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Recruitment and selection . This could be due to growth and diversification or simply replacing people who have left the organisation. In both cases recruitment should take place in the context of a manpower plan that forecasts staffing requirements based upon strategic objectives and development plans. It is all about acquiring the right number of people with the right skills, experience and competencies in the right jobs at the right time. The manpower plan helps to establish whether new staff will be temporary or permanent and the extent to which existing staff need to be trained and redeployed. Planning therefore impacts the approach to recruitment such as the appointment of full or part time positions, permanent or fixed term contracts. In some organisations it is possible for the manpower plan to anticipate recruitment in some areas of the organisation with reductions in others. This means staffing costs can be projected and built into financial forecasts and budgets enabling recruitment and training to be controlled at an organisational, subsidiary and department level. Many organisations, both public and private, have developed models for manpower planning but the processes are very much alike: Analysis of competencies of the present workforce. Identification of competencies needed in the future. Comparison of the present workforce to future needs to identify competency gaps and surpluses. Audit Committee, 20 March 2014 Internal Audit Report – HR Recruitment Executive summary and recommendations Introduction Mazars have undertaken a review of the HCPC. Recruit is all-rounded recruitment services media consisting of Recruit magazine, Recruit.com.hk, Recruit mobile apps and Recruit career expo. Recruit Magazine is the. Start your career at Deloitte as part of our Graduate Program. You can apply if you are in your final year of study. Preparation of plans for building the workforce needed in the future. An evaluation process to assure that the workforce competency model remains valid and that objectives are being met. Selection is that part of the recruitment process that matches candidates to the specific requirements of individual positions. This has a number of recognisable stages as illustrated in the diagram below: Effective recruitment and selection ensures that the organisation has the necessary knowledge, skills and experience to fulfil its responsibilities and achieve its objectives. Expand this diagram. Why is recruitment and selection important? Recruitment and selection generally forms part of the organisation's strategic management of human resources, which has a number of interrelated elements designed to deliver long term sustainable success. Effective recruitment and selection ensures that the organisation has the necessary knowledge, skills and experience to fulfil its responsibilities and achieve its objectives. It also ensures that the organisation's culture, ethic values and expectation on behaviour are compatible with those of its employees so that there is unity of direction and purpose. Equally there are a number of potentially high- impact, high- likelihood risks associated with recruitment and selection. It is all about acquiring the right number of people with the right skills, experience and competencies in the right jobs at the right time. Organisations face a wide variety of risks in relation to recruitment and selection. The nature of these risks will vary depending upon circumstances; however, we have compiled a short list of potentially high impact, high likelihood risks below along with the possible responses that management may take. Potential risks and responses.
Not having the right people in the right place at the right time. Potential impact. Inappropriate and inadequate resource to achieve objectives, expansions plans, project delivery and market opportunities. Recruitment numbers not controlled resulting in excessive spending against budgets and/or reduced profits. Possible response. Requiring business plans and initiatives to include staff projections with financial forecasts that are consolidated. Staffing structure in place with total numbers of staff in each department that is reviewed periodically to take account of changing business needs and linked to business objectives. Additional staff requests approved by senior management and structure updated and linked to the budget. Employing staff who do not have the required competencies and/or cultural fit with the organisation. Potential impact. Failure to achieve strategic and operational responsibilities and objectives. Poor staff morale, high levels of absenteeism, excessive staff turnover. Possible response. Regular review and update of policies and procedures. All managers involved in recruitment to undertake regular recruitment and selection training. HR involved in the preparation and agreement of job descriptions, person specifications, terms and conditions. HR involved in the recruitment process to ensure application of policy and procedures. Using a variety of assessment methods - interviews, case studies, presentations, psychometric testing. The establishment of KPI's and monitoring arrangements. A failure to comply with employment legislation. Potential impact. Legal prosecution leading to fines and compensation. Damage to the organisation's reputation. Possible response. HR define and update policies and procedures that are legally compliant. HR monitor changes in legislation assess impact, communicating and implement changes to policy and procedures. Using employment law advisors and experts to clarify the need for compliance, as appropriate. Regular training and re- training of staff who are involved in the interview process. HR involved in the recruitment process to ensure application of policy and procedures. Gaining employment to the organisation by deception. Potential impact. Failure to achieve strategic and operational responsibilities and objectives. Legal prosecution leading to the payment of fines and compensation. Financial loss through fraud. Damage to the organisation's reputation. Possible response. Applying strict vetting procedures such as disclosure and debarring service (DBS) checks (previously CRB checks), use of vetting agents. Insist on seeing original qualification documents. Require candidates to demonstrate their competency during interview process. Inconsistency in the recruitment process. Potential impact. Legal prosecution leading to fines and compensation. Inability to attract the talented and experienced staff. Possible response. Documentation of policies and procedures supported by service level agreements. The establishment of KPI's and monitoring arrangements. What can internal audit do? Finding, developing and retaining talented people is more important than ever in today's highly competitive and rapidly changing world. People issues, such as recruitment and selection are therefore likely to feature on the organisation's risk register and the internal audit activity should think about including these on the internal audit plan. The level of priority will depend upon the relative significance of human resource risks compared to others on the strategic risk map or register. Review assurance providers. Internal audit may find that there are other parts of the organisation, including HR management who are providing assurance and information upon the mitigation of risks. Where this takes place internal audit can review the reliability of the assurances and reports that are given. For example HR services may report on how well departments are applying recruitment procedures and report against key performance indicators. Internal audit can provide an independent opinion on whether senior management can depend upon the statements being made and scope their work accordingly. Practice advisory 2. Provide assurance. In addition internal audit can provide independent and objective assurance that the content of policies and design of procedures for recruitment and selection are supporting the organisation's needs and objectives. Sometimes recruitment and selection can be regarded as a matter of routine with the focus of attention on applying the procedure without reflection on whether or not it is achieving the desired outcome - selecting the right people for the right jobs. Internal audit can evaluate the whole process by conducting a 'walk through' of the procedure with consideration of the overall efficiency and effectiveness. This should include reviewing the extent to which risks are being identified and managed. In a process audit of this nature it is worth considering the way: Policies and procedures are updated and refined to take account of lessons learnt, complaints, legislative changes and cost effective measures. Recruitment is delivering against wider initiatives, for example in relation to diversity and anti- discriminatory policies. Changes in policies and procedures are communicated and implemented across the organisation. Managers and those involved in recruitment have been given adequate training and re- training when legislative requirements change. Flexibility is built into procedures through the delegated powers and authority given to various managers across the organisation. Appropriate vetting checks are carried out to obtain proof of identity, qualifications and disclosure of convictions. Vetting should be commensurate with the nature of the business and proportionate to the role being advertised. Approaches to advertising and recruitment agencies are reviewed for their effectiveness. Personal data is kept complete, up- to- date and secure from unauthorised access. Standards and KPIs have been set out by HR (Service Level Agreements) and these are resourced, maintained and developed to ensure delivery. Manpower plans are successfully projecting resource requirements and are being delivered. Vacancy levels, turnover rates, staff and recruitment costs are monitored and controlled. Managers regard recruitment and selection in terms of successes, difficulties and issues. Internal audit can also carry out detailed testing on the controls that reduce high impact, high likelihood risks. 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