Strategic Human Resource Management

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Abstract

In this paper, a critical assessment of major HR issues Eyes Forward military charity, UK and its solutions to them in short and long terms are performed. By means of a comprehensive analysis of the organization's current performance and science based data on strategic management in HR field, the three pressing problems are revealed - absence of a strategic HR approach, an aging and non-motivated employees and low morale and less motivation among them. In order to tackle the issue in the short term, pay inequality has to be addressed as well as putting in place a bonus and reward system for all staff. In addition, communication and consultation need to experience an improvement. The strategic plan of HR in the long run VIs objectives and actions to be done in gap of 3-5 years which includes culture transformation through talent management, continuous learning, enhancing engagement, and people analytics. This plan is devised to position Eyes Front as the position with sustainable development through the process of developing its workforce into a strategic source of competitive advantage. The reviews will be done at regular intervals with the help of metrics that will show how we have been able to achieve the strategy goals.

1. Introduction 

Eyes Front is a charity established in 1985 by Paul George, a former British Army serviceman, with the aim of producing items to help the military and veteran communities. The charity operates as a non-profit business, providing good quality equipment at discounted prices. All profits are reinvested in the charity or donated to armed forces charities. Over the years, Eyes Front has grown steadily and expanded its operations and products, becoming a world leader in its field. However, there are now several strategic human resource issues facing the charity that need to be addressed as it moves into a new phase under its new CEO, Dave Jones. As an external HR consultant, I have been commissioned by Dave to identify and propose solutions to both the immediate and longer-term HR challenges at Eyes Front. This report presents my analysis of the critical issues based on a review of the charity's operations and my academic learning on strategic HR management over the past six weeks.

The case study details how HR has not historically been a major priority at Eyes Front. Under founder Paul George, the focus was on products, finances and marketing. The arrival of Dave Jones provides an opportunity for positive change as he recognises effective people management as crucial to Eyes Front's future success. In this report, I identify the top three HR issues currently facing the charity based on an evaluation of the information provided and discuss short and long-term recommendations for resolving these challenges. The suggestions are grounded in academic models of strategic HRM and lessons from industry best practices.

It is hoped that implementation of this proposed HR strategy will help Eyes Front stabilize its workforce issues in the short-run while establishing the foundations for sustainable people management practices necessary to support its goals over the next 3-5 years. If these recommendations are followed, the charity's greatest asset, its employees can be nurtured and motivated to drive future organizational success.

2. Key Problem 1: Lack of strategic approach to HR 

One of the major issues Eyes Front is currently facing is the lack of a strategic approach to human resource management. HR activities have historically been very informal and reactive under Paul George's leadership, with short-term operational priorities dominating over longer-term people planning. There has been no coherent HR strategy or structure to guide the effective management and development of the organization's workforce. This haphazard approach fits Haidar's (2020) definition of a 'traditional' HRM stance where people are viewed as a peripheral expense rather than a core strategic asset. With a strategic framework, HR issues are able to manifest in problematic ways, such as pay inequalities and poor communication, as evident at Eyes Front today. To better understand this problem, models of strategic HRM provide a helpful lens.

Asfahani (2021) explained 'Best Fit' framework emphasizes the need to align HRM strategy and practice with organizational goals and strategy to maximize performance outcomes. Eyes Front's neglect of HR strategy and lack of clear direction means its workforce policies and processes are not appropriately tailored to support its core mission as a nonprofit business. Compare this to best practices at charities that follow a comprehensive HRM strategy focused on culture, talent management and empowerment that has helped transform their operations and achieve social impact goals (Turner and Turner, 2020). Research also indicates the benefits of adopting an integrated 'Harvard Model' approach where HR contributes to strategy formation and implementation as a true business partner function (Gupta, 2020). Without strategic HR input, organizations risk suboptimal decisions due to a lack of personnel expertise, as was likely the case historically at Eyes Front. Leading firms like Unilever integrate HR early in strategic planning processes to ensure people aspects are cohesively addressed (Pucik et al., 2023). Adopting a strategic HRM mindset fits Dave Jones' aim to professionalize Eyes Front's management approach.

