimizing total costs and time spent on finding suitable employees. Recruitment is
a well-organized and methodical approach in which a large number of people are given a
detailed description of a job opening. A good job description attracts a large number of people at
a lower cost.
6. Improves the Credibility of the Organisation
A business organisation’s reputation is bolstered by a strong recruitment process. It assesses the

validity of job openings and reflects the professionalism and authenticity of the company. The
adoption of a good application method by a company organisation will aid in increasing the trust
of job applicants. This, in turn, attracts the attention of highly qualified applicants for your
company.
SOURCES OF RECRUITMENT
Whenever there is a vacancy in the organization, generally it is to be filled. To make the
candidate available for filling those vacancies, their selection procedure and placement on a
proper job comes under the purview of recruitment.
As soon as the available vacancies are known, they are advertised through different media and
accordingly the applications are collected for the vacant posts. A group of candidates interested
in doing the job and are eligible to do, it is created through recruitment.
It is an operative function of human resource management coming under the managerial function
called organizing. In the words of Edwin Flippo, ‘recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the organisation’.

In short, it involves attracting and obtaining as many applications as possible from eligible job
seekers.
Sources of Recruitment:
The eligible and suitable candidates required for a particular job are available through various
sources. These sources can be divided into two categories, as shown in Figure 5.5.
Internal Sources of Recruitment:

1. Promotions:
The promotion policy is followed as a motivational technique for the employees who work hard
and show good performance. Promotion results in enhancements in pay, position, responsibility
and authority. The important requirement for implementation of the promotion policy is that the
terms, conditions, rules and regulations should be well-defined.
2. Retirements:
The retired employees may be given the extension in their service in case of non-availability of
suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may be called back, and higher
wages and incentives can be paid to them.
4. Transfer:
Employees may be transferred from one department to another wherever the post becomes
vacant.

5. Internal advertisement:
The existing employees may be interested in taking up the vacant jobs. As they are working in
the company since long time, they know about the specification and description of the vacant
job. For their benefit, the advertisement within the company is circulated so that the employees
will be intimated.
Benefits of Internal Sources of Recruitment:

1. The existing employees get motivated.
2. Cost is saved as there is no need to give advertisements about the vacancy.
3. It builds loyalty among employees towards the organization.
4. Training cost is saved as the employees already know about the nature of job to be performed.
5. It is a reliable and easy process.
Limitations of Internal Sources of Recruitment:

1. Young people with the knowledge of modem technology and innovative ideas do not get the
chance.
2. The performance of the existing employees may not be as efficient as before.
3. It brings the morale down of employees who do not get promotion or selected.
4. It may lead to encouragement to favouritism.
5. It may not be always in the good interest of the organization.
External Sources of Recruitment:

1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available through this
source. It gives publicity to the vacant posts and the details about the job in the form of job
description and job specification are made available to public in general.
2. Campus interviews:
It is the best possible method for companies to select students from various educational
institutions. It is easy and economical. The company officials personally visit various institutes
and select students eligible for a particular post through interviews. Students get a good
opportunity to prove themselves and get selected for a good job.

3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and agencies get
commission in return.
4. Employment exchange:
People register themselves with government employment exchanges with their personal details.
According to the needs and request of the organization, the candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and time and conducted for
selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites on
which candidates upload their resume and seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the human resource managers try to get the
employees working in the competitor’s organization.
Benefits of External Sources of Recruitment:

1. New talents get the opportunity.
2. The best selection is possible as a large number of candidates apply for the job.
3. In case of unavailability of suitable candidates within the organization, it is better to select

them from outside sources.
Limitations of External Sources of Recruitment:
1. Skilled and ambitious employees may switch the job more frequently.
2. It gives a sense of insecurity among the existing candidates.
3. It increases the cost as advertisement is to be given through press and training facilities to be
provided for new candidates.
SELECTION PROCESS

Selection is a long and tedious process. Every candidate has to pass through several hurdles
before he/she can get selected for job. The whole exercise might be called a rejection exercise
but it has a positive outcome in terms of the appropriate personnel selected
Selection process involves the following steps:
STEP # 1. PRELIMINARY INTERVIEW:

It is the first step in selection. Initial screening is done in this step and all the undesirable
applicants are weeded out. This interview is generally conducted by lower-level executives. It is
a very important step as it shifts out all the unqualified, not desirable applicants and the HR man-
ager can then concentrate on the other applicants without wasting time. The candidates are
generally told about job specifications and the skills required for it. This process screens the most
obvious misfits.
STEP # 2. SCREENING OF APPLICANTS:

These days application forms of almost all organizations can be downloaded from the website or
may even be provided on request. The form asks for basic things like educational qualifications,
experience, age etc.
Once the filled application is brought to the screening committee, it checks the details and calls
the candidate for selection test. The purpose of this screening test is also to read out the best
suitable candidates as spending time on them means waste of money.
STEP # 3. EMPLOYMENT TESTS:

Employment tests are device to check the areal knowledge of candidates for the respective jobs.
These tests are very specific as they enable the management to bring out right type of people for
the jobs.
The following tests are given to candidate in most cases:
(a) Intelligence Tests:
They test the mental ability of candidates. These tests measure the learning ability of candidates
in understanding questions and their power to take quick decision on crucial points. People who
are able to quickly answer to these questions are found to be skilful and can be offered training to
improve skills for the job in organization.
(b) Aptitude Tests:
They test an individual’s capacity to learn a particular skill. There are mainly two types of
aptitude tests. Cognitive tests which measure intellectual, mental aptitudes. The second one is
called motor tests which check the hand – eye coordination of employees.
(c) Proficiency Tests:
These tests are also called performance or occupational tests. They determine the skills and
knowledge acquired by an individual through experience and on the job training.
They are of 4 types:
(i) Job knowledge tests – These tests are used to judge proficiency in operating mechanical
equipment, dictating, typing, computer applications etc. These tests can be written and practical
both. These tests are good in selecting typists, stenographers with supervisor etc.
(ii) Work sample tests – In this test the applicant is given a piece of work to perform in a
stipulated time. His performance will judge whether he can be picked up for the job.
(iii) Personality tests – These tests judge the psychological makeup of any person. These tests
check a person’s motivational level, emotions, integrity, sympathy, sensitivity etc. These traits in
an individual provide the manager with an overall picture of his personality.
(iv) Simulation tests – In this test many situations which an employer will have to face in the
job will be duplicate and the candidate will be asked to face the problem. These tests are
generally used for recruiting managers in the organization.
STEP # 4. SELECTION INTERVIEW:

