HR Plan Impacting Business

Running head: HR PLAN IMPACTING BUSINESS
HR plan impacting business
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HR PLAN IMPACTING BUSINESS
Introduction
The significance of human resource management (HRM) in strategic management of
organizations has been well acknowledged. HRM is a function within an organization that
concentrates on recruitment, management and direction of human resources. It further deals
with the issues pertaining organization development, performance management, benefits,
safety, wellness, employee motivation. Organizations are to ensure a robust HRM plan and
integrate the same into the functioning of the organization to achieve best outcomes.
Companies are required to be adaptive, resilient, and responsive to changes to become
customer-centered. Such an environment is crucial for the effectiveness of HRM is crucial to
business success. The present report is based on the case study of RestInsured UK which is
a multinational insurance business operating in USA, Western Europe and Asia. With a base
of 30 million customers and around 15000 employees, the organization strives to achieve
epitome of success in near future. It is to be noted that the business has been failing to address
challenging market conditions including evolving customer needs and financial pressure. The need of
articulating a new strategic plan has been acknowledged that would focus on different aspects of
operation management. The report aims at contributing to the development of the business plan
within the UK and ensures the provision for changes needed for responding to the challenges
of the UK market. The objective is to deliver the benefits needed by the RestInsured Group.
The written document focuses on the priorities for the organization for the next three years.
Specifically, the report outlines the analysis of the strategic priorities for the UK business. It
then identifies any immediate and longer term risks for the business in relation to HR and
proposes solutions for addressing them. Further, a persuasive business case is created that
encompasses the capabilities, budget and resources that would be required for delivering the
proposal.

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HR PLAN IMPACTING BUSINESS
Background and problem situation of the organization
RestInsured Group (RI Group) is a multinational insurance business that as a global
presence with three operation units namely RI Asia Pacific, RI UK and Bart National Life
Insurance (USA). The company had been established over 80 years ago with the headquarters
at UK. Since then it has witnessed growth principally as a result of acquisition into the
leading Life and Pensions provider in the UK. At present it primarily focuses on savings and
insurance products. As per the reports of the last financial year, RI group had around 15000
staff employees and around 30 million customers. They are one of the best capitalized
insurers in the world that has a capital surplus estimated at around at £3.1 billion and £300
billion of assets under management. The company is a noted insurance provider in the UK
that provides general insurance and pension products. The customer base of the company is
estimated to be at seven million. The head office of RI UK is at Birmingham. The UK
business has two Divisions – General Insurance and Life & Pensions. It is to be noted that
each has a separate executive teams, that reports into the UK CEO. The company on last July
had acquired Southern Life that was a competitor focusing on long term savings and
investments products. An instantaneous priority has been felt for the UK businesses to
streamline.
The problem situation for the RI group relates to three precise concerns. These are
tougher trading conditions, changes in customer habits and demands, and stringent
government regulations. Further, another challenge within the UK Life and Pensions Division
is related to securing the integration of the newly acquired business. Tougher trading
conditions are the impact of economic downturn in the market. Further, growth potential of
competitors also leads to such challenges. The company therefore acknowledges the need to
ensure increased capital for meeting forthcoming regulatory demands. Economic downturn

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HR PLAN IMPACTING BUSINESS
refers to the fall in real Gross Domestic Product (GDP), as a result of which there is lower
inflation, falling rate of economic growth and lower investment. The condition compels
organizations to come up with strategies that can enable increase in sales through focusing on
competitive advantage. During an economic downturn, trading conditions are difficult since
marketing tools are not aligned with the needs of the changing market (Bratton and Gold
2017).
RI group further faces challenges due to an evolving nature of customer demands and
habits. The rationale behind such shift can be attributed to technologically sophisticated
consumers. In addition, there has been a rise in custom-built retirement plans that have
actively met the needs of the customers. As opined by Brewster, Chung and Sparrow (2016)
the modern day customers are focused on investing in a smart and effective manner that can
help them achieve benefits on the long run. The contemporary customer might be putting
forward vague demands that are also unstructured for modern processes. The rapid
advancements in the era of technology adoption indicate that the expectations of the
customers are novice, and create a conundrum for companies that aim to cater the needs.
Coming to the challenges faced in relation to stringent government rules it is to be mentioned
that the government’s ‘Pension provision for all’ policy has impaired the business of RI
group. The provision for pension schemes has led to a cut down in the sales of insurance
products as pension schemes are found to be economically profitable for them with high
returns in shorter time span (Bratton and Gold 2017). The company also faces issues in
adhering to EU and Financial Service Authority regulations. The need of aligning the
financial reporting standards globally has also been perceived as a major challenge. From the
technical perspectives the policies of the government that can influence the business in a
direct or indirect manner are taxation, interest rates, exchange rates and public-private
partnerships.