MODULE 4: RECRUITING, SELECTING, AND The Recruitment Funnel

TRAINING EMPLOYEES
THE RECRUITMENT PROCESS
What is recruitment?
Recruitment is defined as a process that
provides the organization with the pool of
qualified candidates from which to choose.
It involves identifying and working to attract
individuals interested and capable of filling
identified organizational roles. Applicant Quantity and Quality
Why is recruitment important? Quantity: Generating a sufficient number of
Hiring the wrong person for a job can be applicants during the first stage of the
costly to organizations. Therefore, highly recruitment process
talented and motivated employees offers a Quality: It relates to applicants having the
competitive advantage which is a firm’s ability to requisite skills needed as well as representing a
add value to the company through its assets diverse pool of applicants.
(one being its human resources); and is able to
lower its costs. Realistic Job Previews

When poorly hired employees with the wrong An important consideration is to attract
skills and/or experience success for companies individuals to the job and organization while also
is at risk. being realistic enough that once they begin the
job, they will not be disappointed and quit.
THE TRUE COST OF BAD HIRE
One way in which organizations and
The cost of a bad hire extends well beyond researchers address these concerns is the
the person’s salary, including: realistic job preview (RJP), which offers
1. Recruitment advertising costs and fees potential applicants a realistic, and sometimes
(and cost for hiring again) unappealing, view of the actual job.
2. Training and onboarding costs Internal and External Sources of Applicants
3. Unhappy customers and lost business
4. Impact on team morale and Internal Recruitment
performance It is the process of looking inside the
5. Weakened employment brand organization for existing qualified employees
6. Loss of time and momentum who might be promoted to higher – level
7. Opportunity cost and lost productivity positions.
Stages of Recruitment If an organization can fill higher – level openings
• The stages of recruitment move through with current employees who are ready to move
a recruitment funnel in which the number up, it will have to fill lower-level positions from
of participants gets smaller the further the outside later
down the funnel the applicant goes. Job Posting – it is a mechanism for internal
There are three fundamental stages of recruiting in which vacancies in the organization
recruitment: are publicized through various media such as
company newsletters, bulletin boards, internal
1. Identify and generate applicants memos, and the firm’s intranet.
2. Maintain applicant interest and
participation as they continue through the Supervisory Recommendation -using
assessment process. During recruitment, supervisory recommendations, a mechanism
the organization is trying both to assess for internal recruiting, a manager solicits
and to attract the best job applicants. nominations or recommendations for a position
3. Influence job choice so that desired that needs to be filed from supervisors in the
applicants are willing to accept offers organization.
made to them. External Recruitment
It is the process of looking to sources outside
the organization for prospective employees
Somewhat different methods are likely to be Disadvantages
used by an organization engaged in external
• May hurt motivation
recruiting because the organization needs to
• Costs more
reach potential applicants from outside the
company. Parts of a Job Advertisement
Word-of-Mouth Recruiting -the organization 1. Company Information (name of the
simply informs current employees that positions company, logo, and address)
are available and encourages them to refer 2. Job Title
friends, family members, or neighbors for those 3. Summary of Job Responsibilities
jobs. 4. Qualification (education, number of years
Advertisement -advertisements on websites of experience, skills and abilities needed)
and in newspapers and related publications are 5. Company Benefits
also popular methods for external recruiting. 6. Application Instruction
7. List of Requirement Needed
Employment Agencies -Private Employment 8. Contact Person
Agencies – are more likely to serve the white-
collar labor market (although some serve Factors Affecting Job Attractive
specialized niches such as office workers), and Many factors influence an individual’s job
they charge a fee for their services. choice as they weigh a number of pros and
In a public employment agency, all potential cons associated with a given job.
employee job applicants are currently Examples of features are given below:
unemployed, but many employed individuals
use the services of private employment Unattractive Features
agencies in an effort to find other work while 1. Fit with Organization
maintaining their current jobs. 2. Organizational Image
An individual working for an executive search 3. Comparison with other Alternatives
firm is also known as a headhunter (a Attractive Features
headhunter is an individual working for an
executive search firm who seeks out qualified 1. Treatment During Recruitment
individuals for higher-level positions.) 2. Pay and Benefits
3. Location
College Placement Offices -most large 4. Job Characteristics/Work
organizations visit college campuses every year
to interview graduates for jobs within the THE SELECTION PROCESS
organization What is selection?
Digital Recruiting -usage of online job boards, Selection is concerned with identifying the best
social media, and internet communication tool. candidate or candidates for a job from among
Internship -research shows that organizations the pool of qualified applicants developed during
that want to hire interns tend to be more open to the recruiting process
their creativity, which helps to attract interns who Steps in the Selection Process
are interested in full-time jobs after graduation.
1. The recruiting process
Internal vs External Recruitment 2. Gather information about pool of qualified
Internal Recruiting applicants
3. Evaluate qualifications of each applicant
Advantages 4. Make decisions about employment offers
• Increases motivation BASIC SELECTION CRITERIA
• Sustains knowledge
Education and Experience
Disadvantages
Education -refers to the formal classroom
• May foster stagnation training an individual has received in public or
• May cause a ripple effect private school and in a college, university, or
technical school
External Recruiting
Experience -the amount of time the individual
Advantages
may have spent working in either a general
• Brings in new ideas capacity or particular field
• Avoids the ripple effect
Skills and Abilities -the assessment of skills
and abilities, on the other hand, is rather mixed
in terms of objectivity.
Personal Characteristics background checks, identity verification,
and education and credential checks.
Some personal characteristics, which are
believed to reflect the applicant’s personality, Employment Test
are also difficult to assess objectively
• A device for measuring the
More recently, however, a great deal of attention characteristics of an individual such as
has been paid to assessing applicants in terms personality, intelligence, and aptitude.
of the big five personality traits • Types:
o Cognitive ability tests
Hiring for Fit -a rather unique and interesting
o Psychomotor ability test
criterion for selection is refereed to as “fit”.
o Personality tests
When a firm decides to hire someone on the
▪ Self-inventory test
basis of fit, it hires that person not because he
▪ Projective technique
or she is the most qualified for a specific job, but
o Integrity tests
because she or he is a good fit for the larger
organization. Work Simulations
The Big Five Personality Traits • It require an applicant to perform tasks or
1. Openness to Experience -appreciation job-related activities that simulate or
for art; new ideas, variety of experiences represent the actual work for which the
person is being considered.
imagination and curiosity
2. Conscientiousness -tendency towards • It is sometimes referred as work
self-discipline and striving for samples.
achievement against measures or Personal Interviews
outside expectations.
3. Extraversion -gain energy from external • Although tests are popular, the most
situations and means, enjoy a breadth of widely used selection technique in most
activities and assert their viewpoints organizations is the employment
4. Agreeableness -value social harmony interview
and getting along with others, optimistic, • Types:
kind and generous towards others o Structured: The interviewer
5. Neuroticism -tendency to experience works from a list of standard
negative emotions, such as anger, questions that are presented to
anxiety, or depressions. Low tolerance of every candidate; by every
stress interviewer.
o Unstructured: It involves
POPULAR SELECTION TECHNIQUES relatively little advance
Application Form preparation. The interviewer may
have a general idea about what
• A first step in most selection systems is she or he wants to learn about the
to ask applicants to complete an job applicant but has few or no
employment application or an application advance questions that are
blank. formally constructed.
o Weighted application blank: o Semi-structured: Major or key
relies on statistical techniques to questions are decided in advance
determine the relative importance and provided for each interviewer,
of various personal factors for but the interviewer is also given
predicting a person’s ability to the prerogative to ask follow-up
perform a job effectively. questions to probe the
o Biodata application blank: interviewee’s specific answers.
focuses on the same type of o Situational: Asks the applicant
information found in a regular questions about a specific
application, but it also goes into situation to see how he or she
more complex and detailed would react.
assessments about that
background INTERVIEW ERRORS

