There are two choices for Essay 3 – the mining sector, or the banking/financial services sector.
You will write an essay on the key challenges in attracting and retaining a workforce in your selected sector.
Your essay will draw on at least five themes from Week 1 to Week 11 of this unit, being those most relevant to your selected industry sector.
Your essay will draw on the academic literature (including the annotated bibliography you developed for Assessment 2), and develop an argument applying that literature to your selected sector.
You must cite at least ten (10) relevant peer reviewed journal articles, and 3 chapters from the Kramar textbook. You can cite other academic references such as books, conference papers, and book chapters but these will NOT be counted as part of the 10 journal articles.
A proper workforce within an institution is considered to have betterment of organizational aspects along with proper management organisational growth. In order to highlight this context, proper employee management is considered to be important for management of business productivity along with its growth. With respect to the content, the following study would be evident to highlight the changes of attracting and retaining workforce within banking sectors. The essay would be producing a thematic analysis on HR challenges mentioned with a proper application of literature. The thesis statement hence confers to the identification of challenges faced by the financial sector, in attracting and retaining workforce in financial/banking sector through proper literature supports and arguments in favour.
Theme 1: Challenges faced by the banking industry in their information technology division
In the literature given in this regard, there are found challenges highlighting dual categorization namely factors being people specific and the other being conferred to situations. Under observation, it has been noted that the information technology department is unable to have implementation of retention strategy. There are unpromising natures of HR managers in the banking sectors which are found to affect the employee retention (Kramar et al. 2013). Improper salary structure reviewing is one of the major constraints that are considered to trigger employee dissatisfaction as well as lead to high turnover rate. Further, the non-procurement of any career opportunities from the banking sectors are also considered ineffective for retaining the workforce.
In context of banking sector, employee retention is dependent on work satisfaction and the favoured management style that is offered to employees. As commented by Ibidunni et al. (2015), it can be said that the employees of banking sectors involve themselves in innovation if they are motivated towards their work. However, Bailey et al. (2018) contradicts the fact that old technological usages are considered to major disadvantages for the banking sectors. The fact stays with concern that older technologies are inefficient for producing the desired data progresses for employees. Improper data management however stays in an alignment of job structure for the employees, thus making them lose interests in their working styles.
The fact is also supported by Mohlala, Goldman & Goosen, (2012), that the banking sectors which are incapable of having their innovations in proper track indirectly hamper employee engagement. The challenges can be categorised into two including situational factors and the factors related to the people of information technology.
However, it stays confirmed that poor technological aspect is disruptive for the banking business whether through procurement of poor salary reviewing mentioned above or through their poor competitive growth. Here the factor stays in alignment of banking sectors to be in achievement of better attraction factors however losing the retention factor which in turn downgrades the overall system.
Another constraint that can be taken into consideration is the poor management style of information technology department that connects with the managerial department of banking sector. An example can be considered such as the banking sector though being competitive is yet with poor application of capital requirements that are with less competitive neutrality (Fsi.gov.au, 2019).
Factors of payment systems can be conferred in this case. Differences within their payment structure in banking sectors are effective for disrupting performability of employees that in turn results to turnover. Here Davis et al. (2016) highlight the fact that credit and debit card systems in terms of payment schemes are considered for competitive fields in order to affect the financial outcomes. However Elegbe, (2016) contradicts the fact that under such technological developments there are aspects such as superannuation retirement phases within financial sectors, are unable to have impedance over employee risks management that in turn affects the retention of employees through poor job satisfaction. This also considered as one of the major challenges.
Theme 2: Challenges leads to skills shortages while managing attraction and retention of employees
Based on context literature, it can be contested that management styles play an important role in commanding over skills shortages while encouraging the aspects of attracting and retaining staffs in banking sector. There are concerned facts regarding the financial sectors that information technology departments are without adequate knowledge and assessment of their employee skill sets that may procure less retention of employees. In terms of such Mohlala, Goldman & Goosen, (2012), argues that internal aspects such as rewarding the employee along with giving them their desired recognitions are major role players for keeping employees intact within the organisation. However, the available literature contradicts the fact that the financial sectors are without these services that would retain their employees. Improper training to the employees can lead to a shortage of skill while they are performing their work (Mohlala, Goldman & Goosen, 2012).
There were also supportive facts from the given literature that information technology department of most financial sectors is with less technical skills that hinder their business productivity. In contradiction, Kaizemi, (2017) supports the fact that modern uses of technologies are to be implemented within the financial sectors in order to gain competitive skills. It is important for organisations to make effective policies.
