Fluent Essays

Where appropriate you shall introduce a company, give company data or description and site the communication issue or problem or any communication phenomenon according to the attached document; but also remember; 7/10/2015 1 MGF 5921 Foundations in Human Resource Management Review of key points for Week 12 in-class essay The purpose of this lecture is to ! Identify key themes and concepts discussed during the semester with a focus on weeks 7-12 ! Relate these to the knowledge and concepts you need to successfully complete the Week 12 in class essay Learning objectives The essay quote: What we give our people is more than a job – here you will make a difference. We are the right people, at the right moment, with the right resources, to do extraordinary things for society, businesses and individuals........we’re taking a values-led approach to driving engagement and collaboration, as well as embracing generational change and diversity.... We [want]...... employees with the skills and passion to best serve our markets. Through all of this we aim to create a brilliant, connected workplace for our people.” (https://careers.telstra.com/Why-Work-Here). 3 The essay question The question can be interpreted as follows: Choose 3 HR activities from the following topics Managing Diversity and Work- life Balance; Performance Management; Learning and Development; Employee Development and Career Management and Rewards) as outlined in Parts 3 & 4 of Kramar et al 2014. Then • Explain how your chosen activities work together to help both Telstra and its employees to achieve their goals. • To support your essay response you must include • Reference to HRM theories, models and concepts covered this semester AND • Material covered in lectures in weeks 7-12. AND • Concepts and ideas found in readings from weeks 7-12 • Earlier readings as appropriate eg Barney and Wright 1998 4 Resources for answering the question: Readings from Weeks 7-12 Mountford, H. (2013), I’ll take care of you: the use of supportive work practices to retain older workers. Asia Pacific Journal of Human Resources, Vol 51, pp. 272-291 (retention, diversity, development/meeting employees’ needs). Hutchings, K., DeCieri, H. and Shea, T. (2011). Employee attraction and retention in the Australian resources sector, Journal of Industrial Relations, Vol 43, No 1, pp. 83-101 (attraction and retention; meeting employees’ needs). OR Wallace, M., Lings, I. and Cameron, R. (2012). Industry branding: attracting talent to weaker profile industries. Asia Pacific Journal of Human Resources, Vol 50, No: 4, 483-502 (attraction/development/careers). Hurst, J. & Good, L. (2009). Generation Y and career choice: The impact of retail career perceptions, expectations and entitlement perceptions, Career development international, Vol. 14, No. 6, pp. 570-593 (careers, employee expectations). OR 5 Holland, P., Sheehan, C., & DeCieri, H. (2007). Attracting and retaining talent: Exploring human resources development trends in Australia. Human Resource Development International, Vol 10, No 3, pp. 247-262 (employee development, employee and org. needs). OR Jones, J., Whitaker, M., Seet, P. and Parkin, J. (2012). Talent management in practice in Australia: individualistic or strategic? An exploratory study. Asia Pacific Journal of Human Resources, Vol 50, No: 4, 399-420 (Performance management, strategic HRM, individual development). Fischer, K., Gross, S.E., & Friedman, H.M. (2003). Marriott makes the business case for an innovative total reward strategy. Journal of Organizational Excellence, Vol. 22, No. 2, Spring, pp.19-24 (Total rewards). McCormack, D., Djurkovic, N. & Casimir, G. (2013) Workplace bullying: the experiences of building and construction apprentices, Asia Pacific journal of human resources, Vol. 51, No. pp. 406-420 (wellbeing and bullying). 6 Resources for answering the question: Readings from Weeks 7-12 7/10/2015 2 Other resources: Parts 3 & 4 from Kramar et al 2014 & the lectures weeks 7-12 Part 3 Developing People – Managing Diversity and Work Life Balance » We did this in Week 4 but it has also been taken up in Week 7 Work Design, Weeks 8 & 9 attraction & retention of talent – Performance Management » Week 10 but also discussed in other weeks re need for feedback in retention and development – Learning and Development » Week 9 but in other weeks as well eg attraction and retention and performance management – Employee Development and Career Management » As above Part 4 Rewarding People – Focus mainly on Chapter 14 and equity theory in Ch 13 » Week 11 Lecture NOTE: YOU ALSO HAVE INFORMATION ON ALL OR SOME OF THE ABOVE FROM YOUR GROUP PAPER AND PRESENTATION 7 What to look out for in your preparation: Important underlying ideas that explain HRM • People are important and valuable to the firm • HRM activities should be designed to get the best out of people to benefit the company • Employee needs may be met along the way – This relates to the RBV of the firm – SHRM can be used to achieve this – We may see both soft and hard HRM 8 We have two models of HRM – the Harvard Model and the Strategic HRM (choose one if you want to) Harvard Model • Assumes people are an organisational asset whose needs must be met along side those of the business and society • Employee well-being an end in itself • Plural interests • Associated with soft HRM SHRM Model • Assumes a linkage between organisational strategy and HR strategy to achieve organisational outcomes/goals • Employee well-being a means to an end • Mutuality of interests (unitarism) between employers and employees • Associated with hard HRM (but may have soft as well) Important underlying theories that explain HRM •Can you link these ideas to the Telstra quote? Here are some suggestions: • HRM (what model does the quote assume?) used to align HRM activities with business strategy • However HRM activities are assumed to impact on individual behaviour (by meeting needs) leading to organisational performance • Concepts to explain individual responses to HRM such as psychological contract, work motivation (intrinsic and extrinsic) eg Rewards Management, Retention and Development • HRM impacts on attitudes leading to commitment, engagement and performance eg Performance Management, Diversity, Worklife, Retention and Development 10 HRM models assume that HRM meets employer and employee needs Employee needs = Intrinsic motivation (soft HRM) • “subjective rewards from doing work well….particularly feelings of accomplishment, growth, development, self-esteem and personal satisfaction…” (Lawler & Hall, 1970:306 cited in White & Bryson, 2013:387). This is linked to values or employees’ personal values that • Define needs and needs in turn provide the basis for goals which lead to action (behaviour) • Form the basis of attitudes & emotions that lead to • Identification with and commitment to the organisation Meeting these needs is the focus of many of the HRM activities discussed in Parts 3 & 4 of the text and weeks 7-12 of the lectures 11 How do you reference your ideas You can refer to the text book chapters as follows • Eg 䇾Kramar et al 2014 discuss the importance of performance management to……. You can refer to the weekly readings weeks 7 onwards • Eg 䇾Fischer points to the importance of a total rewards approach….䇿 You can refer to earlier readings • Eg Edgar and Gear make the distinction between….. You can refer to material from you research project You need to cite references to support your ideas and this will gain you marks if you cite references as above You do not need to write a reference list at the end of the essay 12 7/10/2015 3 Next week Come to class ON TIME Be prepared and be relaxed! 13 Industry branding: attracting talent to weaker profile industries Michelle Wallace Southern Cross University, Australia Ian Lings Queensland University of Technology, Australia Roslyn Cameron Central Queensland University, Australia There is global competition for engineering talent with some industries struggling to attract quality candidates. The ‘brands’ of industries and organisations are important elements in attracting talent in a competitive environment. Using brand equity and signalling theory, this paper reports a quan- titative study examining factors that attract graduating engineers and technicians to engineering careers in a weak brand profile industry. The survey measures graduating engineers’ preferences for career benefits and their perceptions of the rail industry, which has identified a significant skilled labour shortfall. Knowledge of young engineers’ preferences for certain benefits and segmenting preferences can inform branding and communications strategies. The findings have implications for all industries and organisations, especially those with a weaker brand profile and issues with attracting talent. Keywords: employer branding, engineers/technical staff, rail industry, talent management, weak brand profile industries Global economic trends, increased demand for technological skills, mobility and growing workforce diversity have led to international competition for talent in certain occupations. Beechler and Woodward (2009, 275) point to four main reasons influencing the war for Correspondence: Associate Professor Michelle Wallace, Southern Cross Business School, Southern Cross University, Tweed Gold Coast Campus, Locked Mail Bag 4, Coolangatta, Qld 4225 Australia; e-mail: [email protected] Accepted for publication 14 February 2012. Key points 1 Branding theory may be applied to industries as well as organisations in order to better understand low brand profiles and their effects on recruitment, especially in contexts of skills shortages and competition between industries for talent. 2 Some industries with weaker brand profiles, such as the rail industry, report difficul- ties in competing for engineering talent. 3 Branding may be strengthened though a nuanced understanding of the benefits the targeted labour market segments value and perceive that a particular industry offers. bs_bs_banner Asia Pacific Journal of Human Resources (2012) 50, 483–502 doi:10.1111/j.1744-7941.2012.00040.x © 2012 Australian Human Resources Institute talent and the quantity, quality and features or characteristics of talent: ‘(1) global demo- graphic and economic trends; (2) increasing mobility of people and organizations; (3) transformational changes to business environments, skills and cultures; and (4) growing levels of workforce diversity’. When all these factors are taken into combined account the result is a constantly changing, challenging and complex environment in which organisa- tions must compete to attract and retain key talent. This is the case for the Australian rail industry, which is facing a tsunami of retirements, loss of corporate knowledge and increased competition for talent. The strategic management of talent involves defining an organisation’s direction and the human capital in terms of skills, knowledge and competencies needed to support that direction. Within the rail industry there is a particular focus on engineering and related technical professionals as the skills of these occupational groups are in highest demand. Skilled tradespersons, technicians and engineers rank first, second and third in the list of (non-medical) greatest skills shortages worldwide (Manpower 2011). Organisations with weaker employer brand profiles (i.e. those with unknown, unclear or unattractive employment value propositions) appear to have particular difficulties in attracting the skilled employees who are necessary to sustain competitiveness (Manpower 2011, 8). In Australia, industries that employ large numbers of engineers such as transport and mining are in a growth phase and demand for engineering and related skills is thus high. The Department of Immigration and Citizenship (2011) lists almost all engineering and engineering technologist positions as ‘in demand’ and current skilled migration levels and domestic graduates combined are insufficient to meet Australia’s demand for engin- eers (Engineers Australia 2010; Kaspura 2011). Reports from some industries with weaker brand profiles, such as rail, indicate that they face widespread skilled labour shortages and are having difficulty competing for engineering talent (Australasian Railway Association, Department of Education and Employment and Workplace Relations (ARA/DEEWR) 2007a, b). The research presented in this paper addresses the issue of how weak brand profile industries or organisations can engage in strategic talent management. We extend the use of employer branding and signalling theory to describe how organisations may position themselves in recruitment markets through better understanding the aspirations and drivers of their target labour pools. Employer branding has emerged from academic research as a synthesis of marketing principles and recruitment practices. Essentially employer branding is based on the notion that, just as customers have perceptions of an organisation’s brand, so do other stakehold- ers, in particular potential employees. Branding thus plays a role in the attraction of talent. At the macro level, industries also have a brand image based on recruits’ evaluation of attributes associated with those industries (e.g. Wilden, Giudergan and Lings 2010). Under- standing these attributes and how different groups of recruits evaluate employer brand is integral to managing and communicating the employer brand. Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute484 Our research questions are thus: Research question 1: What brand attributes do potential engineering recruits use to differentiate employers? Research question 2: What impact do these attributes have on their perceptions of the employer? Research question 3: Do groups in this target labour pool seek different employment benefits? The paper is organised as follows. The next section reviews the theoretical underpin- nings of employer branding. This is followed by the research methodology, results and analyses and finally, a discussion on our findings and their limitations. Employer branding Conceptualising brand equity The branding discourse focuses on the impact of corporate brands on individuals’ attitudes (e.g. Keller 1993; Swait et al. 1993). Two means of conceptualising brand equity dominate this field. The first, derived from cognitive psychology, suggests that the performance and personality of the brand gives rise to its value (or equity). Brand knowledge facilitates information processing and gives rise to brand equity by increasing individuals’ confidence in their choices. In the context of employment, previous research has adopted this cognitive psychology approach to employer brand equity. Edwards (2010) provides a comprehen- sive review of employer branding literature from both the marketing and HR fields, focus- ing on the cognitive psychology conceptualisation of brand equity. This view assumes that individuals have access to extensive brand information. While this assumption might be valid in the case of existing employees, it does not account for information asymmetries where potential employees may not have first-hand experience of the employer. Grounded in signalling theory (Akerlof 1970; Mirrlees 1971; Spence 1973; Vickrey 1961), a second conceptualisation of brand equity, based on information economics, has arisen. The signalling theory perspective suggests that to avoid bad choices, information seekers use signals such as brands to formulate their judgments of quality (e.g. Dawar and Parker 1994; Koku 1995). This is pertinent in recruitment markets as potential employees rarely have perfect information about an employer. Job choices are high risk, which motivates potential employees to invest effort into gaining knowledge about prospective employers. Organisations that communicate appropriate signals, via employer branding, can increase the likelihood that they will be preferred over competitors. Communicating the brand Just as traditional marketing practices, such as advertising, communicate the characteristics of a product to consumers, employer branding suggests that recruitment practices can be used to communicate the job and employer characteristics to potential recruits (Collins and Michelle Wallace, Ian Lings and Roslyn Cameron © 2012 Australian Human Resources Institute 485 Stevens 2002). Employer branding has been shown to increase the quantity and quality of job applicants (Collins and Han 2004) and to have positive consequences for organisational performance (Fulmer, Gerhart and Scott 2003). Potential recruits’ beliefs that an employer will satisfy their needs represents the value of the employer’s brand in the recruitment market. Potential recruits who perceive an employer to have high employer brand value consider that working for the employer is more attractive or at least less risky than working for an employer with low brand value. (Berthon, Ewing and Hah 2005). When making evaluations of employer brand signals, potential recruits evaluate the clarity, consistency and credibility of the brand information (Erdem and Swait 1998). In many industry contexts, potential recruits are likely to have experiences of an indus- try, for example through direct customer experiences or from the media. The clarity and consistency of the information and the experiences that people have with the industry is paramount (Fernandez-Barcala and Gonzalez-Diaz 2006). For example, inconsistencies between product promises and consumer experiences increase the risk that potential recruits will perceive that employment promises will not be fulfilled, making the industry less attractive as both a customer and an employment choice. Interpreting the brand According to Keller (1993), potential recruits evaluate the information that they receive in order to develop a multifaceted perception of employers. The facets of an employer’s brand that potential recruits consider in their decisions can be categorised in three ways. Functional aspects relate to objective, physical and tangible attributes such as a good salary or career advancement (Lievens, Van Hoye and Anseel 2007). Experiential aspects such as job diversity emphasise the brand’s effect on what it feels like to work for an employer (Ambler and Barrow 1996; Lievens, Van Hoye and Anseel 2007). Symbolic aspects relate to subjective, abstract and intangible attributes such as status that maintain or enhance self- identity (Ambler and Barrow 1996; Lievens, Van Hoye and Anseel (2007). Berthon, Ewing and Hah (2005), present five alternative benefits of employer brands. Interest benefit is the extent to which the industry provides an exciting work environment. Social benefit refers to perceptions of a working environment that provides a team atmo- sphere. Economic benefit refers to an above-average compensation package. Development benefit refers to recognition and career enhancing experiences, and application benefit refers to opportunities to apply what they have learned and to teach others. Lievens, Van Hoye and Anseel (2007) present three additional benefits, namely travel, culture (a positive work environment) and prestige (perceptions that working for the employer is highly regarded). Potential recruits’ anticipation of these benefits influences how attracted they are to careers with an employer or industry (e.g. Lievens and Highhouse 2003; Slaughter et al. 2004; Lievens, Van Hoye and Schreurs 2005). In understanding a recruit’s evaluation of the employer brand, it is important to note that all benefits are not equally important to all recruits. Recruits are unlikely to view the provision of a benefit as either very good or bad if they do not consider it to be important. Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute486 Consequently, it is necessary to establish the relative importance of each benefit for different types of recruit. This gives rise to the following hypotheses: Hypothesis 1: Interest, social, economic, development, application, travel, culture and prestige benefits are differentially important in potential employees’ evaluations of employers. Hypothesis 2: Potential employees’ beliefs that an employer will provide these employment benefits is positively related to how attractive they will find the employer. Possible segments in the target recruitment market Previous research shows that male and female final-year university engineering students (DEEWR 2008) have different preferences for job benefits. Opportunities to access profes- sional development, work overseas, and contribute to society, were ranked higher by females than males. In contrast, males ranked opportunities such as being involved in new and emerging technologies, cash bonuses, and fixed-term contracts higher than females. Also, it is likely that potential recruits at different life/career stages will have different motivations and may prioritise employment benefits differently. Raj, Walia and Gill (2011) report that employees of different ages and experience levels report dissatisfaction with different aspects of their current employment. They assert that the employees’ life stage and experience in the role impact their satisfaction with various job characteristics such as pay, security and advancement. Following their logic, we contest that age and work experiences influence individuals’ expectations of their employment and consequently the benefits which they consider important. While age and experience are unlikely to correlate perfectly in our sample we would anticipate that respondents under 22 would not have work experience (they are more likely to have progressed directly from school to further educa- tion), whereas respondents over 22 are more likely to have a period of full-time employ- ment prior to commencing tertiary education. Consequently, we examine whether age is a useful demographic variable for segmentation, specifically segmenting respondents under age 22 from those over age 22. In line with Raj, Walia and Gill (2011) and the DEEWR (2008) study we predict that potential employees with different demographic characteris- tics, specifically gender and experience, will have significantly different benefit preferences. This gives rise to the following hypothesis: Hypothesis 3: Potential employees with different demographic characteristics (age and gender) will have different preferences for job benefits. Rail: an industry with a skills shortage and brand profile issues The engineering shortage is impacting on the Australian rail industry. It is estimated that the demand for rail engineers will increase by 22\%-33\% to 2014 (Association of Profes- sional Engineers, Scientists and Managers Australia 2009). Previous small-scale research indicated that the rail industry, as an employer, has weak brand awareness and any aware- ness that exists is generally negative (ARA/DEEWR 2007a, b; Kerr and Waterhouse 2008). Michelle Wallace, Ian Lings and Roslyn Cameron © 2012 Australian Human Resources Institute 487 Our research responds to a recommendation for further analysis of rail’s attraction strat- egies and identification of the perceptions of the rail brand and rail careers held by target labour pools (Kerr and Waterhouse 2008). As will be seen below, our research focuses on one target labour pool, soon-to-graduate engineering students, explores their perceptions of the major employment benefits they value and quantifies how these perceptions influence the attractiveness of a rail career. Methodology This research represents part of a larger study exploring attitudes to the rail industry as an employer. Previous qualitative research (Wallace et al. 2010) confirmed that eight benefits identified by Berthon, Ewing and Hah (2005) and Lievens, Van Hoye and Anseel (2007), discussed earlier, were used by final-year students to evaluate rail as an employer. This paper focuses on the quantitative study that tested these eight benefits. Two methods are appropriate for measuring the relative importance of the eight ben- efits. First, stated importance can be measured by asking respondents questions to