Changing Context of Workforce Planning and Labour Market Change - Research Paper Example

Human Resource: Changing Context of Workforce Planning and Labour Market Change (Affiliate) Human Resource: Changing Context of Workforce Planning and Labour Market Change It is very clear from Noon and Blyton’s (2007, p. 41) arguments that the labour market in the United Kingdom is undergoing a tremendous transformation. From the case study, it is much evident that the characteristics and occupations of employees reflect the changing context of the labour market. Besides, technology and other factors play a critical role in contributing to the dynamic context of the workforce planning. As such, this paper primarily seeks to discuss the changing nature of the employment relationship but considering a myriad of factors including the labour market and the nature of the job. Also, the paper identifies any other factors that contribute to the changing context of the workforce planning apart from technology. The job market in the UK is dynamically changing the traditional contract-based jobs to the current distance or home based working mode. As such, most employees prefer teleworking at home to sitting in offices or working on a permanent basis. Teleworking requires that an employee uses both telephones and computers to carry out his/her duties either at differently positioned offices or home but using his/her residence as the main base. However, contractual terms are stringent and require the employee’s presence. Some of these contractual jobs are permanent, fixed, temporary, part-time, or casual (1). According to Noon and Blyton (2007, p. 41), the Labour Force Survey (LFS) report examined by Ruiz and Walling indicates that there were only over 2.4 million teleworkers in the UK by the spring of 2005. This sum represents a doubling in the number of teleworkers in the UK labour market between 1997 and 2005. In fact, the report shows that more than 8 percent of the employees in the UK were teleworkers in 2007, clear sign that the labour market was undergoing necessary changes. Also, the report indicates that the LFS essentially tracks two different types of teleworkers, including those working in their premises and those working in particular places like on the train, at their client’s homes, or in the cars. However, all the two types of teleworking services use the home comfort as their primary setups. In 2005, the majority of teleworkers worked in several places but used the home as their centre. The number represents a whopping 1.8 million out of a total 2.4 million. These figures just demonstrate how the labour market is vigorously shifting from the more demanding contractual basis to the less critical self-employment context. There are several factors central to the sudden change in the labour market context. The first primary aspect is the advancement in technology. The new skills and equipment have revolutionised and redefined the entire workforce because it has brought a range of capabilities that were initially far-fetched. For example, in the case study, the rise of computers and telephones has changed the game because it has made work easier for builders. They can efficiently execute particular duties at home and at the same time communicate with clients. This scenario contrasts the traditional white-collar-job setup that requires an employee to link remotely with the employer. Apart from technology, several other reasons perhaps drive employees away from the customary right jobs, hence making home based work more appealing and convenient. First, some contracts are not guaranteed, especially the zero or casual contract employment type. As such, employers sometimes take advantage of the contractual terms to exploit workers because of the exclusivity clause (Beaton, 013, p. 151). In the end, employees are not sure of getting working hours with one manager and cannot work for other companies. This particular part of the contract is a significant challenge to workers, especially since they are not productive without working. In fact, the employer has no legal obligation to guarantee work to their employees. Therefore, the problems related to contracts make the prospects of self-employment more appealing in the UK. This finding explains why about 62 percent of the teleworkers in the LFS report in 2005 were self-employed. Most of these employees seek freedom in self-employment. Some try to free themselves from strict working time regulations that require a minimum of 48 hours per week (Bacon and Storey, 1996, pp. 275-280). Besides, some seek financial freedom and the ability to make more money or profits depending on their personal input. This group of thought argues that contractual employment stipulates a basic minimum wage that applies to all employees. It fails to recognise individual effort. Also, a larger proportion of the proponents of self-employment perhaps open their enterprises because of the desire to become bosses. As such, they can make their decisions without following orders or directions from the management. Therefore, it is practical to relate the sudden twist in events in the UK labour market to the desire of workers to seek self-employment perhaps due to its tremendous benefits. Besides, some contractual workers, especially the casual labourers, are paid less compared to their permanent compatriots in the same job level. As such, people prefer working at their homes because it is less expensive and comfortable to wasting time in zero or casual contracts that pay less (Rees and Smith, 2014, pp. 304-310). In 2011, it was disheartening to note that almost one million people were on Zero hours contract in the UK, with 19 percent coming from the hotel and restaurant sector and 13 percent from the health area. However, 10 percent of the total figure came from the education subdivision. Finally, the high supply of skilled labour in the dynamic industry perhaps plays a critical role in driving employees to self-employment, including teleworking. The soaring supply is without doubt a dominant factor over the little demand hence affecting many aspects of the labour market including wage (Henry, 2012, p. 2). In the case study, it is clear that nine out of ten teleworkers are employed in managerial, technical, professional, and skilled trades. But, secretaries and administrators are the only teleworkers that can work in their homes rather than in different places. Therefore, just from the neoclassical market theory perspective, it is unquestionable that the demand for skilled labour will dip due to the high supply. As such, professionals and other skilled workers will look for other job opportunities like teleworking than the crowd in the less attractive contractual sector. References Bacon, N. and Storey, J., 1996. ‘Unilever – Flexible Working: Introducing annualized Hours and 24-hour Working’ in Storey, J. (ed.), Blackwell Cases in Human Resource and Change Management. Oxford: Blackwell Business. Beaton, F., 2013. Developing Effective Part-time Teachers in Higher Education: New Approaches to Professional Development. Oxon: Routledge. Henry, J. F., 2012. The Making of Neoclassical Economics (Routledge Revivals). Oxon: Routledge. Noon, M. and Blyton, P., 2007. The Realities of Work: Experiencing Work and Employment in Contemporary Society. 3rd ed. Houndsmills: Palgrave Macmillan. Rees, G. and Smith, P., 2014. Strategic Human Resource Management: An International Perspective. London: SAGE. Read More