9.
Discuss the process and challenges involved in recruiting and
retaining employees in industrial co-operatives.
Introduction of recruitment
Recruitment is the process of attracting, identifying and
encouraging candidates to apply for job openings. Selection
involves choosing the best candidate from the recruited
[Link] of Recruitment,Internal Recruitment involves filling
vacancies with existing employees. Methods include
promotions, transfers and internal job postings. Example a
company promoting a supervisor to a managerial [Link]
Recruitment: Hiring candidates from outside the organization.
Methods include job portals, recruitment agencies and campus
recruitment. Example a Tanzanian bank recruiting fresh
graduates from university :
The following are the process/ steps in recruitment
Application Screening; This is the initial review of job
applications, CVs, and cover letters to shortlist candidates who
meet the basic qualifications and requirements of the
[Link] For a government job under the Public
Service Recruitment Secretariat (PSRS), applications are
screened to ensure candidates meet academic qualifications as
per Nacte or TCU standards. For example, a Bachelor’s Degree
in Public Administration may be required, and those with
unaccredited institutions are disqualified.
Initial Interview; This stage is used to assess the
candidate’s general suitability, including communication skills,
motivation, and basic technical [Link] In NGOs
like BRAC Tanzania or World Vision Tanzania, initial interviews
often assess a candidate’s passion for community work,
understanding of local languages (e.g., Kiswahili and English),
and general problem-solving skills.
Testing and Assessment; Aptitude tests, technical
knowledge evaluations, or personality assessments are
conducted to gauge the candidate’s capability and
[Link] :For roles in Tanzania Revenue Authority
(TRA), candidates may be given accounting or tax compliance
tests, including questions on VAT returns, PAYE computation, or
knowledge of TRA systems (e.g., TANCIS or EFDs).
Final Interview: This is a deeper, structured
interview, often with senior management or a panel, focused on
behavioral and situational [Link] At a Tanzanian
bank such as CRDB or NMB, final interviews may involve branch
managers and HR heads asking scenario-based questions
like:“How would you handle a situation where a client
complains about poor service delivery?”Or“Tell us about a time
you had to meet strict regulatory requirements.”
Background Check: References are contacted, and
verification of academic and professional credentials is
[Link] Employers often verify university degrees
through HELSB (Higher Education Students’ Loans Board) to
confirm study history. Some employers might also consult
former supervisors or conduct checks through the National
Identification Authority (NIDA) to confirm identity.
Job Offer and Onboarding: The selected candidate
is offered the job formally. Onboarding includes orientation,
training, and signing of [Link] In a telecom
company like Vodacom Tanzania, onboarding might involve a
week of training on internal systems (like M-Pesa operations),
data privacy protocols, and compliance with TCRA (Tanzania
Communications Regulatory Authority) policies.
There is challenges that involved in recruiting and
employees in industrial cooperatives
Limited Financial Resources: Limited financial
resources refer to the challenge where industrial co-operatives
do not have enough money to effectively recruit, train, and
retain skilled employees. This is a common issue in many co-
operatives, especially those in rural areas or still
[Link] to Offer Competitive SalariesCo-
operatives may not afford to pay attractive salaries compared
to private companies or [Link]:In Mtwara, a cashew
nut processing co-operative may lose skilled machine operators
to a private exporter who offers double the salary.
Lack of Awareness and Appeal;Lack of
awareness and appeal refers to a situation where many
potential employees do not know about co-operatives or do not
find them attractive places to work. This challenge affects the
ability of industrial co-operatives to recruit and retain skilled
[Link] Public Knowledge About [Link]
young people, especially graduates, are not aware of what co-
operatives do, or they confuse them with small savings groups
[Link]:A textile co-operative in Dar es Salaam may
struggle to hire marketing officers because most graduates
seek jobs in big brands or NGOs like BRAC, TIGO, or Airtel.
Training and Capacity Issues ;Training and
capacity issues refer to the challenges that industrial co-
operatives face in improving the skills, knowledge, and
effectiveness of their workforce. Many co-operatives in Tanzania
struggle with limited access to professional training, outdated
skills, or lack of trainers all of which reduce productivity and
performance. Example Outdated Skills Among WorkersMany
co-operative workers use old methods and lack exposure to
modern tools or [Link]:In a cassava flour co-
operative in Lindi, workers may still rely on manual peeling and
drying methods instead of using modern peeling and solar
drying machines, leading to low production and quality.
