The essay will analyze the human resource strategies, policies, and practices as they pertain to JetBlue Airways. The JetBlue Airways case study offers numerous lessons in the field of human resource management starting with the three national equal employment opportunity laws that affect JetBlue’s hiring practices. Additionally, we can learn human resources strategies from the company’s recruitment efforts and its personnel selection. Examining the factors that influence JetBlue Airways’ performance appraisal system will also reveal some lessons about human resource strategies. Moreover, analyzing JetBlue’s Airways’ 360-degree feedback evaluation system will reveal its rationale and advantages for the company. The essay will end by exploring JetBlue Airways’ compensation and benefits to see what it could reveal about human resource strategies.
When JetBlue Airways is looking to hire, it is affected by the following three employment laws:
Equal Pay Act of 1963
The right of employees to be free from discrimination in their own settlement is shielded under this particular national law. The Equal Pay Act requires that women and men be given equal pay for equivalent work in exactly the same organization. The jobs do not need to be identical, however they have to be substantially equivalent. It's job content, not job titles, that decides whether jobs are substantially identical.
Fair Labor Standards Act of 1938
The act, which sprang in the Depression, has experienced several changes since it had been enacted but shields private sector employees in addition to government employees. From way back its passage, FLSA has found several changes - mainly in the hourly minimum wage. On July 24, 2009, the national minimum wage became $7.25 per hour. Anyone 14 and older may be used, although kids of any age are permitted to deliver papers; perform in film, TV, radio or stage productions; work for his or her parents; and babysit or perform small chores in a house.
Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years old or older from employment discrimination according to age (Tahmincioglu, 2004). The ADEA's protections apply to both job applicants and employees. The ADEA applies to employers with 20 or more employees, including local and state governments. In addition, it applies to labor organizations and employment agencies, in addition to the government.
JetBlue Airways Recruitment Efforts
JetBlue uses an open job board method to hire employees internally. In this method, the Human Resources department places the open job positions on a public board within the company and applicants deemed fit apply for them. It is important for the company that their employees enjoy working at JetBlue. In this context, JetBlue uses the values of the employees to determine their suitability for the positions they have applied. The company has a crewmember score modeled following the customer satisfaction metric has been utilized to examine the effect of reimbursement changes also to simply help determine executive bonuses.
Employees are requested per annum on their hiring date when the firm would be recommended by them, so worker engagement can be efficiently monitored by JetBlue (Sloan, 2014). The Speak Up Survey, JetBlue's yearly crewmember survey, shown that both employees and supervisors believed their leaders wanted training and better tools to assist them become more efficient.
The company uses unsolicited walk-in applicants as its external recruitment method. After advertisement of a vacancy, the individual will be screened by the relevant HR officers JetBlue hires its pilots from the corporate world, some other airlines, not to mention the military. The newest hires are examined on the capacity to deal with their surroundings and fill the leadership part their occupation needs but in addition on their capability to fly the plane.
JetBlue has designed and executed an all-inclusive hiring procedure which includes open house events, a web-based program measure, along with a telephone screening interview using DDI's behavior-based interviewing system, Targeted Choice (registered company). Present JetBlue pilots choose the top candidates to be interviewed in the database as well as help run the interviews in the occasions that are hiring. JetBlue senior leaders additionally participate in the occasion that is hiring, making themselves accessible to reply nominee questions (Sloan, 2014).Effects of JetBlue's Recruitment Methods
The first effect of the recruitment methods at the company is increased job satisfaction. Based on the processes involved in internal and external recruitment, the company is keen to ensure that an individual’s values are fit for the job. The fit depends on technical and overall organizational competence. Job satisfactions is evidenced by the rate of employee turnover. Overall employee turnover is the 20 percent industry average. Pilot employee turnover is only two to three percent.
Another effect is also increased efficiency through thorough screening. Seventy-eight percent of pilot candidates pre-screened to the background check stage of hiring, compared to only 25 of nominees prior to the pre-screening was executed. Interviewers who go through the interviewer training speed it an eight or higher on a nine-point scale.
Personnel Selection Interview Process for Mechanics and Pilots at JetBlue.
