Table of Contents
(AC 1.1) Explain how organisations strategically position themselves in competitive labour markets.
The labor markets are places where workers and employers meet up to interact with each party pursuing their own goals. The employees want work and the employers are looking for qualified workers. Like any market, the forces of demand and supply determine the wages and other supply of labor and demand for workers (Bhaskar et al., 2002). Therefore, it is important for companies, such as ParcelCare to be strategic in how they position themselves based on what the employees are looking for and what the competitors are offering.
The first step in strategically aligning itself in the labor market is engaging in talent war. Talent way is the competition with other employers for talent or qualified employees. This happens when the labor market is tight and certain skills are in high demand. To stand out in the crowd, ParcelCare need to offer potential employees an attractive proposition compared to what competing organizations are offering. The organization could do that by offering attracting reward packages or compensation and creating realistically attract career paths with development routes (Webber, 2020). This approach is good because younger employers are not just looking for a pay but a chance to grow in their careers. ParcelCare should offer than to position itself in the labor market.
The second strategy for positioning itself in the market is building its brand in the market. It is important to note that in the labor market, the company is competing with other companies for employees or workers. In that situation, the employees are likely to gravitate towards a company with a good corporate image or brand. ParceCare can build its brand over time by having a strong presence of social media and investing in corporate social responsibility. Most of the young people are on social media and that means that engaging them on social media or building a presence on social media is a good way of brand building. Also, investing in corporate social responsibility projects, such as operating sustainability, recycling, aiming to be carbon neutral, and helping members of the community, can help build the brand.
Finally, it is important for ParcelCare to engage in competitor analysis to understand its resourcing strategy in terms of reward strategy, employee value proposition, use of media, employer brand, numbers recruited, and turnover. That data would give the company a good picture of strengths and weaknesses of the competitors so as to invest in targeted areas to outcompete them in the labor market. The result of the competitor analysis should inform efforts towards brand building.
(AC 1.2) Explain the impact of changing labour market conditions on resourcing decisions.
The labor market is highly dynamic and change is the only constant. Due to those changes, the labor market can be tight or loose. Tight labor market occurs when the demand for talent is high probably due to shortage in certain skills or other factors. on the other hand, the labor market is loose is the competition for talent is low. The resourcing decisions that companies make are dependent on the emerging trends in the labor market (Bîrcă & Sandu, 2024). The trends shaping the labor market and which has a potential to shape resourcing decisions are globalization, changing demographics, new technologies, COVID, and work-life balance. Those factors have had a tremendous influence on the labor market and, consequently, the resourcing decisions.
For ParcelCare, globalization means that the company has access to a global talent tool and it can offshore or outsource. The company does not have to depend on local labor but could outsource some of the work, such as responding to customer emails, calls, and other queries (Crowley-Henry, 2018). It could also hire employee to maintain its website and manage its social media engagement. Changing demographics means that the workforce is aging, as baby boomers retire. With experienced workers leaving, the company has to invest more on upskilling, automation, and introducing flexible work arrangement to retain the older employees (Bîrcă & Sandu, 2024). also, new demographics, such as gen z and millennials have entered the workforce and they prioritize things such as purpose, flexibility, technology, etc. The implication for ParcelCare is how to include in the workforce by providing them with remote work, gig roles, project-based assignments, and incorporating technology into work routines.
Another trend with an impact on resourcing decisions is the emergence of new technologies such as automation and AI. For ParcelCare, it means that certain roles have to be automated, reducing the need for manual labor, but it also means higher demand for employees with technical and analytical skills. moreover, for ParcelCare, there is a need to change resourcing approaches relating to recruitment by incorporating the new technologies. Tools like Zoom, Slack, and cloud computing enable remote work, broadening talent sourcing options but necessitating investment in digital infrastructure.
COVID pandemic led to a shift in remote work and has further accelerated remote and hybrid work adoption. This has changed how and where the talent is sourced. The pandemic also led to a new focus on health and safety, including the mental health support, which has to be factored in in resourcing decisions. There is also a rise in the gig economy that engages temporal workers and ParcelCare need to consider hiring some of the gig workers to manage the cost of labor.
(AC 2.1) Analyse the impact of effective workforce planning.