Background Checking First-Impression Errors -occur when an

interviewer makes a decision too early in the
• A background check is a legal interview process.
investigation or verification into a
potential employee’s history. Background Contrast Errors -occur when the interviewer is
screening often involves criminal unduly influenced by other people who have
been interviewed
Similarity Errors -occur when the interviewer is Criterion-related validity refers to the extent to
unduly influenced by the fact that the which a particular selection technique can
interviewee is similar to the interviewer in one or accurately predict one or more elements of
more important ways. performance
Nonrelevancy -occurs when an interviewer is Making the Offer
influenced by information that is not relevant to
• The last step in the selection process is
an individual’s ability to perform the job
to offer a position to the chosen
Interviewer’s Knowledge of the Job – a final candidate.
type of error that is common in interview • The development of an offer via e-mail or
situations has to do with the interviewer’s letter is a formal part of the process and
knowledge of the job. requires careful articulation of all
elements and conditions of the offer.
OTHER SELECTION TECHNIQUES
• Compensation and benefits will be
References and Recommendations: The job defined in an offer, as will any unique
applicant is usually asked to provide either legal considerations.
letters of recommendation or the names and • The job offer may be negotiable,
addresses of individuals who may be contacted depending on the position.
to write such letters.
THE TRAINING PROCESS
Assessment Centers: An assessment center
is not physical location but is instead an What is training and development
approach to selecting mangers based on Training and development refers to educational
measuring and evaluating their ability to perform activities within a company created to enhance
work behaviors. the knowledge and skills of employees while
Medical Examination providing information and instruction on how to
better perform specific tasks.
• Candidate who have cross the above
stages are sent for a physical and Training -it is a planned attempt by an
medical examination. organization to facilitate employee learning of
job-related knowledge, skills, and behaviors
• Reasons:
o Physical fitness for the job Development -refers to teaching managers and
concerned; professionals the skills needed for both present
o To protect the business and and future jobs.
employees from infectious
disease; and Why is training and development important?
o To check excessive expenditure • Helps employees develop new skills and
on the treatment of employee. increases their knowledge
Selection Errors • Improves efficiency and productivity of
individuals and teams
Two basic types of selection errors can be • Creates new and improved job positions
made: false positives (are applicants who are • Keeps employees motivated and
predicted to be successful and are hired but who enhance contribution levels
ultimately fail) and false negatives (are
applicants who are predicted to fail and are not The ADDIE Model Explained
hired, but if they had been hired would have 1. Analysis -analyze your situation to
been successful) understand the gaps you need to fill
Ensuring the Quality of Selection Measures: 2. Design -based on your analysis, make
Reliability and Validity informed decisions to design the best
possible learning experience.
Reliability is how consistent or dependable 3. Development -bring your learning
selection procedures are in measuring experience to life by building you end-
something, such as a skill or ability. product
Validity is the accuracy of a measure and the 4. Implementation -distribute your learning
degree to which it measures what it is supposed end-product to your audience
to measure 5. Evaluation -evaluate if your learning
end-product is effective. Make any
Test validity means that scores on a test are necessary updates and cycle back to the
related to performance on a job. Analysis phase.
 FIGURE: • Before the actual training, send
announcements far in advance, provide
directions, provide a contact, and make
sure participants have pretraining
materials.
• During training, make sure all
participants have a point of contact in
case they have questions or need
guidance.
• After training, remember training does
not end when the program ends. Instead,
periodically ascertain that trainees are
transferring their learning to the job.
TRAINING IMPLEMENTATION TECHNIQUES
ANALYZING TRANING NEEDS On-the-Job -it means having a person learn a
job by actually doing it.
In determining the needs for training, HR
professional should consider the following • Coaching/Understudy method -an
factors. These factors affect what type of experienced worker or the trainee’s
training, topics, and approach to use. supervisor trains the employee.
• Job rotation -an employee (usually a
The Three Phases of a Training Needs
management trainee) moves from job to
Assessment
job at planned intervals.
1. Organizational Analysis • Special assignments -similarly give
• Goals, strategies, objectives, lower-level executives firsthand
culture experience in working on actual
• Resources problems.
• External environment Apprenticeship Training -a process by which
2. Job Analysis
people become skilled workers, usually through
• KSAOs and tasks of the focal job a combination of formal learning and long-term
• Competencies on-the-job training.
• Critical incidents employee face
on the job Informal Learning -training experts use the
3. Person Analysis notation “70/20/10” to show that as a rule, 70%
• Assess current KSAOs and of job learning occurs informally on or off the job,
competencies of employees 20% reflects social interactions (for instance,
• Develop training goals among employees on the job), and only 10% is
• Consider employee actual formal training.
characteristics (e.g., Job Instruction Training -many jobs consist of
demographics, motivation, a sequence of steps best learned step-by-step.
education Such step-by-step training is called job
DESIGNING THE TRAINING PROGRAM instruction training (JIT)
Lecture -lecturing is a quick and simple way to
• Design means planning the overall
present knowledge to large groups of trainees.
training program including training
objectives, delivery methods, and Programmed Learning -a systematic method
program evaluation. for teaching job skills, involving presenting
• Substeps include setting performance questions or facts, allowing the person to
objectives, creating a detailed training respond, and giving the learner immediate
outline (all training program steps from feedback on the accuracy of his or her answers.
start to finish), choosing a program
delivery method (such as lectures or Behavior Modelling -behavior modeling
Web), and verifying the overall program involves (1) showing trainees the right (or
“model”) way of doing something, (2) letting
design with management.
trainees practice that way, an then (3) giving
IMPLEMENT THE TRAINING PROGRAM feedback on the trainees’ performance.
• Implement means actually provide the Audiovisual based Learning -although
training, using one or more of the increasingly replaced by Web-based methods,
instructional methods. audiovisual-based training techniques like
DVDs, films, PowerPoint, and audiotapes are
still used.
Vestibule Training -with vestibule training, EVALUATING TRAINING PROGRAMS
trainees learn on the actual or simulated
KirkPatrick’s Training Evaluation Model
equipment but are trained off the job (perhaps in
a separate room or vestibule)
Electronic performance support systems -
EPSS are computerized tools and displays that
automate training, documentation, and phone
support.
Videoconferencing -involves delivering
programs over broadband lines, the Internet, or EMPLOYEE COMPENSATION AND
satellite. BENEFITS
Computer-based training -uses interactive COMPENSATION
computer-based systems to increase
knowledge or skills Compensation is the total of all rewards
provided employees in return for their work.
• Simulated learning and gaming/Virtual
The overall purpose of compensation is to
reality
attract, retain, and motivate employees.
Online/Internet based learning
Purposes of compensation:
• Learning portals
• Provide appropriate and equitable
• Virtual classrooms
rewards to employees;
• Mobile and microlearning
• Help employees focus on activities that
Off-the-Job Training -refers to training that the organization considers important;
takes place outside of the employee’s regular and
work environment. • Increase employee efforts along desired
lines
• Case study method
• Management games INTERNAL VS EXTERNAL EQUITY
• Outside seminars
Internal Equity: It refers to comparison made
• University-related programs
by employees to other employees within the
• Role playing same organization
• Corporate universities
• Executive coaches External Equity: It refers to comparison made
by employees by different organizations
MANAGEMENT DEVELOPMENT performing similar jobs.
Management development is any attempt to PAY SURVEYS
improve managerial performance by
imparting knowledge, changing attitudes, or How does an employer learn about the
increasing skills. compensation rates of other firms?

ORGANIZATIONAL DEVELOPMENT (OD) Pay Surveys: these are surveys of

compensation paid to employees by other
It is a system-wide effort, managed from the top employers in a particular geographic area,
of the organization, to increase the industry, or occupational group.
organization’s overall performance through
planned interventions WAGES VS. SALARY

OD Techniques: Wages -refer to money paid on a hourly, daily or

a weekly basis
• Survey feedback -employees will
respond to questionnaires • Calculated using the number of hours
• Third-party peacemaking -here a worked
neutral third party, often an OD • If a wage-earner does not work, he won’t
consultant from outside the organization. receive payment for that day
• Process consultation -the consultant • Usually earned by unskilled or semi-
then provides feedback and skilled workers
recommendations to the mangers about • Usually have lower positions & fewer
how to improve these procedures. responsibilities.