By virtue of such, they are to be compensated through provision of technical skills to employees in order to have a grip on their assigned jobs. Supports to the fact regarding employee motivations are considered to both key requirements of their retention within the banking sectors. However, Ibidunni et al. (2016) counter-argues the literature that there are to be provided with equal wages along with better recognition to the employee in order to have a high customer base.
In light of this context, Davis et al. (2016) support the use of cognitive technologies such as data sourcing and data analytics mechanism on advanced levels in order to affect workflow of information technology department within banking sectors. In this context, Savanevi?ien? & Vil?iauskait? (2017) highlights need of employee training in order to affect the implicated technologies. A properly trained employee would be more able to maintain productivity against a less trained one. However, the implication is subject to get hindered through cost management aspects for the financial sectors (Deloitte.com/au, 2019).
For example, it has been reported that Australian financial sectors are with 48% of SMEs facing the issue while 68% of other financial corporations are with the fact that improper training is the driving force of negative employee productivity (News.nab.com.au, 2019). The literate also drew instances from the Namibian bank regarding same. The bank was seen facing challenges regarding turnovers, highlighting non maintenances of proper communication along with less supports from senior management and training opportunities. The limited recruitment sources along with poor remuneration structure are considered to be effective for disruption of employee retaining within the financial sector. The degradation on such scales can be contested through availability of strained revenues and the decline has been recorded by 5.6% from 6.2% (Kaizemi, 2017). In this regard, the financial sector is with assumption of managerial roles regarding business deposition and the other clients for enhancing their organisational management. In light of this, the literature has also showcased some possible solutions such as promoting internal recruitment. It is subjected to promote growth opportunities in order to reduce employee turnover rate.
Theme 3: Managerial implications available to retain talents within the sector of banking
In light of the available literature, there are found 2 ways of retaining workforce namely the formal and informal one. The literature supports the Indian financial sectors to be using both formal and informal workforce retention techniques. Highlighting the formal technique, the managers are subjected to have an implementation of multiple staged strategies. There are applications of identification, retention, development and that of employee engagement.
In viewpoint of Jyoti (2014), it can be contested that both formal and informal sources of talent retention are subjected by the mangers of the banking sector on Indian context. There are seen pieces of evidence of talent mindsets with the Indian financial sector in order to main recognition with a valuation of workloads. In addition as a strategic approach, it was viewed that, Indian financial sectors considered their employees for managing retention strategic rather than managing their strategic decisions. This was both implicative of positive and negative aspects. The positive context was regarded as the entailment of job employee motivation and enraging their satisfaction level for their workforce. However, the negative constraint as regarding keep the employees hindered from strategic sessions that would actually help them produce their opinions. This was negative also for the employment opportunities and prospects growth.
According to Elegbe, (2016), the technique of performance appraisal as used by Indian financial services can leverage employee feedbacks along with providing a structured annual work plan for the employees enhancing their abilities. Victor & Hoole (2017) also supports the fact that performance appraisal technique would be evident for motivating the employees for a better outcome and enhanced productivity. However, Ibidunni et al. (2016) counteract the fact performance appraisal techniques would, in turn, affect the productivity by virtue of negative experiences. Repetitive feedbacks with lesser improvement are prone to make ht employees disturbed which on final stage would lead to turnovers. The turnover was contested as the primary reason for 46% shortages on employees followed by 31% of company growth and 33% of specified skills findings. Effective retention, as well as requirement strategy, can be helpful for the employees of the banking sector to explore various opportunities to grow their career (Ibidunni et al. 2016).
There has been also mentioned the use of talent retention strategies on both traditional and modern context. From the traditional viewpoint, employee empowerment can be taken into consideration. However, from the modern approach, stages such as concern of talent management, knowledge management, and performance management are considered by Indian financial sectors (Jyoti, 2014). Against the traditional approach, it can be contested that a modern approach is more speculated and is effective for empowering retention strategies. Strategies such as better salary hikes and employee recognition against the traditional approach of employee empowerment limiting to only appreciations are much more considered effective. Against such the strategy of performance-based promotional plans are bit intimidating as only performance appraises techniques are having both positive and negative aspects. Positive appraisal techniques are likely to motivate employee empowerment, however; negative scales are likely to take a reverse turn. Here, in addition, there can be considered compensations and procurement of work-life balances so as to create job satisfaction and in turn affricate employee retention.
Theme 4: Benefits of attracting and retaining employees’ strategies in banking sector
The given literature highlighted a few benefits of attraction and retention strategies for employees such as performance appraisals, engaging communications among employees along with having job enrichment. Here in viewpoint of Bailey, Albassami & Al-Meshal (2016), performance appraisal is beneficial for the employees to have their job satisfaction and to produce them the necessary feedbacks which can elevate their way of working. On the other hand, Dwomoh, & Frempong (2017) commented that feedbacks can be taken from the employees so that they can be able to state their problems in front of their management. It can increase the motivation level as well as retain of the employees.
