ATTRACTING AND RETAINING THE

BEST EMPLOYEES
Presented by: Mari-Lu van Schoor
Please direct all questions about this chapter to mvanschoor@sun.ac.za
 Learning objectives
9-1 Describe the major components of human resources management
9-2 Identify the steps in human resources planning
9-3 Describe cultural diversity and understand some of the challenges and
opportunities associated with it
9-4 Explain the objectives and uses of job analysis
9-5 Describe the processes of recruiting, employee selection and orientation
9-6 Discuss the primary elements of employee compensation and benefits
9-7 Explain the purposes and techniques of employee training and
development
9-8 Discuss performance appraisal techniques and performance feedback
9-9 Outline the major legislation affecting human resources management
 Human Resource Management
(HRM)
• All the activities involved in acquiring, maintaining, and
developing an organisation’s human resources
 1. Acquiring staff
• Human resources planning
– Determining the firm’s human resource needs
• Job analysis
– Determining the exact nature of positions
• Recruiting
– Attracting people to apply for positions
• Selection
– Choosing and hiring the most qualified applicants
• Orientation
– Acquainting new employees with the firm
 2. Maintaining staff
• Employee relations
– Increased job satisfaction through surveys, interviews,
fair treatment, worker communication program
• Compensation
– Financial reward for input (salaries, wages)
• Benefits
– Financial benefits (pension/medical) or non-financial
(recreational facilities) which all contribute to
employee wellness
 3. Development
• Training and development
– Training employees in respect of new skills / new
tasks – purpose is that employees are more
effective.
• Performance appraisal
– Systematic method to determine current and
future efficiency of employees of business.
 Responsibility for HR
• Joint responsibility
– Determined by the size of the business
– Both line managers and HR manager
1. Acquiring:
 HR planning (pg245)
• Development of strategies to comply to a
business’ future HR needs
• It starts with a strategic plan
• Expected DEMAND for HR
– Strategic plan provides important information
• Expected SUPPLY of HR
– Replacement schedule
– Survey of skills
 HR planning (continued)
• Expected DEMAND vs. SUPPLY is used to
develop a plan of action for HR planning
• Demand > Supply
– Recruitment
• Supply > Demand
– Layoffs: employees are discharged until needed again
– Resignations: employees leave the business
– Early retirement: receive full benefits
– Discharges: last resort, employees no further needed
 Culture and diversity in HR (pg247)
• Diversity in workplace due to ethnic, race and gender
differences between employees
• Could be challenging
• Management needs to consider a broader set of value
systems when it comes to leading and motivation
• Management needs to see it as an opportunity
• Advantages of cultural diversity
– Cost advantages, resources, marketing, flexibility,
creativity, problem solving
 Job analysis (pg248)
• The process of gathering all relevant information pertaining to a specific
job in order to find the appropriate candidate
• 2 Components:
– Job description
• Written document which indicates WHAT the employee needs to
do, HOW it should be done, and under which CIRCUMSTANCES
the task should be performed
– Job specification
• Developed from the job description; a list of the qualifications
required to perform a particular job (such as skills, abilities,
experience, personality)
Example of job specification

No need to study this

 10 funniest Job descriptions

1.Help people hate each other: Divorce Lawyer (Scott Adams’ favourite)
2.Stand on a field and get yelled at for hours: Baseball Umpire
3.Talk in other people’s sleep: College Professor
4.Call people who know what they’re doing and ask them what they’re
doing: Incident Manager
5.Show people how beautiful the Earth would be without them:
Mountain Landscape Photographer/Climber
6.Make people feel bad about their work: Quality Assurance Tester
7.Repeatedly fix what you repeatedly break: IT Director
8.Clean up an animal that makes more money then me in a year:
Assistant Horse Trainer
9.Write words that no one wants to read: Technical Writer
10.Make food that is as healthy before it goes in your body as when it
comes back out: Fast Food Employee

