Write an Essay on key challenges in attracting and retaining a workforce.
The employee is considered as the asset of each and every company. The primary purpose of this task is to provide ample of information about the key challenges and issues faced by the organizations in attracting and retaining the employees at the workplace. It is significant and effective to hire and retain the potential and talented candidate within the organization. The paper explains the key issues and challenges that are faced by the financial service sector in the global market. It describes that how financial service recruits the workers at the workplace. It has been noted that employees play a significant role in each and every organization to expand and explore the business activities and operations successfully and effectively. More detail of the task has been detailed below.
It is noted that financial service sector is one of the important sectors in the global market. The financial services are considered the economic services that are rendered by the finance industry, which entails a wide range of businesses that manage and handle the money including banks, credit unions, credit care companies, insurance companies, accountancy companies, stock brokerages, consumer finance companies and investment funds. Cost effective benefits are provided by the financial service sector in the market.
Let’s talk about the challenges, it is analyzed by Yeung, Warner & Rowley (2008), various key challenges related to the workforce are encountered by the company while expanding and flourishing the business activities globally. It is important for each and every organization to hire potential, talented and skilled employees in the workplace. No company can grow its business globally without recruiting the right and appropriate candidate in the workplace. Therefore, it is essential to enlist the right and suitable people for doing work in an effective manner. One of the important challenges that are dealt by the HRM is demographic issues that could influence the roles and responsibilities of the employees. The demographic issues occur due to age, sex, gender, income level, and religious. These differences create various types of hurdles and obstacles in the workplace. Furthermore, the financial service sector faces various challenges related to the economy and competition. Due to competition, the financial service sector is unable to employ suitable candidate within the organization. It has been noted that financial service sector is becoming growing and leading industry in today’s competitive world because this sector helps in generating more revenue and returns in the marketplace (Ehnert & Harry, 2012).
It is stated by Budhwar, P. S., Varma, A., & DeNisi, A. (2008), that recruitment and selection are another issues that is faced by the financial service sector while enlisting the candidates at the workplace. It is analyzed that there is no sector who is managing the recruitment and selection effectively and efficiently. The industry does not use effective and innovative process and policies to hire the candidates for performing roles and responsibilities. It reduces the satisfaction level of the employees as it also influences the selection process adversely (Budhwar, Varma, Malhotra & Mukherjee, 2009). Along with this, learning and career development is another key challenge that may influence the productivity and efficiency of the firm and employees as well. There is high and tough competition between financial service that makes it complex for the employer to choose the right and effective workforce for assigning tasks and duties. Globalization is another key issue for the financial service sector that is an ongoing within the organization. Globalization reduces the growth opportunities and it also affects the growth and sustainability of the firm. Globalization spreads communication barriers and challenges in the workplace. Besides this, it also reduces the employment growth rate and globalization also can destroy the environment of the country. With the effect of globalization, the talented and skilled employees get skimmed by the top management and leaders. Therefore, it could influence the long-term mission and vision of the financial service sector (Yeung, Warner & Rowley, 2008). After the various researchers, it has been studied by Lucas & Deery (2004), that job design is also one of the most significant issues that could encounter by the company while hiring the new talents within the organization. Poor job design affects the performance, productivity, mental and physical health of the people adversely. If the firm hires the candidate who is not according to the job design and job profile then ample of challenges are faced by the firm in near future. As per the Iles, Chuai, & Preece(2010), recruitment and selection in an effective and unique function of HRM that is exercised by the human resource department. Culture and diversity are significant issues that could also affect the recruitment process of the financial service sector worldwide. If the company is failed to maintain the dynamic and heavy culture at the workplace then it cannot appoint right applicant within the organization. Diversity is main cause that may affect the outcomes and revenue of the firm (Beer, Boselie & Brewster, 2015).