Remote Location of Co-operatives;Many co-
operatives are based in rural or semi-rural areas where access
to transport, housing, and basic services is limited. This
discourages skilled professionals from applying or staying long-
[Link]:A sunflower oil co-operative in Nzega (Tabora
Region) may find it hard to retain a qualified mechanical
engineer because there’s no good housing, electricity is
unstable, and the nearest town is far.
Poor Leadership and Management;Ineffective
leadership leads to lack of direction, poor communication, and
favoritism all of which lower staff [Link]:In a coffee
processing co-operative in Kagera, if decisions are only made
by a few leaders without involving workers, younger employees
may feel excluded and seek jobs elsewhere.
Lack of Motivation and
Recognition;Employees want to feel appreciated for their
efforts. Without incentives or recognition, they feel
[Link]:In a soap manufacturing co-operative in
Mwanza, a production worker who constantly meets targets but
is never praised, promoted, or rewarded may leave even for a
lower-paying job that offers recognition.
Limited Career Growth Opportunities;When
employees feel there’s no room to grow or improve their skills,
they leave in search of better [Link]:In a
textile co-operative in Dar es Salaam, a tailor may work for 5
years without promotion or skill upgrade, and decide to join a
fashion brand that offers training and a path to become a
supervisor.
Inconsistent Workload or Seasonal
Employment;Some co-operatives can only offer jobs during
certain seasons (e.g., harvest or peak production), making it
hard to retain workers [Link]:A rice milling co-
operative in Mbeya hires workers during harvest season only
(June–August), and lets them go afterward. Workers prefer
permanent jobs elsewhere.
Political or Internal Conflicts;When there are
internal wrangles over leadership or funds, the work
environment becomes [Link]:In a cashew nut co-
operative in Mtwara, two factions fight over leadership
positions, causing delays in salary payments and poor morale
among workers.
In Conclusion, industrial co-operatives in
Tanzania face numerous challenges in recruiting and retaining
skilled [Link] overcome these challenges, co-operatives
need to invest in staff development, improve their work
environments, create awareness about their value, and build
strong leadership structures. By addressing these issues, co-
operatives can attract and retain skilled workers who will drive
productivity, innovation, and long-term sustainability.
Retaining Employees:
Employee retention refers to the strategic process and efforts
made by an organization to keep its employees from leaving
their jobs voluntarily. It involves creating a work environment
that encourages employees to remain with the organization for
a longer period through job satisfaction, fair compensation,
career growth opportunities, positive workplace culture, and
supportive management.
The following are the process of retaining the
employees in the industrial cooperatives
Recruitment and Member Induction with
Clarity of Expectations:Retention begins at recruitment. In
cooperatives, employees often become worker-members. It is
crucial to clearly communicate the cooperative’s values,
governance structure, responsibilities, and benefits before
hiring or admitting new [Link]:At Mondragon
Corporation (Spain), new hires undergo a cooperative induction
program explaining the co-op model, shared ownership, and
their role in decision-making.
Fair and Transparent Compensation System;Even
though cooperatives emphasize equity over profit, a fair and
transparent compensation system is crucial. Salaries should be
competitive enough to meet market standards while reflecting
cooperative values (e.g., reasonable wage ratios between
highest and lowest earners).Example:In many worker
cooperatives in Italy (Emilia-Romagna region), wages are
slightly below market average but supplemented with annual
dividends, shared profits, and guaranteed job security, leading
to high retention.
Democratic Involvement and Voice in
Governance: Cooperatives are based on democratic
control“one member, one vote.” Retaining members depends
on giving them a real voice in decision-making through general
meetings, committee roles, and management
[Link]:A Tanzanian industrial cooperative holds
quarterly general assemblies where all workers can propose
and vote on workplace policies. This inclusion has built a strong
sense of ownership.
Professional Development and Skills Training;
Continuous learning and training improve performance,
motivation, and loyalty. Cooperatives must invest in technical,
managerial, and cooperative education to help members grow
[Link]:Mondragon cooperatives invest in
training through Otálora, their management and cooperative
education center, providing ongoing education for worker-
members.
Clear Role Definition and Workload Balance;Each
member’s responsibilities should be clearly defined, and
workload should be manageable. Cooperatives must guard
against the overloading of individuals with multiple roles unless
properly [Link]:In a Ugandan industrial
cooperative, role descriptions were revised to avoid
overburdening members, leading to improved job satisfaction
and reduced resignations.
