EMPLOYEE RETENTION ASSIGNMENT 1

Case Analysis: Employee Retention Assignment

Kaitlin Browning

Liberty University

BUSI 652 – Human Resources and Technology

Author Note

Kaitlin Browning

I have no known conflict of interest to disclose.

Correspondence concerning this article should be addressed to Kaitlin Browning.

Email: [email protected]

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Abstract

Organizations often face the dilemma of whether or not to fight to keep a star employee who has

received an attractive job offer from another company. While retaining top talent is essential for

achieving long-term goals, it is crucial to evaluate the situation from a strategic HR perspective.

Organizations must evaluate the potential costs and benefits of retaining an employee. The cost

of losing a great employee can be significant, as they may take with them valuable skills,

knowledge, and relationships with clients and other stakeholders. On the other hand, the cost of

fighting to keep that employee can also be significant, as it may create resentment among other

employees, who may feel that they too have been undervalued or underpaid. The following paper

will discuss how business strategy and HR strategy go hand-in-hand when retaining valued

employees.

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Introduction

In today’s highly competitive business environment, organizations are always looking for

ways to gain a competitive advantage over their rivals. One of the most effective ways to do this

is by developing a robust HR strategy that aligns with their overall business strategy. HR strategy

encompasses a wide range of areas, including recruitment, retention, training and development,

performance management, compensation, and benefits. One common challenge faced by

organizations is the issue of counteroffers. When an employee receives an offer of employment

from another organization, the current employer may make a counteroffer in an attempt to retain

them. Counteroffers can be a double-edged sword, as they can be a powerful tool for retaining

key talent, but they can also have negative consequences.

Strategic Planning and HR Direction

Aligning a company’s strategic direction with its human resource planning is crucial for

achieving long-term success. Human resource planning refers to the process of forecasting an

organization’s future manpower requirements and developing plans to meet those requirements.

On the other hand, strategic direction refers to the long-term vision and goals of the company.

Aligning human resource planning with strategic direction involves ensuring that the

organization has the right people with the right skills and abilities to achieve its objectives. The

first way to align human resource planning with strategic direction is to identify the strategic

direction. This involves understanding the company’s mission, vision, and goals. Once the

strategic direction has been identified, the human resource team can develop plans to ensure that

the organization has the right people with the right skills and abilities to achieve its objectives.

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The next step is to assess the current workforce. This involves analyzing the skills,

abilities, and experience of current employees to determine whether they are aligned with the

company’s strategic direction. The human resource team can conduct a skills inventory to

identify the skills and abilities of current employees. Once the current workforce has been

assessed, the next step is to identify skill gaps. Skill gaps are the differences between the skills

and abilities required to achieve the company’s strategic objectives and the skills and abilities of

current employees. The human resource team can identify skill gaps by comparing the skills and

abilities required for each job role with the skills and abilities of current employees.

After the skill gaps have been identified, the human resource team can develop a

recruitment plan to fill those gaps. The recruitment plan should be aligned with the company’s

strategic direction and should focus on recruiting employees with the skills and abilities required

to achieve the company’s objectives. “Building commitment is important because of two aspects,

the work efficiency of employees and the productivity of the organization” (Boniecka, 2022, p.

19). The human resource team should also develop a training and development plan to ensure

that current employees have the skills and abilities required to achieve the company’s objectives.

The training plan should focus on developing the skills required to achieve the company’s

objectives. The human resource team should regularly review the recruitment and training and

development plans to ensure that they remain aligned with the company’s strategic direction.

HR Strategy and Business Strategy

The relationship between HR strategy and business strategy is fundamental for any

organization. Business strategy is a long-term plan of action that outlines the objectives and

vision of an organization to achieve and maintain its competitiveness in the market while the HR

strategy is a set of policies, plans, and practices used to manage an organization’s human

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resources effectively. The success of an organization is highly dependent on how well its HR

strategy aligns with its business strategy. HR has to work closely with senior management to

ensure that their policies and practices support the organization’s strategic goals. For example, if

the business strategy involves expanding into new markets, HR would focus on recruiting

employees who have the necessary language skills, cultural awareness and business acumen

required to succeed in those markets. Similarly, if the business strategy involves improving the

quality of products or services, the HR strategy would focus on attracting and retaining

employees who have the skills and knowledge required to improve the quality of products and

services.

Counteroffers

In the provided case study, the supervisor of a team is faced with the decision of whether

to make counteroffers to two highly valued employees who have received offers from a

competitor company. One employee is an African American woman who is a top performer and

is viewed as a role model for diversity and inclusion initiatives in the company. The other

employee is a white male who has been with the company for a long time and is known for his

expertise in a critical area of the business. The case study presents a dilemma for the supervisor

and the company. On the one hand, losing either of these employees would be a significant blow

to the company. Both employees are highly valued, and their departure could result in a loss of

knowledge, expertise, and productivity. On the other hand, making counteroffers to either or both

of the employees could set a precedent and create a culture of counteroffers that could be

detrimental to the company in the long run. “To celebrate diversity, is to appreciate and value

individual differences” (Cascio, 2022, p. 133).

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In my opinion, the company should make a counteroffer to the African American woman

employee, but not to the white male employee. First, the African American woman employee is a

top performer and a role model for diversity and inclusion initiatives in the company. Losing her

would not only result in a loss of productivity and expertise, but it could also send a negative

message to other employees who may feel that their contributions are not valued. By making a

counteroffer to retain her, the company would be sending a message that it values diversity and

inclusion and is willing to invest in top talent. Second, the white male employee has been with

the company for a long time and is known for his expertise in a critical area of the business.

