|
Continued from previous page
Similarly, firms with a strong interpersonal focus also
struggle less with retention issues. A team orientation and
work climate that fosters respect of and among employees
seems to result in lower turnover. "Employees more easily
develop commitments to other people than companies, so
the best way to keep them is to develop good social relations
at work between employees. On the other hand, organizations
that focus largely on tasks and task performance at the
expense of relationships have higher turnover," Cappelli says.
Commitment and loyalty – shown in a wide-ranging
body of research as vital to organizational success – are also
casualties of today's new employment contract. In fact,
today's combination of empowered employees and diminished
commitment is one of the biggest dilemmas modern
companies face, Cappelli believes.
What can companies do to increase commitment among
this mobile and wary workforce? Cappelli's paper makes several
recommendations, including giving employees autonomy,
showing genuine appreciation and support for
employees, making employees feel needed and that they are
making an important contribution, and offering training
and other investments in employees.
"Very simply, people are more committed when there is
reciprocity," Cappelli says. "When employees believe their
employer is supportive of their well-being, they are more
committed. The more valuable they feel, the more they see
themselves as attached to the organization. The more their
employer invests in them, the more they will feel a sense of
reciprocal responsibility."
The Human Capital Management Industry
Cappelli's most recent research interest involves the human
capital management industry – made up of search/recruitment
firms and staffing firms that provide temporary or
leased employees. In a few scant years, the industry has
become a $95 billion powerhouse that's expected to double
in size within the next five years. Nonetheless, this young
field – barely 10 years old – is still relatively unknown.
Cappelli attributes much of the industry's rapid growth
to technology. The booming online recruiting sector
includes a slew of job-related services, from job boards to
recruiting services to support services, and has allowed
employers to interface directly with potential applicants,
dramatically lowering the cost of employee searches.
Similarly, job seekers have a host of free online options.
Already a $3 billion industry that's expected to grow
sevenfold within the next five years, the online recruiting
industry includes powerhouses such as Monster.com, which
has more than 6 million resumes on its site – more than 5
percent of the U.S. adult online population. Cappelli points
out that on its peak day (Monday), Monster estimates more
than 4 million job searches take place on its site, and the
company reports it is growing by 15,000 resumes a day.
Beyond the job boards, however, are a dizzying variety
of online firms that offer new ways to match workers
and jobs. Some provide ways for applicants and employers
to supply portfolios of information such as videos of interviews.
Others offer extensive tests to measure the skills
of applicants.
"These online developments have important implications
for finding jobs, for employment relationships and more
generally, for broader society," says Cappelli. "Again, we see
that these trends make it easier for employees to be less committed
to their employer because it's so quick and easy to
find jobs online. On the employer side, 90 percent of North
American companies now recruit candidates on the web,
with 60 percent posting their job openings online.
"And the monopoly of information about jobs and
careers that employers once had has been eliminated. Companies
like Vault.com offer inside information about what
jobs in specific companies are really like. Salarysource.com
tells you what you should be making in a particular job in
a particular location. All of this adds up to a fascinating
change," Cappelli says.
Another interesting development is the growing use of
staffing firms that provide temporary or leased employees,
including Professional Employer Organizations, relative
newcomers that take on many of the legal obligations of
being an employer for their clients. Temporary help firms,
meanwhile, "create an opportunity and a market for part-time
work," Cappelli says.
|
