Contemporary issues in human resource management

1. CONTEMPORARY ISSUES
AND TRENDS IN HUMAN
RESOURCE MANAGEMENT
Subject: Human Resource Management
Prof. Sanjay Kaushik
Team members: Ashok Kumar
(MBA GEN A) Nikki Latta
Sanchit Kaura
Swati Sharma
March 3rd, 2017

2. SIGMA-ALDRICH & KELLYOCG
 KellyOCG created service level agreements (SLAs)
 Comprehensive data mining from various internal and
external sources.
 This involved reaching out to the HR and TA team,
other internal recruiters, external recruiters the
company was working with, and existing employees
to consolidate existing databases.
 candidate résumés, various channels for
pharmaceutical-specific sourcing, and information
on pharmaceutical shared services in the IT domain—
checked for relevance, categorized, and centralized for
ready access.
 Created role definitions, which incorporated
pharmaceutical related elements and IT requirements
for each role, to reach out to candidates.

3. 1. RECRUITMENT PROCESS
OUTSOURCING ( S TA F F I N G C O M PA N I E S )
 Recruitment Process Outsourcing is a form of business
process outsourcing (BPO) where an employer transfers all or part of
its recruitment processes to an external service provider.
 Technavio is a leading global technology research and advisory company.
Global recruitment process outsourcing market to grow at a CAGR of close to
18% during the period 2017-2021.

4. RPO COSTING MODELS
 Management Fee Model (typically monthly) - agreed-upon number of positions, may have escalation
factors if the number of hires increases over a period of time
 Cost Per Hire Model - A fee is paid for each candidate who is successfully brought through the program
and hired (or other action such as offered a position), may be used for short-term
 Management Fee Plus Cost Per Hire - This is a combination of the above two. This combines the
consistent recruiting effort under the management fee, with payments for the success (hires) of the program.
 Cost Per Slate - This is a sourcing model where the RPO provider charges a fee for a set number of
sourced, screened and qualified candidates for each open position. From there, the candidates are provided
to the internal recruiters for continuation of the recruiting and hiring processes.
 Cost Per Transaction - A fee is charged for a specific process to be completed by the RPO provider, such
as initial screening or reference checks.

5. BENEFITS OF USING
STAFFING COS.
 Focus on core business activities
 Shrink HR and Administration costs (Payroll, Benefits, Training, Accounting)
 Ease of handling – Planned & unplanned absences
 Regulatory and Statutory Compliance
 Better Employer – Employee relations
 The recruiter can help write the job description
 Since matching applicants with employers is a recruiter’s entire job, they’re able to devote the time and get applicants in place
quickly, meaning you’ll be able to fill the position faster.
 They can handle reference checks for you. (Idfy – third party verification)
 Recruiters are typically well-versed in their respective industry and can identify and connect with a larger group of candidates
- wider applicant pool at the recruiter’s disposal.

6. POTENTIAL PITFALLS OF
USING A RECRUITER
 Morale: The temporary workers might develop resentment for doing the same job without the benefits that you
provide your permanent employees.
 Legal Issues: Some employers have been sued for keeping workers as temporaries for long periods of time, the courts
viewed this as an attempt to skirt employer responsibilities
 It’s difficult for an external agency to know your business as well as you do. This means that a recruiter may be more
likely to overlook an otherwise qualified candidate who doesn’t satisfy every box on a checklist. In other words, a great
candidate may be passed over if the recruiter doesn’t know when to be flexible in the candidate qualifications.
 There is an extra expense involved with recruiters—typically a portion of the new hire’s initial salary. Obviously, this
expense may be quite high in some cases.
 There is a time commitment involved in finding the best recruiting agency to contract with – quality compromise
 Depending on the situation, a recruiter may place a candidate for interviews with several companies concurrently. This
can increase the likelihood that your chosen candidate will have competing offers.

7. 2. DOWNSIZING
Make (a company or organization) smaller
by shedding staff.

8. ISSUES
 Survivor sickness – decreased effort and creativity, increased
resentment and fatigue
 Leaves a company ill-equipped to handle the return of strong
revenue numbers
 Maintaining productivity with less employees

9. MOST COMMONLY USED
BY EMPLOYERS
 Natural attrition/wastage (leave on their own accord)
 Early retirement (VRS -Voluntary retirement scheme is a
method used by companies to reduce surplus staff)
 Compulsory redundancy

10. ALTERNATIVES
 Redeployment
 Wage reduction
 Mandatory vacations
 Employee sabbatical (At Adobe, employees may take a sabbatical for every five
years of tenure. The first sabbatical is four weeks, then at the 10-year mark
employees are entitled to five weeks’ sabbatical. After 15 years, the time off
increases to six weeks, and it stays at that length for every subsequent five years.)
 Hiring freeze

11. 3. THE POWER OF
PEOPLE ANALYTICS
 HR was reactive and compliance oriented
 People analytics helps organizations to make smarter, more strategic and more informed
talent decisions. With people analytic, organizations can find better applicants, make smarter
hiring decisions, and increase employee performance and retention.
 Areas: Engagement, Diversity, Retention and attrition, Staffing and selection, Performance
management, Employee lifecycle, Leadership
 People analytics relies on comprehensive collection of digital data about employees’
behavior. The data can come from employees’ key performance indicator reports, email
traffic, in-office interaction patterns, and social networking activity. Once collected and
aggregated, data are analyzed for patterns by algorithms to inform managerial decisions.

