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07030248044CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Globally,
retaining talented employees is challenging to organisations in the face of
hyper-competition, corporate failures, employees’ turnover, absenteeism and
workplace discrimination. The concern emanates from the philosophical
assumption that talented employees are instrumental to organisational success
(Collins, 2006, 2009),
and a determining factor in an organisation sustainability, and competitive
advantage (Porter, 2008). Public and Private organisations depend highly on the
inherent experience and technical ability of their talented employees to strive
with competitors (Armstrong, 2009) and to perform above average returns
(Schuler, 2011, Vaiman, Scullion
& Collins 2012). However, workplace discrimination has affected the
retention of talented workforce in many organisations both public and
private.
The scholarly
argument for talented employees retention is anchored on intellectual capital
perspective (Becker, 2000) and resources based view (Penrose, 1959), and three
reasons stated by Harvard Business Essential i.e. (1) the need for growth on
intellectual capital, (2) the occasional relationship that connects talented
employee and customer satisfaction, and (3) financial cost of employee’s
turnover and lack of interruption of competitive goods and services (Chitra,
2013). In addition, Armstrong (2006 & 2010) and Becker (2000) emphasised the effect of intellectual
capital as human intangible assets to organisation longevity and financial
success.
Nevertheless,
recent studies have revealed the difficulty in the retention of talented
employees for the organisations as several employees are lured and hired with
better rewards (Armstrong, 2006; Desseler, 2008; Michael & Crispen, 2009;
Michael, 2008). The after-effect has been
industrial espionage and loss of intellectual property. Hence, competitive
advantage is eroded when talented employees are not given chance to have a long
stay in the organisation so as to maintain lack of disconnection of company’s
competitive products and services in the market within which it operates
(Michael, 2008).
Abbasi and Hollman
(2000) indicate that in an instance of losing a talented employee by an
organisation, it becomes a disadvantage to innovation, consistencies in
providing quality services become vulnerable, and there exists major setbacks
in services rendered to customers. These
negative effects emerged since talented employees are the progenitors of
knowledge, innovation, and creativity that constitute the main advantages of an
organisation over its rivals. From the foregoing, talented employees retention
is fundamental to an organisation’s competitiveness (Rath & Rath, 2014).
Talented
employees’ retention is confronted with challenges due to workplace
discrimination in today’s business world. Proprietors, management and other
employers of labour acknowledged the reality of workplace discrimination
orchestrated by employees’ diversity; age, gender, marital status, social
status, health status, disability, sexual orientation, religion, personality,
ethnicity, race, career focus, and culture (Kossek, Lobel,& Brown, 2005).
In this regard, studies in the area of discrimination have examined such
characteristics in relation to organisational behavioural outcomes and
performance (Channar, Abbassi, & Ujan 2011).
In spite of the
worldwide acceptance of the law as an appropriate instrument for dealing with
workplace discrimination challenges and the conscious efforts of organisations
to rid themselves of such practices, workplace discrimination remains a global
reality (Beauchamp & Bowie, 1993; Gregory & Thompson, 2010). The
concern for workplace discrimination arises from the assumption that it causes
disparity, organisational injustices, and inequity among employees of different
groups or associations within the organisation (Robins & Judge, 2014; Jie,
Ashok, Brian & Manjit, 2009).
Weiss (2008) sees
workplace discrimination as a recent managerial task which demands serious
attention because its after-effect amplifies the intention of talented employees
to leave and hinders organisation from wining a competitive advantage. Authors
who research on discrimination rarely give close attention to variables such as
(1) religion affiliation (2) work climate (3) managerial skills (4) career
development (5) institutional policy and (6) workforce diversity. Rather,
attention has always been more on disability, ethnicity, gender, race, and
sexual orientation, with others in relation to workplace discrimination
(Channar, Abbassi, & Ujan 2011; Darity & Mason, 1998; Hoobler, Lemmon
& Wayne, 2011).
