Recruitment and selection Flashcards
Recruitment is necessary….
- to meet demand for existing services
- to meet anticipated future demands for services I.e. shift of services into another market sector
- natural turnover of staff/replace those who leave
- business plans that involve growth
Difference between recruitment and selection
Recruitment
Identifying potential candidates for the job
“Getting them through the door”
Could involve personal recommendations, adverts or using agencies
Selection
Making a decision about who to employ
Interviews, psychometric testing or assessments
Typical recruitment and selection process
Determine job requirements (location, job description, job specification)
Undertake recruitment
Make a selection (interviews and assessments)
Job offer
What is a job description and what will it include?
Also known as role profile or role description.
Typically contain
- job title
- overall purpose and scope of the job
- broad statement of duties
- title of person who the job holder reports to
- relationship with other jobs/roles within the business
- titles of anyone reporting to the job holder
- could include job specific objectives and expected results
Starting point for assessing competency/forms part of the appraisal process. For someone to perform they need to know what is expected of them and the boundaries of their job.
SM&CR - SMF job description should link to SORs.
Certified roles - annual competency certification - job description the starting point
What is a person specification? & what are Alec Rodgers 7 elements?
Focuses on the skills, attributes & characteristics of the ideal candidate.
Alec Rodgers suggested 7 elements that should be included:
- Physical make up eg. progessional appearance, but care should be taken to not breach equal opportunities legislation.
- Qualifications & or experience - e.g. level 4 qualified or experience of pension transfers
- General intelligence e.g. numeracy/ literacy skills
- Special aptitudes such as typing, advisory, advisory skills or experience of a particular software
- Interests - leisure activities or team sports
- Disposition e.g. dependable, honest, good attitude
- Circumstances e.g. mobility, ability to work remotely
Competency based interviews - what are they & what are the 4 benefits?
Style of interviewing that asks candidates to demonstrate certain behaviours & skills by asking how they have dealt with previous workplace situations.
Using past experience can help predict future behaviour.
Identify the required competencies for the role and question based on them.
4 Benefits
1. Provides candidate with the chance to demonstrate expertise and how they would handle real-life situations.
- Provides evidence of the competencies required for the role.
- Ensures consistent approach in interviews
- Candidates are less able to bluff and so should result in the most able person being appointed
Fit and proper requirements
- SMF
- Certified
- Investment advisors
Honesty, integrity and reputation
Competency and capability
Financial soundness
SMF
At outset by the FCA (regulatory references & criminal records check needed)
Ongoing by the firm - may redo criminal records & financial soundness checks)
Ad hoc e.g. disciplinary proceedings.
Certified staff
At outset by the firm (regulatory references & criminal record check)
Ongoing by the firm - possibly criminal record checks although not a requirement, financial soundness checks
Ad hoc e.g. disciplinary proceedings
Retail investment advisors also need SPS on an annual basis - looks at competence and conduct, doesn’t look at financial soundness, that is covered in annual firm checks.
Application and referencing
No specific stipulation from FCA or PRA for how referencing should be carried out for SMF or certified roles.
Employment history - 5 years job role history including explanations for gaps.
Also including details of any directorships held in last 10 yrs and confirm not in a firm that has been subject to investigation/financial difficulties/ committed offences.
Criminal record checks (Disclosure and Barring Service check - DBS).
Spent and unspent criminal convictions and cautions must be disclosed to the FCA.
Again so specifications to support competence but firms should obtain candidates’ original qualification certificates and keep a copy on record.
Firms may wish to see evidence of CPD.
References
Employment reference - last employer as a minimum.
Should include:
- Period & nature of service
- Employment history to best of firms knowledge
- Training, CPD & qualifications undertaken
- Any restrictions on investment business
- KPI info such as complaints
- Disciplinary record
- Debts
Personal reference - may play a part but don’t give undue emphasis.
Financial soundness - if under financial pressure in own circumstances may cause a conflict. Anything that might suggest the person may put their own interests above the clients should be closely looked at e.g. CCJs, bankruptcy, IVAs. Credit reference check would be conducted & investigated.
All this information should be kept on record, along with CV and application form.
FCA notifications
SMF - must inform the FCA as soon as practicable but within 7 business days of anything that might affect fit and proper assessment.
Certified functions - provided annually by FCA return. Report name of individual, conduct rule breached & action taken. Must submit even if nil return.
Retail investment advisors - must notify FCA if has 3 or more complaints upheld within a 12 month period
or
where redress paid exceeded £50,000 for any one upheld complaint.
3 types of employed basis’
- an employee
- a self-employed contractor
- a worker
Employed statutory rights
Eligible for:
- written statement of employment (within 2 months of starting work)
- pay above national minimum wage
- paid sick, maternity, maternity, adoption or holiday leave
- maximum working week of 48 hours
- antenatal care
- ability to apply for flexible working hours
- grievance procedures
- redundancy pay & minimum notice periods
- the right not to be treated less favourably if work part time
Self-employed contractor statutory rights
Doesn’t have same rights as employed. Relationship could be terminated at any moment without notice (unless in the contract).
Their rights include:
- protection of their health & safety
- protection against discrimination in some coded e.g. sex, age, disability
- whatever rights and responsibilities set out by the terms of the contract they have
Worker statutory rights
Middle ground between employed and self-employed.
Associated with casual work, the ‘gig economy’, flexible working with zero hours contracts.
Their rights include:
- minimum wage
- protection against unlawful deductions from wages
- statutory minimum level of paid holiday
- statutory minimum length of breaks
- maximum 48 hours working week (can opt out)
- protection against unlawful discrimination
- protection for whistle blowing
- right not to be treated less favourably if work part time.
Less likely to get paid annual leave, sickness benefits, protection against unfair dismissal.
Employment vs. self-employment
3 key criteria to determine which
Worker is defined in UK law.
Employee and self-employed contractors are based on case law.
3 key criteria to determine which:
1. Personal service - Applied to employees and workers - must do work themselves, cannot sub-contract to a 3rd party.
- Control - who decideds what gets done, how and where? Self-employed typically determines this themselves. An employee will have this decided for them by the employer.
- Mutuality of obligation - an employer has an obligation to provide work and employee is obliged to accept. This would not apply to a self-employed contractor.
Other factors to consider
- whether there is a contract
- whether the individual works mainly or exclusively for one company
- who provides the equipment to undertake the role
- who takes the financial risk
- who determines the hours worked and basis of remuneration
Ultimately day to day relationship that is used to determine the employment status, not whether there is a written contract or not.
Employment contracts
Self employed have a contract for services.
Employed and workers have contract of service.
Contract can be written, verbal or implied (or a mixture).
But employees and workers must be issued a written statement of employment on or before their start date. It must include:
- name of employee and employer and place of work
- title and brief description of duties
- rate of pay and payment intervals
- any other benefits
- details of probation period
- details of training required to complete
- hours of work & holiday entitlements
- length of notice for both parties
A wider statement must be provided within 2 months of starting. It will contain details of:
- pension scheme
- the right to non compulsory training
- disciplinary, dismissal & grievance procedures