measure how important different elements of the benefit are to them. Responses to these questions may be averaged to measure the overall importance of the benefit. Second, the relative importance of the eight benefits can be estimated by examining beliefs that a particular benefit will be delivered by an employer. This is the derived importance of the benefit. We use linear regression to estimate the derived importance of each benefit. An understanding of both stated and derived importance is useful for recruitment professionals. Benefits stated to be important are those that respondents believe are relevant to them and are likely to be the benefits that they seek information about in recruitment materials. Benefits showing derived importance are those that signal the attractiveness of an employer to a potential recruit. In order to achieve our research aims it was necessary to measure the stated importance of each of the benefits to respondents, how well respondents consider that rail, as an employer, will provide them with these benefits and how attractive they consider a career in the rail industry. Measures of benefits were adapted from the reflective scales published by Berthon, Ewing and Hah (2005) and Lievens, Van Hoye and Anseel (2007) in order to be relevant to the rail industry. Questions relating to each of the benefits were presented in a random order in two sets, the first asking respondents how important each benefit was and the second asking how well rail organisations could deliver these benefits. For example: Application benefits • Working for an employer that is environmentally responsible is important/unimportant to me • The rail industry is environmentally responsible (strongly agree/strongly disagree) Economic benefits • Working for an employer that provides a competitive salary is important/unimportant to me Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute488 • The rail industry provides a competitive salary (strongly agree/strongly disagree) Each of the eight benefits was operationalised as an index (see Appendix). An index is composed of multiple items, each comprising a different element of the overall construct. For example, economic benefit encompasses promotion opportunities, job security, flex- ibility, salary, security and other benefits such as superannuation or travel allowances. In such situations a measure is most appropriately treated as a formative index rather than a reflective scale. Survey design Several design initiatives were incorporated into the survey instrument to ensure that the data collected were as free from error as possible and were valid measures of the constructs under observation. Following Spector (1987) and Podsakoff et al. (2003) we included both positively and negatively worded questions to minimise acquiescence bias. To minimise social desirability bias, surveys were collected anonymously. To minimise order effects, respondents′ opinion of rail as an employer was solicited prior to asking respondents to think about how well rail would be able to deliver each of the benefits sought. Demographic questions relating to gender, age, and course of study were collected at the end of the survey. Sample The survey was administered in late 2009/early 2010 to a representative sample of 407 final-year, women and men engineering students from seven universities and one Technical and Further Education (TAFE) college across New South Wales, Queensland, Victoria, South Australia and Western Australia. Surveys were paper-based and administered in person at the educational institutions. Students were a mix of international and domestic but their ethnic background, citizenship or Australian residency status were not measured. The data were cleaned, removing incomplete surveys (mainly because some students left for other classes) and a usable sample of 352 was obtained. The sample was overwhelmingly male (87\%) which is slightly higher than the 82\% male composition of the engineering student body in Australia (Kaspura 2011). The modal age was 21 years with a range from 19 to 36. Most of the respondents were studying for a Bachelor degree (85\%) with the bulk of the remainder studying for a Masters degree (8\%) or Certificate III (5.5\%). Data manipulation and analysis The objectives of the research were threefold: to measure the stated importance of the benefits sought by respondents, to estimate their derived importance, and to identify if the derived importance of the benefits differed for respondents of different age and gender. To do this several manipulations of the data were required. To measure the stated importance of each benefit, a measure of how respondents rated each benefit was required. This was calculated by using the mean of each respondent’s responses to each benefit. The grand mean score for each benefit for the whole sample was then calculated for each benefit. This grand mean ranked the eight benefits in order of their Michelle Wallace, Ian Lings and Roslyn Cameron © 2012 Australian Human Resources Institute 489 stated importance for the whole sample. A series of t-tests comparing the scores for each benefit provided information about whether the stated importance differs between benefits. It is insightful to understand the stated importance of the different elements of each benefit as represented by the index items (for example, for interest benefits, is an exciting work environment more important than novel work practices?). This was achieved by examining the sample mean scores for each item (rather than the grand mean scores for the benefits). The mean score of all items relating to respondent’s perceptions of how well rail provided each benefit gave a score for perceptions of rail as an employer. Regression analysis was used to quantify the impact that perceptions of rail had on respondent’s perceptions of how attractive they considered a career in rail. The regression coefficients represent the derived importance of the benefits. Finally, a series of regression analyses on subsets of the data (men/women, younger/ older) identified if these segments of the market were attracted to different perceived benefits. Following the logic established above that potential recruits at different life/career stages will have different motivations and may prioritise employment benefits differently, we analysed age segments of those under 22 and over 22. Although age was not a perfect proxy for experience, in this instance, if there were significant differences in experience and thus perceived benefits, a split based on the age of the respondents should show this. Results Prior to conducting the analysis, several quality checks were conducted on the data. Har- man’s (1967) one-factor test was conducted to test for method bias. The test revealed no general factor present and was taken as post hoc support for the absence of method bias (Mattila and Enz 2002). Measures of internal consistency are not appropriate for formative indices but do provide useful insights into the performance of reflective scales. The items for employer attractiveness demonstrated adequate internal consistency (Cronbach’s alpha = 0.93) which exceeded the recommended minima suggested by Churchill (1999), Gerbing and Anderson (1988) and Hair et al. (1998), justifying their inclusion into the analysis. The next stage of the analysis was to establish respondents’ perceptions of the relative importance of each of the benefit dimensions of the employer brand. The data indicated that respondents considered development benefits to be most important, followed by economic, interest, social, culture, application, travel and prestige benefits. A series of 28 paired t-tests indicated 27 significant differences between the means of the importance scores, supporting hypothesis 1, that the benefits were differentially important in potential employees’ evaluations of employers. Most and least important facets of benefits In order to identify which facets of each benefit were most important, each index item was examined and those with the highest important scores were identified. It is also helpful to understand which facets were the least important. Components that were rated least impor- tant corresponded primarily to application and prestige benefits. Table 1 describes these aspects. Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute490 Paired t-tests revealed that within the development benefits, gaining experience to support career progression and working in an organisation that enhances career flexibility were significantly more important than other facets. For economic benefits, attractive employment package, competitive salary, promotion opportunities and job security were significantly more important. Within interest benefits, the opportunity to work on inter- esting projects was rated the most important facet, and for social benefits, relationships with the team and managers were rated the highest importance. Table 1 Aspects considered most/least important by respondents Important benefit Important aspects of benefit Mean importance Development Gaining experience to support their career progression 4.35 Working in an organisation that enhances their career flexibility in the future 4.26 Economic An attractive employment package (superannuation, travel, allowances etc) 4.29 A competitive salary 4.28 Good promotion opportunities in the organisation 4.26 Job security in the organisation 4.23 Interest The opportunity to work on interesting projects 4.45 Social Having a good relationship with the team 4.38 Supportive and encouraging team 4.22 Having a good relationship with the management 4.10 Unimportant benefit Unimportant aspects of benefit Mean importance Application Working for an employer that is environmentally responsible 3.48 Working as part of a diverse workforce 3.46 Working for organisation that makes an important contribution to our nation 3.35 Working for an organisation that is customer focussed 3.34 Prestige Working in an industry that is easy to get into 3.15 Working for a multinational organisation 3.11 Working for an organisation that is positively reported in the media 3.09 Economic Working for organisation that has a streamlined, simple recruitment process 3.47 The opportunity to rotate jobs within the organisation 3.46 Interest The opportunity to work for a high profile organisation 3.43 Travel The opportunity to work interstate 3.21 Culture Working for an organisation that makes quick decisions 3.13 Michelle Wallace, Ian Lings and Roslyn Cameron © 2012 Australian Human Resources Institute 491 The impact of benefits on employer attractiveness Scores for perceptions of rail as an employer were within one standard deviation of the mid-point, suggesting that rail had a weak image and respondents did not know if a career in rail would offer the benefits that they sought. This weak image of rail in the recruitment market suggests that potential recruits lack information about rail’s brand. However, it is still possible to estimate how well perceptions of the benefits encapsulated in the rail brand predict how attractive a career in rail is perceived (derived benefit). Multiple regression analysis provided an estimate of the impact of each benefit on employer attractiveness. Three of the eight benefits, interest, economic, and prestige were found to significantly predict perceptions of the attractiveness of a career with rail, offering partial support for hypothesis 2. Other benefits did not have any significant role in determining how attractive a career with rail was seen to be. Table 2 describes these predictors of rail attractiveness. Segmentation To test for meaningful segments the sample was split into subsamples representing different ages (22 and older, and younger than 22) and gender segments. Regression analyses were conducted on each subsample. Comparison of the regression analyses revealed the deter- minants of industry attractiveness for respondents with different demographic character- istics. The results are presented in Table 2 and support hypothesis 3. A comparison of the results for men and women confirmed the findings of (DEEWR 2008) that the benefits sought by these two segments differ considerably. Notwithstanding the low sample size for the female segment, it appears that women were seeking different employment benefits to men. Women appeared to consider prestige, culture and social benefits when evaluating the attractiveness of an employer, and men considered economic and interest benefits, and to a lesser extent the opportunity to travel. Table 2 Predictors of rail attractiveness All Men Women Younger !22 Older 22 n 352 234 28 127 119 R2 .40 .39 .83 .37 .60 Interest benefit .428 .430 NS .759 NS Economic benefit .357 .378 NS NS .417* Prestige benefits .275 NS .352 NS .569 Culture benefits … Talent management in practice in Australia: individualistic or strategic? An exploratory study Janice T Jones Flinders University, Australia Marian Whitaker Flinders University, Australia Pi-Shen Seet Flinders University, Australia Jarrad Parkin Flinders University, Australia Drawing on the results of a qualitative study involving senior human resources (HR) practitioners and executives, this paper explores the nature of talent management in Australia, including whether organisations adopt an ‘individualistic’ or ‘star’ perspective or a more systems-level, strategic perspec- tive on talent management. The results suggest that there is heterogeneity in how organisations execute talent management with a spectrum of approaches ranging from what is, in essence, a relabelling of human resource management (HRM), with a narrow functional focus; through to integrated HRM, with an exclusive individual focus; to a more organisationally focused competence development approach. We find evidence of an emphasis on the identification of key positions that can add significant competitive advantage and differentiated HR ‘architecture’ associated with a more strategic perspective in some organisations. Overall, the study finds little indication of a systems-level, strategic perspective, with most firms taking an individualistic approach to talent management. Keywords: Australia, individualistic, strategic, systems-level, talent management Correspondence: Dr Janice T Jones, Flinders Business School at Flinders University, GPO Box 2100, Adelaide, SA 5001, Australia; Email: [email protected] Accepted for publication 4 February 2012. Key points 1 There are two distinct, overarching perspectives on talent management: 1) an indi- vidualistic level and 2) a systems-level/strategic focus. 2 Despite the acknowledged need to move towards a strategic perspective of talent management, we find little traction in practice among Australian-based organisa- tions, with most firms stuck on an individualistic approach. 3 Even among organisations with a so-called strategic focus, the talent management strategy does not appear to be systematic and congruent, and the execution is ad hoc, unstructured and fragmented. bs_bs_banner Asia Pacific Journal of Human Resources (2012) 50, 399–420 doi:10.1111/j.1744-7941.2012.00036.x © 2012 Australian Human Resources Institute Despite talent management (TM) being a subject of considerable interest among consult- ants, practitioners and academic scholars for more than a decade, in Australia, as elsewhere, little empirical evidence exists on who is considered talented (and why) (Makela, Bjorkman and Ehrnrooth 2010), and TM activities in organisations (Iles, Chuai and Preece 2010; Lewis and Heckman 2006) – that is, ‘how’ (Makela, Bjorkman and Ehrnrooth 2010) to attract, develop and retain talent (Tarique and Schuler 2010). This lack of research is surprising given the amount of attention talent receives in the business press (e.g. Thomson, Stensholt and Sibillin 2007), and given the growth in importance of knowledge as a source of competitive advantage which underscores the importance of talent in the economy (Teece 2003). The purpose of this article is to fill this gap, through an exploratory qualitative study involving senior human resources (HR) practitioners and managers in the Australian context. The research investigates the nature of TM by examining what is ‘talent’ and what is ‘talent management’; what are the objectives of TM; and what approaches are adopted for TM? The paper also explores whether Australian organisations adopt an indi- vidualistic or systems-level, strategic perspective to TM. Thus the study contributes to prior research in two important ways. First, it adds to the very few field studies that have investigated TM in Australian-based organisations. Specifically, the research contributes to our understanding of senior HR practitioners’ views on TM. Our second contribution is to derive two distinct, overarching perspectives on TM from the literature which provide a basis for empirically exploring whether firms take an individualistic or systems- level, strategic perspective on TM. While Lewis and Heckman (2006) and more recently others (Iles 2008; Iles, Preece and Chuai 2010) have been advocating a shift away from the ‘individualistic’ focus, to date, empirical studies have not examined whether organisations adopt an ‘individualistic’ or ‘star’ perspective or a systems-level, strategic perspective on TM in Australia. The first section of the paper reviews literature on TM. We draw on work by Lewis and Heckman (2006) which provides a concise, critical review of literature in this area and, more recently, Iles, Chuai and Preece (2010) who extend this research. We highlight some differences in interpretation and terminology. The second section describes the research design. Findings are presented in the third section. The paper concludes with a discussion of the main findings and implications for future research. Literature review Defining talent management Research in the area of TM has been distilled into three streams of thought. The first views talent and TM broadly, applicable to all employees (Iles, Chuai and Preece 2010) and comprising typical HR practices, functions and activities, though some researchers tend to narrow the focus to specialist areas within human resource management (HRM; e.g. recruitment, selection, development and career planning) (Iles, Chuai and Preece 2010; Lewis and Heckman 2006). Regardless of the scope of HR activity, the primary problem Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute400 with this perspective is it replaces ‘human resource management’ with ‘talent management’ – in other words, ‘old wine in a new bottle’ (Iles, Chuai and Preece 2010; Lewis and Heckman 2006). The second stream conceptualises TM as processes designed to ensure an adequate flow of human resources into jobs in an organisation, and encourages managers to manage succession pools of talent for specific jobs (Lewis and Heckman 2006). While Iles, Chuai and Preece ’s (2010, 149) ‘organizationally-focussed competence development’ approach focuses on strategically managing the flow of talented employees through a range of roles, Lewis and Heckman emphasise the development of ‘talent pipelines’ to deliver current and future employee competence requirements, and an organisation-wide, holistic talent mind- set. This stream is closely related to, and builds on, HR planning and succession planning, typically through the use of enterprise TM systems (Lewis and Heckman 2006). According to Cappelli (2008, 2009) however, succession plans, particularly long-term plans, are mistakes in a business environment characterised by uncertainty in demand and labour markets, because they assume that the jobs that will need to be filled in the future and the employees needed to fill them are known in advance. In order to reduce the effects of uncertainty, Cappelli (2008, 2009) draws on the notion of talent pools, and advocates the development of employees in the talent pool with broad and general competencies that fit a range of jobs, as opposed to narrow, specialised jobs. The third stream of research focuses on managing talent pools, which comprise an exclusive segment of the organisation’s workforce typically described as high performing and high potential (Iles, Chuai and Preece 2010; Lewis and Heckman 2006). According to Iles, Chuai and Preece ’s (2010) ‘integrated HRM, selective focus’ approach, this segment of talented individuals is the subject of a set of tightly coupled HRM tools, activities and processes. While Lewis and Heckman (2006) also conceive talent as performance pools to be managed, they suggest that organisations are encouraged to categorise employees based on their performance level and reward them accordingly, or fill all positions with high per- formers. This perspective is also problematic, since it ignores the reality that for some jobs, satisfactory performance is acceptable, while organisations may find it beneficial to empha- sise specific competencies and de-emphasise others (Lewis and Heckman 2006). If all employees are classified as talented, then the question is: how does TM differ from con- ventional HRM (Collings and Mellahi 2009)? Notwithstanding recent conceptual and empirical advances (e.g. Cappelli 2008, 2009; Iles, Chuai and Preece 2010; Collings and Mellahi 2009; McDonnell et al. 2010 discussed below), Lewis and Heckman (2006, 140) conclude ‘there is a disturbing lack of clarity regarding the definition, scope and overall goals of talent management’. Indeed, in one of the few scholarly studies to examine the definition and scope of TM, Iles, Chuai and Preece (2010, 185) found this lack of clarity was also the case with their sample of organisations, although they also state ‘broadly speaking, they reasonably readily fell into one or the other of the three main forms’. The ‘war for talent’ was identified as driving the adoption of TM, with the need to attract and retain key employees most relevant to firms which took an ‘integrated HRM, selective focus’ approach, while overcoming the barriers to the attraction Janice T Jones et al. © 2012 Australian Human Resources Institute 401 and retention of talent underlies the ‘organizationally-focussed competence development’ approach. Iles, Chuai and Preece (2010) conjecture these conceptualisations are likely present in other companies, particularly multinational corporations (MNCs), but suggest they may vary across sector, size and nationality. In a study of Irish-based MNCs, organ- isational size, the existence of a global HR policy formation committee and regional or global product/service standardisation explained the use of (global) TM practices (McDon- nell et al. 2010). While a relatively large number of MNCs utilise systems to strategically identify and develop talent, many more adopt an ad hoc approach (McDonnell et al. 2010). It is the strategic perspective, and an alternative, competing – individualistic – perspective to which we now turn. Talent management: Individualistic versus systems-level, strategic focus Despite the efforts made towards defining and creating a taxonomy of TM, there are, in general, two competing perspectives to TM – an individualistic perspective versus a systems-level, strategic perspective. The individualistic or star perspective follows from concepts originally developed by the McKinsey research (Michaels, Handfield-Jones and Axelrod 2001) that sees organisational performance as the individual efforts aggregated or as noted by Iles (2008, 216 ), ‘if you attract/retain people who do well individually, you can win the competitive battle’. However, Pfeffer and Sutton (2006, 90) find ‘deep flaws’ in the McKinsey studies, especially in the findings that the performance of the organisations was the result of managing talent and note that ‘the best evidence indicates that natural talent is overrated, especially for sustain- ing organizational performance’. According to Beechler and Woodward (2009, 277), recent research has shown that the ‘nearly single-minded focus on individuals that is endemic to companies’ strategies for fighting the talent war often backfires and reduces, rather than enhances individuals, teams