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This Guide Covers The PHR® Exam Content From The Talent Planning And Acquisition Functional Area And Consists Of The Following Responsibilities And Required Knowledge.
01 Understand federal laws and organizational policies to adhere to legal and ethical requirements in hiring (for example: Title VII, nepotism, disparate impact, FLSA, independent contractors) 02 Develop and implement sourcing methods and techniques (for example: employee referrals, diversity groups, social media) 03 Execute the talent acquisition life cycle (for example: interviews, extending offers, background checks, negotiation) In Addition To The Preceding Responsibilities, An Individual Taking The PHR® Exam Should Have Working Knowledge Of The Following Areas, Usually Derived Through Practical Experience: 12 Applicable federal laws and regulations related to talent planning and acquisition activities 13 Planning concepts and terms (for example: succession planning, forecasting) 14 Current market situation and talent pool availability 15 Staffing alternatives (for example: outsourcing, temporary employment) 16 Interviewing and selection techniques, concepts, and terms 17 Applicant tracking systems and/or methods 18 Impact of total rewards on recruitment and retention 19 Candidate/employee testing processes and procedures 20 Verbal and written offers/contract techniques 21 New hire employee orientation processes and procedures 22 Internal workforce assessments (for example: skills testing, workforce demographics, analysis) 23 Transition techniques for corporate restructuring, mergers and acquisitions, due diligence processes, offshoring, and divestitures 24 Metrics to assess past and future staffing effectiveness (for example: cost per hire, selection ratios, adverse impact)
This guide reviews the critical functions of talent planning and acquisition. This functional area covers 16 percent of the PHR® exam. Many of the responsibilities and tasks associated with this guide are most closely related to day-to-day, transactional HR tasks in identifying, attracting, and employing talent. Additionally, this guide discusses the required knowledge and responsibilities associated with following all federal laws related to the hiring process. This functional area covers recruiting, selecting, and retaining employees and the processes, procedures, and rules that govern the associated tasks. It also reviews the complete life cycle of talent acquisition from the initial interview, through a successfully negotiated offer, to the due diligence of candidate background and reference checks.
Required Knowledge
In current HR practice today, recruiting has become a specialty subset of the profession. Because this function is not necessarily a core competency of a business model, many organizations may, at least in part, outsource the responsibilities that are time-consuming and require specific knowledge. The required knowledge for an HR professional in the area of talent planning and acquisition will help an organization to build and maintain a strong team of employees even if some of the tasks are conducted outside the company. Knowing how these functions work will develop depth within the HR team. Talent Planning Activities and Concepts HR professionals must be fluent in the concepts and terms related to talent planning and acquisition. This includes an understanding of applicable federal laws and regulations that govern these activities. HR professionals should be familiar with examples of intricate processes and details such as forecasting and succession planning that represent the required knowledge for the PHR® exam. Federal Laws and Regulations This review guide is not a legal guide and is not intended to determine the legality of particular practices or policies within an organization. However, HR professionals should be familiar with the applicable laws and be able to analyze how those laws may impact the hiring and employment decisions for the company. Note: Having access to legal counsel familiar with employment law is important to an organization. The HR professional will work hand in hand with employment attorneys to mitigate risk associated with employment practices. Litigation that results from bad hiring decisions can be costly both financially and to the company’s reputation. Even in cases where there is a settlement, it is still an expensive proposition. A proactive approach to strong, compliant employment policies is the best way to guard against lawsuits.
Title VII of the Civil Rights Act of 1964 The most significant legislation that governs antidiscrimination in hiring is the Civil Rights Act of 1964. Title VII of that act lays the groundwork to ensure equality in hiring, pay, training, and other employment matters. While some states have passed other laws, this law still serves as the foundation of employment hiring practices in the United States. The law makes it illegal to discriminate on the basis of race, color, religion, gender, or national origin. Additional federal laws have also been passed that include age, pregnancy, physical disability, and veteran status as protected classes. Gender Identity and Sexual Orientation as Protected Classes While Title VII protects against gender discrimination, the laws on transgender and gender identity are still evolving in court cases at the state and federal levels. Also, some states have laws that protect individuals from discrimination on the basis of sexual orientation; but again, at the federal level, whether Title VII applies has not been determined by the courts. In all cases, it is always best for an HR professional to implement hiring practices that ensure a fair and neutral process and thus allow the strongest diversity among applicants.
