Economic Environment In UK Labour Market


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The continuously changing economic and business environments in theUnited Kingdom have challenged businesses to recognize the significant responsibility of their human resource departments as an essential procedure of strengthening their staff’s capabilities, adaptability, efficiency, and knowledge. One of the main pressing problems facing human resource department within Ernst and YoungCompany setting is the value proposition, especially during the economic crisis. In part, well-known acceptance of the word human resource department, as separate from the training, and primarily asa sub unit of human resource management, can be understood as an effort to improve the status, influence, and power of the role in connection to its input to organizational efficiency and success(Mary 2010, p. 13-18). Due to the economic crisis, organizations tend to lay off their workers as a method to cut the companies’ operational costs. Ernst and Young have employed a different strategy to ensure quality services are delivered to the clients in an affordable manner. The firm concentrates on hiring a few expert workers who can deliver high-quality services to the customer and enhance the firm’s rate of success in the business domain.

The debate is, however, continuing as to whether the focus of human resource department is organizational learning and organizational performance. The eventual question is the level to which the HRD can add to meaningful and substantial means to the firm’s achievement in whatever marketplace or area they operate in. Similar arguments rim strategic HRD (SHRD); the degree to which strategic human resource interventions aims at improving individual and organizational performance. Notably, it is argued that while human resource may try to find ‘integration’ with firm’s mission and objectives, the part of strategic HRD seems to be ‘proactive’ in both responding and shaping the corporate plan.

Recruitment, Selection procedures, Training and the Organizational Performance

Recruitment and selection create a key part of business’s overall resourcing plans, which identifies and obtains individuals required for the business to survive and prosper in short-term to medium-term. In fact, the basic goal of recruitment of employees is to form groups of appropriately qualified applicants to allow selection of the preeminent applicants for the business. The process appeals to more staffs to apply for organization’s posts while the basic drive of selection procedure is to select the right applicant to take the different positions in the company. In regards to suitable and/ or unsuitable employees, the Ernst and Young seeks to identify it by their rigorous selection criteria covering technical and soft skills required for each grade (Agrawal et al. 2016. p.11 )

The recruitment strategies have also changed. Instead of using the traditional approaches of recruiting staffs, it has been largely changed by the technological advancement such as the internet which has revolutionized the way new workers are recruited.

Many companies are now focusing on cutting the cost of their operation and one way through which the operational cost can be cut is through spending less in recruitment procedures. Companies have realized that applying the internet technology power to achieve human resource objectives not only raises productivity but similarly saves money and time. Apparently, this process of internet recruitment of workers is known as E-recruitment and it is defined as the procedure of recruiting workers through the internet. By using the E-Recruitment platform, job seekers stand a higher chance of increasing their potential job opportunities. Ernst and Young’s company has also adopted this new technology to help in the recruitment processes; the company uses Linkedin in the recruitment of workers. Additionally,Ernst and Young’s has similarly transformed its training process, whereby the training programs incorporate class lessons to better develop the new trainers to help in achieving the organization success (Agrawal et al. 2016, p. 8-11)

Available evidence has shown constructive and important relationship between recruitment, selection and training and the organization performance, proper recruitment, and selection. Training programs usually lead to the formation of a stronger effective team, which can help the organization to achieve success (Agrawal et al. 2016, p. 11)

Ernst and Young recruitment implication


Due to rapid transformation in the United Kingdom labour market, many companies have focused on only selecting the qualified workers to help them achieve performance success. The selection process should, however, be a comprehensive one in order to assist Ernst and Young identify the individuals with the required skills and experience. The objective should be to ensure that the company picks highly qualified employees who have diverse abilities and with the global outlook of the organization. (Mary 2010, p. 13)


For companies like Ernst and Young to find skilled staffs and hold the existing ones, businesses must be pushed to compete with each other by giving higher salaries and enhancing employees’ working conditions. Yearly increases in salaries or bonuses are used by different companies. Rather than allowances, some organizations consider this trend as a norm, which has enabled such institutions maintain their employees’ skills and experience. At the same time, many companies across the United Kingdom are facing challenges due to the economic crisis, which has pushed them to restrict their investment and resources in recruitment and training of workers, as well as in creating the new form of working conditions. Additionally, businesses with adequate assets have a better competitive lead infighting for expert labour, due to the fact that they are able to offer better salaries and bonuses. The problem of retaining workers can occur in a company due to the fact that many employees are willing to leave their positions and change workplace as they look for higher wages offered by other organizations. On this premise, companies can retain their workers through offering better wages and bonuses to act as a motivational factor for the employees and help them perform better in their areas of business operations. Different incentives such as additional training plans can also assist in developing the already recruited workers and make them gain valuable knowledge, which will provide possibility of filling the company senior positions, thus playing a pivotal role in achieving success for the company (Mary 2010, p 34).


