LMU 20050237

Saturday, August 14, 2021

How Does Big Data use in Human Resource Management?


Image 01. Source: www.greatpeopleinside.com



How Does Big Data use in Human Resource Management?

Big data has arisen because the gamechanger in every business and organizational department, particularly the human resources (HR). Developing big data with HR data analytics can support inform and expand virtually each part of HR, including recruitment, training, development, performance, and compensation. By using big data, HR professionals can make cleverer decisions and help an organization meet its goals more efficiently.

The key innovation of big data for HRM is that the data is big. Data is a valuable resource for organizations since delivers information (knowledge) letting the decision-making becomes a data-based procedure, not intuition or wisdom (Roberts, 2013).

The rise in the usage of big data and data analytics by businesses has also improved the demand for professionals with precise profiles (Barnes, 2014 Cited in Garcia-Arroya and Segovia, 2019).

Big also means data risks management, due to the struggle to control volume, velocity and diversity data, and manipulate sensible staff or reputational information (Calvard & Jeske, 2018).

 

Does HR need big data?

Big data in HR has made it likely to gather and evaluate data before, during, and after the hiring process to assist inform hiring choices and build a more competent workforce.

Big data can give HR managers the capability to screen and track the productivity of recruitment efforts to well identify the most efficient plans that attract the perfect applicants. In this way, big data can rationalize hiring procedures and make it easier to reduce large pools of applicants to a lesser, more qualified pool.

In addition, it can give HR departments the prospect to acknowledge employee patterns and trends and develop plans that are intended to enhance loyalty and reduce turnover. With big data, HR managers can recognize what's essentially to not only retain top talent, but to retain it also.     

 

Figure 01. Source: www.glocalthinking.com

7 benefits of big data in HR

1.         Recruit the best talent

HR managers can screen through thousands of resumes and narrow down their exploration to the most promising prospects.

2. Prioritize recruitment channels

Taking advantage of massive data can disclose which recruitment methods are bringing outcomes and which of them aren’t quite effective. 

3. Detect employee health and injuries

Big data permits to detect and appropriately prepare for common well-being issues in their companies. For instance, it may disclose that employees are frequently sick between December and March, prompting the hiring of extra temporary staff during this time period.

4. Improve training

Big data gives companies the prospect to calculate how effective a probable training initiative, which may decrease the danger of coaching programs that cause poor staff retention.

5. Enhance employee motivation and engagement

Organizations can recognize and reward top performers. Through data governance solutions, abuses of policies or standards can be recognized, and quick action can be taken to resolve these issues.

6. Increase retention

HR managers can rapidly figure out what reasons employees to leave and implement programs to rise retention.

7. Forecast the future

Companies can sight HR patterns and trends, and use that information to make forecasts about the future on HR tactic and avoid matters with hiring, retention, and performance.

 

Global Context

VINCI, a worldwide leader in construction with over 185,000 staffs spread across 2,100 companies, uses big data to advance its HR functions. Through big data, VINCI is able to effectively accomplish staff data and make staff communications, onboarding, and firing employment more efficient.

The organization can now simply adapt to company-wide changes, having an improved understanding of HR, and progress the overall efficiency of human capital.

 

(Source: KPMG US, 2020 available at www.youtube.com)

Conclusion

Adopting big data in HRM largely includes a procedure that must be followed to succeed. For the data to add value and to be a competitive benefit for HRM and organizations, they must provide valuable information and knowledge for decision-making and predicting rationally effective forecasts.        

 

References

Calvard, T. S., & Jeske, D. (2018). Developing human resource data risk management in the age of big data. International Journal of Information Management, 43, 159–164. doi: 10.1016/j.ijinfomgt.2018.07.011 Available at <https://www.pure.ed.ac.uk/ws/portalfiles/portal/70339678/Calvard_Jeske_2018_risk_IJIM_ms.pdf> (Accessed on 14th August 2021)

Garcia-Arroyo, J., and Segovia, A.O. (2019) Big data contributions to human resource management: a systematic review Available at <https://www.researchgate.net/publication/336363935_Big_data_contributions_to_human_resource_management_a_systematic_review> (Accessed on 14th August 2021)

Graham, J.T. (2021) Big Data in HR Available in <https://blog.sage.hr/10-benefits-of-using-hr-big-data-in-human-resources/> (Accessed on 14th August 2021)

Roberts, B. (2013). The benefits of big data. HRMagazine; Alexandria, 59(10), 20–22, 24, 26, 28, 30. Retrieved from <https://search.proquest.com/docview/1445137722? accountid=14609. Available at https://www.shrm.org/hr-today/news/hr-magazine/pages/1013-big-data.aspx> (Accessed on 14th August 2021)

Talend, <https://www.talend.com/resources/big-data-hr-analytics/ 2021> (Accessed on 14th August 2021) 

Wednesday, August 11, 2021

Should the Company Pay for its Employees’ Education?


