Challenges of HRM: Essay on Attracting and Retaining Staff in Retail

This essay examines the multifaceted challenges of human resource management within the retail industry, with a specific focus on the critical processes of attracting and retaining staff. It delves into various factors influencing employee satisfaction and turnover, including lack of career development opportunities, high industry competition, inadequate job evaluation, ineffective recruitment practices, job dissatisfaction, and insufficient compensation. The essay also explores the impact of managerial practices, such as managerial unilateralism and the absence of comprehensive training and development programs, on employee morale and retention. Furthermore, it touches upon the effects of globalization and increased repetition of work on employee attitudes. The analysis incorporates relevant theories, such as Herzberg's two-factor theory and equity theory, to provide a comprehensive understanding of the issues. Ultimately, the essay underscores the importance of strategic HRM practices in fostering a positive work environment and ensuring the long-term success of retail organizations.

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Human Resource Management 1
Essay on Attracting and Retaining Staff
The purpose of this essay is to enlighten the reader about the aspects of human resource
management along with the challenges faced by the organization in retail industry. The retail
industry is one such industry that requires large number of people in their business. The industry
also faces a regular need to employ people in business and retain them as well. Many companies
like David Jones, Aldi, and Tesco etc. faces a continuous need to employ people in the business
in increase the business functions as well. The dynamics of retail industry explains that all the
actions are prepared and completed at a vast level due to which the companies present in this
industry constantly require people with low expertise to successfully manage the actions of the
companies. Further, the below-mentioned report evaluate details about the challenges faced by
companies in attracting and retaining the employees in the retail industry (Terera, & Ngirande,
2014). More details about the paper are discussed below:
According to Hurst & Good (2009), attracting and retaining the employees is looked as the most
important work of the human resources management of the company. The employees are the
biggest asset of the organization with the help of which an organization effectively works. The
human resource management is the department of the organization that specifically deals in
attracting and retaining the employees in an organization. As there is lack of expertise in the
industry due to which retention has become one of the major concern of companies present in
this industry. However, no employee wants to stay in this industry due to pressure, workload and
tension. However, this industry regularly attains the concentration of the customers in the market
because of the type of products that they provide. And in order to meet the needs of customers,
the company regularly requires human resource as well (Stone, & Deadrick, 2015).
There are ample number of challenges present in the retail industry that affect the attraction and
retention of employees in the market. Lack of development and career opportunities can be seen
as one of the most important reason due to which companies fail to initiate human resource
management activities.
Lack of career advancement and development opportunities
The companies present in this industry face difficulty in attracting and retaining staff because
they are uncompetitive in the target market. Repetition of work makes the people bored that

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results in dissatisfaction from their jobs. The management of a retail company provides same
type of work to the employees on daily basis that makes the employee feel that their talent is not
used properly. Resulting in which they leave the job to find a job that adequately acknowledges
their talent. So, it can be said that boredom in the jobs can be seen as one of the most important
factor that challenges the process of retention and attraction of employees in this industry
(Festing, & Schäfer, 2014).
High degree of Competition in Industry
There is presence of high degree of competition in the industry that makes it difficult to attract
and retain the employees. Industry competition is one thing but competition between the
employees of different industries also affect the growth of companies. For instance, if an
employee is working Woolworths and he is thinking to switch his job, then he will receive
various from companies present in same industry like Aldi, Coles etc. and from the companies
present in other industry as well. And if the employees feel like changing the industry then he
will switch in search of a better job. Thus, it can be said that a company fails in attracting the
employees in the industry. Further, according to the two factor theory of Herzberg, there are four
possible combinations that judge the satisfaction level of an employee in the organization (Imna,
& Hassan, 2015). These fours combinations are discussed below:
High Hygiene + High Motivation: employees are highly motivated and have fewer complaints.
High Hygiene + Low Motivation: few complaints but are not highly motivated
Low Hygiene + High Motivation: employees are motivated but have lots of complaints
Low Hygiene + Low Motivation: worst situation in which there is a lack of motivation as well
as more of complaints.
The process of standardized work in a retail industry leads to the aspect of high hygiene and low
motivation as the employees look at their jobs only as a paycheck. Sooner or later, due to this
type of dissatisfaction, the employees leave their jobs (Hannington, 2016).
Lack of Proper Job Evaluation

