Nowadays, there are different challenges for the financial company is to retain the valuable and talented workforces. The management can control the issue of workforces to prevent from quitting the company within no time to higher extent. However, it cannot put complete full stop on it. This essay discusses the key challenges in attracting and retaining a workforce in the financial sector. In this week, different weeks discussion is used such as week 5 i.e. recruitment and selection, week 6 i.e. employee relations challenges, week 8 i.e. performance management, week 10 i.e. motivation, rewards,and compensation, and week 11 i.e. employee turnover and retention.
The key challenge of training and developmentis the failure of attracting talented candidates as it could create difficulty in retaining and attracting the workforce in the financial sector. In this way, the candidate driven market could be used in which candidates are approached by different recruiters. It becomes very complex for recruiters to influence talented candidates. The top applicants can try to pitch and may not be around while a company decides for extending the offer after different weeks of interviews (Ibidunn, Osibanjo, Adeniji, Salau, &Falola, 2015). In addition, delay in the hiring procedure could create an issue in recruitment procedure thereby it may lose the top talent. Declining time to hire become a complex situation as a financial institution is juggling with the high amount of candidates at once as well as conducting interviews may take a high amount of time to set up (Burns, et. al., 2014).
Lack of understanding between the hiring manager and a recruiter is becoming key challenges of training and development in retaining workforces in the financial sector. For instance, incompetency for addressing the feasible skills develops in the prospective applicants and choosing the best method to source the right talent (Syed, & Kramar, 2017). Apart from this, retaining the millennials in the employees for higher time period could be challenging for a company. Millennials are creating to dominate the work bubble as the baby boomers initiate to retire (Bussin, & Van Rooy, 2014).The weird things regarding millennials are that they want technology and tend to favor their personal requirements more than that of the company they perform for. In such a manner, the company can do regular feedback as well as open communication. The challenge for the recruiters is that these Millennials has a tendency for performing the job-hopping that may generate workload as they have to look for applicants for the same position more regularly.
Incompetency to use data effectively is key challenges of training and development in attracting and retaining a workforce in the financial sector (Terera, &Ngirande, 2014). There are a high amount of recruiters who are proficient in practicing the technology technique to their benefits, however, they do not have the competency to significantly practice the information. There is dominant significance for recruiters to be competent to employ the information for making better recruitment decisions and improve their procedures. However, there are hardly occurrences.
Complexity in balancing the speed of hire together with the quality of hire is another challenge of training and development for attracting and retaining a workforce in the financial sector (Connell, Nankervis, & Burgess, 2015). It is assessed that recruiters may face one of the biggestissues while it comes to balancing the speed of hire as well as the quality of hire. The company can recruit a candidate as soon as possible as there is always an urge to get the best talent possible that frequently take time. Gaining the speed of recruitment is one of complex task for the recruiters (Wallace, Lings, Cameron, & Sheldon, 2014).
Lack of efficiency at the time of recruitment procedure is key challenges of training and development in attracting and retaining a workforce in the financial sector (Cappelli, 2015). Furthermore, tasks such as sourcing potentially talented applicants and reviewing their resumes can take maximum times. There are the highamount of recruiters who invest time on these managerial tasks. It could be utilized in sending applicants for final selection to the client. It may lead the recruiters to gain use of applicant tracking system (Haider, et. al., 2015).
Failure to offer superlative applicant experience is key challenges of training and development in attracting and retaining a workforce in the financial sector. When recruiters are incapable to offer the superlative applicant experience at the time of hiring procedure then it may generate a bad impact on the overall corporate branding of the company. Recruiters should end the hiring procedure adequately by applicants, even if they are disallowing them. When a company is not performing that then it would have anunfavorable impact on generating a talent pool for the prospect (Hejase, Hejase, Mikdashi, &Bazeih, 2016).
Legal issues are key employee relation challenges in attracting and retaining a workforce in the financial sector. Employee relations concern originated from different concepts of employment and labor regulation. There are certain legal concerns like discrimination, workplace harassment, and equal opportunity are among the workforce relations concerns that an employer must face. In addition, employers are required to research the discrimination and harassment allegation within an organization and offer possible remedies for the situation (McGinnis Johnson, & Ng, 2016). Employers should reasonably accommodate the employees who require modification of job responsibilities due to pregnancy and disability.This regulation governs the legal aspect of maintaining employee relations concerns but is not limited to the Civil Rights Act, the Fair Labor Standards Act and Disabilities Act (Laudon, &Laudon, 2016).
