Question
The manager of the people practice team is looking to learn more about the labour market. They have asked you to prepare a poster presentation for the forthcoming monthly team briefing. Your manager wants you to research the labour market trends, focussing on the best practices of an organisation named “SAP” who won the Employer Brand Management Awards in 2019 in five different categories.
The poster presentation must include:
- An explanation of how “SAP” strategically positions itself in the competitive market place. Focus on the characteristics of employer of choice, employer branding and organisational image, and how these can be applied to OcMara. (AC1.1).
- An explanation of the changing labour market conditions and its impact in the UK. Make sure to discuss the differences between tight and loose labour market trends, focussing specifically on the energy sector. Your explanation should also include the decisions energy companies are taking in relation to retention strategies, recruitment methods and skill shortages in this sector caused by recent global crisis (AC1.2).
- A discussion of the role of the government, employers and trade unions in ensuring future skill needs are met in the UK global energy sector (AC1.3).
Solution
AC1.1 Labour Market and Competitive Positioning
Using the meaning in Investopedia (2021), the labour market is the area of interaction of employees and employers. Also, CIPD (2021a) identify labour market as evidenced by different people working independently (employment), number of hours worked and unfilled job opportunities. In order for an entity to leverage on existing opportunities in a labour market, strategic positioning is core for RML.
AC1.1 Theories of Strategic Positioning
Different practices and initiatives are appropriate to ensure organisation appropriate positioning. This is identified by CIPD (2021a) as strategic positioning which create a possibility of an organisation to differentiate itself. In RML, this is in line with value creation and its distinct nature.
By referencing on Ansoff’s Matrix (CFI, 2021a), organisations increase overall sales of available products in a particular market. The Miles and Snow’s Strategy (Haj Youssef & Christodoulou, 2017) evidence the extent of organisations in a general focus highlight stabilised patterns for strategic behaviours to accomplish relevant alignment.
AC1.1 Tools for Competitive Positioning
Employee life cycle– According to Sprigghr (2020), the relevant stages are attraction, resourcing, onboarding, development, retention and exit. For these stages, RML would appropriately positioned in working in uniqueness in their labour market and as such good position.
Employees value proposition– This is noted in MichaelPage (2021) to entail unique assigned gains by an employee based on their skills, capability level and experience. In RML case study, a strong employee value proposition is relevant to assist retention of best employees.
Becoming an employer of choice– As evidenced in Higgs Model, organisation position in competitive labour markets is through being an employer of choice an integration of good rewards and appropriate treatment from employer (PMJobs, 2019). For RML Beverage Drinks, being an employer of choice would lead to being ranked is in line with AwardList (2021) which offer conclusive information regarding 100 great place of working.
AC1.2 Changes in the Labour Market
For a labour market, there prevail varying conditions with a direct implication on resourcing strategies. According to Merkel (2019), these strategies categorise labour market conditions as tight or loose. In UK where RML operates, the tight labour market is a phenomenon where immense opportunities are readily in existence with employees to fill them being scarce for occupying these positions.
AC1.2 How changes in labour market impact resourcing decision
For establishing labour market condition for an organisation operation, carrying out PESTLE analysis and Balanced Scorecard is instrumental. As highlighted in PESTLE analysis in this slide for UK, political factors including Brexit and COVID-19 pandemic have had immense effect on the economy. For RML operations, the outcome of this has been prevalent of skills mismatch and the population being impacted socially. Through an embrace of technology, gig economy represent the current trend in contemporary business environment influencing achievement of sustainable business practices. In line with CIPD (2021b), UK government has harnessed enacting Equality Act 2010 with the employees being safe from any discrimination owing to their protected characteristics which is also applicable for RML case study operations.
AC1.2 Impact of changes in labour market on resourcing decisions
To summarise this concept, it can be argued that resourcing process for the most successful employee is affected by loose labour market with multiple employees existing leading to a lot of applications. In RML organisation, the pay is reduced with a complex approach for employees resourcing being the preference.
On the other hand, for tight labour markets, attracting highly qualified talents is a competitive process with employees retention being critical specifically for RML organisation. This leads to wages being pressurised upward with need for sustainable employee value proposition being clear.
AC1.3 Government’s Role
The mandate of the government is instrumental as noted in CIPD (2021c) as inclusive of creating sustainable growth, increasing social inclusion level and social mobility.
Further, by offering funds to apprenticeships, governments fund the 95% while an employer facilitate remaining 5% levy (CIPD, 2021d).
Also, government ensures that T-levels learning is attained which present employees with an opportunity for learning on their job performance for approximately 315 hours.
AC1.3 Employers Role
By establishing trailblazers in a business environment, this indicate that the employees in optimum gain in terms of capacity growth.
They represent employer-guided groups to establish apprenticeship standard levels for a set job functions in a sector. By achieving this facilitation, employers make sure employees are accessing relevant opportunity for career growth and job role enrichment.
In onboarding stage of employment lifecycle, good opportunities to acquire skills are offered by the employer for career growth.