12-1 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. CHAPTER TWELVE Final Match Screen graphics created by: Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region

12-2 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Organization Strategy HR 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 Organization Vision and Mission Goals and Objectives Staffing Organizations Model

12-3 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Outline Employment Contracts  Requirements for Enforceable Contract  Parties to Contract  Form of Contract  Disclaimers  Contingencies  Reneging  Other Employment Contract Sources  Unfulfilled Promises Job Offers  Applicant Attraction Strategies  Job Offer Content Job Offer Process  Formulation of Job Offer  Presentation of Job Offer  Job Offer Acceptance and Rejection  Reneging New Employee Orientation & Socialization Legal Issues

12-4 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Employment Contracts Requirements for enforceable contract Parties to contract Form of contract Disclaimers Contingencies Reneging Other employment contract sources Unfulfilled promises

12-5 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Employment Contracts Requirements for enforceable contract  Offer  Acceptance  Consideration Parties to contract  Employee or independent contractor  Third parties Employment contract

12-6 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Employment Contracts (continued) Form of contract  Written contract  Suggestions  Oral contract  One-year rule  Parole evidence  Suggestions Disclaimers  Oral or written statement explicitly limiting an employee right and reserving that right for employer  Recommendations for enforcement

12-7 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Employment Contracts (continued) Contingencies  Extending a job offer contingent on certain conditions being fulfilled by offer receiver Reneging  Employment-at-will  Doctrine of promissory estoppel Other employment contract sources  Employee handbooks  Oral statements made by employer representatives

12-8 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Employment Contracts (continued) Unfulfilled promises  Organizational HR issues  Do not make promises unwilling to keep  Be sure promises made are kept  Potential legal claims  Breach of contract  Promissory estoppel  Fraud

12-9 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Job Offers Applicant attraction strategies Job offer content

12-10 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Exh. 12.1: Model of Applicant Attraction Process Labor market conditions Vacancy characteristics Organizational characteristics Phase of attraction process Legal considerations Labor market conditions Vacancy characteristics Organizational characteristics Phase of attraction process Legal considerations Contingencies Other Human Resource Practices Attraction Strategies RecruitmentInducementsApplicant Pools Preemployment Postemployment Preemployment Postemployment Attraction Outcomes

12-11 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 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 - Exh Hours Special hiring inducements  Hiring bonuses  Relocation assistance  Hot skill premiums  Severance packages Restrictions on employees Other terms and conditions Acceptance terms Sample job offer letter  Exh. 12.4

12-12 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Job Offer Process Formulation of job offer Presentation of job offer Job offer acceptance and rejection Reneging

12-13 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Formulation of Job Offer Knowledge of competitors  Labor 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 issues  Offers need to attract number of staff required  Offers need to consider KSAOs of each offer receiver and the worth of the KSAOs

12-14 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 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

12-15 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 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

12-16 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Strategies for presenting initial offer  Lowball  Competitive  Best shot Formulation of Job Offer (continued)

12-17 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Presentation of Job Offer Two approaches  Mechanical approach  Sales approach  Exh. 12.6: Example of a Sales Approach to Job Offers

12-18 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Exh. 12.6: Example of a Sales Approach to Job Offers

12-19 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Job Offer Process: Acceptance, Rejection, Reneging Acceptance Rejection  By organization  By offer receiver Reneging  Exh. 12.7: Organization Actions to Deal with Reneging

12-20 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. New Employee Orientation and Socialization Orientation  Exh. 12.8: New Employee Orientation Program Suggestions Socialization  Content  People  Performance proficiency  Organization goals and values  Politics  Language  History  Delivery

12-21 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Legal Issues Authorization to work  Under IRCA, company is prohibited from hiring or continuing to employ an 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