Management Related to Human Resources

Running head: MANAGEMENT RELATED TO HUMAN RESOURCES
Management Related to Human Resources
Name of the Student
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MANAGEMENT RELATED TO HUMAN RESOURCES
Introduction
The essay helps in the overall kind of analysing and conducting a proper research
which is based on understanding the challenges faced by the financial or banking sector in
attracting or retaining various types of employees present in the entire Australian finance
sector. The increased level of the employee related turnover in the different kinds of
employees has not only affected the growth of the banking sector, it has increased the cost of
managing the human capital to the high level of extent. According to Yong et al. (2020), the
turnover of employees has the significant relationship with both monetary along with the
non-monetary rewards along with benefits provided to employees.
The Australian Financial Sector is playing a significant role and helps in
strengthening economic structure through making the massive level of contribution to the
entire Gross Domestic Product. With the help of various financial records which have been
released by the government,the banking sector has been capable of making the contribution
of $150 billion to GDP in the year 2018. There are more than 450000 employees are
employed at the financial sector of Australia who have the capability in contributing towards
the growing level of workforce (Wang&Reger, 2017).
Though, in few decades, despite of the growth which have been happening, the
respective industry has been encountering the high turnover of employees. The respective
essay has been able to advance analysis of the Human Resource roles along with
responsibilities for overcoming the turnover rate to some extent from the finance sector.
There has been inclusion of five major themes that includes design and analysis of the work,
development of human resource, and recruitment along with selection, career planning and
the strategic HRM Chung, 2019).

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MANAGEMENT RELATED TO HUMAN RESOURCES
Identification of Challenges in the Attraction and Retention of the Employees in
Finance Sector
There are various kinds of functions of HR managementwhich includes job design
and job analysis as it enhances the performance level of employees and facilitate the
employees in achieving the professional goals along with various objectives. In case of
financial sector, there are different issues which includes the following challenges in
retention of the suitable employees in the banking sector which are described as follows:
Skills Gap-Shen& Benson (2016), have observed that the Skill Gap in finance
industry is continuously widening in the last few years and in the year 2016, from the
different surveys, it has been found that more than 70% of the financial services, the Chief
Executive Officers have been able to check the availability of the different key skills which
are considered to be the threat to the growth. Due to the such aspects, it leads to the
ineffectiveness in the performance of the finance sector in Australia. Presently, many
organizations in the finance sector have lost the popularity from the time of economic
downturn and it is influencing the entire performance of the entire organization successfully
(Rothaermel, 2016).
Retention of Millennial Talent- The retention of employees in the financial or
banking sector is the key element as through the different surveys, it is being clearonly 10%
of the millennials plan to work in overall long prospects. Moreover, due to such happenings,
it costs the company an average of $4129 for hiring the replacement, it has failed in retaining
different kinds of employees. The surveys have confirmed the fact that more than 90% of the
millennial workforce might not be sticking around the same for long span of time and it
influences overall performance of the organization negatively (Reiche, Harzing&Tenzer,
2018).

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MANAGEMENT RELATED TO HUMAN RESOURCES
More Power and Choices- Presently, the millennials in the Australian economy are
having huge choices to change their jobs and it influences the company’s
performanceadversely. In the current economy, it creates huge power in the hands of the job
seekers as the candidates are becoming choosy about the different other job offers which are
coming their way (Okolie&Irabor, 2017). The candidates are risking their current job for
achieving better opportunities and it puts huge level of pressure on banking sector companies
for retaining the employees. It is the most challenging aspects which is affecting the
performance of financial organizations and the toughest part in performing is that the Human
resource manager is simply trying for appeasing to appease needs of everyone.
Creation of Attractive Workplace Culture- As per the surveys which have been
conducted, it is noticed that more than 70% of the professionals in the Australian economy
prefers to leave the organization wherein the culture is bad and there is no respect provided to
the employees as well (Troth & Guest, 2020). Currently, the culture matters both for
employees and employers and it is importantfor the organizations to keep a check on the
enhancement of the services in a negative manner. The shortage of the mid-career candidates
and they are losing their interest from one workforce within a short span of time. Hence, it is
creating ineffective in the entire performance and closing the current skill gap as well (Kim et
al., 2019).
According to Androniceanu, Gherghina and Ciobănaşu, (2019), it has been found that
the cultural fit is the main aspect that is required to be adopted by the different organizations
as it is the criteria related to the recruitment. In the recent era, the cultural compatibility is the
key element that includes the skilled employees in the banking sector in the existing
workforce. On the contrary, as argued by Im et al. (2016), the lack of proper involvement of
the culturally diverse employees become threat to the organizational growth and it impacts
the level of advantages which can be earned by the business. In respective case, the