HR issues such as low employee morale
HR issues such as low employee morale

HR issues such as low employee morale

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  • Pages: 11 (3013 words)
  • Published: June 18, 2018
  • Type: Paper
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In today's workplace, organizations and HR managers encounter difficulties including low employee morale, absenteeism, and high turnover rate. The notion of job satisfaction has also transformed as organizations adjust to a competitive market. Job satisfaction is currently recognized as the paramount element in human resource management and is backed by both theoretical and empirical research. It evaluates an employee's outlook towards their work; however, these attitudes vary widely, making it challenging to pinpoint the primary causes. Consequently, research on this subject frequently produces contradictory results while only reaching consensus on specific matters.

This essay will analyze and establish connections between various human resource problems, such as low employee morale, absenteeism, and high turnover rates. The primary goal is to comprehend the underlying reasons for each issue. Moreover, it will explore the implications faced by organizations

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and employees in dealing with low employee morale and ongoing job dissatisfaction. Additionally, it will discuss the organizational approach to these problems and examine the solutions implemented by human resource managers. Numerous studies conducted in workplaces across Australia have addressed the causes of low employee morale, revealing a range of factors contributing to this problem. However, it seems that one significant factor affecting current worker morale is linked to the aftermath of the Global Economic Crisis on Australia's economy.

According to Dawn Tingwell, Career One's National Sales Manager, job satisfaction among Australian workers has declined compared to both last year and 2008. Recent surveys conducted by CareerOne back up this claim, revealing that 82% of employees in Australia are considering applying for new jobs due to dissatisfaction with their current workplace. Furthermore, 37% of these individuals are actively seeking out new roles.

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Another study from September of the previous year produced similar findings, with four out of every ten surveyed employees seriously contemplating leaving their current positions. It is important to note that this discontent is not limited to specific industries but rather affects a wide range of job types. The sectors most significantly impacted include administration, sales, education, logistics, and property.

[4] The studies show that the Global Financial Crisis (GFC) is the main cause of the problem. It affects not only individual industries but also the broader macroeconomic situation. A 2011 study by The Australian Workers Union found that 28% of employees believe their workload has increased due to reduced staff in the workplace. [5] Furthermore, 29% of workers expect ongoing hindrance to the Australian economy from the GFC and anticipate negative effects on their personal lives as a result. [6] Tingwell agrees with this claim, stating that organizations' intense focus on profit in the post-GFC environment negatively impacts worker satisfaction and loyalty. There is a strong connection between financial stress and an increase in job hunting activity, especially with rising interest rates and cost of living.

[7] According to Human Capital Magazine, maintaining personal relationships alongside increased work commitments is increasingly challenging for 88% of Australians with families or involved in personal relationships. [8] Among this group, 34% find it even more difficult and are unable to balance their personal lives and work commitments. They attribute this struggle to a lack of flexible working hours and a positive company culture from their employers. [9] Interestingly, the same study reveals that employees who work part-time or remotely from home are much happier compared to those who

work full time. This further supports the notion that workplace culture and family obligations greatly impact job satisfaction among Australian employees. [10] However, there are significant differences between older workers in the job sector and younger "Generation Y" workers.

The same survey by Human Capital Magazine found that older employees are increasingly unhappy with their salary and the lack of career development opportunities [11]. On the other hand, Generation Y workers have no issues in these areas but instead have become more dissatisfied with the nature of their job activities, indicating the significance of job function in overall workplace satisfaction [12]. A report from Bowling Green State University, prepared by Balzer et. al, titled 'User's manual for the job descriptive index (JDI; 1997 Revision) and the job in general (JIG) scales,' highlights that job satisfaction is closely related to the tasks involved in one's work [13]. Richard Halmer and Bruce Findlay, from the Australian Catholic University and Swinburne Institute of Technology respectively, also agree with this perspective in their report titled 'The effect of workplace relationships on employee job satisfaction for 25 to 35 year olds,' stating that satisfaction with work tasks is the primary predictor of overall job satisfaction.

According to their paper, the survey conducted by The Australian Workers Union shows similar results, suggesting that it has become increasingly challenging for younger workers in Australia to find job satisfaction due to changes in working conditions. The paper cites increased working hours and intensifying job demands as the underlying problem, pointing out the prevalent workplace rhetoric of "do more, for less, and faster."