Communication engagement strategies such as seminars and cultural activities within the financial sector for the employees' can be considered effective for the betterment of employee culture. According to Elegbe (2016), a proper workforce culture is effective to trigger a positive attribute among the employees which results in a lesser turnover and thus retentions.
However, contradicting to that fact, Al-Emadi, Schwabenland & Wei (2015) opines that it stays critical for the banking sector in order to make insurance for the individuals are effectively working and are well managed. Then only strategies of attraction and retentions would be feasible to the farthest extent or else the whole system would be disrupted. In viewpoint of Al-Alawi (2018), the provision of higher pressures from the financial sector is what hinders the interest of employees from their jobs. In light of such, Ibidunni et al. (2016) support that fact that financial sectors are in turn deteriorating their own strategies through disrupting work flexibilities. Such factors are negative towards the procurement of attraction and retention strategies that are entailed for the financial sectors.
Given literature, on the other hand, was also suggestive for the fact that mentioned strategies were effective for creation of favourable climate so as to give employees a chance of utilising their potential. The banking sector management can motivate their employees towards innovation and creativity by arranging a proper innovation environment (Kaizemi, 2017). However, in this context, Elegbe, (2016) argues that talent management, as well as cultural management as a part of attraction and retention strategy, stays unclear. Managing both the employee constraint along with clearing the internal business environment would be a chaotic situation for the managerial department, though if procured can be beneficial to extreme limits.
There are also mentioned challenges such as mismatches between employee skills and job demand. Position of major managers along with their employees are considered unsatisfactory that were contested in form of inappropriate knowledge and skills and lesser utilization of potentialities. In light of such, it can be addressed in form of lesser patronising of the employees for their works and performances with lesser attributes to their opinions.
Theme 5: Adoption of talent retention strategies by managers in banking sector
The above content highlighted literature favouring strategies for retention of employees, such as appraisal system along with enhanced communication level and culture management. Apart from the mentioned literature-driven strategies, Al-Emadi, Schwabenland & Wei (2015) opines strategies such as maintaining work-life balance along with switching to orientation and on boarding procedures. In addition, fostering teamwork can also be counted as a strategy for attracting and retaining staffs. Here, Al-Alawi (2018) supports the fact that on boarding procedures would be effective for the company to have their new recruits' get knowledge regarding their job role and their company culture in a clear tone.
However, Elegbe (2016) contradicts the fact that objective orientation can, in turn, affect the new recruit to have a mismatch opinion regarding the job role and company culture. A clear vision can procure higher productivity and less turnover/retention. Team working strategy can be taken into consideration with a similar context of training the employees' prospects highlighting similar outcomes. According to Davis et al. (2016), a proper leadership model can be effective for giving the employees the desired perspective to achieve organisational goal so as to get success.
However, Bailey et al. (2018) argue with the prospects of over empowering the employees and rising employee conflicts on account of teamwork when consulted to employees with multiple backgrounds. In this regard, a secular strategy of analysing team strengths and weaknesses can be taken into consideration by the management team. On account of such, proper job assignment along with producing flexibilities can be considered effective or retaining employees (Jyoti, 2014).
In addition, there were available few challenges in the context of retaining employees within the banking sector, where references can be contested with Ghana financial sectors. The literature suggested that there were 92.5% of employees were with satisfaction from the implanted HR policies within the financial sectors. However 7.5% of employees with negative intentions for dissatisfactions. Against their una6tsfcations, there were lesser attributes towards work-life balances and their job practises that were majorly overlooked by the financial sectors. In addition, against these facts, there can be enhanced supports through enhancing communication skills along with increasing flexibilities in their jobs in order to have employee satisfaction (Dwomoh & Frempong, 2017).
From the above study, it can be mainly concluded that financial sectors are both with positive as well as negative outcomes when concerned with attracting and retaining employees. Theme 1 highlighted challenges highlighting dual categorization namely factors being people specific and the other being conferred to situations. Under observation, it has been concluded that the information technology department is unable to have implementation of retention strategy. Theme 2 produced conclusions regarding management styles that play an important role in commanding over skills shortages while encouraging the aspects of attracting and retaining staffs in banking sector. Theme 3 produced a conclusion regarding the applicability of formal and informal ways of workforce retention techniques. There were equal aspects found from both sides. Theme 4 and 5 were with critical analysis of benefits of employee retention techniques that highlighted their pros and cons. However, the techniques can be concluded with major positive attributes for managing their employee retention thus overrunning the negative constraints.
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