Do Employment At-Will Policies Impact Recruiting?
An employment at-will policy establishes the relationship between an employer and its employees. Basically, it says that an employer has the right to terminate an employee's employment with or without cause. No reason must be given. Also, an employee can leave his job any time without giving a reason for quitting.
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Benefits
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The benefits of an at-will policy are clear for private businesses. A private employer can make decisions to keep employees who fit their job requirements and terminate employees who don't fit the company (i.e., those with performance problems). A private employer also has the flexibility to reduce the workforce in tough business conditions, such as a recession.
Drawbacks
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An employer can use the at-will policy to make employment decisions, but when it uses this right to fire without cause carelessly, the decision can adversely impact recruitment. When an employer fires an employee without cause, such as on a whim, this action causes employees to fear for their job security. An employer also acquires a reputation for firing employees without a reason, which makes future recruits afraid to take a job where they might be terminated at any time.
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Employment Practices
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An at-will policy has another impact on recruiting. It is in an employer's best interest to state in a formal policy that it practices at-will employment. An employer must ensure that its managers and HR professionals don't do anything in hiring activities that imply a worker will receive job security or a permanent position. In "Staffing the Contemporary Organization," the authors explain that an employer might do this by stating the at-will policy on an employment application. This lets recruits know the policy from the beginning (see Reference section).
Employment and Recruiting
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Terms of employment are important for recruits. Job-seekers weigh many factors when applying for a job and again before accepting a job offer. Consider how the at-will policy communicated to recruits will position the company to acquire good talent. For example, an employer might study other employers in the same market seeking similar talent and ascertain if those employers use permanent appointments or annual contracts for employees. An employer does not want to compare unfavorably to its competitors in the eyes of job-seekers.
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References
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