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3.1 In-house

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The most qualified applicant for a position may well be a person you already have on staff. Most companies have procedures established for hiring from within. The reasons for this are many:

• The morale of employees improves when they may be considered for internal promotions or new opportunities.

• Management can identify those employees who are interested in career advancement.

• Management already knows the job history and capability of internal job candidates.

• Less time is needed for employee orientation and training.

• Turnover is reduced, as employees look for career progression within their company.

• The company is able to make better use of its human resources.

There are also disadvantages created by hiring from within.

• The number of potential job candidates is limited to qualified personnel in the company.

• It limits the introduction of new blood, which sometimes results in internal stagnation.

• Internal recruitment produces a “ripple effect” in terms of hiring. As one person leaves a position to take another, a new vacancy is created. This effect continues down to the lowest-level jobs, which must then be filled through other means.

It is important for a company considering an internal job-posting system to establish a formal process for using the system and to communicate that process to all employees. Most commonly, when there is a job opening, all employees are notified of the position and given specific information on the job title, salary, department, supervisor’s name and title, responsibilities of the job, qualifications, and skills required. The posting remains displayed in a prominent place for a specified number of days. The supervisor or manager doing the hiring reviews internal applications before going outside the company. Generally, employees are required to notify their current supervisor or manager when applying for an internal position.

Even if you have an internal process for posting available jobs, there may be times when you decide not to follow this process. For instance, a position may have been created especially for a particular employee, or a job can be best filled through a predetermined and logical career path. Keep in mind, though, that straying from this process can create ill will, and employees will wonder why you are not following the process that has been communicated.

The most important consideration when using a job-posting system is to be fair and consistent. Morale will be reduced dramatically if employees begin to feel that the system is administered in a biased or inconsistent manner.

Employee Management for Small Business

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