Career Development and Remuneration Essay
Utiliscan’s annual growth rate of 15- 20%, suggests that the company will require additional staff to cope with increased demand for various products. The labor market is currently experiencing a shortage of skilled staff that can manage operations at the firm and attracting new hires will necessitate improving the terms of reference. During the survey, 89% of those interviewed claimed that the firm did not offer any opportunities for career growth.
87% of them complained that there was no established path for getting promoted to the next level and that, salary increases and job promotions are made on the basis of favoritism and cronyism. These issues discourage the employees and are a contributory factor to high turnover rates at the company. To remedy the situation, the company should develop a career progression path that will recognize employee efforts based on regular appraisal reports from immediate superiors (Knowdell, 1996).
Hard working employees should be given incentives to maintain their performance outcomes and be rewarded with cash prizes. This will motivate other workers to improve their performance in a bid to win the best employee award. Refresher courses and training programs for skilled staff will ensure that the skills set of all employees are
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Such a code will apply to all cadres of workers and breach of the same will invite certain sanctions. This measure will stamp out any cases of discrimination, favoritism or cronyism at the workplace and ensure that meritocracy is the determining factor for those who receive any benefits. 74% of employees interviewed said there was no relation between their performance and their pay while, 56% lamented that their benefits were below average. Utiliscan’s current remuneration structure is below the industry’s average.
This has had a negative effect on attracting new hires and retaining current employees. To retain current staff, employee benefits should be reviewed with the aim of improving the package as an incentive and strategy for retaining and attracting staff. Employees who quit to take up better paying jobs disrupt work routines and cause delays in project implementation as the search for appropriate replacements is initiated (Fisher et al. , 2005). However, the cost of interviewing and training recruits is much higher than raising wages for those currently in employment.
Man-hours are lost as new employees adjust to the system and get acclimatized to working in a new firm. To avoid this scenario, the management should settle on a balance between increasing salaries and improving staff benefits. This will ensure that employees are satisfied with the terms of service and opt to stay with the firm instead of looking for better employers. Owing to the tight financial position of the firm, an alternative to wage increases will be to give staff stock options in lieu of pay.
With an impressive growth rate and increasing sales volumes, staff will be attracted to this incentive knowing very well that the value of the stocks will steadily rise over time (Hellriege & Slocum, 2010). In a period of five years, the stock value may more than double thus giving the staff a major windfall. Setting up a contributory pension scheme will also encourage the staff to remain at the firm. With equal contributions from the company and staff to this scheme, staff will be reluctant to leave since they have an interest in the firm’s development.
Signing performance contracts with the employees guaranteeing that their pay will be linked to performance will motivate them to work harder (Fisher et al. , 2005). Adding a rider that their jobs will not be outsourced to other investment destinations will assure them of job security and accord them peace of mind. In the final analysis, these employees will have no cause to seek employment elsewhere as their immediate and future concerns are being adequately catered for. In conclusion, the company must adopt a proactive approach in dealing with human resource management to ensure it retains and attracts the best brains in the market.
By offering financial and non-financial incentives, it will be able to meet the immediate and future needs of its employees. A thorough audit of its working conditions will reveal its staff needs and inform management of the necessary remedies to become compliant with safety regulations. In addressing these issues, the company will resolve its human resource challenges and meet the growing demand for its products with ease. References Bryson, J. (2004) Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement, 3rd Edition.
Jossey-Bass Fisher, C. , Schoenfeldt, L. & Shaw, J. (2005) Human Resource Management. South-Western College Pub; 6 edition Hellriege, D. & Slocum, J. (2010) Organizational Behavior. South-Western College Kim, K. , Nofsinger, J. & Mohr, D. (2009) Corporate Governance. 3rd Edition. Prentice Hall Knowdell, R. (1996) Building a Career Development Program: Nine Steps for Effective Implementation. Davies-Black Publishing; 1st edition Ridley, J. (1994) Safety at Work. Butterworth-Heinemann; 4th edition