Systematic approach to the strategy management of recruiting and hiring of personnel

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University Brno

Systematic approach to the strategy management of recruiting and hiring of personnel

Olena Sobolieva-Tereshchenko

PhD, Intern in the Department

of Business Management Masaryk

Czech Republic

Abstract

The article presents a comprehensive analysis and systematization of the areas of selection and hiring of personnel for the development of a company's personnel strategy. In the modern condition labor market, the HR management strategy plays an important role in managing human resources. It helps the company to meet the organization's needs in competitive personnel and reduces time and finances for hiring personnel. The balanced and reasonable strategy of HR management involves the company developing a strategic recruiting and hiring plan based on an integrated approach, taking into account the time interval. This makes it important to develop a recruitment matrix based on existing theoretical views, ideas, and principles. The main methods of selection and recruitment of HR management such as Start-Up, Internship, Project team/Brigade team, and Recruitment of personnel with a probationary period were studied. The study examines four main periodic methods of personnel search and selection. Additional study analyzes the advantages and disadvantages of each of the given methods. The determining factors of recruiting and hiring personnel management such as type of HR management, company HR goals, influencing factors on HR management, and sources of HR financing were systematized. Based on an analysis of existing personnel selection methods, the author developed the Recruitment and Staff Selection Matrix (RSSM). Special conditions and options of RSSM can be used by companies when developing complex systems and strategic plans for recruiting and hiring necessary staff in modern conditions of development HR management.

Keywords: personnel management system; talent management; internship program; project management; selection program; recruitment methods; cconceptual framework.

Introduction

Statement of the problem. To effectively recruit personnel, it is necessary to consider all possible features of sources of employee search. It is also important to compare the means and methods of finding employees with the company's needs, financial situation, production, and labor characteristics. That is why it is important to develop an integrated approach to the use of personnel selection and adaptation methods, depending on the main goals of recruiting and hiring personnel according to the needs of the company.

The purpose of the study is to analyze and evaluate modern methods of personnel selection and to determine the most appropriate methods of selection depending on such characteristics of companies as the main goals of personnel recruitment and hiring, the existing period of personnel recruitment, the sources of financial resources directed to the search for personnel, the specifics, internal and external factors of the company.

The business landscape is constantly changing and recruitment methods are changing too. workforce personnel management human resource

To keep up with the times, employers must consider various approaches to personnel selection, including hiring employees taking into account the achievement of the main goals of the company, internal and external factors influencing its development, and sources of financing.

Analysis of the latest research and publications. The results of scientific research in recruiting and hiring personnel management are based on the works of such foreign scientists as J.Allen, S.Anjum, A.Beiu, C.Birch, B.Brunner, R.Dimitriu, J.Gault, N.Gusain, S.Ismail, Y.Janin, A.Kataria, J.Kim, J.Mello, A.Melnic, T.Munyon, D.Ott, A.Pusiran, J.Redington, H.Shisaande, J.Tolentino, E.Tomaszczyk, J.Tovey, K.Zarkin. Domestic scientists who are engaged in research of various aspects of the strategy of recruiting and hiring of personnel include N.Bazaliyska, K.Bronitska, N.Fedynets, A.Holovko, I.Kislytska, D.Kudymenko, O. Koshonko, O.Krasnoshtan, O.Kravchuk, O.Lozhachevska, G.Muterko, M.Mykhailichenko, P. Nagorna, V.Smagin, O.Sobolieva-Tereshchcenko, V.Tymoshenko, I.Varis, T.Vonberg.

The purpose of this article is to consider the typology of recruiting and selecting methods for companies and to provide recommendations on the directions of their use in the development of the strategy of recruiting and hiring personnel management.

Research results

The priority of the modern approach to the strategy of recruiting and hiring personnel management is the desire to form costs at such an optimal level, which will make it possible to achieve the maximum possible results of the personnel recruitment procedure.

Research published in Robert's Half Salary Guide found that retaining the wrongly hired employee had noticeable negative consequences. This resulted in decreased productivity (23%), increased workload (22%), and increased stress in teams (19%) [1].

The recruitment and selection process should be based on scientific principles since mistakes made in their implementation will negatively affect the effectiveness of the organization and the social and psychological climate of the team [2].

To make a balanced decision regarding the expediency of using each of the personnel search methods, the enterprise must take into account not only the company goals and financial support recruiting activity but also analyze the main advantages and disadvantages of each of the methods. Therefore, to optimize organizational and management processes and ensure the effectiveness of the management system, companies should use appropriate assessment tools and pay attention to the main influencing factors [3]. Insufficient attention to the system of recruitment, selection, and adaptation in the company can lead to the dismissal of personnel and increased financial costs for finding a replacement.

The main methods of personnel search and selecting staff have become the following[2-20].