12. PRACTICAL IMPLEMENTATION
 A co reduced its retention bonuses by $20 million—and employee attrition by half—thanks to the use of
predictive behavioral analytics. Through this process, and contrary to expectations, the company found that
limited investment in management and employee training, and inadequate recognition, were the main
drivers of staff defections. Expensive retention bonuses, to which the company had resorted in desperation,
were simply an ineffective and costly Band-Aid. Many companies conventionally try to tackle retention issues by
conducting in-depth exit interviews.
 A leading healthcare organization, for example, has used these techniques to generate more than $100
million in savings while simultaneously improving the engagement of its workforce. The organization found that
highly variable and unequal compensation levels were disturbing employees and driving high rates of
attrition. Once the data analytics had identified an optimal minimum and maximum compensation threshold, the
healthcare group increased the engagement and productivity of its employees—and reduced not only their rate
of attrition but also its total compensation expenditures.
(http://www.mckinsey.com/business-functions/organization/our-insights/power-to-the-new-people-analytics)

13. (CONTD.)
 An insurance company that found the No. 1 predictor of success in sales was whether a person had
typos in his or her resume. Whether the person had experience in selling insurance was No. 2 or 3.
After the company realized these were top factors, it changed its hiring criteria. The company saw
improvement in sales within six months.
 The algorithm adapted by another co’s HR took into account historical recruiting data, including
past applicant résumés and, for those who were extended offers previously, their decisions on
whether to accept. the model successfully identified those candidates most likely to be hired and
automatically passed them on to the next stage of the recruiting process. Those least likely to be hired
were automatically rejected. With a clearer field, expert recruiters were freer to focus on the remaining
candidates to find the right fit. Helped in saving and increased ROI.
(http://www.mckinsey.com/business-functions/organization/our-insights/people-analytics-reveals-
three-things-hr-may-be-getting-wrong)

14. THE ISSUE WITH USING PEOPLE
ANALYTICS
 Curbs innovation
 Manipulation of self-administered reports
 Algorithms are not always accurate

15. ASSESSMENT CENTERS
An Assessment Center consists of a
standardized evaluation of behavior
based on multiple evaluations
including: job-related simulations,
interviews, and/or psychological
tests. Job Simulations are used to
evaluate candidates on behaviors
relevant to the most critical aspects
(or competencies) of the job.

16. HR ANEXI

17. OTHER TRENDS
 Agile HR (smaller teams, reduce number of meetings)
 Softer performance ratings (Accenture, Deloitte)
 Individualization (instead of segmentation like gen y gen x, data analytics are
used to narrow down on an individual)
 SCRUM: work in a team in short sprints of two to four weeks. The goal is to
have clear deliverables at the end of the period. The end of the period is the
moment to regroup, discuss the lessons learned and determine the deliverables of
the next period
 People management – managers cum hr professional

18. REFERENCES
(NIK K I)
Sites:
 https://www.linkedin.com/pulse/accenture-dumped-performance-reviews-here-why-steffen-maier
 https://www.linkedin.com/pulse/20141204104505-4783982-it-s-time-for-some-guerrilla-hr?trk=mp-reader-
card
 http://www.ceridian.com/resources/newsletters/2016/Jan/9-trends-every-hr-professional-needs-to-
know.html
 https://hrtrendinstitute.com/2015/11/09/trends-in-hr-people-analytics-made-easy/
 http://www.business-standard.com/article/technology/why-algorithms-used-as-people-analytics-won-t-
lead-to-utopian-workplaces-117022200220_1.html
 http://blog.rpoassociation.org/blog/bid/224479/The-7-Risks-of-Recruitment-Process-Outsourcing
 http://iveybusinessjournal.com/publication/hr-strategies-that-can-take-the-sting-out-of-downsizing-related-
layoffs/

19. Research Paper(s):
 Human Resource Management: Positive and Ethical People Practices Dr. Dana McDaniel
Sumpter California State University, Long Beach College of Business Administration (2013)
 Ethical dilemmas in HR practice A paper from HR in a disordered world: IES Perspectives
on HR 2015 Alison Carter, Principal Associate (2015)
Book(s):
 Contemporary human resource management by Tom Redman and Adrian Wilkinson
Case(s):
 RPOIndia_TalentSolutionTailoredToFit_CaseStudy.pdf
REFERENCES
(NIK K I)