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    Capstone

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    Edwyn Omondi
    This document discusses human capital challenges in the apparel industry, specifically high employee turnover at Victoria's Secret. It identifies key causes of turnover like varying salaries, lack of employee involvement in decisions, and long work hours. The document proposes solutions like analyzing skill use, improving human capital management to address generational gaps, treating employees fairly, using better hiring practices, and increasing employee participation in decision making. High turnover negatively impacts industry productivity and performance.

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    Capstone

    Uploaded by

    Edwyn Omondi
    113 views5 pages
    This document discusses human capital challenges in the apparel industry, specifically high employee turnover at Victoria's Secret. It identifies key causes of turnover like varying salaries, lack of employee involvement in decisions, and long work hours. The document proposes solutions like analyzing skill use, improving human capital management to address generational gaps, treating employees fairly, using better hiring practices, and increasing employee participation in decision making. High turnover negatively impacts industry productivity and performance.

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    This document discusses human capital challenges in the apparel industry, specifically high employee turnover at Victoria's Secret. It identifies key causes of turnover like varying salaries, lack of employee involvement in decisions, and long work hours. The document proposes solutions like analyzing skill use, improving human capital management to address generational gaps, treating employees fairly, using better hiring practices, and increasing employee participation in decision making. High turnover negatively impacts industry productivity and performance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    113 views5 pages

    Capstone

    Uploaded by

    Edwyn Omondi
    This document discusses human capital challenges in the apparel industry, specifically high employee turnover at Victoria's Secret. It identifies key causes of turnover like varying salaries, lack of employee involvement in decisions, and long work hours. The document proposes solutions like analyzing skill use, improving human capital management to address generational gaps, treating employees fairly, using better hiring practices, and increasing employee participation in decision making. High turnover negatively impacts industry productivity and performance.

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    © All Rights Reserved
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    of 5

    Running head: HUMAN CAPITAL POLICY CHANGE 1

    Human Capital Policy Change


    Students Name
    Institution
    HUMAN CAPITAL POLICY CHANGE 2

    Human Capital Policy Change

    Executive Summary

    The specific occupation/job/work that I examined in my presentation in the


    competitiveness and success of the focal industry is working as a merchandiser. The role of
    wholesale merchandiser in the focal industry is to manage critical part through to final delivery
    process after placing the order with the factory from the moment sale is made. According to my
    presentation, the number of jobs created from 2015 to 2019 has increased from 1,398,810 to
    1,414,320 (Joint Economic Committee Democrats, 2019). This is insignificant information since
    sectors such as apparel manufacturing have experienced a decline in a number of jobs between
    these periods. The decline in the number of jobs created indicates higher rates of turnover in the
    apparel industry. The varying rate of salary in the apparel industry is the main factor causing a
    high employee turnover rate. Another cause of increased turnover rates among employees is the
    lack of worker’s involvement in the decision-making process. However, the HRM of some
    apparel industry such as Victoria secretes claims that employees are not allowed to participate in
    the decision-making process because some of the processes require fast response. Another main
    factor that caused increased employee turnover is working for long hours.

    Human capital challenge or issue identified within my specific organization (Victoria’s


    Secret) is high turnover (see table 1). High turnover impacts the success and sustainability of the
    overall industry in various ways. First, high turnover lowers the level of productivity of the
    overall industry hence, affecting the overall performance. Moreover, the high turnover affects the
    companies operating in the apparel industry as well. Also, high turnover affects the overall
    industry by barring it from attaining its objectives. There is a high nature of competition and the
    workforce in the industry. Some of the key competitors in the industry include Victoria’s Secret,
    PVH Brands, Gap Inc., and True & Co. there are few barriers to enter the industry making a
    higher rate of competition among these firms. Thus, the secret to competing in this stiff industry
    is by lowering the product prices. The main causes of high turnover rates among the employees
    are varying salaries, lack of employee involvement in decision making and working for long
    hours. Varying salaries among employees can occur due to lack of progression and growth.
    Opportunities for development and growth are essential in ensuring employee retention. For
    instance, varying salaries may make an employee feel that they are trapped in dead-end positions
    where they cannot grow. This gives them the opportunity of looking for different firms where
    they can improve their income and status. Working for long hours may involve asking your
    employees to do extra tasks (Zhang, 2016). Asking employees to work for longer hours or even
    the weekend may lead to high employee turnover rates because employees will feel tired and
    frustrated. Restricting employees from participating in the decision-making process shows a lack
    of recognition and feedback. If employees are not recognized by being allowed to participate in
    the decision making process, they may be pushed away. Instead of ignoring employees, it is
    essential to give them feedback on their performance. This will enhance their focus on workloads
    and improve company productivity.

