Economics for Global Decision Makers

GB540:01 Economics for Global Decision Makers Week 3-Unit 3 Dr. Barbara-Leigh Tonelli May 15 2012 I. Introduction II. Competition for talent A. Recruiting III. Utilizing talent A. Cost B. Fit or fire IV. Ability to find talent A. Steps B. Actions V. Ability to attract talent A. Benefits B. Reputation VI. Ability to retain talent A. Communication B. Opportunities VII. Ability to develop talent A. Training B. Promotion VIII. Conclusion Introduction Effective hiring and personnel retention are keys to successful business. It can be easily argued that business success depends on human assets not material assets.Materialistic business components can be bought and replaced with an order, but the talent people can bring to an organization is not attained with the touch of a button. Hiring the right people is only a part of the successful business formula. Retaining quality people is also important to business success. What do firms need to do to attract and retain the most talented people a s well as utilization of their skills for company success? Competition for talent The advancements in travel and internet have made recruitment a global competition. It is not a secret that a successful business often has the most talented employees.Companies scramble to find the next and brightest in the workforce. Business managers know good hiring practices can be a strong foundation for any business. Bad hires can lead to business failure. They have to be creative in the ways they attract the most talented workers. Some companies have turned to recruiters and headhunters to attract the best candidates. Firms such as FESA Global Recruiters and CTPartners are often hired by companies to help attract the type of employee they feel meets its company needs. These companies will often seek out individuals they feel meet the criteria set by the hiring company.These companies specialize in placing the best candidates with the best companies. A company can avoid direct competition by out sourcing its recruiting needs. Recruiting companies have a network of people and resources it uses to match companies and people. (McCool (2008)) Utilizing talent If a company does not have the right people in the right job then it will find it harder to achieve and maintain long term business success. Bradford Smith conducted a survey and from his findings he discovered that miss-hires cost a company as much as twenty-four times the individuals base compensation. It takes more than talent to ensure success.A Manager has to hire the correct skills for the job. An employee may be the best wood cutter in the world but it does little good for a company that cuts diamonds. A company must hire people with the talents and skills it needs for its success. If a person does not have the skills needed then the company must be prepared to separate and hire someone with the needed skills to meet company needs. (Harvard Business Review Press (2002)) Ability to find talent How does a company find the talent it needs to ensure business success? There are a few steps the hiring manager can do to ensure the correct person is found. Some steps include: 1.Defining job requirements 2. Recruit for needs 3. Interview 4. Evaluate 5. Hire correct candidate When defining the job requirements the hiring manager needs to ensure the job responsibilities and requirements are outline so all potential applicants fully understand what the job entails. A hiring manager should only recruit for needs. If the applicant does not meet the company’s needs then the applicant does not need to be hired regardless of talent level on non-needed skills. The candidates must be interviewed and evaluated to ensure they have the skills and talents the company needs to fill. Finally they need to hire the correct candidate.The candidate can be the best at baking but if the company sells finance the skills do not match a need. (Harvard Business Review Press (2002)) Most companies do not rely on recruiter and headhunters to meet its hiring needs. Companies have turned to non-traditional methods to attract potential hires. These include 1. Job Fairs 2. Company Websites 3. Internet job sites such as Monster. com, CareerSite. com or CareerBuilders. com Companies use these sources as a way to fill its business needs. People also post resumes on some of the job sites listing their skills and abilities with the hope of landing a job or advancing their careers.Ability to attract talent Business managers know good hiring practices can be a strong foundation for any business. Bad hires can lead to business failure. The business has to be able to get the best talent to apply for its positions. There are several reasons why people change jobs. They can include 1. Salary 2. Benefits 3. Location Company reputation and prestige is also another factor that potential employees consider when looking at one company over another. A company with a successful business record is more likely to attract a more skilled workforce than a company that has a bad reputation. (Harvard Business Review Press (2002))Ability to retain talent Hiring decisions are among the most important decisions made by a manager but what can a company do to retain the talent once hired? According to Bradford Smith’s survey job satisfaction and promotional opportunities are two reasons people leave their jobs. Communication with its employees is an often overlooked aspect within a company’s structure. Employees can feel alienated by management when decisions are being made without employee impute. An easy way to eliminate this is to keep communications open with all employees. Meetings and suggestion boxes are a great way to keep communication lines open.Open communication is a great way to find out if employees are finding the satisfaction they desire within the job they are working. Employees also want the opportunity for career advancement. Businesses that tend to bottle neck its management po sitions have no choice but to lose good employees as they look elsewhere for the chance to further their careers. This can be frustrating to business and is very hard to prevent in today’s job market. (Harvard Business Review Press (2002)) Ability to develop talent A company cannot always hire for its needs. Sometimes employees have to be developed from within the company itself.Specialized training is one way a company develops its own talent. Once a Company figures out what it needs it can develop a training program to ensure it always has enough trained employees to ensure its long term success. This is especially true in manufacturing companies. A successful company will also include promotional opportunities in its development chain. As employees grow they will feel the need to promote. Promotion will help employees develop a sense of ownership and pride. A company that is able to develop its own workforce will be rewarded with a strong business. Cappelli (2009)) Conclus ion Businesses acknowledge that finding, retaining, and developing talent is one its toughest business challenges. To help ease the challenges Companies have developed different approaches for success. They include identifying what makes sense for the business, what type of employees it needs to attract and retain and what the employees wants to stay and be productive. People may argue that the job market favors employers because of the unemployment rate but if a person has the talent they will always be attractive to a company. Cappelli (2009)) Reference Cappelli, P (2009) Talent on Demand: Managing Talent in an Age of Uncertainty; Harvard Business School Press Boston, MA Harvard Business Review Press (2002) Hiring and Keeping the Best People; Harvard Business School Publishing Corporation; Boston, MA McCool, J. (2008) The World's Most Influential Headhunters as reviewed on May 12, 2012 at http://www. businessweek. com/managing/content/jan2008/ca20080131_400734. htm? chan=careers_s pecial+report++worlds+most+influential+headhunters_world%27s+most+influential+headhunters