3. Key Problem 2: Disengaged and aging workforce

A second major issue at Eyes Front is the ageing profile and lack of engagement among its employees. According to the company profile, 75% of its 125 staff are middle-aged, with the average age likely over 45 given recruitment has historically come from ex-military. Research indicates this poses multiple challenges if not properly addressed. Ikyanyon and Agber, (2022) Job Characteristics Model identifies key dimensions like skill variety, task identity and significance that drive internal work motivation when well-designed. At Eyes Front, repetitive production roles and lack of development, according to the case study, suggest jobs may not be well-optimized to satisfy employees' psychological needs, contributing to low engagement. This fits Badura et al.'s (2022) contention that poorly structured work is a significant driver of disengagement.

Research also links engagement to company performance, with actively disengaged staff costing the US alone up to $550 billion annually in lost productivity (Kulik et al., 2016). Eyes Front risks similar opportunity costs if poor engagement persists among its ageing staff. Leading life sciences company GSK, for example, faced engagement issues previously but addressed them through strategic job enrichments, career pathing, coaching initiatives and improved wellbeing programs, boosting productivity, retention and firm value (Julia, 2023). According to a study by Kooij et al. (2020), people over the age of 50 are more frustrated than younger generations about skills that are not being used and lack of growth. Eyes Front employees are unhappy because they have few chances to learn, which means that their skills could go to waste. SAS Institute was the first company to aggressively retrain and teach experienced hires, making the most of their strengths while keeping their skills up to date (Phillips, 2023).

Finally, Eyes Front worries about succession planning because two-thirds of its employees are close to retirement. If new routes are set up, the important skills and information of staff who are getting older could be recovered. To fight this, companies like BAE Systems use detailed succession planning, rotating jobs, knowledge transfer programs, and alumni networks to keep the company's memory alive during changes (Baesystems, 2024).

4. Key Problem 3: Poor employee morale and motivation

The case study shows that Eyes Front employees' confidence has dropped to an unacceptably low level, making them feel unsafe and afraid that they could lose their jobs in the future. The pandemic and the state of the economy have made people more worried, but the case history shows that low confidence had roots before these events. It is important to deal with this problem because motivation theory connects it to performance outcomes. Herzberg's Two-Factor Theory (1959) says that success, praise, and responsibility are important motivators when present enough in a job (Tezel, 2023). But at Eyes Front, the main things that keep people motivated are not there: unequal pay, a lack of job opportunities, and bonus programmes that do not work as planned have probably made employees unhappy over time. This fits with Herzberg's claims that workers lose motivation and confidence when their motivators are not working.

In the same way, the Expectancy Theory suggests that people are motivated when they believe their hard work will pay off with good performance and the benefits they want (Kuhl, 2021). At Eyes Front, the fact that goals are not given much positive feedback suggests that workers may not think extra work is worth it because rewards have not worked in the past. This difference between effort and return lowers drive across the whole company. Researchers have also found links between mood and real-world measures (Mitchell 2021; Eccles and Wigfield, 2020). A study found that businesses with highly driven workers have 40% fewer sick days, 20% higher output, and 50% less staff loss, which improves morale (Mabindisa and Legoabe, 2021). Meanwhile, Chandola says that job stress caused by toxic cultures can have a direct effect on health. Costs need to be kept down, so boosting Eyes Front's mood could have a big return on investment.

Great companies constantly encourage employees to be motivated. Microsoft, for example, uses regular "pulse surveys" to find problems, compare themselves to others around the world, and move quickly on top priorities (Homkes, 2024). Since feedback is given honestly and progress is tracked, trust is built that attitude issues are being dealt with in a real way (Hussein, 2021). At the same time, the Co-operative Bank in the UK was one of the first companies to use transparency measures, like letting all employees attend executive meetings (Alam et al., 2023). This encourages participation, which is good for health.

5. Short-term recommendation 1: Address pay inequality issues

The big difference in pay between Eyes Front employees is one of the most important problems that needs to be fixed right away. The case study showed that some workers are paid up to £3,000 less a year than their coworkers even though they do the same work. Workers will lose motivation at this amount of difference, and they may think things are not fair, which can really hurt confidence. These pay problems need to be fixed right away. The first step would be to conduct a comprehensive pay equity review within the next three months. This should involve engaging an independent compensation consultancy to audit all job roles, pay grades and individual salaries across the organization (Salminen-Karlsson and Fogelberg Eriksson, 2022). Their analysis will provide objective data on the scope and scale of any unequal pay issues. This information is crucial for informing the design of corrective actions. The cost of this audit is estimated at £15,000.