As work
environment is beginning to experience diversity in the aspect of culture,
ethnicity, and religion, people’s social quality and discriminatory influence
become more intense. Consequently,
employees would probably bring with them their religious beliefs and practices
with them to the organisation. According
to Oliverira (2004), Mitroff and Denton (1999), and Cavanagh (1999), when
organisations foster free expression and practice of religion and spirituality
in workplace environment, such organisation would have a better chance to
succeed. Work climate are driven by
reactivation of work environment and interaction of religions (Marschke,
Preziosi, & Harrington, 2009).
The quest for
religion affiliation is now very popular due to the on-going confusion about
organisational identity that frequently follows an impression of lack of job
security for employees in various organisations (Giacolone & Jurkiewicz,
2003). Organisation integrity is
constantly investigated detailing human
resource challenges such as business ethics, corporate contributions, community
development, environmental policies, human right, and workplace success
(Giacalone et al. 2003), which only a religiously motivated talented employees
could answer. The motive of religion
affiliation and work climate has to do with employees giving and witnessing
inter-dependence, pull and togetherness in the work environment that enables
corporate organisations to craft out strategies that produce competitive advantage
(Harrigton et al., 2004; Mitroff & Denton, 1999). Developing a spiritual
vision through religion and comfortable work climate can quench discrimination,
fasten an employee to the organisation and improve retention.
In relating
managerial skills to workplace discrimination, skills and qualifications
ideally speak for themselves and become one of the core aspects the managers
consider in the choice of retention of talented employee; however, this is not
always the case (Kadiresan & Javed, 2015). This introduces a barrier into a
healthy workplace relationship which, Naidoo (2009) affirms that talented
employees discriminated against in this way tends to become more stressed,
demotivated, and consequently develop an intention to leave.
Furthermore, ascendancy
to the higher rank is a subtle challenge while planning to retain talented
employees who have much concern for career development (Hoobler, Lemmon &
Wayne, 2011). Hoobler et al, (2011) explains four main stereotypical reasons
why certain gender is considered not fit for the highest echelon of their
career. These are: (1) glass ceiling (2) pipe line argument (3) genetic
predisposition (4) 21st century work structure. The assumptions have consequential effect on
talented employees’ retention and organisation longevity.
In the global
business world of today, it is certain for organisation to recruit employees
from various socio-cultural and political backgrounds considering the
unchangeable divergences in ethnicity, religion, race, gender, size,
personalities, physical capabilities, age, and sexual inclination and others.
In as much as organisation employs individuals, it is expedient that it invests
on workforce diversity management to foster organisational unity that enhances
competitive advantages and produce a high rate of returns on investment (Green,
Lopez, Wysock, Kepner, Farnsworth & Clark, 2015).
Workforce
diversity is a priceless competitive property indispensable to any organisation
(Robinson, 2002; Usmani, Kumari,
& Hussain, 2015). Appreciating the worth of workforce diversity is a
crucial part of effective management of talented employees (Anonymous, 2001). The reality of today’s business is the indiscriminate
atmosphere that allows retention of diverse talented employees to have a level
play field with their indigenous counterparts. An organisation that has various
talented employees performs better in a competitive market (Kundu, 2001). More so,
the legislation backs the notion that talented employees be treated
justifiably (Pincus, 2000). The beginning of a business contract in the
workplace is supposed to be through the awareness of justice adequately
informed by institutional policies.
Organisations are expected to construct standing principles and
procedures to form part of their institutional policies which suggest that all
employers have the obligation to treat their employees with worthiness and
admiration in the workplace (Human
Right Commission (HRC, 2013).
According to New
South Wale Industrial Relation Agreement (NSW, 2013) on Supporting Fair and Productive Workplace, a clear institutional
policy statement is described as a significant symbol of management
responsibility in safeguarding not-conforming behaviours such as discrimination
at workplace. However, the effectiveness of institutional policy depends on the
involvement of all stakeholders coupled with corporate strategy forming an
inherent fraction of the organisation. Institutional policy must carry along
all personnel at management cadres to secure their interests and construct the
policy with the awareness of the employees and their representatives.
