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Abstract
In organizations operating in the Agency care industry in London, their employees are allocated jobs in homes of individuals to ensure the clients live conformably within their local communities. To retain the clientele, the capacity of the services delivered by these employees to satisfy the clients is essential. This challenge prompts organizations to emphasize service quality as an essential organizational differentiation strategy. The work environment is such that managers cannot control or monitor employees to ensure compliance with service quality standards established by the organizations. This poses problems of continuous improvement in the service quality of the organizations. This research uses a sample size of 385 respondents to conduct interviews on the impacts of HRM approaches in London care PLC, Allied healthcare, Metro London healthcare, and Care International on the turnover of employees that affect the turnover of employees. The aim of the research is to study variables such as nurses, working conditions, career growth, remuneration, age, and the duration of the workforce on their impacts on the turnover. This aim is rested on the platforms of research findings in the discipline of human resource management showing that organizations, which are successful in the competitive marketplace, deploy HRM approaches to gain competitive advantage. The findings of the research indicate the HRM strategies deployed by London care PLC, Allied healthcare, Metro London healthcare, and Care International are different. Their applicability in any organization depends on the characteristics of the organization and strategic decisions for gaining a competitive advantage. However, the roles of nurses, working conditions, career growth, remuneration, age, and the duration of workforce influence agency care industrial organizations studied in the research.
Introduct the Ion
Over the last three decades, the economy of the UK has shifted from being based on manufacturing to placing more emphasis on the development of knowledge-based industries its favoring the development of service sector firms. This implies that companies are shifting to relying on the employees as the source of competitive advantage to survive in a dynamic marketplace. Indeed, several organizations based in London invest very little intangible assets. Their operational success depends on the people they employ. Such organizations include the agency care organization providing services ranging from housework to patient care within the homes of the patients. Consequently, in such organizations, HRM approaches are essential.
Objectives of HRM
Several studies support the assertion that HRM has positive impacts on organizations in the services industry. For instance, a study by Huselid showed that HRM practices can be leveraged to improve employee skills, increase motivation, and foster commitment to a company by linking certain types of HRM practices to lower voluntary turnover, higher financial performance, and increased market share (635). The impacts of HRM are also found valid on the foodservice industry (Wright and Gardner 412), organizations having high employees diversities (Crook et al. 445), organization involved in general manufacturing,(Youndt 836), an organization specializing in the automotive assemblage and manufacturing (Takeuchi and Wang 1071).
In this research dissertation, it is held that organizations in the service sector need to consider various HRM approaches, which may help to influence positive outcomes. For Agency care organization based in London, HRM practices are important since they mainly rely on the services delivered by their employees to the clients for the derivation of their competitive advantage. The roles of HRM in such organization are significant in consideration of the argument that people working for any organization act as the source of competitive advantage and they cannot be optimized using economic theories in the same manner as other factors of production such as capital and land (Ollapally and Bhatnagar 455). This argument forms the basis of this dissertation research paper.
Different HRM approaches are effective to different degrees depending on the nature of the organization and industry in which the organization operates. Hence, the objective of this dissertation paper is to set a theoretical paradigm, which helps to provide the basis of making a recommendation of appropriate HRM practices, which can be instrumental in agency care organizations in London by helping them gain a competitive advantage. To realize this aim, research will be conducted in four London-based agency care organizations. The organizations are London care PLC, Allied healthcare, Metro London healthcare, and Care International. These organizations provide home care service and individual l assistance to the person of different ages.
The focus of the organizations is to ensure that people enjoy their lives while living within their local communities at the comfort of their own homes. To achieve this focus, organizations employ people from diverse backgrounds. For the case of London care PLC, Allied healthcare, Care International, and Metro London health care, it is incredible that the management for the organizations deploy appropriate human resource management approaches. The goal of this dissertation paper is to determine whether variables that are associated with HRM practices such as supervision, working conditions, career growth, remuneration, age, and duration of the workforce have impacts on the turnover for employees in the four-agency care organizations operating in London. The results of the research are useful in the proposition of the appropriate HRM approaches to reduce turnover. Direct interviews are used to collect data from employees. A simple sampling technique is used to generate the sample used in the research.
Literature Review
HRM as a Core Competency
The human resource arm of an organization has an immense responsibility to ensure that top talent within an organization is retained. HRM is a core competency for an organization whose objective is to handle issues related to employees. Such issues include enhancing motivation, enhancing job satisfaction, laying remuneration structures, giving advice on promotions, and aiding an organization to acquire top talent through the selection and recruitment (AbuKhalifeh and Ahmad 42). The department also ensures the proper induction of employees. Training of employees also follows induction. Moreover, on-the-job training and workshops enhance employees skills. As a core competency for an organization, HRM also engages in tasks such as training and development and managing conflicts within organizations conflict resolutions (AbuKhalifeh and Ahmad 42). Conflicts that HRM enhances their management are between an organization and employees or between employees and other employees.