The Americans with Disabilities Act and the ADA Amendments Act This federal legislation prohibits discrimination on the basis of a disability. The term disability refers to any impairment that limits a basic life function. While physical disabilities may be easier to identify by employers, this law also covers mental disabilities. These disabilities are not required to be severe or permanent. The law also requires employers to provide reasonable accommodation to employees with a disability. Reasonable accommodation is provided following an interactive process whereby an employee may request accommodation and the company and employee work jointly to find a resolution that meets the employee’s needs without undue burden or hardship caused to the employer. Real World Situation: A Standing Desk An employee complains of chronic back pain and has been missing several days from work because of a repeated back ailment. She has a clerical job that requires working at a desk where she sits several hours a day. In discussing the continued pain and discomfort, the employee mentions to her supervisor and later HR that her doctor has recommended periods of standing to relieve pressure on the lower back. Under the Americans with Disabilities Act (ADA), even though the employee may not have said the words reasonable accommodation, this would trigger an interactive process. The company was able to procure an adjustable desk platform that could be elevated and lowered so that the employee could stand for periods and continue to work and then sit as desired. In many cases such accommodations are inexpensive and provide a simple solution that meets the needs of the employee. As a result, there was a sharp reduction in the number of missed days because of illness and an increase in productivity of the employee. Other types of equipment accommodations might be a specialized chair, computer monitor, or keyboard. Even some software like voice recognition programs can help employers meet the needs of their employees with physical disabilities.
The Equal Employment Opportunity Act of 1972 This law further strengthened Title VII to cover a large portion of the employers in the United States and established the Equal Employment Opportunity Commission (EEOC) as the government office charged with administering and overseeing the rules and regulations, including interpretations of the law. The act applies to private companies that employ more than 15 people in full-time–equivalent positions; to federal, state, and local governments; and to educational organizations. The EEOC provides guidance to employers in the form of the Uniform Guidelines on Employee Selection Procedures that an HR professional should be familiar with to understand how to avoid bias or prohibited hiring practices that create disparate treatment or disparate impact to protected classes of employees.
The Immigration Reform and Control Act This law has two major functions. The first is to prevent discrimination against employees based on national origin or citizenship by providing clear guidelines to employers on hiring foreign nationals and the proper documentation of foreign workers in the United States. The second imposes civil and criminal liability to employers for knowingly employing undocumented workers who are not eligible for employment in the United States. It is the responsibility of the employer to prove an employee’s eligibility. This is done using the federal I-9 form to verify identity and right to work in the United States.
Note: There are several choices for an employee to prove identity and employment authorization on the I-9 form; however, the employer should not state a preference or demand certain choices from employees as this alone could be discriminatory and violate the law. Planning Concepts and Terms HR professionals must know the various techniques and methods of planning, marketing, and staffing the workforce of the organization. They must have working knowledge of alternatives to direct hires and the sources of qualified candidates. Finally, they must understand how market forces and outside influences can impact the available talent pool and how to use this knowledge to have a comprehensive recruiting strategy. Planning Techniques: Succession Planning and Forecasting Succession planning is not identifying a single person to take someone’s job in the future when the individual leaves or retires. It is a comprehensive career development model that determines the required knowledge, skills, and abilities for a position and then plans how employees within the organization can learn and develop them through education, training, and experience. Ideally, the goal is to have a bench of potential successors to key jobs in the organization. It also means, as a corollary, that the organization identifies the key jobs in the company that either are low density and hard to fill or perform tasks deemed critical to the organization’s core competencies. Through this technique there is a deliberate process to identify and groom quality employees with leadership potential. There is a risk, however, as there is no guarantee that these employees remain in the organization or that anticipated openings emerge when expected to allow timely promotions. Forecasting looks at the demographics of the organization and determines things such as years remaining before retirement eligibility and turnover rates to project losses to the company. It uses skills inventories and surveys to determine the available talent to meet company talent demands. It then compares the available talent pool, examining graduation rates, market salary studies, skills, and geographic limitations for jobs. A geographic limitation might be something like the availability of affordable housing in the area for the workforce. This would impact a company’s ability to hire employees, especially from outside the area needing to relocate.
