Being one of the leading loyalty marketing companies, LoyaltyOne needs to alter its current recruitment strategies so as to comply with the most recent requirements. Currently, the most effective approach to establishing the best recruitment channels is forecasting (Belcourt, Singh, Snell, Morris, & Bohlander, 2017). With the help of this approach, the organization will be able to recruit the most skilled specialists and, at the same time, avoid spending extra time and resources on hiring individuals that are not suited for its processes.
In the case of LoyaltyOne, the most crucial of the three forecasting components is the demand for labor. The firm’s managers should resort to this practice in order to predict how many employees they should hire. What is more, forecasting allows assessing what knowledge and skills the newly-recruited people should possess. Since LoyaltyOne conducts diverse businesses, forecasting is the most viable proactive practice to employ.
Human resource (HR) managers can approach forecasting from two points of view: qualitative and quantitative. Qualitative techniques of forecasting are subjective due to being grounded in surveys and opinions (Vasigh, Fleming, & Tacker, 2016). Meanwhile, quantitative forecasting presupposes the use of statistical data for predicting changes in employee demand. Both of the approaches are divided into methods and have some advantages and disadvantages. Qualitative forecasting incorporates focus groups, historical analogy, market survey and experiment, Delphi method, and barometric forecasting (Vasigh et al., 2016).
In general, the benefits of these approaches include flexibility and the possibility to notice changes in data at an early stage of forecasting. The limitations of qualitative forecasting are concerned with the complexity and the low level of accuracy. Quantitative forecasting is largely divided into cross-sectional and time-series statistics. The examples of this approach include trend analysis, descriptive statistics, random effect, and others (Vasigh et al., 2016). The advantages of quantitative forecasting are reliability and accuracy, whereas its disadvantages comprise the dependence on economy changes and primitive estimation of actuality.
When it comes to the leading-edge sourcing approaches, LoyaltyOne should pay close attention to such means as the trend analysis of labor markets and the use of technology. Trend analysis is a quantitative technique that helps managers to predict the company’s need for new workers based on an organizational index (Belcourt et al., 2017). Specifically, trend analysis can promote the identification of the most appropriate niches for various roles in which LoyaltyOne’s employees operate.
The use of technology is probably the most modern and actual sourcing approach that can be utilized by managers. LoyaltyOne views its current HR strategies a little old-fashioned, and the employment of technology in the recruitment process can help the managers to avoid this problem. An accelerated advancement of technological developments provides HR managers with high-quality data on potential employees, their skills, and experience (Bondarouk & Brewster, 2016). With the use of technology, LoyaltyOne will be able to locate new team members within the digital context, which will encourage innovation and progress in the recruitment process.
The application of proactive best practices and leading-edge sourcing approaches by LoyaltyOne is likely to enhance the organization’s recruitment methods. As a result of altering its hiring methods, the company will make it possible to fill in every niche with the most suitable candidates. Based on qualitative and quantitative forecasting techniques, the managers will single out the most competent specialists out of a pull of those interested in being hired. The outcomes of the enhanced HR strategy will be beneficial both for LoyaltyOne and its employees.
References
Belcourt, M., Singh, P., Snell, S. A., Morris, S. S., & Bohlander, G. (2017). Managing human resources (8th ed.). Toronto, Canada: Nelson Education.
Bondarouk, T., & Brewster, C. (2016). Conceptualising the future of HRM and technology research. The International Journal of Human Resource Management, 27(21), 2652–2671. Web.
Vasigh, B., Fleming, K., & Tacker, T. (2016). Introduction to air transport economics: From theory to applications (2nd ed.). New York, NY: Routledge.