Relation between HR policies and employee satisfaction: A case study on PMP Recruitment Limited

This report discusses the relation between employee satisfaction and HR policies in PMP Recruitment Limited. It covers SWOT, PESTLE, and Porter's Five Forces analysis, identifies problems and solutions, and evaluates primary and secondary research. The report also explores the impact of HR policies on employee satisfaction and productivity.

The Business Consultancy

executive summary
this report has discussed about the relation of employee satisfaction and HR policies. It has
covered secondary analysis and primary analysis on the same topic and identify problems and
also solution of the problem. It has also evaluated framework like swot, pestle and porters five
forces.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Component 1....................................................................................................................................1
Situational analysis of the company............................................................................................1
Possibilities..................................................................................................................................9
Specific project..........................................................................................................................12
Specific project..........................................................................................................................14
CONCLUSION..............................................................................................................................15
COMPONENT three......................................................................................................................16
INTRODUCTION.........................................................................................................................16
REFERENCE.................................................................................................................................17

Topic: To identify HR policies and its impact on employee satisfaction. A study on PMP
recruitment Limited.
INTRODUCTION
Consultancy business is one of the important sector. As they provide or fulfil employee related
company need. This report will discuss about company which is PMP recruitment Limited. It is
the consultancy company which is based in UK. They are the leading supplier of temporary and
permanent labour. Recruitment industry is the fast growing industry. Company recruit and select
skilled and knowledge employees. They attract candidates by posting attractive advertisement
regarding vacancy. They work with client to attract and hire workforce in the company. Along
with recruiting the candidate company also retain talent employees in the company (Our Vision
and Values., 2021). So it can be said that talent management is done by the company. Retaining
talented workforce is essential because they are the only person which will help in the growth of
the company. As talented employees are the high performer employees of the company. This
report will discuss about different models like swot, pestle and porters five forces to analyse
market information, industry reports etc. it will identify problems from the situational analysis
and will also conduct primary research. It will also identify potential solutions of the problems
by applying ansoff matrix. It has also shed light on the objectives of the report and incorporates
costs, human resources and timing of the completion of the project and it will also discuss about
the reflection.
MAIN BODY
Component 1
Situational analysis of the company
swot analysis
strength-
the biggest strength of PMP recruitment Limited is their reputation. They are having good
reputation in the market which is helping them in fulfilling their objective. As PMP is the
recruitment company so they are expert in effective candidate screening. So with the help of
effective screening they are able to provide efficient employees to the company (Gupta, Gupta
and Gupta, 2019). Organisation is having strong compliance as they have power to attract
talented workforce.
1

Weaknesses-
the weakness of the company is that they are providing limited services only. This company is
only indulge in providing recruitment related services only which involve providing high
volume of manpower so that recruitment needs of their clients can be fulfilled. Company should
increase their services in order to generate more sales.
Opportunities-
organisation can provide proper training to their new and existing employees so that they can
perform effectively and can contribute in attaining company's objectives. Advanced technology
is also opportunity for the company. There are many computer based software which can be
used by company which facilitate the recruitment process fast (Widhiyaningrum and et.al.,
2017). With the help of emails company can circulate vacancy related message to wider
audience.
Threats-
competitors are thereat to the company. As there are many recruitment companies in the market
nowadays which is providing same services in less price. So clients are shifting to those
companies. Changing government regulations is threat because implementation of strict policy
can affect on the profit margin of the company.
Pestle analysis
political factors-
most of the policies are made and implemented by the local government of the country. In those
countries in which this company is operating is having flexible rules and regulations. The
policies which is laid by the government is as per the world trade organisation norms.
Government also regulate PMP recruitment Limited practices so that business will not practice
unfair means.
Economic factors-
it consists of fiscal and monetary policies which is form by the government only. If the deficit
will get increase then it can increase fiscal trouble over economy (Jafari and Othman Soleiman,
2020). In this competitive world it can be seen that there is high demand of talented workforce.
So they are approaching recruitment agency for the same. If the employment rate is high then it
will help company in finding out talented and skilled employees easily for their clients. Work
force productivity has increased in the company because of the effective HR policies.
2