Staffing Alternatives Staffing alternatives are means to employ a workforce that may not be organic to the company. There are various techniques and resources that an organization can use to manage these available sources of talent. HR must assess alternatives and determine viability. Companies can choose to hire a talent management firm to provide temporary workers or temp-to-permanent hires in which an outside source is completely responsible for the recruiting, selecting, hiring, and sometimes training before the employee works for the company. In the case of staffing firms, even the management of payroll and benefits is handled externally for a fee usually calculated as a premium on the salary wage.
Outsourcing is where the entire function is performed by a separate company, eliminating the need for the talent or skills within the company. This is a good technique when the tasks are not the core competencies of the company. Job sharing is where two part-time employees can fill one full-time–equivalent position, reducing cost by reducing eligibility for full-time benefits. In some cases, this benefits employees that need more flexibility in their schedule or are not available for full-time work. Another staffing technique for long-time workers of the company is a phased retirement. In these circumstances, a senior worker transitions over a predetermined time (usually a year) and goes from a full-time worker to a part-time worker but maintains eligibility for benefits or is provided with an incentive. This allows upward movement in the company for highly qualified workers while providing business continuity, stability, and predictability for workers transitioning to retirement. Hiring Talent When hiring for a company, HR professionals must know the current market situation and the availability of talent. They become knowledgeable about proper interview techniques and how to track applicants at each stage of the hiring process. Finally, they understand the impact of total rewards on recruitment and retention of strong talent that meets the mission and values of the company. Market Conditions The availability of talent is impacted by the current market situation, and an HR professional must be able to analyze and understand these trends to make good hiring decisions. If a company has a high demand for skilled labor, it is often more difficult to fill vacancies because of the requirement to find talent with the right knowledge, skills, and abilities for a position. Generally, as the economy improves, unemployment drops, decreasing the availability of surplus talent. Also, the number of voluntary quits as a percentage of separations increases because employees have more confidence that they can find suitable work with other employers and may demand increases in wages or benefits to be retained.
Note: Skilled trade positions are especially difficult as individuals require specialized training in their craft. For many years focus in the United States has been on white-collar jobs requiring a four-year degree. Vocational and technical schools are now seeing a resurgence as a result of increasing costs in higher education, an aging population of trade workers, and corporate focus on apprenticeships and internships to grow and develop talent from within. Interview Techniques One of the most important parts of the selection and hiring process is the interview. Ultimately, interacting with the candidate and understanding firsthand the qualities, knowledge, skills, abilities, and other attributes the individual is capable of bringing to the organization is a critical step. However, it is because of human fallibility that this one step is more fraught with the peril of error than any other. We too often bring our own lenses formed with the bias of experience into the process, so it is essential that HR professionals understand the limitations and restrictions that accompany this process.
Behavioral Interviews These types of interviews are common in the workforce today and are intended to give insight into how an applicant might handle a hypothetical situation that may occur by linking past actions or results to the future job. These questions may be structured in the manner “Give me an example of a time when you . . . ,” and the fill-in-the-blank would be related to the context of the new job, such as “had to deal with a difficult decision” or “made a mistake on the job” or “implemented a new program that employees needed help to understand.” While behavioral questions are popular, they have some challenges. First, most prepared applicants will have studied the types of behavior questions that will be asked and have prepared answers. These answers may or may not provide any more insight into the candidate’s abilities. Next, since the questions are derived from a previous experience or hypothetical situation, they may not have relevance to the future position, and the employee may end up acting differently in that context.
Situational Interview A situational interview is similar to the behavioral interview but does not look at past experience or actions; instead, it places the applicant in a scenario and asks them to describe the actions they might take if such an event were to occur. This allows the interviewer to perhaps set the stage of the conditions that the applicant might face in the job and how that individual might go about responding to the situation. The shortcoming of this process is that the answer may be dependent on how well the scenario is described, and what facts are provided may affect the outcome of a decision. For example, if the situation called for handling a difficult employee who is being aggressive with co-workers, the applicant might respond with an answer to verbally reprimand the worker or choose some other disciplinary action. However, the situation changes if, in the scenario of handling this employee, other facts come to light such as a lack of training, development, or involvement by the supervisor that has contributed to such employee actions.
