As part of the Receivables Management Association International’s monthly webinar series, Aristotle Sangalang, President and Chief Compliance Officer of The Bureaus, Inc., co-presented on The Employee Life Cycle, an in-depth look into the human capital management cycle.
As part of the RMA Educational Programs series, Mr. Sangalang helped to introduce attendees to a strategic human capital management approach that identifies small yet significant changes in the employee life cycle that can increase employee retention rates.
A report by the Wall Street Journal found that in May 2018, the U.S. hit the lowest unemployment rate since 2000. While encouraging, the numbers within the unemployment data are the most alarming for employers. In April 2018, 3.4 million Americans quit their jobs vs. the 1.7 million who were laid off. Between business schools encouraging young graduates to spend a maximum of two years in a position and the retirement of baby boomers occurring more rapidly as the years progress, our nation is experiencing an increasingly high rate of departure. With studies showing the true cost of employee turnover averaging between 20%-213% of an employee’s wages, it is critical for employers to invest in the long term success of each employee. This leads us to the focus of RMA’s webinar and the question: why do employees leave?
When examining the employee life cycle, the human capital management plan focuses on 6 key aspects: recruiting, on-boarding, performance management, learning and development, retention, and separation. These 6 key aspects are intertwined and each bears an important role in the long term retention of an employee. If one area of the management plan is left unattended and the employee feels unfulfilled, the employee is more likely to disengage from job duties, the culture, and ultimately, the company.
One of the unique aspects of human capital management that Mr. Sangalang discussed in the webinar and implements at The Bureaus is a comprehensive assessment that all applicants must take on the front end of recruitment. This assessment measures what can’t be trained: behaviors, motivators, personal attributes, core competencies, and soft skill attributes. It is a very in-depth assessment from which The Bureaus determines which job the candidate would be most appropriate and whether an applicant is a proper fit for the culture of the company. By benchmarking each job to use as reference points for the results of each person’s assessment, new hires are placed into positions that are a mutual best fit for the individual and The Bureaus.
Through on-boarding, the results of each person’s assessment is shared through a lengthy conference call between the hiring manager, the new employee, and the new employee’s direct supervisor. During this call, the team reviews the results of the assessment and each person’s communication style. There is great emphasis placed on understanding communication styles as each person communicates and receives information differently. Understanding these differences upfront reduces potential hurdles and conflict that may impact the entire team over time.
Through this one change in the recruitment phase of The Bureaus’ human capital strategy, Mr. Sangalang made a significant impact that echoes throughout the rest of the cycle. By placing people in positions more aligned with their assessment results and assembling a team that communicates more effectively, Mr. Sangalang has cultivated a culture that generates very little turnover. The Bureaus believes that people can be trained for most positions, but finding the right person for the culture of the company, regardless of experience or professional background, is the key to the successful implementation of human capital management and the long term retention of employees.
More information about this webinar and the RMA Educational Programs Series can be found at rmassociation.org/education/.
The Receivables Management Association International (RMA) is a nonprofit trade association that represents more than 550 companies in a variety of financial services fields. RMA members benefit from extensive networking, educational, and business development opportunities. RMA set the global standard within the receivables industry with its rigorous certification program and code of ethics, both of which focus on the protection of the consumer. Each month, RMA presents a webinar on different topics that are trending and relevant to the ARM industry. The credits earned from these educational webinars can be used towards certification and re-certification.
About Aristotle Sangalang
Aristotle Sangalang is the President and Chief Compliance Officer of The Bureaus, Inc. He manages the day to day operations of The Bureaus and oversees all collections and compliance operations. Mr. Sangalang’s creativity, leadership, and strong creative skills have made him an integral part of The Bureaus since 1996. He was instrumental in the implementation of the Rainmaker Assessment, the comprehensive assessment tool which is an essential part of the recruitment phase at The Bureaus. Mr. Sangalang is certified by the Receivables Management Association International and is a Certified Receivables Compliance Professional. The Bureaus, Inc. was founded in 1928 and is headquartered in Northbrook, Illinois.