Challenges in Attracting and Retaining Workforce in Financial Industry

MANAGEMENT OF
HUMAN RESOURCES
Running Head: MANAGEMENT OF HUMAN RESOURCES 0

MANAGING HUMAN RESOURCES 1
Table of Contents
Introduction................................................................................................................................2
Top challenges in attracting and retaining workforce................................................................2
Conclusion..................................................................................................................................7
References..................................................................................................................................8

MANAGING HUMAN RESOURCES 1
Introduction
In today’s time organization uses digitalization across the sectors of businesses for
recruiting and retaining employees. The financial industry needs more technical expertise on
the payroll in subsequent years. This will support the leaders to manage change more
effectively. This industry has many challenges to attracting and retaining the best people that
are essential for successfully inventing and competing in a digital environment. Financial
organization is fighting for skilled people due to traditional segment rivals. Currently, the
financial segment is facing many challenges regarding retaining and inviting a competent and
skilled workforce (Mishra, 2012). This is also right that management can handle the issue of
employees. Many measurement tools are very useful to solve the issues of employees. The
following discussion will cover the challenges held by the financial sector regarding
recruiting and retaining a workforce. Many challenges are discussed like performance
management, motivation, compensation and reward, challenges of worker relation, and
worker revenue as well as retaining.
Challenges in attracting and retaining employees
Human resource management utilities, analysis of job and design of the job are the
most important concept that increases the level of performance of workers and also facilitate
employees to achieve professional objectives and goals. A large number of financial
organizations in Australia are not using diverse motivational approaches to design the
employee’s jobs (Bedi & Kharbanda, 2014). There is a gap in the job redesign and
employee performance in organization success. The level of job satisfaction in the financial
sector of Australia is very poor as the satisfaction of employees' jobs has reduced due to a
lack of redesigning jobs. The change management process in the Australian financial sector is
very weak as not capable enough to deliver the organizational requirement that supports
employees within the organization. The diverse areas of HRM functions are not used to
maintain the good performance level of employees. Recruitment and selection function is the
main rehearsed of human resource management that has an important relationship with a
highly involved organization workforce. Many of the results have found that retaining
productivity at the organizational level in the economic environment of business is the main
task for HRM (Goncharuk, 2016). There is no focus on varied features of the vacancy like
internal staffing, external staffing, and high pay approaches by HR management of a financial
organization.

MANAGING HUMAN RESOURCES 1
The human resource management of the Australian financial industry for recruiting
and retaining employees not considered recruitment diverse source, public employment
assistance, private employment assistance, internet recruitment, and advertisement
institutions as these carry good employees for organizations. There are many financial
industries not focuses on the selection criteria like interpersonal skills, knowledge at the
financial level, skills of leadership, competency of teamwork, the experience of work, and
emotional intelligence. Communiqué skills of employees and financial information are the
main area that the financial sector did not evaluate in recruiting employees in the
organization. Many of the financial industries in Australia did not follow the recruitment
criterion for recruiting workers in the business. Cultural compatibility has not emerged as a
principal theme to consist of skilled employees in the dominant workforce. The management
of financial industries thinks that recruiting at culturally misfit employees can generate many
issues to increase the productivity of an organization (Verma, et al., 2017).
Lack of participation of culturally diverse workers becomes a threat to the growth of
an organization in the multiracial society. This is very important for the human resource
management of Australian financial organizations to focus on employee recruitment from a
different culture to increase the skills and capabilities of the workforce. Australian financial
industry should modify its attitudes of recruiting employees that fit the culture and develop
the abilities of the employee to reduce employee revenue rate to a great extent. The criteria of
the financial industry of Australia for recruiting and retaining employees is not aligned with
the objectives and goals of the organization to curb employee turnover issue. The financial
industry of Australia has not sufficient programs to focus on individual growth and employee
career (Goyal & Prakash, 2011).
There is no procedure of assessment of the main function of HRM that needs to take
for increasing employee’s knowledge domain of advanced financial system and diverse
emerging technologies. Employee's ineffective assessment training needs can cause an issue
of skill shortage for financial organizations (Vutsengwa & Ngugi, 2013). There is
undeveloped strategic about efficient communication and diversity management in pre and
pose merger situations. HR of the financial industry does not take effective responsibility and
role to improve employees associated with the organization. The industry of finance has
found a shortage of mid-career candidates by losing the workforce that dejected the economic
downturn. Mid-career candidate shortage provides a clear sign that the industry is feeling the
effects of the recession of 2007. A large number of population forego to work in a leading