However, his departure would not have the same impact on diversity and inclusion initiatives in

the company as the departure of the African American woman employee. Additionally, making a

counteroffer to retain him could create a culture of counteroffers that could be detrimental to the

company in the long run. It could set a precedent that any employee who receives an outside

offer will receive a counteroffer, which could lead to inflated salaries and create resentment

among other employees who do not receive counteroffers.

Succession Planning

“Succession planning is all about picking the right people for the right jobs at the right

stage of their personal and professional development” (Ritchie, 2029, p. 33). It ensures that there

is a smooth transition of leadership when a key executive or manager leaves the company. One

of the possible concerns associated with succession planning is the lack of diversity in the

leadership pipeline. Organizations need to ensure that their succession plans are inclusive and

that there is diversity in the pool of potential leaders. This is particularly important in today’s

world, where diversity, equity, and inclusion are critical issues. Lack of diversity in the

leadership pipeline can have serious consequences, such as the perpetuation of biased decision-

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making and exclusion of perspectives that could lead to innovative solutions. Moreover, it can

damage the organization’s reputation and its ability to attract and retain top talent from diverse

backgrounds.

To avoid this concern, organizations need to adopt practices that promote diversity in the

leadership pipeline. “Diversity that is highly relevant in organizational set-up is “knowledge

diversity” based on educational/functional background” (Jaiswal, 2019, p. 158). One of the best

practices is to establish clear criteria for the selection of potential leaders. The criteria should be

based on skills, competencies, and performance, rather than gender, race, or ethnicity. This

ensures that everyone has an equal opportunity to be considered for a leadership position.

Organizations can also implement a mentorship and coaching program that pairs high-potential

employees with senior executives. This can provide employees with the opportunity to learn

from experienced leaders and gain exposure to different areas of the organization. Another best

practice is to create a diverse talent pool by sourcing candidates from a variety of internal and

external sources. This includes seeking candidates from different departments and functional

areas within the organization. It also includes recruiting candidates from diverse backgrounds,

such as those with different education levels, cultures, and experiences. This can help to increase

the diversity of thought and perspectives in the leadership pipeline. Moreover, it can ensure that

the organization has a pool of qualified candidates who are ready to take on leadership roles

when the need arises.

Possible Practices

One way for HR to align with organizational goals is by developing and implementing a

comprehensive diversity and inclusion strategy. “HR practices positively affect work engagement

and motivate the employees to devote extra effort in their performance” (Singh, 2022, p. 460).

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This strategy should focus on creating an inclusive workplace culture that supports diversity,

equity, and inclusion. The strategy should also involve identifying and addressing any potential

biases or barriers that may be preventing employees from fully contributing to the company’s

success. To develop a comprehensive diversity and inclusion strategy, HR should first conduct a

diversity audit of the company’s current practices and policies. This audit should include a

review of the company’s hiring, promotion, and retention practices, as well as an analysis of the

company’s workforce demographics. Based on the findings of the audit, HR can develop a

strategy that addresses any areas of concern and sets clear diversity and inclusion goals. The

diversity and inclusion strategy should also involve educating employees and managers on the

importance of diversity and inclusion. This education can include training on unconscious bias,

cultural competency, and inclusive communication. HR can also provide resources and support

for employees who may be experiencing bias or discrimination. Another important aspect of the

diversity and inclusion strategy is to create a pipeline for diverse talent. This can involve

partnering with diversity organizations or universities to recruit diverse candidates for open

positions. HR can also create development programs that provide training and mentoring for

employees from underrepresented groups.

Biblical Integration

Galatians 3:28 says, “There is neither Jew nor Greek, there is neither slave nor free, there

is no male and female, for you are all one in Christ Jesus”. This verse emphasizes that all

individuals are equal and should be treated with respect and dignity, regardless of their race,

gender, or social status. By valuing diversity and inclusion in the workplace, companies can

create a culture that reflects this principle and promotes a sense of unity and equality among

employees. This aligns with the principle of valuing diversity and inclusion in the workplace.

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Conclusion

HR strategy and business strategy are inherently linked and must be aligned for an

organization to succeed in achieving its goals. A successful business strategy requires a clear

understanding of the organization’s goals and objectives, as well as the resources available to

achieve those goals. One of the key takeaways from this case study is the importance of valuing

diversity and inclusion in the workplace. By making a counteroffer to retain the African

American woman, the company would be sending a message that it values diversity and is

willing to invest in top talent. This aligns with the Biblical principle of treating all individuals

with respect and dignity, regardless of their race, gender, or social status. Retaining and being

inclusive will help the company to link their HR and business strategies.

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References

Banerji, R., & Singh, A. (2022). Happiness at work, organization citizenship behaviour and

workplace diversity: A study on Indian private sector bank employees. Industrial and

Commercial Training, 54(3), 460-475.

https://www.emerald.com/insight/content/doi/10.1108/ICT-05-2021-0037/full/html

Boniecka, K., & Zarczynska-Dobiesz, A. (2022). Diversity at work place: Building the

commitment of four generations. European Research Studies, 25(2), 19-30.

https://www.proquest.com/docview/2664912577?accountid=12085

Casico, W. (2022). Managing Human Resources. (12th ed.). New York: McGraw Hill.

Dyaram, L., & Jaiswal, A. (2019). Towards well-being: Role of diversity and nature of work.

Employee Relations, 41(1), 158-175.

https://www.emerald.com/insight/content/doi/10.1108/ER-11-2017-0279/full/html

Holy Bible. English Standard Version. Bible Gateway. https://www.biblegateway.com/passage/?

search=Galatians+3%3A28&version=ESV

Ritchie, M. (2019). Succession planning for successful leadership: Why we need to talk about

succession planning! Management in Education, 34(1), 33-37.

https://journals.sagepub.com/doi/full/10.1177/0892020619881044?

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