Part 5Staffing Activities: Employment

Chapter 12:

Final Match

McGraw-Hill/Irwin

Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection:Measurement, external, internal

Employment:Decision making, final match

OrganizationMission

Goals and Objectives

Staffing Organizations Model

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12-3

Chapter Outline

Employment Contracts Requirements for Enforceable

Contract Parties to Contract Form of Contract Disclaimers Contingencies Other Employment Contract

Sources Unfulfilled Promises

Job Offers Strategic Approach to Job

Offers Job Offer Content

Job Offer Process Formulation of Job Offer Presentation of Job Offer Timing of the Offer Job Offer Acceptance and

Rejection Reneging

New Employee Orientation & Socialization

Orientation Socialization Examples of Programs

Legal Issues Employment Eligibility

Verification Negligent Hiring Employment-at-Will

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Learning Objectives for This Chapter

Learn about the requirements for an enforceable contract

Recognize issues that might arise in the employment contract process

Understand how to make strategic job offers Plan for the steps of formulating and presenting a job

offer Know how to establish a formal employment

relationship Develop effective plans for new employee orientation

and socialization Recognize potential legal issues involving final

matches

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Discussion Questions for This Chapter

If you were the HR staffing manager for an organization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organization?

If the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain.

What are the advantages and disadvantages to the sales approach in the presentation of the job offer?

What are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective) in helping to make the person/job match happen?

What are the steps an employer should take to develop and implement its policy regarding employment-at-will?

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Employment Contracts

Requirements for enforceable contractParties to contractForm of contractDisclaimersContingenciesOther employment contract sourcesUnfulfilled promises

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Employment Contracts

Requirements for enforceable contractOfferAcceptanceConsideration

Parties to contractEmployee or independent contractorThird parties

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Employment Contracts (continued)

Form of contract Written contract

Does the company mean to be held to this? Where appropriate, avoid using words that imply binding

commitment. Make sure all related documents are consistent with one

another. Always have a second person review what another has

written. Look at the entire hiring procedure.

Oral contract One-year rule Parole evidence Suggestions

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Employment Contracts (continued)

Disclaimers Oral or written statement explicitly limiting an

employee right and reserving that right for employer Recommendations for enforcement

Clearly stated and conspicuously placed in appropriate documents.

Employee should acknowledge receipt and review of the document and the disclaimer.

Should state that it may be modified only in writing and by whom.

The terms and conditions of employment, including the disclaimer, as well as limits on their enforceability, should be reviewed with offer receivers and employees.

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Employment Contracts (continued)

ContingenciesExtending a job offer contingent on certain

conditions being fulfilled by offer receiverOther employment contract sources

Employee handbooksOral statements made by employer

representatives

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Employment Contracts (continued)

Unfulfilled promisesOrganizational HR issues

Do not make promises unwilling to keepBe sure promises made are kept

Potential legal claimsBreach of contractPromissory estoppelFraud

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Discussion questions

If you were the HR staffing manager for an organization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organization?

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Job Offers

Strategic Approach to Job Offers

Job offer content

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Ex. 12.1: Strategic Approach to Job Offers

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Job Offer Content

Starting date Duration of contract Compensation

Starting pay Flat vs. differential

rates Exh. 12.2: Example of

Starting Pay Policies Variable pay

Short term Long term

Benefits Hours

Idiosyncratic deals Ex. 12.3

Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages

Restrictions on employees

Acceptance terms Sample job offer letter-

Ex. 12.4

Exhibit 12.3 Idiosyncratic Deals

Category ExamplesTasks and work responsibilities that are specially tailored to the employee's unique KSAOs

An engineer in a technology firm with an interest and background in marketing will participate in marketing meetings

A salesperson who is especially familiar with a certain product line will be given paid time to share expertise with other workers

A customer service provider interested in management will be paid to attend skill development workshops

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Exhibit 12.3 Idiosyncratic Deals

Category ExamplesFlexible schedules to accommodate individual employee needs

An employee will be allowed to come in later in the day and leave later to accommodate childcare needs

An employee whose spouse works a non-standard workweek will be given a Tuesday to Saturday schedule

A non-exempt employee will have variable hours per week

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Exhibit 12.3 Idiosyncratic Deals