Organizational learning -the process by which Salary -refers to a fixed, regular payment
an organization “learns” from past mistakes and typically paid on a monthly basis
adapts to its environment.
 • Not calculated using the number of hours Direct Financial Compensation (core
worked. compensation) consists of the pay that a person
• Workers have a number of paid leaves receives in the form of wages, salaries,
• Earned by office workers or management commissions, and bonuses.
• Usually have higher positions, & more Indirect Financial Compensation (employee
responsibilities benefits) consists of all financial rewards that
COMPENSATION are not included in direct financial
compensation. This form of compensation
Financial includes a wide variety of rewards normally
Direct received indirectly by the employee such as
paid vacation
• Wages
Nonfinancial Compensation consists of the
• Salary
satisfaction that a person receives from the job
• Commissions
itself or from the psychological or physical
• Bonuses
environment in which the person works.
Indirect (Benefits) Although our focus will not be on nonfinancial
compensation, it is worth giving brief
Legally Required Benefits
consideration through an illustration to better
• Social Security describe the total compensation
• Unemployment Compensation COMPONENTS OF DIRECT FINANCIAL
• Worker’s Compensation COMPENSATION
• Family & Medical Leave
Employee Base Pay: The monetary
Discretionary Benefits compensation employees earn on a regular
basis for performing their jobs. Hourly pay and
• Paid Time Off
salary are the main forms of base pay.
• Health Care
• Life Insurance • Hourly Pay: Employees earn hourly pay
• Retirement Plans for each hour worked.
• Employee Stock Option Plans • Salary: Employees earn salaries for
• Employee Services performing their, jobs regardless of the
• Premium Pay actual number of hours worked.
Companies generally measure salary on
Non-financial an annual basis.
The Job
Cost-of-Living Adjustment: It represents
• Meaningful periodic base pay increases that are founded on
• Appreciated changes in prices as recorded by the consumer
• Satisfying price index (CPI)
• Learning Seniority Pay: Pay program in which pay
• Enjoyable increases are based on length of service.
• Challenging
Performance-Based Pay: Performance-based
Job Environment pay is governed by how well one performs the
job. The objective of performance-based pay is
• Sound Policies
to improve productivity by rewarding those who
• Capable Managers best assist in achieving this goal.
• Competent Employees
• Congenial Coworkers • Merit Pay: Pay increase added to
• Appropriate Status Symbol employees’ based on their level of
• Working Conditions performance.
• Merit Bonus: One-time annual financial
Workplace Flexibility award, based on productivity
• Flextime • Spot Bonuses: Relatively small
• Compressed Workweek monetary gifts provided to employees for
• Job Sharing outstanding work or effort during a
• Telecommuting reasonably short period of time.
• Incentive Pay: Compensation, other
• Part-time Work
than base wages or salaries, that
fluctuates according to employees’
attainment of some standard)
e.g., a pre-established formula, individual or o Stock Compensation Plan:
group goals, or company earnings). Companywide incentive plans that
grant employees the right to
Kinds of Incentive Pay Plan Options
purchase shares of company
(Individual Incentive Plans)
stock.
• Piecework: Incentive pay plan in which o Deferred Compensation: An
employees are paid for each unit they agreement between an employee
produce. and a company to render
• Management Incentive Plan: Bonuses payments to an employee at a
to managers who meet or exceed future date.
objectives based on sales, profit, • Person-Focused Pay: Compensation
production, or other measure for their for developing the flexibility, knowledge,
division, department or unit. and skills to perform a number of jobs
• Behavioral Encouragement Plan: effectively.
Individual incentive pay plans that reward o Skill-based Pay: System that
employees for specific such behavioral compensates employees for their
accomplishments as good attendance. job-related skills and knowledge,
• Referral Plan: Individual incentive pay not for their titles.
plans for rewarding the referral of new o Competency-based Pay:
customers or recruiting successful job Compensation plan that rewards
applicants. employees for the capabilities
they attain.
Kinds of Incentive Pay Plan Options (Group
Incentive Plans) Determinants of Compensation Strategy

• Gain Sharing: Plans designed to bind 1. Overall organization strategy

employees to the firm’s productivity and 2. Ability to pay
provide an incentive payment based on 3. Ability to attract and retain employees
improved company performance. 4. Ability to bargain with the unions
• Scanlon Plan: Gain sharing plan that Pay Secrecy
provides a financial reward to employees
for savings in labor costs resulting from Pay secrecy is a workplace policy that prohibits
their suggestions. employees from talking about how much money
they make with co-workers and other people
Companywide Incentive Plans outside the company.
• Profit Sharing: Compensation plans • Many organizations have a policy of not
that result in the distribution of a disclosing pay-related information.
predetermined percentage of the firm’s o Information about pay system as
profits to employees well as individual pay received
o Current Plans: provide payment • Justification for pay secrecy
to employees in cash or stock as o To avoid any discontent that might
soon as profits have been result from employees’
determined. o Many employees, especially high
o Deferred Plans: involve placing achievers, feel very strongly that
company contributions in an their pay is nobody else’s
irrevocable trust, credited to business
individual employees’ accounts. • Drawbacks of pay secrecy
o Combination Plans: permit o Difficult for employees to
employees to receive payment of determine whether pay is related
part of their share of profits on a to performance and does not
current basis, while deferring eliminate pay comparisons
payment of part of their share. o May cause employees to over
• Employee Stock Plans: Equity estimate pay of their peers and
segments of equal value, which increase under estimate pay of their
with the number of stock shares held. supervisors
o Employee Stock Option Plan: o Can create feelings of
Plan in which a firm contributes dissatisfaction
stock shares to a trust, which then o Employees may become
allocates the stock to participating suspicious
employee accounts according to
employee earnings.
BUILDING JOB STRUCTURES USING JOB
EVALUATION
A job structure is an ordered set of jobs that
represents the job structure or hierarchy.
HR professionals use job evaluation
systematically to recognize differences in the
relative worth among a set of jobs and to
establish pay differentials accordingly.
JOB EVALUATION METHODS

