RECRUITINGRECRUITING AND AND SELECTING SELECTING THE EMPLOYEESTHE EMPLOYEES

Prepared by:Prepared by:Eva Marrine SaguneEva Marrine SaguneImam HaryantoImam HaryantoRusdiRusdi

Human Resource Supply and DemandHuman Resource Supply and Demand

A simplified explanation of forecasting labor demand and A simplified explanation of forecasting labor demand and supplysupply

Labor SupplyLabor Supply – – The availability of workers with the The availability of workers with the required skills to meet the firm’s labor demand.required skills to meet the firm’s labor demand.

Labor DemandLabor Demand – How many workers the organization will – How many workers the organization will need in the future.need in the future.

Human resource planningHuman resource planning – The process an organization – The process an organization uses to uses to ensure that it has the right amount and the right ensure that it has the right amount and the right kind of people to deliver a particular level of output or kind of people to deliver a particular level of output or services in the future.services in the future.

HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

The Hiring ProcessThe Hiring Process

RecruitmentRecruitment

SelectionSelection

SocializationSocialization

Challenges in the Hiring ProcessChallenges in the Hiring Process

Determining the characteristics most important to Determining the characteristics most important to performanceperformance

Measuring the characteristics that determine performanceMeasuring the characteristics that determine performance Evaluating applicants motivation levelsEvaluating applicants motivation levels

The motivation factor --- performance = ability x motivationThe motivation factor --- performance = ability x motivation Who should make the selection decision?Who should make the selection decision?

Meeting the Challenges of Meeting the Challenges of Effective StaffingEffective Staffing

RecruitmentRecruitmentSources of recruiting:Sources of recruiting:

Current employeesCurrent employees Referrals from current employeesReferrals from current employees Former employeesFormer employees Print and radio advertisementsPrint and radio advertisements Internet advertising and career sitesInternet advertising and career sites Employment agenciesEmployment agencies Temporary workersTemporary workers College recruitingCollege recruiting CustomersCustomers

Nontraditional RecruitingNontraditional Recruiting

External vs. internal candidatesExternal vs. internal candidates Recruiting protected classesRecruiting protected classes

Planning the recruitment effortPlanning the recruitment effort Planning your job searchPlanning your job search

SelectionSelection

Reliability and validityReliability and validity Selection tools as predictors of job performanceSelection tools as predictors of job performance Combining predictorsCombining predictors Selection and the person/organization fitSelection and the person/organization fit Reactions to selection devicesReactions to selection devices

ReliabilityReliability – Consistency of measurement, usually across time – Consistency of measurement, usually across time but also across judges.but also across judges.

ValidityValidity – The extent to which the technique measures the – The extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, intended knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview it is the extent to which scores on a test or interview correspond to actual job performance.correspond to actual job performance.

Selection tools as predictors of job performance –Selection tools as predictors of job performance – Letters of recommendationLetters of recommendation Application formsApplication forms Ability testsAbility tests Personality testsPersonality tests Psychology testsPsychology tests Honesty testsHonesty tests Interviews – structuredInterviews – structured Assessment centersAssessment centers Drug testsDrug tests Reference checksReference checks Background checksBackground checks Handwriting analysisHandwriting analysis

Personality TestsPersonality Tests ExtroversionExtroversion AgreeablenessAgreeableness ConscientiousnessConscientiousness Emotional stabilityEmotional stability Openness to experienceOpenness to experience

Structured Job InterviewStructured Job Interview

Situational InterviewSituational Interview

Job Knowledge Job Knowledge

Worker Requirements Worker Requirements QuestionsQuestions

Unstructured Does not Mean Unprepared: Making Unstructured Does not Mean Unprepared: Making the Most of the Hiring Interviewthe Most of the Hiring Interview

Six Simple TasksSix Simple Tasks Be preparedBe prepared

Put applicants at ease in the first few minutesPut applicants at ease in the first few minutes Don’t be ruled by snap judgments or stereotypesDon’t be ruled by snap judgments or stereotypes