Group Interview A group interview takes advantage of the multiple perspectives of different individuals evaluating the candidate at the same time. There are two types, panel and team interviews. In a team approach, all the members of the group are from the same work team and could be peers, subordinates, and supervisors. This is necessary because the team so heavily relies on cooperation among the group that input is needed from all levels. At the panel interview, there may be a representative group that comes from different departments in the organization. Each panel member may represent the areas that the position works with or may provide the subject-matter expert who can assess different competencies. While group interviews allow everyone to get an understanding of the applicant, depending on the group size, the amount of time allotted might be split among the group members, limiting the amount of information that can be determined by any one individual in depth. The larger the panel, the more uncomfortable an applicant may be in answering questions. Finally, it is important to have a diverse panel if the intent is to gain more perspectives. Panels that are composed of all one gender, race, or ethnic group might inadvertently have bias to some candidates. The Applicant Tracking System Modern HR practices include hiring and recruiting through the Internet. Paper forms are replaced by digital applications completed online by the applicant. There are several commercial off-the-shelf applicant tracking systems (ATSs) widely available, depending on the size and scope of the organization, that allow HR to sort and screen applicants based on experience and skills. The system stores the information digitally and tracks the applicants through the entire process. Current employment law and regulations allow for the digital storage of applicant information, provided voluntarily by applicants, used to verify and validate compliance with antidiscrimination laws. By using digital databases, instead of cumbersome paper tracking, a company can more readily track, measure, and analyze trends to improve the quality and diversity of the workforce. For larger organizations, an ATS is critical to keep track of the potentially hundreds of applicants for each available job. These systems can also be linked to third-party vendors for conducting reference and background checks by seamlessly transferring personal information needed to conduct these checks and provide the required notices to obtain consent by the applicant to conduct these reviews. It is important when reviewing references that HR obtain consent to disclose personal information and to provide the applicant with their rights concerning reference checks. Applicants must be afforded the opportunity to respond to any negative information from outside references. Retaining Talent Hiring quality employees is only a step in the life cycle of talent planning and employment. Once they are on board, it becomes the job of the HR professional to ensure that the organization is capable of retaining the necessary talent to meet their goals and objectives into the future. Analyzing the talent and understanding how compensation and benefits can impact the workforce are covered here. You also will look at the variety of ways employees transition from the company and some of the reasons why that relate to company decisions on workforce size and scope. The Impact of Total Rewards on Recruitment and Retention To hire and maintain a quality workforce requires an effective pay strategy that considers the total rewards for the employee. While pay is often the strongest motivator, it is not the only reason employees seek employment nor is it the only reason employees stay with an organization. A diverse workforce will have diverse motivations for working in a job.
Rewards and Recognition Programs A consistent program that rewards employee behaviors that emulate the company’s values will encourage employees to be retained in the organization if those rewards are valued by the employees. The rewards can be large or small but should demonstrate how the employer values the contribution made by the employee. For example, if an employee’s action saves the company thousands of dollars, providing a $5 gift card to a coffee shop doesn’t say that the employee’s actions are highly valued. Training and opportunities to grow and develop skills are also a means of recognizing the achievement and potential of employees. The employer should dedicate resources to helping manage the talent so that there is a pool of available individuals who can be moved into leadership or supervisory roles capable of performing those tasks and responsibilities successfully. Integrating and Onboarding Talent Finding the right talent to fit the organization is challenging. However, a new employee must quickly integrate into the company to perform their duties effectively and support the overall mission. A successful onboarding process and orientation has a significant impact on an employee’s feelings of belonging and retention with the organization. The process is reinforced with each interaction between the company and the candidate and also includes testing, negotiations, and offers. Candidate or Employee Testing Testing serves a legitimate purpose in the evaluation of talent in the hiring process. It is critical that HR professionals have knowledge about proper testing procedures that assess what is needed to make a decision but avoid testing biases that could violate equal opportunity protections of candidates. In general, a company should ensure that testing procedures provide the following: - Testing is conducted without regard to protected classes. - Testing is properly validated and job-related. - Alternative methods are used if possible, when there is a disparate impact to certain classes with the test results. - Testing results are predictive of performance success. - Testing decisions are deliberate and well-conceived by the organization to achieve a legitimate business outcome.