Category ExamplesThe ability to work outside of the main office

A virtual private network or cloud-based servers will be used to allow employees to access work data remotely

Provide mobile devices like tablet computers or smartphones and pay for connectivity fees for an employee who travels frequently with her family

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Exhibit 12.3 Idiosyncratic Deals

Category ExamplesFinancial incentives that are particular to the employee and match his or her unique contribution to the organization

Compensate an especially productive research developer based on patent applications

Designate an employee with well-developed social networks a “rainmaker” and pay for each new client he brings in to other salespeople

Pay a bonus to a manager with strong developmental skills for each person she successfully mentors

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Job Offer Process

Formulation of job offer

Presentation of job offer

Job offer acceptance and rejection

Reneging

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Formulation of Job Offer

Knowledge of competitorsLabor demand issues

Who are the competitors?What terms and conditions are they offering for

the job for which the hiring organization is staffing?

Labor supply issuesOffers need to attract number of staff requiredOffers need to consider KSAOs of each offer

receiver and the worth of the KSAOs

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Formulation of Job Offer (continued)

Applicant truthfulness Minimal evidence exists on degree of applicant

truthfulness To combat deceit, organizations are pursuing

verification of all applicant information

Likely reactions of offer receivers Approaches to assess reactions to offers

Gather information about various preferences from offer receiver during recruitment/selection process

Conduct research on why offer receivers accept or decline job offers

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Formulation of Job Offer (continued)

Policies on negotiations and initial offers Job offers occur for both external / internal staffing Consider costs of job offer being rejected by

candidate Candidates may be receiving counteroffers from

current employer Currently employed candidates incur costs for

leaving and expect a “make whole” offer Candidates are sophisticated in presenting their

demands

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Formulation of Job Offer (continued)

Strategies for presenting initial offerLowball

offering the lower bounds of terms and conditions to the receiver

Market matchingan offer that is “on the market,” neither too high

nor too lowBest shot

gives a high offer, one right at the upper bounds of feasible terms and conditions

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Presentation of Job Offer

Mechanical approachRelies on one-way-communicationHighly efficient and inexpensiveAll applicants treated the same for legal

purposesSales approach

Active interaction with applicantAllows organization to respond to concernsMuch higher chance of offer acceptance

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Job Offer Process:Acceptance, Rejection, Reneging

Acceptance

Rejection

By organization

By offer receiver

Reneging

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Discussion questions

If the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain.

What are the advantages and disadvantages to the sales approach in the presentation of the job offer?

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New EmployeeOrientation and Socialization

Orientation Exh. 12.7: New Employee Orientation Program

Suggestions Socialization

Content People Performance proficiency Organization goals and values Politics Language History

Delivery

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Discussion questions

What are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective) in helping to make the person/job match happen?

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Legal Issues

Employment Eligibility Verification Under IRCA, company is prohibited from

hiring or continuing to employan alien not authorized to work in U.S.

Negligent hiring Workplace torts issue involving claims by an injured

plaintiff that plaintiff was harmed by an unfit employee who was negligently hired by company

Employment-at-will Involves right of either employer or employee to

unilaterally terminate employment relationship

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Discussion questions

What are the steps an employer should take to develop and implement its policy regarding employment-at-will?

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Ethical Issues

Issue 1 A large financial services organization is thinking of adopting

a new staffing strategy for entry into its management training program. The program will provide the trainees all the knowledge and skills they need for their initial job assignment after training. So the organization has decided to do college recruiting at the end of the recruiting season, hiring those who have not been fortunate enough to receive any job offers, paying them a salary of 10% below market, and providing no other inducements such as a hiring bonus or relocation assistance. The organization figures this strategy and employee value proposition will yield a higher percentage of offers accepted, low cost per hire, and considerable labor cost savings due to below market salaries. Evaluate this strategy from an ethical perspective.

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Ethical Issues

Issue 2 An organization has a staffing strategy in which it

over-hires by 10% the number of employees it will actually need in any job category in order to ensure it meets its hiring needs. It reasons that some of the new hires will renege on the accepted offer, and that the organization can renege on some of its offers if need be to end up with the right number of new hires. Evaluate this strategy from an ethical perspective.