DAM February Forum
March 29, 2018
Peer Assist Technique
March 30, 2018

Effectual Human Resources Management Attraction, Retention and Employee Development Preamble


Effectual human resources management is the process of helping an organization enhance the collective contribution of its employees to the achievement of its mission, vision and objectives. It is very critical for the success and growth of the organization. The way employees are managed contribute or detract from their readiness and capacity to make significant contributions. Organizations have a need for a special mix of skills which are not readily available in the labor market. Hence, organizations are faced with the formidable task of retaining those employees, who have the right skills and talent, as well as attracting, recruiting, and retaining the additional numbers of employees they need. This has led to placing increasing importance and value on effectual human resources management.

Effectual human resources management will affect the organization ability to find the best people, keep them for the maximum possible time, keep their knowledge and skills up to date, manage their performance, recognize and reward their achievements.

Effectual human resources management is to be realized by creating a suitable and enabling environment for attracting, developing, and retaining human capital.


Attraction is the process of ensuring that an organization is able and capable of competing for human capital in the world market of labor. It is a function of the image and reputation of the organization, which is seen in terms of the availability of:

  • a clear statement of the organization mission, vision and objectives;

  • availability of strategies and business plans;

  • existence of comprehensive human resources management policies and procedures;

  • competitive salaries and benefits package;

  • opportunities for growth and development provided by the organization for its employees;

  • Organizational climate of trust and openness.

The first step in the attraction process is the identification of what human capital is needed by an organization and what it takes to attract it.  This involves the identification of:

  • the core competencies of the organization for which human capital is required;

  • change issues, new technology, increasing competition and other business issues that are critical to the success and survival of the organization, and to which human capital should be directed to avail the required skills and capabilities.

Attraction is critical for effectual human resources management because it provides the organization with a human capital pool to select from. The foundations of attraction are:

  • unique and stimulating human resources management policies, policies that promote and ensure the desire for achievement and cultivation of self-esteem, i.e., the desire to be respected and valued for one’s personal talent;

  • a highly competitive remuneration, not compensation, package. Remuneration is a reward and recognition system designed to attract qualified people, and provide incentives for greater efforts while compensation is only a salary and allowances paid for work performed or service rendered;

  • extensive marketing of the organization as the place to work for, i.e., promoting an image of an organization with a culture and practices which bring into play a wide variety of different forces affecting human motives;

  • recruitment and selection. Recruitment is the process of making available a roster of qualified people for organizational jobs. Selection is the process of choosing the most suitable candidates from the roster of qualified people through rigorous interviewing, assessment and testing. Candidates are evaluated on several dimensions, including the ability to adapt to the organization culture. A strategic approach to recruitment and selection is very critical for the organization as it enables it to hire highly qualified and capable employees.


Retention is the process of making employees stay with the organization for the maximum possible period. It is the most challenging part of the effectual human resources management process as organizations must be seriously concerned about losing their human capital. Qualified employees are highly employable and lucrative job opportunities are available for them around the world. Furthermore, qualified employees are no longer interested in long-term employment. Many of them anticipate working two to five years for an organization before moving to another one. It is against this trend that organizations must struggle to retain their human capital. This will require the organizations to provide employees with:

  • high level of job satisfaction through challenging and interesting work, training, tools and resources;

  • opportunities to increase knowledge and learn new skills;

  • opportunities for advancement through promotion, challenging assignments, training and development;

  • reward and recognition for achievement and better results.

Retention of human capital will also require the organization to:

  1. Develop a people management strategy to ensure that the human capital attracted to the organization are effective and efficient in contributing to the achievement of the organization mission and objectives, and that they are provided with:

  • the challenge they are seeking to fully utilize their knowledge and skills;

  • the information they need, i.e., effective communication channels that facilitate the seeking and giving of information;

  • appropriate pay and benefits, i.e., fair remuneration, which take into consideration one’s abilities, contribution and achievement;

  • opportunities for advancement and growth to satisfy their achievements and personal fulfillment needs, and provide for promotions and salary increases;

  • prestige and pride. Prestigious organizations make their employees feel pride in belonging to them and vice versa;

  • respect and recognition. Employees expect to be respected and treated as human beings and as valuable members of the organization. They also expect to be recognized and rewarded for their contribution and commitment;

  1. Create an attractive work environment and an organization culture that promote, support and reward openness and trust, initiative and innovation, loyalty, commitment, and team spirit.