Interview is an examination of the candidate where he sits face to face with the selection body
and answers to their information given by the candidate about his abilities and the requirements
of the jobs.
Interview gives the recruiter an opportunity to:
(a) Assess subjective aspects of the candidate.
(b) Know about his enthusiasm and intelligence.
(c) Ask questions which were not a part of his application.
(d) Obtain as much information from him as possible about his economic, social and cultural
background.
(e) Give facts about the policies, procedures, culture of the company so that he feels good about
joining it.
Designing and Conducting Effective Interviews:
Utmost care has to be taken while designing and conducting the interviews, otherwise, they
become in-effective.
In creating structured situational interviews, these steps need to be followed:
Step 1 – Make thorough job analysis – There should be a thoroughly prepared job description
with a list of job duties, required knowledge, skills, abilities and other worker qualification.
Step 2 – Rate the job’s main duties – Identify job’s main duties. Rate each job duty based on
its importance to job success and on the time required to perform it compared to other tasks.
Step 3 – Create interview question – Some questions should be situational, while some should
be behavioural, they all should be based on actual job duties with more questions on important
duties.
Step 4 – Create benchmark answers and a rating scale for each – An ideal answer may be
given the rating of 5 on a 5-point scale whereas, an average answer 3 marks and a poor one just 0
mark.

Step 5 – Appoint the interview panel and conduct interviews – Employers conduct interview
generally with a panel consisting of talented and skilful interviewers from the company. They
review the answers and rank the candidate accordingly. They indicate where the answers of the
candidate fall marginally short of bench mark and where they are ideal or good. They may
follow-up the panel discussion with interview for some good candidates.
STEP # 5. CHECKING OF REFERENCES:

Once the candidate’s interview is over, the reference he had mentioned are checked by the
personnel department. His old employers may be asked some quick questions on phone about the
candidate’s behaviour with co-workers, management etc. Further his/her regularity at work and
his character can also be inquired about from other references.
STEP # 6. MEDICAL EXAMINATION:

After a candidate has been approved for the job, his physical fitness is examined through medical
specialists of the company. If the report says that he or she is medically fit for the job they are
then finally selected. In case there is a problem with the fitness, the candidates are given reasons
for rejection.
STEP # 7. FINAL SELECTION/HIRING:

The line managers are then asked to give final decision after all technical and medical tests are
cleared by the candidate. A true understanding between the line manager and the HR manager
facilitates good selection. Therefore, the two together take final decision and intimate it to the
candidate. The HR department may immediately send appointment letter to the selected person
or after some time as the time schedule says.
SELECTION TECHNIQUES
The process of hiring a new employee is harsh and resource-intensive. Many competing interests
are vying for the attention of every good candidate. At the same time, your organization must
identify high-quality candidates from a sea of less qualified applicants.
Thus, your company must establish a process whereby you can filter applicants, identify the most
promising candidates, and assess them accurately. Only then can you be assured that you’re
hiring the best available candidates for any given role.
Your employee selection process needs to have several qualities.
 It needs to be comprehensive. Blind spots in evaluation can lead to sub-par employees,

off-target choices, undue expenses, and poor outcomes.

 It needs to be nuanced. Making a critical business decision based on partial or

generalized information leads to poor choices.
 It needs to be tailored to the positions you’re looking to fill. The selection process for
entry-level data entry clerks is very different from a senior-level developer or HR
manager.
There are many tools and resources available for use in the candidate selection process. You
might, for example, hire a contract recruiter to handle your recruitment. You might use a heavily
automated applicant tracking system to do resume filtering. You might invest in varying
channels for marketing your job posting. And, of course, your employees can be a resource
through referrals and recommendations.
Because the employee selection process is so critical to business success, we’ve compiled a list
of 13 of the most valuable techniques, with an analysis of their pros and cons—choosing which
of these to implement and when is vital.
1: Cognitive Ability Assessment
Cognitive assessments test the candidate’s mental acuity and ability to learn. They can include
anything from logic tests to pattern recognition and more. They are common after studies have
shown that cognitive ability is one of the top influencing factors in job performance.
“Knowing a candidate’s cognitive ability is important for jobs at every level in all kinds of
industries. It can predict how well a candidate will pick up on the training materials, how they
will understand instructions, how efficiently they’ll be able to solve problems throughout the
workday, and how easily communication will come to them.” – Harver.

The pros of this method include the correlation between assessment and performance and the
ease of automatically administering and judging a well-designed test.
On the other hand, cognitive assessments can have a suppressive effect on candidates who don’t
feel the test is worth the role. They can also be biased and introduce adverse impacts in your
hiring process.
2: Job/Role Knowledge Assessment
Like cognitive assessments, a job knowledge assessment is a test designed to evaluate the
candidate’s knowledge of the role. These tests need to be tailored to the position. For example,
when hiring a developer, you might ask questions about the programming language, system
architecture, or software your company uses.
These are excellent tests to evaluate the skills and knowledge of a given candidate. However,
they must be tailored to the role, which means large companies may need dozens (if not
hundreds) of different tests for different positions at different levels within the organization.
3: Personality Assessments

Personality assessments are tests administered to evaluate a candidate’s character and traits.
These tend to be most common for entry-level roles, where skills are trainable, and experience is
not required, but personality and character are more critical.
Personality assessments are often too generic and don’t correctly assess traits relevant to the role.
Also, similar to cognitive assessments, they can introduce adverse impacts in your hiring
process. However, when used properly, they can successfully filter for high-quality candidates.
4: Learning Agility Assessments
Learning agility is the ability of an individual to learn, unlearn, and relearn tasks and skills in an
ever-changing digital world. It is becoming more and more critical as the development of
software, technology, and tools accelerates. These tests assess how capable a candidate is of
adapting to changing situations and learning the skills necessary to succeed without hand-
holding.
While these assessments can be very potent, they are most relevant in fast-paced industries and
roles and less so in low-level positions or slow-moving organizations. They can also be highly
challenging to develop and administer in a way that gets tangible results.

