Labor Shortage and Surplus Report PDF

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LABOR SHORTAGE AND SURPLUS

Contents Labor Surplus or Shortage........................................................................................2 Human Resources Planning......................................................................................3 Labor Surplus............................................................................................................4 Handel Labor Surplus.............................................................................................4 Labor Shortage..........................................................................................................5 Handel Labor Shortage...........................................................................................5 References.................................................................................................................6

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Labor Surplus or Shortage Job market have two significant problems, Labor surplus and Labor shortage  High unemployment and a lack of job opportunity - the surplus  Employers can’t find the skilled workforce needed - the shortage

- Comparing the results of demand and supply forecasting tells us whether we’re likely to have a surplus or a shortage.

- Depending on which one we forecast, we plan to implement various strategies for creating equilibrium.

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Human Resources Planning Goal setting and strategic planning set specific goals Choose strategy to address labor shortages and surpluses.

• Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. • Determining expected shortages and surpluses allows the organization to plan how to address these challenges.

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Labor Surplus Employing surplus labor is likely to be financially prohibitive for many companies, Particularly when the surpluses are anticipated to be permanent or last for a long time.

Handel Labor Surplus The most common approaches to handle labor surplus are;  Layoff excess employees. It’s a process of reducing the size of the organization’s workforce. It involves quickly reducing the number of workers but at the same time is one of the most difficult tasks HR can do.  Restructuring organization’s skill base. It’s not the simplest thing in the world, however, proper planning and preparation can make a huge difference and streamline the process.  End outsourcing contracts. It may be as cost-effective to shift work responsibilities back to staff employees.  Implement Hiring Freeze which organization often used to otherwise avoid laying-off  Offer Early Retirement plans for workers with seniority. These offers not only help to eliminate excess employees when workers take advantage of the offer, they tend to eliminate workers with the highest salaries, which has a combined cost-cutting effect.  Movement of employees either temporary or permanently to other work areas if possible.

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Labor Shortage A shortage or insufficiency of qualified candidates for employment. It exists when the internal supply of human resources cannot meet the organization’s needs.

Handel Labor Shortage  Using overtime for working beyond working hours is the quickest way to handle labor shortage, which can prevent the need to hire new employees. That can be viewed by employees as positive in the short-term, but may induce stress and overload from being overworked in the long-run.  Increasing employee retention rates / Improver Turnover by increasing the employee satisfaction as the key predictor of turnover. A focus on employee retention initiatives can also mitigate potential labor shortages.  Employee promotions and transfers from one area into another area that has a labor shortage. Transfers can lead to more effective use of human resources, broaden an employee’s skills and perspectives, and help make him or her a better candidate for future promotions. A promotion involves the movement of an employee from one job to another that is higher in pay, responsibility, or organizational level. Such a move may be based on merit, seniority, or a combination of both.  Contingent Labor refers to employees hired on a temporary or contractual. So, organizations don’t have to keep employees they need for a short time.  Outsourcing which may gradually shifted from being a strategy for correcting a shortage to a permanent means of structuring work.

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 Recruiting the right quality and quantity of talent needed in an organization to meet the long-term goals and strategy of the company. References  Gary Dressler (2015), Human Resources Management, Fifteen edition 

https://www.kau.edu.sa/Files/320/Researches/51488_21623.pdf

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https://www.investopedia.com/ask/answers/021115/how-do-companiesbalance-labor-supply-and-demand-human-resources-planning.asp

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