The motor industry is made by almost all the global leaders. The names start from Holden, Toyota Australia, Kenworth Australia; a subsidiary of Paccar Inc. Iveco and The Ford Australia. The industry employs workforce to work in manufacturing plants, administration, sales, and marketing.
The industry is sophisticated and requires personnel that highly qualified. The workforce who are employed in the industry range from business administrators, engineers, marketing staff and computer experts. The team is ultimately diversified due to the global nature of industry players. The purpose of this report is to identify the challenges facing recruitment by component firms, their recruitment strategies and recommend possible solutions that will assist the industry to overcome those challenges.
The Challenges that are facing recruitment in the automobile industry in Australia
Recruitment covers drawing of interested candidates, selection and hiring those who are found to be most suited for a particular position in a firm. The research has found the challenges facing the recruitment to involve matters on a diverse workforce, organizations image, labor demand and supply, demographics and recruitment strategies. Legal relations, occupational health and safety, managing compensation and employee turnover also outstanding challenges that should not be overlooked. Appropriate management of the human resource is necessary for controlling these difficulties. The accounts of issues challenging recruitment are discussed below.
The automobile industry has been employing personnel from diversified backgrounds. The topic about the diversity of the population in companies is compound and encompasses race, gender, personality, age, ethnic group, tenure, education background and cognitive style. It is how employees perceive their colleagues and the perception they have of themselves. These attitudes affect relationships between staff and eventually affects job performance. Key areas of diversity are the challenges in communication, adaptableness, and change (Greiner, 2015).
- The industry gains from diversity through increased adaptability by the talents of individuals and a variety of solutions that make the industry players flexible to the changing market features. A broad range of skills and experiences avails a full range of service on a global basis keeping in mind the industry in of a global nature. The varied points of view create pools of ideas that meet strategic concerns. There is also greater effectiveness in performance as every employee is encouraged to exploit their abilities.
The challenge of communication
The barriers of language culture and opinions are eminent. Ineffective communication is always seen to override teamwork, staff morale and causes confusion at the workplace.
Challenge of resistance to change
It is a hard task to make the employees accept the fact of culture and social makeup of an organization. Those who resist change always claim that they have been doing this or that in a particular way and decide to remain that way.
The challenge of diversity policies at the workplace
Management of diversity calls for personalized systems. It proves hard for the management to manage employees as individual as each one has special diversity needs. The individual needs call for training at a personal level almost none has similar needs to those of the other.
The challenge of diversity management
A strategic plan on diversity management has to be formulated and implemented to instill a culture of diversity which will acceptability by everyone and bring about healthy social relations (Taylor, 2016). Diversity management will be useful at a point where everyone gets to understand that he is different from a colleague and uses the difference to the benefit of everyone.
The composition of the population is Australia is largely the aging population. Although the group has the much-needed experience, the population is threatened by a small duration of the lifetime, die abruptly leaving a gap that finds no parallel alternative to fill (Ilmarinen, 2017). They attest to have a reduced level of energy. The aging population employed in the automobile industry lessen the possibility of creativity and are only efficient in providing solutions to problems that repeat themselves in which they are experienced. Another challenge is their resistance to the change necessary to match the environment (Jorgenson, 2016).
The cost of maintaining the aging population is much higher than that which could have been incurred to keep a much younger population in the workforce. The old need large medical packages because of the risk to which they are exposed. The additional insurance premiums and excess charitable contributions payments for an aging population are unnecessary costs being incurred by a company which reduces the revenues received by the firms that make the automobile industry (Mecha, 2017). As an aging population keeps itself dedicated to working there is a decrease in some youths in Australia, and this indicates a drop in labor supply in the future.
The challenge of generations
The other challenge in demographics is the hiring of millennials. This young have proven to be digital savvy, social and ambitious and therefore the organizations have to change recruitment method to get the best from this group. The generation needs flexibility at work and can work from any place. They always found to be resistant to supervision and prefer to work on their own (UNC Executive Development, 2012). The group poses a low level of skills and experience to work effectively in such a complex industry. Training that is necessary to impart the skills needed by this group proves too costly. Quick growth is an expectation at the workplace because the millennials are ambitious and it contradicts the standard policy of promotion by experience and achievements (Santhi, 2017). The procedures that have been used for a long time in the automobile industry players will not apply when it comes to this generation. All their needs have different from what the industry has been used when managing the older generation. The company that they work for should foster in creating an environment that is hi-tech to encourage creativity and create the value that the generation wants (Downing, 2014). Employers should personal goals of these employees and their professional ambitions and create paths for their growth and satisfaction through their careers. Millennials are aggressive and have an interest in challenging projects to fit their desire for knowledge. The aging population prefers to work from one location, but when it comes to the young generation, exploration for experience is the desire.
Labor demand and supply
Recruitment is variable to supply of workforce and its demand. Demand for workforce refers to the employment needs and has to be forecasted both the present and those of the future (Marko, 2017). A right balance has to be maintained between demand and supply of labor in the automobile industry in Australia so as to get the right employee number at each point in time. Challenge in the industry insufficient energy that is not correctly matched to skills, experiences, and qualifications in a firm. The problem translates into low productivity, poor performance and a reduced productivity (Carneiro, 2017). The problem of forecasting is the inability to get perfect information. There are many changes in the industry that makes it hard to get accurate information.
In this highly technical industry, the supply of labor is low. Few people have trained proficiency in to match the skills in automobiles (Sikha, 2017). Disincentive to work in an auto firm is as a result of high taxation by the Tax Authority of Australia. Tax rates are beyond the influence of the industry. Some manufacturers such as the Ford have recently been forced to close up operations making experienced workers go unemployed. Labor demand remains stagnant, and there are no new jobs to be taken up by new employees who are more creative (Fitzpatrick, 2017).Employees that can perform efficiently due to their skills and qualifications remain unexploited. The factors that are found to have reduced labor supply are listed below.
- High taxation rates by the federal government
- Slow rate of growth in nominal wages
- A reduction in participation of labor force
The image of the organizations
The image is an internal factor and is a crucial factor that determines how the management conducts a recruitment process. The image is painted by the actions of an organization. Competition in the automobile industry always places an organization at a level that has matched its efficiency in the market (Castle, 2017). The firms set on lower levels depict inefficiency shunning away potential employees in the first process of recruitment which is an attraction.
The highly skilled labor is always found to be attracted to the firm that dictates a competitive authority is leaving less qualified personnel for the other companies. In (Castle, 2017), remunerations, low involvement in corporate social responsibility, the conditions for work and job policies also contributes to the creation of the image for an organization and play a significant role in attracting potential employees to a firm of which most of the companies in the automobile industry have not placed much consideration (Grade Gbest, 2017).
According to the research conducted, I propose the following recommendations to be made.
- A larger number of millennials should be employed to cater for their need to socialize and counter the challenge of an aging population. These employees will be trained by the aging population before retirement.
- Policies of employee development should be revisited, and the companies should come up with new strategies that are appropriate for the young generation.
- I recommend proper training should be done to make every employee understand the presence of diversity and appreciate its benefits.
- Companies should concentrate on enhancing their images by participating in corporate social responsibility and this will, in turn, attract qualified potential employees.
- The Australian Association of Automobile Manufacturers must take steps to lobby the government to cut down employee tax rates as an incentive to attract potential personnel from the supply market(Curtin, 2017).
Regarding the challenges that have been identified facing the recruitment process, the companies in the automobile industry should review their hiring policies to suit the current problems. The sound management of challenges will make companies benefit from the advantages that are come with them rather their performances being held back.
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