Essay: Key Challenges in Attracting and Retaining Finance Sector Staff

This essay delves into the critical challenges of attracting and retaining a workforce within the finance sector. It examines key issues such as industrial relations frameworks and practices, work design challenges in a global environment, talent retention and development strategies, the importance of managing workplace health and safety, and the role of strategic reward management. The essay highlights the significance of efficient human resource management in the finance industry, addressing how companies can improve their ability to retain talented employees and maintain a strong corporate image to influence client behavior and build a sustainable business. The essay explores how companies can design operational activities and targets with an emphasis on industry standards, technological integration, operational risk, and the need for ethical business practices. The essay also emphasizes on the importance of effective communication skills, training and development programs, and workplace safety to ensure a motivated and productive workforce within the finance sector. The essay draws on academic literature to support its arguments, providing a detailed analysis of the factors that influence staff attraction and retention in the finance sector.

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

1MANAGING HUMAN RESOURCES
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Industrial relations: frameworks and practices:.....................................................................3
Work design challenges in a global environment:.................................................................4
Talent retention and development:.........................................................................................6
Managing workplace health and safety:.................................................................................7
Strategic reward management:...............................................................................................8
Conclusion:................................................................................................................................9
References:...............................................................................................................................10

2MANAGING HUMAN RESOURCES
Introduction:
The necessity of handling the human resources in the organizational context is
detected to be pretty noticeable. Kehoe and Wright (2013), claimed that majority of the
corporations functioning in the modern world of trade such as Amazon or Walmart are
observed to be affected by the inappropriate management of their human resources and that is
one of the major concern for the companies in achieving their business goals. Quarshie, Salmi
and Leuschner (2016), highlighted that the business groups have the necessity to handle the
impact of the increasingly competitive trade environment and under such situation, one of the
few feasible tactics applied by the companies are seen to be the improvement of the quality,
increment in the productivity and efficient management of the supply of the products to their
clients. In handling these situations, the companies have the necessity to improve their
capability in retaining the talented staffs in the business groups. Hence, the efficient
management of the human resources is an important aspect of the business for the
corporations functioning in the modern world of trade. The paper delivers an important
understanding of the challenges that the companies are facing in the finance sector. While
evaluating the challenges that the managers face, the paper covers the aspects such as the
industrial relations: frameworks and practices, work design challenges in a global
environment, talent retention and development, handling workplace health and safety and
strategic reward management.
Discussion:
Kolk and Rivera-Santos (2018), claimed that the accomplishment of the modern
business groups in the effective management of their business procedures and in the much
required achievement of their business objective is observed to be dependent on their ability
in handling the human resources in an efficient manner. According to Renwick, Redman and

3MANAGING HUMAN RESOURCES
Maguire (2013), all the major companies are observed to face the necessity to generating
larger revenue with the consumption of the least possible resources and under such situation,
the efficient controlling of the human resources is much needed for the companies to
implement an efficient HR system. The capability of handling the grievances of the staffs is
essential for the companies to make sure that they achieve the desired sustainability in their
performances. As mentioned earlier, the companies are facing the necessity to improve their
ability in providing the required quality to their clients for the effective customer retention, it
becomes important for the companies to strategize their business and human resource
management abilities. However, there are several companies operating in the modern trade
world, with the considerable amount of impurities in their human resource management and
the human resource managers are observed to face significant number of challenges. Having
said that, the modern human resource managers primarily face the challenges in the aspects
such as the industrial relations: frameworks and practices, work design challenges in a global
environment, talent retention and development, handling workplace health and safety and
strategic reward management.
Industrial relations: frameworks and practices:
Considering the finance sector, the primary job functions are observed to be the
business development management, finance management, financial advisory management
and the traditional insurance management. With an exact emphasis on the job functions, it is
understandable that the companies operating in the mentioned sector have the necessity to
maintain an appropriate reputation. Alfes et al. (2013), claimed that the successful business
operations in the finance sector is largely dependent on the ability of the companies in
developing an efficient corporate image which has the capability to influence the clients
towards the consumption of the services of the companies. According to Karabag and
Berggren (2016), the increasing business competition in the finance sector is forcing the

