Archive for the HR Management Articles Category

Self Assessment of Career Interest

Posted in Recruitment on November 11, 2008 by khoirulkhuluq

Item from a self-assessment exercise to determine personal wants.

1. Select the three personal wants which are most important to you in your next job assignment and circle them below.

2. Select the three personal wants which are least important to you in your next career step and draw a line through them.

3. Add personal wants you don’t find on the list.

Personal wants :
Free time
Power
Fun work
Money
Independence
Security
Professional Stature
Challenge
Freedom from Worry
Friends
Prestige
Cultural Opportunities
Geographic location
Recreation
Visibility
Climate
Educational Facilities
Leadership
Expertness
Time with Family

4. Does your present job setting offer possibilities for satisfying what you want most in your next step? If yes, describe how. If no, what setting is indicated?

5. Do you want your next job assignment to satisfy your wants? If yes, how? If no, why not?

6. Decide what you want most in your next job assignment and describe it.

7. Describe the major activities you can do and will do to gain what you want, but don’t use job titles or positions to describe what you will do. Describe the type of activities you’ll perform to achieve what you want. List at least five activities you can perform now.

Examples: I’ll analyze data for financial records.
I’ll collect more from creditors.
I’ll marry the boss’s daughter.

8. Do you need to develop some new skills or abilities to improve your potential for your next step ? It so, what skills or abilities would you develop?

9. Summarize what you personally want and what you can do and will do to satisfy your wants.

HR Audit Aspects

Posted in HR Management Articles on November 11, 2008 by khoirulkhuluq

There are 14 HR Audit aspects:

  1. Business and Human Resources Strtegy
  2. Human Resources Policy
  3. Manpower Planning
  4. Recruitment and Selection
  5. Employee Retention
  6. Training and Development
  7. Performance Management
  8. Compensation and Reward
  9. Career Development and Secession Planning
  10. Industrial Relation
  11. Human Resources Information System (HRIS)
  12. Retirement
  13. Employee Communication
  14. Human Resources Cost

Source: www.explorehr.org

Choosing the Right Company for You

Posted in Recruitment on October 23, 2008 by khoirulkhuluq

Cyclical economies, corporate restructurings, industry upheavals and changes in personal circumstances, preferences and priorities all contribute to labour turnover in the workplace. A recent bayt.com HR research report (Human Resource Overview 2008) indicated that in the past 5 years alone, 71% of respondents, the vast majority, have changed jobs at least once, and on average people in the Middle East are changing jobs once in around two and a quarter years. In an era of higher workplace volatility, professionals often find themselves wondering where to work next and uncertain how to evaluate the different job offers. This article explores some of the dimensions to explore in deciding what company to work for.

Dynamics of Industry

Presumably before deciding what company to work for you have done your research on the industry and determined that this is the optimal industry for you. Considerations to take into account in deciding on an industry include size of industry, past and expected growth rate, competitive landscape, barriers to entry, profitability of industry, stability, vulnerability to seasonal and economic cycles and vulnerability to shocks induced by changes in the regulatory framework or technological advancements.

Size of Company

While there is no right or wrong size of company, there will be a size that agrees best with your career level, preferences, priorities, objectives and character.

Larger companies:-

Larger companies typically have sprawling HR departments and sophisticated HR policies that protect the employee and focus on maximizing employee productivity, engagement and satisfaction. They tend to pay better due to larger and revenue bases and profitability and they typically pay on time and offer more benefits including sophisticated training and development programs. Larger companies are also typically more stable and sustainable financially which makes it easier to think ahead in your career and plan for the long run.

On the downside, larger companies can be more rigid, bureaucratic and inflexible as well as impersonal, with less room for visibility at the top and more layers of management approval required for every decision. Moreover, positions tend to be clearly defined and delineated with less room for ambiguity and more specialisation required, so you are less likely to be involved in varied projects that challenge and extend your skill-set in lateral directions.

Smaller companies:-

In a small company your efforts may be noticed more rapidly, there is usually more visibility by top management and you are more likely to participate in and be exposed to multiple tasks and projects and in the process learn valuable new skills. There tends to be more flexibility in smaller companies and it is typically easier to get buy-in for and implement change. Opportunities for growth and advancement are great if your performance is good and you are confident of your abilities, as it is easier to shine and be noticed in a small company.

