The Effect of HRM Practices on Staff Retention

2021-03-01 19:53:13
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Introduction

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Background

The significance and enormous contribution of the HR (Human Resource) to companies cannot be overlooked. The HR is valuable and acts as the backbone of firms all over the world. Workers are a principal resource that can be strategically located for a company to realise a competitive advantage. It is argued that resources that are valuable and rare often create a competitive advantage. Furthermore, studies have identified that companies increase and sustain/maintain competitive advantage via the management of valuable and scarce human resources (Khan 2010). As such, the success of any firm depends on the efficiency and quality of its human resources.

Organizations dealing in the real estate development are equally affected by high staff/ employee turnover as other organizations in Australia. The study will focus on Victorian real estate firms HRM strategies in managing the scarce human resource.

According to Khan, for any organisation to excel and remain competitive, it is significant that they attract and retain adroit human resources. Therefore, employee/staff retention plays an indispensable role in the development of organisations. Lumley, Coetzee, Tladinyane & Ferreira (2011) argue that staff retention is an increasingly noteworthy issue for companies following the unfolding of the era of the knowledge worker.

Project Research Problem

Fitz-enz (1997) notes that the medium firm loses an approximate of $1 million with every professional and managerial employee who abandon the company. Cascio (2006) also adds that the expense associated with hiring, selecting, and training novel workers always exceed 100% of the annual wages for the job vacancy being filled. As such, every turnover of experienced worker come at an expense. Moreover, the combined indirect and direct expenses associated with one worker abandoning a company are more substantial.

When knowledgeable workers abandon a firm, the consequences often go beyond the considerable expenses of hiring and incorporating replacements. In relation to this, many employers, particularly in Australian organisations, are searching for better methods of managing turnover, with the aim of retaining valuable human resources and sustaining high performance and competition. However, many Australian organisations, especially those in the real estate sector continue to witness significant challenges when it comes to addressing the issue of employee turnover. For example, according to Living Stones Australia (2010), 50% of S.E. QLD workers left their previous companies due to dissatisfaction with the quality of management. Some of the HR management issues that contributed to these employees abandoning their organisation include development opportunities, inability to make decisions, payment and benefits, and work/life balance. Considering the statistics above, there is a robust need for the determination and implementation of effective HR management practices that can help Australian organisations involved in the real estate sector to address the issue of employee turnover in an effective manner. Such an undertaking will contribute significantly to staff retention in these companies.

Focus of the Study

The study will focus on the impact of human resource management practises on retention and reduction of turnover among employees in the real estate firms in Australia. The research will specifically focus on Victorian real estate firms HRM practises. The firm is one of the major organizations that deals in the real estate.

Purpose of the Research

The purpose of this study will be to investigate the effect of HRM (Human Resource Management) practices on staff retention in Australian Real Estate Organisations, with the aim of determining the practices that can effectively enhance employee retention. The key areas of this research will be:

Major workplace challenges that Australian Real Estate organisations face

Strategies and practices the Australian Real Estate organisations implement to attract and retain workers

Best strategies/practices that Australian real estate firms can implement to attract and retain workers.

Significant issue identified by organisations as essential for attracting and retaining employees in Australian organizations.

Practices that hinder the attraction and retention of employees in Australian Real Estate organisations.

Challenges faced by Australian Real Estate organisations in the attraction and retention of workersResearch Questions

This study will address the following research questions:

1. What are the major workplace challenges that Australian Real Estate organisations face?

2. What are the strategies/practices that Australian Real Estate organisations implement to attract and retain workers?

3. What are the best strategies/practices that Australian Real Estate organisations can implement to attract and retain workers?

4. What is the significant issue identified by organisations as essential for attracting and retaining employees in Australian Real Estate organisations?

5. What are the HRM management practices that hinder the attraction and retention of workers in Australian real estate institutions?

6. What are the challenges faced by Australian real estate organisations in the attraction and retention of workers?

Significance of the Project

The cost that accompanies the loss of workers in Australian organisations is more substantial. Besides, the cost associated with the recruitment, selection, and development of new workers to replace the lost ones is higher than retaining the existing employees. Many Australian real estate organisations including Victorian real estate firm continue to lose employees, thereby incurring major costs in replacing them. The findings of this study will help to determine the best HRM practices that can be employed in addressing the issue of employee turnover. As a result, Australian organisations and other firms in the world will manage to develop higher employee retention abilities. Such an undertaking will ensure that organisations avoid experiencing losses that are associated with employee turnover.

