For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
By doing so, the problem of decreasing population can be solved and the number of worker can grow faster. Furthermore, the companies can help to keep the people from becoming discouraged by shorten the frictionally unemployed time of the people. To achieve this target, the companies should improve the methods to match the workers with the job. For America, government can provide benefits to the unemployed. Those who are unemployed will use the money to buy their basic needs such as food, clothing and shelter.
When Paul attempted to retrieve HR metrics, he found the data was either not available, or difficult to retrieve and analyze. The company’s main problem that is causing a lack in production is retention and turnover. In addition to causing a lack in production, turnover is a very costly problem. HR must focus on employee turnover and retention to gain an understanding of problem areas that are causing talented employees to leave. Sharlyn Lauby, president of the consulting firm ITM Group Inc., stated, “With unemployment continuing to drop, recruiting is getting tougher and organizations cannot afford to just go hire someone else—companies need to understand why employees stay and what causes them to leave” (Maurer, 2017).
Several organizations implement HR policies and practices that are harsh in nature and don’t see employee benefit. They might be fine keeping in mind the company’s interests but also contribute to the attrition rate, employee turnover because they can be very demotivating to the employees. Such policies may be in line with the business model but are not in sync with the employee. Employees feel that these organizations are selfish and only care about the business and not the employee’s welfare. However, no company wants to let go of its employees because higher attrition rates lead to a negative name in the market for the company.
The involuntary separation is considered to have a positive effect on organization because company and managers can fire ineffective employees with lower performance than other. Major companies measure only voluntary turnover. But the involuntary turnover also has a complex risks for the company such as risks for reputation and brand, legislation requirements, risk of losing high-talented employees in the situation of changes and uncertainty. All this stimulate heavier consequences then the first one type. Moreover, even if companies attempt to improve their staff performance determining non-effective employees, it can be an indicator of profound mistakes and lack in recruitment
Lebanese people are travelling abroad to look for better job opportunities due to the low salaries found in Lebanon. Lebanese professionals are being over qualified to the companies in Lebanon. According to Elie Fares, “it’s not acceptable to live in a place where salaries are unacceptable, you live to constant fear of civil strife and you know you’re not appreciated professionally” as cited by (Lysandra Ohrstrom,2013) in the Daily Star. Some of the causes of being unemployed is being fired or layed off for specific reasons. Many companies ask for employees with experience and attempt to give low salaries.
Consequently, the employees were extremely dissatisfied with their job and as a result enterprises were prone to high employee turnover. If recruiters would paint a more realistic picture of the vacancy, the turnover rate can be partly minimized. On the one hand, if applicants are provided with a realistic job preview, some candidates will be discouraged and withdraw from the consideration. But these employment seekers would mostly have become dissatisfied if they would have joined the company. On the other hand, those applicants who know what to expect and still want to join the firm are generally more motivated and are likely to remain with the organisation.
The research which has one of the most concerning topic is of question concerning the instability of political assumption in which relating it with economic performance in a country. All these studies has declared that political instability factor is deadly for economical performance in both developed and developing economies. When youth is set to be more than 35% of the adult population, which results as developing countries, the risk of conflict based on armed is 150% higher than in countries with an age based structure like countries which are developed. The same year, number of 44 developing countries experienced youth knots of 35% or above. Thus, Urdal (2006) shows that increase in youth populations are sometimes outbroken and linked
Additionally, employers generally don’t treat their employees well and this reduces their enthusiasm, for instance, many frontline staff are overworked as organizations fire some of their colleagues or even refuse to hire others so that they can reduce the company’s expenses. They are also victims of low wages. Many of these frontline employees have families and expenses to take care of. When their salaries become too small to set off their debts they get stressed, are not happy and perform below the expected level of performance, and this negatively affects business growth. Some employers also deny them leave, even though such leave is an entitlement protected by labor laws and not a privilege.
Apart from economic situation, , employment policy and the attitude in the society can be responsible for the situation. Intense competition in the labour market is causing many employers to prefer experienced workers to young people and the potential of the youth goes unnoticed. Candidates face really big problems– one cannot get a job without experience and experience without a job. Youth is at least expected to gain needed skills whit their graduation, but their skills are still not enough for highly competitive labour market. Regardless of the growing demand for STEM skills (Science, Technology, Engineering and Math), humanitarian careers are highly popular amongst youngsters.