However if your performance is not up to par or you are not a great cultural fit, that is quite likely to be quickly noticed too. Moreover, if it is a small family business, the senior executive positions may be taken by family members which limits room for advancement at the very top. Often, remuneration packages are less in smaller companies due to smaller revenue bases and profitability. Training opportunities may also be very limited in smaller companies and HR systems and policies are often very basic. Small companies that are not financially sound may miss employee salaries and bonus payments and their long-term viability and sustainability is often jeopardized, especially if barriers to entry in the industry are low and the company’s product and service line is not clearly differentiated.

Market Share of Company

Ideally, you should chose a company with a robust and growing market share that is at the forefront of its industry and in no danger of being made obsolete by the competition. A company that is losing customers and shrinking its business may not have room for you in the long run. Look for companies that lead in their industry and are performing well, acquiring new clients and retaining the business and loyalties of old ones.
Unique Value Proposition

Look for a company that has clearly and cleverly differentiated itself from its competition and can articulate its unique value propositions confidently and articulately. Lack of a clear value proposition means no ammunition in the face of incumbent competitors or copycat competitors who jump on the bandwagon where barriers to entry are low.
Products and Services Offered by Company

Make sure you are comfortable with and will enjoy working with the array of products and services the company offers. It is not too wise to take a job in a company where you will not take pride or feel a sense of ownership in the products you represent. Also make sure the line of products/services has a bright future and is not in danger of being obsoleted by new technologies or market trends and preferences.

Company Culture and Values

Not every great company will necessarily be the right cultural fit for you. Ask about the culture and the team and try to ensure that the ethics, values, team dynamics, management style and atmosphere are agreeable to you.

Reputation of Company

A company’s reputation is key. Ask a lot of questions and do your research to make sure you get a firm grasp of it. Understand the track record of the company and its image in the market. Ideally you should select a company with high and very positive brand recognition and association and a stellar reputation.

Management Team

Management styles vary. It is important that you are comfortable with the style at a particular company and feel you can meet your objectives, thrive, grow and even excel in this environment. Look for management who are highly respected and revered in the industry and from whom you will have a lot to learn.

Employee Turnover

Some companies have substantially higher employee turnover than others and these should be approached very carefully if you are looking for long-term employement, job security and career stability. Understand why a certain position is open, what happened to the predecessors and what the management’s attitude is towards employee development and retention before you risk becoming another victim in the turnover wheel.

Source:http://www.bayt.com/job/career-article-2681

The Most Rare Vacancy in Indonesia

Posted in Recruitment on October 14, 2008 by khoirulkhuluq

Have you experiences to find out Part time Job?

It’s difficult to find this kind of vacancy. if there is the vacancy they will not pay us. from my experience only technical job that needs part timer. Until now, I have not get the part time job. I do not it’s because I have wrong strategy to apply or there are now the vacancy.

From the experience I just take the conclusion, In Indonesia there are a lot of Jobless rather than the vacancy that available. so company can easily get the people with low salary for the clerk job. why should we hire Part timer if there are a lot of people that can be paid as much as what the part timer got.

so , that my point of view. Do you have other opinions?
Please write your comment! or You have the vacancy please send it to my email.

Salary Negotiations: the Basics

Posted in Recruitment on September 13, 2008 by khoirulkhuluq

Negotiate

Yes, do negotiate. Employers actually EXPECT you to negotiate your package even when they pretend they don’t so don’t deprive them, or yourself, of that pleasure.

Negotiate After You Have An Offer

The time to negotiate your salary is after the employer has decided he wants you on board and has made you a concrete offer – not in the elevator on the way up to the Interview or after an interview question you think you’ve particularly aced. An offer indicates that the employer wants you on board and is convinced you have the skillset and potential to be a valuable addition to the team. You now have the upper hand and should use it to secure a compensation package commensurate with your worth. It is far easier to negotiate a satisfactory package at this stage when the employer really wants you and is focused on getting you on board, than after you are on board and firmly entrenched at a given salary level and job description. It is unlikely you will ever be in a better position to negotiate a good package than you are at this stage.