 

Image 1: https://www.investopedia.com

Should the company pay for its employees’ education?

Refunding or paying for employees’ costs for work-related education could be a good way to feature to your employees’ skills and knowledge, which they will then apply to assist make your business an achievement. And for employers, the amount paid or refunded for a worker’s education expenditures is a deductible business expenditure. As an additional bonus, if the academic expenses qualify, employees could also be ready to exclude the payment or reimbursement from gross income as what's referred to as a working condition fringe benefit.

 

Communicating your training opportunities

Having a solid and effective training strategy aids to develop your employer brand and make your organization a key consideration for graduates and mid-career changes.

Your commitment to training will clearly be conveyed to the career marketplace, including job seekers and recruitment professionals, by means word of mouth and optimistic feedback by current and past employees.

Increasingly, your organization will be recognized by recruitment professionals who seek to place ambitious applicants within your company partly on the strength of your company’s reputation (employer brand) – and the strength and quality of your training

 

(Source: AIU, 2013 available at www.youtube.com)

Global Context

The American Council of Education guesses, for instance, that roughly 20 percent of graduate students are becoming some financial assistance from their employer to attend school (Babson, 1999), and roughly 6 percent of the much larger pool of all undergraduates receive such aid also (Lee and Clery, 1999).

 

Figure 1: ispatguru.com

Benefits of employees’ education

Improving Worker Skills

Education reimbursement plans can inspire staffs to develop skills that benefit your company. For instance, by offering to pay some or all of the cost of a management training package, you can steer staffs who demonstrate solid leadership skills toward a guiding path within your company.

Gaining Recruiting Edge

As a small employer, you may have a hard time attracting competent applicants who may desire to work for bigger companies offering more comprehensive benefits packages. Offering an education refunding program gives you one more weapon in your recruiting arsenal.

Improving Employee Morale

Offering an educational refunding program can make employees feel better about working for you, as it shows you are interested and concerned about their futures. Happier staffs are frequently more productive and may be less likely to leave an organization for a higher-paying job opportunity.

Lifestyle Benefits

Offering non-career-related education repayment programs to your staffs can also benefit you. For instance, paying for courses that teach employees how to accomplish their weight or stop smoking can help them improve their physical health, meaning less time off from work due to illness.


References

Babson, S., (1999). International and Comparative Industrial Relations: After Lean Production: Evolving Practices in the World Auto Industry

Cappelli, P., (2002) Why Do Employers Pay for College? Available at <https://www.researchgate.net/publication/222577875_Why_do_Employers_Pay_For_College> (Accessed on 11th August 2021)

Kluwer, W., (2021). Furthering your employees' education is good for business. Available at <https://www.wolterskluwer.com/en/expert-insights/furthering-your-employees-education-is-good-for-business> (Accessed on 11th August 2021)

Lee, J.B., and Clery, S.B., (1999). Employer aid for postsecondary education (NCES1999-181)


Monday, August 9, 2021

Overqualified employees: what to do with overqualification?


Image 1: www.recruiter.com

Overqualified employees: what to do with overqualification?

 

Today’s challenging labor market with high unemployment rates and lower labor demands has certainly produced a massive number of employees who find themselves in places for which they are overqualified. Those overqualified are thus seen as employees owning education, work experience, or knowledge beyond what is required by their job (Maynard, et al., 2006).  As a result, overqualification is normally perceived as a mismatch between employee education, experience, and organizational requirements (Worthington, 2002).

 

3 behaviors to keep overqualified employees happy

 

1. Agency

When workers have independence, and when they feel that they have the ability to affect their work environment, their turnover rate is no different from others.


2. Similarly talented coworkers

If overqualified employees interrelate and work with others at their level, which will retain those employees around.