While new pay structures are developed, Eyes Front should look to provide interim salary adjustments for lower-paid staff identified to be in materially unequal positions. Modest or temporary increases over the next three months, at an estimated cost of £60,000, can help boost morale in the short term as these important issues are dealt with. Over the subsequent six months, Eyes Front should work closely with the compensation consultants, line managers, HR and employee representatives to draft updated role profiles and pay grade structures. The goal is to have coherent salary bands for jobs of similar scope and responsibility, aligned with market pay rates. This revision process is estimated to cost £30,000.

Once new pay structures are in place, a six month salary harmonization process can commence to transition all staff across in a managed way. Some salaries may increase while others decrease in order to remedy past inequities. It is estimated that it will cost £100,000 to implement carefully and minimize disruption for staff. Finally, annual performance and pay review cycles must be introduced continuously (Atmaja et al., 2022). This will ensure current and future disparities can be identified and addressed promptly through streamlined, transparent processes. The annual cost of these reviews is estimated at £10,000. Implementing this 18 month, £215,000 programme directly tackles the unfairness issues through substantive yet sensitive measures. Impacts include improved staff retention, motivation and productivity over the longer term once distortions are resolved. Addressing underlying talent issues supports Dave’s vision for sustainable strategic HR.

6. Short term recommendation 2: Implement bonus and reward scheme

One of the issues identified in the case study regards the inconsistent application of Eyes Front's existing management bonus scheme, as well as recent years where performance targets were not met resulting in no bonus payouts. To motivate employees at all levels and link rewards with achievement, a revised company-wide bonus plan should be developed and implemented over the next 12 months. The first step will be to engage a reputable compensation consulting firm over a three month period to conduct an in-depth job evaluation exercise. Proper evaluation of all roles within the organization will be required to establish measurable and meaningful key performance indicators (KPIs) for each position (Setiawan and Purba, 2020). Based on best practice frameworks like the Hay Group Factor Evaluation System, the consultants can then link individual KPI metrics to graded potential bonus levels based on each job's assessed contribution. This initial evaluation phase is estimated to cost £20,000.

Once roles and linkages between KPIs and bonuses have been defined, the HR team should take three months to formally draft the bonus scheme documentation. Developing this in consultation with management, employees, and their representatives will be important for gaining acceptance and buy-in. The policy manual should outline clear eligibility qualifications, the process for setting annual department/individual goals, explicit calculations for bonus payouts, and qualifications for partial or full funding, and overall governance principles to ensure transparency in administration (Karpenko et al., 2020). An estimated £5,000 will cover administrative expenses. With the framework and guidelines in place, Eyes Front can then trial the bonus scheme over a six month pilot period within a select number of departments and business units to test operationalization. Rolling it out gradually across discrete sections of the business will allow the organization to refine KPIs as needed and gather staff feedback before organization-wide implementation. 

Based on industry-standard allocation rates, Eyes Front should plan to dedicate 15% of the average annual salary budget during this trial as incentive payouts if targets are met. This would be equal to about £80,000 for a sample group of 50 workers. Assuming the test phase goes well, the bonus plan can then be fully implemented across the whole company over the next three months. To set realistic goals, it will be important to be clear about who is eligible and what the goals are, and to do this ahead of time (Abdeldayem and Aldulaimi, 2020). To keep the 15% average pay funding model going at a larger organisation with 125 workers, bonus pools would need to be set aside about £160,000 a year from now on. Eyes Front should add a new way to motivate people every month: they should give out non-monetary gifts of £250 to £500 each to recognise years of service or to show off great individual efforts or performances throughout the year. In addition to cash bonuses, these spot gifts help boost mood in other ways as well. With a planned budget of £20,000 a year, two to four workers could expect to be recognised each month on average.

By setting up a well-thought-out bonus system, paying workers fairly based on their performance, and continuing to show respect throughout their careers, Eyes Front will be able to properly encourage higher levels of performance across the board over time (Ofosu-Yeboah, 2023). As employees become more engaged and stay longer, productivity should go up by an average of 2 to 3 percent. At the same time, making the connections between awards and business goals stronger should also make sure that they are closely related to strategy goals (Al Rashdi, 2020). As the plan takes off and grows, it should be possible to make incremental gains of up to £300,000 a year within one to two years. The most important thing is that Eyes Front's increased focus on a culture of praise will make employees happier and more engaged.

