Unlocking the Potential of Human Resources in Organizations - Essay Sample

Introduction

An organization's human resource is the part responsible for making processes productive, bringing innovation and competitiveness, by transforming potential into real capacity for use (ROBBINS, 2005). The quality of human material reflects the quality of products and services and accessing and maintaining this intangible asset is often more difficult than capital or technology itself. No organization continues without a balanced staff, however, retaining a professional, an integral part of the growth of companies, has become a challenge. Thus, staff turnover is a constant concern for managers.

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In recent decades, the issue of employee turnover in organizations has received a lot of attention from practitioners and academicians. The concept refers to the number of staff workers who leave a company and are replaced by new ones. High staff turnover can impair the company's ability to retain customers and deliver high-quality customer service (Purohit, 2016). Customers can become more comfortable talking to the same employees and service representatives over time. Personal relationships and familiarity can generate customer loyalty. Small businesses are better positioned than their larger competitors to take advantage of this, but if employees are constantly leaving and being replaced by new ones, the company's ability to form a strong bond with its customers may be affected.

It is essential to take measures so that this rate is not too high, as this causes several problems for the management of the business. A turnover high means that something is wrong in the organization's talent retention (Yu, Liu & Ren 2019). It is necessary to identify the reasons that lead to the frequent departure of employees and work to solve these problems. Among the reasons that lead to increased turnover, some of the main reasons are: bad relationship with the boss; bad indoor climate; lack of identification with the organizational culture; and below-market wages and benefits.

Organizations that are unable to retain their employees lead them to believe that they are not concerned with serving their interests. This causes a very negative impression on the market, which makes it difficult to attract talent. Besides, there is the financial impact of high turnover (Purohit, 2016). To replace a professional, besides bearing the costs of termination, the company must deal with extra investments (Kumar & Mathimaran 2017). This includes the opening of a new selection process and the onboarding of the new contractor. One cannot forget the indirect losses as well. While the team is lacking, their productivity decreases. Thus, the company will be spending more and generating fewer results, which goes against the goals of any organization. People's relationship with work has changed a lot in recent years. Today, professionals look for jobs with which they identify, feel part of something and can fight for a purpose (Purohit, 2016). For this to happen, the organizational culture must be very well developed. When turnover is high, strengthening culture is a much more difficult mission. Without this, the company is left with no identity, which makes it difficult to create a sense of belonging, purpose and a positive reputation for the brand.

Most of the past studies have focused on establishing the causes of employee turnover, and have established its impact is disastrous to the organization (Kumar & Mathimaran 2017). Therefore, the attraction and retention of new employees is increasingly becoming challenging in many organizations. On one hand, there is the issue of diversity of job roles required, while on the other hand, there is a spectrum of new methods of job attractions available (Mohr 2017). As such, the recruitment of new staff members is becoming more personalized, strategic, and targeted than ever for firms (Kumar & Mathimaran 2017). Hence, the overarching challenge that most firms are facing is finding and attracting new employees that will remain in the organization for long and contribute towards achieving success in the market.

A variety of systems by the human resources management (HRM) such as training and development, compensation management, and salary planning have been adopted to attract and retain the most competent employees. When viewed through the lens of generations, the older generation (those above 50 years) was mostly motivated by prospects of pay increase and promise of pension after retiring (Yu, Liu & Ren 2019). Undeniably, most of the staff workers that fall under the category of 'Silent Generation' have all quit working, and the 'baby boomers' (55-74 years) are nearing the retirement age (Cohen, Blake, and Goodman 2016). Thus, the contemporary job market trend, which is the future of the workforce, is composed of Generation Z (25 years today) who are in the cohort of individuals born in the year 1995-2010.

The decision by an employee to quit an organization will have undesirable outcomes for both the company and the worker. Therefore, identifying and understand predictors that lead to turnover intention will be significant in minimizing the negative impact on the overall performance of the organization (Goessling 2017). According to Goessling (2017), the most contributing factors that impact employees to leave include the worker's attitudes and potential, peers at the workplace, the configuration of management and the organization (Yu, Liu, & Ren 2019), another job prospect or pay compensation. The attitude towards work will affect the intention of generation Z to leave work if it does not align with their interests. Thus, this generation has a view that the company should treat its input as a valuable asset to the success of the organization.

Generation Z's workforce is very different from the succeeding and preceding generations. In particular, this demographic cohort comprises of individuals born between 1995 and 2010 (Dimock, 2019). Generation Z is the first generational group to have incorporated the Internet and new technologies into their learning process from childhood (Vecumniece and Leontjeva (2017). They have unique characteristics that differentiate them from previous generations: They prioritize money and a career ahead of the family or playing sports. They have an impatient character, which seeks immediate results (Goh & Jie, 2019). They have high self-confidence with a high desire for entrepreneurship. Generation Z has very different job preferences than the previous generations (Van den Bergh and Behrer, 2016). They do not like an autocratic leader and prefer jobs that will enhance their growth and development. They do not like to be controlled and they do not like a job that consumes even their free time.

Generation Z varies to the cohort group above it, which is the millennial consisting of individuals born 1981-1994 (Dimock, 2019). Although many different factors influence how the two groups we...