Case study
PrimeReach Care is a government funded, acute health care service to around 500,000 people in its local region. Located across multiple, geographically dispersed sites, it employs over 15,000 people in a wide variety of professional and ancillary roles and maintains a variety of important partnerships with dozens of other organisations.
PrimeReach Care has faced very substantial challenges in recent years. Some, like the Covid pandemic were exceptional, but thankfully quite short-lived. Others, such as a fast-aging population and the emergence of some chronic skills shortages in key areas, are longer term in nature, but equally concerning in terms of their potential impact on PrimeReach Care’s capacity to provide the highest standards of healthcare. Skills shortages in some specialist areas are becoming increasingly severe. PrimeReach Care has plugged gaps by recruiting overseas but is finding it hard to retain these recruits for longer periods of time.
During 2024, employee voice activities highlighted that groups of staff were dissatisfied about pay and conditions within the organisation. This has now abated due to significant government-funded pay rises, but discontent among staff in respect of terms and conditions continues to simmer.
Staff retention is a particular current challenge, as is absence. A higher percentage of PrimeReach Care’s employees are currently taking extended periods of sick leave than has ever been the case before, and in over 50% of these cases poor mental health comprises at least one of the causes.
Senior managers at PrimeReach Care have recently attended a briefing given by ministers and officials, at which some very clear messages were communicated regarding the next five years.
The most important concerned funding. Put simply, health care services like PrimeReach Care should plan for very tight, ongoing financial settlements in the next five years. They should not expect above-inflation increases in their regular operating budgets, which include pay for staff.
Any additional funds that become available will be focused specifically on priorities such as bringing waiting lists and waiting times down. Capital budgets will also be very constrained, reducing the availability of funds for new buildings and equipment. Repair bills will have to be met out of current expenditure. Substantial efficiency improvements and increased productivity are both needed and expected.
Senior Managers have asked the People Department to provide recommendations about appropriate future actions at PrimeReach Care in some key areas. You work in a generalist, midlevel People management role on PrimeReach Care’s main site but are considered to be someone who is appropriate for promotion into a more senior role on completion of your studies. The
People Director has asked you to provide answers to the following questions that will provide insight into some of the major challenges facing PrimeReach Care and help to inform the recommendations.
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Question 3 (AC1.3)
A particular challenge is the ageing workforce and subsequent effects of this including the degree of turnover and loss of intrinsic expertise. Evaluate the long-term impact of population ageing for PrimeReach Care. (AC 1.3)
Answer
Increased life expectancy and better healthcare management have a significant impact on the ageing population. The World Health Organisation (WHO) estimates that by 2030, individuals aged at least 60 will be 1 in every 6. This means that the population of individuals aged above 60 will increase from 1 billion as of 2020 to 2.1 billion by 2050. For those aged above 80, the population will triple within the same time frame. Although this increase is characterised by various dynamics, including more medical conditions, the rise has implications to modern organisations. These impacts are diverse and balanced including promoting diversity, sustainable culture, conflicts in terms of change, and stagnation in reference to new skills and knowledge.
Population ageing for PrimeReach Care presents an opportunity to diversify care and increase market share but also presents a significant concern on skill gap. Present demographic dynamics are founded on healthcare issues, including fertility concerns and changing structure of the modern society. From the World Economic Outlook by IMF (2025, P. 1), an increase in longevity and declining fertility will bring a sharp dynamics in the workforce in the ling-term scope. On the one hand, this change implies an increase in potential market share where companies, such as PrimeReach Care will significantly benefit. Hajizadeh et al. (2025, p. 52) notes that the ageing population will lead to increased costs due to a rising elderly population but from the context of healthcare firms, such as PrimeReach Care, the increase in elderly means elevated demand for a variety of healthcare services. This benefit in the long-term considers the positive implications of ageing population for healthcare companies but from the workforce context, among the main concerns is the skill gap that emanates from this population. The explanation provided by Debelak, Grah, and Penger (2023, p. 169) is that as the ageing population near retire or employment is terminated due to other factors, such as disability and one’s demise, the individual will take with them the skills and knowledge that are difficult to replace. The main concern and question for a company, such as PrimeReach Care is how it ensures a seamless transition and avert the potential gap created when the ageing population leaves in the long-term.