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The organizations present in the retail industry should also look after the proper job description
and person description as well. It is very important for the company to recruit the right type of
person for the right type of job. If the human resource management of the company does not
make this match then ultimately the employee will leave the organization. If the organization
hires an underprepared employee for performing high-level job then he will leave the company
due to out of expertise work and the company hires a quality person for the lower level job then
also he will leave the company out frustration. Understanding the type of employees along with
job specification will successfully help the company to attract as well as retain the employees in
the organization (Howard, Turban, & Hurley, 2016).
Lack of Effective recruitment practices
Contract staffing can also be assumed as one of the challenges in the process of attracting and
retaining the employees in the organization. Many times due to emergent need or various other
reasons, the company hires the employees on contract basis. In contract basis staffing, the
company employees people on contract by the way of the third party. The entrance of the third
party makes it difficult to create a bond with the human resource management of the company.
Resulting in which, the employees leave the job after their period expires. Under this case, it can
also be seen that the ineffectiveness of the human resource management of the company to create
bond affects the overall employee turnover rate of the company (Falola, Osibanjo, & Ojo, 2014).
Job Dissatisfaction and Less Compensation (Employment Relations)
Reward and compensation can be seen as the biggest driver for change in an organization.
Employees of a company are directly motivated if they receive rewards and good pay from the
organization. On the other hand, deductions in salaries negatively affect the employees in a
company. Considering in a retail industry, the company pays very less to the salesman and the
storekeepers due to which they leave the job. Initially, it can be clearly seen that this type of
work not fascinating to the people at all, in fact people only work in supermarkets just because
they want to earn money. Secondly, it should also be noted that the companies present in the
retail industry does not pay well to the employees as well. This results in dissatisfaction among
employees (Oladapo, 2014).

Human Resource Management 4
The employees in an organization stay for two reasons, either they love the job or they love the
money that they are getting from the job. So, it is important for the companies to compensate the
employees according to the work that they do so that they can effectively retain them and attract
new people on the basis of high salary as well. Compensation is the best motivator as well, so if
an employee receives the optimum amount of pay in the environment and it increases with time
as well, then he will never leave the job. Other monetary and non-monetary incentives also play
a lead role in motivating the employees to stay in the organization. In the retail industry, the
companies do not pay adequately to employees considering the work, instead, the employees in
this industry are underpaid. As there is a regular demand for goods and services in the retail
sector, due to which the employees need to work overtime as well (Oh, Weitz, & Lim, 2016).
Considering the work done by employees the companies should compensate them with
additional benefits but sadly they don't receive any. Resulting in which, motivation leads to
dissatisfaction and they ultimately leave the job. Relating it to the theory of equity, it should be
noted that the theory states that equity is measured by comparing the ratio of contribution (cost),
and benefits (rewards) for each person present in the organization. It is important for the human
resource management of the company to maintain the relation between the inputs that employees
bring to the job and the outputs delivered by the company. If there is fair and justified treatment
according to this theory then the employees will feel motivated otherwise they will lose interest
in the job. Some of the inputs are, time, efforts, trust, education, commitment, hard work etc.
while some of the outputs are, job security, salary, recognition, employee benefits etc. (Haider,
et. al., 2015).
Rise of Managerial unilateralism
Managerial unilateralism refers to the situation under which the managers present in the industry
lays stress on the employees of the company. Under this type of environment, the employers
themselves make rules without making discussion with the team. The exercise of sharing rule-
making process is not followed under this type of environment. The employers present in the
retail industry make use this type of leadership in the society due to which the employees face
the problem of insignificance and ultimately leave the organization.
Lack of Training and Development Facility in the industry

