Running head: STRATEGIC MANAGEMENT PLAN - RECRUITMENT AND 1

Strategic Management Plan - Recruitment and Retention

Jamie Cook, Lori Faye, Tim Martin, Jemima Otubuah, Steven Smith, Cat Stuart

University of Phoenix

HRM/532

Didier Opotowsky

August 09, 2010

STRATEGIC MANAGEMENT PLAN - RECRUITMENT AND 2

Abstract

In this paper, Team C constructs many analyses with respect to recruiting and retaining

employees in anticipation for the impending variables in staffing of the State of New Jersey,

owing to retirements, automation and potential workforce reduction. With a focus on the state’s

budget deficit, the Team identifies the strengths and weaknesses of New Jersey’s current

recruiting practices and makes recommendations capable of redefining the state’s workforce.
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Strategic Management Plan - Recruitment and Retention

Today’s business environment is challenged by rapid changes in technology and

economic downturns, bringing with them many uncertainties, that compel organizations in both

private and public sectors to assess operations of their industries for sustainability and viability.

An initial step in this direction is a critical assessment of the organization’s mission, goals and

human capital. Innovative technologies and the retirement of baby boomers in the 21st century

will not only direct future trends of many business practices, but will determine the survival of

most organizations in this new era.

For the State of New Jersey, a decentralized recruitment approach would be the best

strategy to use. “Decentralized recruitment and selection is traditionally likely to occur in

agencies that are relatively small, for which recruitment needs are limited, and where each

agency employs different types of workers” (Klingner, Nalbandian, & Llorens, 2010, p. 191). A

decentralized strategy allows each department to recruit for their open positions, rather than

leaving that up to a central human resources department. This allows each department to have

greater control over the selection of their employees.

The current advertising strategy New Jersey uses to recruit employees is effective. After

reviewing the State of New Jersey’s website, the employment section is easy to find from the

home page; it is easy to navigate because of sections titled “Job Seekers” and “Find a Job in New

Jersey.” “New Jersey's One-Stop Career Centers are staffed with qualified professionals who

can assist with obtaining employment or the training you need to meet the demands of our

present workforce” (The New Jersey Department of Labor and Workforce Development, n.d.).

Interviews are an important part of the selection process and should be conducted to evaluate

candidate’s interpersonal skills. All candidates who successfully pass the examination should be
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interviewed. Supervisors and managers must be sure interviews are conducted fairly. Selection

of candidates should be done after personal and professional references are checked and a

criminal background check is performed.

Employee retention is imperative for every organization, and compensation plans are a

huge part of it. A good compensation strategy should have a balance between internal equity and

external competitiveness. Each employee is unique and will have individual needs and will view

compensation differently. There are several theories on how an employee views compensation.

The expectancy theory suggests that employees expect that by doing something different or

trying harder, he or she can improve their performance. Better performance will lead to more

compensation and the employee must believe the higher compensation or reward warrants the

extra effort they have put in (Dresang, 2009). In the theory of equity, employees will compare

the level of compensation against one another’s performance. Employees must perceive a

positive relationship between performance and pay with the usefulness of the various

contributions she makes (Dresang, 2009). Combining the two theories helps employers to create

compensation policies and procedures that will establish fairness and high-performance.

The three types of compensation include direct financial, indirect financial or non-

financial compensation. Direct compensation would include salaries, bonuses, wages, and

commissions at regular and consistent intervals, while in-direct refers to retirement plans, leaves,

education benefits, and employee services. Non-financial compensation refers to advancement

opportunities, recognition opportunities, career development, and positive work environment.

Building a fair compensation is an important facet to attracting and retaining employees.

A compensation package should tie salary in with a person’s experience and skill with increases

determined by performance. If an employer cannot offer competitive pay, allowing flexible

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work schedules may be an incentive. Some companies are also able to offer perks such as

discounts on products and use of company cars. One of the keys that attract and keep employees

occurs when employees believe their compensations will help take care of them and their

families; this can lead to increased productivity and employee effectiveness.

