Question

Describe what is meant by the external labor market. Discuss three (3) current trends in the external labor market, and give your reasoned opinion regarding whether these are positive or negative developments. Finally, if any of these trends are negative developments, explain whether you believe organizations can adequately address them to gain competitive advantage.

Answer 1

The external labor market means that the company looks outside its premises for a particular senior job. The company is against the provision of promotion or employee recommendation. The companies in today’s era adopt the external sources to reduce the costs. The internal employees tend to criticize the process because if the managers promote the employees, they might demand more money than the managers appointed from an external source. It is also because the external employees are new to the company, and they might comparatively demand less. Secondly, the companies also tend to take the help of contractual labor and workers. The contractual labor agencies provide all the types of employees for every purpose. For instance: the contractual agencies also provide the agents for a particular time or a festival. The last point is that the external employees might have various skills. The external employees have various skills that the current internal employees might not possess. The internal employees might also take the company for granted because of work in the same company. The employees might also criticize the action, but it will benefit the companies and the stakeholders. Hence, the companies must adopt the external sources for recruitment. It is because the sources provide an abundance of advantages.