CHAPTER II

THEORETICAL FRAMEWORK

2.1. THEORETICAL BASE.

2.1.1. EFFECT OF STAFF TURNOVER ON MANAGEMENT

COSTS OF TS CONTRACTORS SAC–2018.

The term 'Effect of Employee Turnover on Cost Management' according to

it is used to define the fluctuation of personnel within an organization and its
environment; in exchange for the correct need to relate it to a management of
appropriate costs, this means that the fluctuation between an organization and the
environment is defined by the volume of people entering
organization or that of those who leave it. The turnover of personnel is expressed
through the percentage relationship between admissions and withdrawals, and the average
of the workers who belong to the organization in a certain period.

As an open system, the organization is characterized by the incessant flow of

necessary resources to develop their operations and generate results. For
one part, the organization "Importa" resources and energy from the environment, the
which are processed and transformed within the organization. On the other hand
the organization 'exports' the results of its operations to the environment.
Among the inputs that the organization 'imports' from the environment and the results
that "exports" must have a certain dynamic balance capable of maintaining the
operations of the transformation process at satisfactory levels and
controlled. (A., 1998)

Staff rotation may be intended to equip the system with new

resources (greater inputs than outputs) to boost operations and
increase the results or reduce the size of the system (larger outputs than
entries) to decrease operations and results.

In every company, to reduce expenses it is important to analyze the processes.

from different areas and being open to perfecting them, because there is always
alternatives to improve. In most companies, the expenses are the most
high can be considered strategic: the payroll and costs of
production. While operating expenses may not be seen as
a category from which significant savings could be derived, however, a
real reduction of operating costs of a company can increase its
net income up to double. (CHUMPITAZI, 2014)

Per diem, printing, business cards, stationery, cafeteria, supplies

cleaning, messaging, meals, corporate gifts, and everything that is
requires within a company for it to function, are some
operating expenses that are spread across various areas of a
company. Therefore, ensure that these are used correctly in
especially in support areas such as administration, security, logistics, etc.

The reduction of expenses aims to maximize resources and achieve

greater efficiency in a company. Some steps to consider to initiate this
process.

1. Knowing the operating expenses and thinking that reducing them will have a benefit
immediate in the income statements.

2. Define the company's needs, establish what the business requires and in
What areas are thought to be overspent.

3. Observe the market. Remember that you must satisfy it and there may be things
that can be improved from the inside out.

It is important to ask the following questions, with the support of the leaders of
the areas:

What is the money invested in?

What is the objective being pursued?

How does the company benefit?

Once the expenditure is understood, the next step is to delegate the responsibility of
process to the finance department or to the general management. Another useful tool
is to have the weekly and monthly statistics of the department of
purchases and other key areas.
To reduce expenses, there are no general rules. On the contrary, "each case is
different and each process is a case. Savings or reductions cannot be applied
of certain material to the entire company, because it may affect salespeople
to customers. This will be counterproductive in the long term." (CHUMPITAZI, 2014)

2.1.2. TYPES OF ROTATION

a) INTERNAL ROTATION

It is the one in which employees do not leave the company but rather change.
of position but within the same. There are several types.

Transfer: it is a stable change to another position, but without further

neither salary nor higher hierarchy.

Promotions: it would be the change of position for a worker. This implies a

position and a salary of greater importance.
Promotions: it is understood as an increase in category, that is,
salary increase but without changing position.
Demotions: when moving from a position of greater importance and
salary to another that assumes inferior characteristics.

b) EXTERNAL ROTATION

It refers to the entry and exit of people from the organization. This type is
in cases such as; the death of the employee, retirement, disability
permanent, dismissal, bad selection, etc.

c) Voluntary staff turnover

It occurs when the worker voluntarily resigns from the position. This
it may happen because he/she has found another higher position or simply
another position that convinces him more. Each case is a world, but it is very

It is important to analyze the causes to know if something is not working

how it should be in your company; whether it's team compatibility, culture
of the company, the benefits you are providing to your employees, etc.

Many of the causes of voluntary employee turnover are related to

with the image that the company gives to its employees. When the
workers are happy with their day-to-day, feel valued and do
the tasks that are expected for your position, there are fewer chances to
let them go to another company.

That's why, if you notice that some employees decide to take advantage of another

opportunity or directly stop working at your company, it's time to

you consider what the problem might be, and think of a solution for
loyalty to your employees. You should also consider if it is a
root problem, such as hiring the wrong people
for your organization, that do not share the same values or do not feel
motivated by the company's purpose.

Voluntary turnover occurs when employees leave on their own.

will. Employees who resign, retire, or
they simply leave the organization for other reasons are counted in the
analysis of business turnover as voluntary turnover. The wear and tear
it is often part of the turnover analysis. Human resources experts
humans define desertion as a decrease in the workforce
for voluntary exits. The difference between wear and rotation
Voluntary means that employers do not replace employees who leave.
due to wear. While there may be some cases of rotation
voluntary if employees are not satisfied, a number of employees
they resign for reasons unrelated to the working conditions. Examples of
voluntary turnover for non-work reasons are employees who leave
their jobs to travel with their spouses or students who leave the
work to return to school

d) Involuntary staff turnover

It is the one that occurs without the initiative being from the worker themselves, but from the

company. This may involve a restructuring of the staff or by

an unfavorable evaluation of your work, but it is not a decision of the
own worker. It is also important to analyze this type of turnover.
because it may be indicating that you have problems in the template or in
the selection processes.
 Involuntary turnover occurs when employers terminate an employee.
employee or they ask an employee to resign. The latter can be
ultimately considered as voluntary turnover. However, the
initial decision is to carry out an involuntary rotation. When the
employees are fired for violating work policies, under
performance or slowdown of the activity, the item is considered
involuntary. Some examples of involuntary rotation can cause
unease among the remaining employees. The employees who are witnesses
Regular involuntary rotation or terminations may be concerning.
for their own job security. Other terminations of the
employees can be a relief for the remaining employees, whose morale
and productivity suffered when employees affect the work environment.

