Comparing Labour Market Conditions In The UK And UAE: An Analysis

Labor Market Conditions in the UK and UAE

A labor market is a place that supports the interaction between employers and employees (Bratton and Gold, 2017, n.p). It gives employers an opportunity to hire qualified employees and employees are required to perform their duties effectively and efficiently to achieve the goals of an organization. This paper analyses the conditions of the labor market by comparing those in the United Kingdom (UK) and the United Arab Emirates (UAEs).

In the UK, a person over the age of sixteen may be classified as employed, unemployed or economically inactive (Gomes, 2012, p.170). The statistics on employment show all the people being paid for work. It may be part-time or full-time. Unemployed people are those that have been looking for a job within the last one month and there is a possibility of starting in the next two weeks. Similarly, people who are unemployed do not have claim over any benefits. The economically inactive are those that have not been looking for any form of employment for the past one month, therefore, cannot start working in the next two weeks. A person may choose not to look for employment due to taking care of the home and family, education, disability or illnesses.

When it comes to employment, statistics agree with the number of people being paid and not the jobs because some people hold more than one job. The rate of employment is measured between the ages of sixteen and sixty-four. The comparison in the rate of employment between men and women began in 1971. From that time, the rate of employment was at its lowest in 1983. An increase in the rate of employment between both genders was witnessed in 2012. Between the months of June and August this year, the rate of employment rose from 75.1% to 75.5% (Checchi and García?Peñalosa, 2010, p.433).

   

Rate of Employment (Forth et al, 2013, n.p).

The rate of employment rose from 75.1% to 75.5% between the months of June and August this year but this was lower than that of March which was 75.7%. The rate of employment in men aged between the age of sixteen and sixty-four 80.1%. The rate of employed men has reduced since 1991. The rate of employment in women aged between the ages of sixteen to sixty-four continues to rise. Research shows that 71% of women are employed. This number has increased within the past one year from 70.7% to 71.3% (Forth et al, 2013, n.p). The increase in the rate of employed women is due to the changes in the terms of their pension making few women retire between the age of sixty and sixty-five.

Analysis of Employment, Unemployment, and Economic Inactivity Rates

The public sector employment is the number of employees under the local and central government and public organizations. Private sector employment is determined by finding the difference between the total employment and public sector employment. The reclassification effects are the changes caused by the comparison of the public and private sectors of employment (Clauwaert and Schömann, 2012, p.61). The graph below shows the estimation of employment in both sectors without the effects. Between the months of March and June this year, the rate of employment in the public sector dropped by four thousand because Welsh housing association was transferred into the private sector. Without the transfer, the number of public sector employment increased by sixteen thousand. Between June 2017 and 2018 the rate of employment in the public sector reduced by one hundred and twenty-two thousand due to the transfer. Without the effect, the number of employees in the public sector rose by thirty-four thousand. Currently, the rate of employment in the public sector National Health Service is 30.9% and those in education are 28.3% (Forth et al, 2013, n.p).

Public Sector Employment in National Health Service and Education (Forth et al, 2013, n.p).

Unemployed people are those that have been looking for a job within the last one month and there is a possibility of starting in the next two weeks. The rate of unemployment by determining the economically active people that do not have jobs (Gautié and Schmitt, 2010, n.p).  The lowest rate of unemployment was 3.4% in 1971 and the highest was 11.3% in 1984. Currently, the rate of unemployment is 4%.

The Rate of Unemployment (Forth et al, 2013, n.p).

1.36million people are unemployed, 733,000 of them are men while 630,000 are women.

The economically inactive are those that have not been looking for any form of employment for the past one month, therefore, cannot start working in the next two weeks. In 1971, the rate of economic inactivity fell due to the reduction in the rate of economic inactive women. In men, the economic inactivity rose. A person may choose not to look for employment due to taking care of the home and family, education, disability or illness (Adsera, 2011, p.5).

 

Economic Inactivity (Forth et al, 2013, n.p).

In the United Arab Emirates, the labor conditions are classified as employed, unemployed or economically inactivity. A person is allowed to work from the age of 15. The statistics on employment show all the people being paid for work. It may be part-time or full-time. The economy of UAEs grew in 1971 due to capital productivity (Campante and Chor, 2012, p.170). UAEs has a total of nine million people. As of 2013 4.4 million of the total population were employed.