5: Past Performance Analysis

Some say that the best predictor of future performance is past performance. Thus, analyzing a
candidate through the lens of their previous experience in related or identical roles helps you
determine how well they will perform in your organization’s similar role.
Experience alone is not enough. Performance must be considered. Additionally, this kind of
analysis works best on mid and high-level roles. Entry-level roles typically don’t require
previous experience, so filtering for it can eliminate good candidates.
6: Sample Assignments
In many roles, the best way to determine how well a candidate can perform in your position is by
asking them to perform. A developer might be given a task to create an app or fix a bug, or a
writer might be asked to write a sample piece. Perhaps a sales agent is tasked with selling to an
interviewer. These allow you to see first-hand how the employee performs in the tasks you’ll be
asking them to perform.
Many companies use uncompensated sample work as a way to get free labour. Sample work can,
however, suppress certain applicants, particularly if they distrust your company. Also, when
administered too early or take too long, candidates may choose to look elsewhere rather than
jump the hurdle.
7: Structured Interviews
In many organizations, the interview process is informal, a free-form assessment from a skilled
interviewer, manager, or HR representative meant to get an impression of the candidate in
person. Unfortunately, these are unscientific and rarely effective.
Meanwhile, a structured interview uses the same set of questions, the same structure, the same
format for each candidate who reaches the interview stage. This process is graded
objectively using a scorecard for a more scientific and rigorous evaluation of each candidate.
8: Physical Fitness Assessments

A physical fitness assessment tests how well a candidate can perform physical tasks, such as
lifting weight or endurance running. They are virtually required for some roles but are largely
irrelevant for most current positions within a company. As such, they are not recommended
unless the fitness requirements are genuinely required to perform the job’s duties.
The primary drawback to a physical assessment is that the test can be deemed discriminatory if
the fitness requirements are not truly necessary.
9: Peer Interviews

Peer interviews are a style of an interview conducted, not by a department head or HR manager,
but by the team the prospective employee would be working with.
Peer interviews can give deeper insights into how well a candidate fits with company culture,
how well they know their role rather than studying for an interview and assessment, and how
well they mesh with the others in the office.
“Potential pitfalls are that it’s necessary to train the interviewers to be sure they ask the right
questions. It can also be distracting, sometimes getting in the way of daily responsibilities.” –
Harver.
Of critical importance is ensuring that your interviewers do not ask the wrong questions. There
are many protected categories of information, both on a federal level and at various state and
local levels. Asking inappropriate questions and using the answers to make a hiring decision can
open your company up to legal action.
10: Reference Checks
Some view the requirements for candidates to list personal and professional references as part of
their application as outdated. In a vast majority of cases, the references are never contacted.
However, it may be worthwhile to use references as part of your candidate screening process.

The trick to talking to references is asking open-ended questions that encourage the contact to
speak at length. You can use the answers to better judge the skills, character, and potential
pitfalls of the candidate.
The primary downside is that references are often less professional and less put-together than
candidates attending interviews. They may also be biased, as with friends and family references,
and may not accurately represent the candidate. And, of course, interviewing references is time-
consuming, meaning it should be limited to only your most likely candidates.
11: Temp-To-Hire Contracts
One way to assess whether or not a potential employee can do the job is to hire them to do the
job. While this may sound counter-intuitive, temporary contracts allow you to put the candidate
in the deep end immediately, with the understanding that their contract will be renewed or
converted into a full hire if they perform adequately. Since the risk is somewhat lower than a full
hire and subsequent termination of a poor choice employee, temporary contracts allow more
flexibility to assess a candidate over a more extended period.

The primary downside is that you will still need to process some level of assessment before
hiring for a temporary contract. Additionally, the contract period necessitates a lengthy
evaluation period before deciding. Some smaller and more agile companies will not want to
invest in these things.
12: Sample/Portfolio Evaluation
Many roles, such as designers, artists, developers, writers, and other object-oriented and creative
careers, find employees developing portfolios of their past work. These portfolios include
samples designed or tailored to be relevant to the company, niche, or role the applicant is
interviewing for. Thus, it can be representative of the quality of work done by the candidate.
Reviewing their portfolio, analysing the quality of their work with the help of someone
technically proficient in the same work, and making a judgment based on past work is a great
way to assess a candidate.
However, this type of assessment only works for roles where the employee is likely to produce
samples, though some positions can be flexible with case studies and reports on past work. Some
roles, however, have no way to distill past work into a portfolio or sample.
13: Automated Filtering
Modern software offers companies the option to use machine learning to scan through resumes,
applications, and other relevant documentation to evaluate and filter a candidate pool
automatically.