Labor turnover in many organizations is deployed as a measure of performance (Beecroft 41). It measures the decisions of the worker to remain committed to the work of an organization. Devir and McMahon define labor turnover as the movement of people into an out of employment within an organization (143). Labor turnover is controllable or unavoidable in some situations (AbuKhalifeh and Ahmad 42). In the service industry, turnover comprises one of the major challenges that influence organizations. Devir and McMahon agree with this assertion by further claiming that high turnover in the service sector organizations results in increased costs of recruitment coupled with training of new employees to fill the gaps left by the outgoing employees (144). Several studies conducted on the impacts of turnover on the service sector organizations contend that turnover is one of the issues that organizations seeking to exploit cost competitiveness as a strategy of success should address proactively (Khilji and Wang 377). Scott and Snell amplify this argument by adding that in case few people remain employed within an organization for a period less than five years, labor costs increase tremendously through high costs of replacement of the people leaving their employment (875). Many of the studies in the service sector turnover address cause together with the impacts of the labor turnover.
Job Satisfaction and Employee Retention/Turnover
Organizations conduct studies on turnover at an individual level as a means of evaluating the effectiveness of the HRM in conducting its organizational role of enhancing job satisfaction. According to Khilji and Wang, some organic nations conduct an analysis of their turnover as a routine for executing business (379). Many scholars in human resource management contend that people quit their jobs in case they are not satisfied to look for other jobs existing within the same industry (Hom and Kinicki 975). Addressing issues of labor turnover in human resource discussion is important since HR programs designed to reduce turnover can result in tremendous bottom-line improvement (Phillips 180). The literature on human resource management identifies several factors such as lack of job satisfaction among other aspects, which may influence turnover in the service sector organizations.
Others include organizational socialization processes, the procedure deployed for the employees recruitment and development, styles deployed by leaders and managers to direct and control employees (Hom and Kinicki 975). Other factors include burnout and organizational stress, and labor shortages (Devir and McMahon 149). Socialization is a great factor in determining the rate of employee retention and satisfaction. High turnover can demoralize the current employees and/or deter potential talents from seeking jobs in an organization. Investors can also be scared of investing in a company that has a high turnover. An organization that socializes its employees is likely to win them hence retaining them for a longer period because they are satisfied at work. Socialization involves a close and open interaction between employees and the administration. A good relationship between employees is also a great reason for employees to remain in an organization. Poor socialization results in enormity and grudges between employees and their supervisors. Organizations plan for interaction forums that bring their employees together for a particular purpose. Such forums include annual general meetings, luncheons, and open forums.
Well-socialized employees also act as informers of the management. Such employees feel obliged to report and/or give opinions on better management of their jobs. This fosters teamwork and cooperation within the firm. Consequently, employee satisfaction is achieved. Human resource development induction is also crucial in ensuring employee satisfaction and retention. The initial induction and orientation that new employees receive when they first come into an organization determine the image they form in their minds about the firm. During HRD induction, an employee forms a frame of reference about the management, supervisors, and employees of an organization. First, opinions are therefore developed during induction. Proper induction also means low wear and tear, scrap, and even errors. The leadership style that organization practices also determines the level of employee satisfaction and retention. An organization that practices dictatorship leadership may not perform as well relative to the one that practices laissez-faire or democracy. Some leadership styles make employees stressed and overworked.
This results in job burnout. Exhausted employees have low morale in their jobs. The absence of sabbaticals and leaves makes employees turn to absenteeism. Most of the employees in such organizations experience demotivation and hence low performance. Employees do not enjoy their working environment and/or their work. Low input results in low performance. Turnover is preceded by the perception of leaving given employment. Khimji and Wang argue further, Labour turnover is not an isolated occurrence, where multidimensional aspects include low staff morale, substandard ,work performance and absenteeism (380). In the service sector, the impacts of labor turnover are categorized as indirect and/ or direct costs. The sphere of direct costs involves all financial challenges that an organization encountered accruing from increased incidences of turnover such as training coupled with recruitment costs. This suggests that the differences in the management of the workforce may contribute to increased turnover within an organization following the different factors that the management may put in place to influence job satisfaction.
