Staffing process

The essentials

Staffing is carried out through a series of steps that start with estimating how many people are needed and end with fixing their pay. These steps make sure the organisation has the right number and kind of people.

Key points

• Estimating the manpower requirements: through workload analysis (number and type of people needed to do the work) and workforce analysis (number and type of people available).
• Recruitment: searching for prospective employees and encouraging them to apply.
• Selection: choosing the most suitable candidates from those who have applied.
• Placement and orientation: placement means putting the selected person in the job for which he or she was chosen; orientation means introducing the new employee to the organisation, colleagues and rules.
• Training and development: improving the skills and abilities of employees.
• Performance appraisal: evaluating an employee's current or past performance against set standards.
• Promotion and career planning: moving employees to higher positions with more responsibility and pay.
• Compensation: all forms of pay or rewards given to employees; it may be direct (wages, salaries, incentives, commission) or indirect (paid leave, insurance).

Exam tips

• Workload analysis tells how many people are needed; workforce analysis tells how many are available. The difference shows shortage or surplus.
• Placement and orientation are listed together as one step of the staffing process.

Common mistakes

• Putting selection before recruitment. Candidates must first be attracted, then chosen.
• Confusing orientation (introduction to the firm) with training (improving job skills).