Source: http://jobmob.co.il/blog/funniest-short-job-descriptions-ever/

No need to study this

 Recruitment (pg250)
• Identifying the appropriate number of qualified
candidates for current and future jobs
• Number of candidates vs. number of jobs available
• Sources of recruitment:
– Job description
• Internal sources (promotions, transfers, recommendations by
colleagues)
• External sources (recruitment agencies, newspapers, schools,
universities, online applications, referrals)
• Advantages and disadvantages of internal and external
sources of recruitment
 Recruitment
EXTERNAL RECRUITMENT INTERNAL RECRUITMENT
Advantages: Advantages:
- New perspectives - Rewarding employee with a
- Varied business backgrounds promotion
- Already know the culture of
Disadvantages the company
- Expensive
- Provoke resentment from Disadvantages:
current employees - Leaves another position to be
filled
- Train two new employees
 Selection (pg251-254)
• The process through which the most appropriate person is
selected from all the candidates
• Purpose is to appoint the employee(s) that is in the best
position to comply to the job requirements and standards
• HR needs to gather information regarding the group of
candidates after which a decision needs to be taken
• Obtain information through:
– Employment applications
– Interviews
– Referrals
– Assessment centers
 Selection (continued)
• Applications
– Factual information: education, experience, history
– Example: p 322
– Resume: one to two page summary of the candidate’s
background and qualifications
• Employment tests
– Written / oral tests in which aptitude, skills, abilities and
knowledge of the specific job is assessed
– Personality / intelligence tests
 Selection (continued)
• Interviews
– Most often used selection technique
– Can meet applicant on personal level in order to eliminate
not suitable candidates early.
– Both parties obtain more information.
– HR manager is present as well as the manager to whom the
candidate will report to.
– More than one interview could be needed.
– Example of typical questions during interview (p 324)
 Selection (continued)
• Referrals
– Candidates have to provide contact details of references
(such as previous employer)
– Serves as source of information
– Needed in order to verify the candidate’s history
– Not always valuable: sometimes individuals put a family
member as a reference…
 Selection (continued)
• Assessment centers
– Identification of existing employees that could be promoted
to more senior positions
– These employees are send for a certain period to centers
where they participate in similar environments and the
suitability of the person is assessed
– Specialist observers make recommendations
– Popular technique, but expensive
 Orientation (pg254)
• The process of acquainting new employees with an
organisation
• Overview of the business’ policies, Compensation,
benefits, safety, labour relations
• May be brief and informal or long and formal
2. Maintaining
 Compensation (pg254-256)
• Refers to that what the employee will receive in returns for his/her input
• Compensation = up to 80% of company’s operating costs
• Provide in employees’ needs as far as possible
• Effective Compensation system based on three managerial decisions:
– Wage / salary level
• Survey
– Wage / salary structure
• Job assessment
• Skills and responsibility
• Manager versus secretary
– Individual wages
• Based on seniority, qualifications and performance
 Compensation (continued)
• Comparable worth
– A concept that seeks equal compensation for jobs requiring
about the same level of education, training, and skills
– Some labor laws require the above
 Compensation (continued)
• Types of Compensation (financial)
– Hourly
– Weekly / Monthly
– Commission
– Incentive payment
– Lump-sum payments
– Profit sharing
 Salaries in SA (March 2015)(per
month)
[1]   Legal Services Director (Legal) R175,000
[2]   Chief Investment Officer (Executive and R140,400
Management)
[3]   Finance Executive (Accounting and Finance) R130,000
[4]   IT Director (Information Technology) R129,167
[5]   Financial Systems Manager (Information R120,000
Technology)
[6]   Surgeon - Neurology (Health and Medical) R120,000
[7]   Assistant to CEO (Executive and Management) R117,019
[8]   Corporate Director (Executive and Management) R115,000
[9]   Top Research and Development Executive (Business R108,333
Planning)
[10]   Market Segmentation Director (Marketing) R108,333

No need to study this

No need to study this
 Average monthly income in RSA:

R27,565
(March 2015)

