Strategic Workforce Planning at Tesco

Introduction

The proper workforce planning and talent management within the organisation are required so that employers have the concept regarding the present and future hiring needs to be focussed as well as the way talented employees are to be developed for the company to ensure its productivity in the market. This act is also going to ensure the human resources within the organisation are properly used for meeting the business goals. Thus, in this assignment, the present labour market trends and legal requirements influencing Tesco’s workforce planning and talent management is to be discussed. The skill and knowledge required in relation to the identified labour market trends and legal requirements are to be determined. The proper documentation process involved in recruitment and selection is to be discussed. Lastly, the way human resource life-cycle is to be managed within the context of HR strategy is to be discussed.

Part 1:

LO 1

P1 Analysing the present labour market trends which influences workforce planning and talent management of a specific organisation (M1, D1)

The current labour market trends to be discussed are in relation to the company named Tesco which is a British multinational grocery and general merchandise retailer operating in the retailing industry. The headquarters of Tesco is located at Hackney, London and the areas served by the company are Ireland, UK, India, Thailand, Malaysia, Czech Republic, Poland and Hungary. The net income of the company in 2019 is £1,320 million and the revenue collected in the year is £63,911 million which is 11% more than the previous year (tescoplc, 2019b). The current labour trend of UK retailing industry is that there is high demand for young people. This is evident as 54% of the current workforce is less than 34 years and only 11% of the employees in demand are aged 55 or over as reported through Annual Population Survey in 2015 (ons.gov.uk, 2016). The current labour market trend of recruiting young people would influence Tesco’s workforce planning and talent management to select, recruit and train employees who are younger in age. As mentioned by Alatalo et al. (2018), young workforce is beneficial as they are adaptable, agile and affordable. This is because young employees have physical strength and increased zeal as well as enthusiasm to learn as they have a mindset to increase their knowledge and skills to develop expertise at work. Thus, recruiting young people would influence the workforce planning and talent management of Tesco to plan in employing young individuals as workforce and include training for them to improve their talent.

The present labour trends in the UK retail industry inform that as a result of Brexit more EU labour is leaving their jobs creating huge vacancies in all industries (dera.ioe.ac.uk, 2012). This trend is going to influence Tesco's workforce planning to arrange the recruitment of more employees so that proper amount of workforce required by them can be maintained. As mentioned by Ballantyne and Langcake (2016), low labour cost helps the organisation to spend fewer finances in managing their employees. This results them to make cost-effective workforce planning and talent management. As argued by Cengiz et al. (2019), low wages of workers in a particular sector leads employees to avoid continuing job in the sector. This is because the employees feel that their efforts are not being properly remunerated in the sector as well as they face financial constraints. The UK retail industry is regarded as the second-lowest paid market after Food and Accommodation services which lead them to experience hindrance in ensuring proper productivity (niesr, 2018). Thus, low wage trends making less productivity would influence workforce planning of Tesco to spend more finances for arranging proper wages of recruited employees to retain the required workforce to ensure effective productivity of the organisation.

The further labour trends in UK retail industry mentions that organisations are more focussed on using automation and digital equipment to replace manual labour (dera.ioe.ac.uk, 2012). As asserted by Evans and Kitchin (2018), automation of labour leads the organisation to create better productivity. This is evident as automation leads companies to create production and delivery of products and services in increased manner within less time to be supplied to wider number of customers, in turn, lowering their dependence to recruit more manual labours. Thus, this rise of technological trend in retail market would influence Tesco's workforce planning and talent management to look for ways in which automation within the company can be established by reducing manual labour. This is to be done so that the manual labour which requires increased time and cost for management in comparison to the automatic workforce can be reduced for ensuring better productivity for the organisation. Moreover, this trend would influence talent management in Tesco to focus on leading the employees to be taught technical skills so that they are efficient in using the automatic machinery in delivering services to customers in an unhindered manner.

The current labour market condition in relation to retail industry indicates there is high scope for recruitment as many vacancies are being created (dera.ioe.ac.uk, 2012). It is going to impact on Tesco to create vacancies for more employees to be recruited as well as face huge turnover of employees. This is because many employees in Tesco are from overseas who would have to leave their jobs as a result of Brexit creating huge turnover in the company as well as shortage of labour. The labour market for retail industries are seen to be becoming dependent on automation and technology (dera.ioe.ac.uk, 2012). This labour market condition would affect Tesco to upgrade and innovate their working techniques so that new technologies and automation can be adopted in manufacturing products.