Regardless of the fact that financial incentives are a substantial issue in workers’ retention, it is considered as the only motivation factor.The softer values have started to take an increasingly vital part in the motivation of workers. Values such as stability in the work environment, positive work environment, satisfying work undertakings, and responsibilities have also shown more approval, particularly among highly educated workers. Further, various fringe benefits, for instance supporting worker health care, sports activities, organizing mutual functions, feedback, lunch rewards, among others, have proved to be very successful in motivating the employees and encouraging them to deliver good results for the organization.

Performance Appraisal

In recent years, there has been an increasing significance in the softer values in the organizations, as seen in the establishment of human resource exercises such as performance assessment, training, and development. The performance appraisal can include consistent discussions with workers, assessment of their tasks, and the general satisfaction degree are regarded as a significant part of checking employees’ development. Worker performance is commonly evaluated using various measurement strategies, which are usually tied to firm’s rewarding systems


Training can also be employed as a motivation or retention instrument for workers. Training is considered as among significant means of teaching and developing workers’ talents with the aim of matching their skills and experience with the firm’s expectations. Based on the current economic transformations, there was an urgent need to find qualified staffs of Ernst and Young, who have both the abilities and skills that match the growing qualification requirements in the market.

For that reason, organizations should spend substantial capital on work and attitudinal trainings. Due to the growing globalization trend, employees should also be trained on cultural competency and cultural diversity in the workplace, which will help them have a different view of the diverse workplaces and assist in avoiding conflicts that may arise as a result of cultural misunderstandings (Agrawal et al.2016, P. 65)

The significant of human resource management to the organization

Human resource management is defined as management activities, comprising of recruiting, selection, training, motivating, and developing of staff in order to fulfill organization and workers’ needs, objectives, and goals. (Shivadrurappa et al. 2010, p. 34). In the modern business setting, Human Resource Management takes an important part in the success of the company. In specific time, a good human resource ensures that it picks the strengths and weaknesses in employees’ management with the aim of improving the experience of all stakeholders at a workplace, thus assisting in success of the entire organization. For that reason, businesses typically fall into2 groups: poor performance and super performance.

The super performance companies always retain employees that have high level of knowledge, abilities, and skills. The aim of retaining such employees is to make use of their competitive leverage and improve performance and success over time. On the other hand, poor performance businesses experience a shortage of competent human resource, thus experiencing operational failures (Shivadrurappa 2010, p. 3.). Therefore, the vital role of the Human ResourceManagement department cannot be underestimated.

The Human Capital Concept in Understanding Recruitment

The human capital is defined as “individuals and their combined skills, experience and abilities” that are attached with their capacity to apply their talents to benefit the company they are working for.Under human capital, employees are identified as making important contribution to the organizational achievement and establishing an important foundation of the competitive advantage. Employees usually create, retain and apply skills and knowledge (human capital), which produce intellectual capital to an organization (Agrawal et al. 2016,p. 56). Notably, this is evidenced in human capital philosophy. The philosophy stresses that employees possess distinctive behaviour, abilities, and individual dynamism; these features make up human capital that individuals convey to their job. Connectedly, the abilities, knowledge, and skills of persons make value in their work delivery, which is the reason why emphasis must be put on the methods of drawing, retaining, and growing the human capital.

The skills and knowledge of employees can be enhanced by means of communications among stakeholders in workplaces (social capital) and produce the established knowledge, which businesses own(organizational capital). People own innate capabilities, behaviours, and personal dynamism that make up features of human capital brought to the work. Unfortunately, what many managers fail to know is that it is employees, not their managers, who possess this particular capital and choose how, where, and when to apply it. Therefore, human resource departments must understand how to relate with employees in order to make use of different features of “human capital” in them.

Strategies for successful recruitment and retention of workers

Marketing the Business to Prospective New Workers

To compete effectively for a declining supply of workers, businesses that deals in public human services must reflect on what features bring uniqueness from services delivery. They need to develop, execute, and evaluate inclusive marketing strategies planned to let potential and new personnel know what the business is all about: its vision, mission, and principles; it’s past; and its obligation to offering services. The marketing strategy should recognize the significant features of the organizational culture so that the recruiters can share this information with prospective and new employees. The proposal has to respond to the following questions: what is distinctive about the business; why would a potential worker pick it over businesses down the street?

