Recruitment and selection in the Banking Industry
Recruitment and selection in the banking industry
Human resources are the most valuable asset ever in any Organization without any doubt (Ahmed et al., 2006) .The ability of creative thinking, knowledge, and skills as well as the power of brainstorming of a human cannot be imitated by any other resources ever. Human Resource Management (HRM) is one of the main functions within general management, as such a process with several steps that are linked with each other
(Ahmed et al., 2006). Recruitment and selection are the two most vital steps within the HRM process, as it will guide the organization on which kind of people you are recruit and select.
An effective approach to recruitment and selection can help an organization to maximize the competitive advantages by choosing the best pool of candidates quickly and cost-efficiently (Kleiman, 2005). Even though successful recruitment and selection can be costly and time-consuming, both these stages are crucial for a business. As scholars mentioned, unsuccessful recruitment and selection can be responsible for the failure of the business, and ultimately the overall business venture might get long-term negative impacts (Ahmed et al., 2006). Jovanovich (2004) has pointed out recruitment as a process of attracting a pool of high-quality applicants to select the best among them. For this reason, top-performing companies devoted considerable resources and energy to creating a high-quality selection system. In Sri Lanka, the Banking industry, mainly the private banks, is using well-structured recruitment and selection procedure to meet the requirement of high-quality human resources.
Recruitment is a process of searching potential applicants for a suitable post/vacancy or an anticipating vacancy and encourages them to apply for the said post/vacancy as well, selecting a suitable person for a suitable post will ensure the goal of the organization (Noe et al., 2006). Recruitment could be divided as;
a) Internal recruitment: searching prospective employees through the existing workforce by providing transfers from different departments, offering promotions, through the referral of supervisors, mainly (Noe et al., 2006).
Within the banking sector, this internal recruitment is a quite popular hiring method. As an example, Leading Commercial banks in Sri Lanka provide more consideration for internal recruitment than external, by distributing Expression of Interest (EOI) among the eligible candidates via e-mail from time to time. This kind of process might help to find out an effective and most suitable person for the vacant post.
b) External recruitment: find proper employees through external environment through paper advertisements, recruitment agencies, higher education institutes such universities, technical colleges, job sites such as top-jobs, hot-jobs, and headhunting through external references mainly (Noe et al., 2006)
Within the sector of banking, this external recruitment method also very popular. If we take example from the Leading Commercial Banks in Sri Lanka, they are very frequently advertising the vacant posts in National News Papers and Top-jobs.lk site. These external recruitments will open an avenue to outside resourceful individuals to apply freely for vacancies. Further, for the bank, this might act as a brilliant option to recruit the most suitable person, regardless of other barriers of administration. Hence, within the private banking sector, recruitment is considered as one of the prioritized functions, as well for all other organizations.
Selection is the process of picking individuals who have relevant qualifications to fill the vacant post in an organization(Istvan,J ( 2010 ). Selection is much more than just choosing the best candidate, is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires (Fisher et al., 2004). Therefore this might act as a win-win situation for both parties.
The selection strategy may differ based on the types of jobs. The selection process for non-managerial level positions differs from the managerial level selection process (Istvan J, 2010). Organizations may practice from an available set of selection methods such as completed application forms, assessment centers, work-sampling tests, mental ability tests, face-to-face individual or panel interview, medical examination (Noe et al.,2006). Among the methods, conducting interviews is one of the common methods, and easy to execution quick outcomes as well as cost-effective (Noe et al., 2006)
REFERENCES
Ahmed, J. U., Tabassum, A. & Hossain, T. (2006) Human Resource Management Practices: A Case Study of the Supply Chain Department of Square Pharmaceuticals Ltd, Sri Lankan Journal of Management, 11: 1
Fisher, C. D., Schoenfeldt, L. F. & Shaw, J. B. (2004) Human Resources Management, New Delhi: Biztantra
Istvan,J ( 2010 ) Selection Methods used in recruiting sales team members ,Periodica Oeconomia
Jackson, J. H. & Mathis, R. L. (2005) , Human Resources Management, 3rd Edition,Bangalore : Thompson
Jovanovic, Boyan (2004), Selection and the evolution of industry. Econometrica, 50(3): 649-670
Khan,A.A. (2008) “Human Resource Management and Industrial Relations , 2nd Edition ,Dhaka : Abir Publications
Kleiman,L.S. ( 2005 ) Human Resources Management : A Managerial Tool for Competitive Advantage. 2 Nd Edition.NewDelhi : Biztantra.
Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006) Human Resource Management, NY: McGrawHill Irwin
Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, with appropriate qualifications, to apply for jobs within a business. (Alrichs and Nancy, 2000)
ReplyDeleteRecruitment Methods
1. Suggestions from Current Employees
2. Word of Mouth
3. Want Ads
4. Government Job Services
5. College Placement Offices
6. Posting Job Announcements on Bulletin Boards
7. Executive Search Firms
8. The Internet (Alrichs and Nancy, 2000)
Employee selection is the process of choosing from a group of candidates the individual or individuals who will be offered a position(Alrichs and Nancy, 2000)
Selection Tools
1. Application forms
2. Interviews
3. Reference checks
4. Pre-employment tests
5. Trial period(Alrichs and Nancy, 2000)
Thank you,. According to Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006), the recruitment is consist of two main divisions as internal recruitment and external recruitment. The all recruitment method are discussed under this.
DeleteIstvan,J ( 2010 ) discussed , the Selection is the process of picking individuals who have relevant qualifications to fill the vacant post in an organization.
Hi Thusitha, A complete recruitment strategy and a number of processes need to be in place to determine overall results for the organization before effective recruiting can take place and recruitment should always include analyzing the position to be filled the person to fill it ,writing a job description and person specification and analyzing the organization short, medium and long term needs and goals(Robert et al, 2010).There are five steps to the recruitment process, they are preparation, deciding on a recruiter ,sourcing the employee, covering legislative aspects and deciding on application methods(Robert et al, 2010).
ReplyDeleteDear Eranga, appreciating your comment and Human Resources Management (HRM) has a great significance by enhancing the dignity of labour in numerous means by giving them the suitable employment, in a way to provide social and psychological satisfaction to maintain their work-life balance Armstrong and Taylor (2014).
DeleteThe recruitment process consists of three stages. According to them, the three main stages are job analysis, job description and personal specification. Select effective selection processes allow the candidate and the organization to accurately assess the suitability of the job specification and comply with all applicable laws. Selection is an opportunity for companies to select candidates they believe are best suited for the job (Foot and Hook, 2010).
ReplyDeleteThanks, Ranga, Recruitment includes the practices and activities maintained by the organization with the primary purpose of identifying and attracting the potential employees to the organization. Moreover, recruitment is a process of searching the candidates to filling the vacant staff positions in any as well matching individuals to the existing jobs in organizations Balaji,(2019).
DeleteAdu-Darko (2014), stated that Recruitment is the process of getting applicants with the required experience, knowledge, skills, qualifications and behaviour for a job vacancy. Recruitment is aimed at getting the right quality and number of suitable persons to fill vacant positions in an organization (Armstrong, 2006). Performance for the job is predicted and applicants must fulfil this required performance before they would be selected to the job (Yaseen, 2015).
ReplyDeleteChamila. Thank you. The processes and sources of recruitment have evolved over time and continue to do so linked to the professionalization of human resources management as well as to factors related to the environment, the sector and the level of economic and technological development (Carbonel et al., 2020).
DeleteHi Thusitha,Agreed to your comments and adding more about sri Lankan Organizations. In Sri Lankan context , Sri Lankan companies draw talent from different sources. Each source of recruitment brings with it a number of distinct advantages and disadvantages. Different sources of recruitment reach different applicant populations and attract applicants who differ in qualities and attributes that may impact job performance and attitudes. However, this may lead to high level of investment in recruitment and selection. And also implies the need of objective selection criteria and sophisticated selection methods.(Wickramasinghe, V. 2007).