The EEOC lists several examples of employment tests including cognitive tests, personality tests, medical examinations, credit checks, and criminal background checks. For more information, you can review EEOC guidelines at https://www.eeoc.gov/policy/docs/factemployment_procedures.html. Note: Credit checks and criminal background checks are considered to be part of an assessment of a candidate’s potential in a position. These important checks are a legitimate part of a company’s due diligence process in vetting potential employees. However, restrictions and limitations have been placed on these background checks by the Fair Credit Reporting Act (FCRA) and by many state laws that attempt to reduce the potential disparate impact of certain protected classes. These candidates have a higher percentage of criminal history for infractions that are often not related to the duties and responsibilities of a potential job and may face discrimination in the hiring process. Employment Offers The employment offer is the verbal and written correspondence that outlines the agreement for terms of employment. It establishes the quid pro quo for what an employer provides in terms of compensation, benefits, and working conditions for the services to be provided by the employee and the manner in which those services are to be provided to be deemed acceptable. It is best that an employment offer be provided in writing and accepted with a signature from the employee. A contingent offer is sometimes made if both parties agree to move forward pending the successful outcome of some subsequent action such as a background check, drug screening, or medical exam. In some cases, if a degree is required for a position, a contingent offer is made pending receipt of official transcripts.
An offer letter should have key pieces of information that clearly state the terms and conditions of employment: - Proposed salary and benefits to include how they are to be paid or delivered - Hours of work, place of duty, start date and time - Any special conditions or requirements that must be met - A time frame for which to consider the offer and to provide a response - A clear statement that the employment is “at will” to avoid legal issues and expectations that are sometimes part of an employment contract.
An employment contract differs from an offer letter as it establishes an express agreement between the employer and employee and speaks to the nature of the employment. For example, some teachers are hired year to year under a contract where they teach for a given school or district and must complete satisfactory work for the entire school year. They are not allowed to transfer or change school districts without proper notice or acceptance from their current employer, or they may face censure and be unable to practice because teachers are regulated and require licensure. Other examples might be a veterinarian who signs a noncompete clause contract stating that if they leave a practice, they cannot go to work for a competitor for a period of time within a given radius.
Note: Employment contracts are part of employment law, and HR practitioners should always consult an experienced employment attorney when navigating these topics. Post–Employment Offer Activities Once an employee has accepted an offer of employment, an HR professional must ensure that the new employee is integrated into the organization. There are critical legal requirements that must be completed immediately to verify employment eligibility. The I-9 form is a federal form that an employer must complete for every individual employed by the organization. It records information on citizenship and identification to help an employer determine a worker’s status. These forms must be maintained for the entire period of employment and retained after employment in accordance with federal guidelines. E-Verify is the online web-based system that compares information on the I-9 with other government information to validate the information provided. If an employment offer included relocation activities and cost, the HR department may have a role in that process, working with the new employee to help them move to the area. They ensure that all supporting documentation and receipts are submitted for reimbursable expenses and assist with providing information on the local area including schools, real estate agents, local cultural venues and attractions, and other similar life needs to help employees assimilate faster. Orientation and Onboarding All new employees must be properly welcomed to the organization. In fact, retaining quality employees begins with how well they are first received by the organization. Companies that demonstrate intentional caring about their employees are more likely to be effective at keeping those employees motivated and engaged. The HR team provides the orientation to the company in the form of policy guides, initial personnel data uploads for the enterprise digital information systems, history of the company and shared values, supervisory and staff introductions, and other helpful insight into the company operations that help employees acclimate during the first few days to the first week. Onboarding lasts longer than the first few days of employment and does not include just HR-related activities, although often the responsibility to ensure that all onboarding tasks are completed falls to the HR professional. Such activities may include observing downstream or upstream tasks related to the job duties of the new hire to see how their work fits into the overall organizational structure, attending specified internal training based on the position or responsibilities, and attending organizational meetings or other key events in the company. Assessing the Effectiveness of Talent Planning and Acquisition HR professionals should seek continuous improvement in the talent planning and acquisition processes. It requires ongoing assessment of the internal workforce to ensure that the available talent meets the demands of the company to accomplish its goals. Metrics are developed and implemented to provide data for analysis to make strong hiring decisions. When the data shows that talent is no longer meeting the needs of the organization, transition techniques are applied to move the company to restructure or realign the talent as part of a necessary change. Internal Workforce Assessments Techniques are available to conduct internal assessments of the current workforce in an organization and the available labor pool from which to draw talent. Some of the techniques are as follows: - Skills testing - Skills inventory - Workforce demographic analysis