Workforce planning is the process of analyzing, forecasting, and planning workforce supply and demand. With this process, an organization ensure that gaps in talent needs are identified and addressed in a timely manner. It is also required to ensure that the organization has the right people with the right skills in the right places at the right time. The steps in workforce planning includes identifying the strategic direction of the organization, undertaking supply analysis, demand analysis, gap analysis, solution implementation, and monitoring the progress (Lopes et al., 2015). Undertaking workforce planning puts the organization in a competitive position in the highly competitive labor market. Therefore, given the current situation of the labor market that is facing ParcelCare, the company does not have choice but to undertake the workforce planning.
The benefits of workforce planning are better retention rates, improved recruitment processes, enhanced employee development, cost savings, among others. Demand forecasting, for example, could help ParcelCare ensure efficient delivery by hiring more workers during the peak periods, such as during holidays when customers order more goods online. Also, succession planning could ensure continuity by identifying and training employees to take leadership roles. Therefore, if the older workers leave, there is enough talent to take over the responsibilities previously held by those leaving due to retirement or for other reasons (Fowler et al., 2008). supply analysis could help the organization undertake current workforce and how it is projected to change over time. For instance, due to the entry of younger generation of workers, ParcelCare could invest in technologies to support them deliver on their roles. It could also mean investing in more training and development and making work more meaningful.
Another benefit for workforce planning is that it could identify gaps within the workforce in terms of skills. For instance, ParcelCare care could discover that the company does not have people with skills on warehouse management, especially in relation to the use of robotics to sort parcels or in the use of modern warehouse management systems. In that case, the company could start to hire people with those skills and improve its overall efficiency (Fowler et al., 2008). It could also help manage reputational damage. The main reason for a huge gap in workforce needs could be the inability of the organization to attract and retain employees because it has a poor brand image. If ParcelCare identified poor reputation as a contributor to its inability to attract workers, that is the first step in fixing this issue.
(AC 2.2) Evaluate the techniques used to support the process of workforce planning.
Various techniques can be used for workforce planning and each has its own pros and cons. However, in this analysis, the two techniques identified are management judgment and work study technique. Management judgment, as the name suggests, is based on the subjective views of the managers, where they state what they feel is needed in terms of resources in their areas of responsibility (Lopes et al., 2015). Senior managers use their expertise and experience to make prediction on the future of labor demand. The forecasts that the managers agreed upon and submitted to the departments for approval.
The benefits of this method are that it is balanced, fair, and efficient in application. Also, it takes advantage of the skills and expertise that the managers have built over the years. In that case, this method is likely to deliver desirable outcomes. The process is also inclusive because it involves different managers who provide their assessment of the situation and this promotes transparency in decision making (Fowler et al., 2008). Again, because it is involving, it improves the motivation because managers feel valued and their professional judgment respected.
On the other hand, because it is subjective in nature, it is mostly driven by opinions instead of hard data. without the use of data, there is a high chance of making mistakes or misreading the situation, especially if the reason for workforce planning is an emergent issue not well understood. For managers, their professional judgment might not suffice but using data could lead to better outcome. ParcelCare could use this method to determine the workforce needs of the organization presently and in the medium term.
Work study technique analyzes how the job is presently being done in order to improve on it. It includes time and motion study with the aim of increasing productivity and best use of available resources to achieve the desired outcomes in terms of quality and cost. It is a cost-effective method and its approach simple but consistent (Fowler et al., 2008). Unlike the previous method which is based on subjective judgment, in this case, there is effort to collect objective data. Every aspect of the operation is examined or studied.
The pros of this method are that it is also fair, balanced, and efficient. However, it is the best in terms of increasing efficiency leading to higher production and optimum use of resources (Lopes et al., 2015). The downside is that the method is not practical for jobs that are non-repetitive or indirect labor jobs. This approach can be used by ParcelCare where managers could study warehouse operations and parcel deliveries to identify areas that are inefficient and require a solution or improvement.
(AC 2.3) Evaluate the strengths and weaknesses of different methods of recruitment and selection to build effective workforces.
The two recruitment methods are social media recruitment and employee referral programs. Social media recruitment is a method that relies on platforms like LinkedIn, Facebook, and Instagram which enable access to a diverse pool of candidates, including passive job seekers. The benefit of this method is that has a wider reach and cost effective compared to traditional methods (Bach, 2005). It also makes it easier for the company to engage in targeted advertising to reach out to certain demographics, people with skillsets, which increases the chances of attracting people with the right skills. another benefit is that using social media for recruitment helps make the brand visible.