Everyday
operations at workplace can be a source of unintentional discrimination which
is capable of hindering organisational success. For the avoidance of this,
organisations may need to review its current policies to follow-up with
procedures and practices that will identify areas where it needs to invest in
change. A good institutional policy helps in achieving broader performance
improvements as it focuses on effectiveness and efficiency at workplace. A good
institutional policy defines what constitute workplace discrimination,
highlights the influence on key areas such as managerial skills, career
development, and workforce diversity as it relates to interaction of certain
elements such as religion, gender, and work climate to sustain talented
employees’ retention in the organisation, and to win a competitive edge above
rivals.
1.2 Statement of the Problem
Workplace discrimination phenomenon is a serious
problem worldwide and Nigeria is not an exception with reference to retaining
talents. The history of Nigerian nationalism is being narrated in comparison
with ethno-regionalism, gender, religion, Federal character, and discrimination
sentiment (Mohammed, 2005). This experience has been cascaded into workplace
discrimination both in public and private organisations. Further, social,
economic disparities and geo-political demarcations have translated into unfair
instruments in employment processes and the after-effect is generating
tensions, conflicts, and workplace discrimination.
In spite of the commonly espoused Government vision of
building inclusive and egalitarian society, ethnic and religious intolerance,
institutional policies and others have marred the progress made in
post-colonial era. This emerged from the
disposition to hire employees on Federal Character with a publication that
amplifies the depth and level of inter-regional inequality in employment
(Remington, 2015). While the aforementioned reflected the inter-regional
mind-set, the private is not isolated as evidences of institutional policies
and practices have tacitly and socially excluded qualified and eligible
applicants from being employed.
Several policies
and practices among private organisations have created a big obstacle to
organisational potentials and success in retaining talented workers (Olurode,
2003). In most organisations
there is usually no commitment to providing employment opportunity for
eligible applicants or converting qualified third-party service providers to
regular employees as a form of organisation’s move to motivate talented
employees without reference to peoples’ connections, demands for settlement,
age limitation, disability, genetic formation, pregnancy, and marital status
which all have their links with
discrimination. Evidence of this
assertion is credited to Akinpelu and Oyetunji (2016) which demonstrated that
recruitment procedures in public and private services in Nigeria are not based
on merit rather on gender, religion, and tribal sentiments.
In addition,
workplace discrimination challenges faced in private organisations in relation
to talent retention today are rooted in several factors one of which is
managerial skills and this can be regarded as dimensions of workplace
discrimination. Many private organisations having being caught up by the
current economic hardship are in a state of dilemma in retaining highly skilled
workers. This is evidenced in the recent disengagement of thousands of
employees in the Eco Bank, Diamond Bank, and First Bank of Nigeria Plc. In this
situation, the only way of escape from loss of intellectual capital is for the
private organisations to be fair and free from discrimination in their choice
of retention by valuing, preserving, and utilizing optimally the technical,
human, analytical, and conceptual skills in individual talents to its advantage
in order to win a competitive edge above rivals. The difficult task confronted by
several private organisations this day is the ability to initiate effective
management strategies for the retention of talents and survival of their
business. (Akinpelu & Oyetunji, 2016).
Another challenge faced by private organisations is
the ability to strengthen the bond with core employees through career
development. In many private organisations, employment casualization has gained a wider ground. Short term
employment has secured the regular status lacking the legal rewards attached to
regular employment. Casual employees are made to undergo career degradation,
unattractive payment, exclusion from association and other rewards. Workplace
discrimination prevents talented employees from reaching the pick of their
careers as fulfilment of life and career purpose is undermined (Akinpelu, et. al. 2016).
Reflection on
departure in identity and personal attributes have constituted obstacles to the
achievement of workforce diversity; capturing that divergence to gain a
competitive edge (Robbins &
Judge, 2014; Cachon,
2005). However, the challenges that
private and public organisations in Nigeria are confronting today is the
promotion of teamwork in the midst of workers hailing from different cultural
settings, age, gender, education, profession, religion and appropriately
tailoring their activities in line with achievement of organisational goals and
objectives suggests that more effort is required to improve workforce diversity
to encourage talents to stay.
