Attraction of Skilled Workforce
In recent time, financial sector is facing several challenges related to the retaining and attracting the skilled and competent workforce. It is also true that management can control the issue of quitting the company on the side of employees (Hejase, Hejase, Mikdashi &Bazeih, 2016). By taking various measures, this issue can be removed. However, it is not fully sure that employer can completely remove this issue. In the essay, discussion is carried on the key challenges faced by financial sector related to attracting and retaining the workforce. Various challenges are being discussed such as recruitment and selection, performance management, motivation, reward and compensation, challenge of employee relation, and employee turnover as well as retention.
Failure of attracting talented candidates in the financial sector is one of the topmost challenges. In order to attract more skilled and competent employees, candidate driven market can be used due to which more candidates are approached. It is quite complex for the recruiter to influence the competent workforce. Besides this, delay in the process of hiring can also prove to be a challenge for the recruiter (Rancho, 2019). Because of this, it might possible that company lose the talented candidate. Lack of proper understanding between the recruiter and hiring manager is also one such challenge for the training and development in order to retain the workforce in financial sector. Retaining the millennial talent is also one such retaining challenge. According to the PwC report, only 10% millennial has been planning to work for the long-term. It means around 90% of the millennial does not stick to a job for too long. Therefore, the financial sector requires employing the various retention strategies in order to retain talented employees for too long. In addition to this, inconsistency to use the data’s in an effective manner is one of the challenges for training and development in retaining the skilled workforce in the financial sector. Lack or defect in efficiency during recruitment is also the key challenge for the financial sector (Cappelli, 2015). Besides this, task such as reviewing the resume of candidates and sourcing the potential and talented applicant take a huge time. There are various recruiters who waste their time on such things. IT can be improved by sending the applicants for final selection. It will also help the recruiter to make proper use of applicant tracking system. Sometimes, fails in providing the superlative applicative experience is also one of the challenges for the training and development in financial sector. It is true that whenever recruiter fails to provide the best applicant experience at the time of hiring, then it can lead to a negative impact in the overall image of the company. In order to reduce this, recruiter should end the hiring procedure properly if it is not selecting the candidate (Connell, Nankervis & Burgess, 2015). It is founded that many recruiters face the issue when it comes to balancing the speed as well as quality fire. Gaining the speed of recruitment is also such complex task for the recruiter.
Performance Management Challenges
The challenge of performance management in the company has various dimensions that can create a problem. It sometimes also creates the complexity in retaining the workforce in the financial sector. In order to overcome from this challenge, there is need to generate the focused initiative for overcoming from this challenge (Arnaboldi, Lapsley & Steccolini, 2015). It has also seen that remuneration scheme is driving the performance system that further assists in generating various long-term consequences in culture. Besides this, the senior management can also focus on the scorecard management for providing responsibility to the people regarding the development of balanced scorecard. This can help the people in telling that balance scorecard is related to the business rather than on the amount of deliverable task. Due to various procedures in the organization, lack of alignment is also one of the key challenges in the financial sector. There is lack of alignment between the performances of department, individual performance; performance management system and delivery of organization are related to the financial dimension. Lacking in the measurement proves to be a key challenge in recruitment and retainment of the employees in the financial sector (Cooke, Saini & Wang, 2014). Other key challenge can be due to the various level of the company in which poor measures are built. Management and leadership commitment is also one such challenge in the performance management that further create the difficulty in the retaining and attracting of employees in the financial sector. Leadership and management also have huge impact on relating and combining the management system for the inclusive offer to performance management system. It is true that knowledge and commitment of the management and leadership are significant in order to attain the workplace performance system. Managing the performance system is also one such key challenge of performance management in attracting and retaining the employees in the financial sector. The proper performance management system of the company requires a proper structure. Proper management of poor and bad performance is also seen as the challenge for the performance management in financial sector (Festing &Schäfer, 2014).
Deficiency in the sources can create an issue for the company in order to inspire the employees. Employees also feel demotivated when management does not offer anything for the accomplishment of targeted productivity. Besides this, the poor infrastructure can also result in decrement of the motivation of employees. Sometimes, discrimination in the pay system of employees also leads to demotivation among employees. If workforce will get the lower pay scale low as compare to their performance then it can demotivate the employees. it is true that whenever employees will be demotivated, their productivity and inspiration starts reducing. Whenever management will show the interest in the decisions of employees, workforce starts feeling inspired and achieves high level of growth in their work (Bussin & Van Rooy, 2014). It also inspires the employees to give their more to the organization. It has been seen that those organizations who do not value the decisions of the employees, it negatively affect the overall performance of the organization. The lack of reward structure, monthly identification, and entailing the sales bonus helps in a huge level in motivating the employees at workplace. It has been seen that employees can feel motivated when their decisions are given value in the organization.
Motivation and Reward Challenges
It is also one such key challenge in the financial sector. Compensation package is the greatest issue in retaining the employees for long time in financial sector. Therefore, improvement in the compensation package is the first step that a financial sector can adopt in retaining and attracting the talented workforce in the organization. It can also assist the company in their insurance, salaries, retirement program and employees leave. It can also start the new bonus program as per the performance of employees. Various hygiene factors also create the challenge for retention of employees. Employees from all the job bracket and ages can seek job satisfaction. In order to retain the employees for long time, company can improve the working environment for all the employees who are working in the organization (Elegbe, 2016). It is also seen that physical aspects, as well as emotional dissatisfaction, can be seen many times at the workplace. Due to this, company can revise the shift of its schedule and can install the new equipment in the company in order to create flexible working environment. In a company, they can be lack of resources by targeting all the employees with the recognition of initiatives. Several initiatives can be taken in order to retain the employees such as employee of the month and award program. Workforce also looks toward the opportunity in order to create the skills and talent for the personal satisfaction of employees (Haider, Rasli, Akhtar, Yusoff, Malik, Aamir & Tariq, 2015).
