Problem:
For the SEIIC scenario below, answer the following questions:
1. Identify major trends that are likely to affect a company such as SEIIC.
2. Provide insight in the following areas by identifying at least three significant issues or trends for EACH area:
A) Economic and financial (3 significant issues or trends)
B) Legal and political (3 significant issues or trends)
C) Social and cultural (3 significant issues or trends)
3. Discuss how these trends will affect SEIIC. Be specific in linking the trends that you identify with specific areas of HRM (e.g., employment, managing diversity, training and development, performance management, compensation and benefits, health and safety, and international HRM) implications to the trends that you have identified.
Scenario:
Savannah Engineering, Inspection and Insurance Company (SEIIC) is one of America's oldest insurance companies specializing in equipment inspection and insurance for companies in the manufacturing, transportation, and energy sectors. Founded in 1873 and named for the first steam-powered ship to cross the Atlantic, SEIIC has grown to become a global leader in the application of engineering principles to safety and risk management. With more than 4,500 employees in 14 principal offices and 55 field locations around the world, SEIIC stands ready to meet industry needs on any continent.
More than 50% of the SEIIC employees have an engineering or technical background. Accordingly, college recruiting and training are major features of the HR program. Although SEIIC has been known as a great place to work, turnover/retention issues need constant attention in the highly competitive labor market for technical personnel. In the past, the company was also known for outstanding customer service and for building long-term relationships with its many business partners. However, this image has slipped in recent years as the company and market have undergone significant change in the post-9/11 world and the company has struggled to respond in effective ways. As a result, SEIIC has decided to undertake a complete updating of its human resources management practices.
To accomplish this effort, the company wants to investigate emerging trends in HR and to identify best practices for major HR processes. To accomplish this investigation, the company has divided the project into five components as follows:
- Exploration of the business, legal, and financial environment
- Trends and best practices in recruiting and staffing
- Trends and best practices in HR development-training, performance management, and career management
- Trends and best practices in compensation and benefits
- Trends and best practices in international HR management
Finally, a recommendation will be made to the Senior VP for HR that summarizes the key trends and makes specific recommendations for practices to be adopted by the company in its new approach to HR management.