Human resources are the people, who make up workforce in an organization. Human capitals are considered to be the most important organizational assets for organizational success (Albrecht et al. 2015). The study has chosen PTP Soda, which soda drink company and wants to downsize for significant business needs. Moreover, the organization wants to diversify its drinks with the changing market needs and consumer needs. The study will assess the impact of current labor trends on the workforce planning and market condition for the organization. Furthermore, the study will also assess the role of employers, government, trade union and industry in talent planning initiatives. The strategic positioning of the organization to attract the key talents will also be described in this study. On the other hand, the study will develop successful career development and succession planning retaining the remaining key talents. The cost benefit analysis of downsizing process will also be evaluated in this study. Lastly, the study will advice best practice of downsizing exercise for the PTP Soda.
Current labor trends can have huge impact on the workforce planning of PTP Soda. The falling unemployment rate of United Kingdom and the developed international countries can influence the workforce planning of the organization. In such situation, the demand for key talented employees will be higher for the organization than supply. Moreover, the unemployment rate of United Kingdom has remained stable at 4.3% through 18 years (Ons.gov.uk 2018). Hence, the organization will be forced to increase the wage rate of the employees due to higher demand of key talented employees for their new workforce planning. On the other hand, McKenzie, Theoharides and Yang (2014) opined that more than 3.6 million company chiefs are about to retire in this year, as younger professionals ascend to managerial slots. Hence, the organization is bound to hire younger job candidates for the key position of their new workforce planning.
The use of advanced technology has gained wider acceptance among the job candidates in the labor market. 75% of labors in the world labor market search jobs through online mediums (Ons.gov.uk 2018). Hence, the organization must use online technologies for hiring and retaining talented employees and preparing a successful workforce planning. According to Hanushek et al. (2017), rising rate of freelancing or part time job trends of the labors also highly influence the workforce planning of organizations. Moreover, 53 million workers in America work as freelancer and part time workers, which is expected to reach by 40% by the year 2020 (Bauder 2015). Several talented employees do to want to work in pressurized full time working environment. Hence, such labor trend can hamper the ability of the organization to hire full time talented employees.
According to International Labor Organization, the unemployment rate in the wealthiest countries is expected to drop by 5.5% (Bearce and Hart 2017). Such labor market trends have increased the employment option for the potential job candidates. Moreover, the demand for labor has been increased quite more than the supply of labors. Such labor market trends have tightened the labor market condition, where the employers are to increase the wage rate for hiring key talented employees. Furthermore, Card et al. (2018) opined that the labor trend is highly mobile occupationally and geographically. The share of migrant employees in the total UK employment has been increased from 7.2% in 1993 to 16.7% in 2015 (Deming 2017). Such labor trend has increased the supply of labors in the labor market of UK, which has ultimately loosened the UK labor market. Contemporary job candidates are high educated and having higher level of technological knowledge. Hence, such employees are highly demanding to the employers and such situation leads to tightening labor market condition and pressurized situation on the employers.
Talent planning initiatives seek to attract, identify, develop, engage, retain and deploy employees, who are considered particularly valuable in organizations. PTP can build a high performance workplace, learning environment and add value to their drinks brand through managing their talents strategically. However, the employers have to play a key role in preparing successful talent planning initiatives. Rathi and Lee (2015) stated that the employers must evaluate the demand and supply of the employees for perfectly matching their job roles with the employees for getting best performance outcome. On the other hand, the employers are responsible for conducting attractive employer branding for attracting key talents from the labor markets (Taylor 2010). Apart from that, such employers are also responsible for motivating and satisfying the existing key talents for retaining them towards long term organizational success.