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companies to manage and retain their clients in efficient manner and with an exact emphasis
on such a change in the business dynamics, the importance of achieving improved capability
in influencing the purchase intention of the clients is seen to be significantly high. Hence, the
efficient management of the corporate image of the companies is seen to be a much needed
aspect of the business operations of the companies operating in the mentioned business
sector. However, the performances of the staffs operating in various companies of the
mentioned business sector is observed to be analysed with their capability in meeting the
targets. Under such situation, a large number of staffs are observed to be involved in
unethical business practices which lead them towards reputational damage and exposes them
towards monetary penalizations. Albrecht et al (2015), claimed that the conduct of the
unethical business practices for achieving the target, has the capability to reduce the business
reputation of the companies and at the same time, it has the potential to expose the staffs
towards criminal charges. Hence, the application of the excessive burden in the form of the
operational target has the potential to affect the performances of the staffs and at the same
time, it increases the possibility of the staffs in conducting the unethical practices. Under such
situation, it becomes important for the companies to make sure that they do not force the
staffs with excessive burden of target as that has the potential to reduce their ability in
targeting quality providing staffs and in retaining the talented staffs. Hence, as per the
Workforce and employment conditions chapter of Nankervis et al. (2017) it becomes
important for the companies and the human resource managers of the modern world of
business to make sure that they design the operational activities and the targets with a precise
focus on the industry standards.
Work design challenges in a global environment:
Considering the job profiles of the finance sector, it is understandable that the
companies have the necessity to improve their ability in mitigating the challenges that they

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face regarding the design of the work. One of the prime concerns for the companies in
designing the work is seen to be technological challenges. Borgman et al. (2013), claimed
that even in 21st century there are considerable number of business groups facing the impact
of the lack of the infrastructural development and that has become a major concern for a large
number of business groups. The insufficient infrastructure of the companies restricts their
ability of adapting the technological advancement in the design of their work. As it is evident
that the incorporation of the technology in the business operations of the modern companies
have the capability to increase the efficiency of the companies, the incapability of the
companies in aligning their operations with the technological advancement of the modern
generation, will be a significant loophole in their strategy for aligning the new candidates.
Along with that, the application of the technology in the design of the jobs has the capability
to increase the ease of the staffs in handling their operational activities, however, the lack of
infrastructure of the companies in incorporating the technological advancement is a major
menace for the staffs as it will increases the consumption of the time for handling their
operational activities.
Other than this, the operational risk is also a key point of concern for the staffs
operating in the finance sector. In various sections of business management of the companies
operating in the mentioned sector, the staffs are employed to convince the clients about the
excellence and the necessity of the products and services of the companies. However, in
convincing the clients, the staffs face the necessity to communicate certain amount of fake
claims and that has the possibility to create considerable amount of dissatisfaction amongst
the staffs (AlBattat & Som, 2013). Considering the fierce competition of the finance sector, it
is evident that a large number of companies are creating the demands on their own through
raising the fear factor associated with the vulnerable global economic condition amongst the
clients. Having said that, the development of such artificial fear factor is observed to be

6MANAGING HUMAN RESOURCES
dependent on the excellence of the communication skills of the staffs. However, there are a
large number of staffs operating in the mentioned sector who are incapable in communicating
such fake and illegal fear factor and under such situation, it restricts the ability of the ability
of the companies in attracting and retaining such staffs who have certain apathy in conducting
unethical business practices.
Talent retention and development:
With a detailed emphasis on the business operations of the finance sector, it is
understandable that the companies, operating in the finance sector, are facing the heat of the
intense business competition. Having said that, the companies face the need of improving
their business quality for achieving the much required sustainability in the business
processes. Having said that, the capability of the companies in meeting the desired quality
parameters in the finance sector is seen to be largely dependent on the ability of the
companies in sourcing efficient individuals and in retaining them. The portrayal of the
excellent communication skills and the interpersonal understanding are considered to be true
hallmark of an efficient individual in the mentioned sector of business. Along with this, the
skills of influencing the clients in the repetitive purchase of their services, persuading the
clients regarding the need of the services, the excellent fit of the services for handling the
demands of the clients and along with that, the strong negotiation skills of the staffs are
observed to be significant for the success of the companies operating in the finance sector.
Having said that, the availability of the above mentioned skills amongst the new staffs is a
point of concern for majority of the companies. However, as per the Training and
development chapter of Nankervis et al. (2017), the ability of the companies in meeting the
developmental needs of the staffs regarding the above mentioned skills is important for the
sustainability of the business operations of the companies. In majority of the cases, the
companies are observed to be in confusion regarding the developmental needs of their staffs

