1. Introduction
This chapter provides an assessment of the contemporary labour market context of Human Resource Management and the impact of current trends in labor market on the practices associated with Human Resource Management in relation to attraction, motivation and retention of talents.

1.2 Review of Prior Work
A labour market can be understood as the mechanism through which human labour is bought and sold as a commodity and the means by which labour demand (the number and type of available jobs) is matched with labour supply (the number and type of available workers). As such, the labour market constitutes the systematic relationship that exists between workers and work organisations. In order to achieve its strategic objectives, a fundamental concern for an organisation is to ensure that it has the right people with the right skills, knowledge and attributes in the appropriate positions.

Labour market is divided into two the internal labour market and external labour market.
The internal labor market refers to that which exists within a single organisation and represents its internal supply or stock of labour. In its broadest sense, the internal labour market is the mechanism by which existing employees are attributed particular roles within a firm. The specific characteristics of an organization’s internal labour market are reflective of a number of HR policy emphases, for example, the level of investment in employee training and development, the availability of career development opportunities and the extent to which employee retention and job security are prioritized. Contextual factors, particularly the types of skills, knowledge and attributes required, also act to shape the ‘type’ of internal labour market that exists within a firm. Depending on its characteristics, an internal labour market can fulfill a number of functions for an organisation. For example, in seeking to retain employees the internal labour market can act as a source of motivation and contribute to a positive psychological contract, through the provision of training and development, career opportunities and good terms and conditions of employment. The operation of the internal labour market can also be understood as a device for managerial control through a process of stratification, division and the detailed allocation of roles and responsibilities. Whilst all organisations have internal labour markets of some description, the ‘classical model’ of internal labour markets Grimshaw et al., (2008) is typically associated with a very structured approach to managing the workforce. This includes limiting access to the labour market from outside the firm (often restricted to specific entry points, generally at lower levels) and recruiting to more senior jobs by internal promotion or transfer, often accompanied by in-house training. Such internal structures are notable characteristics of larger organisations which benefit from employee retention and promote the long service of employees both by providing internal opportunities for career advancement and through reducing their ability to move to another firm (for example, through limiting the development of transferable skills in favour of those related to firm-specific technologies and processes).When understood in this specific sense, then it is apparent that many firms do not operate a ‘strong’ internal labour market, especially in the extent to which they offer employees the opportunity to develop careers. In such organisations, there are limited prospects for career progression, labour turnover is considered unproblematic or unavoidable, little emphasis is placed on learning.

1.3 Literature review of the Study
The Kenya higher education (HE) system has undergone a major transformation over the past two to three decades from a system that catered for a limited number of entrants in the late 1960s and early 1970s (approximately 6 per cent of school leavers) to one that now aims to provide tertiary education to half the population of 18-year-olds. The shift from an elite to a mass higher education system has been viewed by successive governments as the principal mechanism by which to create an adequate supply of highly qualified workers to fill the expanding number of ‘high-skill’ jobs in the economy (Keep and Mayhew, 2004), encouraged by employers who claim that more graduates are needed for Kenya organisations to remain competitive. However, employers have responded to the increased supply of graduate labour in a number of ways, not all of them in line with their calls for a more highly qualified labour supply. Some have created new or modified existing roles to take advantage of the supply of graduates and a number of studies have highlighted the incidence of existing jobs/occupations being ‘upgraded (Harris, 1993).

According to Cox and Parkinson, (2003), if your company can do the following, you will noticeably improve in your company culture and keep your Gen Y talent happy: Be transparent. Gen Y values honesty. Tell them clearly what you need them to complete before they can do something interesting or lead a project. They're motivated by working toward the bigger goal, seeing the opportunity to take a bigger path, and developing the next steps. There's no motivation for them otherwise. Gen Y values openness in communication and they are resilient. Explain the bigger purpose. Contextualize your organization's social and environmental values. Gen Y wants (and needs) to change the world's path towards sustainability and social good. Provide opportunity for professional development. Gen Y employees want to grow onward, and they eventually want to steer the ship. They want to see the next steps, understand the reference points, and talk about how to get there and get it done. They want to master being effective professionals and they enjoy the development process. Arm them with responsibility and watch them thrive under the guise of your "big picture." It may not be perfect, but they will undoubtedly provide fresh perspective and may even spark a new idea.

