Contemporary HRM Issue Research - Essay Example

Contemporary HRM Issue Research Report Name Professor Institution Course Date Table of Contents Table of Contents 2 Background of the report 3 1.0 Introduction 4 2.0The aging work and its impacts on the organization 4 2.1 Challenges of Retaining An Aging Workforce 5 2.1.1 Stereotyping and discrimination 6 2.1.2 Performance 7 2.1.3 Economic Analysis or Value 8 2.1.4 Training and development 9 2.2.5 Skill Deficit or Shortages 9 2.2 Recommendation on utilizing aging workforce 10 2.2.1 Mentoring 10 2.2.2 Flexible Work Policies 10 3.0 Job security and employee turnover 11 3.1 Job security 11 3.2 Employees’ turnover 12 3.3 Job security and increases in employee turnover 12 4.0 Recommendations on job security and increase on employee’s turnover 13 5.0 Conclusion 14 6.0 References 14 Contemporary HRM Issue Research Report Background of the report In the 21st century, internalization and globalization now influences businesses economically, politically and in a social environment. To make it in global markets, organizations can no longer depend wholly on core capability and HRM that led them to success in the past. In the 21 century organizations must look for new approaches that will promote environmental receptiveness. Especially, they have to pursue globalization by building a dynamic workforce. In addition, to be victorious in a world of unions, HRM will have to obtain new skills. The complexity of the challenge under debate is evident from several organizations are involved in global business operations on an international scale. The dynamic workforce is sowing to be of growing significance to organizations of all sizes, to their clients, and to national markets globally, most organizations are now trading to, utilizing materials or tools from, or competing with brands from other countries according to McGregor & Gray (2001). This report looks at how various Contemporary HRM issues such as aging workforce and decrease in job security or increase in employee turnover can have impacts on the organization. The report will evaluate different theories related to these issues to explore its outcome. It also examines and explains the causes of employee turnover on the basis the contribution of personal variable. 1.0 Introduction According to Taylor & Walker (1998, p. 65), over the recent years, an extensive number of researchers have tried to tackle the issues of a dynamic HR in business activities and the effects of the dynamic workforce in organizations. Growth of a dynamic HR in global scale has turned out to be of great importance in increasing of human relationships and making the welfare of the workforce in order to give the maximum input to resourceful working. In the predictable future aging workforce is going to have a huge impact for everyone in the organization and it is also expected to be critical of all demographic variations. Therefore it is significant to evaluate on that issue from the Human Resource Management approach. On the other hand employees’ turnover can hurt the entire efficiency of an organization and is frequently a sign of difficult times ahead as argued by Taylor & Walker (1998 p. 65). This may be as a result of reduced job security as well as lack of motivation, little remuneration and lack of employees’ personal growth among others. 2.0The aging work and its impacts on the organization One of the toughest challenges that organizations encounter today is loss of organization’s long term skills due to retirement, slow production as well as shortage of promising workforce to fill the vacant positions. According to researches an aging population is a growth in the standard population age. There is rising percentage of a group of individuals who have surpassed the age of 65 and a declining percentage of individuals under 16 years. These trends not only have its way in the UK but several countries across the world. The researchers point out that by the end of 2103 the number of people who have attained the age of 65 years will go beyond 6 years as illustrated by Turner & Williams (2006). The trend may best be regarded as the ‘demographic time bomb’. These trends have various consequences both for public and private businesses on the basis of the entire need for goods and services. These comprise of public institutions such as social services, healthcare, education and state pensions institutions. From1980s, the number of American workforce beyond the age of 40 years has gone up considerably. By 2010, over 51% of its workforce was predicted to attain the age of 40 years, while in the next 12 years, 78 million aging groups is expected to retire, with 45 million younger workforce expected to replace them according to Turner & Williams (2006). Whereas this can be a slow event, it is likely to have a big impact on the organizations. Companies must be prepared for the decrease for the younger substitutions and the growing number of employees attaining the age of forty years. If all these challenges are not addressed amicable they can take a told order on the organizations and have effects on the efficiency and economic growth as well. However the question the many may as is; what are the impacts of retaining an aging workforce? 