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and their incapability in finding out the developmental needs of the staffs has the capability to
increase the dissatisfaction of their staffs towards the job. Hence, the companies has the
potential of facing increased employee turnover and at the same time, it also affects the
ability of the companies in retaining their talented workforce. In addition to this, the apathy
of the senior management of the companies operating in the finance sector, in appropriate
investment for the developmental activities of the staffs, is seen to restrict the ability of the
companies in attracting talented staffs and retaining the for the sustainable business
operations.
Considering the Herzberg two factor theory, it is evident that the availability of the
excellent training and developmental activities has the potential to motivate the staffs towards
the achievement of the desired performance improvement both in terms of the quality of the
operations and in terms of the production (Yusoff, Kian & Idris, 2013).
Managing workplace health and safety:
Considering the importance of the workplace health and safety, it is visible that the
appropriate management of the same is a significant concern for the human resource
managers. As the selected business sector is the finance sector, the safety of the staffs is
largely related to the capability of the staffs in conducting their business operations within the
ethical guidelines. Nielsen (2014), claimed that the staffs of the finance sector has a unique
definition of the WHS as their genre of their business activity differs from that of the mining
or construction operations. For the staffs operating in the finance sector, it is important to
make sure that they do not conduct any unethical business activities for gaining undue
advantage in comparison of their competitors. As per the career path chapter of Nankervis et
al. (2017), the inappropriate or unethical business conduct from the part of the staffs has the
potential to affect their future career as it will lead them towards criminal charges. At the
same time, the unethical business practices is a genuine concern as it incurs reputational

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damage and monetary penalizations. However, the incapability of the companies in
formulating an appropriate employment code of conduct for aligning the diverse work culture
of the staffs in an efficient manner, is a critical challenge that has the capability to reduce the
attractiveness and ability of the companies in retaining their staffs.
At the same time, the ability of the companies towards ensuring compliance to the
framed code of conduct of the companies has the capability to decrease the power of the
companies in retaining their talented workforce. Other than this, the excessive work pressure
imposed on the staffs of the companies of finance sector has the possibility of increasing the
job dissatisfaction amongst the staffs and that can lead the business groups towards the
reduced capability in attracting and retaining their staffs. Hence the incapability of the
companies in effective distribution of the work pressure has the capability to affect in their
ability of retaining the staffs.
Strategic reward management:
With a detailed emphasis on the urge experienced by the businesses in meeting the
desired quality and production for handling the demands of the finance sector, it is important
to recognize the performances of the staffs. The impact of the motivation in the modern world
of trade is pretty significant and under such situation, the companies have the necessity to
recognize the good work or the quality performances of their staffs to make sure that the
staffs are motivated for the desired improvement of the performances. According to
Maslow’s hierarchy, the companies face the continuous need of motivating their staffs and
under such situation, it is obvious that the companies and their human resource managers will
come up with attractive rewarding plan for motivating the staffs (Taormina and Gao, 2013).
The incapability of the human resource managers in identifying the basic needs of the staffs
for aligning the rewarding plan in accordance to the needs and along with that, the inefficient
inclusion of the intrinsic and extrinsic reward in the rewards plan also reduces the ability of

9MANAGING HUMAN RESOURCES
the companies in attracting and retaining quality providing staffs (Sajuyigbe, Olaoye &
Adeyemi, 2013).
Conclusion:
On an ending note, it is visible that the human resource managers are facing
considerable number of challenges in handling the human resources in the finance sector.
Having said that, the major pint of concerns for the human resource managers are seen to be
industrial relations: frameworks and practices, work design challenges in a global
environment, talent retention and development, handling workplace health and safety and
strategic reward management. The ability of the human resource managers in efficiently
handling these challenges will be significant for the success of the companies.

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References:
AlBattat, A. R. S., & Som, A. P. M. (2013). Employee dissatisfaction and turnover crises in
the Malaysian hospitality industry. International Journal of Business and
Management, 8(5), 62.
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People
and Performance, 2(1), 7-35.
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived
human resource management practices, engagement and employee behaviour: a
moderated mediation model. The international journal of human resource
management, 24(2), 330-351.
Borgman, C. L., Edwards, P. N., Jackson, S. J., Chalmers, M. K., Bowker, G. C., Ribes,
D., ... & Calvert, S. (2013). Knowledge infrastructures: Intellectual frameworks and
research challenges.
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