What adds to the importance of retention is that it is an essential requirement for workforce stability, and workforce stability is a competitive edge because “when people stick around long enough to know your customers, suppliers and their fellow employees, things work much more smoothly. The longer they are with you, the better your results. While it may not always be measurable, these strengths affect your bottom line. Longevity usually results in dedication to high performance and understanding of how to bolster profits.”

The foundations of retention are:

  1. trust and confidence. The organization should continuously, through policies and practice, show that it has confidence in the integrity, ability and motives of its employees. Trust and confidence are essential for giving employees the freedom to operate with minimum control. The freedom to operate is a distinctive characteristic of highly qualified employees. They see it as an essential requirement for sharing information, learning and sharing knowledge, giving and accepting feedback;

  2. Participation is the involvement of employees, especially in issues affecting them, seeking their views and ideas and attempting to put them to use, giving serious consideration to matters which they raise and sharing with them as much information as possible. If not involved, employees will not be motivated to achieve and sustain high performance;

  3. high performance expectations. qualified employees need to be continuously challenged by higher goals and higher aspirations. They look for important and significant tasks that focus on the achievement of specific and measurable results;

  4. job satisfaction. Job satisfaction is one of the most important factors in retention. It is viewed as being so important because it affects commitment and loyalty to the IFSI organization. Committed and highly satisfied employees will strongly identify with the organization and its mission, will be more productive and will have a high desire to stay with the organization.



Employee Development

Employee development is the process through which an organization develops the knowledge, skills and attitudes of its employees to meet its present and future needs for human capital. The National Employer Survey concluded that “Increases in years of worker schooling contribute proportionally more to productivity than increases in either capital stock or work hours. Among all companies, a 10 percent increase in education is associated with an 8.6 percent gain in productivity. Increase capital stock by 10 percent, and you get only a 3.4 percent bump in productivity. In the non- manufacturing sector, the results are even more dramatic. Increase of 10 percent in education, work hours, and capital stock correspond to productivity gains of 11 percent, 6.3 percent, and 3.9 percent, respectively.”

The importance of employee development stems from the fact that human capital is not readily available in the labor market, and that organizations don’t provide opportunities for employees to expand their capacity for learning and growth.

The key elements of employee development are:

  1. assessment of potential. The evaluation of the knowledge, skills and attitudes possessed by employees to determine their ability to perform more complex work at a higher level, and the speed at which they can advance to those levels. The data for the assessment of potential is generated by appraising the performance of the employees, and by predicting their ability to perform in the future;

  2. performance management. Performance management is the process of improving and expanding employees’ capabilities to maximize their contribution to the achievement of the mission and objectives of the organization. It helps employees understand what work they should do, and plan how to do it, and it helps the organization assess how well the work was done, identify and reward achievers;

  3. Coaching is a relationship between an employee and a supervisor designed to develop job-related knowledge and skills and to bring out the best in the employee. Coaching inspires employees to do better and achieve more. It enhances their learning and contribution to the effectiveness of their organizations;

  4. The purpose of mentoring is to help new recruits settle professionally and adapt to the culture of the organization, obtain information about the organization, and to penetrate social and professional networks. Both the knowledge of the organization and membership of networks are critical elements in the development of new recruits. For the organization, a good mentoring program is a demonstration of its commitment to its people. Furthermore, a mentoring program contributes to raising employee morale and motivation, helps identify high potential managers, and fosters cultural change;

  5. Generally, the role of training is to provide opportunities for employees to increase their knowledge and acquire skills for use in their current and future jobs so that they can effectively and efficiently contribute to the achievement of their organization mission and objectives. The role of training is seen as expanding capacities and abilities of employees to handle a variety of tasks and assignments to a high standard of performance, and to help provide a sustained competitive advantage;

  6. self-development. Self-development is a systematic process through which an employee develops his own knowledge, skills and attitudes. It implies a desire to learn and allows the employee to choose what to learn and develop. It develops the employees’ ability and willingness to take responsibility for their own learning and development. An organization should, therefore, foster continuous learning and provide its employees with the appropriate resources, support and incentives.