The Functions of a Business

1. The Functions of a Business Human Resources Department Chapter 6

2. Human Resources Department • Responsible for coordinating all activities involving the company’s employees • Studies the local labour market to discover where new employees will come from • Decides when a new employee is required • Determines what skills employees need for each job

3. Duties of HR Department (continued) • Searches for applicants, conducts interviews selects best candidates • Sets up training programs • Administers payroll • Creates programs to support employees • Handles employees leaving the company – exit interviews

4. Definitions: Labour Market • where employers (the buyers of skills) meet employees (the seller of skills) • Employers look at what skills are available, what education and training are provided and what the current economic conditions are. • Employees look at where potential employers are located, what skills are in demand and what rate is being paid for each type of work.

5. Definitions (con’t) Occupational Forecasts • Predictions about what jobs might be popular or needed in the future • Based on issues such as: aging populations, new technologies, current economic conditions and changes in hiring practices Unskilled labour • Jobs needing minimal training or have few educational requirements

6. Definitions (con’t) Employee Turnover • The rate at which employees leave a firm voluntarily either for another job or to retire • Employers try to forecast their firm’s employee turnover given past experiences and industry standards • Helps HR managers predict how many employees will need to be hired in a given year

7. Example HR Process: • Imagine a local computer company with a staff of 20 people. • The business grows rapidly, and it soon needs someone to head its new industrial sales division. • One of its programmers knows the needs of the industrial market well , and the company promotes her to head this division. • But the new sales division also needs sales people. • No other employees can be moved from their current jobs without creating problems so the company decides to hire from outside.

8. Where do HR Managers Look for a New Employee? • Advertise in newspapers, journals, magazines • Recruit on university or college campuses • Post job on Job Bank at the federal government’s employment centre • Post job on an online recruiting site like workopolis • Post on company website • Use high-school or university co-op programs • Hire an employee search firm or headhunter • Use an employee referral program • Search HR file of previous job applicants

9. Application Process Hopeful applicants submit: • Cover letter • Resume listing education, experience, interests, goals, abilities • Completed application form (depends on job) • List of references – usually three

10. Interview Process • Often 5-10% of applicants can be interviewed, but at times only 2-3 of the top applicants are called for an interview • Applicant often meets with a team of people from the firm representing the HR Department, the specific department of the firm where the job is needed and/or someone from the Executive team • Applicants are rated by each member of the interviewing team. • Often second or third interviews are conducted. Firms hiring more than one person have also been known to conduct group interviews or situational interviews • Final step is to conduct a reference check with the selected applicant to verify the applicant’s information and ask further questions about job performance and personality type.

11. On the Job Orientation • New employees meet other employees • Tour the workplace • Introduces business’ policies – work hours, dress code, rules of behaviour, health and safety, etc. • Training on equipment or technology to be used

12. Perks • Some companies try to hold onto employees by offering benefits of working at their company • Examples: Daycare services, fitness programs, food services, reading rooms, training programs, health and dental benefits, company car, trips, etc.

13. Departures • Some people leave their jobs voluntarily based on personal, family or professional needs. Exit Interview: • Employers discuss future goals with employee to ensure leaving the business is the best way to accomplish goals. Also ask for feedback about how work environment can be improved. • May offer letters of recommendation or agree to act as a future reference.

14. Dismissals • Some people leave a job involuntarily • If people are not fulfilling their duties as required, employers can fire an employee. Corrective Interview • Employer discusses the problems with the employee’s performance and makes plans for improvement. • If not completed by a set period of time, the employee is fired.

15. Employee Layoff • Companies with a unionized environment usually lay off workers in order of seniority. The most recently hired are let go first. • Non-unionized companies let go those who are least essential to the operations of the company. Severance Packages • A final payment given to the employee when laid off. • Equal to the amount of time the employee has worked for the company, such as 1 week for every year of service.

16. Retirement • Often employees leave a company after a certain age – typically 65 years old • Some companies offer a pension plan – during an employee’s working time, both the employee and employer pay into a plan that allows a worker to receive an income after retiring from the company.