3. Appreciation

If overqualified employees sense valued by the organization and management, they’re also more likely to stay. Staff have chosen to work at jobs where they are obviously overqualified for some reason not related to the real job, that makes a difference, too.

 

How Could overqualification be reduced if company hire employees fit to the job?

 

Hiring best applicants suitable to the job is one of the aims of the HR professionals but when it comes to applicants who have got much more qualification than the job description for the position what does it happen? In one study wiped out Albania in 2015 concerning the choice of employees privately companies it had been found that non-public companies HR’s didn't really favor overqualified applicants. The rising attention paid to the issue of overqualification is a result of two recent trends in contemporary economies stating to the growing number of graduates and to the technological development requiring not very qualified personnel reducing the companies expenses due to the growth of the artificial intelligence.


Figure 1: https://onlinelibrary.wiley.com


 

Global Context      

 

Almost half of American employees with college degrees are overqualified for jobs they hold, and this tendency is likely to last in the near future (Marklein, 2013) and many of those overqualified wonder if their qualifications are value anything (Trumbull, 2013). With as many as four job seekers vying for each job opening (Homan, 2011), many people will endure unemployed or within positions for which they are overqualified until their job is enlarged, they are promoted, or they leave the company.


(Source: Interview Success Formula, 2014 available at www.youtube.com) 

 

Conclusion

 

Assessing an overqualified person’s fitness for hiring, promotion and other employment-related outcomes is a process where numerous background and social factors, both linked to the overqualified individual and the observer, can affect attitudes and behaviors towards that person.

 

References

Homan, T.R. (2011), “Skills ‘Mismatch’ Hurts U.S. Jobless as Openings Grow: Economy” Available at <https://www.telegram.com/article/20111214/NEWS/112149839> (Accessed 09th August 2021).

Marklein, M.B. (2013), “Study: Nearly half are overqualified for their jobs”

        Available at: <http://www.usatoday.com/story/news/nation/2013/01/27/study-nearly-            half-are-overqualified-for-jobs/1868817/> (Accessed on 09th August 2021)

 

Maynard, D.C., Joseph, T.A. and Maynard, A.M. (2006), “Underemployment, job attitudes      and turnover intentions”, Journal of Organizational Behavior, Vol. 27, pp. 509-536.

        Available at <https://faculty.newpaltz.edu/dougmaynard/files/2013/02/2006-                           Maynard-Joseph-Maynard.pdf> (Accessed 09th August 2021)

 

Trumbull, M. (2013), “Have degree, driving cab: Nearly half of college grads are overqualified”

        Available at: <http://www.csmonitor.com/Business/2013/0128/Have-degree-driving-               cab-    Nearly-half-of-college-grads-are-overqualified> (Accessed on 09th August)

Worthington, J. (2002), “Overqualified for a job? Here’s what they really mean” Available at: <http://columbus.bizjournals.com/columbus/stories/2002/11/18/smallb3.html> (Accessed on 09th August)

Saturday, August 7, 2021

Why Trade Unions are Important in HRM?


 

Image 01. www.golegal.co.za

Why Trade Unions are Important in HRM?

Introduction

Trade union, is an association of employees who have united together to accomplish goals in areas such as salaries and working conditions. The union negotiates agreements and conditions with bosses, keeping employee satisfaction high and defending employees from dangerous or partial working conditions.

Trade unions’ roles in and influence on the workplace are undisputable. They contribute to set up an industrial relation atmosphere, which permits HRM actions to happen. As a ‘collective voice’ representing organized employees within organization, unions air workplace differences for managerial consideration, therefore reducing turnover and refining confidence and collaboration (Deery, et al, 1999).

Functions of Trade Union

1. Militant Functions

The aim of this function is to certify acceptable salaries, secure better environments. When the unions fail to accomplish these aims by the method of collective bargaining and discussions, they adopt a method and put up a fight with the management in the form of work slowly tactics, strike, boycott, etc.

 

2. Fraternal Functions

Unions aims at rendering help to its members in times of need, and improving their efficiency. They take up welfare measures for improving the self-confidence of workers and create self confidence among them.

 

3. Social Functions

Organizing welfare events and also providing variety of services to their members and occasionally to the community of which they are a part.

