-75%
Solution
A loose labour market is one with relatively high unemployment and readily available workers seeking employment, making it easy for employers to find and hire staff. With a larger pool of potential employees to choose from and a “looser” labor market, ParcelCare may have greater say in resource allocation. There is less of a need for wage and benefit increases since there is an abundance of qualified applicants rather than a shortage of workers (Bates, 2021). As a result, they would be under less pressure to artificially inflate pay in order to cover open positions. With a wider pool of applicants, ParcelCare might be able to exercise greater discretion in its recruiting practices. Employees may be less inclined to look for substantially greater wages elsewhere, which could make retention simpler. There may be an excess of applicants with the incorrect abilities for ParcelCare’s requirements in a highly loose market with significant unemployment.
A ‘tight’ labour market
A tight labour market has low unemployment and few available workers seeking jobs, making it difficult for employers to find and hire qualified candidates as evidenced bhy CIPD (2023). The resourcing decisions made by ParcelCare could be greatly affected by a “tight” labor market, in which the demand for workers exceeds the supply. Competition among firms for limited talent is heating up as the demand for workers outstrips the supply. With increasing competition for a smaller talent pool, they may find it even more difficult to attract and employ staff. In order to attract additional members, they may be compelled to raise salary and perks significantly.
The following are three conditions influencing the labor market and an explanation of their effects:
Fewer older people in work- The battle for younger workers will heat up as the baby boomer generation begins to retire in droves as evidenced by Hertzog (2023). To attract members of Generation Z, ParcelCare may need to rethink its recruitment techniques and place more emphasis on growth, social change, and empowering work. Planning ahead is necessary to ensure that benefits and schedules are appropriate for people of all ages. Specific succession planning and the transfer of knowledge are required to replace the loss of experienced workers due to retirement.
Legislation regarding local hiring- Changes to ParcelCare’s resource allocation strategy may be required by regulations pertaining to local hiring quotas. More local drivers and warehouse workers may need to be hired, and training programs should be expanded, in order to meet strict labour laws. Nevertheless, there is a danger of a skills gap if you just recruit from one field. In order to meet the demands of local businesses, it is possible to build pipelines of competent individuals through partnerships with local educational institutions to establish career programs.
Rise of flexible working arrangements- Implementing remote work or flexible scheduling when responsibilities allowed will help ParcelCare access bigger talent pools, which is especially important given the increasing need for flexibility among workers (Panel, 2024). Jobs for people with impairments or caregiving duties become available as a result. Alignment, responsibility, and cooperation across dynamic teams necessitate process changes from upper management. The likelihood of keeping valuable staff is enhanced when they are offered flexibility.
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