and organisations’, which accords with the findings of a study of star investment analysts, who, after switching firms, experienced an immediate and ongoing deterioration in per- formance (Groysberg, Nanda and Nohria 2004). Groysberg, Nanda and Nohria (2004) attribute the stars’ former excellence to their previous employers’ general and proprietary resources, organisational culture, networks and colleagues. The individualistic perspective essentially views talent as a form of human capital, and overlooks the importance of firm context, social capital and organisational capital to organisational performance (Iles 2008; Iles, Chuai and Preece 2010; McDonnell 2011; Pfeffer 2001). The so-called ‘best athlete’ practice of hiring of outside individuals (Huckman and Pisano 2006) is a strategy increasingly used by organisations to appropriate individuals’ skills and experience (Cappelli 2009; Wezel, Cattani and Pennings 2006) and the organisational routines in which they have played a role (Wezel, Cattani and Pennings 2006). While human capital and social capital are typically bound to individuals and thus transferable across firms,1 transporting organisational capital in the form of organisational routines and processes is less clear cut because they are partly independent of individuals (Wezel, Cattani and Pennings 2006). Routines typically stem from repeated interaction Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute402 among multiple participants internal or external to the firm over an extended period of time, rendering them less sticky to individuals. With the maturing of the TM field, there have been calls to move from an individualistic to a ‘strategic’ perspective. As with the strategic HRM literature (Dainty 2011), and indeed, wider strategy literature (Purcell 2001), there is considerable ambiguity surrounding what the concept ‘strategic’ in the context of TM means. Lewis and Heckman (2006) use the terms ‘systems-level, strategic perspective’ and ‘systems-level or strategic framework’ inter- changeably, while Collings and Mellahi (2009) and Silzer and Dowell (2010) refer to ‘strategic TM’. McDonnell (2011) refers to TM as a ‘strategic (management) activity’. Others (e.g. Cappelli 2009 and Iles, Chuai and Preece 2010) simply draw attention to aspects that have strategic connotations. Following Lewis and Heckman (2006), we use the term ‘systems-level, strategic perspective’ but also draw on related literature to explore what ‘strategic’ means in the TM context. Collings and Mellahi (2009, 305) define strategic TM: as activities and processes that involve the systematic identification of key positions which differentially contribute to the organisation’s sustainable competitive advantage, the develop- ment of a talent pool of high potential and high performing incumbents to fill these roles, and the development of a differentiated architecture to facilitate filling these positions with com- petent incumbents and to ensure their continued commitment to the organisation. This definition incorporates recent conceptual advances in the field – most notably the work of Huselid, Becker and Beatty (2005) and Boudreau and Ramstad (2005) that has called for a greater distinction between jobs or roles within organisations, and in particular, an increased focus on key positions vis-à-vis talented individuals, which have the potential to differentially impact the competitive advantage of a firm. Importantly, the focus on employees who are in the firm’s talent pool, and who either occupy, or are undergoing development to occupy, key talent positions, provides a point of departure from strategic HRM, which tends to apply to all employees. Key talent positions are not limited to top management, but may include functional or technical roles that have a significant impact on firm performance (Collings and Mellahi 2009), or even all jobs that are difficult to fill (Cappelli 2009). Importantly, a strategic approach to managing talent ‘takes as its starting point organisational goals and not human resource targets’ (Cappelli 2009, 7). A strategic orientation is also characterised by an emphasis on systems-level issues, e.g. networks, teams, and social and relational processes in TM (Iles 2008; Iles, Chuai and Preece 2010; Lewis and Heckman 2006; McDonnell 2011). This perspective sees a shift of emphasis away from what we refer to as a micro focus on talent and individual-level talent analysis to a macro focus on systems-level issues. The rationale that underlies this perspective is that the performance of individual or even team talent is strongly influenced by firm-specific factors (such as leadership, relationships, internal networks, training and team member- ship), and the processes and systems in which they operate. Collings and Mellahi (2009, 307) state: ‘While the organisation’s strategic capital is encompassed in the employees of the organisation ... it is the organisational systems and processes [emphasis added] which create Janice T Jones et al. © 2012 Australian Human Resources Institute 403 and manage this strategic human capital and ensure that its contribution is maximised.’ Figure 1 provides a diagrammatic illustration of this distinction. The large ellipse denotes that TM appears to be different things to different people. In this study, the focus is on the central tenet that underpins TM, and whether the emphasis is on the individual star with a concomitant micro-focus on tactical/operational issues (e.g. recruiting, incentives etc.) (i.e. the bottom left quadrant of Figure 1); or whether TM is more organisational/system-level, strategic, which also includes an emphasis on building talent pipelines, establishing processes to identify and assess high-potential talent, devel- oping leadership talent, performance management for the talent management function, succession planning and leadership change management, etc. (i.e. the top right quadrant of Figure 1). The bottom left quadrant is the focus of the earlier TM literature, while the top right quadrant incorporates recent developments in the literature (elaborated on below). The systems-level, strategic perspective is supported by Pfeffer (2001) who argues for a more diverse, inclusive TM focus. It is not just about individual talent but the processes and system within which individuals interact and work that will see individuals, teams and ultimately organisations perform better than others. Lengnick-Hall and Andrade (2008, 38) concur, showing that a staffing system is needed to provide the necessary talent supply and movement to achieve organisational objectives. Individual staffing decisions (for example who to promote or transfer), in turn, are viewed from the perspective of how they affect the organisation’s overall supply and movement of talent. But as also noted by Lengnick-Hall and Andrade (2008, 40), with reference to von Bertalanffy (1974): ‘optimising subsystems Individualistic Organisational Tactical/ operational Strategic Micro- focused TM Micro- focused TM Figure 1 Individualistic versus systems-level, strategic focused talent management Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute404 (i.e. doing each part well separately) does not maximise organisational system performance ... what is needed is the integration of ... subsystems ... to accomplish desired organisational goals’. Indeed, for TM to be considered a strategic activity, its value to the bottom line must be demonstrated (McDonnell 2011). Vance and Vaiman (2008, 6) conclude that ‘if talent management is to make a significantly new contribution ... it must hold a more clear link with strategic human resource management (Boudreau and Ramstad 2005; Wright and Haggerty 2005)’. While most researchers take business strategy as the starting point with talent and HR aligning with strategy (McDonnell 2011; Silzer and Dowell 2010), some (e.g. Boudreau and Ramstad 2005; Lewis and Heckman 2006, 145, 147) go further, arguing that for TM to be strategic, it must utilise talent investments that open new opportunities. As Silzer and Dowell (2010, xxii) observe, this emphasis reflects a ‘significant paradigm shift for HR ... to strategic talent management’ in which the emphasis is significantly different from traditional TM. In Australia, there is a distinct lack of systematic empirical (as opposed to anecdotal) evidence on TM. The evidence that is available is drawn from single-organisation case studies (e.g. Blackman and Kennedy 2008), or from survey data not specific to TM (e.g. Holland, Sheehan and De Cieri 2007; Sheehan, Holland and De Cieri 2006). Method As the aim of the study is to explore in-depth HR practitioners’ and senior managers’ perceptions in the area of TM, we used a qualitative research method. This study is posi- tioned at the end of the spectrum of methodologies founded on an interpretative perspec- tive, which furnish rich insights over time on social phenomena. The qualitative researcher is interested in perspective rather than the truth per se. As such, a qualitative study offers exploration and clarification of the TM phenomenon, which are reflective of HR profes- sionals’ and managers’ personal experiences. Sample We used a convenience sampling method. Participants were identified through two methods: industry contacts and cold calls (via e-mail or telephone). In some cases, the e-mail was forwarded by the initial contact to another person within the organisation who was respon- sible for TM, as a key criterion for inclusion in the study was the HR practitioner needed to have some responsibility for TM. In some organisations, the person responsible for TM was a senior manager with HR as part of their responsibilities. HR practitioners’ involvement in TM varied, with practitioners developing, overseeing, implementing and/or participating (e.g. as part of the executive group) in the TM process. There were two rounds of data collection: the first set of interviews were conducted in 2009–10 and focused largely on HR managers in South Australia. The second set of interviews conducted in mid-2011 comprised a much broader sample across different industries and states in Australia and also included some executives who were responsible for recruiting, mentoring and managing talent. Janice T Jones et al. © 2012 Australian Human Resources Institute 405 A total of 22 senior HR practitioners, senior managers with HR as part of their respon- sibilities, and executives were included in the study. We focused on senior HR managers since they were more likely to be involved in strategic activities, and thus more likely to have accurate knowledge of the strategic nature (if any) of TM. We also interviewed the chief executive officer (CEO)/managing director (MD) or other members of the executive team in five of the 18 organisations in order to provide an additional, managerial perspective on TM. Table 1 summarises sample characteristics. Data collection Face-to-face interviews were conducted, each lasting between 40 minutes to two hours (except in one case which involved a telephone interview due to geographic distance). A semi-structured interview format was employed. At the same time, the interviewer was able to probe statements in order to clarify and explore emerging issues. The interview protocol focused on three areas: 1) background data, which related to the HR practitioner, and the setting in which the business operates; 2) the meaning of talent and TM, including its foci, objectives and context; and 3) the TM process, including its relationship to other HR activities, organisational processes, culture and structure, and wider context. Interviewees were asked to describe and elaborate on these issues in detail and give examples. As with previous qualitative research (Brown et al. 2009), we looked for specific examples in order to ensure interviews were anchored in the reality of actions undertaken, not what HR managers might feel obligated to state (Hunt and Boxall 1998). In some cases, documentation pertaining to TM was provided and related information systems demonstrated, both of which provided the opportunity to explore the meaning of responses more fully (Patton 1990) as well as to triangulate data. Permission was obtained from each participant to digitally record the interview. Recordings of each interview were carefully transcribed and e-mailed to the participant for verification of accuracy of content. Data analysis Transcripts were analysed for key themes using a qualitative research method (Glaser and Strauss 1967). Specifically, the constant comparative method was used to generate themes from the data. This method involved looking for ‘recurring regularities’ (Patton 1990) including recurring phrases in the verbatim expressions of interviewees. The research questions and literature review suggested initial classifications of the content of the interviews (Miles and Huberman 1994). As analysis of data relating to TM approaches progressed, the results showed remarkable similarity to the Iles, Chuai and Preece (2010) framework. These classifications and results then formed the basis for further analysis since it incorporates the three major HRM activities – attraction, development and retention – that are the hallmarks of TM systems (Tarique and Schuler 2010). We did not ask interviewees whether they adopted an individualistic or systems-level, strategic perspective to TM, but used their responses to questions pertaining to talent, TM and the TM process, together with criteria based on key ideas and concepts derived from the Asia Pacific Journal of Human Resources 50 © 2012 Australian Human Resources Institute406 literature reviewed above. An individualistic perspective includes an emphasis on the attraction and retention of talented individuals or stars and a strong focus on the develop- ment of, and analysis of, individual-level attributes, skills and capabilities. The key elements of a systems-level, strategic perspective include: a focus on key or pivotal positions that Table 1 Overview of the sample Interviewee number Industrial sector Location of headquarters Number of employees in Australia Job-holder’s title 1 Manufacturing South Australia 200 Executive manager, human resources 2 Banking/finance Australia 5 000 Head of human resources 3i* Fast moving consumer goods MNC, United Kingdom 1 000 (Corporate) HR practitioner 3ii Forestry/timber Australia/NZ 750 Manager, human resources (business-unit level) 4 Public sector organisation South Australia 30 000 Manager, human resources 5 Manufacturing (automotive) Australia 400 Director of human resources 6 Software MNC, USA 850 Manager, human resources 7a & b† Manufacturing South Australia 30 Manager, human resources & MD 8a & b† Manufacturing South Australia 230 General manager of human resources & CEO 9† Consultancy Sydney, NSW 70 CEO 10 Consultancy MNC/USA 1 255 Senior HR associate/ consultant 11† Telecommunications Australia ~40 000 Group managing director (of functional area) 12a & c‡ Public sector organisation South Australia 700 Manager, human resources & organisational development consultant 13§ Information technology MNC, USA nd Human resource specialist 14§ Australian public sector Canberra, ACT 164 596 Senior manager/HR consultant 15 Travel South Australia 160 Manager, human resources 16a & b† Professional sporting organisation South Australia 130 CEO & head coach 17 Agribusiness Australia 3 390 General manager, human resources nd, not disclosed. * Interviewee 3 was able to provide data for two organisations (i & ii) having moved between organisations. † Interviewees also included managing director/CEO, or other member of senior management group at enterprise level. In order to protect the anonymity of the respondent, the functional area has not been disclosed. HR manager is denoted by ‘a’; MD/CEO or other senior manager is denoted by ‘b’. ‡ Interviewees also included organisation development consultant denoted by ‘c’. § HR interviewee was a contractor. Janice T Jones et al. © 2012 Australian Human Resources Institute 407 impact the firm’s competitive advantage; an emphasis on systems-level issues, TM processes and the wider organisational context in which talent operates; and TM ‘architecture’ align- ing talent to firm’s strategy reflecting a congruent approach to TM. Findings Talent management and talent defined As can be seen from Table 2, the majority of respondents define TM as the identification, attraction, development and/or retention of a segment of their workforce. This segment is typically described as ‘high potential’ or ‘high quality’. The focus of TM is typically on the individual employee, although there are also references to specific job families or positions: for example, executive positions (#2, #14 and #17), or highly significant roles (#6). Accord- ing to interviewee #12 (Table 1), TM is focused on individuals described as ‘up and coming leaders’ and ‘stars’, and positions, which are considered difficult to fill as a result of national skills shortages. Only a few interviewees adopted an inclusive perspective (Iles, Chuai and Preece 2010): interviewee #4 (Table 2) described TM as a ‘very, very broad concept’ which applied to all employees, and encompassed the entire spectrum of HR activities, from … I’ll take care of you: the use of supportive work practices to retain older workers Hélène Mountford Macquarie University, Australia While flexible work options are seen as the most important human resource management strategy for the retention of older workers, according to the employee literature a number of other strategies to improve working conditions are also influential. These include developing a supportive work environment; the recognition of skills and abilities; training opportunities leading to career progres- sion; and being able to pass on knowledge to younger staff. These strategies together contribute to employee well-being at work, and are here generically called supportive work practices. This article reports on part of a qualitative study based on interviews with 20 aged care facility managers and 20 personal carers and finds that despite poor pay, physical work and a predominantly immigrant labour force, many of these human resource strategies are effectively utilised to retain older workers in residential aged care. Most of these practices, which reduce recruitment, training and sick leave costs, could also be effective in other industries. Keywords: aged care facilities, older workers, retention, supportive HR work practices The ageing population and workforce in developed countries have seen policy-makers encourage employers to retain their older workers, principally baby boomers born between 1946 and 1964, to both reduce national economic liabilities and avoid labour and skills shortages. This is particularly so in Australia where despite the global financial crisis (GFC), continuous economic growth over the past 20 years has led to skills and labour shortages in some labour market sectors. To further encourage older worker employment, Correspondence: Dr Hélène Mountford, Department of Marketing and Management, Macquarie University, North Ryde, NSW 2109, Australia; e-mail: [email protected] Accepted for publication 1 July 2012. Key points 1 The retention of older workers is important to the national economy and the skills and labour shortage. 2 Older workers are quite specific about the working conditions they want to remain at work. 3 In the main, these conditions are not being provided, but this study reveals the HR practices one industry utilises to keep its older employees are very similar to those reportedly wanted. bs_bs_banner Asia Pacific Journal of Human Resources (2013) 51, 272–291 doi:10.1111/j.1744-7941.2012.00048.x © 2012 Australian Human Resources Institute policy changes include an increase in the age at which women can claim the state pension to 65 years, and the age for all pension eligibility increased to 67 years by 2023 (Centrelink 2012). The latter change encompasses the younger baby boomer cohort, those born after 1957. Despite official encouragement, few organisations in developed economies have effec- tive policies and practices for the ageing workforce (Harris, Foster and Sempik 2011; Parry and Harris 2011; Timmons et al. 2011). However, studies prior to the GFC show that many baby boomers want to stay at worker longer than the previous generation (born 1932–1945), but they want a variety of working conditions to make their work–life balance easier and personally rewarding (Mountford 2010; Proper, Deeg and van der Beek 2009). Studies after the GFC have found many more baby boomers need to work to rebuild retirement funds (e.g. O’Loughlin, Humpel and Kendig 2010). According to older worker research, the conditions sought by employees to remain at work comprise a range of flexible work options and other supportive work practices. Flexible work options are an important work condition for retention (Skinner et al. 2011; Walter and Jackson 2007) but this article is concerned with HR practices other than flexible work options which contrib- ute to staff retention. Previous research has not found consistent priorities among these HR practices but studies of workers find a number repeatedly occur. They are: the need for a supportive working environment (Armstrong-Stassen and Schlosser 2010; Timmons et al. 2011), recognition of skills (Armstrong-Stassen 2005), availability of training with career paths (Armstrong-Stassen and Ursel 2009; Bertolino, Truxillo and Fraccaroli 2011), and the opportunity to pass on knowledge to younger workers (Walter, Jackson and Felm- ingham 2008). In this article they are generically called supportive work practices because individually and as a group they contribute to a positive working environment which encourages commitment and satisfaction, thereby contributing to retention. While the employee studies reveal these desired conditions, there is little evidence that they are being implemented widely (Armstrong-Stassen 2008; Harris, Foster and Sempik 2011). European scholars have predicted that older workers have more likelihood of working longer or being re-employed if there are skills or labour shortages (Karpinska, Henkens and Schippers 2011). Reflecting this in Australia, relatively low unemployment since the 2007 GFC has seen a substantially greater increase in labour market participation of the 55-to-64 years age groups (Mountford 2011, 167). One occupation suffering a labour and skills shortage is nursing. The worldwide shortage of registered nurses (Blake 2010) is compounded by many years of low intake so that the average age of nurses in Australia is around 50, with 12 per cent aged 60 or more (McDonald 2010). The nursing shortage has stimulated some research into workers’ retirement and retention attitudes in hospital set- tings. For example, Kuhar et al. (2004) found the top retention strategies for nurses over 56 years of age were co-worker support, teamwork, retirement benefits, adequate equip- ment, an open-door policy, shift choice, respect from doctors and administrators, and educational opportunities. Armstrong-Stassen (2005) found that the most important HR activities for nurse retention (other than flexible work options) were compensation, recog- nition and respect, job design, and training and development. Fewer than 10 per cent of Hélène Mountford © 2012 Australian Human Resources Institute 273 registered nurses (RNs) reported their hospitals were engaged in any of these activities. Other research has found older nurse retention is assisted through organisationally sup- ported HR practices, supportive and fair supervisors and a hospital which values their contribution and cares about their well-being (Armstrong-Stassen and Schlosser 2010; Skinner et al. 2011). The relationships developed with supervisors are a significant con- tributor to nurse satisfaction and loyalty (Brunetto, Farr-Wharton and Shacklock 2011) and high levels of support from management, particularly supervisors, improves nurses’ morale and commitment also aids retention (Brunetto, Farr-Wharton and