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Training is also one of those factors that change the interest of the employees to stay in an
organization. Training is considered as a positive aspect that helps the new employees to
understand with the process of the company and it helps the existing employees to learn more
about the changes happening in the company. As a going concern organization regularly requires
to change their business process time to time, in the same way, the employees need to change
their actions time to time according to the direction of the company (Yadav, & Saxena, 2015).
So, in such cases, if the company will not provide adequate training to the employees then they
will become rigid and will not work effectively for the purpose of the growth of the company.
Also, if the company will not train the new employees effectively, then they will leave the job in
beginning only (George, 2015).
As examined over that there is nonappearance of training and development process in the
association, because of which changes in the administrative procedure adversely influence the
development of the organization in the outer market. It is critical for the associations to execute
compelling change management program in order to assist the workers with understanding the
exercises activities of the organization. Likewise, it ought to be noticed that recognition is the
key factor that assumes a noteworthy attracting in and retaining the workers in the company
(Albrech, 2011). In the retail area, associations, for the most part, make utilization of team-based
organizational structure because of which aggregate group is valued or reprimanded by the
association. However, the commitment of the worker exclusively is never perceived in the
association coming about to which underperformance and over the execution of the group
influences them, however, the work done by them is never checked in the association
(Broadbridge, Maxwell, & Ogden, 2007). This is additionally one of the real cause because of
which representatives leave their employment in the retail business. These workers enter in
different parts where they get rewards from the association based on their own execution and not
the accomplishments of the gathering (Michie, & Sheehan, 2005).
Increasing in Repetition of work and globalization
It ought to be noticed that rivalry in the business along with influencing the incomes of
organizations in the environment influences the human resource management of the associations
too. The organization giving better advantages attracts the workers to the greatest level.
Additionally, the associations confront trouble in attracting the representatives with the impact of

Human Resource Management 6
globalization. As now, the organizations don't rival each other in the local condition yet they
contend with different associations or same and distinctive industry(Hurst, & Good, 2009). The
workers have begun moving to different parts of the world because of which not many
representatives are left with the residential business. In this way, it ought to be noticed that with
the impact of globalization, the quality workers are skimmed on the worldwide level (Sissons, &
Green, 2017).
Further, it ought to be noticed that millennial individuals present in the environment don't lean
toward entering the retail area and this industry additionally neglects to attract the youthful
ability present in the market. The representatives present in this environment are continually
requested to play out similar activities over and over because of which they lose their adequacy
and effectiveness and the millennial representatives need to regularly work on new tasks and
imaginative activities on standard premise. The retail business can't give such administration
work in the environment because of which they fail in drawing in the attraction of individuals in
the organization (Roman, & Mason, 2015).
So, in this manner, it ought to be noticed that the previously mentioned statements clarified the
difficulties looked by associations in attracting in and retaining the workers in the retail business.
Great work environment condition is one of the ways to attract the representatives in the
association and hold them too. No representative could ever need to work in an association
where there is the proximity of the negative work environment condition. In this way, if the
association starts successful communication with the representatives then they will naturally
remain for a more period of time in the association (Sparks, 1992). Further, perks, bonuses and
incentives additionally assume a noteworthy job in holding and pulling in the workers in the
target market. The organization present in the retail segment should start an incentive process
above the basic pay of the employees in order to inspire them to work better and procure better
too. Incentives and pay are the greatest inspiring variable; any worker that switches the activity is
principal because of fewer remuneration benefits. Further, advancement is another ways should
be implemented through which the association can attract and retain the workers in the activities
of the association (Rathi, & Lee, 2015).
As talked about over that boredom is likewise one factor because of which workers switch their
employment. Along these stanzas, if the companies influence utilization of new and innovative

Human Resource Management 7
practices in their day to day schedule activities then retail industry too can attract and retain the
quality millennial workers easily and make them stay in the organization for a longer period of
time as well. So, in the end, the companies should also actualize training and development
practices to enable the representatives to change their mind in accordance with the company.
This aspect will likewise add a helping hand for representatives to utilize innovative practices
and reduce the level of difficulties as well. With the assistance of viable training, the
representatives will become acquainted with about the company and the work that they need to
do. Resulting in which, they won't confront trouble in completing the given tasks.
Thus, in the limelight of the above-mentioned events, the fact should be noted that the employees
in an organization are the most important asset for the company. Considering in the retail
industry, the companies present in this industry face more difficulty in attracting and retaining
the employees because of the kind of work their offer in the market. Lack of recognition and
repetition in work leads to boredom that affect the satisfaction level of employees and there leave
the job. The hiring of qualified employees and retaining them by providing perks should be one
of the things that the company should do in order to satisfy them.

Human Resource Management 8
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