e) Desired Rotation
The desirable rotation occurs when experiences change the
workforce due to new employees who bring ideas and
new perspectives to the company replace the workers who
they were fired for low performance. The entry of new talents in
an organization can reactivate the workplace, productivity and
boost profitability. Employers can initially be
apprehensive about this type of turnover figure, simply because the
The word rotation has a negative connotation. The substitution of a
stagnant labor can be costly, although, ultimately,
employers realize the performance of investing in processes
of recruitment and selection of new and completely employees
committed

Negative Rotation
Negative rotation is often known as undesirable. It is easy.
understand why it is considered that way when employees leave under
a cloud of circumstances, such as suggested unjustified dismissal, the
mass exodus of dissatisfied workers or labor conflicts. The
mass layoffs, company closures, and plant shutdowns can also
to be classified as negative or undesirable rotation (The dismissal has a
 devastating impact on workers and the surrounding community.
The negative effects of job loss in certain areas
they can create a downward spiral effect of the conditions
economic conditions of employees from other companies in the area. For example,
when employees suffer job loss due to the closure of a
plant, the surrounding companies that provide services such as
meals and other lunch and break services on time as well
they suffer from loss of income.

2.1.3. THE EFFECTS

When analyzing the causes of talent leaving your company, you must
analyze each specific case, but you should also perform an analysis of some
essential aspects of your company that may be behind this turnover.
These are some of the most common causes:

Poor supervision of work

Hierarchically organizing the work is a way to control performance

the company and detect when something is not going as expected. The
supervisors are the ones who analyze the work together and detect problems
or possible deviations. When there is inadequate supervision, there can be
problems may arise with employees or absences that can lead to a dismissal. It
It is better to be clear about each person's job in order to be able to focus on
personal objectives and, above all, company and team objectives.

A bad work environment

If the relationship between colleagues is not good, employees are not going to feel
comfortable going to work day after day. Disputes between colleagues or with
bosses are a reason for job turnover, which is why it is necessary to create a climate of

healthy work that encourages personal growth. (Almeda, 2016)

In the following image, you can see how Spotify brings its team together and builds loyalty.

talent under shared values. And if you already look closely, you will see that in the
First comment, there is a candidate who tells them that he has just registered.
to the offers (attraction and loyalty, two in one).

The purpose of the company does not fit.

Now more than ever, employees seek to feel identified with the
purpose of the company they work for. To give a clear example, if I am
a person who fights against global warming I would like to work with
Tesla. If I am working for a company that does not fight for the environment.
environment, I won't mind leaving at the slightest opportunity. (Almeda, 2016)

The lack of personal and professional growth

Those workers who are in a company where they cannot fulfill

their aspirations, in which they do not feel fulfilled or are not growing
professionally, they may eventually get tired and look for another opportunity. If not

you can offer them a job that motivates them and helps them grow as
professionals, you run the risk of them seeking a better opportunity, and not
you want this to happen! (Almeda, 2016)

An unfair salary

If your employees are presented with another opportunity where the salary is
superior and there are no other aspects to stay for, such as the
purpose of the company, the benefits or the affinity with the
companions, they can decide to leave your company. The same happens
when the work being done is not satisfactory, even if it is well paid.
(Almeda, 2016)

An inadequate selection process

When the worker's profile does not fit the job position, in the culture.
of the company or with the values, it may be that the most suitable solution for
company and employee is the dismissal, and this entails a loss of time and
important money. It is essential that your selection process is organized
and focused on your ideal candidate or Candidate Persona, taking into account not
not only the functions but also the culture and purpose of your company.
The consequences of high staff turnover

So far you have seen the possible causes that can lead to a rotation of
personal, now we are going to analyze the consequences and everything it entails
taking into account the development of your company and that of the people who
they are working on it. Do you want to know what can happen if you have a high rate of
rotation?

Changes in productivity

The company's productivity may be affected by employee turnover.

in different ways. For example, the fact that a person leaves the
the company involves opening a selection process to find the person
ideal for your position. This process can take days, weeks, or even months.
depending on the efficiency of your recruitment strategy, and therefore the
work rhythm may decrease. (Almeda, 2016)

In addition, the person who takes the position will have to gain experience and learn.

the dynamics, so depending on their tasks this will subtract productivity

first days of their incorporation. That is why it is very important to engage the
employees and thus you will avoid drastic changes in productivity. (Almeda, 2016)

Changes in the equipment

Employee turnover not only affects the company as a business, but also
also leaves a mark on the employees as they lose one of their
colleagues. Imagine how crippled a work team becomes when someone is missing.
one of its members, and how difficult it will be to regain the rhythm and the
previous work environment. In addition, it also affects how workers
they perceive the company culture. As we mentioned earlier, we spend more than
30% of our lives at work, our colleagues are our
second family.

In this example, we see Atrápalo employees dressed up as characters from

Star Wars. A good example where the culture of the
company and the teams. (Almeda, 2016)
Company image and employer brand

If the talent interested in working at your company sees that there is a high
staff turnover will leave a bad impression of the company and for
consequently, your employer brand will be affected. This could cause that
very interesting and valuable profiles for your company decide not to sign up for
your offers. Show that your company is a good place to work and be
Being transparent regarding talent will help prevent this from happening.

Associated costs

The costs of high employee turnover can be very high, and

this poses a problem for any company. Keep in mind that not only
there is the cost of possible dismissal in the case of involuntary turnover, if not of
a new selection process and new training for the worker.
Additionally, if the training is provided by another worker with more experience,
we must combine the drop in productivity of this, that is, the cost of
opportunity associate. (Almeda, 2016)

Given all these consequences of high employee turnover, what

What are the consequences of having a low employee turnover rate? Infinite.
benefits, such as greater consistency in your work groups
they will be able to achieve their goals more quickly and accurately,
but above all, your employees will be more aligned with the objectives of your
company and its purpose. And also, your company culture and employer brand.
It will grow positively in terms of talent.

How is the employee turnover rate calculated?

