HRMT20024 - Essay: Managing HR in the Australian Finance Sector

This essay delves into the critical human resource management challenges within the Australian finance sector, focusing on the significant issue of employee turnover. The research identifies key problems such as dissatisfaction with salary, competitive job market offers, lack of job redesign leading to employee boredom, cultural misfit in recruitment, and insufficient learning and development opportunities. The essay further explores strategies to mitigate these challenges, including effective onboarding, reward and recognition programs, fostering open communication, and implementing strategic human resource management (SHRM) practices. It emphasizes the importance of ethical HR practices, job redesign, and cultural fit in recruitment to enhance employee motivation and reduce turnover, ultimately contributing to the financial sector's overall growth and stability. The essay concludes by highlighting the vital role of HR in aligning employee needs with organizational goals and the importance of adapting to the evolving expectations of the workforce to ensure long-term success. The essay also provides a comprehensive review of relevant literature, and the essay follows the guidelines for HRMT20024 course assessment.

Running head: MANAGING HUMAN RESOURCES
Managing Human Resources
Name of the Student
Name of the University
Author note

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Introduction
The major purpose of the respective essay is conducting a proper research in identifying
the issues in attracting and retaining the different employees in the banking or finance sector in
Australian economy. There has been increased turnover among the different employees which
has affected badly the growth of the finance sector in Australia, along with increased the cost of
the management of the human capital to a large extent. As stated by Tunji-Olayeni et al. (2017),
there is direct proportional relationship between the monetary and non-monetary benefits along
with employee turnover. The banking sector of Australia helps in strengthening the overall
economic development of the country by increasing the overall GDP of the country to a large
extent.
As per the different financial records of the country, there is a huge contribution of $150
billion Gross Domestic Product in the year 2018. Moreover, there are more than 450000
workforce of the financial sector in Australia has been suitable in making a huge impact on the
growth of the economy (Thibault Landry, Schweyer & Whillans, 2017). However, despite of the
strength of financial sector, there has been huge level of turnover among the different employees
over the last few years. The respective research essay will be based on analyzing various kinds of
functions of Human Resource which includes career related development, Job Design, SHRM
that are suitable in reducing the turnover among the employees.
Issues While Attracting as well as Retaining Workforce in Finance Sector in Australian
Economy
There are different kinds of functions of the human resource management team in the
different companies including the financial sector in Australia that leads to the enhancement of

2MANAGING HUMAN RESOURCES
the overall performance of the employees. The job analysis along with design are the two crucial
elements which is maintained by them that can be motivating the individuals in generating high
performance and achieve the professional goals and objectives sustainably(Stroup & Zheng,
2016). Motivation is the key element that is included in the process of motivating the different
individuals suitable in enhancing the employee’s performance.
According to Sousa et al. (2017), the dissatisfaction related to salary is the foremost
element that is prevalent in the finance sector. Every employee working in the company has high
expectation related to salary and it is one of the major reasons for the dissatisfaction among
employees and increase in turnover among the employees to a large extent. As stated by
Rönnqvist et al. (2015), in such scenario, the retention becomes a huge issue for the companies
as there is a budget for each company and they cannot exceed the same for satisfying
requirements of employees. Due to the same, it leads to the ineffectiveness in employees
performance that decreases the productivity of the company.
In addition, there is ample of job opportunities in the finance sector that is affecting the
employees retention to a large extent. As stated by Obeidat, Al-Khateeb and Abdallah (2019),
there is cut-throat type of competition prevailing in the industry which provides the company
with the different opportunities to attract best talent who are present in market. The different
organizations go a long way in luring the talented resources from the different competitors.
Availability of different lucrative offers make it difficult for retaining good talent in long way
and it impacts the productivity of the company negatively.
Moreover, as stated by Montague, Burgess and Connell (2015), there is lack of job
redesign in the organizations, there is boredom which occurs among the employees and due to