Appreciating
workforce diversity is essential if competitive advantage must be sustained.
Productivity, effectiveness and competitiveness are maintained when workforce
diversity is in place. In his assertion, Cox (2001) opines that promoting
workforce diversity will encourage retention of excellent employees and help to
improve customer loyalty. More so, due to the rapid expansion of private
universities in Ogun State, there has been an increase in the diversity of the
faculties and staff. These faculties and staff have different perspectives,
cognitions and customs which are capable of being harnessed for the usefulness
of the organisation in the face of unbiased workforce diversity management
strategy.
Irrespective of
the fact that some institutions are performing well in customers’ relation,
whether or not workforce diversity is being practiced internally is uncertain.
Institutions are lacking diversity as part of their core values of leadership;
integrity, character, creativity and innovation, team spirit and togetherness
which supposed to serve as pointers to the idea of workforce diversity is being
alienated by discrimination (Duggar, 2016)
Gender discrimination in Nigeria can be traced to the
period of colonial administration and this discrimination against the opposite
sex in workplaces is still predominant in our modern society (Makama, 2013).
For instance, the Federal Ministerial report released by the Women Aid
Collective Organisation in 2008 discloses that in the Ministry of Women
Affairs, men have higher population than women. Men have 59.4 per cent
population higher than women who only have 40.6 per cent population. This is
the evidence of the incessant challenge pose by gender discrimination in
workplace which often times lead to unrest, ill decision making and lack of
productivity (Lawal, 2004). According
to Azuh, Egharevba, and Azuh (2014) the failure to include women in all aspects
of life is responsible for the continued underdevelopment of many
organisations. Where women are downgraded, discriminated against, marginalized
or ignored, it is difficult to achieve development (Egbuta, 2016). The potentials of women are often
under-utilized in work places while it has been found out that, men have
dominated the workplaces.
Employees’ perceptions and feelings about physical and
social work climate is also a serious cause for concern to talent retention.
Workplace discrimination leads to poor work climate (Armstrong, 2007). The workplace social environment in many private and public
universities is unsafe and unhealthy. These in most cases affect how well
institution’s goals are being achieved when the work climate is un-conducive
and lack innovation. A workplace that does not provide clarity among the group
in terms of roles and responsibilities within the overall organisation, an
environment where employees does not have the resources and backing they need
to achieve the work group’s goals, or an environment that provides no
opportunity to group members to stretch their abilities and assume some certain
level of risks in providing solution to problems and find out innovative means
of functioning to arrive at better performance is no doubt encountering
discrimination and will find it difficult to retain its core talents (Armstrong,
2010).
The new managerial
bottleneck that is calling for attention is religious discrimination. Religious
discrimination dispute is developing quickly compare to any other forms of
discrimination. This is reflected in the killings of about seven hundred to one
thousand (700-1000) Shiite minority in Zaria, Kaduna State, as they were
setting up for a religious function in December 2015 by Nigerian army. Recently
in Kano, about fifteen (15) Shiite members and one (1) policeman lost their
lives during the clash between the members of the sect and the police while
claiming their right for freedom of worship (Adetayo & Odogwu, 2017). Earlier in the study of IFRA
Nigeria between June 2006 and May 2014, it is reported that violence deaths
caused by religious discrimination accounts for four thousand and forty-one
(4041) people. From the year 2006 to 2009 statistic shows a rapid increase in
number of death caused by religious discrimination from ten (10) to one
thousand and four (1004) casualties. In the year 2010, the figure drops to
seven hundred and eight (708) casualties, but in 2011, it escalates to one
thousand one-hundred and seventy-nine (1179).
Year 2011 to 2014 witness a rapid increase from one thousand one-hundred
and seventy-nine (1179) to four thousand and forty-one (4041) casualties. This
eventually has led to migration of human capital from the north to the south
and the east thereby causing increase in unemployment population in the regions
and economic talent degradation in the north (IFRA, 2014).
