This is preparation work for the external assessment exam on Unit 6 Principles of Management. This document contains a presentation example which you will need to create for this hard examination. It has the correct layout and structure, needed to achieve distinction. Unit 6 is very important, howe...
Anvil Cloud Ltd
Meet skill requirements.
❑Current management issues:
• High staff turnover
• Unsatisfying employees’ experience
• All interns leaving
• No HR/ employees’ experience function
❑Strategic priorities – meet skills demand
❑Business performance and the necessity of
change
1
Anvil Cloud Ltd (ACL) operates in the highly competitive market of computer
support providers and more specifically it offers cloud-based IT solutions for
businesses. The company is based in the town centre of Reading and the
business has been operating since 2012. It has a solid number of clients ranging
from small to middle seized businesses. Currently there are 70 employees,
however due to the growth of the business and the new contracts won by ACL,
there is a clear need for workforce expansion. Consequently, the founder Pam
Grainer wants to immediately recruit 10 new employees, to meet the new
demand. However, there is a high demand for experienced staff in the industry,
resulting in aggressive competition among employers. Additionally, ACL has very
high staff turnover, meaning that the company finds it hard to keep employees.
The average staff turnover in ACL is 46%, more than three times higher in
comparison to the industry average of 13.2% (LinkedIn survey 2018). This is a
alarming difference, it suggests that ACL’s employees aren’t satisfied in their
workplace and therefore are not loyal to the company. People are the greatest
asset of any company and when employee leaves it rises a number of issues.
High staff turnover decreases the quality of service and it’s continuity. Customers
1
,as well as current employees may find it difficult to adopt to the frequent change
of staff members. It also creates bad brand image, thus discouraging professionals
to work for the company. Further it puts a lot of pressure on the HR department
as they have to with resignations, recruitments and all of the paperwork coming
with those processes.
ACL invests 6 to 12 months in training interns, teaching them relevant IT skills and
knowledge. Further those interns learn how to work with clients and meet their
needs. Letting all of the interns is a great lost of talent, especially in industry with
high skill shortage.
Due to the fact that IT plays a significant role in most of the current businesses,
the demand for specialised computer skills is very high in all sectors. Consequently
this skill shortage results in high competition among employers, thus making it
harder for ACL to attract and retain well qualified professionals.
Looking at the job roles list for ACL there is no HR function in the company. This
can make it hard for employees to develop and maintain solid relationships with
other colleagues. Employees can become frustrated with the company and
dissatisfied with their job. This unavoidably will have impact on their productivity
and motivation. The absent of HR could be one of the reasons of employees
leaving.
1
, Main Strategic Priorities:
❑ Expand the workforce to meet new
demand
❑ Improve the employees experience
❑ Improved performance
2
Main strategic priorities of ACL
Expand the workforce is crucial for the company because it is the one of the best way to
meet the work demand. Adding new talent to the team will make it easier to meet
deadlines and it will reduce the stress levels. The founder of ACL Pam Gainer, wants to
immediately employ 10 new members of staff as Front-End Developers and
Infrastructure Specialists. This is due to the growing business and the new contract
secured by the company. To do this effectively the company needs to develop effective
recruitment strategy, which will attract professional even in the highly competitive
employers’ market.
Introduce employees’ experience and a new business culture in which the employee is
seen as the most valuable company asset. This can be done by placing appropriate
employee experience strategy, which will improve the performance, job satisfaction and
the overall staff turnover rate. The company may need to look at workforce motivation
strategies. This could include developing financial and non-financial benefits for the
employees. Consequently, the employees will be happier at their workplace, thus
reducing the staff turnover and attracting new talent as well as improving the workforce
performance.
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