The importance of HRD

In an HR department, there are six key human

resource development functions:

1. Manpower planning, recruitment, and retention

Strategic staffing is the foundation for building a qualified
workforce. Manpower planning, recruitment, and retention
are top among human resource management concerns and
critical to long-term business success.

While HR departments should aim to recruit and retain the

best possible candidates, it’s important to remember they
may not be the candidate with the most experience.
Employee development will help close any skills gaps, so
when you’re forecasting and planning your human resource
needs, don’t rely on finding the right person or tapping into
the right talent supply. Plan for development that can help
you attract and retain them as well, especially in these
competitive labor markets.
2. Succession planning and talent
management
Development programs can also help future-
proof your organization’s productivity
through succession planning. This talent
management strategy involves identifying
critical roles across an organization and
training employees to take on these positions
in the future.
Organizations will always experience turnover.
Formal succession training and informal career
coaching are effective contingency planning
strategies to ensure your workforce will always
have someone on hand with the knowledge
and skills to perform critical tasks.
3. Policy and procedures
HRD requires identifying the needs of your business
and developing suitable policies and procedures to
meet them. This is achievable through a cycle of
creating, launching, monitoring and improving
initiatives for development.
HR departments must engage in collecting feedback
and reporting on these policies and procedures to
be certain their initiatives meet the needs of
employees as well as organizations and their own
departmental goals.
4. Performance management system
A performance management system aims primarily
to ensure your workforce’s alignment with your
company’s strategic goals. Such systems combine
methodologies and technologies that measure and
develop employees’ performance.
They are effective tools for continuously monitoring
and improving development plans, as well as other
aspects of performance management. HR
professionals need to understand their system’s
capabilities and define procedures for using them
for development.
5. Compensation and benefits program
Compensation and benefits refer to two distinct
concepts. Compensation refers to the cash return
employees receive in the form of salaries or wages.
Benefits, or fringe benefits are the various forms of
non-cash rewards.
HR teams can use both to provide professional
developm ent opportunities through funding for
classes, procurement of learning platforms, or the
creation of internal training.
On top of their wages, your employees want peer
recognition, autonomy, and other perks.
Development opportunities are among one of the
top perks applicants are seeking.
6. Employer brand communication and employee
engagement
Employer branding is the process of creating a
company profile or brand that attracts future
employees. Human resource development enables
you to let your employees do the branding for you.
Interestingly, you can’t create a powerful employer
brand without investing in your current employees.
It recommend that you establish a healthy culture of
inclusion, trust, engagement, and diversity. This way,
your employees can do the branding for you.
5 benefits of human
resource development
 1. Attracting only the best
2. Increasing loyalty and satisfaction
3. Prepare for the future
4. Raising the bar
5. Fostering healthy relations
5 tips for effective
HRD
1. Consistent check-ins
To foster an ongoing learning environment, we
recommend that you arrange consistent sessions
with a facilitator or a consultant for internal
training, coaching, or simple check-ins on progress
and goals.
For informal development, weekly meetings can
easily be coordinated between the mentor and
employee. When planning a formal or internal
training cadence, aim for weekly meetings over a
set number of weeks with milestones employees
can plan around.
Note that internal training entails a presenter who’s
familiar with your workplace spirit, language, and
culture.
2. Baby steps
We recommend that you give your employees a
reasonable amount of information to process.
Don’t overwhelm them with new ideas and skills or
you’ll increase their overall workload, risking
burnout and limited retention or engagement with
the training.
Pace your program and provide employees with
different approaches to learning to accommodate
schedules, learning styles, and their individual
development goals.
Besides, when you provide employees with a
manageable amount of data, they can easily
implement them, showing you immediate
development.
3. Constant feedback
Feedback is a two-way process, meaning, it should
be constantly given and received.
Mentors and supervisors need to give employees
consistent feedback to help them implement their
newly acquired knowledge. They should similarly
ask for feedback from employees.
HR teams should also request employee feedback
on their programs and procedures. Their honest
reflection can help you enhance your human
development programs. Consider sending out pulse
surveys to regularly collect feedback organization-
wide about existing policies and desired
development opportunities.
4. People are different
When performing a development plan, you
should bear in mind that people learn
differently. For instance, some employees
may be able to grasp concepts through
spoken information or visual aids. However,
others need a more hands-on approach to
fully understand ideas.
We said it before, but it’s worth repeating.
You need to accommodate the different
learning styles, which may involve helping
employees design their own path for
development.
5. Show appreciation
Your employees need to feel appreciated.
Thus, we recommend that you use simple
gestures of recognition and appreciation
such as certificates, badges, or even verbal
reaffirmation.
This way, you both encourage progressing
employees and entice the rest to work
harder. Doing so creates a strong workforce
of life-long learners.
When planning learning initiatives, be sure
to think about how to incorporate
acknowledgment into your plan and
communicate that need with key leaders.
Mr Jules in conclusion for the HRD what is your
suggestions to your students