Shacklock 2010). The studies of nurses in hospitals may have limited applicability in aged care facilities (ACFs) where working conditions differ, notably, that staff is not rostered on rotating shifts over which they have no choice. However, there are numerous similarities such as increased workloads, job redesign and more equipment so that the reported demands of hospital nurses may well be reflected by ACF staff. Unfortunately, there has been little research into direct care workers in ACFs in Australia or overseas (Harley, Sargent and Allen 2010; Jeon et al. 2010), and most of the limited literature concentrates on registered nurses not personal carers (PCs), the largest group of staff in ACFs. Some research is based on the first comprehensive survey of ACFs and direct care workers for the federal Depart- ment of Health and Ageing in 2003 (Flavel 2007; Healy and Moskos 2005; King and Martin 2009; Martin 2005, 2007; Richardson and Martin 2004), a 2007 survey (Martin and King 2008) and a large survey of ACF carers (Moskos and Martin 2005). But most reports are aimed at establishing ACF staffing information and working conditions not HR strategies. It is believed that this paper is the first qualitative study based on personal interviews to investigate the application of HR strategies aimed at the retention of direct care workers in ACFs using as its base the expressed desires in the older worker employee literature. Method This is a qualitative study. Twenty facility managers (FMs) and 20 personal carers (PCs) were interviewed separately. The FMs were registered nurses and the PCs were permanent older workers. Interviews were semi-structured with the first half of the FMs’ questions providing statistical data on their ACF and staff, and the second half focusing on retention policies, strategies and practices. The PCs’ questions were primarily complementary to the FMs’. Both groups were given considerable latitude to express their views. The interviews were conducted at the ACFs, which were located in the northern, north-western and inner-city suburbs of Sydney, Australia. The FMs’ interviews, which were 1 to 1.5 hours long, were recorded, transcribed verbatim by a paid professional and analysed by the inter- viewer using NVivo software based on human resource management (HRM) retention themes. The shorter interviews of 30–40 minutes with PCs, who were aged 45 years or more, were similarly transcribed and analysed. Each group of FMs and PCs, by coinci- dence, comprised 18 women and two men. The ACFs were selected at random with no Asia Pacific Journal of Human Resources 51 © 2012 Australian Human Resources Institute274 knowledge of their corporate structure or size. Ten were for profit and 10 were not; most of the latter were operated by religious charities. Research on the facilities, their corporate structure, a large number of official reports on ACFs, and nursing and ACF literature was not undertaken until after transcription. This ensured the interviews were undertaken with no prior knowledge or preconception of the industry or its HR practices. This research was conducted in July and August 2010. The time available and geo- graphical constraints of the study limit its sample and size, which consequently influence the data collected. The aged care facilities and FMs were selected at random, but the PC interviewees were nominated by their FMs who, after their own interview, searched their roster to see which over 45-year-old PCs were working and may have time to be inter- viewed. Because of the selection method and the size of the sample, it is not possible to claim this group as typical of all PCs. As well, they were not representative in two particu- lar aspects of the study, i.e. half worked full-time, nine permanent part-time (PPT) and one was casual, which is contrary to the FMs’ estimates and industry research which puts PPT at about 80 per cent. As well, unlike estimates given by FMs of an average of 83 per cent non-English speaking background (NESB) PCs in their facilities, only 11 of this sample were NESB and nine were Australian born. However, the interviews obtained rich and in-depth data, reaching the point of saturation. Triangulation was achieved through separate interviews of FMs and PCs, and investigation of the ACFs’ web pages, govern- ment and industry association information and reports. The interviewees’ names have been changed for their anonymity. When quoting the FMs, the number of years they have worked in aged care is also included to indicate the length of their experience. This experience does not include previous years spent in other nursing positions such as hospitals or community nursing. Where PCs are quoted, their chronological age is included because they were interviewed as older workers. The aged care facilities Australian residential aged care is an industry that provides generally only basic pay for its direct care workers – registered nurses (RNs), enrolled nurses (ENs) and personal carers (PCs). It is expected to be a growth industry as the baby boomers age and need full-time care. The number of Australians aged 85 and over is projected to more than quadruple to 1.8 million between 2010 and 2050 and the number of direct care workers will need to more than quadruple to 598 000 in 2050 (Productivity Commission 2011, E40). Aged care is already suffering from a skills and labour shortage, not only of nurses as previously mentioned, but also of PCs, as older workers retire and immigration policies place growing emphasis on skilled workers, restricting the numbers of unskilled migrants, a major labour supply for ACFs. As well, work visa restrictions for international students and the dominance of permanent part-time work requires ACFs to have a large number of PCs on its staff to make full-time equivalents. ACFs generally have a higher proportion of older workers than most other industries (Martin and King 2008). The 20 nursing homes in this study employed an average of 40 per cent older workers (aged 45 and over) com- Hélène Mountford © 2012 Australian Human Resources Institute 275 pared with a national average of 60 per cent older workers in 2007 (Martin and King 2008), with some care staff in the study aged up to 75 years. The majority (average 77\%) of direct care staff were employed on a permanent part-time basis (PPT). Neither manag- ers nor staff believed there was any age discrimination in employment, and a variety of flexible work and retirement options were readily available. On average nearly half of the RNs and 83 per cent of PCs in this study were from non-English speaking backgrounds (NESB) (see Table 1). This proportion is much higher than a 2007 national survey which estimated one- third were migrants (Martin and King 2008). However, migrants in aged care are substan- tially concentrated in metropolitan areas (Fine and Mitchell 2007) which is where this study took place. Fourteen of the nursing homes had between 80 per cent and 99 per cent NESB PCs while no facility had less than 50 per cent. The high level of NESB care staff in this study reflects the reliance of this group of nursing homes on international students in the younger age group, and older permanent migrants. The younger international student PCs are restricted to 20-hour-a-week work visas. A growing number of NESB RNs reflects the general RN shortage. More than 30 different countries of birth were nominated for direct carers in this research (see Table 2). Many of the migrant PCs are qualified in health-related areas in their home countries, but their qualifications are not recognised in Australia. Often they cannot afford to pay for training to qualify locally. Prior experience can be advantageous, but practice standards vary between countries. Most direct care staff are from developing countries and their Table 1 Proportion of NESB direct care staff in this study Average \% Highest \% Lowest \% RNs 42 95 0 PCs 83 99 50 Table 2 Countries of origin of migrant personal carers Afghanistan Africa (countries unspecified) Armenia Belgium Burma China Croatia Denmark Ecuador Fiji France Ghana Greece India Japan Lebanon Malaysia Malta Middle East (countries unspecified) Nepal Pakistan Papua New Guinea Philippines Romania Samoa Solomon Islands South Africa Spain Syria Thailand Tibet Tonga Source: author’s interviews with facility managers and direct care staff. Asia Pacific Journal of Human Resources 51 © 2012 Australian Human Resources Institute276 culture includes home care for family members, as nursing homes are almost non- existent. As a consequence, many have had experience caring for elderly relatives. The worldwide nurse shortage has encouraged some facilities to sponsor RNs on employer-sponsored work visas for four years, either importing them from countries where their qualifications are recognised, or sponsoring international students locally after they have finished a nursing degree. Locally sponsored nurses came from a variety of Asian countries such as Thailand, China, Korea and India. Zimbabwe is a common country of origin for qualified staff. One facility imported 15 RNs from South Africa six years ago. It provided a large amount of support for them and their families. Ten were still with the organisation and had become permanent residents. The same facility was about to sponsor four more nurses from overseas and many other facility managements were considering the move. Despite aged care being female dominated, there are small numbers of male FMs, RNs and PCs. The average gender split between care staff was 85 per cent female and 15 per cent male. Two homes employed 30 per cent male PCs but were unable to nominate any specific reason for their (relatively) high count. New staff often join a facility on the rec- ommendation of existing staff (‘ethnic networks’ according to Mahuteau and Junankar 2008), so it is likely that male staff recommended the facility to friends and the male staff- ing ratio snowballed (Khatutsky, Wiener and Anderson 2010). The male staff are over- whelmingly immigrants with non-English speaking backgrounds. The dominant nationality in this study was Nepalese and these staff members were highly praised for their skills. Too many male staff can cause problems with older female residents (the majority of ACF residents are female) when it comes to intimate care. However, not one FM had declined to hire a care worker because of their gender or age. The next section discusses the supportive work practices found in this study based on the employee literature and are divided into the four main groups outlined above: a sup- portive work environment, recognition of skills, training with career paths and the oppor- tunity to pass on knowledge. Individually, they may be present in organisations to a greater or lesser extent, but together as supportive work practices, they create a work place environment that helps retain older workers. Supportive work practices Supportive work environment A supportive work culture is key to many practices that help retain older workers through making them feel valued and heard while experiencing a sense of independence and autonomy (Armstrong-Stassen and Schlosser 2010; Timmons et al. 2011). A supportive environment contributes to the high level of satisfaction that many direct care workers personally gain from the work, and that is a significant contributor to performance and retention (Hogan, Moxham and Dwyer 2007; Jeon, Merlyn and Chenoweth 2010). While job satisfaction is reduced by the increasing workloads in aged care, it can be mitigated by both supervisor and co-worker support (Chou and Robert 2008). Hélène Mountford © 2012 Australian Human Resources Institute 277 In ACFs this supportive environment is reflected many different ways, from thank you notes to above-award wages, from modified work methods to retirement planning. ACFs supply a supportive working environment organisationally, through supervisor empathy and co-worker support. Examples of a supportive environment considered here are the management/supervisor relationship, co-worker support, job and equipment redesign, and rewards. Management/supervisors While organisations determine the implementation and administration of human resource policies, it is individual supervisors who manage the practices. All of the most important predictors of aged care worker satisfaction are primarily determined by how work is organised, which is largely under the control of FMs (Martin 2007). FMs are experienced RNs who have ‘risen through the ranks’ to become managers of a single facility. While they report to senior corporate or charity staff, or in the case of sole operators, directly to their boards, they have considerable discretion on how they run their operation on a day-to-day basis. While PCs are directly answerable to RNs on the floor in clinical matters, FMs or deputy FMs are the PCs’ supervisors for all administra- tive matters, such as flexible rostering, holidays and rewards. As RNs, FMs are in the ‘people business’, as are their staff. The occupation attracts caring or nurturing individu- als both at the RN and PC level. FMs develop relationships with their direct care workers. We do tend to be people persons, and we pride ourselves on having good relationships with our staff as managers. (FM Margaret, in aged care four years) The relationships FMs build with their staff leads to trust and loyalty. Trust has numerous benefits for an organisation such as superior work performance, organisational citizenship behaviours, organisational commitment, satisfaction and group performance (Ferrin and Dirks 2003). Trust also influences important behaviours such as absenteeism, turnover and job performance (Neves and Caetano 2006). Research also indicates that older super- visors are more supportive of older workers (Armstrong-Stassen and Lee 2009). In ACFs FMs are often similar ages or older than many direct care workers. To facilitate the relationships, all FMs had open-door policies, not just allowing but encouraging staff to express their views whether they be about personal circumstances or work practice improvements. According to Timmons et al. (2011), open-door policies are critical to workplace policy development for older workers. We have an open-door policy here and I find that staff just fall in the office and blurt out what- ever it is, or they’ll come in and shut the door and tell you, but I’m very visible. (FM Liz, in aged care 11 years) I would say that the staff, like the people that you work with, are very supportive and friendly and the management is very supportive and you know if you’ve got any concerns they’re very approachable. (PC Marg, aged 52) Asia Pacific Journal of Human Resources 51 © 2012 Australian Human Resources Institute278 Co-workers ACFs were often described by staff as families or communities, and colleagues as friends, adding to the supportive environment. Direct care workers not only care for their resi- dents but also for their co-workers (King and Martin 2009). The work relationships gener- ate and sustain emotional well-being which is particularly important in care work which uses high levels of emotional labour (King and Martin 2009). I think a lot of it is the relationships that are formed within the facility. Relationships with the residents, with other staff members, it becomes like an extended family and I think that’s mainly why people stay. (FM Elizabeth, in aged care 21 years) The only thing is, that’s why I stay here longer, the management and then the nurses, you know, the other staff members that are nice, they are very good, you know. The more you know them the longer the friendships and relationships are getting closer. (PC Maria, aged 57) Direct care workers not only like the people they work with, but like the way work is carried out (Moskos and Martin 2005). This is usually in teams of two or more which rotate around sections of the ACF. Moskos and Martin (2005, 18) found in a large survey of direct care workers that appreciation of supportive co-workers increased with age to peak at 61 per cent for staff aged 65 and over. Engagement has been found to increase when workers are satisfied with their co-workers, particularly when both are over 55 (Avery, McKay and Wilson 2007). Job redesign Experienced staff are in demand and FMs aim to retain them as long as possible. If age or infirmity affects their performance they may be offered fewer shifts, shorter shifts, an alter- native shift with a lighter load, or a different role, such as quality management documen- tation or activities for residents. I’ve redesigned her position to fit in with quality management. She won’t be getting a pay rise for it though. She loves that kind of work, she’s a systems person, you work with the talent that you’ve got. (FM Gail, in aged care 17 years) Some PCs planning to reduce their physical workload consider up-skilling to qualify to give medications or dress wounds. Even though there’s a no-lifting policy, still it can be hard work, so as I get older that would probably be a bit easier for me, you’re doing paper work and dressings, going towards that direction, that’s one of the reasons I did [Certificate 4] so that I could stay in aged care as I get a bit older. (PC Amelia, aged 50) Equipment The workload for all direct carers has increased in the last decade. The growth of home care services has delayed many residents’ entry into ACFs until they are older and frailer and often have complex and multiple degenerative conditions (McDonald 2010). Hélène Mountford © 2012 Australian Human Resources Institute 279 People are coming in later, because they’ve got packages in the community and are maintained to a certain level, but now they’re coming in with technical issues, very clinically technical issues, which need to be dealt with, advanced dementias and the like. (FM Liz, in aged care 11 years) Consequently, direct care staff, particularly older workers, benefit from improvements in work methods and equipment and increased availability of equipment. Mandatory no-lift policies are wide spread. Residents need to be lifted by equipment, ‘people lifters’, and mostly by two staff, not one. Electric, instead of wind-up beds, are particularly appreciated and are standard in new facilities. Older homes are staggering their introduction. New chair and door sensors alert staff to unexpected resident movements and many ACFs are assessing computerisation for clinical reporting to reduce paperwork. Medication trolleys have been made smaller, lighter or motorised, and deliveries of paper and chemicals made smaller, therefore lighter, but more frequent. Linen bags have been downsized. Although some changes have resulted from a growing awareness of ageing staff needs, others have been introduced to reduce occupational health and safety (OH&S) risks. I believe we really need to look at how we’re going to meet the needs of our ageing workforce because they are going to become more prone to injury ... so we need to look at what equip- ment we need, what procedures, policies, processes we’re going to need to actually bypass some of these risk factors, ’cos otherwise we’ll be paying workers comp like nobody’s business. (FM Elizabeth, in aged care 21 years) Staff are regularly trained in the use of the equipment and reminder instructions are often located near residents’ beds. Effective equipment and sufficient quantities of it are appre- ciated by PCs. Appreciation and rewards ACFs have a wide variety of staff benefits which aid retention. They range from formal awards nights, through a pair of movie passes to a small thank you note – what Timmons et al. (2011, 129) call a continuum from ‘hard’ traditional benefits to ‘soft’ informal prac- tices. While some benefits are formalised in HR policies, many are not and are distributed at the discretion of the FM. The former category includes a variety of leaves – carers’, maternity, paternity and grandparents’ – longevity awards, pay loadings, packaged benefits plans, enforced OH&S rules and Christmas bonuses or substantial presents. The informal group includes regular BBQs and bought-in meals, celebrations for special days, birthday flowers, chocolates or presents and cards, and a variety of small gifts for one-off recogni- tion (see Table 3). The small gifts applaud staff efforts ‘above and beyond’ what is expected. For example, one site with multiple facilities gave each manager a ‘small bucket of money’ to purchase staff rewards at the manager’s discretion. This money was not accountable. Other FMs did not have budgets for ‘appreciation gifts’ so bought them with their own funds. Probably every third month we have a pizza night or something and just give them a bit that way and we’re just about to do a reward recognition gift. We give a gift in the middle of the Asia Pacific Journal of Human Resources 51 © 2012 Australian Human Resources Institute280 year and it’s just to make sure that they know what they do matters, even though there is no budget. I’d love to give each person $100 just because, but we can’t, so we give them a little trinket, something, a little saying, a little card ... (FM Michael, in aged care seven years) I just give movie passes basically, mentions in meetings is huge, going up and saying thank you, that sort of thing. (FM Liz, in aged care 11 years) The FMs are aware of the effect on morale and productivity of these small tokens of appreciation. They know I appreciate them and I get that back in spades, simple as that. They all get a card for their birthday and some scratchies [instant lottery tickets]. Nothing big, but they know that they’re appreciated. (FM Nicola, in aged care 24 years) Table 3 Staff benefits in ACFs Formal Above-award payments Bonuses Carer’s leave Education: in-service and external Education scholarships Extra week’s leave for over 45 year olds Grief counselling In charge, on call loadings Length of service recognition No lift policy Packaged staff benefits plan including discounts for health fund, telecom, cable TV, computer purchase Paid maternity, paternity leave Rostered day off (full timers) Salary packaging (charities only) Shift allowances Staff awards night Staff newsletter Strict enforcement of … Career Development International Generation Y and career choice: The impact of retail career perceptions, expectations and entitlement perceptions Jessica L. Hurst Linda K. Good Article information: To cite this document: Jessica L. Hurst Linda K. Good, (2009),Generation Y and career choice, Career Development International, Vol. 14 Iss 6 pp. 570 - 593 Permanent link to this document: http://dx.doi.org/10.1108/13620430910997303 Downloaded on: 09 October 2015, At: 02:58 (PT) References: this document contains references to 66 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 8138 times since 2009* Users who downloaded this article also downloaded: Carolyn A. Martin, (2005),From high maintenance to high productivity: What managers need to know about Generation Y, Industrial and Commercial Training, Vol. 37 Iss 1 pp. 39-44 http:// dx.doi.org/10.1108/00197850510699965 Jenna Luscombe, Ioni Lewis, Herbert C. Biggs, (2013),Essential elements for recruitment and retention: Generation Y, Education + Training, Vol. 55 Iss 3 pp. 272-290 http:// dx.doi.org/10.1108/00400911311309323 Adelina M. Broadbridge, Gillian A. Maxwell, Susan M. Ogden, (2007),13_2_30: Experiences, perceptions and expectations of retail employment for Generation Y, Career Development International, Vol. 12 Iss 6 pp. 523-544 http://dx.doi.org/10.1108/13620430710822001 Access to this document was granted through an Emerald subscription provided by emerald-srm:451335 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) http://dx.doi.org/10.1108/13620430910997303 Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) Generation Y and career choice The impact of retail career perceptions, expectations and entitlement perceptions Jessica L. Hurst Department of Apparel, Educational Studies, and Hospitality Management, Iowa State University, Ames, Iowa, USA, and Linda K. Good Department of