P2 Explaining different types of legal requirements to be considered by the organisation during workforce planning (M1, D1)

The legal requirements to be considered by the organisation during workforce planning include health and safety of employees, maintaining ethics, data protection and others. The Health and Safety at Work etc Act 1974 mentions that balanced framework is to be maintained so that health and safety of the employees at the workplace can be secured. This is to be done by protecting employees against harm towards their welfare and health by minimising and eliminating any risk or hazards. The employees under the Act are to provide safety systems and protective equipment at work (legislation.gov.uk, 1974). The workforce planning in Tesco under the influence of the Act require to consider providing as well as maintaining the safety of the employees by eliminating any nature of harm or hazards within the organisation. The Equality Act 2010 mentions that employees under no consideration are to be discriminated at the workplace or in society (gov.uk, 2010). This Act influences workforce planning of Tesco to ensure that they develop a diverse working environment where people of all culture, race, sex and others are equally provided opportunity to work without any form of discrimination.

The National Minimum Wage Act 1998 informs that organisations are to arrange minimum wages of the employees as per the decision and rule made the UK government (legislation.gov.uk, 1998). The Act influences workforce planning of Tesco to review the minimum wage set by the UK government as per trade and industry. This is to be done so that the organisation can fix proper wages for their labours and employees, in turn, helping them to ensure the proper economic stability of their staffs. The Data Protection Act 1998 informs that no personal information of the employees and others are to be made public or shared without the permission of the owner (legislation.gov.uk, 1998). This Act influences the workforce planning of Tesco to ensure proper protection while the storage of personal information of the employees so that they are not made public under any condition without prior consent from the owner. The Contract (Applicable Law) Act 1990 mentions that proper facts and data are to be mentioned in the contract for employment that is to be followed by employees while being recruited to work for the organisation (legislation.gov.uk, 1990). The Act influences workforce planning of Tesco to frame employment contracts in such a way so that details of job responsibility, company policy and rules, wage, leave and others are mentioned which are to be followed by and for the employee while working within the organisation.

LO2

P3 Determining and analysing current and anticipated skills required for a range of organisation (M2, D1)

The market environment of Tesco mentions that the company has failed to execute effective job analysis. It is evident as many employees are found to be not properly skilled and suitable for their job which has led to customer dissatisfaction. The lack of skilled employees providing proper servicers has led Tesco to face a havoc of £ 6.4 billion loss in 2015 (theguardian, 2015). This indicates that lack of effective employees being recruited through proper job analysis has led the company face lower profits and more losses hindering their image in the market. Thus, Tesco requires having the skill of proper job analysis. The Job analysis is the ability of the organisation or individual to gather as well as analyse effective information regarding the content along with human requirements required for the job or for the context in which the job is to be performed. The skill is used for determining the way job placements are to be made (Huang et al. 2019). For example, the human requirement in jobs for the retail business in which Tesco is performing through effective job analysis skill mention that the organisation need to recruit and select young employees. This is because the current trend in the retail industry is the recruitment of young employees who are willing to learn and work in lower wages as well as more time (Sarker and Ashrafi, 2018). In case of Morrisons who is also a retail giant like Tesco in the UK market, it is seen that they also through job analysis are planning to recruit and select young employees to work with them who are willing to learn (Morrisons-corporate, 2012). Thus, this informs that Tesco, as well as similar organisation through the use of job analysis skills, are able to determine that they need young workforce as the human resource for their organisation to operate their business effectively.

The skill of job analysis is beneficial as it allows the organisation to be able to examine if the objectives and goals of a certain job are properly accomplished or not. This is required as it helps them to determine the standards of performance and output of the employees. It leads the organisation to measure the overall performance of employees and way the person can be appraised to motivate them to work properly (Lee and Ha-Brookshire, 2017). For example, Tesco’s job analysis skill has lead the management to be able to determine the standards of the progress of each employee in using technological and digital advances to safely execute allocated jobs in the organisation. This, in turn, led them to identify in which aspect changes are to be made so that legal requirement of ensuring safety to the employees can be accomplished as well as technologically effective services can be provided by the employees as per labour trends of the retail market. The job analysis skill is helpful for the organisation to assess the training and development required for the employees so that they can be able to perform efficiently as per market trends (Kim and Youn, 2015). For instance, Tesco through their job analysis skill has developed ideas of training and development for its employees that are focussed on making them learn regarding the way various technologies can be used by them to simplify and improve their way of providing services. In case of Asda, it is seen that they are also using job analysis skill to determine the training and development needs of their employees so that the staffs can be made efficient to provide upgraded services as per demand in the market (asda, 2019).