HR Retention Strategies in Organizations
The realization of the need to retain employees within an organization prompts management scholars to explore various retention strategies that can provide a guide on how to accomplish the task. Some of these ways are developed by organizational theory. They include fostering motivation, mentoring, and even choosing a balance between X and Y theory as discussed later in the paper. By deploying effective approaches to human resource management, turnover can be managed effectively. Recruitment followed by successful retention of personnel in an agency care-nursing organization such as Metro London health care is an incredible challenge especially in the business environment characterized by shortages. As a result, an emerging body of literature on human resource management practices indicates that different HRM practices can be grouped into bundles to have the desired impacts on the employees turnover. According to HayGroup, this means that individual HR practices may not have the capacity to produce different attitudes on the employees of an organization (1).
This implies that employees consider the HRM practices approach as constituting one holistic system. Consequently, individual strategies for managing people as developed by the human resource department within an organization do not produce different behavior among the employees in terms of altering their behavior coupled with attitudes. Programs for employees treatment are enacted by the HRM to ensure that employees are treated with fairness without disc discrimination along with diversity differences. The practice also sets mechanisms for rewarding employees whose performance exceeds the preset standards. Fairness in the distribution of resources and equitable remuneration is equally important. There should be fairness in pay and reward systems. In terms of job design, different components of a job that are related are brought together to form one complete job description. An employee is therefore assigned a well-organized the d and spelled out the job. Completion of such a job becomes easier. This makes employees creative, hence having goodwill towards their job. Employees goodwill also makes them practice complete engagement in their jobs.
Performance anticipation policies are adopted in the bid to raise the performance of employees through the development of skills. Sub-categories of this bundle include training, hiring, and rewards systems. Reward systems ensure that job performance is consistent with the rewards and sets mechanisms for promoting employees based on their performance as opposed to seniority (Hom and Kinicki 981). A good reward system from HR makes it possible for employees to develop themselves and/or compete for the best rewards. In the process of competition, employees become more creative and committed to their jobs.
The organization also benefits from increased production and goodwill. Employees will remain in an organization in a bid to ensure that they are present during the end of year reward moment. Recognition of employees who perform well after job appraisal also makes them committed to the organization. Training programs also help to provide ways of enabling the HRM to deliver feedback on employees capabilities on a regular basis and in a consistent manner. Training is essential in ensuring that poor performance associated with a lack of sufficient knowledge on the job is mitigated (Shaw and Fang 1017). Human resource development is a key factor in employee retention. Arthur insists that for HRM to yield results in effectively managing people, HRM approaches deployed should be classified in to different categories and then strategies developed to ensure that best results are achieved for every practice (673).
Types of Employee Turnover
Employee turnover is divided into two main types: voluntary and involuntary turnover. Voluntary turnover occurs when employees decide to quit from employment out of their own will to engage in other activities such as self-employment, but not because the job was dissatisfying. Voluntary turnover is considered in the service sector industry as a management problem, requiring an urgent solution (Devir and Mthe McMahon 145). In the case of involuntary turnover, people are compelled by circumstances to quit their employments. Such circumstances include poor pay, perception, of exploitation, and work-personal life conflicts among other reasons (AbuKhalifeh and Ahmad 42). Examples of the HRM bundles that yield the ding results in the effective management of employees include inducement practices and programs for performance expectations.
For inducement practices bundle of HRM practices, sub practices include employees treatment, job, design, fair pay, and motivation among others (HayGroup 2). The categorization yield bundles of different practices, which Shaw and Fang maintain the lips to increase the commitment of employees to an organization (1016). With good job designs, employees are satisfied with doing jobs that they are well qualified in and/or that are not strenuous. This results in specialization and creativity. Through the provision of training coupled with aiding in the provision of incentives to employees, some HRM practices bundles aid in increasing the performance of employees (Shaw and Fang 1017).
Role of HRM in Health Care Organizations
HRM ensures that retention strategies like organizational fairness to the employees, equality, and the rewarding of every employee are upheld. HRM also develops job designs that ensure that various components of a job are fitted together and that every employee is aware of all his duties. This ensures efficiency and accountability. The impact of good turnover management is increased innovation, creativity, goodwill, and full engagement of the employees. As a result, productivity is enhanced as conflicts and losses are lowered. For nurses, scholarly research in recruitment identifies several factors that may influence nurses to accept nursing jobs within different agency care organizations coupled with factors that influence their decisions to stay on the job they have accepted.