The skills testing and inventory are the parts of career development modeling that look at job positions and requirements in an organization and then systematically look at where the gaps are. In this gap analysis, the HR team may conduct assessments to quantify the skill level and knowledge and abilities of the talent. The goal is to determine the proficiency of the individuals with the skills and if the skill is readily available. Beyond testing, the HR team must take an inventory of the required and available skills to perform the tasks needed to accomplish the organizational mission. Sometimes these are technical skills; at other times they are soft skills. In some highly technical jobs in the United States, the skills inventory exists within an aging population. A workforce demographic analysis looks at the region and the available talent pool from which to draw the needed skills. This could include the number of people with college or technical education, years of experience, age of the workforce, and other statistics that can enable HR professionals to plan and understand how a talent pipeline is influenced by the available population.
The Bureau of Labor Statistics has a website at www.bls.gov that consolidates and presents workforce data that can be used in this kind of analysis.
Establishing Metrics HR professionals must cobelow2.1 provides some categories of human capital metrics to follow. TABLE: Human capital metrics
TABLE Human capital metrics
Methods to Assess Staffing Effectiveness
The figure below shows how to calculate a basic cost per hire. By determining how much a company commits in resources to hiring each employee and examining the turnover ratios, HR professionals can determine how effective their recruiting efforts are. The goal should be to bring on board the best talent in the shortest time possible for the lowest cost, while keeping new hires in the company productive beyond the time to recoup the initial investment. FIGURE: Cost-per-hire calculations Another important metric is selection ratios. A quality hire comes from having a good pool of qualified candidates and finding the best fit from among those best qualified. HR should know how to track, using either a manual process or an automated applicant tracking system, the number of applicants, the number of minimum qualified applicants, and how many are interviewed to obtain a candidate to present an offer to. This process should also determine the numbers of minority applicants and women to ensure equal opportunity hiring practices and correlation to an affirmative action plan. Companies must be aware to prevent adverse impact in hiring because of internal practices that may have biases. Transition Techniques Knowledge of corporate restructuring, mergers and acquisitions (M&A), due diligence processes, offshoring, and divestitures is required for HR professionals. As a company expands or changes, the HR team must be aware of these transition techniques and how to employ them to achieve certain objectives.
Corporate Restructuring and Mergers and Acquisitions Companies change through the process of restructuring and by joining or acquiring a separate business to form one organization. As part of corporate restructuring, some positions may be added or eliminated based on new job requirements. HR professionals must know how a restructured company might need new training for its employees or need to hire new talent that possesses skills and knowledge that is not available internally. When a company merges with or acquires another company, HR must examine each company and the workforce to see where duties and jobs overlap that can be consolidated. They also find gaps to hire individuals that fill new roles needed for the new structure. Real World Situation: Acquiring Automotive Body Repair Shops A collision repair company that was expanding its operations into new markets had as part of the strategy the ability to acquire smaller shops that did not have the financial ability or business relationships to compete in the market in the long term. When a suitable prospective company was examined, the HR team needed to assess the behavioral and technical capabilities of the current employees and make recommendations on whether they had the prerequisite knowledge, skills, and abilities to keep pace with the larger company or could be trained to meet the standards in a relatively short time. While the goal of a company should be to retain as much personnel as possible from a merger and acquisition, HR must understand the business needs and focus on keeping talent that meets those needs. Due Diligence Processes An important part of a transition is the process of due diligence. HR determines any liabilities, including compensation and benefits, that may impact payroll. These processes seek to identify and reduce the risks associated with changing the talent structure of the company. Items to consider may include reviewing employee files, documentation, and employment contracts or union agreements. Transparency and communication during a due diligence review will identify any issues early in the process and mitigate any negative consequences to items that are discovered to be of concern. Offshoring and Divestitures In some instances, the company may decide it is necessary to offshore certain job functions, relocating the function to elements of the company located outside the parent company’s host nation. Different laws and regulations in each country can provide a competitive business advantage to the company. In a similar manner, the company may decide to remove part of its structure through divestiture of a portion of the organization that may no longer be profitable or is not a core business competency. As these two transition techniques often result in a reduction of force and loss of jobs internal to the organization, HR professionals must be prepared with all necessary compliance and actions taken with the transition of talent from the company. Exam Tips: Know the various recruiting strategies available to HR. An organization can use several methods to find and hire the right people to achieve the company’s mission. You should understand the different means and the pros and cons they present. Especially important is to review the costs associated with each recruiting option because that may have a direct impact on business decisions as to what methods are available to a particular organization. Also important is to know the timelines associated with each choice because some recruiting options can take time to mature and develop. Understand how to perform retention analysis. Human capital is expensive and should never be wasted. You should understand the direct correlation between employee turnover and lost opportunity or productivity costs. By performing analysis on the effectiveness of retention strategies of the company, you will be able to reduce turnover costs and keep a company performing at optimal levels.