3MANAGING HUMAN RESOURCES
the same, it becomes a huge issue for the company’s growth. The monotonous kind of work is
the most ineffective element which leads to the boredom among employees that affects their
growth prospects and there is lack of opportunity in finance sector. The employees look for the
other avenues in the market in finance-related sector as they feel that they are talented and due to
lack of opportunities, they leave the job that affects their growth (Mohan & Nalini, 2016).
Moreover, according to Mohan and Nalini (2016), there is direct relation between the job
redesign and the presentation of workers that it can create both positive and negative impact on
the growth aspects of subordinates and organization as a whole. Furthermore, according to
Mohammed (2016), various issues in the recruitment and selection processes wherein it is seen
that there is presence of cultural misfit among the employees due to which they are not involved
in the process of selection. In the recent era, there are various issues related to cultural
compatibility due to which many talented employees are not getting jobs and it affects their
motivational approaches negatively as well.
According to Kamardeen and Sunindijo (2017), no learning and development processes
for employees regarding financial aspects can impact the productivity. There are no on or off the
job training procedures that affects their performance negatively as there are no vocational
Education and Training programs that create inefficiency in the performance of employees’ and
it leads to the loss of productivity negatively. Due to the same, there is a performance gap among
the employees that is leading to the negative approaches in the entre process of the retaining
employees. As stated by Hattke, Homberg and Znanewitz (2017), the culture of the company is
the biggest misfit that is creating huge pressure on organization to attract and retain the talent
employees. More than 70% of the workforce in Australian economy is young generation who

4MANAGING HUMAN RESOURCES
prefers the flexibility and the job redesign as they get uninterested with similar tasks within a
limited period.
Due to the same, it is essential for employers in the companies to adapt a workplace
culture which will be suiting the needs of employees as they are the main asset and their opinions
is required to be valued. According to Katou (2016), job seekers have various choices and high
level of power that can be difficult for the companies to match up to which leads to the negative
implications on the generation of profit and revenue of the company negatively. Moreover, as
opined by Dhakal et al. (2017), the different job seekers have various job expectations which are
unrealistic and it impacts the work culture of the companies. It is not possible for the companies
to match up to the expectations of subordinates which is the main reason, employees search for
job change in the competitive business environment leading to negative repercussions on the
growth (Craig, 2017).
Therefore, from the above analysis, these are the major aspects and challenges faced by
employers in retaining and attracting talents in the finance sector in the Australian economy. Due
to the lack of proper training and development, lack of flexibility and high choices among
employees, the employers and the other higher level management of the companies need to
incorporate the different strategies appropriate in improving the aspect and it can be assisting in
analysing and understanding the prospects of growth suitably and helpful for managing the
different effectiveness positively.
Strategies in Reducing the Employee Turnover in Financial Sector in Australian Economy

5MANAGING HUMAN RESOURCES
The appropriate strategies can be incorporated by the companies for improving their
growth along with employees important for the success. The strategies which are included in the
process of attracting as well as retaining them include the following aspects:
Firstly, on-boarding along with orientation are the two aspects which should be adapted
by the companies for retaining talented employees. As to make subordinates established within
the organization, on-boarding is defined as the continuous process through which the employees
are established from the first day of joining organization and it can be easier for them to
commence the work without any difficulties (Clair, 2016). Job satisfaction is the critical element
which is required for employees and the company needs to closely enhance the relationship
between employer and employees. Moreover, it helps in depicting the day to day tasks and it is
relevant to achieve the organizational goals in a successful manner as well (Bussin & Toerien,
2015).
Reward and recognition program is the second aspect which is required to be adapted
specially the finance sector in the Australian economy. Appreciation makes the employees happy
and making them competitive in achieving the organizational goals (Bland, Church & Luo,
2016). The appreciation can be small, however, when the organization showcase that they care
for their employees, it makes them feel happy will be reflected on tasks being executed. The
recognition programs can include financial or non-financial rewards which will improve their
relationship between the higher authority and the subordinates apposite for the workplace
achievements.
As stated by Bigelow et al. (2016), the development of effective communication along
with diversity management practices, the HRM can overcome the different challenges in

