Personnel Challenges Facing Today’s Manager in Human Resources

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Introduction

The field of human resource management is changing rapidly, an observation that Lewis and Sequeira (2016) attributed to the constant workplace and industrial environment changes. Inasmuch as these challenges pose threats to the operational prospects of organizations, there are inevitable advantages that accrue from human resource management practices that promote the welfare of the human resource, which is regarded by Crosby (2014) as the most significant asset in the possession of an organization. Therefore, the onus is upon the human resource management at the organization to harness the advantages presented by these changes in order to guarantee a competitive edge over other organizations in the industry.

Minimal studies have established the amount and rates of these changes in human resource management, which have largely been estimated to be unprecedented. However, several surveys have been conducted to help identify the main sources of the human resource challenges that are encountered by organizations. Across these surveys, employee retention has been highlighted as one among the leading personnel challenges facing human resource managers today. 

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This paper draws its foundation from these surveys, thus analyzing the extent to which employee retention presents personnel challenges for the modern human resource management. In so doing, the paper looks into the factors that contribute to the challenge of employee retention, thus identifying the appropriate strategies that organizations can explore in their bid to minimize the risks presented by the personnel challenge of employee retention. Therefore, this paper aims at proving the basic need for organizations to develop appropriate human resource policies, strategies and practices that promote the relationships within the workplace, as this is the pillar of effective employee retention within organizations.

Discussion

In the modern day, Crosby (2014) explains that employees are considered the most significant asset at the disposal of the organization. Following this explanation, Lewis and Sequeira, 2016) argued that the trajectory of labor-intensive industrial competition has gradually shifted from the traditional paradigm where organizations were regarded as successful solely by their financial reports. Therefore, the authors demonstrated that the success of modern organizations is judged based on multiple factors, including the positioning of the company on the indices of the best companies for employees and the policies that define the working relations within these organizations.

Therefore, many organizations today are struggling to maintain and expand their employee bases and compositions to suit the industrial requirements and fulfill the competitive mandate that defines the modern identity of industries. This is the criterion upon which employee retention has been considered a personnel challenge facing human resource managers. Mandhanya (2015) defined employee retention as the ability of an organization to keep its employees. The subject of employee retention is a challenge for human resource management as it envisages the strategic actions undertaken by an organization with the aim of keeping the employees focused and motivated in order to guarantee their optimal productivity and benefits to the organization.

Employee turnover, on the other hand, is the main reason why employee retention is a challenge to modern day human resource management. Unlike employee retention, employee turnover refers to the rate at which an organization loses talent and employees. There are several factors that contribute to employee turnover. Among these factors, Crosby (2014) listed poor compensation and remuneration as the major reason why employees leave an organization. In many organizations that are faced by high employee turnover, the underlying issue of poor remuneration is often dominant. While validating this argument, Gberevbie (2014) observed that many employees tend to compare their earnings with those of the industry average, which exerts pressure on organizations to adjust their budgets in order to meet the acceptable minimums.

In the current scenario, equality in the workplace is a key determinant of the ability of an organization to retain its employees. Whereas many organizations today hire employees from diverse backgrounds to give the organizational face an identity of diversity, Al Mamun and Hasan (2017) write that subtle discrimination in the workplace continues to present challenges for human resource managers. Discrimination in the workplace increases the prevalence of employee turnover, as the discriminated employees tend to seek for working environments that are more accommodative and sensitive to their unique or minority demographic characteristics.   

In essence, organizational policies, practices and cultures are the main factors that determine whether or not employees will remain at the organization. Therefore, to harness the advantages presented by the risks of employee retention, Lewis and Sequeira, 2016) suggests that human resource managers should consider developing organizational cultures that promote positive workplace environments, which are denoted by equal treatment of employees and reasonable remuneration and compensation policies. 

Five recommendations on how this challenge might be addressed

  • Developing a robust remuneration and compensation system

As explained earlier, the satisfaction of employees is the primary pillar of keeping human resources within the organization. The study by Gberevbie (2014) illustrates that benefits and rewards are the main factors that promote the employee satisfaction. Having established the insurmountable role that benefits play in promoting employee satisfaction, it is important for human resource managers to develop policies that enhance the comfortable working of employees. These policies include creating flexible work schedules that enable employees to work remotely, generous paid leaves that are guaranteed for each employee, annual review of the basic salary and frequent tokens of appreciation for dominance, persistence and faithfulness in service to the organization. 

