Labor Market Intermediaries
This article covers meaning, importance, types & example of Labor Market Intermediaries from HRM perspective.
What is Labor Market Intermediaries?
Labor Market Intermediaries are entities, agents, firms that pose and facilitate the workers and organizations to fulfill their requirements. Labor market intermediaries help in decreasing the turnaround time for both the parties to find work and manpower. Labor market intermediaries are very important for the industry and is a very important way for many people to earn money and is an occupation for many people, the industry employs many people.
The organization requires manpower for the manufacturing of the products and the workers require work so that they can earn wages and sustain themselves as well as their families.
Importance of Labor Market Intermediaries
Many agencies have come up to as labor market intermediaries to solve the problem of lack of manpower that manufacturers face in plants and this business has also expanded towards the white collar jobs with agencies catering towards providing organizations with candidates for filling positions for white collar employee positions. Labor market intermediaries have improved the manufacturing productivity and because of that manufactures are able to produce more by hiring their services. Labor market intermediaries help in decreasing the unfulfilled jobs and the unemployed workers that are present. Social media has helped as being a labor market intermediaries and helps the employers to meet prospective candidates for a vacancy.
Types of Labor Market Intermediaries
Different types of labor market intermediaries are:
1. Employment Placement Agencies
a. Public Employment Services
b. Private Employment Services
2. Temporary Work Agencies
a. Private Employment Services
Advantages of Labor Market Intermediaries
Some advantages are:
1. Turnaround time for employers decrease for filling a position
2. Productivity of the organization increases if the position to be filled is important
3. Labor market intermediaries are beneficial for both the parties involved
4. Organizations save money in terms of potential earnings.
Example of Labor Market Intermediaries
A manufacturing company required 50 graduate Engineer Trainees to work in various plants, offices. They required these positions to be filled quickly as they had a high rate of attrition and the manpower shortage was affecting their productivity, they were unable to hire so many trainees quickly so they took the help of an agency that was an labor market intermediaries, the agency used many methods like job boards, social media offline methods, databases etc. to source for possible candidates for the vacancies. They even organized job fairs and recruitment camps for the same. The agency was able to fill all the vacancies in one month. The organization estimated that they would have taken 4 months to fill the vacancies and therefore they were able to save a lot in terms of potential earnings.
Hence, this concludes the definition of Labor Market Intermediaries along with its overview.
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