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Managing the human resources - Case Study of Ardco
- 1. Managing the Human Resources Case Study of Ardco
- 2. Introduction Ardco is a UK-based supermarket operating in the UK and mainland Europe Ardco is supporting the development of its human resource management through professional networks like workforce planning and HR metrics group Ardco The purpose of the report is to provide critical analysis of the existing workforce planning and HR metrics in the organisation
- 3. Workforce Planning Workforce planning is an important part of the human resource management (HRM) and human resource development (HRD) in business organisations. CIPD, (2021) states workforce planning = People strategy + changing needs of the business It facilitates critical analysis of the existing employees and helps in forecasting the future staffing needs (Jackson, 2016). SHRM, (2021) defines that workforce planning can assist in identifying four issues: Composition and content of the workforce Evaluation of the specialised skills needed Developing recruitment and training plans Identification of the external sources for successful accomplishment of the skills plans
- 4. Stages of Workforce Planning Adapted from CIPD,(2021)
- 5. Benefits of workforce planning Reduce operational cost in recruitment and selection (Jackson, 2016) Responsiveness to customers (CIPD, 2021) People-focused development (CIPD, 2020) Trends analysis (Armstrong, 2012) Reducing employee turnover (Compton, 2009) Increasing performance and productivity (Armstrong, 2012) Increasing workforce quality (CIPD, 2021) Facilitating work life balance (Bratton & Gold, 2012) Support for talent management (CIPD, 2021) Motivation Commitment Engagement
- 6. Workforce Planning and HR Metrics Group HR metrics group for Ardco has been helping the organisation in cracking the required data for HRM and HRD such as staff efficiency, commitment and reducing turnover. HRM and HRD specialists are responsible for the functioning of metrics group The function of HR metrics group may differ for different organisations like Manufacturing organisations, service organisations or retail organisations like supermarkets. Supermarkets use HR metrics groups for compliance and control to automate the operational tasks HR metrics group can provide the data necessary for flexible working in effective change management in the supermarket organisation HR metrics groups need to focus on both the hard and soft data The collected data is further used for evaluation of the business options for the future strategy
- 7. Benefits of Employing HR Metrics Group Ardco’s HR metrics group experts were able to meet quarterly for HR related issues and formatted version of potential solutions These groups allow engagement, brainstorming and idea sharing The groups have also facilitated implementation of benchmarking surveys The groups also promote local collection of data and best practices to be implemented for improvement of supermarket performance The group assisted feedback provision for the following: HR Cost, HR management and HR development initiatives HR metric Groups are then left with the problem solving network to discover and solve the common people–related issues
- 8. Ardco’s Approach of Reducing Turnover HR metrics group data was effectively used for reducing turnover in the rates of bakery workers. Initiative: HR Metrics Survey of other supermarkets and agency pay-rates Analysis of raids across Coventry and identification of setting out more competitive. Outcomes: Reduced employee turnover by 18% Increased applications 4 weekly positions by 11% compared to the earlier period
- 9. Areas Ardco has Done Well Collaboration Centralisation of HR metrics data Periodic meeting Hiring HR experts for Metrics Group Support to HR metrics group from leadership
- 10. Areas that can be Improved Ardco has focused on rewards and compensation mainly based on HR metrics survey data, mainly on increasing pay rate. Rewards and compensations are important for keeping employees happy, engaged and healthy However, the focus should be placed upon total reward rather than only financial rewards. Total reward = financial + non-financial rewards Financial rewards = increasing salaries, promotions and offering monetary rewards Non-financial rewards = work life balance initiatives such as education opportunities, training and development, personal and professional support
- 11. Ways for Initiative Evaluation Ardco can evaluate the effectiveness of the initiative through measurement of the HR metrics on quarterly, semi-annual and annual basis Cost of training and development and other non-financial initiatives per employee Participation rate from the bakery workers in the decision-making and business operations
- 12. European Market Considerations Ardco should take into account the pay scales considered by the European supermarkets such as Sainsbury, Tesco, Asda, Walmart and Others Integrated workforce management solutions should be considered e.g.; in designing job (CIPD, 2020) The use of digital technologies must be considered for gathering comprehensive HR analytics for set of metrics (Kim & Choon, 2013; Vulpen, 2020)
- 13. Conclusion To sum up, the overall approach to workforce planning and HR metrics evaluation from the HR metrics group appeared as satisfactory for the Ardco. Ardco however can opt for other initiatives in collecting the HR metrics related data from internal and external sources 360 reviews Employee feedback Training and development of existing employees
- 14. References Armstrong, M., 2012. Armstrong's Handbook of Human Resource Management Practice. s.l.:Kogan Page Publishers. Billsberry, J., 2008. Experiencing Recruitment and Selection. s.l.:John Wiley & Sons. CIPD, 2020. Job design. [Online] Available at: https://www.cipd.co.uk/knowledge/strategy/organisational-development/job-design-factsheet [Accessed 25 September 2020]. CIPD, 2020. Workforce trends Explore workforce trends and their implications for HR. [Online] Available at: https://www.cipd.co.uk/knowledge/work/trends#11246 CIPD, 2021. Workforce planning is an important part of the human resource management (HRM) and human resource development (HRD) in business organisations.. CIPD, 22 November. Flaiti, S. A., 2018. Human Resource Contribution to Organizational Success, s.l.: Research Gate. Härtel, C. E. & Fujimoto, Y., 2014. Human Resource Management. s.l.:Pearson Australia. Jackson, W. S., 2016. HR with Purpose: future Models of HR. Oxfordshire: Henley Business School.