Burke and Ng (2006) understand that Gen Y views career as life. Work-life integration is the new work-life balance. Gen Y is a hyper-communicative, constantly "on" generation that always expects a response and can easily transition from personal to professional at the speed of a tweet. To them, their career is life and life is their career--it's one and the same, and this can be a great thing for your company. Give them opportunities to shine in the community. Support your employees' work and relationships with outside organizations that they are passionate about. Appreciate the fact that they want to add value to organizations other than your company, and view it positively. After all, their involvement in outside organizations may even open doors for your company. Allow them to be dynamic individuals--it builds their resume and will make your company more cultured. With unemployment at a 25-year high, one might think that attracting, engaging, and retaining talent could justifiably be last on the list of an organization’s priorities. But that’s not the case, for several reasons. Especially now that nearly every business is operating lean, rapid innovation is more important than ever to differentiate and stay competitive. New skills needed for knowledge jobs place a premium on having the right workers. And the global economy has created higher demand for advanced skills, turning up the heat even more on the pressure cooker. All of this means that, especially now, finding and keeping the right talent is critical for assuring an organization’s survival and its ability to thrive when the economy begins to recover again. But even with the brightest and the best on staff, successful talent management strategy can’t stop there. More than ever, attracting and retaining talent is about securing engagement and mindshare, and simply having people on the payroll doesn’t guarantee that goal. Engaging and motivating workers are especially tough tasks today. Following widespread downsizing and restructuring, 75% of layoff survivors acknowledge that their productivity has declined, and on any given day as much as 76% of the workforce is looking for other employment opportunities. The workplace has a significant impact on these talent challenges. “Top-performing companies those with higher profits, better employee engagement and stronger market and brand position have significantly higher-performing work environments than average companies,” according to research by global architecture and design firm Gensler.

Every organization has knowledge workers people charged with creating and evaluating knowledge, thinking creatively, analyzing and solving business problems, and helping the company innovate and grow. These workers, dubbed the “creative class” by author Richard Florida, total some 40 million workers, more than a third of the national workforce. They account for nearly half of all wage and salary income, almost as much as the manufacturing and service sectors combined, and their numbers are growing. As the ranks of the creative class grow, so do the number and diversity of the places where they work. Teams are distributed across time zones and routinely work together via phone, email, videoconference, shared files, and other technology. Team work dominates knowledge work today because collaboration is the basis for getting to new ideas faster, innovating, and staying ahead of the competition (Paton 2007).

According to Paton (2007) the workplace, as a result, is changing or needs to for an organization to attract and retain talent. Individual workspaces are shrinking and the freed-up space is being used for more shared spaces that people can adapt to the work at hand, whether it’s individual task work or collaborating with others both in person or via technology. The best workplaces easily adapt to these new ways of working. When workers can adapt their environment to their work, it saves money and time in reconfiguration and allows the organization to use space more efficiently. When the workplace better supports workers, business results improve, and so do worker attraction, engagement, satisfaction, and retention. Planning and managing this new workplace begins with understanding the types of knowledge work and the different kinds of knowledge that result from them. Four types of knowledge work Creative class workers whether designers or architects, scientists, or consultants use four modes of knowledge work in their day-to-day business. These four modes, as described in the seminal book, The Knowledge-Creating Company, by Ikujiro Nonaka and Hirotaka Takeuchi, are essential to the process of building knowledge that in turn drives creativity and innovation

Lindsey, (2003) focusing Concentrating and attending to a specific task; thinking, close study, contemplation, reflection, analysis, and other “head down” work best performed without interruption. Collaborating Working with one or more people to achieve a goal, such as collectively creating content; listening, discussing, presenting information and ideas, brainstorming, etc. Ideally, all perspectives are equally respected, brought together to leverage the group’s shared mind. Learning Building knowledge through education or experience. Whether in a classroom or a conversation with peers, learning happens best by doing, building on what’s already known. When people make their thinking visible to each another, learning is accelerated and becomes an integrated part of an organization’s culture. Socializing Talking, interacting, networking, mentoring, celebrating, sharing along interpersonal connections or “pathways”. Office Attraction. The workplace has long been employed as a tool to attract, engage, and retain talent, but how it does that continues to change.

