Introduction
The rate of employee retention differs from one industry to another, and while some firms experience internal challenges others, experience external issues that contribute to increased rates of turnover among their key employees. The above study, therefore, seeks to outline some of the areas that can be reviewed to resolve the issue regarding the necessary policies and practices to be employed. High turnovers among employees result in increased costs to an organization, and if the rate is not resolved, it may stagnate the workforce. It is for this reason companies need to embrace practical strategies to help enhance the level of employee retention.
However, Block (2016) is concerned that high rate of retention among employees can also contribute to more challenges in the management of an organization. The concept makes an organization to rely over on an individual, making it difficult for the corporate to operate without such people. Besides, the issue contributes to cases of employee stagnation and de-motivation, an aspect that significantly reduces the production rate of a workforce. Therefore, it is paramount for an organization to retain employees within a required level by eliminating the unproductive individuals and retaining the important ones. Embracing such practices will result in increased profit for an organization; hence, support the development of the industry.
Aerospace workforce is aging, and only a few individuals are willing to venture into the industry as far as career development is concerned. Therefore, regeneration of the profession is facing a challenge that needs urgent intervention. Different forums have, therefore, been held before to address the issue with an objective to develop the aerospace workforce of the future generation. Some of the issues of concern include the fact that there are few engineering graduates, and that there is insufficient diversity in the industry to counter the challenges of past industry hire and layoff practices. The strategies used in achieving the set goals include attraction and retention strategies of senior and junior employees in the industry.
Main body
In 2009, a forum was held that brought aerospace leaders from different parts of the world with a theme on how to enhance the development of the aerospace workforce (Roos, 2015). Some of the aspects discussed in such forums included the industry progress, academic requirements and the perspective of the different governments in developing the sector. However, it is worth acknowledging that different recommendations were drawn from such meeting on the strategies to embrace the development of workforce diversity in the industry.
Preparation and motivation – concerned stakeholders ought to put in place pre-career development activities that need to be supported. The purpose of the above goal is to ensure that there are adequate skilled individuals with a fresh talent who can successfully take charge of the aerospace industry in future.
Professional development – the study seeks to appreciate the fact that there is a need to address the concerns of people in the workforce as efficient strategies for retaining their skills while at the same time enhancing their competency level with advancement in innovation.
Different stakeholders are concerned in establishing the set objective as aerospace industry has a significant influence on the development of the general economy. The study aims to foster a passion of aerospace within the workforce and appreciate the need for growing and sustaining such workforce. To accomplish the above objectives, the study will assess the need for the work environment and how mentoring can help towards increased retention of employees in the industry. The purpose of the above paper is to appreciate the fears of a possible shortage of workforce in the aerospace industry, the need for the development of strategies on how to retain and foster a passion for aerospace among individuals among other significant objectives.
Causes and implication of cyclicality
Scholars such as Bennett (2015) are concerned that aerospace industry is subject to short and long-term cycles as far as human resource capital is concerned. For instance, during 1995-2000, the industry experienced an overall increase in employment of about 35%, and between 2000-2004, almost 66% of the employment gain was lost (Strategies for Attracting and Retaining, 2012). Three years down the line, further losses of employees were experienced from the industry, an aspect that has attracted concerns from different stakeholders. It is worth acknowledging that such employment swings are a real challenge in the industry as it makes it difficult for the organizations to retain a strong human capital base. Besides, such issues limit the capacity of the industry to respond to the arising opportunities of growth in the industry.
Causes of cyclicality
Different aspects are linked with causing cyclicality with the primary cause of the incident being fluctuation in human resource requirement in scheduling manufacturing activities. The issue is known to influence hourly-paid employees among other valuable employees in the particular organizations. A wide range of individuals is affected by such lateness in the scheduling of manufacturing activities, and the issue is said to have increased in the recent past. In the long-term, the issue is caused by fluctuation in capital spending in both civil and military aviation markets in the different countries. Besides, there is a misunderstanding concerning government and organizations willingness to invest in research and development to enhance development in the sector (Jusko, 2013). Finally, various governments are reluctant to support fully the growth of the industry, an issue that has contributed to the fluctuation in the employment rate in the sector.
