Case Study: Addressing Recruitment Issues in a Roofing Company

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Added on  2022/08/24

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Case Study
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This case study focuses on a roofing company in Kelowna facing difficulties in recruiting skilled workers. The company primarily relies on internal referrals, limiting access to a broader pool of qualified candidates. The background highlights the city's economic and infrastructure advantages, as well as government support, but also notes the shortage of skilled labor due to competition from other industries. The discussion examines the challenges, including the younger generation's disinterest in construction careers and the importance of maintaining government relations. Three options are presented: continuing internal referrals, utilizing an HR agency, and implementing on-the-job training. The recommendation favors on-the-job training as the most cost-effective and efficient solution, emphasizing its potential to improve employee engagement and align employees with the company's culture. The operating assumptions outline the costs associated with the recommended training program, including trainer fees, employee salaries, and other expenses, totaling $39,200. The case study concludes with a recommendation for on-the-job training, which the author believes will save time and cost for the company.
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DECISION REQUEST
Case Study or Project Name:
Topic: Date:
Issue:
In the roofing company, it is difficult to recruit high skilled workers because
generally recruiting is done by internal referrals which limit to the low skilled
workers.
Background:
Young workers have shown less interest in pursuing career opportunities
(Davidson et al.,2013).
The city possesses a trading area of 520,000 and advances infrastructure
that helps the construction industry.
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Construction company gets sustainable support from the government as
well as in the economic aspects as well which helps them to expand in the
market (Grills, 2013).
Due to many industries in Kelowna, there is shortage of skilled workers.
The government provides financial and political support to the company, so
it is the need for the company to maintain relations so that they can operate
effectively in the market even if the political distress took place in the
market (Tedesco, 2016).
. The economic service that the commission provides to the company
assists them in making innovation in the process and providing them with
the economic opportunities for the growth of the company in the market
and enable them to achieve success in the process (Cochrane & Bekele,
2018).
As there is rapid change in economic trend, company is not able to track
important data which can affect their business in their market.
Discussion:
As discussed, there is shortage of skilled workers in construction industry
because of cutthroat competition in the market. Younger generation don’t want to
choose construction as their field and there were so many industries in Kelowna
which need skilled workers to provide best services in the market. Moreover, it is
very important for the company to maintain good relations with the government to
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get support so that they can expand their line of business. If company want to hire
skilled workers, they should be aware of the economic trends due to rapid
changes which was creating problem for them as they don’t have proper system
to track all these things.
Options:
Strengths:
Time will be saved because company need not to do job posting and wait
for the applicants to apply.
With respect to cost, this method is also efficient as company need not to
produce job description and pay for the advertisements.
Efforts are also saved because when they hire externally, lots of people will
apply for the position and company needs to screen them all to find the
right one.
Weaknesses:
The company might not get right person for the specified work.
The person we get through this procedure might need more training which
will affect the current budget for the position.
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Strengths:
Company will get experienced employees.
It will support the growth and the advancement of company.
Time and efforts will be saved because hiring process will be done by
agency.
As the HR agency is wholly focus on the HR aspects, company will get
expert services for their customers.
Weaknesses:
Company will loss control on the hiring process.
This solution seems costly to the company because the agency might
require more funds for their services.
Agency might be biased and hire someone who is known to the agency
even if they are not fit for the position.
Different agencies charge in different ways.
Salary for 1 employee for a year is $25,920.
Agency will charge 15% on annual basis for each employee.
So total cost of 30 employees is $1,16,640.
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Strengths:
It helps the company to retain the employees which
ultimately leads company to the next level.
It saves a lot of time of the employer as the company stays
out of hustle of recruitment process.
Weaknesses:
Company might need to pay more to the trainers for the
betterment of the employees.
New talent might not get a chance to be a part of the
company.
Training will be held for 5 days.
Trainer cost will be $10000, meal cost per employee is
equal to $30 for 5 days, so total cost of meal for 30
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employees is $ 900
Salary needs to be pay to 30 employees while on training is
$27,300.
Facility expenses will be $1000.
Total expenses will be $39,200.
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Recommendation:
I would recommend third option that is On -The-Job training method as company
will be able to save time and cost for recruiting employees externally in
comparison to second option because second option will take more time,
company have to pay huge cost and they will lose control on the recruiting
procedure which can create biasness while recruiting. The benefits of choosing
third option is that company will be able to manage the productivity at the same
time by proving best trainer which will help the company to orient the employees
with organization culture and with practical experience.
Operating Assumptions:
To recruit skilled workers, company can go for On-The-Job training which will help
in employee engagement and helps the leader to understand the capabilities. So,
the trainer cost will be $10,000 for 5 days and employee salary will be $27,300
and including other cost like meal and facility expenses, it will be $1900. So, the
total cost will be $39,200 which is not costly for the company and help the
company in a long run to give better services.
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Name, Position of Preparer (you) Date
You can leave this blank
Name, CEO (typed) Date
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Bibliography
Cochrane, L., & Bekele, Y. W. (2018). Contextualizing narratives of economic growth and
navigating problematic data: Economic trends in Ethiopia (1999–2017). Economies, 6(4),
64.
Davidson, J., Jordan, B., Kay, H., & Redley, M. (2013). Trapped in poverty? Labor-market
decisions in low-income households. Routledge.
Grills, C. (2013). Industrialization of the construction industry through prefabrication and
adoption of current technologies.
Tedesco, D. (2016). Urbanization as aporia, Kelowna as hiatus: geographical imaginaries and
political limits of an urban world (Doctoral dissertation).
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