The ageing population leads to organisational brand and image as a firm that promotes diversity and inclusivity but at a cost of declining productivity due to the reduced effectiveness and ability of the ageing population. In the literature review section of the research by Kotamaki and Lehtimaki (2025), various studies have concluded that the ageing population has a significant effect on productivity at the workplace. The findings include a reduction of annual total factor productivity (TFP) growth by an average of 0.2% points over the next two decades and the significant correlation between a 1% increase in the size of aged workforce (55 – 64 years) and 0.1% - 0.5% decline in productivity (Kotamaki and Lehtimaki, p. 1724). For PrimeReach Care, therefore, this reduction in productivity due to ageing population is a significant risk and concern in the long-term and it introduces other concerns, including degree of innovation at the workplace. The trade-off that exist is between reduced productivity of the ageing population and the image and brand of a company in promoting diversity and inclusivity. Drawing from key legislations, including Equality Act 2010 in the UK and Employment Rights Act 1996, discrimination and dismissal of an individual due to age as a protected characteristic leads to legal claims and significantly damages the company’s reputation. Truxillo et al. (2026, p. 1) describes the current modern workplace as more age-diverse. This implies a working environment that promotes inclusivity and diversity. Long-term implications for PrimeReach Care is to maintain the brand and working environment as an age-diverse workplace while managing productivity-related issues and concerns.
In the long-term, an ageing population presents the complexity of meeting the needs of the aged workforce amidst the benefits of leveraging their experiences and skills. As Katiraee et al. (2024, p. 1) posit, present and future industry paradigm shifts provide important insights into the benefits and costs of ageing population retention versus their retirement. In the long-term, an ageing population will be instrumental in addressing the gap in skills and competencies. This will be attributed to the present decisions and demographic issues, including fertility and shrinking family sizes (Government Office for Science, p. 4). Having an aged workforce will lead to a working environment that is in tandem with environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) criteria. These trends coupled with benefiting from their skills and experiences present with a complexity cost of meeting the diverse needs of the ageing workforce. Examples of these needs as outlined by Merkel et al. (2019) include promoting the workforce health and wellbeing, managing absenteeism due to healthcare issues, addressing early retirement requests and concerns, and promoting the ageing population health and wellbeing.
In summary, the impacts of population ageing for PrimeReach Care is far-reaching and requires a holistic approach, particularly in managing demographic dynamics, maintaining the positive context regarding a working system that promotes DEI, benefiting from the aged vast experience, and addressing potential skill gap. Although the ageing workforce will present a significant concern for PrimeReach Care to establish and manage their diverse needs, they will provide an opportunity to transfer the knowledge, skills, and experience to the younger population for the future (Calvo-Sotomayor and Atutxa, 2022, p. 2). The long-term impacts are examined from the cost, organisational effectiveness, and competitive advantage. As detailed by Jiang et al. (2026, p. 1), the demographic shift introduces a range of obstacles and prospects. From the prospects, PrimeReach Care will in the long-term reap from a vast expertise and skills developed through decade of learning and organisational transformation, life-based experiences, and generational harmony. On the flipside, an ageing population means burden from their diverse needs and emphasis on a profound culture that promotes working relationships across demographics. Future-based areas of consideration are on how PrimeReach Care will address demand for specialised labour yet population dynamics reveal a reduction in younger workforce who will be the future aged employees. Additionally, contexts and perspectives, such as the impacts of technology will continue to influence how the working population is perceived and dynamics emanating from ageing population.