As enumerated by Ali, Ali, and Abdigani (2013), organisation’s challenge of today is surrounded with
inadequate infrastructure, lack of transparency, lack of integrity, lack of
continuity in programs, inconsistency in policies and regulations, brain drain,
and high level of mediocrity, amplified by different forms of discrimination.
These are critical factors for business success but can also deter
organisation’s success. Talented
employees are extremely important to public and private organisational
performance (Oladapo, 2014). For many organisations, the strategy employed
to arrest the loyalty of the talented employees is crucial to their success
(Iles, 2007). The emergence of knowledge based society has made talented
employees to be considered as salient drivers and requisites to the
sustainability of the organisation.
Nations and organisations are still in the business of competing for the
best talents in the face high turnover (Porter, 2008).
Turnover is a
popular phenomenon in higher institutions of which Ogun State is not an
exception. A particular challenge faced by institutions is associated with
workplace discrimination dimensions namely managerial skill, career
development, institutional policies, workforce diversity, work climate, gender
and religious. Porter (2008) explains the undesirable circumstance faced by
many professional organisations due to competition because they ignore to
admire talents better than their rivals.
According to Birt,
Wallis and Winternitz (2004) the primary concern towards institutions is to
follow up with the dynamic necessities of their workforce so as to gain
absolute preference in the sight of the employees. Institutions need to be
familiar with these qualities in order to equate their attraction and retention
strategy with the demands from the employees. It is based on this premise that
the research examined workplace
discrimination and talent retention in Private and Public Universities in Ogun
State. A conceptual framework that may help
organisations create strategies and policies to control workplace
discrimination efficiently for better talent retention has been designed in
this study.
1.3 Objective
of the Study
The general objective of the study is to examine
workplace discriminations and talent retention in universities in Ogun State,
Nigeria. The specific objectives are to:
1.
assess
the effect of managerial skills on talent retention in universities in Ogun
State.
2.
examine
the effects of career development on talent retention in universities in Ogun
State.
5.
examine
the extent to which the variables of workplace discrimination (managerial
skills, career development, institutional policy, and workforce diversity)
influence talent retention in Universities in Ogun State, and
6.
assess
the effect of workplace discrimination variables (managerial skills, career
development, institutional policy, and workforce diversity) on talent retention
in universities in Ogun State.
1.4 Research Questions
1.5 Hypotheses
The following hypotheses are formulated and tested at
0.05 level of significance.
H0 1:
There is no significant effect of Managerial skills on talent retention in
universities in Ogun State.
H0 2: There is no significant effect of career
development on talent retention in universities in Ogun State.
H0 3: There is no individual and combined effect
of the moderating variables (work climate,
religious affiliation) on the
relationship between talent retention and work place
discrimination in universities in
Ogun State.
H0 4: There is no significant difference in
respondents’ opinions by religious affiliation on workplace discrimination in
universities in Ogun State.
H0 5:
There is no significant combined
influence of managerial skills, career development, institutional policy, and
workforce diversity on talent retention in universities in Ogun State.
H0 6:
There is no significant effect of
workplace discrimination on talent retention in universities in Ogun State.
1.6 Rationale
for Hypotheses
Hypothesis One
There
is no significant effect of managerial skills on talent retention
Previous findings
have agreed that there is a significant relationship between managerial skills
and talent retention (Armstrong, 2006; Armstrong 2010; Becker 2000; Chitra,
2013). A possible reason for this is what is being described as a profound
effect of human intangible assets to organisational longevity (Becker, 2000),
which was said cannot be overemphasised when it comes to retention of talented
employees (Porter, 2008). However, Michael (2008), Desseler (2008), Armstrong
(2006), and Convey (2005) also argued that retention of talented employee is
strenuous no matter the incentives or rewards supplied. The study examined
whether discrimination was a source of disincentive to work. The finding reaffirmed
the assertion that where there is no discrimination, skills and competencies
can be developed, rewards to work cannot be denied and a sense of humiliation,
frustration and powerlessness cannot take over the work place. It was through
this line of reasoning that the researcher hypothesized that there is no
significant effect of managerial skills on talent retention.