The consequences of low employee morale can be categorized into two defining characteristics: increased

employee job dissatisfaction and higher rates of employee absenteeism. Low morale in the workplace needs to be addressed immediately, as stated by Nicole Fink in an article published by The Leading Edge. Failing to address morale issues can lead to decreased productivity, increased rates of absenteeism and associated costs, conflicts in the work environment, and higher employee turnover rates and costs of hiring and training replacement staff.

[16] According to Professor Rick Hackett from the DeGroote School of Business, a connection has been found between job dissatisfaction and absenteeism through meta-analyses on various studies. He explains that lower job satisfaction is likely to result in increased absenteeism. Hackett suggests that this relationship can be attributed to three possible explanations: dissatisfaction with the job leading to higher absence, high absence reducing job satisfaction, or a third factor such as burnout causing both lower job satisfaction and increased absence.

[17] According to a study conducted by De Boer et al. in 2002, titled 'Unfairness at work as a predictor of absenteeism,' it is proposed that this behavior forms the basis for the theory of 'withdrawal' models of absence, which sees absence from work as a voluntary withdrawal from unpleasant work conditions.

[18] Another thesis by Ybema et al. in 2010, titled 'Antecedents and consequences of employee absenteeism: A longitudinal perspective on the role of job satisfaction and burnout,' supports these assertions, suggesting that absenteeism often indicates high levels of workplace stress. The authors state that "Absence from work is a significant issue for both organizations and employees, disrupting work processes, reducing productivity, and increasing colleagues' workload."

"[19] Unfortunately, absenteeism not only impacts the individuals who are absent but also

has a negative effect on other employees. These employees often have to compensate for the reduced productivity caused by their absent colleagues. This further increases stress levels in the workplace and creates an unpleasant atmosphere, which contributes to more absenteeism. Consequently, companies and economies face significant financial difficulties due to the rising rate of absenteeism and its ripple effects. According to a 2007 study conducted by The Gallup Organisation, it was estimated that approximately 22 million American employees were 'actively disengaged,' resulting in a staggering loss of $350 billion per year in productivity. This includes losses from absenteeism, illness, and other problems arising from employee dissatisfaction at work."

According to the 2007 CCH Unscheduled Absence Survey, employees are facing increasing difficulty in actively preventing absenteeism in the workplace. The survey reveals that America's largest employers estimate a loss of $760,000 per year in direct payroll costs, with even greater losses when considering reduced productivity and the ongoing effects of low morale. Interestingly, Richard Steers and Susan Rhodes note in their thesis, 'Major influences on employee attendance: a process model,' that frequently absent workers share similar characteristics with older and younger workers surveyed by Human Capital Magazine. They explain that these workers may receive less interesting tasks, encounter conflicts with their supervisors or colleagues for not fulfilling their duties, face hindered career advancement, receive lower pay, and be treated with less respect compared to their non-absent counterparts. On a personal level, prolonged absences from work have substantial consequences.

In a study titled 'Prediction return to work in employees absent because of psychological problems' conducted in 2005, it was discovered that individuals who are absent for long periods often

receive diagnoses such as emotional exhaustion, burnout, overstrain, or depression. [23]

HR managers are now actively searching for solutions to address low employee morale. Numerous studies are being carried out to analyze the causes and effects of low employee morale, prompting companies to create innovative approaches towards these issues. Notably, companies are increasingly acknowledging the significant influence that company culture has on human resource matters at the workplace. Chris Blake, Regional General Manager of People & Organizational Development at National Australia Bank (NAB), highlights that organizational culture is presently the most crucial concern related to human resources in the working environment.

According to Blake, the National Australia Bank (NAB) has been focusing on the issue of organizational culture and its impact on performance for several years. He also emphasizes the importance of employee engagement in shaping this culture. In his view, two crucial aspects of engagement are employees understanding the organization's purpose and their own role within it.

Lion Nathan's People and Culture Director, Bob Barbour, shares this perspective and sees his company's employee value proposition as a key driver of positive organizational culture. He describes the initiative, which has been successful over four years, as centered around helping individuals achieve their full potential through personal growth and development.

