CIPD Resources and Talent

Management – Formative Assessment

1
 August 3rd, 2019  Abdul Azim  Free Papers

CIPD Level 7 – Resources and Talent

Management Assignment Sample –
Formative Assessment 1 (40572/16)
7RTM
This paper is for sample purpose only

Introduction
Employment market refers to a market in which employees look for
jobs while employers look for employees (Atkinson and Storey, 2016).
Employment market is a concept that demonstrates competition and
relationship between different labor forces. This market has the
tendency to grow and shrink based on labor demand and availability of
workers supply which is present in overall economy. There are
different factors which influence this market such as needs of specific
industry, requirements of job functions and need for particular skill set
and educational level. Employment market and its changes are an
important element of any country’s economy and they are directly
linked to demands of services and goods. This report is aimed at
analyzing and evaluating features of national and international
markets and how these markets have evolved over time.

Major features of National Employment

Markets
National employment markets involve employees finding paying work,
employers look for willing workers and rate of wages are decided. The
employment markets can be national and international depending on
their scope. National employment markets are formed of smaller and
interacting labor markets for geographical locations, skills and
different qualifications. There are different features of national
employment markets. One of the main features of national employment
is market is that it is inflexible and rigid (Aronson, 2019). The rigidity
of employment market is natural because of geographical evolution,
legal and institutional aspects, professional and lifestyle training.
Between various industries and countries, differences between
salaries exist across various regions of the country. Such rigidity is
also due to low employment rate and high inflation rate. The
employment market is influenced by supply and demand of employees,
reaction of economic operators and effects of social-economic
sectors. The volume and structure of workforce depends on labor
demand which is dependent on demand of services and goods.
Employment market is regulated; this feature of market is outcome of
workforce particularity and requirement for ensuring employee
protection. It is controlled by the competition through trade unions
(Barbieri and Cutuli, 2015).
There is a constant need of improving employment market for fighting
unemployment and making sure population employment is managed
properly. Another feature of national employment market is that it is
participatory and contractual market. Employers and employees make
contracts and conduct negotiations and these provide tool for
regulating structural, qualitative and quantitative aspects.
Relationships between buyers and sellers are governed by agreements
between representatives of public power, employers and employees as
well as laws. Another feature of employment market is that it is
administrative as companies’ resource management takes place as
per demands of services and goods. This involves considering
personnel wage plan as well as workforce. The national employment
market is multidimensional due to economic, geographical, social and
educational scale (Sacchi and Vesan, 2015). Geographical scale is
characterized by working population, available workforce and
population on age categories. Economic scale is characterized by
public participation in economic process, population distribution
according to areas of activity and professions and costs which is
implied due to inactive population. Educational scale is characterized
by training level of population, number of people belonging to specific
learning form and average learning duration. Social scale is
characterized by reconversion or insertion of employees and costs
related to social protection. National employment market also tend to
be inconsistent as employees have different levels of education,
qualification, training, workers come from different geographical
areas, genders, ages, standards and aspirations. National employment
market is also imperfect due to contemporary economy and the
competition is also not perfect. The price of workers is determined by
factors of state national economies, bargaining power of patronage
intervention or trade unions and state intervention.

Major features of International Employment

Markets
The international employment market consists of systems of relations
which establish as a result of interactions between States. This is
concerned with coordination of demand and supply of global workforce
and conditions that are associated with social protection, labor
formation and wage (Bonoli, 2017). These relations are based on
irregularity of labor distribution across different countries and
existence of differences that occur at national level. The growing
interdependence in modern world and globalization of production is
leading national employment markets to lose isolation and insularity.
There are transnational flows of workers who acquire systematic and
permanent. Therefore, together with international market of services,
capital and goods which are present in significant proportions,
international employment market can be called sum of national
markets and systems formed of relationships between different states.
The demand for foreign workers increased when mass export of
private productive capital took place and companies were created in
countries utilizing local labor. Capital went to places of labor
concentration that has cheaper workforce in exporting country. In new
industrial countries still wages are lower as compared to other
developed western countries. The world economy uses cheap labor
resources and contributes to productive capital of economically
developed countries depending on manufacturing and development of
forms of work in organization.
The international labor market can be evaluated in two segments. The
first segment of this market involves labour which consists of stability
of employment skills, relatively constant employment, high salaries
and qualifications and there is a clear hierarchy of qualifications. The
international employment market features privileged layer of workers
who belong to developed countries as well as developing countries
(Avendano and Berkman, 2014). This layer of privileged employees is
employed in various international organizations such as International
monetary fund, UN specialized agencies, UNESCO, WTO and others.
The international workers are employed in these organizations on
international basis and the rule of professional suitability is rigid. 
Second segment covers workforce that belongs to different regions of
the world that have relatively low level of economic development. In
such a workforce there is a great need of identifying specific
detachment with illegal labor, flow in industrial countries especially in
United States. This category of workforce is often termed as
environmental refugees who may leave their own countries and are
forced to seek work in international markets. Thus an important
feature of international market can be regarded as illegal movement of
workers between countries. The economic function of illegal
employment market is usually associated with requirements of great
mass of medium and small companies in industrial countries.
International employment market is employs illegal immigrants
because they are cheap labor resources. Another segment of highly
skilled employee such as engineers, scientists and systems analysts is
also emerging in global employment market (Manning and Petrongolo,
2017). Development of this segment is because of rapid increase in
world trade related to services.

