To: Keighley’s ASDA Store Manager, Co-Manager
From: Dianne Wood, Human Resource Manager
Date: September 27, 2012
Subject: Cost-Effective approach for hiring to cover Mat Leaves
Recently, it was brought to my my attention that there is some frustration in regards to a cost-effective approach when trying to hire to cover-off the several maternity leaves that our company is experiencing. Each time we hire new or temporary employees to cover-off the maternity leaves, it is costing the company a enormous amount of money. The way that we calculate the cost is: Cost per hire - Cost of using recruit source divided by the number of people to hire to fill the position ( Chapter 5 page ...view middle of the document...
Once again, there is the domino affect.
Reference and Background checks A Manager is required to take time out of their day to contact References as well as faxing in background checks. This also can be very time consuming depending on the number of applicants we need to complete these checks for. When contacting References, it is not a guarantee that they will be contacted immediately, therefore, we need to wait for individuals to contact us back. This also can be time consuming as when the calls come in, the Manager that made the calls would then be required to stop what they’re doing and take these calls.
Negotiate the offer terms Once reference and background checks are completed and a decision has been made about which candidates to hire, call backs are required to schedule a time for the candidate to come in to read over the offer letter. Again, this doesn’t only take a few minutes. It takes time to make the calls and then when the appointment has come, a Manager then has to sit down with the candidate and go over the offer letter. The same manager is once again behind on their daily or weekly tasks because they need to take time out to accomplish these other tasks.
Training expenses for a newcomer This can become costly due to the fact that the individuals that will be doing the training, will be taken away from their daily tasks or their tasks may be completed slower than normal due to the fact that proper training is required and not everybody learns the same way. Some newcomers may learn quicker than others.
Turnovers This can be extremely costly if some of our new hires terminate their employment at any given time. Then the entire process of rehiring starts all over again to replace those individuals.
Overlap between the temporary employee and the out going employee Even though this may seem an effective approach to ease transition, we actually end up having to pay double wages as well as Employment Insurance contributions for that period.
I have come up with a couple different solutions that will benefit not only the company with costs, but with all of our employees as well. The first and probably the most effective way would be to Promote From Within. Promoting From Within can bring many great benefits to all involved. The following shows a flow of direction within the several departments that Assistant Managers manage:
Assistant Managers => Department Managers => Sales Associates
Promoting From Within is a huge part of our company. We have had many Department Managers be promoted to Assistant Managers and Sales associates promoted to Department Managers. Currently there are more than half of our Department Managers and Sales Associates that would like to move up within the company and have shown a great initiative by learning and being coached by their immediate Manager. This has not been a requirement of any Department Managers or Sales Associates, instead they have taken it upon themselves to...