7. Short-term recommendation 3: Improve communication and consultation

One of the key issues identified at Eyes Front is the lack of effective two-way communication between senior management and staff. To address this, a multi-faceted program of enhancements should be implemented over the next 12 months aimed at strengthening dialogue across the organization.

7.1 Regular All-Staff Briefings

A primary initiative will be introducing monthly all-staff briefings led by the CEO and/or department heads. These sessions, beginning within the first 3 months at negligible cost, will serve as an interactive forum for sharing business updates, work highlights, and future plans directly with employees (Jewell et al., 2022). With the dispersed nature of Eyes Front's workforce, the meetings may be conducted both in-person at head office as well as virtually to enable participation. Briefings will allow an opportunity for staff to ask questions and provide feedback to leadership in a town hall format. Scheduling the briefings on a set recurring date each month will help promote transparency as a consistent organizational norm.

7.2 Internal Communications Platform

In parallel, an internal intranet platform should be developed and launched within 6 months at an estimated set-up cost of £15,000. People in charge and workers all over the company can use this digital resource as a central place to share information with each other. News feeds, discussion boards, polls, department directories, policy papers, and other things may be included as features (Santoso et al., 2022). Offering easy-to-use online tools for two-way communication will be very helpful for keeping in touch with employees in different places and involving a staff of different generations with varying levels of digital fluency.

7.3 Pulse Surveys and Feedback Loops

Eyes Front should do short, private polls of its employees every three months to get a better sense of new problems and ways to make things better. It is predicted that hiring someone else to handle the quarterly polls will cost £5,000 a year. Using digital tools, polls can quickly find out how people feel by asking simple questions about things like leadership, work problems, and involvement (Brown, 2022). By collecting anonymous feedback, it will be possible to set clear goals that will allow managers to respond quickly and plan actions. 

7.4 Formal Consultation Structures

Within six months, formal consultation groups should be set up that include both management and staff views. These ongoing forums, which would require very few extra resources, would cover functional areas like benefits, health and safety, training and development, and more, so that everyone could talk about policy changes or new projects in a way that is open and focused on finding answers (Bloom et al., 2022). Representative structures that encourage open conversation help make sure that all views have a direct impact on the decision-making process and bring the organisation together.

7.5 Change Communication Training

Within the first three months, each person's bosses and team leaders will also get specialised training in the best ways to communicate about change, which is expected to cost £10,000. Give leaders the right interpersonal skills and frameworks, they can better handle talks about changes, projects, or uncertainties in the workplace with compassion, clarity, and understanding (Garg, 2023). This focus on the "human side of change" is meant to keep productivity and morale as high as possible during times of strategic development.

Focused, multifaceted work over 12 months with an estimated £30,000 investment. These short-term actions are meant to improve the flow of insights at Eyes Front at all levels. The organisation can make better strategic decisions and keep encouraging great work by making psychological safety, openness, and two-way communication the standard. This will build trust and give people more power. Communication will become a core organisational competency and a competitive advantage in hiring and developing talent over time as best practices are reinforced.

8. Long-term HR strategy: 3-5 years

8.1 Strategic Aims

The overarching aim of this long-term HR strategy is to position Eyes Front for sustainable growth by transforming the workplace culture into one where the people thrive, diversity is championed, and peak performance is maximized through continuous learning and development.

8.2 Objectives

  • Achieve 85% employee engagement and 90% top talent retention by 2023 through monthly targeted development and recognition monitoring engagement surveys and retention rates.
  • Provide apprenticeship training for 50 candidates annually and hire 75% of graduates by 2025, tracked via learning management and recruitment monitoring progress.
  • Reduce underrepresented group voluntary turnover 12% annually from 2023-2025 through 3% yearly diverse hiring increases and 75% mentoring program participation monitoring HR analytics.
  • Ensure 80% course completion among employees taking 2 online skills courses yearly, with 90% passing certification tests tracked via the LMS.
  • Implement an objective management system defining OKRs for 80% of managers, tying 85% compensation to achievement monitored and expanding to cover 75% of strategic HR decisions by 2025.
  • Pilot people analytics model in 2023 generating attrition, potential and skills insights from structured HR data to inform decisions.

8.3 Addressing Key Problems

This strategy tackles Eyes Front's issues through the following actions: 

8.3.1 Talent Management (Years 1-3)

Revamp recruitment and onboarding to attract top diverse talent. This will include launching structured graduate/apprentice programs (Dziallas et al., 2021). Implement robust performance management and succession planning linked to learning and career pathing. Conduct climate surveys and focus groups to provide action feedback.