Legal issues are one such employee retention challenge in retaining and attracting the workforce in the financial sector. This issue originates from the various concept of labour and employment regulation. Several legal issues are workplace harassment, discrimination and equal opportunity among workforce relations. Besides this, employers are also required to properly research the harassment and discrimination allegation within the organization. Employees should also properly accommodate the employees who really require the changes in their job responsibility sue to some disability and pregnancy. These regulations govern the legal aspects that help in maintaining the employee relation concerns. However, these are not limited only to the disability act, fair labour standards act and civil right act. Management of conflicts is one also one such key challenge of employee relation in retaining and attracting the employees in the financial sector. It is true that conflicts can arise between the managers and employees. Whenever any issue arises, it is the responsibility of the manager to undertake the specific procedure in order to solve that issue. This process will help the employees to raise their area of concern in order to resolve the issues internally (Viglobal, 2018). The management of conflict supports the employer for attracting and retaining the workforce in the financial sector. Attendance is also one such key challenge in the employee relation that can also affect the retention of employee’s in the financial sector. Observance of the employee’s schedule and record of employee’s attendance is the accountability of each workforce. Besides this, it is also essential to the bottom line of the employees. It has been seen that whenever any employee gets late from their schedule, it negatively affect the co-workers and supervisors. In addition to this, employees also regulate attendance through the specified given attendance regulation. Employers also regulate the attendance of employees through the specific regulation made for attendance. In addition to this, disciplinary challenge is also one such challenge in the financial sector for retaining and attracting the employees. Whenever an employee gets engage in the deeds of detrimental then it is essential for the employers to improve their attitude. Disciplinary action seeks to prevent the poor performance and bring the person on right track. A manager can also provide the warning to employee for the future without giving any valid justification. In the next time, when an employee will provide the unexcused delay, then manager have the right to provide the written warning to that employee (Gall, 2017). By following this process, employer can also document the violation of the policy. It also encourages the workforce to engage in same behaviour.
Compensation Package Challenges
In the limelight of above discussion, it can be concluded that there are various challenges faced by the financial sector at the time of attracting and retaining the workforce. The main challenges are related to the selection, recruitment, employee relation challenge, motivation, performance management, rewards, and compensation. It is seen that there are many recruiters who waste their time by working on the avoidable management task or insignificant task. Several legal issues are also associated such as workplace harassment, discrimination, and equal harassment among the workforce that employer can face in the organization. It is also seen that leadership and management also has huge impact on the management system by offering the wide-ranging performance management system.
It has been seen that financial is facing several factors. Therefore, it is recommended to the financial sector to carry out the recruitment and selection process properly so that it can have the database of skilled employees (Zatsiorsky and Kraemer, 2006). It can also add various rewards with the performance of employees so that it can retain the employees for long time. Performance management can also help in a great way to the financial sector.
References
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in the public sector: The ultimate challenge. Financial Accountability & Management, 31(1), 1-22.
Bussin, M., & Van Rooy, D. J. (2014). Total rewards strategy for a multi-generational workforce in a financial institution. SA Journal of Human Resource Management, 12(1), 1-11.
Cappelli, P. (2015). Why we love to hate HR… and what HR can do about it. Harvard Business Review, 93(7/8), 54-61.
Connell, J., Nankervis, A., & Burgess, J. (2015). The challenges of an aging workforce: an introduction to the workforce management issues. Labour & Industry: a journal of the social and economic relations of work, 25(4), 257-264.
Cooke, F. L., Saini, D. S., & Wang, J. (2014). Talent management in China and India: A comparison of management perceptions and human resource practices. Journal of World Business, 49(2), 225-235.
Elegbe, J. A. (2016). Talent management in the developing world: Adopting a global perspective. UK: Routledge.
Festing, M., &Schäfer, L. (2014). Generational challenges to talent management: A framework for talent retention based on the psychological-contract perspective. Journal of World Business, 49(2), 262-271.
Gall, G. (2017). Labour unionism in the financial services sector: Fighting for rights and representation. United Kingdom: Routledge.
Haider, M., Rasli, A., Akhtar, C. S., Yusoff, R. B. M., Malik, O. M., Aamir, A., … & Tariq, F. (2015). The impact of human resource practices on employee retention in the telecom sector. International Journal of Economics and Financial Issues, 5(1S), 63-69.
Hejase, H. J., Hejase, A. J., Mikdashi, G., &Bazeih, Z. F. (2016). Talent Management Challenges: An Exploratory Assessment from Lebanon. International Journal of Business Management & Economic Research, 7(1).
Rancho, B. (2019). Key challenges faced by financial services HR recruitment and selection. Retrieved from: https://hrfinance.wbresearch.com/five-key-challenges-facing-financial-services-hr-recruitment-strategy-ty-u
Viglobal. (2018). Keeping up with the constant changes: attrition in the financial service industry. Retrieved from: https://www.viglobal.com/2018/08/23/keeping-up-with-the-constant-changes-attrition-in-the-financial-services-industry/
Zatsiorsky, V.M. and Kraemer, W.J. (2006). Science and practice of strength training. Human Kinetics.
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