Impact of Cyclicality
It is imperative to understand that success of the aerospace industry is based on over-reliance on high levels of industry and firm-specific human capital. The above type of human capital is acquired through formal training and education. However, industry and firm-specific human capital can only be achieved through training in the aerospace industries. The cyclical downturns result in significant losses to the industry, a feature that limits the firms' capacity to grow. The losses arise because the companies fail to find people with relevant industry experience to perform the set objectives of in the most effective and efficient ways possible. Furthermore, the challenge of meeting the requirement of retaining or replenishing the labor workforce in the industry results to the development of serious issues in the business setting. The first problem is that it is difficult for the firms to respond effectively to growth opportunities available in the business environment. Moreover, it makes it difficult for the stakeholders in the aerospace industry to benefit from the different advantages of research and development (Nearing et al., 2015). Therefore, to enhance the growth of the human capital in the aerospace industry, there is need to develop effective strategies on how the issues can be addressed in the sufficient way possible.
Mitigation measures
Retention strategies
Retention strategies take different approaches in the aerospace industry with the most common tactic being high remunerations to the employees. The huge packages are intended to cater for the various risks, which are linked with the existing employment instability. Although the industry has over the decades being associated with huge pay, it is important to appreciate that there are other jobs with similar pay and compete for the same human capital. With globalization, different industries have been developed that are knowledge intensive and compete for the same pool of human capital.
Another effective strategy that is employed by manufacturing industries includes the Supplementary Unemployment Benefit (SUB). The plans target individuals employed to serve short-term contracts to help mitigate income loss during layoff periods (McNamara, 2012). The strategies are meant to discourage employees from seeking jobs elsewhere during such times. Moreover, the approached has proofed successful in helping retain experienced individuals in the workforce. It is therefore recommended for the different organizations to review the SUB plans to cater for such individuals. Work sharing is another firm internal strategy that is often employed to help retain employees at the organizations. Such programs help the teams to avoid incurring layoffs during harsh periods and makes employees work outside the manufacturing sector. Otherwise, employers can turn to the provision of training during periods of short-term layoffs as effective retention strategies.
Entry-level engineering positions
Most of the manufacturing industries have a short threshold of five years that helps new engineers to gain some form of industry-relevant experience. The limits reduce the number of new engineers hired to support development of the human capital. In the current setting, it is evident that there is a shortage of engineers with industry-relevant experience, which is a reflection of the insufficient intake of junior engineers. Incident of few junior engineers contributes to a future crisis of a shortage in engineers with relevant experience in the industry. Therefore, the shortage in labor workforce with industry-relevant experience can only be resolved if companies will consider employing more engineers today and find practical strategies on how to retain them (McNamara, 2012). Moreover, the government can make it a policy for the different companies to hire more junior engineers who will resolve the challenge.
Co-op and internship programs
Scholars such as McNamara (2012) indicate that participation in co-op or internship programs supports the development of human capital particularly regarding careers in aerospace industry. The two aspects help bridge the gap experienced in the human resource section in the particular industries. The government and other necessary organizations should consider engaging insufficient participation in co-op and internship programs.
Shared apprenticeships
In the recent past, companies have experienced a challenge in investing in apprenticeship that is the key to the development of human capital. Employee poaching is a worrying trend in most businesses, a concept that has made most companies to recruit tradespersons with relevant experience in the industry to avoid such losses. However, the supply of such individuals in the market is wanting, a feature that makes it difficult to meet adequate personnel to satisfy the workforce demand. It is worth appreciating that companies ought to invest more in training apprentices to avoid future losses.
