Midterm

At what point has a firm grown large enough that it requires an internal human resource department. For some companies it is not economically viable to have a human resource department. Human resources are generally perceived as an expense department. This means that it takes money away from a corporation. A company of 2 people would unlikely need a human resource department. However the size of a corporation does not necessarily determine the need of a human resource department. Many companies large and small outsource this function to recruitment agencies or special firms.

One of the functions a HR department should entail is recruitment. This basically means hiring people. HR can determine which candidates to interview and hire. This must usually be done in conjunction with a direct manager. Even thought HR should provide advice, the manager would still have to work with this person on a daily basis. If both people agree after the interview assuming the budget is in place, they can hire a candidate. This important function should be part of any HR department. I recommend 1 recruiter.

Another function of HR should be transfers and promotions. Internal moves both lateral and vertical are important in career development. A guideline should be developed to determine a reasonable time period that employees should remain in 1 job. A concern with a small company versus a large company is flexibility. In small companies one person can wear numerous hats. For example when I worked at CNRL there was a minimum period of time 1 year before you could move job roles. From a corporation perspective this is good to ensure business continuity and job completion. So this is important for a business unit. However from an employee perspective this is not a benefit. What about candidates that are clearly superior performers. Should they have to wait an unreasonable amount of time before being formally moved to a more suitable position? I know I left CNRL because there were not significant opportunities for transfers. This policy for a firm of 150 people should be 6 months. That is a reasonable period of time which exceeds a standard duration of 3 months probation. Also most candidates can get into a reasonable level of performance between 6 months and 1 year. This is my suggestion. Some companies have no restrictions once you enter a firm. When I worked at BMO I was promoted 4 times in 1 year. Besides people in small companies who do not get the opportnunity to advance can leave as well. Given the current labour shortage in all firms flexibility is paramount regarding transfers. I recommend 1 HR manager. HR manager can also serve as a recruiter as well, if the budget doesn’t allow for a recruitment role.

HR should also be in charge of payroll. This function can be outsourced to a 3d party member. However, you have less control if this function is not under your direct control. For smaller companies word can spread quickly if there is a payroll problem. If employee’s payroll is not working properly, people will promptly leave. So, I would suggest a firm of 150 keep payroll down the hall in HR. I know when I worked at a painting company they mishandled my pay stub once during a summer job. I almost quit because it took 1 week to fix the problem. With 150 employees this function is critical and should be included in the human resource department. I would recommend 2 people in the payroll department. Payroll should also work on compensation, overtime and benefits. One payroll supervisor and one payroll person the can check each others work and have one person be the final authority in this subunit of HR department.

Therefore given the size of the firm I recommend a staff of 4-5. This was determined by taking size of firm 150/5 = 3.33% so I recommended 4 if under budget and 5 if on budget for the HR department configuration of a firm size of 150. This department can be expanded if required, but I have constructed my interpretation of a lean and mean HR department.

Seeking talented Human Resource Advisor, Permanent FT in Calgary

Work for a leading (X) corporation

Work for a leading dynamic (X) corporation, where imagination and innovation have no limits. (X) Firm, has a dynamic culture and work environment. We value experience, creativity, hard work and flexibility. Firm (x) is currently seeking a qualified candidate for the role of Human Resource Advisor. The challenges of this role are varied and complex. Reporting to the Manager of Human Resources, the selected candidate will be involved in a wide array of job functions. We are seeking candidates with the following background.

Job requirements

University degree as minimum, graduate degree an asset

Human resource and interviewing training minimum 3 to 5 years

Good interpersonal skills minimum 3 to 5 years

Solid analytical skills minimum 3 to 5 years

Multitasking ability minimum 3 to 5 years

Preference for candidates pursuing CHRP

Primary job functions

Providing support to operating departments in all units of HR department

including fully cycle recruitment

leadership, coaching staff

sourcing candidates from internal, external and 3d party information

advertising, promoting thru post secondary fairs, job fairs, newspaper, print brochures, internet, intranet and digital marketing

interviewing candidates to match needs of firm (x) with client groups

assisting with orientation activities including from full spectrum cycle

Benefits of (X) corporation include

3 weeks vacation starting

10 statutory holidays

medical, dental and complete insurance plan

comprehensive and competitive compensation

 

Interested candidates should apply in confidence to the following individual. Attn: Mr. Alan Dar, HR Manager. Email: Alan.dar@xcorporation.com by the due date of

Question #4)

60 minute interview plan will include 10 questions.

