7-Eleven HRM: Addressing Employee Turnover and Engagement Issues

This report examines the strategic human resource management (HRM) challenges faced by 7-Eleven, a multinational retail chain operating in numerous countries. The report highlights key issues such as high employee turnover and low employee morale, which are prevalent in the retail sector. It...Read More

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Executive Summary
The present essay discusses the issue related to strategic human resource management in 7-
Eleven. The company is a chain of retail stores, operating in 18 different counties. It is facing
several HR issues relate to employee turnover and engagement within the organization. The
present essay highlights the issue and discusses strategies to address them. Flexibility and
employee mentoring are considered as an important activity to enhance the productivity of the
organization. Mentor shares knowledge and experience with other persons. It is used to enhance
the self-esteem and improving the productivity of the employees.

The present essay is focused to analyze the HR issues in 7-eleven, a chain of accommodation
stores with headquarters in Texas. It is the largest operator of franchisor of convenience stores
and operates in around 18 countries. The company is a part of the service industry; therefore,
human resources are critical to the progress of the company. The company is facing several
issues such as high attrition rate and low employee morale. The current essay will provide
recommendations to address these issues.
7-eleven is a chain of convenience stores. It operates under franchise model, which means that
the organization has opened franchise stores at different locations. Further, franchisee returns a
share of feedback to the parent company. As a part of the retail industry, the attrition rate of the
employees is very high (Katoch, 2017). Therefore, the company should adopt different strategies
to address the issue of employee attrition.
The present essay will try to provide recommendation to uplift the HR strategies in 7-Eleven. It
will also provide recommendations, regarding how HR can improve their performance at a
dynamic workplace.
In the present section, the key challenges faced by the organization in the field of strategic HRM
are discussed. The main issues are employee safety, employee acquisition, employee retention,
employee recruitment, imitability and bad brand image of the organization. In the retail industry,
the employee safety is crucial as they have to undergo physical activity in different operations of
retail stores. Further, in retail industry, employee retention and employee selection becomes a
challenge as the employee quickly leaves the organization due to lack of career growth and stress
(TONNY, 2016). If the employees do not a good experience with the organization, they tend to
leave the organization and bad mouth about the organization culture and policies. As a result, the
company remains unsuccessful in retaining these employees within the organization.
The Schuler’s 5-P model is used to improvise the human resource practices of the organization.
It is crucial in building a successful business. The present model is aimed at improvising the
policies, culture, values and practices of the organization. The 5-P model states that the
philosophy, politics, programs, practices and processes of the organization should be
strategically linked with the operations of the organization.

The Human resource executives have an integral part in the operations of the organization as
they are critical in recruiting the right candidate for the job profile and retaining them within the
organization (Armstrong & Taylor, 2017). With this exercise, it was realized that there are
several issues faced by the HR manager of the organization. The HR manager has to make
compromise between the compensation packages and the talent or skill-set of the candidate.
Several times, the candidate selected by the organization are not correct and cannot fulfill the
given responsibilities. The behavioral aspects of the employees are also crucial in the
organization performance (Director, 2012). If the behavior of the employees does not merge with
the organization culture, it will create challenges for the organization. It will decline the team
spirit of the employees. It has been realized that there are several strategies of the HR executive,
which can be used to select and recruit the employees in the organization. It can be stated that
there are several set of competencies available to the HR executives, namely, result orientation,
strategic orientation, team leadership, ability to lead change within the organization,
collaboration, developing organization capabilities and enhancing the functional competence of
the organization (Mathis, Jackson, Valentine & Meglich, 2016).
It is important that the HR analyze the key to motivation of the employees and use it to create a
motivation and engagement strategy for the employees. In the initial stage of employment, the
employees are motivated by the financial incentives; however, in the later stage of employment,
the employees are concerned about the reputation and employee recognition (Durai, 2010).
Further, it important to show that there is career progression in the initial stage of employment.
When the employees will see that they can grow their career within the organization, they will
stick with the organization. They will also try to work more than the prescribed working hours to
rise within the organization. I realized that employee empowerment is a unique strategy to
increase the employee engagement within the organization (De Vito, Brown, Bannister, Cianci,
& Mujtaba, 2018). The employee empowerment is the strategy to give autonomy to the
employees. The high performing employees are independent, problem-solvers and enhance the
skills of the company. The employee empowerment requires building trust with the employees
(Njoroge & Yazdanifard, 2014). The employees feeling empowered and trusted will not leave
the organization.

