The employees in any industry are important for bringing success to the business. The success of the business does not depend on an individual's power or idea, but it involves constant teamwork as well as communication among the employees. (Banker et al, 2015). HRM resources ensures that the organisation is able to achieve the success through the people. It helps in the management of the human capital with the specialisation in recruitment, training and the employee-relations or benefits. The training and development is to make sure that the employee is trained with the continuous development. It is done through the performance evaluation and different reward programs. The report will discuss about the different strategies of HRM that are effective with their challenges in the retail industry.
1: Hrm and Strategic HRM
HRM implies execution of management approach for managing the workforce of a company. It is based on the procedure of hiring, developing as well as retaining the workforces with an opinion to make them highly effective. When traditional HRM policy is compared as well as contrasted with strategic level HRM or SHRM, it becomes an easy process to understand. The process of SHRM is the procedure which aligns with the business strategy with organization's human resource work, so to get strategic level goals of a company (Baum, 2018). In case of SHRM, the staff of the organization can be managed in a proactive manner.
To attract and retain the right kind of people in retail sector the overall governance of manpower of any retail company is detailed as well as formed in a structural manner and this process is called as HRM. A function at a managerial level also implies framing strategies in HR in a way to have direct workforce efforts in the direction where all the goals of a company are called as SHRM.
A retail industry like any other industry is going through a lot of challenges. Change management is one such challenge which comes under as a specific challenge for personnel management. Another important challenge of HRM and SHRM in the retail industry to understand the right tools to calculate HR based effectiveness (Bilau et al, 2015). Using the metrics to decide the efficiency right in the starting of a shift from understanding the role of HR as a right strategic partner within the boundaries of the company.
2: Recruitment and Selection
To have an effective kind of recruitment strategy which can be paramount toward the success of any company. The function of recruitment and selection can also become expensive and ineffective procedure when not approached in a right and proactive manner. A selection and recruitment strategy make sure that any retail company has the right skills, attributes and knowledge to meet present as well as future operational and strategic needs. It is also important to make sure supply can meet the demand needs. In a retail industry like any other sectors also the recruitment process is to find the wide pool of applicant to give the greatest options based on selecting the best individuals for the needed roles in the company (Booth, 2017).
When the pool of people in the form of candidate has been recognized via recruitment process the rightest employees or candidates are recognized via a selection procedure included however not restricted to interview, checking of reference and testing. In retail industry, candidates learn a lot of thing on the job so experience holds an important place.
Before forming a job strategy especially in the retail sector, it is important to decide whether hiring workforce in the best interest of the organization. To bring new workforce can be costly when one can combine the overall costs to hire, train and orient them. Labour-based expenses for full-time workforce can be high, specifically when the company provides employee advantages (Carré et al, 2014). In addition, in the retail industry, hiring contract labour as well as an independent contractor that can relieve people of the accountability to manage a staff full time and based on an assumption on accountability for payroll-based taxes.
The overall cost to select as well as replacing hourly based workers especially in the retail industry is approx. 6 months wages where the cost to replace salaried in personally is based on salary personnel is based on salary for almost a year. Cost of recruitment consists of advertising space with professional members, sponsorship in job fair as well as college selection and recruitment trips. There is also the function of outsourcing which can relieve the organization of the accountability to select as well as manage the workforce who can specialize in complete lifecycle selection as well as staffing demand which are consistent with high and worth or right salary of complete internal recruiters (Dabirian et al, 2017).
3: Employee Relations Challenges
The association existing between the workforce working in a common company is known as an employee-based relationship. Every workforce must be ideal be more comfortable with other to be motivated and stress-free. No results have ever come out of conflicts, despite it is just about the mere wastage of time and further lead to negativity in an environment at work. The workforce must work collectively as an individual unit which comes out with more creativity plans and achieves the works at a faster rate (George, 2015). Workforces also enjoy a warm kind of relationship with one another tend to discuss things among themselves as well as always think as a part of the team which finally advantageous the company.
Since the retail sector is a volatile place to be and not every team can consist of many kinds of people of different gender and the high-pressure job where one must be on his or her toes to provide services to the consumer. Like not every team can afford to have a member of the same gender and there are male and female employees that can also be there in the team and may not be very comfortable with the team member. A male staff member can try to be friendly with opposite gender just to raise the level of comfort between them may not be encouraged by the female member. There can be a thought process of taking it otherwise and losing the complete trust in the person (Hunt et al, 2015). A female employee can feel insecure and therefore spoil the association between them. One also requires being careful while addressing the team member of another gender. It is also important to think to right before speaking and ensure that everything is within the limits. Extra interference and trying to be friendly may not work well with people. At the time of informal gatherings, it is also important to ensure that one does not talk anything which can embarrass the female member. There is a feeling of awkwardness and one can never share this comfortably with people or discuss. The female workforce should also gain clarity on the overall corporate culture and must not overreact with no specific motive. It is fine to go out for meetings with the manager who can be opposite gender (Hutchinson et al, 2015).