This option is in its relative infancy as a technology. As such, it has many drawbacks. It can be
tricked if the applicant knows what keywords to use in their documentation. It can be biased –
whether inherently by the training data or implicitly by past hiring practices. It also offers little
rationale or nuance in its decisions, as explaining the inner workings of an algorithm is complex.
For those reasons, automated filtering is best left for “unskilled” labor positions, entry-level
positions, and bulk positions where nuance isn’t as important.
Properly Evaluating Candidates
The complete process of evaluating candidates varies depending on the situation, role, company,
niche, organization, budget, technology, and more. Every company must develop its process
using the tools available to them, internally and externally, within their budget.
“Properly identifying and implementing formal assessment methods to select employees is one
of the more complex areas for HR professionals to learn about and understand. This is because
understanding selection testing requires knowledge of statistics, measurement issues and legal
issues relevant to testing.” – SHRM Effective Practice Guidelines.
There’s no one-size-fits-all approach to employee evaluation. Every screening process, from

resume filtering to interviews, must be tailored to the role you’re trying to fill. The process that
works for entry-level employees won’t work for directors or executives. However, at every level
of an organization, the company must hire the best available candidates. Identifying those
candidates is critical.
There is no perfect strategy, so the typical hiring process involves multiple layers of assessment,
screening, and interviews. When the cost of a poor hiring decision is high, off-target assessment
is hugely detrimental.
The key, then, is not just to implement a multi-layered hiring approach. It is to implement that
approach, with appropriate monitoring of key performance indicators along the way, to
determine which elements of a process work on a short-term and a long-term basis. Only then
can a company rest assured that it has a process in place to choose the best candidates from a
pool.
SELECTION ERRORS
If you’re having trouble placing candidates or your recruitment process isn’t running as smoothly
as you would have hoped, it may be time to take a step back and assess what exactly is going
wrong. Sometimes even the smallest of changes can make a world of difference, so it’s worth
taking the time to identify areas for improvement.
There are a few common blunders that recruiters commonly make, which can result in costly
hiring mistakes, failure to capture the attention of the best employees, and a negative reputation
as a recruiter and organization. Here are a handful of some of the top recruiter mistakes:
1) A lack of organization
Planning and organization are critical to the fluidity of your hiring process and is often
overlooked by recruiters. Failing to plan can create problems such as overspending, lengthy
hiring processes, making hasty hiring decisions, and providing a poor candidate experience.
Having a clear plan and hiring strategy in place will help you stay on track and within a set time
frame.
2) Poor communication
This is one of the top pet peeves that candidates have about recruiters. The candidate
experience can have a huge impact on your employer brand and keeping them in the dark about
the progress of their application doesn’t reflect well on the organization. It’s important to keep
the candidate in the loop at all stages of the process and all candidates who have been
interviewed deserve to receive feedback, even if you do not wish to offer them the role.
3) Not providing feedback

Job hunting can be an incredibly stressful experience, and no one wants to receive a dreaded
rejection letter. However, the one thing worse than receiving a rejection is hearing nothing back
at all after an interview or not knowing where they went wrong. If a candidate has taken the time
to go in for an interview, then the least you can do is get in touch to let them know if they have
been unsuccessful and why, so they can then move on and learn from their mistakes.
4) Not acknowledging applicants

It’s understandable that some companies can receive dozens, if not hundreds of applications for
one position, making it difficult to make contact with every single candidate. However, failing to
acknowledge applicants entirely won’t reflect well on the organization and the candidate will be
less likely to recommend or offer future customers to a business who they didn’t hear anything
back from

5) Not focusing on your employer brand

Talent attraction is a lot like marketing. In order to entice the best candidates, you must create an
effective employer brand that promotes your organization as a great place to work. Most
candidates will research a company before applying for a job there, so it is important that you
have a good social media presence and website that demonstrates all of your best qualities. They
key to a great employer brand is engagement and transparency, so keep this in mind when you
share brand messages.
6) Looking for the perfect candidate

The chance of you finding a candidate that fits the bill in every single way is slim, so continuing
a hunt for the ‘perfect’ candidate is pretty pointless. You have to be prepared to reconsider
certain factors when you find somebody who could potentially do a great job, even if they fall
short in one or two areas. They can probably bring things the job that you hadn’t even thought
about until you interviewed them, so it’s good to keep an open mind.
7) Ruling out overqualified or under-qualified candidates

A lot of recruiters take one glance at a candidate’s CV and make the immediate decision that
they are either over or under qualified for the role without giving them a proper chance. It’s
generally thought that overqualified candidates won’t stick around for long, will become bored,
or will be too expensive and are therefore ruled out. However, they could benefit the business
greatly with the experience and knowledge they have. On the other hand, candidates are also
frequently rejected on the basis that they are under-qualified. However, those as the beginning of
their career are often the hardest workers looking to impress.
8) Not hiring for culture fit

Though skills and abilities are important factors when hiring a new employee, it is also important
that they fit in with your company culture and the rest of your team. When making hiring
decisions, think about the type of personality the individual has and whether or not you think
they would suit the working environment, as a bad hire could lead to poor team dynamics and a
quick turnover of staff.
ORIENTATION
DEFINITION OF ORIENTATION
Employee orientation is about introducing new employees to the workplace which includes their
job responsibilities, their team members, departments and so on. The idea is to make them feel at

home, make them aware of the company policies and familiarize them with the new role and
people they will work with.
WHY IS EMPLOYEE ORIENTATION IMPORTANT?

Employee orientation sets the first impression on your new employees. It's like a trailer you play
for the new employees, telling them how their life at work would be. An effective orientation can
significantly help in reducing employee turnover at your company. Both the company and the
employee can reap the benefits of a good orientation.
The orientation will convey the expectations and responsibilities to the new employee, helping
them set the course for their work. It will get them started on any training and certification
necessary for their work, which helps them get productive at the earliest.
Your orientation program should answer questions that your new hires may have about their
roles and responsibilities, company policies, or anything about the workplace.
WHAT SHOULD YOU INCLUDE IN YOUR EMPLOYEE ORIENTATION?

