(Solution) CIPD 5HR02- Talent Management and Workforce Planning

Solution

• Competitive Labour Markets

Competitive labour markets exist when there are many employers and employees actively competing for each other. According to Economics Online (2020), Workers have job mobility and can readily change employers. Employers compete for qualified workers by offering competitive compensation packages. This competition encourages efficiency and fair wages.

SAP presents itself as a global leader in enterprise application software, with over 325,000 customers in over 180 countries.

Employer of choice – As a large multinational organisation, SAP sees developing its employer brand and image as an employer of choice as strategically important.   On its careers website, SAP emphasises its culture of innovation, diversity and learning & development opportunities (SAP, 2024). It aims to present itself as a top employer where people can grow and develop cutting-edge skills.

Employer branding – SAP engages in prominent employer branding through partnerships, advertising, and at industry events. It regularly features employee stories and initiatives on social media channels to build its employer brand.

Organisational image – SAP portrays an image of a global leader in enterprise tech, empowering customers in over 180 countries. It highlights initiatives in sustainability, STEM education and diversity/inclusion to project a progressive culture (SAP, 2024a). Through leadership in new technologies like cloud, AI and blockchain, SAP aims to cultivate an image as an innovative organisation at the forefront of industry trends.

As “Sun Energy” transitions to more sustainable energy sources like solar and wind, it needs to position itself as an employer of choice for talent with the skills to support this transition. It should highlight its commitment to ESG goals like reducing emissions and focus on strategic sustainability initiatives. Emphasising its entrepreneurial, innovative culture and learning opportunities available to employees working on new technologies will help appeal to candidates that prioritise purpose-driven work. Promoting its mission to provide cleaner energy solutions from the perspective of an employer dedicated to investing in employees can give “Sun Energy” a competitive edge in attracting top talent.

• Changing Labour Market

One changing labour market condition in the UK is; the aging British population.

The aging British population and lower birth rates are reducing the overall size of the working population as evidenced by Samorodov (2019). This is creating acute skills shortages across industries as aging baby boomers retire and there are insufficient new entrants into the labor force to replace them. The energy sector has faced difficulties finding the workers it needs to transition to renewable technologies.

The aging population and lower birth rates are reducing the size of the labour force in Britain. This is contributing to acute skills shortages in the energy sector, as baby boomers retire from roles critical to renewable transition like engineering thus affecting resourcing decision (CIPD, 2018). In response, energy companies must increase reskilling of current workers and develop apprenticeship programs to cultivate talent pipelines to ensure they have the human capital needed for their sustainability goals.

Another changing labour market condition in the UK is Brexit. It has led to reduced immigration levels into the UK as evidenced by Portes and Springford (2023). Before leaving the EU, the country relied heavily on overseas recruitment to fill jobs. Restricted migration due to Brexit has significantly shrunk the available talent pool for the energy industry, which previously recruited extensively from abroad. Brexit’s reduced immigration into the UK has constricted talent pools in the energy sector, impacting Sun Energy’s resourcing decisions. With a focus on sustainability, Sun Energy must reassess talent planning to accommodate shifts towards cleaner energy sources like wind, solar, and hydrogen.

A tight labour market is when there are more jobs available than unemployed workers, so employers compete for scarce labour by raising wages and improving benefits and working conditions (Bates, 2021).  On the other hand, a loose labour market is when there are more unemployed workers than available jobs, giving employers an advantage and making workers more replaceable and less able to negotiate terms.

• future skills needs

Role of Government

The UK government plays a crucial role in ensuring future skills needs are met in the global energy sector by implementing strategic policies and initiatives. For instance, through the Industrial Strategy, the government invests in research and development to drive innovation in renewable energy technologies, creating demand for skilled workers in areas like solar, wind, and hydrogen (United Nations, 2023). Additionally, schemes like the Green Jobs Taskforce aim to provide training and support for workers transitioning to green energy jobs, addressing skill gaps and facilitating a smooth transition towards a sustainable energy future. Such government interventions are essential for cultivating a skilled workforce capable of meeting the evolving demands of the energy sector.

Role of employers

Employers in the UK energy sector play a key role in ensuring skills needs are met now and in the future. They work closely with education providers to design courses that deliver skills relevant to new technologies like offshore wind, carbon capture and storage, and smart grids (CIPD, 2023). Employers offer apprenticeships, work experience, and career advice to help young people enter the industry. They also provide ongoing training for current employees on new equipment, processes, and regulations to keep the workforce skills up to date. Employer investment in skills development is vital for the global competitiveness of the UK energy industry and the transition to a low-carbon future.

Roles of Trade Unions

Trades Union Congress (TUC) ensure future skills needs are met in the UK energy sector.  The TUC works with its affiliated unions like Unite and GMB to represent the interests of energy workers nationwide. It lobbies the UK government to establish a Just Transition fund to retrain coal miners, oil and gas employees for clean energy jobs (TUC, 2022). The TUC produces reports outlining the types of skills required over the next decade for offshore wind, carbon capture and new nuclear projects. It engages with sector skills councils to influence the content of apprenticeship standards. The TUC also holds discussions with large energy companies about workforce transition strategies as the industry moves away from fossil fuels towards renewable technologies.

2.1 Impact of Effective Workforce Planning.

Workforce planning is the strategic process of identifying current and future workforce needs and aligning them with business objectives. It involves analysing workforce demographics, skill requirements, and potential gaps to develop strategies for recruitment, training, and retention to ensure organisational success (CIPD, 2023).

Workforce planning aids in forecasting labor demand by analysing various factors such as market trends, technological advancements, and organisational growth projections (Shopworks, 2023). By understanding these dynamics, businesses can anticipate changes in workforce requirements. For instance, in the energy sector, workforce planning considers shifts towards renewable energy sources, necessitating skilled personnel in solar or wind technologies. Moreover, workforce planning helps mitigate risks associated with labor shortages or surpluses, ensuring optimal resource allocation. By aligning labor needs with business objectives, workforce planning enables proactive recruitment, training, and retention strategies, ensuring the availability of the right talent at the right time to meet evolving demands (Hipeople.io, 2023).

Workforce planning facilitates forecasting supply by assessing internal and external talent sources. According to National Institute of Health (2017), it analyses factors such as employee turnover, skill gaps, and market availability to determine the feasibility of sourcing talent internally through promotions or externally through recruitment. This ensures a strategic approach to meeting labor needs effectively.

Internal sources of supply, such as promotions, offer familiarity with company culture and reduced recruitment costs but may limit fresh perspectives (Dhiraj, 2023). External sources, like hiring from the market, provide diverse skill sets but incur higher recruitment expenses and potential integration challenges. Balancing both can optimise talent acquisition and organizational effectiveness.

2.2 workforce planning.

Promotion and demotion rates

Please click the following icon to access this assessment in full