Reduce The Cost Of Honey Buns Human Resource Commerce Essay

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When the current chairman Herbert Chong and wife/CEO Michelle, founders and forefathers of one of Jamaicas most loved bakery Honey Bun, acquired a small bakery in Spanish Court, New Kingston in 1982, their ultimate aim was to feast on the opportunity the business idea possessed its eventual growth and it becoming family oriented company.

Three decades later the philosophy still holds true and has laid the platform for what is today a profitable company which has seen exploits on the Jamaica Stock Exchange. This has culminated in Honey Bun to developing business oriented, recognized and loved Jamaican brand, that is known locally and internationally for freshly baked, premium quality products.

Seeing that the company grew rapidly it begun to outgrow previous locations so the Chong's decided to seek a larger manufacturing space on East Street thus changing and redirecting their focus and strategies to exploiting the mass market. The inevitably resulted in the development of a variety driven line of packaged snacks, of such includes donuts, cupcakes, cinnamon rolls, breads pudding, burger breads amongst other snacks ultimately making the company being recognized as a Jamaican household delicacy.

By the year 2005, it was evident that Honey Bun had the potential to become an industry leader in the baking sector, and the Chong's looking for new ground to sow seeds of prosperity, this time the company's set up another location at 26 Retirement Crescent to meet the growing demand. This consisted of a specialized management staffing the factory space modern and retro-fitted with sophisticated bakery equipment and a highly specialized team, the company recognizing its growth it introduced another brand, Buccaneer Jamaica. Product development is one of the major helms of the company, with Honey Bun being recognized amongst the masses as driving the trend for innovative specialty value-added products such as cheese and raisin breads.

What was a small retail bakery with a handful of staff, has now evolved itself into a vibrant 24-hour, 7-day a week wholesale bakery, employing over 200 Jamaicans both staff wise and contracted delivering the brand daily to its many clients, practicing state of the art standards throughout its operation.

Honey Bun's commitment does not end with producing products and gaining profits, but stretches its hand to its strong socially responsible initiatives where the company has invested heavily in education as seen in its annual School Dayz Campaign, athletic and sporting sponsorships and consistent support of less poor and less fortunate with a program designed to provide them with meals.

Currently the brand is still held as a brand of superior quality, convenience and value widely regarded by many as Jamaica's number one bakery for taste in snacks, as is evidenced by the company being chosen for the National Quality Awards in both 2007 and 2008. The company serves key supermarkets chains, gas stations and small retail outlets locally, and selected outlets in the Caribbean, North America and Europe, the company is destined for international growth having been awarded the Jamaica Exporter's Association coveted Chairman's Award for Growing Exporters in 2008. Honey Bun is ultimately known in the baked goods market as "a little love in every bite" and recognized locally and internationally as an example of a strong, world class, brand of Jamaica.

Over the last 30 years, Honey Bun has been challenged, and in every situation has risen to the occasion through tremendous growth.


Selection of a particular individual for a role is certainly not an easy task it not only requires communication skills or technical expertise of an individual but a lot of many other requirements such as relevant experience, cultural fitment, certain personality characteristics of an individual, education and industry background and etc while recruitment predominantly lies in the production capacity of a given company and the relative processes and the range of operations, departments and specializations that the company may require an individual for factors that influence the recruitment process includes supply and demand, the political, social and legal environment, size of the firm and its relative growth and expansion. In this research/presentation, we are trying to discuss various factors that affect the selection and recruit process and we also have done a research into possible strategies and current strategies the company can employ to reduce the cost of its human resource. We have tried to cover as many factors as possible but we are afraid that we might not have covered all parameters. Most of the factors and parameters discussed in this research are relevant for experienced professionals and for middle and senior level positions in mid-size to large size local or multi-national and multi-cultured organizations. We have not covered domain specific and industry specific factors and to that extent this research is generic in nature and can be applied across various industries, domains and professions with little modification.

Glossary of Key terms

Human Resource, Business, Employment, Recruitment, Selection, Assessment.

Human resource:

1. The personnel of a business or organization, esp. when regarded as a significant asset.

2. The department of a business or organization that deals with the administration, management, and training of personnel.


1. a person's regular occupation, profession, or trade.

2. An activity that someone is engaged in.


the act or practice of employing something for a particular purpose


getting or enlisting people for a job or cause.


1. The action or fact of carefully choosing someone or something as being the best or most suitable.

2. A number of carefully chosen things.


The evaluation or estimation of the nature, quality, or ability of someone or something: "the assessment of educational needs".

Factors that influence the Selection Process

Relevant Experience

Relevant work experience is actually the most important factor when as it pertains to the HR selection method. Acquired work experience required by an employer as the job post depends solely on the available range of skills needed to carry out the duties of the position. HR Managers/personnel immediately look at job candidates' work experience by reviewing their curriculum vitae. Typically applicants without the available work experience are typically eliminated if other qualified individuals with the relevant experience can be source from the short listed. Typically most employers seek to hire candidates with experience within the scope of the position available because will save the company time and money in training a new employee.