Ranking Method
The ranking method is the simplest of the four
job evaluation methods. In the job evaluation
ranking method, the raters examine the
description of each job being evaluated and
arrange the jobs in order according to their value
to the company.
The procedure is essentially the same as the
ranking method for evaluating employee
Factor Comparison Method performance. The only difference is that you
evaluate jobs, not people.
The factor comparison method of job evaluation
assumes that there are five universal factors Classification Method
consisting of mental requirements, skills,
The classification method involves defining a
physical requirements, responsibilities, and
number of classes or grades to describe a group
working conditions; the evaluator makes
of jobs. In evaluating jobs by this method, the
decisions on these factors independently.
raters compare the job description with the class
• Mental requirements, which reflect description.
mental traits such as intelligence,
Class descriptions reflect the differences
reasoning, and imagination.
between groups of jobs at various difficulty
• Skills, which pertain to facility in
levels. The class description that most closely
muscular coordination and training in the
agrees with the job description determines the
interpretation of sensory impressions.
classification for that job.
• Physical requirements, which involve
sitting, standing, walking, lifting, and so Compensable Factors: Any factor used to
on. provide a basis for judging job value in a job
• Responsibilities, which cover areas evaluation scheme.
such as raw materials, money, records, 1. Experience
and supervision.
2. Education
• Working conditions, which reflect the 3. Working Conditions
environmental influences of noise,
4. Confidential Data
illumination, ventilation, hazards, and 5. Consequences of Errors
hours. 6. Complexity of Duties
Point Method 7. Responsibility
8. Mental and Physical Demands
In the point method, raters assign numerical
values to specific job factors, such as Competitive Compensation Policy
knowledge required, and the sum of these A compensation policy refers to choices that
values provides a quantitative assessment of compensation professionals make to promote
job’s relative worth. Historically, some variation competitive advantage.
of the point plan has been the most popular
option. Pay Level Compensation Policy
Market Lead Policies: Pay policy that
distinguishes companies from the competition
by compensating employees more highly than
most competitors. Leading the market denotes
market levels above the market pay line.
Market Match: Average pay that most POSSIBLE COMPONENTS OF GLOBAL
employers provide for a similar job in a particular EMPLOYEE COMPENSATION
area or industry.
Global Employee Compensation
Market Lag: Pay policy distinguishes
• Foreign Service and Hardship Premiums
companies from the competition by
compensating employees less than most • Relocation and Moving Allowances
competitors. Lagging the market indicates that • Housing and Utilities Allowances
market levels fall below the market pay line. • Cost-of-Living Adjustments
• Tax Equalization Payments
Pay Level Policy • Educational Allowance for Children
• Home Leave and Travel Allowances
TYPES OF EMPLOYEE BENEFITS
1. Legally Required Benefits
2. Discretionary Benefits
3. Voluntary Benefits
Legally Required Benefits
• Service Incentive Leave
• Maternity Leave
• Paternity Leave
• Paternal Leave for Solo Parent
• Leave for Victims of Violence Against
Women and Their Children
Pay Compression • Special Leave for Women
Pay compression (wage compression or salary • Thirteen-Month Pay
compression) occurs when employees with the • Separation Pay
same skills and experience are paid differently • Retirement Pay
• Employees’ Compensation Program
Pay Compression Causes
• PhilHealth Benefits
1. Market Rate Changes -new hires earn • Social Security Benefits
as much as existing employees due to • Pag-Ibig Benefits
rapid salary increases in high-demand
Premium Pay
jobs.
2. Internal Equity Adjustments – raises in 1. Overtime Pay
lower or mid-level jobs to ensure fairness 2. Holiday Pay
can lead to similar pay across these roles 3. Premium Pay
and higher-level positions 4. Night Shift Differential
3. Regulatory or Policy Changes -new
minimum wage laws can decrease the
pay gap between new and experienced Discretionary Benefits
workers 1. Protection Programs
4. Long Tenure of Employees – long-term o Health Maintenance
employees might end up with similar pay Organization: The health
as new hires due to smaller incremental maintenance organization or
raises over time HMO is a company that allows
Executive Compensation people to be insured to avail
medical services in exchange for
A company’s executive compensation program a fixed monthly or annual fee. It
is a critical factor in attracting and retaining the acts as the middleman between
best available talent. the client and healthcare
The five main components of executive providers such as hospitals,
clinics, laboratories, doctors,
