Effectiveness of Recruitment and Selection as a tool for achieving Higher Employee Productivity, A Case of Trustline Securities Ltd., Noida, U.P.AbstractRhythem Aggarwal&Dr. Harminder Kaur GujralThis case deals with the study on “Effectiveness of Recruitment and Selection as a tool for achieving Higher Employee Productivity in Trustline Securities Ltd.” Regardless of the tremendous physical assets and the most recent innovation, an organization ends up amidst of financial crisis that it doesn’t have the ideal individuals to oversee and lead its undertakings.
Thus human resources are an extremely profitable resource without which an organization can’t advance taking all things together. Recruitment and selection is of utmost importance for any organization to select the right people in right place. For this every organization ought to have its own specific recruitment policy. It is a difficult task for organizations to search, recruit, and select talented people in present tight work showcase.
Organizations need to put a greater number of endeavours other than offering attractive salary to attract qualified talents. Thus, it is important for them to understand how best they can recruit and what best they can offer to employees. This case aims to study the impact of effective recruitment and selection on the employee productivity in the organization.
The study recommends that though most of the employees are satisfied with the current procedure but the management of the company should focus more on job location and job specification before hiring any prospective candidate. More stress should be given to recruit qualified & skilled percentage for scrutinizing the application of prospective candidates.Keywords: Human Resource, Management, Productivity, Recruitment, SelectionIntroduction 1Trustline Securities forayed into financial services as a proprietary stock broking house in the year 1989. Trustline had established themselves as the pioneer in the financial services sector through their wide array of offerings. Trustline offers customized investment solutions to corporates, institutions and retail investors through their wide network of offices across India.
With over 29 years of experience in the entire gamut of financial services, Trustline offers equity, currency and commodity trading, real estate advisory, wealth management advisory, gold coins and insurance broking services through its various group companies. Trustline group has over 400 offices pan India with presence in major metros managed by experienced and seasoned market experts and financial specialists to undertake all financial related works up to the satisfaction of an array of clients.Group Companies:Trustline Securities LimitedTrustline Commodities (P) Ltd.Trustline Finvest Ltd.
Trustline Insurance Brokers (P) Ltd.Trustline Real Estate (P) Ltd.Trustline Gold (P) Ltd.Trustline Academy – The Investment SchoolKey Areas of Specialisation:Trustline Understands and analyses the clients exact requirements and then provide a range of options to suit the requirements. The company renders claim advisory services. It provides “after insurance services” for endorsement, declaration and renewal. It renders Professional service at all levels by a dedicated relationship manager.
It evaluates the risks associated with the clients business, advise them about the insurance options required for covering the risks. It evaluates the most cost effective options of insurance cover, the right sum to be insured. It also provides tailor made policies that need to be taken and assess the policy term so that the client can get most competitive price from the Insurer of their choice without diluting the coverage and its benefits.
It also sees that all activities like placement of business, endorsement, settlement of claims are carried out in a smooth way.1 (Trustline, 2018)What company strives to achieve?Trustline strives to further build the trustworthy environment with the clients so that they can continue to be a reliable source of value added services for creating the wealth of their clients.The company strives to bring forth the best professional output from our human resources, our most valuable assets, by encouraging, motivating and developing them to perform a cohesive team in a congenial atmosphere.Its focus is towards attaining client satisfaction collectively and collaboratively by entering into strategic partnerships with the new associates and build the relationships with them and their existing business associates to ensure easy accessibility to their valued client.It strives to keep up with the latest technological developments worldwide and incorporate them into their organization to continually upgrade and improve their systems and processes.
It continuously strengthens its technical and fundamental research to guide and advise its clients keeping in view the unique needs of individual clients.Challenges to the companyEmployees’ productivity is going down affecting company’s revenue over the period. An in- depth interview and a research study was conducted in the organization. The problem lies in company’s recruitment and selection practices. It is no doubt that the achievement of the corporate objectives largely depends on the calibre of human resources or personnel factors that make up such organization. As, the survival of any ideal organization is a function of the nature and quality composition of such venture. This crucial fact influenced and affected the recruitment and selection practices.
In the organization, the sensibility for the decision of new employee is shared between line management and human resource department. The human resource department should be competent to advice on the most modern and best techniques and practices as well as provide a professional support and observing administration, while line management is involved in the final decision as to who does or does not work in their area of expertise. It is therefore very glaring that line managements must be trained, and exhorted in selection matters especially interviewing.The need for recruitment and selection in the organization depends upon the number of existing vacancies to be filled or new post to be created. Generally speaking, the conduct of recruitment and selection processes involves cost such as advertising cost, testing cost, interviewing,placement and event employment cost.
In view of these, there is much need for the organizationto process the concept of seriousness, commitment, merit selection and organizational diplomacy in the conduct of recruitment and selection practises. Once organization yields to these facts, it would go a long way to influence the velocity of the attainment of corporate objectives and also reduce the rate of labour turnover drastically. To work with people effectively, understand human behaviour, attitude and various practices available, a skilled and motivated workforce must be acquired. Most of today’s businesses concentrate more on human resources rather than physical resources.
Candidates who are able to add values to their clients’ businesses represents the ability of a good recruitment company in searching talents. Human Resources set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas such as recruitment and selection.”Recruitment2 refers to the action of attracting, screening, and selecting potential and qualified individual who might join an organization.” It involves using application forms, resumes, interview schedules, employment and skills tests and reference checks to evaluate and screen job candidates. The sources can be from the following: Institutions, Recruitment agencies, Relative and friends, Labour exchanges, Internal labour market.
