HRM Challenges: Strategies for Employee Retention in Manufacturing

This essay examines the challenges faced by manufacturing organizations in attracting and retaining talented employees, highlighting monetary dissatisfaction, limited opportunities, unrealistic job demands, and technological advancements as key factors. Internal factors such as workplace culture, lack of work-life balance, and poor management also contribute to employee turnover. The essay identifies strategies to mitigate these challenges, including prioritizing employee interests, creating a positive workplace culture, providing training and development opportunities, establishing clear career paths, ensuring job security, recognizing employee performance, and offering competitive compensation and benefits. Building trust, providing guidance, and promoting flexibility are also emphasized as crucial elements for improving employee retention rates and overall organizational performance. The essay concludes that valuing employees and recognizing their contributions are essential for increasing profitability and revenue in a competitive market.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

1HUMAN RESOURCE MANAGEMENT
Introduction
The essay throws light on analyzing the different kinds of challenges which are face by
the organizations in the manufacturing industries in attracting and retaining the employees. In the
present scenario, the main concern is retaining the talented employees in the manufacturing
organizations as there are different kinds of other opportunities that is affecting the overall
efficiency of the company negatively. The main aim and purpose of the essay is to analyze the
different kinds of challenges faced while retaining employees along with inclusion of different
strategies which will be beneficial in improving the scenario effectively.
In the present scenario, the employees are considered to be the assets of the company as
they are the ones who help in delivering the tasks appropriately and it increases the overall
productivity of the organization in a positive manner. As commented by Vasquez (2014), the
human resource management is one of the practices which deals with issues related to
compensation, performance management of the company along with providing health and
wellness to the employees and improving their morale that will impact the productivity of the
company positively. The HRM plays a strategic role in managing the people along with creating
a proper workplace culture that will enhance the tasks which are performed by them.
Challenges Faced by Manufacturing Organization in Attracting and Retaining Talents
There are different kinds of challenges faced by the manufacturing companies in
attracting as well as retaining the talents in a negative manner. Firstly, as commented by
Tooksoon and Mudor (2017), the monetary dissatisfaction is the first and foremost challenge for
the employees to look for change as every organization has certain budget for providing the
salaries to the certain limit. In such scenarios, the retention becomes the major problem as the

2HUMAN RESOURCE MANAGEMENT
employees charge extremely high salary which is not affordable by the companies. In addition,
as commented by Terera and Ngirande (2014), in the current scenario, there is no such dearth of
the opportunities, it stops the people from changing the jobs as it is the biggest challenge as each
and every organization tries their best to hire the different employees from the different
competitors and they try to provide lucrative opportunities to the employees that affects the
capacity of the employees in retaining them.
Furthermore, as opined by Tangthong, Trimetsoontorn and Rojniruntikul (2014), it has
been noticed that there different unrealistic kinds of demands from the job which is performed by
the employees looking for the change as there is no solution for those unexpected demands. In
such scenarios, the employees feel that they are not being valued by the companies and it affects
their morale due to which they leave the present job opportunities and try for other opportunities
related to job. Due to the technological advancements, the technology would have made it easier
for the different individuals to find and apply for different job opportunities which will be
helpful for the company to manage such employees and provide them with opportunities.
Moreover, as opined by Osibanjo et al. (2014), there are different kinds of job
opportunities from other companies such as significant increase in salary along with attractive
benefits package and it is considered to become the external trigger for the different employees
in the companies. In the current scenario, the other pull factor is the relocation of the different
individuals internationally specially with the reputable organizations which help in providing
proper work life balance. On the contrary, Masum (2015), has opined that there are different
internal factors such as the workplace culture is the major and significant factor which affects the
retention of the company in a negative manner. In many scenarios, the workplace does not

3HUMAN RESOURCE MANAGEMENT
provide proper health and safety procedures that affects the morale of the employees and it
creates improper relationship between the employer and employees.
As commented by Macfarlane (2011), the lack of the work-life balance along with
combined poor relationship with team members or the sour kind of relationship with the
immediate managers can affect the growth of the company in a negative manner. From the
overall analysis of the challenges, it can be identified that these are the major challenges which
affects the overall growth of the company negatively and the employee’s performance will be
declined as well in a negative manner. The bad culture of the workplace is the most ineffective
aspect which affects the overall transparency in the organization and due to the same, there are
different kinds of turnover among the employees in a negative manner. In addition, Jehanzeb and
Bashir (2013), have stated that the bad management of the company is the other reason for the
resigning of the different employees as the bosses did not position their subordinates properly
and due to inequality among the employees, it has affected the overall culture of the workplace
negatively which decreases morale of the employees inappropriately as well.
Identification of Strategies in Reducing Challenges of Retaining Employees in
Manufacturing Industries
After the overall analysis of the different challenges, it can be identified that there are
different identification of the strategies which will be beneficial in improving the overall
effectiveness of the company positively. The proper analysis of the strategies includes the
following:
Firstly, as commented by Inabinett and Ballaro (2014), the different organizations need to
take care of the different interests of the employees which will be beneficial in retaining the

