A2 Factors Involved in Human Resource Planning
HR planning is the continuous process of maximising the use of the workforce. It is the role of HR that there is the right quantity and quality of staff to complete operation effectively. This is done through a range of activities such as recruitment, motivation and training.
The nature of work affects the skills, qualities and experience held by the personnel in those roles as well as the remuneration packages given. Entry-level jobs such as administrative assistants, cashier or labourer may involve a fast recruitment process, on-the-job training and low wages. This is because applicants are in abundance due to the lower need for prior training. Managerial positions may have a longer recruitment process involving multiple interviews and presentations. This is due to the responsibility they are given and the impact of the decisions they make on the organisation and its stakeholders.
Demand for products has an impact on the need for staff as demand for labour is derived from the demand for products and services. Increases in demand for products are likely to lead to an increase in demand for staff and vice versa. The HR department may have to recruit and dismiss staff in response to the change in demand. A change in the types of products and services that consumers demand may have an impact on the skill set that the HR department needs to develop in staff. This may be through training or recruitment.
Skill requirements and shortages should be regularly monitored by the HR department. An understanding of the skills required in each position in the organisation allows the HR team to quickly respond when a shortage occurs. For example, if the company’s graphic designer was to hand in their resignation notice and were to leave in one month, the HR team should be able to quickly devise and implement a replacement plan. An understanding of what skills were needed in a replacement would allow the HR team to quickly write a person specification and job description and get an appropriate advert out. A good understanding of skill requirements would allow them to establish a plan to meet training needs for the replacement person.
The location of a job role has a very large impact on the people available to fill roles. Firms need to consider far staff will be willing to travel in relation to their remuneration packages. Many international firms offer generous relocation packages when they ask their staff to relocate overseas. This is due to the impact that the move has on their life and their family. Relocation packages may include higher salaries, private medical cover, private schooling for children and annual flights home. Firms that are recruiting staff locally who may not have the required skill set may decide to provide training programs to upskill locally hired staff.
Local market competition refers to the level of other businesses that require the same skill set in their workforce. If there are lot of other organisations, firms may find it more difficult to recruit staff and may find that their turnover rates are high as staff can easily switch to another employer.
Workforce profiles are sets of data on the staff within an organisation such as demographics, skills, experience, remuneration, patterns of absence, turnover and labour mobility. The HR departments use this information to create a picture of the workforce, identify patterns and predict future needs.
Labour turnover refers to the rate at which staff leave an organisation. This may be through resignation, retirement or dismissal. Having an understanding of the rate of turnover each year allows the HR team to make better predictions of recruitment needs. Firms that are experiencing very high levels of labour turnover may investigate the reasons behind this and seek to make improvements to morale.
Labour productivity refers to the output per worker. Higher labour productivity results in lower overall staffing costs per unit of output. The HR department may use a range of strategies to encourage higher labour productivity. Recruiting high calibre staff, good training programs and creating a positive organisational culture all contribute to improved labour productivity.
