Report
Finding
and recruiting the right people is critical to the success of any business and
is the key to sustained growth and retaining a competitive edge.
Recruiting
staff is a very costly exercise. Cost is a major reason why effective
recruitment and selection is important. There are many ways in which poor
recruitment practices can result in financial losses. For example, if a
candidate's competency is not accurately assessed, he may make mistakes that
can hinder productivity. If he needs to be retrained or replaced, this takes up
more company time that could otherwise be invested toward remaining
competitive. When organisations choose the right people for the job, train them
well and treat them appropriately, these people not only produce good results
but also tend to stay with the organisation longer. In such circumstances, the
organisation's initial and ongoing investment in them is well rewarded. An
organisation may have all of the latest technology and the best physical
resources, but if it does not have the right people it will struggle to achieve
the results it requires. This is true across the whole spectrum of business
activity e.g. schools, hospitals, legal practices, restaurants, airlines, and
diesel engine manufacturers.
Cummins is well aware of the
importance of 'getting it right'. Poor choices at the recruitment stage can
prove expensive. The company needs to be sure of a candidate's technical
competence. For example, if an engineer designs a component that fails and has
to be re-engineered, the company loses both time and money and may incur
penalty charges on any delay in fulfilling particular contracts. Time and money
spent in recruiting that particular employee will have proved expensive and
wasteful whilst a better candidate may not only have 'got away' but also gone
to a competitor. Cummins was recently first to market with a complete range of
engines that met new stringent environmental legislation. Their technical solution
to meeting this legislation was completely different to the competitor's
approach. Had it turned out to be ineffective or not to be approved by
government authorities, it could have led to the downfall of the company. The
responsibility of making the correct decision was shared by relatively few
individuals.
In addition to
technical competence and appropriate experience, an organisation needs to be
sure that it can rely on candidates' goodwill, loyalty and commitment towards
the organisation and its aims. Loyalty and
productivity are linked. Employees who feel
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