In that developing world, businesses are in continuous progress and employees are considered as an important factor in the progress of organizations because goals and objectives are only accomplished by effective working of employees. They are also valued by many of the companies for their efficient performances. But not all of the companies do that as they do not appreciate more to those workers who are mainly responsible behind the success and they are often treated same as the other workers with less work or a little bit more from their duty (Huselid & Becker, 2011). Employees need motivation and incentives for their extra performance that is sometimes unintentionally driving away by most of the organizations because they do not distinguish between employees with high performances and the other with the average production and less benefit to the company. The differentiated workforce is a business strategy that is used by a company to make difference between employees according to their efficiency of performances. The value of employees is loved by this strategy and it also leads to increase unequaled success of an organization.

Significance of a position in an organization is utilized by a differentiation workforce strategy that leads to determination of allocation of other resources and performances that are assigned to employees. Every employee is performing different duties according to its capability even employees with the same responsibility can have different levels of performance because of different levels of loyalty and motivation for success of company (McDonnell & Anthony, 2011). Extra performance of these employees leads to fast success of the company so it is important to spend extra effort on defining job duties.

Main body of Differentiated Workforce

Workforce differentiation of Differentiated Workforce

It is a strategy and a process of a company according to which individual employees are identified and rewarded according to the different levels of their performances and potential for development of business with the level of its impact on business. This is an important strategy to get long term benefits for the company (Becker, E., & Beatty, 2009). Actual impacts of performances of employees on company are required to be identified by managers to achieve workforce differentiation and these are:

The success of the workforce of Differentiated Workforce

These are cultures of an organization, behaviors, and competencies that leads an organization to drive operational, financial and customer strategies that can increase success of an organization in more effective way.

Workforce culture and mindset of Differentiated Workforce

Employee behaviors are shaped by cultures and employee behaviors also lead to change culture accordingly. The culture of an organization is having impact on the success of business that can be measured and accessed in terms of financial profit of the organization (Xiaolang & Hongli, 2015).

Workforce competencies of Differentiated Workforce

Knowledge of the employees and their skills and abilities are expressed by level of competency in the organization. The competency level for every employee can be identified and analyzed.

Workforce behaviors of Differentiated Workforce

There must be a consistent way of behavior among leaders of the company and its employees for execution of the strategy. The behavior of employees and level of relationship among employees and leaders can be analyzed and measured to assure working of them according to strategy suggestions and standards.

Why we use differentiation workforce

Differentiation workforce strategy is important for an organization to analyze its significant employees that are working potentially for the success of the company. It has been analyzed that the business that does not consider differentiation workforce strategy is not working properly because its employees are not motivated by giving rewards on their performances that create a problem in the development way. Internally diverse workforce strategies can lead to use strategies in different ways as different departments of the organization can use different strategies (Stirpe & Revilla, 2014). This strategy is used to provide optimistic and long term benefits to the company. The other strategy named as employer of choice strategy is also not the best strategy and can only be helpful when right employees are attached to business and the wrong ones are doing other works.

However, the differentiation workforce strategy is analyzing employees according to their high and low performances that have been proved effective for the company. Businesses can underperform if level of performance is not analyzed properly as it can let to leave employees doing their high level of performance beyond their duties. It is providing strategic advantages to the company and can lead to increase overall performance of the company

Benefits of differentiation workforce

It is getting difficult to get a higher position among other competitive companies and to get more customers in the target market because of the increase of competition in similar product formation. In that situation, differentiation strategies are helping companies by conveying messages to their customers that they are getting best possible products by them that can accomplish their requirements (SHAN, Yu-hong, & KE, 2015). Workforce differentiation strategy is applied to get more success by its long term benefits and these advantages are discussed as:

Motivation of Differentiated Workforce

Employees are the foremost priority of any organization that is working deliberately to accomplish set goals and objectives of an organization. They are most prioritized by many of the companies. Different employees work according to their knowledge, skills, and capability that leads to success of company in different ways (Skudiene & Auruskeviciene, 2012). When performance of employees is analyzed under workforce differentiation and they are rewarded according to their level of performance, they get motivated to do more work in better way. In case if they are not differentiated and not appreciated, it can lead to decrease in their capabilities because of providing no difference from other employees working at average rates. Motivation can increase their existing capabilities that can increase their strength to perform better.

Motivation for others of Differentiated Workforce

Rewarding is an efficient system but on a fair basis. With the differentiated workforce, employees are provided by rewards for their motivation according to the level of performance. It differentiates them from other employees that are working average or below average. This reward system also motivates them to do extra for company and they are also get motivated as they also wish to nominate for performing better and more than their responsibilities (Zhou & Liu, 2012).

Long term benefit of Differentiated Workforce

Differentiating employees according to their level of work provide long term benefits to the company as it leads to increase in profitability rate that leads to getting high economic position. This culture of differentiation has positive and long term impact on other employees and increase income level of company.

Loyalty increase of Differentiated Workforce

The workforce differentiation strategy leads to increase in loyalty of its employees as well as its customers. Because of providing value to employees on their high-level performances they get more loyal to the company and their high level of production also leads to production according to requirements of customers that accomplish their satisfaction (Skudiene & Auruskeviciene, 2012). This factor is also providing competitive edge to the company because of satisfactory employees and satisfied customers that lead to increase their profitability rate at continuous level.

Increased performances of Differentiated Workforce

Employees working in an organization can continue to work with the same level of responsibilities that are assigned to it if there is no source of motivation but once they get motivated for their extra level of performance from their responsibility, they can increase their performances on continuous basis to get more and more rewards as appreciation to provide the energy to do better for the company. The overall performance of all employees can also be increased by it as they also get motivated by one employee and overall performance of the company is increased.

