MOD004160TRI CONTEMPORARY ISSUES IN INTERNATIONAL MANAGEMENT
Introduction
This assessment aims at reducing and presenting through research on one of the major issues in the contemporary scenario of international management, which is the challenge of high employee turnover. The report begins by providing an elaborate overview on the issue and explains why employee turnover is an issue that needs to be discussed and reported about the current situation of this issue. Followed by highlighting the triggering elements that6 is causing the issues to upscale more and more along with their impact on international management. The HRM practices that are currently in use have also been enlisted along with a description of the role of an HR in facilitating more employee commitment and engagement. The assignment ends with a conclusion and analysis that can effectively help in reviving the adverse situation to at least a stabilized point.
High employee turnover as a contemporary issue
The issue of High employee turnover can seriously affect a business as it is going to import all aspects and not just financially. If one is suspecting that their business might be facing the issue then they should immediately try and identify the possible causes that are triggering this issue, measure it and also determine related costs before directly addressing the issue. Employee turnover refers to the rate or the pace at which the existing workers are leaving an organization or business (Stamolampros, 2019). Regardless of the size of the organization or the business, this issue is important as it is going to severely destroy the bottom line of an organization or business. Although the small type business or organizations are more included to get the most e4ffect 3d as they lack employee investment and resources (Rasheed, 2020). This issue is also an important indicator of an internal problem of an organization as employees who are satisfied with their job role and workplace would not leave their job out of the blue as everyone has a requirement for stable income. But it is not completely appropriate to say that all the workers who are leaving their jobs are facing some kind of problem or are unsatisfied with the firm.
There can be numerous contributing reasons for that l9 like for instance some employees might leave due to personal reasons like unfavorable familial circumstances. This may also happen because they may be rehabilitation or immigrating to some different location or it can be because they want to be an entrepreneur or simply it is their time to retire (Kurniawaty, 2019). But if accompany as mentioned before facing this issue on a higher scale and high-performing employees are leaving the organizations who are really needed for the smooth functioning of the organization or business then they must focus on resolving these issues as soon as possible. The cost that this issue can generate is a lot to handle as it is going to cost an organization or business its valuable time, productivity and definetk6n a lot of money. In the case of time, this is going to adversely affect the daily routine as one has to invest their own time to complete and fulfill the space of the previous employee and the process of looking and recruiting an eligible candidate for the vacant post are also going to be time-consuming as well. Along with that, the time invested by a company in training an employee to increase their skill and productivity is also going to end up being a waste. Similarly, when a worker leaves a company the total productivity is going to decline quickly and it is also going to put a lot of workload on the shoulders of other employees as they have to cover for their former colleagues. Even if the company does find a replacement the productivity is still not going back to that level as they have to be trained and adapted within the required work profile. Lastly, of course, the financial factor is elephant size. This is going to include the cost of again the process of hiring and recruiting for the replacement, paying other employees for their overtime, and even sometimes unemployment claims excluding the “costs associated with lower productivity”. This is all the more reason that this topic was specifically selected for the assignment as it may seem minor in something that is not of great importance but it is multifold and complicated to deal with. One3 can be, measured this issue in the following ways – First of all keeping a record of former employees who have left the organization which must include their timeline in the organization, the position they were appointed for and most importantly the reason they left. Then is spotting the reasons for the turnover – that position that has regular turnover, the period they are staying in the post ad if they are turning over for the same reasons are among the basic.