An example of a compensation plan affecting recruitment and retention of employees is a

performance-based compensation plan. If a company is looking to attract high performers, they

may offer this type of plan. Although this plan may highlight the difference between high and

low performers, the company could suffer a setback when high performers leave (Ho, Lee & Wu,

2009). Performance-based compensation can also cause employees to falsify their information to

earn compensation. In the early 1990s, Sears adopted a commission-based compensation plan for

its auto repair salesperson. Some of the salespersons would falsely diagnose higher cost issues

with the cars, resulting in lawsuit settlements. (Ho, Lee & Wu, 2009).

New Jersey’s government employs more than 80,000 full-time and part-time employees;

their salaries take up a large part of the State’s budget. According to the Fiscal Budget for 2011,

New Jersey has several problems surrounding a $10.7 billion deficit. To trim the budget,

officials in New Jersey can reduce operating cost for its 69 agencies by lowering the number of

state employees. To lower operating cost, officials can use select strategies to downsize the

workforce and maintain a goal-oriented approach to customer service (Budget in Brief). The

select strategies are organization, staffing, employment development, and contracting (Dresang,

2009).

The organization strategy approach restructures an agency’s employees by using changes

in technology and matching the skills of current employees to agency needs. State agencies in

New Jersey can use computer programs to replace secretarial staff and identify employees with
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specialized skills to replace other workers, saving the agency on time completed tasks (Dresang,

2010). This staffing strategy revolves around meeting organizational objectives by identifying

what kinds of personnel each agency will need to meet citizen’s needs. The first step is for

officials in New Jersey to identify what each specific agency provides citizens. Officials then

need to determine how many employees and what type of employee each agency will need to

meet its goal (Dresang, 2010).

Officials in New Jersey can reduce employee cost by cross-training current employees.

Officials must remember to follow state and federal laws and bargaining agreements when

promoting or transferring employees. After filling positions opened by employees retiring,

agencies can then re-structure the organization. If new employees are required, agencies should

recruit and hire the right employees who have the skills needed to advance the agency toward

goal completion (Dresang, 2010).

Another strategy New Jersey officials can use is employment development: training

current employees with specialized trainers or training programs. By using training programs to

educate employees in multitasking and working with new technology tasks will be completed

more rapidly and cheaper. If employees are multifaceted, agencies will be able to lower the

number of workers by not having to have one employee for every task (Dresang, 2010).

Employment development can raise morale and retain employees who felt stuck in their current

position by providing desired training (The importance of maintaining morale).

Contracting is a select strategy that allows officials in New Jersey to privatize tasks

(Dresang, 2010). Privatizing jobs saves New Jersey money by not having to pay union-

negotiated salaries and benefits provided to state employees. New Jersey has already identified

over 40 services that could save $210 million each year; and the trend is continuing (Reitmeyer,
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2010).

The select strategies mentioned could reduce operating cost for the state. The challenge

officials must face is continuing to provide goal oriented services to the citizens with a reduced

workforce. To meet this challenge, leaders must “right-size” rather than “down-size.”

Analysis of the critical variables that need to be considered as part of a successful

implementation of a Succession Plan is necessary. Identifying the critical variables that need to

be considered to overcome challenges and succeed in our objective is the first step to success. A

detailed analysis of those variables is the next step.

Technological considerations will be vital to planning. It is important to not have to fill

all the positions being vacated because of retirement, resignations, and promotions. According

to the text Personnel Management in Government Agencies and Nonprofit Organizations, “given

the number of baby boomers, it is almost inevitable that agencies....will have to consider not

filling every vacancy and doing their work in a different way. Organizational assessments may

suggest redesigning workflow. New technologies may be the answer (Dresang, 2009).”

Technology can help to fill-in certain positions, and it can allow employees the ability to take

computers to remote locations giving them the ability to work somewhere other than the office.

If the State relies more on computers and remote technology to then there is no need to

replace every exiting employee. Using remote access of lower security and non-critical duties

gives employees the capability to work smarter. Embracing new objectives increases the need for

new technologies.

