Human capital is the most important and valuable factor of production nowadays
The reason is that it is a carrier of information and knowledge, which are able to bring significant competitive advantages for any company. That is why it is very important to develop effective human capital. This human capital is employees of a company. That is why the process of development of human capital starts from a recruitment process.
The task of this paper is to analyze some theoretical aspects of the recruitment process and show how they are realized in practice. In order to do it, the company for analysis, Riyad Bank, was chosen. Taking into account the goals of the paper, it is going to have the following structure: introduction, theoretical concepts of recruitment, background information about the company under consideration, analysis of the situation in this company, conclusions, and recommendations.
First of all, it is necessary to provide a definition and explanation of the term recruitment. Simply speaking, it is the process of hiring new employees by a company.
Recruitment, covering the entire process of sourcing, selecting, and onboarding employees to an organization, is a function typically housed within Human Resources. The person responsible for developing effective recruiting strategies will usually be a talent acquisition manager, director of personnel, or a recruiting/sourcing manager. Recruiting program changes at a strategic level may include the enhancement of candidate communications, the development of talent pipe-lining, succession planning, the optimization of recruitment channels, re-evaluation of interviewing processes, and the deployment of new recruitment technology (“Recruitment Strategies”).
However, it is the whole concept that consists of various different processes
For example, one can mention looking for potential employees, education of students, continuous training, and education of own employees, etc. It has been already much said about the importance of this process. That is why any company should build an effective strategy of recruitment. Recruitment process consists of internal and external recruitments. One of the most appropriate definitions of these terms is provided below:
Internal recruitment is assessment of an employer's current staff to ascertain if any current employees are sufficiently skilled or qualified to perform required job vacancies. When a business engages in internal recruitment, a current employee might be reassigned to the new position by giving them either a promotion or an internal transfer (Business Dictionary).
Simply speaking, internal recruitment is the process of evaluation and hiring own employees of a company to occupy new positions in a company. Usually, this process is associated with promotion of employees. A formal definition of the term external recruitment is the following:
External recruitment is the assessment of the current available pool of job candidates, other than existing staff, to ascertain if any are sufficiently skilled or qualified to fill and perform existing job vacancies. When a business engages in external recruitment, a head hunter might be used to facilitate the search, contact and recruitment process (Business Dictionary).
Simply speaking, external recruitment is the process of hiring people who are not the current employees of a company. Usually, these processes are toughly related and used together in the process of recruitment by a company.
It should also be mentioned about recruitment methods and strategies
There are many recruitments strategies, methods, and instruments. A company uses those ones that are the most appropriate foot it in a given circumstances. Some of them are more expensive, some of them are less. Some of them require long-term approach, and the other ones do not. Among the most famous recruitment strategies the following ones may be pointed out: job advertisements, personal interviews, recommendations, internal bulletins, employment agencies, social media, social recruiting, etc.
Probably, the most important factor in recruitment process is the qualifications of a candidate. However, personal qualities are also very important. For instance, it is important whether a person is able to work in team, whether he/she is ready to accept core values of a company, etc. “Core values are those vital few values that all members of the organization are expected to use, live by and demonstrate on a daily basis while executing their work responsibilities” (“Wapda Administrative Staff Colege”).
Using teamwork, employees are able to unite their knowledge, experience, and abilities to reach some common aim. It will not be a mistake to say that in team, one can do much more than on his/her own.
The reasons of it are the following
Teamwork is usually able to enhance people’s strengths and to soften their weaknesses, what improves a team’s efficiency. Another advantage of teamwork is an effective time management. An effective time management is a task that can be really difficult when one works alone. On the contrary, in a team, each member can find it easier to complete their individual task, and afterward come together to complete a larger project.
Sometimes a complex project can seem almost impossible to complete, but a team with the right skill set can create miracles. In these types of difficult situations, a team feels like a family all striving for a successful result. This type of family thrives in a professional situation and can be very beneficial to the organization employing them.
Of course, groups do not always prove to work in synchronization, but overcoming the obstacles of diversity and joining forces will enable the team to complete a project successfully. To increase the possibility of it, some circumstances should be established.
One of them is job delegation
When maintaining a goal course, teams are on a daily basis used to complete complicated tasks. If one part of the team is not working properly, then the whole job could collapse. Delegating jobs to the right people is a very important part of a team atmosphere. Certain people are assigned different jobs in order to finish a project as efficiently as possible. Also, effective teamwork requires effective administration. Working as a team can be very beneficial practice if properly administered.
Another important factor in recruitment of an employee is whether a person can be motivated and what stimulus should be used. Many believe that motivation of employees should be based on expectancy theory. First of all, one has to define the expectancy theory. The essence of the expectancy theory can be described with the following words. “As we constantly are predicting likely futures, we create expectations about future events. If things seem reasonably likely and attractive, we know how to get there and we believe we can “make the difference” then this will motivate us to act to make this future come true” (“Expectancy Theory”).
