Recruitment and Retention in the Labour Market

Assignment Brief

Part B (AC1.1, 1.2, 1.3, 1.4, 2.2, 3.1 and 3.2) (2000 words)

Taking into account the case study you have examined in 5RST Part A, please produce your views on the following issues: 

1. What labour market trends might make it hard for the company in the case study to recruit and retain the staff they need? (AC1.1) (approx 300 words)
2. Explain the significance of ‘tight’ and ‘loose’ labour markets (AC1.3) (approx 150 words)
3. Assess, including strengths and weaknesses of two differing approaches that could be taken in the short term as a means of improving the organisation’s ability to retain staff effectively. (AC3.2) (approx 300 words)
4. Suggest reasons why people might choose to leave their organisation and explain the costs associated with this. This could include direct and indirect costs. (AC3.1) (approx 300 words)
5. Explain how the organisation might position itself strategically within the labour market and the implications of this. E.g. competition, branding.(AC1.2) (approx 250 words)
6. How might government, employers in general and trade unions (in a general sense) ensure that future skill needs are met? (AC1.4) (approx 250 words)
7. What steps should the organisation take to ensure that future skills needs are met? To what extent and how might career and succession planning feature in the organisation’s strategy? (AC2.2) (approx 250 words)
8. ADDITIONAL REQUIREMENTS: Please also comment on how you will transfer the new knowledge and skills gained during this assignment into working practices. You may also use this reflection for your CPD. (approx 200 words)

You should also include 3-5 references from up to date and relevant sources in order to support your findings.

Sample Answer

5RST Part B – Recruitment and Retention in the Labour Market

Introduction

Recruitment and retention of staff remain some of the most pressing challenges faced by organisations in today’s dynamic labour market. In the case study examined in Part A, the company operates within a competitive sector that is shaped by changing workforce expectations, technological advances, and economic pressures. This essay will explore key labour market trends, the significance of tight and loose markets, reasons behind employee turnover, and the costs associated with it. It will also assess short-term approaches to retention, evaluate the company’s labour market positioning, and consider both external and internal strategies to meet future skill needs. Finally, a personal reflection will highlight how the knowledge gained from this assignment can be transferred into practice.

Labour Market Trends Affecting Recruitment and Retention (AC1.1)

One of the main labour market trends affecting the company is the increasing competition for skilled labour. With more businesses competing for the same talent pool, employers are finding it difficult to recruit candidates with the exact mix of technical and soft skills required. This is particularly relevant in industries affected by digitalisation, where demand for data literacy, IT proficiency, and adaptability continues to rise.

A second trend is the shift in employee expectations. Workers, especially younger generations, are placing greater emphasis on flexible working arrangements, career progression, and work–life balance. Employers unable to meet these expectations risk losing talent to competitors who can.

Demographic changes also play a role. An ageing workforce in the UK means that many sectors are experiencing skill shortages, especially in technical and managerial roles, as experienced employees retire. Furthermore, post-Brexit immigration policies have reduced access to EU workers in certain industries such as retail, logistics, and hospitality, which affects recruitment pipelines.

Finally, the increasing use of technology and automation is reshaping job roles. While automation reduces demand for some lower-skilled tasks, it simultaneously increases the need for technologically capable employees. Companies must therefore recruit individuals who can adapt to such changes, which creates additional competition in the labour market.

Overall, these trends make it difficult for the organisation to both attract and retain staff, as it must compete not only on salary but also on employer brand, benefits, and career opportunities.

Significance of Tight and Loose Labour Markets (AC1.3)

A tight labour market occurs when demand for workers exceeds supply. In such conditions, employers face challenges in recruiting suitable candidates and must often offer higher wages, benefits, and incentives to secure talent. Staff retention also becomes critical, as competitors are actively seeking to attract employees.

In contrast, a loose labour market arises when there are more workers than available jobs. This scenario gives employers greater choice in recruitment and reduces upward pressure on wages. However, it may also result in lower employee morale and engagement, as workers feel more replaceable.

For the case study organisation, understanding these conditions is essential. In a tight market, strategic investment in employer branding and retention initiatives becomes vital, whereas in a loose market, efficiency in selection processes and fair employment practices may provide a competitive advantage.

Continued...