Key Legislation that Links to R&S Context

 When it comes to the comparison between the public and private sector employment in UAEs, the private sector has higher opportunities than the public. The public sector only holds 20% of the jobs. In the public sector, the amount of salary depends on the level of education and experience (Burden?Leahy, 2009, p.550). The profits in the private sector may be reduced because they apply nepotistic hiring. This may cause a problem when it comes to the performance. The private sector pays based on performance. The difference between the two sectors is the lack of competition. Lack of competition makes companies deliver services of poor quality due to unavailability of improved technology.

When it comes to the rate of employment in men and women. Men have the highest percentage compared to women. In UAEs, it was believed that the women belonged at home. Their duty was to take care of homes and family and had no time to acquire employment. Over the years, the number of female employees is increasing due to the global fight on gender equality (Itani et al, 2011, p.417). Even though it is increasing slowly and women do not hold the same positions as men in the organizations, but they have an opportunity to go to work. UAEs is far from embracing gender equality in organizations. In UAEs, women hold 19% of the jobs.

Unemployed people are those that have been looking for a job within the last one month and there is a possibility of starting in the next two weeks. The rate of Unemployment in the UAEs increased from 1.64% to 1.7% between 2016 and 2017. Between 2017 and 1985 the rate of unemployment was 2.85% on average with the highest being 4.20% in 2009 and the lowest at 1.15% (Kapiszewski, 2017, p. 70).

Rate of Unemployment (Kapiszewski, 2017, p.70)

The economically inactive are those that have not been looking for any form of employment for the past one month, therefore, cannot start working in the next two weeks. A person may choose not to look for employment due to taking care of the home and family, education, disability or illnesses. In UAEs, the total population of those who are inactive economically is 51.6%. 35.7% of the population are students, 50.7% are men, and 30.5% are women. 51.4% are housewives, and 9.2% are over the age of sixty-five (Kapiszewski, 2017, p.75). When it comes to men, 7.6 are retired and 13.6% are over the age of sixty-five.

Retention Approaches

Additionally, the importance of tight and loose labor market conditions should be discussed regarding employment, unemployment and their impact on the economy. The tight labor market is when the economy is experiencing an almost full employment which makes the recruitment process difficult and effects on wages.  An economy that experiences almost full employment rises the demand for the product leading to an increase in output (Lengnick-Hall et al, 2013, p.371). This means that employees cannot be hired because they are few hence shifting the demand labor curve to the right. This causes the wages of employees to rise because they have a higher bargaining power. The importance of the tight labor market is that it increases the rate of employment. An increase in the rate of employment improves the living standards of people by reducing the rate of poverty thus leading to the growth of the economy.

Recruitment is the process of identifying a vacancy and formulating job descriptions, personal attributes, and competencies in an organization. Selection, on the other hand, involves choosing a qualified candidate to fill the vacancy (Swart and Kinnie, 2010, p.65).

A job description describes the qualification of a certain job in terms of duties and responsibilities, purpose and scope. As time goes by, companies are considering job description to be a form of the past and the present but a job description based on competence is of the present and future. When it comes to the formulation of a job description, factors such as the structure of the organization, analysis of the job, a description of the job and its forms have to be considered. The structure of the organization arranges jobs into positions. Additionally, it shows the relationship of people in an organization which may be formal or informal. Large corporations embrace organizational structures that are bureaucratic and a top to down management approach (Klett, 2010, p.278). Organizational structures also encourage teamwork. Through teamwork, the employee gets to acquire knowledge and experience from others.

Workflow analysis is the process by which the organization applies feedback acquired from the customers to improve the productivity of the products. In this case, the employees need to be aware of the goals of the organization. Companies embrace advanced technology to produce products of high quality. Qualified employees would get to perform their duties effectively and efficiently to produce quality products at a lower cost. Job design involves an analysis of job description, workflow, and organizational structure. When it comes to job specifications, the description of a person needed for the job is given regarding the qualifications, experiences, skills, and motivation (Eric Soderquist et al, 2010, p.331). Skills are shown when a person performs his duties with confidence. A candidate needs to possess competencies that will help achieve the plans of the company. An employee should be able to work under minimal supervision, perform his duties as an individual or in a team, time conscious and flexible.

