(Solution) (AC1.2) Explain the impact of changing labour market conditions on resourcing decisions

Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. 

Word count: Approximately 400 words

With a tight labour market where there are more job vacancies than workers, ParcelCare may find it difficult to attract and retain talent. Larger expenses could be required by the company as a result of increased competition which would have to offer higher salaries, greater benefits, and better opportunities for development (Boys, 2024). This could also increase the time spent on recruitment, delaying operational needs. On the other hand, a loose labour market with an excess of candidates will make it easier for ParcelCare to be selective, thus decreasing the associated recruitment costs and rising the probability of hiring high-skilled candidates (Ryder, 2024). However, this could result in over-staffing if resourcing is not well planned.

The Rise in Flexible Working Arrangements

The growing demand for flexible working arrangements can significantly impact upon ParcelCare’s resourcing decisions. If the company does not adapt to these trends, it will become less attractive to potential hire and especially to younger workers that value work life balance heavily (Puri-Mirza, 2024). Therefore, ParcelCare should offer more flexibility in their delivery roles, for example part time schedules. This could help increase employee satisfaction, decrease turnover, and diversify the talent pool. The use of technology to accommodate flexible work pattern would also streamline operation and increase productivity.

Fewer Older People in Work

Experienced employees retiring early could reduce older workers in the labour market and create a skills gap for ParcelCare. ParcelCare can create initiatives to retain older workers, like phased retirement or mentoring roles. These measures will support intergenerational collaboration while enabling knowledge transfer. Moreover, the resourcing decision should involve attracting the younger talent through entry level training programs or apprenticeship schemes to close any gaps that emerge (CIPD, 2024b). In addition, workforce planning must focus on prioritising reskilling and upskilling initiatives to ensure sustainability in the talent pipeline and operational efficiency as a result of shifts in the demographic in the labour market.

Legislation Regarding the Hiring of Local Workers

ParcelCare’s recruitment strategies are directly influenced by compliance with local hiring laws like quotas or incentives to hire nationals. Partnerships with local employment agencies or targeting of specific advertising will likely be necessary under these regulations. To accommodate for this, ParcelCare might have to enhance investment in tailored training programs to upskill local candidates lacking prior experience to meet the operational requirements (Beynon, 2022).  In addition, compliance with these regulations reduces legal risks and improves ParcelCare’s reputation as a socially responsible employer.