1. Start-Up/Business incubator. The main goal of talent management in the form of a Startup/Business Incubator is to find, attract, and ensure further effective development of talented staff. The results of Tog J. Daniel Kim research elucidate whether and when firms can harness human capital through startup acquisitions («acqui-hiring») [4]. The recruiting talent from start-up acquisition is much faster, the company can get even those skills that it currently does not have at all, and it is more responsive to changing business objectives. However, talent acquisition is also costly and risky [5]. The main risk in recruiting staff from a Startup or Business incubator is the high staff turnover rate. Therefore, the company needs to make the most of talent while they are a part of the organization is what matters, as talent will inevitably leave [6].

2. Internship. During the hiring process, companies usually prefer candidates with work experience and practical knowledge. But often they also look closely at their interns and choose them as their new employees [7]. Thus, companies also save costs on hiring staff, adaptation, and training personnel. On the one hand, internships provide companies with several advantages. Interns provide physical assistance to the company, propose innovative ideas, and share knowledge [8]. On the other hand, internships have disadvantages for organizations. The main disadvantages of internships are that companies need to provide guidance, extensive support, training, and feedback to interns at every stage to make them productive for them and secure an internship placement [9]. Financial benefits are frequently mentioned in the literature and are widely accepted by employers. Interns often work for free or are paid a minimum salary, allowing companies to reduce their recruitment and training costs for new employees [10].

Some studies have shown that internships can provide opportunities to improve employee coaching skills inside of companies for "retroactive learning". For example, junior employees can test their supervisory skills on interns [11], and supervisors can intervene in interns' performance and improve their teaching skills [12].

3. Project Team / Brigade team. Many companies use external specialists who temporarily work in the company's project team as a source of hiring new staff. External members of the company's project team who have successfully fulfilled their role in the project and contributed to its success can be valuable asset for further support of project implementation results. Sometimes recruiting staff can be targeted simultaneously at individuals and existing teams. That is, staff can be acquired individually and collectively at multiple levels and deployed within companies. A term like «cluster hiring» was used to describe this process. Cluster hiring approach employment costs will be lower per employee than individual staffing approach employment costs. Additionally, Teams staffed through a cluster hiring approach will be more motivated and perform at a higher level than teams staffed through an individual approach as a function of managerial and self-expectancies. [ 13 ]. The essential advantage of recruiting staff from the project team for the new project team is that the costs associated with the project are lower using a combined team, compared to the solution of forming a unique team or a contract-based one. [14]

4. Recruitment with a probationary period. One of the ways to protect a company from hiring an unsuitable employee is to conclude an employment contract with a probationary period. A probationary period allows an employer to see how a person performs their duties before making a long-term commitment to that person. Probationary employees motivate older «lazy» employees to be more «hardworking». The main disadvantages of external recruitment for a company are the risk of hiring candidates who later prove that they cannot maintain the high potential they demonstrated during the selection process and the higher cost of hiring staff. [15].

The greatest benefit of probation is the evaluation of the newly hired employee's suitability for permanent employment and the opportunity to correct errors in recruitment and selection without incurring costs. [16]. On the other hand, the employer cannot be sure of the employee either since the employee may keep on searching for another job and give up the contract executed during the probation period as soon as he/she identifies another preferable job. The disadvantage of Recruitment with a probationary period is that the company does not have a 100% guarantee of hiring the employee, since the employee can continue to look for another job and refuse the contract concluded during the probationary period as soon as he determines another preferred job. [17].

To make informed decisions on hiring personnel, it is proposed to use a matrix that would quickly and efficiently find and attract the specialists needed for the job. During the study, four methods of personnel search were considered and analyzed: Startup/Business incubator, Internship with subsequent employment, Project team/Brigade team, and Recruitment with a probationary period, the Recruitment and Staff Selection Matrix was developed. The Recruitment and Staff Selection Matrix is a method that helps to understand, analyze, and prioritization of approach in the company strategy of recruiting and hiring personnel management. According to RSSM, all recruitment and selection methods can be divided into four groups:

1. Long and innovation

2. Not long and innovation

3. Long and non-innovative

4. Not long and non-innovative

Every group of the RSSM corresponds to the method of recruitment and hiring staff. Long and innovation group correspondents with estimate and selection staff during our working in the Project team or Brigade team. The most advanced company pays attention first of all to this group, it is helps to save time and money for other groups. Relatively long working time and high efficiency allow for qualitative assessment of personnel.

Not long and innovation group correspondents with estimate and selection staff during our working in Start-Up or Business incubator. Long and non-innovative correspondents with estimate and selection staff during our working in the probationary period. Not long and non- innovative correspondents with estimate and selection staff during our working in Internship. Based on its strategy of recruiting and hiring of personnel management each company independently chooses which group is most important for it at a certain stage.