Advertising, Public Relations, and Retailing, Michigan State University, East Lansing, Michigan, USA Abstract Purpose – The transition from higher education to employment is a major life change for many college seniors (currently, the Generation Y cohort). The purpose of this paper is to enhance the understanding of Generation Y and to present new insights regarding Gen Y’s retail career expectations, perceptions of retail careers, future psychological contract/entitlement perceptions of retail careers, and career exploration of the US retailing industry. Design/methodology/approach – Utilizing quantitative research methods via an on-line survey, the authors examined 193 Gen Y college seniors’ retail career perceptions and expectations, and explored the influence these factors have on future psychological contract/entitlement perceptions of employer-employee obligations and retail career exploration from nine US universities. Findings – College seniors’ pre-entry retail job expectations, perceptions of retail careers, and future psychological contract/entitlement perceptions of employee obligations were significant predictors of career exploration; college seniors’ preconceived notions of retail careers, combined with what they feel they would owe their future employer, are instrumental in determining retail career exploration decisions. Research limitations/implications – Findings suggest directions for university faculty, academic advisors, and industry practitioners on facilitating college seniors’ transitions from higher education to the world of work by suggesting recruitment strategies that can attract, retain and motivate Gen Y. Originality/value – The findings provide useful criteria for organizational development strategies to assist with the transition from higher education to the workforce and may also improve the success of recruiting Gen Y employees. In addition, the conceptualization of psychological contracts (i.e. entitlement perceptions) differentiates this study from prior psychological contract research. Keywords Retailing, Perceptions, Careers, United States of America Paper type Research paper Introduction The retail industry is one of the largest employers in the USA (Bureau of Labor Statistics (BLS), 2008-2009). In an industry that has approximately 4.4 million employees, retailers face the continual challenge of attracting, recruiting and retaining a competent workforce (Knight et al., 2006). This challenge is magnified by the prediction that the retail workforce is expected to increase by 7 percent between 2006 and 2016 (Bureau of Labor Statistics (BLS), 2008-2009). The current issue and full text archive of this journal is available at www.emeraldinsight.com/1362-0436.htm CDI 14,6 570 Received 15 April 2009 Revised 24 June 2009 Accepted 8 July 2009 Career Development International Vol. 14 No. 6, 2009 pp. 570-593 q Emerald Group Publishing Limited 1362-0436 DOI 10.1108/13620430910997303 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) Compounding the problem is the fact that employee turnover in retailing continues to grow. According the US Department of Labor, Bureau of Labor Statistics (BLS) (2007) the retail industry’s voluntary turnover rate of 34.7 percent is one of the highest of any industry. One reason retail employment has higher turnover rates than other industries, is that by nature, they are boundary-spanning positions; they require a great deal of interaction beyond their own department or company. Retail management positions must interact with numerous contacts including vendors, media executives, supervisors, sales personnel, corporate executive, and customers. Communicating with those diverse constituents often leads to high levels of role conflict and ambiguity, which often result in turnover (Kahn et al., 1964). Additionally, both the Bureau of Labor Statistics (BLS) (2006) and the Employment Policy Foundation (EPC) (2005) report that turnover rates are usually higher for industries that employ a younger-than-average workforce, like retailing. Many of these younger employees are employed part-time while they are finishing their college degree, and as a result, often develop negative perceptions of retail careers (Broadbridge et al., 2007; Knight et al., 2006; Broadbridge, 2003a). Swinyard (1981) and Swinyard et al. (1991) confirmed the negative perceptions of retail careers among college students enrolled in marketing courses. Even though students who took retail courses described retail careers more positively than those who did not, over time, even those students stated that retail careers were less appealing than other business-related careers (e.g. finance, accounting). This may explain why college students who have completed a retail-related degree and have retail work experience often choose not to pursue a career in retailing. Broadbridge (2003b) found that students with retail work experience were three times more likely to affirm they would not choose a career in retailing, compared to those with no retail work experience. Thus, a great deal of misunderstanding about careers in retailing can be attributed to previous job experiences (Broadbridge, 2003a). Competition is keen for the brightest candidates in the talent pool; therefore, our research seeks a deeper understanding of the following research questions: What perceptions and expectations of retailing as a career option are held by Generation Y college graduates and how can we increase the likelihood of attracting high quality candidates for retail careers? Since college students often form their perceptions and expectations based on previous job experiences, retailers are clearly missing an opportunity to convey to their part-time employees/students the benefits of a long-term career in the retail industry. In addition academicians seek ways to provide realistic expectations for the transition from school to work, for the next generation (i.e. Generation Y). Aims of the current study To identify new insights regarding Generation Y’s retail career expectations and perceptions, to better prepare Generation Y for the transition from higher education to the world of work, and to enhance our understanding of this generation, our research focuses on graduating college seniors who fall within the birth date range of Generation Y cohorts (1980-2003). Our model (see Figure 1) presents the variables we examine, which include: pre-entry retail job expectations, perceptions of retail careers, supervisory support, future psychological contract/entitlement perceptions of employer-employee obligations, and career exploration. Understanding the Generation Y and career choice 571 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) relationships between these variables is important for educators as they prepare students for retail careers; by helping students formulate career expectations and by increasing the accuracy of student perceptions, job fit is more likely (Backhaus, 2003). In addition, educators and practitioners can determine why some students who prepare for retail-related careers choose to leave a company before they have established themselves and their career. To explain how we arrived at our model, we begin by reviewing the literature on career transition phases, followed by an examination of the characteristics of Generation Y. Then we provide a brief review of literature relevant to the constructs presented in the path model (see Figure 1) and use the model as a framework to propose hypotheses. Career transition phases: from academia to full-time employment The transition from college to the world of work is a major life change for many college seniors, during which they face the complex demands of the economy; of a challenging, highly competitive job market; and of an increasingly diverse population and work-force. The transition from higher education into employment warrants particular attention because it represents a critical threshold between adolescence and adulthood. Students invest a great deal of their time, energy, and resources in obtaining a higher education degree; hence, they have high expectations regarding their future careers and employment status (Wood, 2004). However, as Keenan and Newton (1984) stated, it is common for graduates to have negative reactions to their initial post-college employment, partly due to inflated expectations (often fostered during recruitment). To bridge the transition gap, it is important to gain a clearer understanding of student career expectations and perceptions, and the influence these have on career choice. Career transition from higher education to employment consists of three phases: preparation/anticipation, encounter, and adjustment/stabilization (Nicholson and Arnold, 1989). The preparation/anticipation phase relates to readiness for change and steps that can be taken to help prepare for such change. The encounter phase deals with the shocks and surprises of new circumstances or demands and identifies the necessary coping mechanisms. The adjustment/stabilization phase involves the Figure 1. Proposed path model for college students CDI 14,6 572 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) http://www.emeraldinsight.com/action/showImage?doi=10.1108/13620430910997303&iName=master.img-001.jpg&w=326&h=168 challenge of evaluating and minimizing any misfit between person and situation, either by changing to absorb the new demands, or by preparing for the next work-role transition. Although it is important for educators to prepare students for their future career prior to this work-role transition, it is equally important for employers to ensure that this transition is smooth through all three phases. For retail-related careers, the transition process is often complex. In addition to being boundary spanners, to perform at expected levels, these entry-level employees must possess a high level of confidence in their competence to achieve peak performance across a range of tasks. Research suggests that supervisory support (e.g. appreciation, consideration, feedback) plays a vital role in reducing role stress (Wolken and Good, 1995), increasing job satisfaction (Dubinsky and Skinner, 1984), and enhancing employee recruitment and retention (Babin and Boles, 1996). Furthermore, employers face great challenges in gaining the commitment of younger and first-time (i.e. entry-level) employees. Employees bring to the workplace their own set of values and expectations. Therefore, employers that adjust their human resource strategies to be more flexible and potentially accommodating to employee values, will more likely attract available talent, and ultimately become the workplace of choice (Lowe and Schellenberg, 2002). To adjust their strategies, employers must recognize and, ideally, accommodate generational differences that may distinguish individuals they have hired in the past from the new labor pool. Characteristics of the next generation of new hires: Generation Y College recruiters continually monitor generational cohorts to identify changes that are necessary to maximize the likelihood that they employ recruitment strategies that will give them a competitive advantage. The next wave of employees to transition into the workforce will be graduating college seniors, the majority of which fit into the category of “Generation Y” (birth date range: 1980-2003). Generation Y is estimated as 76 million Americans, or 15 percent of the current workforce (Eisner, 2005). Generation Y was raised in a time of economic expansion and prosperity, and is maturing in an era of economic uncertainty and increased violence; about 16 percent of Generation Y grew up or is growing up in poverty (Raines, 2002). Because Generation Y has seen more hardships and tragedies at an earlier age than prior generations (e.g. Columbine, 9/11, the Iraq war, Hurricane Katrina; Sujansky, 2004), they reflect some values held by “Greatest generation” (birth date range: 1925-1945). Like the “Greatest generation”, Generation Y has a strong sense of morality, tends to be patriotic, is willing to fight for freedom, is sociable, and values home and family. Generation Y tends to want an intellectual challenge, needs to succeed, strives to make a difference, and seeks employers who will further their professional development (Brown, 2004). Setting and achieving personal goals matters to Generation Y cohorts, as does performing meaningful work that has the potential to contribute to a better world. Making a great deal of money appears to be less of a motivator for this generation, whereas contributing to society, parenting well, and enjoying a fulfilled and balanced life appears to be more motivating (Allen, 2004). The Generation Y cohort is accustomed to being active in family decisions. Thus, they are more likely to expect a similar amount of authority or ability to contribute to decisions in employer organizations (Johns, 2003). In the workplace, Generation Y Generation Y and career choice 573 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) favors an inclusive style of management; they tend to dislike slowness, and desire immediate feedback about their performance (Francis-Smith, 2004). This globally aware, socially conscious, and volunteer-minded generation is likely to perform best when their abilities are identified and matched with challenging work that encourages them to reach their full potential (Martin and Tulgan, 2006). Those individuals who experienced high levels of mentoring and support in high school and college may be surprised by the lack of personalized attention and mentoring at work, which may make their transition from full-time student to full-time employee much more difficult. These new workforce entrants will seek more personal attention, require high levels of supervision, and expect more structure than their Generation X predecessors (Zemke et al., 2000). The limited empirical work that compares generations does so in the context of strategically managing multiple generations within a company and there is lack of consensus regarding whether generational differences impact workplace attitudes and behaviors (Sullivan et al., 2009). However, our study examines a generational cohort (i.e. Gen Y) from the recruitment perspective and we found no studies attempting that focus. Related literature, proposed path model, and hypothesis development Pre-entry retail job expectations Prior to starting any job, potential employees form expectations of what the job will be like. This anticipation of what will happen is preconceived, based on existing work and life experiences, career aspirations and dreams, and personal characteristics (Woods, 1993). Research shows that when work experiences parallel career expectations, employees are more satisfied with their jobs and career choices (Igbaria et al., 1991). To gain further insight into the factors that influence career choices, it is important to understand the relationship that pre-entry expectations play in the career decision-making process. If retailers had a more concrete understanding of what Generation Y college seniors expect in their retail-related careers, they may be able to minimize the gap between met and un-met expectations, and curtail the negative perceptions (e.g. low pay, long hours, dead-end jobs, inflexible schedules) often associated with a career in a service industry such as retailing (Knight and Crutsinger, 2003). College seniors today have well-formulated expectations regarding retail careers (Knight et al., 2006). In a study regarding retail work experience and industry expectations, Knight and Crutsinger (2003) found that those college graduates who were planning to pursue a career in retailing, and who were currently employed in retail stores (at least part-time) expected enjoyable work, a sense of accomplishment, good pay, and opportunities to develop new skills. Future supervisory support expectations One specific type of pre-entry expectation is the role of the supervisor. Supervisory support is the degree to which employees perceive that their supervisor will provide direction, encouragement, and mentoring. During college, many students are employed in part-time retail jobs that provide minimal supervision, leaving them without role models to provide direction and to promote the development of positive and valuable work traits and habits (Schneider and Stevenson, 1999). Lack of proper supervisory CDI 14,6 574 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) support can result in an untrained, unmotivated workforce, and is a potential cause of increased absenteeism, low morale, poor customer service, and increased employee turnover (Knight and Crutsinger, 2003). Conversely, a workplace with high levels of supervisory support can positively impact job performance, job satisfaction, and intent to stay (Hom and Kinicki, 2001). New hires inevitably experience many ambiguities and conflicts regarding their job duties, co-workers, and supervisors. In their study of 261 full-time food service workers, Babin and Boles (1996) found that increased perceptions of supervisory support reduced employee role conflict and role ambiguity, and increased job satisfaction. In addition, Jamrog (2002) found that the supervisor was the key influence on whether or not young employees remained with the company. Thus, supervisory support is critical because employees value workplace support (Ray and Miller, 1991). According to focus group research, college students often related positive part-time work experiences with supervisors who were professional and knowledgeable (Knight and Crutsinger, 2003). Conversely, students who had negative work experiences and were not considering a career in retailing often mentioned that supervisors were unprofessional and lacked managerial training. This implies that to be satisfied with a retail career, college students expect their supervisors to be professional, knowledgeable, respectful, and supportive. These preconceived expectations regarding supervisory support will inevitably contribute to future job entitlement perceptions, especially regarding what students feel they owe their future employer and what their future employer owes them. Perceptions of retail careers Swinyard (1981) was the first scholar to research the appeal of retailing as a career and his work is a benchmark for future comparisons (Broadbridge, 2001, 2003a; Commins and Preston, 1997; Swinyard et al., 1991). Swinyard’s results confirmed that a negative perception of retailing as a career prevails (Rhoads et al., 2002; Swinyard, 1981; Swinyard et al., 1991). Often, students’ perceptions of retailing as a future career are based solely on their experiences as consumers or part-time employees (Broadbridge, 2003b). Moreover, research suggests that students do not fully understand what a job in retailing entails (Broadbridge, 2003b; Commins and Preston, 1997; Swinyard, 1981; Swinyard et al., 1991). According to Swinyard (1981) and Foresight (2001), perceptions of retail careers appear to also be influenced by a company’s image and type of retail sector, with some sectors (i.e. department stores; specialty and designer boutiques) more highly rated by students as preferred career destinations than others (i.e. grocery, home improvement and other do-it-yourself sectors). Furthermore, many young people accept or reject a particular career based on personal work experience or part-time employment (Hodkinson, 1995). Regardless of students’ reasons for working in the retail sector, their perceptions of these experiences will be essential in determining the appeal of retailing as a potential future career. Retailers must be able to attract, recruit, and retain a skilled workforce to successfully compete in the twenty-first century marketplace, yet many retailers face major obstacles in recruiting talented college graduates due to negative perceptions (Swinyard, 1981; Swinyard et al., 1991). Additionally, Broadbridge (2003b) stated that personal work experiences could either help strengthen or attenuate positive perceptions of choosing retailing as a career. Thus, we hypothesize the following: Generation Y and career choice 575 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) H1. College seniors’ pre-entry retail job expectations will have a positive impact on their: perceptions of retail careers; and future supervisory support expectations. Future psychological contracts: entitlement perceptions of employee – employer obligations Psychological contracts relate to individuals’ beliefs in a mutual obligation between themselves and another party (e.g. an employer or supervisor). These contracts develop when individuals presume promises (e.g. employment opportunities or promotions), the presumption of which causes them to believe in the existence of a reciprocal obligation between them and the other party (e.g. accepting an employment offer or a promotion; Rousseau, 2000). In other words, psychological contracts are beliefs about what individuals feel they owe their employer; these beliefs develop via an interactive process that often begins during the recruitment process (Rousseau, 1990). Our conceptualization of psychological contracts differentiates our study from prior psychological contract research in two major respects. First, because the college students in our study have not yet begun their first full-time jobs post-graduation, we conceptualize their psychological contract perceptions to be equivalent to their entitlement perceptions of employer – employee obligations. According to organizational psychologist Ben Dattner (iSixSigma, 2003), the phenomenon of employee entitlement can be traced back to a faulty psychological contract between the organization and the employee. Entitlement is a “perceived right to demand” that can manifest in various ways, such as employees who expect bonuses for accomplishing simply the basics outlined in the job description, or employees who fail to meet sales goals, but demand bonuses anyway. As a result, privileges become rights, and perks lose their power to motivate and improve performance (Wellner, 2004). Using this logic, entitlement perceptions act as a surrogate for psychological contracts. Entitlement perceptions of employer obligations captures the essence of what college seniors feel their employer would owe them, and entitlement perceptions of employee obligations captures what they feel they would owe their employer. Second, as previously stated, pre-entry expectations are based on prior experiences. Therefore, college graduates take preconceived expectations to their first post-graduation job. And, because these pre-entry expectations contribute to their entitlement perceptions, we conceptualize pre-entry expectations to be an antecedent of entitlement perceptions (see Figure 1). As newcomers become socialized into the organization and their current experiences replace expectations, the influence of their pre-entry expectations is assumed to diminish (Sutton and Griffin, 2004). To more fully understand how new hires revise their psychological contracts over time, it is important to first consider the entitlement perceptions of potential new hires prior to starting their first full-time jobs. Therefore, to broaden our knowledge of how retailers can acquire quality employees from among college seniors, it is necessary to examine entitlement perceptions and the relationship they have with pre-entry expectations, future supervisory support expectations, and career exploration. We propose the following hypotheses: H2. College seniors’: pre-entry retail job expectations; future supervisory support expectations; and perceptions of retail careers will have a positive impact on their entitlement perceptions of employer obligations. CDI 14,6 576 D ow nl oa de d by M on as h U ni ve rs it y A t 02 :5 8 09 O ct ob er 2 01 5 (P T ) H3. College seniors’: pre-entry retail job expectations; future supervisory support expectations; and perceptions of retail careers will have a positive impact on their entitlement perceptions of employee