A healthy organization recognizes the importance of human

resource development. Although HRD plans aim at the
enhancement of individual employees, they affect the overall
development of the organization.
For efficient human resource development, you should
consider six main elements. These include job evaluation,
compensations and benefits, succession planning, and
employer branding.
In today’s competitive job market, you should incorporate
HRD to hire and retain the best employees that’ll help raise
your company’s overall performance.
Factors affect
human resource
in global
Human resource is the key area of any
organization and its efficient operation can
lead huge organizational success and may
provide financial benefit on investment for
sustainable competitive advantage. But in
complex business environment, there are
range of problems faced by managers due
to globalisation, technological development
and changes in political and legal
atmosphere. This results in pattern change
in the roles of specialized persons. Today
major challenge of HRM is to attract,
preserve and raise talented employees
when operating at global level.
 Challenges and framework of human resource

The most serious challenge is the process of globalisation.

At a political and financial level, globalisation is the practice
of denationalization of markets, politics and legal systems
such as the use of the global economy.

Globalisation refers to expanding the business beyond

national borders of the same market forces that have
operated for centuries at all levels of human financial
activity such as village markets, urban industries, or financial
centres. It indicates that world trade and monetary markets
are more incorporated. Due to rapid internationalisation of
business, it impacted on human resource management in
terms of problems of unknown laws, languages, practices,
competitions, attitudes, management styles, and work
ethics.
Another human resource challenge is
workforce diversity. Management
theorist, Thomas (1992) stated that
dimensions of workplace diversity
include age, ethnicity, ancestry, gender,
physical abilities/qualities, race, sexual
orientation, educational background,
geographic location, income, marital
status, military experience, religious
beliefs, parental status, and work
experience. The triumph of any
organizations depends on managerial
quality of top and middle level team
that can bring pioneering ideas,
perspectives and views to their work.
Establishing worldwide vision for a company is
important due to the fact that it helps to attain the
primary objective of the businesses, which is profit
maximisation, in the most effective way through
intensive market expansions across countries and
continents. However, the strategy any multinational
company adopts in order to achieve its global vision
does not have to be rigid, because different markets
differ from each other on the grounds of political
system, religion of people, culture, standard of life etc.
and these differences find their reflection on consumer
behaviour
 make mistakes in doing
Cultural misinterpretation business due to cultural
is one of the reasons for misunderstandings“
companies who fail to be
successful in foreign
markets and huge mistakes
occur when managers
misunderstand and
transmit wrong
information,
Political and legal
environment Changes in political and legal
environment can create trouble
for HR managers in
organization. Transformation in
political and legal environment
indicate changes in political
parties and rules regulation
which results in implementation
of new laws and company have
to follow all laws while
operating business globally
Changes in the Other human resource challenge in business
financial environment
environment is changes in the financial
environment. This includes assessment of the
impact of a number of factors on production.
Major factors are the shortage of raw
materials and other inputs including power
and electricity, support of the culture of
consumerism, increasing consumer
awareness and demand for quality products.
In an inflationary economy, the resources
tend to become limited and the costs of
machine, materials and labour multiply. This
increases the capital and operating costs.
Technological advancement

Technological advancement is also a

great challenge for HR managers.
Because, HR managers have to cope
with the rapid technological
changes which influence the nature
of work and generate obsolescence.
Advanced technology may decrease
job opportunities among youths
that require little skill and to
augment the number of jobs that
require technical skill.
In the period of uprising in Information Technology, HR
managers have difficulty to adjust in business environment
and manage their team. Information technology has
influenced HRM through human resources information
systems (HRIS) that modernize the processing of data and
enable to employee information more readily available to
managers. It includes two main areas in application of
computer in the managerial decision making process. First is
the use of electronic computers managerial decision making
process and secondly computerized information system will
have great impact at the coordinate and strategic levels of
organization in future.
Impact of information technology
on human resource
To conclude this part, HR practices in multinational companies are more
challenging in present business circumstances. HR managers of any company have
to undergo lot of problems like retention, attraction of employee, dealing with
different cultural people, managing work force diversity, technological and
informational changes. To deal with these challenges, it is recommended to
conduct Cross cultural training and technological and informational training
program. To reduce mobility of talented employees, HR managers have to
encourage them from financial and non-monetary techniques. There is a need to
improve HRM Function and devise its policies, procedures and processes to work
on the global level. Currently, most of the HRM Policies are focused on the real
country, but the employees have to start to move from their nation to other parts
of world and the HRM Processes must support such a need in the organization.
Mr Jules can you explain to your students Why Does
Employee Retention Matter?

