The job is about local marketing of banking and insurance products. There will be four sections based on regional groupings where two principal forms of marketing will be conducted such as telesales and personal visits.
Recruitment procedures and the implications on employment law:
Considering the recent employment law set up by UK BIA, the job will be advertised in Jobcentre plus for at least two weeks. The interested candidates have to apply online and they have to answer a series of questionnaire to understand what they are likely to be and whether they fit for each other or not and they have to also upload their CV.A rigorous and strict selection process will be made based on answers to online questionnaire and basing moreover on previous experience in a similar role and academic background. After a thorough scrutiny, the final decision of selecting or rejecting the applicant will be made. As a basic requirement of the job role, the applicant should be smart, a good communicator, fluent in English language, flexible, motivated, hard working and reliable person and should be able to work within a team. A good telephone manner is also highly essential. Foreign workers have to provide their proof of right to work such as visa, NI number, passport etc before being offered the position.
The selected candidates will go through one week paid induction programme. This will help equipping them to the work environment. The team will go through four phases such as forming, norming, storming and performing. In the initial forming stage, they will group together to form a group. The group will follow certain norms and there will be a group objective. In storming phase, they will be huge brain storming discussion about the job and in the last phase of performing, each one will be able to perform the job well. One of the main areas of human resources needing the above mentioned reform is the area of employee screening. Due to the influx in individuals receiving college degrees, the task of screening applicants is becoming more and more of a challenge for human resource managers. To better understand this challenge, we next turn towards the work of three prominent economists.
In The Market for Lemons: Quality Uncertainty and the Market Mechanism, author George Akerlof discusses the situation that occurs when the seller knows more about the product’s quality prior to the sale is that a traditional market of infinite guarantees is terminated. (Akerlof, 1970). Instead of a traditional free-market system, actual incentives are created to encourage the seller to pass off low-quality goods to the buyer in the guise of being a higher-quality good. The result is the existence of what is commonly referred to as a lemon product. When lemons become the dominate good in the market place, they eventually erode away the market for that used product, such as the market for used cars. (Akerlof, 1970).
In the article entitled Job Market Signalling, author Michael Spence discuss the theory of job-market signalling. According to this theory, employees signal their job skills to an employer by gaining a certain degree of education. In order to get this degree, and thus the ability to signal, the employee must pay for the education. To reimburse for this “business expense”, the employer pays the educated employee more than an uneducated employee because of the greater skills they have. (Spence, 1973).
In his Conference Papers, economist Joseph Stiglitz, like Akerlof, discusses the role of information asymmetries. Stiglitz is most noted for his research on screening, or the technique used by one agent to gain otherwise private information from another and thus throwing the balance of equal information off. (Stiglitz, 1985).
Taken together, the works of Akerlof, Spence and Stiglitz have created the field of Information Economics. Information Economics, the area most relevant to human resources, is a significant new direction. Instead of goods and services, information economics places information at the center of understanding business relations.
With the influx of an information economy, human resource managers will have to adjust their practices in to ensure security and compliance. For example, information creates a unique problem in that it is easy to spread yet hard to control. Thus, because anyone can create information, it is hard to trust. In other words, information becomes a lemon, threatening to dissolve the information market (which is, if not at least almost, the entire economic market).
First and foremost is the human resources manager’s role in screening employee applicants for education. As Spence argues, the basis for ensuring good information is to ensure informed employees. A college degree acts as a basis for the screening process in that it signals to the human resource manager that the potential employee is informed and capable of learning on an as needed basis.
Unfortunately, as our society has transformed into an information based society, the demand for higher education, in accordance with the signalling theory of Spence, has grown remarkably. The result is that the degree itself has become a lemon because all degrees are not of equal quality. For example, a degree from Harvard and a degree from an online university are clearly not equal. Further, because more and more individuals are going through higher education and receiving degrees, there is no way to distinguish the quality of the individual simply by a degree screening process. In a sense, the employer is in the same position of the person buying a used car. The student, or the seller, is the one who knows the true information as to their information quality and the employer is at risk of hiring a lemon. Thus, human resources needs to adapt be creating better screening processes.
Spence, M. Job Market Signalling. The Quarterly Journal of Economics, V. 87(3) (August, 1973).pp 355-374.
Akerlof, G.A. The Market for Lemons: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, V. 64, Issue 3 (August, 1970). Pp 488-500.
Stiglitz, J.E. The Economic Journal. V. 95. Issue Supplement: Conference Papers (1985), pp 21-41.