As per Glaister et al. (2018), Industry plays a significant role in the talent planning initiatives of the organization. Industrial development highly attracts the key talents from the labor market, which helps the organization to access key talents easily towards implementing success talent planning initiatives. Apart from that, industrial development of a particular industry is directly associated with increasing numbers of key job positions in that industry. Hence, the organizations can better plan for career development and succession planning towards framing successful talent planning initiatives. Furthermore, Collings (2014) opined that favorable employment policies initiated by Government help the organizations in planning effective talent management initiatives. The minimum wage policies, equal employment opportunities and some other factory acts have led to favorable working condition for the employees in the organization. Such policies ultimately assist in attracting, motivating and retaining the key talents for organizational success. On the other hand, Sparrow and Makram (2015) opined that trade unions are responsible for protecting the interests of the employees by raising their voices to the employers. Trade unions are responsible for initiating an effective career development and fair employment practice in the organization. Hence, it has wide contribution in the in managing proper talent planning initiatives.
1.4.1 Proven Brand Strength in Job Advertisements
PTP Soda can position them strategically for attracting the top talents in future through attracting the attention of the targeted job candidates. The organization should use transparent and clear information regarding their brand strength for attracting the attention of the job candidates. Apart from that, the employers of the organization should also enhance the position attractiveness by clearly stating job duties, competitive compensation, benefits and geographical location in the job advertisement. Such attractive job related factors would definitely attract the attention of the top talents
1.4.2 Prioritize Intelligence over Experience
Experience is considered as one of the most important factors for building a strong team in the organization. Church et al. (2015) opined that the job roles, which require high level of technical knowledge and comprehensive understanding of system, need experience for building up skill sets. However, the experienced job candidates often try to apply traditional knowledge and technique in their jobs. Hence, the organization should sometimes target the new and fresh intelligent job candidates for fostering innovative ideas in producing new kind of drinks. Moreover, such techniques of prioritizing intelligence over experience would position PTP Soda strategically for attracting new top talents in future.
1.4.3 Targeted Recruitment Strategy
The job candidates are more likely work in an organization, where the employees from diverse backgrounds get equal treatment from the employers (Cappelli and Keller 2014). Hence, PTP Soda should use targeted recruitment strategy for positioning itself strategically in attracting the top talents in future. In such recruitment strategy, PTP Soda will use appealing recruitment message in its job advertisements based on diverse backgrounds of the job candidates. Such diverse and appealing messages would definitely attract the attention of the top talents from diverse backgrounds.
1.4.4 Offering Telecommuting Options
More that 70% job candidates around the world seek jobs through online mediums like emails, social media, telephone and others (Thunnissen 2016). Hence, PTP Soda should offer telecommuting options for attracting new top talents for their key job positions. Moreover, the organization should use emails, social media sites, telephone and others for reaching more numbers of top talents in the job market. Hence, this strategy would definitely position the organization strategically for attracting the top talents in future.
2.1.1 Assessment of Skill Gaps
Assessment of skill gaps is an important area of talent planning, where the skills of the existing employees are compared with the skills that are actually required for the job positions (Webb, Diamond-Wells and Jeffs 2017). In case of PTP Soda, the organization is going to change its business process for producing innovative drinks. Such changes require new and advanced knowledge and skills on the part of the employees for producing new types of drinks. Hence, the organization must assess the skills of the existing employees for matching with the job skills that are actually required for the changing business process. It will ultimately identify the skill gaps among the employees in comparison with new required skills for the job. In this way, the organization should conduct downsize for terminating the employees, who are no longer needed in their changing business process due to their major skill gaps.
2.1.2 Job Posting
Job posting is extremely important for PTP Soda to retain some key talents, who have high level of potentiality and advanced skill sets for contributing in changing business process. As per Gilding, Gregory and Cosson (2015), job positioning is an arrangement in which an organization internally posts a list of job openings for the existing talented employees, so that they can develop their career paths. Job position is highly effective to attract and retain the existing key talents during downsizing, as it meets the expectation of the existing employees to develop their career. Likewise, PTD Soda should conduct internal job positing, where the existing key talented employees would get a scope of developing their career. Such scope of career development would highly attract and retain the key existing talents even during downsizing process.