On the other hand, change is a shapeshifter, affecting the competitors, recruitment and selection process within the organization. It has been noted that human is afraid of the managerial change thus, they ignore the various types of organizational and managerial changes. All these challenges are faced by the financial service sector while appointing the applicants for performing typical tasks and roles (Stone & Deadrick, 2015). It is analyzed that the industry needs to focus on the strategies, policies, and plans to attract the talented workforce within the organization.
Apart from the attracting issues, plenty of retaining issues are also faced by the top management and leaders. In today’s modern era, crowds of the workers leave their jobs and employment with the key issue being a lack of development opportunities (Van den Brink, Fruytier & Thunnissen, 2013). Training is the golden and unique drawback for keeping employees stimulated and engaged for conducting the business activities and operations to a large extent. It increases retaining issues at the workplace (Kaufman, 2015). On the other hand, health and safety standards are probably one of the significant challenges for the human resource management. Not only worker laws govern these issues, but they are also of great significance to general worker wellbeing. It is not uncommon to find or seek high staff turnover in fast-paced companies. Therefore, employee’s turnover also increases the retaining issues within the organization (Ceric, 2017).
It has analyzed by Abraham, MKaliannan, Mohan & Thomas (2015), technology is constantly changing. Sometimes, employees are unable to adopt these managerial changes within the organization. Recognition is one another issue in HRM that is dealt by the financial service sector. Lack of trust and confidence is another issue that affects the employee retention (Garavan, Carbery & Rock, 2012). Apart from this, the financial service sector has been unable to provide compensation, rewards and other benefits to the employees. Therefore, it affects the efficiency and effectiveness of the workers. Ethnic and cultural differences also affect the employee retention within the organization. Besides this, micromanagement could have a direct impact on the outputs of the employees and organization as well. Unappreciation is another cause of employee retention that may affect the satisfaction level of the employees in the workplace.
It is stated by Van den Brink, Fruytier & Thunnissen (2013), monetary dissatisfaction is one of the primary causes for the workers to look for a change. Monetary dissatisfaction leads to employee retention issues at the workplace. Retention is becoming a primary problem when an employee demands for high salary and packages beyond the budget of the organization. Additionally, it has been found that mostly employee seek growth and employment opportunities to develop and augment their skills, talents and knowledge for personal satisfaction and to enhance their professional opportunities. After the various researchers, it has been measured that retention success and growth starts at the top. The top management and board do not provide support to the candidate for doing work effectively and efficiently. Thus, they feel boredom at the workplace and it also affects their productivity and yield. Lack of vision could also leads to dissatisfaction at the workplace. If the top management is failed to provide collaboration and cooperation to the workers while operating and initiating the business activities widely then it affects the morale and satisfaction level of the workers (Ceric, 2017). Language is one of the effective issues that is handled by the HRM while retaining the workers at the workplace. It is measured that employees come from different nations for doing work in the financial service sector therefore, culture, language and communication issues are raised at the workplace. These factors put direct impact on the employee retention within the organization (Hausknecht & Trevor, 2011). The firm needs to analyze and evaluate these factors to make a good working environment at the workplace. The employees are unable to make strong relationship with workers due to lack of harmony. The toxic culture and workplace also reduce the employee retention rate at the workplace. It is noted that low wages are being provided by the top management therefore it increase issues and challenges at the workplace as it also influences the decision making process of the firm. The employees want to leave the job due to lack of respects and discipline. It is foremost challenge that is entertained by the managers within the organization (Garavan, Carbery & Rock, 2012). Performance management system is another issue that affects the growth and targets of the workers and organization. The managers are not motivating and inspiring the workers for performing roles in the workplace effectively due to lack of knowledge. All these attracting and retaining issues are faced by the HRM while implementing the business actions globally (Hausknecht & Trevor, 2011).