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Question 7 (AC2.3)
Analyse the potential consequences for PrimeReach Care of major legal and regulatory developments in employment and the labour market. (AC 2.3)
Answer
Decades of legislative overhaul in the UK and the labour market dynamics significantly influence people management practices despite the cost of implementation and potential complexities. PrimeReach Care leadership and management is therefore tasked with understanding regulation changes and their implications to mitigate risks and consequences, including legal claims and employment tribunals. From the UK perspective, changes and plans integrated into the Employment Rights Bill are aimed at modernising the workplace and promoting workforce growth and productivity (CIPD, 2024, p. 2). To UK organisations, the core concerns and questions surround the surge in compliance and operational costs, formulating and implementing risk aversion measures, and the high litigation and tribunal risks. To the workforce, the implications of these regulations and changing labour market are reflected in understanding their rights, taking relevant measures, and seeking clarification where there are uncertainties. The diverse contexts and scope of regulations and the labour market provide a foundation for understanding key changes in the employment labour law and potential coping mechanism for every stakeholder.
Major regulatory and legal development in the labour market and employment will significantly increase PrimeReach Care’s workforce costs. However, this argument is from the employer’s perspective where the core protest surrounds the additional requirements and regulations. The Labour Market Outlook (Winter 2024 – 25) highlights the key areas from employers’ perspective. Concerning statistics include 25% or 1 in every 4 employers planning to make redundancies within the next three months, budgetary measures significantly increasing costs, and the ripple effect of increased cost of employment leading to raise in prices for goods and services (CIPD, 2025B, p. 3). For instance, the Employment Rights Act has added several aspects, which from the UK Government perspective will benefit more than 15 million individuals. To PrimeReach Care employees, these provisions in major employment regulation overhaul increases their freedom and opportunities to access various aspects that were previously reserved for individuals that have worked for a specified period. An example is the ‘day one paternity leave’, ‘parental leave’, ‘protection of pregnant workforce’, and ‘more protections from unfair dismissal’ (Carter et al., 2026. p. 8). Although these changes bring to an end the previous exploitative contracts, such as the zero-hour and are a win to employees, they are a blow to employers, such as PrimeReach Care, which will face significant employment costs. As transformations aim to achieve a workplace that depict 21st century expectations as noted by Dearden et al. (2025), employers, such as PrimeReach Care will bear the costs and face the dilemma of transferring these additional obligations to the consumer.
Risk aversion measures arising from major legal and regulatory developments in employment and the labour market present an opportunity for organisations to re-evaluate their hiring systems and consider long-term employment approaches. The labour market outlook does not provide a certain trend about employment and unemployment in the UK although recent data shows an increase in employment. For individuals aged between 16 and 64, employment rate as of April 2026 was 75.0%, which was a slight decrease from 75.1% a year before (Powell and Francis-Devine, 2026). Potential explanations regarding this trend and reduction in employment include companies taking conservatory measures due to employment regulations and aspects, such as inflation. As evidenced in Figure 1 below, employment intentions remain significantly law in the public sector although the rate is higher in the private sector. This phenomenon has manifested despite the £70 billion injection per year in the public sector.
Figure 1: Net Employment Balance, by broad sector (CIPD, 2025B, p. 4)
For PrimeReach Care, the implications of present labour market and regulations are reflected in developing tight resourcing approaches and considering risk mitigation measures. For instance, despite the £70 billion injection into the public sector, Employment Regulation Act developments, including first-day rights are described by companies facing a significant high financial risk on unfair dismissal, parental leave, and paternity leave. To the employee, these rights are crucial to ensuring a supportive working environment whereas to the employer, such as PrimeReach Care, the prompt is have a rigorous recruitment approach and probation duration, which serve as a risk aversion strategy.
Legal and regulatory developments in employment are aimed at promoting efficiency, reporting, and equality but add administrative costs to employers. The evolving regulatory landscape has introduced more costs on compliance and despite the objective being efficiency, the required resources pose a significant threat to company’s financial stability. In the UK public sector, for instance, some of key regulation areas are on record keeping, reporting, and inspections that are aimed at showing strict adherence to regulatory dynamics. For PrimeReach Care, additional costs, include payroll systems and the need to have a competent team of compliance officers (The City UK and PWC, 2025, p. 3). On the one hand, the regulations aim to drive efficiency in human resources management (HRM) and reducing errors, which are achieved through embracing data analytics and technologies. On the other hand, the holistic approach and compliance adds to the organisation expenses, which poses a risk to reduced profitability and prompt the development and implementation of compliance cost reduction rather than optimisation.
