THE EMPLOYMENT CYCLE

SAC 1b (Monday 13 August)

Learning objectives

To identify and explain the key phases of the employment cycle

To explain the significance of the employment cycle for human resource management

The importance of the employment cycle

One of the key responsibilities of HRM is managing the employment cycle

The employment cycle is the stages a worker progresses through - from the start to the end of their employment with an organisation

It is a ‘cycle’ because the pattern repeats itself as new workers are recruited, trained, etc, to replace the workers who are leaving

Broadly, we can categorise the actions and steps that HRM need to take as establishment, maintenance and termination

Phase one: Establishment

HR planning Job analysis and job design Recruitment Employment arrangements and pay

Human Resource Planning

HR planning is the most important part of the employment cycle

It involves predicting the future staffing needs of the organisation – therefore, HR managers need to know and relate this to the strategic plans of the organisation

HR managers need to consider: will more or less staff be needed? Which areas of the organisation will grow? Are specific skills or expertise needed?

If poorly planned, an organisation may have too many or not enough employees in key areas creating problems for productivity and cost

Job analysis, design and description

Job analysis is finding out all the information about a job If it is an existing position, then a study is conducted to

examine in detail what is done in that position on a daily basis

Job design is the process of creating new positions or adapting existing positions.

When designing a new job, mangers need to ensure it attracts the right candidates and meets the organisation’s needs (as determined through HR planning)

Job description is an outline of all aspects of a particular position, including the duties & responsibilities and work conditions) and combines all the information gathered in the job analysis

Selection Criteria

A list of what the organisation is looking for in the applicants for a new position

Often includes requirements for qualifications/experience, skills, and personal qualities

It is expected that applicants should address the selection criteria in their job application

Recruitment

Recruitment is sourcing employees for a position

It can be internal (from inside the organisation) or external (outside the organisation)

Recruitment methods include newspapers, internet sites, business websites, recruitment agencies, word of mouth

Selection

Selection is choosing the best candidate for the available position

The selection process may include, screening out the unsuitable applicants; writing a short list of potential candidates; contacting them for interviews; holding sometimes several rounds of interviews (individual or group); testing; checking referees; notifying the successful candidate and the unsuccessful ones

Employment arrangements & remuneration (pay & entitlements)

The process of deciding pay and other entitlements associated with a position may be determined before the job is advertised or negotiated with the successful candidate

Factors affecting the type of remuneration include whether the person is covered by an agreement, whether it is a management position, previous remuneration of the person, and their priorities.

Packages include pay rates, super, use of facilities such as cars, phones, laptops

The type of employment arrangement is linked to the remuneration (full or part-time cf casual staff & contractors)