The talent planning and resourcing in Tesco

Running head: HRM
RTO
Name of the Student:
Name of the University:
Author Note:

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Introduction:
The essay aims at drawing an insight into the tight and the loose labor market. Labor
market commonly known as job market represents the demand and supply of labor where
employers put across the demand and the employees provides the supply. It represent key
component of an economy that remains tied intricately with the market for goods, services and
the capital. At macroeconomic level, the demand and supply remains influenced by the dynamics
of the international and domestic market along with factors like immigration, age of population
and the levels of education. The relevant measure includes productivity, unemployment, rate of
participation, gross domestic product (GDP) and overall income. While at microeconomic level,
firms have been found to interact with the employees, firing or hiring them along with raising or
cutting the hours and wages. The relationship between the demand and supply influence the
hours that employee work and the compensation he/she receive in terms of wage, benefit and
salary. The essay commences with a detailed understanding of the tight and the loose labor
market conditions. The essay also analyzes differences between the tight and loose labor markets
by drawing in practical examples that will help in better understanding and gaining deeper
knowledge. The essay also highlight how the labor market create an impact on the talent
planning and resourcing in Tesco. The essay also analyzes and critically evaluates the planning
activities of HR in Tesco along with a mention of practical examples that portrayed the
evaluation in a manner that seemed applicable in practice.
Discussion:
Definition of the Tight and Loose Labor Market
The macroeconomic overview puts across a vital indicator for the activity of the labor
market that shape the scope through which organizations retain, recruit and develop the people in

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line with wider strategy of the organization. Through becoming increasingly aware regarding the
interconnected factors that persist within this particular dynamic, the HR professionals can
monitor the likely developments with enough pro-activeness and adapt the changes with greater
level of agility. The labor market seems to be that aspect of an economy which has an immense
impact on the lives of the people (Kroft, Lange and Notowidigdo 2013). Developments in the
labor market embarks an influence on the job prospects and security which is central to the future
plans and the wellbeing of the people. The labor market also acts as the key for tracking and
analyzing the business cycle. This is because labor cost, wage, vacancies and job are key
indicators and drivers of developments in the business cycle. Developments in labor market seem
to discriminate the temporary level of economic fluctuations from the changes in the actual
business cycle. Hence, the present state of labor market is a matter of concern. The essay in this
section focuses primarily on the tight and the loose labor market.
Tight labor market is described as a situation when the economy remains closer to full
recruitment and employment and it necessary to place upward pressure on the wages (Jahn and
Rosholm 2014). In other words a tight labour market remains characterized by lower rate of
unemployment, higher quit to employment ratio, short spell on unemployment and an upward
pressure on the wages. The figure depicted below portrays what really happens to the labour
market of the economy that reaches closer to the full employment situation. Once the economy
approaches the full employment increasing level of output is required to be made for meeting the
rising demand for the products. When the economy is closer to the full employment situation
additional labour cannot be easily hired since the pool of the additional workers becomes
smaller. Hence, the aggregate demand for the labour curve moves to the right as the firms prefers
to employ workers however supply does not seem to be available. Finally, the additional demand

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causes the existing wage to rise steadily with workers holding a higher level of bargaining
power. This is indicated by the point C in the diagram which represents a higher wage rate for
cancelling out the additional demand for the labour.
Figure 1: Graphical Representation of a tight labour market
Source: (Krueger 2015)
Loose labor market is described as a situation when there is an excess supply of labor in
an economy that has a constant demand for job. This causes a downward pressure on wage. In
other words, loose labor market can be defined as the employers or the buyer’s market where the
organizations have huge pool of available and potential employees for hiring in a situation with
scarcity of jobs (Nunley et al. 2017). Here the job seekers competes amongst one another for
acquiring same position. The loose labor market is primarily characterized by increased flow of
the immigrants and higher level of unemployment. The figure below represents a loose labor
market where there an increased supply of labor marked by S1 with demand remaining constant.