Attrition: The Two-Factor Motivation Theory
The success of a business organization depends on the HR department’s ability to establish and maintain high levels of satisfaction among the employees. If the employees’ satisfaction level declines, the business might face attrition, which affects the operations and profitability of the organization. Therefore, the Human Resource department in any business organization or company is tasked with ensuring high levels of employee satisfaction to minimize chances of attrition. The HR department identifies the cause of deterioration and develops effective strategies to address it. The scenario describes a company that has experienced a high level of attrition, 40%, but cannot tell what led to it. The company has six departments and 600 employees, meaning each department has approximately 100 employees. The two-factor theory of hygiene and motivators would be essential to analyze and determine the main reason for the high level of attrition faced by the company.
The two-factor theory reveals that job satisfaction and dissatisfaction occur independently in any workplace. Some factors lead to employees’ satisfaction, and factors lead to employees’ dissatisfaction. The factors that lead to employee satisfaction are classified as motivators, while those that lead to dissatisfaction are classified as hygienic. From the scenario of the company with six departments and 600 employees, one clean factor leading to dissatisfaction among the employees is the high number of employees compared to the number of departments. In a department with 100 employees, it would be challenging to coordinate the employees effectively; thus, performance in the business organization might decline. Besides, the HR department in charge of 100 employees might not be able to identify the workplace-related issues that affect the employees. As a result, problems that affect employees’ motivation and performance are not effectively addressed.
Another hygienic factor that has led to the high level of attrition in the company is the multiple number of HR business partners. HR business partners help organizations align their operations with the market needs and the goals it needs to achieve. However, if a business organization has many HR business partners, they might differ in their opinions and lead the company to make wrong decisions. For instance, the HR department has only four employees tasked with handling 600 employees. Therefore, the HR department cannot effectively manage the high number of employees, which might result in employees resigning and underperforming. There ought to be a standard staff ratio to ensure efficacy and prevent employees from quitting and underperforming. Part of the high attrition for the business organization in the case study results from an unbalanced staff ratio. Business organizations and companies that do not have a balanced staff ratio underperform and experience numerous employee-related challenges.
The employee-supervisor relationship is the other hygiene factor leading to the high attrition in the business organization presented in the scenario. The HR operations manager is new in the business organization, meaning there is no established relationship with the employees. A lack of a good relationship between employees and supervisors might result in attrition because of a lack of motivation and trust. Employees’ motivation and willingness to perform well emanate from good workplace relationships with their seniors. The issue of establishing a good relationship between the new HR operations manager and the employees ought to be addressed to help mitigate the high attrition experienced by the business organization. To ensure the issue of attrition is fully managed, the HR department should provide opportunities for the employees to advance their knowledge and skills, implement programs that support employees’ personal growth, recognize the work done by the employees and reward them, and address the job status of the employees.
The How of HR Operations
Project One: The Onboarding Process
The Onboarding process is part of the ‘how’ of human resources operations. It is an essential function that facilitates the human resources operation to run effectively and smoothly. It entails ensuring that the employees of a particular project can follow through with it from start to end. HR uses all the steps available in the onboarding process to ensure the project runs smoothly. For instance, in a dam-building project, HR has to make sure they hire employees who have the suitable capacity to take part in the project. The dam building project managers get recommendations from the HR department, which facilitates assimilating and transitioning employees. It also ensures that the project does not fail to succeed, as it is well-equipped with a team to deliver the desired results. Hence the need to have an onboarding process for HR operations.
Project Two: The Onboarding Process
The onboarding process becomes an essential part of HR operations when looking at cultural change for an organization as a project. Changing an organization’s culture is difficult, as it requires a lot to be one and make employees support it. The onboarding process is essential in the project as it helps the organization make significant decisions. The process of assembling the team members and resources needed to guarantee a project is finished correctly is known as project onboarding. The project manager front-loads the planning phase during project onboarding to ensure that projects are completed on schedule and with all necessary deliverables. The onboarding procedure also tries to foster relationships between new hires and other stakeholders in the business. Attempt to foster meaningful connections between the recruit and their team, management, customers, and vendors, unless your working culture is one of icy isolation.
