-50%
Solution
- Organisations Placing Themselves in Competitive Labor Markets
ParcelCare – an experienced and trustworthy national parcel and package delivery service – has been helping customers for many years. Nonetheless, the organisation is currently experiencing serious risks in talent acquisition, attraction and retention at all levels within the firm. Newscalls, advancements and changes in the labour market, ramped up competition and high expectations from employees has lead to the problem of instability of employees. This situation is affecting the delivery of services and overall performance of organizations hence the need to find solutions to workforce deficits. In my current role of the new People Manager, I need to find out how these problems can be solved so that ParcelCare can maintain its competitive edge and still deliver excellent services across the country.
As a large organisation that recently restructured, we implemented two key strategies to position ourselves as an attractive employer. Firstly, we developed competitive compensation and benefits packages to attract top talent. Employees receive salaries above market averages as well as generous healthcare, retirement, and paid time off benefits. This allows us to recruit top performers by incentivising with above-average financial rewards (CIPD, 2022).
Secondly, we focus on career development opportunities through extensive training programs. Our employees have access to a wide range of internal and external courses to continuously develop their skills and qualify for advancement. According to CIPD (2022a), this provides exposure to various roles while cultivating new skills through hands-on experience and mentorship programs pairing new hires with senior leaders.
Comparative analysis
Employee Experience
Competitors often excel in offering comprehensive benefits, including extensive health coverage and retirement plans, which attract and retain talent. However, they also face high turnover due to burnout from demanding work environments. At KSUMC after restructuring, has focused on balancing workloads and providing robust mental health resources, ensuring a healthier work-life balance and fostering long-term employee retention.
Organisational Positioning
Employer of Choice: Competitors are often seen as employers of choice due to their advanced training programs and career development opportunities (Ottawa University, 2021). Yet, they may struggle with rigid hierarchical structures that limit employee innovation. My organisation, in contrast, promotes a culture of continuous improvement and open communication, making us an attractive option for professionals seeking growth and flexibility.
Employer Branding: While competitors have strong global brands recognised for excellence, they can suffer from inconsistent employee engagement. KSUMC’s employer branding efforts emphasise a supportive and inclusive culture, reflected in our transparent communication and active employee feedback mechanisms, enhancing our attractiveness as an employer.
Organisational Image: Competitors boast a polished, high-profile image but sometimes face criticism for ethical lapses or a lack of corporate social responsibility.
ParcelCare’s reputation is founded on reliable service and ethical practices, striving to be a trusted and attractive employer.
- Impact of Changing Labour Market Conditions on Resourcing Decisions
Changing labor market conditions significantly impact resourcing decisions, influencing how organisations attract, recruit, and retain talent. Understanding these conditions is crucial for developing effective strategies to manage the workforce.
Example 1: Differences Between Tight and Loose Labour Markets
A tight labor market features low unemployment and high demand for workers as defined by CIPD (2023). In a tight labor market, characterised by low unemployment and high demand for workers, organisations face significant challenges in filling positions due to a limited pool of candidates. For instance, during economic booms, sectors like technology and healthcare often experience a scarcity of skilled professionals.
To address this, ParcelCare will enhance its employer brand by portraying a positive company culture, lucrative wages, flexible working hours, and career advancement. These strategies help to set the position of ParcelCare within the competitive environment within an organisation to attract and maintain niche talent. In the highly competitive business environment, investing in highly qualified skills is essential for achieving their development goals and leveraging on competitive advantage in their economy.
Harver (2021) defines a loose labor market as high unemployment and a surplus of available workers. Conversely, in a loose labor market, where there is an oversupply of workers, organisations benefit from a larger candidate pool but may face challenges related to overqualified applicants and retention. During the COVID-19 pandemic, for example, many industries faced layoffs, resulting in a surplus of job seekers. Our organisation refined its recruitment processes to be more selective, ensuring we hired the best fit for each role.