On the other hand, an operational marketing strategy ought to:

  • Identify the perceptions and needs of the current staffs and would-be new hires.
  • Craft the business identity.
  • Build or Modernize the business’s Mission and Vision Declarations
  • Recognize and eliminate obstacles to drawing high-quality workers
  • Package the business’s image.
  • Spread Word to Potential Employees
  • Improve the business’s Visibility
  • Observe and update business strategy as needed

Identify the perceptions and needs

In the identification of the perceptions and needs of the current staffs and would-be new employees, the first stage includes illustrating who potential and current workers are, what they require, and how these workers view the business. Recognizing the particular needs and views of current workers and prospective new hires involves conducting workforce satisfaction surveys which will collect data from the new recruits, current staffs, and existing workers. The collected data will then be benchmarked and studied by the experts while the results will be interpreted by the management team. The information should be discussed by the management and the issues identified are dealt with promptly in order to promote the employees job satisfaction level and motivate them to help the organization in achieving its goals. The data is helpful to the employees in identifying the areas which need change. Based on the findings, the management team plans the change process that will enable the organization to operate successfully without any interference from within.

Crafting the Business Identity

The next stage in marketing procedure is to agree how the business would be viewed by prospective new workers and the general public. The management team must ask itself the following questions.

  • What does that particular business want to be recognized for, especially by the new hires, potential hires and the general public?
  • Does this business expect to be recognized as the business which bends over rearward to be flexible in supporting workers?
  • Is the business offering forward-looking support to customers by giving a highly qualified workforce?
  • If the business is providing competitive reward packages by including workers in wide-ranging fund-raising activities?

Shaping for an identity for the organization may include making difficult decisions about the most vital elements to pass through to prospective employees. In creating this marketing character, the business must be sure to involve individuals at every level of the operation and in every aspect of the organization (Rashmi 2010, p.10).

Building or Modernising the Business’s Mission and Vision Declarations

In developing the business vision and mission, it is important to consider how the business will support persons who have abilities and will of helping an organization achieve its goals. The marketing strategy will rely on organization mission proclamation in directing undertakings to make progress needed and effectively show the organization’s uniqueness to present and future workers. The business’s mission and vision ought to match or be close to marketing message from the organization. For instance, if vision statement highlights knowledgeable, well-trained workforce, but the organization marketing message claims that anybody can perform this task, the discrepancy could be deceptive or unclear to potential workers.

Recognising and Eliminating Obstacles to Drawing High-Quality Workers

Once the business has its vision and mission statements in place to direct the change procedure, the next stage is to recognize machinery of the business that does not support the organization’s strategies and goals. At this stage, it is paramount to create changes desired with the aim of bringing business into an agreement with the mission and image. The process may consist of making sure that managers, supervisors, and administrators in the business have the abilities needed to achieve the organization mission and support the mission and vision, as well as attitude required in communicate with other employees.

Packaging the business’s Image

Packaging the business’s image includes developing distinctive slogans, names, colours, and logos for the business. The packaging of the human services business should centre, on telling how individuals interact with each other to attain the organization’s vision and mission. Marketing resources and plans should utilize the colours, slogans, names, logos, and explanations on how individuals interrelate with each other to clearly communicate the organization’s preferred image to prospective workforces. Further, it is significant to make sure that these features (colours, slogans, images and logos)are regularly updated. Even though updating these components can be costly, this is crucial because every generation of workers has diverse life experiences. Important to underscore is that the generation of baby boom grew up attending schools where people with disabilities were excluded from class; this has since changed and the workplace should reflect these changes to workers who might be less informed .

Spreading Word to Prospective Workers

Once the business is packaged through a new image, it will be advisable to spread out the news to prospective workforces on why they ought to consider getting employed in the organization and not any other public human service businesses. Many such businesses emphasize on spreading the news about particular current opportunities, which is not satisfactory. Spreading the news also comprises of communicating an unswerving message about an organization as a prospective establishment on the continual basis.

Improving The Business’s Visibility

Now that business has shaped its image and developed marketing slogans or messages to communicate, it is essential for this information to be dispersed both in the business and in the community or society.Improving the business’s visibility means conveying information both about present job opportunities and prospective occupations in the human services. On this basis, there are numerous ways to convey the business’s image to existing and prospective employees. Paid advertising in newspapers and on social media, radio or the television is one of the best strategies that help business visibility (Anne 2016, p. 12).