Responsibilities
The PHR® exam reviews an HR professional’s understanding of the basic practices surrounding talent planning and employment. The key responsibilities cover the entire employment life cycle including recruiting, selection, retention, and separation of employees. The major tasks that an HR professional must accomplish are the planning and execution of the talent acquisition processes. Federal Laws and Organizational Policies A significant responsibility for HR professionals is the development and implementation of organizational HR policies and ensuring that they comply with laws and regulations governing talent acquisition. Through adherence to these rules, HR professionals can meet legal and ethical standards in hiring employees. They have influence with the decision-makers to help the company avoid practices that, though technically legal, may have a negative long-term impact on the corporate brand. Legal and Ethical Practices HR professionals should create practices in the hiring process to comply with Title VII, avoiding discrimination of protected classes. Developing standard interview questions, avoiding biases in screening questions or application forms, and reporting hiring results through annual submissions to the EEOC are examples of responsibilities that should be accomplished. It is not enough to avoid disparate treatment, but practices must be evaluated to determine if there is disparate impact, as such impact would be illegal. Additionally, to comply with the FLSA, each position in the company should be properly classified, have wages established, and not create unfair labor practices. Compliance It is essential that recruiting practices comply with all applicable laws and regulations. Earlier I discussed the laws that an HR practitioner must be familiar with. However, knowing the law is only the first step. The proper procedures and tasks will help ensure that the organization remains compliant.
The table below outlines some practices that ensure compliance with existing rules. TABLE Recruiting practices
Nepotism The practice of hiring family members or close personal relations can create ethical issues within the company. It also has the potential to create morale problems with the current employees. It is extremely difficult to maintain accountability and independent judgment in situations where there is a perception of favoritism or undue influence. HR professionals should develop policies that eliminate nepotism practices in the organization.
Independent Contractors A critical issue in today’s business environment is the classification of the business relationship between the company and the worker. Independent contractors perform duties for the company, but the control of day-to-day activities of the worker is outside the scope of the company, and the permanency of the work relationship is temporary. Employees, on the other hand, have an expectation of ongoing work, and the company dictates their day-to-day activities with much more oversight and control. Misrepresenting employees as independent contractors could have serious legal and financial consequences, and a skilled HR professional should review the work relationships of all employees and classify them appropriately.
