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Influences on employment relations
The changing roles of stakeholders
Outcomes
Overview of some influences
Revision
More
The growth in demand for specifically skilled employees is causing significant changes in the nature of traditional patterns of employment relations. This tutorial examines some of these changes.
HSC Topic 4: Employment Relations is covered in the NSW Board of Studies Syllabus (June 1999) on pages 32-33.
Outcomes
The student:
| H4.2 | evaluates management strategies in response to internal and external changes |
|---|---|
| H5.1 | selects, organises and evaluates information and sources for usefulness and reliability |
| H5.2 | plans and conducts an investigation into business to present the findings in an appropriate business format |
Overview
Traditionally, it has been the employer who chose the employee. Now, in several sections of the labour force, a shift in the balance of power has taken place. As the global economic conditions have improved in the past five years, opportunities have expanded for employees in the areas of information technology (IT), finance, sales, marketing and general management.
Now, for employees with skills in the above areas, the labour market has become "candidate-driven", instead of employer -controlled. The stakeholders are the same, but the nature of their relationship has changed.
The managing director of recruitment company, Adcorp, says:
You can't put the stock (traditional) advertisement in the paper and hope people will knock on your door. You have to sell the sizzle, create interest, create an environment for your business.
According to the weekend edition of The Australian Financial Review 26-27 February, in an article entitled The new brand of boss, employees with the "right " kinds of skills are asking for and getting:
- more money and more opportunities to own part of the business
- more time off or more flexible working arrangements
- more interesting work in more satisfying environments.
It is important to note, however, that this shortage of employees is not consistent throughout the workforce. The heavily unionised sectors, "old economy" industries are still experiencing uncertainty and unemployment. Another human resource executive is quoted as saying:
They (employers) all want the same pool of workers, the elite skilled workforce. They don't want the metal trade worker who's worked in the same small company for years. For them, there are still no opportunities.
Evidence suggests that the gap between "old economy" and "new economy" employees will widen in the next 20 years as growth in total numbers in the global workforce slows and demand for skilled workers increases. This will be good news for some and not such good news for others. Refer to the article, The new brand of boss, mentioned above for specific details.
Revision
- What does it mean to "sell the sizzle"? (Outcome H4.2)
- Describe what you understand as the difference between an "old economy" and a "new economy" employee. Include in your description a list of three jobs you know about in your own community that fit into each classification. (Outcome H5.1)
- What is your opinion? Will the gap between "old economy" and "new economy" employees continue to widen, as evidence suggests, or, have technology and the "new economy" gone too far? Will the relationship between employers and employees return to the way it has traditionally been? Discuss this question in a paragraph and, if possible, support your response with case study material. (Outcome H5.2)
- Conduct a survey amongst your classmates. Ask them to prioritise the three or four factors they feel will be most important in future relations with employers. Compare your findings with those discussed in the preceding paragraphs.
More
Locate and read the complete article The new brand of boss, in The Australian Financial Review and find out what else the author has to say about economic and social influences that are changing the traditional roles of stakeholders in the employment relations process.
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