 

4. Political functions

These functions include linking the union with a political party, serving the political party in joining members, collecting donations, looking for the help of political parties during the periods of strikes.

 

Figure 01. www.oecd-ilibrary.org

Why Unions?

Teague et al (2012) propose that successful corporation would have to encompass pre-existing collective bargaining practices, and management would have to adjust their right to manage; basically, establishing a partnership system with an element of oppositional actions and potential for non-cooperation. Collaboration alongside informal opposition and resistance within partnership specified a essentially pluralist view of partnership (Dundon and Dobbins, 2016).

Global Context

Europe and Latin America, by exploring the role played by trade unions have long traditions of collectivism, which offer trade unions with social legitimacy and power (Morley et al. 1996), and also the development of anti-union attitudes and insights in these continents.

Discussion and Conclusion

There is still much debate how HRM and union practices might be combined and applied. What cannot be denied is that the previous has become progressively widespread as a way of soliciting the pledge and support of employees in the direction of organizational goals and objectives.

 

References


Abbott, K. (2007) Employment Relations: Integrating Industrial Relations and Human Resource Management. Available at <https://www.businessperspectives.org> (Accessed on 07th August 2021)


Deery, S and Erwin, P. and Iverson, R (1999) Industrial Relations Climate, Attendance Behavior and the Role of Trade Unions


Dundon, T. and Dobbins, T. (2016). Militant partnership: a radical pluralist analysis of workforce dialectics. Work, Employment & Society. Advance online publication.

Available at <https://eprints.whiterose.ac.uk> (Accessed on 07th August 2021)


Morley et al. (1996) PH regulation of connexin43: molecular analysis of the gating particle

Sharma, S.K. and Sharma, B. (2014) Human Resource Management and Trade Unions (HRMTU) Available at <http://www.ijtef.org/papers/346-N10002.pdf> (Accessed on 07th August 2021)

Teague, P., W. Roche & D. Hann (2012) “Toward a Strategic Theory on Workplace Conflict Management”, Ohio State Journal in Dispute Resolution, 24(1) 143-190

 


Friday, August 6, 2021

Is Employer Branding Important to Attracting and Retaining Talented Employees?


 

Image 01: cciconsulting.com



Is Employer Branding Important to Attracting and Retaining Talented Employees?

 

What is Employer Branding?

Employer Branding is a set of traits and qualities – regularly intangible- that makes an organization distinguish, promises a specific kind of employment experience, and that will prosper and accomplish best in its culture. Employer branding has directed to companies progressively understanding the worth of attracting and retaining the high talent (Mosley, 2007).

 

Why Employer Brand is important?

Employers who giving the experience they promise to enjoy improved recruitment, engagement, employee brand support and retention. Therefore, employees are often recommending their employer as a place to work, to post or share commendation about their employer online, and to give extra energy into their job.

Companies that fostering an employer brand can protected and retain the most valued employees who will promote brand success and bring profits hence producing value to company (Moroko and Uncles, 2008).

 

Figure 01: blog.talview.com

Build an Employer Brand on Social Media

Employment branding isn’t limit to LinkedIn. Whatever social networks you’re on to create your company brand, you can also make a separate profile that emphases on your employer brand.

 

Global Context

Most successful companies have learned the way to tactically slot in employer branding into their talent management tactic. Employer branding eventually helps attract top talent by giving applicants a close look at what your company is all about. A solid employer brand permits applicants to “self-assess” for fit within your company, which can rise employee retention and engagement ratio over time.

 

How Netflix do it?

Image 02: gsmarena.com


Netflix’s jobs page starts with a segment about its well-known culture. Unlike what you'll expect, you’ll land on a page that’s crammed with plenty of text, no videos, images, or anything that would distract you, just words on a plain background.

For those applicants who prefer viewing a video, the company’s jobs page also features a video of Netflix CEO Reed Hastings in which he talks about what he’s learned at Netflix in 20 years’ time. He too, speaks frankly and paints a realistic picture of what it’s like to work at Netflix.

(Source: id29, 2018 available at www.youtube.com)

Conclusion

Employer branding is used as a retention management method that rises employee engagement, communicates the organizational culture and advances it, and improves the expectations of responsibilities between the employer and employee, the psychological contract. Employer branding does in fact have a positive impact on employee retention by increasing the entire experience of working for a specific company and by creating value for employees leading to loyalty.