Generation X and Generation Y workers, sharing tacit knowledge requires developing personal connections and trust, a kind of connective tissue between colleagues. Once established, it lays the foundation for genuine collaboration, and that increases the speed and quality of ideas in an organization. Planning and designing a better workplace for knowledge workers requires new solutions for the four types of work and the explicit and tacit knowledge that results from them. It also requires another key ingredient: better understanding and support for the multi-generational workforce. This goes beyond simply accommodating the younger generation in the workforce, which has been the focus of many recent business articles and books, but fundamentally involves understanding how quickly this new generation’s attitudes and behaviors are being adopted by other generations, and how this impacts the workplace. A confluence of generations. Each generation has singular qualities. And each generation’s work styles and attitudes are changing. Collectively, the older generations are rapidly adopting many of the youngest generation’s behaviors. Indeed, it can be argued, any worker’s agility and ability to adapt to new ways of working is an indicator of their ongoing value in today’s changing (Thompson, 2004).

According to Bell, (2006) Workplace a quick review of each generation sets the stage for understanding what’s happening: The Baby Boomers have been thoroughly researched and reported, but a few recent behaviors are key. One is that this largest generation in the workplace (76 million strong) isn’t going to retire quickly. Thanks to the plunge in retirement accounts as well as improved health in general and a need for experienced people in business, Boomersare delaying retirement and working longer. This allows more time for them to mentor younger workers, effectively downloading their tacit knowledge, the accumulated wisdom of their working years. Boston Consulting Group suggests Boomers can be of particular assistance in the current economic crisis because their generation remembers how they handled the last economic downturn. Mentoring, clearly, is part of the socializing work mode. Boomers easily acquire work styles and attitudes of their younger counterparts. Consider how many now use iPods and Facebook, technologies first adopted by younger generations. Whether its children or co-workers who bring them along, Boomers have proven themselves capable and eager to be at the cusp of what’s now and what’s next. Generation X workers, who will take over leadership positions from the Boomers, missed the working years before “rightsizing” became part of everyday life. To this generation of 50 million people, layoffs, mergers, and reorganizations are an expected part of business. Over time, that’s taken a toll on their loyalty and patience. They dislike corporate politics and bureaucracy, yet they take on responsibility gladly, especially if it comes with flexibility to manage work/life balance.

According to one source, Gen X managers “will need to be adept at a few things that earlier generations, with their more hierarchical management styles and relative geographical insularity, never really had to learn. One of those is collaborative decision-making that might involve team members scattered around the world... whom the nominal leader of a given project may never have met in person.” The youngest workers, Generation Y (aka Millennials), are the fastest-growing segment of the workforce; 32 million are already working. Their short business track record invites speculation. From one perspective, they “seem to be presenting a particular challenge to employers everywhere… a ‘diva’ generation: high maintenance, out for themselves, lacking in loyalty, thinking only of the short term and their own place in it.”This generation’s best and brightest… possess significant strengths in teamwork, technology skills, social networking and multitasking. Millennials were bred for achievement, and most will work hard if the task is engaging and promises a tangible payoff.”New research, new findings. To achieve a deeper understanding of Generation Y and their influence on the workplace, the Steelcase Work Space Futures team recently conducted a nine month study. Participants included 162 workers in nine U.S. companies ranging from regional firms with a few hundred employees to global corporations with over 100,000 employees within four major industries: IT & engineering, manufacturing, finance, and consulting. Researchers from Penn State University and Georgia Institute of Technology also collaborated in stages of this effort. The project employed a user-centered design process, beginning with foundations in a broad cut of secondary research. The team conducted observations using a variety of techniques and activities. Researchers synthesized the findings through the lens of the physical environment to develop space-planning solutions. The Steelcase research indicates that Gen Y’s work style is influencing work and the workplace faster than previous generations, and several behaviors stand out in their portrait: High-intensity work Gen Y easily uses two monitors and keyboards, frequently checks with peers for feedback and collaboration, shifts easily between focused work and other modes, and multi-tasks to unprecedented levels. This intense lifestyle is something they grew up with and now bring to the office (Bell, 2006).