obligations. Career exploration Career exploration is “the process of generating and assimilating career information relating to self and the world of work” (Atkinson and Murrell, 1988, p. 374), and is a pivotal element in any career-related decision-making process (Jepsen and Dilly, 1974; Thoreson and Ewart, 1976). Individuals typically obtain career information through self-exploration of values, interests, skill strengths and weaknesses, and environment exploration (Noe, 1996). Thus, it is important for individuals to recognize how their own personal values, wants, needs and interests could influence future career choices. Furthermore, to gain a more comprehensive exploration of the self and world of work, it is important for individuals to seek career-related information and try different work roles to form personal experiences regarding potential careers. This career exploration process helps individuals generate an appropriate quantity or quality of information, on which a sound career decision can be made (Atkinson and Murrell, 1988). Individuals who gather and use career-related information to assist in their career decision-making process are more likely to choose a suitable career (Osipow, 1983). In addition, career exploration is expected to occur in persons who wish to successfully advance in their careers (Phillips, 1982). In sum, career exploration results in increased knowledge of career opportunities and a greater awareness of what skills and behaviors are necessary for career success (Noe, 1996). Consequently, we posit that information and experiences gathered by college seniors via the career exploration process will be influenced by their expectations and perceptions regarding a particular career (retailing). Thus, we hypothesize the following: H4. College seniors’: pre-entry retail job expectations; perceptions of retail careers; entitlement perceptions of employer obligations; and entitlement perceptions of employee obligations will have a positive … ATTRACTING AND RETAINING TALENT: SOCIAL ORGANISATIONAL SUPPORT AS AN EMERGENT CONCEPT Similar to other developed nations the cultural and social demographic profile of Australia has changed considerably in the past three decades. This is likely to accelerate into the twenty first century. Employee expectations and social needs have changed and these changes impinge on organisations, which is resulting in an increasingly complex and demanding workplace environment that has implications for the attraction and retention of talent. This paper discusses an exploratory focus group study involving 35 managers from varying backgrounds.The paper identifies practical issues that concern managers and identifies they feel ill equipped to manage the social issues arising from changes in the workforce, with argument for a réévaluation of the role human resource practitioners and managers need to adopt to assist organisations in providing social support to employees. Implementing social organisational support will help define the more employee friendly - ¿ — — I - - j . _ ] workplaces and aid attraction and retention to assist organisations A B S T R A C T ] become employers of choice. Key words Socialy organisational support, management, diversity Submitted 20 July 2010 Resubmitted 16 September 2010 Final version 2 November 2010 Refereed anonymously Brenda Scott-Ladd School of Management, Curtin University, Australia Antonio Travaglione School of Management, Curtin University, Australia Chris Perryer Business School, University of Western Australia, Australia David Pick School of Management, Curtin University, Australia INTRODUCTION The 2010 Intergenerational Report, commissioned by the Australian Government, highlights that Australia faces real challenges for maintaining its work force into the future (Australian Government 2010) and halting declining productivity (Tanner 2010). An ageing population and increased diversity through migration will constrain living standards unless ways are found to keep older workers in the workforce longer and manage diversity {Australian Government 2010). So far researchers have failed to fully investigate what is needed (Bardoel, De Cieri & Santos 2008), but Burgess, Strachan and French (2010:271) warn that... more extensive and sophisticated ... responses are needed. This paper has two purposes. The first is to report on the findings of a study conducted {OECD 2009) into the key social issues within organisations and the community that are likely to affect employee attraction and retention in the coming decade. The second purpose is to explore whether managers believed they were effective in supporting their organisation asan employer of choice. Australia, simi- lar to other developed countries in needing to deal with more culturally diverse workforces, employs migration to fill both skilled and unskilled gaps in labour forces {OECD 2009). There is also the added stress of flexible labour markets, where some workers have good prospects and others, especially the poorly educated, have limited prospects {Australian Psychological Society 2009, WHO 2010). For other institutions and community groups, improved education and technology exposure has led to changing values, particularly among different generational cohorts (Twenge 2010). These employment related issues raise concerns regarding workforce diversity. In addition, there are serious questions about work and family balance (Pocock 2005, Sheehan, Holland & DeCieri 2006) and how these can be managed in countries that are experiencing low birthrates and increasingly aging populations {OECD 2005, Verworn, Schwarz & Herstatt 2009). Early research into meeting diversity needs have taken a limited focus, and found considerable variation in terms of equity and implementa- tion (Hall & Atkinson 2006).These and other relevant studies, into work and family balance, and gen- der, for example, have led to a call for improved communication in organisations and better training of managers based on an understanding of what employees need and value. Within the new world order the changing environments poses challenges for organisations and human resource manage- ment practitioners in attracting and retaining employees of choice. An Australian Human Resources Institute survey reported in 2006 that 76 per cent of over 1300 human resource managers saw the need for improved attraction and retention strategies (Sheehan, et al. 2006). The evidence was many companies were already working on improving recruitment processes and practice, however, retention strategies such as job design, employee engagement, diversity management and work life balance were receiving less attention, despite being considered important (Sheehan, et al. 2006). In addition, a recent benchmarking study commissioned by the Australian Government found many companies lacked... people management skills ...(Green 2009:12) and that ...effective people management is paramount, and is achieved when companies follow a structured and focused approach to the at- traction, retention and development of talent ...(Green 2009:12). This paper reports on a focus group study where 35 practicing managers discussed and rated the issues and challenges they believe will accelerate in the coming decades. The paper starts by reviewing the importance of attracting and retaining quality employees and then discusses the theoretical frameworks that currently underpin the employer employee relationship. How the makeup of the workforce is changing, and the affects of changing values and expectations, as well as the challenges this creates for managers are discussed. The methodology details the qualitative approach before the results are explained. This section of the paper is followed by a discussion of the findings and the implications of these for practitioners and theoreticians. Fi- nally, the paper proposes that organisations need to redefine the way they manage their social obligations to employees. Vol. 18 Issue 2, December 2010 Research and Practice in Human Resource Management LITERATURE REVIEW Organisations need to attract and retain effective employees for the good of the organisation (Cascio 2006). While this notion fits within the human resource management (HRM) role, more recent literature has focused on the importance of talent management. In its simplest form, talent management is the ... strategic management of the flow of talent through an organisation. (Duttagupta, 2005: 2). It is about ensuring the organisation not only attracts quality employees but their potential is developed and these high performing employees are retained for the organisations benefit (lies, Preece & Chuai 2010). However, employees also have expectations of organisations as the relationship is one of mutual obligation. The belief that building and maintaining relationships benefits both the organisation and individual is the essence of social capital theory (Andriessen & Gubbins 2009). On the one hand, organisations need to address the conflicting expectations of various stakeholders (Donaldson & Preston 1995, Car- roll & Buchholtz 2008), but they need to do so in a way that recognises the very strong ties that are part of the employee employer relationship. There is some debate about how this social relationship is defined. For example, Lin, Ensel and Vaughan (1981) claim it is related to relationships with shared content, activities or resources members value. Alternatively, Granovetter (1973) focuses more on the strength of the ties in the relationship, with greater social capital being associated with stronger ties. This analogy can be applied to a wider societal or communal setting, but social capital theory is focused on the bonds linking individuals (Adler & Kwon 2002). Cooperation and trust underpin and are fundamental for a reciprocal relationship and social exchange (Putnam 2000). Social exchange theory (Blau 1964) predicts that, given certain conditions, people seek to respond positively to those who bring benefit to them (Bateman & Organ 1983). Applying this to the workplace, an organisation that acts in a positive way towards employees creates reciprocity so employees gener- ally respond in positive ways that are beneficial to the organisation (Eder 2008) thus, establishing an exchange relationship (Settoon, Bennett & Liden 1996). Given that employees, especially in a booming economy, have more power, options and discretion over whether they stay with an organisation, it seems likely that employees, who feel the organisation has acted positively towards them, are more likely to be committed and remain with the organisation (Van Knippenberg 2006). Conversely, if the organisation has not acted positively towards an employee, the employee is less likely to want to remain (Chiu, et al. 2005, Maertz, et al. 2007). One aspect of a positive and supportive organisational environment is an employees perceived or- ganisational support (POS). This employee attitude is deemed by many organisations as valuable, as is evidenced by the many programmes they invest in to develop the POS of their employees (Riggle, Edmondson & Hansen 2009). POS can be defined as the overall extent to which employees believe that their organisation values their contribution and cares about their wellbeing (Eisenberger, et al. 1986). This aspect of an organisational environment can have a strong influence on an employees organisational commitment and trust (Perryer & Jordan 2005). The concepts of social exchange and the norm of reciprocity are often used by researchers to describe the motivation for employees to display positive behaviours, such as loyalty, which are not formally rewarded or contractually required by the organisation (Settoon, et al. 1996, Rhoades & Eisenberger 2002). The authors of this paper suggest these theories do not go far enough. While they do highlight the importance of developing a relationship of mutual respect, this can only thrive if employees believe their needs are understood and met.The listed theories, which underpin the employer and employee social relationship, tend to focus on what happens within the organisation and fail to recognise that employee satisfaction and commitment can be eroded by events external to the organisation. It may be as simple as knowing that a single parent may need to start work at 9:15 am and finish at 3:15 pm every day, so that the parent can transport the children to and from school. It could also extend to more complex issues, such as, understanding a particular employees performance has declined because ATTRACTING AND RETAINING TALENT: SOCIAL ORGANISATIONAL SUPPORT AS AN EMERGENT CONCEPT of a depressive episode or a personal struggle with drug abuse. A recent study by the Institute for Corporate Productivity in the US identified that line managers play the most critical role in facilitating and developing employees (Pace 2010).To do this effectively managers also need the skills to be able to handle the more complex issues, which underpins provision of social organisational support (SOS). Clearly, organisations need to understand the needs of, and the benefits desired, by an individual employee. Therefore, the authors define SOS as the organisations ability to support managers in responding appropriately to the multiple demands of an employees social needs and obligations to foster a beneficial, reciprocal relationship. HRM practitioners clearly have a role in facilitating SOS, but it seems imperative for good on the job relationships that these phenomena are fostered between managers and the staff they supervise. The Changing Workforce Managers at all levels have to deal with changing organisational structures, work patterns and diver- sity management strategies if they are to retaintop talentand become employers of choice. Even if current strategies, such as child are and family friendly work practices apply to a significant number of employees, will these strategies remain adequate for the future? Burgess, et al. (2010) argue that... more extensive and sophisticated .. .(Burgess, et al. 2010:271 ) responses are required, but insufficient attention is being paid to this need, particularly as evidence already shows that work life balance initia- tives boost an employee reputation as an employer of choice (Lansbury & Baird 2004, Pocock 2005). Other issues that need to be considered are the changes that are emerging in the workforce. There are generational differences, increasing diversity through migration and labour market differences, all of which are expected to grow. Beck and Beck-Gernsheim (2009) argue that globalisation has seen the breakdown of individualslives into functional components, such as being a worker, voter, taxpayer and parent, and these functions then become part of our social identity. In this sense, social identity allows individuals to categorise themselves into many differentin groupsas distinct from out groupsto help create a positive sense of belonging (George & Chattopadhyay 2002). Work forms a large part of this identity. An example of this is how intergenerational differences in attitudes towards such factors as work, authority, relationships, and behavioural standards (Loomis 2000,Twenge 2010) affect motivation, inter- ests and reward expectations. For instance, baby boomers (born from 1945 to the 1965) are portrayed as being idealistic, optimistic and inner directed (Kupperschmidt 2000, Loomis 2000). Contexts have been advanced, for this and hence, these cohorts have attitudes and values that were shaped by such events as the assassinations of John F. Kennedy and Martin Luther King Jr, the Cold War, the Vietnam War, the first lunar landing and the availability of the contraceptive pill. Generation X people (born between the mid 1960s and the early 1980s) are described as adaptable, team oriented, technologically competent and entrepreneurial, but at the same time, as cynical, sullen, contemptuous, naive and arrogant (Jurkiewicz 2000, Ferres, Travaglione & Firns 2001). While exposed to extraordinary technological, economic and social change, this later born group were scarred by the restructuring and downsizing that occurred as they entered the workforce in the 1990s. Generation Y (born after the early 1980s) are generally described as smart, informal and view work as less central to their lives than previous generations. Another social dimension is increased total diversity. Similar to other OECD countries Australia faces an ageing population and increasing migration (Australian Government 2010). Migration to fill labour shortages, and particularly high skilled shortages, is a common policy response in many developed countries (OECD 2009). Quite apart from the cultural differences, migrants are often also economi- cally disadvantaged and so become socially disadvantaged by being located in poorer areas, which compounds other disadvantages such as limited language skills or support networks. Australia already relies heavily on overseas workers, such as backpackers, skilled migrants and short term visa holders (Australian Government 2010). Their diverse cultural heritages mean different values, language and communication barriers, lack of social and community support, and the possible increase in workplace discrimination and prejudice are more challenges for managers. Vol. 18 Issue 2, December 2010 Research and Practice in Human Resource Management Another issue of increasing concern relates to psychological issues in the workplace. The Australian Bureau of Statistics (2007b) estimated that one in five Australians suffer from some form of mental disorder, which can range from stress, phobias, obsessive compulsive disorder and depression, to drug and alcohol abuse. An Australian Psychological Society (2009) survey into the impact of the global economic downturn on the currently employed revealed that 37 per cent reported being under financial strain, 20 per cent reported an increase to their workload and 27 per cent indicated moderate to extreme concern about job security. Work related factors, such as performance inves- tigations, complaints, exposure to aggressive clients, conflict with colleagues, high workloads, poor management/supervisory skills, transfers and poor person-job fit all place psychological wellbeing at risk (Jackson & Clements 2006). An additional compounding factor is the increased labour force flexibility. Australia has a core work- force, supplemented by a peripheral casual or contract labour market that makes up 27 per cent of the Australian workforce {ABS 2009a). The Survey of Employment Arrangements, Retirement and Superannuation (ABS 2007a), shows that one in four Australians are employed on a casual basis and 56 per cent of casual employees are women. This survey identified that some actively want the flex- ibility provided by part-time or casual work, whereas others would prefer more hours or certainty of work. Currently, approximately six per cent of all workers hold more than one job {ABS 2009a). The downside for casual employees is reduced benefits and entitlements, such as sick leave and annual leave, and in general, these workers have reduced job security and limited, or reduced, career op- portunities. Organisations are being challenged to respond to these by instituting HRM policies and processes that allow managers to confidently deal with these complex issues that can negatively affect contemporary work settings. What is needed is a construct that clearly focuses on the key skills a manager must develop to be considered relevant for an ever changing workforce.These skills centre on understanding the drivers of social engagement for employees in the modern workplace. As Burgess, et al. (2010), and Hicks, Basu and Sappey (2010) point out, greater acceptance is needed for the differing social drivers that facilitate employee engagement.There is merit in developing a role and definition for how managers can provide SOS, based on them understanding that generic problems can form the foundation for understanding the workplace they confront. SOS needs to capture the basic concept that managers must manage. By contrast, POS refers to employeespercepf/ons of the support that their organisation provides. Therefore, SOS refers to the organisations ability to support managers in responding ap- propriately to the multiple demands of employee social needs and obligations to foster a beneficial, reciprocal relationship. So what do we mean when we say managers must manage?This means that managers must be sufficiently self aware to recognise and understand how to manage the critical is- sues in an employees life that can impact their performance at work.There are many ways an organisa- tion can display positive actions toward an employee to facilitate a positive reciprocation (Eisenberger, et al. 2001). The problem is that although there is anecdotal evidence and theoretical arguments surrounding these challenges and the changes being made, particularly in relation to work life bal- ance, researchers have yet to substantiate the veracity of many of the responses being implemented (OfCD 2005, Burgess, et al. 2010, Hicks, et al. 2010). One way of starting to unravel how managers can respond to these challenges is to explore the extent of these issues with practicing managers. What skills and development will human resource practitioners enable in managers to develop to meet these competing needs and expectations and better operationalise retention strategies? Accepting that social drivers differ, organisations will need to develop an understanding of what drives social engagement if they really do want to retain their talent. Therefore, the purpose of this preliminary study was to identify some of the changes taking place, and whether managers felt they, or indeed their organisations, were equipped to deal with these in ways that maximised attraction and retention levers. ATTRACTING AND RETAINING TALENT: SOCIAL ORGANISATIONAL SUPPORT AS AN EMERGENT CONCEPT METHODOLOGY The first step was to identify the key internal and external social issues that are likely to affect attraction and retention levers in the coming decade. The second was to explore where managers believe they lacked skills to deal with these. The aim was not to test understanding, but to allow the respondents to surface issues of concern to them based on their understanding, experiences and the challenges they believe they face. Therefore, a constructivist approach was best as it allows knowledge to be drawn from the multiple realities of the various respondents (Denzin & Lincoln 2005). This in turn provides a rich foundation for building understanding (Cavana, Delahaye & Sekaran 2001, Sobh & Perry 2006). By utilising an interpretist ontology, understanding is developed based on the subjects understanding of reality (Ticehurst & Veal 2000) and can then be linked to the understanding drawn from the literature (Hesse-Biber & Leavy 2006). Participants Data were gathered from a focus group interview with 35 participants in an MBA programme in No- vember 2009, which forms a preliminary step to a larger study. The participants were from a range of backgrounds; seven were general managers, 14 were departmental or line managers, three were supervisors, eight were professionals or consultants and three were waged employees, 24 were male and 11 were female. The group had a mixed ethnic background (Japan 1, South Africa 2, Central Africa 1, Caribbean 1, Europe 3, the Middle East 2, China 6, India 1, and Australia 17) and worked in a range of different industries, from mining to health and the public and service sectors. The age range included six from the baby boomer generation, 16 from generation X, and 13 from generation Y.This group was particularly suited to the study because of their diverse ages, work experiences and cultural backgrounds and because the majority worked full time and needed to juggle work, family, social and study commitments. Procedure Respondents were asked to consider the social issues they were aware of, or anticipated in the work- force and then list these using