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Analysing and evaluating features in the international and national market to employ staff
The current organisational demands of different industries and companies of the UK will ensure the resourcing and talent management. The economic structure of the UK is vulnerable as it has faced the pandemic issues in the current years. Though the effect of the pandemic is short-term and the economy is expected to be restored within a few years, the unemployment issue remains persistent over the years.
Figure 1: number of vacancies in the UK
(Source: Ons.gov.uk, 2022)
The above mentioned graph shows the number of vacancies rises approximately to 13, 00,000 from November 2021 to January 2022 (refer to figure 1). The rate of vacancies increases so fast that the growth rate falls to 9.6%, lowest since last February. As viewed by Felbo-Kolding et al. (2019), the hospitality industry of the UK contributes to approximately 3.1 million jobs indirectly and 3.2 million jobs through direct employment and a majority of this comes from the hospitality industry. Due to the sudden emergence of COVID-19, the hospitality industry of the UK has faced severe disruption. This has resulted in a huge crisis situation all over Britain. The lockdown has resulted in unemployment of the industry resulting in an increase in job vacancies to 11% below the last February (Ons.gov.uk, 2022). The labour market of the UK is a tight labour market, which means there is an imbalance between the labour supply and labour demands thus creating pressure in labour costs (refer to coursework).
Research has shown that nearly 23% of the UK’s hospitality industry consists of EU nationality. Due to the sudden closing of various hospitality sectors, many employees left and joined other sectors. This has led to an abrupt shortage of skilled employees in different hospitality sectors. As per the view of French (2018), Britain being a neoliberal country, the hospitality sector uses a more “migrant-based” practice which can cause an effect in labour exploitation. Referring to the case study organisation, the company is also dealing with multiple issues in managing their employees and resourcing talented employees within the company. In alignment to the labour market tightness of UK and the current status of employment in the country, it can be said that the issues of talent management within the concerned company are result of current labour market trends and hospitality industry issue in the UK. The organisational employers of Britain are facing excessive staff shortage as in order to reopen after the lockdown and a decrease in migrant workers due to BREXIT and COVID-19 issues. In a tight labour market, it becomes harder for the recruiter to recruit the desired employee with all the skills.
Figure 2: Declining staff availability in the UK due to the COVID-19
(Source: The Guardian, 2021)
The above graph depicts that unemployment arose between February and November 2020 due to the emergence COVID-19 and has been restored back now. In addition to this, the ratio of the graduated workforce has escalated remarkably which contributes to proper resourcing. When competing in a tight labour market, the consequences involve the reduction of suitable employees with desired skills looking for particular job roles (Kruget al., 2019). The shortage of skill increases as the tightness of the labour market increases. This situation empowers power in the hands of the employees, which is if they are not enjoying their current job they can switch to other options available in the market due to the increased vacancy rate. Referring to the opinion of Kuitto and Helmdag (2021), under such labour market conditions employees tend to leave jobs and work with organisations giving them better value. Therefore, in the case study hotel chain, the company leaders must have adopt to proper strategies to retain employees and manage their turnover rates. For instance, the instance of Accenture who is advancing an enrolment drive presents a COVID period to keep up with the manageability of the financial height of the country. They have announced to employ more 3000 job roles by the end of 2024 (Sawbey, 2022). They have also promised to launch new offices in various parts of the UK as a means to promote recruitment drives. This can also be preferred by the organisation to manage their resourcing issues.
Comparing Malaysia’s market trends and resourcing patterns with the UK’s market trends will help to understand the importance of resourcing and talent hunt strategies that can be implemented in the existing market trends. As per the view of Marouani and Nilsson (2019), the labour market is involved in recruiting skill based workforce to the organisations. It maintains the consistency of the working culture by maintaining highly qualified employees to a particular job role. Investment in the education sector has been proven effective to increase employment rate. By taking notes from this, the UK can invest more on educating the youth so that the efficiency rate while recruiting can be increased.
The increase in vacancy and the reduced unemployment can tighten the labour market more as there are fewer people available for the vacancy. Thus the vacancies remain constant in the labour market analysis of the UK. On the other hand vacancies are filled up in a fast manner in other countries like Malaysia, India and Pakistan as there is an increased unemployment rate. The socio-economic structure of the country also contributes to the employment issues associated with vacancies. However, in case of the case study hotel chain, the company being based in an economically strong country with a tight labour market, it can be said that the company might have look for employees at international markets. For example, searching in Indian market or Malaysian market can be useful for the company to get talented employees and retain them.
As assessed by Azar et al. (2019), economically backward countries can recruit employees by giving them low remuneration due to the high unemployment issue thus indicating wage induced effect in labour market concentration. Hence, the national companies can share partnership with international firms who can help them with the remuneration and increase their resources that they can use in implementing new technologies and increase productivity rate. The managers of the case study hotel chain should look for the areas where the employees are fighting for the labour that will help in analysing the labour market. They should also make sure by implementing stability and fluidity as there are diversity rates of the jobs. Hence, the managers should be able to identify the right labour markets for various types of job positions in international markets for hospitality industry.
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