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)