Establish Job Responsibilites

Clarify your job responsibilities before beginning to negotiate the compensation. Make sure you have all the facts pertaining to the new position and are very clear about your role, responsibilities and the job title. This detailed knowledge of the position will come in handy as you negotiate your package.

Determine Your Salary Range Beforehand

Before you can begin negotiating, you need to determine a salary range that you can base your discussions with the employer on.

Firstly, determine the minimum salary you could possibly accept, and make sure this is a salary that you can survive on. This minimum is not to be revealed to the employer in your negotiations.

Next, determine a reasonable mid-point salary based on what the job responsibilities are, what you have to offer the employer and what you are worth in the market. To get a realistic idea of what the position is worth, research the market. Look at published annual salary surveys and job ads for similar positions in newspapers, magazines and on internet job sites and talk to friends in the industry and recruitment agents. If you are applying to a position at the right level, there should not be a large discrepancy between what the position is worth based on your research and what you are worth based on your experience, education, compensation history and what you have to offer the position.

Finally, determine an extremely generous salary level that is not too unrealistic for the position and that you would be extremely ecstatically happy to receive.

Get the Employer to Reveal his Hand First

Always get your employer to reveal his hand first to avoid pricing yourself out of the game or limiting the discussions prematurely. If you are first to put a number on the table, you run the risk of being perceived as ‘overqualified’ if your range is too high or casting doubts on your professional abilities and track record if you shortsell yourself. Revealing your expectations or salary history will limit your negotiating range and remove a lot of the leverage you otherwise have.

Often, the employer will make you a verbal offer and throw the salary ball into your field by asking you what salary you expect, or what salary you made in your previous position. Try to throw the ball right back in the employer’s field by countering with another question, such as “What do you think someone with my track record, experience and skills could make in this position?” or “You now have a good idea of my skills and track record and potential. What do you think is a fair salary given the job’s requirements and responsibilities?”

Do not reveal your previous salary if you can possibly help it. Focus the discussion instead on what your background, responsibilities and potential contributions are worth in this position. Your goal should be to maximize your worth and potential value to this employer through effective negotiation – the value your previous employer placed on you should be irrelevant. Remember, what you are worth to this employer is a function of the value-added you can bring to this particular job and your potential contributions in the new role, not a function of how your skills were utilized (or misutilized) in the last job.

If absolutely pressed for a number and the employer will not give you an idea of his target range despite all your best efforts to gain the upper hand, you can present the employer with the range you have determined beforehand. The ‘expected’ salary range you reveal will have what is really your midpoint as the minimum, with the upper bound representing your ‘dream’ salary. Make sure you always start your negotiations with a range, not a specific salary level.

Let the Games Begin

You are now officially at the starting line, equipped with a verbal offer, your own well-studied salary range and a solid understanding of your job responsibilities in this new role. The negotiations will be fired either with the employer revealing his salary range for the position or, despite all your best efforts to reverse the roles, you revealing your predetermined ‘expected’ salary range first.

Best case scenario: You have played your cards right and the employer extends you an offer that is at the upper bound or significantly above your expectations. Your downside risk has been eliminated and you can now focus your discussions on making a good situation even better. If your predetermined salary range was $75,000-$90,000 and the employer has offered you $90,000 – $95,000, you can counter with something akin to “That is close to the range I had in mind. My expectations given my background and the job responsibilities were closer to $95,000 – $105,000 with $95,000 really having been my very minimum. How much flexibility do you have on the upside?”

Worst case scenario: You have prematurely limited your negotiating range by revealing your hand too soon and the employer counters with a lower range, or the employer starts the negotiations with an offer below your expectations. This is where your negotiating savvy really comes into play.

Before you begin to negotiate, make sure you and the employer are roughly in the same ballpark. If your well researched and well thought out range of $75-90,000 was met with an offer of $50-55,000 from the employer, you have either misconstrued the job responsibilities or the employer is paying significantly below the market. This is where your minimum salary comes in. Does the range meet your minimum threshold? If not and your negotiations don’t bring you upto that minimum requirement, this may well be the wrong position and/or company for you!