 

References


Monte, J. (2019) Why employer branding is critical for attracting and retaining talent

Available at <https://www.edsisolutions.com> (Accessed on 06th August 2021)


Moroko, L. and Uncles, M.D. (2008) Characteristics of successful employer brands. Journal of Brand Management, 16 (3), 160-175 Available at <https://www.academia.edu> (Accessed on 06th August 2021)


Mosley, R.W. (2007) Customer experience, organizational culture and the Employer Brand. Journal of Brand Management, 15 (2), 123-134 Available at <https://jungkirbalik.files.wordpress.com> (Accessed on 06th August 2021)

 

Suikkanen, E. (2010) How does employer branding increase employee retention

Available at <https://www.theseus.fi/bitstream/handle/10024/35007> (Accessed on 06th August 2021)

 

Verlinden, N. (2021) 9 Great employer branding examples to inspire you in 2021

Available at <https://www.digitalhrtech.com/employer-branding-examples/#Net> (Accessed on 07th August 2021)

Sunday, August 1, 2021

Does virtual team building inspire the employees?



Image 01: smallworldexperience.com


Does Virtual team building inspire the employees?

Virtual team building are activities that builds trust among team members, develops and brings unity to the team. A reserch by Remote.co revile that, 87% of distant staff sense more linked through the utilization of audiovisual conferencing.

The pandemic forces us to rethink many areas and offers great opportunities. Digital communication channels are progressively used and therefore the remote or mobile working is becoming a matter indeed (Gaudecker et al., 2020). Even before covid 19, many digitization schemes were started and implemented, too (Oztemel & Gursev, 2020). Employees need a while to induce accustomed the new condition. Communication in virtual teams must be more specific, brief and explicit (Bakshi & Krishna S., 2008).

Image 02: focusu.com


Digital technologies and infrastructures are the basic requirement for digital teamwork. However, the introduction of digital technologies is not sufficient to make an effective virtual team (Ebrahim et al., 2009). Internal group dynamics and external support mechanisms should also be measured (Lurey & Raisinghani, 2001).

One key task is to ensure role clarity, i.e. all team members are mindful of the different characters and tasks, as a lack of visibility can make the team members feel less able to attain outcomes (Ebrahim et al., 2009).

Image 03:www.rider.edu/


Global Context

IBM having 200,000 employees from different countries and backgrounds. One of the main challenges within a worldwide company of this size is managing time zones. Permitting employees to work at the hours when they are naturally most productive can boost performance and morale. That’s why IBM renovate itself to use an outcome concerned work atmosphere. Employees can live where they need and add virtual teams supported their own schedules. Even as team members work more autonomously during the hours that employment best for them. As a result of the virtual team building activities, IBM were able to welcome the acquired company’s employees into the business with energy, creativity and a collaborative team spirit.

(Source: vitalsmarts, 2021 available at www.youtube.com)

Conclusion

Virtual teams have shown the significant importance in the virtual world. It underlines how important it is, especially, but not exclusively, in times of the corona pandemic. It is the strong leader who show their employees how to switch from working on site to a digital workplace.

References

Bakshi, S., & Krishna S. (2008). The impact of virtuality on the flexibility of virtual teams in software development projects. <https://core.ac.uk/download/pdf/301341997.pdf> (Accessed on 30 July 2021) 


Ebrahim, N. A., Ahmed, S., & Taha, Z. (2009). Virtual teams: A literature review. Australian Journal of Basic and Applied Sciences. <https://www.researchgate.net/publication> (Accessed on 31 July 2021)

Gaudecker, H. (2020). Labour supply in the early stages of the Covid 19 Pandemic: <https://www.iza.org/publications/dp/13158> (Accessed on 30 July 2021)

https://biz30.timedoctor.com/virtual-team-building/ (Accessed on 31 July 2021)

https://wearewildgoose.com/uk/team-building-activities/case-studies/ibm-case-study/ (Accessed on 30 July 2021)

https://www.gartner.com/en/information-technology/glossary/virtual-team-building (Accessed on 30 July 2021)

https://www.researchgate.net/publication/343473371_Leading_Virtual_Teams (Accessed on 01 August 2021) 

Lurey, J. S., & Raisinghani, M. S. (2001). An empirical study of best practices in virtual teams. Information & Management.