Social factors-
due to the flexible immigration policies, now company can find out potential candidates easily.
This help company in getting talented employees globally. High birth rate is good indicator for
the company because in the future there are more chances to get efficient candidates.
Technological factors-
new technology is helping business in delivering fast services to the clients. With the help of
technology it has become easy for the company to search for talented candidates. PMP
recruitment Limited have adopted digitalisation through which they can easily promote their
company.
Legal factors-
company make sure that they follows laws properly (Zahari and Romli, 2019). They are
providing safe working environment to their employees so that they can work by giving their
hundred percent. Every country have different health and safety laws.
Environmental factors-
it includes factors like climate, weather, pollution etc. PMP recruitment Limited have started
campaign to reduce air pollution. They have also pledged that they will reduce carbon emissions
and footprints and make sure that their business are not harming the environment in any way.
Porters five forces-
threat of new entrants-
it is low because it is very difficult to achieve the economies of scale in this sector in which
PMP recruitment Limited is operating. This will help company in attaining competitive
advantage and also getting more cost. The capital which is required to start this business is also
high so this is also the reason which can turn off new companies. In this industry government
have strict rules and regulations so that also restrict new firms to enter in this particular industry.
Bargaining power of suppliers-
this is low because the number of suppliers in this industry is more and buyers are less. It results
in less power of suppliers and that is why suppliers have very less control over prices (Casañ,
Alier and Llorens, 2021). PMP recruitment Limited have less switching cost so that is why
bargaining power of supplier is less. Almost all suppliers are providing standardised products so
that is why it is easy for company to switch.
Bargaining power of buyers-
3

it is also low because the number of suppliers are more and the firms which is providing
recruiting services are less. So it can be said that buyers are more and they have less option to
choose with and also buyer have less control on prices.
Threat of substitute products or services-
it is low because there are less substitutes are available in the market. And also the substitute
which is available in the market are providing low quality of services so that is why service
substitution has become weaker force (Vintilă and et.al., 2017). In order to avoid substitution
threat company can provide differentiated products and services.
Rivalry among existing companies-
the rivalry is more as the sector in which PMP recruitment Limited is operating have few
industries but they have strong eye on company. When there are few companies then they keep
their eye properly on the moves of their competitor firms. Although company have large market
share but by launching innovative services by their rival firms can reduce company's customer
base. The fixed cost in which the company is operating is pretty high so this demotivate the
existing firm to exit this sector.
Problem identification-
competitors are the biggest problem for company because almost all companies are providing
same services which is reducing profit margin of the company. If any company will decrease
prices then client or customer will get shifted to those companies. This practice is also reducing
customer base of the company. Strict norms and government regulations are also problem for the
company (Lomazov, Ivashchuk, Lomazov and Akupiyan, 2021). There are various rules which
company has to follow while carrying their business. There is requirement to change HR
policies so that PMP recruitment Limited can deliver good experience or satisfaction to the
employees. It has also noticed that employees of the company is highly demotivated as they
have facing issues in balancing their work and life. Demotivated employees are the biggest
problem to the company because demotivation can lead to decrease in the level of employee
productivity.
Customer preferences are changing and that is problematic for the company because for this they
have to launch innovative services in the market. Innovation is costly because it require strong
research team who have expertise and knowledge to bring innovation. In this competitive it has
become difficult in recruiting right candidate. As people are having various options to chose
4

within so that is why for PMP recruitment Limited it has becoming difficult to satisfy needs of
their clients especially to those clients whose salary budget is less. Company is also struggling is
getting diverse candidates. As employees are not ready to migrate easily (Demirtas and et.al.,
2021). If they are getting good options in their own country or place then why they choose
migration option. Hiring such team which can ease the hiring process is also problematic
because candidates which have effective communication skills and which can evaluate candidate
properly are less in the market. Adopting advanced technology is also issue because adopting
technology incur high cost to the company. And if company will not use technology in operating
business then they can lose their market share.
Primary data collection
are you satisfied with your company? participants
yes 12
no 8
total 20
5
yes no total
0
2
4
6
8
10
12
14
16
18
20
Column B