In the retail industry, it can also be very difficult to be true to every expectation of every employee. Employees must not expect any kind of monetary advantages which can exceed the budget of the organization. There are times when the management completely says no to provide the asked or desired benefits or incentives to the workforce and because of that they become negative and have the tendency to spread wrong things around (Kacker & Perrigot, 2016).
4: Motivation, Rewards and Compensation
There is a number of people that get highly motivated or encouraged by money and that may last for a brief period. However, the real motivation and the power of money usually wears off as workforce usually get used to the present level of compensation. There is a number of studies that have confirmed that as far workforces are paid in a competitive manner, money is not the important factor that can lead to the job selection as well as performance. Finally, many people are encouraged more by the work they perform and the culture in which they function than by the money which can be earned. Thus, the reward system and compensation provided to employees must consist of monetary as well as non-monetary concepts (Kumar & Yakhlef, 2016).
There are examples like Ewing Kauffman who paid his employees salaries which were slightly low in comparison to competitors however, he offered profit sharing as well as paid a lot of bonuses for good performance along with added advantages when the company was performing well (Mann et al, 2015).
The same process was there at the end of the year when the performance of the team and personal bonuses, the concept of profit sharing, options for the stock as well as stock-based warrants. All the plans can have their share of failures and everything should be tailored to the specific case. It is very important to seek the assistance of the experts from the salary specialist point of view and a lawyer that can keep the plan aligned with the value system of the company.
One must also ensure while setting up the compensation system along with reward policies, the workforce must be well compensated for the work people do at or sometimes near competitive salary stage (Mokhlis, 2014). In addition, monetary compensation may above and way beyond the competition level and may not motivate when the people seek value for things, like their personal time. The retail industry is a high-pressure job where employees battle between monetary benefits and the personal time. Growing the name in the retail sector for a company that is unable to afford to pay the salaries as a settled corporation may provide the key workforce with a kind of ownership in the organization. That can, when the company is successful, the workforce will share as the part of the success (Montague et al, 2015).
The process of procurement, growth and retaining of the workforce have never been crucial than the current time where the most companies have existence worldwide. The organization also relentlessly look for ways to retain the core workforce. To understand any form of inter-linkage that exists between the performance management strategy, training as well as development strategy and compensation-based strategy and many more that have become very crucial to attract, motivate and retain the ideal employees and this is especially true in retail sector where retaining the workforce is a challenge (Patrick Hilton & Lambert, 2015). In the era of restructuring as well as downsizing, much required which can be done by the manager to encourage the workforce. The organizations who are heading towards restructuring are finding it challenging to keep up the overall morale of the workforce. In so many cases, the huge incentive along with performance associated with pay systems have failed miserably. In so many cases, the biggest incentives, as well as performance-based pay structure, have failed and the psychological contract that exists between the workforce some managers is redefining. To sustain the motivation stage of the workforce, companies should show them a close connection that exists between rewards and performance (Scott, 2016). This kind of rationale which is promoted is based on merit-based pay. However, despite the overall attractiveness the ESOP and PRP sometimes help in bringing the outcome which is precise and the complete opposite of the current desired one.
5:Employee Turnover and Retention
The process of attrition that can be defined as a process of gradual decrease in membership or personnel as via retirement, death and resignation. In addition, the concept of attrition is based on the number of workforces that are leaving the company which consist of both kinds of work which is voluntary as well as involuntary. The workforce slowly decreases his or her ties with the organization than just cribbing about many underlying elements causing or becoming the reason of attrition. It is also symptomatic for so much deep level of hatred that goes deep into the innards of the companies (Perry et al, 2015). The level of attrition rates may change from sector to sector. In addition to unavoidable factors like resignation, death, disability and retirement, the factors are found to so many and diverse. They change as per the nature of the business and the stage of the workforces and the nature of the accountability has rightly shouldered by them. The most common and important factors are the ergonomic level of discomfort that employees face and the functional level of incompatibility that exists between the corporate level of management and the workforce.
As discussed, there is the high turnover rate in the retail industry because of high-pressure work in a retail job. The studies also show that there is approx. eighty-eight percent of the workforce that leave the work for the factors which are not just paid. But, there are approx. seventy percent of managers who think workforces leave primarily because of pay issues (Rathi & Lee, 2015). The other reasons can be when workforce feel the workplace is not what they anticipated. There is the existence of mismatch that exists between the work and the person. There are coaching and answers and there are few development and advance level options and many more.
The HRM that can be found at the current time in the retail sector and otherwise is an outcome of the number of major inter-associated growth because of the era of revolution in the industry. There is the emergence of trade-based union movement which requires an individual who can act as a crucial link between the management and workers (Sankar, 2015). Such kind of role was primarily performed by the Labour Welfare Officer that can confine just to welfare practices of the workforces. With time, the system of the factory was introduced (Theurer et al, 2018). The role of filling and providing people for the company was provided to an individual known as a personnel officer.
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