PrimeReach Care faces a myriad of uncertainties and learning areas in both short and long-term due to key developments and trends in the labour market and employment regulations. A great emphasis in the public sector has been placed on collective bargaining rights and the role of trade union (Smith, 2024). Implications are diverse to various stakeholders but to employers, the ease of strike actions, the rights of unions to access workplaces, and the Fair Pay Agreement, particularly in the social care sector have given a potential rise to collective bargaining. In summary, PrimeReach Care will in overall be at a disadvantage, as with other companies in public and private sector. In both the short and long-term, the impacts span from administrative costs, implementation, and adaptation, which are resource-intensive and time-consuming. A review of current employment contracts and how they comply with new and changing employment developments for all the 15,000 employees that PrimeReach Care mean more costs and consideration of strategic interventions and approaches to avert risks and costs. As noted by CIPD (2025), the regulatory developments and labour market present a considerable uncertainty in the business landscape and undermines the company’s confidence in terms of growth, investment, and employment capacity.
Question 12 (AC3.4)
Assess the contribution of people management in improving organisational productivity across PrimeReach Care’s operations. (AC 3.4)
Question 14 (AC 4.2)
Evaluate policy and practice aimed at improving employee wellbeing and making recommendations in respect of reducing the incidence of long-term ill health among staff at PrimeReach Care, particularly for reasons related to mental health. (AC 4.2)
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References
Calvo-Sotomayor, I., & Atutxa, E. (2022). Reviewing the benefits of aging populations: Care activities provided by the older people as a commons. Frontiers in public health, 10, 792287. https://doi.org/10.3389/fpubh.2022.792287
Carter, C., Deakin, S., McCormack, C., and Pourkermani, K. (2026). Assessing the legal and economic implications of the Employment Rights Act 2025 (Online) Available at: https://assets.publishing.service.gov.uk/media/695e23e88832ab3a48513801/assessing-the-legal-and-economic-implications-of-the-employment-rights-act-2025.pdf (Accessed June 30, 2026).
CIPD (2024). Regulation and the Labour Market 2024. (Online) Available at: https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2024-pdfs/regulation-and-the-labour-market-2024-new.pdf (Accessed June 30, 2026).
CIPD (2025). Analysis| The employment Rights Bill’s unintended consequences (Online) Available at: https://www.cipd.org/uk/views-and-insights/thought-leadership/insight/employment-rights-bill-consequences/ (Accessed June 30, 2026).
CIPD (2025B). Labour market outlook – View from employers (Online) Available at: https://www.cipd.org/contentassets/cf73843a106949d9b16ac2bc9b526278/8792-lmo-winter-2024-25-web.pdf (Accessed June 30, 2026).
Dearden, K., Kyle, P, and Starmer, K. (2025). New laws bring the world of work into the 21st century – Press Release (Online) Available at: https://www.gov.uk/government/news/new-lawsbringthe-world-of-work-into-the-21stcentury (Accessed June 30, 2026).
Debelak, K., Grah, B., & Penger, S. (2023). Ageing Workforce’s Impact on Modern Organizations: How to Extend Working Lives?. Entrenova-enterprise research innovation Journal, 9(1), 166-180. https://doi.org/10.54820/entrenova-2023-0016
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Smith, B. (2024). The eight big employment law changes that could affect businesses this election. (Online) Available at: https://littler.co.uk/insights/the-eight-big-employment-law-changes-that-could-affect-businesses-this-election/ (Accessed June 30, 2026).
The City UK and PWC (November 2025). Reducing the cost of compliance: Unlocking efficiency, competitiveness, and growth for the UK financial services sector (Online) Available at: https://www.pwc.co.uk/financial-services/assets/pdf/reducing-cost-of-compliance.pdf (Accessed June 30, 2026).
Truxillo, D. M., Brady, G., Fraccaroli, F., Zaniboni, S., & Yaldiz, L. M. (2026). Work is changing: Implications for an aging, age-diverse workforce. Human Resource Management Review, 36(2), 101131. https://doi.org/10.1016/j.hrmr.2025.101131
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