Human Resources Management Case Study: Employee retention in GS Plumbing

What should GS Plumbing be doing when employees leave the organization?  How could such activities improve retention, recruitment and selection?

GS Plumbing, and especially Alan as the HR Manager, can take certain constructive steps in improving retention, recruitment and selection of employees.  As the case clearly illustrates, GS Plumbing is ailing from high turnover rate, low levels of trust between managers and employees, and chronic bickering from certain employees.  Hence it is high time for Alan and the founder Greg to take control of the situation.

The HR department of GS Plumbing can introduce/enhance employee welfare programs to keep the workforce motivated and satisfied.  Employee welfare refers to the array of benefits (either monetary or as services) salaried employees are entitled to during their term of association with a company.  Usually employee welfare measures include contributions to the pension fund, health insurance coverage, offering stock options, providing paid leave, etc.  Some modern employers even offer crèche or play areas for children of female employees.  The purpose of these measures is to provide employees with a safety net against unexpected events and occurrences. (Budd, 2004, p.45) These measures will also enhance the goodwill toward the management of GS Plumbing.  More importantly, employee retention will also become strong.

Likewise, Alan and Greg can also focus on promoting ‘employee voice’ within the organization.  The imbalance of power between the management and the employees is evident from the fact that large numbers of business corporations in the UK are in support of a vibrant trade union.  Hence, GS Plumbing can act ahead of the curve and proactively empower employees so that they don’t resort to their unions to have their demands and grievances addressed. (Marlow, 2001, p.95)

Heeding to the guidelines of Equal Opportunities Commission (EOC) will also help GS Plumbing’s present situation.  The HRM can device a set of rules for recruitment that is based on principles of equality, fairness and justice.  Making sure that discrimination of minority communities does not exist within the organization, especially during the recruitment phase, is a valid principle. This is so, because, despite the UK gaining a reputation for its cosmopolitan demography, the issues of race and ethnicity have not been fully superseded.  Similarly, placing male and female employees on the same pedestal will contribute toward employee retention. (Phillips, 2006, p.77)

Hence, alongside consolidating employee welfare mechanisms, GS Plumbing management will have to work on promoting a culture of greater employee ‘involvement’ and ‘participation’.  These measures will lead to an empowered workforce that will eventually prove more loyal, more productive and highly contented with working for the company.

References:

Budd, John W. (2004). Employment with a Human Face: Balancing Efficiency, Equity, and Voice. Cornell University Press.

M. Marchington and A. Wilkinson, Human Resource Management at Work: People Management and Development (CIPD, 4th edition, 2008) chapter 10.

Marlow, Sue. (Jan-March 2001), “`The Characteristics of Small Business Employees’.” International Small Business Journal 19.2 : 95.

Phillips, Estelle M. (March 2006) “Managing to Discriminate.” Journal of Occupational and Organizational Psychology 65.n1 : 77(2).