Globalization has changed the employment market into a multi-cultural one which begs for a clear recognition of cultural differences. These differences need to be understood, recognized and considered especially when implementing HR practices such as recruitment and selection and performance management (White, 2015). As Ulrich (Ulrich, 1998) put it: “Globalization requires organizations to move people, ideas, products and information around the world to meet local needs”. This has brought a number of changes to the employment market due to the increased competitive intensity. Recruiting, retaining and motivating the best people has become much more difficult and expensive. Teams are more culturally diverse, and this will make effective and efficient operations much more challenging.
A CIPD report, ‘Internal Recruitment, Selection and Assessment’, investigates the challenges associated with global resourcing in UK firms. The research concluded that organizations need to strive to understand local and cultural contexts and the reasons people want to work for them in each international labor market they recruit in. The consequence is a need for more investment in managing the existing volatile employment market so that organizations can operate on a global scale as well as they do locally.
Save your time!
We can take care of your essay
- Proper editing and formatting
- Free revision, title page, and bibliography
- Flexible prices and money-back guarantee
Technology can be defined as “the state of knowledge concerning ways of converting resources into outputs” (OECD, 2001). Emerging technologies are having a huge impact on the employment market. Digital platforms have altered the way businesses are run as they are increasingly being used within work an online marketplace (Morgan, 2014). Robotics are affecting the employment market as industrial robots are taking on routine tasks usually performed by manufacturing employees (Frey & Osborne, 2017) leading to a decrease in the demand for employees. Also, evidence suggests that workers are increasingly using AI platforms via the gig economy to take on jobs (Deloitt, 2016). Technology has also facilitated the increase in remote working, which has led to a decline in the physical workplace. The increase in virtual connectedness has also opened the world to new ways of acquiring, developing, and managing talent and work.
Technical change also has the capacity to give rise to new sectors of activity which will affect the employment marking by creating demands for different skills and capabilities. The creative sector, for example has been transformed by the introduction of digital technology. There has been a move to the development of multimedia computer games and apps (Williams, et al., 2012).
Demographic trends have direct implications for employment markets through labor supply, demand and productivity. Aging societies will face difficult economic and social challenges as the labor force will shrink when workers retire. In 1992, one in five people in employment was over 50. According to a CIPD report, ‘Avoiding the Demographic Crunch: Labor Supply and the Ageing Workforce’ (June 2015), more than one in ten workers across most industry groups are over 60, while more than one in four are over the age of 50.
The point at which people leave the work force will have an impact on the employment market. In the UK, progress has been made to improve the labor force participation at older ages. However, although there has been an increase in the number of older people in employment, many are still leaving employment between their mid-50s and mid-60s (CIPD, 2015). This is because many industries have a poor record of retaining older workers especially in finance, public administration and ICT. This will result in losing skilled and experienced staff. Businesses can counteract the labor supply gap by striving to extend the working lives of existing employees and nurturing younger talent to help them acquire the skills needed to take the place of more experienced workers.
From a different point of view, demographic change, especially an ageing population may give rise to an increased demand for medical products (for instance self-diagnostic blood pressure machines) and social health services (for instance home care). Furthermore, an ageing population will increase the demand for people to work in the medial and caring sector.
Technological advances are the drivers of change for the future of employment markets. According to a report issued by the World Economic Forum (2018), automation will reduce the full-time workforce and organizations are planning to extend their workforce to new productivity enhancing roles, with automation leading to the creation of new roles. This will require proficiency in new technology as well as other 'human skills'. Emotional intelligence is also at the forefront of required skills. Organizations will be looking to the availability of talent in different geographical bases of operations. Developments in internet and mobile technologies have increased the ability of remote working and out of the physical office.
It is impossible to investigate the changes of the employment market overtime without taking into consideration Brexit. As Stehen Bevan, head of HR Research and Development at the Institute for Employment Studies, said: “Isolating the effects of Brexit from a range of other factors influencing the way the UK labor market is performing – such as globalization, the growth of technology and automation, and structural changes in the economy – is a complex task” (Brown, 2019). While one in five employers think that Brexit will open up new growth opportunities for their organization, three in five business leaders feel that the skills shortage will worsen after the UK officially leaves the European Union (Muller-Heyndky, 2019). UK business will no longer be able to rely on tapping the EU employment market so they need to implement agile working and strengthen their talent strategies.
According to people and performance director of Formica, Michelle Robson there as skills concerns at many levels. “We’re a business based on freight, and not knowing how easily imports/exports will move is a concern. We may need to find an expert who has specific experience in dealing with export issues, because currently we don’t have anyone in the business with this skill”, she says. “Having an expert in this narrow specialism could be the difference between having continuous production and production that has to stop and start – the latter of which would also affect resourcing”. Robson is also concerned that Brexit could affect Formica’s ability to source the right talent to deal with its multinational customer base. In the past year Formica has strived to keep its staff by investing heavily in training and development (Crush, 2018).
The UK economy is increasingly relying on the services sector, shifting the focus from the manufacturing industries towards services. This has affected the employment market as there has been an increase in the demand for knowledge intensive labor. This demand is likely to intensify in the future. This, when coupled with the advance in technology, is leading to an increasing demand for high skilled labor as automation is replacing low skilled workers. The employment market has also seen a rise in the supply of part-time and self-employed workers as the ageing population are seeking to reduce their hours and work autonomously.
Future skills demand will depend on overall levels of economic demand and is influenced by the changing structure of employment. According to a UK Commission for Employment and Skills briefing paper: “The share of employment in the primary and utilities and manufacturing sectors is expected to fall. Productivity growth and increased specialization in key industries will lead to a further fall in manufacturing employment. In contrast, construction is expected to increase its share of employment, partly as a result of government investment in public infrastructure projects. In trade, accommodation and transport, employment growth from 2012-2022 is expected to be greater than from 2000-2012. Growth in the business services sector will be higher than in trade, accommodation and transport, but lower than levels experienced from 2000-2012, which partly reflects the legacy of the economic crisis in financial services. Overall, this sector will remain highly important for employment over the medium-term. The non-marketed services sector (composed of public administration, education, health, residential care and social work) will continue to grow to 2022, but at a lower rate than between 2000 and 2012, mainly as a result of Government’s plans to reduce public sector employment levels. The overall share of public sector employment will fall” (UKCES, 2014).
In conclusion, the future of the employment market remains uncertain. Radical changes in technology or new trade barriers could alter the demand for skills and capabilities. Organizations will need to change to optimize the gains from technology. Meeting future challenges will call for a more flexible and responsive skills system which better meets current and future economic needs.
Stuck on your essay?