Matching jobs with the skills and skill sets required is important. Position analyses are

critical to developing an inventory of the skills (Dresang, 2009). During the analysis phase, it

will be important to make a detailed list of each position as will be done during and after the
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implementation of the planning outcomes, and to also do an analysis of what each individual

employee’s skill set is (Dresang,2009). During this time, an analysis of employees’ levels of

motivation can be completed.

As a government agency, it is necessary to adhere to established legal standards. The

state must research legal mandates to ensure that all procedures comply with federal Codes and

state General Statutes. To err in this dimension causes undue settlement expenses and degrades

the image of the agency.

Workflow analysis is another point of consideration. Given the employment situation

many employers in both sectors are faced with, succession planning becomes a necessary tool to

face employee challenges ahead. Increased reliance on older workers or employees with family

responsibilities may generate a need for redefining how and when work is done (Dresang, 2009).

The early part of the 21st Century, will be marked by unprecedented transformation

spawned by rapid and emergent technologies, competitive global trading, dynamic changes in

business operations, and a self-serving workforce to which all states must contend. When baby

boomers, known for their “corporate loyalty and strong work ethic retire, to be succeeded by

Generations X and Y, Moskal (2008) advises, “ corporate policies and practices need to be

revised to reflect both the different values of these younger generations and changes in the

market place (para. 2).” Ideal succession planning will recognize the need to assess core

competencies of employees, the organization and its operations prior to the anticipated changes.

According to Fulmer (2002), succession management “requires an ongoing commitment of top

executives, divisional HR Staff, and succession management specialists (para. 6).” An ideal

succession plan for New Jersey will need to:

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• establish criteria needed to fill critical positions

• focus attention in retaining core competencies of skilled employees in anticipation of

retirements or workforce reduction

• assess and match employees’ competencies to current and future needs of the State

• define the assessment to maintain continuity of operations to effect longevity of the

State’s public service delivery in a changing global and competitive business

environments

• prepare and retain leadership capable of managing the future workforce in State

government

• determine motivation needs to assist in recruitment and retention of public employees

• determine strengths and weaknesses of the workforce, managers and public officials

employed by the State of New Jersey

To identify the core competencies and skills, the state must use any of the following means

through testing, questionnaire, feedback, computer-aided assessment tools, college-based

research or consultants to:

• Identify the skills, knowledge and competencies of incumbent employees at all levels of

the agency, including those with leadership potential

• Identify core competencies of the agency’s operations

• Evaluate knowledge, skills and competencies of employees in the competition

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• Evaluate future market trends to align with agency goals

• HR staff must record all tests, assessments, knowledge and skills, competencies for future

recruitment and retention purposes.

Once the plan is implemented, line supervisors would provide feedback to management to

determine the strengths and weaknesses of the assessments. The monitoring should be

continuous.

Strategies aimed at decentralization in recruitment will facilitate proper control in the

hiring process within each agency. Attractive benefits and compensation packages set to charm

highly-skilled candidates; and cross-training employees to retain talent and existing

competencies will enhance the strategic approach necessary to recruit and retain employees.

Lastly, privatization will reduce the cost of some professional skills unattainable within an

agency. These strategies and recommendations will equip the state in overcoming the challenges

posed by the unstable trends, as the new era unfolds.

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References

Anonymous, The importance of maintaining morale. (2010, August). NZ Business, 24(7), 8. Retrieved

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Dresang, D. L. (2009). Personnel Management in Government Agencies and Nonprofit

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Fulmer, R. M. (2002). Choose tomorrow’s leaders today: Succession planning rooms firms for success.

Graziadio Business Report. Volume 5, Issue 1. A web Article. Retrieved August 5, 2010.

Ho, J.L., Lee, L. and Wu, A. (2009). How Changes in Compensation Plans Affect Employee

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Klingner, D. E., Nalbandian, J., & Llorens, J. (2010). Public Personnel Management (6th ed.). :

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