Its an essay based on the case study given in the assignment. Discuss the key factors in play in the competition for skilled and values employees in today's globalised business world. In your discussion, you should refer to the concept of human capital and accounting for human capital investment (ROI - Return on Investment), using the case study as a point of reference. You should situate your discussion in terms of the Strategic Human Resource Management (SHRM), Human Resource Planning and the Resource Based View (RBV) of the firm.Case Study: Encouraging and supporting professional development: How much is too
much?

Rachel is the HR manager for Callan, Brownrigg and Marsh (CB&M), a large and prosperous accounting and consulting firm doing a variety of accounting, auditing and business strategy work for corporate clients at the big end of town. Their team of about 200 accounting professionals are all qualified, either as CPAs or as chartered accountants.The company recruits a new intake of accounting graduates every year, usually 10 to 12 people.

Graduates are expected to commence professional studies with CPA Australia or the Institute of Chartered Accountants wiathin a year of joining the company, and to successfully complete their professional studies within three years. Completion of the professional study program makes them fully fledged CPAs or chartered accountants. Once fully qualified, employees are expected to maintain their professional status by undertaking the required amount of continuing professional development (CPD) each year, currently 30 hours.
In addition, more experienced accountants are encouraged to undertake further postgraduate studies, such as an MBA, to enhance their knowledge of business strategy.

Traditionally, people have funded their own studies and CPD activities, and have done them in their own time. This has been an accepted part of the culture at CB&M, and a way of demonstrating commitment to the profession and to the company. People who do these things successfully are considered to be in line for a partnership at some point in the future.

In the last two years, however, turnover has increased markedly, especially among younger employees, and the labour market for both graduates and experienced accounting professionals has become very tight. In fact, in the last 3 years CB&M have lost 12 valuable, fully qualified accountants, several with extensive experience to overseas opportunities and several to rival firms at home. In addition, two of last year's new batch and two from earlier batches of graduates have left for jobs with rival firms who seem to be intent on poaching the brightest and best. Such firms and other large corporate employers have been offering incentives for the last few years, including financial subsidies and time off work to undertake professional studies and CPD and to complete MBAs or other relevant postgraduate programs.

Rachel estimates the loss of a fully qualified accountant costs CB&M some $150,000 in direct costs (recruitment and training) and possibly $500,000 in indirect costs (loss of productivity, increased overtime etc.). The loss of a graduate trainee is certainly not so significant, but Rachel estimates that, on top of the replacement costs of $150,000, there will be indirect costs of another $150,000 per graduate. She has discussed these figures with the Finance Manager and they are in broad agreement.

In order to better compete in the marketplace and reduce the cost drain of turnover, Rachel has put forward a policy proposal designed to make CB&M a leading firm in terms of professional development. The proposal includes provisions for:

• full funding of professional accounting studies (up to $10,000 per person with an estimated 50 staff participating in any one year),

• full funding of MBA or other relevant studies (up to $30,000 per person with an estimated 10 staff participating in any one year),

• 60 hours per year paid study leave, which can be taken at any time (e.g. on a regular basis to attend lectures and/or in blocks), and

• full funding of up to 30 hours a year of CPD activity (up to $5,000 per person per year).

The estimated direct costs are $800,000 per year, plus about another $100,000 in indirect costs (i.e. paid study leave). The firm's partners are divided over the proposal. Some feel that it will have a positive effect on their ability to compete in the labour market and on employee commitment and turnover. Others believe that it is not justified, too costly and too risky. Rachel has been invited to a special meeting with all partners to discuss the proposal in more detail. She knows that the focus on interest of the partners will be on the dollars - after all, they are all accountants!! So she needs to prepare her presentation with care, in the form of a business case that justifies the level of investment inherent in her proposal.

Source: Adapted from Fazey, M 2011, Cases in HR practice and strategy, Tilde University Press,
Prahran VIC, pp. 70-71.

Assesment: Essay

Assessment: Discuss the key factors in play in the competition for skilled and values employees in today's globalised business world. In your discussion, you should refer to the concept of human capital and accounting for human capital investment (ROI - Return on Investment), using the case study as a point of reference. You should situate your discussion in terms of the Strategic Human Resource Management (SHRM), Human Resource Planning and the Resource BasedView (RBV) of the firm.