Where appropriate you shall introduce a company, give company data or description and site the communication issue or problem or any communication phenomenon according to the attached document; but also remember;

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Business and Economics

MGF 5921 Human Resource

Management

Retaining and developing talent

Managing Careers

Learning Objectives

 recognise the importance of the retention of key people and

HRM activities to achieve retention

 explain the challenges for the future development of human

capital

 describe the systems approach to learning and

development

 describe the methods used for identifying and developing

management and leadership talent

 explain factors that should be considered in choosing and

developing a career

2

Readings

 Kramar, R., Bartram, T., DeCieri, H., Noe, R., Hollenbeck, J., Gerhart, B., and Wright, P. (2014). Human resource management in Australia: strategy, people, performance (5th

ed.). North Ryde, N.S.W: McGraw Hill Australia. Chapters 11, 12 & 17.

 Holland, P., Sheehan, C., & DeCieri, H. (2007). Attracting and retaining talent: Exploring

human resources development trends in Australia. Human Resource Development

International, Vol 10, No 3, pp. 247-262.

OR

 Hurst, J. & Good, L. (2009), Generation Y and career choice: The impact of retail career perceptions, expectations and entitlement perceptions, Career development international,

vol. 14, no. 6, pp. 570-593.

OR

 Jones, J., Whitaker, M., Seet, P. and Parkin, J. (2012). Talent management in practice in

Australia: individualistic or strategic? An exploratory study. Asia Pacific Journal of Human Resources, Vol 50, No: 4, 399-420.

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Retention of HRs Development of HRs

Learning and

Career development strategies

and processes

Horizontal integration

V e rtic

a l in

te g

ra tio

n

Simplified SHRM

Model External environment inc.

Industrial relations and

Employment legislation

Firm’s strategic planning

process

Strategic choice

HRM Strategy leading to

HR plans and processes

Induction & Orientation

Human Resource Development &

Organisational

Learning

Training & Development

Careers

Life Long Learning

Attraction and Selection

We often hear that there is a “war to

develop talent” or a “talent battle ground”

“As businesses struggle to fill critical positions……and as the

requirements for leadership pipeline change rapidly, companies are

putting renewed focus on building capabilities don’t just finding them. The

“war for talent” is shifting and is becoming the “war to develop talent”

(Deloitte, 2013: 45).

“ CEOs see that there are serious talent management challenges ahead.

93% say that they recognise the need to change their strategy for

attracting and retaining talent. But an enormous 61% have not yet taken

the first step” (PWC, 2014: 5)

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The problem of retention

 A Hay Group study (2013) found that

– 25% of employees plan to leave their current job within 2 years

– 50% intend to leave within 5 years

 To quote the study:

“When you consider the amount of money that businesses are currently investing in trying to attract and retain their talent, in addition to the cost

of replacing an employee, which is estimated to range from 1.5 to 2.5

times their annual salary this high-level turnover represents a real issue

for businesses world-wide.”

 Now this is even more urgent as scarcity pushes wage costs up.

6

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“Talent” and the “War for Talent”

 What is “talent”?

– Can we come up with a definition

 What is “talent management”

– Another name for HRM?

– Developing “pools” of talent

• Developing groups of employees with ‘broad and general competencies that fit a range of jobs’ in the organisation (Jones et al 2012: 401)

– Focus on individual “stars” ie high potential, high performing individuals;

– Focus on the organisations human capital and HRM systems and

practices to manage it (Jones et al 2012)

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See reading by Jones, Whitaker, Seet and Parkin 2012

Retention and turnover

 Retention

– Activities designed by organisations to

retain (ie prevent from leaving) skilled

employees. Includes succession planning

 Voluntary turnover

– Employees choose to leave

– Means that the organisation has failed to

retain them

– May be a function of job withdrawal due to

dissatisfaction with work (see p 588)

 Involuntary turnover

– Organisation chooses to terminate

employee

– Employee would prefer to stay

8

Latest trends on retention of employees

 PWC CEO Survey 2015 – the importance

of diversity

http://www.pwc.com/gx/en/ceo-

survey/2015/key-findings/diversity.jhtml

9 http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml

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Some more definitions relating to

retention and employee development

 Human Resource Development –Strategic alignment between an organisations’ business strategy and HRM plans and strategies, particularly training, learning,

development and education.

