Employment Markets

1. 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 • 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

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 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

11. 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

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 IT Engineering Sales Health Management Refer to specialists within these occupations • Construction • Financial • Engineering • IT • Science • Healthcare • Transport • Sales • Catering • Manufacturing

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

17. 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.nsf/wFAR/Gen+Y+Introduction?opendocumenthttp://www.ashridge.org.uk/Website/Content.nsf/wFAR/Gen+Y+Introduction?opendocument

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 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.