Applying this theory to the reward systems of employees means that their salary depends on the result of their performance. Successful performance provides different financial bonuses and other incentives, and, vice versa, unsuccessful performance provides different fines and other sanctions.
This approach can be applied to individual workers and groups of employees
This essay answers the question what form (group or individual) is better. One of the performance-related reward systems is profit-sharing and share ownership of an organization scheme. In such a way employees are really interested in the successful development of an organization because they realize that their success depends on an organization’s success. That is why they will do their best and work harder.
Nowadays, more and more companies are using this scheme of motivating their workers. “Employee ownership schemes are often form part of salary packages, but many are limited to executives” (“Groups Versus Individual Performance”).
It is believed that individual reward system is better than the group one, because it creates a clear link between the performance of a worker and his reward. It is also easier to monitor a performance of an employee, and it excludes the possibility when some employee does not execute his functions, using the total group’s success. However, it is believed that group and individual schemes should be combined and used accordingly to the particular situation.
It is also important to mention the interviews
One can divide two types of interviews in recruitment process. One of them is targeted on evaluation of a candidate’s qualifications. It has been already said about factors that should be evaluated above. The other one is to negotiate the terms of cooperation between an employee and an employer.
Any person should participate in some sort of activity in the modern society. It means that any person should have some profession and job. A type of this job depends on a personal decision. Deciding what type of profession and job should be chosen, a person accounts the whole range of factors. Among them, the following ones may be pointed out: salary, financial benefits, social benefits, company’s prestige, etc. Usually, there are long and complicated negotiations between an employer and an employee about these factors. Thus, the role of negotiations in career development just cannot be overestimated. “When you receive a job offer you can either: accept it, reject it or negotiate for something else. The only reason to negotiate is to get fair market value for your skills, experience and knowledge. Therefore, it is unwise to negotiate for negotiation’s sake” (“The Negotiation Process”).
There are many factors that may be objects of such negotiations. Some of them have been already mentioned. Also, one can talk about professional development, personal and a company’s perspectives, role in a company, social role, constant education and trainings, etc. All of them are important and should be discussed with an employer. However, some factors have different importance for different people.
For example, salary, professional development, and potential of career growth may be the most important factors for one person. The reason for it is that these factors may define his/her future as a person and professional. Also, they are the long-term ones. On the other hand, financial bonuses, social bonuses may be less important. One may believe that having opportunities for professional development, hi/she will be able to receive such bonuses in the future. Bonuses are not possible without high level of professionalism.
A person should have some aces in order to convince an employer to hire him/her. Usually, such cases are covered in a professional portfolio of a person. The role of professional portfolio in recruitment process just cannot be overestimated.
To begin with, it is necessary to explain the meaning of the term professional portfolio. Simply speaking, professional portfolio is a set of a person’s skills, qualifications, achievements, and realized projects that characterize this person as a professional in some particular area. Generally, it is a combination of previous professional experience of a person and his/her personal and professional qualifications.
One can say that professional portfolio is a snapshot of a person. It is needed, first of all, for a potential employer. Using it, an employer can see one’s achievements and results of the previous work. Professional portfolio is a broader item than a CV. CV provides a list of one’s qualifications and achievements, while portfolio provides evidences of them. Therefore, the role of professional portfolio in career just cannot be overestimated. “Portfolios have much to offer the teaching profession,” writes Dr. Kenneth Wolf, of the University of Colorado.
When teachers carefully examine their own practices, those practices are likely to improve. The examples of accomplished practice that portfolios provide also can be studied and adapted for use in other classrooms.” And it's more than just a good idea. In many places, teachers and administrators must now renew their professional licenses (“The Professional Portfolio”).
Thus, professional portfolio is essential for any profession and area
Of course, some professions provide more possibilities for creation of professional portfolio. The following task is to define the main elements that should be included in a professional portfolio. It is believed that the following elements must be integral components of a professional portfolio:
- the list of a person’ professional skills and qualifications;
- the list of a person’s personal skills;
- a person’s previous working experience;
- information about a person’s education;
- some additional potentially important background information about a person;
- the list of realized projects and professional achievements;
- the list of some certificates or even rewards that prove a person’s qualifications.
The first five elements are also present in a person’s CV. That is why they are not obligatory. However, they may be included to remind this information and make it easier for an employer to surf all the provided documents. Additionally, a professional portfolio may include examples of a person’s work, examples of previous projects, etc.
The process of development of professional portfolio should be a constant one. It should last during the whole career. A person should add new achievements to this portfolio in the time when they occur. Generally, there are some rules of creation of a portfolio, but everything still depends on a person. Moreover, it can differentiate significantly between the different professions.
It has been already said much about professional portfolio, and it has been clarified that its role in any career just cannot be overestimated. It is a great addition to a person’s CV, and it plays a role of evidence of all the achievements of a person.