Justify Your Counter-Offer

Your $75-90,000 range was met with a $70-75,000 offer from the employer. All is not lost. You will keep the discussion alive by coming back with a sell proposition along the lines of “Well let me see, the job’s responsibilities as I understand them are ABC” at which time you carefully recite in detail all the various aspects of the job. “I really feel that someone with my track record and qualifications could be making a minimum of $75,000 on the job. I was actually looking for a salary much closer to the $80,000 mark.” You then proceed to justify your range. Confirm to the employer that you are very interested in working with the company and that you feel you would really fit into the team and could make a significant contribution there. Recap on your most relevant work experience and mention again the skills you will immediately put to productive use on the job. Mention that you feel your ideal salary is actually very realistic given your experience and the job requirements.

Gain Leverage by Negotiating the Job Responsibilities

If the employer’s range is carved in stone despite all your well-rehearsed negotiation tactics, move to another stone. You do this by altering the role, albeit modestly to justify a higher salary. This is where your detailed knowledge of the position comes in.

You can do this in three ways. Firstly, you can add to the list of job requirements a task or responsibility you have thought of beforehand; one that you have either read about, thought of yourself or heard about from a friend in the industry. Secondly, you can seize on one of the problems the employer mentioned during the Interview and offer a solution that you would personally be responsible for. Thirdly, you can ask the employer outright, what added responsibilities he would ideally like to have the person holding this job ultimately assume if they were brought upto speed quickly enough. Another way to pose the latter question is what added responsibilities or areas does the employer wish your predecessor had taken charge of. Asking the question “What are some of the areas you would like improved on” or “What are some of the problems that my predecessor faced” during the Interview comes in useful at this stage of the negotiations as you try to establish additional value-added ground.

The ‘business solution’ or added responsibility you come up with need not be monumental; in fact you should refrain from making any big promises. It can be something as simple as a Marketing Executive offering to arrange a brief monthly newsletter for the firm’s clients, or a database that would speed client reporting up, or a slightly revised format for the monthly reports that would be more visually appealing. The important thing is that once you have elevated the position to a slightly higher plateau, you can then proceed to justify your ‘ideal’ salary as commensurate with the increased responsibilities. You can go back to the employer with “From what I understand, my role in this position would be XYZ. However, I am also bringing to the job the following function(s) and responsibilities . . . ” at which point you recant the additional responsibilities.

Justifying your desired salary as being commensurate with a higher level of responsibility is an excellent way to jumpstart stalled negotiations.

Negotiate the Package not just the Salary

You should be ready to negotiate the entire package, not just the salary. Remember that you can enhance a less than stellar salary by negotiating the perks. If your most ardent, well-rehearsed salary negotiation tactics were ineffective at boosting the starting salary, you can try to gain the lost ground at this stage of the game. Your discussions can include medical insurance, car and housing allowance, children’s education, plane tickets home for expats, club memberships and further education and professional training for yourself. Try to get any courses, seminars or further education you intend to take included in your package. In many industries you can negotiate a guaranteed bonus at a given date or a sign-up bonus. You can try to secure a commitment to a minimum salary increase and/or title promotion at a prespecified date in the future providing you meet certain performance criteria. At the very minimum, you can ask for a performance (and salary) review a few months after joining

Sources: http://www.bayt.com/job/career-article-68

Job Interview Tips

Posted in Recruitment on September 13, 2008 by khoirulkhuluq

Interview skills are learnt. Do your pre-interview homework, learn what questions you can anticipate and how best to answer them. Practice and preparation are key for a successful interview.

Your CV has impressed, your research and networking activities have paid off and you have landed an Interview with your company of choice. Now to make sure you turn this Interview into a pot of gold and secure the job of your dreams. Below are some general tips and guidelines that should assist you through the Interview:
1. Research

Most of you will have researched your company of choice thoroughly in order to get to this point. For those who haven’t, it is essential that you do some background research on the company and the job before you walk in that door. The Interviewer will expect you to know a little about the industry and the company and will be very impressed if you are familiar with specific events, news and concerns relating to the business. Newspapers, industry and trade magazines, local libraries and the Internet are all good sources of information. Feel free to pick up the phone and ask the company for their annual reports and any marketing materials – most companies are more than happy to oblige. The very minimum information you will want to know is what lines of business the company is in, what the requirements and responsibilities are for the job you are applying for and the latest news pertaining to the company. Specific information about the company’s new product lines, competitive positioning, plans for the future, vision, mission and values, business objectives and key personnel changes will further impress as will any information that bears directly to the position you are applying for. Treat knowledge as a primary competitive advantage; the more information you have about the company and role, the higher your chances of success.