After recruitment, Selection3 is the next step in the employment process. “Selection may be defined as the process of choosing individuals who have relevant qualifications to fill existing or projected job opening.” One the most important decisions made by managers is the hiring decisions. Without the right people in the right positions, neither a company nor individuals can execute exceptional performance.
A foundation can be created by good hiring decisions for more effective overall company performance. Conversely, bad hiring decisions can spoil the organizational performance and are pricy to correct. Productivity is one of the most challenging issues related to manufacturing and service organizations. “Productivity usually relates to efficiency (how many valuable resources are used relative to what it produced) and effectiveness (measuring the ability of the manufacturing or service process to produce the desired result). This can be achieved if the selection process of an organization is devoid of nepotism and chance to meet the challenging constraints affecting the organization.”2 Onyeaghala OH, Hyacinth MI (2016) Effects of Employee Selection Process on Productivity in the Public and Private Sectors: A Case of Benue State. Bus Eco J 7: 273.
doi: 10.4172/2151-6219.10002733 International Journal of Management Sciences and Business Research, 2014 ISSN (2226-8235) Vol-3, Issue 12The importance of strictly following the selection process is vital for organizational competitiveness and a failure to approach this function effectively will result to selection of wrong and under-performing employees which will in turn lead to low level of productivity. It is a difficult task for the organization to search, recruit, and select talented people in today’s tight labour market.
As there are fewer qualified talents available, the competition is intensifying. This shortage leads to absolutely essential for the organization to conduct effective recruitment, selection, and retain quality talents. What is more is that acquiring the right talent is becoming an increasingly complex and challenging activity. “Recruiting has always been a stitch in the side of company productivity.” It is expensive.
It is time consuming. Even though the study shows the high cost of employee turnover in time, money, and lost productivity, recruiting has continued to often be rushed and superficial. “When the rubber hits the road, managers often just want a warm body.”The study assessed the effectiveness of recruitment and selection policies which affected the productivity of employees in Trustline Securities Ltd. Other objectives the study helped to achieve were to find employers and employees’ opinion about the present process, to ensure the employment of competent and well qualified staff that are capable of working with the best of their ability towards achieving greater productivity and to suggest possible improvements in the recruitment and selection process.Recommendations and Possible ImprovementsThe study established that the companies’ recruitment and selection practices can be improved to a large extent. We see that ‘Location’ and ‘Right person for right job’ are two key factors that measures the effectiveness of recruitment and selection practices of the company which directly affects the employee productivity.
So, the company should hire prospective candidate who is fit for the job specification and job location. On the employee part, they should do a detailed job analysis which they are seeking to get what is best suitable for them. The management of Trustline Securities Ltd. can increase its scope of requirement for recruitment agencies, job fairs where people get to know about the company.
Recruitment and selection team should be well qualified and trained so that effective recruitment and selection takes place. Practical aspect of job selection procedure can be more focused upon to assess the knowledge and competency of the candidates. More stress should be given to recruit qualified & skilled percentage for scrutinizing the application of prospective candidates. The company should stress upon filling the candidate with all the required information related to job specification, job description to allow the candidate to be fully packed upon what he will be doing in thefuture at job place. This will help in reducing attrition rate at a later stage as a large number of employees tend to leave their job upon getting to know what they actually have to do.Also, the company should have a recruitment feedback mechanism to know employees’ responses on quality of recruitment and selection practices of the company, so that same can be improved.
Organization will have to put more effort other than offering attractive salary to attract qualified talents. With the various job opportunities currently available, applicants are hard to please. They are looking only an attractive wages, as well as talents are choosing organizations that can provide them various kinds of benefits, the potential career advancement, and a healthy positive environment in which they feel comfortable to learn and thrive. If an organization fail to fulfill these requirements, employees’ productivity tends to decrease which directly affects the organization. Thus, it is important for the company to understand how best they can recruit and what best they can offer to employees.
ImplicationsThe study on recruitment and selection is more an ART than a PROCESS. HR experts have a big responsibility to hire the best person from the accessible talent pool. At the same time, one needs to be cost conscious. The employer should make a judgment on individual merits and set the similar standards for all. In the present scenario, “It is the biggest challenge for a HR manager to hunt for talent.” The4 focus of recruitment and selection is to match the capabilities of prospective candidates against the demands and rewards inherent in a given job.
For this reason, top performing companies devote considerable resources and energy to creating high quality selection systems. Recruitment and selection process are important practices for human resource management, and are crucial in affecting organizational success. The quality of new recruits depends upon an organization’s recruitment practices, and that the relative effectiveness of the selection phase is inherently dependent upon the calibre of candidates attracted.
Study demonstrated that more effective are the recruitment and selection practices, more is the employee productivity and vice-versa. Employees’ screening should be done well and employee should be acquainted with the job specifications so that he/she can select what is best for him/her. The employer-employee relationship also affects the employee productivity, so both should be on good terms with each other. Finally, better recruitment and selection strategies result in improved organizational outcomes.
The more effectively organization recruit and select candidates, the more likely they are to hire and retain satisfied employees.4 DJABATEY, EDWARD NARTEY, RECRUITMENT AND SELECTION PRACTICES OF ORGANISATIONS, A CASE STUDY OF HFC BANK (GH) LTD. (PG 3057709)