The most important strategic choice for a company concerning staffing be framing its compensation plan. The biggest positive point of this strategy is that employees will be focused as there is set target and duration to achieve. The employee rating would bring salary hike as well as promotion on the basis of ratings. The promotion or getting different roles would help the employee, explore various domains so to realise his/her real expertise. This would in turn lead to increase in the efficiency of the company. The drawback of this strategy is that each individual is different and there cannot be individual measures to calculate performance or boost morale of each individual. But it is the responsibility of an HR personnel to frame the compensation plan on the lines of performance appraisal, which would be similar for various groups.
Additional strategic alternative could be hiring aggressively, the preferred expertise from the market to strengthen the efficiency of the company on the basis of performance. The inflow of fresh talent would be the biggest advantage of this strategy. But regular hiring undergoes various costs and recruitment which is not always a fruitful one. Company has to consider the layoffs which cannot be neglected and in turn is a very challenging decision to make. Managers are required to give rankings on the footings of performance and the lowest rankers could be eliminated first.
The company can undergo managing its expenses by removing those overheads which are not necessary. This would help adding value to the finances of the company. But cutting down varied aspects might not be fruitful for the company from another perspective as few dimensions are simply meant for getting the attention, just like any marketing activity. Training and development could be considered as an additional strategic decision which can help organizations to retain and train the talent and make the employees learn the new versions of technology or a new technology altogether. This will surely boost their morale and add weightage to their skill sets. The company will not have to spend on hiring rather invest on the inhouse manpower to learn the new skill and perform. There would be a learning ambiance within the company which would be profitable for employees along with the company. If the employees are not motivated enough to take the training seriously, then the resources (capital, energy & time) would go waste. For that, a prior research is mandatory to understand effectiveness of the training in a particular domain. This would include a closer look into the area’s employees require training. For the training to be successful and effective the employees should be explained before starting, the significance and outcome of it in detail hence, there is complete flow of knowledge to understand the relevance of it.
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