The text highlights the significance of individuals desiring to make a difference in their work and feeling connected to the business. It asserts that this drives engagement and results in a positive experience. Barbour suggests that processes should be regularly evaluated, and building a positive culture should be an ongoing endeavor. Lion Nathan reviews their organizational culture every few years. Barbour also explains that the data collected provides valuable insights

and action plans for enhancing the achievement culture.
Moreover, according to a 2007 study by Human Resource Magazine, recognition and reward in the workplace were considered as the main focus for motivating employees by 29% of Australian companies. Additionally, career and leadership development are prioritized by 26% of companies, while learning and development are prioritized by 21%.

According to Craig Thomson, the Head of Human Resource Services (Australia) at Coca-Cola, most employees have certain desires: a good boss, effective leadership, feedback on their performance, and personal growth in their roles. Thomson attributes Coca-Cola's successful organizational development to their performance plan system. This system enables all employees to discuss their goals and work performance with their manager every trimester. Additionally, employees are offered one-on-one sessions to discuss career development and opportunities. These sessions also facilitate alignment between individual development plans and the organization's goals.

Thomson stresses the importance of employee retention and recruitment in cultivating a strong organizational culture. This becomes particularly crucial during economic downturns when the labor market is highly competitive. He also highlights the effectiveness of utilizing employees as a knowledge base.

The speaker emphasizes that their company has achieved success through an internal referral program, which allows employees to connect with a wider range of potential candidates in the market. This program has proven to be an effective strategy for the company. [31] Barbour expresses a similar viewpoint, stating that they were able to revitalize the company's attraction and retention strategy by utilizing research companies, advertising agencies, and surveying Lion Nathan employees. They consistently advertise in the market, focusing on showcasing their company as a hub for exceptional people and brands. [32] To conclude, both Australian

companies and those around the world face ongoing issues of low employee morale and job dissatisfaction.

The problem of organisational culture has had a significant and ongoing impact, resulting in various issues such as increased workloads, challenges in achieving work-life balance, concerns about salary, and limited career progression. These issues have serious consequences for organizations, including disengagement among employees and high rates of absenteeism which cost millions of dollars in lost productivity. Moreover, individuals have also faced physical exhaustion and depression due to these challenges. However, extensive research has allowed modern organisations to grasp the problem better and create effective strategies to address it.

Improving retention and advertising can help employers create a better working environment. Additionally, implementing value propositions, fostering career development and leadership can enhance employee engagement. These changes have led to significant improvements in the modern working environment and positive employee morale. However, job dissatisfaction and employee morale have always been ongoing concerns that require continuous planning and development. It is therefore crucial for employers to consistently adhere to these practices.

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Bibliography

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C. Irwin, J. L., Bachiochi, P. D., Robie, C.

, Sinar, E. F., & Parra, L. F (1997) Users’ manual for the Job Descriptive Index (JDI; 1997 Revision) and the Job in General (JIG) Scales. Bowling Green, OH: Bowling Green State University. Burke, K (2011) Restless generation lacks job satisfaction Sydney Morning Herald, Available: http://www.

mh.com.au/executive-style/management/restless-generation-lacks-job-satisfaction-20110912-1k64b.html Last accessed 4th January, 2012
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M. Bakker, A. B. Syroit, J.

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their article titled "Unfairness at work as a predictor of absenteeism" published in the Journal of Organizational Behavior, volume 23, pages 181–197.

Donaldson, C (2007) HR’s burning issues. Human Capital Magazine, Available: www. hcamag. com/resources/hr-strategy/hr8217s-burning-issues/113449/ Last accessed 5th January, 2012 Donaldson, C (2007) HR’s burning issues.

According to Human Capital Magazine, the article titled "The High Cost of Low Morale: How to Address Low Morale in the Workplace through Servant Leadership" by N. Fink is available on www.accumulate.com.au/DownFile.aspx?fileid=32. The article was last accessed on January 7th, 2012. (Source: The Leading Edge, available at http://www.)

The text below includes a HTML link and citation information. The HTML link takes you to the webpage "roberts. edu/Academics/AcademicDivisions/BusinessManagement/msl/Community/Journal/TheHighCostofLowMorale. htm" and was last accessed on January 5th, 2012. The citation provides the authors (Finnegan, RP, Frank, FD, Taylor, CR) and the title of their work ("The race for talent: retraining and engaging workers in the 21st century") published in the journal "Human resource planning : HR", volume 27, issue number not specified.

3, pp. 12-25 Hackett, R.D (1989) Work attitudes and employee absenteeism: A synthesis of the literature. Journal of Occupational Psychology, 62, 235–248. Harmer, R.

