Optimizing Talent Planning Initiatives during Downsizing at PTP Soda

This report provides an analysis of talent planning initiatives at PTP Soda, a soda drink company undergoing downsizing to diversify its product line. It examines the impact of current labor trends on workforce planning and labor market conditions, highlighting the roles of employers, industry, government, and trade unions in talent management. The report also discusses PTP Soda's strategic positioning for attracting top talent, including prioritizing intelligence over experience and offering telecommuting options. Furthermore, it outlines principles and tools for career development and succession planning, suitable recruitment methods, and strategies for retaining key talents while assessing reasons for employee attrition. The evaluation of cost-benefit analysis for human resources and best practices during downsizing exercises, such as early retirement, buyout packages, and layoffs, are also discussed, providing a comprehensive overview of talent planning in a changing business environment. This document is available on Desklib, where students can find a variety of solved assignments and past papers.

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Executive Summary
Human resources are the most valuable and significant assets for leading organizational success.
The study has chosen PTP Soda for analyzing its talent planning initiatives during downsizing
process. The organization is going to diversify its drinks for changing market condition and
consumer preferences. Hence, it will downsize for restructuring the business and employ most
talented employees in the new business process. The reduced employment rate will force the
managers of the organization to increase the wage rate of the employees. On the other hand, the
study has described the role of union, employer, government and industry in the talent planning
initiatives. The study has described effective career development and succession planning for
retaining the remaining employees after downsizing. Moreover, the organization will use internal
job posting for developing the career of the employees. Furthermore, the study has advised best
practices of downsizing to the organization through early retirement, buyout package, layoff and
many more.

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Table of Contents
Introduction......................................................................................................................................4
1.1 Current Labor Trends and Their Significance for Workforce Planning....................................4
1.2 Current Labor Trends and Their Significance for Labor Market Conditions............................5
1.3 Role of Employer, Industry, Government and Trade Unions in Talent Planning Initiatives....6
1.4 Strategic Positioning of PTP for Attracting Top Talents...........................................................7
1.4.1 Proven Brand Strength in Job Advertisements...................................................................7
1.4.2 Prioritize Intelligence over Experience..............................................................................8
1.4.3 Targeted Recruitment Strategy...........................................................................................8
1.4.4 Offering Telecommuting Options.......................................................................................8
2.1 Principles and Tools for Development of Potential Succession and Career Plans....................9
2.1.1 Assessment of Skill Gaps...................................................................................................9
2.1.2 Job Posting..........................................................................................................................9
2.1.3 Natural Selection Succession............................................................................................10
2.1.4 Acceleration Pool..............................................................................................................10
2.2 Suitable Recruitment Methods................................................................................................11
3.1 Strategies to Retain Key Talents and Assessment of Reasons for Employees to Leave.........11
3.1.1 Strategies to Retain Key Talents.......................................................................................11
Creating New Career Path.....................................................................................................11
Employee Engagement..........................................................................................................12

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Proper Mission and Vision....................................................................................................12
Reward and Recognition........................................................................................................12
3.1.2 Assessment of Reasons for Employees to Leave.............................................................13
Job Insecurity.........................................................................................................................13
Low Morale...........................................................................................................................13
Unwillingness to Adopt with Changes..................................................................................13
3.2 Evaluation of Cost Benefit Analysis for Human Resource.....................................................14
4.1 Best Practices during Downsizing Exercises...........................................................................14
4.1.1 Early Retirement...............................................................................................................14
4.1.2 Redundancy......................................................................................................................14
4.1.3 Buyout Packages...............................................................................................................15
4.1.4 Layoffs..............................................................................................................................15
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................17

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Introduction
Human resources are the people, who make up workforce in an organization. Human
capitals are considered to be the most important organizational assets for organizational success
(Albrecht et al. 2015). The study has chosen PTP Soda, which soda drink company and wants to
downsize for significant business needs. Moreover, the organization wants to diversify its drinks
with the changing market needs and consumer needs. The study will assess the impact of current
labor trends on the workforce planning and market condition for the organization. Furthermore,
the study will also assess the role of employers, government, trade union and industry in talent
planning initiatives. The strategic positioning of the organization to attract the key talents will
also be described in this study. On the other hand, the study will develop successful career
development and succession planning retaining the remaining key talents. The cost benefit
analysis of downsizing process will also be evaluated in this study. Lastly, the study will advice
best practice of downsizing exercise for the PTP Soda.
1.1 Current Labor Trends and Their Significance for Workforce Planning
Current labor trends can have huge impact on the workforce planning of PTP Soda. The
falling unemployment rate of United Kingdom and the developed international countries can
influence the workforce planning of the organization. In such situation, the demand for key
talented employees will be higher for the organization than supply. Moreover, the unemployment
rate of United Kingdom has remained stable at 4.3% through 18 years (Ons.gov.uk 2018).
Hence, the organization will be forced to increase the wage rate of the employees due to higher
demand of key talented employees for their new workforce planning. On the other hand,
McKenzie, Theoharides and Yang (2014) opined that more than 3.6 million company chiefs are