Conflict Resolution Mechanisms;Cooperatives must
implement fair and efficient systems to address internal
conflicts. This includes peer review systems, grievance redress
mechanisms, or conflict resolution [Link]:Some
Indian cooperatives have conflict resolution panels made up of
elected members to handle disputes impartially.
Recognition and Reward for Contributions.
Acknowledging the contributions of members, whether
through verbal recognition, awards, bonuses, or advancement
opportunities, fosters motivation and [Link]:A
Kenyan cooperative celebrates “Member of the Month” with a
certificate and public recognition in general meetings, which
has improved morale and retention.
Social and Emotional Support Systems;Since
cooperatives are often community-based, they can offer social
support like savings and credit schemes, health coverage,
childcare support, and even funeral benefits. Example:A
cooperative in Tanzania provides health support and education
grants for children of members, which helps retain older, long-
term members.
There is challenges that involved in retaining
employees in industrial cooperatives
Limited Career Advancement Opportunities:In
many cooperative organizations, the structure is relatively flat
compared to corporate hierarchies. This limits upward mobility
for employees. Talented workers often leave when they feel
there’s no clear path for promotion or personal
[Link]: A skilled manager may leave a dairy
cooperative for a private firm that offers faster promotions,
international exposure, or professional development programs.
Lower Financial Incentives Compared to Private
Sector:Cooperatives often operate on principles of equitable
distribution of profits and community welfare rather than
maximizing individual returns. As a result, salary packages,
bonuses, and other financial incentives may be lower than in
for-profit private [Link]: High-performing employees may
feel undervalued or financially constrained and may move to
the private sector, where compensation is more competitive.
Lack of Professional HR Practices;Many cooperatives
do not invest adequately in professional human resource
management systems. This can result in inconsistent
performance appraisals, unclear job descriptions, poor
employee engagement, and weak conflict resolution
mechanisms.: Without structured HR practices, employees may
feel neglected or unfairly treated, prompting them to leave.
Resistance to Change and Innovation;Cooperatives
often emphasize tradition, community consensus, and member-
based decision-making, which can slow down innovation and
change. Younger or more dynamic employees may feel
frustrated in such [Link]: An IT specialist hired
to digitize processes in a cooperative may leave after facing
prolonged resistance from senior members who prefer manual
record-keeping.
Poor Governance and Political Interference;In
many cooperative sectors, especially in developing countries,
political interference and poor governance are significant
issues. Appointments may be based on loyalty rather than
merit, and decisions may prioritize short-term political gain
over long-term [Link]: Talented staff may become
demotivated and opt to work in more transparent, merit-based
organizations.
Inadequate Training and Development:Training is
essential for skill enhancement and employee motivation.
Cooperatives often face budget constraints or do not prioritize
staff development, leading to [Link]:
Employees who feel their skills are not improving or that
they’re not growing professionally may seek better
opportunities elsewhere.
Member-Employee Role Conflict
In cooperatives, members are both owners and sometimes
supervisors of employees. This dual relationship can create
tension and confusion about authority and accountability.
Impact: Employees may feel micromanaged, disrespected, or
caught between conflicting expectations from members,
leading to job dissatisfaction and turnover.
Lack of Recognition and Motivation Systems;Due
to budget limitations or a lack of awareness, cooperatives may
not have strong systems to recognize and reward excellent
[Link]: When employees feel their efforts are not
appreciated, morale drops. Over time, this leads to
disengagement and higher attrition.
Unclear Organizational Vision and Strategy;Some
cooperatives lack a clear long-term vision or strategic plan. This
can create an environment of uncertainty and instability,
especially for professional staff who seek purpose and direction
in their [Link]: Employees may leave for
organizations with clearer goals and better long-term
prospects.
Inflexible Work Environment;Cooperatives may be
slow to adopt flexible work arrangements like remote work,
flexible hours, or wellness programs. This inflexibility can deter
younger generations who prioritize [Link]:
Employees may prefer companies that support flexible,
modern, and employee-centered work cultures.
Conclusion;Retaining employees in cooperative
industries is a serious challenge due to factors like limited
career growth, lower financial incentives, poor HR practices,
and governance issues. When employees feel undervalued,
restricted, or unsupported, they are more likely to leave for
better opportunities elsewhere. To improve retention,
cooperatives must modernize their management practices,
invest in employee development, and create a work
environment that values professionalism, fairness, and growth.
Without addressing these issues, cooperatives risk losing skilled
staff and weakening their overall performance.
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