Conflict management is the key challenge of employee relations in attracting and retaining a workforce in the financial sector. Conflicts may create at the workplace between employees and managers. When the issue creates then managers should execute the specific process for resolution when keeping optimal working liaisons (Festing, & Schäfer, 2014). These process permits workforces to raise their concerns and have the concern of resolving internally. Conflict management supports employers for documenting the condition in around of specific issues and how it would be dealt. It would support employers when a similar situation arises (Ahmad, Sulaman Tariqb, & Hussain, 2015).
Attendance is another challenge of employee relation that may affect the employee’s retention in the financial sector. A record of strong attendance and observances to their schedule is the accountability of all workforces and it is significant of the bottom line of employers. When a workforce is delayed, messes task and does not stay to their schedule then it would negatively influence the supervisors and co-workers (Robineau, Ohana, & Swaton, 2015). Along with this, employers regulate their attendance via specified attendance regulation. Moreover, employers regulate attendance via specified attendance regulation. An attendance regulation specifies the delay and absence as well as outlines the results for an unexcused period of performance (Mukumba, 2014).
Disciplinary action is a key challenge of employee relation in attracting and retaining a workforce in the financial sector. When a workforce engages in detrimental deeds then employers should act to improve their attitude. Disciplinary action is intended to prevent and enhance poor performance and deal with infeasible attitude. Furthermore, employers execute discipline gradually as per type and frequency regarding policy violation (Sidani, & Al Ariss, 2014). For instance, a manager may provide a verbal warning to employees for future without valid justification. In next time, whenemployees have an unexcused delay then manager may provide the employees with a written warning (Syed, & Kramar, 2017). For example, an employer may issue of final written warning before terminating the workforces. Through this process, an employer may document the violation of policy and encourages the workforces to engage in similar behavior (Elegbe, 2016).
The performance management challenge in the company has a different dimension in the business environment of the current situation. It may create complexities in attracting and retaining a workforce in the financial sector. There is a need to generate focused initiatives for overcoming the challenges but it cannot be considered in silver bullet approach (Barriball, et. al., 2015). In different cases, remuneration schemes are driving the performance system that generates a number of long term consequences in culture as well as organizational behavior. In different cases, senior management may focus on scorecard management for holding the people to make responsible that the development of scorecard is related to business focus area rather an amount of deliverables projects as well as tasks (Kakar, Raziq, & Khan, 2017).
The key challenge is the lack of alignment because of the different organizational procedure. This is being generated in isolation. The link amid budgeting, strategy development, as well as operational planning is developed via a different set of people and different structures being practiced (Cooke, Saini, & Wang, 2014). There is a lack of alignment amid performance management system and individual performance, the performance of the department, and delivery of an organization and so that all systems could be related to financial dimension(Elegbe, 2016).
Lack of measurements is a key challenge of performance management in attracting and retaining the employees in the financial sector. The second challenge may happen during the different level of a company in that poor measures are built but, in many situations, targets are developed. In other condition, no data could be gathered or is maintained as evidence for tracking the performance(Ahmad, SulamanTariqb, &Hussain, 2015).
Leadership and management commitment is key challenges of performance management that creates difficulty for retaining and attracting the employees in the financial sector. The management and leadership have a wider impact on combining and relating a management system for offering an inclusive performance management system. The knowledge and commitment of leadership, as well as management need, is essential to attain the workplace performance system. It is essential forthe success of performance(Elegbe, 2016).
Managing the performance system is a key challenge of performance management in retaining and attracting the employees in the financial sector. Managing a performance system in the company requires a disciplined structure. There is a need to work off one master plan categorized into appropriate parts and areas of accountabilities (Syed, & Kramar, 2017). The accountability of management at different level requires comprehending the measurement development, understanding the contracting and appraisal procedure effectively and applies it constantly. Management requires appreciating the performance management as well as recorded at a certain time via appraisals and reviews (Robineau, Ohana, &Swaton, 2015).
Managing poor performance is the key challenge of performance management in attracting and retaining the employees in the financial sector. The management of poor performance is a reactive deed, however in many circumstances; it can be delayed and hence turns into argument could be complex for making an appropriate (Syed, & Kramar, 2017). Another reason for poor performance cannot be organized on time due to inadequate measurement as well as gathering the required evidence as well as measurement information (Mukumba, 2014).
