Human resource management includes different functions. The major topic among these functions is the responsibility for human resources. This involves deciding staffing needs. It involves deciding whether to hire employees or to use independent contractors. It also involves employing and training the best employees. It involves analyzing those factors that result in employee turnover. Employees should be recruited carefully and all their needs analyzed. Initially managers looked at personnel department to deal with staffing needs. However, in the recent past this duty has been delegated to the human resource department.
In private sectors, most companies do not have enough resources to hire independent contractors and in most cases, they will rely on hiring employees. This means that they have to compete with other companies in public sector for human resources. This can prove to be challenging especially during low economic times. There is a large possibility that these employees might leave the company to look for better employment opportunities. This is called labor turnover. Therefore, one needs to analyze in depth how a human resource manager can retain his employees in these changing economic times (Brewster, 2004).
Retaining employees can be tasking especially when the economy improves. There are several reasons why employees leave a company. First is that they leave to seek better compensation and benefits. The second reason is that they leave to seek new experiences in some other companies. Lastly is that they leave a company because they are dissatisfied with potential career development. It is the work of the human resource department to try to retain these employees.
There are methods that a human resource manager can use to retain his employees. First is that the human resource manager should analyze the benefits and work environment of his employees. The review on salaries will ensure that an employee gets an increment on his salary every year. This will also depend on the results of the employee. Working environment is also crucial for retention of employees in an organization. The working environment should be conducive and appropriate for the kind of work that an employee is undertaking (Dibble, 1994).
Secondly are motivational approaches. They are methods that a human resource manager can use to retain employees. In motivation, there is a work place motivation. These are those things, which make employees want to stay in that company and to achieve the organization's goals. This involves satisfying employees' needs so that they can achieve the organization's goals. The human resource department has to put in efforts to satisfy employees so that they achieve the organizations work. The company should develop a system of rewarding employees. The reward scheme makes an employee satisfied and therefore works to achieve his goals.
This is because of rewards that the employee receives. Gain sharing is one reward scheme that a human resource manager can use to reward his employees. This involves sharing incremental gains that came about because an employee put more effort in his work. The employee and the company share these incremental gains using a devised ratio. Gain sharing does not affect the profitability of a company because it is only put in place when employees work extra hard to achieve the organizations goals (Lussier, 2008).
In changing economic times, the role of the human resource manager must equal the desires of the changing organization. Successful organizations are becoming accommodative, dynamic, resilient, and customer-focused. A human resource professional must therefore learn to control adequately using planning, leading, and controlling the human resource and must be aware of new trends in employee and training development (Kumar, 2003).
This aspect of retaining employees is important to a human resource manager because a huge sum of money is saved when employees are retained in a company than when different employees are continually hired. The private sector should therefore strive to retain employees than hire independent contractors because this will be expensive for them.