ERNST & YOUNG HRM CHALLENGES
Instructions:-
Describe the context of the organisation you have selected, including the nature of the industry, the level of competitiveness within the industry, the key external stakeholders and the current trends in the industry;
Describe the organisation, including the nature of the work undertaken, the products and services created, the current strategy being pursued and the current level of organisational performance. Identify five key challenges facing the practice of SHRM in the organisation.
Grading Criteria and Feedback
The Major Assignment will help you to build your writing and critical thinking skills, and should reflect the principles of scholarly work. This requires a critical analysis of relevant concepts and the presentation of an argument. The presentation of a list of facts, which are not analysed or evaluated, will not normally attain a pass grade. You should support your contention with relevant academic literature on Strategic HRM. You must include references to a minimum of 5 academic, peer-reviewed journal articles in PART A Major Assignment PART A is approximately 1000 words (including references) and is worth 20 marks. All reference material must be appropriately cited in the text of your essay. Include a separate reference section that includes the full citation information. Follow the style guidelines for the Academy of Management Journal.
Note that Wikipedia and similar websites are NOT acceptable sources of academic information for the assignment. Your essay must be typed and have standard margins on all sides. Double spacing or 1.5 line spacing are preferred. It is essential that your essay is written in a neat, professional, and engaging manner. Check your writing for accuracy in spelling, grammar and punctuation. Convey your ideas in a clear, concise manner, and use appropriate transitions between ideas and sections.
Solution
ERNST & YOUNG HRM CHALLENGES
Ernst & Young (EY) is a renowned global firm that offers professional services to countries worldwide. The services it offers include assurance that comprises of financial auditing and fraud investigation; tax services including transfer pricing; and consultation and advisory services in Actuarial, Risk, and performance improvement areas. Its prowess in the industry ranks it among the four top accounting establishments globally. Its key stakeholders include the government, the suppliers and partners, the shareholders, its customers, management, and the employees (Ey.com, 2017). Consequently, the firm needs to ensure that it meets the individual requirements of these stakeholders. Some of the ways it does so are by making sure that it is compliant with all government policies and regulations, performing corporate social responsibility to the community, providing quality service to its customers, maintaining ethics, and ensuring that the employees work in a conducive environment. It also strives to ensure that it attains profitability to keep the shareholders happy.
EY has several strategies that drive insight to actions. They include: focusing on results, collaborative approach, speed to impact, analytics and insight, and people and culture (EY Strategy, 2014). The firm applies these five strategies when dealing with its clients to ensure that it meets the customer requirements, generates realistic approaches in a fast manner that protects the dignity of its clients and their culture. Additionally, EY focuses on maintaining confidence with its stakeholders by keeping customer information confidential, prioritising customer needs and ensuring that it meets those needs, and providing the correct information in the right manner and correct time. These strategies are the reasons why EY continues to grow and increase its market share.
Currently, EY has four trends expected to define its transactional market (Ey.com, 2017). Firstly, future-proofing its business models through digital conversion, switching traditional industry lines with modern ones, and shifting customer preferences. Secondly, cross-border deals to safe supply-chains in the period of geopolitical unpredictability. Thirdly, currency converts into attractive timings of deals. EY aims at taking advantage of depreciating currency to increase its assets. Lastly, EY aims at ensuring that its portfolios are fit and healthy. It will accelerate its acquisitions outside the core business to respond to the increasing competition and gain new customers thus extend what it offers its customers.
However, despite its success in the industry, EY faces some HRM challenges that affect its performance. Firstly, its top management teams lack international experience. EY’s market share ensures that the company interacts with many local cultures in its many locations (Ey.com, 2017). Some of its teams do not have proper knowledge of local practices and comprehension of international markets. Inadequate understanding of the geographical regions cripples growth and the acquisition of new markets. Secondly, the company is forced to recruit from rivals as it lacks a pipeline for experienced managers. EY’s speedy market growth does not equate the number of high-quality graduates. It is obliged to develop its talent which consumes time and investment. As a result, the company is forced to recruit employees from rival companies when in dire need of new hires. The process is expensive as the new hires expect increased salaries. Additionally, there exists a high employee turnover rate especially if rival firms offer better terms and contracts.
Thirdly, the company lacks the ability to keep and compensate top performers in diverse markets. EY faces a challenge to incentivise performance appropriately across different markets and cultures. Individuals practice diverse cultures and what galvanises one employee may appear as insensitive and rude to another. Since EY has offices in many countries and cultures, its HR function needs to adapt rewards to fit with the particular culture. Failure to do this makes it easier for the employees to leave for competitor firms. Lastly, managers and senior executives hold different sentiments on talent management. The top executives do not give priority to hiring locally for global markets unlike the managers who prefer hiring locals. As a result, it becomes hard to decide on appropriate incentive measures and better terms for such employees.
There are however ways to deal with these challenges to ensure EY’s success and growth. The firm should promote from within to reduce the high turnover rates. HRM should also review employee terms periodically and generate incentives based on the culture and location of the company. It should also invest in learning and development to avoid hiring from rival companies (Automatic Data Processing, Inc., 2014). Also, the firm should align individual goals with those of EY. There should adequate communication among the employees and managers, and the top executives and managers. Communication will ensure that concerns and grievances are aired and solved in a quick and professional manner. Additionally, the firm should attach short-term staffing plans with long-term labour force scheduling to prevent cases of understaffing and overworking of current staff.
In
conclusion, EY can solve its HRM challenges by investing in learning and
development, generating appropriate reward systems, ensuring efficient
communication channels throughout the establishment, and aligning individual
goals with those of EY.
References
Automatic Data Processing, Inc., 2014. HR Challenges and Solutions. Maintaining Compliance and Mitigating Future Risk. pp.2-5.
Ey.com. 2017. Growing pains: 4 human resource challenges for expanding businesses in rapid-growth markets. [online] Available at: http://www.ey.com/gl/en/issues/driving-growth/growing-pains—challenge-1 [Accessed 18 Mar. 2017].
Ey.com. 2017. How should business approach carbon neutrality? – How do we engage with our key stakeholders?. [online] Available at: http://www.ey.com/gl/en/services/specialty-services/climate-change-and-sustainability-services/how-should-business-approach-carbon-neutrality—how-do-we-engage-with-our-key-stakeholders [Accessed 18 Mar. 2017].
Ey.com. 2017. News – EY – Key trends likely to make 2017 another strong year for dealmaking. [online] Available at: http://www.ey.com/gl/en/newsroom/news-releases/news-ey-key-trends-likely-to-make-2017-another-strong-year-for-dealmaking [Accessed 18 Mar. 2017].
EY Strategy. 2014. 1st ed. Ernest &Young, p.6.