Projected Related Literature

Summary

This research project will focus on the HRM practices and employee retention. Best HRM practices are considered elements of a strategic human resource. The original comprehension of the research topic is founded on the knowledge gained from my MBA subjects; Performance Management and Strategic Human Resources and a range of journals supplied for each subject. HRM practices contribute largely to the retention of workers. A list entailing the published articles on the relationship between HRM practices and employee retention is provided below:

Davidson, G. & Wang, Y. 2011, Sustainable Labor Practices? Hotel Human Resource Managers Views on Turnover and Skill Shortages, Journal of Human Resources in Hospitality & Tourism, vol. 10, no. 3, pp. 235-253.

Deckop, R., Konrad, M., Perlmutter, D. & Freely, L. 2012, The Effect of Human Resource Management Practices on the Job Retention of Former Welfare Clients,

Human Resource Management. vol. 45, no. 4, pp. 539-559.

Holland, P., Pyman, A., Cooper, K. &Teicher, J. 2011, Employee Voice and Job Satisfaction in Australia: The Centrality of Direct Voice, Human Resource Management, vol. 50, no. 1, pp. 95-111.

Mahal, K. 2012, HR Practices as Determinants of Organisational Commitment and Employee Retention, IUP Journal of Management Research, vol. 11, no. 4, pp. 37-53.

Smith, A., Oczkowski, E., & Smith, Selby. 2011, To Have and to Hold: Modelling the Drivers of Employee Turnover and Skill Retention in Australian Organisations, International Journal of Human Resource Management, vol. 22, no. 2, pp. 395-416.

Yong, K. 2014, HR Practices and Knowledge Sharing Behavior: Focusing on the Moderating Effect of Trust in Supervisor, Public Personnel Management, vol. 43. no.4, pp. 586-607.

Planned Methodology

A quantitative research design will be employed in this study. Elston et al. (2013) argue that a qualitative research design provides a robust way of developing a theory for research. A questionnaire will be used to collect data from respondents (see the appendix for the format of the questionnaire to be used in the study). Purposive sampling will be done in choosing those who will participate in the questionnaire. Purposive sampling according to Palys (2008) will be key as it ensures that those who participate do have a stake in the real estate industry, thus important for the study. Prior to participating in this study, respondents will be issued with a consent form to indicate that they have granted informed consent for the study.

Interviews would also be used to obtain the data necessary for the study. Structured and unstructured interviews will be used when conducting data collection. Using both structured and unstructured interviews help get information that would otherwise not have been captured by using one of the methods (King & Horrocks 2010). The data got through administering questionnaire and conducting interview will be analysed systematically using both the deductive and inductive approaches. The findings of the two will be key booster in answering the research questions for the study.

Data will also be gathered from secondary sources such as books and peer reviewed journals. This undertaking will ensure that the analysis of the studys findings is executed in an effective manner.

Reference List

Cascio, W. F. 2006. Managing human resources: productivity, quality of work life, profits (7th ed.). Burr Ridge, IL: Irwin/McGraw-Hill.

Davidson, G. & Wang, Y. 2011, Sustainable Labor Practices? Hotel Human Resource Managers Views on Turnover and Skill Shortages, Journal of Human Resources in Hospitality & Tourism, vol. 10, no. 3, pp. 235-253.

Deckop, R., Konrad, M., Perlmutter, D. & Freely, L. 2012, The Effect of Human Resource Management Practices on the Job Retention of Former Welfare Clients,

Human Resource Management. vol. 45, no. 4, pp. 539-559.

Elston, K, Suanders, V, Hayes, B, & Bainbridge, R 2013, Building Indigenous Australian Research, Contemporary Nurse: A Journal for the Australian Nursing Profession, 46,

Fitz-enz, J. 1997, It is costly to lose good employee, Workforce, 76(8), 50-51.

Holland, P., Pyman, A., Cooper, K. &Teicher, J. 2011, Employee Voice and Job Satisfaction in Australia: The Centrality of Direct Voice, Human Resource Management, vol. 50, no. 1, pp. 95-111.

Kahn, A. 1990, Psychological Conditions of Personal Engagement and Disengagement at Work, Academy of Management Journal, vol. 33, no. 4, pp. 692-724.

King, N., & Horrocks, C. (2010). Interviews in qualitative research. Sage.

Lumley, E. J., Coetzee, M., Tladinyane, R., & Ferreira, N. 2011, Exploring the Job Satisfaction and Organisational Commitment of Employees in the Information Technology Environment, Southern African Business Review, vol. 15, no. 1, pp. 100-118.

Mahal, K. 2012, HR Practices as Determinants of Or...

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