1. Recruiting and Retaining People
Lecture 4 – Human Resourcing, Retention and Planning

2. Human Resourcing, Retention and Planning
CIPD (cited by Taylor, 2010: 2) define the purpose of resourcing and planning by arguing:
“A major and fundamental objective of the HR function is the mobilisation of a workforce. Organisations can only function if they are able to assemble together teams of people with the necessary skills, attitudes and experience to meet their objectives. A further objective is then to retain effective performers for as long as possible. From time to time it is also necessary to dismiss people from organisations.”….

3. What is HR planning?
“… is the systematic and continuing process of analysing an organisation's human resource needs under changing conditions and integrating this analysis with the development of personnel policies appropriate to meet those needs. It goes beyond the development of policies on an individual basis by embracing as many aspects of managing people as possible with a key emphasis on planning to meet the skill and development needs of the future.” (IPM, 1992)

4. Manpower Planning
Was a rational top-down planning approach, used in post-war period of stable growth
Manpower planning cycle (Hendry, 1995:191)
Analysing current manpower resource
Reviewing labour utilization
Forecasting the demand for labour
Forecasting supply
Developing a manpower plan
Suggest a linear or circular approach?
Gender specific language - manpower
HRP supposedly broader/more strategic/ continuous cycle rather than linear stages

5. HR imbalance – quantitative/qualitative
Analysis and investigation
External labour market
Internal labour market
Organisational assessment
Corporate strategy
Forecasting
Demand
Supply
HR imbalance – quantitative/qualitative
Working patterns; retention; health and safety; release; training and development; employment relations; organisation structure and development; recruitment and selection; equality of opportunity; pay and reward; performance management.
Planning and resourcing
Using HR techniques
Developing policies and reviewing practice
Utilising technology
Implementation and control
Source: Williams in Leopold (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 31. (adapted from Bramham (1994)

6. Analysis and Investigation: External to the firm
Political, e.g. political parties approaches
Economic, e.g. interest rates, credit crunch
Social, e.g. attitudes to discrimination
Technological, e.g. use in the workplace
Legislative, e.g. forthcoming new laws
International, e.g. commercial regulation
Environment, e.g. impact of green issues
Demographic, e.g. age of workforce
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 32.

7. Analysis and Investigation: The Internal Labour Market
Analysing employees
Number
Age profile
Skill levels
Demographic profile
Labour turnover
Range of different measures
Analysing employees
Absence levels
Performance levels
Productivity levels
Competences
Personal competences
Management
Technical
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 36.

8. Statistical Analysis Labour Turnover Index/Wastage Analysis
Leavers in year
x 100
Average number of
staff in post
Stability Index/Analysis
Number of staff with 1 year’s service
Number of staff employed exactly one
year before

9. Statistical Analysis Cohort Analysis Retention Profile
E.g. graduate trainees
Survival rate
Retention Profile
Replacement and Succession Planning/Internal Promotion Analysis

10. Numbers surviving to end of year after engagement
Entry cohort
Original Strength
Numbers surviving to end of year after engagement
Year 1
Year 2
Year 3
Year 4
Year 5
2003 40 35 28 26 22 20
2004 32 25 24 19 18 17
2006 48 39 33 30 23 38 27
2007 42 36 21
Total
200
167
142
125
110
100
Average Survival Rate
100%
84%
71%
63%
55%
50%

11. Regional Sales Manager (North) (Scotland and Northern Ireland)
Sales Director
Regional Sales Manager (North)
(Scotland and Northern Ireland)
Sales Manager
3 Salespersons
(North and Wales)
6 Salespersons
Regional Sales Manager (South)
Sales Manager (Midlands)
12 Salespersons
Sales Manager (South )
15 Salespersons

12. Regional Sales Manager North G. Roberts M. Smith S. Johnson
Post
Current Postholder
Ready now
Ready Soon
Ready Future
Sales Director
D. Coutts
F. Enfield
J. Wilson
Regional Sales Manager North
G. Roberts
M. Smith
S. Johnson
Regional Sales Manager South
Sales Manager (Scotland & NI)
H. Sim
G. Neish
M. Knowles
Sales Manager (North & Wales)
P. Adam
C. Fisher
Sales Manager (Midlands)
S. Thompson
G. Dunn
N. Hughes
Sales Manager (South)
M. Aitken
C. Cameron
W. Davidson
M. Green
S. Lewis

13. Organisational Assessment and Corporate Strategy
Key areas
Organisational philosophy
Culture
Structure
Management philosophy
People-related costs
Effectiveness of HR policies and practices
Employee statistics
Often subjective/based on judgement
Assumes ‘fit’ with external environment, between business and HR strategy, across HR policies
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 36.

14. Forecasting Supply and Demand
Knowledge of current and future labour pool
E.g. population, age distribution, skills levels, unemployment
Forecasting demand
Quantitative
Ratio-trend analysis
Eco-centric modelling
Work study
Qualitative
Managerial judgement
Delphi technique
Nominal Group technique
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 38.

15. Planning and Resourcing
Outcomes
Plans
Resourcing
Development
Retention
Flexibility
Remuneration
Downsizing
Productivity
Control and Management of Plans
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 43.

16. Implementation and Control
Using HR techniques
Utilising technology
HR Information systems
IT literacy
Data protection
Individual and collective data
Developing policies and reviewing practice
Role of HR and line
Source: Williams in Leopold, J. (2002) Human Resources in Organisations, Harlow, Pearson Education Ltd, pp. 43.

17. Uncertain times Leopold (2004) argued that
Today’s organisations need to be able to:
Align output with demand
Cope with change
To do this they need
Flexibility
Cost-effectiveness
How does HR planning function in very uncertain climate? More or less important?
To what extent do we see evidence of more strategic HRM practice/use of HR Planning?

18. Evidence of HRP in Practice?
Evidence not clear-cut on use/majority of employers do not seem to prioritise HRP in practice (Taylor, 2008)
Formal HRP largely limited to future training needs, labour cost/productivity analysis, structural changes required to support new business plans (CIPD/Cowling and Walters, 1990)
Less than 50% of employers undertook formal forecasts of supply and demand (CIPD/Cowling and Walters,1990)
Reasons for above?
E.g. scepticism/fear about statistical analysis rather than management judgement, HRP viewed as desirable but not essential, short-term outlook in UK industry, lack of accurate historical records/data in firms, … (Taylor, 2008)

19. Pros and Cons of HRP? Pros of HRP (Taylor, 2008)
Organisations need awareness of external and internal environment and of HR implications
Complex and turbulent external environment means organisations need to plan even more/develop adaptable plans
Useful for organisations/aid achievement of objectives
Cons of HRP (Taylor, 2008)
Are accurate historical records available? Can accurate forecasts be made based on past records/experiences?
More environmental complexity & turbulence complicates and inhibits accurate forecasting & planning
Might not fit with new organisational structures e.g. decentralisation, resourcing decisions in SBUs not in HQs