The King’s Company

The King`s Company
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The King`s Company
Assessment of the labor market is one of the crucial analyses the King Company needs to conduct in setting up a new facility to ensure the current problem of the labor cost does not recur. Additionally, the company needs to ensure that it sets up the facility in the most diverse location so that they will not have a challenge of diversity which has become a significant aspect in the business and one of the qualifying criteria in winning the market share among the consumers. Besides, it is also significant to ensure that the facility is set up in a location which has a large population to ease the hustle of getting the workforce necessary for the success of the company. The assumptions are that the location of a large population, ethnically diverse, as well as the in-commute and out-commute population, will provide the necessary labor requirements for the company. Furthermore, other demographic considerations include the unemployment rate as well as the unemployment rates which are crucial components of diversity in addition to skills.
Consequently, setting up a facility in Detroit will be a good strategy as the city will provide the company with the population necessary for the labor requirements. For instance, of all the areas surrounding Detroit where the company could set its facility, the area has the largest population of more than 600,000 people, of which more than 200,000 form the labor force of the city (Murembya & Guthrie, 2015).

Besides, the city also has the largest number of population which is an unemployed population of almost 15% which means getting labor for the facility will be much easier than the rest of the cities. The nearest cities include Pontiac both with a population of fewer than 100,000 people and a labor force of less than 40,000 (Guthrie & Murembya, 2017). Besides, the two cities also have a lower unemployment rate which means it will be harder than Detroit to find the necessary workforce for the company.
In terms of skills, the company is assured of getting among the skilled labor for its production as the City is home to some of the biggest companies who are the same industry of manufacturing computer products such as IBM and Compuware (Murembya & Guthrie, 2015). For these companies to survive is such a place, it means that there is the availability of skilled labor as they are known to be among the best manufacturers of the consumer market and King Company could also benefit from the skilled labor. However, the company has to position itself as an employer of choice to attract the best skills in the labor. Besides, the City enjoys a large number of both in-commuting as well as out-commuting workers which means it can get non-residents who are skilled to fill in the gap that might be existing among the resident of Detroit. The in-commuters can also be crucial in ensuring there is diversity in terms of geographical representations as well as ethnicity among other forms of diversity as the company can outsource to fill in the gap.
The main issue in diversity might arise in the case of ethnicity. Just like most of the areas surrounding Detroit, the majority of the population are African Americans who account for more than 80% then followed by the Caucasians with less than 15% while the rest of the population account for less than 10% (Murembya & Guthrie, 2015). For a state like Michigan whose largest population is the Caucasians who account for more than 80%, relying on the labor solely from the resident might not be a representation of the United States population. However, this difference can be bridged through relying on the in-commuters for the company to show a true picture of diversity. The HRM should, however, be careful not to bring in too many outsiders who might raise the alarm among the residents. Moreover, one of the ideas of diversity is that it should represent a true picture of the people it represents. Therefore, in as much as there would be in-commuters, the locals should also be given larger share as long as they have the skills required for the job.
The other area that might be a challenge is in terms of education where according to statistics, the City lags behind in education with only 7.6% of with a bachelor’s degree compared to the whole of Michigan which has an approximated 16.4% (Guthrie & Murembya, 2017). However, the same issue is facing the surrounding cities of Pontiac and Flint which are below the Michigan data (Murembya & Guthrie, 2015). Similarly, this gap can be addressed through the in-commuting labor force where the data from the State of Michigan indicates that the percentage of in-commuters in the City is higher than the percentage of Michigan. Contrarily, the advantage of in-commuters is that their salary is lower than that of the residents.
In conclusion, in choosing the area to set up the new facility, King Company has to consider a number of factors that are related to labor force which include diversity as well as the availability of skilled labor and cost of the human capital. In the areas surrounding Detroit, the city is the most suited for the facilities as it provides a larger population which can provide the company with the workforce. In spite of the deficiency in terms of the population with a bachelor’s degree and above, the gap can be filled by the in-commuters. Finally, the in-commuters are known to provide cheaper labor than the residents.
References
Guthrie, E., & Murembya, L. (2017). Demographic and Labor Market Profile: City of Pontiac. Pontiac: State of Michigan.
Murembya, L., & Guthrie, E. (2015). Demographic and Labor Market Profile: Detroit City. Detroit: State of Michigan.