The employee turnover rate measures the relationship between the people who leave
they incorporate into the team and those who leave. That is, the percentage of new hires and departures in

relation to the number of employees in a given period. We explain it to you.

with an example:
Imagine that in your company there are 200 workers, and that in the last year there

they have incorporated 20 new people, and 10 have left. The index of
Staff turnover would be ((20-10)/200)*100. It gives us 5%.

2.1.4. How to interpret the results

Low index: If it gives you a low result, it may mean that you are
doing a great job of retaining your employees or that you
the template is "stagnant". If it is too low or directly 0%
You must think that attracting and hiring new people will give you a new
air both to your business and to your team.
High index: If the effect is the opposite, the consequences may occur.
of the ones we talked about before, such as loss of productivity or
increased costs, and this could pose a problem for the company
and the team.

2.1.5. How to minimize employee turnover

The key lies in efficient management of the selection processes. It is

it is important to hire the ideal candidate and avoid that the selection of profiles is
incorrect and that there need to be successive processes until finding the
worker that fits perfectly. This would represent a waste of time and
important money for your company, so keep the purpose of your
company, the talent you already have within and the culture you want to achieve and
maintain. (Mayhew, 2018)

What is this about? At Talent Clue, we are very clear that salary is no longer
it is enough to attract and retain the best talent. So, what is it that
What should be done to retain your employees? Nowadays, the purpose of a
company and its reason for being are a determining factor. Think that each
person has reasons to work at a certain company in a
moment of your life, and that they are not just the salary or the opportunities of

ascend. According to a survey conducted by Adecco, more than 42% of the

candidates believe that their dream job has to be motivating.
(Almeda, 2016)
Savings vision

One of the most common problems in companies is resistance to

There are established customs and traditions that, over time, have
they turn into myths: 'this can't be done' or 'it's always been done this way', are the

typical taboos.

The idea that suppliers are part of the work team is true, but
they are also in a competitive market, they want to sell and, therefore,
come for their interests. Many times it is bought out of habit and perhaps the
Prices are not very competitive. So the market must be monitored for
work only with those who offer quality, good price, and service,
including post-sale when applicable.

Similarly, it is worth paying special attention to 3 areas where

excessive expenses or capital leaks that increase costs can be realized
of operation.

Another recommendation is to ensure that your collaborators do not perceive the

reducing expenses as something negative. On the contrary, it should be noted that
just as in a house, the goal of saving in a company is to find
solutions to maintain quality of life and increase profitability. To
finally, this will bring benefits for everyone that can be reflected, for example, in
utilities from sales or work bonuses. Otherwise, the easy exits
cutting staff doesn't solve problems, which is a measure that
it can affect revenues not in the short term, but in the medium term, through
a decline in the quality of service." (CHUMPITAZI, 2014)

2.1.6. TYPICAL ERRORS.

• Viewing the market as the only factor that affects the profitability of the business, without

take internal reasons into account.

• Not recognizing that every company can improve and become more efficient.
processes.

• Do not pay attention to operating expenses and consider them all as

necessary and impossible to reduce.
Make some expenses and purchases unwritten and non-debatable laws for their
modification.

2.1.7. TIPS FOR SAVING

Make purchases focused on real needs and not on stocks.

Bulk purchases can get better deals.

Analyze the possibility of acquiring or renewing machinery, vehicles, or equipment.

counting through leasing.

Establish formal links between companies through a contracts area.

and supplier that respects the agreed cost and/or service structure during
a specific deadline.

If there is a control of staff turnover and not only that, it is also being carried out
a control of vacancies, hiring, and the reasons why employees
They leave the company and decide to change jobs.

In this store as well as in others on the border, the turnover rates of

personal is higher than in other parts of the interior of the republic, although it is not

you can compare since employee turnover occurs for various reasons
causes and reasons in the different stores of the republic.

Based on the experience that the human resources department has in this
the reasons why there is a higher employee turnover rate
and because we have many people passing through the city and not
they plan to settle permanently in the city, some have the plan
to cross the border and go to the United States to seek other opportunities, the
The majority of the workers in this store are not from Nogales.
this verifies the previous statement. (Mayhew, 2018)

Another reason for employee turnover is the immaturity of our employees.

younger since when they start their working life they are not
used to having responsibility for a schedule, orders from a boss and
Activities that require more from them, for this reason they are not
constants and change jobs constantly, and for entry-level positions
We require that those positions be filled by young people.

At Coppel, we have a plan to prevent employee turnover and it is

constant training of our employees, from the moment they join
trained for four months for the position they are going to occupy and as already

As we mentioned before, we have development plans for each of them.

personally.

We also offer the opportunity for workers with the skills

and correct attitudes can lead to occupying other positions and achieving a
career in the company.

Employee Turnover Rate

In the calculation of the employee turnover rate for planning purposes

of Resources

Humans, the equation is used:

Employee turnover rate = [[(A + D) / 2] 100] PE

Where

A = Personnel Admissions during the considered period

D= Termination of personnel (At the initiative of the company or of the

employees) during the

period considered

PE = Effective average for the considered period. It can be obtained by summing

the existing employees at the beginning and at the end of the period, and dividing by
two.

The employee turnover rate expresses a percentage value of employees.

that circulate in the organization regarding the average number of employees.

When it comes to analyzing staff turnover and its causes, in the

the calculation of the employee turnover rate does not consider the admissions,
only the disengagements, either by the initiative of the organization or by the
employees

Staff turnover rate = (D X 100) / PE

Being partial, this equation may mask the results by not

consider the entry of human resources into the organization

When it comes to analyzing personnel losses and finding the reasons that
lead people to disengage from the organization, only having in
count the withdrawals due to employee initiatives and completely ignore the
provoked by the organization.

Employee turnover rate = D X 100 / [(N1 + N2...) / a]

This more specific turnover index better serves an analysis of the causes and
the determinants of voluntary separations.

When it comes to evaluating employee turnover by departments or

sections, taken as subsystems of a larger system - the organization-,
each subsystem must have its own calculation.

Diagnosis of the Causes of Employee Turnover

Staff turnover is not a cause, but an effect of certain phenomena.

produced inside or outside the organization, which condition the
attitude and behavior of the staff. Therefore, it is a variable
dependent (to a greater or lesser degree) on internal or external phenomena
of the organization.