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about to retire in this year, as younger professionals ascend to managerial slots. Hence, the
organization is bound to hire younger job candidates for the key position of their new workforce
planning.
The use of advanced technology has gained wider acceptance among the job candidates
in the labor market. 75% of labors in the world labor market search jobs through online mediums
(Ons.gov.uk 2018). Hence, the organization must use online technologies for hiring and retaining
talented employees and preparing a successful workforce planning. According to Hanushek et al.
(2017), rising rate of freelancing or part time job trends of the labors also highly influence the
workforce planning of organizations. Moreover, 53 million workers in America work as
freelancer and part time workers, which is expected to reach by 40% by the year 2020 (Bauder
2015). Several talented employees do to want to work in pressurized full time working
environment. Hence, such labor trend can hamper the ability of the organization to hire full time
talented employees.
1.2 Current Labor Trends and Their Significance for Labor Market Conditions
According to International Labor Organization, the unemployment rate in the wealthiest
countries is expected to drop by 5.5% (Bearce and Hart 2017). Such labor market trends have
increased the employment option for the potential job candidates. Moreover, the demand for
labor has been increased quite more than the supply of labors. Such labor market trends have
tightened the labor market condition, where the employers are to increase the wage rate for
hiring key talented employees. Furthermore, Card et al. (2018) opined that the labor trend is
highly mobile occupationally and geographically. The share of migrant employees in the total
UK employment has been increased from 7.2% in 1993 to 16.7% in 2015 (Deming 2017). Such

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labor trend has increased the supply of labors in the labor market of UK, which has ultimately
loosened the UK labor market. Contemporary job candidates are high educated and having
higher level of technological knowledge. Hence, such employees are highly demanding to the
employers and such situation leads to tightening labor market condition and pressurized situation
on the employers.
1.3 Role of Employer, Industry, Government and Trade Unions in Talent Planning
Initiatives
Talent planning initiatives seek to attract, identify, develop, engage, retain and deploy
employees, who are considered particularly valuable in organizations. PTP can build a high
performance workplace, learning environment and add value to their drinks brand through
managing their talents strategically. However, the employers have to play a key role in preparing
successful talent planning initiatives. Rathi and Lee (2015) stated that the employers must
evaluate the demand and supply of the employees for perfectly matching their job roles with the
employees for getting best performance outcome. On the other hand, the employers are
responsible for conducting attractive employer branding for attracting key talents from the labor
markets (Taylor 2010). Apart from that, such employers are also responsible for motivating and
satisfying the existing key talents for retaining them towards long term organizational success.
As per Glaister et al. (2018), Industry plays a significant role in the talent planning
initiatives of the organization. Industrial development highly attracts the key talents from the
labor market, which helps the organization to access key talents easily towards implementing
success talent planning initiatives. Apart from that, industrial development of a particular
industry is directly associated with increasing numbers of key job positions in that industry.

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Hence, the organizations can better plan for career development and succession planning towards
framing successful talent planning initiatives. Furthermore, Collings (2014) opined that favorable
employment policies initiated by Government help the organizations in planning effective talent
management initiatives. The minimum wage policies, equal employment opportunities and some
other factory acts have led to favorable working condition for the employees in the organization.
Such policies ultimately assist in attracting, motivating and retaining the key talents for
organizational success. On the other hand, Sparrow and Makram (2015) opined that trade unions
are responsible for protecting the interests of the employees by raising their voices to the
employers. Trade unions are responsible for initiating an effective career development and fair
employment practice in the organization. Hence, it has wide contribution in the in managing
proper talent planning initiatives.
1.4 Strategic Positioning of PTP for Attracting Top Talents
1.4.1 Proven Brand Strength in Job Advertisements
PTP Soda can position them strategically for attracting the top talents in future through
attracting the attention of the targeted job candidates. The organization should use transparent
and clear information regarding their brand strength for attracting the attention of the job
candidates. Apart from that, the employers of the organization should also enhance the position
attractiveness by clearly stating job duties, competitive compensation, benefits and geographical
location in the job advertisement. Such attractive job related factors would definitely attract the
attention of the top talents.

