Strategic human resource management at Octopus Technology Solutions

Human Resource Strategy

Organizations exist in a rapidly changing environment due to factors such as technological advancements, regulatory shifts, workforce adjustments as well as industry and market changes. To thrive in the long-term, organizations must perceive and adapt to these changes effectively. Human resource management (HRM) is one of the major areas affected by changes in the internal and external environments (Truss, Mankin & Kelliher, 2012). As businesses evolve and grow, there are often changes in workplace structures, systems, processes, demands and expectations. The HRM function must ensure that the organization has the right pool of human capital to fulfill the organization's mission, vision and objectives against the backdrop of a constantly evolving environment (Mello, 2015). Accordingly, the notion of strategic HRM has gained prominence in recent times. Strategic HRM essentially entails planning and managing human resources with consideration to the organization's long-term goals and objectives (Chartered Institute of Personnel Development [CIPD], 2015). This is crucial for matching human capital with the future needs of the organization.

Octopus Technology Solutions, a technology company based in Silicon Valley, California is facing a significant HRM challenge. The company has experienced considerable growth over the past year, with forecasts indicating that the growth will be even more exponential in the next three years. The phenomenal growth has, however, increased demands, expectations and workload. In addition, a significant proportion of the organization's workforce comprises baby boomers, most of whom are expected to retire in 2018. These two issues present a significant HRM challenge for the organization. Amidst increased workplace demands and an anticipated massive exit of the older generation of employees, the organization must put measures in place to avoid a vacuum in human capital. This paper explores and justifies strategies that can be used to ensure the organization is ready for the influx of new employees and the exit of baby boomers.

Organizational Background

Founded in 1991, Octopus provides technology services and support to small, medium and large companies in diverse sectors and industries, including manufacturing, agriculture, education, and financial services. The company is particularly involved in designing, developing and selling software products for various business processes including customer relationship management (CRM), supply chain management, database management, payments, as well as finance and accounting. In two and a half decades, the company has grown to a reputable position in the increasingly competitive technology solutions market. At present, the company serves clients all over the U.S., with locations in California, New York, Washington, Florida, Hawaii, Minnesota, Texas, and Colorado. Over the past year, the company recorded remarkable growth, with revenue and profitability jumping by 49% and 32%, respectively, compared to the previous year. In the next three years, the company revenues and profitability is poised to grow even more significantly.

Mission, Vision, and Goals

With a low cost, client-focused strategy and disciplined, diligent after-sale services, Octopus seeks to provide technology solutions that help customers meet their strategic goals and objectives. The company is committed to quality, service excellence, customer support and professionalism. The vision of the company is to be the top provider of customized business process technologies in the U.S. In addition, against the backdrop of increased growth and opportunities in the market, the company aims to increase its presence in the domestic market. The company particularly aspires to grow its customer base by establishing more locations in Maine, Ohio, Nebraska, North Dakota, and Kentucky. To continue fulfilling its mission and achieve its vision and goals, it is imperative for the company to have the right pool of talent.

Training

Greater attention to training and development will also be essential if the organization is to effectively overcome the expected exit of baby boomers in 2018. When this generation exits, the organization will need individuals with the necessary skills, knowledge, expertise and experience to replace them. The organization will require software developers, programmers, project managers, customer support staff, and supervisors that can handle more complex tasks and effectively fulfill its mission. Training and development essentially entails equipping new and/or existing employees with skills and knowledge necessary for performing their roles and responsibilities (Niazi, 2011). For an organization to maintain its competitive advantage in a constantly evolving environment, it must continuously enhance the skills and knowledge of its employees (Mello, 2015). This is particularly informed by the fact that task requirements and demands keep on evolving.

At Octopus, workplace demands and expectations have increased substantially in the recent past owing to the tremendous growth the organization has experienced. Technical employees - specifically software developers and programmers - are now involved in designing and developing more complex software products. The software development process has also become more sophisticated as software developers and other technical experts must interact more with clients throughout the entire cycle of requirements specification, system design, development, and implementation. This has meant longer work schedules, more workload, greater client support, and so forth. The complexity of tasks will further be compounded by the organization's growth in the next three years. Expansion to more geographical areas will mean more clients as well as greater need for collaboration, mobility and client support. Without adequate preparation of the existing workforce and the new employees, the organization may not effectively achieve its goals in the near future.

Training and development offers a valuable way through which the organization can prepare its existing and new workforce for the challenges ahead. The training and development must particularly be focused on the younger workforce. The first step would be to conduct a comprehensive identification of training and development needs via techniques such as performance assessments and employee surveys (Niazi, 2011). In addition to technical areas such as system development, important areas that the training and development in this case should focus on include communication, teamwork and collaboration, and client management. Needs identification facilitates matching of employees' present capabilities with the future needs of the organization (Stredwick, 2014). It also enables proper identification of the training methods to utilize as well as mobilization of the necessary resources. Seminars, conferences and workshops are some of the techniques that can be used to train and develop employees (Daly, 2012).

For Octopus, it is imperative to take advantage of the baby boomers before they exit the organization. Most of the employees in this category have worked for the organization for close to or more than a decade. They have, therefore, amassed a wealth of skills, knowledge and experience, which they can pass on to the younger workforce. The HRM function will particularly work closely with experienced supervisors, managers and project leaders in the organization to design, implement and monitor a two-year training and development program that employees with proven potential must attend. Over the two years, the trainees will periodically participate in workshops, seminars, conferences and team building activities aimed at honing their potential and preparing them for more challenging tasks. Though the program may involve substantial costs, it will place the organization in a better position to address its growth needs (Stredwick, 2014).

HR Departments

To effectively execute the recruitment and training and development initiatives, two teams within the HRM function will be created. One will focus on recruitment and the other one on training and development. Each team will be led by an assistant HR manager, both of whom will report to the overall HR manager. The recruitment team will specifically be involved in engaging internal members in the quest for referrals, scrutinizing the recruitment database to identify potential past applicants, and identifying the right media channels to announce the vacancies. The team will also be involved in the first round of screening applicants. The training and development team on the other hand will take part in identifying training and development needs as well as designing, implementing and supervising the training and development program.

Having two teams to handle the processes is particularly informed by the limitation of time at disposal. The baby boomers will be exiting in two years time. By this time, new employees should have been screened, hired and properly trained. The training and development program should also have been completed. In essence, there should be no vacuum created when the baby boomers retire. Whereas hurrying the process is important for getting the organization ready, discretion should be exercised to ensure candidates are meticulously screened and trained, and that the training and development program is rigorous and comprehensive enough.

Conclusion

With most baby boomers expected to exit the organization in 2018, Octopus must recruit more employees as well as train and develop the younger workforce. More fundamentally, the organization expects to register more remarkable growth in the next three years as it expands its geographical presence. Accordingly, the organization must have the right pool of talent if it is to successfully achieve its long-term goals and objectives. Greater attention must be paid to recruitment and training and development.