Competitive advantage of Differentiated Workforce

Better performance of employees by providing them rewards on basis of their increased level of work make the image of the company and provide competitive advantage as because of its skilled employees and increased performance rate, they get a competitive edge in comparison to other companies manufacturing the same product in the targeted market (Zhou & Liu, 2012). This can lead to success at faster rate as compared to other companies in the target market.

Fast rate of achievement of Differentiated Workforce

There are set goals and objectives of a company with the set time for their process and accomplishment but with the strategy of workforce differentiation, it has been analyzed that goals can be achieved in shorter period of time because employees know that they can get rewards when they perform better and faster than other employees that lead to success of goals in shorter period of time and provide increased rate of profit to the company (Stirpe & Revilla, 2014). Employees would not work faster and more efficiently if they know they would be treated the same as the other employees with average work efficiency rate that could lead to underperformance of the organization.

Challenges to workforce differentiation

Perspective challenge of Differentiated Workforce

Managers are required to think about the shift of their workforce as they are required to apply minimum cost with the use of primary resources to develop the organization and for the creation of the image of the company.

Metric challenges of Differentiated Workforce

It is required by managers to develop metrics that can help and assess the execution of workforce differentiation strategy. It is required by the human resource department and managers that there must be focus on workforce distribution with the focus on functions of human resource management (Huselid & Becker, 2011). Their main focus must not be only functions of development of company but the development of employees as well so company can progress in more effective way.

Execution challenge of Differentiated Workforce

Managers are involved in it that uses workforce data so the quality of decision can be improved to get success in business.

There is an unmentioned challenge that is related to the right competencies in the leadership and staff of human resource so different strategies can be accomplished in different ways. Effective leadership and HR team with skills and effective business strategies must exist and it is also important for development of differentiation workforce strategy (Xiaolang & Hongli, 2015). There is need to develop these strategies so company can develop in more progressive way and can accomplish with all of the effectiveness strong assistance at professional level is must require for efficient level of development.

How it can be developed

The strategy of execution derived by workforce differentiation of Differentiated Workforce

There is a need for three strategies so workforce differentiation strategy can be established and can provide success to the company in many ways. This strategy is required to establish profitability rate of the company and increase competitive image of the organization. These strategies are:

Business strategy

A workforce strategy

HR strategy

Skilled employees according to the requirement of the company can only be accessed when there is high reward for performance of employees. Applicants with fewer skills are discouraged to apply because they know high punishment levels for not performing well for the organization (Xiaolang & Hongli, 2015). In that case only employees with high professional skills and employees of choice are attracted to the company that is helpful for the organization and only smarter employees are courage to apply for the position in company. The gems are found by the former through investing time and sources and in return they will make your recruitment and efforts more productive and valuable. The effective outcomes that can avail are:

Execution of business strategy improves.

The value of shareholders is increased.

Strategic workforce issues are followed by strategic managers as they notice all of the financial issues.

Workforce investments are determined by line and human resource managers that are important to focus instead of noticing the latest fad.

Investment in the workforce is targeted where there is requirement to have effective results.

All of the HR processes will be under strategic focus and they are not efficiently focused at the administrative level.

Strategic contribution towards the establishment of workforce will be effectively measured and noticed that can effectively contribute to success of the company.

Conclusion of Differentiated Workforce

Workforce differentiation strategy is an effective strategy that is helping an organization to differentiate employees according to their level of performances and they are rewarded according to their level of performance that is beyond their jobs and responsibilities that are suggested to employees. It not only motivates them to do effective work at greater rates but also provide long term benefits to company as it provides effective level of increased profitability. It also provides motivation for other employees to do better for the company. Employees are provided with incentives that can provide the extra level of motivation for their success as it can develop level of confidence. It can be concluded that it is an important strategy to attract skilled workers as company has increased level of competitive image that is attracting more skilled customers. The entire situation is tackled in strategic way by workforce differentiation that is helpful for the company to take things in manner.

References of Differentiated Workforce

Becker, E., B., & Beatty, M. A. (2009). The differentiated workforce: Translating talent into strategic impact. Harvard Business Press.

Huselid, & Becker, M. A. (2011). Bridging Micro and Macro Domains: Workforce Differentiation and Strategic Human Resource Management. Journals of Management , 421-428.

McDonnell, & Anthony. (2011). Still fighting the “war for talent”? Bridging the science versus practice gap. Journal of Business and Psychology, 169-173.

SHAN, Yu-hong, & KE, F. Z.-l. (2015). Spatial and temporal variability in efficiency of arable land usage and differentiated regulation of agricultural workforce in Hubei province. Journal of Applied Sciences, 8.

Skudiene, & Auruskeviciene, V. a. (2012). The contribution of corporate social responsibility to internal employee motivation. Baltic journal of management, 49-67.

Stirpe, L., & Revilla, J. B. (2014, July ). Differentiating the workforce: The performance effects of using contingent labor in a context of high-performance work systems. Retrieved November 2019, from researchgate: https://www.researchgate.net/publication/262193991_Differentiating_the_workforce_The_performance_effects_of_using_contingent_labor_in_a_context_of_high-performance_work_systems

Xiaolang, L., & Hongli, L. S. (2015, September ). Workforce Differentiation and Human Resource Management Practices: An Exploratory Research in China. Retrieved November 2019, from researchgate : https://www.researchgate.net/publication/292388962_Workforce_Differentiation_and_Human_Resource_Management_Practices_An_Exploratory_Research_in_China

Zhou, & Liu, Y. Z. (2012). A hybridism model of differentiated human resource management effectiveness in Chinese context. Human Resource Management Review, 208-219.