Ways in Which Markets Evolve

The employment markets operate at national, local, regional and
international levels and they reflect working of economies. There are
various forces which influence these markets such as changes in
external business environment, cheaper competition leading to
unemployment, increase in consumer demand for services and good
for a certain industry, changes taking place in production processes,
changes in internal business environment, emergence of new business
structures and technologies leading to unemployment, interventions of
government, changes in level of occupations that are available,
programs which support investment in training and education.
Different laws also change the dynamics of employment markets such
as Equal Pay Act, Race Relations Act, Sex Discrimination Act, Asylum
and Immigration Act and National Minimum Wages or free movement
of labor that affects employment rights (Subramanian and Megginson,
2018). These laws put restriction of how employees are recruited.
Employment labor markets are evolving due to shift in demographics
such as changing trends in aging and declining rate of birth. This shift
in workforce demographic has lead to labor shortage and is leading
employers and policy makers to think different about talent sourcing.
The talent search in employment market is emerging differently as it is
becoming more intense. Countries who are unable to find talent in one
country they may employ remote employees from other countries.
Employment markets have also changed in aspect of individual choice
as millennials are changing directions and pursing multiple careers in
their working lives. The goal of millennials today is to be employable
that is to develop expertise, skills and experience which are needed
for moving up (Baruch, 2015). This is giving people more flexibility and
greater choice at different stages in their lifetime career. The
technological revolution has also changed employment markets as
companies have shortened their business cycles and global
completion has risen. Emergence of artificial intelligence is also
impact job market as more and more jobs are becoming computerized.
Changes have also taken place in client sophistication and data.
Talent management has become a science for organization that
handles big data and supply chain sophistication related to retention
and recruitment. The goal of organization is to have better productivity
and greater efficiency which is transforming the way companies
looked at talent management.

Conclusion
The employers today are adapting to workforce trend, opportunities
and wages which is being dictated by skills rather than tenure. There
is talent shortage which is being tackled by retaining employees
through greater investment in education and training programs. Based
on the evaluation of features of national and international markets
conducted above, it can be concluded that market feature may vary
depending on economics of the different countries, emerging
technologies, workforce dynamics and new laws being developed for
talent management. Policy makers are in need of exploring new ways
for talent retention locally and international by focusing on
employment for life, encouraging lifelong development and learning
and improving workforce mobility.
 
 

References
 
Aronson, R.L., 2019. Self employment: A labor market perspective.
Cornell University Press.
Atkinson, J. and Storey, D.J., 2016. Employment, the small firm and
the labour market. Routledge.
Avendano, M. and Berkman, L.F., 2014. Labor markets, employment
policies, and health. Social epidemiology, pp.182-233.
Barbieri, P. and Cutuli, G., 2015. Employment protection legislation,
labour market dualism, and inequality in Europe. European
Sociological Review, 32(4), pp.501-516.
Baruch, Y., 2015. 24 Organizational and labor markets as career
ecosystem. Handbook of research on sustainable careers, p.364.
Manning, A. and Petrongolo, B., 2017. How local are labor markets?
Evidence from a spatial job search model. American Economic
Review, 107(10), pp.2877-2907.
Sacchi, S. and Vesan, P., 2015. Employment policy: segmentation,
deregulation and reforms in the Italian labour market. The Italian
welfare state in a European perspective: A comparative analysis,
pp.71-100.
Subramanian, K. and Megginson, W., 2018. Employment protection
laws and privatization. The Journal of Law and Economics, 61(1),
pp.97-123.