Insurance Company For 21st Century (IC21)  
  Logic9  
  Simulation Training  
  Puzzles  
  Talks  
  Consultancy  
  Ask Mr Tan  
  Articles  
  Marketing  
  Good Financial Products  
  Learn about Insurance  
  Dr Money's articles  
  Tan Kin Lian's Blog  


Recruit people for a long term career

I advise a company to adopt the following approach in its recruitment. It is aimed at recruiting people who are prepared to work for the long term, and to reduce employee turnover.

1. Introduction
We wish to recruit people who have the interest to build a long term career with us.

2. Long term career
The advantages of a long term career are:
a) By working for a few years, an employee can learn to know the knowledge of the business and the skill of dealing with people. This know-how is important for the development of a person.
b) We will offer the opportunity for our colleagues to grow their career, in line with the growth of our business.

3. High employee turnover
We wish the wastefulness of high employee turnover:
a) High cost of recruiting and training new employees
b) Disruption to timeliness and customer service

Some people join a new company, with the intention to continue looking for a better, higher paying job. The employment history shows several short spells of less than one year with each employer. Some employers avoid recruiting these "job-hoppers".

However, the turnover could be due to reasons beyond the control of the employee, e.g. joining a company that is actually different from what was expected.

4. Our approach
We adopt the following approach for the recruitment of new employees:
a) Provide clear information about the job and our future
b) Offers a starting salary that is similar to the current salary of the employee
c) Provides a salary increase of 10% plus a one time bonus of 1.2 month at the end of 12 months.

This approach recognises that the new employee is not able to be productive during the initial 12 months, and requires to be trained on the job.

We hope to attract new employees, who see that there is value in staying for the long term with us. They look forward to their reward at the end of 12 months, after they have acquired the competence and are able to contribute to our growth.

Like existing employees, the new employee will enjoy bonus and promotion opportunity during and after the first 12 months.