a nominal group technique. This technique required each person to write down their thoughts before these were discussed among the group. An approach was taken to ensure that all individuals contributed from their own perspective in the initial stage and their views would not be contaminated or withheld because of other viewpoints. The next phase included collat- ing all the items and inviting discussion among the group to allocate and condense all the issues into themes.The aim was to identify and explore commonalities across the group and encourage further discussion, rather than seek consensus or downplay the importance of individual concerns. Once the themes were identified, the group anonymously ranked the themes to identify which was considered of most concern. This was achieved by each respondent voting for the three items they considered most important using a technology based audience response system called clickers. The highest number of votes within each theme were counted to return a percentage allocation for each theme. RESULTS Participants expressed a range of concerns, many of which are interrelated and these are shown in Table I.The themes viewed as the most important challenges needing addressing were ranked as follows. A total of 40 per cent of the respondents identified the need to address the balance between work and family as most important. Next, was the need to improve flexibility (20 per cent), followed by being time poor (17 per cent), cultural diversity (nine per cent), dealing with stress and health problems (both at seven per cent) and responding to an ageing workforce was rated lowest, with only three per cent viewing it as most important. This was surprising given concerns about the aging workforce, which is admittedly a less severe problem than in other developed countries. This finding may well reflect the age cohort of respondents and an expectation that people will continue working as they grow older. Vol. 18 Issue 2, December 2010 Research and Practice in Human Resource Management There was considerable crossover between the themes and many of these are broadly related to work life balance. Clearly, however, the findings go well beyond provisions for flexibility in the Work Care Act of 2010 {Fair Work Ombudsman 2010). For example, being time poor affected the time spent with family, added to stress, reduced opportunities for eating healthily, and increased the pressure and need for greater flexibility. The examples cited ranged from being able to attend school func- tions and afterschool activities with children, to maintaining family and social obligations of visiting parents, meeting friends and having time for a social life. It became very clear that the respondents believed employees expectations were changing. As one Generation X male said, I cant imagine my father asking for time off during the day to go and see a school play. Table 1 Social challenges facing managers in the coming decade Themes - Rated by importance (\%) Comments related to each theme Work-life balance 40 Need for increased 20 flexibility Time poor 17 Diversity and globalisation Increasing stress 7 Health problems 7 Ageing workforce 3 Work can go on for 24/7 hours and interferes with personal life. Dual careers makes it difficult to manage work life balance There is conflict between work and personal commitments Work means you have to give up personal time (family or leisure balance) Dual careers makes it difficult to manage work and leisure Dealing with short term or changing careers creates stress on the family Continuing with fly in and fly out arrangements interferes with work life balance Perceived importance of spending time with family has increased Increasing telecommuting - reduces interaction with colleagues and interferes with home life - so affects both. The need for increased domestic support to help balance work life Working at a high pace 24/7 can be challenging and stimulating if you love the job (comment from a Gen X female participant). Increased demand the flexibility (to meet juggle work, family and leisure and meet customer needs - also related to globalisation) Time Poor - the rat race carries into our personal life Time Poor means a reduction in healthy eating Dual careers (more demands on time) Increased cultural diversity / languages / culture /expectations The need for greater indigenous integration and acceptance Increasing pressure to retain skill as competition increases Increased decentralisation as the population grows Dual economy - haves & have-nots - (i.e., W.A. resources versus services sector) Competition raises safety issues - particularly for small work environments Lack of daylight saving still interferes with national businesses Stress related to lifestyle (European lifestyle not so stressed) Health problems related to stress. Health problems related to stress, diet, lifestyle and ageing The retirement age likely to increase further - with many older workers and associated health and flexibility needs Increased need for Elder Care support Increased desire for part time work by older workers. ATTRACTING AND RETAINING TALENT: SOCIAL ORGANISATIONAL SUPPORT AS AN EMERGENT CONCEPT The respondents were then asked to consider the themes and identify and rank what they perceived as the primary drivers for changing employee expectations. A total of 64 per cent indicated that chang- ing cultural values was the most significant driver, and that this was leading to associated changes in expectations. Also, 32 per cent believed change was driven by the need for greater flexibility by organisations and individuals, and five per cent believed it was because employees expected a bet- ter balance between work and family needs, even if they were unable to achieve this outcome. All respondents agreed that the current work environment was dynamic and societal expectations were changing and that managers would continue to face dealing with an escalation in complex and dif- ficult issues. As an example, one general manager cited needing to deal with an employee who was suffering psychotic episodes in the workplace at the same time as being subjected to abuse and deni- gration on Facebook by a former employer who had an unfair dismissal claim rejected by the courts. DISCUSSION Some of the changing issues confronting workforces are being addressed with varying degrees of success, even though, as mentioned previously, the efficacy of the solutions being implemented have not been tested.The respondents rated balancing work and life as their highest concern, which substantiates previous findings in the literature (Of CD 2005, Hicks, et al. 2010).This is consistent with OECD findings from 30 countries that suggests many working parents are not satisfied with the work and care balance; either because they financially cannot afford more children, have limited career prospects or have less flexibility than they would like (Of CO 2007). Although flexibility has increased, the OECD research identifies considerable variation exists when in addressing the many factors that influence work family conflict and that overall substantial progress still needs to be made. Increasing flexibility was suggested as a strategy that would address being time poor, although there were two sides to this … 1       MGF  5921  FOUNDATIONS  IN  HUMAN  RESOURCE  MANAGEMENT   CLASS  TEST  MARKING  GUIDE     STUDENT  NAME    …………………………………………….……………..     N  =  FAIL     PASS  –  CREDIT       DISTINCTION  –  HIGH  DISTINCTION       Has  the  student  understood  the  task?  This   will  be  indicated  by:   ! A  statement  about  the  intent  of  the   test  question;   ! Reference  to  3  HRM  activities  from   Parts  2  &  3  of  Kramar  et  al.,  2014   ! Reference  to  and  use  of  readings  from   this  semester     The  student:   ! Does  not  offer  a  statement  about  the   intent  of  the  test  question  and  how  the   response  will  proceed;   ! Does  not  identify  3  HRM  activities  from   Parts  2  &  3  of  Kramar  et  al.,  2014   ! Does  not  indicate  links  between  these   activities  and  the  response  to  the  test   question.   ! Does  not  provide  enough  words  to   evaluate  quality  of  the  response     The  student  has:   ! A  statement  about  the  intent  of  the  test  question   and  how  the  response  will  proceed;   ! Identified  3  HRM  activities  from  Parts  2  &  3  of   Kramar  et  al.,  2014     ! Indicated  links  between  these  activities  and  the   response  to  the  test  question.  (there  may  be   some  gaps  or  confusions)     The  student  has:   ! A  statement  about  the  intent  of  the  test  question   and  how  the  response  will  proceed;   ! Clearly  identified  3  HRM  activities  from  Parts  2  &  3   of  Kramar  et  al.,  2014   ! Clearly  indicated  links  between  these  activities  and   the  response  to  the  test  question.   Has  the  student  identified  relevant  and   appropriate  material  from  the  text  and   relevant  readings  to  apply  to  the  test   question?  This  will  be  indicated  by   ! Reference  to  and  explanation  of  key   models,  concepts,  ideas  and  empirical   evidence  found  in  the  readings  parts   2  &  3  of  Kramar  et  al.,  2014  and   reinforced  in  the  class  discussions  and   lectures  in  weeks  7-­‐12.     The  student  has  in  their  use  of  reference   material:   ! Not  made  reference  to  and  used  to  explain   models,  concepts,  ideas  and  empirical   evidence  found  in  the  readings  and  parts  2   &  3  of  Kramar  et  al.,  2014  and  reinforced  in   the  class  discussions  and  lectures  in  weeks   7-­‐12.     ! Indicates  a  high  level  of  confusion  in   explaining  ideas  from    lectures  and   readings  from  weeks  7-­‐12.   The  student  has,  in  their  use  of  reference  material:   ! Made  reference  to  and  explained  key  concepts,   models,  ideas  and  empirical  evidence  found  in  the   readings  and  parts  2  &  3  of  Kramar  et  al.,  2014  and   reinforced  in  the  class  discussions  and  lectures  in   weeks  7-­‐12  (and  earlier).     ! Used  the  material  from  lectures  and  readings   from  weeks  7-­‐12  (and  earlier)  appropriately   although  there  may  be  some  over  reliance  on  one   or  two  sources  rather  than  a  broad  spread;   ! The  response  may  show  elements  of  description   from  the  sources  rather  than  critical  analysis  using   the  various  sources  as  evidence.   The  student  has,  in  their  use  of  reference  material:   ! Confidently  made  reference  to  and  explained  key   concepts,  models,  ideas  and  empirical  evidence   found  in  the  readings  and  parts  2  &  3  of  Kramar  et   al.,  2014  and  reinforced  in  the  class  discussions  and   lectures  in  weeks  7-­‐12  (and  earlier).     ! Demonstrated  a  confident  understanding  of  the   material  from  lectures  and  readings  from  weeks  7-­‐ 12  (and  earlier);   ! Used  sources  broadly  critically  &  appropriately   throughout  the  test.       Has  the  student  being  able  to  use  the   material  from  the  readings  critically?     ! Critical  argument  in  relation  to  the   question  using  the  sources  from   weeks  7-­‐12  (and  earlier)  to  provide   content  and  evidence  for  the  test;   ! Criticisms  or  limitations  of   HRM/SHRM.   The  student  in  their  test  response:   ! Offers  an  uncritical  in  that  it  does  not   acknowledge  or  include  different  or   competing  perspectives;   ! Demonstrates  limited  use  of  sources.   ! Makes  no  attempt  to  attribute  ideas,   models  and  concepts  to  the  relevant   sources.   ! The  student  in  their  test  response:   ! Uses  some  to  all  of  the  sources  from  this  semester.   There  is  a  recognition  of  particular  or  competing   perspectives  between  sources;   ! There  may  be  come  confusion  and/or  over-­‐reliance   on  one  or  two  main  sources  to  support  arguments;   ! Generally  consistent  in  attributing  sources  of  ideas   in  the  test.     The  student  in  their  test  response:   ! Is  critical  in  that  it  integrates  various  ideas,   concepts  and  models  and  acknowledges  different   and  competing  perspectives;   ! Draws  on  a  broad  selection  of  sources  from  this   semester.  Sources  are  used  to  good  effect  to   support  arguments;   ! Sources  are  consistently  and  systematically   acknowledged  through  out  the  test.   Has  the  student  been  able  to  organise   and  structure  their  response  to  the  test   The  student  has:   ! Failed  to  provide  a  logical  and  clear   The  student  has:   ! The  structure  of  the  response  is  generally  clear  but   The  student  has:     ! Provided  a  clear  and  logical  response  to  the  test   Pass   HD  Credit   Dist   2     question  and  their  guided  reading  notes   eg  include  an  introduction,  middle  and   conclusion.     response  to  the  text  question;     ! Failed  to  respond  to  key  aspects  of  the  test   question;     may  neglect  to  address  some  parts  of  the  test   question;   ! Responded  to  the  key  aspects  of  the  test  question   (may  be  some  gaps  or  confusions).   question;   ! Responded  to  the  key  aspects  of  the  test  question   in  a  competent  and  comprehensive  way.   Has  the  student  being  able  to  integrate   information  from  the  sources  from  this   semester  to  offer  an  appropriate  response   to  the  test  question?                   The  student  has  not  indicated  that  they  have   understood  materials  as  they  relate  to  the  test   question.  This  may  be  indicated  by;   ! Absent  or  confused  definitions,  concepts,   models  and  empirical  evidence  relevant  to   the  test  question;   ! Failure  to  integrate  knowledge  from   sources  to  respond  to  the  test  question;   ! Descriptive  and  non-­‐specific  discussion  of   HRM  with  little  or  no  link  to  the  test   question  and  relevant  sources;     The  student  has:   ! Provided  a  coherent  response  to  the  test  question.   A  pass  level  response  may  have  some  gaps  and   confusions  but  a  pass  is  indicated  by:   o Identifying  and  providing  definitions,  relevant   concepts,  models  and  evidence  from  empirical   research  to  answer  the  test  question;   o Shown  evidence  of  critical  argument  supported   by  evidence  from  a  range  of  sources;   o   The  student  has:   ! Provided  a  high  level  of  synthesis,  analysis  and  has   confidently  applied  newly  gained  knowledge  about   HRM  concepts  theory,  models  and  empirical   evidence.  Indicated  by:   o Demonstrated  understanding    by  identifying   and  providing  definitions,  relevant  concepts,   models  and  empirical  evidence  from  a  broad   range  of  sources  to  answer  the  test  question     o Critically  argued  a  response  to  the  test  question   supported  by  evidence  from  a  range  of  sources;   o   Has  the  student  been  able  to   communicate  the  new  knowledge  they   are  generating  through  their  test   response  with  an  awareness  of  the   discipline  and  social,  cultural  and  ethical   issues  relevant  to  HRM.     The  student:   ! Uses  general  management  or  lay  language   rather  than  relevant  HRM  concepts,  ideas   and  language;     ! Conversely  the  student  may  use  “HR   speak”  but  fail  to  indicate  deeper   understanding  of  HRM.   ! The  test  may  overly  rely  on  use  of  direct   quotes  and/or  have  plagiarised  passages  of   text.   The  student:   ! Uses  language  specific  to  the  task  at  hand   and  the  readings  used  for  the  test;   !  Indicates  their  own  “voice”  by  translating   HRM  concepts,  ideas  and  language  into  their   own  words;   ! Observes  academic  conventions  for  citing   sources.     The  student   ! Uses  language  specific  to  the  task  at  hand  and  the   readings  used  for  the  test;   ! Indicates  a  confident  “voice”  in  communicating   HRM  concepts,  ideas  and  language;   ! Observes  academic  conventions  for  citing  sources.   COMMENTS:                 9/28/2015 1 Business and Economics MGF 5921 Foundations in Human Resource Management PERFORMANCE MANAGEMENT Learning Objectives  Understand the changing context of organisations and how this impacts on performance management  Distinguish between performance management and performance appraisal  Review a model for, and the purposes of, performance management and discuss the criteria used when choosing an effective performance management system  Compare and contrast different methods of performance appraisal and performance management and implementation relating to them. Relevant readings  Kramar et al 2014 Human Resource Management in Australia : Strategy, People, Performance, (5th ed), McGraw-Hill, Sydney, Chapter 10.  Nankervis A. & Compton, R. 2006 Performance management: Theory in practice? Asia Pacific Journal of HR, 44(1): 83-101.  See also Nankervis et al 2014, Chapter 8 pages 364-368. 9/28/2015 2 Strategic Performance Management Individual Group Organisation Horizontal integration V e rtic a l in te g ra tio n Simplified SHRM Model & Performance Management External environment inc. Industrial relations and Employment legislation Firm’s strategic planning process Strategic choice HRM Strategy leading to HR planning Performance •Perf Planning & Evaluation •Review (Appraisal) •Feedback Addressing ongoing performance issues • Counselling • Discipline • Managing absences • Termination Performance management (PM) A systematic process through which managers ensure that employees’ activities and outputs are congruent with an organisation’s goals (Kramar et al, 2011:323). • It consists of: • Perf Planning & Evaluation • Performance Review (Appraisal) • Performance Feedback Some work for you…… Thinking about where you come from and your experience, think of a time where your performance was managed or measured eg at work, at school, at home, in other contexts. • What was the purpose? • What was the process? • What was the outcome? • How did you feel? What assumptions do we make about managing performance? 6 9/28/2015 3 Many views of performance management – here is one view 7  https://www.youtube.com/watch?v=f60dheI4ARg  Working in groups,  Discussion, communication  Trust Performance expectations in a Chinese University Wang, Shu, Zheng & Mayson (2014)  Chinese public section performance expectations include (see below) and Cadres need to perform well across all categories but often criteria vague and different interpretations used depending on circumstances: » De (morality, political loyalty) » Neng (ability to perform tasks required) » Qin (diligence – work behaviours and performance) » Ji (achievements and work experiences) » Lian (integrity, non-corruptible) “For me, I will retire from the managerial position in two years. So I have to play it cool. I am not young and have experienced a lot here. What I really care about now is to arrange my life after retirement, my benefits, healthcare etc. I heard that recently, some other cadres have spent more time on doing research. We all know the person will be retired as cadre next year. He is experienced and performs well on the job, and there won’t be any big problem […]. It is impossible for anyone to dismiss him unless he commits crimes. In China, normally, promoted cadres will never get demoted (“干部能上不能下”).” (p. 168). The paper finds that parallel systems of performance expectations and discrepancies between them created great complexity around performance management. 8 Performance management : Key concepts Performance planning and evaluation (PPE) (strategic HRM) • Systems that see to tie formal appraisal systems to organisational objectives Performance appraisal (PA) (operational HRM) • The process through which an organisation gets information on how well an employee is doing his or her job. Performance feedback (PF) (operational HRM) • The process of providing employees with information regarding their performance effectiveness https://www.youtube.com/watch?v=f60dheI4ARg https://www.youtube.com/watch?v=f60dheI4ARg https://www.youtube.com/watch?v=f60dheI4ARg 9/28/2015 4 Purpose of a performance management system Strategic • Strong link or alignment between employee behaviour and outcomes to business strategy Developmental • Forward focused and motivational Administrative • Make decisions about promotion, bonuses & redundancy 10 Current context of performance management Uncertain and changing global environment Performance is a key concern of managers • Productivity • Responsiveness • Goal achievement But also time consuming, problems with process and motivational effects Going back to the Chinese example – similar issues there Global Human Capital Trends 2014: Engaging the 21st- century workforce “Performance management is broken: Replace “rank and yank” with coaching and development” (p. 45) • Today’s widespread ranking- and ratings-based performance management is damaging employee engagement, alienating high performers, and costing managers valuable time. • Only 8 percent of companies report that their performance management process drives high levels of value, while 58 percent said it is not an effective use of time. • Leading organizations are scrapping the annual evaluation cycle and replacing it with ongoing feedback and coaching designed to promote continuous employee development. https://documents.dupress.deloitte.com/HCTrends2014 12 9/28/2015 5 Deloitte’s Performance Management in the “New World of Work” Why??? • High levels of competition require a “relentless pursuit to improve performance” • Organisational structures are changing employees are no longer bound by place • Teams temporary and may be virtual • Flatter structures (less or no hierarchy) • New technologies ie social , mobile, cloud, analytics, gaming • Generational expectations Emerging trends in PM • Networked/bottom up • Coaching and outcome focused • Democratic • Focus on improvement and internal rewards • Focus on identifying strengths • Just in time feedback (continuous) Resetting Horizons – Human Capital Trends 2013 (Deloittes) page 62 13 This is what a recent HBR article said about performance management Reinventing performance management (Buckingham and Goodall) • Deloittes (large accounting firm) are redesigning their PM system. Why??? • Beginning to question the wisdom on convention PM eg not flexible enough, not timely enough and takes too much time to do and ratings are not reliable • 3 objectives of the new system – Recognise performance – See it clearly through future focused and focus on supervisor actions not the ratee’s actions – Fuel performance (enable improvement and strengthen performance) • Three sources of data annual compensation review, 1/4ly review and weekly check in that provides a rich body of evidence for a performance review. • so that it is agile, speedy and universal (one size fits all) Harvard Business Review April 2015 pp. 40 - 50 14 Performance Management and the RBV According to a recent study from Hay group “Employee performance has been found to account for a differential in business results of up to 30\%, so creating an energising work environment which encourages employees to put in that little bit extra can mean the difference between achieving an average or a high-performing organisation”. What is an ideal work environment according to Hays? • Clarity • Understanding one’s role in relation to the organisation’s strategy • Understanding what is expected of them in that role • Standards • Standards of performance and work behaviours • Determined in consultation with staff and management • Rewards related to performance • Consistent and constructive feedback 15 9/28/2015 6 An Effective Performance System Criteria for performance measures • Strategic congruence • If strategy changes so must behaviours • Validity & Reliability • Consistently measure aspects of performance relevant to the job • Acceptability & Specificity • Measure accepted as a relevant and fair measure by those who use it • Measure specifies what is expected of employee and how to meet expectations An effective performance management system: • Strategic • Specific • Supported • Simple It should: • Facilitate • Motivate • Measure • Feedback Uptake of PM: Theory and practice Re Nankervis & Compton (2006) • Large survey (n=992) to determine use of and satisfaction with PM and whether it is considered an effective strategic tool for organisations Findings • Main purpose of PM • Determine training and development needs (89.2\%) • Appraisal of past performance (88.9\%) • Alignment of individual and organisational objectives (75.5\%) Conclusions • Use of and satisfaction with PM is problematic to some extent • Some evidence of broader strategic approach using ‘balanced scorecard’ Updating Nankervis and Compton’s study New survey of Australian managers (N=992) in 2008 •Main purpose of performance management •Developmental –Determine training and development (89.2\%) •Administrative –Appraise past performance (88.9\%) •Strategic –Align objectives (75.5\%) •Retention (developmental and strategic) –Retain high calibre staff (27.5\%) See Nankervis et al 2014 pages 364-368 18 9/28/2015 7 Employee views of performance management More than 50\% receive a review one a year or less (C/f Delloite’s suggestions) Focus on past and future performance (a good thing!) Increased use of developmental approaches ie personal development plans and performance measured against that (65.6\%) Strategic approaches ie performance compared against organisational strategy (66.2\%) But note this means that approx 1/3 employees were not. While 59.6\% see benefits for personal development. 