Cause and impact of high employee turnover
There are many reasons for high employee turnover and some reasons are unexpected. Employees and the company both faced problems for that and it affected the company in several ways. A company is mainly dependent on its employees who worked for them and make the company represent able in front of the industries. But when a company or the organization starts losing its employees specifically those who are the best it affected the company and even turns it down. As per the theory, when the company is did not offer the employee their exact payment or the place theory deserves it causes them to leave the workplace. Sometimes CEOs and CHROs are unable to offer flex time or fail to arrange the exact position they offered causing employee turnover. During the pandemic, this problem showed the most in several companies and most of the employees lose their jobs due to lack of money (Dwesini, 2019). Employees are companies or an organization’s backbone but when they cannot happy with the company’s culture they want to quit their job from there. When an employee is happy with their jobs it helps to grow the company’s economy and make the employees more productive. The company or the organization needs to set a good relationship with their employees for the job purpose. But sometimes the manager of that company is unable to make it and the poor relationship causes big trouble for the company. In the work premises, the workers or the colleague need flexibility but somehow they cannot get that (Stamolampros et al. 2019). For that, the employees start to find other jobs where they can work flexibly. As per the theory, if the company did not publish any article to reward and reorganization for their employees it affects their work. In the workplace, people need motivation for their work, and companies need to publish motivational articles to motivate them. The organization’s employees need to feel that they are working in the palace which is worthy. But the recognition process needs to hurry and the manager or the higher authorities of that company need to appreciate their workers until they do not feel good working there (Afzal et al. 2019). When an employee or a person joins a company they first notice the benefit which they got from the office. That is why a company needs to pay a decent amount of salary packages to their employees. It will be including their basic salary, pension, healthcare, or any kind of discounts in medicals and many more. The organization needs to organize or set up a management program to declare each employee’s progress through this and also needs to mention the fact about bonuses. But sometimes small companies are unable to meet those terms and conditions. As a result, they faced a lack of employment in management and it affected their economy. Companies need to learn the development scheme because it is one of the big reasons for employee turnover.
As per the theory, employee turnover lest a huge impact on a company which is definitely not good for the organization’s reputation. Of that, a company is going under in lack of productivity. When a company starts losing its employees automatically the company starts losing its productivity opportunities and it causes them a huge loss. A company or an organization’s growth can affect a country’s economic growth and even for that, the company might be shut down. Additionally, due to a lack of employee company can achieve its future goals and it became a huge issue that is not possible to solve for a company. A company must have its own morals and ethics which make them different from the others but if they do not have that people lose interest so easily (Kurniawaty et al. 2019). When people start to lose their interest from that particular company they do not want to work there even if it give them high payment. In that case, when the company’s employees start turnover from them it put the company in difficulties to achieve their yearly sales growth. It will decrease the organization’s productivity and loss the revenue which may be gain an efficient workforce. Sometimes more employees’ turnover at the same time affected the company or the organization. When an organization’s employee retention is low then turnover always occur even its nothing to do with the workplace (Nurjaya at al. 2020). But no matter what is the reason behind the turnover it always affects the company and makes it difficult for them to bounce back. An organization should be focused on employee productivity, not on the recruitment process. Turnover always increased the cost of recruitment which will prove a huge cost for a company. Sometimes organizations did not give importance to employees’ productivity and improvement. For that, the employees or the worker quit their job and even stop to do recommendations to others about the company (Asimah, 2018). In the business employee turnover is much higher than the requirements process. Employee turnover directly impacts the organization’s revenue and profitability and the revenue impact is much higher in the industry (Ogony et al. 2018). As per the theory, it can be said that a company or organization’s reputation plays a huge role in the innovation process. But when they are unable to maintain their reputation in the market or in the industry it harms their economic factors. As a result, the company did not maintain its product quality and service quality. COVID period affected so many companies therefore; they are unable to pay their employees (Al-Ali et al. 2019). As a result, they left the company, and the organization lost its position which impacts them negatively. Some companies never appreciate their employees and treated them rudely. A company’s behavior is everything for their identification but if they did not maintain their behavior employees or workers get upset by them and it left a negative impact. If an organization’s employees do not have any knowledge about the work they applied for its top the productivity of that organization. An organization with low staff always has a negative impact.
Overview of current HRM practice within sectors
In simple words best HR practices can be defined as a collection of “universal HR processes” which are going to help a business to boost its current pace of performance regardless of the type of industry it belongs to and is also considered part of the worker’s expectations (Mira, 2019). So the best compilation of a winning set of her practices has been a hot topic of discussion for a long time and it remains to be so even today. This may involve various new perspectives and practices like the below noted points.