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1.4.2 Prioritize Intelligence over Experience
Experience is considered as one of the most important factors for building a strong team
in the organization. Church et al. (2015) opined that the job roles, which require high level of
technical knowledge and comprehensive understanding of system, need experience for building
up skill sets. However, the experienced job candidates often try to apply traditional knowledge
and technique in their jobs. Hence, the organization should sometimes target the new and fresh
intelligent job candidates for fostering innovative ideas in producing new kind of drinks.
Moreover, such techniques of prioritizing intelligence over experience would position PTP Soda
strategically for attracting new top talents in future.
1.4.3 Targeted Recruitment Strategy
The job candidates are more likely work in an organization, where the employees from
diverse backgrounds get equal treatment from the employers (Cappelli and Keller 2014). Hence,
PTP Soda should use targeted recruitment strategy for positioning itself strategically in attracting
the top talents in future. In such recruitment strategy, PTP Soda will use appealing recruitment
message in its job advertisements based on diverse backgrounds of the job candidates. Such
diverse and appealing messages would definitely attract the attention of the top talents from
diverse backgrounds.
1.4.4 Offering Telecommuting Options
More that 70% job candidates around the world seek jobs through online mediums like
emails, social media, telephone and others (Thunnissen 2016). Hence, PTP Soda should offer
telecommuting options for attracting new top talents for their key job positions. Moreover, the
organization should use emails, social media sites, telephone and others for reaching more

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numbers of top talents in the job market. Hence, this strategy would definitely position the
organization strategically for attracting the top talents in future.
2.1 Principles and Tools for Development of Potential Succession and Career Plans
2.1.1 Assessment of Skill Gaps
Assessment of skill gaps is an important area of talent planning, where the skills of the
existing employees are compared with the skills that are actually required for the job positions
(Webb, Diamond-Wells and Jeffs 2017). In case of PTP Soda, the organization is going to
change its business process for producing innovative drinks. Such changes require new and
advanced knowledge and skills on the part of the employees for producing new types of drinks.
Hence, the organization must assess the skills of the existing employees for matching with the
job skills that are actually required for the changing business process. It will ultimately identify
the skill gaps among the employees in comparison with new required skills for the job. In this
way, the organization should conduct downsize for terminating the employees, who are no
longer needed in their changing business process due to their major skill gaps.
2.1.2 Job Posting
Job posting is extremely important for PTP Soda to retain some key talents, who have
high level of potentiality and advanced skill sets for contributing in changing business process.
As per Gilding, Gregory and Cosson (2015), job positioning is an arrangement in which an
organization internally posts a list of job openings for the existing talented employees, so that
they can develop their career paths. Job position is highly effective to attract and retain the
existing key talents during downsizing, as it meets the expectation of the existing employees to
develop their career. Likewise, PTD Soda should conduct internal job positing, where the

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existing key talented employees would get a scope of developing their career. Such scope of
career development would highly attract and retain the key existing talents even during
downsizing process.
2.1.3 Natural Selection Succession
As per Herzberg’s motivational theory, sense of achievements and recognitions yield
positive satisfaction and motivation for the employees (Allen and Bryant 2012). It means that
effective succession planning is highly important for attracting and retaining the existing talented
employees (LeCounte, Prieto and Phipps 2017). PTP Soda should use natural selection success,
where the organization will fill the new key job positions with the existing employees, if they fit
best for the position. However, the organization can also hire from outside, if the existing
employees do not fit best for the new job positions. Such succession planning would definitely
attract and retain the existing employees, who will remain even after the downsizing.
2.1.4 Acceleration Pool
Acceleration pool is an extremely important factor of success planning, which develops
skills and confidence among the existing employees of an organization. In this succession
planning, PTP should invest in nurturing the skills of the high potential staffs through training,
coaching and assigning important work assignments. It will align the skills of the high potential
existing employees with the new skills required for changing business process of PTP Soda.
Hence, it will definitely retain the remaining employees of the organizations by enhancing their
confidence.

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2.2 Suitable Recruitment Methods
Suitable recruitment methods are extremely helpful for sourcing most suitable job
candidates, who will be most suited for the vacant job position of an organization. In case of PTP
Soda, the organization is going to downsize for firing some employees, who are no longer
needed for their new production process. However, at the same time, the organization also needs
some key talents for implementing their new production process. In such situation, the
organization can use internal positioning method for recruiting the best talents for their talent
planning initiatives. In such recruitment method, the employers will recruit the key existing
talents from within the organization. Such people must have skill sets, which will have best fit
with the required skill sets for the changing business needs (Cappelli and Keller 2014). On the
other hand, the organization can also adopt job advertisement method, where the employers will
post job advertisements on social media sites for getting access to wide ranges of talent pools.
However, internal job posting method would be best for PTP Soda, as it would motivate and
retain the existing key talents as well as fill the vacant position with best employees.
3.1 Strategies to Retain Key Talents and Assessment of Reasons for Employees to Leave
3.1.1 Strategies to Retain Key Talents
Creating New Career Path
According to Maslow’s motivational theory, the scope of career development meets the
self-esteem needs of the employees for their ultimate motivation. The organization can retain the
key talents for longer period of time through providing them appropriate scope of career