7001EHR/EHR701: Principles of HRM and ER Assessment

Scenario

You are the HR Manager of a large bank. You have some concerns that you are not preparedfor a large number of people that are between the ages of 55 and 65 and will be retiring in thenextdecade.YourCEOsaysthatyouneedtogetaheadofthisproblemandasksyoutopreparea policydocumentthatoutlinesthreepossible approachestoresolvingthis problem.

PARTAPOLICY OPTIONS

PolicyOption1Identifyhighperforming olderemployeesto retainorrolechangetopreventknowledgelossand useexternalrecruitmenttoreplacebusinesscriticalroles.

Advantages:

• Thereareanumberofolderemployeeswhodonotwanttoretireat65(Stoneetal2021).
• Allowsforolderemployeesinjobsharingroles,part-timeroles,orotherflexibleworkingarrangements toretain
• Useolderexperienced employeestotakeonmentoring,coaching,andtrainingrolestobuildknowledge withlessexperiencedemployees(Seymour2008)
• Recruitmentcanbeusedto bringinspecialisedskillsandnewideas(Hills2009)

Disadvantages:

• Youngeremployeesmay seelittleroomforpromotion,losepatienceand
• Thereisariskthatemployeeswillbetrainedandmentoredinawaythatdoesnotalignwiththebanks strategic
• Knowledge may not be completely shared to protect the individuals position in the
• Externalrecruitmentcanbeexpensiveandsendsanegativemessagetoemployeesthatthebankisnotcommittedtotrainingandcareerdevelopment(FarndaleandNikandrouandPanayotopoulou2018).

Policy Option 2 Identify younger potential top performers and build specific learningand development, performance management programs, so they can take roles as theybecome available.

Advantages:

• Employees alreadyhave some of the requisite knowledge,skills,abilities,and othercharacteristics(KSAOs)toperformthe
• Can assess gaps in knowledge and tailor specific training and development and embedthisintheirperformancemanagement
• Usejobrotationthroughoutvariousdepartmentstoimproveknowledgeandworkingrelationshipswithsenior
• Canbeusedtoaddressdiversityissuesatmanagementlevel(GreerandVirick2008).

Disadvantages:

• Managersmaybereluctanttonominatetopperformersforfearofdisruptiontotheir
• Candidatesarenominatedbecauseofpersonalrelationshipsratherthancompetency(Huang2001).
• Nominating an unsuitable candidate may set that employee up to fail and adverselyaffecttheir
• Requires high commitment from all levels of staff to ensure that the training anddevelopmentplansfitandworkwiththe performance management

Policy Option 3 Identify future service needs, key positions and competencies at risk,developlearninganddevelopmentprogramstofillgapsanddevelopexistingperformance managementplansintotalentdevelopmentplans.

Advantages:

• Learning and development is open to all employees, and previous hidden talent can bediscoveredanddevelopedtofilldeparting
• Experienced employees can provide some training and coaching to ensure operationalknowledge is not
• Learning and development can keep employees engaged in their career and improveperformance (GrumanandSaks 2011).
• Aperformancemanagementplanthatfocusesonhowtodeveloptalentandfocuseslesson assessing talent can bring positive benefits to employees and the Bank (Stone andCoxandGavin2021).

Disadvantages:

• Managers may lack the skills and training to implement the policies (Townsend andWilkinsonandBamberandAllan2012).
• Employees may not want to participate in training outside of their current role withoutfinancial
• Thetimeandmoneyspentupskillingstaffdoesnotguaranteethathighperformingstaffwillnottakeexternal
• Requiresaculturalshift(withpotentialresistance)intheorganisationandcommitmentfromCEOdowntoentrylevelemployeesofparticipatinginanewstyleofperformance