First of all as per the theory, the process of recruitment and selection – there are companies that seek high – performers and for that, they are taking the help of innovative processes to achieve so. There are several methods to examine if a candidate is eligible enough for a role not only as a “high-performer” but also from the point that they have the capability to \fit in the workplace culture. As there are numerous methods of innovative hiring, it is important to choose which one is best suited for the kind of team one is looking for. So for that reason and to reduce the soaring issue of employee turnover the HR person may adopt the strategy of “panel-based interview” and choose “better advertising for the vacancy”. In the case of panel-based interviews, the number of panelists and interviews should be kept to four individuals or fewer.
In context to the second option and as per the theory which is also becoming an issue, most organizations are giving away advertisements that are not well-structured and confusing which is leading to an unwanted mix of candidates who are not really at par with the requirement or who are overqualified for the vacant role. This means that in the advertisement only the skills that are required for the role should not be given but along with that, the company must provide a reason for the “high-performing” candidates to the given organization over others. Contextual organizational information, organizations’ vision and mission along with the kind of technology used by them should also be included in the advertisement. A paid internship can also work best in regards to most of the situation and attract candidates who are really eligible for quickening the process one can always try the means of video interviewing.
Then is the point of job transparency – this is one of the pivotal HR practices. If a company is one about its failure and success this says that the company effectively incubates an open communicative system which includes the process of feedback that is definite to make a job seeker feel respected, valued and trusted. This may also develop a sense in the candidate that the company is to trust the employees with organizational information because they really want the candidate to work for them and with them (Alkhazali, 2020). This practice can be implemented by advocating a collaborative environment and sharing ideas. The person sitting on the HR post must not limit themselves only to cutting down coats and assessing efficiency.
Third is providing the candidates with proper training and it are a multifold practice – primarily the responsibility of HR does not5 end with the selection and recruitment process. For the sake of developing the present workforce, the HR person understands the value the present generation candidate places on learning and takes measures based on that and also to reduce that rate of employee turnover. For instance, HR may request the company to invest in providing the candidates with “skill-specific training” as younger generations value the process of learning more than the previous generations. Similarly and as mentioned before that this is a multifold point so, as businesses are growing at a mushrooming rate the HR department should also be forced on the individual development of a candidate and not just the companies. Companies must encourage and support their employees to grow more by keeping them engaged in a mixed collection of challenging and easy tasks.
As per the theory, the fourth is the point of employee incentives – If the HR practice in relation to effective employee incentives is not applied in the appropriate form this may lead to demonization of the employees instead of encouraging them to give their best performance. This may also lead to employee turnover. Because if a company provides sufficient incentives to deserving candidates it means that the company is really valuing the employee and their work (Ababneh, 2021.). That can be solved by understanding what in reality encourages the employees. In context to this now a lot of firms use the policy of upgraded performance or increased productivity of an employee to raise their incentives by reforming the formula of annual bonus or review.
This has been extremely helpful in the midst of the cases as it led to the generation of standard performance and worked as an encouragement for the employees but this also contributed to annual huge numbers of employee turnover. Same wise the strategy of “pay raises versus bonuses” where studies say that nowadays most workers are interested in base-pay raises instead of single yearly bonuses as it has “long-term effects.” Secondly, as per the theory, it is of utmost importance to understand that incentives always does not mean or are referring to monetary rewards (Beijer, 2021). As human beings and in the context to private organizations and businesses inexperienced candidates have to go through a lot of situations that can partially harm their mental satisfaction but with proper reward programs and utilization of social recognition for acknowledging the employees for their efforts can encourage them to give their best possible commitment to the company.
