Basic KPI / Statistic for Recruitment / Workforce Planning

29 Apr 2019: When managing your recruitment / workforce planning function, upper management will always request for a key performance indicator (KPI) to measure the effectiveness of your recruitment / workforce planning.

The most common KPIs / Statistic are: -

• Speed of Recruitment (number of days / lead time to close a position) - this method can be the easier if you have an Application Tracking System aka "ATS" to support the tracking e.g., (i) Operators recruitment is targeted at 60 days and computation start when the manpower requisition (MR) is approved until the candidate report for work; (ii) Manager is 120 days from MR is approved until the letter offer / appointment is signed.

• Cost Per Hiring. The formula ... adding together all the cost (listed below) and divided by the number of position recruited to get the average cost.
• Job advertisement cost 
• Recruitment technology e.g., ATS, online recruitment tool like "LinkedIn" and "Jobstreets"
• Employee referral rewards
• Travelling (e.g., taxi / flight ticket reimbursement to potential candidates; recruiter travelling & accommodation cost)
• Background / reference checks
• Relocation cost
• Recruiter "employment cost"

Note: The cost-per-hiring is also affected by the hiring methods adopted by the organization. Cost-per-hiring can also determine the organization decision to outsource the recruitment function, and assessing employee turnover impact on the recruitment cost.

(Source: Modified from HR360, 2018) 

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Workforce Planning Guideline / Steps

28 Apr 2019: Generic steps in Workforce Planning ... 

Definition of workforce planning: 
(i) Anticipating the organization workforce needs
(ii) Identify a processes / steps to build ideal workforce

Step #1: Gather Market Data

• Local employee rate
• Local community / potential workforce demographics
• Who is the competitors
• Global / national social, technological and economic trends
• Global / national political and legislative trends 

Reliable sources for market data and information: News; Industry Publication and Website; Networking Group; Government Agencies (e.g., Singapore Ministry of Manpower, Statistic Department, etc.)

Step #2: Analyzing The Organization

• Report on number of employee by job type / position
• Strategic important / value of each job / position
• Employees' skills inventory, knowledge, ability and experiences
• Teamwork and Leadership
• What are the specialized skill, expertise or qualification required by the organization
• Potential for Flexible Work Arrangement (FWA), e.g., telecommuting, compress workweek, part-timer, shorter work days / hours, stagger time report for work, etc.) 

Step #3: Supply and Demands

• Employees planning or going to retirement
• Employee turnover rate
• Potential for internal career opportunity (e.g., fill a position from within the organization)
• Input from upper management on staff / vacancies to meet short and long term business goals
• Position which cannot be filled internally (long term can be addressed by succession planning program)
• Potential employee who can be promoted
• Availability of potential candidates

Step #4: Develop Your Implementation Plan

• Timeline for filling open and anticipated position
• Job market trends
• Time to finalized job description and recruitment advertising

Step #5: Periodical Review of The Workforce Plan (e.g., Annual or Bi-annually)

• Take note and seek clarification when there are changes in ...

1. Staff ... turnover or newly created position
2. Management team
3. Economic
4. Physical location
5. New products and services

(Source: Modified from HR360, 2018)

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Harmonizing Benefits from a Post Merger and Acquisition Perspective

27 Apr 2019: I received a Whatsapp message from my ex-staff about what concept or model should he be applying if there is a need to harmonized benefits for 2 organizations in a post merger and acquisition situation. I shared with him that I don't have any concept or model but I have a checklist based on my last 2 working experiences (e.g., a french having a JV with a local Malaysian conglomerate; Swiss organization acquiring a UK organization).

Listed below are my checklist / key-points to consider: -

1. Understand the Post Merger and Acquisition agreement, check if the agreement cover the employ of existing employees or just buying the business only (this would mean the employee's employment will be terminated) and the new owner will have an options to offer re-employment to the former employees with a new employment terms and conditions.
2. Is the workforce unionism or none unionism?
3. Compare and identify both organization employment benefits.
4. Understand the country / local employment benefits that are governed by the local regulations. e.g., Employee in Indonesia is entitled to "long service holiday / leave" entitlement (it can be taken or buy-off) while Singapore and Malaysia does not have such regulated benefits.
5. Identify the employees' population of the newly merged / acquired workforce are under the scope of the union / under local employment act (EA) and those above the EA.
6. Identify special benefits approved by former employer or Personal-To-Holder (PTH) benefits.
7. Identify if the benefits are subjected to personal income tax, e.g., in Singapore Per Diem within IRAS (Inland Revenue Authority of Singapore) is tax exempted which in Malaysia, Per Diem is taxable under the JHDN (Jabatan Hasil Dalam Negeri).
8. Identify which employment benefits the new employer willing to "buy-off".
9. Obtain a reliable source (e.g., Mercer WBEG Report, Mercer Employment Benefits, etc.) on the local employment benefits.

The above checklist are just some of the key-points to consider. 

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