4HUMAN RESOURCE MANAGEMENT
employees appropriately. The high potential employees must be the centre of the attention at
every workplace as it will be helpful in improving the morale of the employees. As the
employees are the asset of the company, it is necessary for the higher management officials to
take care of their needs and improve their morale which will motivate them, thus improving the
productivity. The proper creation of the right culture is the most important aspect which can be
implemented as it will be meeting the expectations of the employees such as impacting their
motivation positively and there will be no laid back attitude of the employers as well.
Furthermore, as commented by Haider et al. (2015), proper training and development of
the different employees is the other important aspect which can be implemented by the
companies as it will be enhancing their motivation level and the level of the performance of the
work will be improved as well. As opined by Gollan, Kalfa and Xu (2015), there is huge
competition in the marketplace which is affecting the growth of the company and everywhere
there is new openings of various positions in the market which is able to attract the employees.
Due to the same, there is difficulty in retaining the talented employees in the organizations as
they are receiving more lucrative offers and they are moving out. Therefore, due to the same,
there can be implementation of well defined and developed career path that will be enhancing
their performance level and it will be beneficial for the growth of the candidates appropriately as
well.
In addition, Ertürk and Vurgun (2015), have opined that there are different employees
who work and come from the middle or low family backgrounds and in such scenario, such
employees seek job security which will be helpful in managing motivation among the employees
and help them gain competitive advantage. However, as noticed that in the present scenario,
there has been huge downsizing among the employees that affects the retention of the employees

5HUMAN RESOURCE MANAGEMENT
negatively and they look for the different other opportunities as well. Additionally, Eneh and
Awara (2016), have opined that the different employees working in the companies need to be
recognized with the performance as the appreciation will be helpful for them in making the
workplace a suitable place for them to work and it will enhance their productivity in a positive
manner.
Additionally, the different employees should be provided with the proper health and
safety procedures as it will be enhancing their career and there will be motivation among them to
complete the tasks within the specified deadline and it will be beneficial for increasing the
productivity of the company in a positive manner as well. The different employees are required
to be treated well and information should be transparent as well. As commented by Davis (2013),
proper building of trust is the most essential technique which can be helpful for increasing the
transparency in the workplace. The effective functions related to human resource management
helps in ensuring that every employee needs to establish the long term association with the
organization beyond the proper paycheck.
As commented by Das and Baruah (2013), the employees should be provided with proper
guidance on how to perform the tasks and complete it in a successful manner. In order to
improve the respective scenario, there should be inclusion of proper job plan that will guide them
in making them understand the loopholes in their performance as it will help them in correcting
them and making the tasks as desired. Moreover, as commented by Cascio (2015), there should
be proper payment which should be made to the employees who are working with the company
as it will be helpful for making them more motivated and it will be enhancing the morale as they
will accomplish the objectives. As opined and stated by Bode, Singh and Rogan (2015), the
flexibility is the other major aspect that can be incorporated by the higher officials of the

6HUMAN RESOURCE MANAGEMENT
company which will be impressing employees and there will be preferences for working in
flexible working environment as well.
As commented by Batista-Taran et al. (2013), it is not always about retaining the
employees, the management of the employees is the other major aspect that should be considered
as it will be enhancing the performance of the company and the retention will take care of itself.
The management of employees which includes the training and development, proper
performance feedback along with increase in pay can be helpful in maintaining their
performance and the morale will be improved which will allow them to perform better than the
others. Moreover, as commented by Arokiasamy et al. (2013), there can be inclusion of the
economic benefits that can be adopted by them as it will enhance their motivation such as going
on holidays or allowing the compensation for leave travel allowances can be helpful for the
growth of employees and their work will be appraised.
Moreover, as opined by Al-Emadi, Schwabenland and Wei (2015), in the manufacturing
companies, there can be inclusion of long term incentives such as stock options ESOP which will
be helpful in retaining the employees and making them feel that they are valued and their work is
being recognized as well. As the present scenario of business is competitive and there is no
inclusion of proper ways to retain the employees, therefore it is necessary for the companies to
introduce the retirement benefit plans as it will make them feel that they are being taken care of
and it will motivate them to stay in the same company for years as well. In addition, there can be
offerings of perks to the employees working in the company such as which includes the creative
perks such as inclusion of tangible gifts which will make the employees happy and they will be
staying in the organization for a longer period of time.

