Job Market in UK
The financial and economic crisis faced in the global market, specifically the banking and financial sector have provided different challenges and changes on how they do their business. it can be said that with the challenges brought by these crisis, the management of banking and financial sector are trying to transform their business approaches and one of these is the changes in the job market. Aside from the United States, United Kingdom’s banking sectors are facing different struggles and this has been able to make the management of UK sectors to consider transformation in their job market. Primarily, the main goal of this paper is to analyse the job market in the UK banking sector in the last 6 months. In addition, this will also evaluate the usefulness of protean mindset in the sector in the year 2009.
Analysis of Job Market
Accordingly, one of the most affected industries in the financial crisis are the banking and financial sectors and this also leads to changes in the job market in these sectors. it has been noted by different economists that the medium term issue attributed to the banking sector is considered to be a strategic one. there are different factors that may lead to slowdown in asset growth, specifically the one the is happening in the subprime market. One of the perceived ways for taking control of the financial issue is the consideration of the cost-cutting, in operations and also in human resources. In addition, the high concentration of the market as well as the impact of the competition has provided limitations on the scope for further issues (Hale, 2004).
Banking sectors, specifically in terms of employment nevertheless contribute to be under the pressure because of the issues and problems faced. Although some banks have responded to this issue through international expansion and diversification, other banks seems to see that the only solution to cut-cost is through retrenchment.
In the survey conducted by the Confederation of British Industry (CBI), they have found out the in the first months of 2009, there are job losses in the banking sector as business operations as well as revenue fall at record rates (Svensson, 2009). the crisis keeps on unfolding to the broader business and economy with different industries. As a result of the survey, the profits and productivity in the business market have dropped to new lows as net interest income and fee also dropped at record rates.
The study conducted has indicated that job losses in the UK banking sector would go up from 10,000 to almost 16,000 workers in the first quarter of 2009. Banking and financial sectors are trying to lower down their costs and expenses and cutting back in their investments. According to some economists, this will take longer than 6 more months before the banking and financial market will normalize. In UK various banks have considered massive retrenchment affecting the situation of the job market.
There are some trivial solutions which the banking sector is considering to solve the issue of job losses. It has been noted that even if the banking sectors are transforming profit margins on credits, those earnings are being drained by not recognizing business volumes and because of the rapid escalation of bad debts. Accordingly, the fast declining condition with awful trading report that illustrates increase in non-performing loans in corporate banking and mortgage has been emphasized by banking sectors. The global market are putting up with the collapse on the sales of the mortgage and increasing bad credits as well as intense pressure because of increasing retail deposits which only have low interest rates. Even if the global market, specifically, the banking sector in UK are hesitant in cutting off jobs, different banking sectors likely to follow job losses by other industries.
In order to solve the issue of the banking sector, there are different ways in which these sectors can use to help them. One of these is the consideration of the protean mindset or protean career attitude. Accordingly, protean mindset is noted as an essential determinant for career success in the modern job market condition (De Vos & Soens, 2008). The present highly volatile and unstable business environment has paved the way for the unfolding the context of career (Eby, Butts & Lockwood, 2003) Various studies have shown the importance of reconsidering various approaches of viewing careers Hall, (2002; Hall, 2004), so as to captivate the changing nature of the business environment (Sullivan, 1999), specifically with that of the banking sectors. With these condition, one of the most important paradigms that emerge in examining professional careers is the protean career which include Hall, 2004).It can be said that this approach are useful for various individuals because it enables them to have self-direction and value-driven belief and predispositions (Briscoe, Hall, & DeMuth, 2006).
Protean is derived from the Greek God Proteus who had the strange capability to transform his shape at will so as to prevent oncoming threats and dangers. In the context of the protean career, individuals in 2009, rather than their employers, become the molder of their own career, vocational and development destiny. it is helpful because it enables individuals to be internally driven and self-directs to manage their own career which shows values like adapabtabiltiy and freedom (Hall, 2002). According to Baruch (2004: 71), protean is the ability to have contract with oneself rather than with the employees as people tae accountability for changing their career direction in taking full responsibility for their career. This is helpful in 2009 because it enables different people to have freedom and growth, commitment, professional and the achievement of psychological success with the pursuit of meaningful work as well as the discovery of the skills and potentials (Hall & Chandler, 2005). Through having protean mindset, individuals will be able to manage their career well and become aware of their own skills and capabilities to do their jobs in their organization.
Based on the analysis, it can be said that banking sectors nowadays should be able consider ways in ensuring that they will not cost-cut through job losses. The management should protect their employees, in the midst of the financial crisis. On one hand, in order to protect themselves, individuals must consider protean career or mindset to have self-direction and growth.
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