The information related to these internal or external phenomena is

obtains from the exit interviews with the individuals who are leaving, to
diagnose the failures and eliminate the causes that are causing the exodus of
personal. Among the internal phenomena causing withdrawals are almost all
those parts that make up a human resources policy. The
The retention of personnel in the organization is one of the best indicators of
a good human resources policy, especially when it is
accompanied by the participation and dedication of the people. (Manuel, 2018)
The average turnover rate in Peru reaches 20.7%, while
In Latin America, it is 10.9%. And when it comes to voluntary turnover, this high
the proportion remains: in Latin America it is 5.4%, while in Peru
it reaches 9.8%, according to the Saratoga Indicators study
PricewaterhouseCoopers.

The reasons for this high employee turnover rate are: the high take-off
of the Peruvian economy and that people no longer wish for much
time in the same company, as explained by Latife Reaño, with (Gallahue,
2012)

The takeoff of the Peruvian economy leads to turnover figures in the

Peru's figures are almost double those in Latin America. This is linked to the trend.

Currently, people prefer to gain experience in different types of

organizations and even in various functions,” says the specialist.

However, it points out that this high rate is also a cause for concern, because
according to best practices the levels, in general terms,
they should be around 5.7% and if of high-performing personnel
it stands at 3.1% - as happens in Latin America - while in Peru
this index reaches 5.3%. (T., 2007)

2.2. RECRUITMENT:
2.2.1. DEFINITION
It's calledRECRUITMENTathe processto identify and engage candidates
qualified to fill the vacancies. Theprocessrecruitmentit begins with
the search and ends when the requests are received foremploymentIt is obtained
thus a group of applicants, from which the new ones will later emerge
employees. The process ofselectionis considered regardless of the
recruitment

Job descriptions are essential tools,

they provide theinformationbasic about thefunctionsand responsibilities
what each vacancy includes.

Lohuman resourcessuitable for performing certain tasks are not abundant in

no society. (hernandez)
2.2.2. RECRUITMENT PROCESS
Recruiters carry out several steps. The recruiter identifies the
vacancies through theplanningofresourceshumans or at the request of the
[Link] resourcesit can be especially useful,
because it illustrates the current vacancies and those that are contemplated for the future.

(Hernandez)

The recruiter will refer to both the needs of the position and the
characterizestatistics of thepersonthat he performs it. As long as he judges it
necessary, the recruiter must requestinformationadditional putting on
contact with the manager who requested the new employee. (Hernandez)

2.2.3. RECRUITMENT ENVIRONMENT

The environment in which they will have to move must be considered.

Thelimitsfrom that environment originate inthe organizationthe recruiter and the

external medium, of which the most important elements are:

Internal and external availability ofresourceshumans.

Company policies.
Human resources plans.
Recruitment practices.
Job requirements.

2.2.4. Internal and external availability of human resources:

The unemployment rate in the area, the conditions of the company's sector, to
abundance or scarcity in the supply of personnel, changes in legislation
labor and the recruitment activities of other companies include in the
task of obtaining a group of applicants for a given occupation. Although
these factors are included in human resource planning, with
frequently the economic conditions vary rapidly.

The recruiter can refer to three basic indices:

Economic indicators. They allow us to understand the current circumstances of the

economy of a sector, of a geographic area, or of the entire nation.
Recruitment activities from other companies. They allow understanding the
basic strategies that competing organizations propose.
In many cases, it can be measured with relative precision through the notices.
published. But this technique can be costly.

Current sales of the company and its goals. Due to the plans of
human resources are partially based on sales forecasts,
Variations between actual and forecasted sales constitute a vital factor.
(hernandez)

Company Policies (Organization Rules)

Sometimes, the policies set by the company can become
limitations of recruitment activities. (hernandez)

- Internal promotion policies. Internal promotion policies stipulate

that current employees have preferential option to access to
certain positions. It has the merit of guaranteeing each employee a
career and not just a job. This practice can have the negative effect.
to limit the entry of people with new ideas and perspectives into the
organization. Obviously, the need to have an inventory
knowledge and skills of the staff are enhanced when
the organization establishes this policy. (hernandez)

Compensation policies. A common limiting factor in many areas of

recruitment is the compensation levels that stipulate the
organizations. Usually, recruiters have a minimum degree of
discretion in the compensations they offer. Recruitment at the level
international leads to multiple exceptions and modifications of the policies
nationals. In this area, the recruiter will have to work in collaboration with the
legal and commercial advisors of the corporation.

Policies on staff situation. Acting in accordance with the

laws of a specific country, the organization can proceed to veto or
to favor the hiring of temporary staff, for example. These decisions and
parameters will directly affect recruitment activities.
International hiring policies. Often, certain
legislations stipulate the maximum level of foreigners that can work in
an organization, which exerts direct effects on the policies of a
corporation. (hernandez)

2.2.5. Human resources plans:

In large, technologically advanced companies, recruiters
they often use a human resources plan to define their strategy for
recruitment, especially when the corporation follows a policy based on
internal promotions. These plans can specify which positions are
They should be filled with external personnel, and which ones should be covered externally.

Recruitment practices: (hernandez)

Organizations often tend to perpetuate policies and practices

that yielded results in the past, without subjecting them to critical analysis, without

to consider what It is advisable revise them with frequency.

Job requirements:

The recruiter must ask themselves the question: What do they really require?
this position? At intermediate levels, it has been determined that frequently the
truly essential skills are the ability to read and write well, a
professional responsibility attitude, and the ability to communicate with
other people. The willingness to learn is also a characteristic
crucial. Generally, the most qualified and experienced people
They will request higher incomes. (Hernandez)

A second difficulty arises from the low level of job satisfaction that is
Is it possible that an overly qualified person will find a position?
that presents minimal challenges to your professional capacity.

Determine exactly what the responsibilities of the position will be that

trying to fill is the only alternative to obtain suitable candidates. It is
It is essential to respond to the following: (Hernandez)

To perform this position:

What is necessary to do?