ReplyDeleteThanks Madura,. Specially in the Private Banking sector in Sri Lanka using University undergraduates by giving training opportunities to them and after completion of the training period the more talented personals are recruiting to the permanent cadre.
DeletePhysical and mental fitness could be identified using the medical examinations. The background of the candidate could be evaluated using family background and financial background tests (Miles & Sadler-Smith, 2014).
ReplyDeleteThanks,. According to Snell and Bohlander ( 2007 ) , the medical examination is one of the later steps in the selection process because it can be costly. A medical examination is generally given to ensure that the the health of an applicant is adequate to meet the job requirements.
DeleteOnce it comes to the banking sector, selection process of the candidates for vacant positions and finding the qualified person from the right pool of applicants has become a very significant factor. According to Gatewood (2011), knowledge, skills, and abilities of a candidate are some measurements when used in the selection process and predict the performance of candidates.
ReplyDeleteThanks Isuru,. Fisher, C. D., Schoenfeldt, L. F. & Shaw, J. B. (2004) discussed the Selection is much more than just choosing the best candidate, is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires .
DeleteInternal recruitment is cost efficient, support employee satisfaction and moral. Spend some time recruiting or promoting the current employs before looking outside of the company for talent. Nothing is more disappointing for the employee, who has been working hard to get promoted, to see someone new seize the position he deserved or desired. Promoting inside the organization involve less training and transition. (McIntyre, 2010)
ReplyDeleteDear Kelum,. Internal Recruitment is searching prospective employees through the existing workforce by providing transfers from different departments, offering promotions, through the referral of supervisors, mainly according to Noe et al., ( 2006).
DeleteAdding more to your internal recruitment, it is promoting a existing member in the workplace to a higher position, making a temporary member to a permanent member in the workplace, hiring a retired worker to work part-time or as a freelancer or the free position being advertised within the company are some internal recruitment methods (Schultz & Schultz, 2015).
ReplyDeleteThank you, large number of organizations tend to combine both internal and external sources of recruitment, whereas rapidly changing competitive environmental conditions, might keep emphasis on external sources in addition to internal sources of recruitment (Mathis & Jackson, 2005)
DeleteAdding something more Thuitha, the selection processes used must be unbiased and legally compliant and the human resources department must also look at wider corporate requirements (such as succession planning and future capability needs) (Armstrong & Taylor, 2014).
ReplyDeleteKanishka , Thank you, The selection strategy may differ based on the types of jobs. The selection process for non-managerial level positions differs from the managerial level selection process (Istvan J, 2010).
ReplyDeleteAn effective approach to recruitment and selection can help an organization to maximize the competitive advantages by choosing the best pool of candidates quickly and cost efficiently (Kleiman, 2005). But successful recruitment and selection can be costly and time consuming. Still, recruitment and selection are crucial for a business, because unsuccessful recruitment and selection can be responsible for the failure of the business (Ahmed, Tabassum & Hossain, 2006). According to the International Monthly Refereed Journal of Research In Management & Technology (2014), the selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. Selection is much more than just choosing the best candidate, where it is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires.
ReplyDeleteAs the fundamental and systematic work in human resource management, employee recruitment is so important. Thus, it is necessary to build and improve the human resource planning system from the perspective of enterprise strategy, in order to solve the problems of “what kind of people are useful” and “how many people are needed” at each stage of company’s development. In addition, it is required to build two channels: talent recruitment channel and self-training channel, which are to solve the problem of rapid talent import (Liang ,2020).
ReplyDeleteWages as the main factor for job satisfaction, but other factors such as the promotion, recognition of work, and employees loyalty also considered. In addition, salaries and incentives are the most important determinant of job satisfaction (Calisir et al., 2010)
ReplyDelete