The HRM and EmployeeRetention Rate
INTERNAL RECRUITINGEFFORTS:
Promotion from withinconcept – current employees are able to bid for jobs which are identifiedthrough HRM systems or referral by fellow employees; eg UPD, McDonalds usethese policies to develop candidates for promotion; 40% of the top 50executives in McDonalds started out in restaurants Thepromote-from-within-where-ever-possible policy has these advantages:
– Promotes good publicrelations
– Builds morale
– Encouragesindividuals who are qualified and ambitious
– Improves theprobability of good selection, because information on the individual’sperformance is readily available
– Is less costly thangoing outside to recruit
– Helps withrecruiting entry level workers
– Reduces orientationand training costs
– When carefullyplanned can also act as a training device for developing middle and to-levelmanagers
The PrincipalFinancial Group, one of Fortune magazine’s “100 Best Companies to WorkFor,” gets at least 40% of new hires by employee referral Wegmans, aregional grocery chain that is also on the “Best” list, reports thatone in five of their employees are related to another Wegman’s employee Manyof these organizations include a reward if an employee referral candidate ishired for a position which is hard-to-fill Referral bonuses a $10,000 or moreare not unusual in these fields Employee referrals are an excellent means oflocating potential employees for hard-to-fill positions Both organization andemployee benefit Higher-level positions, however, are more likely to bereferred by professional acquaintance rather than a close friend
Discuss: How does HRMimplement employee retention?