The aim is to make your employees feel welcome and help them get started effectively. Here are
some things you can do to make them feel comfortable:
 Ensure that the new hires get their laptops, phones, email addresses, and other logins on
their first day itself, with proper instructions and demo, so they can get productive on the
get go.
 Take care of the paperwork way ahead of their first day. Ensure that you have the right
tools in place that can collect all the necessary signatures and documents beforehand.
 Set aside a welcome kit, with freebies such as T-shirts, Mugs, key chains, notebooks and
other stuff that is quirky and useful, and makes them happy. If possible, set aside time for
a welcome lunch outing with all the team members.
 Assign a mentor or a ‘Buddy’, who can be the go-to person for the new hire. They can
introduce them to the team members, show around the office, introduce them to the
company lingo. This will give your new employees an understanding of the company
culture.
 Ensure that the managers take time to interact with the new joinees. Let them know what
their responsibilities are, and how it contributes to the company goals. At the same time,
ensure that you understand their personal goals, and design a plan that aligns them with
the company.
WHAT ARE THE ORIENTATION RESPONSIBILITIES?

Orientation requires cooperation between individuals in the HR unit and other managers and
supervisors. In a small organization without an HR department, such as a machine shop, the new
employee’s supervisor or manager has to take the total responsibility for orientation. In large
organizations, managers and supervisors, as well as the HR department, should work as a team in
employee orientation.
PURPOSES OF ORIENTATION
Employers have to realize that orientation isn't just a nice gesture put on by the organization. It
serves as an important element of the recruitment and retention process. Some key purposes are:
To Reduce Startup Costs Proper orientation can help the employee get "up to speed" much more
quickly, thereby reducing the costs associated with learning the job.
To Reduce Anxiety Any employee, when put into a new, strange situation, will experience
anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce
anxiety that results from entering into an unknown situation, and helps provide guidelines or
behavior and conduct, so the employee doesn't have to experience the stress of guessing.
To Reduce Employee Turnover
Employee turnover increases as employees feel they are not valued, or are put in positions where
they can't possibly do their jobs. Orientation shows that the organization values the employee,
and helps provide the tools necessary for succeeding in the job.
To Save Time For Supervisor & Co-Workers
Simply put, the better the initial orientation, the less likely supervisors and co-workers will have
to spend time teaching the employee.
To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction It is important
that employees learn as soon as possible what is expected of them, and what to expect from
others, in addition to learning about the values and attitudes of the organization. While people
can learn from experience, they will make many mistakes that are unnecessary and potentially
damaging.
INDUCTION
MEANING
Induction is the process of introducing a new employee to the company culture and processes
with the aim of bringing them up to speed as quickly as possible as well as making them feel
socially comfortable and aware of their professional responsibilities. Companies will typically
have an induction programme in place and follow the same processes for all new hires, although
the induction process may vary depending on the industry, the job role and the seniority of the
new hire.
The important characteristics of induction are:

(i) Encouraging employees to ask questions.
(ii) Including information on both technical and social aspects of the job.
(iii) Making the new employee’s manager responsible for the orientation.
(iv) Avoiding embarrassment to the new members.
(v) Arranging formal and informal interaction with managers and peers.
(vi) Providing relocation assistance such as house hunting, information about the local society,
and etc.
(vii) Giving information about the company’s products, services and customers.
(viii) Familiarizing adequately with the culture of the organization such as how work is done,
what matters in the organization, which work- related behaviours are acceptable or unacceptable
and etc.
MAIN OBJECTIVES OF INDUCTION
The main object of induction is to make the new employee feel at home and develop a sense of
pride in the organization and commitment to the job.
The following are the some of the other important objectives:

(i) To help the new employee to develop a close and cordial relation with the existing employees.
(ii) To give the new employee necessary information such as – location of the different building,
company rules, leave rules, rest periods etc.
(iii) To help the new employee overcome his natural shyness and nervousness in meeting the
new people in the organization.
(iv) To develop a sense of belongingness and loyalty among new employees.

(v) To help the employees know the different facilities and opportunities available in the
organization.
(vi) To help the new employees to minimize the “reality shock” that they may undergo after
reporting to duty.
ON BOARDING
What is Onboarding?
Onboarding is a human resources industry term referring to the process of introducing a newly
hired employee into an organization. Also known as organizational socialization, onboarding is
an important part of helping employees understand their new position and job requirements. It’s
the process that helps them integrate seamlessly with the rest of the company. There are many
activities that go into the onboarding process, from the job offer to team training. Onboarding
may last anywhere from a few weeks to a year, but the most effective onboarding usually lasts at
least a few months. Ideally, employees will feel confident and competent when the onboarding
process is complete.
What Are Onboarding Activities?
Onboarding consists of multiple individual processes; however, it has no official definition and
opinions still vary as to which processes fall under the umbrella of onboarding., onboarding can
include the following:
 Job offers
 Salary negotiation
 New hire paperwork
 Policy and culture training
 Job training
 Employee handbook training
 Benefits paperwork
 Benefits education
 Facility tours
 Executive introductions
 Team introductions
What Is the Onboarding Process for a New Employee?

One thing HR professionals generally agree on is that onboarding begins the moment a candidate
accepts a job offer and ends when a new employee is fully integrated and performing as
expected. Whether or not an organization provides all of the onboarding elements in the list, it’s
a wise investment to provide all new employees with a thorough, efficient, and consistent
introduction to their new organization.
Research shows that the quality of onboarding experienced by new employees dramatically
impacts engagement, performance, and longevity, among other factors. The best onboarding
processes will include relational onboarding, which includes:
 Setting expectations
 Building relationships with other employees
 Creating confidence and trust
 Creating a clear definition of roles and boundaries
Starting a new job can be overwhelming, and onboarding is most effective when it is spread out
over time. This allows employees to better retain information by giving them time to process
everything and ask questions as needed.
How Long Does Onboarding Take?
There is no strict rule about how long onboarding a new employee should take. However, it’s
important to be thorough in this process if you want to maximize employee engagement and
minimize employee turnover. Many companies have an onboarding process that lasts only a
month or a few weeks, which risks new employees feeling overwhelmed with their new
responsibilities and not connecting with the rest of the company.
Many HR professionals recommend that an onboarding process should last about 90 days, while
some professionals recommend extending the process for as long as a year. This ensures
employees have the resources they need to get to know the company, internalize their training,
and feel comfortable doing their job as expected.
AND PLACEMENT
MEANING

