Question

Explain the effects a changing labor market has on selection, training, and promotion for human resources. How should human resources respond?

Answer 1

Explain the effects a changing labor market has on selection, training and promotion for human resource. How should human resources respond?

The trends in labor market are explained. The demographics of labor market are considerably changed. Aged workforce and shrinking birth rates force HR practitioners to consider alternative options to hire workers. Such changes also bring in a challenge of labor shortage. Previously, loyal workers worked for the organizations but it is not found today as more job hopping practices are found common among new generation employees. Now, the workers seek to achieve more growth and they are no longer loyal to a particular company. This trend also poses a challenge for the HR people to retain employees. Business disruptions caused by the revolution in technology is also impacting labor market. Data analysis has become a key and talent management through data management is a new norm. Now the companies are engaged to perform intelligence tests as well as behavioral tests to local best talent. Current labor market is more oriented to the service sector. This also impacts the labor market significantly. Now workers demand flexible work arrangement as well. Mobile workforce is also a new phenomenon in the labor market. Role of unions is significantly decreased in the private sector, though unions are still relevant in the public sector. People require more hygienic conditions at the workplace. Now the workers also seek to work for those companies promoting sustainable practices and diversity within the organization. Labor market also entangles of an issue of poor diversity as most of organization now employ women and minority people in their organization.

Thus the companies now select more women and minority people. These companies also recruit women to address the issue of aged workforce. Selection of employees is based on data driven technology as big data is used to locate the best talent. Plus, the company conducts behavioral tests and tests of intellectual competencies to enhance knowledge management and select qualified employees. This is done to promote innovation because technological advancement is rapid and products life cycle are getting shorter. Thus, now the company seeks to hire best talent having innovative capacity. Soft skills have become more important as the labor market is oriented towards service sector where the soft skills are found more important. HR needs to provide more opportunities for career development to the employees as the employees require career growth opportunities and therefore, training has become more relevant than before. Now every company provides adequate training to sharpen the skills of its employees. Therefore, the companies provide behavioral training, cross-cultural training, and soft skills training to improve human resource performance. Along with this initiative, companies are providing many unusual benefits those are not found before such as offering free dinner, lunch, free car washing, gym facilities, etc. Thus retaining talented employees is a very daunting task for the companies. Role of union is significantly decreased thus, the direct interactions by HR people with employees to address their issues is promoted. Transparent communication, fair HR practices; equal opportunities to employees need to be provided to current labor force.

Thus the Human resource of any organization should incorporate the above mentioned HR practices. It should provide adequate training to the employees. HR should provide various benefits apart from salary to retain talented employees. HR function should also consider offering flexible work arrangement to its employees and this initiative is more important as the women workers percentage is increasing in the total workforce. The HR department should also provide various kinds of training such as behavioral training, diversity and inclusion training and other kinds of training to make their employees skilled and develop good understanding of cross-cultural elements. HR function should recruit people from minority communities as well to convey a message to the employees that the organization is a good corporate citizen. HR should adopt latest technology to communicate to the employees and assess candidates for selection. These efforts by Human resource can make it competent to select efficient employees, and promote skills of human resource.