A lack of smooth transitioning in leadership positions because HR plans, replacement and succession plans are not developed;.
The inability to specify and track competencies required for the business functions because the firm has no descriptions of job requirements;.
High recruitment costs, long cycle-time to fill jobs and the inability to attract qualified job applicants because the evaluation of recruitment sources and methods are absent;.
High selection costs because selection criteria are not formalized and the selection instruments are not validated;.
A lack of preparedness for the firm to compete in the future because it does not provide training and career development opportunities for employees to be equipped with the needed competencies to succeed on the job and to move into higher value-added roles;.
A lack of organizational competitiveness because compensation programs are not attractive and do not provide incentives for individuals to improve their performance; and .
A lack of efficiency because of the inability to use technology to automate mundane HR processes or to retrieve information quickly for decision making.
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Relationships Between HRM Practices and Employee Turnover.
In order for firms to be competitive, they must retain their competent and motivated employees. One important area that affects employees' intentions to leave, their levels of job satisfaction, and organizational commitment is the organization's HRM practices (Lee & Heard, 2000). For example, firms that do not select the right employees to begin with may not be able to keep these employees in the long run because of low employee morale arising from a poor job fit. Also, firms that do not socialize new employees into their jobs and/or the organization may not be able to cultivate from them, a sense of loyalty and commitment to the firm because of the lack of attachment demonstrated by the firm to the newcomers.