In the words of Pigors and Myers, “Placement is the determination of the job to which an
accepted candidate is to be assigned and his assignment to that job. It is a matching of what the
supervisor has reason to think he can do with the job demands. It is a matching of what he
imposes in strain, working conditions and what he offers in the form of pay roll, companionship
with others, promotional possibilities etc.”
The following principles are required to be observed while making placement of an

employee:
(i) Job requirement – Man should be placed on the job according to the requirement of the job
rather than qualification and requirement of the man.
(ii) Qualification – The job offered should match with the qualification possessed by an
employee.
(iii) Information – All the information relating to the job should be given to the employees along
with the prevailing working conditions. They should also be made known that they have to pay
penalty for wrong doing.
(iv) Loyalty and Co-operation – Every effort should be made to develop a sense of loyalty and
co-operation in employees to make them understand their responsibilities
PLACEMENT IMPORTANCE
1. If the employees are properly placed, they will enjoy their work and organization will not have
to suffer the problem of employee turnover.
2. If employees don’t like their work, they start making excuses from the job and remain absent.
Effective placement will keep the absenteeism rate low.
3. Morale of workers increases because they get the work of their choice, if correctly placed.
4. Workers will work attentively and safety of workers will be ensured and lesser accidents will
happen.
5. Workers will be satisfied with their jobs and there will be no reasons for disputes, so human
relations will improve.
6. Through proper placement, misfit between the job and person can be avoided.
7. Efficient and effective performance of individual tasks will ensure the achievement of
organizational goals.
8. Productivity i.e., ratio of output to input increases as wastage and abnormal losses decrease.
Placement should be done keeping into view the job and social, psychological & emotional
needs of person.
RETENTION
MEANING

Employee retention is defined as an organization’s ability to prevent employee turnover, or the

number of people who leave their job in a certain period, either voluntarily or involuntarily.
Increasing employee retention has a direct impact on business performance and success
Retention is defined as the process by which a company ensures that its employees don’t quit
their jobs. Every company and industry have a varying retention rate, which indicates the
percentage of employees who remained with the organization during a fixed period.
9 Benefits of Employee Retention
As businesses compete for top talent, employee retention is crucial. While some experts suggest
that a 90% retention rate is a good goal, the reality is, it varies across different companies and
industries. However, the ability to retain employees is universally beneficial for many reasons.
Following are nine of the top benefits:
1. Cost reduction. U.S. employers spend hundreds of millions of dollars every year
recruiting and training new workers. Those costs are sunk if an employee leaves
prematurely. Productivity, team cohesiveness and morale also take a hit — which also
has a financial impact. Total replacement costs for each employee can range from 90% of
a worker’s salary for an entry-level employee to 200% or more for tenured professionals
and leaders.
2. Recruitment and training efficiency. By focusing on employee retention, companies
reduce recruiting costs and enjoy greater returns on employee training. Recruiting costs
include fees paid to recruiters or to advertise the position, interview-related travel and
possible signing bonuses. Next comes training, which can also be costly. If the employee
leaves prematurely after being hired, that money is wasted.
3. Increased productivity. Employee turnover sets back productivity because it takes time
for a new worker to get up to speed and produce at a comparable level as their
predecessor. It also takes a toll on remaining staff, who have to take on additional work
and may produce lower-quality output as a result. Conversely, high-retention workplaces
tend to have more engaged workers who, as a result, are more productive.
4. Improved employee morale. Organizations with successful employee retention
programs foster greater connectedness and engagement, which helps morale and, in turn,
boosts retention. Conversely, a steady stream of departures has a dampening effect on
workplace morale, with side effects that include a decrease in work quality and more
workers who decide to leave.
5. Experienced employees. It stands to reason that the longer employees remain at an
organization, the more engaged, knowledgeable and skillful they are. They have also
forged valuable relationships with customers and co-workers. When an employee departs,

the company incurs an opportunity cost in the potential value the employee could have
delivered.
6. Better customer experience. Inexperienced and less adept new hires may be more prone
to missteps that negatively impact a customer’s experience with the company. Satisfied,
longer-term employees are often more skilled in dealing with customers and may have
strong relationships with them. This is as true during all the stages leading to a signed
contract as it is post-sales, when a customer might reach out to customer service. A better
customer experience can also be a key brand differentiator.
7. Improved employee satisfaction and experience. A symbiotic relationship exists
between retention and both employee satisfaction — worker happiness and fulfillment —
and employee engagement, the level of commitment workers bring to their roles.
Satisfied and engaged employees are often more likely to stay in an organization, and
organizations with high retention rates often experience greater employee satisfaction and
engagement.
8. Stronger corporate culture. Corporate culture develops over time, based on employees’
cumulative traits and interactions. When engaged employees who are aligned with an
organization’s culture stay, they strengthen the organizational ethos. A strong corporate
culture also improves productivity and performance.
9. Increased revenue. Employee retention is not just about cutting costs; anecdotal
evidence shows it can have a positive impact on revenue as well. Employers with better
retention rates deliver a better customer and employee experience, hold on to experienced
top talent and are more productive — each of which can boost growth.
MANAGING ATTRITION
MEANING
Attrition is the departure of employees from the organization for any reason (voluntary or
involuntary), including resignation, termination, death or retirement. Attrition rate is the rate at
which employees leave an organization divided by the average number of employees at the
organization over a given period of time.
9 Tips to deal with the employee attrition
By following some simple and straightforward policies one can control the attrition in their
organization. The Retention tools are as follows
#1 – Offer equitable and modest salaries