2. Be prepared

It is highly advisabe that you take with you to the interview a notebook to take notes and extra copies of your CV (in many cases the employer will have misplaced it, have an unclear copy if it was faxed, or simply expect you to provide it). In many types of jobs, you may want to take with you examples of your work eg. past creative work if you are in advertising, design or similar roles, published work if you are a writer etc. You may also want to take with you references and copies of your educational certificates just in case, although these are typically not required at the initial interview stage.

3. Dress for success

Your first Interview is the first impression an employer will have of you and it is essential to make a favorable first impact. You should always plan to dress relatively conservatively for the first Interview even if the job involves casual wear. You can always dress down in later meetings. Generally, the image you want that first meeting is clean, well-groomed and conservative.

4. Be punctual

Make sure you arrive for the Interview a good 15 minutes early. Allow yourself plenty of time for any potential mishaps eg traffic jams, unclear directions, public transportation difficulties etc. Showing up late indicates disrespect for the employer’s time and hints at sloppy planning and poor time-management and judgement.

5. Attitude counts

This is the time to show off your interpersonal skills. Employers are looking for certain key character traits and you need to demonstrate them at the Interview. Keep the following in mind:

* Listening skills. Make sure you listen intently, let the Interviewer complete his sentences and you don’t interrupt. At the same time, show interest in what he is saying and ask pertinent and interesting questions. Good active listening skills are essential in any role.
* Enthusiasm. In many cases, you may not be ideally qualified for the position, or you may have a steep learning curve ahead of you. You need to demonstrate to the Employer that you are extremely interested in the position and have the drive and ambition and keenness it takes to succeed! Enthusiasm is contagious and employers are always keen to add enthusiastic members to their team in the hopes that their positive attitude rubs off on the team and lifts the general spirit of the workplace. Your positive attitude will impress the interviewer as long as it is genuine and not overplayed and he will leave the Interview with a favorable ‘feel’ about you.
* Eye contact. Maintain professional eye contact with the Interviewer. Looking away continuously suggests distractibility and disinterest. Looking down suggests shyness and lack of confidence. By all means though keep it natural and feel free to nod your head and smile and even laugh where appropriate. Try to avoid staring the employer down, nodding superfluously or fixing a fake grin on your face out of nervousness.
* Emotional Intelligence. You need to demonstrate to the Interviewer that you have a high level of emotional intelligence and are willing and able to detect and adapt readily to new environments, demands, people, work styles etc. The Interview is a good place to demonstrate this. Be sensitive to the Interviewer’s personal style by paying attention to his general behavior, his demeanor, his office space and the types of questions he asks, and tailor your answers and tone and pace of delivery accordingly.
* Professionalism. Above all, be professional. Respect the Interviewer-Interviewee boundaries at all times and do not behave in an overly friendly or casual fashion with the Interviewer. Avoid bringing up your personal life unless in a directly relevant manner, do not comment on politics, religion or any other controversial topics dear to your heart, do not stray from the Interview topics and keep your answers factual, honest and professional.

6. Have the answers

There is no telling what style an Interviewer will take and what questions he will come up with. Interviews range from the very structured and professional to ad hoc conversations where the employer may simply ask you to talk about yourself. In most well-established corporations however, certain questions are quite standard and we recommend you take the time to really think about them, develop answers and find evidence to support your answers from past experiences and qualifications. Read up on common and uncommon interview questions before the interview in preparation and know your CV inside and out so that no question about your career takes you unawares. Take time to introspect and reflect on what has enabled you to succeed in the past and how you intend to succeed in the future in the new role. Practice mock interviews with friends or run through possible scenarios in your mind in advance of the interview. Bayt has prepared a list of Common Interview Questions that you can start practicing on. Practice visualisation – if you see yourself already in the new role and succeeding in your new capacity, chances are the interviewer may see you in that capacity too; just make sure you are fully aware of what it is that has enabled you to obtain the role and what it is about your skills, qualifications, character traits and experience that has enabled you to succeed so you can communicate these factors clearly, honestly and and convincingly to the employer.