Interpretation-
From the above bar graph it can be interested that about of 20 respondents 12 said yes and 8 said
no when they are asked that employees are satisfied or not. Majority of employees are satisfied
with the organisation because they take care of the need of their workforces (Shtal and et.al.,
2018). Employees are the most important asset to every company so that is why company should
have make their employees happy and satisfied. Satisfaction comes from inside and if employees
are satisfied then they will work more hard.
how company can satisfy their workforce? participants
 By providing them good working
environment
2
 extra benefits 3
 work life balance 5
 all 10
total 20
6
By providing them good
working environment
extra benefits
work life balance
all
total

Interpretation-
from the above pictorial representation it can be observed that out of 20 participants 10 said all.
2 said good working environment, 3 said extra benefits and 5 said work life balance when asked
about elements which can satisfy employees. It is important to give work life balance to
employees. Employee also have their personal life which they has to give time. In extra benefits
employee can provide vacation package, discount coupons etc. next is good workplace
environment. It is most important thing because every employee prefer safe and secure
workplace.
do you agree that HR policies of your
company need to be modified.
participants
 agree 8
 strongly agree 1
 disagree 6
 strongly disagree 5
total 20
7

Interpretation-
from the above image it can be interpreted that out of 20 respondents 8 agree, 1 strongly agree, 6
disagree and 5 strongly disagree in modification of HR policies of the company. There are
various problems in the organization due to which talented work forces are leaving company and
due to which company has to face labor turnover. So that is why changes in HR policies can
improve condition.
there is relation between employee satisfaction
and employee productivity?
participants
yes 18
no 2
total 20
8
agree strongly agree disagree strongly disagree total
0
2
4
6
8
10
12
14
16
18
20
Column B

Interpretation-
from the above diagram it can be said that out of 20 respondents 18 said yes and 2 said no when
they are asked that there is relationship between employee productivity and satisfaction or not. If
employee will get satisfied then only their productivity will increase. Employee will only work
hard if they are satisfied with the company and that will definitely increase productivity.
do you think that employee satisfaction is
important in attracting talented
candidates?
participants
yes 17
no 3
total 20
9
yes
no
total
0 2 4 6 8 10 12 14 16 18 20
Column B

Interpretation-
from the above picture it can be interpreted that from 20 participants 17 said yes and 3 said no
when asked about that employee satisfaction attracts talented employee within organization. As
when the existing employee gets satisfied then only other talented candidates will think to apply
in the company. Talented candidate will also gets attracted because of word of mouth publicity
by existing employees of the company. As every employee wanted to work in those company
whose existing employees are satisfied with the company.
Possibilities
In order to solve competitor related problem it is important for the company to identify need of
their customers. PMP recruitment Limited should produce or provide those services which can
satisfy their customers. As company can receive more sales only when they satisfy their
customers (Hofmann and Osterwalder, 2017). It is not always required to produce innovative
products and services only but company can also make modification in their existing range of
the product or services. As customers will not enjoy same services for longer duration and they
require something different timely. In order to beat the competition it also essential that
organisation fulfil needs of their employees. When employees of the company is happy then
they will also makes customers happy by putting complete efforts. PMP recruitment Limited
10
yes no total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Column B

