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HRM Issues And Challenges Of Telstra

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Discuss about the HRM issues and challenges of your chosen organization.



The main of this task is to explain key HRM issues and challenges of an organization. Telstra has been selected in the report to describe the HRM issues. It is one of the biggest growing telecommunication companies in Australia which provides telecommunication network and services to the customers across the world. On the other hand, the report explains that how the company overcomes these HRM issues and challenges. Further details of the task have been discussed below.

Telstra Corporation Ltd. is an Australian telecommunication and media corporation which operates and develops telecommunication network and market voice, internet access, mobile, pay television and other entertainment services and products. It is one of the biggest telecommunication corporations in the world. Andy Penn is the CEO of the company. The company head office is located in Melbourne Australia. There are approx 36,165 employees employed in the company. In today’s era, the corporation is expanding and flourishing its business activities and operations globally. In 2014, Telstra became a most respected company in Australia (Telstra, 2016).


Key challenges

There are various key challenges faced by Telstra while conducting business activities and operations in the competitive market. It also has a direct impact on the success and growth of the firm. These challenges are difficult to overcome in the global market. It is essential for the company to maintain a favorable working environment in the organization for the workers, so that they can increase and maximize productivity and effectiveness (Armstrong & Taylor, 2014). Telstra is facing several key HRM issues and challenges due to poor human resource management and approaches. It is essential for the firm to implement the strategies and approaches according to requirements, needs and wants of the customers. The organization has not attained its desired goals and objectives due to the lack of labor supply and demand in the global market. Appropriate strategies and approaches are not being used by the firm in an effective and correct manner. Telstra is fighting to identify and measure the solutions to eliminate these issues and challenges (Story, Barbuto, Luthans & Bovaird, 2014). The key challenges of the firm include an aging workforce, labor supply/demand, generations, demographics and diversity issues. The key challenges have been discussed in details below.

Labor supply and demand

Labor is one of the significant factors to meet its business objectives and goals. The firm is facing problems and issues due to lack of effective and potential labor supply. The firm has not been able to select skilled and experienced employees. As a result, it influences long-term mission and vision of the firm. In addition, the firm is not able to recruit right candidate for the job due to immense competition present in the global market. The biggest challenge of Telstra is to check whether the workers working for the firm is satisfied or not. The firm falls shortage of labor due to inadequate demand in the market. It also affects the financial position of the firm. Telstra has not been able to select right and appropriate candidates due to a shortage of potential and capable employees (Collings, 2014).

Now it is recommended that the company should maintain a balance between labor supply and demand. The firm should understand and evaluate the turnover rate and labor market to reduce and eliminate absenteeism in the organization. In addition, workforce planning should be done by the firm attract more labors in the international market.


Demographic issues

Demographic issues are related to gender, age, ethnicity, occupation, religion, and workforce. The demographic factors have a direct impact on operations of human resource management. These factors are most common forecasters in the turnover. Furthermore, culture, values, and customs also affect the progress of the firm adversely. The company does not maintain records of the new candidates. The working environment is another issue in HRM. Telstra is not able to provide good and favorable working environment to the workers. It affects productivity and effectiveness of the employees. Apart from this, diversity and aging workforce is also a big challenge which has been faced by the firm while conducting business activities at international level.  Telstra discriminates among the employees on the basis of caste and religion. Further, they recruit those employees whose age between 30 to 35 years. The human resource management does not appoint older people because they think that age affects capabilities and efficiency of the people (Muethel, Gehrlein & Hoegl, 2012).

The company does not diversify its trading activities and operations across the world. Cross-cultural factors also influence the long-term vision of the firm. The employees have not been able to understand the language of customers due to culture differences (Martín Alcázar, Miguel Romero Fernández & Sánchez Gardey, 2013). Therefore, it affects performance and productivity of the employees. Moreover, Telstra does not provide compensation, incentives, bonus, and remuneration to capable and competent employees. As a result, they get disappointed and frustrated in the organization. In addition, they are not able to perform task and duties efficiently and successfully. High employee turnover also another HRM issues which have a negative impact on the performance of the employees. All these challenges have been faced by Telstra while carrying its business globally (Kulik, 2014).

Now it is recommended that effective and dynamic strategies and policies should be made by the firm to develop and build sustainable human resource management. Demographic issue is a big concern for the company. Thus, the firm should maintain effective and dynamic communication within the organization to resolve and handle these issues and challenges. On the other hand, the company could not able to maintain diversification in the firm. To eliminate and reduce diversity issues and cultural differences, the organization should provide training and development coaching to capable and potential employees. Along with this, favorable and healthy working environment should be provided by the company to motivate and encourage employees for doing work successfully and effectively. It shall be noted that rewards, incentives, and bonus must be provided by the organization to improve and enhance the productivity of the workers. A fair remuneration system must be developed and built by human resource management to provide satisfaction and morale to the employees. In addition, Telstra should maintain collaboration and cooperation in an organization to attract more employees in the organization. Moreover, top management and managers should maintain unity, belief, and trust among the employees in order to handle several issues and problems of the employees. All these strategies and approaches should be initiated by the firm to resolve and eliminate demographic issues and challenges (Lazazzara & Bombelli, 2011).


Workforce training and development

It is another issue which is being faced by human resource management in the organization while delivering telecommunication services to the customers in the competitive market. The firm does not provide training and development coaching to the workers. Thus, they are unable to provide right and correct information to clients in the global market (Huselid & Becker, 2011). The top management and managers think that training and development are time consuming and expensive process which is not afforded by the firm. Therefore, it affects the dynamic image of the firm in the competitive market (Budhwar, & Debrah, 2013).

