Human resource is the most potent resources in every aspect of organisational functions. Human resource management is the process of simply controlling the resources that are associated with the human elements. Human resources help in building profitable management through optimising workforces within the organisation (Armstrong & Taylor, 2014). Human resource department in telecommunication sector is also important to technical needs that can be fulfilled by the human resources. In this report, Telstra, Australian Telecommunication organisation is chosen. The thesis statement of the study is to explore the Human Resource planning of Telstra and related challenges associated with this.
In this report, in the first section, HR planning of the telecommunication industry will be the main focus. In the subsequent section, recruitment and selection strategies in Telstra will be explained with HR strategies of Telstra. In addition, challenges of Human Resource Management and current trends in the telecommunication in human resource will be described in the later section. In the final section, a set of recommendations will be given.
In this report, secondary data has been collected in order to produce the information about telecommunication industry and Telstra. Information of the report has been gathered through books, journals, websites and industry report and company website.
Telstra Company Profile
Telstra is leading telecommunication organisation in Australia and it offers the full range of products and services to meet the needs of the customers like fixed-line telephony, mobile services, internets services and broadband services. Telstra has more than 35,000 employees across the world and it has offices in more than 32 countries. In the 2014-2015, Telstra invested more than $120 million in order to provide better training and learning development of the employees (Telstra.com.au, 2017). Telstra keeps increasing the number of women employees and it has been giving the opportunity to the indigenous employees.
1. Human Resource planning of Telstra
Step 1: Reviewing the business goals
Telstra’s goals have three pillars:
- Delivering great customer experience
- Driving growth and values from the core
- Building growth in businesses close to the core
Other three strategic enablers are digitisation, culture and capabilities and networks for the future (Telstra.com.au, 2017).
HR department of Telstra has the clear understanding in which direction the organisation is heading. HR department reviews the government's key priorities of emerging direction that may impact on the organisation's mandate. HR manager of Telstra can review the organisation’s priorities, performance indicators and budget allocation.
Step 2: Scan the environment
In telecommunication industry of Australia, Telstra has to focus on external factors like labour market trends, changes in the legislation, technological advancement, current and projected economic condition and cultural and social values. In Australia, employment-to-population ratio for work-age people has been increased by 0.3% (Campbell & Brosnan, 2017). HR department has been focusing on the reforms of the telecommunication regulation in Australia proposed in 2014, the government has been focusing on responsive telecommunication, competitive market and ensure all Australians must have access high-speed internet. In addition, internal factors of Telstra are workforce composition, changes in policy platform, programme, guidelines and organisational structure (Telstra.com.au, 2017). The government can take the initiative in employment equity, training and learning, values and ethics of the employees.
Identifying the gaps
HR department of Telstra then identify the skill shortage in the specific occupational group and HR manager identifies the potential needs of new employees. It is needed to identify the possible need for succession planning and management.
Developing the plan
HR Planning includes the human resource priorities and key planning issues with consideration of budgetary factor. HR department can communicate the human resource plan to all Telstra employees and engage the managers in implementing this.
2. Human Resource strategies of Telstra
Telstra has its HR strategies and policies.
Service and Respect: Telstra truly cares and responsive in the way an employee gives services to the customers and fellow employees. Telstra management wants that employees must have respect for all individuals and employees must treat equally with dignity to fellow employees and customers. Telstra policies encourage mutuality and making employees feel that they were treated with respect (Telstra.com.au, 2017).
Integrity and Trust: Telstra facilitates integrity and being honest and ethical in the workplace is needed from the employees’ side. Telstra asks the employees to be compliance with the laws. Trust represents a significant variable that can influence organisational productivity. Telstra exhibited higher organisational performance if the employees have trust in themselves (Colic-Peisker & Tillbury, 2017). Employees of Telstra must trust the colleagues and they must rely on them in order to do the work in achieving the business success.
Commitment and accountability: Telstra management employs the team leader and employees need to do what the senior team leaders say. Accepting accountability for one’s own actions is needed.
Diversity: Telstra believes in diversity as they increase female employees in the organisation, they support LGBT movement and they provide the chance to the indigenous people to work in the organisation. Telstra follows the diversity management in order to drive the business results, enhance the reputation of all sections of people and attract, engage and recruit a diverse team who have talents (Telstra.com.au, 2017). Telstra's policy is based on the benefits that can be achieved through managing the diversity and values.
