The Employment Cycle

1. The Employment Cycle SAC 1b (Monday 13 August)

2. Learning objectives • To identify and explain the key phases of the employment cycle • To explain the significance of the employment cycle for human resource management

3. The importance of the employment cycle • One of the key responsibilities of HRM is managing the employment cycle • The employment cycle is the stages a worker progresses through - from the start to the end of their employment with an organisation • It is a ‘cycle’ because the pattern repeats itself as new workers are recruited, trained, etc, to replace the workers who are leaving • Broadly, we can categorise the actions and steps that HRM need to take as establishment, maintenance and termination

4. Phase one: Establishment • HR planning • Job analysis and job design • Recruitment • Employment arrangements and pay

5. Human Resource Planning • HR planning is the most important part of the employment cycle • It involves predicting the future staffing needs of the organisation – therefore, HR managers need to know and relate this to the strategic plans of the organisation • HR managers need to consider: will more or less staff be needed? Which areas of the organisation will grow? Are specific skills or expertise needed? • If poorly planned, an organisation may have too many or not enough employees in key areas creating problems for productivity and cost

6. Job analysis, design and description • Job analysis is finding out all the information about a job • If it is an existing position, then a study is conducted to examine in detail what is done in that position on a daily basis • Job design is the process of creating new positions or adapting existing positions. • When designing a new job, mangers need to ensure it attracts the right candidates and meets the organisation’s needs (as determined through HR planning) • Job description is an outline of all aspects of a particular position, including the duties & responsibilities and work conditions) and combines all the information gathered in the job analysis

7. Selection Criteria • A list of what the organisation is looking for in the applicants for a new position • Often includes requirements for qualifications/experience, skills, and personal qualities • It is expected that applicants should address the selection criteria in their job application

8. Recruitment • Recruitment is sourcing employees for a position • It can be internal (from inside the organisation) or external (outside the organisation) • Recruitment methods include newspapers, internet sites, business websites, recruitment agencies, word of mouth

10. Selection • Selection is choosing the best candidate for the available position • The selection process may include, screening out the unsuitable applicants; writing a short list of potential candidates; contacting them for interviews; holding sometimes several rounds of interviews (individual or group); testing; checking referees; notifying the successful candidate and the unsuccessful ones

11. Employment arrangements & remuneration (pay & entitlements) • The process of deciding pay and other entitlements associated with a position may be determined before the job is advertised or negotiated with the successful candidate • Factors affecting the type of remuneration include whether the person is covered by an agreement, whether it is a management position, previous remuneration of the person, and their priorities. • Packages include pay rates, super, use of facilities such as cars, phones, laptops • The type of employment arrangement is linked to the remuneration (full or part-time cf casual staff & contractors)