A professional portfolio is more than a hodge-podge of information and lists of professional activities. It is a careful record detailing one’s specific accomplishments attained over an extended period of time. A well-organized professional portfolio includes the following: a résumé; the scope and quality of professional learning, training, and experience; and, artifacts demonstrating professional knowledge, dispositions and performances attained (“The Professional Portfolio”).
It is believed that an effective professional portfolio must also contain the following elements:
- general (social) background of a person;
- plans and desires in a professional area;
- some samples of previous works and evidences of achievements.
It is believed that these are also the main and necessary artifacts that should be included in any professional portfolio. Of course, there may be some additional ones. For example, a person may provide some recommendations from previous colleagues, plans of development of a company, etc. The overall goal of professional portfolio is to convince an employer to hire a person. That is why one may include everything that one believes will execute this task. However, it is important to remember that portfolio should not be too long, because a reader may become tired reading it.
Now it would be reasonable to provide some background information about Riyad bank and then analyze recruitment process in this company. The company is one of the largest banks in the Middle East. It has almost 2000 national branches and offices around the whole world. It specializes in almost all segments of banking business, which is a great competitive advantage of the bank. Some additional information about the company can be obtained from the following information:
Riyad Bank also provides treasury products and services, which include foreign exchange, deposits and hedging instruments, and Saudi government bonds, as well as invest management services; and international banking services. In addition, the company offers asset management, brokerage, mutual funds, and investment services. It operates through 251 branches with 79 ladies sections and 20 self-service electronic branches; and 2,600 ATM's. Riyad Bank is headquartered in Riyadh, the Kingdom Of Saudi Arabia (“Riyad Bank Profile”).
The main modern trends are the following: straggling with the consequences of the global financial crisis, possible privatization, investment in modernization and development of equipment and network, and strategic alliances with other international companies. First of all, it is necessary to pay some attention to the influence of the global financial crisis on the company’s performance. To do it, one has to understand the reasons for the global financial crisis and its main features. As one knows, global financial crisis was caused by the credit and speculative character of the world’s financial system. It was only the question of time, when this credit pyramid should collapse. This collapse has harmed almost all the industries of the world’s economy. It is the fundamental reason for the crisis. The direct reason was inability of the American consumers to payback their mortgages. As a result, banks were forced to experience significant financial losses. On the other hand, banks have limited their services to the real economy. For example, it has become very difficult to receive a loan in the circumstances of the global financial crisis.
The main consequences of the global financial crisis are the following: unemployment and economic decline; instability of financial system, and difficulties in accumulating needed funds; decline of demand for the different groups of services and products; changes in institutional environment, etc.
As a result, the company is facing difficulties in accumulating the needed financing
In the circumstances of the global financial, crisis it is almost impossible to take up a loan or to use other financial instruments with the purpose of accumulating needed financial resources. Respectively, the company feels difficulties in financing its performance. It is also forced to limit its plans of development and modernization of equipment and network. Such situation undermines the company’s future. It is believed that situation may change in the future, but currently, the company is forced to face temporary financial difficulties.
First of all, the company uses its own resources to find and hire employees. However, it may invite outsourcing agencies for some special occasions. HR department is responsible for the whole process. The process of hiring consists of the following stages:
- Receiving orders for the selection of candidates for the position, preparing legal documents.
- Market analysis of candidates for this position.
- Search of resumes in the database.
- Self-placement of job advertisements in the media and Internet.
- CV analysis and selection resumes that meet the requirements of the position.
- Initial telephone interview. Identifying candidates under basic formal requirements of the vacancy.
- Selection and inviting candidates for a personal interview with the HR department to identify accordance personality traits, career goals and other customer requirements. Check of recommendations from previous jobs.
- Representing the client resumes.
- Maintenance of successful candidates in the subsequent selection.
Recommendations to improve the process may be the following
Selection of top executives has its own specifics: senior managers are reluctant to seek employment through agencies, since they are rarely without work. Therefore, their selection is almost always associated with the process of “poaching” of their old firm, which will prevent the transition. This category of managers has value to the company. They are carriers of administrative and commercial information, dramatically affecting the life of the firm as a whole. Due to the complexity of this type of work, it is the most highly paid area of recruiting.
It is necessary to develop and propose a project that minimizes risks probation of selected candidates and amend the very system of interaction with a customer company and the work of consultant selection. The key point that was established in cooperation with the customer is a professional level consultant. Therefore, a prerequisite for an effective interaction of the project is to train staff to improve their skills.
Improving the relationship with the client, recruiting company includes the study of the interaction of technology companies, customers, and recruiting agency. It also clarifies the fundamental problems in the recruitment agencies, organizational, and personnel recruitment company audits, development of a new system design, and interaction of a recruitment agency with clients.
Analyzing interaction technology companies, customers, and recruitment agencies, the conclusions that the main problems in the interaction are:
- risks associated with non-completion of the project consultant recruitment;
- risks associated with not passing probation candidate.