Chapter 3: Human Resources

Question 1

What are the elements of HR management? (7)

Answer 1

1. Planning
2. Selecting
3. Orienting
4. Training
5. Developing & rewarding employees
6. Managing employee performance
7. Termination

Question 2

What steps go into Planning? (Regarding HR) (3)

Answer 2

1. Evaluating existing human resources/staff to determine whether or not they are capable of producing the levels anticipated in the strategic plan. If they are not sufficient, the brokerage must establish a plan to obtain the necessary additional talent, and an idea of how organizational structure would be revised to accommodate the anticipated growth. (Do you have the people?)
2. To avoid crash hiring catastrophes, HR needs must be estimated early on in the planning process. A methodology to evaluate candidates and new employees should be established. A hiring timetable is important, as well as a contingency plan in the event that candidates cannot be found in a timely manner. (Plan early, establish timetable, create contingency plan)
3. A job description should be created for each of the roles that the brokerage hopes to fill. This assists in determining the kind of experience, knowledge, attitude, and behaviours that would be required for each role. (“perfect candidate”)

Question 3

How does a brokerage go about Selecting? (3)

Answer 3

1. Recruitment
2. Screening & Interviewing
3. Hiring

Question 4

What benefits are there with internal recruitment? (5)

Answer 4

1. Less expensive - no external recruiting costs, training & orientation costs are minimized
2. Vacancy of position is shortened - minimizes any erosion of client service
3. Less surprises - existing employees are known quantities
4. Improves morale - demonstrates commitment to development and growth of existing employees (Can move up the ladder)
5. Reduces turnover - advancement possibilities exist within the brokerage, and employees need not look for outside opportunities

Question 5

What tools are used in the screening & interviewing of candidates? (5)

Answer 5

1. Application form - consistent format that facilitates easy comparison
2. Resume - allows candidates to describe their competencies in their own words
3. Employment interview - used to determine whether the candidate is suited for the position, and to answer candidate’s questions for them to determine if the office environment fits their needs (Let them talk, open ended questions)
4. Testing - used to assess information/qualities of candidates, and should be used in conjunction with other selection tools, not in isolation. (Managers must not let test results to overrule their best judgement)
5. Reference checks - determines what the candidate’s previous responsibilities were, the quality of their work, as well as the attitudes/behaviours they exhibited

Question 6

What is a new employee required to sign upon being hired at a brokerage? (Typically) And, why?

Answer 6

Either a covenant not-to-compete or a non-piracy clause.

These are signed in order to protect a brokerage’s most valuable, monetary asset, their list of clients/coverages/expiry dates.

Covenants not-to-compete are difficult to enforce, so many brokerages use non-piracy clauses. These restrict former employees from soliciting/poaching accounts from their previous employer for a period of time.

Question 7

What are the elements of a training plan? (4)

Answer 7

1. Who is being trained?
2. Subject of training
3. Why are we training?
4. How will training be evaluated?

Question 8

What are the types of ongoing training programs? (4)

Answer 8

1. Quality service training - focuses on problem solving
2. Sales training - teaches selling skills in an environment where the long-term goal is to build client relationships
3. Product & service knowledge training - technical competence
4. Leadership training - how to train, how to coach & counsel, how to create a motivating environment, how to empower employees

Question 9

What does developing and rewarding employees help the brokerage?

Answer 9

Development and rewarding of employees helps a career path that employees can easily identify and track progress in. It also outlines the skills, experience, and education that are required in order to progress.

Question 10

What is the disadvantage of traditional approaches to assessing employee performance?

Answer 10

It ignores the qualitative aspects of how well the assessment activities were performed. Ideal structures for employee assessment should give weight to both quantitative and qualitative aspects of employee performance.

Question 11

What are some tips regarding termination? (2)

Answer 11

1. Never do it alone; have a colleague alongside when delivering termination notice
2. Document, document, document