human resource management company analysis

Abstract This report discusses internal versus external recruiting and pays policy in Company X.. In the first part, general information about the recruitment process, internal versus ex

HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM

HUMAN RESOURCE MANAGEMENT

COMPANY ANALYSIS

Lecturer: Mrs Nguyen Thi Minh Hieu Tutor: Mrs Nguyen Huu Thi Thuy Duong Group members (Tut 03):

Nguyen Thi Nhat Nguyen Mai Anh Pham Thi Cam Ly Bui Thi Loan Vu Minh Ngoc

Hanoi, December 11", 2021

(ID: 1904000089) (ID: 1804000004) (ID: 1906090064) (ID: 1904000069) (ID: 1804000075)

Abstract This report discusses internal versus external recruiting and pays policy in Company X Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees It plays an important role in deciding human resources and the development of enterprises The main objective of the report is to apply the theories provided by Human Resources Management subject and primary, secondary data to analyze the company’s current problems and challenges, then provide effective actions to help the organization deal with problems In the first part, general information about the recruitment process, internal versus external recruiting, and then analyze pay policy According to the information we have found some issues in the programs have been investigated Therefore, based on the knowledge we have learned, we have proposed a number of solutions and actions to help the company overcome the outstanding issues.

I INTRODUCTION

In an organization, people are always the most important factor determining its existence and success To ensure that human resources for business operations always take place continuously and effectively, Human Resource Management is indispensable HRM helps the company control and manage its human resources properly Practicing HRM includes everything which consists of choosing and hiring, training, developing, compensating employees and managing benefits It is helpful for employers to have proper management and control the sources of employees from the recruitment step to attract the suitable and talented sources of labor Through the collected data, it is clear that Company X is facing some problems about internal versus external recruiting and pay policy In this report, the problem analysis and solutions as well as the implementation evaluation will be conducted on the basis of knowledge and information gained from the Human Resource Management subject There will be many necessarily considered issues about human resources that can be investigated in our project During the phase of implementing the solutions, there are also possible challenges that will be taken on below in this analysis

1 Background of the company Company X was established in September 2007, and has head office in Hanoi The company specializes in providing services for building mobile information network infrastructure, installing telecommunications equipment for households, businesses and organizations The company works

with a mission: “To become a leading company capable of providing a full package of technical

services from the survey to the management of telecommunications and IT networks in the entire territory of Vietnam Becoming the leading company in Vietnam is capable of providing integrated

solutions for telecommunication-information-communication, to provide utility services for individuals, families and organizations in society” After many years of operation, the company has many branches nationwide with important positions in this industry

2 Data collection method In this report, the research methodology uses both primary and secondary data Primary data was collected through interviews with Mr Tuan Anh — HR manager of the company Secondary data about company X's background information is collected from the company's internal documents uploaded to the website and the company's annual data, reports are mentioned by Mr.Tuan Anh

Another source used in this report is theory explanation obtained from the textbook “Human Resource Management” which was published by McGraw-Hill Education in the sixth edition The

explanations of theories about human resources management in this textbook are crucial parts supporting the study in our report

II DIAGNOSIS AND PRESCRIPTION

1 Diagnosis When HR heart of company X is their training and development, recruitment and selection are the momentous step in the process of building a good human resource In detail, the company uses internal and external recruitment Concerning the internal recruitment approach, they examine an internal talent plan to compile a list of current employees who have sought a job transfer Next, they match these workers with vacancies In the event that none are available, the company will apply an external recruiting process which follows the following steps The first step is analyzing job vacancy and targeting applicant portraits who will be suitable for the vacant job Second step is posting job vacancies on the company website or recruitment channel for external sourcing, and

2

employees publication for internal sourcing The third step is receiving the CVs and evaluating them, and then calling for an interview with qualified application forms Next, the company will put the applicant in 2-month probation before selecting the official positions

However, after conducting an interview with Mr Tuan Anh — HR manager, we found that company X has a relatively high turnover rate, with 33.33 percent of employees quitting within six months of joining the company, compared to the total number of new recruits Moreover, a great number of employees are resigning the job after 2-month probation (Muc tieu chat luong, 2017) With such a logical and reasonable recruiting process, we must come to the question why the company faces the problem of high turnover rate Therefore, it is diagnosed that the problems lie in the main aspect which the company uses to make recruiting decisions: personnel policies 1.1 Internal recruitment

Look at personnel policies, company X prefers internal recruiting — “promoting from within”

policies Thus, they can choose high quality and thoroughly familiar successors, reduce cost and at the same time provide the employees opportunity for advancement However, it affects the nature of jobs, recruitment sources, the nature of applicants and creates conflict amongst colleagues, talent neglect Moreover, for the external applicant, the company does not have a remarkable pay policy to attract and commit the applicant