Observing and Apprising Strategy

The work of organization marketing strategy does not end when the plan has been executed; it requires continued attention to ensure that the strategy attends to changing desires and needs of potential or current workforce. Every generation of personnel has a distinctive set of needs and interests. An operational marketing strategy will, therefore, have to be revised regularly to ensure that it matches with the interest and desires of the workers


The following section contains theoretical background on numerous factors that help to prevent workers from quitting their positions, which include the workers’ orientation, training and the development. In the section, additional two motivation concepts are deliberated and clarified. After finalizing recruitment and the selection procedures, the business starts to get new workers. However, it does not mean that new employees are fully prepared to carry out all the assigned duties, as well as being committed to the new occupation for at least five to ten years. Hence, it is important to make the new workers love working for the organization, which is the first step of retaining employees in the business for longer. To build a right plan for holding workers, it is important to concentrate on the worker’s needs and appraise numerous apparatus that may be of great assistance in the process.

Employee Orientation in the Organization

The first day at the new workstation is usually a stressful experience for any new employee; it is always appreciative when a new worker feels expected and welcomed. Therefore, the manager should inspire the workforce to familiarize themselves with employees and build a positive environment. The orientation or the induction process should start by conveying the basic rules, politics, philosophy, procedures, and objectives of the organization (Agrawal et al. 2016, p. 45). All through orientation, pertinent information regarding working hours, the payment methods, the benefits, and precise duties and tasks ought to be conveyed in this process. The HR directors, administrators, and head of the departments should convey required information to the new worker. The main objective of organization’s orientation during the first days at work enables the employee to undergo socialization time very easily and gaining self-assurance and pride in the company.Any business must understand that first impression usually counts in the job satisfaction, proficiency, and organization allegiance. Thus, orientation package should be cautiously designed and piloted with arational timetable (Dpointgroup 2016, p. 25)

In the process of employee orientation, supervisors are the most important individuals; a supervisor is the one who guides and supports new workers. The key responsibilities are to decrease anxiety in the workplace and to offer motivation toward improved work routine. However, some businesses have friend system(buddy system), which is important for the orientation achievements.An experienced worker can offer new employees some guidelines about working or functioning in that particular business and keep them up to date with the organization’s programs. This type of system assists a new worker to adjust faster to the new steps in their career. Since buddy association is not built on hierarchy, the new worker doesn’t feel pressurized as compared to working with the departmental heads or the manager (Agrawal et al. 2016, p.15)

At the close of orientation procedure, new workers should assess and offer a reasonable response in form of presentations, content, and the general effect of induction as well as personal views of that particular organization. Assessment ought to be performed to support the business to expand or transform some units of orientation procedure, which will result in more useful staff-staff relations.

Training and development

There are four key steps which assist employees to be devoted to the organization:

Step 1: Reward individuals justly. The company should rationally assess workers with a suitable salary, promotions, bonuses, gift certificates or days off. Such instruments of appreciation and reward will inspire people to raise their work performance (Christian 2012, p. 45).

Step2: Treat organization’s members well. Building constructive and easy-going environment in business is very significant for retention of workers. The company needs to show some respect to the workforces, and address their needs such as on training, working conditions, and involvement in projects.

Step3: ‘Train’ workers and develop their abilities. The training is usually appropriate to the first-hand team members of any business; the new employee may have no real abilities set necessary precisely for this post. Training improves abilities and skills of old workers as many businesses prefer working with an individual who show some growth in career.

Step4: Growing the most gifted staffs. Besides having training development efforts on getting an employee ready to carry out a wider responsibility in future, making new leaders is important. Built on the evidence identified above, it is clear that training in organizations are crucial features of the employees’ retention.

Many businesses create their training plans with the aim of enhancing quality and productivity of work and also personal development of the workers. A new worker ought to go through numerous training events to be ready for the upcoming jobs in the business. At the same time, every other personnel should be occasionally trained. The organization training and development needs to be carried out for two major factors: the quick rate of economic and technological transformations and creating new occupations and the new working tools and methods, which encourage workforce to obtain new abilities and skills to keep up with changing times or technologies; and secondly, workers’ attitude towards the position which they hold, as most staffs tend to look for high paying job and chances to develop and build their career.

Episodic training is at all times essential to advance the workers’ performance; it helps the business and the employees to keep up with transformations in the marketplace and to display that a business takes good care of the employees as well as itself, which is important for employee retention in organizations (Agrawal et al.2016, p. 9). (Sinha,et al,2009) propose five kinds of training with their major classifications (Fig 1). The most valuable training technique that a company should select centres on the present situation in the business, the number of trainees and their skills, and the drive or goal of the training.

