Practise IB Business Management SL/HL 2.1.2 by applying human resource planning factors concepts to exam-style questions.
The significance of changes in international labour mobility
Though the global population may grow from 7 billion in 2011 to 7.6 billion by 2020 , many countries will experience a decline in the number of working-age people. Already in Japan and Europe, each year more people retire from the workforce than young people enter it. By 2020, this problem will also affect Russia, Canada and China. Other countries such as India, Brazil and Indonesia have young populations and young workforces.
Unfortunately, many people lack the skills that employers need. A recent study found that 31 % of employers worldwide struggle to fill jobs requiring basic skills. 65 % of multinational companies have difficulty recruiting new employees with advanced skills. In emerging economies the problem is worse. Difficulties in meeting operational objectives of recruitment prevent many companies from meeting their strategic objectives.
Companies are responding by recruiting new employees from other countries. This practice is called "expanded recruitment". It has led to more international labour mobility, diverse workforces within companies, and diversity in global cities.
Supporters of expanded recruitment argue that the labour problem is demographic: the best solution is to make labour mobility easier. Furthermore, diversity both within companies and in society should improve international understanding and will increase creativity. Critics of expanded recruitment argue that it does not solve the real problem: many jobs require advanced skills, and most educational systems have not responded to those needs. Expanded recruitment has also created other issues for companies, such as problems in communication.
Expanded recruitment has also led to some anger in countries and local communities not accustomed to large immigrant populations.
Used with permission.]
Identify one opportunity and one constraint for companies caused by demographic change.
Possible opportunities include:
- To replace workers. Some companies, in countries with ageing populations might otherwise have great difficulty finding replacement employees, who can be recruited from countries with more young people.
- To lower costs of salaries or wages by replacing older workers with younger workers (who in many contexts will have lower salaries than retiring employees).
- To have "new blood," as younger employees with new innovative ideas join companies.
- To diversify the workforce, which leads to greater creativity.
- Homogenous workforces experience lesser misunderstanding and conflict in the workplace.
Possible constraints include:
- Cost of recruiting workers from other countries.
- The lack of experience of younger workers recruited from countries with large numbers of young people.
- Loss of experience, depth of knowledge, and wisdom about the company.
- Though homogenous workforces experience lesser misunderstanding and conflict in the workplace, such workplaces are less creative and innovative.
N.B. though the content of the question suggests an opportunity and constraint with respect to human resources, candidates may approach the question differently. Doing so is fine as long as the response is relevant and makes sense. For example, because of an ageing population, an opportunity may exist if the company revises its marketing mix and starts to target an older population.
Accept any other relevant opportunity or constraint.
Mark as 1+1. Award a maximum of [2].
Discuss the significance of changes in international labour mobility.
The significance of changes in international labour mobility include:
- More workers/people are able to find work that matches their skill set and ability.
- More companies are able to fill positions with appropriate personnel.
- Managers and shareholders may welcome immigrant workers, who fill crucial voids.
- People may resent immigrants taking jobs.
- Young emigrants moving for work lose contact with their home cultures.
- Many rural areas are losing young people who move to cities in search of work.
- Workplaces and cities are becoming diverse, which fosters creativity.
- Diversity increases the likelihood of cultural conflict.
- Emigrant workers often find economic opportunity.
- Emigrant workers are often separated from their families and often lack political rights in the country to which the move.
Accept other relevant implications of changes in labour mobility.
A [7] response would consider at least two positive outcomes of changes in labour mobility and two negative or challenging outcomes of changes in labour mobility and have a conclusion or judgment. If less than two positives or less than two negatives, award a maximum of [5]. If the candidate discusses two or more positive outcomes of changes in labour mobility and two or more negative or challenging outcomes of changes in labour mobility, but does not have a conclusion or judgment, award a maximum of [4].
Marks should be allocated according to the markbands on page 4.