The paper "The Challenge of Employee Recruitment and Retention in Australian Organizations” is a fascinating version of a literature review on human resources. In the recent past, HR management has gained increased prominence as a part of strategic organizational management. Modern-day organizations and HR experts have turned their attention to employee productivity and suitability for certain positions and the necessary skills in the workplace. Attracting and retaining the right kind of employees to organizations remains to be the biggest challenge for employers now and in the near future as it shapes performance (Naughton-Travers & Monica 2001, pp.
7-10). Different suggestions have been made on the best ways to attract young employees from training institutions and experienced ones in different work positions. Some organizations prefer to recruit inexperienced employees and train them while others prefer to headhunt or poach for already trained and experienced employees usually from competitors or other firms. Either way, organizations have to strategically plan on how to attract such employees and retain them in the organization long enough to enjoy their productivity and contribution to organizational growth.
It is from this background that this paper gathers ideas and views suggested by different authors and scholars in the HR field on the challenge of recruiting and retaining employees in Australia to develop a discussion. The paper draws its views from published books and journal articles from accredited authors. DiscussionRelative low unemployment levels in Australia and around the world as compared to some years ago have led to increased competition for quality employees amongst employers. Technologic growth and general economic growth demand have pushed organizations into higher productivity levels calling for more human resources, both skilled and unskilled (Naughton-Travers & Oss 2001, pp.
7-10). However, the quest for skilled labor is more specialized than the quest for unskilled labor. Larson et al (1998) propose four broad categories of strategies to cope with recruitment and retention strategies challenges namely “ prehire strategies, strategies for organizational entry, strategies for organizational socialization and ongoing strategies” (p. 27). Matching employee skills and qualifications with job requirements, duties and responsibilities are of utmost importance to employers. Only employees whose abilities are needed and applicable in an organization are hired and their satisfaction with the role influences their willingness to stay (Chew 2004, pp. 124).
With changes in technology and industry environment, new job positions are created while some are lost on a regular basis. Employee turnover, which is the termination of employment, creates the need for recruitment hence should be addressed first. Employee turnover is the movement of employees from an internal position in an organization to another position, within or without the organization. Employee turnover is both beneficial to an organization and also detrimental. According to (Ranklin 2003, p.
403), organizations willing to change have to let go of some employees and seek new talents and skills in the market as training existing employees may be time-consuming and costly. On the other hand, firing employees is a cost to organizations in terms of pension and termination benefits paid to them and the experience and knowledge possessed by such employees. New employees, on the other hand, are a challenge to the existing organizational culture. A large number of recruits have the potential of destabilizing the existing organizational culture which is fundamental to organizational performance.
Naughton-Travers and Oss (2001, pp. 8) indicate that employee turnover is a direct cost to organizations. They cite the 2000/2001 Survey of Office Personnel Commission which found out that the average cost of employee turnover is 25% of the employee’ s annual salary plus 25% of the benefits package offered. Therefore, organizations can only avoid this cost through employee retention strategies.