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.