1. HR Planning

2. In this session we’ll cover The integration of HR strategy with overall business strategy The importance of workforce planning Methods of Demand Forecasting Methods of Supply Forecasting

3. What is HR Planning? “Human Resource Planning is the systematic and continuing process of analysing an organisations human resource needs under changing conditions and integrating this with the development of personnel policies appropriate to meet those needs.” Robinson, I (2007)

4. What is HR Planning? “… a process by which the management of an organisation determines its future human resource requirements and how the existing human resource can be effectively utilised to fulfil these requirements.” Jyoti and Venkatesh, (2008)

5. Integration of HR and Business Strategies An organization should have a clear mission and vision statement(s) SWOT analyses for both organization and HR Department should be conducted. Key HR issues to enable organization to achieve its goals/objectives should be identified.

6. THE IMPORTANCE OF WORKFORCE PLANNING To meet the future needs for the correct number of skilled employees To aid HR to recognize resource constraints but still achieve goals

7. STEPS IN WORKFORCE PLANNING PROCESS: Predicting demand for human resources Determining supply available, internally and externally Compare projections to determine gaps Develop action plans to reconcile gaps Implement staffing plans Evaluation

8. Predicting Demand Judgmental in nature (usually forecasts from experts within and outside of the organization Estimates based on similar organizations (“benchmarking”) Scenario planning, based on several potential outcomes of the new venture, can assist in identifying how many and what kind of employees may be needed as the business grows (or doesn’t!) Nominal Group Technique Experts meet face to face Delphi Technique Experts work independently

9. Predicting Demand Statistical in Nature Ratio analysis If the organization knows it takes 10 employees to produce 100 tennis racquets a day and the org. is forcasting an increase in demand to 150 tennis racquets a day, then 5 more employees need to be hired. Regression analysis Statistically identifies historical predictors of workforce size. Predicts HR demand with an equation.

10. REGRESSION ANALYSIS # of Employees Needed 0 50 100 200 Y =.99 + 42(x) +.06(x) -.25(x) Factors Affecting Human Resource Needs (Sales $, Unemployment Rate, $ Spent on Tech)

11. Determining HR Supply External analysis of workforce Workforce composition takes into account the demographic and skill availability composition of the workforce in the relevant labor market (RLM) Internal analysis of workforce Takes into account the likelihood of retirements, turnover, potential training needs of current employees, and future staffing requirements

12. Factors Influencing External Supply What environmental factors are affecting our available labor market? aging of labor force? fewer workers aged 16-24 available? more dual career couples? more working women?

13. INTERNAL SOURCES OF SUPPLY INFORMATION Skills Inventories are just a hard or soft file on who can do what Replacement Charts are organizational charts that also includes the person, his/her performance level, & promotion potential Succession Planning is More sophisticated than a replacement chart, and includes When the position will be vacated Who is promotable What training is needed for that person

14. Action Planning Compare demand and supply models to determine if there are gaps. Surplus? Shortage? Demand meets supply

15. Develop Action Plans to Close the Demand-Supply Gap Objectives of the Plan Specific Activities Recruitment and Selection Training and Development Outsourcing and Contingency Staffing Individuals Responsible Timetable for Completion Performance Indicators

16. Example of Workforce plan

17. Evaluation Did the action plans achieve the goals/objectives? This is a must that is often not done very well.