7HUMAN RESOURCE MANAGEMENT
The proper improvement of the retention rates cannot be difficult as the different
researches have shown that the employees are the crucial part of the company and they should be
valued as due to them, the profitability and the revenues are increased. However, due to high
competition in the market, in such scenarios the employees need to made felt that their work is
being recognized and they will be able to improve their morale in performing more efficiently in
the organization. Moreover, as commented by Bode, Singh and Rogan (2015), the different
employees can be helped in developing gradual and cordial relationship with the other team
members which will be helpful in improving the overall scenario and it will make them happy to
perform the tasks more effectively and the professional relationship will be maintained in a
proper manner.
Conclusion and Recommendations
Therefore, from the above, it can be concluded that the employee retention is one of the
major factors which can be incorporated by the companies as it will be beneficial for improving
morale of employees and it will generate huge productivity in the organization as well. With
proper recognition regarding the performance of the employees, it will be helpful for them in
keeping their morale high which will improve the productivity and the quality of the tasks
performed by them as well. Moreover, the companies need to hire the right people in the first
place itself which will be empowering the different employees through providing appropriate
authority and there should be faith on the employees which will provide them with knowledge
and information.
In addition, the other importance of the retention of employees includes the process that
when the different employees leave the job, he or she can provide the valuable information to the

8HUMAN RESOURCE MANAGEMENT
other organizations wherein they are presently working and it can lead to the decline in the
profitability of the companies as well. In such scenario, the turnover of the employees should be
reduced and the employees are the major asset of the company through which the companies can
improve the goodwill of the company and it will help the company to serve the employees
appropriately as well.
From the analysis of the essay, there are different recommendations which can be
provided to the employees in the organizations as it will be helpful in improving the morale of
the employees as well as the productivity of the company as well. First and foremost, proper
support is the key aspect which should be incorporated by the companies in manufacturing sector
to the employees as it is the major and good reason for retention of the customers in the
company. The management of the company should be focusing on employees and supporting
them in all the times as it will enhance the morale and it gains competitive advantage in the
market as well.
In addition, the training and development can be incorporated in different departments in
manufacturing companies which will be fitting with their capabilities. The personal growth is the
other major factor that should be incorporated by the company or the officials to make the
employees happy and help them in achieving the organizational goals as well. lastly, employees
should be provided with proper chance to improve as well as enhance their skills to gain
competitiveness in the company in comparison to the other employees present in the
organization as it will improve their focus and they will be performing in a positive manner.

9HUMAN RESOURCE MANAGEMENT
Therefore, it can be inferred that the employees are the asset of the company and they
should be treated well as they will be able to deliver the most successful and best results in the
company in comparison to the other competitors which are present in the market.

10HUMAN RESOURCE MANAGEMENT
References
Al-Emadi, A. A. Q., Schwabenland, C., & Wei, Q. (2015). The vital role of employee retention
in human resource management: A literature review. IUP Journal of Organizational
Behavior, 14(3), 7.
Arokiasamy, A. R. A. (2013). A qualitative study on causes and effects of employee turnover in
the private sector in Malaysia. Middle-East Journal of Scientific Research, 16(11), 1532-
1541.
Batista-Taran, L. C., Shuck, M. B., Gutierrez, C. C., & Baralt, S. (2013). The role of leadership
style in employee engagement.
Bode, C., Singh, J., & Rogan, M. (2015). Corporate social initiatives and employee
retention. Organization Science, 26(6), 1702-1720.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business
and Management, 14(2), 8-16.
Davis, T. L. (2013). A Qualitative Study of the Effects of Employee Retention on the
Organization. Insights to a Changing World Journal, 2013(2).
Eneh, S., & Awara, N. (2016). Strategic human resource management practices and
organizational growth: a theoritical perspective. Global Journal of social sciences, 15,
27-37. Doi:10.4314/gjss.v15i1.3

11HUMAN RESOURCE MANAGEMENT
Ertürk, A., & Vurgun, L. (2015). Retention of IT professionals: Examining the influence of
empowerment, social exchange, and trust. Journal of Business Research, 68(1), 34-46.
Gollan, P. J., Kalfa, S., & Xu, Y. (2015). Strategic HRM and devolving HR to the line: Cochlear
during the shift to lean manufacturing. Asia Pacific Journal of Human Resources, 53(2),
144-162. Doi:10.1111/1744-7941.12055
Haider, M., Rasli, A., Akhtar, C. S., Yusoff, R. B. M., Malik, O. M., Aamir, A., ... & Tariq, F.
(2015). The impact of human resource practices on employee retention in the telecom
sector. International Journal of Economics and Financial Issues, 5(1S), 63-69.
Inabinett, J. M., & Ballaro, J. M. (2014). Developing An Organization By Predicting Employee
Retention By Matching Corporate Culture With Employee's Values: A Correlation
Study. Organization Development Journal, 32(1).
Jehanzeb, K., & Bashir, N. A. (2013). Training and development program and its benefits to
employee and organization: A conceptual study. European Journal of business and
management, 5(2).
Macfarlane, F., Greenhalgh, T., Humphrey, C., Hughes, J., Butler, C., & Pawson, R. (2011). A
new workforce in the making? A case study of strategic human resource management in a
whole-system change effort in healthcare. Journal of health organization and
management, 25, 55--72. Doi: 10.1108/14777261111116824
Masum, A. K. M. (2015). Adoption Factors of Electronic Human Resource Management (e-
HRM) in Banking Industry of Bangladesh. Journal of Social Sciences/Sosyal Bilimler
Dergisi, 11(1).