Issues in Human Resource for Kudler Fine Foods

Issues in Human Resource: Kudler Fine Foods

Today many companies are enduring the challenge of hiring, training, and retaining employees. Globalization has raised the demand to acquire talent that matches the need of organizations. Labor pools abroad are starting to create a job market where average American salaries are far less with the competition. As the baby boomers defer retirement the worker supply is projected to become smaller. Many workers now are opting to have more of balance between leisure activity and work. Skilled workers are at a minimum. A large swing in the attitude toward work of the current generation has been very poor. Finally, many companies are experiencing high employee turnover rates as workers are jumping jobs to find better pay or benefits.

Kudler Fine Foods has good plan in place, but will face some challenges to its human resource efforts. First Kudler has a plan that demonstrates that they practice “hiring within”. In most cases this is a common practice to hire someone that has started and learned the operation from the ground up. The issue of whether or not this or these individuals are quality managers is a variable that will only show once there in that position. Secondly, with the amount of time it could take someone to be promoted within, Kudler will the fall prey to the employee leaving the company. Many companies will have to deal with Generation Y and their lack of loyalty when leisure time is challenged by working long hours (Goldsmith, 2008). Last, Kudler’s pay for performance may lead to slight issues down the line.

Issue 1: Hiring and promoting

There are several key disadvantages of Kudler promoting within for managerial positions. Although general workers will have knowledge of the company’s practices, they may not have the necessary skill set to manage a division or store branch. This is when you should consider hiring externally based on the need for a highly qualified person. For example, with Kudler being in the specialty food industry the company could look to expand and open a location abroad. This would be an ideal time to place and train a manager with the skills as well as cultural and language proficiencies.

Kudler would however see some distinct advantages of promoting within. Promoting within generally demonstrates that the company has opportunities for advancement (Allbusiness.com, 2004). Kudler would save on the cost of training someone new and the cost for advertising to locate an external person. You eliminate trying to locate someone that fit your company culture.

Issue 2: High Turnover

In Kudler’s line of business there are several positions that don’t require post secondary degrees to maintain a job. The job descriptions for positions like butchers, office clerks, stockers, baggers, and sales require very little in the form of formal education. These positions make less then the $25,000 a year and are often the area to see the most turnover. This represents better than 50% of Kudler’s employees. The lower paying jobs do however cost company’s less to replace in the short term. In the long term, employee turnover leads to loss of productivity and eventually affects a company’s profit.

Kudler can implement various practices to retain employees. First and foremost, Kudler should focus on the overall morale of the company employees. High morale usually generates an environment conducive to productivity from your employees. Next, Kudler can look to offer specialized training programs that lead to industry standard certifications or qualifications. As employees enroll in the classes, they will be required to commit a minimum amount of years to Kudler as a sort of “repayment”. For example, in certain school districts located in New Jersey, teachers that accept tuition reimbursement for a certain amount, are required to commit to the school district two years beyond the end of the classes they are taken. It is this type of action that allows companies and organizations to maintain employees beyond the specialized training periods. In addition Kudler could offer incentives. Incentives can include cash bonuses, paid time off, and vacation packages.

Issue 3: Lack of Loyalty; Generation Y

The current wave of Generation Y, are landing