SOURCE: http://www.salaryexplorer.com/best-paying-jobs.php?loc=201&loctype=1

No need to study this

International comparison (pm)
# Country Salary (US$)
1 Switzerland $6 301
2 Luxembourg $4 479
3 Jersey $4 323
4 Bermuda $4 250
5 Norway $4 215
6 Monaco $4 142
7 Qatar $4 038
8 Gibraltar $3 990
9 Australia $3 780
10 Cayman Islands $3 313

No need to study this

 Employee benefits (pg257-258)
• Indirect rewards in addition to regular compensation that is
provided to employees
• Consists mostly of services (e.g. medical, pension) that is
being covered in full or partially by the employer
• Lawfully required
– Compensation, unemployment insurance, social insurance
• Benefits can depend on type of business / industry
– Allowance, paid holidays, medical, pension
 Employee benefits (continued)
• Types of benefits
– Pay for time not worked
• Vacation time, holidays, and sick leave
– Insurance packages
• Health, life insurance
– Pension and Retirement programs
• Costs may be shared or fully paid by the employer
– Required by law
• Workers’ compensation, unemployment insurance
– Other benefits
• Cafeterias, exercise rooms, nursery, special benefits
No need to study this
No need to study this
 Satisfied employees are productive
• If employees are unhappy or appointed in the
“wrong” jobs, they cannot deliver the same
quality work than those workers that are happy
3. Development
Training and development (pg259-263)
• Employee training: the process of teaching operations and
technical employees how to do their present jobs more
effectively and efficiently.
• Management development: process of preparing managers and
other professionals to assume increased responsibility in both
present and future positions.
• Necessary for personal growth and growth of the business.
• Internet based: “E-learning.”
– Cost advantages
– Low or no travel expenses
– Saving time
Training and development (continued)
• Components of training program:
1. Analysis of needs
• Management needs to determine where training is needed
2. Determining training and development methods
• On-the-job
• Simulation
• Conferences and seminars
• Role playing
• Lectures: degree or certificate purposes
3. Assessment of training and development
• Compare controllable objectives with end results of training in
order to determine success thereof
 Performance appraisal (pg260)
• A systematic method to determine the current and
future efficiency of employees
– 3 objectives:
• Determine whether the individual is working effectively, and
whether he/she can improve
• The bases for merit Compensation
• Helps to monitor the recruitment, training and development
processes
– Techniques:
• Objective
• Assessment scales
 Performance appraisal (continued)
• Objective method
– Use a measurable basis to assess performance
• E.g. Number of units produced per hour
• Take circumstances into consideration

• Judgmental method
– Managerial estimates of employee performance levels
• There are no objective measures available
• Performance scale and merit scale are used
• Manager grade employees on scales based on their opinion
• Difficult to use because there is no absolute standard
 Performance appraisal (continued)
• Manage and prevent assessment errors
– Possible errors during the process?
– Guard against bias
– No discrimination
– Used balanced measurement instrument
 Performance feedback
• Results of performance appraisal should be discussed with employees
• Performance feedback
– Feedback on performance and where improvements can be made
– Performance feedback interview:
• “Tell-and-sell”
• “Tell-and-listen”
• Method of problem solving
• 360° assessment
• Judgmental method
– Manager should inform employees on how to interpret results which could lead
to future performance
– Employees should be aware of weaknesses in order to eliminate them
 Labour laws in South Africa
• Labour Relations Act:
The Labour Relations Act aims to promote economic development, social justice, labour peace and
democracy in the workplace

• Employment Equity Act

The main purpose of the Employment Equity Act is to achieve equality in the work place by:
Promoting equal opportunity and fair treatment through the elimination of unfair discrimination

• Occupational Health and Safety Act

In connection with the use of plant and machinery; the protection of persons other than persons at
work against hazards

• Basic Conditions of Employment Act

The aim of the Act is to ensure social justice by establishing the basic standards for employment
with regard to working hours, leave, payment, dismissal and dispute resolution.