Note: Recent legal cases have looked at the differentiation between independent contractors and employees as it relates to workers who may be full-time temporary staff provided by an agency. In those situations, if the company has a great deal of control over the employee, such as hours, duties, and other direct working conditions, the company and the temp agency have joint employer responsibilities, and both are required to follow the wage and hour laws with respect to employee classification. Generally, the company pays the temp agency an administrative cost for each worker, and the agency is responsible for paying the employee and handling all employer and payroll taxes. The W-2 generated for taxes would come from the temp agency and not the company. Sourcing Methods and Techniques Finding talent is a primary responsibility of HR professionals. Ensuring that the company has the right person, with the right skills, at the right time is an essential duty. There are a variety of methods to source this talent, and each has advantages and disadvantages. The end state should be a diverse talent pool that meets the goals and objectives of the company. Employee Referrals Employee referral is the process of using current employees to solicit qualified individuals to apply for open positions; a company may offer a financial incentive or other reward if the applicant is hired and performs the desired duties as required. HR professionals will set up procedures for employees to nominate candidates and facilitate processing their applications. To be effective with employee referrals, a company must have a strong, positive company climate. Employees must have a desire to share their work experiences and invite friends and acquaintances to join them in the workforce. The strongest motivation for recruiting is engaged employees. Real World Situation: Increasing Social Media Use in Recruiting A company was attempting to increase the talent pool from which applicants for jobs were coming. The HR team began to redesign job postings and place them on social media websites. This approach reached a different audience that may not have accessed the more traditional venues previously used for posting jobs and might not otherwise have known of hiring opportunities. It also included more applicants from out of the region willing to relocate for jobs with the company. As a result, a more diverse, skilled workforce could be recruited and hired. The company increased the total number of applicants and improved the overall quality of the applicants. Talent Acquisition Life Cycle The talent acquisition life cycle covers the period of time from initial contact with a prospect through their interview and assessment and concludes with a negotiated offer. The HR professional may not be part of the recruiting aspect of the process because this can also be done by third-party vendors that specialize in finding talent. Usually, the initial contact beyond the recruitment is the selection process beginning with interviews.
Here are some considerations for choosing an interview process: - Initial screenings for qualifications can be done by HR, but more in-depth assessments should include the hiring manager or supervisor of this position. - There may be multiple interviews including telephonic, in-person, and practical or technical interviews that evaluate skills such as in a trade. - Internet-based televideo interviews can be used but should not be given any less or more weight than other forms to avoid bias.
When the interviews are being conducted, the HR professional should maintain records of all interview notes and evaluations in the process to comply with equal opportunity guidelines. When a candidate is identified for hire, the HR professional should ensure that the company has a process to conduct a background check and perform due diligence to verify the bona fides of the candidate’s application and/or résumé. As a best practice, this process must be conducted before the company extends an offer for employment. Finally, the HR professional prepares an offer and works with the hiring manager, supervisor, or other decision-maker to handle any counteroffers or negotiations in the process to get an acceptance and agreement of employment terms and conditions. Usually, an HR professional who has excellent communication skills will facilitate this process in a timely and professional manner.
Figure below shows a graphic representation of this life-cycle process. FIGURE : The talent acquisition life cycle Exam tips Understand the talent acquisition life cycle. Know how the entire process a company undergoes to convert individuals from an eligible talent pool into employees. This includes the recruiting process, the interviews of qualified candidates, job offers, due diligence through background checks, and finally the negotiation processes that end with an acceptance of an offer of employment. Know tools and techniques for recruiting and hiring software. - Applicant tracking systems HR should know how applicants access an ATS, the information usually provided, certain features such as résumé scanning or autofill that an ATS may feature, the methods of qualifying and referring candidates to the hiring manager, and any notification features. - Background screening HR should know the types of background checks available, which include credit history; driver records; names and aliases; address verification; federal, state, and local criminal records checks; and sex offender registry. They should also know how to obtain and record consent for checks and maintain the results to include any rebuttals from the applicants if there is negative information revealed in a background screening.
Finding the right people at the right time and with the right knowledge, skills, and attributes is an ongoing challenge for any organization looking to maximize its human capital potential. Proper talent planning is an essential skill that HR professionals must possess. The added complexity of understanding the legal parameters to hire a diverse workgroup free from bias and prejudice is equally challenging. Companies may have the intent not to discriminate, but in practice, historical patterns and practices can get in the way. HR professionals must be sensitive to a company’s culture while still helping them overcome outdated practices. By using effective tools and resources, along with external partners, HR teams can become very effective in delivering the necessary workforce that meets the needs of the company to perform its mission. Tip: Look at a company’s website and their careers or employment page. Review the job application process and recall the steps to hire that you went through to get your current position. Review any checklists or onboarding packets that new employees are required to complete during the hiring process. Pay close attention to the mandatory disclosure statements about equal opportunity or other antidiscrimination hiring practices and policies.
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