Human Resource Management (HRM) focuses on humans, the people, who are the building blocks for the businesses, societies and the whole world. Therefore, proper understanding and practice of human resource management practices and procedures is crucial to enhance humans’ abilities & skills to achieve their goals, which can be individual, group, business, societal or pubic goals. Proper understanding and application of HRM appears in many practical cases in our lives. One of the global cases is the unemployment problem that affected the whole world due to Novel Corona Virus (COVID-19). The U.K. was one of these countries that had a drastic raise in unemployment because of COVID-19, starting from last March. The government made two prominent schemes to combat this problem. The first was Corona Virus Job Retention Scheme (CVJRS), from Mar 1st to Oct 31, 2020, while the 2nd was (KickStart Scheme), which started this month (Sep 2020). The past and future success of the U.K. government, businesses and people is accredited to proper understanding and practice of HRM. Therefore, Management with Merits (MANWIM) Channel is pleased to introduce the most recent and contemporary book in HRM, which is (Human Resource Management) 2020 Book, by Gary Dessler (Pearson, U.S.A.), as per the 1st figure below. The channel presents this book as part of its mission in enhancing the society’s prosperity, driven by its slogan (Manage to Prosper). The book will be the 2nd one in the 2nd Year Program of Books within the service of Global English Management & Leadership Books in the channel. Given that we haven’t received any suggestions regarding the books of the 2nd year, despite our repetitive calls, we’ve chosen this book because of the importance of HRM in our whole life. Humans are the ones who start businesses and build this world. Also, the book itself is the most recent and contemporary edition (2020). It will be taken in 4 months, after the 1st book (Principles of Marketing 2018), which are Feb, Mar, Apr & May 2021 (2nd figure below). As per our previous books, a full playlist in our YouTube Channel will be dedicated for the videos of this book. Besides, a full category in this website will be dedicated for the posts of the book. To download the associated presentation (PDF), kindly go to the video at YouTube & click on the appropriate link in the description section below the video.
Human Resource Management & U.K. Unemployment :
Human resource management is the key point in the problem of U.K. Unemployment. Employment, wages, redundancies and other related matters are all part of HRM. Thus, understanding and solving U.K. unemployment problems won’t be achieved without proper understanding and practicing of HRM.
As per the British Office for National Statistics (ONS), there were 1.4 million unemployed British people in the last quarter this year (May-Jul). The problem started with the issuance of lockdown orders in Mar 2020 due to Novel Corona Virus. The British Chancellor of Exchequer (Rishi Sunak) stated in Mar 2020 that the Government would step-in by paying people’s wages to stay at home. Therefore, Corona Virus Job Retention Scheme (CVJRS) was launched initially for three months, with the possibility of extension. Up to Aug 2020, about 2.7 million British people applied to the benefits of the scheme. After that, in May 2020, the scheme was extended until the end of next October. By the end of the scheme, the government has put several options for the businesses to retain employment as much as possible and avoid redundancies, as shown below.
Due to reaching the expiry of the scheme, a lot of businesses have laid off plenty of employees. There were 48,0000 redundancies in the most recent quarter (May-Jul 2020), as per the 1st below figure. This caused a big raise in unemployment in the same quarter by 0.2 percentage points compared to the previous quarter (2nd figure below). In spite of that, employment also raised by a rate lower than unemployment because of easing the restrictions of lockdown and reopening several businesses (3rd figure below). The conclusion was an overall raise in unemployment. The most vulnerable people were the age group of (16 to 24) years old, as per the 4th figure below. The reason was that this age group was mostly working within the hospitality sector (restaurants, bars, hotels, etc.), which was the most negatively affected business sector by the lockdown of Novel Corona Virus. As per recent research, this is very likely to cause long term scarring effects for these young people due to the extreme risk of long term unemployment. In turn, this will have severe negative long term effects on the whole British society.
The Reaction of the U.K. Government :
CVJRS was not a sustainable solution because it simply focused on paying money to people. Thus, the government has shifted its efforts to more sustainable options, focusing on helping the most vulnerable age group from unemployment (i.e. 16-24 years old). Instead of paying money, the government has focused on equipping and providing these young people with the necessary competencies, skills and behaviors to gain new experiences, get new jobs and pursue fresh careers. Consequently, this will help them to achieve the goals of themselves, the businesses and the government in general. Such jobs might be totally different from the previous experiences of the applicants. However, in such sensitive conditions, it’s much better to secure a job and sustain your life than to focus on getting a perfectly-tailored job to your preferences, education or experiences.
