Keywords

Accounting Organization, Banking Operations, Management Reporting, Accounting Policy, Information Base.

INTRODUCTION

It was the year 1992 when Pakistan enacted the Economic Reforms Act¹ and allowed its nationals to open foreign currency accounts. With this development, Muhammad Gulraze Mir established the first Hong Kong-Pakistan joint venture business in 1994, which went on to become Pakistan's top brokerage firm. Referred to as "The harvest Groups," The idea of Muhammad Gulraze Mir was planning life not money management. His goal was to use an education-based planning strategy for integrated, objective and coordinated financial solutions to transform their clients from consumers of financial products into owners of their financial future.

To enhance investor trust and strengthen the national economy, Pakistan's "Protection of Economic Reforms Act-1992" established lenient foreign exchange controls. Beginning with just 100 business agents, Mr. Muhammad Gulraze Mir's firm now employs over 500 people across four Pakistani cities. The company emerged and nurtured into an expanded network of a dozens of companies affiliated and associated with eleven offices in four countries, but regrettably Muhammad Gulraze Mir passed away in 2019 and the company collapsed as a result of a dramatic increase in personnel turnover Figure 1.

On July 1, 2019 Hussain Gulraze Mir son of Muhammad Gulraze Mir joined the company as the new C.E.O of “The Harvest Group” he came up with innovative ideas and approaches that he must have learned at The University of Warwick in Coventry, England. Before returning to Pakistan Mr. Hussain was working in KPMG², in London. Mr. Hussain was determined to preserve his father's years of hard work, but he knew it would not be facile, without a competent team, Mr. Hussain focused on hiring experienced and well-qualified individuals with excellent problem- solving and management skills. He hired a new HR team, who had prior expertise in human resource management for his company. He also introduced new services for the customers named as “Harvest AMC Services” ³.These services provided financial planning with a methodical strategy. Through education-based planning strategy for integrated, impartial and coordinated financial solutions, these services would change clients from consumers of financial products to owners of their financial the ultimate outcome ( Das & amp; Baruah, 2013).

Mr. Hussain initiated company’s subsidiaries for its expansion, he started a technical instituted and named it as “Top worth Technical Training Institute (3TI)”. Top worth Technical Training Institute (3TI) has been established to provide a platform in nurturing the human capital and preparing them to stand out in their respective professional fields. As permitted by the Institute of Financial Markets of Pakistan, the institute intends to hold training sessions leading to a variety of certifications for various financial market sectors (IFMP). 3TI aims to develop up-to-date training course material through its aggressive research and development department to create high-quality market professionals distinguishable in the professional world.

He also introduced Pakistan Mercantile Exchange (PMEX)⁴, the country's first demutualized, web- based commodity exchange. It is authorized and overseen by Pakistan's Securities and Exchange Commission and all of its shares are held by institutions. The HG⁵ market was stabilizing again as a result of all of these new and creative initiatives, but unfortunately, the staff turnover rate was sharply declining rather than improving. Increased Turnover remained a problem for the company; as a result of staff turnover and inadequacies in the system, the company started losing not only its financial costs but also its productivity, which was a concerning condition for the company. Mr. Hussain was well aware that if the employee turnover rate did not drop, the company could collapse at any point Figure 2.

What were the main reasons of staff turnover?

Mr. Hussain recognized that in order to reduce staff turnover, it was critical to identify the root causes of turnover. He began by training his team in various evaluation strategies. Mr. Hussain and his team conducted surveys and interviewed as many employees as possible to obtain clear reasons. After weeks of research, Mr. Hussain was able to identify the reasons behind increased staff turnover. Various reasons emerged such as, the employees were dissatisfied with their wages, they were dissatisfied with their manager's attitude toward them; they had the impression that their competence would be halted in the future, they have this concept in their minds because most of staff working in HG company came from different academic backgrounds and have less knowledge about the company’s Mission, Vision and Policies, lack of training and development plans for staff and deprivation of rewards, recognition and promotions. All these variables contributed to employee dissatisfaction, which led to higher staff turnover (Jeet & Sayeeduzzafar, 2014) Figure 3.

What should Mr. Hussain do?

Mr. Husain understood that focusing on one cause would not make a significant difference, so he chose to work on each cause independently. He proposed social exchange theory for manager’s relationship with their co-workers, this theory was based on a cost benefit relationship which means cost involves negative things you see in a relationship like time, effort, money etc. you put in a relationship. Benefit on the other hand includes all the things you see positive fun, companionship and social support. Mr. Hussain knew that relationship between the team members and manager play a key role in taking along the employee for a long period of time. Respect out of which is the most important element, along with attitude, behavior or the manager. It was observed that in the employee exit form (that includes feedback from the employee) 10% of the employees left due to unprofessional and rude behavior of the managers. Also from the firing records it was seen that one team had retained its employee for a longer period of time than the other team whose members left after 2 to 3 days at work. It was then observed that the team which retained its employee had good bonding and relationships with each other. Everyone was respected, supported and treated equally, which resulted in high team performance and result. The other teams were then urged to treat their members in a way they feel respected and valued at work. The manager was trained and social exchange theory was then implemented Figure 3. The managers improved their bond with their team members which resulted in retaining their team members (Kadiresan et al., 2016).