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  • Establishing a positive organizational culture

There are certain organizational values that determine the willingness that employees exhibit towards working within the organization. These values, according to Crosby (2014), define the culture that dictates the relationships among the employees and the frameworks for interactions within the workplace. A positive organizational culture is instrumental in reducing the prevalence of discrimination against other employees. This organizational culture, therefore, borders on the values of respect, tolerance, equality and fairness in the face of diversity, and handling issues with the different personalities within the workplace. 

  • Implementing training and education programs for employees

All employees within the workplace are driven by individual ambitions, most of which are related to advancements of career opportunities. Human resource managers are tasked with the responsibility of ensuring that the aspirations of these employees are kept alive through gestures that indicate that the organization values their input and that it is mindful of their ambitions. Training and skill development programs are the best way that Mandhanya (2015) identified as mechanisms for enabling the organization retain its employees. These programs are essential in providing a clear roadmap for responsibility and compensation, besides helping the employees feel valued as a critical component of the overall organizational success.

  • Create strong communication structures within the organization 

  The effects of the changes propagated by the increasing focus on the role played by human resource management have spilt over to influence the organizational structures and models of organizational management. Just as much as organizations assert value on the significance of employees, the significance of communication in the workplace has equally been evidenced. The modern organizations are divided into teams that work in harmony to deliver on the organization’s strategy with efficiency. The challenge of employee retention manifests frequently through the lack of information on the organizational objectives and the role played by each employee in attaining these objectives. Therefore, a strong communication structure defined by transparency, accountability and honesty is essential in enhancing employee retention, as this minimizes the prevalence of confusion among the employees on the objectives of the organization.

  • Prepare the organization for employee turnover

In most cases, the demand and supply factors play a role in determining the financial positioning of an organization in the completive markets. Therefore, Al Mamun and Hasan (2017) observe that it may become strenuous for other organizations to finance all the human resource activities aimed at overcoming the challenge of employee retention. In such instances, employees may leave due to the inadequacies of the organization. Human resource managers should develop an organization that is resilient to the effects of employee turnover. This strategy encompasses the incorporation of effective methods to overcome resistance and creating a workforce that is dependent on teamwork rather than on individual talent. 

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Conclusion

The challenge of employee retention has been discussed at length in this paper. Remuneration and discrimination are considered the main causes linked to the manifestation of this challenge to the organization. However, the paper proposes the development of a robust compensation system, positive organizational culture, strong organizational communication, employee training and organizational preparedness for turnover as the main strategies to overcome the risks associated with the challenge. In conclusion, there is need for organizations to develop appropriate human resource policies, strategies and practices that promote the relationships within the workplace, as this is the pillar of effective employee retention within organizations.

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  1. Al Mamun, C., & Hasan, M. (2017). Factors affecting employee turnover and sound retention strategies in the business organization: a conceptual view. Problems And Perspectives In Management15(1), 63-71. http://dx.doi.org/10.21511/ppm.15(1).2017.06 
  2. Crosby, D. (2014). Improving Employee Retention in the Public Sector by Increasing Employee Engagement. SSRN Electronic Journal20(6). http://dx.doi.org/10.2139/ssrn.2555709 
  3. Gberevbie, D. (2014). Employee Retention Strategies And Organizational Performance. IFE Psychology22(6). http://dx.doi.org/10.4314/ifep.v164828.7345 
  4. Lewis, A., & Sequeira, A. (2016). Effectiveness of Employee Retention Strategies in Industry. SSRN Electronic Journal22(6). http://dx.doi.org/10.2139/ssrn.2733517 
  5. Mandhanya, Y. (2015). Training and Development Strategies: Motivational Tool for Increasing Employee Retention. Training & Development Journal6(1), 15. http://dx.doi.org/10.5958/2231-069x.2015.00002.5 
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