Q1) Tell me about your education and how it relates to the present job you are applying to? This question would be about 5 minutes in duration. This question is an open ended question asking how there skill set and formal education relates to the job. There education can be related or not related to this role. They need to articulate how there formal education is relevant to the firm. It also illustrates how much training is required for this role. Or also the level of initiative taken to be competitive if formal work experience doesn’t exist. Education is a relevant question, but it is not the end all and is all questions.

Q2) Tell about a specific example of how you dealt with a difficult interview candidate? This question could last from 5 to 10 minutes. The question is complex and could be challenging. It assumes that the candidate has prior human resource experience. This can be used as a baseline comparison of recruitment and BDI skills. This question will be weighted more significantly that other questions.

Q3) Give me a specific example of your analytical skills in how you solved a specific HR problem? Time duration on this question would be 5 minutes. This question tests the ability of a person to bring a succinct answer to a complex question. This could prove to be a challenging open question. This question would test the level of analysis and complexity of thinking in a candidate.

Q4) we all have dealt with difficult coworkers, give an example of how you dealt with a coworker, what happened? Question # 4 is 5 minutes in duration. This question would evaluation candidate’s interpersonal skills, communication skills and tact. This question would have significant weighting because Human Resources deal with these issues on a regular basis.

Q5) how do you prioritize your tasks? This question would be 5 minutes long. It’s not a complex question. The objective of this question is to test how organized and logical a person is. It is important but the type of answer you are looking for is very specific.

Q6) Tell me what your 3 strengths are? This question would be 5 minutes with a higher weighting. This question is a qualitative statement that is a benchmark of comparison. If quantitative examples can be provided even well.

Q7) Tell me what your 1 weakness? This would be 5 minute question. It is meant to challenge the candidate and see what flaw exists. No one is perfect and here we are trying to determine fit and ability to be self critical. This question is always tough to answer so it is also an unusual metric.

Q8) why do you think you are the best candidate for this job? This question in a persuasive closed answer. It could be the final end all and be all questions. So this is probably the most important question with the highest rating. When all is said and done, it is important to sell not only the company to the applicant, but both ways. It gives the applicant a chance to wow the manager and the human resource person. I think it is relevant to also give the impression that the interview candidate’s time was appreciated and respected. It is also another chance to promote the organization and the benefits or working for this corporation. It’s a dual sales pitch to close both ends.

Q9) Why are searching for a new job at this time? This question is 5 minutes and just gets an idea of why the person is changing jobs. I guess your looking for a pattern if a person changes jobs a lot. Also you are looking to see, if this person is a fit in your organization. You are also trying to determine if you could tolerate working with this individual for 8 hours a day, 5 days a week.

Q10) what is your salary expectations? Well there’s the old saying if you pay bananas you get monkeys. So you better know what each candidate is asking for and if there salary expectations measures up to industry standards. For candidates who are superstars, there will be greater compensation required. For individuals who are in the midpoint there is more flexibility. For candidates who are in the low end, well the question is do you want to train these people. This question is always important because this gives a firm an indication of what there salary expectations are. Also to see if this candidate is attainable given the current metrics of salary compensation in today’s challenging job market.

#6)

High turnover rate can be caused for various reasons. For example one common reason for turnover is the manager. If the manager is unable to communicate, delegate and manage effectively, this has a significant impact on any department. One way of identifying if this is a problem is to ask all staff in the department in private, if the manager is a possible reason for the high turnover. This could prove challenging unless anonomytity and privacy is not assured. Employees could be fearful for reprisals if the manager is vengeful. Also you could have the manager’s boss observe and see if there is a problem. If the manager is a problem, then training might be required for this individual. If training cannot be done, perhaps the manager needs to be transferred or terminated.

