P1: Describe the main internal and external factors to be considered when planning the Human Resource requirements of an organisation The internal factors mainly considered when planning the Human Resource requirements of an organisation are; • Technological change – Human Resources must be able to keep up with the latest technology by retraining their current staff or recruiting new up-to-date employees. But because of these changes, current employees might be unhappy because their jobs are in threat due to their lack of technical skills and also not everybody welcomes these changes.
HR needs to keeps these feelings within the organisation in order for them to keep their workers. • Location of production – due to a company expanding, planning is compulsory for relocation. But staff may be asked to move so the organisation can have a desirable number of staff working at each establishment. This also goes down to how HR can control the morale of unhappy workforce. • Skill requirements – quite similar to the technological change within an organisation, ‘Skill requirements’ are re-evaluated to see if they are required for the job at hand.
So because of this HR have to organise a skills training course for the not able employees. Training may enable them to be redeployed in the business whilst retraining can have a long-term negative affect on staff and HR has to manage this. • Workforce demographics/profiles – this is organised by HR in profiles, the current staff by skills, age, gender, turnover ethnicity, full-time/part-time etc. HR must look at these profiles properly to decide who would be best for the vacant job.
The external factors mainly considered when planning the human resource requirements of an organisation are; • Supply of labour – the labour market has changed remarkably over the years ago so due to this, it becomes harder to employ skilled workers. Also because of the higher wage demands these days, organisations sometimes cannot meet their requirements. This is when HR comes in because they need to figure out new ways of bringing in new staff by grabbing their attention. Cost of labour – can be caused by relocation where some land may be expensive to build on, therefore HR need to find the best property to relocate on. But the most commercial aspect of labour costs is employment. This is when new recruitments that are on stand-by, have high wage demands due to their various skills and attributes. When these things happen, HR is called in to come to some sort of agreement with new staff willing to work at the company and they also need to decide what would fair salaries. Government policy – when opening a new business or relocating a business to a new establishment, a regional policy is looked upon to see if the government are supportive of these arrangements. Sometimes the government disagree with planning of a future business plan due to the lack of correlation to their regional policy. This makes organisations re-evaluate their business plans and try again or try a different area to set-up in.
HR is called to give advice of what is the right thing to do in correspondence to the government policy. • Changing nature of work/employee expectations – due to the improvement in the labour market because of skills and ability, giving them more options to work around their family life. This helps to balance out work and family time to their desire. Also by doing this, it helps attract better staff by offering them more options. HR is the main people behind this policy by giving employees more decision on what to do.