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Transcript of Employment Markets
Employment Markets
Chapter 3, People Resourcing by Stephen Taylor, 2010
By the end of this unit you should be able to
Distinguish between ‘tight’ and ‘loose’ labour market conditions and discuss the implications for resourcing
Understand and explain long term developments in the Irish employment market and prospects for the future
Identify the demographic trends and developments in employee attitudes and their implications for of importance to the future of organisations
Employment Market Conditions
Why do HR need to be interested in this? ‘travel to work areas’ What is a tight labour market? Examples What is a loose labour market? Examples
Employment Market Conditions
Competing in a tight labour market Recruitment initiatives Retention initiatives Reorganisations Development initiatives
Competing in a loose labour market Managing cost Managing administration
The Irish Employment Market
Overall picture Demand for labour Supply of labour Implications for Resourcing & Talent
Management
Ireland Employment Market Sources of Data
FAS Quarterly Labour Market Commentary, July 2010
Expert Group on Future Skills Needs (EGFSN) & FAS National Skills Bulletin 2010
EGFSN Skills Supply in the Irish Labour Market 2010
The Irish Labour Market Review 2008 (FAS) FAS/ESRI Occupational Employment Forecast 2015 See Moodle page for links to other relevant reports
Ireland – snapshot 2009
State of labour market depends on Economic position, no. Of people with skills, levels of
unemployment
1995-2007: tight labour market Since 2008: loose labour market > 2 million employed in 2006 in Ireland 1.86 million employed in 2010 and declining Unemployment 3.6% (2001); 4.3% (2006); 11.9%
(2009); 13.4% (2010) and rising
Ireland – snapshot 2010
Employment decreased in construction, agriculture, manufacturing, wholesale and retail
Employment increased in ICT, modest increases in transport, food, health, energy sector
Males, U25s, early school leavers, non- Irish nationals, residents in SE region, construction workers at greatest risk of unemployment
Continuing increase in use of part time
In the short term
Overall supply exceeds demand currently Skill shortages – specialisms, senior
positions, niche areas, specific skills mixes New employment permits down by 60%
Demand for Labour
Current specialist roles in IT,
sales, health, finance, engineering & management
Demand continues in the long term but for different types of skills
FutureKnowledge economyProfessionals & technicians in science, engineering, business services & ITBy 2015 50% of employment will be white collar
Supply of Labour
CURRENT National Skills
Strategy targets Third level graduates
increasing from 37% to 39%. Target is 48% by 2020.
FUTURE Tighten globally
Aging global population Female participation
continues to increase Increased retirement
age Immigration Increased education
levels
Issues in the future for Ireland
2011 onwards a slow recovery but skills shortages will exist in the long term
Inward Migration – will it continue or not? Outward migration – will it take off? Skill shortages and labour shortages
‘Changing Trends in the Irish Labour Market’; John Fitzgerald, ESRI, date ?
Labour Force of 2014 Couples both work 30-34 age group dominates High female participation Implications for Employers
Need to attract and hold females Need to meet the needs of employees in their 30’s Need to accommodate working couples
Skill shortage: insufficient number of qualified individuals to meet demand for an occupation
versus Labour shortage: insufficient number of
individuals willing to take up employment opportunities
Skill Shortages in Ireland
EFGSN 2006 Construction Financial Engineering IT Science Healthcare Transport Sales Catering Manufacturing
EFGSN 2010 IT Engineering Sales Health Management
Refer to specialists within these occupations
Labour Shortage
EFGSN 2006 Financial clerical Labourers Butchers and de boners Sales assistants Waiters Security Guards Care assistants