Fifth is the subject of terminations – As per the theory, this is also the most complex and complicated situation to implement the best possible HR practices as this is going to be extremely difficult for those who are going to be involved with the initial procedure. It is critical for the implementation of best HR practices to gain knowledge from workers who are getting terminated or those who are “terminating their employment ” and why they are doing so along with that the “sensitive topics” that are linked with legalities. This is going to0 help the HR person or team to address issues that may lead to the generation of termination or prior to such adverse conditions. In such cases, the HR person should always try to show empathy in place of synthesizing with the terminated employee and giving the clearance for why this is happening to them (Sriviboon, 2019). This situation often results in an emotional outburst from the employee end but as the HR person should put a lot of time before taking such a decision then they should also not move from their role later. But to resolve the issue of employee turn the HR department should take the initiative of conducting an in-person exit interview which is going to be of great assistance in assessing the points where the company can improve to retain employees in the coming times.
Role of HR to enhance employee commitment and engagement
It has been mentioned earlier that human resource practices also need to evolve and the practitioners should always thrive to adopt and implement them to maintain the standard and cater to ensure maximum benefit for a company (Sahni, 2019). Hiring and recruitment of new workers for a company may not seem like a big deal to crack but in reality, the changing generations every year brings in a wave of candidates looking for jobs who have varying perspectives and mindset that does not match the previous year’s job seekers. This cannot be done only by random implementation of internal policies and related procedures. The person in charge of the team has to choose the best practice that is going to render to the requirement of the company and for that, one must understand the concept first. Along with that, the person needs to search for the practices that not only work best in accordance with the company but also for its employees. As the department of HR is now not limited to just the basic old practices now it deals with business strategies that ensure continued businesses growth and success along with technological advancement which results directly from employee commitment and engagement of the employee.
Commitment management of the employees is considerably a new role in con text to all the roles that an HR has to play and this refers to the adoption of organizational measures that is going to facilitate the process of creating a workplace environment that is going to be completely dedicated to advocating “involvement and professional alignment “of the employees with the organization’s values. This also has given a very true but not formally accepted fact that commitment is not seen by employees as just a segment of their employment relationship and they do not generally work beyond that. Whereas if the Company is successful in driving an employee into absolute commitment then definitely those committed employees are going to merge their own progress or success with that of the company (Riyanto, 2021). For the attainment of this particular purpose, the department of human resource must put its effort into constructing a space where the employees cannot only6 grow professionally but from an individual perspective as well.
As per the theory, this can be achieved by developing compensation policies aligned with the organizational values, spreading organizational ethics, culture and ideals along with managing a recognition plan that recognizes the standard of performance and effort of the employees. Other than this the HR department also needs to focus on recruiting specific candidates with ‘’potential soft skills for engagement” and clear communications of organizational expectations. The HR department should also develop tools that are going effectively increase the capability of an employee that also promotes self-management and empowerment of each individual. The mechanism of horizontal mobility is also very helpful along with ensuring trust on the employees, referring to conciliation measures and continuous feedback and leadership training. As this is only going to result in Decrease turnover, organizational growth, talent loyalty, boosted productivity, Organizational culture cohesion and an improved workplace environment.
Employee engagement has also become an exigent organizational issue that has been raisins a lot of concern in companies for the last few years also for the department of HR. as the contemporary demand wants the HR department to the cheek of both the bench-mark of allocating candidates to post or jobs that is at par with their experience and skill (Putri, 2019). Secondly, and simultaneously provide them with the job satisfaction that they desire which can also only be achieved if they are assigned to companies that can cater to their aspiration and take care of the individual requirement of the employee. If the department is able to fulfill these two conditions then the end result is always going to result in absolute employee engagement during the recruitment process.
This issue can be dealt with by the HR department through proper management of the new candidates by managers who themselves are capable and engaged with the organization and their job according to the theory. As proper coaching and guidance are going to help the employees understand how and “what the theory has to do”. Similarly sufficient and proper training can also help the employees to get more engaged in their role and towards the organization. As training is going to help the employees to improve the skills they already possess and also further develop new ones that they lack which is going to help the employees to grow professionally. Proper training can also improve the productivity of an employee and develop an environment that is healthy and cheerful rendering their mental peace. Good salary and allocation of jobs that are fulfilled and supported by correct working facilities can also make4 an employee feel more engaged and connected with the department. As money is the medium to fulfill the basic necessities of an individual. But this also does not mean limiting the employee to only their respective comfort zone. Also, the employee needs to have a clear perspective of the goal they have to achieve through a job to reduce the chances of error which is going to facilitate employee engagement with an organization as they are going to be well versed with the mission and vision of a company.