compensation packages include:
therapist, etc.
1. Base Salary o HMO companies have a network
2. Bonuses and Performance-Based Pay of hospitals, laboratories, and
3. Stock Option Plans medical facilities with which they
4. Perquisites (perks), and have existing partnership. They
5. Severance Packages. also have a list of doctors,
specialists, and experts that are
signed up with them.
 o When a member gets sick, they • MediCard
are recommended to get medical • Lacson & Lacson
help within the network. Services • ValuCare
can be performed faster because • Medicareplus
the HMO companies and • Cocolife
healthcare providers may already • Avega
have existing process in admitting • Insular Health Care
members, determining the
• PhilCare
benefits and coverage, identifying
• MedAsia
medical experts who can best give
• HPPI
treatment, etc.
• AsianLife
Advantages of HMO • CareHealth Plus
• Health Maintenance, In. (HMI)
• HMO companies offer a variety of
• Good Health
healthcare solutions, including prepaid
cards, coverage for senior citizens, etc. • Caritas
• An HMO plan can cushion the impact of • Generali
not earning an income during sickness • Carewell Health Systems
• It can give peace of mind because it can • Life & Health HMP, Inc.
help relieve financial worry brought about • Pacific Cross Philippines
by being ill.
Disadvantages of HMO 2. Paid Time Off
• Most plans have limited annual benefit • In providing payment for time not
limit (ABL), and so people might still worked, employers
spend money to pay what remains of the o Vacation
bill. This can happen when one gets o Sick Pay and Paid Time Off
hospitalized for a long time, requires Banks
regular lab tests and treatment, or needs o Sabbaticals
to go through a very expensive Employee Services
procedure.
• Some plans may not cover certain • Child Care
diseases or medical procedures • Educational Assistance
• Some plans may also be a co-pay • Food Services and Subsidized
arrangement, where you’re asked to pay Cafeterias
portion of the bill • Scholarships for Dependents
• You’re limited to a network of healthcare • Relocation Benefits
providers. Some plans may not offer • Domestic Partner Benefits
reimbursement when you avail of
Workplace Flexibility and Worklife Balance
healthcare services outside of the
network. Effective work – life balance programs focus on
• Premiums can be quite expensive solving any personal issues that can detract
especially for people of advanced age or from an employee’s work.
with pre-existing conditions.
For employers, creating a balanced work-life
• Premiums are expected to go higher
environment can be a key strategic factor in
each time you renew
attracting and retaining the most talented
• People in poor health may have to pay
employees
more expensive premium, are not
allowed to renew their plan or are not Flexible Working Arrangements
approved to get a plan.
• Flextime: Practice of permitting
• You need to have Philhealth cover or else
employees to choose their own working
you’d have to pay the portion for
hours, within certain limitations
Philhealth membership.
• Compressed Workweek: Any
• The plan may be tied to employment, so
arrangement of work hours that permits
you may lose it when you resign or you
employees to fulfill their work obligation
retire from the job.
in fewer days than the typical five-day
List of Accredited HMOs workweek.
• Job Sharing: Two part-time people split
• PhilHealth
the duties of one job in some agreed-on
• Intellicare manner and are paid according to their
• Maxicare contributions
 • Telecommuting: Work arrangement Holiday Pay -refers to the payment of regular
whereby employees, called daily wage for any unworked regular holiday.
“teleworkers” or “telecommuters”, are
Premium Pay -refers to the additional
able to remain at home (or otherwise
compensation for work performed with eight
away from the office) and perform their
hours on non-work days, such as rest days and
work using computers and other
special days
electronic devices that connect them with
their offices. Overtime Pay -refers to the additional
• Part-time Work: A type of employment compensation for work performed beyond eight
which regular hours of work are hours a day.
substantially less than the normal hours
Night Shift Differential (NSD) – refers to the
prescribed.
additional compensation of (10%) of an
TOP ADVANTAGES employee’s regular wage for each hour of wok
performed 10 pm to 6 am
For Employees:
Service Charges – is the amount that is added
• Flexibility to better meet family and to a bill for any work or service performed.
personal needs
• Reduced commuting time and gas The Service Charge Law dictates how service
expenses charge payments should be made and when
• Have more control over your time they should be made to employees
schedule and working environment All service charges collected by an employer
• Can work during the hours that fit your must be distributed fully and equally, based
energy cycles bets on actual hours or days of work or service
For Employers: rendered, among all covered employees.