can hire team which can help them in dealing with strict rules of government. As individual
which have expert knowledge can help company in making such internal strategies which will
help company to work smoothly even under strict government norms and regulations (Berisha
Qehaja, Kutllovci and Shiroka Pula, 2017).
In order to improve work life balance of the workers company can hire more candidates so that
workload on the existing employees can reduced and they can balance their personal life easily
along with the professional life. In order to get right and skilled candidate company should have
start providing extra benefits to their employees apart from salary. Perks and bonus is also the
reason of attracting talented employees. PMP recruitment Limited should have start recognising
their workforce for their good work. This will be helpful for the company in retaining their
existing employees. Costs of implementation of advanced technology is considered as the
problem for the company. So for this thing company should have ignore using costly technology
and start searching for their substitute option.
Ansoff matrix
this matrix have four elements which are as follows-
market penetration-
in this strategy company focus on the existing market only and try to find out ways of
penetrating in the existing market (Nouri and Soltani, 2017). Through market penetration
strategy company can increase their sales and revenue by selling existing products in the existing
market. In this strategy there is not need to put more budget because company is working with
the existing market only. This strategy only require little research.
Product development-
it is the strategy in which different products or services are produced by the company. Here
company focus on innovation so that they can attract customers. Here company sells different
products in the existing market only. Company try to increase their customer base by providing
innovative products. This strategy can help company in getting new customers and also help in
retaining existing one.
Market development-
this is the strategy in which company sells existing products or services in new market. Before
adopting this strategy organisation should have do proper research so that they can get
knowledge that the market where they are providing products or services are interesting in the
11

services which is providing by the company or not (Hine and et.al., 2019). Market development
will also help company in getting exposure of different market.
Diversification-
this is one of the most risky strategy. Diversification means when company sells new products in
new market. It is the risky strategy because company products and market both are new. So there
is possibility that customer can reject product or services of the company.
PMP recruitment Limited can go for market penetration option. As the services which
company is providing is high in demand because there are many companies around the globe
which are required employees (Perez and et.al., 2020). So PMP recruitment Limited can expand
in those countries which have more companies which have high man power requirements.
From the primary data collection it can be said that employee satisfaction plays vital role in
growing the company. When employee will satisfied than they will work hard and their
productivity will also get increased. HR policies have direct relation with employee satisfaction.
HR policies are formed or designed for employees of the company only so that is why good HR
policies facilitate employee satisfaction. In the HR policies of the company they should focus on
work life balance of employees, benefits for employees and good workplace environment etc.
HR department of the company should be strong because they not only hire good candidate but
also put efforts of how to retain existing employees in the company (Cleberg, 2019). Employee
are the important resource for the company so that is why making them happy and satisfied is
must. Employee contribute majorly in growing the organisation so that is why more focus is
going to their satisfaction. When employees are satisfied then they will also help company in
bringing talented workforce with the company. Demotivated employee can make bad image of
the company in the market. Manager of the company should have strong enough to motivate
employees so that they can retain for longer time period.
This topic has been selected for the research because employee satisfaction has becoming
important and good HR policies can help in retaining employees in the company for long time.
This project will help other companies in knowing the importance of employee satisfaction and
how they can satisfied their employees (Alyamani, 2020). Company will also come to know that
which HR policies will be helpful in fulfilling needs of their employees and make them happy.
12

Specific project
Aim
the aim of this report is to identify HR policies and their impact on employee satisfaction. Study
on PMP recruitment Limited.
Objectives
 to understand the concept of employee satisfaction.
 To identify methods of employee satisfaction.
 To evaluate relation between HR policies and employee satisfaction.
Detailed plan
costs-
this is the factor which provide the total amount in which the project will get completed. In order
to complete the project it is important that costs should be allocated to each and every activity so
that project will not go out of budget. In order to complete all the activities of the research $
1000 are needed. Cost is one of the most important factor without proper budget, project cannot
get completed as per the expectation.
Scope-
the scope of this research is that to know that HR policies can actually impact employee
satisfaction (Švagždienė, Štreimikienė and Jasinskas, 2021). This research is based on PMP
recruitment Limited which is the consultancy company and provide workforces to their clients.
Time-
this is the aspect which tells that how much time the research will take or the overall time of the
research. In order to complete this research, it is required approximate 6 weeks and 48 days.
Within the given time period researcher will going to attain the research objectives or goals.
Time is also the important aspect. If the project will not completed as per the deadline then it
will be of no use. So that is why if researcher will allot time to each activity in advance only
then it won't get delay in project completion.
Human resources -
human resources are the most important resource in the research. Without having skilled human
resource, research will not be able to attain their objectives. Human resource have such ability to
convert complex task into simpler one (Jintana, Sopadang and Ramingwong, 2021). Although
13