What is necessary to know?

What is necessary to learn?

What experience is truly relevant?

Costs:
The recruiter must operate within budgets that are usually
somewhat inflexible. The cost of identifying and attracting candidates can sometimes
be considerable for the organization.

Incentives:
Modern companies not only promote their products, but also
they sell their work image, with incentives and programs that give them a margin
of advantage in the field of human resources recruitment.

Examples: support programs for the formal education of their staff, services
nursery, cafeteria plans. (hernandez)

2.2.6. Basic components of recruitment.

Recruitment involves a process that varies depending on the organization. It consists of

in a set of techniques and procedures oriented to attract candidates

potentially qualified and able to hold positions within the
organization. To achieve its purpose, recruitment must attract enough
number of candidates to adequately supply the process of
selection. In addition, it involves carrying out activities related to the
research and intervention in the sources capable of providing the company with
sufficient number of people to achieve the objectives.

Recruitment requires rigorous planning consisting of a sequence

of three phases: (Hernandez)

Internal research on needs.

External market research.
Recruitment methods to apply
In other words, in these phases are distinguished: the people that the company
requires, what the human resources market can offer you and the
recruitment techniques. Thus, a general outline of a process of
recruitment would imply:

Human Resources Planning

Reception of specific personnel requests
Identify the required vacancies
Obtain information from the job analysis
Confront the management's instructions.
Verify the job requirements
Apply the appropriate recruitment method
Obtain the optimal candidates for the selection process

2.3. ACTIONS THAT MUST BE TAKEN BEFORE STARTING THE

RECRUITMENT ACTIVITIES.
According to what was stated earlier, it can be deduced that companies
they have several alternatives before starting a recruitment process, with the
end of solving personnel issues. These alternatives are
they must be based on the circumstances surrounding the environment: (hernandez)

Internal and external availability of human resources, the policies of the

company, the human resources plans, the recruitment practices and the
job requirements. The practices range from promotions or transfers,
overtime payments, external subcontracting of activities (outsourcing),
temporary employees.

The company must consider as a basis for developing a scheme of a

recruitment process information regarding: Economic indicators,
recruitment practices of other companies, sales budgets, goals
planned; company internal promotion policies, salary policies, etc.
(hernandez)
2.3.1 Significance of the term internal recruitment

Qué significa el término reclutamiento interno ?. Ventajas y desventajas

Recruitment is internal when a specific vacancy arises,

The company tries to fill it through the relocation of its employees, who
they can be promoted (vertical movement) or transferred (movement
horizontal) or transferred with ascension (diagonal movement).

Internal recruitment may involve:

Staff transfer

Personnel promotions

Transfer with personnel promotion

Personnel development programs

Professionalization plans (careers) for personnel.

2.3.2 Advantages of internal recruitment.

The main advantages that can arise from internal recruitment are:

It is more economical for the company, as it avoids press advertising costs.

recruitment agency fees, reception costs of
candidates, admission costs, new employee integration costs, etc.

It is faster, avoids the frequent delays of external recruitment, the

expectation for the day when the press announcement will be published, the wait for
the candidates, the possibility that the chosen candidate must work
during the notice period in your current job, the natural delay of
own admission process, etc. (Hernandez)

It presents a higher index of validity and safety, since it is already known to

candidate, he was evaluated over a certain period and was subjected to the concept of
his bosses and does not need a trial period - most of the time,
integration or induction in the organization, or extensive information regarding it. The
the margin of error is significantly reduced, thanks to the volume of information that,

Generally, the company gathers information about its employees. (Hernandez)

It is a powerful source of motivation for employees, as they

they glimpse the possibility of progress in the organization, thanks to the
opportunities offered to those who present conditions for a future
promotion. When the company develops a coherent policy of
internal recruitment stimulates in its staff the desire to
constant self-improvement and self-assessment, aimed at taking advantage of
the opportunities for improvement and to create them.

Take advantage of the company's investments in training people who

many times it only has its reward when the employee takes over
higher and more complex positions. (Hernandez)

Develop a healthy spirit of competition among the staff, having

present that opportunities are offered to those who demonstrate conditions
to deserve them.

2.3.3 Disadvantages of internal recruitment

Internal recruitment has some disadvantages: (Hernandez)

It requires new employees to have development potential for advancement.

at least at certain levels above the position they are going to occupy- and
enough motivation to get there. If the organization does not provide opportunities
of progress at the right moment, runs the risk of frustrating the
employees in their ambitions, which generates empathy, disinterest, or withdrawal from
the organization to seek opportunities outside of it. (hernandez)

It can generate a conflict of interest, since by offering opportunities to

growth in the organization tends to create a negative attitude in the
employees who do not demonstrate conditions or do not achieve those opportunities.

When it comes to bosses who do not receive any promotion in the organization or
that have no development potential, these place staff of potential
limited in subordinate positions to avoid competition in the future, or
"they hinder" the performance and aspirations of subordinates who could
surpass them in the future. (hernandez)

When administered incorrectly, the situation may arise.

what Lawrence Peter calls the "Peter Principle": companies, when promoting
insensibly to their employees, they always elevate them to the position where
they demonstrate the maximum of their competence. To reward their performance and

to leverage their ability as an employee demonstrates competence

in some position, the organization successively promotes him to the position in
that the employee, due to incompetence, stagnates.

When done continuously, it can lead employees to limit their

politics and the organization's guidelines, since they, living only with
the problems and situations of their organization, they adapt to them and
they lose creativity and the attitude of innovation. Thus, people
they begin to reason almost exclusively within the patterns of culture
organizational. (Hernandez)

It cannot be done in global terms within the organization. The idea of

that when the president retires, the organization can admit an apprentice and
ascending to everyone has long since disappeared. In this case,
there is a significant depletion of human capital: the organization
lose a president and acquire a novice and inexperienced apprentice. In order not to

harm human capital, internal recruitment can only take place

when the internal candidates are equal in conditions to the candidates
externals.