• Boosts employee morale Service Incentive Leave -employee who has

• Reduces tardiness and absenteeism rendered at least one year of service is entitled
Service Incentive Leave (SIL) of five days with
• Reduces employee turnover
pay.
• Enhances company image as a family-
friendly place to work Maternity Leave -this benefit applies to all
covered female employees, regardless of civil
TOP DISADVANTAGES
status, employment status, and the legitimacy of
For Employees: her child

• Difficult for office-based staff to work as

effectively with telecommuting staff
• Working from home may mislead loved
ones about your availability
• No clear dividing line between home and
work
For Employers:
• Some employees may not work
efficiently without supervision
• Compressed work weeks may mean
client availability suffers
• Feelings of unfairness when only certain
employees have work that can be done
remotely PATERNITY LEAVE
MANDATORY EMPLOYEE BENEFITS IN THE What is the Paternity Leave Law?
PHILIPPINES
Under the law, male private and government
Minimum Wage -it is the lowest wage rate fixed employees in the Philippines are entitled to
by law that an employer can pay his/her worker. seven days of paternity leave with full pay. They
How is minimum wage is determined? should receive their basic salary, allowance, and
other monetary benefits for those days.
Tier 1: Poverty Threshold, Prevailing Wage
Rates, and Socio-Economic Indicators Parental Leave for Solo Parent
(Inflation, Employment Figures, GDP, etc.) Solo parents are entitled to parental leave of 7
Tier 2: Voluntary Productivity-Based Pay work days every year with full pay
Leave for Victims of Violence Against b. Redundancy, as when the position
Women and their Children of the employee has been found to
be excessive or unnecessary in
Duration: 10 days
the operation of the enterprise;
Who’s entitled: Female victims of physical, and
sexual, psychological, or economic abuse. c. Impossible reinstatement of the
employee to his or her former
Special Leave for Women (after working for
position to a substantially
6 months within the last 12 months) equivalent position of reasons not
Duration: 2 months attributable to the fault of the
employer
Who’s entitled: Women who have had surgery
caused by gynecological disorders Retirement Pay -employees shall be retired
upon reaching the age of sixty (60) years or
Thirteenth-Month Pay more but not beyond old (and have served the
-it is an obligation of every employer to give the establishment for at least five (5) years)
13th month pay not later than December 24 Formula for Computing Retirement Pay
-An employee who resigned within the year shall Minimum Retirement Pay = Daily Rate x 22.5
be entitled to 13th month pay, provided he or days x No. of years in service
she has worked at least one month.
Employees’ Compensation Program -is a
Formula: Total Basic Salary x Employment / 12 government program designed to provide a
months compensation package to public and private
Ex. 10,000 x 8 months / 12 months = 6,666 sector employees or their dependents in the
event of work-related sickness, injury, or death.
Separation Pay -is given to employees in
instances covered by Article 298 and 299 EC Program Compensable Injuries
(formerly Articles 283 and 284) of the Labor 1. Happened at the workplace
Code of the Philippines. An employee’s 2. Happened while performing official
entitlement to separation pay depends on the function
reason or ground for the termination of his or her 3. Outside of workplace but performing an
services. An employee may be terminated for order of his employer
just cause (i.e., gross and habitual neglect of 4. Going to or coming from work
duty, fraud, or commission of a crime), and other 5. While ministering to personal comfort
similar causes as enumerated under Article 6. While in a company shuttle bus
297 (formerly Article 282) of the Labor Code 7. During a company sponsored activity
and, generally may not be entitled to separation 8. Death of an employee due to assault
pay. On the other hand, where the termination is
for authorized causes, separation pay is due. PhilHealth Benefits -the National Health
Insurance (NHIP) is a compulsory health
Two types of Separation Pay insurance program of the government
1. One-Half (1/2) Month Pay per Year of established to provide universal health
Service -if employee’s separation from insurance coverage and ensure affordable,
the service is due to any of the following acceptable, available and accessible health
authorized causes: care services for all citizens of the Philippines
a. Retrenchment to prevent losses Social Security System -covered employees
(i.e., reduction of personnel are entitled to a package of benefits under the
effected by management to Social Security and Employees’ Compensation
prevent losses); (EC) Programs in the event of death, disability,
b. Closure or cessation of operation sickness, maternity and old age. Self-employed
of an establishment not due to and voluntary members also get the same
serious losses of financial benefits as covered employees, except those
reverses; and benefits under the EC program
c. When the employee is suffering
from a disease not curable within Pag-ibig Benefits -The Home Development
a period of six (6) months Mutual fund otherwise known as Pag-IBIG
2. One-Month Pay per Year of Service -if (Pagtutulungan sa kinabukasan: Ikaw, Bangko,
employee’s separation form service is Industriya at Gobyerno) Fund is a mutual
due to any of the following: provident savings system for private and
a. Installation by employer of labor- government employees and other earning
saving devices; groups, supported by matching mandatory
contributions of their respective employers with
housing as the primary investment.
Increase of Pag Ibig Mandated Contribution • Improve job performance, which requires
for 2024 that employees receive:
o Accurate feedback
-updated news for pag ibig 2024
o Guidance
-mandated deduction of 200 pesos
DIFFERENT ROLES IN THE PERFORMANCE
-target date is on Jan 2024 APPRAISAL PROCESS
MODULE 6: PERFORMANCE APPRAISAL Role of the organization
AND CAREER MANAGEMENT
• Develop the appraisal process