& Findlay, B (2005) The effect of workplace relationships on employee job satisfaction for 25 to 35 year olds. Paper presented at the 5th Annual Conference of the APS on the Psychology of Relationships Interest Group 2005.

Houtman, I. & Blatter, B (2005) Prediction return to work in employees absent because of psychological problems. The European Health Psychologist, 2, 8–12.

Kirsch, C (2007) Loyalty and disengagement--taming the retention monster. All Business, Available: http://www.llbusiness.com/labor-employment/human-resources-personnel-management/5509029-1.html Last accessed 4th January, 2012 Most Australian workers want to quit their jobs (2011) News.

com.au.

Available at: http://www.news.com.au/money/most-aussie-workers-want-to-quit-their-jobs/story-e6frfmci-1226022356541. Last accessed: 4th January, 2012. Nelson, D & Hammond, J (2011) The AWU-Auspoll Job Satisfaction Index 2011. Auspoll. Available at: www.

awu.net.au/tracking_poll_for_media_release.pdf Last accessed 7th January, 2012 Steers, R.

M. & Rhodes, S. R. (1978) developed a process model that analyzes the main factors impacting employee attendance. Their research was published in the Journal of Applied Psychology, volume 63, pages 391–407.

The article titled "Work-life balance causes relationship/job dissatisfaction" by Ybema, J. Peter, G. in 2007, discusses how work-life balance affects both relationships and job satisfaction. The article is available on Human Capital Magazine's website (http://www.hcamag.com/news/domestic/work-life-balance-causes-relationshipjob-dissatisfaction/113300/) and was last accessed on January 5th, 2012.

Smulders, W ; Paulien, M (2010) conducted a study on the antecedents and consequences of employee absenteeism. They took a longitudinal perspective focusing on the role of job satisfaction and burnout. According to their research published in the European Journal of Work and Organizational Psychology, 19:1, employee absenteeism is influenced by these factors [1]. Additionally, in 2011, it was reported that a majority of Australian workers expressed a desire to quit their jobs according to an article on News. om. au [1].

com.au/money/most-aussie-workers-want-to-quit-their-jobs/story-e6frfmci-1226022356541 [2]Ibid [3]Burke, K (2011) Restless generation lacks job satisfaction. Sydney Morning Herald, http://www.smh.com.

Most Australian workers want to quit their jobs (Op. cit.). Nelson, D. Hammond, J (2011) The AWU-Auspoll Job Satisfaction Index 2011. Auspoll, www.

awu. net. au/tracking_poll_for_media_release. pdf [6]Ibid [7]Op. cit.

Australian workers have expressed a desire to quit their jobs, citing work-life balance as a major cause of relationship and job dissatisfaction in a study by Human Capital Magazine. The study also references other sources, including Balzer et. al's Users' manual for the Job Descriptive Index (JDI; 1997 Revision)

and the Job in General (JIG) Scales, as well as Harmer and Findlay's research on the effect of workplace relationships on job satisfaction for 25 to 35 year olds.

Paper presented at the 5th Annual Conference of the APS on the Psychology of Relationships Interest Group 2005.

15] Ibid

[16] Fink, N. The High Cost of Low Morale: How to Address Low Morale in the Workplace through Servant Leadership. The Leading Edge, Roberts Wesleyan College.

[17] Hackett, R (1989) Work attitudes and employee absenteeism: A synthesis of the literature. Journal of Occupational Psychology

[18] De Boer at.

Citations from various sources have discussed the issue of unfairness at work as a predictor of absenteeism (al, 2012), the antecedents and consequences of employee absenteeism with a focus on job satisfaction and burnout (Ybema et. al, 2010), as well as the major influences on employee attendance (Steers & Rhodes, 1978). Additionally, the CCH 2007 Unscheduled Absence Survey conducted by CCH Incorporated also sheds light on this subject (CCH, 2007).

The text includes citations to different sources related to the topic of predicting employee return to work after psychological problems. The citations include the titles of the sources (Journal of Applied Psychology and The European Health Psychologist), author names (Houtman, I & Blatter, B and Donaldson, C), and the year of publication (2005 and 2007). The text also includes a reference to a website (www.hcamag.com/resources/hr-strategy/hr8217s-burning-issues/113449/) mentioned as "Ibid".

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