Learning outcomes:

1. Understand key contemporary labour market trends and their significance for different kinds of organisation in different country contexts

2. Know how to contribute to the development of resourcing strategies

3. Understand how to maximise employee retention

All activities should be completed

XXX and ZZZ are two of the biggest companies competing in the relatively new online gambling industry. Both are run by largely British management teams and are headquartered in Gibraltar where most of their staff are employed.

The industry has grown five fold over the past ten years and is now estimated to be worth around $US 15 million worldwide. These two companies between them, enjoy around half of the market at present, having grown very rapidly in the last few years.

They are based in Gibraltar for two reasons. First, because online gambling is legal and regulated in the territory, and secondly because tax is virtually nil provided no services are provided to Gibraltarians.

Both companies operate dozens of websites and are continually developing their offerings technically in order to retain existing users and attract new ones. Their reach is international, but a significant proportion are based in the USA where online gambling is currently illegal, meaning that the companies face little competition from US-based rivals.

Both XXX and ZZZ have recently appointed HR Directors for the first time. Hitherto they simply operated recruitment and payroll departments to carry out administrative roles. They have few HR policies in place and have traditionally operated a pretty relaxed and informal management style. Little investment has been made in organisational or employee development.

The two headquarters offices in Gibraltar employ around 200 people each, mainly in call-centre type roles taking calls about technical difficulties, rules of games and other customer support matters. There is a need for all these employees to speak English and at least one other language fluently.

Staff turnover is the biggest current problem. The people required are quite highly skilled, but the jobs are not hugely exciting. Moreover, living in Gibraltar doesn't suit everyone. Living standards are high because taxes are low and pay high, and the climate is lovely. But the territory is only eight square kilometres in area and houses only 29,000 people. It in effect a relatively is a small town, with a reasonably good night life, but not much else. Property is very expensive, making it difficult for families.

Both companies face considerable uncertainties, but in the short term at least are likely to enjoy very considerable further growth.

Activities

1. What labour market trends make it hard for these companies to recruit and retain the staff they need? What developments might change the situation?

2 a. Recommend two differing approaches that could be taken in the short term as means of improving their ability to retain staff effectively.

2 b. What cost savings could be realised as a result?

3 a. Over the longer term what should be the key features of the resourcing strategies that the companies establish?

3 b. What steps should they take to ensure that future skills needs are met?

3 c. Explain how the companies are positioned strategically and to what extent their actions affect one another.

4. Explain why these companies would want to become employers of choice. To what extent would it be possible for them to achieve this?

Draw on examples you have read or know about when responding and take care to justify your answers.

Evidence to be produced/required

Answers to questions equating to approximately 3000 words in length together with a list of cited references.