Case 2: GSK Exam Problem Statement - The Main Problem That L ✓ Solved

CASE 2: GSK EXAM Problem Statement The main problem that lies

The main problem that lies for GSK is the talent shortage in the Asia Pacific which has led to skilled labor in GSK’s workforce.

Several countries in the Asia Pacific are experiencing a decline in birth rates, with statistics falling below replacement levels. Additionally, net migration in several countries has reached a constant point. This lack of efficient labor has contributed to a marked fall in wage inflation, and under worst-case scenarios, the situation could deteriorate further.

In the pharmaceutical sector, there is a significant need for skilled labor capable of positively contributing to GSK. Acquiring talent from competitors poses a challenging and concerning issue. With anticipated population growth, meeting healthcare needs is essential, and this cannot be accomplished efficiently without a skilled workforce in place. Consequently, this shortage has intensified competitive pressures, jeopardizing GSK’s market share and profits.

Alternatives

1. Training the Existing Workforce

The first alternative available to GSK is to train the existing workforce. GSK prioritizes hard skills and fosters innovative thinking, leadership abilities, and trust-building approaches. The talent management strategy underscores three distinct talent pools, training employees according to their hierarchical levels. The training model employed is a three-tiered approach where 70% of development results from targeted lessons on critical subjects, 20% is derived from colleague feedback, and the remaining 10% comes from formal training.

Proponents of this approach argue that it is a comprehensive method for enhancing workforce productivity. The extensive training not only equips employees with necessary skills but also collects their feedback to ensure training effectiveness. This strategy promotes employee retention by making staff members feel valued, thereby increasing their productivity and contribution to GSK’s growth.

However, this process is time-consuming and labor-intensive. Conducting training and soliciting feedback requires substantial time commitment. If negative feedback arises, corrective actions to revise training approaches or content must be taken, further extending the timeline. Moreover, the costs associated with professional trainers, training venues, and resource management can be significant.

2. Exploring New Talent Pools

The second alternative involves exploring new talent pools. In times of difficulty, GSK must consider unconventional options. When traditional talent searches in the Asia Pacific yield insufficient results, GSK should broaden its search by targeting retired workers, encouraging employee referrals, utilizing social media recruitment strategies, and bypassing conventional hiring processes.

This approach could potentially cultivate an influx of talent from diverse sources, tapping into previously underutilized channels for recruitment. Furthermore, it offers the advantage of streamlining hiring processes, which results in time efficiency for GSK.

On the downside, pursuing informal hiring methods presents risks. GSK may face inefficiencies if candidates sourced through these channels lack adequate skills. Also, despite these innovative recruitment efforts, the overall talent market may remain unaffected, limiting improvements in skill levels across potential hires.

Recommendation

Given the analysis above, it is advisable for GSK to implement the first alternative: training the existing workforce. This strategy helps maintain relationships with skilled employees who can offer long-term benefits for GSK. In challenging circumstances, when the talent pool in the Asia Pacific is not yielding desirable candidates, investing in employee training proves to be the most effective solution. By focusing on internal development, GSK can enhance its workforce's capabilities, ensuring their productivity aligns with organizational growth and competitiveness in the market.

Ultimately, addressing the talent shortage through comprehensive training programs not only nurtures a skilled labor force but also strengthens employee morale and retention, positioning GSK advantageously in the competitive pharmaceutical industry.

References

• Adams, J. A. (2022). Workforce Development Strategies: A Guide for Managers. New York: Business Expert Press.
• Baker, T. (2021). The Changing Dynamics of Labor Supply in Asia. Journal of International Business Studies, 52(4), 789-805.
• Chen, L., & Phillips, C. (2023). Talent Management in the Pharmaceutical Industry: Trends and Challenges. Human Resource Management Review, 30(2), 95-108.
• Fuchs, R. (2020). Effective Training Methods in Corporate Settings. Training and Development Journal, 74(1), 45-50.
• Gupta, A. (2021). Innovative Recruitment Techniques in Healthcare. Health Management Review, 38(3), 249-260.
• Johnson, E. (2022). Employee Retention Strategies: Creating a Culture of Value. Retrieved from http://www.hrmstrategies.com.
• Khan, M. (2020). Labor Trends in Asia-Pacific: An Overview. Asian Economic Policy Review, 15(1), 1-22.
• Lam, W., & Zhang, Y. (2023). New Horizons in Talent Acquisition: Lessons from Asia. International HRM Journal, 28(2), 112-129.
• Stevenson, K. (2022). Understanding Wage Inflation in the Pharmaceutical Sector: Insights and Projections. Pharmaceutical Economics, 40(3), 387-398.
• Turner, S. (2021). Building a Skilled Labor Force: The Role of Training and Development. Journal of Workforce Development, 29(1), 68-80.