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.



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.
ReplyDeleteThank you Sameera
DeleteEmployee retention is a critical aspect for every company regarding competitive advantage because human resources is the most critical asset of today's modern world.
ReplyDeleteThank you Sanjeeva
DeleteYou 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.
ReplyDeleteCan 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.
ReplyDeleteIn 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.
ReplyDeleteaccording to Villegas (2006), training has a direct relationship with employee retention. its organization to increase employee retention and decrease turn over.
ReplyDelete