2.3.4 Methods used in internal recruitment:

State the methods used in internal recruitment. (Hernandez)

Internal recruitment is based on current employees who can be

promoted or transferred or who can absorb the functions that are
requires filling. (hernandez)
Internal recruitment is based on data and information related to
the other subsystems of the human resource management process, namely:
 Results obtained by the internal candidate in the selection tests for
those who submitted for their entry into the company.
Performance evaluation results of the internal candidate.
Results of the training and improvement programs in
that the internal candidate participated.

Analysis and description of the position held by the internal candidate in the
current situation and the position being considered, with the aim of evaluating the
difference between the two and the other necessary requirements.
Career plans or planning of personnel movements for
to know the most suitable background of the person holding the position in question.
2.3.5 Conditions for the promotion of the internal candidate and replacement.

In the development of previous points, we had already talked about the methods
that allow maintaining alternatives for internal recruitment. These
includes the verification of managers' inventory and skills, that is, the
information provided by managers about individuals who can
identify potential candidates for promotion to higher positions
level; and the skills inventory that consists of the information it generates
the company about the general and immediate availability of employees that
they can be moved to lateral or higher-level positions; this data is
are assigned in the potential promotions formats and in the
potential replacement frames. Another alternative is to make announcements of
vacancies and promote competitions to fill them, with requirements and procedures
of participation. (hernandez)

2.3.6 Analyze the reasons for an external recruitment program.

External recruitment operates with candidates who do not belong to the
organization. When a vacancy arises, the organization tries to fill it
with outside staff, that is, external candidates attracted by the techniques
recruitment. External recruitment affects actual candidates or
potentials, available or employed in other organizations. (hernandez)
An organization may choose an external recruitment program because
the following reasons:

He brings 'new blood' and new experiences to the organization. The entry of
human resources always brings in new ideas and
different approaches to the internal problems of the organization and, almost
always, a review of how the affairs are conducted within the
company. With external recruitment, the organization as a system
updates regarding the external environment, and keeps itself informed of what
it occurs in other companies.

Renew and enrich the human resources of the organization, especially

when the policy is to receive personnel with suitability equal to or greater than
existing in the company. (hernandez)

Take advantage of the investments in training and staff development made

by the companies or by the candidates themselves. This does not mean that the
the company stopped making these investments from then on, but
immediately benefits from the return on investment already made by others,
to such an extent that many companies prefer to go abroad and pay higher salaries
raised to avoid additional training and development costs, and obtain
short-term performance results.

2.3.7 Advantages of External Recruitment:

External recruitment offers the following advantages:

The entry of new elements into the company always causes a

importation of new ideas and different approaches to problems
employees of the company and, almost always a review of how it is
they manage the affairs of the company. It allows staying updated with
regarding the external environment and alongside what is happening in other companies.

Renew and enrich the human resources of the company. (Hernandez)

Take advantage of investments in training and personnel development.

carried out by other companies or by the candidates themselves. Many companies
they prefer to recruit externally and pay higher salaries, to avoid
additional training and development expenses and obtain results from
short-term performance. (Hernandez)

2.3.8 Disadvantages of External Recruitment:

External recruitment also presents the following disadvantages:

It generally takes more time than internal recruitment. It requires the

use of appropriate selection techniques and the effective use of appropriate
sources that allow for the recruitment of personnel. The higher the level
from the position, the company must have more foresight, so that the unit or area of
recruitment should not be pressured by factors of time and urgency in the
provision of their services. (hernandez)

It is more expensive and requires investments and immediate expenses with announcements of

press, recruitment agency fees, operational expenses of

salaries and social obligations of the recruitment team, material of
office, etc.

In principle, it is less safe than internal recruitment, since the

external candidates are unknown and come from different backgrounds and paths
professionals that the company is not in a position to verify with
accuracy. In this case, the intervention of external agencies becomes important
to carry out the process of evaluation and research. Companies provide
entry of personnel through a contract that stipulates a trial period,
precisely to have a guarantee against the relative insecurity of
process. When external recruitment becomes a practice for
defect within the company can frustrate staff, as they go on to
perceive unforeseen barriers that oppose their professional development,
considering the practice as unfair towards him/her.

Generally, it affects the company's salary policy, mainly when

the supply and demand of human resources are in a situation of
imbalance. (Hernandez)
2.3.9 Factors and Methods of External Recruitment
Distinguish between the factors and methods of external recruitment.

Identify several sources and methods of the same.

Recruitment techniques are the methods used by the
organization to publicize the existence of a job opportunity, along with
with the most suitable human resources sources.
They are also referred to as recruitment vehicles, as in
fundamental is a means of communication.
In external recruitment, there are two ways to approach the sources of
recruitment: the direct approach and the indirect approach.

2.4. The Main Techniques of External Recruitment are:

2.4.1 Query of candidate files

The candidates who present themselves spontaneously or who were not

those chosen in previous recruitments must have a resume or a
job application duly filed in the recruitment body. The
The file system can be organized by charge or by area of activity,
depending on the type of existing positions. Regardless of the
The system that is adopted, it is advisable to register the candidates in order.
alphabetical, considering sex, age, and other important characteristics. It
It is fundamental that the company always has open doors to receive.
candidates who present themselves spontaneously, at any time, although
At the moment, there are no vacancies. Recruitment should be an activity.
continuous and uninterrupted, aimed at ensuring that there is always a set
of candidates for any future eventuality. Furthermore, the organization must
encourage the spontaneous arrival of candidates, welcome them, and, if possible,
maintain occasional contacts with them, so as not to lose the appeal or the
interest. It should be taken into account that this is the recruitment system of
lower cost and that, when it works, does not require too much time.
(hernandez)
[Link] MANAGEMENT OF STAFF TURNOVER

2.5.1 PRIMARY TURNOVER COSTS

a. RECRUITMENT AND SELECTION COSTS:

Issuance and application processing costs of the employee.

Maintenance expenses of the recruitment and selection body.
Expenses on newspaper advertisements, recruitment flyers,
fees for recruitment companies, material of
recruitment, forms.
Maintenance expenses for the selection of medical services.

