Forecasting Stage of HR Planning
Determine Labor Demand
derived from product/service demanded
external in nature
Determine Labor Supply
Internal movements caused by transfers, promotions, turnover, retirements, etc.
transitional matrices identify employee movements in different job categories over time to chart historical trends in company’s labor supply
useful for AA / EEO purposes
Determine Labor Surplus or Shortage
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Chapter 5Human Resource Planning and RecruitmentCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Forecasting Stage of HR PlanningDetermine Labor Demandderived from product/service demandedexternal in natureDetermine Labor SupplyInternal movements caused by transfers, promotions, turnover, retirements, etc.transitional matrices identify employee movements in different job categories over time to chart historical trends in company’s labor supplyuseful for AA / EEO purposesDetermine Labor Surplus or ShortageDownsizingDownsizing - planned elimination of large numbers of personnel to enhance organizational competitiveness.Long-term effects of an improperly managed downsizing effort can be negative.4 Reasons for Downsizing:reduce labor coststechnological changes reduce need for labor*mergers and acquisitions reduce bureaucratic overheadorganizations change location of where they do businessEarly Retirement ProgramsThe average age of U.S. workforce is increasing.Baby boomers are not retiring early due to:improved healthfear that Social Security will be cutmandatory retirement is outlawedcollapse of the financial and housing markets made it economically unviable to retireMany employers try voluntary attrition among older workers through early retirement incentive programs.Employing Temporary WorkersHiring temporary workers helps eliminate a labor shortage and affords flexibility needed to operate efficiently during demand swings.3 Advantages:Temporary workers free a company from administrative tasks and financial burdens.Temporary workers are often times tested and trained by a temporary agency.Many temporary workers brings an objective perspective and experience.Outsourcing and OffshoringOutsourcing uses an outside organization for a broad set of services.Offshoring is outsourcing where jobs leave one country and go to another.To help ensure the success of outsourcing:Choose an established, large outsourcing vendor. Jobs that are proprietary or require tight security should not be outsourced. Start small and monitor constantly.Altering Pay and HoursGarner more hours from current employeesCut salariesReduce contributions to 401(k) plansReduce number of hours of all workers.HR Recruitment ProcessJob ChoiceRecruitment InfluencesJobChoiceApplicantCharacteristicsVacancy CharacteristicsRecruitment SourcesNewspaper Advertising -large volume, low qualityrecruitsJOBSSummaryHR planning uses labor supply and demand forecasts to anticipate labor shortages and surpluses to enhance organization’s success and reduce human suffering.HR recruiting creates an applicant pool should a labor shortage occur.