Sources: http://www.bayt.com/job/career-article-72

Checklist for Hiring Employees

Posted in HR Management Articles, Recruitment on July 10, 2008 by khoirulkhuluq

1. Determine the need for a new or replacement position.
2. Think creatively about how to accomplish the work without adding staff (improves processes, eliminate work you don’t need to do, divide work differently, etc.).
3. Hold a recruiting planning meeting with the recruiter, the HR leader, the hiring manager, and, potentially, a coworker or internal customer.
4. Develop and prioritize the key requirements needed from the position and the special qualifications, traits, characteristics, and experience you seek in a candidate. (These will assist your Human Resources department to write the classified ad; post the job online and on your Web site; and screen resultant resumes for potential candidate interviews.)
5. With HR department assistance, develop the job description for the position.
6. Determine the salary range for the position.
7. Decide whether the department can afford hiring employees to fill the position.
8. Post the position internally on the “Job Opportunities” bulletin board for one week. If you anticipate difficulty finding a qualified internal candidate for the position, state in the posting that you are advertising the position externally at the same time.
9. Send an all-company email to notify staff that a position has been posted and that you are hiring employees.
10. All staff members encourage talented, qualified, diverse internal candidates to apply for the position. (If you are the hiring supervisor, as a courtesy, let the current supervisor know if you are talking to his or her reporting staff member.)
11. Interested internal candidates fill out the Internal Position Application.
12. Schedule an interview, for internal candidates, with the hiring supervisor, the manager of the hiring supervisor or a customer of the position and HR. (In all cases, tell the candidates the timelines you anticipate the interview process will take.)
13. Hold the interviews with each interviewer clear about their role in the interview process. (Culture fit, technical qualifications, customer responsiveness and knowledge are several of the screening responsibilities you may want your interviewers to assume.)
14. Interviewers fill out the Job Candidate Evaluation Form.
15. If no internal candidates are selected for the position, make certain you clearly communicate with the applicants that they were not selected. Whenever possible, provide feedback that will help the employee continue to develop their skill and qualifications. Use this feedback as an opportunity to help the employee continue to grow their career.
16. If an internal candidate is selected for the position, make a written job offer that includes the new job description and salary.
17. Agree on a transition timeline with the internal candidate’s current supervisor.
18. If you’ve created another internal opening, begin again.
19. End the search.
20. If no qualified internal candidates apply, extend the search to external candidates, if you didn’t advertise the position simultaneously. Develop your candidate pool of diverse applicants.
21. Spread word-of-mouth information about the position availability in your industry and to each employee’s network of friends and associates.
22. Place a classified ad in newspapers with a delivery reach that will create a diverse candidate pool.
23. Recruit online. Post the classified ad on jobs and newspaper-related websites including the company website.
24. Post the position on professional association websites.
25. Talk to university career centers.
26. Contact temporary help agencies.
27. Brainstorm other potential ways to locate a well-qualified pool of candidates for each position.
28. Through your recruiting efforts, you’ve developed a pool of candidates. People are applying for your open job. Whether you have developed a candidate pool in advance of the job opening or you are searching from scratch, the development of a qualified pool of candidates is crucial.
29. Send postcards or emails to each applicant to acknowledge receipt of the resume. (State that if the candidate appears to be a good match for the position, relative to your other applicants, you will contact them to schedule an interview. If not, you will keep their application/resume on file for a year in case other opportunities arise.)
30. Once you have developed a number of applicants for the position, screen resumes and/or applications against the prioritized qualifications and criteria established. Note that resume cover letters matter as you screen.
31. Phone screen the candidates whose credentials look like a good fit with the position. Determine candidate salary requirements, if not stated with the application, as requested.
32. Schedule qualified candidates, whose salary needs you can afford, for a first interview with the hiring supervisor and an HR representative, either in-person or on the phone. In all cases, tell the candidates the timeline you anticipate the interview process will take.
33. Ask the candidate to fill out your official job application, upon their arrival for the interview.
34. Give the candidate a copy of the job description to review.
35. Hold screening interviews during which the candidate is assessed and and has the opportunity to learn about your organization and your needs.
36. Fill out the Job Candidate Evaluation Form for each candidate interviewed.
37. Meet to determine which (if any) candidates to invite back for a second interview.
38. Determine the appropriate people to participate in the second round of interviews. This may include potential coworkers, customers, the hiring supervisor, the hiring supervisor’s manager and HR. Only include people who will impact the hiring decision.
39. Schedule the additional interviews.
40. Hold the second round of interviews with each interviewer clear about their role in the interview process. (Culture fit, technical qualifications, customer responsiveness and knowledge are several of the screening responsibilities you may want your interviewers to assume.)
41. Candidates participate in any testing you may require for the position.
42. Interviewers fill out the candidate rating form.
43. Human Resources checks the finalists’ (people to whom you are considering offering the position) credentials, references and other qualifying documents and statements.
44. Anyone who has stated qualifications dishonestly or who fails to pass the checks is eliminated as a candidate.
45. Through the entire interviewing process, HR, and managers, where desired, stay in touch with the most qualified candidates via phone and email.
46. Reach consensus on whether the organization wants to select any candidate (via informal discussion, a formal discussion meeting, HR staff touching base with interviewers, candidate rating forms, and so on). If dissension exists, the supervising manager should make the final decision.
47. If no candidate is superior, start again to review your candidate pool and redevelop a pool if necessary.
48. HR and the hiring supervisor agree on the offer to make to the candidate, with the concurrence of the supervisor’s manager and the departmental budget.
49. Talk informally with the candidate about whether he or she is interested in the job at the offered salary and stated conditions. Make certain the candidate agrees that they will participate in a background check, a drug screen and sign a Non-compete Agreement or a Confidentiality Agreement, depending on the position. (This should have been signed off on the application.) If so, proceed with an offer letter. You can also make the job offer contingent on certain checks.
50. If not, determine if negotiable factors exist that will bring the organization and the candidate into agreement. A reasonable negotiation is expected; a candidate that returns repeatedly to the company requesting more each time is not a candidate the company wants to hire.
51. If the informal negotiation leads the organization to believe the candidate is viable, HR will prepare a written position offer letter from the supervisor that offers the position, states and formalizes the salary, reporting relationship, supervising relationships, and any other benefits or commitments the candidate has negotiated or the company has promised.
52. The offer letter, the job description and the Company Non-Compete or Confidentiality Agreement are provided to the candidate.
53. The candidate signs the offer documentation to accept the job or refuses the position.
54. If yes, schedule the new employee’s start date.
55. If no, start again to review your candidate pool and redevelop a pool if necessary.