EFGSN 2010 There are no labour
shortages in Ireland at present
Action: Review the National Skills Bulletin 2010
Article: Irish Labour Market: Changes and Challenges, B. McCormick, Fas 2008
1. What challenges are organisations facing with regard to attracting talent in the future?
2. What actions do organisations need to take to attract this talent?
Future Labour Market
The implications for Resourcing Specialists
1. Tight labour market for high level skill positions
2. Loose labour market for low level skill positions
Podcast No. 20
The Future of Global HR Podcast 20
Attitudes to work and the workplace
Generations ‘Y’ or the ‘nexters’ born after 1980 Technology friendly Non discriminatory Want work-life balance Ethical conscience Global mindset Anti bureaucracy Easy going about the future
Implications
Less accepting of management prerogative Reinvention of the trade union or greater
individualism Less loyalty, more questionning Easier for organisations to reinvent
themselves
Managing Tomorrow’s People PWC 2009
Demands for greater transparency & social responsibility in business have been magnified by the crisis – GREEN WORLD
Increased focus on hard people metrics – BLUE WORLD
Opportunity for radical new ways of working …..people are self employed ina highly networked world – ORANGE WORLD
See page 25 PWC Report of summary of 3 worlds
Millennials at work PWC 2009
Those who entered the workforce after 1 July 2000
Talent shortages are everywhere …China, India, Eastern Europe, South America
“By 2020 people supply will be the most critical driving factor for business success
Millennials at work PWC 2009
Expect job mobility Corporate responsibility is critical For the most part want traditional job practices, office
based, office hours… Expect to have 2-5 employers in a lifetime …not a
portfolio career Training & development is highly valued Expect to fund their own retirement Believe companies will have more influence that
governments by 2020
Managing Tomorrow’s People PWC 2009
Adjust to managing the millennial generation of employees Address corporate sustainability & climate change issues Reconsider rewards strategies More precise people measurement Health & well being of the workforce a key focus Continue to invest in training & development Global mobility of talent will be essential Social networking is here to stay Having the right technology platforms Articulate your employer brand
Managing Tomorrow’s People PWC 2009Real options in managing people Build research centres in different geographical locations to access
wider talent pools Recruit people with an unusual mix of experience and qualifications Increase workforce flexibility using different employment contracts Maintain networks of self employed contractors to supplement full time
staff Use internships & bursaries to build relationships with universities Experiment with different learning strategies More flexible reward arrangements Think creatively about how to use technology….avatars, internal
networking sites….. Provide variety and fresh challenge
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Podcast No. 47
Managing an Ageing Workforce
What is the value proposition?
Takes into account different aspect of the job itself, the benefits, career opportunities, work environment, organisation as a potential employer
An effective VP needs to address the needs of the different generations
CIPD Penna Report 2008
What is important in the generic VP?
A competitive deal Job security Good reputation as an employer Jobs with a sense of purpose and challenge Recognition and credit for achievement Treat employees with respect Offer personal development opportunities
CIPD Penna Report 2008
Creating a winning strategy/VP
Actively managed cross generational differences
Avoid generalisations, labels, assumptions Develop a compelling VP that meets core
values common to all generations but also provide a mix & match
Proactively manage the employer brand Reflect generational difference in job
design
CIPD Penna Report 2008
Creating a winning strategy/VP Social responsibility Work/life balance Flexibility Space for individual preference Blurred line between work and social Competency led recruitment & selection Personal development opportunities Communications Training Appetite for customer service
CIPD Penna Report 2008
Summary Describe the current and future Irish labour market Discuss the implications of the labour market for HR
specialists Discuss the resourcing challenges facing HR specialists
as a result of changes in the labour market Discuss the resourcing challenges facing HR specialists
as a result of changes in employee attitudes to work and careers
Describe an effective value proposition in today’s labour market.
Describe an effective value proposition having regard for the work attitudes of different generations
Sample Questions
Discuss the affects of demographic trends and developments in employee attitudes on employee resourcing
In a period of just 12-18 months Ireland’s labour market has changed rapidly from very tight to very loose and the scale of this change is unprecedented. Compare and contrast the role of the Employee Resourcing Specialist in Ireland five years ago and today.