RECRUITING AND SELECTING THE EMPLOYEES

1. RECRUITINGAND SELECTING THE EMPLOYEES Prepared by: Eva Marrine Sagune Imam Haryanto Rusdi

2. Human Resource Supply and Demand • A simplified explanation of forecasting labor demand and supply • Labor Supply –The availability of workers with the required skills to meet the firm’s labor demand. • Labor Demand – How many workers the organization will need in the future. • Human resource planning – The process an organization uses to ensure that it has the right amount and the right kind of people to deliver a particular level of output or services in the future.

3. HUMAN RESOURCE PLANNING

4. The Hiring Process • Recruitment • Selection • Socialization

5. Challenges in the Hiring Process • Determining the characteristics most important to performance • Measuring the characteristics that determine performance • Evaluating applicants motivation levels The motivation factor --- performance = ability x motivation • Who should make the selection decision?

6. Meeting the Challenges of Effective Staffing • Recruitment Sources of recruiting: • Current employees • Referrals from current employees • Former employees • Print and radio advertisements • Internet advertising and career sites • Employment agencies • Temporary workers • College recruiting • Customers • Nontraditional Recruiting

7. External vs. internal candidates • Recruiting protected classes • Planning the recruitment effort • Planning your job search

8. Selection • Reliability and validity • Selection tools as predictors of job performance • Combining predictors • Selection and the person/organization fit • Reactions to selection devices

9. Reliability – Consistency of measurement, usually across time but also across judges. • Validity – The extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview correspond to actual job performance.

10. Selection tools as predictors of job performance – • Letters of recommendation • Application forms • Ability tests • Personality tests • Psychology tests • Honesty tests • Interviews – structured • Assessment centers • Drug tests • Reference checks • Background checks • Handwriting analysis

11. Personality Tests • Extroversion • Agreeableness • Conscientiousness • Emotional stability • Openness to experience

12. Structured Job Interview • Situational Interview • Job Knowledge • Worker Requirements Questions

13. Unstructured Does not Mean Unprepared: Making the Most of the Hiring Interview Six Simple Tasks • Be prepared • Put applicants at ease in the first few minutes • Don’t be ruled by snap judgments or stereotypes • Ask results-oriented questions • Don’t underestimate the power of silence • Close the interview with care

14. Reactions to Selection Devices 1. Applicant reactions to selection devices 2. Manager reaction to selection systems

15. Legal Issues in Staffing • Develop clear policies on hiring as well as on disciplining and dismissing employees • Check state laws regarding hiring applicants with criminal records • Learn as much as possible about applicants’ past work-related behavior • Discrimination Laws • Affirmative Action • Negligent Hiring

16. CASE STUDY: RECRUITMENT AND SELECTION IN LOB CORPORATE BANKING BANK DANAMON

17. BACKGROUND • Established in 1956, PT Bank Danamon Indonesia, Tbk. is the third largest private national bank and the sixth largest commercial bank in Indonesia, with a 5% share of domestic loans and deposits • Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of Danamon. AFI is a consortium of Asia Financial Holding 85% (wholly owned by Temasek group) and Deutsche Bank AG 15%. • Temasek Holdings is a Singapore-based investment company which owns by Government of Singapore with AAA rating. The remaining of Danamon’s shares are publicly owned.

18. HUMAN RESOURCES HEAD HR Planning & Measurement Head HR Service Delivery Head HR Strategic Partner Head Human Capital Head Learning Group Head HRIS & Services Organization & Performance Management Employee Relation Sourcing, Assessment & Talent Management HR Region Remuneration HR Organization Chart

19. HR Policy on Recruitment and Selection • Established in BOD decision letter (SK) for bank wide as well as LOB, reviewed annually to follow business development. • The objective is to fulfill company needs align with the business plan of respective units with transparent, objective, and professional selection processes based on Man Power Planning (MPP). • Employee status to be hired: • Permanent staff • Contractual staff • Trainee • Outsourcing staff

20. General Policy, there are 2 reasons for recruitment and selection: • Staff additional for business development or man power deficiency • Staff replacement due to staff rotation, resign, pension, etc. • Take consideration on budget system established by Financial Control Department • No discrimination against applicant based on sex, race, etc. • Source or recruitment and selection: • Internal, trough job posting • External, with channel: advertising, referral, job fair, walk in applicant, agent (head hunter), or outsourcing/vendor (if needed)

21. Supply and Demand Condition 3 periods of condition: • Up to September 2008: Mass recruitment Mainly to support rapid growth of LOB SEMM (micro banking) • Consolidation period, October 2008 – mid 2009: • Stop/freeze recruitment from external • Internal sourcing (zero growth) • No contract extension • After consolidation period, mid 2009 onward: Selective recruitment from external sourcing only for key position, that has to align with specific business plan and subject to special approval from BOD

22. Hiring/Selection Process • Refer to HR budget system, the respective unit establish Man Power Form (FormulirKebutuhanPegawai). Any deviation should get approval from respective PIC in HR Head Office, and for certain level should get approval from BOD. • Recruitment and selection has to consider hard competency and soft competency supported by educational background, work experience, reference, and medical check-up. • Recruitment with direct familial relationship or marital relationship should be avoided. Any deviation should get approval from BOD.

23. Hiring/Selection Process • Responsibility in recruitment and selection: • Sourcing, Assessment & Talent Management for Head Office staff • HR Region for Regional and Branch staff • Selection process and PIC: • For Middle Line and Senior Management, mainly interviewed with 2-3 members incorporated with reference check and medical check-up. PIC is Sourcing, Assessment & Talent Management • For Clerical up to First Line Management, plus psycho test to measure attitude and personality (web based), also ability test if needed, with HR Region as PIC • Special tools (Gallup) for MT staff

24. Recruitment and Selection Evaluation • In annual basis • Performed by HR Head Office in coordination with respective LOB’s • Conveyed to HR Committee and respective LOB’s for process improvement

25. Recommendation • Performing recruitment and selection evaluation in comparing: • Citizenship: Foreign vs local staff • Staff’s original company: Foreign vs local bank In favor effectiveness, efficiency, Corporate culture building, and turnover, align with bank and policy. • Evaluation on staff sourcing, especially for internal, former staff, and referral with certain employment period, compare to existing staff (with longer employment period).

26. Thank You