Employee Turnover and Compensation

Human Resource The HR component plays a crucial role in an organization. The component is generally involved in the planning and management of human resources, arguably the most valuable asset an organization has (Stredwick, 2014). It provides services such as employee recruitment and selection, training and development, performance management, as well as remuneration and benefit management. The HR is also involved in workforce planning, job design, diversity management, and labor relations. These services are crucial for the achievement of organizational goals and objectives.

A particularly important service relates to employee recruitment and retention. To achieve its strategic goals and objectives, an organization must attract and retain the right pool of individuals (Mello, 2015). It must have individuals with the necessary skills, knowledge, and experience. This is crucial for creating competitive advantage in an increasingly competitive and dynamic environment. The HR component serves a vital role in identifying and filling the human resource needs of an organization.

This is achieved via thorough screening of job applicants as well as meticulous design and implementation of training and development programs and remuneration structures. As per the provided scenario, there are three current practices that Sarge Industries can or should improve as far as its HR processes are concerned. These relate to: contract terms and conditions (there is no full adherence to contract terms and conditions); compensation (there is limited flexibility in pay practices); employee scheduling (done on the basis of seniority as opposed to qualification).

These issues must be addressed if the organization is to make the most out of its employees. One of the issues that particularly require attention is compensation. This is an issue that has historically presented a daunting challenge for the HR function in most organizations (Mello, 2015). Two ways through which the company can improve compensation are ensuring flexibility in pay practices and promoting transparency in the compensation structure (Stredwick, 2014). Flexibility essentially entails having a compensation structure informed by the prevailing pay trends. This implies regular adjustment of pay plans.

Transparency entails proper disclosure and communication of the compensation structure to all employees. It is important for employees to understand the process through which their pay is determined. It is principally crucial for the organization to ensure flexibility in its compensation structure if it is to retain top talent. In today's world, employees increasingly desire employers that remunerate them reasonably. This explains why many organizations often struggle with employee turnover (Stredwick, 2014).

The first step in shifting to a flexible compensation structure would be to collect data on comparable organizations, with specific attention to their salary scale and benefit packages. Employees can as well be involved to give their feedback about the organization's current pay structure and what they would want changed. The gathered data would provide a basis for adjusting the organization's compensation structure. The new compensation structure should then be properly communicated to all employees throughout the organization.

A new, flexible compensation structure would generate significant benefits for both employees and the organization. It would boost motivation and job dissatisfaction, which may ultimately enhance individual productivity and reduce employee turnover (Mello, 2015). Monitoring.