If you are manager, how would handle an • Determine timing of appraisals
employee who is experiencing difficulty in • Ensure availability of clear and specific
terms of his/her performance? standards
Employees need to know how well they are Role of the rater
performing and how they can improve their
performance. Companies often base pay and • Observe performance and process
promotion decisions on employee performance. information gained from observation
They need ways of measuring, capturing, and • Communicate results and consequences
comparing performance levels of different • Prepare ratee to perform at desired
employees. For all these purposes, companies levels
need accurate performance Role of the ratee
Performance Appraisal and Performance
• Maintain a clear and unbiased view of
Management
performance
Performance Appraisal is the specific and • Collect adequate information to avoid
formal evaluation of an employee to determine disagreements during the process
the degree to which the employee is performing
Sources of Information for Performance
his or her job effectively
Appraisal
It is also known as: performance evaluation,
performance review, annual review, employee
appraisal, or employee evaluation
Performance Management refers to the more
general set of activities carried out by the
organization to change (improve) employee
performance.
Importance of Performance Appraisal
360 Degree Feedback -is a process that allows
• Appraisal results provide a benchmark an employee to understand their strengths and
for assessing the extent to which weaknesses. In this feedback system, the
recruiting and selection processes employer and other staff members, like co-
are adequate; workers, peers, subordinates, and people
• It is important for legal reasons (all that share the same work environment, provide
employee movements are based on feedback to an employee.
merit and valid causes); Pros & Cons of 360-Degree Feedback
• It provides employees additional
information how well they are currently Pros:
doing so they can correct their
• Provides feedback to employees from a
deficiencies, capitalize on their
variety of sources
strengths, and improve their overall
• Develops & strengthens teamwork &
contributions to their job; and
accountability
• It is a basis of incentive pay systems
• Reveals specific career development
and other performance-management
areas
interventions
Cons:
Goals of Performance Appraisal Process
• Focuses on employee weaknesses &
• Provide valid and reliable measure of
shortcomings instead of strengths
employee performance in relevant
• Provides feedback from inexperienced
dimensions
raters, & groups can “game” the process
• Documentation
• Requires large degree of data collection
& processing in some cases.
METHODS OF PERFORMANCE APPRAISAL Evaluating the Performance-Appraisal
Process
Simple Ranking Method -manager gives a
rank-order to each member of a particular work • Most firms claim to have dropped
group from top to bottom or from best to worst performance appraisal since the usage of
stack ratings have led to:
Paired Comparison Method -each individual
o Backstabbing
employee is compared with every other
o Low levels of teamwork
individual employee, two at a time.
o Feelings of frustration
Forced-Distribution Method -grouping • Performance-management technologies
employees into predefined frequencies of enable collection of real-time
performance ratings. performance data
Graphic Rating Scale -statement or question Legal Issues in Performance Appraisal
about some aspect of an individual’s job
• Appraisals showing evidence of
performance
disparate impact must be validated in the
Critical Incident Method -relies on instances of same manner as any selection technique
especially good or poor performance on the part o Show that rating is job related
of the employee o Demonstrate that raters:
▪ Can observe rated
Behaviorally Anchored Rating Scale (BARS)
behaviors
-combination of the graphic rating scale and the
▪ Have training to help them
critical incident method.
appraise performance
Management by Objectives -system is based better
largely on the extent to which individuals meet
Most people have a general idea of the
their personal performance objectives
meaning of career. For instance, they
RATING ERRORS IN PERFORMANCE generally agree that careers have something
APPRAISAL to do with the work a person does in an
organization, but they also recognize that a
Contrast Error -when people are compared
career is a broader and more general
against one another instead of against an
concept than a single job or task in an
objective standard.
organization.
Distributional Error - when the rater tends to
Career
use only one part of the rating scale
• Set of experiences and activities that
• Severity -all employees have below
people engage in related to their job and
average ratings
livelihood over the course of their working
• Leniency -everyone has an above life
average rating o Specific jobs performed by a
• Central Tendency -no one is actually person
good or bad, employees receive o Responsibilities and activities that
generally average ratings. constitute the job
Halo Error -one positive performance o Movements and transitions
characteristic may cause the manager to rate all between jobs
other aspects of performance positively. o Individual’s overall assessment
o Feelings of job satisfaction
Horns Error -when the manager downgrades
other aspects of an employee’s performance Traditional Career Stages
because of a single performance dimension.
Contextual Performance -it refers to tasks an
employee does on the job that are not required
as part of the job but that nevertheless benefit
the organization in some way. This is known as
OCB
• Organizational citizenship behaviors
include:
Exploration
o Willingness to stay late at work to
finish deadlines • During this period in people’s lives, they
o Helping co-workers try to identify the kind of work they are
o Performing tasks that help the interested in doing.
organization
 • This period of a typical person’s career
starts in the mind- to late teens and lasts
through and mid-to late twenties.
Establishment