Fig.1. Recruitment and Staff Selection Matrix (RSSM)

Source: Compiled by the author based on [2-17]

The detailed study of various methods made it possible to determine the main advantages and disadvantages of each group of recruiting and selection staff. The advantages and disadvantages of Start-Up/ Business Incubator, Internship followed by employment, Project team /Brigade team, and Recruitment with a probationary period are presented in Figure 2. [217].

The study of methods and techniques of different authors made it possible to systematize the factors influencing a company's choice of a particular strategy for selecting and managing personnel recruitment. Factors influencing the use of companies are presented in Table 1.

The main influencing factors include the type of HR management, company HR goals, influencing factors on HR management, and sources of HR financing [2-17]. In this way, financial support for recruiting activities allows you to significantly reduce the cost of hiring personnel. In addition, a separate direction of reducing the cost of hiring personnel is the hiring of cheap personnel from other countries.

Thus, the level of minimum wage in the country acts as a financial component of labor development potential in the conditions of globalization processes from the point of view of the offer of a cheap workforce.

Fig.2. Advantages and disadvantages of groups of recruiting and selection staff

Source: Compiled by the author based on [2-17]

An important condition for ensuring the company's tendency toward stable development is the indisputable application of methods and methods of financial strategies in its activities.

Table 1

Factors influencing a company's choice of a particular recruitment and selection strategy

Therefore, an important part of the company's general strategy for hiring personnel should be the financial strategy and the strategy of recruiting and selecting personnel. The classification of methods recruiting and selecting staff and main their characteristic is schematically presented in Fig. 3.

• Short period with reduced working hours

• Elementary level production tasks

• Partial external financing

• Using internal mentors and coaches

• Sufficient effectiveness

Fig.3. Methos and characteristics of groups of recruiting and selection staff

Source: Compiled by the author based on [2-17]

Conclusions and prospects for further research

The following conclusions were obtained based on the study of existing methods and techniques of recruiting and searching staff, consideration of their advantages and misadventures, and studies of factors influencing decision-making.

First of all, the ability to set priorities and choose the optimal strategy for recruiting staff allows one to effectively use time and complete more operational tasks. Secondly, the determining priority tasks and correct assessment of factors influencing the selection of a group in RSSM help to understand the algorithm of actions and develop an effective strategy for recruiting and selecting staff. In the end, the system of targeted actions in each RSSM group allows HR managers to implement effective using financial resources for recruiting staff.

In this study, only four recruitment and selection methods were selected as the sample. Similar studies can be carried out with further process hiring and adaptation of personnel or other recruiting and selecting methods («The employee recruits employees» method, recruits from outsourcing team, etc.). Future recruitment and selection research could use empirical data on the use of RSSM to gain a deeper understanding of the information and evaluate the effectiveness of each method.

Gratitude. The author would like to thank the Department of Business Management at Masaryk University, Brno, Czech Republic for supporting Ukrainian scientists. The researcher expresses gratitude Head of the Department of Business Management, Ph.D., doc. Ing. Mgr. Jakub Prochazka for facilitating ongoing training and research work.

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Анотація

Системний підхід до стратегії управління підбором і наймом персоналу

Соболєва-Терещенко Олена Анатоліївна

PhD, стажистка кафедри менеджменту бізнесу Університет Масарика Брно, Чехія

У статті представлено комплексний аналіз та систематизація напрямів підбору та найму персоналу в межах розробки кадрової стратегії компанії. В сучасних умовах ринку праці важливу роль в управлінні людськими ресурсами відіграє ефективна стратегія HR менеджменту, яка дозволяє компанії задовольнити потреби в конкурентоспроможних кадрах і скорочує час і фінансові витрати на пошук та відбору персоналу.

Збалансована та обґрунтована стратегія HR менеджменту передбачає розробку компанією стратегічного плану пошуку, відбору та найму кадрів на основі комплексного підходу з урахуванням часового інтервалу. У зв'язку з цим актуальною є розробка матриці пошуку та відбору кадрів заснованої на системі поширених теоретичних поглядів, ідей та принципів.

У статті розглядаються чотири основні періодичні методи пошуку та відбору персоналу, такі як стартапи, стажування, проектні команди, а також загальноприйнятий набір персоналу з випробувальним терміном, а також аналізуються переваги та недоліки кожного з наведених методів.

Автором систематизовано такі визначальні чинники пошуку та відбору кадрів в рамках HR менеджменту, як тип управління персоналом, кадрові цілі компанії, фактори впливу на управління персоналом, джерела фінансування персоналу. На основі аналізу існуючих методів відбору персоналу автором розроблено Матрицю Найму та Відбору Кадрів (МНВК).

Особливі умови та опції МНВК можуть бути використані компаніями при розробці комплексних систем і стратегічних планів з підбору та найму необхідного персоналу в сучасних умовах розвитку HR менеджменту.

Ключові слова: система управління персоналом; управління талантами; програма стажування; управління проектами; програма відбору; методи підбору персоналу; концептуальна основа.

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