The job analysis skill plays an essential role in leading the organisation to determine the pay packages as well as perks for the employees (Kamarulzaman et al. 2015). For instance, retail market trends inform that employees due to low wage are avoiding working in the industry and are leaving (niesr, 2018). In this condition, Tesco by using their job analysis skill have been able to determine proper wages in such a way so that effective remuneration and wages for the work efforts provided by the employees can be honoured. It is essential as proper wages leads employees to be satisfied and develop the zeal to work due to the proper availability of finances as per their efforts (Addison et al. 2015). In Asda and Morrisons, it is seen that they analyse the job position as well as market trends to determine compensation and wages for the employees so that the proper amount of staffs can be retained to ensure effective productivity of the organisation (Asda, 2019; Morrisons, 2019).

The other skill required by the organisation based on the labour trends and legal requirements is effective ability to gather data and information. This is because proper collection of information leads the organisation be informed about the guidelines and specific activities to be implemented in the organisation so that smooth workforce management can be entertained (Liu et al. 2018). For example, Tesco along with its competitors such as Asda, Morrisions and others arranges market research to collect information and data regarding the national labour policies, changes in the current labour market, preferences of potential candidates for recruitment in the retail industry and others. This is executed so that effective information is present with the organisation for developing proper workforce planning that supports effective working of the employees. The organisation according to current legal requirements as mentioned in the Contract (Applicable Law) Act 1990 requires having the skill of developing a proper job description and job specification skills (legislation.gov.uk, 1990). This is because job description helps the employees to remain clarified about the duties and responsibilities to be executed by them at the workplace. In addition, the job specification informs qualification and education required by the employees for a particular job (Huang and Gamble, 2015). Thus, having effective skill to explain job specification and description to the employees by the organisation leads them to clarify the way the employees are to work while being in the organisation. This, in turn, neglects any nature of the fraud or improper promises to unethically lure candidates to get recruited in the company.

Recommendations:

The discussion mentions that it is recommended Tesco recruits young and energised employees who have less experience so that they can be hired at lower wages and later be made skilled through proper training in the organisation. Moreover, it is recommended proper job descript along with job specification is to be mentioned while advertisement of any job so that the legal; requirements mentioned in the Contract (Applicable Law) Act 1990 are properly followed by Tesco. It is also suggested that Tesco improves the wage and compensation provided to the employees as per industry standards so that better financial stability and remuneration for the work efforts can be provided to motivate the staffs to work effectively.

Part 2:

LO3

P4 Example of job description and person specification (M3, D2)

The recruitment and selection process includes at first identification of need within the organisation and development of proper description of the job position which is to be advertised. It is then followed by recruitment planning in which HR frames the plan regarding the way recruitment is to be made for the job position. This is followed by sourcing and advertisement in which the job specification and description are properly mentioned and HR selects the sources through which the candidates are to be selected. Further, the selected candidates are examined and interviewed and later offer letter is provided in which details of the responsibilities are mentioned for the job position they are recruited (Uddin and Arif, 2016). This is the similar recruitment and selection process adopted by Tesco for selecting candidates in their organisation.

P5 Evaluating different recruitment and selection methods for proper talent planning and resourcing (M3, D2)

The organisation such as Tesco and others are able to use internal and external recruitment process for proper talent planning and resourcing. As asserted by Sarker and Afroze (2015), internal selection and recruitment is the process to hire employees from inside the organisation. This means that the selection of the employees for the specific job position is to be done by reference from existing employees in the company or allocation of existing staffs to the new job position. As mentioned by Klementová et al. (2016), benefit of using internal recruitment and selection process is that it improves the morale as well as retention of staffs. This is because internal recruitment leads the existing staffs to get promoted or transferred to better and higher position in the organisation where they are offered better opportunity of career expansion and effective chances of using their skills. It makes the employees experience value as they are provided better opportunity at work, in turn, improving their morale to show better effort at work. Thus, using internal recruitment process would lead Tesco to provide promotion to their existing staffs as well as fill required positions left vacant. As criticised by Anand et al. (2018), limitation of using internal process of recruitment is that many potential candidates are not allowed to be hired who are present in the external market. This is because they are not known to the internal employees to be referred for the position and the potential candidates present externally are neither informed of the job position. This would impact Tesco to face limitation in recruiting better and highly qualified candidates compared to their existing staffs to better position in the company. The other limitation of internal recruitment is that while one employee is recruited to the new position the previous job position in which the employees was working remains vacant (Anand et al. 2018). Thus, the total workforce required by Tesco to ensure their proper execution of the business is unable to be achieved through internal recruitment process.