Registration and documentation cost:

Maintenance costs of the registration and documentation office

personal
Expenses on forms, documentation, notes, records, etc.

Integration Costs:

Training section expenses, divided by the number of

employees subjected to the integration program;

Cost of the time of the supervisor of the requesting body applied in the
orientation of newly admitted employees in their section.

b. Severance cost:

Expenses of the registration and documentation body related to the process of

employee disengagement, divided by the number of employees
disconnected. The cost of the disconnection interview.
Cost of compensations for the time prior to the option for the
FGTS.
Cost of advance payments related to vacations
proportional, proportional salary, notice period.

2.5.2 CAUSES OF STAFF TURNOVER

When individuals in an organization decide to situate themselves in another similar company.

or different from that of the organization, they leave to pursue expectations that
meet their short-term and long-term goals. These expectations can range from
an improvement in the economic level, full satisfaction within the organization, the
personal development, time to engage in other activities, family issues
marriage commitments, childbirth, to name a few, or simply
because they react to factors of the company that can be:

a. INADEQUATE SALARY POLICY IMPOSED

The most complicated salary policy applied in a company, since it has

what to see directly related to the monetary satisfaction of employees. Despite its
complexity is applied superficially and subjectively in many companies and not
it is in line with the labor market and not even with the reality of the company
according to the results obtained by the performance of its activity. The company
you can have good productivity and compensate your employees with
low compensation or remuneration or taking increases as a reference
inflationary; which is inconvenient since it would be better evaluation with
reference in the performance of the employee's activity or apply based on
average wages of the industry it belongs to and others using a
tabulator. In general, the decision regarding salaries will depend on the position
financial situation of the company, of the labor market situation, of the situation
economic of the country, of the unions or labor negotiations, of the legislation
labor, and finally from the applicable perspective in the policy on resources
humans of the company. (Trigueros, 2001)

b. INSUFFICIENT SOCIAL BENEFITS POLICY

In companies, it seems that what matters is obtaining the services of the

workers being compensated only with their good or bad salary, but they do not care
that workers would be better off if social benefits were established
additions to the ground such as retirement plans, dental plans, fund of
ahorro, seguro de vida, gastos médicos, actividades de integración, música
environmental, etc., It is better to invest in the staff you have rather than spending on

hiring and more general hiring due to dissatisfaction. (Gallahue,

2012

c. INCORRECT CHARACTERISTICS OF SUPERVISION

Some people take undue advantage of their position

supervisors create conflicts within the organization and impose conditions
particular to the workers. This task should be balanced and institutional,
with rules well known to all and without favoritism that tilts the scales, with
measurement of efficiencies that enable achieving better levels of productivity (the
that should improve the salaries of workers), maintaining the
discipline, saving waste and generally putting the plans into practice
management. All of this without losing sight of the human side that allows for
workers should be considered as important elements in the process
productive and not just as another number. "Such supervision must be exercised
by trained, respected, and leadership-oriented individuals because the people who
those who carry out this activity are located between the administration and the

workers, are intermediaries between both sides in the chain of authority and
information (Gelb, 1999: 123).

LACK OF OPPORTUNITY TO DEVELOP WITHIN The

COMPANY

Many companies have a nearly flat organizational structure, which does not allow
that there are promotions to higher positions for employees and workers. Others
define a policy to cover positions with external personnel because the
the internal personnel they have does not have the desired preparation and profile for
cover the position in others, on the contrary, they are concerned about giving the opportunity to the

internal staff and if no one can meet the requirements then recourse is made to the
labor market.

Companies do not participate in the planning of future resource development.

humans have transferred this responsibility to the employees, who have
to acquire different knowledge through means such as study programs
professionals or technicians. (ADMINISTRATIVE., 2014)

e. NEGATIVE IMPACT ON WORKER MORALE

All actions carried out by the executives in charge of the decision-making
decisions will affect in a greater or lesser way positively or negatively to the
workers and employees. These effects generate harmful situations, a will be created
rarefied environment that will cause workers and employees to not be
happy with the company, lowering their morale. Close supervision will create
problems, as employees feel that they are not trusted, that they are not
capable of doing their work without being supervised. However,
when employees are given the proper trust so that they develop
their work with responsible supervision is perceived as valuable people
for the company, what will make them more valued, consequently rising
their morals. It must be considered that everything is a motivational effect among the

employees and workers and the executives who make the decisions, therefore, 'the
managerial planning must consider the effect of any proposed action on
the needs of workers"(PSYCHOLOGY", 2010)

f. TYPE OF ORGANIZATIONAL CULTURE

The set of shared principles within an organization by all its
members, the particular perspective of seeing their environment through which they set their shape
of acting and thinking, that is, the way their executives behave, how they conduct themselves,
the policies imposed to carry out the activities, for the management of all its
personal, in general the attributes of the living environment within the organization. It is
something that identifies it from other organizations, in general, is 'a system of
shared meanings among its members" 59 so that at times the
perception of this culture by the workers and mainly by the
non-operational employees, "is the reason for their departure from the company because it is not achieved

to align with the same way of thinking or doing business

g. ORGANIZATIONAL ENVIRONMENT
It should be noted that this concept is very important for the majority of the
people working in a company. It is a parameter of satisfaction that they use
the employees and workers and if the environment is strained it will affect everyone
member of the organization. The organizational environment "refers to the perception
what an employee has of organizational expectations. It will allow him/her
determine their stay in the organization. If the members of the organization do not
they act according to the principles established by her and also do not receive a sanction
inherent and appropriate to the gravity of the offense (their moral, ethical behavior),
will motivate that some elements of its structure that are really
those who are committed withdraw because the principles are different from what they really are

it does in practice. (C., 2012)

If the company policy is that high management positions must be filled
with personnel captured from abroad with master's or doctoral studies in the
foreigners or those coming from certain private schools in Mexico,
obviously the people who work will know that they have a limit of development and
ascend and when they arrive there they must start packing their bags. (T., 2007)
It should not be forgotten that the overall perception of the company is something subjective.