Another reason for high turnover is lack of development opportunities. This means that individuals are not capable of advancing there careers either vertically or horizontally. Sometimes the firm has policies that restrict this type of development. For example some companies have minimum 1 year terms at a specific job. Sometime supervisor permission is required before applying to another internal job. Also sometimes internal development is not part of the culture. There could also be the opposite problem, that many people take this job to enter the firm. Once in the firm they rotate out of the department to a different role. One would have to evaluate development opportunities and see if there is a correlation. Lack of opportunities would often lead to people leaving.

Insufficient compensation is another reason for high turnover. If employees are leaving to the competition in similar roles, this could be a significant problem. It would be easier to raise compensation then to lose a well qualified and experienced individual. Compensation levels would have to be evaluated on a yearly basis and compared against a reasonable industry metric. For example using mercer consulting pay scales and also using your peers compensation schemes as a basis of comparison will evaluate if this organization is competitive. If this firm is not competitive salary may have to be increased to compete for talent.

Employees not taking yearly vacation could be a problem. If employees seem stressed and burnt out that could cause people to leave. If this is the case, manager should see who has not taken there vacation and ask if they need to take it. Workaholics often think that they will lose out on projects and other events if they take vacation. Research has shown that taking vacations not only is healthy but generally increases productivity when they return.

Insufficent training and a culture of setting up people to fail can occur in any department. Training on any job is required and even when proficient, upgrading is always needed. Perhaps there is a sink or swim culture. Or there is insufficient support from other employees in the department. This issue can be addressed by evaluating if each employee is up to training standard, by using a checklist. Perhaps you could evaluate which people need help. This maybe a problem that leads to increase turnover.

Final Exam

#1) Compensation package for any firm is an evolving process. I will make certain assumptions in this business case. The company is Canadian and its corporate headquarters is in Calgary. The industry is oil and gas and the type of company is oil and gas firm. Internal equity refers to fair pay structure. For most people pay is extremely important. In a competive job market, its is the utmost importance to keep up with this area.

A method of making equity fair is creating job salary grades. This can be assigned based on the function of the job. Job grades can be compared against the entire organization. Also this is constrained by the budget and profitability of the organization.

Try to evaluate the job and not the person. The compensation of a CEO is not the same as a mail clerk. Maintaining your current employees is important. If raises don’t occur on a yearly basis to adjust for performance and inflation, then problems occur. The compensation must be competitive.

Many companies include individual performance bonus. This is a great idea and allows the individual to gain ownership and motivation. Also departments have bonus structures as well. Salary comparisons inside an organization are common. They don’t talk about it but coworkers generally know ranges of people. It is important that salary ranges do not deviate to far from each other. Not excluding superstar employees, which are on a different pay grade entirely. It is difficult to keep up with larger organizations with deeper pockets.

Externally it is harder to recruit key talent. In the talent war, you must determine what the going market rate is for key individuals. The firm must also consider what the competition is offering as a basis of comparison. If you are offering a rate which you perceive is sufficient but it’s below what the market is it will be difficult to recruit.

In Calgary it is difficult to recruit key talent.

I would institute a formal bonus structure with clear performance indicators. Success and failure would be determined on company wide performance, business unit and individual contributions. This includes reasonable compensation additions. I would include lump sum merits, spot bonus, gain sharing and profit sharing strategies. The most effective would be stock options incentive. This allows longer term employee buy in. Also it uses the golden handcuff strategy to try and retain talent. If an employee owns part of an organization they are generally more likely to increase employee engagement.

Other methods of compensation would include flex days. This is important for people with families and other commitments. This is a good way of reducing absenteeism and allowing some flexibility in work arrangements. Also a great idea is giving longer vacations for top performers. A well rested employee is a productive employee. For the few companies that can offer retirement packages this is a great incentive. Pension plans is highly unlikely in such a small firm. However getting adequate health coverage is a viable option. Heath, medical, dental and vision costs are a good equity equalizer. This firm could employ blue cross as a method of reducing costs. Allowing for customization of packages is a great idea. Health spending accounts, paying for Alberta Health care allows greater flexibility.

Life insurance should also be considered as an option for pay equity. This is very important if a person’s job is high risk. Regardless life events happen and this expense is required. Short term and long term disability are great options as well. I would definitely include some form of employee assistance program. This includes access to counseling and other services. I would outsource this function to control costs.

Employee education assistance is also a way of retaining employees. Its not very profitable for the organization, however studies have show this can be beneficial for the employee. I would suggest using this after probation period has passed.

