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In today’s time organization uses digitalization across the sectors of businesses for recruiting and retaining employees. The financial industry needs more technical expertise on the payroll in subsequent years. This will support the leaders to manage change more effectively. This industry has many challenges to attracting and retaining the best people that are essential for successfully inventing and competing in a digital environment. Financial organization is fighting for skilled people due to traditional segment rivals. Currently, the financial segment is facing many challenges regarding retaining and inviting a competent and skilled workforce (Mishra, 2012). This is also right that management can handle the issue of employees. Many measurement tools are very useful to solve the issues of employees. The following discussion will cover the challenges held by the financial sector regarding recruiting and retaining a workforce. Many challenges are discussed like performance management, motivation, compensation and reward, challenges of worker relation, and worker revenue as well as retaining.
Human resource management utilities, analysis of job and design of the job are the most important concept that increases the level of performance of workers and also facilitate employees to achieve professional objectives and goals. A large number of financial organizations in Australia are not using diverse motivational approaches to design the employee’s jobs (Bedi & Kharbanda, 2014). There is a gap in the job redesign and employee performance in organization success. The level of job satisfaction in the financial sector of Australia is very poor as the satisfaction of employees' jobs has reduced due to a lack of redesigning jobs. The change management process in the Australian financial sector is very weak as not capable enough to deliver the organizational requirement that supports employees within the organization. The diverse areas of HRM functions are not used to maintain the good performance level of employees. Recruitment and selection function is the main rehearsed of human resource management that has an important relationship with a highly involved organization workforce. Many of the results have found that retaining productivity at the organizational level in the economic environment of business is the main task for HRM (Goncharuk, 2016). There is no focus on varied features of the vacancy like internal staffing, external staffing, and high pay approaches by HR management of a financial organization.
The human resource management of the Australian financial industry for recruiting and retaining employees not considered recruitment diverse source, public employment assistance, private employment assistance, internet recruitment, and advertisement institutions as these carry good employees for organizations. There are many financial industries not focuses on the selection criteria like interpersonal skills, knowledge at the financial level, skills of leadership, competency of teamwork, the experience of work, and emotional intelligence. Communiqué skills of employees and financial information are the main area that the financial sector did not evaluate in recruiting employees in the organization. Many of the financial industries in Australia did not follow the recruitment criterion for recruiting workers in the business. Cultural compatibility has not emerged as a principal theme to consist of skilled employees in the dominant workforce. The management of financial industries thinks that recruiting at culturally misfit employees can generate many issues to increase the productivity of an organization (Verma, et al., 2017).
Lack of participation of culturally diverse workers becomes a threat to the growth of an organization in the multiracial society. This is very important for the human resource management of Australian financial organizations to focus on employee recruitment from a different culture to increase the skills and capabilities of the workforce. Australian financial industry should modify its attitudes of recruiting employees that fit the culture and develop the abilities of the employee to reduce employee revenue rate to a great extent. The criteria of the financial industry of Australia for recruiting and retaining employees is not aligned with the objectives and goals of the organization to curb employee turnover issue. The financial industry of Australia has not sufficient programs to focus on individual growth and employee career (Goyal & Prakash, 2011).
There is no procedure of assessment of the main function of HRM that needs to take for increasing employee’s knowledge domain of advanced financial system and diverse emerging technologies. Employee's ineffective assessment training needs can cause an issue of skill shortage for financial organizations (Vutsengwa & Ngugi, 2013). There is undeveloped strategic about efficient communication and diversity management in pre and pose merger situations. HR of the financial industry does not take effective responsibility and role to improve employees associated with the organization. The industry of finance has found a shortage of mid-career candidates by losing the workforce that dejected the economic downturn. Mid-career candidate shortage provides a clear sign that the industry is feeling the effects of the recession of 2007. A large number of population forego to work in a leading organization as the culture is not good. In today's time culture matters from the perspective of employee and employer. The rate of unemployment has increased. Employers in the nation are struggling to find skilled competent. A lack of skilled candidates is a very serious problem in the financial industry. Many new regulations like GDPR and MI FID ii has increased the demand for staff by the skills and knowledge of work in the new regulatory requirements (Saltillo, 2013).
There is a large number of failures to attract talented applicants in the financial sector. This is also known as the top challenge for organizations. To attract more expert employees and competent employee's organizations can use a candidate-driven market as support to more candidates to approach (Karadag, 2015). This is difficult for a recruiter to effect the competent workforce. The delay in the procedure of hiring also provides a task for a recruiter. This generates the possibility that an organization can lose talented applicants. Lack of appropriate understanding between hiring executives and recruiters is also the main challenge for the development and training department to retain staff in the financial segment. Retaining talented employees is also a very big challenge as only 10 percent plan to work for a long time. This highlights that 90 percent of candidates switch to work. There is a large number of financial sector employing many strategies of retention to retain the workers for a long time (Aduda & Kalunda, 2012).
The inconsistency of data use efficiently is the main contest for training and enlargement of the skilled staff in the financial segment. Lack of defect inefficiency in recruitment is also a very big challenge for the financial segment. One of the important aspects known as IT can be developed by directing the candidates for the final assortment. It can also be increased by sending the candidates for final selection. This will support to a recruiter to make full use of the application by the tracking system. Many times organizations fail to provide the superlative applicative knowledge that is challenging for development and training in the financial segment. This is right that when recruit fails to deliver the best experience to the applicant that leads to a negative impact on the organization. At this time organization should finish the procedure of hiring as lead to a negative effect on the entire image of the organization. Achieving the speed of staffing for the department of hiring is also a critical challenge for the recruiter (Mwobobia, 2016).