For instance, Jones claims that recruitment and subsequent retention of the nurses are influenced by factors such as salary, the reputation of the health facility or agency care, nature and the status of unions and, more importantly, the autonomy of work (p.43). It is also the duty of the HRM department to ensure proper leadership methods and strategies in the organization. Poor leadership style results in job burnout, low employee morale, absenteeism, and low productivity. From the paradigms of the factors that may influence the decisions of a given nurse to stay within a given facility, the retention of nurses may be influenced by several factors. They include recognition and inclusion of an individual nurse in the decision-making process of a health facility, nature of the workload, and the interrelations of a nurse with fellow workers within the departments and even n the entire organization (Jones 44)
Recruitment, as a function of HR, and retention often overlap. In the nursing sector, Sourdif (59) confirms this assertion by arguing that the concerns of recruited nurses overlap with the decisions to remain employed. Sourdif concludes that factors, which encourage registered nurses to have driven for joining a health facility followed by their subsequent desire to remain in the employment, need to be given central consideration by any organization, which seeks to attract and retain sufficient nursing staff (66). However, although it is important to conduct thorough scrutiny of nurses before they are recruited to an organization in the attempt to find whether they would be retained and remain motivated while working under existing working conditions within an organization, it is important to note that recruitment is an expensive affair.
For example, Jones approximates that it requires about $62,100 to replace an existing registered nurse within a health facility (p.45). Arguably, this is an immense cost especially by noting that a single turnover of a single nurse creates a vacuum in terms of workload, which must be taken up by other nurses. From the perspective of human resource management, increasing the workload implies that the nurses who are left are likely to get lowlily motivated due to increased works loads, which they consider unfair. In fact, DiMeglio and Piatek (2010) find a single turnover as having the capacity to truncate into multiple turnovers. The only most practical way to deal with this self-replicating problem is to seek mechanisms of employee retention (115). Motivational theory is essentially ingrained in the perspectives of human capital management (Pfeiffer and Gellar 7). Its focus is looking for mechanisms for maintaining the work morale of both new and existing workforce within an organization.
Reasons for Home Care Turnover
Home care turnover and intents of such turnover cases are normally common amongst recruits. Beecroft supports this line of argument by claiming that the turnover rate among first-year nurses is in the range of 35 the o 60 percent in the US (45). Cognition of these outstanding rates calls for the deployment of imperative and effective employee retention strategies. A particular focus of human resource management is on the management of the diverse workforce of home care organizations. In the era of globalization, physical boundaries between nations have been made porous so that home care organizations employ people from diverse nationalities and cultural backgrounds (Dessler 87). The impacts of free movement of people, goods, and services across different nations have seen agency care organizations based in London employ people from across the globe. This introduces the challenges of minimizing workforce challenges and hence turnover attributed to differences in workforce cultural diversities.
These causes of high turnover intents among the recruits are explained by Beecroft as being instigated by delegations of responsibilities to new recruits yet such people do not have experience (47). This implies that even though delegation is an incredible strategy for enhancing the work morale of people as developed by studies in human resources, it fails to work well in situations involving a new workforce due to work pressures while operating in an unfamiliar environment. Chu and Price evidence that attitudes coupled with work pressures incredibly influence nurses from the basis of job satisfaction and their commitment to organizations (179). Problems encountered by agency care organizations are related to the ability of HRM to control employees. The nature of the work environment and work pressures that people working for an organization is susceptible to affect retention. This implies that in case of people are exposed to a bad working environment, the intents of turnover are higher (Firth, Mellor and Moore 175). This evidence is rooted in the theory of human resource management.
Managing effectively turnover in the service industry requires home care organizations to deploy various strategic initiatives geared towards enhancing workforce motivation. Research evidence in the hotel industry shows that human resource management is pivotal in helping a health care organization to gain a competitive advantage. These findings are consistent with earlier research findings in other industries in which HRM has been found as playing an incredible role in enhancing the performance of home care organizations (Ragburam and Arvey 56). In the home care service industry, the utilization of people in the most effective way enables organizations to gain a competitive advantage. For agency care organization in London, focusing on strategies of effective management of the employees can aid the organizations to foster their retention.
Successful HR Talent Management: Impact of talent turnover or retention in the organization
Indirect impacts of turnover include low productivity associated with the unfamiliarity of new employees within an organization, dwindled quality of service due to overstretching of few remaining employees, low work morale, and compromising of standards set by organizations (Bowles and Gintis 74). These factors affect employee satisfaction as discussed above. Brockbank argues that different organizations, even though working in the same industry, exhibit different levels of turnover (341). London agency care organizations operations are unique in comparison with other industries. Similar to the hotel industry, agency care organizations render services to customers via employees (Lewis 42). This means that the employees are the representatives of the agency care organizations within areas where they are allocated duties. Consequently, the success of agency care organizations in London is a function of effectiveness in talent management by HR.