40\% see no real benefit of performance evaluation See Nankervis et al 2014 page 367 19 Developmental focus of performance a management system (re Deloittes’ new world of work) Importance of developmental purpose of performance management. This is demonstrated by Nankervis’ & Compton’s findings • Motivate desired behaviours • Facilitate high performance • Measure performance • Provide Feedback Levels of Performance management • Organisation eg Monash university • Division/group eg a department or workgroup • Individual eg an employee Performance at the organisational level Organisational performance is the sum of individual actions directed towards particular kinds and level of outcomes • Competitive advantage comes from a function of harnessing and managing individual performance Organisational performance may be measured in narrow (hard) terms (economic) eg return on shareholders funds, profit or using broader measures (social & economic) such as balanced scorecard 9/28/2015 8 Measuring organisational performance: The balanced scorecard Strategic and broad range of performance measures • Financial • Eg profitability, growth, shareholder value • Customers • Eg time, quality, performance, cost of customer service/response • Internal business processes • Eg HR’s ability to respond to internal clients • Learning and innovation • Eg organisational responsiveness to new products, continuous improvement, empowerment of workforce Sustainability at Westpac http://www.westpac.com.au/about-westpac/sustainability-and-community/reporting-our-performance/stakeholder-impact-reports/ Benefits of Performance Management… For the individual • Feedback on strengths and weaknesses • Improvement • Future development • Motivation For the organisation • strategic • staff development - career links • staff motivation • serves as proper evaluation tool • gives feedback to organisation • identifies needs - e.g. training 9/28/2015 9 Dissatisfaction with Performance Management Nankervis & Compton (2006) report sources of dissatisfaction includes: • Lack of links between PM system and organisational goals; • Lack of links to promotion and reward systems; • Lack of employee participation/feedback opportunities; • Inadequate appraisal training; • Implementation and administrative difficulties. Performance Review (Appraisal) Performance appraisal • Plan and review individual performance; • Formal and time specific eg. an annual event. • Link to individual plans for future development Performance appraisal at “The Office” http://www.youtube.com/watch?v=IkYUDQCYGHA 27 http://www.youtube.com/watch?v=IkYUDQCYGHA 9/28/2015 10 Performance Appraisal Characteristics of a dynamic performance appraisal system • Goal establishment • Performance feedback (coaching) • Performance improvement (evaluation) Purpose of a Performance Appraisal System • Control • Discriminate (legally of course!) • Monitor • Reward • Motivation • Develop • Feedback • Measure • Outcomes – Individual – Group – Organisational Performance criteria Must be • Congruent (aligned) with strategic organisational objectives • Valid (measures assess all relevant aspects of performance • Reliable (consistency of measure) • Acceptable (to the people who use it) • Specific (gives guidance for performance Perceived fairness • Procedural • Interpersonal • Outcomes See pages 343-348 Performance review methods (appraisal) Outcome oriented methods (results from what people do) • Peer/self/upward appraisal • 360 degree feedback • Management by Objectives Relative judgement (assessing behaviours/attributes) • Ratings scales • Global • Mixed ratings • Behaviourally anchored scales What people are (assess personal characteristics) • Use competency based system See pages 342 - 352 of your text 9/28/2015 11 Importance of fairness Perceptions of fairness • Procedural fairness • Equal opportunity to participate in development processes • Ensures consistent standards • Minimises errors • Interpersonal fairness • Relates to use of performance appraisal systems eg can challenge ratings • Timely feedback • Respect and courtesy • Outcome fairness • Communicates performance and rewards expectations See page 334 of your textbook 31 What kind of appraisal systems do companies use? See page 365 of Nankervis et al 2014 Frequency • Annual review (76\%) • Twice yearly (50\%) Type of appraisal system • Ongoing review (41\%) • 360 degree review (20\%) – low take up • Peer review (18\%) • Self assessment (16\%) • Objective setting and review (61\%) • Competence assessment (27\%) • Personal development plans (33\%) • Coaching and mentoring (31\%) 32 Nankervis, 2008) Legal issues for performance appraisal Documentation for legal protection Do not condone poor performance by inaction Employer’s duty to the poor performer Adequate warning before dismissal Equal employment opportunity (EEO) Failure to do this may cause legal and industrial relations problems eg Toyota 9/28/2015 12 Sources of data and errors in evaluating performance data Errors • Similar to me • Diversity problems? • Contrast • A vs B performers? • Distributional errors • All highs or lows • Halo and horn errors • Failure to differentiate between aspects of performance Reducing errors • Rater error training • Rater accuracy training Sources • Managers • Immediate supervisors may lack information, bias? • Peers • Good source but may be biased • Subordinates • As above • Self • Tends to be inflated! • Customers • Good source for service companies Problems relating to performance appraisal Staff do not see a clear link between P.A and organisational objectives; Not viewed as particularly useful; Training for performance managers often lacking. Compliance task Bureaucratic Backward looking • ie past performance Negative Subjective Performance feedback The process of providing employees with information regarding performance effectiveness Important for the Gen Ys Characteristics of effective performance feedback process • Frequent feedback • Feedback context • Self-ratings • Participation in sessions • Recognise performance through praise • Focus on solving problems • Focus feedback on behaviour or results • Minimise criticism • Set goals and dates for review • Manage marginal performers 9/28/2015 13 Performance improvement Sources of poor performance • Individual issues • Lack of appropriate skills • Lack of appropriate training • Organisational issues • Ineffective job placement/selection • Work design • Boring work, role conflict/ambiguity • External factors • Extreme competition or decline of industry Performance improvement • Flexibility • Good HRM practices • Training • Retention strategies See your textbook page 366-367 Summary – Performance management Performance management is a strategic and dynamic process with the emphasis on self-development, the establishment of performance standards and the giving and receiving of feedback. Performance reviews are an important motivator and employee development tool. There are a number of issues that arise out of performance review methods and care should be taken to remove bias from performance review procedures 9/18/2015 1 Business and Economics MGF 5921 Human Resource Management Retaining and developing talent Managing Careers Learning Objectives  recognise the importance of the retention of key people and HRM activities to achieve retention  explain the challenges for the future development of human capital  describe the systems approach to learning and development  describe the methods used for identifying and developing management and leadership talent  explain factors that should be considered in choosing and developing a career 2 Readings  Kramar, R., Bartram, T., DeCieri, H., Noe, R., Hollenbeck, J., Gerhart, B., and Wright, P. (2014). Human resource management in Australia: strategy, people, performance (5th ed.). North Ryde, N.S.W: McGraw Hill Australia. Chapters 11, 12 & 17.  Holland, P., Sheehan, C., & DeCieri, H. (2007). Attracting and retaining talent: Exploring human resources development trends in Australia. Human Resource Development International, Vol 10, No 3, pp. 247-262. OR  Hurst, J. & Good, L. (2009), Generation Y and career choice: The impact of retail career perceptions, expectations and entitlement perceptions, Career development international, vol. 14, no. 6, pp. 570-593. OR  Jones, J., Whitaker, M., Seet, P. and Parkin, J. (2012). Talent management in practice in Australia: individualistic or strategic? An exploratory study. Asia Pacific Journal of Human Resources, Vol 50, No: 4, 399-420. http://images.google.com.au/imgres?imgurl=http://www.fesco-training.com.cn/images/200601.jpg&imgrefurl=http://www.fesco-training.com.cn/&h=1147&w=877&sz=930&hl=en&start=11&tbnid=3eQTBb4bFb9mRM:&tbnh=150&tbnw=115&prev=/images?q=Training&svnum=10&hl=en&lr=&sa=G http://search.lib.monash.edu/primo_library/libweb/action/dlDisplay.do?vid=MUL&docId=catmua2993617 http://search.lib.monash.edu/primo_library/libweb/action/dlDisplay.do?vid=MUL&docId=catmua2993617 http://ezproxy.lib.monash.edu.au/login?url=http://dx.doi.org/10.1080/13678860701515158 http://ezproxy.lib.monash.edu.au/login?url=http://dx.doi.org/10.1080/13678860701515158 http://ezproxy.lib.monash.edu.au/login?url=http://www.emeraldinsight.com/10.1108/13620430910997303 http://ezproxy.lib.monash.edu.au/login?url=http://www.emeraldinsight.com/10.1108/13620430910997303 9/18/2015 2 Retention of HRs Development of HRs Learning and Career development strategies and processes Horizontal integration V e rtic a l in te g ra tio n Simplified SHRM Model External environment inc. Industrial relations and Employment legislation Firm’s strategic planning process Strategic choice HRM Strategy leading to HR plans and processes Induction & Orientation Human Resource Development & Organisational Learning Training & Development Careers Life Long Learning Attraction and Selection We often hear that there is a “war to develop talent” or a “talent battle ground” “As businesses struggle to fill critical positions……and as the requirements for leadership pipeline change rapidly, companies are putting renewed focus on building capabilities don’t just finding them. The “war for talent” is shifting and is becoming the “war to develop talent” (Deloitte, 2013: 45). “ CEOs see that there are serious talent management challenges ahead. 93\% say that they recognise the need to change their strategy for attracting and retaining talent. But an enormous 61\% have not yet taken the first step” (PWC, 2014: 5) 5 The problem of retention  A Hay Group study (2013) found that – 25\% of employees plan to leave their current job within 2 years – 50\% intend to leave within 5 years  To quote the study: “When you consider the amount of money that businesses are currently investing in trying to attract and retain their talent, in addition to the cost of replacing an employee, which is estimated to range from 1.5 to 2.5 times their annual salary this high-level turnover represents a real issue for businesses world-wide.”  Now this is even more urgent as scarcity pushes wage costs up. 6 9/18/2015 3 “Talent” and the “War for Talent”  What is “talent”? – Can we come up with a definition  What is “talent management” – Another name for HRM? – Developing “pools” of talent • Developing groups of employees with ‘broad and general competencies that fit a range of jobs’ in the organisation (Jones et al 2012: 401) – Focus on individual “stars” ie high potential, high performing individuals; – Focus on the organisations human capital and HRM systems and practices to manage it (Jones et al 2012) 7 See reading by Jones, Whitaker, Seet and Parkin 2012 Retention and turnover  Retention – Activities designed by organisations to retain (ie prevent from leaving) skilled employees. Includes succession planning  Voluntary turnover – Employees choose to leave – Means that the organisation has failed to retain them – May be a function of job withdrawal due to dissatisfaction with work (see p 588)  Involuntary turnover – Organisation chooses to terminate employee – Employee would prefer to stay 8 Latest trends on retention of employees  PWC CEO Survey 2015 – the importance of diversity http://www.pwc.com/gx/en/ceo- survey/2015/key-findings/diversity.jhtml 9 http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/diversity.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/diversity.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/diversity.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/diversity.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/diversity.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml http://www.pwc.com/gx/en/ceo-survey/2015/key-findings/index.jhtml 9/18/2015 4 Some more definitions relating to retention and employee development  Human Resource Development –Strategic alignment between an organisations’ business strategy and HRM plans and strategies, particularly training, learning, development and education. –Assumes that people and organisations are continuous learners  Training –Short term orientation –Job related skills and competencies  Development –Long term orientation –Formal and informal programs/experiences eg mentoring –Relates to career development, succession planning, performance feedback  Learning –Ongoing organisational process (organisational learning) that leads to change (individuals learn new behaviours) Some theory relating to retention and development.  Resource Based View – Employees are valuable internal resources, Training & Development enhances this so that the VRIO model leads to competitive advantage – Invest in/develop employees to retain them and ensure they are engaged and motivated  Psychological Contract (Rousseau 2000) – Individuals’ beliefs in a mutual obligation between themselves and their employer/supervisor. If this is breached then turnover, absenteeism, lack of engagement may result  Hurst and Good (2009) – This may predict graduates’exploration of different career alternatives and benefit companies’recruitment efforts.  Holland et al (2007) – importance of developing talent to retain and motivate them  Jones et al (2012) – questions notions of talent management and focus on individual talent rather than a more strategic approach Top five retention factors (Nankervis et al 2014: 290)  Survey of Australian workers in 2012 found the following 5 retention factors – Flexible work arrangements (work design) – Interesting and challenging work (work design) – Good manager/supervisor (recruitment/training) – Reasonable pay/salary (remuneration/rewards) – Autonomy and empowerment (work design) 12 9/18/2015 5 Talent Retention (retention levers)  How to retain employees may depend on what they value and what motivates them at work and their views about careers – Baby Boomers: • Motivated by financial security and responsibility • Career concerns are related to reputation and tradition • Prefer formal training • Retention best managed using recruitment and supervision – Gen Ys • Motivated by job variety and creativity • Career concerns related to experience and perceptions • Prefer interactive/multimodal • Retention best managed by innovating and empowering (see page 289 Nankervis et al 2014) 13 Retention and development are important because…  Need talented people to fill gaps  Talented people get poached or leave which leads to high turnover costs  Technology and innovation require continuous learning  Ageing workers demand longer careers, Gen Ys and Xers face long careers and life long learning  Development linked to meaningful work ie engagement, motivation and productivity Delloitte 2013, 46. 14 Training and development  Training and development can address job dissatisfaction, reduce voluntary turnover, prevent the need for involuntary turnover  Use training and development practices to align individual goals with corporate goals. Enhances: – Job involvement – Job satisfaction – Organisational commitment – Job enrichment – Addresses role conflict or overload  Supports work motivation and meeting employee needs 15 See page 588-594 of your text 9/18/2015 6 Gen Ys think development is important (see also Hurst and Good)  “Among university students, the five most organisational attributes are “invest heavily in the training and development of employees” “care about their employees as individuals” “clear opportunities for long-term career progression” “variety in daily work” and “dynamic, forward- looking approach to their business”’ (Terjesen, Vinnicombe & Freeman, 2007:504) Example from KFC  Employees join the company as young casual employees  Working at KFC viewed as a “dead end job” and lacking development and career possibilities  KFC have developed – Graduate Leadership program which provides a clear career path – In house MBA for managers – Education assistance program “For us, in the way we run our restaurants, cutting back on development is disastrous,” he said. “In order to run a successful business you simply need people to develop and you need to be able to staff the future business appropriately. If you can’t do that, you’ll suffer a lot of long-term difficulty” (Chief HR Manager KFC). 17 http://www.hcamag.com/ Also findings from Hurst and Good (2009: 588)  Attraction and retention strategies for Gen Ys – Focus on developing employability via training and development – Challenging work and task variety (also development focused) – Continuous performance feedback and instant gratification via perks and bonuses – Flexible work environment – Total rewards not just pay http://www.hcamag.com/ 9/18/2015 7 Tools for retention: Training and development  The Hay study highlights the importance of training and development – Enable employees (allow them to do their jobs well by resourcing them) – Ensure adequate access to training (so they can do their jobs well) – Have regular conversations about employee performance and provide feedback – Focus on developing employees 19 Training and developing at Deloitte http://www.youtube.com/watch?v=O3aOXEjHysM What do Deloittes offer their employees? Why do they do this? 20 Training  Develops workforce skills.  Job focused and short term  Addresses constant changes eg changes in technology, regulation etc  Many firms have well developed training systems (see page 377) to ensure quality of work outcomes/services 21 http://www.youtube.com/watch?v=O3aOXEjHysM 9/18/2015 8 Approaches to training and learning  Non-managerial staff – On-the-job learning – Classroom methods – E-Learning – Simulations – Apprenticeships/ traineeships – Certificate courses  Managers and supervisors – On-the-job experience • Coaching, mentoring, shadowing – Conferences & seminars – Experiences – Formal education See pages 302-308  Managers and supervisors – On-the-job experience • Coaching, mentoring, shadowing – Conferences & seminars – Experiences – Formal education Training and development at McDonalds  Formal training – McDonalds is a ‘Registered Training Organisation’ – Spends $40m per year on training frontline staff and career development  Global learning – Learn from McDonalds’ best practice in other parts of the world  Succession planning – Bringing crew up through the ranks – 80\% of restaurant managers started as crew http://mcdonalds.com.au/#/careers Employee development  Formal education  Assessment  Job experiences  Interpersonal relationships – Mentoring and coaching  Career support systems – Mentoring – Coaching – Career management systems http://mcdonalds.com.au/ 9/18/2015 9 Employee (career) development  Future and holistic – Look at future needs and aspirations – Focus on work & non-work roles  Systematic approach – Determine individual and organisational needs – Career development plans and programmes – Succession planning Career advancement of indigenous employees  Report for Victorian Public Sector organisations found – Need for govt. to proactively increase access to and participation in professional development for indigenous employees through • Formal mentoring, coaching and job shadowing • Secondment opportunities • Peer mentoring • Recognition of high performing staff • Enhance cultural safety • Share best practice. http://www.pwc.com.au/industry/government/publications/indigenous-career-advancement.htm 26 Careers: some theory  Psychological contract – The expectations that employers and employees have of each other.  Psychological success – self actualisation – the feeling of pride and accomplishment that comes from achieving life goals.  Diversity of career needs  Succession of unrelated jobs  Growth in technical expertise  Value flexibility and autonomy 9/18/2015 10 Careers and younger workers……  “It’s a very Generation Y thing to say, but I think that having the flexibility to change the direction of your career from within a company is very important,” says Dunlop. “This may involve training in a new specialty, or working in a different country. What is important is that your career trajectory doesn’t appear to be fixed from the outset.” http://www.humanresourcesmagazine.com.au/articles/F0/0C0670F0.asp?Type=60&Category=880 See 314-320 of your text Careers: key concepts  Career – Series of work-related experiences  Career development – Training, experiences, activities and tasks  Career planning – Deliberate process  Career management – Organisational activities to support and facilitate career progress See pages 313-320 of your text  Career planning (employee centred) – What are your goals and aspirations? – 3 years? 5 years?  Career management (organisation centred). Responsibilities and benefits on both employees and employers – Motivation and engagement through promotion – Succession planning Retention and Development Horizontal integration Link between training and development and other key HRM Activities HR Planning Reward Management Job Analysis Competency profiling Attraction Recruitment & Selection Performance Management & Appraisal 9/18/2015 11 Summary  Increasing competition, accelerating change and relentless restructuring have made career planning and development critical for both organisations and employees.  Effective career planning is essential for employees if they are to fully achieve their career objectives.  Organisations, in turn, must realise a better match between employee career aspirations and job opportunities to obtain the supply of qualified human resources needed to achieve strategic organisational objectives.