Employee retention has become a critical aspect

of modern human capital management
programs. The numbers speak for themselves: It
costs to U.S. businesses more than $1 trillion a
year to replace employees who voluntarily
decide to leave their jobs, according to Gallup*.
High turnover, some of which could be avoided
with prior management intervention, also comes
at the expense of revenue, productivity,
employee experience and knowledge retention.
* The Gallup organization : US company that is specialized in management and HR. Created by
George Gallup in 1935
Retention

9 Benefits of Employee Retention

As businesses compete for top
talent, employee retention is crucial.
While some experts suggest that a 90%
retention rate is a good goal, the reality
is, it varies across different companies
and industries. However, the ability to
retain employees is universally beneficial
for many reasons. The followings are
nine of the top benefits:
1- Cost reduction.
U.S. employers spend hundreds of millions of dollars every year
recruiting and training new workers. Those costs are sunk if an
employee leaves prematurely. Productivity, team cohesiveness
and morale also take a hit — which also has a financial impact.
2-Recruitment and training efficiency.
By focusing on employee retention, companies reduce recruiting
costs and enjoy greater returns on employee training. Recruiting
costs include fees paid to recruiters or to advertise the position,
interview-related travel and possible signing bonuses. Next
comes training, which can also be costly. If the employee leaves
prematurely after being hired, that money is wasted.
3- Increased productivity. Employee turnover sets back
productivity because it takes time for a new worker to get up to
speed and produce at a comparable level as their predecessor. It
also takes a toll on remaining staff, who have to take on
additional work and may produce lower-quality output as a
result. Conversely, high-retention workplaces tend to have more
engaged workers who, as a result, are more productive.
4- Improved employee morale. Organizations with successful
employee retention programs foster greater connectedness and
engagement, which helps morale and, in turn, boosts retention.
Conversely, a steady stream of departures has a dampening effect
on workplace morale, with side effects that include a decrease in
work quality and more workers who decide to leave.
5- Experienced employees.
It stands to reason that the longer employees remain at an organization,
the more engaged, knowledgeable and skillful they are. They have also
forged valuable relationships with customers and co-workers. When an
employee departs, the company incurs an opportunity cost in the
potential value the employee could have delivered.
6- Better customer experience.
Inexperienced and less adept new hires may be more prone to missteps
that negatively impact a customer’s experience with the company.
Satisfied, longer-term employees are often more skilled in dealing with
customers and may have strong relationships with them. This is as true
during all the stages leading to a signed contract as it is post-sales, when
a customer might reach out to customer service. A better customer
experience can also be a key brand differentiator.
7- Improved employee satisfaction and experience. A
symbiotic relationship exists between retention and both
employee satisfaction — worker happiness and fulfillment —
and employee engagement, the level of commitment workers
bring to their roles. Satisfied and engaged employees are
often more likely to stay in an organization, and organizations
with high retention rates often experience greater employee
satisfaction and engagement.
8- Stronger corporate culture. Corporate culture develops
over time, based on employees’ cumulative traits and
interactions. When engaged employees who are aligned with
an organization’s culture stay, they strengthen the
organizational ethos. A strong corporate culture also improves
productivity and performance.
9- Increased revenue.
Employee retention is not just about cutting costs; anecdotal
evidence shows it can have a positive impact on revenue as
well. Employers with better retention rates deliver a better
customer and employee experience, hold on to experienced
top talent and are more productive — each of which can
boost growth.
 What Happens When Businesses Have High Employee
Turnover?
A certain amount of turnover will always exist in an
organization, and some may be beneficial as it makes
way for new talent. Industries that tend to employ many
first-time, part-time, seasonal and student workers are
naturally prone to extreme or fluctuating attrition.

However, high turnover takes a toll. Companies with

higher turnover lose what they’ve invested in recruiting,
onboarding and training employees who leave. For those
remaining, morale and quality of work can take a hit.
 Employee Turnover

What Causes High Employee Turnover?

What makes workers want to leave a

company?

The exact cause of employee turnover vary,

but often fall into the following categories:
 What Causes High Employee Turnover?