2.1.3 Natural Selection Succession
As per Herzberg’s motivational theory, sense of achievements and recognitions yield positive satisfaction and motivation for the employees (Allen and Bryant 2012). It means that effective succession planning is highly important for attracting and retaining the existing talented employees (LeCounte, Prieto and Phipps 2017). PTP Soda should use natural selection success, where the organization will fill the new key job positions with the existing employees, if they fit best for the position. However, the organization can also hire from outside, if the existing employees do not fit best for the new job positions. Such succession planning would definitely attract and retain the existing employees, who will remain even after the downsizing.
2.1.4 Acceleration Pool
Acceleration pool is an extremely important factor of success planning, which develops skills and confidence among the existing employees of an organization. In this succession planning, PTP should invest in nurturing the skills of the high potential staffs through training, coaching and assigning important work assignments. It will align the skills of the high potential existing employees with the new skills required for changing business process of PTP Soda. Hence, it will definitely retain the remaining employees of the organizations by enhancing their confidence
Suitable recruitment methods are extremely helpful for sourcing most suitable job candidates, who will be most suited for the vacant job position of an organization. In case of PTP Soda, the organization is going to downsize for firing some employees, who are no longer needed for their new production process. However, at the same time, the organization also needs some key talents for implementing their new production process. In such situation, the organization can use internal positioning method for recruiting the best talents for their talent planning initiatives. In such recruitment method, the employers will recruit the key existing talents from within the organization. Such people must have skill sets, which will have best fit with the required skill sets for the changing business needs (Cappelli and Keller 2014). On the other hand, the organization can also adopt job advertisement method, where the employers will post job advertisements on social media sites for getting access to wide ranges of talent pools. However, internal job posting method would be best for PTP Soda, as it would motivate and retain the existing key talents as well as fill the vacant position with best employees.
3.1.1 Strategies to Retain Key Talents
Creating New Career Path
According to Maslow’s motivational theory, the scope of career development meets the self-esteem needs of the employees for their ultimate motivation. The organization can retain the key talents for longer period of time through providing them appropriate scope of career development (CIPD 2018). Likewise, PTP Soda should use the strategies of creating new career path for the existing employees to retain them during potential downsizing process.
Employee Engagement
Most of the employees of PTP Soda may leave their job during potential downsize, as they may feel undervalued at their workplace. According to Collings (2014), employee engagement is a workplace condition, where the employers engage the employees in important organizational decision making process. Likewise, PTP Soda should use employee engagement strategy for retaining the key talents during potential downsizing. High level of employee engagement will enhance the value of the employees at their workplace, which motivate will them to stay at their current jobs for longer period even during downsizing process.
Proper Mission and Vision
As per Goal Theory of Motivation, specific and realistic goals always lead to high level of the employee engagement, which ultimately leads to organizational success (Gross 2015). Hence, PTP Soda should set specific and realistic mission and vision for achieving the organizational goals of producing diverse drinks. Such strategy will keep the existing employees highly engaged with the goals of the organization. Hence, such employees will be willing to stay in the organization for longer period towards achieving the organizational goals.
Reward and Recognition
According to Bearce and Hart (2017), effective reward and recognition programs provide adequate value to the employees as per their contribution level in organizational success. Hence, PTP Soda should use proper reward and recognition for retaining the key talents during potential downsizing process. Moreover, proper evaluation and praise for the performance will encourage the employees to stay at their current jobs for longer period of time
3.1.2 Assessment of Reasons for Employees to Leave
Job Insecurity
According to Deming (2017), downsizing is an organizational process, which terminates the number of employees, who are no longer needed in the organization. Moreover, it reduces the number of employees in the pay roll of the organization. In case of potential downsizing of PTP Soda, the organization may face job insecurity at their current workplace during the process of downsizing. Hence, the employees may want to leave their jobs in the organization.