<https://www.plusdelta.net/wpcontent/uploads/2011/08/IM_Best_Practices_Virtual_Teams_Article.pdf> (Accessed on 31 July 2021)


Oztemel, E., & Gursev, S. (2020). Literature review of Industry 4.0 and related technologies. Journal of Intelligent Manufacturing.

<https://link.springer.com/article/10.1007/s10845-018-1433-8> (Accessed on 31 July 2021)


Friday, July 30, 2021

Designing of Executive Compensation Plans - That Actually Drives the Performance?


 

Image from https://blog.v-comply.com/executive-pay-linked-performance/

Designing of Executive Compensation Plans - That actually drives the Performance?

Executive compensation can have a big impact on an organization. When compensation is managed carefully, it lines up people’s conduct with the company’s plan and creates better performance. If it’s achieved poorly, the effects can be shocking, the loss of key talent, demotivation, misaligned purposes.

As organizations work their way through the Covid 19-related economic crisis, many companies, for instance, have cut pay for senior executives. Extra pressing will be how to think about the goals implanted within incentive plans. Numerous targets won’t be attainable given the new financial realities and thus will no longer serve as effective incentives.

The relationship between executive compensation and firm performance, is yet to be completely understood (Mehran, 1995). Jensen and Murphy (1990) claimed that equity-based rather than cash compensation presents managers with the correct incentive to maximize firm value.

As per the FW Cook, 83% of the 250 major S&P 500 companies use a prescribed annual incentive plan, A good compensation system always begins with an organization’s strategic goals. Misaligned compensation is with them, worry ensues.

Figure from https://slideplayer.com/slide/6845883/

HR's Role

Designing and managing an executive compensation program is diverse. The most basic role an HR professional plays is being in a position to inform management of the benefits, costs and range of options in launching or improving an executive compensation plan.

HR professionals are key in determining what in-house and outside expertise is necessary and sufficient to handle an executive compensation program. Every organization needs some sort of outside proficiency for the design and management of an effective executive compensation program.

The failure of various executive compensation programs can be linked to

    • Failure to obtain staff input in plans that will essentially incentivize executive performance.
    • Failure to clearly express performance goals up front.
    • Failure to state performance goals that are within the scope of influence of the target employee.
    • Measuring staff performance according to values that were not stated in written documentation.
    • Provided that job descriptions that do not implied the objectives set forth in the executive compensation plan

                                     (Source: Shampine, 2016 available in www.youtube.com)

Plan Design

Making an effective executive compensation plan requires organizations to balance stockholder alignment, performance-based pay, hiring and retaining, and the calculation of cost versus perceived value. A long-term reward plan with performance-based incentive vehicles can help accomplish that equilibrium.

Present trends in executive compensation:

  • A higher percentage of executive pay is linked to performance.
  • Pay incentives are more intensive on long-term outcomes.
  • Companies have reduced on privileges for executives.

References

Bennett, B., et al (2015). Compensation goals and firm performance. Retrieved from Available at <http://apps.olin.wustl.edu/faculty/Gopalan/15_Compensation%20Goals%20Firm%20Performance.pdf>  (Accessed on 30 July 2021)  

Center on Executive Compensation. (n.d.) Basics of executive compensation. Available at <http://www.execcomp.org/Basics/Basic/What-Is-Executive-Compensation>  (Accessed on 30 July 2021)

Groysberg, B., et al (2021) Principles for designing executive pay     Available at <https://hbr.org/topic/compensation> (Accessed on 30 July 2021)

Jensen, M., and Murphy, K., (1990). Performance pays and top management incentives. Journal of Political Economy, (98): 225-264.  Available at <https://leeds-faculty.colorado.edu/bhagat/Jensen-Murphy.pdf> (Accessed on 30 July 2021)

Lytle, T. (2013). Agenda: Compensation linking executive pay to performance. HR Magazine. Available at from <https://www.shrm.org/hr-today/news/hr-magazine/pages/0913-say-on-pay.aspx> (Accessed on 30 July 2021) 

Mehran, H., (1995). Executive compensation, ownership, and firm performance. Journal of Financial Economics, (38): 163-184. Available at <https://www.sciencedirect.com/science/article/abs/pii/0304405X9400809F>  (Accessed on 30 July 2021)