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Staffing System and Retention Management

The factors to address in developing a report on the effectiveness of a staffing process for entry-level jobs are staffing system, recruiting, selection, final match and retention, each of these factors needs to be evaluated in terms of its cost, timeliness, outcomes and reaction (Heneman, Judge and Kammeyer-Mueller 652). Staffing cost includes staffing budget, staffing to employee ratios and staffing expenses. Timeliness of staffing system is evaluated based on the time it takes the applicants to respond to the request. Outcomes and reaction of staffing system include the employees’ readiness for the job and the satisfaction with their services.

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Recruiting and selection are evaluated based on the expenses for advertising, number of hired weekly, quality of applicants. Final match is evaluated based on training costs and cost per hire, time it takes the new employees to start performing, number of positions filled and new employee satisfaction. Finally, retention is evaluated based on replacement costs and exit interview expenses, the timeliness of response to external offers, job satisfaction among the employees and the rates of voluntary and involuntary separation.

These factors need to be addressed because the efficiency of staffing process is determined by its cost-effectiveness (staffing and recruitment need to match their cost), and the level of the potential applicant’s responsiveness to the starring methods (the methods need to provide the company with a sufficient number of candidates). Besides, the quality of the candidates targeted and attracted by the staffing mechanisms is another vital factor. Finally, the retention rates are crucial for the entry level jobs due to the fact that they provide the potential candidates for internal recruitment in the future.

There is a number of problems that can be caused by downsizing as an organization’s response to a need to cut labor costs. First of all, downsizing through the voluntary turnover can be extremely expensive for an organization. This occurs due to the fact that downsizing organizations tend to have low stock price and low return on investment (Heneman, Judge and Kammeyer-Mueller 683). Besides, another problem is people’s time lost die to downsizing. Since the managers involved in exit interviews have to be paid for this work – each exit interview’s cost can be estimated based on the time the managers spend holding it. Replacement and training are not considered to be a part of downsizing, but separation costs for a permanent RIF are. Another cost is cash outlays for buyout and severance packages and unemployment compensation insurance premiums (Heneman, Judge and Kammeyer-Mueller 689).

Moreover, such problems as significant talent loss and the company’s inability to quickly respond to the workforce additions are also important parts of downsizing. Besides, downsizing often leads to lawsuits and job dissatisfaction, contagion among the workers that causes other employees to leave their jobs, conflicts between the managers and the employees, the destruction of workplace atmosphere and balanced relationships between the employers and workers. Finally, it leads to the decrease of the whole company’s reputation which will inevitably lead to issues with attraction of new talents. Downsizing is especially dangerous for the organizational culture which is based on certain values, trust and mutual responsiveness between the workers and the managers. Downsizing and restructuring force the organizations to let go the employees familiar with the inner culture of a company, disrupt the balance, create uncertainty.

Works Cited

Heneman III, Herbert, Timothy Judge and John Kammeyer-Mueller. Staffing Organizations. 8th ed. New York, New York: McGraw-Hill/Irwin, 2012. Print.

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