The downside is that social media has limited professionalism and may not appeal to candidates seeking formal roles. It is also time consuming due to huge volumes or applicants, most of whom might not have met the basic qualifications. There is also the risk of the excluding certain candidates, especially those who are not tech savvy or are not active online.
To address some of the cons of social media recruitment, employee referral programs is an alternative. This method increases the chances of getting high quality candidates because they are endorsed by current employees who understand the requirement of the job. Thus, they are unlikely to recommend candidates who have not met the qualifications. This method leads to faster hiring and reduced spending on ads and screening (Bach, 2005). Also, during the involvement of employee in hiring, it increases the overall engagement. From the perspective of the employer, referral method is cost effective. The downside is that there is a risk of bias as employees are likely to recommend employee who are like them in terms of gender, race, ethnicity, academic qualifications, etc. This method is also not scalable as it is not practical where the organization wants to hire a huge number of employees.
The selection methods are assessment centers and structured interviews. in assessment centers selection methods, candidates are taken through a comprehensive evaluation using tools such as role playing, group tasks, and case studies meant to assess multiple competencies. The main advantage of this approach is that it is comprehensive in its approach and also allows for predictive accuracy (Wolniak, 2018). For instance, when candidates are assessed on simulations that mirror real work scenario, the interview can determine if the person involved has the required abilities or behaviors. It is also fair and reduces bias. The downside is that it is costly and time consuming.
Structured interviews are a selected method that uses standardized questions to the candidates. Its main strength is consistent and comparability of the performance of candidates. It is also evidence based and focuses on the job competencies and experiences of the candidates, which reduces subjectivity (Wolniak, 2018). The downside is that the method lacks flexibility and also resource intensive in addition to relying mostly on the verbal skills of the candidates. Practical skills or problem-solving ability is not assessed.
(AC 3.1) Discuss factors that influence why people choose to leave or remain in organisations.
Avoidable turnover refers to the employee departures which can be prevented by the organization. the reason for these departures could be poor management, lack of growth opportunities and inadequate compensation (Barrick & Zimmerman, 2005). Other causes could be workplace conflicts, lack of recognition, or insufficient work-life balance. ParcelCare has significant influence on those issues and could implement measures to address them. those measures, include improving policies, culture, or leadership so as to retain employees.
Unavoidable turnover, on the other hand, is employee departures that are beyond the control of the organization. for instance, personal reasons such as relocation can lead to unavoidable turnover. Other employee could leave due to retirement, family responsibilities, or due to health issues (Barrick & Zimmerman, 2005). On a wider scale, PercelCare could see its employee leave due to economic downturns that makes its operations untenable or changes in the industry dynamics.
When employee leave an organization, the two factors responsible for that exit is push and pull factors. Push factors are internal organizational issues that make employees leave. Some of the push factors are poor leadership, toxic work culture, lack of opportunities for career development, unfair treatment, work related stress, turnout, or excessive workload (Lee & Mitchell, 2017). Push factors are avoidable but if not addressed, they lead to high employee turnover.
Pull factors, on the other hand, are external opportunities that attract employees away from the current roles and join another organization. the pull factors are higher pay, better benefits, and more prestigious job elsewhere. Another pull factors is the chance to advance their careers or relocate closer to the family or desired location. Pull factors are unavoidable in most cases but organizations can take measures to mitigate them by offering employees competitive pay packages, building a positive organizational culture, and having clear growth paths (Barrick & Zimmerman, 2005).
The implication for ParcelCare is that it needs to investigate organizational push factors, such as management practices, employee engagement and general satisfaction levels and undertake remedial actions. Also, when pull factors exist, which is likely to the highly competitive labor market that is facing the company, there is a need to stay competitive by benchmarking pay, offering benefits, and career opportunities against the market (Lee & Mitchell, 2017). Moreover, the organization needed to invest in retention strategies by strengthening areas that are under the control of the organization such as leadership training, workplace culture, flexible work schedule, among others.
(AC 3.2) Compare different approaches to retaining people.
