Contemporary Issues in Business, Management and Marketing Case Study

Introduction - Recruitment Challenges and Their Business Consequences

The contemporary issue in business measures the issue of business environment. Recruitment is an activity that all business undertakes to operate their businesses. It is an activity of searching and recruiting a right candidate for a right job. The process of recruitment is important because it aids business in hired qualified employee in the organization. It improves productivity, profits of the business. The report will state about the recruitment cycle of the business. In this report, real life business examples of Morrison Company will give to understand the recruitment cycle.

The report will highlight the importance of systematic recruitment approach. This highlights benefit from employer`s perspective like finding suitable candidate, cost-effective and benefit from employee`s perspective like enhance employee experience. The report will discuss about the implications of wrong hiring on employer and employee. It will describe financial and non- financial implication such as increase cost, turnover and damages to reputation and discourage morale and zero productivity.

Stages of Recruitment Cycle

Every company needs to pool the best talent for the achievement of goals and success. For finding the best employee the company uses the recruitment process (Cappelli and Holmes, 2019). Recruitment is the activity of searching and hiring the best and right candidate for the right job. The steps for the recruitment cycle are-

• Identifying the Recruitment Needs- The first step of recruitment is to identify the vacancies in the company and evaluate what skill, knowledge, talent and experience is essential for fulfilling the vacant position. A good recruitment plan aids in attracting potential employees towards the company.
• Preparing Job Description- After identifying the recruitment need, the second step is to prepare a job description to attract potential candidates. The job description describes the number of vacancies, salary structure, benefits offer, tasks, functions, duties and responsibilities of the job position (Acikgoz, 2019). It is important to prepare job descriptions cautiously.
• Sourcing – After identifying the needs and preparing the job description, the next step is sourcing. It means searching for a candidate by any mode. To fill the vacancy, the company sources candidates from various websites, social media and job boards (Aniss, Aniss and Younes,2021). The company can use employee referrals also. Some sources are as follows -

Social Sourcing- It means searching of candidate with the help of social media. It aids company to find desired candidate.

Internal Recruiting- It means searching of the suitable candidate from exiting employee within the organization. It is a cost effective method.

Employee Referral-It involves recruiting candidate with the help of existing employee. The company find suitable candidate with the help of current employee because they have idea about what skill and knowledge the company need, according to this employee suggest new candidate.

• Evaluate Applicants- This stage needs critical thinking to identify the best candidate for the vacant job position. In this recruiter classifies the candidate`s skills and knowledge by reviewing the resume (Carpentier, Van Hoyeand and Weijters, 2019). After shortlisting the best resume according to the company's needs, a telephone call is made to get a clear picture.
• Interview and Selection- The candidates with shortlisted resumes are called for the interview. In interview the interviewer ask question related to the vacant job role to the interviewee. It can be in face-to-face or virtual form. The recruiter should prepare a question list for each candidate. By interviewing the candidate, the recruiter can know the communication skills, qualifications and behavior of the candidate required for the job. It aids company to reach a candidate who best suit with the company. According to the interview, the company selected the best candidate.
• Hiring- After the interview, the best and right candidate who is qualified for the interview is hired by the company. Once selected, an offer letter is given to the candidate (Ellison and Patel, 2022). Before the candidate accepts the offer, the company should answer to all questions regarding salary, job position, duties and responsibility.
• Onboarding- Onboarding is the next step of the process. It involves introducing the new candidate to the team and giving them a feeling of belongingness. It aids candidates to learn about the company culture and its working. This stage also includes providing training to the new candidate.

By doing investment in recruitment process, business can find a right workforce which is essential for success (Karim et al., 2021).

For example-

The recruitment cycle of Wm Morrison Company is-

The Morrison makes recruitment for its head office, manufacturing sites and distribution center. The company first identifies the need of employee in the company. After identify the company prepare job description of the vacant job position than company upload the vacancy post on their profile. The next step is sourcing, in this the company find a suitable person by evaluating CV of the candidates in which skills, knowledge and qualification of the candidate is given. After evaluating, the Morrison shortlisted candidate and call the shortlisted candidate for an interview. In an interview some questions are asked by company regarding candidate background, knowledge and skill. The company selected a suitable person keeping in mind the interview. By sending offer latter the company hired a candidate, after acceptance of offer by the candidate the next step is onboarding. The company introduces the candidate to the team and giving training to the new employee.