Fair compensation single-handedly will not guarantee the loyalty of the employee, but offering
wages below market makes it more likely that the employee would look for a job at some other
place. As per the research, if the incomes lag behind more than 10 percent at similar jobs in other
companies across town, the employee is more likely to bolt. To maintain the workers, conduct
reviews of the salaries regularly for all the job titles that you offer- experienced staff, entry-level
staff and supervisor level staff. Compare the salary of your department with reliable averages
that are statistical. If there are substantial differences, the company needs to consider making
adjustments to assure to stay in line with the marketplace.
#2 – Note that benefits are imperative as well

Even if benefits are not the primary reason for the employee to stick with the company, the
benefits offered by you cannot be marked worse than the ones offered by your competitors.
#3 – Train your front-line managers, supervisors, and administrators

It is very much known that people leave or stay because of their bosses and not because of the
company. A good manager-employee relationship is crucial for the satisfaction and retention of
the worker. Ensure that the managers in your organization are not driving away the technologists.
Provide them with the necessary training that is required to develop people management
skills and good supervisory.
#4 – Define the responsibilities and roles clearly

Make a formal job description for each position or title in your department. Ensure that your
employee is aware of what is expected from them on a daily basis, what type of decisions they
are allowed to make by themselves and to whom they need to report.
#5 – Offer opportunities for adequate advancement

To promote employee loyalty, implement a career ladder and ensure that employees are aware of
what they need to do to earn a promotion. To identify the strong point and weakness of the
workforces, conduct performance reviews regularly. Assist them in improving the areas that will
lead them to seek advancement in their job. A proper professional development plan provides the
employee a reason to stick around.
#6 – Provide retention bonuses instead of a sign on bonuses

The longevity of the worker is typically awarded a raise annually and added vacation time after
the period of the three, five or ten years. Nevertheless, why not offer other seniority-based
rewards such as paid membership in the professional association of the employee after a year,
full reimbursement for the uniforms and membership to a local gym. Retention packages can be
designed to raise the salaries of the technologists who turn into credentials in additional
specialized areas, take on more responsibilities or obtain additional education. Technologists are
encouraged to skip from job to job due to sign-on bonuses, while retention packages offer
reasons to stay.
#7 – Make someone responsible for retention

Measure the turnover rate of the company and hold someone accountable for reducing it. Noo
one is held responsible in several workplaces in several workplaces when employees leave, so
nothing is done to encourage holding.
#8 – Conduct survey about employee satisfaction

You won’t be able to understand what is going right or wrong in the organization unless you ask
about it. To check the company’s functioning, conduct an anonymous survey related to the
employee’s satisfaction on a regular basis. Ask the employee what they want less of and what
they want more of.
#9 – Adopt an environment of teamwork

To build an effective team a lot of efforts needs to be taken. However, the result is greater
productivity, improved customer service, better utilization of resources and increased morale.
RETENTION STRATEGIES
What Is a Retention Strategy?
A retention strategy is a plan that organizations create and use to reduce employee turnover,
prevent attrition, increase retention, and foster employee engagement. While some turnover is
inevitable, building a retention strategy to prevent as much voluntary turnover as possible can
save an organization a lot of time and money. After all, it’s much easier and much less expensive
to train and develop your current employees than it is to continually hire new people.
Benefits of an Effective Retention Strategy
The focus of an employee retention strategy is just as it sounds: retaining employees. However,
there are other positive outcomes of an effective retention strategy besides just getting people to
stick around your organization longer:
 Lower turnover
 Lower hiring costs
 Increased employee productivity
 Higher employee satisfaction

 Stronger work relationships

 Less work-related stress
 Less burnout
This means that creating a retention strategy isn’t just a good idea if you’re experiencing higher-
than-average turnover; it’s a good idea for any organization that wants to improve its culture,
employee experience, business outcomes, and more.
EMPLOYEE RETENTION STRATEGIES FOR JOB SATISFACTION
While the job market in some industries and regions favours employers, candidates with in-
demand skills likely won’t have to wait long to find a new opportunity. Many companies never
stopped recruiting talent during the pandemic, and many others have picked up the pace of hiring
in recent months.
If you sense your business is at risk of losing top talent, you need to move fast to shore up your
employee retention strategies. Here are 14 areas where deliberate action can help boost
employees’ job satisfaction and increase your ability to hold onto valued workers:
1. Onboarding and orientation
Every new hire should be set up for success from the start. Your onboarding process should
teach new employees not only about the job but also about the company culture and how they
can contribute to and thrive in it. Don’t skimp on this critical first step. The training and support
you provide from day one, whether in person or virtually, can set the tone for the employee’s
entire tenure at your firm.
2. Mentorship programs
Pairing a new employee with a mentor is a great component to add to your extended onboarding
process, especially in a remote work environment. Mentors can welcome newcomers into the
company, offer guidance and be a sounding board. And it’s a win-win: New team members learn
the ropes from experienced employees, and, in return, they offer a fresh viewpoint to their
mentors.
But don’t limit mentorship opportunities to new employees. Your existing staff — and your
overall employee retention outlook and team’s job satisfaction — can significantly benefit from
mentor-mentee relationships.
3. Employee compensation