2.1 Challenges of Retaining An Aging Workforce When an organization decides to retain its aging workforce, it has to rethink of retaining, knowledge, skills and experience. Similarly it has to meet multi-generational demands associated with performance, training and flexibility. By retaining the aging workforce the organization will be seeking developing ways to for aging group to pass skills and knowledge to the younger workforce. Some make an intensive endeavor to incorporate older generation to the younger generation of workers. An example is financial firms that have established that prospective clientele frequently feel more at ease discuss about finances with the older group, therefore companies make efforts to hire and retain these older people with a wealth of experience. However, aging workforce faces a lot of challenges from younger generations in these organizations according to Turner & Williams (2006). These challenges include, changing technology, stereotyping and discrimination, performance, economic value, health and well-being, skill shortages and Training and Development. 2.1.1 Stereotyping and discrimination Stereotyping is not often neutral and is rarely highly evaluated however, there is a considerable study on stereotypical thoughts concerning aging workforce in most western organizations as argued by Taylor & Walker, 1998 p. 64). The degree in which stereotypes are upheld regarding older employees are significant to look into since they impacts on the employment correlated decisions and leads to discrimination at the workplace. According Duncan, et al (2000, p. 31) the study suggests that the social construction of the aging is more hurting to these people than their biological aging process. Stereotyping and discrimination can bear positive and negative implications; on the basis of age discrimination at the workplace, the impacts may hamper the performance of the older employee. Though age may assist aging workforce get recognition on the basis of knowledge, skills and experience created over the years, with research indicating aging employees prefer their access to particular categories of jobs, especially supervisory or managerial responsibilities (Salthouse & Maurer, 1996, p. 356). Using the context from New Zealand, McGregor and Gray (2002) believe positive stereotypes comprising of improved levels of consistency, job commitment and loyalty. Negative stereotyping and discrimination have been established to contribute a negative responsibility in major areas of an organization for instance recruitment, selection, performance evaluations, human resource planning, job design, training and termination. 2.1.2 Performance Once of the major persistent discussions is the performance normally decreased with age according to Loretto et al (2000). A general negative stereotype in both females and males relates growing age with declining performance and productivity levels in an organization. Nevertheless stereotype is not based on proof. Documented performance deficits based on age however do not exist; apart from inside jobs demand a high degree of physical endurance and stamina. McGregor and Gray (2002) have found out that there are no disparities in the general sales performance of aging and younger workforce. A decrease in performance could be wrongly credited to aging factor, when in reality it could be as a result of skill burn out or obsolescence incident which could take place at every age and could be overcome by means of training. Duncan, et al (2000, p. 32) provide a scientific argument which asserts that the majority of reviews report less reliable relations between work performance and aging factor. There are varied opinions on the argument are of performance decrease with age. NZIER (2002) claims that a literature review concerning older employee efficiency has resulted in too much distress by economists. Whilst age may certainly be a poor alternative in terms of performance, lots of of the international researchers have diverse logical beginnings. This clearly impacts organization perceptions concerning aging workforce yet the indication at best is questionable (Loretto et al, 2000) showing that the older employees who remain in the labor force, provided that so several people have already gone, tend to be productive. 2.1.3 Economic Analysis or Value Regardless of the traditional labor economics viewpoints which maintain the idea that the aging workforce loses concentration in the workplace (for instance poses less job motivation) and undergoes fewer fulfillments from the work place. Greller (2006, p. 235) established the service of aging employees to be beneficial. Duncan, et al (2000, p. 32) advocates that there are personal and economic grounds to lengthen the work life liveliness of aging employees. Some claims that the aging workforce is more costly to retain in relation to of absenteeism. Practical facts shows however, that aging exhibit less non-attendance, lower turnover, higher job fulfillment, positive work standards and less turnover compared to younger employees. It has also been indicated that the intention is not with aging workers, even though the absence on grounds of illness tends to be more significant. Altogether, no general divergence in absence rates is clear. Health and well being According to Greller (2006), signs good health is an indication of wellbeing later in life and because of progress in medicine; the aging people will take pleasure in for a higher degree of health and strength than past age groups. With advancing health and permanence, a great number of individuals working past age of retirement is may perhaps be on the increase. Statistics from New Zealand shows that Older citizens of that country: 65 and above indicates that most aging persons are healthy and fit, with a growing number working individuals and those who are intending to extend their work plans well past the age of 65 years. Therefore, with a predicted rise in the proportion of aging workforce in place of work, it will be significant for organizations to offer suitable settings that provide to the specific demands of this demographic. 