each individual (possibly some will perceive the same, but they will have
characteristics that will make them different), and it will be to a greater or lesser extent
 depending on the level or position held, in the same way the effect
It will be different. Not everyone is treated the same and that, evidently
it changes opinions and alters the perception of the organizational environment.
LACK OF TRAINING FOR WORK
The staff must be trained to perform their work in case of the
specialized companies that operate based on production efficiencies, it happens
a training directed so that they achieve that efficiency. In the case of jobs
or administrative jobs, this ability should already be brought by the employee
generic form when I joined the organization, but since each company has its
particular characteristics of operating, or the worker has not worked in the type of
role they perform, the company must provide them with courses that allow them to be trained

in the specific knowledge that is handled there, in addition to achieving that

stay at the forefront of the company's needs, it is possible to have personnel that
performs their activities well and on the part of the worker, they prepare themselves.

obtaining a higher intrinsic value. When this does not happen, employees become
they are removed from the company as they are not performing as they should be and obviously

They are not adequately compensated either. (E., 2007)

2.5.3 ADVANTAGES OF STAFF ROTATION

REFERENCE ADVANTAGES OF ROTATION

[Cosgel et al., 98] Mechanism of introduction de

innovation.

[Federal Register, 00; National Institute Strategy] administrative for the

for Occupational Safety and Health, 90a; reduction of the risk of MSD in the
National Institute for Occupational Safety work.
and Health, 90b; National Institute for
Occupational Safety and Health, 91;
National Institute for Occupational Safety
and Health, 92; National Institute
for Occupational Safety and Health, 95;
National Institute for Occupational Safety
and Health, 96]
[Huang, 99]. Positively influences satisfaction of
 the workers and their training.
Jonsson, 88; Hazzard et al., 92; Hinnen Reduces fatigue and the risk of
et al., 92; Grant et al., 97; Paul, 99 appearance of injuries muscle
skeletal and traumatic disorders
cumulative (DTAs).
[Jorgensen et al., 05] It allows the development of skills
of the workers, the decrease in the
accidents and the symptoms of injuries
related to work, and the increase
of morality and the satisfaction of the
employees.

It is an alternative to the cost in

equipment and redesign of the positions
to prevent MSDs.

[Kogi et al., 03; Davis,05] Assumes low implementation costs in

comparison with other possible measures
improvement of working conditions.
[Kogi et al., 03] Useful for avoiding repetitive movements
and prevent muscle overload.
[Kuijer et al., 99] It decreases the perceived load (defined in
function of perceived fatigue and of
perceived effort.

Reduce the energy load (defined

based on the heart rate).

Reduce the level of postural load

(defined as the time during which
the trunk flexion was > 45º and the
elevation of one or two arms
superiors is

[MacLeod et al.]
 Reduce boredom and stress.

Increase innovation.

Increase the temporal freedom of the

activities.

Reduce traumatic disorders

cumulative. (DTAs)

Increase production.

Reduce absenteeism.

Reduce turnover (attrition).

personal

[Miller et al., 74] Increase productivity.

[Eriksson et al., 06]
Allows the company to acquire a greater
knowledge about the capabilities of
sus employees to theto observe on
performance in various positions.

[Oullet et al., 03] It allows for a break from monotony.

[Rissen et al., 02]

It has a positive effect on activity

muscular in the neck and shoulders.

It has a positive impact on the

subjective perception of workers.

Increase pride and appreciation for work

perceived by the workers.

[St-Vincent et al., 03]

 Training benefits, increases the
motivation and innovation, reduces the
stress and monotony, decreases the
absenteeism, reduces the abandonment of the
jobs, increases the response to
changes, increases production and
reduce traumatic disorders
cumulative.
[Van Velzer et al., 92] It is an intervention strategy.
economical ergonomic.
[Vézina, 04] Prevention mechanism of the TME and
positive influence on the factors
 2.5.4 DISADVANTAGES OF STAFF TURNOVER

REFERENCE ADVANTAGES OF ROTATION

[Vézina et al., 95; Abrahamsson, 02] Problems when it comes to men and
women participate in the rotations below
the same terms (salary, level of
hierarchy).
[Aptel et al., 08] The inclusion in the rotation of
workers with medical restrictions
provokes the rigidity of the system of
rotations y limits its possibilities

benefits.

Relative inefficiency of the system of

rotations in relation to prevention of
the TME

[Carnahan et al., 00] Problems related to existence

from a diverse workforce
with different capabilities.
[Cheraskin et al., 96] It can increase the workload and
decrease the productivity of the
rotating employees.

It may increase costs due to

the errors in which employees
they incur when they learn a new
work.

[Frazer et al., 03] The inclusion in the rotation of positions with

elevated demands biomechanics
exposes the worker to a situation of
elevated risk that, although occasional or of

short duration can cause injuries.

[Hazzard et al., 92; Triggs et al., 00] Resistance of the unions regarding
the wage differences between the
 workers included in the same
rotation schedule
[Jorgensen et al., 05] Decrease in quality of the
products.

Problems arising from inclusion

employees with medical limitations that
they cause stiffness in rotation.

Scarcity of jobs to include in the

rotation.

Limited diversity of jobs.

Problems derived from the different

salary scales of workers.

[Kuijer et al., 05] Resistance of the workers with

antiquity to learn new types
of jobs.

Negative of the operators of the

machines to give way to others
workers.

Practical problems derived from the

physical transfer from a workstation
to another.

Requires training and education from

the workers so they take on new ones
positions.

Difficulty in determining the jobs

suitable to be included in the rotation.

Inadequate use of rotations

 by the managers.

[St-Vincent et al., 03] Increased concern of the

workers for the development of new
competencies derivatives of the
implementation of the rotation system.
[Triggs et al., 00; Frazer et al., 03] Increase in risk for the
workers if the jobs are not
appropriately selected.
[Vézina, 04] Resistance of workers with certain
antiquity to change its season of
I work for others.

Resistance of workers more

ancient to learn new jobs.

The perception of ownership of the

stations of work for the
worker.

Physical problems to move from one

put to another.

Difficulty in the selection of positions to

to rotate

The fear of workers' mistakes

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