Strategies to Reduce Employee Turnover

Today, most of the companies believed that in order to achieve and sustained effectively, human resource management (HRM) needs to be efficient. Effective HRM can be main factor for the success of an organization. In the new economy, it has become a trend of employees staying on for a short duration in any one organization, which results to many problems. Failure in managing human capital will create fatal problems to the company. Therefore, most of the organizations, both domestic companies and multinational corporations (MNCs) tend to focus more on HRM as a key of success.

1. Hiring the Right People

Hiring the right people from the start would also reduce employee turnover.… Read the rest

Employee Turnover – Meaning, Causes and Effects

In today’s highly dynamic commercial work, it is becoming a challenge for job-seekers to find jobs that best fit their personality, and for employers to hire the right people who can do the job and also integrate well into the company culture. Failure to overcome this issue can be resulted in high turnover of employees. Employee turnover is a part of normal business activity; whereby employees come and go as their life situations change. Most employers realize this and, indeed, large firms typically have entire departments devoted to the management of human resources in order to make the transition as easy as possible for both management and employee and to minimize the associated hiring and training costs.… Read the rest

Current Trends in Human Resource Management

The world of work is rapidly changing. As a part of organization,  Human Resource Management (HRM) must be prepared to deal with effects of changing world of work. For the HR people it means understanding the implications of globalization, work-force diversity, changing skill requirements, corporate downsizing, continuous improvement initiatives, re-engineering, the contingent work force, decentralized work sites and employee involvement.   Let us consider each of them one by one.

1. Globalization and its implications

Business today doesn’t have national boundaries – it reaches around the world. The rise of multinational corporations places new requirements on human resource managers. The HR department needs to ensure   that the appropriate mix of employees in terms of knowledge, skills and cultural adaptability is available to handle global assignments.  … Read the rest

Team Based Pay System Design

There are many considerations in the designing of a team-based compensation system. After the alignment of pay with strategy, culture, and competencies of the employee, then the next step is to determine the type or types of team in a particular organization. There are four types of teams: The first is the parallel team that is defined as a part-time team that can be temporary or permanent that employees participate on in addition to their normal activities. The second type of team is a process team that carries out the work processes and is done collectively by members of a team.… Read the rest

Team Based Compensation System

Teams have become a popular way to organize business because they offer companies the flexibility needed to meet the demands of the changing business environment. While many companies have been quick to organize their workforce into teams, they have not been as eager to implement team-based compensation systems. However, if team-based organizations continue to utilize old, individually-oriented pay systems, they will not fully realize the benefit of highly cooperative and motivated work teams.

Team compensation is a way of rewarding performance in team settings. That is, individuals are rewarded based on the performance of the team as opposed to individual performance.… Read the rest

Competency Based Compensation System

In the 1990s, a new idea gained acceptance in a number of organizations that more closely aligned human resource practices with organizational strategies, missions and cultures. A number of organizations switched from a traditional job-based structure to a competency-based structure that emphasized the development and attainment of behaviors, knowledge and skills compatible with and aligned to the organization’s mission and business strategies.

The focus of competencies is centered on characteristics of the employee, including behaviors, skills and knowledge that can be demonstrated and positively affect the organization. Competencies emphasize the attributes and activities that are required for an organization to be successful.… Read the rest