Immigration
Immigration is another area that contributes to the development of skilled workers who are critical in supporting the growth of the industry. In 2006, it is important to recognize that 40% of aerospace engineers in Canada came from other states (McNamara, 2012). However, though the concept contributes to increase in the supply of workers with adequate qualification, such individuals often lack industry-relevant experience, which is vital to the business. However, to resolve the situation, industries should turn towards bridging and engaging in internship programs.
Provision of industry recognized certification is important in enhancing skill development and attachment of the individuals in the sector. Such individuals are likely to seek employment opportunities in the industry, an aspect that helps reinforce the workforce after lay-off or during periods of economic growth. Government effort to support the move has received significant recognition in the recent past due to increased appreciation of such certification.
Briefly, the aerospace industry faces many challenges, which are common in the high-tech industries. Some of the common issues that are experienced include an aging workforce and a shortage of skilled workers. In the US alone, approximately 70,000 engineers graduate each year, and only 44,000 are considered in aerospace careers (McVey, 2005). This is because aerospace competes with other companies for such human capital, which are required to enhance production in their respective industries. Different issues with employers in the industry have led to the development of a negative attitude to such careers, an aspect that should be addressed.
Some of the recommended strategies that have been put across by different stakeholders include the following; need to develop several measures that will help recruit and retain useful talent other than waiting to employ talented individuals, which have proofed futile. Moreover, the government has a role in addressing the challenges regarding STEM education among its citizens, a feature that will result in the evolution of more people with adequate skills in the industry. Moreover, there is a need to enhance the image of the aerospace industry among the young people to encourage more people to venture into the career.
Scholars such as Van der Heiden et al., (2015) have aired their concerns that in the current setting, most recruitment activities embraced undermine the capability of students. Most students have tremendous potential that may benefit the industry significantly, but it goes unexploited, an aspect that should be addressed. The education systems in schools should be updated rather than depending on systems that replicate themselves leading to the development of more challenges in the industry. Some of the significant changes to the sector include the 2007 contribution by the US government, which allocated about $30 million to support the development of STEM education. Other scholars in the industry feel that stakeholders in the aerospace industry should seek more strategies on how they can establish and maintain contact with students to develop a passion for related careers in the industry.
With the current trend in globalization, poaching to fill most of the key positions has become the order of the day. The situation is explained due to the nature of the current market conditions that supports the regular movement of employees. However, even if an employer makes their organizations be the most pleasant and has adequate rewarding plans of employees, it is difficult to manage poaching. It is difficult for employers to prevent their employees from succumbing to attractive opportunities or from the pressures of aggressive recruiters.
However, the human resource managers have a role to play in reducing the turnover rate in their particular organizations. Therefore, the HR personnel have a responsibility of adopting practical policy issues that support employee retention. The aspect does not only contribute to increased productivity in the organization due to the development of a mobile workforce but also results in increased profitability. The challenge is common in the aerospace industry, and this challenge has led to significant losses the business as echoed by various scholars.
However, with employment of different strategies, employers can reduce the turnover rate if they cannot discourage the behavior among their employees. In the successful implementation of the study objectives, it is worth understanding that the responsibility does not only belong to the employers but the government and other shareholders as well. The government has a mandate to the development of more research in the sector and development of effective policies to protect employees. On the other hand, the organization shareholders have a role to play in developing policies that support good practices in the respective corporate.
Conclusion
It was evidenced by the paper that both internal and external issues contribute to cyclicality in the workforce. However, most of the causes are internal and can be managed only if the human resource management enforces suitable practices and policies as required. Some of the common approaches include increasing the remuneration package for the employees to reduce competition with other companies that attract workers from the same pool, embracing SUB plans, and increasing internship programs among students among other important strategies. Development of active plans by the human resource management to retain both junior and senior employees is necessary for the growth of the industry in different ways. Some of the benefits achieved from the same include increased profitability and enhanced efficiency in business operations.
References
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