7-Eleven is a large multinational retain chain struggling with the different HR issues. The major
challenge for the organization is extremely high employee turnover. The company recruits
students and undergraduates for the maintaining the stores of the company. However, these
employees frequently leave their organization for further education (Aryee, Walumbwa,
Mondejar, & Chu, 2015). The students also find the job extremely stressful. Therefore, the HR
executive must intervene to reduce the employee turnover. The organization should develop
strategies for the career growth of these employees, so that they can see their future there
(Jayaweera, 2015). Along with it, the organization can also offer flexible timings, so that the
employees can pursue higher studies, without leaving the organization.
In order to deal with the issue of stress, the company should offer different benefits and flexible
policies to the employees. It is important that the company offers attractive packages employee
compensation and benefits. The organization should offer a combination of financial and non-
financial benefits so that the employees remain attractive to the organization. The performance of
the organization is dependent on the performance of the employees (Barrick, Thurgood, Smith &
Courtright, 2015). Therefore, it is important to create a compensation structure so that the
employees remain constantly motivated. The employees of the organization can be motivated by
introducing performance-linked incentives.
In order to enhance employee engagement and performance within the organization, the
company can introduce the scheme of employee mentoring and coaching. The coaching and
mentoring is a part of the people or employee management. The coaching and mentoring enable
employee development and enhance the performance level of the employees (Bal, & De Lange,
2015).
The coaching is a management development program, which is implemented by the hiring
manager to enhance the performance and the skills of the employees. Mentoring is a career
development program, wherein an experienced person motivates and guides a young
professional. The coaching is a capacity development program, in which the employees are
provided training to improve their behavior and performance at the workplace. The employees
can enhance their efficiency, job behavior and training needs to improve their performance at the
workplace (Subramaniam, Silong, Uli & Ismail, 2015).

On the other hand, mentoring is a development activity, in which the mentor possess knowledge
and experience and shares it with other persons. It is used to enhance the self-esteem and
improving the productivity of the organization. Coaching has a vital role in the human resource
development of the organization. In a business organization, all the individuals need supervision
and support in the career progression and employment.
The strategic human resource management is strategic department of the organization, which is
essential to support the business strategy of the organization. The HR department of the
organization has to face several challenges in the implementation of the strategy in the
organization. The strategy implementation encounters resistance as it is a new strategy. Several
practical lessons were learnt during the exercise. It was analyzed that the HR department has to
set performance target to achieve performance goals (Chance & Steaffens, 2009). The company
should conduct a clear analysis of opportunities and challenges in the business environment.
These measures help the organization to create a future for the organization. The human resource
KPI (key performance indicator) can be used to analyze the performance of the department. It
should develop a vision, against which the success of the HR department should be analyzed.
The company should analyze the performance and process targets and form action plan for the
organization. Further, it is important for the HR executives to coordinate with other departments
and establish trust for the upcoming stages of HR strategy implementation. The HR managers
should create a complete workplace plan so that they can reach their business goals (Gregory &
Levy, 2010). The company should also establish workplace planning so that they can meet the
goals of the organization by providing adequate human capital.
Conclusively, it can be stated that 7-Eleven is a retail chain of stores suffering from various HR
issues. In the present essay, several strategies and recommendations have been made so that the
company can address the HR issues of the organization. In the present essay, several
recommendations have been made to address the HR issues of the organization. The essay has
provided recommendations to improve the individual performance, organization performance. It
has also discussed various practical lessons, which can be derived from the activity. The
company is a part of the service industry; therefore, human resources are critical to the progress
of the company. The company is facing several issues such as high attrition rate and low
employee morale.

References
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