• During this period, an individual begins to

create a meaningful and relevant role for
herself and the organization.
• This is considerable range in terms of
age and time in this stage, but it generally CAREER DEVELOPMENT ISSUES AND
encompasses an individual’s late CHALLENGES
twenties through mid – to late thirties. Career Counselling Programs
Maintenance -during this period, the individual • Formal career-counseling programs
begins to reach a level in the organization that usually take the form of workshops,
optimizes his talents or capabilities. conferences, and career-development
Disengagement -during this period, the centers. In some cases, the organization
individual gradually begins to pull away from her establishes general-purpose career-
work in the organization, her priorities change, counseling programs that are available to
and work may become less important to her. all employees.
• Organizations also have informal
Older Workers and Decision to Retire counselling programs. Much of this
• Curvilinear relationship exists between counseling takes the form of one-on-one
age and performance interactions between an employee and
o Performance is highest when his or her supervisor and typically occurs
workers are youngest and older during the performance-appraisal period.
• Retired individuals are most likely to Dual-Career and Work-Family Issues
retire when:
o Adequate financial resources are • Balancing family needs with work
available demands
o Health makes it difficult to o Family-friendly work practices
continue work such as child care, elder care, and
flexible work schedules
Human Resource Management and Career • Work stress and family stress are
Management connected
Evaluating Career-Management Activities

• If an employee is satisfied with his or her

career at this point, then career
management must be judged successful
up to that point
• Employees who go into careers for which
they are not well suited (either in terms of
What’s Career Planning -career planning is a abilities or temperament) will obviously
strategic systematic process that involves be more likely to suffer dissatisfaction
individuals and organizations working with their careers.
collaboratively to identify and develop career
goals, explore growth opportunities, and create
actionable plans to achieve desired career
outcomes.
Steps in Career Planning