The external recruitment and selection is the process in which candidates are sourced from employment agencies, campus recruitment, advertisement, professional associations and others (Afroze, 2016). As commented by Gërxhani and Koster (2015), the benefit of using external recruitment is that it leads the company to select and recruit candidates from pool of talents in the market. This assists the organisation to recruit improved and new talented employees who have better efficiency and innovative skills to create better changes at work which create improved productivity for the business. Thus, this recruitment process would help Tesco to draw in new talents in the company for improving their business. As argued by Trivedi and Muduli (2015), limitation of external recruitment is that it is time-consuming as well as takes increased amount of finances to arrange the recruitment session. This means that external recruitment leads organisations such as Tesco to spend increased finances and time for recruitment and selection of proper candidates. The other limitation of external recruitment is that candidates hired in this process are often seen to have limited knowledge regarding the company and thus takes increased time for adjustment with work (Gërxhani and Koster, 2015).

Recommendations:

The organisations such as Tesco and others are recommended to use both internal and external recruitment process in the selection of candidates. The organisations are recommended to use internal recruitment when there is an urgent need of any employee for a job position in the company and the external recruitment is to be used when there is time to be spent for proper analysis and selection of employees for the determined job position. The proper use of social media and print media along with job websites are to be used by organisation for effectively sourcing candidates in external recruitment. Moreover, it is recommended a thorough background check of the candidates is made during external recruitment to ensure the suitability of the candidate for the organisation.

LO4

P6 Evaluating the stages of HR life-cycle and its importance to strategic talent management (M4, D3)

The HR life-cycle is referred to a human resource management concept which describes the different stages of employee’s time in the organisation as well as duty of the human resource department at each step (Cascio, 2015). The stages of HR life-cycle are:

Recruitment: In the recruitment stage, HR has the key duty of selecting the best and right candidates for the organisation who are able to effective contribute to ensure growth of the business. The HR in this stage is also responsible to fire employees fast who are not showing proper performance and recruit candidates who show better zeal and efficiency to work (Collings et al. 2018). This is because it would lead HR to manage the productivity of the organisation. In Tesco, during recruitment, the HR performs the mentioned duty as well as analyse the benefit packages to be provided to the candidate after recruitment (Tescoplc, 2019). The importance of recruitment stage in strategic talent management is that allows selection of high-quality talented individuals with expert skills according to the anticipated human capital determined to be required for meeting the needs of the organisation (Reuben and Mwangi, 2019).

Education: The employees in this stage are informed about the values of the companies and work procedure to be followed to execute their duties and responsibilities. Moreover, the employees are trained to inform about better skills to make them be able to execute more complex tasks with efficiency (Bournois et al. 2017). In Tesco, the education is provided by the HR through arrangement of the training program by analysing the needs of the employees (Tescoplc, 2019a; tescoworkers, 2019). The education is important for strategic talent management because it allows improving existing skills of employees as well as leads them to develop new talents, in turn, making the company be able to manage talented workforce in the organisation who are able to ensure productivity and growth of the business (Bournois et al. 2017).

Motivation: In the motivation stage, the HR has the key task to make the employees remain satisfied and inspired to work within the organisation. The lack of motivation among employees leads the organisation to experience turnover of employees as the staffs try to find jobs at other places where their work effort are properly remunerated and they are offer satisfactory and better work environment (Liu et al. 2017). In Tesco, through proper remuneration, employee benefit, bonus and others which are provided in non-discriminative manner the HR provides motivation to the employees to work properly (Tescoplc, 2019a; tescoworkers, 2019). The employee motivation is important for strategic talent management as it allows proper talents to be retained and managed within the organisation (Jamali et al. 2015).

Evaluation: The evaluation of the employees is executed by HR with the help of managers and leaders to determine their performance. Moreover, it is done to inform employees regarding their weakness which are to be improved so that they deliver proper productivity at work (DeCenzo et al. 2016). In Tesco, the annual employee evaluation is done where staffs are provided feedback by the managers regarding their performance so that each of them remains alert regarding their strength and weakness that are to be resolved (Tescoplc, 2019a). The evaluation is important for strategic talent management so that the HR can determine through performance evaluation which employees are to be retained and which staffs require to be fired so that effective talent within the organisation can be stored for helping the business to grow (Holland et al. 2015).