The performance managing challenges in the organization has many dimension that generates the problem. This also generates a complexity to retain the staff in the financial sector. There is a gape of effective employees within the organization that focuses on the initiatives for overcoming the barriers. This has been seen as a scheme of remuneration drive the structure of performance and assist in to generate many long-term moments in culture. Management at a senior level can concentrate on the scorecard to delivering the responsibility to people regarding the enlargement of the balance record. There are many procedures within the organization like lack of alignment is also known as a main challenge in the financial sector (Nidhi, 2016).
The lack of alignment in department performances individual performance, and performance management method and organization delivery is related to a financial element. Lack of measurement is also a very important key challenge in retaining and recruiting of workforces in the financial sector. This challenge can be due because of the poor measurement of organizations. The effective commitment of leadership and management is also a major challenge in performance supervision that generates difficulty to retain and attract employees in the financial sector. This is right that commitment and knowledge of leadership and management are important to attain the workstation performance segment. Managing the system of performance is a key task of performance management to attract and retain employees in the financial segment. The performance management method of an organization needs a proper structure. Insufficient management of bad and poor enactment is also realized as a challenge for the performance in the economic sector (Bose, 2013).
Sources deficiency generate issue for the organizations to inspire the employees. Employees within the organization feel demotivated as management not offer anything to achieve the target productively. Poor infrastructure also increases in a decrement in employee’s motivation. Discrimination is the system of employee’s payment that leads to demotivation between employees. A workforce that gets a lower fee scale parallel to its performance generates demotivation among the employees. This is right that demotivated employees reduced their productivity and reduced inspiration towards the organization. Organizations that not show proper interest in the employee's decisions lead to the negative performance of the business. The lack of prize and recognition structure, monthly documentation, and not entailing bonus of sales decrease the motivation of employees within the organization. This has been realized that employees feel demotivated if their opinions and decisions are not given proper value in the business (Vallejo, Bravo, & Pina, 2011).
The compensation package is also one of the major challenges in the economic sector. This is the greatest concern in retaining the workforces for a long period in the financial segment. Improvement in the financial sector is a primary step that the financial segment can adopt to attract and retain talented staff in the business. The organization can assist its insurance, programs of retirement, salaries, and leaves of employees. The organization can also start a new program of bonus according to the employee's performance. Many hygiene factors generate a challenge for workers’ retention. Employees from the entire job range and ages can pursue the satisfaction of the job. To retain workers for a long time, an organization can develop the environment of work for staff that works for the organization. The physical aspects and emotional dissatisfaction also affect the success of the organization. The organization can revise the period of its program and install better equipment within the organization to generate a flexible environment of work (Onochie & Eyakwanor, 2015).
Legal issues are challenges for employee retention and the attraction of the workforce in the economic sector. This kind of issue is originating from many concepts of labor and employment regulation. Many legal issues are harassment in the workplace, discrimination, and equal opportunities within the relations of the workforce. There is a lack of proper accommodation of employees that need the changes in responsibilities of work due to the prenatal period and disability. These kinds of legal issues are not helpful to maintain the concern in employee relations. These are not certified by the legal aspects of the organization that lead to a major concern of employee retention for a long time. Management of conflicts is also known as a major challenge of worker relation in holding and inviting employees in the financial segment. This is right that issues can arise between employees and managers as management of organization not take the effective procedure to solve the issue. This increases the area of concern more (Emine, 2012).
Attendance is also the main challenge in the relation of employees that affect the preservation of employees in the financial segment. Observance of employee’s agenda and record of the presence of employees is the accountability for each staff. This is essential to the employee's bottom line. This has been looked that employee becomes late from agenda, it affects negatively the supervisors and co-workers. Employers regulate attendance by specified regulation of attendance. This is also known as the disciplinary task for the financial sector to retain and attract employees. Employees get involved in the actions of determination as the owners need to increase attitude. This action seeks to preclude poor performance and convey the employees on the right track. Employers deliver the warning to employees for the prospect without any justification (Nankervis, Prikshat, & Cameron, 2017).
The gape of skill in the industry of financing is regularly widening. An employee in the organization is established by orientation and onboarding. This is a continuous process to make and established an employee from the starting of the day first. The lack of orientation and onboarding lead to employee dissatisfaction. Increased globalization in financial services has generated many economic difficulties and posed important challenges for human resource operations. The organization is dealing with fallout including damaged corporate reputations and shrinking workforce and cost reduction that spurred by decreasing demand for services like mortgage and small business lending. This kind of factor affects recruiting and staff development efforts (Dhakal, Burgess, Cameron, & Nankervis, 201).
The industry of finance many challenges regarding recruiting and retaining employees that consist of a poor image as a career destination and an aging workforce. Qualified graduates look beyond the money and choose the area of work and focused on issues like organization reputation, autonomy degree and job challenges and future opportunities in the firm by consulting the hiring industry. Bad structure of the recruiting efforts of a college campus and emerging markets and to find ways to draw top talented employees. Executives in the financial industry are not more focused than their counterparts in all other industries. Many of the organization has reduced the headcount and costs of employees. This comes true to retain employees at all levels over hiring new workers. There is a lack of respondents in the financial industry as they have no plan to accelerate leadership development programs in the present as expressed and heightened interest in global diversity management (Emine, 2012).
This paper discussed that there are many challenges faced by the economic sector to attract and retain the employees. The major challenges are selection, recruitment, employee retention, motivation, performance management, reward, and compensation. This has been seen that many selectors waste time-period on the insignificant and management task. Many legal issues are associated like discrimination, harassment, and equal harassment at work that managers can face within the business. This paper also discusses that leadership and administration has a large level of impact on the organization system by proposing the wide-reaching performance management system.
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