Ask results-oriented questionsAsk results-oriented questions Don’t underestimate the power of silenceDon’t underestimate the power of silence

Close the interview with careClose the interview with care

Reactions to Selection DevicesReactions to Selection Devices

1. Applicant reactions to selection devices1. Applicant reactions to selection devices

2. Manager reaction to selection systems2. Manager reaction to selection systems

Legal Issues in StaffingLegal Issues in Staffing

Discrimination LawsDiscrimination Laws

Affirmative ActionAffirmative Action

Negligent Hiring Negligent Hiring

Develop clear policies on hiring as Develop clear policies on hiring as well as on disciplining and well as on disciplining and dismissing employeesdismissing employees

Check state laws regarding hiring Check state laws regarding hiring applicants with criminal recordsapplicants with criminal records

Learn as much as possible about Learn as much as possible about applicants’ past work-related applicants’ past work-related behavior behavior

CASE STUDY:CASE STUDY:

RECRUITMENT AND SELECTION RECRUITMENT AND SELECTION IN LOB CORPORATE BANKING IN LOB CORPORATE BANKING

BANK DANAMONBANK DANAMON

BACKGROUNDBACKGROUND

Established in 1956, PT Bank Danamon Indonesia, Tbk. is the Established in 1956, PT Bank Danamon Indonesia, Tbk. is the third largest private national bank and the sixth largest third largest private national bank and the sixth largest commercial bank in Indonesia, with a 5% share of domestic commercial bank in Indonesia, with a 5% share of domestic loans and depositsloans and deposits

Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of Asia Financial Indonesia Pte. Ltd. (AFI) owns 67.87% of Danamon. AFI is a consortium of Asia Financial Holding 85% Danamon. AFI is a consortium of Asia Financial Holding 85% (wholly owned by Temasek group) and Deutsche (wholly owned by Temasek group) and Deutsche Bank AG Bank AG 15%. 15%.

Temasek Holdings is a Singapore-based investment company Temasek Holdings is a Singapore-based investment company which owns by Government of Singapore with AAA rating. which owns by Government of Singapore with AAA rating. The remaining of Danamon’s shares are publicly owned.The remaining of Danamon’s shares are publicly owned.

HR Organization ChartHR Organization Chart

HUMAN RESOURCES HEAD

Human Capital Head

Sourcing, Assessment &

Talent Management

Remuneration

Organization & Performance Management

Learning Group Head

HR Planning & Measurement

Head

HR Service Delivery Head

HR Strategic Partner Head

HRIS & Services

Employee Relation

HR Region

HR Policy on HR Policy on Recruitment and SelectionRecruitment and Selection

Established in BOD decision letter (SK) for bank wide as well Established in BOD decision letter (SK) for bank wide as well as LOB, reviewed annually to follow business development.as LOB, reviewed annually to follow business development.

The objective is to fulfill company needs align with the The objective is to fulfill company needs align with the business plan of respective units with transparent, objective, business plan of respective units with transparent, objective, and professional selection processes based on Man Power and professional selection processes based on Man Power Planning (MPP).Planning (MPP).

Employee status to be hired:Employee status to be hired: Permanent staffPermanent staff Contractual staffContractual staff TraineeTrainee Outsourcing staffOutsourcing staff

General Policy, there are 2 reasons for recruitment and selection:General Policy, there are 2 reasons for recruitment and selection: Staff additional for business development or man power Staff additional for business development or man power

deficiencydeficiency Staff replacement due to staff rotation, resign, pension, etc.Staff replacement due to staff rotation, resign, pension, etc.