6MANAGING HUMAN RESOURCES
retaining them. As argued by Barbara, Grolleau and Mzoughi (2019), the proper assessment of
competencies and skills along with implementation of continuous learning environment, are the
two significant functions of the HR department in attracting and retaining talented employees. As
to engage the skilled workforce in financial organizations, the Human resource management
team requires to mainly focusing on the different strategies related to SHRM such as
formulation, assessment, and control along with implementation of the factors suitably.
Additionally, as stated by Presbitero (2017), for reducing the turnover in Australian
finance sector, the functions related to HRM is designed and shaped according to the ethical
guidelines. As per the research, the different policies of HR need to be transparent and
implementation requires to be done in an ethical manner in financial companies in Australia. It
will be resulting in motivation generation among the employees for a long span of time. It is
related to inclusion of job redesign such as rotation of job can be decreasing the boredom caused
to employees and plays effective function in creating work-life balance. With the inclusion of the
strategies related to diverse-pay, the fair pay, the HR managers can motivate employees and
there will be no such difference between the pay structures of employees.
From the entire analysis of the different strategies of the Human Resource Management,
the different roles and responsibilities of Human Resource Management plays a vital role in
improving the association of subordinates with the company. One of the main findings of the
process of the job design is the fact that HR managers need to take care and analyze the proper
responsibility for identification of whether the different tasks that are being assigned to the
employees are doable which will increase the motivation among employees and it will be leading
to huge revenue generation of the entire company. In the current years of environment, the

7MANAGING HUMAN RESOURCES
different Australian based financial or banking sector companies try to use the diverse
motivational approaches for designing the different jobs for employees (Presbitero, 2017).
With the help of the same, the different subordinates are important and their opinions are
being taken into consideration. The cultural fit is the major recruitment aspect or a criterion that
needs to be present in the process of selection as there are different talented employees who are
not receiving jobs for terms and conditions of culturally misfit. SHRM helps in overcoming the
respective challenges and increase the productivity of the organization and employees as a whole
(Clair, 2016). As to reduce the turnover among the employees, there are different HRM functions
such as career development, onboard training and development practices, flexibility along with
proper recruitment and selection that can enhance the effectiveness and the company will be
performing the activities as per the ethical guidelines.
Conclusion
Therefore, it can be concluded that the researcher has been successfully discussing the
diverse functional areas of the Human resource Management prospects for reducing the issue
related to turnover among employees in the banking sector of the Australian economy. It has
been noted that the proper job analysis along with job design helps in supporting the career
growth. The flexibility in the workplace is effective constituent that can be implemented with the
help of different companies as they are important and the young generation prefers to move from
one to other job within a short span of time. The young generation employees do not like the
same kind of job as they feel it is monotonous and they prefer to work in a suitable manner for
themselves and the organization only when they see that there is flexibility and it can enhance
their work prospects in a sustainable manner.

8MANAGING HUMAN RESOURCES
Moreover, the career planning as well as job redesign are the two major elements which
need to be incorporated in Australia as these will be helping in reducing the turnover among
employees and there will be high level of increase in the revenue generation. As opined by the
different authors, the employee turnover creates a huge negative impact on the workplace and it
influences entire economy of the country in a negative manner. It helps in indicating the fact the
organization needs proper modification as they are not able to match up with the industry
standards and due to the same, there is decreased productivity level. Additionally, the retention
helps in building the image and brand reputation that is appropriate for the future success of
organization.
In respective scenarios, the different companies undertake the various strategies for
increasing employee retention such as generation of flexibility, orientation or on-boarding that
will make them conscious that they are the most valuable part and their presence makes the
company achieve greater heights in the competitive business environment as well. In scenarios,
the different companies provide lucrative kind of offers and salary packages that make them
analyze and they generate high level of revenues and productivity. The incentives and rewards
are the other aspects are introduced by the companies for appreciating the work and the flexible
duty hours has been suitable for employees as these will not create boredom and they will be
enjoying the job which are being performed by them. The training as well as development related
aspects needs to be present in process that is effective for making the company achieve the
heights and make subordinates experience that their achievements are being appreciated and the
productivity will be increased.

9MANAGING HUMAN RESOURCES
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