Low Morale
Downsizing leads to sudden termination of the employees from the payroll of the organization. Hence, such sudden termination of the colleagues leads to low morale among the existing employees of the organization. Likewise, the employees may be willing to leave their current jobs during downsizing process due to low morale and job insecurity.
Unwillingness to Adopt with Changes
PTP Soda wants to diversify its drinks due to changing market condition and demand of healthier drinks. Hence, the remaining employees after downsizing need to adapt new business process and techniques for achieving organizational goals (Chen and Mykletun 2015). In such situation, the existing employees may be resistant and unwilling to adapt the new business changes at the organization. Hence, such employees may be willing to leave their current jobs after downsizing.
4.1.1 Early Retirement
Tsai and Yen (2015) opined that early retirement is the practice of leaving employment before the statutory age, especially for the favor of financial gains. Early retirement can be one of the best practices for successful downsizing process. Hence, PTP Soda can be advised with effective early retirement strategy for successful downsizing process. In such practice, the organization should offer attractive financial incentives to the employees for terminating their employment. The attractive early retirement incentives will encourage the employees to happily leave their current employment. However, the organization will be liable to pay all their pension and early retirement incentives immediately after retirement.
4.1.2 Redundancy
As per Kalev (2014), redundancy is an inevitable part of downsizing process, where an employer ceases the employment of the employees to carry out work in their organizations. It is mostly applied in such situation, when there is a reduce need for the employees for a particular job position. Likewise, PTP Soda can also adopt redundancy process for successful downsizing process and reduce the numbers of unwanted employees in their pay rolls. However, as per redundancy law, the employers are liable to entitle a minimum period of 12 week’s notice to the employees, if they are employed for 12 years or more.
4.1.3 Buyout Packages
Snorradóttir et al. (2015) stated that buyout is an important practice for downsizing, where the employers offer some employees the opportunity of receiving large severance packages in turn of leaving their employment. It is mostly offered ton non-critical employees, who are less required for the critical success of organizations. Hence, PTP Soda can successfully use buyout packages for conducting successful downsizing process However, the agreement of buyout between the employers and the employees should be under legal contracts.
4.1.4 Layoffs
Morgan and Harris (2015) pointed out that lay-off is the temporary or permanent suspension and termination of the employees from their employment due to significant business reasons. Layoffs are usually caused due to lack of work, cash and materials in organization. Hence, the organization should use layoff strategy for conducting downsizing process. However, the employers must provide prior notice to the employees before layoff so that they can find any alternative jobs for them in any other organization.
Conclusion
While concluding the study, it can be said the demand for key talents is higher than supply, when there is reduced unemployment rate in United Kingdom. Hence, the employers of PTP Soda need to increase the wage structure for the employees in their new workforce planning. Government is highly responsible for success talent planning initiatives by setting favorable employment conditions. PTP Soda can strategically position itself for attracting key talents through proven brand strength in their job advertisements. The organization should retain the remaining existing employees through effective succession planning. Apart from that, PTP Soda should adopt redundancy, early retirement, buyout packages for successful downsizing process
Reference List
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.
Allen, D. and Bryant, P. 2012. Managing employee turnover: myths to dispel and strategies for effective management. New York, Business Expert Press.
Bauder, H., 2015. The international mobility of academics: A labour market perspective. International Migration, 53(1), pp.83-96.
Bearce, D.H. and Hart, A.F., 2017. International Labor Mobility and the Variety of Democratic Political Institutions. International Organization, 71(1), pp.65-95.
Cappelli, P. and Keller, J.R., 2014. Talent management: Conceptual approaches and practical challenges. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), pp.305-331.
Card, D., Cardoso, A.R., Heining, J. and Kline, P., 2018. Firms and labor market inequality: Evidence and some theory. Journal of Labor Economics, 36(S1), pp.S13-S70.
Chen, S.P. and Mykletun, R.J., 2015. Beyond post-downsizing organisational injustice and counterproductive work behaviours: Antecedents and consequences of learnt helplessness. International Journal of Business and Management, 10(6), p.1.
