RECRUITING AND

SELECTING
THE EMPLOYEES

Prepared by:

Eva Marrine Sagune

Imam Haryanto
Rusdi

Human Resource Supply and Demand

A simplified explanation of forecasting labor

demand and supply

Labor Supply The availability of workers with the required

skills to meet the firms labor demand.
Labor Demand How many workers the organization will need
in the future.
Human resource planning The process an organization uses to
ensure that it has the right amount and the right kind of
people to deliver a particular level of output or services in the
future.

HUMAN RESOURCE PLANNING

The Hiring Process

Recruitment

Selection

Socialization

Challenges in the Hiring Process

Determining the characteristics most important to

performance
Measuring the characteristics that determine
performance
Evaluating applicants motivation levels
The motivation factor --- performance = ability x
motivation
Who should make the selection decision?

Meeting the Challenges of

Effective Staffing

Recruitment
Sources of recruiting:

Current employees
Referrals from current employees

Former employees

Print and radio advertisements

Internet advertising and career sites

Employment agencies

Temporary workers
College recruiting

Customers
Nontraditional Recruiting

 External

vs. internal candidates

Recruiting protected classes
Planning the recruitment effort
Planning your job search

Selection

Reliability and validity

Selection tools as predictors of job
performance
Combining predictors
Selection and the person/organization fit
Reactions to selection devices

Reliability Consistency of measurement, usually

across time but also across judges.
Validity The extent to which the technique
measures the intended knowledge, skill, or ability.
In the selection context, it is the extent to which
scores on a test or interview correspond to actual
job performance.

Selection tools as predictors of job performance

Letters of recommendation
Application forms
Ability tests
Personality tests
Psychology tests
Honesty tests
Interviews structured
Assessment centers
Drug tests
Reference checks
Background checks
Handwriting analysis

Personality Tests
Extroversion
Agreeableness
Conscientiousness
Emotional stability
Openness to experience

Structured Job Interview

Situational Interview

Job Knowledge

Worker Requirements
Questions

Unstructured Does not Mean Unprepared:

Making the Most of the Hiring Interview
Six Simple Tasks

Be prepared
Put applicants at ease in the first few minutes
Dont be ruled by snap judgments or
stereotypes
Ask results-oriented questions
Dont underestimate the power of silence
Close the interview with care

Reactions to Selection Devices

1. Applicant reactions to selection devices
2. Manager reaction to selection systems

Legal Issues in Staffing

Discrimination
Laws

Affirmative Action

Negligent Hiring

Develop clear policies on

hiring as well as on
disciplining and dismissing
employees
Check state laws regarding
hiring applicants with
criminal records
Learn as much as possible
about applicants past
work-related behavior

CASE STUDY:

RECRUITMENT AND SELECTION

IN LOB CORPORATE BANKING

BANK DANAMON

BACKGROUND

Established in 1956, PT Bank Danamon Indonesia,

Tbk. is the third largest private national bank and
the sixth largest commercial bank in Indonesia,
with a 5% share of domestic loans and deposits
Asia Financial Indonesia Pte. Ltd. (AFI) owns
67.87% of Danamon. AFI is a consortium of Asia
Financial Holding 85% (wholly owned by Temasek
group) and Deutsche Bank AG 15%.
Temasek Holdings is a Singapore-based
investment company which owns by Government
of Singapore with AAA rating. The remaining of
Danamons shares are publicly owned.

HR Organization Chart
HUMAN RESOURCES HEAD

HR Planning &
Measurement
Head

HR Service
Delivery Head

HR Strategic
Partner Head

HRIS & Services

Employee
Relation
HR Region

Human Capital
Head

Learning Group
Head

Organization &
Performance
Management

Sourcing,
Assessment &
Talent
Management
Remuneration

HR Policy on
Recruitment and Selection

Established in BOD decision letter (SK) for bank

wide as well as LOB, reviewed annually to follow
business development.
The objective is to fulfill company needs align
with the business plan of respective units with
transparent, objective, and professional selection
processes based on Man Power Planning (MPP).
Employee status to be hired:

Permanent staff
Contractual staff
Trainee
Outsourcing staff

General Policy, there are 2 reasons for recruitment and

selection:

Staff additional for business development or man power deficiency

Staff replacement due to staff rotation, resign, pension, etc.

Take consideration on budget system established by

Financial Control Department
No discrimination against applicant based on sex, race, etc.
Source or recruitment and selection:

Internal, trough job posting

External, with channel: advertising, referral, job fair, walk in
applicant, agent (head hunter), or outsourcing/vendor (if needed)

Supply and Demand Condition

3 periods of condition:
Up to September 2008: Mass recruitment
Mainly to support rapid growth of LOB SEMM (micro
banking)
Consolidation period, October 2008 mid 2009:

Stop/freeze recruitment from external

Internal sourcing (zero growth)
No contract extension

After consolidation period, mid 2009 onward:

Selective recruitment from external sourcing only
for key position, that has to align with specific
business plan and subject to special approval from
BOD

Hiring/Selection Process

Refer to HR budget system, the respective unit

establish Man Power Form (Formulir Kebutuhan
Pegawai). Any deviation should get approval from
respective PIC in HR Head Office, and for certain
level should get approval from BOD.
Recruitment and selection has to consider hard
competency and soft competency supported by
educational background, work experience,
reference, and medical check-up.
Recruitment with direct familial relationship or
marital relationship should be avoided. Any
deviation should get approval from BOD.

Hiring/Selection Process

Responsibility in recruitment and selection:

Selection process and PIC:

Sourcing, Assessment & Talent Management for Head Office

staff
HR Region for Regional and Branch staff
For Middle Line and Senior Management, mainly interviewed
with 2-3 members incorporated with reference check and
medical check-up. PIC is Sourcing, Assessment & Talent
Management
For Clerical up to First Line Management, plus psycho test to
measure attitude and personality (web based), also ability test
if needed, with HR Region as PIC

Special tools (Gallup) for MT staff

Recruitment and Selection

Evaluation

In annual basis
Performed by HR Head Office in coordination with
respective LOBs
Conveyed to HR Committee and respective LOBs
for process improvement

Recommendation

Performing recruitment and selection evaluation

in comparing:

Citizenship: Foreign vs local staff

Staffs original company: Foreign vs local bank

In favor effectiveness, efficiency, Corporate

culture building, and turnover, align with bank
and policy.
Evaluation on staff sourcing, especially for
internal, former staff, and referral with certain
employment period, compare to existing staff
(with longer employment period).

Thank You