JetBlue hiring starts with the automated phone interview. Applicants proceed to group interviews and, based on the responses supplied, reply essential interview questions on the telephone. Panel interviews may be encountered by some applicants with this stage of the hiring procedure. For both pilots and mechanics, the selection process also involves training such that both categories of employees are selected and trained on the jobs they have to do.
JetBlue's Goal in Utilizing This Personnel Interview Process for Mechanics and Pilots
The goal of using this selection process is to eliminate the possibility of bias created by the interpersonal relations between recruiters and the candidates. Automation implies that the selection criteria is fair and that candidates are selected based on competence and job fitness. During individual interviews, JetBlue uses a different tactic. They ask interviewees about the time when they made mistakes and how they handled them (Tahmincioglu, 2004). They do this so that they could understand how a future crewmember manages errors they have made, and what they have learned from them. Additionally, they are trying to gauge the character of the potential crewmember to see if they own up to their errors rather than not doing so or blaming someone else.
JetBlue conducts group interviews to estimate efficiently interactions with fellow employees. They hold panel interviews evaluate skill to keep up a professional manner whatsoever times when talking to or around over one person.
D. Factors Influencing Performance Appraisal Systems
Communication of the execution examination or performance appraisal process to the new executives and managers as well as on a progressing premise, can assist remind all the managers that the procedure exists, the way it operates and where to get guidance and help if necessary. In addition, the business pioneers and HR staff ought to verify that the administrators and directors comprehend why the performance appraisals are vital to the workers, supervisors and the organizations (Sloan, C. (2014, March 14).
The nature of associations and correspondence between the raters and the ratees amid the examinations or appraisals will influence the procedure. There ought to be frequent meetings held between the ratee and rater, amid which time activity arrangements ought to be created and the areas where there is no concurrence analyzed. The quarterly correspondence between the ratee and rater will bring about an assortment of positive occupation result like employment fulfillment and hierarchical responsibility.
In the process of performance appraisal, employee states of mind or attitudes toward the framework are firmly connected to fulfillment within the system. View of reasonableness of the framework is a vital aspect that adds to its viability. Understanding worker states of mind concerning the PAS in associations is imperative because it can determine the adequacy of the systems. On the off chance that the appraisal system is seen and deemed biased, unimportant or political, this may exist as a source of disappointment with the framework. Worker response to the PAS is a basic part of the acknowledgment and adequacy of the framework.
E. 360-Degree Feedback Evaluation
1. Advantages of Using the 360-Degree Feedback Evaluation
It Democratizes the Feedback Process
Feedback for the 360-Degree method comes from customers, colleagues, direct supervisors and uses reports to help assess the effectiveness of each worker. Opinions is solicited by this tool from many coworker views that are different. Rather than hearing simply the supervisor's view, this tool takes into account the ideas and viewpoints of several other individuals who socialize together with the worker (Sloan, C. (2014, March 14).
The 360-degree input is essential for directing evaluations for the top-level officials. Officials have customarily thought that it was hard to get veritable input on their execution, regularly accepting that the company's achievement or disappointment is a dependable indicator of their viability (Sloan, C. (2014, March 14). While this is consistent with a certain degree, much can be picked up by permitting lower-level administrators and workers to give input without the trepidation of revenge.
Notwithstanding offering directors a more critical evaluation at their own execution by analyzing their evaluations, subordinates can determine included occupation fulfillment essentially by surveying their managers. Requesting that a subordinate rates a director demonstrates that administration considers workers' sentiments and fulfillment. Enhancing a positive change happen in an administrator's conduct because the aftereffects of the 360-degree feedback makes the employees feel they are esteemed and have the ability to influence positive change in their working environments (Sloan, C. (2014, March 14).
2. Rationale for JetBlue Utilizing a 360-Degree Feedback Evaluation
The 360-Degree feedback assessment as an execution examination method will work for the JetBlue Airways because it will help the employees get new viewpoint on how others see them. These viewpoints give them more adjusted perspectives of how they are getting along at the organization. It is elemental for representatives to believe that they are doing admirably as well as have that idea accepted by input.