COST OF EMPLOYEE TURNOVER

Posted in HR Management Articles, Turnover on July 10, 2008 by khoirulkhuluq

The firstly, Costs Due to a Person Leaving – there are eleven items can be listed, those items are as follows:
1. Calculate the cost of the person(s) who fills in while the position is vacant. This can be either the cost of a temporary or the cost of existing employees performing the vacant job as well as their own. Include the cost at overtime rates.
2. Calculate the cost of lost productivity at a minimum of 50% of the person’s compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100% if the position is completely vacant for any period of time.
3. Calculate the cost of conducting an exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments, COBRA notification and administration, and the cost of the various forms needed to process a resigning employee.
4. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. Calculate the cost of the manager who conducts their own version of the employee exit interview.
5. Calculate the cost of training your company has invested in this employee who is leaving. Include internal training, external programs and external academic education. Include licenses or certifications the company has helped the employee obtain to do their job effectively.
6. Calculate the impact on departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. Calculate the cost of department staff discussing their reactions to the vacancy.
7. Calculate the cost of severance and benefits continuation provided to employees who are leaving that are eligible for coverage under these programs.
8. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula of 50% of the person’s annual salary for one year of service, increasing each year of service by 10%.
9. Calculate the cost impact of unemployment insurance premiums as well as the time spent to prepare for an unemployment hearing, or the cost paid to a third party to handle the unemployment claim process on your behalf.
10. Calculate the cost of loosing customers that the employee is going to take with them, or the amount it will cost you to retain the customers of the sales person, or customer service representative who leaves.
11. Subtract the cost of the person who is leaving for the amount of time the position is vacant.