Workforce Planning

When it comes to the process of recruitment and selection the law has to be adhered to. The organization should promote equality and protection of its employees. Candidates have a right to be appointed to various positions regardless of their background and personality traits. The process of recruitment and selection should be open and accessible to any qualified candidates. The law exists to protect potential employees from discrimination (Stoilkovska et al, 2015, p286). In the process, the organizations are required to make adjustments that can accommodate people with disabilities. The language used in the advertisements should not discourage some people from applying for the job. During the interviews, the organization should focus on the job description and not the candidate’s personal traits and background. Some jobs may assess a person through tests. The tests should focus on the requirements of the job and not personal information. The personal information should be confidential. The process of recruitment and selection should observe equality (Stoilkovska et al, 2015, p286).

Various methods such as social media and agencies can be used in the recruitment and selection process. Using social media in the recruitment and selection exercises has its strengths and weaknesses. The application of social media is cost-effective. All an organization needs is a computer and the internet connection. It is quick thus saves time and cost. The organization would not need to print out forms or pay interviewers. Social media embraces advanced technology. With improved technology, the process is carried out efficiently. Through social media, the organization gets to meet many people (Parry and Wilson, 2009, p.664). This will help the company acquire highly qualified employees. The company also gets to provide information on its culture. This enables the employees to easily adapt to the organization. The huge applications are handled in a consistent way. Consistency enables businesses to acquire feedback and top talent in the market. The weaknesses of social media are that the company may get inappropriate applications. This happens when an applicant has not gone through the job specification. The technical difficulty may destroy the brand of the organization by scare potential applicants. Social media is discriminatory especially to those who are not computer literate.

Strengths of using social media	Weakness of social media
Cost efficient Quick Improved technology Global reach Vacancy wide known Supports the brand Consistency	Inappropriate applications Technical difficulty Promotes discrimination

Agencies can also be used in the recruitment and selection exercise. The strengths of using agencies is that they are experts in the recruitment market. Agencies have knowledge of the market and know what is best for the company (Coff and Kryscynski, 2011, p.1435). The knowledge they possess makes it easier for them to detect top talent quickly. It is cost-efficient because the company only gets to pay once hiring is done. Therefore, the organization does not face any risk. Minimal administration in the company thus enabling it to focus on accomplishing the goals of the company. The weaknesses of using agencies are that an agency can only have one database. They may apply “scatter gun” approach (Oyer and Schaefer, 2010, n.p). The agencies may send many people to the companies that do not meet the expectation of the employer. All they are interested in is the fee. The applicants may want to deal with the employers. Lastly, agencies are costly to the company.

Strengths of using agencies	Weaknesses of using agencies
Experts on the market Quick Top talent applicants Preference of dealing with agencies Minimal administration No risks incurred during hiring	Costly “Scatter gun” approach Preference of dealing with the employer Scarce resources

Employee retention involve formulating strategies that will ensure employees do not leave. Employees can be retained through training and an increase in wages.

Through training, the organization stays ahead of the competition. The employees would be motivated to perform their duties effectively and efficiently to produce products of high quality. These products will satisfy the needs of the customers thus staying ahead of the competition. Staying informed on improved technology. With improved technology customers could acquire feedback from the clients. The information acquired could be applied to producing quality products. Training and development enhances confidence in performing tasks (Thunnissen et al, 2013, p.331). The employees are also motivated to achieve the goals of the company. The weaknesses of training and development are that they waste time and money. Time wasted on training could be used performing other duties that are beneficial to the company. A trained employee may choose to go to another company. Lastly, training increases stress.

Increasing the salaries of employees motivates them to perform their duties effectively and efficiently to accomplish the plans of the business. Motivated employees will produce goods and services of high quality thus meeting the expectation of the customers. Satisfying the needs of the customers enables organizations attracts customers thus earning more profits. A rise in returns leads to the growth of the organization. The weaknesses of increasing salaries are that it increases the rate of unemployment. The company spends too much money on the current employees thus restraining them from employing others (Shen and Hall, 2009, p.802). Increase in wages also makes it difficult for the organization to manage the budget. Finally, the company may find it difficult to maintain its operations.

For an employer to become the employee’s choice, he has to possess impeccable communication skills. An employer needs to be honest and respectful to his employees. Second, an employer should be accountable. He should take responsibility for his actions and not give excuses when a crisis occurs. Third, a focused employer will attract employees. The focus should be on achieving the plans of the company. Fourth, cooperation and teamwork should be embraced. The duty of the employer is to bring out the bests in workers. This can be accomplished through teamwork and cooperation. Fifth, the employer should promote equality (Elving et al, 2013, p.360). Employees should be given an opportunity regardless of their gender, religion, status in society and race. Lastly, an employer should be a good listener. Through listening, the employer may get new ideas from the employees.