–Assumes that people and organisations are continuous learners

 Training –Short term orientation

–Job related skills and competencies

 Development –Long term orientation

–Formal and informal programs/experiences eg mentoring

–Relates to career development, succession planning, performance

feedback

 Learning –Ongoing organisational process (organisational learning) that leads

to change (individuals learn new behaviours)

Some theory relating to retention and development.

 Resource Based View

– Employees are valuable internal resources, Training &

Development enhances this so that the VRIO model leads to

competitive advantage

– Invest in/develop employees to retain them and ensure they are

engaged and motivated

 Psychological Contract (Rousseau 2000)

– Individuals’ beliefs in a mutual obligation between themselves and their employer/supervisor. If this is breached then turnover,

absenteeism, lack of engagement may result

 Hurst and Good (2009)

– This may predict graduates’exploration of different career alternatives and benefit companies’recruitment efforts.

 Holland et al (2007) – importance of developing talent to retain and

motivate them

 Jones et al (2012) – questions notions of talent management and

focus on individual talent rather than a more strategic approach

Top five retention factors (Nankervis et al

2014: 290)

 Survey of Australian workers in 2012 found the

following 5 retention factors

– Flexible work arrangements (work design)

– Interesting and challenging work (work design)

– Good manager/supervisor

(recruitment/training)

– Reasonable pay/salary

(remuneration/rewards)

– Autonomy and empowerment (work design)

12

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Talent Retention (retention levers)

 How to retain employees may depend on what they value and what

motivates them at work and their views about careers

– Baby Boomers:

• Motivated by financial security and responsibility

• Career concerns are related to reputation and tradition

• Prefer formal training

• Retention best managed using recruitment and supervision

– Gen Ys

• Motivated by job variety and creativity

• Career concerns related to experience and perceptions

• Prefer interactive/multimodal

• Retention best managed by innovating and empowering

(see page 289 Nankervis et al 2014)

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Retention and development are important

because…  Need talented people to fill gaps

 Talented people get poached or leave which leads

to high turnover costs

 Technology and innovation require continuous

learning

 Ageing workers demand longer careers, Gen Ys

and Xers face long careers and life long learning

 Development linked to meaningful work ie

engagement, motivation and productivity

Delloitte 2013, 46. 14

Training and development

 Training and development can address job dissatisfaction, reduce

voluntary turnover, prevent the need for involuntary turnover

 Use training and development practices to align individual goals with

corporate goals. Enhances:

– Job involvement

– Job satisfaction

– Organisational commitment

– Job enrichment

– Addresses role conflict or overload

 Supports work motivation and meeting employee needs

15 See page 588-594 of your text

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Gen Ys think development is important

(see also Hurst and Good)

 “Among university students, the five most organisational attributes are “invest heavily in the training and development of employees” “care about their employees as individuals” “clear opportunities for long-term career progression” “variety in daily work” and “dynamic, forward- looking approach to their business”’ (Terjesen, Vinnicombe & Freeman, 2007:504)

Example from KFC

 Employees join the company as young casual

employees

 Working at KFC viewed as a “dead end job” and lacking development and career possibilities

 KFC have developed

– Graduate Leadership program which provides a

clear career path

– In house MBA for managers

– Education assistance program

“For us, in the way we run our restaurants, cutting back on

development is disastrous,” he said. “In order to run a successful business you simply need people to develop and you need to be

able to staff the future business appropriately. If you can’t do that, you’ll suffer a lot of long-term difficulty” (Chief HR Manager KFC).