Hypothesis
Two
There
is no significant effect of Career Development on talent retention.
The work of Rita (2013 on the role of
talent management on organisation performance found that learning and
development in organisations is a constant struggle viewed as an administrative
exercise rather than as a competitive advantage. The authors submitted that during strong
economic times, it is easier to ignore deficiencies in the career management
process, but during economic downturn, the need to identify and develop top
talents for critical roles has never been more important. It was based on this
reasoning that the researcher hypothesized that career development is of no
significant effect to talent retention.
Hypothesis
Three
There is no individual and combined effect of the moderating variables
(work climate and religious affiliation) on the relationship between talent
retention and work place discrimination
Previous studies discover
agreement of work climate, employee attitudes and behaviours. Findings state that work climate relates with
positive and negative behaviours.
Therefore, workers who see their work environment to be non-supportive
and not admiring are likely to display negative behaviours (Wolfs, Dulmus,
& Maguin, 2012).
Similarly, a survey report
conducted by the Society for Human Recourse Management (SHRM) (2008) on
religion/spirituality in the workplace (Faith at Work) survey to examine what
organisation are doing in terms of religious accommodations, and to determine
the impact of religious accommodation in the workplace shows that at least 12%
of the respondents still believe that there are no religious/spiritual
diversity among its employees.
Also, in Maina and Onsongo
(2013) from a survey conducted on employee attitudes towards organisational
diversity on business performance from the perspective of the small and medium
enterprises. It was found that 38% were
occasional and seldom victims of gender discrimination in the organisations.
The researcher infers from this line of reasoning and hypothesized base on the
above reasons that there is no significance effect of the moderating variables
(work climate and religious affiliation) on the relationship between talent
retention and work place discrimination.
Hypothesis
Four
There is no significant difference in respondents’ opinion by religious
affiliation on workplace discrimination
The study reveals that
application of the spiritual mind set in a workplace will support creativity
and innovativeness of employees, which in the other way round lifts
productivity, resulting to better overall performance (Marschke, Preziosi,
& Harrington, 2009). Different researches
on spirituality in the workplace (Giacolone & Juriewicz, 2003) discover
that when people discover a sense of worth in their work endeavours and feel
involved in a spiritual climate, they feel excited with vigour and concentrate
more on the progress of the organisation.
According to Morrison (1996) and Loden and Rosener (1991), organisations
that operate religious diversity properly benefit in higher returns and possess
the ability to retain core talents. From this line of taught, looking at spirituality
as being closely linked to religion, the researcher hence hypothesized that
there is no significant level of differences between the opinion of the
respondents and moderating effect of workplace discrimination by religion.
Hypothesis
Five
There is no significant influence of workplace discrimination
(managerial skills, career development, institutional policy, and workforce
diversity) on talent retention
The literature has
demonstrated that the ideas of non-discrimination and equal opportunity have
for years been enlisted among international community’s key principles
including conventions of the United Nations and the International Labor
Organisation (ILO). These ideas are rooted in universal principles of human
rights, fundamental freedoms, and equality enshrined in numerous international
instruments (International Finance Corporation, 2006). Human resources mobility has risen through economic globalization,
while organisations are searching for means of retaining talents, enhancing
employee performance, making corporate image better and actualising corporate
goals. Organisation has become a global system that works within and as well
relates across the globe (Weihrich & Koontz 2001). From
this line of thought, the researcher hypothesized that there is no
significant influence of workplace discrimination (managerial skills, career
development, institutional policy, and workforce diversity) on talent
retention.
Hypothesis
Six
There is no
significant effect of workplace discrimination (managerial skills, career
development, institutional policy, and workforce diversity) on talent retention
Labour Regulations
(2007) establishes the illegality to discriminate in hiring, promotions,
termination, or other aspects of employment, and on the basis of a person’s
diversity. In other words, an employer cannot discriminate against any
individual when it comes to the practices within the workforce arena.
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