Experience and the ability of employees to satisfy the needs of the customers are developed with time. Therefore, although it is important for HR in organizations offering agency care services in London to focus on recruitment of the most talented and qualified people, it is important that such people are not lost to competing organizations over time by ensuring that turnover intents are significantly reduced. People are important assets of an organization. HRs recognition of the value of people in an organization prompts organizations to invest in human capital management with the chief objective of responsibly attracting, developing and managing a firms biggest asset, people (Bowles and Gintis 75). The value of service delivery within an organization depends on the extent of the motivation of the employees who deliver services to clients. Hence, it is crucial that the agency care organizational management ensures that people remain motivated by handling various situations that may render them experience low self-esteem and low attitude towards their work. This makes the concepts of talent management relevant in the agency care organizations established in London.
Amid valid theoretical approaches to the concepts of talent management and its applicability in agency care organizations, Alan Erskine, a management consultant, argues that human capital management cannot be implemented by an organization without collaboration between IT, human resource and operations management arms of an organization (Erskine 12). According to him, human capital management entails the mechanisms fo the r ensuring that the organizational workforce remains motivated and productive in the effort to realize organizational goals (Erskine 12). According to Erskine, human capital management can be simply defined as the holistic approach to contracting and optimizing the time of employees (Erskine 12). From the basis of this definition, human capital management arguably entails an essential component of achieving the goals and objectives of an organization through people. Hence, to realize organizational goals through people, efforts need to be made to ensure that recruited employees are retained within an organization for a long-term through retention strategies such as motivation to enlace job satisfaction.
Relationship between HR Policies and Employees
The intents of employees turnover can be reduced by putting in place policies for ensuring employees are satisfied with their work. Although turnover has been shown by research as having unhealthy implications on organizations, some critics maintain that turnover in an organization cannot be avoided especially for growing organizations. For instance, Mount states, an organization that is choosing to thrives and grow must expect a higher turnover rate than companies that settle for the status quo (109). This research seeks to seal this gap by studying the supervision, working conditions, career growth, remuneration, age, and the duration of work, HRM policies employed at London care PLC, Allied healthcare, Metro London healthcare, and Care International in influencing employee turnover decisions and the actual turnover. Price argues that the service sector organization tends to have high rates of labor turnover and have to depend on the external labor available in the market to fill various vacancies often created (47).
Nevertheless, Mullin insists that labor turnover cannot be considered a problem that afflicts all service sector organizations. For instance, Brown and Cheng research on the roles of the man resource in the reduction of turnover indicated that in both Australia and Singapore, in the hotel industry, there are clear HRM policies desire and to enhance the motivation of employees in the effort to reduce their actual turnover and turnover intents (136)a. There is also a substantive effort by HRM to enhance retention of employees through the recruitment, selection and inductions process (Brown and Cheng 136). The researcher further found out that HRM policies despited to enhance the retention of employees within Australia and Singapore hotel industry were coherent irrespective of differences in the labor policies (Brown and Cheng 147).
Many organizations seeking to ensure they are successful in the long-term through the strategic initiative of focusing on the employees as their most important resource for gaining competitive advantage endeavor to ensure that occupational hazards are reduced coupled with ensuring that labor loss is minimized. Pfeiffer and Gellar support this line of argument and further notes that today, because of the recognition of the crucial importance of people, HRM in an increasing number of organizations has become a major player in developing strategic policies and facilitating changes within the organization (8). One of such policies is looking for mechanisms of enhancing the motivation of employees such as enhancing safety in working environments. In the context of agency care organizations, safety policies not only refer to freedom from situations that may harm people physically but also emotionally. A situation that may prejudice an agency workers emotional safety includes conflicts with the customers while within their premises of residence. Unfortunately, the HRM has no direct control of these working environments.
Factors affecting Turnover and Retention
Any organization seeking to attain high performance using people must strive to invest in programs that will enhance the retention of employees. Lack of such programs increases the rate of turnover as employees are persuaded in their work. Many organizations do not recognize employees who perform well. They should be rewarded fairly. Such rewards make them want to remain in the organization. Fair pay is aimed at ensuring that employees are remunerated commensurately to the efforts put at work and consistently with the current, market rates with an industry in which an organization operates. Job design is also another factor that many organizations do not consider. Job design ensures that employees are directed and controlled in such a manner that they become innovative and creative in their work (HayGroup 2). It also entails the allocation of tasks that are reasonable depending on the role that is played by a given employee or workgroup in aiding to yield the success of an organization.
Management of people to enhance their successful recruitment coupled with their retention is a crucial fa
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