17 http://www.hcamag.com/

Also findings from Hurst and Good (2009:

588)  Attraction and retention strategies for Gen

Ys

– Focus on developing employability via

training and development

– Challenging work and task variety

(also development focused)

– Continuous performance feedback

and instant gratification via perks and

bonuses

– Flexible work environment

– Total rewards not just pay

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Tools for retention: Training and

development

 The Hay study highlights the importance of training

and development

– Enable employees (allow them to do their jobs

well by resourcing them)

– Ensure adequate access to training (so they

can do their jobs well)

– Have regular conversations about employee

performance and provide feedback

– Focus on developing employees

19

Training and developing at Deloitte

http://www.youtube.com/watch?v=O3aOXEjHysM

What do Deloittes offer their

employees? Why do they do this?

20

Training

 Develops workforce skills.

 Job focused and short term

 Addresses constant changes eg changes in technology, regulation etc

 Many firms have well developed training systems (see page 377) to

ensure quality of work outcomes/services

21

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Approaches to training and learning

 Non-managerial staff

– On-the-job learning

– Classroom methods

– E-Learning

– Simulations

– Apprenticeships/

traineeships

– Certificate courses

 Managers and supervisors

– On-the-job experience

• Coaching, mentoring,

shadowing

– Conferences & seminars

– Experiences

– Formal education

See pages 302-308

 Managers and supervisors

– On-the-job experience

• Coaching, mentoring,

shadowing

– Conferences & seminars

– Experiences

– Formal education

Training and development at McDonalds  Formal training

– McDonalds is a ‘Registered Training Organisation’

– Spends $40m per year on

training frontline staff and

career development

 Global learning

– Learn from McDonalds’ best practice in other parts of the

world

 Succession planning

– Bringing crew up through the

ranks

– 80% of restaurant managers

started as crew

http://mcdonalds.com.au/#/careers

Employee development

 Formal education

 Assessment

 Job experiences

 Interpersonal relationships

– Mentoring and coaching

 Career support

systems

– Mentoring

– Coaching

– Career

management

systems

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Employee (career) development

 Future and holistic

– Look at future needs and aspirations

– Focus on work & non-work roles

 Systematic approach

– Determine individual and organisational needs

– Career development plans and programmes

– Succession planning

Career advancement of indigenous

employees

 Report for Victorian Public Sector organisations found

– Need for govt. to proactively increase access to and participation

in professional development for indigenous employees through

• Formal mentoring, coaching and job shadowing

• Secondment opportunities

• Peer mentoring

• Recognition of high performing staff

• Enhance cultural safety

• Share best practice.

http://www.pwc.com.au/industry/government/publications/indigenous-career-advancement.htm 26

Careers: some theory

 Psychological contract

– The expectations that employers and employees have of each other.

 Psychological success

– self actualisation

– the feeling of pride and accomplishment that comes from achieving life goals.

 Diversity of career

needs

 Succession of

unrelated jobs

 Growth in technical

expertise

 Value flexibility and

autonomy

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Careers and younger workers……

 “It’s a very Generation Y thing to say, but I think that having the flexibility to change the direction of your career from within

a company is very important,” says Dunlop. “This may involve training in a new specialty, or working in a different

country. What is important is that your career trajectory doesn’t appear to be fixed from the outset.”

http://www.humanresourcesmagazine.com.au/articles/F0/0C0670F0.asp?Type=60&Category=880

See 314-320 of your text

Careers: key concepts

 Career

– Series of work-related experiences

 Career development

– Training, experiences, activities and tasks

 Career planning

– Deliberate process  Career management

– Organisational activities to support and facilitate career progress

See pages 313-320 of your text

 Career planning (employee centred)

– What are your goals and aspirations?

– 3 years? 5 years?

 Career management (organisation centred). Responsibilities and benefits on both employees and employers

– Motivation and engagement through promotion

– Succession planning

Retention and

Development

Horizontal integration

Link between training and

development and other key

HRM Activities

HR Planning

Reward Management

Job Analysis

Competency profiling

Attraction

Recruitment & Selection

Performance

Management

& Appraisal

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Summary

 Increasing competition, accelerating change and relentless restructuring have made career planning and development critical for both organisations and employees.

 Effective career planning is essential for employees if they are to fully achieve their career objectives.

 Organisations, in turn, must realise a better match between employee career aspirations and job opportunities to obtain the supply of qualified human resources needed to achieve strategic organisational objectives.