Employee referral bonus is also a great way of maintaining and recruiting talent. Many companies have this option and it is a small price for the larger benefits derived from this option. Employee referrals are a win/win scenario with a larger return on investment. People do not want to refer poor candidates because it will reflect badly upon them. So keeping and increasing the talent pool is a great idea.

Compensation and benefits is a complex and dynamic creature. I would suggest dedicating full time staff to constantly monitor and update this program. Formalizing a compensation and benefit plan should be done with human resources.

#3) Step one for advice would be to document the case and determine if the situation actually has occurred. Currently in our legal system everyone is innocent until proven guilty and requires due process. So the first step I would suggest would be to start interview the candidate and determine if there is a problem. Document the interview and determine if company property has actually been taken. Determine if this incident occurred intentionally or unintentionally. If no evidence is prevalent, then the next step would be to conduct an internal investigation. I would suggest hiring an external consultant to complete this function. If this organization has an internal investigation unit, then we could use that option. However, most companies do not have this function. Human resources could serve this function if the financial resources are not available for the outsourced function.

Based on the assumption that an investigator is used then they would conduct the interviews. They would also be working in conjunction with the manager and human resources. Research regarding audit trail, video tapes, witness and any relevant evidence would have to be gathered. The candidate must have an opportunity to defend any of the accusations. If required also many companies have a legal department or a corporate lawyer. In this case a lawyer should be consulted to get clear interpretations of what is legal in an investigation scenario. External legal council can be consulted or employed for both the individual and firm.

If there is sufficient evidence to warrant action steps must be taken. One must consult there internal polices on steps to be taken. If company theft occurs on a large scale, then it is recommended that you contact the police. Have the investigator present the evidence and request to issue a case number. Also once this is done ask the police what is the next step in this scenario. Dependant upon the response, the police may ask you to enforce your own policies at your discretion. If the situation is large enough the police may get involved. If the corporate theft is stealing small office supplies then I doubt the police would get involved. If the theft included large amounts of money such or classified data, they may get involved.

In either case, the firm has the responsibility to conduct an internal and external investigation. Also they must contact the authorities if the evidence warrants a serious crime. This covers the interests of the firm by getting a case number. Generally managers don’t want to contact the police; they just want to get rid of the employee. This is important for future, because it may take many years before a criminal case actually transpires. The police may discover that this person has conducted this type of criminal activity in the past. Also it would be unwise from a legal standpoint to not contact the authorities.

If the employee feels they are being slandered or falsely accused the could conduct legal action against the firm and individuals who conducted the investigation. It is critical that both sides get legal counsel if required. One must be careful not to go on the assumption that the person is guilty. Conducting a witch hunt could backfire significantly. Bad press, poor public relations and possible lawsuit are possible scenarios if this situation is conducted in an unprofessional manner. This case is complex but requires someone who has prior experience in doing investigations. Do not leave this scenario in the hands of someone who has not done this before. Experience is critical in determining success or failure of this scenario.

#4) There is 3 certainties in life, death, taxes and change. All are scary but change is what happens in all business. When major changes occur they must be managed properly. Often a key failure is not communicating what is going on in a radical change. For example if there is a rumor that the company can be sold there are several situations that can occur. If this scenario is true, and the buyer requests that this not be made public, then keeping employees in the dark might be a legal requirement. Some business matters must be kept confidential to avoid conflicts of interests. If this is false then the rumor should be quashed right away.

Often the grapevine is a strategy used to manage information or disinformation. This technique can be used to communicate what is necessary to the employees without compromising a legal situation and business negotiations. If the situation warrants it the grapevine can also be used as disinformation. They can say nothing is happening and the company is not for sale. This strategy is helpful to gauge the pulse of an organization.

If the company has an investor relations department they can answer formal, informal questions regarding this matter. It is better to have a select few employees manage the situation then have the situation spiral out of control. This way the message can be managed either positively or negatively. Press releases via newspapers, internet, intranet and rumor mill are some of the ways employees can interpret the level of change.

Having the right person communicate the change is important. A professional public relations firm can also be hired if major crisis help is needed.