There are plenty of ways and strategies that shall be initiated by the company to prevent and handle the attraction and retention issues in the workplace. Maintaining a strong and dynamic culture leads to improve performance and productivity of the employees. The company should identify and analyze the needs, requirements, and expectations of the consumers to reduce the employee retention issues at the workplace. The employees must be fully aware of their job or employment to perform roles in a hassle-free manner. It will help to reduce the key HRM issues and challenges within the organization (Connell & Stanton, 2014). It is noted that managers and leaders should spend much of time on the workers who are striving, and leaving the job. It will help to maintain the positive working environment and it also increases the level of motivation of the workers. The leaders should make an effort to let excellent and top performers know their hard work is not going unnoticed. Unique and attractive perks such as insurance schemes, incentives, bonus, and compensation to the talented workers for their hard work and productivity. It will help to inspire the workers and it will also reduce the ample of challenges related to the attraction and retention of the workers (Hausknecht & Trevor, 2011).
It should be analyzed that career advancement and learning opportunities must be provided to the skilled employees for enhancing their potential and efficiency. It will reduce the absenteeism and resistance to change within the organization and furthermore, it will maintain a safe and secure working environment. Better compensation policies and strategies shall be made by the company to attract a maximum number of applicants towards the employment. Unique and effective leadership styles must be exercised by the company to determine the engagement of the workers towards the goals and objectives of the firm (Gomes, Angwin, Peter & Mellahi, 2012). Effective leadership will provide guidance and support to the workers for resolving and handling their issues and challenges that are occurring in the workplace due to poor and ineffective communication. Flexible work arrangement shall be done by the top management to encourage the employees towards the employment. If the company sets the flexible working hours for the workers then it can reduce the retention issues within the organization. A performance evaluation must be done by the leaders after considering the talents, knowledge, and experience of the workers. This will motivate the employees for increasing productivity and efficiency of the organization successfully. All these measures and strategies shall be used by the company for overcoming on the attracting and retaining issues related to the workforce. Establishing a corporate culture and environment is one of the significant measures towards the prevention of retention issues. Retaining and recognizing the talented and capable employees determine the success and growth of the firm effectively. It is analyzed that HRM should use make effective and unique recruitment and selection strategies for recruiting the workforce in a large extent. The HRM must be very careful while recruiting and retaining the workers (Den Hartog, Boon, Verburg & Croon, 2013).
It is very important to get the reference check done for better productivity and reliability. It also helps to reduce and eliminate the conflicts and issues which are occurred in the workplace. The organization should analyze and measure the needs, expectations, and demands of the employees for providing moral and satisfaction to them (Den Hartog, Boon, Verburg & Croon, 2013). The salaries and wages of the workers at the same level should be equal to ignore the disputes and issues amongst the workers (Brewster, 2017). Appropriate recruitment and selection strategies must be used by the top management to enlist the right and suitable candidate for the job. It shall be noted that employee needs recognition and encouragement, therefore, if the employees do something right then appreciation shall be given to those employees for encouraging them effectively. An effective leader should provide a right career path to the workers for attaining the long-term objectives and goals of the firm. On the job and off the job training methods shall be initiated by the company for improving and enhancing their skills and knowledge. Allowing flexible time helps the employees to maintain a work-life balance between the professional and personal life. The company should involve employees while making unique and effective decisions in the workplace. Along with this, the organization should celebrate the success of the employees to make happy and motivate them within the organization. Top management should communicate goals, roles, and responsibilities to the workers so that employees get to know whether what is expected and they feel like a part of the company (CG Davidson, McPhail & Barry, 2011).
From the above-mentioned limelight event, it can be concluded that HRM issues and challenges could affect the success of the firm adversely. These issues also affect the individual performance and outcomes. No company can survive and grow its business activities and operations without analyzing needs, requirements, and expectations of the workers. If the company wants to gain competitive advantages then effective and unique HRM shall be maintained by the financial service sector. Along with this, the company should focus on the employee turnover rate and absenteeism. The above-mentioned analysis shows that how the company faces attracting and retaining issues in the workplace. At the end, some recommendations have been given to control and handle these attracting and retaining issues within the organization.
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