The Employee Motivation

Apart from the orientation and the business training undertakings, businesses should not overlook the significance of motivation since without motivation, it is difficult for any individual to effectively work. Motivation is defined as the multifaceted forces that keep the person at work or duty. Following this description, it may be claimed that motivation brings various features which may assist in worker retention. The main drive of motivation is to energize individuals in performing with interest, eagerness and inventiveness, as well as be accountable, disciplined, and devoted to the business. There are many motivation models and approaches. However, this section only focuses on two theories: Maslow’s and Herzberg’s theories.

Maslow’s Hierarchy of needs

Maslow’s hierarchy of needs are satisfied concepts which are fixated on motives and needs that trigger human behaviour (Friedrichs 2012,p.10). As a clinical psychologist, Maslow conducted research on human motivation and offered the Pyramid of needs and motives that every human have as shown in the figure below. Maslow’s Hierarchy theory is a widespread concept in any business setting when it comes to recognizing the employee’s needs (Mathe at al. 2011, p.13). Besides the five categories of needs, Maslow included ten qualities that people desire to get from any job (Fig 1). The ten qualities includeTo be able to work for well-organized managers; Think for themselves;Seeing the final outcome of their efforts , being allocated interesting assessments; respected, informed, listened, acknowledged, challenged, and being given a chance to increase their skill development (Agrawal et al., 2016, p, 34)

Figure 1: Maslow’s Hierarchy of needs.

At an organizational context, businesses should consider the Maslow’s hierarchy of needs and build an action strategy for the workers’ motivation.

Herzberg’s Two Factor Theory

Another well-known motivation model is the Two Factor Concept developed by Herzberg. The main aim of the concept is that diverse needs influence motivation at work. According to this theory, there are two forms of needs; the motivator factors and the hygiene factors. Motivator factors cause fulfilment and generate positive influence while the hygiene factors lead to displeasure and demoralization if unsatisfied(Mathe . 2011, p. 59). The mixture of these two elements improves motivation and assists in satisfying workers’ needs. Herzberg observed that “factors which contribute to fulfilment were not, contradictory to factors contributing to discontentment” (Mathe etal. 2011, p 19).

In business, organizations must take care and satisfy hygiene needs of their employees through delivery of sufficient compensation, and secure and safe working environments. Businesses should also realize motivation needs such growth and recognition in order to boost workers’ morale (Mathe 2011, p. 21)

Additionally(Dell et al,1993) gave a distinct guide to positive motivation in workplaces. According to Dell and Crisp, there are 5 stages with the abbreviation “LEARN”: which is explained below.

L– Learn always to be the Leader.The first skill the leader must show is the capability of leading.Notably, this may be carried out through two techniques: being well-organized (competent, skilled, productive and capable) and through teaching workers to be able to think on their behalf .Workers respect superiority and desire to see the leader act as their role-model. Additionally, managers ought to share the business vision and be able to tell if employees are committed to the vision.

E– Examine the Expectations.The stage consists of identifying the director’s anticipations for the workers. Important to note is that clarity of the anticipated final outcomes on employees’ undertakings should be emphasized. In this way, employees are motivated to participate in different organizational activities as they are aware of the ultimate consequences such as reward and appreciation of their handwork (Mary2010, p. 63).

A– Act as if You Care.Dell and Crisp (1993) noted that the moment employees feel that they are taken care of, they tend to perform their duties in high levels of morale. Care may be displayed through listening, particularly when workers have concepts on how to advance the working practice and what may be improved. The reciprocal communication builds the win-win state for both business and its workers. In addition to listening, directors ought to keep workers well-versed; without the well-run information strategy, it is difficult to know what is happening in all sections of a business. The sense of belonging is the best methods to close commitment gap.

R– Respect Staffs as Specialists.Business directors should treat employees with respect and give acknowledgement when necessary. Respect may be revealed through the good working environments, suitable working stations, and the attitude toward the workforces. Effective directors and business leaders never undervalue the power of acknowledgement as an effective influencer element. (Ian, 2013)

N– Never Suppress Personal Growth. Motivating workers in order to offer their best involves, among others, creating chances for further development. By creating opportunity for workers’ development, manager build enhance their personal skills and experience as well. Providing chances to employee’s development assists in growing new abilities in line with the changing industry and business environment (Dell & Crisp1993, p.76.)


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