1. Chapter 3, People Resourcing by Stephen Taylor, 2010
Employment Markets
Chapter 3, People Resourcing by Stephen Taylor, 2010

2. 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

3. 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

4. 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

5. The Irish Employment Market
Overall picture
Demand for labour
Supply of labour
Implications for Resourcing & Talent Management

6. 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

7. Ireland – snapshot 2009 1995-2007: tight labour market
State of labour market depends on
Economic position, no. Of people with skills, levels of unemployment
: 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

8. 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

9. 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%

10. Demand for Labour Future 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 % of employment will be white collar

11. Supply of Labour CURRENT FUTURE 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

12. 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

13. ‘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

14. 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

15. Skill Shortages in Ireland
EFGSN 2006
EFGSN 2010
Construction
Financial
Engineering IT
Science
Healthcare
Transport
Sales
Catering
Manufacturing IT
Engineering
Sales
Health
Management
Refer to specialists within these occupations

16. Labour Shortage EFGSN 2006 EFGSN 2010 Financial clerical Labourers
Butchers and de boners
Sales assistants
Waiters
Security Guards
Care assistants
There are no labour shortages in Ireland at present
Action: Review the National Skills Bulletin 2010

17. What actions do organisations need to take to attract this talent?
Article: Irish Labour Market: Changes and Challenges, B. McCormick, Fas 2008
What challenges are organisations facing with regard to attracting talent in the future?
What actions do organisations need to take to attract this talent?

18. Future Labour Market The implications for Resourcing Specialists
Tight labour market for high level skill positions
Loose labour market for low level skill positions

19. Podcast No. 20 The Future of Global HR Podcast 20

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

21. Implications Less accepting of management prerogative
Reinvention of the trade union or greater individualism
Less loyalty, more questionning
Easier for organisations to reinvent themselves

23. 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

24. 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

25. 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

26. 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

27. 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

28. http://www. ashridge. org. uk/Website/Content

29. Podcast No. 47 Managing an Ageing Workforce

30. 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

31. 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

32. 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

33. 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

34. 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

35. Sample Questions
Discuss the affects of demographic trends and developments in employee attitudes on employee resourcing
In a period of just 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.