Solution

Labour Market Trends making it hard for a company in recruiting and retaining staff needed and developments changing the situation

According to CIPD (2019a), the labour market trends are identified as the indicators of labour market activities which are applied to shape the scope of the extent in which organisations practice recruitment, retaining and individual development. For instance, taking into account the UK labour market, there exist a gradual increase in the qualified staff ready to join different positions in the workforce. As such, the available positions in the UK labour market can confidently be filled by the existing employees. As of 2019, the uneducated citizens were lower as compared to the educated citizens. Also, the working population is majorly characterised by younger employees who possess high-level qualifications as opposed to elderly employees. The elderly staff are, in most instances having skills that are not matching their careers. The recent Brexit policy in the UK has a significant influence on the strategies used by UK organisations in recruiting and retaining staff. For instance, the non-technical sectors in the UK, such as hospitality and retail sector majorly depend on the non-UK skills which are not trained. As such, Brexit implementation limiting the number of non-UK citizens entering the UK will affect the recruitment and ability to retain the employees.

Taking into account of Saudi Arabia (KSA), the labour market is substantially competitive and hence challenging for the employers in attracting and retaining employees who are Saudis. The policies that are continually changing directly affect remuneration with recruits being offered compensation that is 10% lower when compared with the average in their markets. The change of this phenomenon is evidence that organisations would eventually be better positioned on leveraging on the chance to recruit candidates at the most appropriate rates with a comparison with different sectors.

Significance of Tight and Loose Labour Markets

Tight labour markets are characterised by a situation where skills availability is insufficient. In contrast, loose labour markets have a surplus of the skills and availability of qualified staff to fill vacant positions. To affirm this, CIPD Community (2019) presented the Stephen Taylors model that stipulates that the significance of tight labour markets is that employers can enhance sustainable competitiveness in sourcing and employee’s recruitment in existing available opportunities. Also, the loose labour markets are characterised by immense existing vacancies cheaply with limited competition in existence. Also, CIPD (2019b) note that in tight labour markets, they have a high-level of bargaining power and to establish contract terms with an enormous significance of the players in the sector going for the non-contracts positions and roles that are permanent. This is, however, not the case in the loose labour markets which are characterised by employees leveraging a holistic control of all staff being recruited since there prevail immense opportunities in existence.

3.2 Short-term approaches to improving organisation’s ability to retain staff effectively

Salary and benefits-as noted in CIPD (2019c) the employee salary and benefits represent a successful strategy of attracting and retaining employees. This is since it positively contributes to the improvement of the overall employee well-being and encouraging possession of the required behaviours, high-level achievements, values and skills development. Nevertheless, there is a need to put into account distinct aspects in considering the appropriate time for introducing the salaries and benefits to ensure employees value them. This is at the same time leading to a support of individual management practices and to align them with broader business goals.

The advantages of this approach include the ability to link the incentives to performance with more expertise being tapped and as such, harnessing the process of recruitment. Also, the motivation levels of employees are enhanced. Nevertheless, the disadvantages include unsustainability of the process as it is short term and the fact that they cannot be used independently without the other retaining strategies.

Flexible working hours– this is identified in CIPD (2020) as a strategy of providing flexibility over where, when and people working hours. Nevertheless, this is significantly in demand in contemporary organisations in improving their capacity to retain staff. This is despite the number of flexible jobs in the modern business environment. To ensure that the employees are kept effectively, there is a need for the employers to put more efforts into ensuring that they are offering a flexible working environment for utmost gains of all employees and their entities.

Regarding advantages, they include a likelihood of ensuring that the employees are best positioned to carrying their roles effectively. For the disadvantages, this approach is insufficient and can only be successful when other strategies are integrated, such as career development and job enrichment strategies. Monitoring this strategy is a challenge.

3.1 Reasons why people might choose to leave their organisation and direct and indirect costs associated with this

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