The secondly, Recruitment Costs – there are eight items can be listed, those items are as follows:
1. The cost of advertisements (from a $200.00 classified to a $5,000.00 or more display advertisement); agency costs at 20 – 30% of annual compensation; employee referral costs of $500.00 – $2,000.00 or more; internet posting costs of $300.00 – $500.00 per listing.
2. The cost of the internal recruiter’s time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of a recruiter’s assistant who will spend 20 or more hours in basic level review of resumes, developing candidate interview schedules and making any travel arrangements for out of town candidates.
4. The cost of the hiring department (immediate supervisor, next level manager, peers and other people on the selection list) time to review and explain position requirements, review candidates background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals. This can take upwards of 100 hours of total time.
5. Calculate the administrative cost of handling, processing and responding to the average number of resumes considered for each opening at $1.50 per resume.
6. Calculate the number of hours spend by the internal recruiter interviewing internal candidates along with the cost of those internal candidates to be away from their jobs while interviewing.
7. Calculate the cost of drug screens, educational and criminal background checks and other reference checks, especially if these tasks are outsourced. Don’t forget to calculate the number of times these are done per open position as some companies conduct this process for the final 2 or 3 candidates.
8. Calculate the cost of the various candidate pre-employment tests to help assess a candidates’ skills, abilities, aptitude, attitude, values and behaviors.
The thirdly, Training costs – there are five items can be listed, those items are as follows:
1. Calculate the cost of orientation in terms of the new person’s salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials.
2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4 – 6 weeks or more of classroom training.
3. Calculate the cost of the person(s) who conduct the training.
4. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.
5. Calculate the cost of supervisory time spent in assigning, explaining and reviewing work assignments and output. This represents lost productivity of the supervisor. Consider the amount of time spent at 7 hours per week for at least 8 weeks.

The fouthly, Lost Productivity Costs, as the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity:
1. Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2 – 4 weeks. The cost therefore is 75% of the new employees full salary during that timeperiod.
2. During weeks 5 – 12, the employee is contributing at a 50% productivity level. The cost is therefore 50% of full salary during that timeperiod.
3. During weeks 13 – 20, the employee is contributing at a 75% productivity level. The cost is therefore 25% of full salary during that timeperiod.
4. Calculate the cost of coworkers and supervisory lost productivity due to their time spent on bringing the new employee “up to speed.”
5. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.
6. Calculate the cost of lost department productivity caused by a departing member of management who is no longer available to guide and direct the remaining staff.
7. Calculate the impact cost on the completion or delivery of a critical project where the departing employee is a key participant.
8. Calculate the cost of reduced productivity of a manager or director who looses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle.
The fifthly, New hire costs – there are two items can be listed, those items are as follows:

1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles, pagers.
2. Calculate the cost of a manager’s time spent developing trust and building confidence in the new employee’s work.
The fifthly, Lost Sales Costs – there are two items can be listed, those items are as follows:

1. For sales staff, divide the budgeted revenue per sales territory into weekly amounts and multiply that amount for each week the territory is vacant, including training time. Also use the lost productivity calculations above to calculate the lost sales until the sales representative is fully productive. Can also be used for telemarketing and inside sales representatives.
2. For non-sales staff, calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.

The original article can be found in here

Compensation in Indonesia

Posted in Compensation and Benefit In Indonesia on July 7, 2008 by khoirulkhuluq

The wages policy that protects workers/laborers as mentioned under subsection (2) shall include:
a. Minimum wages;
b. Overtime pay;
c. Paid-wages during the absence;
d. Paid-wages because of activities outside of his job that he has to carry out;
e. Wages payable because he uses his right to take a rest;
f. The form and method of the payment of wages;
g. Fines and deductions from wages;
h. Other matters that can be calculated with wages;
i. Proportional wages structure and scale;
j. Wages for the payment of severance pay; and
k. Wages for calculating income tax.

“ (UU No. 13 2003, Section II, article 88, Verse 3)

UMP 2008

Posted in Compensation and Benefit In Indonesia on June 28, 2008 by khoirulkhuluq