Table 1 presents an overview of macroenvironmental factors that affect the company now that were obtained through PESTLE analysis. The most important factor in the external environment that Michael Page needs to take into account at the time of the case is diversity. Over the past decades, various human rights movements achieved greater equality for people both in their personal lives and in employment. In many countries, there are strict laws and policies that necessitate good practice in terms of diversity. Research also suggests that workplace diversity is essential to meeting consumer needs and performing better, and thus employers aim to hire more people from diverse backgrounds.
This is a crucial factor for Michael Page since the firm specialises in recruitment, and this process is the key contributor to diversity in organisations. To support clients in enhancing workplace diversity, regardless of the goals of this process, recruiting firms like Michael page have to have access to diverse pools of candidates and develop their own internal diversity practices. Furthermore, they need to support their clients in developing the right climate for diversity since the fit between diversity recruiting and the general HR strategy of a firm influences the outcomes of recruitment.
|Commercial restrictions Political instability (Brexit) Taxation||GDP changes due to COVID Inflation Unemployment||Diversity Consumer centricity Importance of ethical decision-making||Information technology developments Increased prevalence of virtual teams||Equal opportunity regulations Employment laws International recruitment||Business standards for sustainability|
In the future, the issue of diversity is likely to persist, but other important trends will also affect the environment in which the company operates. Most importantly, improved international mobility of workers has already created a large global workforce, which is expected to grow further in the next decade. Having more workers who can travel to work internationally means that companies will no longer be restricted to their home locations in terms of recruitment; instead, they might want to search for the best specialists globally. This trend will likely require Michael Page to enhance its talent pool and take into account various international recruitment issues, including risk management and compliance. This, in turn, could affect the company’s need for staff training and development, as well as its overall strategy. For example, it could necessitate opening new branches in remote locations to access talents there. Hence, the company needs to take both diversity and global recruitment into consideration while planning its current and future strategy.