Relationship between employee retention and training and development 



Skills and control gaps in human resource management a comprehensive analysis of skills gaps, needs and development plans required to align the workforce structure to the shifting strategic role of business organizations as per the human resource management policies and procedures had not been undertaken. Areas of need for staff capacity building relate to country capacity strengthening, supervisory and managerial skills, as well as knowledge management and advocacy skills(Beaver & Harris, 1995). The lack of training and skills development was reported and it is to be a cause for low staff morale. Several issues were identified in relation to human resource management processes including no regular performance assessments of service contract staff or exit interviews to capture the reasons for staff leaving, recruited consultant did not meet competencies and skillset in the terms of reference (TOR); and high levels of staff forfeiting days of leave as well as high levels of sick leave, both of which may have been indicative of significant work pressures.





How to ensure work life balance of human resource
In modern business world most of the business organizations highly concern on work life balance of the employees. That means it is essential to give flexible hours to the Employees to spend the time with your family members and ensure the high level of job satisfaction with proper mechanism to ensure the work life balance. For that purpose business organizations have introduced flexible working hour’s mechanism to employees in order to decide the working time based on the convenience and available time to the Employees (Geert, 1984). In addition to that in plan in the working hours to the Employees most of the business organization tends to gather ideas and views of the existing employees in order to ensure high level of employee satisfaction through proper work life balance system. Further business organizations have introduced work from home system to provide better environment to spend the time with their family members while working to the organization (Beeret al, 1999). this approach create financial benefits to the business organizations in terms of saving administration expenses and reduced the liability to theemployee record in the employment. Especially female population highly concern on work life balance due to their social responsibility towards their families and society.





Contemporary human resource management issues

In modern business organizations, Personnel Policy Manual (PPM) for staff and the Finance Procedures are generally complete and comprehensive. Related to that, most of the business organizations would also like to consider providing insurance cover for its staff as required by the PPM. Such coverage is currently not provided other than the medical expenses for visitations to the General Practitioner.As an extension to the PPM, the audit also recommends that business organizations should document relevant policies on the adoption of local rates used for payment of daily allowances, overtime, labor rates etc. This would suitably reflect organization’s practice consistent to local norms, in addition to the broad guideline provided by the PPM (Boxal& Purcell, 2000).
It is noted that although the Code of Conduct and Whistle Blower Policy are part of the Guidelines for human resource management, this was not communicated or explained to staff in most of the business organizations. Even though as part of their employment agreement they are expected to be familiar with and abide by them(Geert, 1984). There had been no training or refresher course organized by most of the business organizations. This lack of communication of Code of Conduct and Whistle Blower Policy could lead to compromised integrity and ethical values such as conflict of interests and at the extreme could affect the relationships with the organization’s internal and external stakeholders(Beeret al, 1999).
The efficiency of the HR processes identified and it was caused directly or indirectly by the use and/or unavailability of related modules in Enterprise Resource Planning system. Specifically:
  • ·         Manual processing of request for personnel
  • ·         Manual posting of job vacancy in website, job search channels, and/or newspapers
  • ·         Various systems used in carrying out Compensation & Benefit processes such as HR4U used for leave administration and payroll processing, Enterprise Resource Planning system for profile creation, Casual Payroll for calculation of payroll and statutory requirements of Malaysian staff, Spreadsheets.
  • ·         Duplication of efforts in encoding personnel profile information in HR module and reconciliation of two personnel master files to ensure consistency.
  • ·         Manual process in recording, monitoring and analysis of employee performance evaluation.
  • ·         E-Learning portal will be used separately as the Learning Management system.  Training requests are done using routed forms.
  • ·         Exit interview form is developed in a platform which is no longer supported by the vendor. 



References
Beaver, G. and Harris, L. (1995) Performance management and the small firm: dilemmas,
Tensions and paradoxes.Journal of Strategic Change, 4(2), pp. 109-19.

Beer.M. S. B., Lawrence, P. R., Mills, D.O., and Walton, R. E. (1999) A Conceptual overview of HRM in Poole (ED), Critical Perspectives on Business and Management.Human Resource Management, 1, pp 30-51.
Boohene, K., &Asuinura, E.L. (2011) The effect of human resources management practices on corporate performance: a study of graphic communication group limited. International Business Research, 4(1): 266- 272.

Boxal, P. and Purcell, J. (2000) Strategic Human Resource Management.International Journal of management reviews.
Chang, P.L., & Chen, W.L. (2002) The effect of human resource management practices on firm performance: Empirical evidence from high-tech firms in Taiwan. International Journal of Management, 19(4), pp. 622-638.

Clark, T. (1999) European Human Resource Management, Great Britain: T.J. Press (Padstow) ltd.
Collis, D. (1991) A Resource-Based Analysis of Global Competition: The Case of the Bearings Industry. Strategic Management Journal, 12, pp. 49-68.

Comments

  1. Employee retention refers to the ability of an organization to retain its employees. In this course we will discuss some of the drivers of retention, or areas in which employers can take action to increase the probability of keeping employees. Retention is important because turnover can cause poor performance in otherwise productive units. The focus now turns toward the keys to managing retention as part of effective HR management.

    ReplyDelete
  2. Employee retention is a critical aspect for every company regarding competitive advantage because human resources is the most critical asset of today's modern world.

    ReplyDelete
  3. You were discussing about value of employee. It is hard to measure the exact cost associated with employee turnover for organizations. Fitz-enz (1997) stated that the average company loses approximately $1 million with every 10 managerial and professional employees who leave the organization.

    ReplyDelete
  4. Can you retain an employee by providing training opportunities? It is the question came to my mind when I started reading the blog. But towards the end there is a chapter on HRM issues. I am really confused.

    ReplyDelete
  5. In global context, employee retention is considered immensely important. Most of the companies are judged on the basis of their turnover rate. The rate of turnover affects the performance of an organization. Low turnover ensures that organization is retaining their competent employees by providing them superior environment which increases the performance of individual employee.

    ReplyDelete
  6. according to Villegas (2006), training has a direct relationship with employee retention. its organization to increase employee retention and decrease turn over.

    ReplyDelete

Post a Comment