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Importance of Systematic Approach

A systematic approach is important to fill a gap in the company that affects the working of the company. A quick response is essential to pool the best talent and to fill the vacancy. A systematic approach improves attracting talented candidates and improves employee engagement and employee retention. The companies use this approach to get employees with sufficient skills and knowledge to accomplish the objectives of the company.

From the Employer perspective-

A systematic approach to recruitment helps the employer in attract a suitable candidates for the vacant job position (Adeosun,and Ohiani, 2020). A job description aids in inviting candidates who are best suited for the job. It enables a company to recruit number of employee with a less time and cost. It evaluates the future requirement of employees in the organization. It improves the working of the organization by solving the problem of overstaffing or understaffing .A systematic approach increase the success rate of the organization. In a systematic approach of recruitment, applicants are interviewed by the interviewer, candidate who are not suitable are rejected. The best candidates are selected and enhance the success of the organization.

When a company recruited candidates through systematic approach it enhance company`s reputation (Banerjee, Saini and Kalyanaram, 2020). It show company`s professionalism and creditability. Good recruitment processes attracts candidates and build a trust among them. This enhances reputation of an organization. Recruitment process of an organization is directly link with retention rate. If the employees is not happy from their workplace or company culture, than they leave organization. An effective onboarding aids employee to feel comfortable and give their full for the success of the organization. In a time of competition, for a success every business needs to adopt changes. For making changes with the changing environment, there is a need of suitable employee with new skill and experience. It aids in bringing new talent in a company. It influences positive employer goodwill and improves retention and employee experience.

From the Employee perspective-

A systematic approach of the recruitment aids in reducing employee turnover in the organization. The employee turnover impacts the productivity of organization, when more employee leaves the company, the morale of existing employee shaken and the workload also increase. This affects the employee confidence. It improves employee engagement and encourage positive environment in the organization. As a result of positive environment, more talented candidates are attracted towards organization. An onboarding program ensures that employee feel valued and engaged at the workplace, so the job experience and job satisfaction of the employee increase. A systematic approach of recruitment motivated more candidates to apply for the vacant job position.

Thus, a systematic approach of recruitment is benefited for the employee and employer. It allows hiring of best candidate best suited for business ensures success in long term.

Implication of wrong recruitment

Recruitment is the process of recruiting a suitable candidate for a suitable job. Wrong recruitment affects the organization’s productivity and profitability. Several implications of wrong recruitment are faced by employers and employees of the organization.

Implication Faced by Employer in Financial and NON- Financial Aspect-

• Increase Cost- A company spend a huge amount on recruitment purposes. It includes costs like advertisement for job vacancies, job posting fees, and training expenses. The recruitment of the wrong person leads to greater loss to the employer. Hiring the wrong person increases costs and adversely harms the profits of a company (Steiner and Byrne, 2022).
• Turnover- As a result of hiring the wrong person, the company needs to do a whole recruitment process to fill the vacancy. It leads to waste the time, money and efforts of the company. The company loses productivity as a result their revenue declines.
• Shake Confidence- Poor hiring leads to loss of the faith of employees in their management due to wrong hiring decisions. Managers also lose confidence due to not training bad hires properly. A wrong recruitment is a consequence of low productivity.
• Damage Reputation- A bad hiring damages the reputation of the company. The negative impact of bad hiring is that the company is not able to pool quality talent towards the success of the company. It affects the long-term success of the company.
• Negative Feedback- When a wrong-hired person is fired from a job. The employee makes online reviews regarding their bad experience at work job which will affect the company`s name and sales.
• Wastage of Time- Due to wrong hiring, time of the company wasted if the hired candidate is not doing their job efficiently. It affects the working of a business and there is a need of new hiring to replace the wrong hiring.