Inadequate sources could create an issue for the organization to inspire their employees. Workforces feel unappreciated because management does not offer and essential assets to accomplish targeted productivity. Moreover, the lack of organization infrastructure could decline the motivation level of employees. In addition, it is examined that offering the essential techniques to accomplish job tasks demonstrate workforces that ownership and top team comprehend the nature of such tasks and how it takes to accomplish them up to standards of organization(Hejase, Hejase, Mikdashi, & Bazeih, 2016).
Lack of workforces could be imperative for the attainment of the organizational task. Moreover, it is evaluated that lack of employee rewards and pay could directly impact on the organizational performance. The lack of a reward structure, entailing the sales bonus and monthly identification could create the motivational problem in the organization as workforces believe the top management takes high employee’s efficiency for granted (Wallace, Lings, Cameron, & Sheldon, 2014). It can occur if workforces believe that their pay scale is below as compared to their performance then it could demotivate to the employees. In addition, it is examined that discouraged employees have reduced inspiration and lower output to recompense for the apparent lack in the competitive salary (Ahmad, SulamanTariqb, & Hussain, 2015).
A workforce could feel more inspired and accomplish a higher level of growth if a management team shows their genuine interest in their opinion towards the business. It enhances the workforce’s mental ownership of the firm and inspires her to support and support to productivity by job performance. In addition, it is also evaluated that organization who does give value to the opinion and views of the employees then it could decline the motivation level of workforces as it would directly impact on the overall performance of the organization. A workforce can do hard work at the working place that could be a negative impact on organizational performance (Haider, et. al., 2015).
Compensation Packages is the key challenge of employee turnover and retention that may create an issue in attracting and retaining the employees in the financial sector. Workforces may seek equitable compensation for their performance. Consequently, the initial step that a financial company may use for retaining the workforces is to improve the packages of compensation that typically involve insurance, retirement program, salaries, and employee leave (Robineau, Ohana, & Swaton, 2015). For instance, an employer can compensate a higher part of health insurance premium to employees and initiates a new bonus program as per the performance. A financial institution may make sure its benefits, as well as compensation packages, are in relation with those of beating the company in financing industry(Wallace, Lings, Cameron, & Sheldon, 2014).
Hygiene Factors are also another challenge for employee retention. Employees of all ages and all income brackets may seek job satisfaction. Hygiene factors are those substances that prevent from the dissatisfaction of employees. For retaining the workforces, a company can revise the work environment of employees (Sidani, & Al Ariss, 2014). The policies of the company and specific physical aspect of jobs may limit the emotional and physical dissatisfaction that employees may experience at the workplace. For instance, a company can revise the shift of schedule as well as install new equipment in the company for creating a less stressful environment within an organization. A company can initiate environmental safeguard as well as associate audit program in order to save the health of its workforces (Mukumba, 2014).
Recognition is another challenge in attracting and retaining employees in the workplace. An individual who feels unrewarding may seek to get credit at the workplace. Consequently, an employee recognition program can significantly influence the ability of the finance sector to retain the performers at the top within an organization. In a company, there may be a lack of resources for targeting all workforces with recognition initiatives (Wallace, Lings, Cameron, & Sheldon, 2014). Consequently, risk analysis is practiced for addressing top workforces who have higher retention risk. A corporation may use this assessment for considering promotion and fast track initiatives with these workforces in mind. There are certain strategies for retaining the employees such as award program and employees of the month (Sidani, & Al Ariss, 2014).
Self-development is the key challenge of employee retention that may create difficulties in attracting employees in the financial sector. Workforces frequently may look towards the opportunity for creating their talents and skills for personal satisfaction and to gain skilled opportunity. Consequently, the implementation of a self-development program is significant techniques for gaining the retention level of employees. Workforces could be attracted by funded education programs, seminars, conferences, in-house, and education program (Robineau, Ohana, &Swaton, 2015).
Conclusion
From the above interpretation, it can be concluded that there are different challenges faced by the financial sector in attracting and retaining a workforce. These challenges are recruitment and selection, employee relations challenges, performance management, motivation, rewards and compensation employee turnover,and retention. It can be concluded that there are a high amount of recruiters who waste their valuable time by functioning on an insignificant and avoidable administrative task that can result in replication of hard work. It can be concluded that there are some legal issues such as discrimination, workplace harassment, and equal opportunity between the workforces that an employer can face at the workplace. It can be summarized that the management and leadership have wider impact on combining the management system for offering an inclusive performance management system.
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