Keeping these points in mind, the U.K. Government launched the (Kickstart Scheme) in Sep, 2020, allocating GBP2 billion for it. The scheme aims to find new jobs for the laid-off youth British in local companies. Thus, the government will fully sponsor the first 6 months of employment, including training and orientation. In turn, local British businesses must create and offer jobs for these new youth employees. Thus, the government has strongly recommended British business to do so via applying to the scheme, as well as sustaining the newly created jobs and keeping the new employees with the businesses after the expiry of the scheme (i.e. the 6 months duration). On the other hand, interested and eligible new employee candidates can apply to the jobs starting from next November. In order to help them cope with this transformational change in their careers, the government has provided them with specialized career help and coaching.
The Role of Human Resource Management in the Past & Future Challenges of the U.K.
The U.K. Government launched CVJRS as part of its human responsibilities towards the public. Therefore, it was a demonstration of proper understanding and application of human resource management practices. Besides, launching the new (Kickstart Scheme) is also aligned with Her Majesty’s (HM) Treasury mission and goals of achieving “strong and sustainable economic growth” for the British public (1st below figure). This proves that human resource management is driven by the strategic goals, whether in the governmental, businesses or personal levels. Thus, the Human Resource Management Model, which is the base of Human Resource Management 2020 Book, clearly demonstrates this, as per the 2nd below figure.
Correct understanding and application will be also crucial for Britain to survive and succeed in implementing Kickstart Scheme. First, the government must ensure that the whole scheme runs smoothly to ensure achieving its basic goals of nurturing the whole British economy and society. Second, the applicants must be mentally and physically ready to pursue new careers and experiences, apply to the scheme, pass the selection criteria and succeed in their orientation, training and new jobs. Third, the human resource management department, functions and practices will bear the majority of the burden of successful implementation of the scheme. We’d like to show here that HRM in businesses is not limited to HRM department for two reasons. First, not all businesses have HRM departments, which depends on the business strategies and size. Second, whether there are HRM departments or not, human resource functions and practices are the responsibility of all managers in the organization. Below, we show how the human resource departments and functions will bear the responsibility of applying Kickstart Scheme in the U.K., based on the above HRM Model. The businesses must make proper HR policies and practices to ensure that all the employees, current and new, have the necessary competencies and behaviors to help their organizations achieve its strategic goals.
- Strategic and Legal Environment: businesses must align their obligation and commitment towards the scheme with their strategic goals. Challenges will appear in creating new job positions in accordance with their strategies and statutory laws.
- Recruitment and Placement: challenges and difficulties will arise in choosing and placing the suitable candidates.
- Training and Development: Given that most of these new employees will lack the necessary experience in these new jobs, businesses must exert tremendous effort to perform proper orientation, familiarization and training for the new employees.
- Compensation: It’s true that the government will pay only the 1st six months of employment, including training and orientation. However, the whole scheme won’t be successful unless the businesses retain and maintain these employees and fully include them in their employment force. This will require the businesses to integrate the new employees in the compensation package and provide them with fair compensation packages (wages, incentives, insurance, etc.).
- Employee Relations: The new employees can’t demonstrate their competencies and do their roles properly if their relations, safety and well-being are not being taken care of. Therefore, the businesses must work carefully to ensure that the new employees are smoothly integrated in the new (work family), as well as ensure that their safety, security and well-being are protected and maintained.
That was our session for today, guys. Thank you so much for being with us. Next English session, we will introduce the 3rd and last book in the 2nd Year Books’ Program in the channel. Please share with us your opinions and suggestions for the topics or titles of the coming book. Please support the channel strongly so we can continue our glorious mission. Our production is every Thursday. Please subscribe to the channel at YouTube and activate the notifications bell there. Please stay with us, follow us, participate with us, and widely share the channel and all its electronic contact platforms.
Important Note: Based on the recent update and announcement on Thurs, Jan 21, 2021, the weekly production of videos each Thursday will be temporarily stopped from Thurs, Jan 28, 2021 to the 2nd annual anniversary of the channel (Aug 13, 2021). All the sessions of the 2nd Book in the 2nd Year Program (Human Resource Management 2020) will follow the new schedule. Besides, the 3rd book in the 2nd Year Program (Financial Management 2019) will be delayed to become the 1st book in the 3rd Year Program.