Personal reasons. There are a number of reasons for leaving a job that have nothing to do with the employer,
such as relocating for a spouse, family issues, a career change or health reasons.
Work-life balance. Issues related to long hours or rigidity about work styles or location can drive employees to
seek more flexible or less demanding alternatives.
Incompatibility. Incompatibilities between employer and employee, which can often be traced back to poor
hiring processes and decisions, are a common and largely avoidable reason for turnover.
Work relationships. Individuals may have issues or conflict with their managers, co-workers or organizational
leadership.
Lack of opportunity. Employees who see a lack of workplace development, career path or opportunity to gain
new experiences may leave for a business with better mobility.
Financial reasons. Better pay and benefits available elsewhere are always a strong lure for employees to leave an
organization.
Employee Retention Models

Over the years, researchers

have developed a number of
models seeking to explain job
satisfaction. Rooted in
psychology, these models
have influenced HR’s
approach to employee
retention over the years.
They include the followings:
The Hierarchy of Needs.
Although psychologist Abraham Maslow
developed the Hierarchy of Needs to better
understand the essential needs of humans and
which must be met first, the theory can also be
used to examine the biggest contributors to job
satisfaction. The five levels of needs, in order of
importance, are psychological, safety,
belongingness, esteem and self-actualization.

Motivation-Hygiene Theory.
Two primary factors impact job satisfaction,
according to psychologist Fredrick Herzberg:
Motivators, also called job satisfiers, include
recognition, meaningful work and personal
growth. Hygiene, also called job dissatisfiers,
include salary, benefits and job security. Of note,
proper management of hygiene factors can
prevent employee dissatisfaction but are not
considered sources of satisfaction or motivation.
Human Motivation Theory.
In his 1961 book The Achieving Society,
psychologist David McClelland built on Maslow’s
work and identified three intrinsic human needs:
achievement, power and affiliation.
By understanding which needs an employee
prioritizes, employers can increase their job
satisfaction. Some employees, for example, may
be embarrassed by public praise. Some work best
with goal-oriented tasks.

Job Characteristics Model.

Organizational psychologists Greg R. Oldham and J.
Richard Hackman found the following job
characteristics increase job satisfaction:
skill variety, task identity, task significance,
autonomy and feedback.
Jobs created with these characteristics in mind
lead to more productive and motivated
employees.
How Can Businesses Tell That Employees Are Ready to Leave?
Employees may exhibit some telltale signs that they’re ready to depart,
such as a resume left in view or an increase in extracurricular
appointments. However, there are more subtle behaviors that signal
someone may be thinking about leaving. They include the followings:
Decreased initiative or productivity.
An individual thinking about leaving may no
longer put in extra effort or may seem
noticeably less interested in pleasing others.
Shift in attitude.
Negativity — about the job, a manager or co-
workers — can be a sign an employee is ready to
move on.
Lack of commitment. Employees who are
heading out the door may avoid long-term
projects or put in shorter days.
Dwindling enthusiasm. Individuals considering
their options may seem noticeably disconnected
from the organizational mission or less eager to
work with clients or customers.
 How to Improve Employee
Retention

Improving employee retention begins with hiring the right person. This requires
defining the job itself — responsibilities, required skills, work environment — and
developing a fine-tuned job description that attracts appropriate candidates.
Once an organization has chosen a new hire, orientation and onboarding are key to
making them feel welcome. A well-planned and organized onboarding program has
been shown to increase employee retention, engagement and commitment. In
addition, competitive compensation and employee benefits are important not only for
recruiting the best and brightest, but also for keeping them. So are competitive
bonuses, paid time off, health benefits and retirement plans.
Finally, employees value meaningful work that makes good use of their skills and
abilities. Career development and growth opportunities are other critical aspects of
employee retention, as is recognition for their contributions.
 Employee Retention recap
What is the meaning of employee retention?
Employee retention is defined as an organization’s ability to hold on to its
employees. It refers to the strategies an organization develops to mitigate
employee turnover risks and the processes it puts in place to increase retention
of top talent.

How do you increase staff retention?

Improving employee retention begins with hiring the right person. From there,
strategic onboarding practices have been shown to increase employee retention,
engagement and commitment. Competitive salaries, bonuses and health benefits
also contribute to retention, as does meaningful work.
What contributes to employee retention?
Employees remain at organizations for a variety of reasons, including meaningful
work that leverages their skills and abilities, career development and growth
opportunities. Competitive salaries and benefits are other reasons that workers
stick around.

What are the five main drivers of retention?

The reasons employees stay on the job vary, but many commonalities exist. They
include being treated with respect, fair compensation, feeling trusted and
empowered, job security and the ability to use their skills and abilities to do their
best work.
End of Thank you
all
course
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