This connects to the growing importance of emotional labor as a result of the shift to greater service sector employment. The notion of emotional intelligence (EI) has also gained greater currency in recent years. EI is defined as the individuals’ ability to develop and express a range of skills such as awareness of the emotions of others, self-awareness, empathy and. In managerial roles, the increased importance placed on i interpersonal skills can be associated with the perceptible shift in emphasis from bureaucratic to charismatic leadership, where authority is based on force of personality rather than status and ‘office’ (Brown and Scase, 1994). The organizational emphasis on interpersonal skills and promotion of emotional labour is exemplified in the announcement in June 2008 that nurses in the Kenya are to be rated on how compassionate they are towards patients as part of a government plan to improve quality in the National Health Service (NHS). A ‘compassion index’ is set be compiled using surveys of patients’ opinions, including feedback about the attitude of staff, to assess the performance of every nursing team across England. The restructuring of internal labour markets associated with wider changes in the demand for and supply of labour resulting from changing economic structures and technological developments, the way that labour is utilized within firms is also changing, with considerable implications for how work is experienced. A central theme of this chapter is the reflexive relationship between external and internal labour markets. As such, key changes in the organisation of work are at least partly a result of the changing composition of the labour supply and the wider economic, political, legislative, technological and social processes outlined above.

The flexibility of organizational structure, One implication of the changing organizational context is that as markets become more unpredictable and dynamic then firms must respond likewise and increase the flexibility both of organizational form and their workforce. It has become received wisdom that rigid bureaucratic forms of organisation, characterized by vertical hierarchies of authority, centralization of control and task specialization, are not adaptable or responsive enough to cope with the demands of twenty-first-century capitalism. Consequently, such structures are being replaced with ‘post-bureaucratic forms that are leaner, flatter and consequently more responsive, flexible and focused’(Morris, 2004 ). New, more appropriate organizational forms are described as ‘networked’ ‘boundary less. organic, entrepreneurial tight-loose. ’Organisations are also argued to be using autonomous work groups or flexible project teams, associated with the unstructured’ approaches to management associated with the effective deployment of knowledge workers, to replace tight managerial control and strict demarcation between work tasks. The abandonment of traditional organizational form and pursuit of flexibility has been enacted through downsizing, rightsizing, delayering , restructuring and business process re-engineering, involving the centralization of core competencies and the outsourcing of non-core activities to specialist firms.

Inevitably, changes in organizational structure have profound implications for workers in terms of job content, employee motivation, job security and organizational commitment, especially given the evidence that employers have often used the ‘flexibility’ rationale for reorganization to justify redundancies (Child and McGrath, 2001). He noted that, theoretically at least, in flatter, non-hierarchical, networked organisations, workers have greater autonomy, often work together in teams and are able to adapt more quickly to change. However, one apparent contradiction in this process of restructuring is that delayering (for example, the removal of a hierarchical level of management) tends to undermine the linkage between training and career advancement key elements in the establishment of a strong internal labour market and in developing employee commitment. In particular, lower-level workers in’ flatter’ organisations have experienced a widening of the gap up to the next broad band of mid-management positions and a withdrawal of the training and development opportunities necessary to bridge this gap. Subsequently, the hourglass feature of a skills-polarised external labour market can also be found within internal labour markets, reflecting the same set of ‘winner takes all’ characteristics where those with access to the ‘top’ of organisations benefit from preferential terms and conditions of employment compared to those below with no clear path to such positions. As a result of this ongoing rationalisation of organizational structures and associated job insecurity, it is argued that workers in the knowledge economy must develop new ‘career’ strategies. Organisations and the transformation of the internal labour market, Work, Employment and Society,