The Implication of Wrong Hiring of Employees-

• Zero Productivity- Hiring of the wrong employee, who has no proper skills to do work. The employee will not be able to do work at his full potential as a result productivity of the company decreases and this harms company profits.
• Discourage Morale- A wrong hiring affects the employees of the company. Till a new person is not hired in the place of the wrong-hired person the existing employee may feel overburdened or frustrated due to the pressure of work of that person. Hence, bad hiring affects the morale of employees (Ivanovic, Ivancevic and Maricic, 2020).
• Poor representation of all employees- If a company employee directly communicates with the customers, then bad hiring presents a wrong presentation in front of clients. This will affect the whole company's image and sales.

Real Example-

Wm Morrison Supermarket is located in the United Kingdom. It is the 5th biggest supermarket and is headquartered in Bradford, England. There are 497 supermarkets across England, Wales, Scotland and Gibraltar. The Morrison hired a petrol pump employee in their company. The employee got into an argument with the customer. The customer made the company liable for this issue and sued the company (Donnelly, 2016). Because of the connection between the company and the employee, the court held liable the Morrison Company for this act. The reputation of the supermarket is damage by this act. They face lot of negative feedback, the existing employee’s morale is also shaken and the sales and profitability also impact by the wrong hiring decision.

Conclusion

It has been concluded, the process of recruitment is essential for the business to work efficiently and effectively. The report stated about the recruitment cycle, the steps of this include identifying needs, preparing job description, sourcing, evaluate applicant, interview, hiring and onboarding. This report discussed about importance of systematic approach of recruitment like increase productivity, cost effectiveness from employer perspective. From employee`s perspective it discussed benefits like employee experience, retention and increased morale. It also contained implication of wrong hiring from employee and employers perspective with a real life example through Morrison Company. At last, it is concluded a systematic recruitment is important to recruit best candidate and for the success of the organization.

References

Books and Journals

• Acikgoz, Y., 2019. Employee recruitment and job search: Towards a multi-level integration. Human resource management review, 29(1), pp.1-13.
• Adeosun, O.T. and Ohiani, A.S., 2020. Attracting and recruiting quality talent: firm perspectives. Rajagiri Management Journal, 14(2), pp.107-120.
• Aniss, Q., Aniss, M. and Younes, L., 2021. The role of social networks in personality analysis for recruitment of laureates: A systematic review and exploratory study. In SHS Web of Conferences (Vol. 119, p. 05004). EDP Sciences.
• Banerjee, P., Saini, G.K. and Kalyanaram, G., 2020. The role of brands in recruitment: mediating role of employer brand equity. Asia Pacific Journal of Human Resources, 58(2), pp.173-196.
• Cappelli, P. and Holmes, D., 2019. Recruiting. Harvard Business Review Online. https://hbsp. harvard. edu/product/R1903B-PDFENG.
• Carpentier, M., Van Hoye, G. and Weijters, B., 2019. Attracting applicants through the organization's social media page: Signaling employer brand personality. Journal of Vocational Behavior, 115, p.103326.
• Ellison, A.M. and Patel, M.V., 2022. Recruiting and Selecting Students. In Success in Mentoring Your Student Researchers: Moving STEMM Forward (pp. 23-34). Cham: Springer International Publishing.
• Ivanovic, T., Ivancevic, S. and Maricic, M., 2020. The relationship between recruiter burnout, work engagement and turnover intention: Evidence from Serbia. Engineering Economics, 31(2), pp.197-210.
• Karim, M.M., Bhuiyan, M.Y.A., Nath, S.K.D. and Latif, W.B., 2021. Conceptual Framework of Recruitment and Selection Process. International Journal of Business and Social Research, 11(02), pp.18-25.
• Steiner, Z. and Byrne, Z., 2022. Employer postcrisis image restoration: Implications for recruitment. International Journal of Business Communication, 59(4), pp.551-582.

Online

• Donnelly, L,. 2016. Employers’ liability risk fuelled by petrol station blow-up. Online. Available through: < https://www.employmentlawworldview.com/employers-liability-risk-fuelled-by-petrol-station-blow-up/>