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
Future
 Knowledge economy
 Professionals &
technicians in science,
engineering, business
services & IT
 By 2015 50% of
employment will be white
collar
Supply of Labour
CURRENT FUTURE
 National Skills
 Tighten globally
Strategy targets  Aging global population
 Third level graduates  Female participation
increasing from 37% continues to increase
to 39%. Target is  Increased retirement
48% by 2020. 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 EFGSN 2010
 Construction  IT
 Financial  Engineering
 Engineering  Sales
 IT  Health
 Science  Management
 Healthcare
 Transport  Refer to specialists within
 Sales these occupations
 Catering
 Manufacturing
Labour Shortage
EFGSN 2006 EFGSN 2010
 Financial clerical  There are no labour

 Labourers shortages in Ireland at

 Butchers and de boners
present
 Sales assistants

 Waiters
 Action: Review the
National Skills Bulletin
 Security Guards
2010
 Care assistants
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 2009
Real 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
http://www.ashridge.org.uk/Website/Content.nsf/wFAR/Gen+Y+Introduction?opendocument
 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.