Workforce planning involves analyzing and assessing vacancies and determining top talent that will ensure the organization operates efficiently to achieve its objectives (Pilbeam and Corbridge, 2010, n.p).

The principles of workforce planning are; the strategic directions that show the goals and objectives of the company and how they can be achieved. Supply analysis involves the study of today’s workforce and the projection to the future depending on the trends. Demand analysis needs one to understand the requirements of today and tomorrows workforce. Gap analysis requires the understanding of the difference in the demand and supply of labor. Implementation involves the determination of top talent that would help in achieving the plans of the business. Finally, monitoring progress involves monitoring hired employees and their impact on the company thus enabling the company to operate efficiently. The above principles lead in the discussion of the role of the government, employer and trade unions in ensuring future skills are met.

 The government provides companies with the permission to start through offering them certificates. Second, it protects the rights of employees. The government ensures that the organization promote equality and protect the personal information of employees. The workers also work in a safe environment. Third, the government protects the customers. Clients are protected by ensuring the products supplied to them meet the standards set (Steedman, 2012, n.p). This encourages companies to produce products of high quality. Fourth, the environment and the community are protected. Companies are required to operate within the set standards. These standards protect the environment and the community at large. The society is protected by leading a healthy life. Lastly, the government acquires taxes from the businesses thus leading to the growth of the economy.

An employer needs to be honest and respectful to his employees. Second, an employer should be accountable. He should take responsibility for his actions and not give excuses when a crisis occurs. Third, a focused employer will attract employees. The focus should be on achieving the plans of the company. Fourth, cooperation and teamwork should be embraced. The duty of the employer is to bring out the bests in workers. This can be accomplished through teamwork and cooperation. Fifth, the employer should promote equality. Employees should be given an opportunity regardless of their gender, religion, status in society and race (Steedman, 2012, n.p). Lastly, an employer should be a good listener. Through listening, the employer may get new ideas from the employees.

The role of trade unions is to settle disputes in an organization. When an issue arises between the employer and the owner, trade unions come in as arbitrators. It also applies collective bargaining to save time for the organization. Collective bargaining protects workers from being fired without reason (Steedman, 2012, n.p). Lastly, it reduces the rate of turnover. They ensure employees have job security, treated fairly and comfortable.

Workforce planning promotes succession and future and learning and development. When it comes to succession and future, we will focus on linking current staff and future roles. This can be done by embracing improved technology. With advanced technology, the workers will be motivated to perform their duties effectively and efficiently thus improving productivity (Calareso, 2013, p.27. Productivity can be improved through learning and development. An organization needs to set goals in order to promote learning and development. Setting goals will motivate employees to work hard in order to accomplish them.

Downsizing is the process of reducing employees in an organization (Redman, 2016, n,p).

Human resource contributes to downsizing plans through; communication. The employer needs to communicate with employees on the plans of downsizing before carrying out the exercise. This will give them time to plan for their future. Second, employees need to be trained and educated on the issue of downsizing. The workers have to understand that it takes a team to restructure an organization. Third, human resources should promote equity and fairness during the exercise. When the top management of the organization appears not to be affected by the downsizing process, the morale of the workers would be affected negatively. Affecting the morale of employees will reduce productivity in a company. Products of low quality will fail to meet the expectations of the customers thus reducing sales and profits. Fourth, human resources need to maintain a managed approach. Downsizing will obviously affect the operations of the organization. The company needs a qualified person who will ensure it runs smoothly. Closely monitoring of the business will ensure an issue is solved once it arises thus improving its efficiency. Lastly, human resources provide leadership support (Zatzick et al, 2009, P.79). The best person to provide information on downsizing is the top management. The top personnel of human resources should always be available to answer questions whenever they arise. During the process of downsizing, workers are always exposed to feelings of uncertainty, fear, and anger thus needing someone to be there give them correct information. Without possessing these impeccable leadership skills the moral of employees will reduce. Affecting the morale of employees will reduce productivity in a company. Products of low quality will fail to meet the expectations of the customers thus reducing sales and profits.