- 15. References (…Cont) Kim, H. & Choon, K. S., 2013. Strategic HR. Asia Pacific Journal of Management, Volume 30, p. 91– 113. Kotter, J. P., 2012. Leading Change. s.l.:Harvard Business Press. Mathis, R. L., Jackson, J. H., Valentine, S. R. & Meglich, P., 2016. Management. s.l.:Cengage Learning. Mirrazavi, S. K. & Beringer, H., 2007. A web-based workforce management system for Sainsburys Supermarkets Ltd. Annals of Operations Research , 155(1), pp. 437-457. Sen, S., 2020. Digital HR Strategy: Achieving Sustainable Transformation in the Digital Age. s.l.:Kogan Page Publishers. SHRM, 2021. Practicing the Discipline of Workforce Planning. [Online] Available at: https://www.shrm.org/resourcesandtools/tools-and- samples/toolkits/pages/practicingworkforceplanning.aspx [Accessed 06 December 2021]. Smith, T., 2013. HR Analytics: The What, Why and How. s.l.:Numerical Insights LLC. Vulpen, E. v., 2020. 14 HR Metrics Examples. Analytics in HR.com.
Editor's Notes
- These organisations like Ardco needs to understand the importance of devising workforce planning according to the 6 stages starting from understanding of the organisation’s environment and moving towards analysis of the current potentials, determination of future needs, identification of workforce gaps, actions required for addressing shortages and mismatches and lastly ending with monitoring and evaluation of the chosen actions. CIPD,(2021) as highlighted the importance of continuity in all these questions for success.
- Theoretical researchers have highlighted that workforce planning can help in reaping both the measurable and non-measurable aspects associated with human resource management and human resource development. the different benefits of the workforce planning can be attributed to the theories of employee motivation, commitment and engagement models. From providing support in people focused development, increasing performance and productivity, facilitating work life balance and talent management to reduce operational costs and employee turnover all are achieved when the organisation is capable of motivating employees towards the mutual goals, thereby facilitating their commitment through required initiatives such as training and development and talent management and continuing rewarding them to maintain their engagement.
- Härtel & Fujimoto, (2014) cited the importance of using HR metrics group for monitoring how the individuals in the business are struggling for the mutual goals. HR metrics are helpful for the supermarkets like Ardco having headquarters and subsidiaries. In this way the organization is successfully using the data from HR metrics not only about operational employees but also about the strategic leaders and keep capacity different subsidies. Retail organizations are directly connected with the customers and therefore it is necessary to appreciate information about the customers and employees relationship, current trends, customer complaints, future needs, an assessment of existing performance of the employees in responding to the customers that can ultimately help in driving recruitment and selection strategies and tenant management later in future periods (Smith, 2013).
- The choice of initiative is informed by the literature, researchers have highlighted the importance of conducting survey for enhancing diversity and flexibility among employees. Paid surveys are extremely important for increasing employee satisfaction and for setting out attractive recruitment and selection strategy. Surveys can help in collecting both the formal and informal data necessary for effective people management activities and to tailor the organisational strategies accordingly. Mathis, et al., (2016); Härtel & Fujimoto, (2014) have important effectiveness of conducting a pay for ensuring the job market value, and self-assessment for job evaluation and categorising the similar job values. Ardco has also effectively utilised the HR metrics survey for the development of pay curve for the bakery workers and has successfully achieved the objective.
- Billsberry, (2008); Armstrong, (2012) in their studies have highlighted the importance of total reward strategy for the sustainable workforce planning and improvement. They added that only relying upon the financial areas can only give short-term results. A sustainable competitive advantage, total reward strategy can help the company increase motivation and commitment from the weekly workers. The current initiative needs improvement because increasing the pay according to the pay survey conducted by HR metrics groups will only lead to short-term outcomes and bakery worker will further start feeling demotivated when there is a rise in pay in industry. This is not a long-term strategy for retaining the workers. However, focusing upon total reward can lead to long-term employees turnover.
- Ardco can evaluate the effectiveness of the initiative through measurement of the HR metrics on quarterly, semi-annual and annual basis. Cost of training and development and other non-financial initiatives per employee can be compared with the increase in pay for attracting workers Participation rate from the bakery workers in the decision-making and business operations can also be used for assessing how much time a worker is ready to dedicate to the organisation (Kotter, 2012).
- Evaluation of the other counterpart in the European market is also important for the company to identify whether the chosen initiative to retain the employees and reduce employee turnover in the bakery workers group is effective or not. For example, Sainsbury also uses integrated workforce management solutionas a part of their day-to-day operations.