Realistic Job Previews (RJP) involves providing candidates with honest and detailed overview of the role including its challenges and benefits during the recruitment process. Its pros are it reduces turnover as employees are less likely to leave if they have accurate expectations about the job. It also improves job fit because it attracted candidates with genuine interest and capable of handling the role. Finally, it helps build trust as it shows transparency (Armstrong & Murlis, 2008). The downside is that it may discourage some candidates after learning about the challenges of the role and other negative aspects of the job. Another disadvantage is that is costly because the organization can to produce realistic job previews using videos, actual tours, among others, which is resource intensive.
Induction is a structured onboarding process that integrates new employees in the organization and familiarize them with their role, culture, and expectations. Its main advantage is that it boosts engagement as it offers employees support, which makes them feel valued. It reduces early turnover as concerns of the new hires are addressed and that makes them feel welcomed. It improves the productivity of workers (Armstrong & Murlis, 2008). The downside is that it is resource intensive and requires dedicated time for it to succeed. Also, the success of the program depends on quality of the induction. If the program is not structured well, it could make employees feel overwhelmed or disengaged.
Job enrichment is done by enhancing roles by adding meaningful tasks, responsibilities, or opportunities for growth and autonomy. when employees are assigned more responsibilities and the ability to manage their work, it leads to higher satisfaction levels. High satisfaction, in turn, boosts retention and improves the performance of workers (Yang & Lee, 2009). However, the downside is that job enrichment is not suitable for all roles. For instance, it might not be suitable for warehouse work because it is mostly repetitive in nature. Another disadvantage of job enrichment is that it requires massive investment and additional training.
for ParcelCare, the best approach should be determined by the goals of the organization. For instance, RJPs can help reduce early attrition by ensuring that new hires fully understand physical demands, shift work, and repetitive tasks common in warehouse roles. Also, a well-structured induction program can help warehouse employees adapt quickly to safety protocols, equipment usage, and team dynamics (Yang & Lee, 2009). Finally, environment could be relevant as offering task variety, cross-training, or leadership opportunities can enhance retention, but enrichment options might be limited due to the nature of warehouse work.
(AC 3.3) Explain the impact of dysfunctional employee turnover.
Dysfunctional employee turnover occurs when high performing or critical employes leave the organization, leading to negative consequences. When that happens, the impact is the loss of talent and skills, increased recruitment and training costs, reduced morale and engagement, lower productivity and service levels, damage to the employer brand, and also imposes strategic and financial risks (Gong & Wang, 2019). When high performing employees leave an organization, it reduces the capability and efficiency of the company. the expertise and institutional knowledge gained over the years is lost and it is difficult to replace. For instance, in the case of ParcelCare, the loss of the skilled warehouse staff can lead to operational delays and errors in inventory management.
Secondly, when employees leave, they have to be replaced and that imposes recruitment and training costs to the company. Other costs are advertising the open positions, onboarding, and loss of productivity due to the replacement. Moreover, when an organization is experienced high employee turnover, it can demoralize the remaining employees, leading to lower engagement and productivity. Employees might feel overworking and undervalued if they frequently need to cover for the vacant roles (Gong & Wang, 2019). The remaining employees might suffer from mental health issues related to burnout, affecting teamwork and job satisfaction. Also, when there is frequent turnover, the results are that workflows suffer from disruption, which reduces cohesion, and that increase the chances of errors. Repeated errors are associated with operational inefficiencies which could become problematic for the organization in the longer term.
Because ParcelCare is operating in a highly competitive labor market, high turnover could damage its brand, making it harder to attract and retain top talent. To potential hires, high turnover could signal to them that there are issues relating to poor working conditions or even organizational culture. To fix that bad image, it would take the company time and effort to address the broken brand (Fleisher, 2019). moreover, dysfunctional turnover undermines the ability of the organization to achieve its long-term goals. This is because human resources play a vital role in the attainment of the long strategic objectives of the firm. The higher the quality of the employees, the higher the chances of succeeding in the highly competitive markets (Fleisher, 2019). It is also apparent that when employees leave often, the operational ability of the company is eroded, leading to poor services to customers. Those poor service encourage customers to shift to competing brands.
(AC 4.1) Assess suitable types of contractual arrangements dependent on specific workforce need.