Motivation is an important factor which encourages persons to give their best performance and help in reaching enterprise goals. According to Berelson and Steener (2001) a motive is an inner state that energizes, activates or moves and direct or channels behavior towards goals A strong position motivation will enable the increased output of employees but a negative motivation with reduce their performance. Features of Motivation, Motivation is a Psychological phenomenon, Motivation is dynamic and situational, Motivation is not easily observed phenomenon, Motivation is a good oriented process, Motivation is influenced by social and cultural norms. Generation Y can cope up with the labor market if these techniques are put in place, Good human relations, through the effectiveness of good human relations these will result into a positive buyer seller impact into the economy leading to expansively of the market. Low absenteeism and Turn over, if the organizations and the generation Y applies much of the concept they will be able to reduce much of the laziness and turnover of employees. These will increase the productivity and margin profits in the market hence promoting motivation. Good Co-operate image with the applications of good co-operate image generation Y will be motivated since the organization will provide effective and efficient work relatedness and proper timing. Good image also will help generation Y to work well and hard in achieving their goals. Higher efficiency with good application of higher efficiency in work will help and motivate generation Y to work against the set goals and targets by the company. This happens in companies like Kenya Bureau of Standards in being to efficient and adding value in their products and services.

Herzberg theory is called two factor theories. Maintenance factors: They involve the context of the job i.e. they are external to the job and relate to the job environment. These factors include. Company policy and administration- basing on the company and administration policies put forward by the organisation the retainment of talent i.e. generation Y is felt in the labour market when the company has administered qualified expatriates in the field resulting to the total maximization of resources as a result equitable profit. Technical supervision-when individuals are supervised this will make them be cautious in their activities and as a result keenness is felt in terms of their productivity. Interpersonal relations with supervisors-good relationships are felt through proper and effective communication by the members thus resulting to favorable relationship with their supervisors hence the generation Y will feel that they are of great value in terms of their contribution (Albert and Bradley, 1997).
According to Spritzer, (1996) Interpersonal relations with colleagues- this results into a chain of success to the generation; this is seen because the generations Y are individuals whom they understand themselves vocally and thus it will favour their retainment. Salary- proper payment schemes that will be put in place safeguarding the members among the generation Y will lead to improvement in their efficiency in operations and thus lead to improved productivity. Job Security-this as a motivational factor has a resulting impact of the members in the labour field; because through job security, the generation will feel that they are the inputs of the firms progress, an example being when an individual falls ill, his/her job is still secured and at the time he/she recuperates he/she will carry on with the task. Working conditions-proper working conditions put in place by the organisation will aid in retaining the generation Y reason being the employee or individual will have been provided for factors like clean working environment and proper tool allocation for the task to be designed and carried out. Motivational factors: These are external Motivational factors. Include, Through achievement organization can retain generation Y reason behind being organizations SMART objectives achieved. On the other hand advancement helps Generation Y in exploration of new ideas at work place hence promoting type A personality who are hardworking, focused, and meet organization goals in much more vibrant way. The work itself will help generation Y which results to retaining in specific areas of specializations of job. The possibility of personnel growth in terms of training and developments that are work related and other outside work that can help generation Y in understanding the globalizations of work. Responsibility this will provide generation Y which proper way of handling resources organizations equipment’s and storage through assigning an individual who will be responsible in certain areas of work. Recognition to the job and one job centered which will allow division of labor leading to greater output being achieved.
1.4 Conclusion