Did the revising salary plan work?

Mr. Hussain and his team considered re-looking into the salary scheme of the company as the employees were not satisfied with their salaries which significantly influence turnover intention. He carried out a review of wages to allow the company to compare its pay structure with competitors. The review revealed that the pay structure was inferior to those of the rivals, which had a negative impact on the productivity of the business because employee turnover was higher as a result of salary dissatisfaction. Incentives based on performance or sales were also introduced to encourage employees to put in more effort and make higher wages. In order to protect employee welfare, increase their purchasing power and lessen their burdens in meeting their family and personal needs, he took into consideration living costs when revising salaries and benefits. He knew that this would increase the employees' level of satisfaction and commitment to the company and will keep its workers (Frank et al., 2004).

Company’s Vision, Mission, Values and Policies

Mr. Hussain knew that hiring new employees will cause more deterioration of the company as hiring new employees cost resources and time, the cost to the company for hiring a new employee ranges from 50% to 200% of the salary of the former employee. Advertising and other costs associated with recruitment have grown. Salary overlap makes it challenging to maintain a strong workplace culture and morale. Following surveys, it became evident that past hires knew very little or nothing about the company's vision, mission, values and policies. A company's vision is based on its core values, which are typically stated statements that drive the company toward a certain corporate objective. The term "mission" refers to a model that personifies the purpose of an organization's existence. Targeted direction is crucial because strong performers stick with a company whose objectives are understood and attainable. In order to do this, Mr. Hussain and his team began training sessions for managers on the company's vision, mission, values and policies. Following these sessions, the managers received instructions to train all the staff members on their respective floors Figure 4.

Concept of “Fit”

Special training sessions on hiring employees were initiated for the HR⁶ Team. Mr. Hussain personally instructed his HR Team, he trained them about various strategies for retaining employees he educated them about the concept of fit. During the hiring process, the idea of "fit" based on credentials and education is used as guidance to decide whether an applicant satisfies the requirements for a position that is open. Important considerations when hiring for these positions include person-organization fit and person-job fit. These ideas represent the interactions between an employee and an organization, taking into account the knowledge, competencies and skills that each person brings to the position. Person-organization fit is the process of matching an applicant's qualities to a job and an organization's culture, which raises the likelihood that a new recruit will stay on board. Employees' perceptions of comfort and suitability within the workplace environment make up person-job fit. When such a fit is lacking, the employee looks for alternative job. To find the best match, the business must understand both its own culture and how it complements the culture of the prospective employee. They should be worried about future demands for the organization as well as the present employment position when making a hiring choice. Employee loyalty and increased effort are influenced by person-job-organization fit. The probability of employee retention rises as a result of this favorable employment "Fit”. Mr. Hussain said

“We are always on the lookout for talented individuals who can perform and excel in a dynamic and innovative working environment. We view each and every one of our employees as an indispensable part of the team” Figure 5.

Was the problem resolved by "The three-day training schedule"?

Mr. Hussain aimed to create a training program for staff members at all levels after recognizing the organization lacked employee training plans. Mr. Hussain was aware that optimizing their workforce through rigorous training and development is the only way for HG markets to significantly increase workforce productivity and boost employee retention (Baharin et al., 2018).

Did Integrating Diversity into the Company Pay Off?

Mr. Hussain observed that his company was not diverse, that the majority of his employees were young and men and that diversity plays an important role in sustaining employees and increasing company productivity. He understood that diversity goes beyond just being black and white. Diversity transcends boundaries of age, race and gender. He educated his HR⁷ team on how each generation influences the workforce. For personal connection, independence and the inquisitive/expressive nature of opinions, he provided advice on how to adjust one's work style to these unique traits. He counselled managers to understand that hiring a diverse staff is no longer optional; rather, it is essential to the success of their company because the diverse workforce's arguments for competitive advantage give them fiscal legitimacy. These arguments contend that a diverse workforce may in fact give a business a competitive edge because it promotes a greater understanding of the tastes and customs of various societal groups. In order to value and accommodate a diverse workforce along with its unique qualities, Mr. Hussain advises his managers to offer professional development courses that will not only strengthen basic job abilities but also soft skills and emotional intelligence. In order to foster organizational morale and achieve business success, he also taught his workforce that in a multigenerational and multicultural workplace where workers from different backgrounds interact, there must be a shared understanding of respect for and appreciation of everyone's diversity Figure 6.

The Melting- Pot Theory of Multiculturalism

Mr. Hussain used "The Melting-Pot Theory"⁸ to build on the concept of diversity. According to the "melting pot" idea, combining various cultures will result in a new product that is significantly stronger than the sum of its parts and has additional benefits, much like when metals are heated to a high temperature. Similarly, if a corporation uses the melting pot effect, unique ideas and talent will emerge from diverse cultures, increasing the organization's production and creativity. The diversity that Mr. Hussain and his team successfully adopted and managed allowed them to identify and address complicated business issues that did not correspond to the prior orthodox business model.