ParcelCare predominantly employs delivery drivers on permanent, full-time contracts. While this arrangement has its advantages, alternative contractual options could offer greater flexibility in responding to fluctuating demand for delivery services. The pros of Permanent, Full-Time Contracts are job security as it provides employes with the stability of employement which, in turn, enhances overall job satisfaction and loyalty. It also leads to skill retention because long term contracts provide employees with a chance to build their skills in the workforce via deep familiarity with the operations of the organization. Another benefit is the constancy because it ensures a reliable workforce to meet the stead and predictable delivery outcomes (Gheyoh Ndzi, 2021). It is also good for the employe branding as it demonstrates commitment to the employees, making it easier to attract and retain high quality talent.
The downside is that it reduces flexibility especially if there are periods of fluctuating demand. In the case of ParcelCare, demand fluctuates, with spikes during the holiday seasons. Other times, employees might remain idle or their services would be engaged sub-optimally. It also leads to more fixed costs as payment is fixed even during the low season or when the demand is low.
Fixed term contracts are a type of contract where employees are hired for a specific period or project with a defined end stage. It is flexible as it allows the organization to adjust the workforce size based on demand, such as during peak delivery periods (e.g., holidays) (Gheyoh Ndzi, 2021). It is also cost effective because it avoids long term financial obligations associated with permanent contracts. It offers employees, such as students, seeking short term work with opportunities for work. The downside is that it comes with limited employee loyalty, there are onboarding challenges and potential skills gaps is a possibility. ParcelCare should consider this form of contract as it is well-suited for handling seasonal delivery spikes or temporary projects, providing the company with needed flexibility during peak demand periods.
Finally, Zero-Hour Contracts is where employees are not guaranteed a set number of hours and are only paid for the hours they work. its benefits are that they ensure high flexibility, cost efficient, and appeals to certain workers such as those looking for flexible or part-time arrangements, such as students or retirees (Wood & Burchell, 2014). The downside is that it comes with job insecurity, reputational risks, and training and retention issues. Zero-hour contracts are a suitable option for addressing unpredictable demand but should be used judiciously to avoid damaging employee morale and brand reputation.
(AC 4.2) Explain the benefits of effective onboarding.
Effective onboarding goes beyond completing administrative tasks and health and safety training. It introduces new employees to the organization, helps them integrate into the team, and sets them up for long-term success. its benefits are faster time-to-productivity, improved employee retention, enhanced employee engagement, better role clarity, stronger employer brand, compliance and risk education, and encourages team cohesion. Faster time-to-productivity means that with a structured onboarding program, employees are able to understand quickly their roles, responsibilities, and organizational processes (Caldwell & Peters, 2018). Therefore, delivery drivers at ParcelCare will adapt to routes, procedures, and safety protocols faster, reducing errors and improving operational efficiency. it leads to improved employee retention because employee feel supported and well-integrated during the onboarding process. This reduces the turnover among drivers and save on recruitment and training costs.
It enhances employee engagement because a comprehensive onboarding process creates a strong, positive impression which instills a sense of belonging and alignment with the values of the organization. Engaged employees are more motivated, which leads to better customer service and higher job satisfaction. Structured and comprehensive onboarding improved role clarity. Thus, delivery drivers will face fewer uncertainties, resulting in fewer mistakes and improved overall performance (Caldwell & Peters, 2018). moreover, in the longer term, an effective onboarding has a positive impact on the employer brand which boosts the reputation of the firm. In that case, ParcelCare can attract higher quality candidates in a competitive market. Onboarding helps with compliance with the regulation because, during the training, employees are acquainted with the legal, regulatory, and safety requirements related to their work (Pratiwi et al., 2018). Proper health and safety training for delivery drivers minimizes accidents and ensures compliance with labor laws.
Finally, onboarding is good for team cohesion because new hires have a chance to build relationship with their colleagues and this makes collaboration easier. Delivery drivers who feel part of a team are more likely to perform well and support organizational goals. Therefore, for the ParcelCare, investing in a good onboarding process is not an option but an imperative. It improves employee retention, engagement, and productivity while reducing costs associated with turnover and training (Pratiwi et al., 2018). By demonstrating these tangible benefits, ParcelCare can justify prioritizing onboarding improvements as a key strategy for workforce development and operational excellence.
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