Academic journal article Journal of Community Positive Practices

Competitive Advantage: Recruitment and Retention of Senior Managers in Financial Sectors in Laos

Academic journal article Journal of Community Positive Practices

Competitive Advantage: Recruitment and Retention of Senior Managers in Financial Sectors in Laos

Article excerpt

Abstract: The focus of this research is to identify the importance of recruiting and retaining senior management resources in the banking industry in Laos. This paper reports on some of the findings. Both quantitative and qualitative research methods were adopted to collect data from three banks in Laos. Interview section: the questions wen designed to explore participants' understanding of basic concepts of HRM and their perspectives towards HRM in their organisations about recruitment and retention. Questionnaire section: part one involves demographics data, while part two of the survey questions an focused on participants' attitudes towards HRM processes such as recruitment in their organisations. The findings of the study demonstrate that HRM plays a critically important role in their banks in terms of keeping their co/npetitive advantage. There is a lack of development and implementation of HRM practices and policies to ncruit and retain the right people.

Keywords: Employees, competitive advantage, human resource management, recruitment, retention

1. Introduction

Human resource management (HRM) plays a critical role in determining organisations' success and it is a process of acquiring, training, appraising and compensating employees.

According to Dessler (2011) and Nel et al (2012) employees are truly the most important asset an organisation has. It is the hearts and minds of people, rather than their hands, that are essential to growth and prosperity for an organisation (Cascio, 2010).

Managing employees as assets that are also fundamental to the organisation to achieve competitive advantage it is stated by Nel et al (2012) that employees are the lifeblood of organisations. An organisation's workforce represents one of its most potent and valuable resources as a result the extent to which a workforce is managed effectively is a critical element in enhancing and sustaining organisational performance. Committed human resource (HR) practitioners who create new ideas, deliver value and innovate for growth in order to maximise organisational performance are key assets of organisations (Noe, Hollenbeck, Gerhart, & Wright, 2010; Redman & Wilkinson, 2009)

In today's competitive and dynamic global business environment, it is very important for organisations to have effective HR systems that select, develop and produce a level of performance that can justify organisational investments (Du Plessis, Nel, San Diego, 2013). According to Dessler (2011) for businesspeople, globalisation's essential characteristic means that increased globalisation meant increased competition and increased competition meant additional pressure to be world-class with higher productivity at lower costs.

HR managers who are knowledgeable in effective workforce management also play critical roles in companies, to support future competitive endeavours. It will be even more challenging for countries that for historical and political reasons have not long been engaged in the open economic market and Laos is one example of such a country

A recent New Zealand Herald newspaper article (Mclvor, 2011, January 28) emphasises that HR managers also play a critical role in companies that are knowledgeable in order to manage the workforce effectively and support future competitive endeavours. Managing a company's human resources effectively gives the HR manager extra hands and legs. However, this is not a straightforward matter for HR at the managerial level in the financial sector of the Lao economy.

The recruitment of Lao nationals to take managerial positions and to retain them has proven to be problematic. Initially, there were insufficient teachers and finance professionals to teach and mentor students and employees in this sector, and this resulted in low numbers of graduate students in finance, as well as employees who were not suitably qualified to work for international organisations investing in Laos (Bank of Laos, 2008; United Nations Development Programme, 2006). …

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