8.3.2 Continuous Learning (Years 2-5)

Invest in a digital LMS and expand training catalogues across departments (Matthews et al., 2022). Pilot reskilling programs in growth areas like tech. Provide education reimbursement/sabbaticals. Track individual competency development.

8.3.3 Culture & Engagement (Years 1-5)

Strengthen workplace wellness initiatives. Roll out diversity and inclusion council. Refresh core values and assess alignment. Launch recognition programs aligned with values (Gorman, 2021). Build results-only work environments through autonomy, coaching and feedback.

8.3.4 People Analytics (Years 3-5)

Consolidate HRIS and advance reporting. Integrate people metrics into business reviews. Conduct sophisticated analytics on retention, engagement and talent trends to inform strategic workforce planning (Wassell and Bouchard, 2020).

8.4 Performance Metrics & Reviews

Progress will be tracked through both leading and lagging metrics:

  • Employee Net Promoter Score (eNPS) - measured monthly through pulse surveys, a year-over-year increase of 5 points will indicate an improving workplace experience.
  • Voluntary turnover rates - measured quarterly, maintaining an annual rate below 10% for all employees and decreasing the rate for underrepresented groups by 2% yearly.
  • Training hours per employee - measured annually, achieving a target of 8 hours on average across all employees.
  • Diversity metrics - measured quarterly and annually, meeting or exceeding local/national benchmarks for gender diversity and underrepresented groups.
  • Productivity and quality metrics - measured monthly, a year-over-year increase of 3-5% through better employee retention and skills development.
  • Absenteeism and sick leave usage rates are measured monthly, keeping the rates within 5% of the industry benchmark.
  • Learning management system adoption rates - measured quarterly, attaining a target rate of over 80% course completion rate among employees.

Metrics will be reviewed biannually by the executive team and annually by the Board. The plan will be considered satisfactory if targets are met or exceeded for a majority of the defined metrics over two consecutive years (Dia, 2023). Regular communication will further strengthen engagement and motivation toward transforming the organization.

9. Conclusion

Eyes Front's people problems will be solved by this long-term HR strategy, which includes a multi-year plan for managing talent, learning all the time, improving the company culture, and making decisions based on data. The organisation can reach its full potential with inspired, high-performing staff if it puts workforce growth, inclusion, and freedom at the top of its list of priorities. Short-term suggestions focused on equal pay, good encouragement through awards, better communication, and getting workers involved set the stage for what needs to happen. Long-term thinking also helps Eyes Front's place by creating the best talent pools in the industry, giving people a chance to learn new skills throughout their lives, and genuinely caring about diversity and well-being as business imperatives.

Some important parts of the plan are in line with well-known best practices in HR. Eyes Front uses tried-and-true methods that have been shown to increase the return on investment (ROI) of human capital. These include strict performance management, succession planning, results-only work settings, competency tracking, and advanced people analytics. If the plan is carried out correctly and is backed up by clear measures and reviews, the company will become an employer that encourages extra effort and retention by creating an atmosphere where everyone can build fulfilling jobs that reach their full potential. This puts Eyes Front in a good situation to keep growing with the help of its most valuable asset: its employees.

10. References

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11. Appendices

11.1 Appendix: Table of Strategy Timelines and Estimated Costs

Initiative

Timeline

Estimated Costs

Short Term Recommendations (1 year)

  

1. Address pay inequality issues

18 months

£215,000

2. Implement bonus & reward scheme

6-12 months

£265,000

3. Improve communication & consultation

6-12 months

£30,000

Long Term HR Strategy (3-5 years)

  

1. Talent management programs

Years 1-3

£500,000-750,000

2. Continuous learning investments

Years 2-5

£750,000-1,000,000

3. Culture & engagement initiatives

Years 1-5

£250,000-500,000

4. Implement people analytics

Years 3-5

£150,000-250,000

Total Estimated 5-Year Budget

5 years

£2,160,000-3,010,000

11.2 Notes:

  • Costs are estimated projections only subject to market changes
  • Long term budgets assume annual inflation adjustments of 3-5%
  • Additional funding may be required for major reskilling programs
  • ROI projected at 120-180% through enhanced productivity, retention etc.

 

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