Celebration: The proper recognition to the employees is to be provided by celebrating their success and hard work (Al-Emadi et al. 2015). In Tesco, they celebrate the hard work of the employees by providing them financial benefit, making them an employee of the year, sending employees on paid vacation or time-off and others (Tescoplc, 2019a). The celebration of employee’s hard work and effort is important for strategic talent management so that high-quality talents within the organisation can be boosted to show better skills so that better value of the business can be accomplished through them to make the company y reach effective competitive position in the market (McManus and Mosca, 2015).

P7 Evaluating the way stages of HR life-cycle are implemented in organisational HR strategy and integrated to support strategic talent management (M2, D3)

The recruitment stage of HR life-cycle is implemented in organisational HR strategy of Tesco by following specific legal requirements and labour market trends of the industry. This is because proper recruitment process requires following legal specification so that no discrimination or violation of rules occurs which may create chaos or lack of cooperation from selected candidates during the selection process. In addition, the labour trends are to be followed so that the HR of the organisation has information regarding the way recruitment is to be planned for its success (Rees and Smith, 2017). The recruitment supports strategic talent management as it helps the organisation to gather the anticipated talents required to improve value of the business (Armstrong et al. 2016). The implementation of effective recruitment is helping Tesco to select qualified and experienced candidates as required for the job position in turn ensuring them to offer better services to consumers (Tescoplc, 2019a).

The education is implemented in organisational HR strategy of Tesco by arranging training programs on the basis of analysis of needs of the employees. The training made based on needs of the employees helps them to get educated for resolving their weakness and upgrade their skills to provide better work effort (Bournois et al. 2017). The training integration supports strategic talent management as it leads the employees of the organisation to develop skills and talents which are required to meet the strategic goals of the organisation (Khasawneh and Al‐Zawahreh, 2015). The implementation of training has led Tesco to experiences less errors at work and face less negative comments from the consumers for their services. This is because Tesco employees through education are trained to understand the way they are to act to provide satisfactory services to the consumers (Tescoplc, 2019a).

The motivation is implemented in organisational HR strategy of Tesco by arranging proper remuneration and employee benefit without any nature of discrimination. The motivation is integrated to support strategic talent management in Tesco by providing benefits to talented employees in the organisation and recognising their hard work (Tescoplc, 2019a). This step has led Tesco develop better productivity as well as incur better finances for their organisation. It is evident as in 2018 the annual profit of Tesco is raised by 28% than the previous year indicate better performance of the company (theguardian, 2018).

The evaluation is implemented in organisational HR strategy of Tesco by arranging weekly and annual employee monitoring program where employees are provided feedback regarding their performance (Tescoplc, 2019a; tescoworkers, 2019). This has affected Tesco to identify the non-performing employees and the staffs in turn helping them to interact with such employees and staffs to provide them information regarding the way they can improve their work to ensure better productivity for the organisation. The celebration is implemented in organisational HR strategy of Tesco by allowing employee benefits in the form of paid-off vacation, announcing employee of the year and month and others (tescoworkers, 2019). This has lead Tesco to show value towards their employees in turn making the employees show great effort that has led to rising profits for the organisation in 2018 (theguardian, 2018). The celebration is integrated to support strategic talent management in Tesco by indicating the management which employees are most talented and required to be retained through effective actions and benefits so that the anticipated human capital needed by the organisation to meet the planned goals is accomplished (Tescoplc, 2019a; tescoworkers, 2019). The motivation of employees is implemented in Tesco by offering the salary as per industry standards as well as offering them benefits based on their improved work. This has led the organisation to inspire their employees to work harder as the employees feel that they are properly remunerated for their added work and support provided to the betterment of the company (theguardian, 2018; Tescoplc, 2019a).

Conclusion

The above discussion informs that current labour market trends in retailing industry which are influencing Tesco are recruitment of young employees, low labour cost, technological upgradation and others. The legal requirements such as Health and Safety at Work etc Act 1974, National Minimum Wage Act 1998 and others influences Tesco’s workforce planning. The job analysis along job description, data and information collection, job description skills are required in effective workforce planning as per labour trends. The recruitment and selection methods used are internal and external. The HR life-cycle stages are recruitment, education, motivation, evaluation and celebration which influence the HR strategy of organisation such as Tesco.

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