2.1.4 Training and development It is generally believed that the aging employee who is not undergoing training program, improving their category of work experiences, range or actively engaged in maintaining social networking would, after sometimes undergo declining opportunity, pay and job security. While studying suggests various elements to take into account, one of which is training. The exposure of quality training impacts on the receptiveness of an employee in an on going learning experience that is required of all employees today. Labor economics help a lot of employees in training and development on issues that touches on organizational changes. Turner and Williams (2006) discourage concentration and investment in the aging workforce for the reasons that this course of action is expensive and an aging workforce are believed to little to offer in terms of paying back the investments used on them. Additionally, it suggested that the economic value of the knowledge and skills achieved by the aging workforce is tend to be less owing to aging and complexity in evaluating the full potential of capital owed by the aging workforce. 2.2.5 Skill Deficit or Shortages Skill shortages are an issue that is widespread on a global environment and is a constant challenge for several organizations industries. It is predicted that particular skills and abilities is likely to be even shorter in terms worldwide supply in future, unless companies adjust their positions regarding training and re-training. This could consist of ‘softer’ skills related to teamwork and customer service as illustrated by Greller (2006, p. 237), and those competencies related to knowledge-oriented economies – appreciation and application of technology. The expected demographic adjustments will add to this short of skills. It is reported that it is this inclination which is making business to take precedence on the staffing and retention of talented individuals. Aging workforce frequently possesses skills and prerequisites that are hard to attain and that make a central factor in the organization. In spite of this, skills shortages are often regarded to be one of the job risks related to aging employees. 2.2 Recommendation on utilizing aging workforce There are inconsistent views on the major fields, extensive policy programs, approaches and methods that companies can engage to support the effective use of aging workers. For instance, four major areas were summarized as: supportive relations, career development, and training and performance evaluation as argued by NZIER (2002). Aging workers can be utilized in mentoring, and making critical policies. 2.2.1 Mentoring Several literature reviews propose mentor responsibilities as a suitable choice for utilizing the experience and skills of the aging workers. Some aging employees can be productively deployed to take up the tasks mentorships and trainings of younger workmates. This mainly applies in situations of succession of job: the aging occupant can make known the novice with the roles to be performed. Turner and Williams (2006) affirm that coaching and mentoring have been one often mentioned plan, especially among retiring managers. 2.2.2 Flexible Work Policies With the significance of skilled individuals to advance and competitive advantage, organizations will require to rely on new methods of retaining the current workforce and make good utilization of their aging workforce’ competence and experience as illustrated by Greller (2006, p. 238). Researchers advocate that companies requiring maximizing their profits will have to consider in a more thorough and holistic method is concerning managing motivation and expectations as stated by Turner & Williams (2006). Researchers recommend that dynamic job practices may be supportive in doing away with age-based hurdles for the employment of an aging workforce, and it appeared that some and thoughtful way of accommodating aging people 3.0 Job security and employee turnover 3.1 Job security Job security today poses a major challenge to workers and labor markets as well. The most major grounds for declining job security could be attributed to technology, demographic changes, internalization and government policies as stated by Louis & David (2006). From this context various businesses are undergoing the hard times in relation to both employers and employees. Job security is critical for a staff on the basis of retaining his job or getting a new one, and also significant for companies because it makes them to keep their workforce or hire new ones. Factors influencing job security are reliant the existing business state, economy, and personal skills according to Louis & David (2006). The research suggests that individuals are assured of job security during economic expansion compared to recession times. Also legislations like the Civil Rights Act of 1964 in US strengthen job security making it unlawful to sack workers on particular grounds. The rate of unemployment is good signs of job security and the level of economy as reported by various countries and researchers. Individual’s aspects for instance education, job functional field, work sector, work site and work experience among others contributes a significant role in establishing the demand for personal services and the effects on their individual job security. Job security relies on possessing the require skills and experience that are needed by the organization which consequently depend on the existing economic state and business atmosphere. 3.2 Employees’ turnover According to Abassi & Hollman (2000, p. 339) Employee turnover is a major significant operational situation for human resources management of a company to criticize. Even though several researches have been carried out to illustrate the motives and basis of employee’s turnover, less have debated upon the causes of employee turnover anchored in job satisfaction in the perspective of personal variables. Job turnover is amongst the key important action on which the HRM of an organization is normally wary about. 