CalleetaCO is one of the leaders of the radio frequency identification (RFID) industry, operating in three countries and growing rapidly. Its CEO, Jan Samson, is currently facing a range of problems connected with the company’s HR policy. After a meeting with the board members, she needs to develop a plan that would satisfy the demands of the stakeholders, slow employee expense growth, and increase the company’s earnings.
The key business issues facing Jan and CalleetaCO’s Vice President John Nosmas are connected with the stakeholders’ dissatisfaction caused by the slowing financial returns due to increased employee costs. The costs are growing at a rate significantly higher than the industry average, and the stakeholders demand that they are reduced. The dilemma that Jan and John need to solve is connected with the discrepancies between their and stakeholders’ visions of the company’s talent management system.
Currently, CalleetaCO implements a talent management strategy aimed at hiring the best specialists and providing them with expensive benefit programs. The company has a large HR department that caters for all employees’ needs and offers individual support. The system significantly contributes to the company’s success, ensuring employee loyalty and satisfaction and helping them to develop the innovative products that the market demands. These contributions support CalleetaCO’s strategic goals of becoming the global leader in RFID products, ensuring that the company hires and retains the most highly skilled individuals in the industry who fuel the innovation.
In order to meet the board’s demands, changes need to be made to the company’s HR strategy. The most radical way to satisfy the stakeholders would be to reform the whole system and significantly reduce HR costs. However, this approach would negatively affect the company and hinder the achievement of a sustainable competitive advantage. Therefore, a plan needs to be developed on how to satisfy the stakeholders and reduce the costs without compromising on talent management.
It can be recommended to conduct a thorough analysis of the cost-effectiveness of all elements of the company’s HR strategy. Currently, CalleetaCO provides a wide range of benefits to employees, and it is possible that some of them can be abolished without significantly decreasing employee satisfaction. Furthermore, the size of the HR department can be reduced to decrease the costs. Currently, each employee has a designated HR support representative, and although it provides a higher level of employee satisfaction, the elimination of this feature would help to significantly reduce expenses. If I were in John’s position, I would try to find the elements in the current system that can be reduced or transformed without hindering performance and decreasing employee satisfaction (Lawler. 2017). I would also think of how to present the changes to employees and convince the stakeholders that most elements of the system need to remain.
To explain the benefits of the current talent management system to stakeholders, I would use a balanced scorecard. It provides answers to four basic questions: how customers see the company, what the company must excel at, whether it can continue to improve, and how it looks to stakeholders (Wright, 2021). CalleetaCo aims to become the global market leader, and it needs to excel at developing innovative products. For this, it needs to employ the best specialists and ensure a high level of performance. From the financial perspective, it needs to adequately invest in talent management to satisfy both employees and stakeholders (Sridharan, 2020). Therefore, a compromise needs to be established that would balance the stakeholders’ and the company’s interests and help it to achieve sustainable competitive advantage.
Overall, the plan that would satisfy the stakeholders demands making changes to the company’s HR strategy. The current system is successful at ensuring employee loyalty and satisfaction but is connected with constantly growing employee costs. In order to find a compromise, it is recommended to conduct an analysis of the system’s cost-effectiveness and abolish the elements that are excessive. Furthermore, CalleetaCO’s CEO and Vice President need to explain the benefits of the current talent management system to stakeholders, highlighting its role in achieving the company’s strategic goals.
References
Lawler, E. E. (2017). Reinventing talent management: Principles and practices for the New World of Work. Berrett-Koehler Publishers.
Sridharan, M. (2020). BSC: What is a balanced scorecard?Think Insights. Web.
Wright, T. (2021). How to implement the balanced scorecard (strategy framework).Cascade. Web.