Church, A.H., Rotolo, C.T., Ginther, N.M. and Levine, R., 2015. How are top companies designing and managing their high-potential programs? A follow-up talent management benchmark study. Consulting Psychology Journal: Practice and Research, 67(1), p.17.
CIPD. 2018. CIPD The Professional Body for Human Resources and People Development. [online] Available at: https://www.cipd.co.uk/ [Accessed 11 Apr. 2018].
Collings, D.G., 2014. Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business, 49(2), pp.253-261.
Deming, D.J., 2017. The growing importance of social skills in the labor market. The Quarterly Journal of Economics, 132(4), pp.1593-1640.
Gilding, M., Gregory, S. and Cosson, B., 2015. Motives and outcomes in family business succession planning. Entrepreneurship Theory and Practice, 39(2), pp.299-312.
Glaister, A.J., Karacay, G., Demirbag, M. and Tatoglu, E., 2018. HRM and performance—The role of talent management as a transmission mechanism in an emerging market context. Human Resource Management Journal, 28(1), pp.148-166.
Gross, R.A.U.S.H.A.N., 2015. Organizational downsizing: The past and present organizational strategy–a review. International Journal of Research in Business Management, 3(1), pp.23-30.
Hanushek, E.A., Schwerdt, G., Woessmann, L. and Zhang, L., 2017. General education, vocational education, and labor-market outcomes over the lifecycle. Journal of Human Resources, 52(1), pp.48-87.
Kalev, A., 2014. How you downsize is who you downsize: Biased formalization, accountability, and managerial diversity. American Sociological Review, 79(1), pp.109-135.
LeCounte, J.F., Prieto, L.C. and Phipps, S.T., 2017. CEO Succession Planning and Organizational Performance: A Human Capital Theory Approach. Journal of Leadership, Accountability and Ethics, 14(1), p.46.
McKenzie, D., Theoharides, C. and Yang, D., 2014. Distortions in the international migrant labor market: Evidence from Filipino migration and wage responses to destination country economic shocks. American Economic Journal: Applied Economics, 6(2), pp.49-75.
Morgan, J.I. and Harris, P.R., 2015. Evidence that brief self-affirming implementation intentions can reduce work-related anxiety in downsize survivors. Anxiety, Stress, & Coping, 28(5), pp.563-575.
Ons.gov.uk. 2018. Unemployment – Office for National Statistics. [online] Available at: https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment [Accessed 6 Apr. 2018].
Ons.gov.uk. 2018. Unemployment – Office for National Statistics. [online] Available at: https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment [Accessed 6 Apr. 2018]
Rathi, N. and Lee, K., 2015. Retaining talent by enhancing organizational prestige: An HRM strategy for employees working in the retail sector. Personnel Review, 44(4), pp.454-469.
Snorradóttir, Á., Tómasson, K., Vilhjálmsson, R. and Rafnsdóttir, G.L., 2015. The health and well-being of bankers following downsizing: a comparison of stayers and leavers. Work, employment and society, 29(5), pp.738-756.
Sparrow, P.R. and Makram, H., 2015. What is the value of talent management? Building value-driven processes within a talent management architecture. Human resource management review, 25(3), pp.249-263.
Taylor, S. 2010. Resourcing and talent management. 5th ed. London: Chartered Institute of Personnel and Development.
Thunnissen, M., 2016. Talent management: For what, how and how well? An empirical exploration of talent management in practice. Employee Relations, 38(1), pp.57-72.
Tsai, P.C. and Yen, Y.F., 2015. Development of institutional downsizing theory: Evidence from the MNC downsizing strategy and HRM practices in Taiwan. Total Quality Management & Business Excellence, 26(3-4), pp.248-262.
Webb, T., Diamond-Wells, T. and Jeffs, D., 2017. Career mapping for professional development and succession planning. Journal for nurses in professional development, 33(1), pp.25-32.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download