F. Employee Related Factors Essential for Determining Financial Compensation
The performance of the employees is elemental in determining the financial compensation and is often rewarded with the payment increase for the motivation of the employees.
Employees should be compensated according to their job descriptions. For example, workers in sales-related places should have commission as an integral part of the compensation package. Employees in non-sales position will not need to have a commission’s structure (Airchive Staff. (2014, May 7).
Cost of the Benefits Package
Comprehending the expense of a benefit strategy before it is offered is elemental. Such expenses could be extremely expensive weight to the firm, although offering advantages is a good bonus for workers. Removing and adding gains could be quite demoralizing for the staff.
One of the facets to planning a compensation package is budgeting. Payroll budgets should add payroll taxes and salary payments, fees, bonuses, incentives, direct wage and insurance, as well as any other costs that are associated the company when processing payroll.
G. Discretionary (Voluntary) Employee Benefits
1. Defining Discretionary Employee Benefits
Payment for Time When Not Worked
Some payments are given for time including coffee breaks, rest periods, lunch periods, clean-up time, and travel time. This type of benefit gives employees with a well needed time off.
Health benefits in many cases are included as a member of an employee's indirect monetary benefit. Special areas include vision care, dental, and health. These health benefits often include preventative care, which ensures healthy employees (Airchive Staff. (2014, May 7). Having health care plans for employees and their families allows the former to work with peace of mind knowing that they will be able to take care of themselves or family members in the event of an illness.
Retirement and Security Benefits
Security benefits include life insurance, disability insurance, retirement plans, and supplementary unemployment benefits. Employees need to go work with the peace of mind that they and their respective families will be taken care of should they not be able to work.
2. Ways That JetBlue has Incorporated Three Discretionary Employee Benefits
JetBlue values its employees. The company provides its employees with the following discretionary benefits:
JetBlue offers its employees health insurance, which is one of the most common kinds of discretionary work benefits. A number of businesses have various policies about how they structure their health insurance benefits. JetBlue provides its full time employees with health insurance benefits. These insurance benefits extend to family members. Other firms are going to have a premium is paid by you for your loved ones as well as yourself (Airchive Staff. (2014, May 7). Since the health insurance benefits are extensive, and their structuring elaborate, JetBlue provides its employees with a health insurance benefits handbook.
Payment for Days Off
Every employee needs a day off here and then. JetBlue recognizes this and provides its employees with paid days off. As employees work, these paid days off accrue. If an employee needs to take time off suddenly due to a school snow day, for example, they just need to request and use one of their paid days off (Airchive Staff. (2014, May 7).
JetBlue offers their employees private retirement plans. These plans provide income for workers, who retire after having served the company for a specified time or after reaching a particular retirement age. JetBlue offers a defined retirement benefit plan, where the company agrees to offer a certain degree of retirement income. This income could be a portion of gains or a fixed dollar amount. Additionally, JetBlue offers a defined contribution plan. This is a retirement plan, which requires special contributions by an employer into a savings or retirement fund created for the worker.
JetBlue Airways is a company that has undergone many changes without losing its company’s character. Many JetBlue Airways employees mention that the like to work for the company. The analysis of the company does show that the company values its employees (Airchive Staff. (2014, May 7). From its recruitment process to the performance appraisal, JetBlue Airways has demonstrated that it has a unique perspective of the workplace. This unique streak has allowed JetBlue Airways to thrive.
Airchive Staff. (2014, May 7). Inside JetBlue University - Forbes. Retrieved July 13, 2015, from http://www.forbes.com/sites/airchive/2014/05/07/jetblue-university
Sloan, C. (2014, March 14). JetBlue: Is Its Jettitude Culture Enough To Carry It Into The Future? - Forbes. Retrieved July 13, 2015, from http://www.forbes.com/sites/airchive/2014/03/14/jetblue-is-its-jettitude-culture-enough-to-carry-it-into-the-future
Tahmincioglu, E. (2004, December 6). Keeping Spirits Aloft at JetBlue. Retrieved July 13, 2015, from http://www.workforce.com/articles/keeping-spirits-aloft-at-jetblue