    Table 1: Number of Employees Leaving Employment


    HUMAN CAPITAL POLICY CHANGE 3

    Company Period

    2016 2017 2018

    Victoria's Secret 251 322 363

    PVH Brand 142 149 162

    Gap Inc. 54 59 67

    Source: Interviews

    The identified human capital issue or challenge identified within Victoria’s Secret also
    impacts the wellbeing of the individual in merchandising jobs in various ways. It increases the
    level of job dissatisfaction among employees. Job dissatisfaction measures the extent to which
    employees feel demotivated to continue working as a merchandiser in the apparel industry
    (Thakur, 2014). Increasing job dissatisfaction can increase the high rate of employee turnover.
    This makes employees remain demotivated and unhappy at work (Zhang, 2016). As a result,
    there will be reduced productivity. Additionally, high turnover rates will make the remaining
    employees feel demotivated since they are overworked. Enhancing the level of job satisfaction
    among employees is the solution required to minimize higher turnover rates. Besides, job
    satisfaction measures the level of employee motivation and performance within a company. Job
    satisfaction also determines the employee’s feeling towards a certain task. Thus, the organization
    can only achieve improved productivity by ensuring that there is a high level of job satisfaction
    among employees. Job satisfaction also enhances the interpersonal relationship between
    management and employees Al-Mamun and Hassan, 2017). Whenever employees have serious
    issues or concerns, they are able to approach their managers and discuss the issue freely. This
    shows a good working relationship which is vital in enhancing sustainable performance. Job
    satisfaction will also help employees to be given a chance of participating in the organizational
    decision-making process.

    There are various designs or amendments to human capital management/development


    policy that I proposed as a solution to the high turnover rate among employees. Analysis of how
    skills are being used is one practice that needs to be amended by the company management
    (Dewhurst & Hancock, 2013). This will allow the company HRM to determine whether there is a
    need for restructuring or training. Training can help in reducing the time taken by employees to
    complete the work through enhancing their skills, while restructuring helps in enhancing
    equitable distribution of work among employees. Secondly, there is a need for HRM to improve
    the current human capital management to bridge the generational gap (Hoffman, 2010). This will
    also ensure that workers are remunerated properly. HRM management should also treat all
    employees in an equal and fair manner to increase their level of job satisfaction. The company
    HRM should consider god employee selection method to solve cases of high turnover rates
    among employees. Finding a perfect employee is not an easy task, however, picking well-
    matched employee is important for both the employee and the company success (Dewhurst &
    Hancock, 2013). It is important to select the best employee because the majority of workers does
    their best when they are happy. Employees should be given adequate opportunity to participate
    HUMAN CAPITAL POLICY CHANGE 4

    in the decision-making process. The HRM should be able to show the employee that they can do
    their best even in the management’s absence. This will provide the employees with the
    opportunity of becoming more creative and innovative. When employees are not given this
    opportunity, they will feel frustrated with the lack of freedom. As a result, this will cause high
    turnover rates. Trusting employees and allowing them to participate during a major meeting will
    enable them to get motivated and perform well. Finally, the company should ensure effective
    leadership to ensure that all employees are involved in the decision-making process and their
    needs are respected.
    HUMAN CAPITAL POLICY CHANGE 5

    References

    Al-Mamun & Hassan (2017). Factors affecting employee turnover and sound retention strategies

    in business organization: a conceptual view. Problems and Perspectives in Management,


    15(1), 63-71.

    Dewhurst, M.& Hancock, B.(2013). Redesigning Knowledge Work. Harvard Business Review,

    59-64.

    Hoffman, E.B. (2010). Working effectively across thegenerations. Perspectives on Work, 13(2),

    29-32.

    Joint Economic Committee Democrats. (2019). The economic impact of the fashion industry.

    Retrieved on 19thNovember, 2019 from


    https://www.jec.senate.gov/public/index.cfm/democrats/2019/2/the-economic-impact-of-
    the-fashion-industry

    Thakur, P. (2014). A research paper on the effect of employee engagement on job satisfaction in

    IT sector. Journal of Business Management and Social Sciences Research, 3(5), 31-39.

    Zhang, Y.J. (2016). A review of employee turnover influence factor and countermeasure.

    Journal of Human Resource and Sustainability Studies, 4(2),85-91.

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