technology is evolving but it cannot replace the need of this resource. As human resource are the
vital resource within all the other resources.
Work breakdown structure
Stakeholder analysis
the internal people of the company or project are involved in the project and can affect the entire
project is known as the stakeholders. In the stakeholder analysis the people which are required in
the project are identified before the project starts. Within the project they are group together as
per their skills and knowledge (Forrester and et.al., 2019). Stakeholder analysis is important so
that goals of the project can be easily achieved. It is also helpful in solving conflicts of the
project. With the help of stakeholder analysis it will become easy to manage negative
stakeholders and also reducing negative impacts.
Stakeholder mapping
high power, high interest-
14

there are various stakeholders which has to keep happy because they have direct interest on the
success of the project. As they are having highest power so that is why they are more interested
in the project. It includes company owners, employees, managers, leaders , shareholders etc.
high power, low interest-
it includes those stakeholders which have high power in the company but their interest in the
project is quite lower. As they have high power so it is very important to keep such stakeholder
satisfied and happy (Krupina, 2021). As they have less interest so in the communication such
people are often eliminated. Example government, public etc.
low power, high interest-
this include such stakeholder which do not have much power directly in the activities of the
company but have high interest. It is important that such stakeholder should have knowledge of
what is happening inside the company and also ask them if they are having any issue or problem
with the project (Hanif and Fafurida, 2018). Example investors, as the investors cannot
participate directly in the company but they are interested in the profitability of the company.
Low power, low interest-
it includes those people who are not directly interested in the project and also they do not have
enough power. It is only required to give them broad view of the project periodically.
Specific project
Risk assessment: It is the process of identifying the areas that can cause risk towards the HR
policies and procedures. It includes identifying risks that can have a negative impact on the
project. Risk assessment for this project includes:
Likelihood\ severity 1 2 3
1 1- low 2- low 3- medium
2 2- low 4- medium 6- high
3 3- medium 6- high 9- high
Turnover: This aspect is very common within the management of the company. With not
proper employee satisfaction and HR policies, company will have to bear the costs of unhealthy
15

employee turnover rates that are bad for the organisation. The likelihood for this risk is less (1)
while the severity is (3), making it a medium category risk.
Employee benefit liability: It is a possibility that the company cannot bear the cost of
health insurance costs for each employee at its current state. Benefits programs are expensive for
the company however, help in gaining the best talent and retaining the best employees from the
company (Bergweiler, Hansen, and Dörfer, 2019). It is important for the management to
communicate about eligibility for such benefits and what these are covering. This is due to poor
communication and results in employees having misconceptions related to the benefits
provided. This risk has likelihood of 2 while the severity of 1, making it a low profile risk.
Employment- based lawsuits: The policies and procedure made from the HR department
of the company can affect the expectations of some employees in negative way. These
expectations can lead to discriminate the whole group of working employees. It will affect the
morale of these employees as well as decrease their working productivity. This will tarnish the
image of the company within the market. This risk has both high severity and likelihood.
Importance of detailed project plan: Detailed project plan is important for the purpose of
guiding the stakeholders and working teams of the company along with the senior management
staff. Planning is important in satisfying the need to identify the goals and reducing risks while
avoiding any delays within the deadlines. Planning helps in identifying risks present at micro as
well as macro level and the areas the risk looks small but cause major amount of threat within
the project execution process (Gustafsson, Hermelin, and Smas, 2019). Power planning of the
project will allow in ensuring the risks that are easy to mitigate and help in attaining the set
milestones for the project. Planning includes identifying the assumptions made and expectations
set so that crucial points are not missed. Moreover, project planning helps in setting clear goals
that will make the team work on same page while avoiding the scope of having any future
misunderstandings. Planning the project in detail will assist the employees in understanding
what all resources are required to complete the project and avoiding any over- allocation. It
helps the mangers to keep tab on the activities of its team members and monitoring the project to
it complete effectively under deadlines.
16