Educational qualifications and the relative certifications also play an important role in a company's hiring decisions. Some job post requires a distinctive industry knowledge that is largely obtained through the matriculation of a degree program. For example, an institution seeking to hire a registered nurse will definitely likely require candidates possess a nursing degree for employment before consideration by the HR department. Educational achievement not only acts as a factor in making hiring decisions, but for some employers, the mode of education is also a factor. Some companies preference lies within candidates who graduated from certain top tier or top ranking colleges or universities, or some may hire individuals who accomplished there tertiary degree qualifications through an online process.


One of the major factors that influence the selection process for the human resource department is the geographical location of the job candidate. Most employees will seek to hire individuals that live in close proximity to area. Employers prefer to hire local potential employees because it hastens the hiring process and saves the employer money on the interviewing process and on relocation fees. Despite the fact that most employers look to hire local candidates to save time and money, some employers will seek to make the application process open to individuals living within and outside the workplace regions. Say local candidates fail to fulfill the employer's desired qualifications for the job, as with the HR department they initially seek outside candidates next before widening the search to national and global candidates.

Salary Requirements

The salary requirements of a job candidate influence the HR employment-selection process. Employers typically will set a maximum salary that corresponds with the relative job post. Candidates who seek a salary greater than what the employer typically is providing are inevitably eliminated from the selection process. Some companies will choose to negotiate the salary with attractive candidates because they desire to obtain their talents and skills for the growth and development of the organization. HR managers also are the ones who consider the present salary of a job candidate. If the candidate's current or previous salary is not competitive enough, an employer may not consider the candidate for the job.

Among all the factors that you may consider while accepting or rejecting an offer is the compensation and benefits package in offering.

Factors that influence the Recruitment Process

Factors Affecting Recruitment

General factors that affect recruitment in an organization:

Personnel Utilization

Employers avoid having to recruit new employees by simply monitoring the skills that there present staff possesses. For example, say that a company is opening a new sales division then they may be able to utilize the current skills of their present staff thus providing the startup sales professionals the new group will need.


Outsourcing/seeking activities that are not a company's key focus is an internal business practice that affects recruiting. Say a food processing company would hire an independent IT firm for the sole purpose of installing the company's computer networks because computers are not the food processing company's core competency. Since the company did not hire a professional IT professional this reduces the need to recruit an individual with the relative job description. The human resources department will have to shift resources away from recruiting for the outsourced functions, and focus on supplying employment candidates for the company's core business units.

Talent Pool

The organization will seek potential employees from the local community to satisfy employment recruiting needs. If there are changes to the local talent pool, the company may find it more difficult to recruit qualified candidates.


Companies within the same industry are competing for qualified candidates to ensure future growth. There is competition in the recruiting end of the business just as there is in selling products. One would need to analyze what the competition is offering new employees, and try to develop a competitive package to lure in the talent that they need.

Strategies to reduce the cost of Honey Bun's Human Resource

First priority Honey Bun could use to cut costs on its human resource, though it is somewhat of a new development for many managers and HR staff personnel, particularly if they had seen laying off staff as the only feasible means to cut cost on human resource would be, reducing turnover. Turnover is very burdensome on the financial resources of any given company, and if management does not have sound knowledge of the actual cost of turnover, the organization may be in a situation where it is inescapable to reduce it.

Another way Honey Bun could improve their human resource management and to cut cost on labour is to ensure that the HR manager designated for recruitment is efficiently trained and certified with the necessary experience in a similar scope of position in a similar company model. A database of CV's of prospective employees could be kept thus ensuring that the HR Manager spends a portion of his or her time on a weekly basis emailing prospective candidates from the searchable CV databases available on job boards. The searchable databases are what HR managers and job recruiters use every day.

The company could also institute a referral / finder's fee asking their own workers of prospective employees, in the manner as job agencies do. Another strategy they could utilize is to pay key staff 15% above market rates to their star employee this is a nominal strategy seeing that replacing them is 40-50% of their annual salary if you include agency fees - possible lost days in training and the employee who has contributed heavily to the overall development of the company walking through the door, probably to the competition.

The company could also Reduce Healthcare Costs. Of course, the most intuitive method of reducing healthcare costs involves shopping around for healthcare insurance. For example if they are using an old fashioned broker for years, the current provider of such services will be costly compared to a newer less expensive healthcare company.

Before the company cuts down on healthcare offerings for its employees, they must first consider eliminating dental and vision plans. Then after they have the right healthcare provider for the company, they can make adjustments to their plan to minimize costs. They should ask direct and concise information that will in turn pose to be beneficial to the company.