To overcome this issue, training and development sessions and programs must be initiated by the firm. It helps to attract and retain employees in an organization. Also, it helps to reduce and eliminate high employee turnover within the organization. It decreases absenteeism in the firm to maximize returns and revenue of the firm.

Management changes

The company makes the changes in its strategies, internal processes, and structure for growing in the international market. Thus, it is difficult to the employees to copy with these changes and they resist the changes. As a result, the companies have to decrease and reduce their profits and productivity during a period of change. It is a major concern for human resource management in the organization which can influence the progress of the firm (Antonioli, Mancinelli & Mazzanti, 2013).


Now it is recommended that top management and business owners should communicate the advantages of changes for employees. Regular staff meetings are a good place to start and communicate. When the team understands why, when, and how of the changes, then they can easily understand the role of management changes in the organization and they easily accept these changes in an organization. In this way, Telstra can change its technology and processes in order to maintain good and dynamic communication with customers across the world. Proper training and development coaching must be provided by the firm to explain the benefits of the changes.

Recruiting talented employees

The company has not been able to recruit capable and potential employees in the organization. It is difficult for the Telstra to balance keeping a business running and selecting the right employee at the right time. Furthermore, it is difficult to know whether a candidate will actually be fit and suitable until they have worked for the company for a period of time. Recruitment and selection are an important function of human resource management which helps to maximize returns and profitability of the firm. It also helps to overcome the competitors in the competitive market (Stone & Deadrick, 2015).

It is suggested that Telstra should use effective and dynamic staffing process to recruit capable and potential candidate in the organization. It is the best way to find a right and appropriate candidate for the business to gain long-term objectives and goals. It will also help to save time, money and resources of the firm. In addition, effective and dynamic recruitment and selection strategies and techniques should be used by the firm to select the right candidate for the job.

Retaining talented employees

Competition of talented and capable employees is fierce. Furthermore, employee turnover is very expensive and costly and can adversely impact business success and growth. In addition, it is very difficult to retain potential and competent employees in an organization. Telstra is not able to provide incentives and other benefits to the workers. As a result, absenteeism and high employee turnover rate are increasing in the organization. It affects progress and success of the firm negatively (Festing & Schäfer, 2014).

Now it is recommended that the firm should reduce and control high employee turnover rate and absenteeism in an organization. Effective strategies and policies must be used by the firm to provide incentives and other benefits to the workers in the organization (Long, Ajagbe & Kowang, 2014).

Employee branding is a good and unique strategy to reduce and eliminate the key challenges of recruitment and selection in the organization. The employee branding in Telstra organization is excellent and unique. In addition, the firm must reach a large number of employees who have the capability and potential to meet the company’s needs and requirements. For this purpose, they must promote and enhance the seminars and events to attain mission and vision of the firm. On the other hand, Advertising is one good strategy to attract more candidates in the global market. It is an effective way to promote and enhance branding. The firm uses this strategy to reach into the global market. It helps to expand and explore its business activities and operations globally.


On the above-mentioned facts, it has been concluded that human resource management is important part of the company which helps to attract and retain capable and suitable employees in an organization. Therefore, the firm should maintain effective and dynamic human resource management to conduct business activities and operations successfully and effectively. In today’s competitive world, various key challenges and HRM issues are faced by the firm which can affect the growth and success of the firm. The company should control all these factors to stay in the competitive market.



Antonioli, D., Mancinelli, S., & Mazzanti, M. (2013). Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies. Research Policy, 42(4), 975-988.

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing countries. Routledge.

Collings, D. G. (2014). Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business, 49(2), 253-261.

Festing, M., & Schäfer, L. (2014). Generational challenges to talent management: A framework for talent retention based on the psychological-contract perspective. Journal of World Business, 49(2), 262-271.

Huselid, M. A., & Becker, B. E. (2011). Bridging micro and macro domains: Workforce differentiation and strategic human resource management.

Kulik, C. T. (2014). Working below and above the line: The research–practice gap in diversity management. Human Resource Management Journal, 24(2), 129-144.

Lazazzara, A., & Bombelli, M. C. (2011). HRM practices for an ageing Italian workforce: the role of training. Journal of European Industrial Training, 35(8), 808-825.

Long, C. S., Ajagbe, M. A., & Kowang, T. O. (2014). Addressing the issues on employees’ turnover intention in the perspective of HRM practices in SME. Procedia-Social and Behavioral Sciences, 129, 99-104.

Martín Alcázar, F., Miguel Romero Fernández, P., & Sánchez Gardey, G. (2013). Workforce diversity in strategic human resource management models: A critical review of the literature and implications for future research. Cross Cultural Management: An International Journal, 20(1), 39-49.

Muethel, M., Gehrlein, S., & Hoegl, M. (2012). Socio?demographic factors and shared leadership behaviors in dispersed teams: Implications for human resource management. Human Resource Management, 51(4), 525-548.

Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), 139-145.

Story, J. S., Barbuto, J. E., Luthans, F., & Bovaird, J. A. (2014). Meeting the challenges of effective international HRM: Analysis of the antecedents of global mindset. Human Resource Management, 53(1), 131-155.

Telstra.,(2016). About us., reviewed on 17 Dec 2017.,< https://www.telstra.com.au/aboutus>


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