1. Assumes a strategic perspective to staffing dilemmas by anticipating HR supply and demand 1. Environmental scanning 2. Forecasting HR requirements 3. Forecasting HR availabilities 4. Gap Analysis 5. Institute action plans 6. Control & evaluation PV

2. Understanding macro-labor & economic conditions & how they impact business aims and strategy Inflation and interest rates Capital improvements & labor costs International exchange rates International assignments & product demand Government and Licensing Regulations Affordable Care Act Product & Labor Market Data labor demand: industry & employment growth labor statisticslabor statistics: quality and quantity and costcost PV

3. Employee Flows within an organization PV Entry Entry, Upward, Lateral, Attrition Lateral Upward Attrition

4. Need to define unit of employment Full time equivalent - FTE Benefit entitlement & other costs for FTE Ratio Analysis: FTE to Sales is common Nurse-Patient ratio or # beds; Food service employees to diners; sale units to salespeople Regression Analysis: Sales and season as common predictors: Ý = a + b 1 x 1 + error Hospital Pharmacists Limitations include: projects past into future (assumes stability) third variable problem differential unit effects (different/greater competencies) PV

5. Internal and External Resource Scans Internal inventory of KSAO availability Talent inventories promotions, transfers, recalls, retraining, overtime scheduling, subcontracting, temporary hires/assignments, vacation and holiday buy-backs employee attitude surveys absenteeism, accidents rates, performance, voluntary and involuntary turnover External inventory of KSAO availability BLS site data & O*Net, information networks (think tanks, universities), conferences, government publications PV

6. Markov Analysis Advantages powerful method for estimating transition probabilities across a matrix of jobs representing an internal labor market Disadvantages based again on ‘static environment’ does not reflect multiple movements in same period assumes each employee has equal probability of movement requires 20+ in each job category for reasonable estimation PV

7. JOBStaffing Levels 2013 SMAExit Supervisors (S) 30.75.20.05 Machinists (M) 80.10.80.10.00 Assemblers (A) 250.15.70.15 Supervisors (S) 2262 Machinists (M) 8648 Assemblers (A) 3717538 Numbers are rounded Staffing Levels 2014 30108183Exit

8. Scrutinizing shortfalls and surplus stemming from requirement-availability discrepancies A process of identifying discrepancies Serves as catalyst for developing action plans to address the gap(s) PV

9. Define Purpose/objectives control movement, increase (reduce) labor supply? profile of criteria (weighted?) Tenure, performance, cultural consistency Develop & Execute Strategy tentative strategies may be developed and their feasibility assessed adjustment of promotion rate (slower/faster) increase or reduce requirements for promotion increases in base pay adopt a vesting policy for tenure or promotion eligibility provide recruitment incentives to recruiters, new hires, referrals, based on tenure? PV

10. Distinguish between Core and Flexible workforce “…if the firm has adopted a core workforce differentiation strategy, the positions will map directly onto the overall approach to delivering value to the customer… the choice of "A" positions will be linked directly to the system of performance drivers that populate the firm's strategy map. In either case, identifying the "A" positions should be considered an integral part of the organization's workforce strategy.” 1 Temporary help agencies (40-50% markup) Independent contractors (project vs. hours; ‘firm’ & ‘contractor’) Part-time employment (benefit cost containment; lower loyalty) Flextime (limited applications) Compressed workweek Flexplace / Telecommuting PV 1 The Workforce Scorecard (Huselid, Becker, & Beatty, 2005)

11. Time-lapse data as index of efficiency posting to hire latency in days offer to acceptance in days Compliance EEO legislation and AAPs ‘utilization analysis’ is determining whether current labor force representation is similar to local population demographics Utilization involves qualified employees Yield ratios: # at stage t + k / # at stage t PV Exhibits: Utilization Analysis & Other HR StatsUtilization Analysis & Other HR Stats Exhibits: Utilization Analysis & Other HR StatsUtilization Analysis & Other HR Stats

12. Recruitment Source ApplicationsQualifiedInterviewedOffered JobAccepted Offer Walk-ins206211 Referrals302415108 Newspaper150502053 Website12575402012 Other data points to use? Successful probationary period? Performance? Promotions? Length of service measures? Cost basis per applicant – hire – acceptance of offer?

13. PV Requirements AnalysisAvailability Analysis Business Plans Current Workforce Forecasted HR Requirements Forecasted HR Availabilities Environmental scanning Action Plans Staffing Activities Other HR Activities Gap Analysis