Moreover, human resources need to abide by the law when applying different methods of downsizing such as retirement, dismissal, and redundancy. “Redundancy is a situation where the position of employment of an employee is or will become surplus to the requirements of the Employer’s business” (Viljanen et al, 2009, n.p) First, an employer is acting within his right to carry out redundancy on the grounds of misconduct. An example of misconduct is poor timekeeping and speaking to the employer in an informal way. Continued misconduct is a legitimate reason to apply the process of redundancy. Second, poor performance can lead to dismissal. An employee who performs his duties poorly reduces productivity. A reduction in productivity fails to satisfy the needs of the customers. The inability to meet the expectation of the customers leads to reduced sales and profits. A fall in returns prevents the organization from growing (Cho et al, 2011, p.115). Third, redundancy is a legitimate ground to lay-off workers. Redundancy is when a company needs few or no workers. A business may need few or no work when it is closing down, changing locations, less work to be done and reorganization. Lastly, redundancy is carried out when the organization breaches restrictions.

When it comes to retirement, no law determines that age at which one needs to retire. An employee is allowed to work until he decides by himself that time has come for him to retire. When he makes this decision, he needs to give the employer a notice on the period agreed in the contract (Muller-Camen et al, 2011, p.519). An organization can facilitate a smooth retirement process through phased retirement or flexible. Phased retirement involves an employee reducing his working hours while receiving a pension.

Turnover involves determining the percentage of employees who leave jobs and those that replace them (Davenport et al, 2010, p.53).

Reasons, why people stay or leave the organization, are;

Stay

Leave

An employee will choose to stay when he feels that he is part of something special. If they possess talents that enable them to work efficiently for a certain purpose and meaning. Being part of something special helps them to contribute to making a difference. If they have unique talents that make employer respect and appreciate them. If they have co-workers that are talented and gifted thus being an inspiration to them. If they are mentored and encouraged to achieve their full potential. If they trust that leadership will always act fairly. If they invest emotionally in their duties and the company. If the culture is empowering and trustworthy leads to the conclusion that it is irreplaceable. If they are certain on the security of their jobs and the compensation is fair.

An employee may choose to leave if the relationship between him and the boss does not exist. If the work does not challenge, may result in boredom. If there is a hostile relationship between him and the coworkers. If they do not have an opportunity to explore their abilities and skills. If they do not feel appreciated for their contribution to achieving the goals of the company. If there is no independence, empowerment, and autonomy in the company. If he feels that his job has no meaning. Lack of information on the financial stability of the company. If the top management does not recognize his performance in the business. If he is not satisfied with the culture of the organization.

  (Davenport et al, 2010, p.55).

The costs associated with dysfunctional employee turnover are direct and indirect costs. When it comes to direct costs, we have separation, recruitment and training costs (Wallace and Gaylor, 2012, p.27. Separation costs are costs incurred after the loss of a worker. These are costs associated with exit interviews, packages, and extended benefits. Recruitment costs are those incurred when replacing the employee. Finally, training costs incurred when equipping a new employee with the necessary knowledge and skills to perform his duties effectively and efficiently. Indirect costs are a reduction in morale and performance. A reduction in moral and performance affects the productivity of a company. Products of low quality will fail to meet the expectations of the customers thus reducing sales and profits.

Additionally, the organization needs to adhere to the law when it comes to dismissal. An organization is justified to dismiss an employee on the grounds of misconduct. An example of misconduct is poor timekeeping and speaking to the employer in an informal way. Continued misconduct is a legitimate reason for dismissal. Second, poor performance can lead to dismissal. An employee who performs his duties poorly reduces productivity. A reduction in productivity fails to satisfy the needs of the customers (Cho et al, 2011, p.115). The inability to meet the expectation of the customers leads to reduced sales and profits. A fall in returns prevents the organization from growing. Third, redundancy is a legitimate ground to lay-off workers. Redundancy is when a company needs few or no workers. A business may need few or no work when it is closing down, changing locations, less work to be done and reorganization. Fourth, dismissal is carried out when the organization breaches restrictions. Lastly, an employee may be dismissed when his contract expires.

Employees and employers have a right to receive notices before termination of employment. Employers have to provide employees with a notice if they have been working for them for over one month. A notice of one week is given to an employee who has been working for the company for less than two years. A one week notice for each year for a worker who’s worked for two to twelve years. For employees who have worked for the company for over two years are given a twelve-week notice (Marchington et al, 2016, n.p). An employee is required to give a one week notice no matter the period of time he’s worked for the organization. Failure to follow these notice stipulations may be considered a breach of contract.

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