In respect of employee commitment, flexible working practices present something of a dilemma for employers. Whilst much research identifies employee loyalty as a key source of individual motivation and enhanced performance, employers can be reluctant to demonstrate sufficient degrees of loyalty to those who work for them, even amongst their ‘core’ employees and those who fulfill important functions in the organisation (for example, ‘frontline’ staff in the hospitality industry). Moreover, the perpetual insecurity associated with much employment flexibility has significant implications for stress and the alienation of workers, potentially leading to the loss of valuable employees. He found evidence to suggest that non-standard employment (part-time, temporary and fixed-term) disproportionately increased workers’ exposure to ‘bad job’ characteristics (low pay, no sick pay provision, no employer pension scheme and no access to a recognized promotion ladder). Kalleberg et al. (2000) for similar pattern in the US, reporting that one in seven non-standard jobs were ‘bad’ on the dimensions of low pay and no access to health insurance or pension benefits. Whilst many of the problems of flexibility tend to be associated with numerical and temporal forms, the impact of functional or skills flexibility on workers is also a contentious issue. Have multi-skilling as a central component with the dual objectives of both improving organizational performance and enriching jobs. However, a number of studies (for example, he found that in practice, multi-skilling often means multi-tasking and, therefore, rather than providing employees with job enrichment, functional flexibility is often a form of work intensification contributing to work overload and stress.

Of course, some flexible working arrangements benefit particular groups of workers. For example, where flexible arrangements are structured and predictable such as fixed part-time hours – employees can arrange patterns of work that are compatible with other responsibilities, such as childcare and study. However, suggest that some groups are more likely to benefit than others from flexible working arrangements. Managerial, professional and clerical workers, particularly those with scarce expertise or skills, mainly experience a net benefit. For manual and lower skilled workers, however, flexibility often means insecurity and unpredictability, particularly where working patterns fluctuate according to consumer or employer demand, and can present a barrier to career progression (Tomlinson, 2004). In particular, the negative impact of flexible working is most pronounced where it reinforces patterns of social exclusion, for example, amongst migrant workers, women and minority ethnic groups, by under-mining opportunities for stable, long-term employment and career progression. Ethics and employment flexibility, there is clearly an ethical contention at the heart t of the debate over flexible working practices. At the center of the concerns about flexible working is the perception that by accepting the perpetual insecurity associated with much flexible working as ‘the way things are’, work organizations are relieved of their moral responsibility to their workforce.

Extreme focus Comfortable working with and among others, Gen Y workers can focus their attention and activity with laser-like precision on a specific task. It’s not uncommon to see them working intently on a laptop or smart phone screen amid a chaotic work environment. They can settle quickly in a lounge chair or a corner of a project room, deploy ear buds, iPod, and a Zen-like focus to shut out distractions and get a job done. Megamulti-tasking Their lives have been packed schedules of school, sports, clubs, and other activities, with a frenetic pace unknown to earlier generations. Technology, mass media, and the Internet have forced this generation to manage an on-going torrent of information and communication. As a result, speed, change, and uncertainty are normal for Gen Y, and multitasking has become a necessity to cope with relentless information and activity. These workers become restless and bored quickly, and are constantly looking for the next challenge. Peer-to-peer networking Social networking (Twitter, Facebook, etc.) is like breathing for Gen Y. While Boomers have picked up on it and many now feel comfortable sending digital photos to a colleague for feedback, Gen Y has been checking in regularly with peers since high school. They keep a chat line open almost continuously. The Y factor: eight major shifts (Tomlinson, 2004).
Lindsey, (2003) these executives have insight that a workplace that helps attract, engage, and retain knowledge workers is not an option for companies that want to lead and survive. By changing the “attract & retain” model to “attract and grow,” organizations acknowledge how knowledge work has changed, how worker attitudes and behaviors are changing, and how the creative class of any generation can be supported to do what they do best: learn, create, and innovate. A high performance workplace that attracts and grows these workers does require an investment in understanding the shifts unfolding in the workforce and what today’s workers value most, and then reinventing the workplace to fully accommodate them.

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