1.2 Pay policy Besides, for almost all candidates, income is a significant employment attribute If an organization's pay policy is to pay more than the current market salary for a position, it has a recruiting advantage In addition to wages and salaries, firms competing for pay-based candidates

may employ bonuses, stock options, and other types of remuneration ( Noe H, 2015) The table below shows the pay structure of company X including payroll and insurance benefits in 2020

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According to this table, the company's remuneration is represented by salary, bonus and some other allowances The remuneration of the company is represented in this table by salary, bonus, and some other allowances The mid-career salary is nearly 5 million VND, and total net income after deducting insurance and other expenses is nearly 7 million VND With such remuneration, we find that the company still lacks competition in the telecom industry's human resources market Despite the fact that Company X provides many employee benefits that should have assisted in attracting, retaining, and motivating employees (such as social security, unemployment insurance,

healthcare, and paid leave), it is unable to retain employees due to that payment 100% of workers work to make money, but 71% are dissatisfied with their pay, and 60.6 percent believe that their pay is not commensurate with the amount of work they do (Nguyen Van Trien, 2014) As mentioned above, salary is one of the key factors to retain employees but company X does not have a competitive advantage in this aspect, so the turnover rate of the company is relatively high All in all, the aforementioned issues have a huge negative impact on the company brand Undoubtedly, if these situations continue, the number of sources for recruitment of the organization will suffer severe damage because talented workers can work at another better firm This is areason why the company should improve the personnel policies to attract a better quality labor force As a result, the image of the company will be enhanced

2 Prescription 2.1 Internal recruitment Regarding internal recruitment, the company needs to focus and follow 2 solutions to improve the recruitment segment, which is to improve external recruitment sources and clearly assess the qualifications of employees

Firstly, the company needs to understand the needs of employees as well as each person's career aspirations to make a forecast of the number of employees for the next recruitment round by surveying the quality of work as well as expectations individually monthly To fill the vacancies arising from internal recruitment, they should have a labor allocation plan to prepare for employee migration within the organization

Admittedly, Company X can find other external sources of recruitment including public employment agencies, universities and colleges In particular, in the job center, it is an economical

method to recruit as the government provides various support packages to companies to reduce unemployment Furthermore, universities and colleges are a good source for the company to recruit highly educated, skilled employees Therefore, the company should consider more than two sources of external recruitment to improve the ability to recruit talented workers

Secondly, giving employees a clear career path will shed light on their following step Especially for high positions such as manager or department head, so the company should implement a communication culture to prepare the successors well before they take over the position It not only helps employees to be aware of future opportunities but also motivates them to put more effort into work and design their work path

2.2 Pay policy Salary is also a major consideration for practically all bachelors If an organization's policy compensation is higher than the existing salary for a job, it has a recruiting advantage As a result, firm X should investigate the situation right away

In terms of personnel policy, the firm is suggested to use the “lead-the-market pay strategies”

Besides creating a recruiting advantage when its pay is more than current market wages, this is one of the ways to retain workers because salary is always the priority consideration to most of the employees Though, this policy needs to apply flexibly based on the position and the current financial resource For example, for simple job placement, the salary will not be too high, and the employee taking that job needs to know that that level of salary is reasonable In addition, the

company can divide the newbies into small groups led by an experienced worker and use the “pay for group performance” policy to assist and motivate them

Il ACTION

Instead of prioritizing internal versus external recruiting, Company X should broaden its recruitment sources However, it is likely that it will be far more expensive Therefore, Company X should streamline its operations, which include choosing suitable recruiting sources to save unnecessary costs in the recruitment process Expanding recruiting sources to universities and public job centers is costly Besides, the HR Department has to appoint personnel to be in charge of these sources in order to assure the quality of recruiting candidates As a result, in order to spend money in these sources, firm X might cut off other sources, such as television and magazine ads, which may be less successful than the above sources

In the second place, the HR Department should conduct research on current market wages and then create its own competitive advantage in the salary area Because of the limited resources, it is clear that they cannot simply raise wages indiscriminately, so it must be carefully considered The majority of people work in order to make money As a result, even a small wage increase can strengthen employees’ ties to the company

Moreover, companies that put an excessive amount of emphasis on salary competition may lack organizational culture or other sources of incentive While pay can attract skilled personnel, it generally requires extra incentives to inspire great performance over time As a consequence, in order to motivate staff, Company X should improve its compensation policy and pay more attention to its employees’ personal lives in order to retain high-performing employees and keep them loyal For example, Company X can reward employees who have done the best job in a month or on a project by giving them a bonus or a short vacation with their families Furthermore, the company can offer flexible work hours or flextime to employees so that they can feel more at ease and relaxed while at work Besides, Company X should assist employees in developing their