Take consideration on budget system established by Financial Control Take consideration on budget system established by Financial Control DepartmentDepartment

No discrimination against applicant based on sex, race, etc. No discrimination against applicant based on sex, race, etc. Source or recruitment and selection:Source or recruitment and selection:

Internal, trough job posting Internal, trough job posting External, with channel: advertising, referral, job fair, walk in External, with channel: advertising, referral, job fair, walk in

applicant, agent (head hunter), or outsourcing/vendor (if applicant, agent (head hunter), or outsourcing/vendor (if needed) needed)

Supply and Demand ConditionSupply and Demand Condition3 periods of condition:3 periods of condition: Up to September 2008: Mass recruitmentUp to September 2008: Mass recruitment

Mainly to support rapid growth of LOB SEMM (micro banking)Mainly to support rapid growth of LOB SEMM (micro banking) Consolidation period, October 2008 – mid 2009: Consolidation period, October 2008 – mid 2009:

Stop/freeze recruitment from externalStop/freeze recruitment from external Internal sourcing (zero growth)Internal sourcing (zero growth) No contract extension No contract extension

After consolidation period, mid 2009 onward: Selective After consolidation period, mid 2009 onward: Selective recruitment from external sourcing only for key position, that recruitment from external sourcing only for key position, that has to align with specific business plan and subject to special has to align with specific business plan and subject to special approval from BODapproval from BOD

Hiring/Selection ProcessHiring/Selection Process

Refer to HR budget system, the respective unit establish Man Refer to HR budget system, the respective unit establish Man Power Form (Formulir Kebutuhan Pegawai). Any deviation Power Form (Formulir Kebutuhan Pegawai). Any deviation should get approval from respective PIC in HR Head Office, should get approval from respective PIC in HR Head Office, and for certain level should get approval from BOD. and for certain level should get approval from BOD.

Recruitment and selection has to consider hard competency Recruitment and selection has to consider hard competency and soft competency supported by educational background, and soft competency supported by educational background, work experience, reference, and medical check-up.work experience, reference, and medical check-up.

Recruitment with direct familial relationship or marital Recruitment with direct familial relationship or marital relationship should be avoided. Any deviation should get relationship should be avoided. Any deviation should get approval from BOD.approval from BOD.

Hiring/Selection ProcessHiring/Selection Process Responsibility in recruitment and selection:Responsibility in recruitment and selection:

Sourcing, Assessment & Talent Management for Head Sourcing, Assessment & Talent Management for Head Office staffOffice staff

HR Region for Regional and Branch staffHR Region for Regional and Branch staff Selection process and PIC:Selection process and PIC:

For Middle Line and Senior Management, mainly For Middle Line and Senior Management, mainly interviewed with 2-3 members incorporated with interviewed with 2-3 members incorporated with reference check and medical check-up. PIC is Sourcing, reference check and medical check-up. PIC is Sourcing, Assessment & Talent Management Assessment & Talent Management

For Clerical up to First Line Management, plus psycho For Clerical up to First Line Management, plus psycho test to measure attitude and personality (web based), test to measure attitude and personality (web based), also ability test if needed, with HR Region as PICalso ability test if needed, with HR Region as PIC

Special tools (Gallup) for MT staffSpecial tools (Gallup) for MT staff

Recruitment and Selection EvaluationRecruitment and Selection Evaluation

In annual basisIn annual basis Performed by HR Head Office in coordination with respective Performed by HR Head Office in coordination with respective

LOB’sLOB’s Conveyed to HR Committee and respective LOB’s for process Conveyed to HR Committee and respective LOB’s for process

improvement improvement

RecommendationRecommendation

Performing recruitment and selection evaluation in Performing recruitment and selection evaluation in comparing:comparing:

Citizenship: Foreign vs local staffCitizenship: Foreign vs local staff Staff’s original company: Foreign vs local bankStaff’s original company: Foreign vs local bank

In favor effectiveness, efficiency, Corporate culture building, In favor effectiveness, efficiency, Corporate culture building, and turnover, align with bank and policy.and turnover, align with bank and policy.

Evaluation on staff sourcing, especially for internal, former Evaluation on staff sourcing, especially for internal, former staff, and referral with certain employment period, compare staff, and referral with certain employment period, compare to existing staff (with longer employment period).to existing staff (with longer employment period).

Thank YouThank You