It’s essential for companies to pay their employees competitive compensation, which means
employers need to evaluate and adjust salaries regularly. Even if your business can’t increase pay
right now, consider whether you could provide other forms of compensation, such as bonuses.
Don’t forget about improving health care benefits and retirement plans, which can help raise
employees’ job satisfaction, too.
4. Perks
Perks can make your workplace stand out to potential new hires and re-engage current staff
while boosting employee morale. According to research for our Salary Guide, flexible schedules
and remote work options are the perks many professionals value most. In addition, about a third
of the professionals we surveyed said paid parental leave is a big plus.
5. Wellness offerings
Keeping employees fit — mentally, physically and financially — is just good business. Many
leading employers expanded and improved their wellness offerings during the pandemic to help
employees feel supported and prioritize their well-being. Stress management programs,
retirement planning services and reimbursement for fitness classes are just some examples of
what your business might consider providing to employees.
6. Communication
The shift to hybrid and remote work has underscored the importance of good workplace
communication. Your direct reports, whether they work on-site or remotely, should feel they can
come to you with ideas, questions and concerns at any time. And as a leader, you need to make
sure you’re doing your part to help promote timely, constructive and positive communication
across the entire team. Make sure you proactively connect with each team member on a regular
basis, too, to get a sense of their workload and job satisfaction.
7. Continuous feedback on performance
Many employers are abandoning the annual performance review in favor of more frequent
meetings with team members. In these one-on-one meetings, talk with your employees about
their short- and long-term professional goals and help them visualize their future with the
company. While you should never make promises you can’t keep, talk through potential career
advancement scenarios together and lay out a realistic plan for reaching those goals.
8. Training and development
As part of providing continuous feedback on performance, you can help employees identify areas
for professional growth, such as the need to learn new skills. Upskilling your employees is
especially important today as technology continues to change how we work. When people
upskill, they gain new abilities and competencies as business requirements evolve.
Make it a priority to invest in your workers’ professional development. Give them time to attend
virtual conferences, provide tuition reimbursement or pay for continuing education. Also, don’t
forget about succession planning, which can be a highly effective method for advancing
professional development and building leadership skills.
9. Recognition and rewards systems
Every person wants to feel appreciated for the work they do. And in today’s “anywhere
workforce,” an employer’s gratitude can make an especially big impact. So be sure to thank your
direct reports who go the extra mile and explain how their hard work helps the organization.
Some companies set up formal rewards systems to incentivize great ideas and innovation, but
you can institute compelling recognition programs even if you have a small team or limited
budget.
10. Work-life balance
What message is your time management sending to employees? Do you expect staff to be
available around the clock? A healthy work-life balance is essential to job satisfaction. People
need to know their managers understand they have lives outside of work — and recognize that
maintaining balance can be even more challenging when working from home. Encourage
employees to set boundaries and take their vacation time. And if late nights are necessary to
wrap up a project, consider giving them extra time off to compensate.
11. Flexible work arrangements
Many companies understand that even though they have reopened their offices, some of their
employees still prefer to work remotely, at least part-time. Not having that option might even
spur employees to resign. A recent Robert Half survey found that half of professionals working
from home would look for a new job if they were required to return to the office full time.
So think sooner than later about what you can offer employees if remote work on a permanent
basis isn’t an option. A compressed workweek? Flexitime? Or maybe a partial telecommuting
option? All of the above can help relieve stress for your team — and boost employee retention.
12. Effective change management
Beyond all the recent disruption due to the pandemic, every workplace has to deal with change,
good and bad. And employees look to leadership for insight and reassurance during these times.
If your organization is going through a big shift, keeping your team as informed as possible helps
ease anxieties and manage the rumour mill. Make big announcements either individually or in a
group call or meeting, and allow time for questions.
13. An emphasis on teamwork
You should encourage all your employees, not just star players, to contribute ideas and
solutions. Promote teamwork by creating opportunities for collaboration, accommodating
individuals’ work styles and giving everyone the latitude to make decisions and course
corrections if needed.
14. Acknowledgement of milestones, big and small
A final tip for promoting employee retention is to shine a light on notable achievements.
Whether your team finishes ahead of the deadline on a major project or a worker reaches a five-
year work anniversary, seize the opportunity to mark the milestone together. Even if you need to
celebrate virtually, it can be a meaningful and memorable moment for everyone.

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MANAGING HUMAN RESOURCES 2.

PURPOSE AND IMPORTANCE OF RECRUITMENT

Purpose and Importance of Recruitment

1. Determines the Present & Future Requirements

2. Prevents Disruption of Business Activities

DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 1

3. Increases Success Rate of Hiring

4. Expands Talent Pool

6. Improves the Credibility of the Organisation

A business organisation’s reputation is bolstered by a strong recruitment process. It assesses the

DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 2

Internal Sources of Recruitment:

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Benefits of Internal Sources of Recruitment:

2. Cost is saved as there is no need to give advertisements about the vacancy.

3. It builds loyalty among employees towards the organization.

5. It is a reliable and easy process.

Limitations of Internal Sources of Recruitment:

2. The performance of the existing employees may not be as efficient as before.

4. It may lead to encouragement to favouritism.

5. It may not be always in the good interest of the organization.

External Sources of Recruitment:

DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 4

Benefits of External Sources of Recruitment:

3. In case of unavailability of suitable candidates within the organization, it is better to select

Limitations of External Sources of Recruitment:

2. It gives a sense of insecurity among the existing candidates.

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STEP # 1. PRELIMINARY INTERVIEW:

STEP # 2. SCREENING OF APPLICANTS:

STEP # 3. EMPLOYMENT TESTS:

STEP # 4. SELECTION INTERVIEW:

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STEP # 5. CHECKING OF REFERENCES:

STEP # 6. MEDICAL EXAMINATION:

STEP # 7. FINAL SELECTION/HIRING:

 It needs to be comprehensive. Blind spots in evaluation can lead to sub-par employees,

DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 8

 It needs to be nuanced. Making a critical business decision based on partial or

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5: Past Performance Analysis

8: Physical Fitness Assessments

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There’s no one-size-fits-all approach to employee evaluation. Every screening process, from

3) Not providing feedback

4) Not acknowledging applicants

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5) Not focusing on your employer brand

6) Looking for the perfect candidate

7) Ruling out overqualified or under-qualified candidates

8) Not hiring for culture fit

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WHY IS EMPLOYEE ORIENTATION IMPORTANT?

WHAT SHOULD YOU INCLUDE IN YOUR EMPLOYEE ORIENTATION?

WHAT ARE THE ORIENTATION RESPONSIBILITIES?

DIVYA H N (Asst Prof) , Department of MBA, SIMS Page 20

To Reduce Employee Turnover

To Save Time For Supervisor & Co-Workers

The important characteristics of induction are: