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Labour Market Conditions in the UK and Africa

Assessment brief/activity This assessment is broken down into 5 key areas, The Labour Market, Recruitment and Selection, Talent Planning, Downsizing and Turnover. You need to explore and research these key topic areas and provide your findings in a written document using the category headings for the CEO of your chosen organisation. Key Area 1 - Labour Market Your business is looking to expand into another country and therefore you need to provide a comparison of two countries This comparison must include the following information :

• Contemporary labour market trends in different country contexts

• Review the concept of Tight and Loose labour market conditions in your chosen countries Key Area 2 - Recruitment and Selection Having found out about the labour market conditions from an international perspective, you have now been tasked with running a recruitment project. You are looking for a customer service team with specific skills. You are continuing to build your reputation and become an “employer of choice”. This next part of the assessment asks you to carry out the following research:

• Explain the main legal requirements in relation to recruitment and selection

• Prepare an example of a job descriptions, a person specification and a competency framework linked to a chosen job role i.e. customer service operative

• Assess the strengths and weaknesses of different 2 methods of recruitment and selection.

• Discuss the strengths and weaknesses of different approaches to retaining talent and how becoming an Employer of Choice can improve the organisations position in competitive labour markets Key Area 3 - Talent Planning As part of future development plans for your new team you need to provide information on ensuring future skills are met in the workplace , for this you need to provide information on the following :

Assessment Criteria 1.1 1.3 2.5 2.4 2.6 3.2, 1.2 AVADO Learning Limited. Registered in England with number 06177616. Registered office: Landmark House, Hammersmith Bridge Road, London, W6 9EJ. VAT Registration number: 918560018. Authorized and regulated by the Financial Conduct Authority – Interim Permission Number 611566

• Describe the role of government, employers and trade unions in ensuring future skills needs are met.

• Describe the principles of effective workforce planning and the tools used in the process; provide an example of a basic succession and career development plan Key Area 4 - Downsizing Unfortunately part of your business has become to struggle in the UK and is no longer making a profit, you have been tasked with working with this part of the business and organise the downsizing and restructure which has resulted in redundancies being made.

Recruitment and Selection Laws in the UK

• Provide an example of how HR would contribute to the plans for downsizing an organisation

• Advise organisations on good practice in the management of redundancies and retirements that complies with current legislation. Key Area 5 - Turnover One of your new team members of the customer department, has been dismissed due to high absenteeism; this is classed as “involuntary turnover “.Please, describe the legally compliant procedure and best practice for dismissal Also as part of this process you need to provide the following information on:

• Explain why people choose to leave or remain employed by organisations and the costs associated with dysfunctional employee turnover. 1.4, 2.1 2.2, 2.1 2.3 4.1 4.1 3.1 Evidence to be produced/required A typed word document divided into the five key areas as outlined above equating to 4500 words in total You should relate academic concepts, theories and professional practice to the way organisations operate, in a critical and informed way, and with reference to key texts, articles and other publications and by using organisational examples for illustration. All reference sources should be acknowledged correctly and a bibliography provided where appropriate (these should be excluded from the word count) 5RST Learning Outcomes Assessment Criteria 1 Understand key contemporary labour market trends and their significance for workforce planning. 1.1 Assess the major contemporary labour market trends in different country contexts. 1.2 Explain how organisations position themselves strategically in competitive labour markets 1.3 Explain the significance of tight and loose labour market conditions.

1.4 Describe the role of government, employers and trade unions in ensuring future skills needs are met. AVADO Learning Limited. Registered in England with number 06177616. Registered office: Landmark House, Hammersmith Bridge Road, London, W6 9EJ. VAT Registration number: 918560018. Authorized and regulated by the Financial Conduct Authority – Interim Permission Number 611566 2 Be able to undertake talent planning and recruitment activities.

2.1 Describe the principles of effective workforce planning and the tools used in the process

2.2 Develop basic succession and career development plans.

2.3 Contribute to plans for downsizing an organisation.

2.4 Contribute to the development of job descriptions, person specifications and competency frameworks.

2.5 Explain the main legal requirements in relation to recruitment and selection.

2.6 Assess the strengths and weaknesses of different methods of recruitment and selection.

3 Understand how to maximise employee retention.

3.1 Explain why people choose to leave or remain employed by organisations and the costs associated with dysfunctional employee turnover.

3.2 Assess the strengths and weaknesses of different approaches to the retention of talent. 4 Know how to manage dismissal, redundancy and retirement effectively and lawfully.

4.1 Advise organisations on good practice in the management of dismissals, retirements and redundancies that complies with current legislation.

Labour Market Conditions in the UK and Africa

The human resource management is a term that is used to describe the formal systems that includes managing the people inside the organization. The person who is responsible to manage this field must be able to manage the departments that would include staffing, employee compensation and benefits and scheming the works. It aims towards maximizing the productivity of the employees. In this report the five areas have been discussed that includes labour market, the process of recruitment and selection, the talent planning, the factor of downsizing and the turnover process. These are some of the basic factors that comprise the human resource management (Heyes 2013).

Key area 1 – Labour market:

Contemporary labour market trends in different country contexts:

The two counties that have taken into account for the comparison of the labour market are UK and Africa. It has been observed in the statistical reports that the labour market in UK has improved. The estimates that have been extracted from the labour force survey shows that in the increasing years the number of unemployment in UK have decreased and the job opportunity have increased (Andersen 2012). It has been observed that mostly the people whose age was between 16 years to 64 years were working and formed a basic part of the economy of UK. It was observed that everybody whose age was 16 years and above shared the three types of economic status. They were either employed, unemployed or they were economically inactive. This was a mixture of full-time workers as well as part-time workers (Hinrichs and Jessoula 2012).

      On the other hand the situation was completely a contrasting one in Africa. In the past an innumerable amount of policy was formed as a growth-oriented developmental strategy. It was believed that the long-term and the sustained high rates of the economic growth would facilitate the opportunities that could be offered to the labours. The development of policies has made no major change in the contemporary scenario of Africa (Bernal-Verdugo,  Furceri and Guillaume 2012). The rate of the wages of the workers has not increased. However it has been observed that the government took steps to engage in direct employment creation, regulate the wages, and improve the labour market information system, to operate employment exchange programs and to provide technical training areas that can be employed as a means of promoting the employment creation (Røed and Schøne 2012).

Recruitment and Selection Laws in the UK

 Review the concept of Tight and Loose labour market conditions in your chosen countries:

            The market performance of the labours in the United Kingdom has changed during the great recession as compared to the flexible labour markets. The labour market condition of the United Nation is tight compared to Africa (Bernal-Verdugo, Furceri and Guillaume 2012). The labour market in UK is generally flexible compared to the other countries. Africa has a strict labour market and it is away from being flexible. The labour market adjustment following the economic downturn in the UK has been the most evident in the response of wages, whereas the response in the US has been more evident in employment.

In UK it is easy to hire the workers and the labours are occupationally mobile (Agnello et al. 2014). The intervention of the government does not twist the market. In the past as well as in the recent years the labour market of UK has gone through a lot of changes. This is the reason it can be termed as tight labour market. Africa has always remained as an underdeveloped country and this is the reason it has loose labour market. The poor educational facilities, the poor policies formed by the government and the inequality led to the decline of the potential labour market in the region. This is the region it can be said to have an unbalanced and a loose labour market (Muffels 2014).

Key Area 2 - Recruitment and Selection:

The main legal requirements in relation to recruitment and Selection:

            The main legal requirement that is essentially required in the recruitment and selection process are Equality Act 2010, data Protection Act and GDPR. The equity Act 2010 is a legal way of protecting people from the discrimination in the workplace and in the society. In the process of recruiting and selection it is important to treat all the applicants equally. The Equity Act would protect all the employees and every individuals in a workplace. It was found to replace all the other anti-discrimination laws. The next act that is essential in the process of recruitment is the data protection act 2018. This controls the use of the personal information in an organization. After a recruitment is done the organization must ensure that the personal data of the employees are used fairly, lawfully and transparently. It should be used for specific reason.

Retaining Talent in a Competitive Market

It should be used in a way that it remains adequate and relevant. It should be used only for some amount of necessary purpose. The confidentiality of the identity of the employee should be maintained by the organization. The final legal aspect that is essential in the recruitment and the selection procedure is the GDPR. This is the general data protection regulation. It seeks to create a harmonised data protection law framework and it aims to give back to the subjects of the data and control their personal data (Costen 2012).

            These acts give the employees the right to have their data confidential. This would enable them to have a safe environment to work. Apart from this these acts will enable all the employees to get equal treatment and stay away from discrimination. The legal acts makes it necessary for the employers to treat all the employees in an equal manner and to maintain the confidentiality of the employees. This leave a positive impact on the recruitment and the selection process. It would make the entire process a well-structured one. In case the organization does not comply with the legal factors they would face the problem of the lack of good candidates that would be an asset for their organizations (McGraw 2013).       

Prepare an example of a job descriptions, a person specification and a competency framework linked to a chosen job role i.e. customer service operative:

Example of job descriptions:

Job title: customer service operative

Job type: corporate job. It is a front desk job.

Location: the location of the job is in 21 Ellis St, Belgravia, London SW1X 9AL, UK. The operation of the job is supposed to be inside the office premises.

Main duties and responsibilities:

  • To provide the essential needs of the customers
  • To collect information and analyse the needs of the customers.
  • Prepare the product or service report by analysing the customer information.

Skills and experience: The person applying for the job should have the skill of marketing management. The person should hold the degree of business management. He should have at least three years’ experience in other organizations.

Salary: It shall not be disclosed before the interview

Personal specifications:

            The customer service operative is supposed to keep a track of the services that are related to the customers. The person needs to deal the internal as well as the external factors of the organization. He should be enthusiastic who will listen to the issues that are faced by the customers and offer innovative solution to each problem. The individual for this job role is supposed to have a good command of the service policies of the customers and he should have good training on the product knowledge that can be accurate and critical for offering accurate assistance to the customers (Board 2017).

Competency framework:

            In case of the job of customer service operator, there are few factors that forms an essential part of the framework. This includes critical success factors under which is the predispositions and motivations under which includes the aspects like organizational structure, behaviours and processes that envelops the factors related to business performance (Coller, Cordero and Echavarren 2018).

Assess the strengths and weaknesses of different 2 methods of recruitment and selection:

            The two methods of recruiting is putting advertisements of the job vacancy on the social media and recruitment done in any particular assessment centres.

Strengths:The social media is a strong medium through which the right candidates for the job can be selected. The online job sites enables the interested candidates to upload their resume and the employers can short list the candidates (Brewster and Hegewisch 2017).

Weakness: The weakness of this process is that it have the risk of leaking the confidentiality of the identity of the candidates. The online media have some threats of hacking the profile.

Strength: The strength recruiting from the assessment centre is that the organizations are able to get the fresh talent for their company and they are able to get the genuinely interested candidates.

Weaknesses: The weakness of this process is that it is costly and it is a lengthy process.

            The two process of selection are, short listing the CV and taking interview.

Strength: The strength of this process that the skills and the knowledge of the candidates are being tested through a face-to-face interview which is a reliable form.

Weakness: It is a time-consuming process and sometimes the candidates are not prepared for it. The candidates who does not have good oral skills will not be able to pass in this round.

Strength: The short-listing of the CV makes the work easier. It enables the recruiter to select the best candidate that have the highest degree.

Weakness: Based on the CV taking decision on the capabilities of the candidate is not a practical decision. Sometimes the personality of the candidate can be more interesting than his CV.

Discuss the strengths and weaknesses of different approaches to retaining talent and how becoming an Employer of Choice can improve the organisations position in competitive labour markets:

            In the competitive market attracting and retaining the talent of the employees has become one of the major concerns of the organizations. The different approaches of retaining the talent have both advantages as well as the disadvantages (Zaharie and Osoian 2013).

Strength: The application of different approaches of retaining the employees can lead the organization to achieve their goals and missions. The employers are the strength of the organization. This is the reason they should be preserved in the organization. This will assist the organization to sustain in the competitive labour market. It helps to build the brand of the organization and thus communicate the benefits of using a product or service to potential customers. It communicates the benefits of the employment to potential employees. The unique name and image of the product acts as a benefit or the organization (Gamage 2014).

Weakness: The failure of the application of different approaches of retaining the employees might cause a downfall for the organization. The organization will not get the strength to perform well as they will lose potential manpower. This might have an adverse effect on the revenue of the organization. In case the employers are not satisfied they will not stay in the organization and this will lead the organization to a great loss (Ash, Hodge and Connell 2013).

2.4 development of job description, person specification:

            The job description should be brief and it should be specific. It should be distributed evenly and it should contain the description of all the requirements that is necessary for the job. Apart from this, the qualification of the person who is required for the job should be clearly mentioned.

Competency framework:

Identification of the competency level between the employees as well as in the market will allow an organization to manage their workforce properly.

Key area 3: Talent Planning

1.4 &2.1 Description of the role of government, employers and trade union in ensuring future skill needs are met in the workplace

            Government plays an important role in developing the skills of individuals and to meet the future skill needs in a workplace. However, the government is responsible to set the policies and practices in a country to meet the needs of the employees. Skills are vital for the future growth and to gain a sustainable development, improvement of the skill is required (Bohlanderet al. 2017). UK government has taken necessary steps to develop the skills of the individuals in this country.

The department of HM government is involved in developing the skill of the UK people. UK government has found that to enhance the economic growth of the country it is important to provide training to the individuals by developing their skills. UK government has developed Further Education program, which allows the employees to boost their knowledge. Therefore, the government has introduced a new funding system, which gives loan to the employees as well as the students to carry out their further education (Assets.publishing.service.gov.uk 2018).  This approach of UK government allows the individuals to get higher apprenticeships. This funding approach encourages the employer ownership to improve the skills of the engineer in the business organization.

The new funding system of the government allows the employees to be more ambitious and increase their skills. Hence, the employees are able to get better development in their workplace. In the recent years, UK government is involved in fostering a stronger link between the universities and colleges. This is done by developing internship work, providing work experience opportunity and integrated workplace training to support the learners to develop their basic skills. This will lead the learners to survive in the highest professional levels (Ec.europa.eu 2018). On the other hand, implementation of National Apprenticeship Service is another effective approach of UK government to provide resources to the individuals to boost their skills. On the other hand, the government has established the Employment Act and the employer should follow this Act. According to this Act, each employee should get sufficient training in the workplace, which ensures the skill development in the workplace.

            Employer plays an important role in meeting the future skill needs in the workplace. In UK maximum employers are involved in sectoral skill development approach. This sectoral skill development system has two aspects one is the employer-led system and other is the employee-led system. In an employer-led system, the employers are able to identify the skill needs of the employees and in the employee-led system; the employees are able to choose which skill they want to adopt (Ira.le.ac.uk 2018). Both UK and Africa focus on the sectoral skills development approach. As for example, Sewport is a popular fashion brand of UK. They manufacture fashionable clothes. In the recent years this organization follows the sectoral skills development approach to improve the skills of the employees. The employer-led professional standard in this organization is the trailblazers, which ensures the new ideas and approaches for employee development. By following this approach the employers are able to reduce the skill gap and improve the productivity. However, learning supply, higher education, and development of the apprenticeships are the major aspects of this program. The employer provides training to the employees based on their need, which meet the future skill needs of the organization.

            Trade union is also responsible to improve the skill of the employees in the workplace. However, the British Trade Union plays an active role in promoting skill development and learning in the workplace (Ec.europa.eu 2018). They support the workers to access the learning and to improve of the quality of the learning in the workplace. Their main goal is to provide lifelong learning facilities to the employees based on the quality standards.

2.2 & 2.1. Description of the principles of effective workforce planning and tools in the process and Example of a basic succession and career development plan      

            In order to sustain the business and to increase the productivity effective workforce planning is required for every organization. However, the human resource management department needs to evaluate the principles of the effective workforce planning and tools in their people management process (Vanceand Paik 2014). One of the major principles of workforce planning is the involvement of the top managers and other shareholders to develop the strategic plan. However, the top managers and stakeholders can generate the ideas by proposing new strategy for the workforce planning. They need to build an effective communication with the employees to influence the people in their work by managing their needs. The next principle is to identify the critical skill and the competencies to gain a significant result from the business. In order to manage the workforce employee development is crucial and to develop the employees identification of the critical skill is required based on which the employees will be trained.

       The third principle of workforce management is the development of the proper strategy to address the gap in an organization. In the context of Sewport they follow strategic gap analysis process to identify whether it is getting the best result out of it capabilities and the resources (McIveret al. 2018). In order to carry out the strategic gap analysis, they use 360-degree reviews. It enables this organization to identify the skill gap by gathering feedback. In this process, the feedback on an employee's performance is gained from the managers and peers during the appraisal process. This involves the managers and identifies the skill gap in this organization.  The fourth principle of workforce planning is to build the capacity to address the administrative, educational and other requirements of an organization to give shape the workforce strategies. It is important to identify the important resources to implement a workforce planning in an organization as without arranging the resources it is difficult for an organization to give shape workforce planning. The fifth and last principle is the monitoring and evaluation of the progress. This allows an organization to measure the effectiveness of their proposed workforce planning.

Succession plan

            Sewport has developed a career development and succession planning in their administrative section. The first step of succession planning is to identify the critical task. In this section, the finance director of this company has developed a list of tasks and activities, which need to perform (Sewport.com 2018). The second step is to identify the future needs of the employees to improve their skill. Therefore, in the third step, the organization needs to linking the current staffs to future role by transferring knowledge. Finally, the fourth step is to identify the competencies and the skill. 

Career development plan

Step one includes goal setting. However, for an organization it is important to set the goal before taking a career development plan. Step two includes communicating with the goal by using proper method. Sewport has developed a 3 months training program to improve the technical skill of the employees (Sewport.com 2018). This will boost the existing knowledge of the employees.Step three includes development of the knowledge transfer plan. In order to this the HRM department has proposed a collaborative work between the employees as this will help them to share the ideas and knowledge. Therefore, they have established a weekly workshop to transfer the knowledge among the employees. Step three is the last step of career development plan. In this step the employees are able to boost their knowledge by getting training. On the other hand, the management has proposed a compensation planning for the employees to learn and acquire new skill in this organization, which boosts their exiting skill.

Key area 4-Downsizing

2.3 Role of HR in downsizing in an organization

            Downsizing is a process to reduce the number of employees from the operating system of an organization (Suneand Lopez 2017). However, the HR plays an important role in controlling the downsizing in an organization. Downsizing allows the business to make their business more realistic and manageable size. In order to provide a high quality service and to cut the operating cost downsizing is followed by many organizations. The HR has a major contribution in downsizing process. As for example, communication is a big responsibility of the HR during the downsizing process. The HR of an organization needs to communicate with the employees who are affected by this decision. In the context of Sewport the HR needs to provide alternative offer to the employees to manage the downsizing. As for example, the HR can give incentive for the early retirement and transfer the employees to another subsidiary, which will help the employees to accept this decision. Therefore, the HR needs to educate their team to deal with the downsizing process. Proper training program allows the team members to adapt the downsizing process and to understand the importance of downsizing.

            Often the employees become resistant to the downsizing process. Hence, by providing proper training Sewport will be able to influence the employees to adapt this decision. On the other hand, the HR needs to ensure the fairness and equity in the downsizing process (Nègre et al. 2017). In order to this, the HR should follow the guidelines of ACAS. ACAS is considered as the workplace experts. In the recent years, ACAS has launched a new guideline for the downsizing process. The employees get a video guideline about how to deliver the news of redundancies. Based on this guideline the HR needs to provide counselling and offer advice to support the employees while they are at risk of losing their job. ACAS guideline helps the employers to understand the situation that is faced by the line managers.

According to ACAS the HR needs to provide right training to the teller to cope with the demand of the employees who are leaving their job. Therefore, the teller needs to deliver the news in a proper way. Moreover, alternative options should be given to the employees who are leaving their job. Therefore, the HR needs to maintain and manage the approach of downsizing (Linton 2017). As for example, the HR manager of Sewport offers a good incentive to the employees for early retirement. This is a good downsizing approach of this organization. The next activity of the HR is to provide leadership support to the employees during the downsizing. In Sewport the HR follows transformational leadership theory to manage the changes during downsizing. However, downsizing is the change in an organization and to manage any change transformational leadership is crucial. This leadership style will allow the HR to support the employees during this critical situation.

4.1 Good practice of the management in managing the redundancies and retirements that complies with current legislation

            The management of an organization needs to execute a fair reason for the redundancies in their organization.  In the context of Sewport they want to make a manageable size business for which they have conducted downsizing. On the other hand, this organization wants to increase the productivity besides cutting the cost of the business. However,     the operating cost is too high, which needs to reduce (McCullagh 2018). Thus, they have implemented downsizing process. Therefore, they have followed ACAS guidelines by providing training to the tellers to cope with the demand of the employees who are leaving the organization. The different timeframes for different sizing is as follow:

Timeframe

Groups

                                 Size

3-6 months

Newly recruited employees

50

2 months

Poor skilled Middle group managers

10

1 months

Line managers

4

 Table 1: Timeframe for different sized redundancies

(Source: Author)

            From the above timeframe, it has found that in Sewport has decided to provide training to the employees based on the ACAS guideline. As per the ACAS guideline training should be provided to the employees during the downsizing process. Hence, it has been found that 50 new employees will get 3 to 6 months training after that they will get back to their work. Similarly, 10 middle and 4 line managers will get 2 months and 1 months training after that they can come back to their position.  

            In order to carry out the retirement process smoothly the organization needs to follow the law. However, there is no law to force the employees to retire before their age of retirement (Agwu 2018). However, Sewport needs to follow Pension Schemes Act 2017. Based on this Act the organization needs to give compensation to their employees, which will allow the organization to provide a golden goodbye to their employees during the downsizing. Therefore, by providing attractive incentives for the early retirement this organization will be able to facilitate a smooth retirement process. On the other hand, the organization needs to follow the Equality Act 2010 during the retirement. According to this Act, the organization needs to maintain equality during the retirement. Every employee should get proper facilities during their retirement process. Hence, by following this Act Sewport will be able to carry out smooth redundancy and retirement process in their organization.

Redundancy

According to Employment Rights Acts 1996, an employee may be dismissed on grounds of redundancy on the following grounds:

  1. if the employer has ceased to carry out business in the place where employee was employed;
  2. if the employer has ceased to carry out the business in which he hired the employee;
  • the needs of the business for which employee was hired had finished; or
  1. the needs of the business for employee to carry out its responsibilities in a particular place had ceased to exist.

Retirement

Under the UK Equality Act 2010, employers, 65 is not the default retirement age and not a ground for unfair dismissal. This is because workers may retire when they are ready instead when the employers decide to dismiss them provided employers have justification for disissing such employees and establish that it is a proportionate means of attaining a legal aim.

Dismissal

Under the employment law prevalent in the UK, the organisation may dismiss any employee on the following 5 grounds as it shall be considered as fair dismissals:

  1. Conduct/Misconduct- if the employee has been continually missing out on work or has been engaged in alcohol or drug abuse or has been accused of theft or the employee has committed a gross misconduct;
  2. Performance/Capability- capability may include permanent sickness such as cancer, which is likely to make it difficult for the employee to perform their job responsibilities. However, dismissal for poor performance may include not being able to cooperate with colleagues or carry out the delegated responsibilities;
  • Illness- Usually in case an employer suffering from any illness, the employer must make adjustments or changes necessary to enable the employee carry out his or her reposnbilities prior to dismissing teh employee. Howeve, if the illness is such that no adjustments or changes would enable the employee to continue with the necessary job requirements, the employee may be dismissed;
  1. Redundancy- it refers to a situation where an employer would dismiss employees to reduce the workforce and may be considerd as fair if the employee dismissed has been replaced by new technology or his responsibilities no longer exist within the organisation.
  2. Statutory restriction- a dismissal is fair if continuation of job would amount to violation of law.

Notice period

If the employer has employed the employee being dismissed continuously for more than one month but less than two years, one week notice should served to the employee. In case the employment is for two years, two weeks’ notice should be served. However, in case employees are dismissed for misconduct or in case of fixed-term contract, no notice is served upon the employee.

Key area 5-Turnover

3.1 Reasons for why people choose to leave or remain employed by an organization and the cost associates with the dysfunctional employee turnover

            Several reasons are associated with the leaving and staying of the employees in an organization. By using push and pull factor concept the reasons of employee retention and termination can be discussed. As for example, poor performance and high operating cost are the push factors of employee termination. Many organizations often want to reduce their operating cost by reducing their employee number. On the other hand, if the employees fail to follow the company policy then they are chosen to leave by the organization.

Apart from this poor leadership is another push factor that forces the employees to leave the organization. In the context of Sewport they reduce the number of employees to cut the cost. High performance and excellent skill are the major pull factors that help the employees to retain in an organization (Rissanen 2017). Therefore, the reward package often helps the organization to retain their employees in the organization. In order to reduce the hiring cost of the new employees often leads the organization to retain their employees. Therefore, every organization wants to retain their experienced employees as they have good knowledge about the work and policy of the organization.

            Dysfunctional employees refer to the employees who have personality disorder and need to improve their behaviour (Fiolleau et al. 2017). However, dysfunctional employees are not able to maximize the productivity of the organization. On the other hand, employee turnover includes two types of cost such as direct and indirect cost. Direct cost refers to replacement cost and cost of employee leaving. Indirect cost refers to the cost of reduction of employee morale and performance. Often the organization faces high cost of turnover as they have to hire new employees and replace them. As a result, such employees need training to carry out the work for a particular designation. Therefore, the organization has to give compensation to the employees who are leaving the organization. Therefore, due to the turnover of the employees the performance becomes lower, which also hampers the profit. In the context of Sewport the cost of dysfunctional employee turnover are as follow:

Type of cost

 

Cost

Total

Direct

Replacement cost

£10,000

£44,000

Leaving cost

£25,000

Indirect

Reduction in morale and performance

£9,000

 Table 2: Cost of Turnover

(Source: Author)

            From the above table it has been found that the total cost of dysfunctional employee turnover in Sewport is £44,000

Conclusion

            The entire study deals with the different aspects of human resource management department. However, recruitment and selection are the major functions of HRM. They need to hire skilled employees to maximize the productivity. Therefore, talent management is the crucial area of the HRM department. In the context of Sewport it has been found that government funding, employer strategy and trade union play an important role in developing skill. Therefore, to carry out an effective workforce planning identification of the competencies and skill is required. Moreover, an organization needs to maintain a fair process during the downsizing. Therefore, both direct and indirect costs are associated with the dysfunctional employee turnover that may hamper the profit margin of a business.

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