Switching to a higher deductible health plan is not always the most popular plan amongst the company's employees - but striking the right balance between deductible cost and premiums can save the company money while satisfying the needs of its employees without any lost on both parties; Honey Bun on whole should analyze who they are covering under their medical plans especially if the company is providing full insurance coverage for spouses and family members this might just be saving such expense from competitors and driving a hole in the companies pockets by taking in unnecessary expenses of their own.

A strategy most companies are utilizing is they are beginning to demand higher employee contributions for the coverage of their family members who can receive general medical coverage from through the company. Another strategy the company could use is to have the employee pay the full premium for their spouse who can receive coverage at their place of work; this will go a long way to reduce healthcare expenses.

Health and Wellness programs are now becoming popular in various business organizations; today most medium and large size businesses with backgrounds in various sectors and employing between 50-85 workers are drifting towards this focus. Implementing the right wellness program for Honey Buns employees can increase employees health and happiness while decreasing costs on pending healthcare cost.

Most employers are now seeing the evidence of the success of wellness programs improving their employee's happiness and productivity in the workplace and the favorable reduction in money wasted dealing with various health related sicknesses of their staff thus health insurance costs can be documented and proven.

Honey Bun can also reduce its cost on human resource by creating a healthy social atmosphere at the workplace as this strategy is shown to increase morale, camaraderie and increase the productivity of the employee. Many companies do this by hosting a number of social events where the employees come together to bask in each other's company and share in various activities.

Hosting competitive events such as sports competitions for employees can be a defining tool. This allows employees to get to know each other and have a deeper understanding of each other's roles and responsibilities and have a deeper appreciation for each other's welfare, a team building approach in the work environment, and overall a sense of loyalty for the company this will make them proud they work for a company that encourages its employees to have a friendly and collective approach to their work rather being individualistic in their work relations. This can be the key factor in determining whether an employee joins the company, stays grounded in a team oriented setting, or moving on the competitors company.

Improving the hiring practices of Honey Bun through the HR department can save the company much money and time. This would involve analyzing all CV's for a particular candidate who will maximize his or her strengths for the overall development of the company, the first time around, the long-term relationship of the potential employee should be the most vital factor whether he or she is added to the staff at Honey Bun. A detailed, comprehensive job description should be drawn out to highlight the important aspects of the position, as well as all activities that will be under their auspices; add additional requirements for the post including activities not relevant to the post available in order to test the flexibility of the potential candidate . This will ensure that the potential employee is informed of all of their responsibilities before the interview is even conducted.

By working strategically at creating a well defined job listing that quantifies the scope of the position it will most definitely yield candidates with higher quality, and thus ensures a job skill match as well. Offering competitive salaries will inevitably draw in higher quality human resource and thus rids the company of the unskilled talents and the pending cost of replacing such.

Optimizing HR operations and company policies can reduce costs while increasing employee satisfaction. By offering flexible work schedules for its employees this will increase morale and productivity. If employees are working too many hours, their level of productivity will decrease throughout the day. Allowing them to switch up their hours and come in at different periods of the day will ensure that they are working at their optimum levels and are properly rested. They must be offered competitive salaries as well. If a salary offered is way below industry standards for the same level of responsibility, potential star employees will be lost to the competition. Honey Bun could also provide their employee's incentives to boost productivity and encourage employees to take the extra step when trying to make a sale or ensuring quality in their work this will make every employee think twice before slacking off.

Another way Honey Bun could cut cost on its human resource is by integrating HR Technology this will save time and money by eliminating costly mistakes and introducing automation to manual processes. It is important to find competent, up to date, and fully integrated software to implement.

Implementing integrated time and attendance and employee scheduling software is low-hanging fruit in this department. Time and attendance software in particular has been shown to provide organizations with a significant return on investment (ROI).

Reducing the risk of expensive litigation can save Honey Bun's financial assets in the long run. The last thing the company would need in a recession type climate is to be sued by a former employee.

The company should know the risks, and plan ahead to rid the company of legal pitfalls. Know all of the laws and regulations for the company's industry and following them rigorously. A number of people will jump at the opportunity to sue the company for large amounts of money. To avoid lawsuits, documentation must be a key player in determining the company is caught in a litigation trap; record its defenses, such as warnings given to an employee or the fact that guidelines were given and broken one should not cite concerns, criticisms, or introspects on any particular employee.

Honey Bun could also reduce its cost on human resource by not allowing employees to work overtime. The workloads must be objectively and critically analyzed to evaluate the time that is required for tasks to be completed efficiently, identify streamlining opportunities, and improve proficiency amongst individual staff members.

Honey Bun could also adhere to a economical phenom most companies are familiarizing themselves with which is the use of contingent workers (people who are hired, as needed, to perform specific tasks, but are not employed by the company) in other words contracted staff, Honey Bun could utilize this as a means cutting cost on human resource seeing that the level of income being paid to contracted staff is way below the market value and at the same time contracted workers are not open to benefits as fulltime staff members.