Example 2: Trends in the Demand and Supply of Labour and Skills
Shifts in the demand and supply of labor and skills also impact resourcing decisions. Technological advancements, such as the rise of artificial intelligence and automation, have increased demand for skilled labor in these areas (Brown and Loprest, 2018). Companies like Tesla and IBM invest heavily in reskilling programs and strategic recruitment to meet this growing need. In our organisation, we have similarly focused on identifying emerging skill requirements and developing training programs to upskill our workforce. Additionally, demographic shifts, such as an aging population, affect labor supply.
2.1 Effective Workforce Planning
Workforce planning involves forecasting labour demand and supply to identify gaps, then developing strategies to address them as evidenced by CIPD (2024). Effective workforce planning can significantly benefit organisations, while lack of it can lead to issues. The most successful organisations needs to have a budget on workforce planning. This is critical for a continuous development of the employees skills and capability.
Impact 1: Better Talent Utilisation
Effective workforce planning achieves better utilisation of the available pool of talent by matching available employee skills against organisational requirements (Aisha, 2024). For instance, after our organisation’s restructuring, we used workforce planning to identify critical gaps in skill sets, which were then matched against the strategic goals set by the company. We forecast internal and external labor supply and demand and then carried out relevant recruitment and training programs, ensuring that we hired people with the right mix of skills for the critical positions, hence improving productivity and efficiency.
At ParcelCare, workforce planning can benefit talent utilisation by matching the skills of the employees with the required skills in the organisation. Thus, ParcelCare can foresee the main areas of the labor shortage, potential oversupply and demand and, therefore, can develop a consequent strategy of effective recruitment warnings, training, and other measures that will provide the essential filling of key positions with qualified and efficient employees, and the consequent increased productivity, effectiveness, and organizational efficiency of the workforce.
Impact 2: Greater Employee Growth and Retention
Workforce planning facilitates targeted employee development and improved retention. Having identified the future skill requirements and gaps that exist today in those, we could, therefore, design training programs to upskill our existing workforce (Panel, 2024). Such a proactive development approach not only addressed skill shortages by increasing engagement and retention of employees who felt valued and supported by reducing turnover rates but also brought many more benefits.
At the ParcelCare, workforce planning may ensure increased employee growth or employee turnover by encompassing future workforce skill requirements by various training programs. Investing in employee training increases commitment, performance, morale, and retention while helping organizations adapt to skill gaps and new organisational needs, thus making employees feel appreciated and valuable.
Ineffective Workforce Planning
Conversely, a lack of effective planning results in misaligned headcount and competencies. This delays response times to changing business needs. An example is one competitor that failed to foresee technology skill requirements. They now face difficulties developing products, increasing risks of falling behind competitors. Targeted workforce planning is crucial to ensure demand is met cost-effectively with minimal disruptions.
Workforce planning involves forecasting labour demand and supply to identify gaps, then developing strategies to address them as evidenced by CIPD (2024). Effective workforce planning can significantly benefit organisations, while lack of it can lead to issues.
Impact 1: Better Talent Utilisation
Effective workforce planning achieves better utilisation of the available pool of talent by matching available employee skills against organisational requirements (Aisha, 2024). For instance, after our organisation’s restructuring, we used workforce planning to identify critical gaps in skill sets, which were then matched against the strategic goals set by the company. We forecast internal and external labor supply and demand and then carried out relevant recruitment and training programs, ensuring that we hired people with the right mix of skills for the critical positions, hence improving productivity and efficiency.
Impact 2: Greater Employee Growth and Retention
Workforce planning facilitates targeted employee development and improved retention. Having identified the future skill requirements and gaps that exist today in those, we could, therefore, design training programs to upskill our existing workforce (Panel, 2024). Such a proactive development approach not only addressed skill shortages by increasing engagement and retention of employees who felt valued and supported by reducing turnover rates but also brought many more benefits.
Ineffective Workforce Planning
Conversely, a lack of effective planning results in misaligned headcount and competencies. This delays response times to changing business needs. An example is one competitor that failed to foresee technology skill requirements. They now face difficulties developing products, increasing risks of falling behind competitors. Targeted workforce planning is crucial to ensure demand is met cost-effectively with minimal disruptions.
2.2 Techniques that support Workforce Planning
Workforce planning………
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