Analysis
The organization dealing with international management issues can incorporate “Henri Fayol’s Principles of Administrative Management”, into practice. This theory uses effective principles that help to manage and balance the different dimensions of labour. The challenges that are globally faced by the management of labour turnover can also be corrected by guidelines in the form of principles given by these management practices. These operating principles facilitated organizational restructuring. Thus more effective roles and responsibilities can be delegated to the employees having the necessary calibre to deal with such major operations. More focus can be critically laid on the team operations. This could help to manage the diversifying operations of the organizations. As opined by Ali et al. (2022), staff stability integrated with this principle ensured reduces labour turnover. Proper motivation through benefit-driven incentives and compensation can also be paid to the workers. This could help to increase the motivational parameters of the employees and reduce the turnover ratio across the employee segment. The “stakeholder’s theory” can also be integrated into the overall management. This theory stated the relationship mechanism with the prominent stakeholders of the organization (Stakeholdertheory.org, 2022). This theory states the detailed relationship of the business organization with the suppliers, customers, employees and other pivotal stakeholders of the organization. This theory also states that organizations should not only deliver appropriate values for the shareholder but also should contribute to all the stakeholders. In this theory, the employees are classified as one of the most pivotal stakeholders. Hence through the inclusion and development of appropriate values for the employee segment, the turnover incidence can be avoided. As per the case study in “The Centers for Disease Control” states that almost 71% of the adults engaged have workplace-related stress issues. The value generation for the employee can be done through investing in the professional development of the employees; it can be done through customizing the benefits for the employees (Forbes.com, 2020). Making the employee feel more valued in the organization can increase their motivation parameters. Creating more employees centric work culture can help to leverage the game in this respect. Integrating the communication with the worker’s segment through two ways of communication can help to overcome the turnover ratio. Accepting constructive feedback from the employees can also help in this respect. Incorporating health benefits for the employees especially after the pandemic issues can help to overcome the turnover tendencies across the labour profile of the organization.
When an employee does their work with less stress it will help them to make quality products (Abolade, 2018). A company’s first duty is to make their employees more flexible at the workplace where they can easily share their problems or issues with the seniors. The organization needs to focus on employee development than the requirements as a result, it will increase companies maximum product quality rate. An organization can warn employees or their investment partners’ trust by showing concern about them in a critical situation. It will help to build the company to raise its market value and it will be impacted with positivity. The company or the organization should offer their staff bonus and varieties of healthcare opportunities.
In addition to the above-mentioned points the hr department or personnel should always look out for individuals who are ready to learn and adapt to new techniques methods and environments as per the theory. As individuals with just an adequate set of skills and experiences are sometimes not fit for some organizations as individuals who also have the capability to adapt to the workplace environment cannot fit in a team. One can learn a set of skills but adapting is completely different. especially those who have an optimistic approach and are passionate when it comes to their jobs if the HR is looking for a candidate who has the capability of staying and getting engaged with their job. Indicating towards their characteristic feature of that allows them to accept blame and taking responsibility for their incompetence at times when they are wrong with that much of ease as to when they accept a reward. This is sure to reduce the issue of employee turnover.
Conclusion
A concluding portion is always added at the end of the content with the aim of providing the reader with a quick review of the topics covered in the content and for the sake of a more refined understanding of the content as a whole. In this assignment, the contemporary issue of employee turnover which has been soaring at a skyrocketing pace has been stressed. This followed by a brief overview of the present Human Resource Management practices and an elaborate discussion on the role of the Human Resource department in improving employee commitment to an organization. How boosting employee engagement is also a part of the HR role and how they do execute that has been discussed one after the other respectively. The ending portion also gives an insight and impact of employee turnover and analysis to solve this issue.
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