Egalitarianism and fun breaks

Egalitarianism⁹ and enjoyable breaks were introduced into the workplace by Mr. Hussain in order to keep employees interested in the company's culture. After conducting surveys, he discovered that many of his employees had from superiority complexes, which had a negative impact on the company's productivity. In order to eradicate this complex from his workplace, he taught his employees the egalitarianism principle which essentially means that everyone is equal and deserves the same rights, respect and opportunities. What he noticed in company’s culture that staff members carry their superior bags regarding this behavior Mr. Hussain said the following:

“You never ask your team to do something you wouldn't do yourself”

He knew that real teamwork and open communication between employees are easier to foster when boundaries between organizational levels and work roles are downplayed and without these obstacles, conversation and information would flow more efficiently. Mr. Hussain planned leisure activities such as trips to the north, movie outings and rare parties because he believed that having enjoyment with each other helps to establish reverence and that when people treat each other with regard, they work efficiently together Figure 7. The barriers between individuals were broken down through egalitarianism and fun breaks. Managers were easier to reach and communication was enhanced. They helped foster the company's culture by developing passion, a sense of urgency to satisfy customers and, eventually business success.

How did communication and sharing information impacted the turnover rate?

Mr. Hussain former CEO of Harvest Groups, put it this way: “To have any expectation of success, people must be aware of what is expected of them. They must be aware of what the customers want so they can satisfy them. They require details!” in addition to outlining the company's mission and strategy, he gave the managers instructions on how to set goals and performance standards, provide reviews and guidance and hold themselves fully accountable for achieving their objectives.

After every board of directors meeting, Mr. Hussain began to host a catered staff brunch to disseminate information regarding policy actions, outcomes and developments. Additionally, he makes sure to discuss the goals of his business at least five times in the first two weeks of each quarter. He stated that doing this will lessen politics and frustration while also assisting people in achieving their aims. People must be aware of what is anticipated of them prior to beginning any endeavor Figure 9. Then, information regarding both favorable and unfavorable outcomes aids in the understanding of accountability by employees. Knowing the benefits of their actions can inspire them and learning about the drawbacks can help them grow. Employees require accurate and current information in order to make wise decisions in a culture where their rewards are determined by performance.

Rewards and Recognition

Mr. Hussain offered to start wages and salaries that are above market in order to retain the most employees, adhering to a reward-giving pattern utilized by some rapidly expanding networks. He gave relatively high starting pay and performance-based bonuses make up a large portion of an employee's overall income. Employees used to receive bonuses once a year, but Mr. Hussain began providing bonuses three or four times annually to keep everyone motivated throughout the entire year.

He believed that there are rewards besides money. Many people think that providing employees basic recognition is the kind of incentive they seek. He taught his team that doing so will encourage them, saying that "people want to feel like what they do matters and only recognition will give them this sense."

To reward staff and encourage competition among them, he developed titles like "Employee of the Month," "Business Director of the Month," and "Trader of the Month." He also instituted a car scheme for managers, which they will receive after being promoted to senior market manager positions. He advised his team to them to reward workers for doing a good job and acting in a way that reinforces the company's vision and strategy Figure 10. He instructed them to determine what motivates their staff and then provide it to them. This may be money, but it could also be things like time, care and recognition that are provided at no cost. Mr. Hussain advised “Remember that you get what you reward, so make sure to recognize performance that is in line with the strategy and mission” Figure 7.

Was Mr. Hussain able to retain employees and make up for lost productivity?

Mr. Hussain had understood and pin-point the causes behind increased turnover rate and productivity loss, he proposed various strategies and recommendations. The outcomes after the successful implementation were positive turnover rate of HG Markets private limited was reduced by implementing the retention theories within the organization. The recommendations were taken into consideration. And hence the HR department was successful in retaining its employees for a longer period of time. This increased the work efficiency and profitability of company by reducing the costs used on frequent hiring (Ramlall, 2004).

End Notes

¹Economic Reforms Act: An Act to provide for furtherance and protection of economic reforms.

²The name "KPMG" stands for "Klynveld Peat Marwick Goerdeler" KPMG is a provider of professional services, including audit, tax and advisory.

³Harvest AMC Services: Annual Maintenance contract services.

⁴PMEX: Pakistan Mercantile Exchange.

⁵HG: Harvest Groups.

⁶HR: Human Resources Management Team.

⁷HR: human resources management.

⁸The melting pot theory: It was first used as a metaphor to describe the union of many, cultures, and ethnicities.

⁹Egalitarianism: All people are equal and deserve equal rights, respect, and opportunities.

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Received: 26-Mar-2023, Manuscript No. jiacs-23-13388; Editor assigned: 28-Mar-2023, Pre QC No. jiacs-23-13388(PQ); Reviewed: 11-Apr-2023, QC No. jiacs-23-13388; Revised: 25-Apr-2023, Manuscript No. jiacs-23-13388(R); Published: 02-May-2023