The first challenge that must be addressed is employment security. According to the text, “Security of employment signals a long-standing commitment by the organization.” The issue at hand is that our organization has a high turnover rate for Material Handlers, which starts as temporary positions. Employees want and desire permanent positions, and our employees know that tomorrow is not promised to them, so making a lasting impression is important. The possible cause for this trend is because of the type of work being done. Warehouse work can be tedious and even non-challenging to say the least, yet it can yield positive results.
The wages are low in the beginning but can lead to rewarding pay and job security however, the high possibilities of layoffs or not making the 90 day trial period can be strenuous. For these reasons, employers will not continue to make a valiant effort to be a part of the organization. The steps that need to be taken is to address this issue is to allow a higher starting salary, with benefits that will start as soon as new employees are hired for full time work. This will ensure employees will want to give more to the organization and be a part of the team.
The second topic is employee training and skills. The challenges that the organization faces is that there is no formal training as far as Material Representatives are concerned. These are the men and women who control all inventories coming in and out of the warehouse. The training has been the responsibility of the last person that worked a particular portal. This particular training method leads to bad habits, and not knowing the true ins and outs of the system, which can cause miscounts and lost inventory. According to the text, training will provide positive returns only if the trained workers are permitted to employ their skills. It is deemed that the organization does not care to spend the efforts or money on training which also makes employees distant themselves from the organization because they are unsure of their jobs. Without incorporating new skills, training is useless. The best way to address this issue is to invest in the necessary training for our employees to yield the positive results needed to move the organization forward.
Huselid, M. A. 1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3): 635–672. Strategic Human Resources Management Second Edition, Chapter 1, Jeffrey A. Mello