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This paper examines The Nova Scotia Bank of Jamaica and its human resources functions, especially as it relates to recruitment and selection, it also seeks to identifying strategies that can be used to reduce the cost if its human resource.
Human Resource involves all management decisions and practices that directly affects or influence the people or human resource who works for the organization; they deal with the administration, management and training of personnel. The human resource manager has to perform the entire critical role in the life of any business.
The Bank of Nova Scotia was founded in Jamaica in 1889 which first started out with one banking office located in Kingston, Jamaica but has now gradually developed with forty-two branched situated across the island. The organization consists of over one thousand, six hundred employees. The Bank of Nova Scotia provides their customers with high standard services which over time developed a remarkable reputation within the eyes of the public. (Worldwide Relators Company Limited, 2001-2009) Their commitment to customers "You're Safe with Us" is more than just their slogan, it supports the experience and stability of centuries progressive and constant banking operations in Jamaica. When recruiting individuals within this particular organization for a job, vacancies are first posted within the organization internally through emails to their existing employees or members. If the vacancy is still not filled the firm then externally advertises the vacant position in various newspapers and on their official website according to a representative at the St. Ann's Bay branch. The Bank of Nova Scotia has a Staff Training Centre for its employees. New recruits are sent on an orientation course which basically teaches them the history of the company, the expectations of the organizations, the mission statement of the business, the core values, service standards and more. First the recruits have to their training through online courses, then and understudy of an existing member of any branch and after that they would basically work on their own.
Factors that influence human resource functions
After assessing the Nova Scotia Bank of Jamaica, we found out that there are several factors that influence their human resource functions, namely:
Competition - Competition in the human resources department is different from other departments in the organization. When it comes to finding individuals with the right capabilities, the organization competes with other organization within the vicinity. Scotia is a very popular organization, which gives them an edge over other companies in finding well qualified employees.
Work Experience - This is a period of time that someone, especially young individuals spend working somewhere in order to gain experience of a particular type of job.
Advantages of Work Experience
At Scotia they mainly select candidates with relevant work experience so as to save the company's time and capital required to provide training services. This method is used by HR's when selecting and recruiting workers.
Reduces employee turnover by hiring qualified candidates. According to the Online Business Dictionary Labor Turnover refers to the percentage of the number of employees that leave a company due to a number of reasons to reduce the cost of human resources. When we put the Scotia Human Resources Department in place with labor turnover; dislocated workers, organizational structure, recruitment and job design all have an impact on the turnover.
Disadvantages of Work Experience
Members without relevant work experience are automatically rejected from the job selection process.
Hiring candidates without work experience will cost the organization time and money for training staff members.
Salary Requirement - A salary requirement is the amount of monetary value an individual would require to work for a particular job position. In some circumstances employers may sometime ask job applicants for a reasonable or appropriate salary requirement when applying for the position which can be negotiated. This requirement is usually submitted in a brief context within their cover letters.
Advantage of Salary Requirement
Candidates are sometime able to negotiate a required salary based on their skills and qualification.
Disadvantages of Salary Requirement
Job applicants who require a salary that is higher than what the employer has to offer are automatically removed selection process.
Organization may suffer a loss from not hiring well qualified candidates because of their inability to compensate them based on their skills, qualification and potential.
Technology -In today's time, the world, without a doubt has significantly changed from one rank to another. New conceptions are now coming in to play to positively improve the lives of individuals. Nowadays, technology has improved tremendously. One cannot envision life without the use of technological inventions such as machines, computers, radios, televisions and others. The Bank of Nova Scotia utilized technological means in gaining the competitive advantage of the market. It assists the process of recruiting employees as well as influences the communication between the managers and employees in order to gain access to human resource information.
Technology has several impacts on the Human Resource functions. Some of which may include:
Training & development
Payroll & attendance records
Employee benefits etc
The major disadvantage of the use of technology on Human Resource is that the dependency level on technology has increased which would result in the decrease of face to face interaction between the HR and applicants.
HR is all about administering individuals, which requires face to face communication with humans. Aspects between human resources and technology must be properly monitored and controlled.
Technological obsolescence also stands as a threat. Obsolescence arises very fast that the information becomes dependent on these obsolete technologies which in some circumstances are unable to be accessed. Therefore, the HR technology systems, if not monitored and controlled will create complications.
Education - Human Resources specialists have various roles, duties and responsibilities in order to ensure that requirements in relation to education vary. At Scotia, it is a must that the candidate require be knowledgeable in accounts, mathematics and English
Demographic changes refer to aspects such as age, population, structure of work forces and more. A number of individuals retire yearly. A new group of graduates with qualifications and experience turns out yearly. This can alternate the appointment or the removal in the company.
Legislation - This dictates how long an organization must retain personnel records and employee data, what can be stored and how. Eg. The health act among others place obligations on employers to safe guard the confidentiality of employee medical information and to make sure company mangers operate within the confines of the law.
Strategies to Reduce the Cost of Human Resources
By defining what is core an organization can now ruthlessly prioritize HR activity and minimize their fixed costs. Core HR functions include those activities which must be delivered in order for the business to manage its people on a day to day basis. These include HR administration, payroll, employee and industrial relations, business planning, people risk management and management information. The core functions can be delivered in a more streamlined way while other non-core functions such as learning and recruitment can be procured on a flexible basis as and when needed. (deloitte)
Ways of reducing HR cost:
Provide incentives and/or benefits to existing employees - such as rewards and recognition to express your appreciation towards them to reassure them staying with the company instead of having to recruit new members and train them.
Hiring Freezes - hiring new employees while cutting jobs at the same time. A hiring freeze constitutes a mild form of downsizing and reduces labor costs in the short term.
Hiring on a Contractual Basis - Hiring on this basis is cheaper rather than hiring full time. As recession deepens and lengthens many employees would accept a pay cut as preferable to redundancy. (deloitte)
By making it a half virtue company - A virtual company is that company that employs electronic means to transact business
Downsizing or reducing the amount of H R departments. Scotia has a human resource department at each location; they can reduce the cost by having less or one central HR department.
Increasing the use of technology - this is where they can have services been offered online for eg. Online banking.
Some other ways is to reduce health care cost by implement health and wellness program, by improve hiring and by having standardized government polices