Project Three: Payroll Process
The payroll process is an instrumental aspect that facilitates human resources operations. In a given project, such as the construction of a social hall, the payroll process would reduce the payment of all employees. The HR manager’s crucial duty is to ensure everyone gets paid fairly and on time. Employee trust and the organization’s reputation can be harmed by even one error. Therefore, processing payroll is a crucial duty that must be carried out correctly. Additionally, reporting and paying employment taxes are involved. Thus, all the employees assimilated into the project will receive their salaries as specified through the payroll process. A good example is the employees working on the construction of the social hall, as they are the carpenters who are paid differently from the mason dealing with concrete. The payroll will specify the amount each receives and the total expenditure for the employees on the project.
Project Four: The Offboarding Process
Offboarding occurs when a worker decides to leave the company or is let go. The HR operations use this to have a clear record of the employees being cut off from the workforce through the project. For instance, a company is looking to lay off its employee over some time to accommodate the use of machines. The administration must ensure the employee returns business property, inform IT and payroll of personnel changes, and prepare any documents the employee might be required to sign. Exit interviews, which are discussions involving the employee, manager, HR, and leadership team, are another component of offboarding. HR Operations is seeking input from the departing team member on ways to improve the working environment and employee experience for the present and future employees during this discussion. It is hence essential for human resources to use the offboarding process when on projects.
HRMS Implementation
HRMS Tool Implementation in Talent Acquisition and Onboarding
The HRMS tool implemented will manage and overlook the overall employee cycle in the company. The TA properties will be implemented to monitor employee performance in identifying the employees needed for the organization. Information from talent management, the foundation of helpful software, can pinpoint the skills and knowledge required for which roles and where to find them internally and externally for recruitment. Creating talent communities and pipelines, utilizing social media, and gamifying aspects of the assessment procedure are all examples of ways talent management tools can automate elements of the organization’s hiring process. Using gamification can make the company more appealing to some candidates, especially Millennials, because it shows the organization as a tech-savvy, forward-thinking employer. Again, the tool can optimize onboarding and training strategies since it can find out which tasks work best for which kinds of employees, and then they can be tailored to give identified talent the training and support they need to reach their full potential. The tools will create onboard tasks, assign them to employees and monitor their progress.
HRMS Tool Implementation in Performance System
Human Resource Management software can access all company HR and workforce data when used as part of an integrated system. This data can provide targeted feedback and enhance individual performance and teamwork because most interactions today are electronic and recordable. It is a valuable tool for developing individuals with potential in talent management. The targeted data include employee outcomes, income generated from an employee, and the impact of an employee on company progress. The tool will monitor how employees work and manage their time during work hours. The tool will set individual goals, assign weights, work together, evaluate organization employees individually through comprehensive performance reviews, develop a development plan that aligns with the organization’s values, and evaluate each employee. The tool should store and recover all current employee-related statistics, such as basic profile, employment and performance history, and role. On a single, centralized database accessible easily and digitally from any location to make decisions about the workforce or the organization based on how well they do. For efficient workforce planning and management between processes, utilize trends forecasts and pre-defined templates to optimize daily headcount.
HRMS Tool Implementation in Payroll System
Payroll processing can be made easier by offering a wide range of services, such as an integrated accounting module, automated tax computations, a tool for frequent audits and reports, and tabular data storage. The analytical features of the tool will allow for flexible support for employee payroll relocation and all other company workforce management tasks. Use payroll and other modules to seamlessly analyze employee performance and make cost estimates for the entire organization based on various parameters: employee, division, customer, position, project, or activity. Automate the approval procedure for timesheets that must be paid, including the amount due. Create and oversee comprehensive employee compensation plans for various teams, departments, and locations. Collect compensation data to view and edit anytime, connecting it to performance and organizational goals. The tool will also be linked to a performance evaluation system to generate rewards for employees who perform better and keep rewarding real-time data. Table 1 below summarizes the implementation process of the HRMS tool in various business processes.
Table 1. HRMS implementation summary.