CONCLUSION
Through this report it can be concluded that pestle, swot and porters five forces framework is
used in the report in order to identify industry analysis and market trends for the company.
Reputation is the strength for the company. PMP recruitment Limited have good brand image in
the market which is helping company in getting more clients easily it is because of the good
quality of services provided by the company. Company provides limited services only which is
considered as the weakness of the organisation. Technology is opportunity for the company
which can be used for making work easy and fast. Firm make sure that they do not harm
environment in any manner with their business activities. New firm cannot take easy entry in
this industry because to get entry in their industry require high investment so that is why it is
difficult for new firm to take easy entry in this sector. Problems which are identified from
secondary analysis for company are competitors.
There are many company which provides same services as PMP recruitment Limited is
providing. Strict rules and regulations are also problem to the company because operating under
strict government rules are not easy. Company can provide innovative services to their clients in
order to retain them. Report has also discussed primary research in detail. Employee satisfaction
is the main thing if company want to grow and attain success because when employee is
satisfied then only they will work hard so that company can attain their objectives. Risk
assessment and stakeholder analysis is also discussed in their report properly. Project planning is
important that goals of the project can be easily achieved. Planning also helps to check issues in
the project if having any.
COMPONENT three
INTRODUCTION
Reflective practice is the ability that includes having reflection on the actions of an
individual while taking certain steps towards it and work better within own practice and one's
peers. This is an engaging process that includes having a continuous adaptation within the
learning processes. Reflective practice is the ability to reflect on one's actions while engaging
within the process of continuous learning. It includes reflecting on the experience that is gained
within practice. Reflective practices encourage the thoughts while making some decisions and
working on consequences related to these decisions and actions. Emotions hold the centre place
for carrying out reflective practices while enabling an individual to explore the feelings and
17

values based around certain specific practice. This process supports a much deeper learning
sense and allows the scope to develop and improve within future practices. It helps in providing
better awareness along with knowledge and understanding that is based on skills and
competencies present in working environment. Reflective essay provides a base for considering
what one has done and if it was successful or not. Moreover, reflective practices assists in
planning various changes within the future practices. Reflective essay allows to recognize
various strengths and weaknesses that will help in guiding within the learning process. With the
help of reflection, one can develop skills that are important for the purpose of self- directed
learning while improving their motivation which in turn will improve the performance of work.
It helps in providing the information regarding the opportunities and understanding various
practices from different perspectives (Albert, Balve, and Spang, 2017). It even includes
consideration of future actions and responses while refining them accordingly.
The purpose of this report includes a reflective report, that includes a base for
professional framework regarding the skills and knowledgable areas that posses. It includes
analysing various techniques used within project management and problem solving. There are
many approaches used within the presenting group dynamics as well as managing the relations
within individuals working within the company.
18

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Online
Our Vision and Values., 2021. [Online]. Available through:
<https://www.pmprecruitment.co.uk/about-us/our-visions-and-values/>
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questionnaire
are you satisfied with your company?
 Yes
 no
how company can satisfy their workforce?
 By providing them good working environment
 extra benefits
 work life balance
 all
do you agree that HR policies of your company need to be modified.
 agree
 strongly agree
 disagree
 strongly disagree
there is relation between employee satisfaction and employee productivity?
 Yes
 no
do you think that employee satisfaction is important in attracting talented candidates?
 Yes
 no
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