If the company needs to reduce costs by 25% people fear that kind of statement. First reaction from employees is will I have a job? This is a legitimate concern for the firm and employees. If this is false then quash this rumor. If this is the reality then managing the situation is critical. If cost control is your mantra then you should communicate to your staff right away to encourage costs savings. You should be clear to them how much savings are to be required. If any employees have an idea to cut costs then they should be heard. Sometimes, employees come up with solutions to actually solve the problem.

If the threat is real then providing options and not orders is preferable. If you need to fire staff then provides options. Allow for candidates to retire early, if buyout packages are available consider those options. If you want to keep a core staff and eliminate redundant functions this can be done. If you want to reduce costs and there is true leadership pay cuts might be an option. Don’t expect buy in from employees unless the managers are willing to do the same and more. Leaders must walk the talk, especially in difficult situations. This often doesn’t happen, but it makes a big difference in the employee communication. If this is not communicated properly you could have a mass exodus of talent to other organizations.

If the ship is sinking many people will want to jump ship. In the information age it is very difficult to keep secrets of downsizing or possible sales and divestures secret. So informing your employees of possible scenarios ASAP is the best strategy. If one person knows in the company you can be assured that eventually everyone will know. Communication mediums include staff meetings, quarterly meetings, business unit luncheons, business meetings, press releases, executives, investor relations, Intranet, Internet, and public relations firms. Any or none of these tools can be used, but it is important to have some lines of communication to get your message across.

#6) Orientation program for the HR Advisor would be the following. The training outline would include: 1) orientation 2) payroll 3) benefits 4) safety 5) manager 6) information technology 7) training 8) follow-up.

Create an attendance checklist and ensure it is up to date before the orientation occurs. Before the employee starts confirm the first day goes well. This is the first impression of the new employee and it’s critical that things go well. Ensure that they know what time orientation starts. After make sure that orientation is organized to maximize efficiencies. Having set dates for orientation are a good idea. Many companies have the orientation run by someone in human resources. Having the HR Advisor run the orientation is a great idea.

Create a formal introduction of the company and welcome the new employees aboard. Have a brief video that can be played to ensure consistent message of the new firm. Inform the new starts how long orientation will take and ensure they have access to beverages, bathrooms and the ability to take notes. Having a startup package that can be printed and handed to each employee would be a great idea.

Payroll should be taken care of immediately. The one thing people always ask or is always on there mind is when do they get paid. Make sure documentation that is required in advance is communicated to the new employee. For example if you need a void cheque for payroll please ensures that they bring it in advance. Have a payroll person on hand and ensure that all the documentation is filled out properly. Ensure Revenue Canada forms and Province of Alberta forms are completed.

Benefits are another major consideration. Many employees have family members, significant others or dependants that rely on benefit packages. Ensure that a hand out and contact name and number is provided. Since each person’s benefits situation can be different they need a contact name. This includes medical, dental, insurance, fitness facilities and stock options should be addressed. Benefits may need to be addressed several times.

A safety orientation should be conducted. This can be covered in a video presentation on how to exit the building and what to do in an emergency. For most office jobs this orientation will be short. However for candidates who are in the field, this safety orientation might take days or weeks or could be ongoing.

At some point they should meet the manager. The manager should introduce them to there new team and desk. After the introductions the IT department should have the work station setup. This includes telephone, email, internet, computer, cell phone and all information systems required for this job. Once the information station is setup, they should go to the supply room and obtain stationary. Ensuring pass cards work and the location of the bathrooms is critical.

After the IT component is setup training should be conducted. Training can be conducted by the manager, a senior staff member or a trainer. This depends on the job function. The more complex job the more training will be required. Some jobs require informal training. This type of training is considered on the job training. Other jobs require formal training including testing, trainers and simulations. Timelines should be established for this type of training. A checklist might be an effective tool to implement.

Finally following up on a new employee is suggested for several reasons. Reason one is that the new employee will not remember everything right away. It takes approximately 3 months to get a new employee up to speed. It is expensive to train a new person, so it in the firm’s interest to train the candidate properly. For the few firms that are proactive, providing the guideline on how an employee will be evaluated at the end of the year is a fantastic metric tool. Mistakes will be made and this follows a standard bell curve for learning. Performance management and metrics with positive and negative feedback is required. Without a training program in some capacity, you are setting up employees to fail.