3.3 Job security and increases in employee turnover Stovel & Bontis (2002, p. 317) reports that the increasing concentration on competition and the globalization of markets, companies are focusing on cutting the fixed cost expenditures in order for the profits to be positive and higher as compared to the previous one. In order to realize the anticipated growing revenues, organization are rebranding, restructuring, downsizing and merging to lower their cost and use their resources to the maximum in order for the organizational objectives can be realized at the lowest cost (Kevin & Joan & Adrian, 2004 p. 164). However, downsizing own its won creates moves towards job security in an organization can become sober reasons for workers to move is inclined towards job turnover. Intension to leave, sensation of job insecurity and decrease in work commitment are various major finding arising from organizational reform and downsizing of the workforce. In contrast job security itself is amongst biggest risk to the company since there is several staff on which the company is reliant upon and ineffective approach embraced in downsizing and reconstituting could result to intentional turnover of most experienced employees whose motivation, loyalty and commitment towards services turns out to be a boost to the organization’ s success. 4.0 Recommendations on job security and increase on employee’s turnover High rate of employee turnover harms an organization’s productivity. Experts approximates it costs twice a staff’s salary to recruit and train a new employee to replace the older. Agitation can hurt morale amongst remaining workforce. In order to reduce this turnover trend, managers need to observe the following recommendations. Recruiting the right individuals from the beginning, most professionals agree, is the best mode of reducing employee turnover. Interview and vetting of applicants carefully, not simply ensuring they possess the perfect skills but they can cope with the company managers, co-workers and culture. Creating the ideal benefits and compensation packages is significant too. The managers need to work with human resources departments to get existing data on industry compensation packages in order to make its payments in line with bonus structures. Review payments and benefits packages at least yearly. Give concentration to trends in the market and make HR department update the manager. Focus on to workforce’ personal demands and provide a more flexible way of communication. Encourage workforce’ involvement. Staff requires social relations and a rewarding work setting. They require respect and credit from managers, and a challenging position while providing room for personal growth. Managers frequently fail to notice how essential a positive work setting is for workforce, and how far significant reward from managers can bring positive work. Rewards, recognition and honor may be the most cost-effective manner to uphold a happy, dynamic workforce. 5.0 Conclusion The strategies approaches, theories and recommendations of personal variables adopted completely and systematically in the procedures and policies of the HRM of the organization will create a flexible setting of treating workforce with a degree of significant interest in the organization. Workforce are the key pillar of the organization and takes a critical role in serving the organization a achieving its objective, including competing locally or at a global stage with ever changing organizational environment, therefore better strategies for addressing the issue of an aging workforce, job security and increasing job turnover will assist to realize the profits and positive results for workforce including for the organization. Management ought to be eagerly interested in implementing the methods that would improve the motivational factor of workforce associated with work and also build up effective and strong policies of staffing for filling the vacancy with a right candidate during selection. 6.0 References Abassi, S & Hollman, K 2000, Turnover: the real bottom line, Public Personnel Management, vol. 2, no. 3, p. 333-342. Duncan, C., Loretto, W & White, P 2000, Ageism, early exit and British trade unions, Industrial Relations Journal, vol. 31, no. 3, pp.31-3. Greller, M & Stroh, L 1995, Careers from mid-life and beyond: a fallow field in need of sustenance, Journal of Vocational Behavior, Vol. 47 No.3, pp. 232-47. Kevin, M., Joan, L & Adrian, J 2004, Organizational change and employee turnover, Personnel Rev, vol. 33, no. 2, p. 161-166. Louis, U and David, L 2006, Men Not Working, and Not Wanting Just Any Job, The New York Times. McGregor, J and Gray, L 2001, The mature job seeker, Palmerston North, Massey University. New Zealand Institute of Economic Research 2002, New Zealand industries and regions: Outlook and issues to 2006, Wellington, NZIER. Taylor, P & Walker, A 1998, Policies and practices towards older workers: a framework for comparative research, Human Resource Management Journal, vol. 8, no. 3, p. 61-67. Salthouse, T & Maurer, T 1996, Aging, job performance, and career development. In J. E. Birren & K. W. Schaie (Eds.), Handbook of Psychology and Aging (4th ed.), California, Academic. Press. Stovel, M & Bontis, N 2002, Voluntary turnover: knowledge management-friend or foe? J.intellect. Cap, vol. 3, no. 3, p. 303-322. Turner, N & Williams, L 2006, The Ageing Workforce, Corporate Partners Research Programme, London, The Work Foundation. Read More