3. Recruitment strategies of Telstra
Responsibility for recruitment process is assigned to HR manager, Alexandra Badenoch. Responsibilities of the HR department are an interview, selection, psychological and Aptitude Tests, Medical examination and responsibilities for adherence to indiscrimination laws. There are two types of recruitment, internal recruitment and external recruitment (Hoch & Dulebohn, 2013). Telstra mainly follows external recruitment policy of placements, outsourcing and job portal. Telstra receives a huge amount of job application from external sources per month and Telstra takes help of PageUp to develop a strategy that can provide benefit them to achieve their goals (Bandias & Vemuri, 2015). This Recruitment Software is tailored end-to-end to CRM functionality to allow Telstra’s proactive recruiter to adapt to new system. Telstra recruits mainly three types of employees, freshers, experienced executive and managers.
At first, HR department takes the preliminary interview and then selection test happens. Then, the candidates have to go through employment interview and the managers have to take selection decision. After that, the candidates are given job offer.
4. Human Resource Planning challenges for the telecommunications sector
Human resource planning is the ability of the HR department to predict what can happen outside of the organisation like economic trends, downturns and upturns and what competitors can do. The pace of alteration in the telecommunication sector is so quick that it is hard to predict for the HR department.
Australia's labour needs depend on international graduates and domestic young generations. It has been observed in the labour market a changing balance between migrant and domestic forces. In Australia, HR department faces issue as the skilled migrants have been arriving faster and many young generations are completing their higher education in Australia, therefore, understanding labour supply and demand in telecommunication industry is an issue. However, the demand for skilled employees is not keeping up with the supply and the labour market in recent time has negatively affected and it falls from 75% to 72% in 2016 (Gooderham, Nordhaug & Ringdal, 2016).
In case of telecommunication industry of Australia, the candidates must be skilled, the organisations want to keep the employees from diverse sections of various multicultural background. Telecommunications companies are large and in these organisations, multicultural workforces work together. HR department has been facing an issue of managing diverse culture, aged-population, language, team working. In recent time, Australian, telecommunication sector needs downsizing as they are burdened with extra workload and responsibilities, change in work procedures and management (Jackson, Schuler & Jiang, 2014).
5. Human resources trends in the telecommunication sector
A recent trend in human resource is that toxic work culture and unethical business practices should not be encouraged by HR department. HR department in recent time cannot understand traditional annual review for the employees is good or the peer-based performance of the employees can be helpful for the employees.
In telecommunication sector of Australia, the sector gets recruitment from the campus, international employees and immigrant unskilled people (Renwick, Redman & Maguire, 2013). In telecommunication sector, companies are sourcing from internal and external labour markets. The labour market in Australia is improving in construction, health, relation, transport and accommodation, however, in telecommunication, this trend is not following. In Australia, the level of unemployment touched 1.9% higher than the last year 2015 (Fenton-O'Creevy, Gooderham & Nordhaug, 2015). In Australia, more than 77% people had a bachelor degree in 2016 and between 2011 and 2015, skilled migration number has been grown by 31% (Colic-Peisker & Tillbury, 2017). The growth of employment has been noticing in Victoria and New South Wales and largest employment sector is health sector. In this regard, Telecommunications Company needs to promote among the target groups to recruit and retain maximum employees as it is the part of employer branding (Delery & Doty, 2016).
6. Recommendations to Telstra
Revise the performance evaluation process
Excellent employee performance evaluation can make a win-win situation for the employees and Telstra can set 360-degree performance evaluation process in order to retain only skilled employees. In Australia, the condition of employment is not healthy and Telstra need to improve the skill of the employees.
Develop an improved hiring process
Telstra in telecommunication sector needs to improve hiring process as structured interviews can be conducted in order to select the most qualified employees for the positions. Interviewers are also needed interviewing skills training.
Develop better employee-employer relationship
Telstra needs to continue to retain the best employees and talents irrespective of the culture, sex and nationality of the employees in order to survive in such competitive age. Firm performance and improved organisational outcomes can be attributed an increased level of quality in employees, administrative competence and flexibility.
Revise employee handbook
Telstra provides a contact form to the employees; however, they need to develop a handbook where they need to provide all basic information about the rules and regulation. Company policies are important as it outlines human resource and management related information with company expectations.
It has been observed that Australian workforce has been facing the issue of skill deficiencies and trend in employment contract and flexibility has also been changed. Labour forces of Australia are supplied from the domestic and international market. In telecommunication sector, HR department has to understand the company growth and it is difficult to foresee today's world. Budgeting for HR functions in the planning of the development of the employees is difficult and planning for the executive leaders to set their responsibilities, payroll and distributing the paychecks can be issued. Telstra HR department can analyse that HRM strategy must match to business strategy and it should make a continuous learning environment. Skills and values of a diverse workforce are used in Telstra where selection system is legal and on-discriminatory. Telstra is a large organisation and they must focus on performance evaluation, hiring process and employer-employee relationship.
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