Solution

Impact of Tight and Loose Labour Markets

In a tight labour market, where demand for workers exceeds supply as evidenced by CIPD (2024), ImportantParcel faces significant challenges attracting and retaining employees. Because candidates have many options now, they set their salaries higher, businesses face more competition, and it takes longer to fill job openings. ImportantParcel will probably need to pay higher wages, improve what employees receive, and simplify hiring to quickly bring on new staff.

In a loose labour market, where more workers are available than jobs, the organisation can access a larger pool of applicants, potentially at a lower cost (Bates, 2024).While it may be simpler to hire people, retaining talent matters, because job contentment and growth opportunities are essential for keeping a company’s staff for a long period.

Labour Market Conditions

i). Rise in Flexible Working Arrangements

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