Internal Factors that Influence Human Resource Planning Flashcards
Business Objectives & Strategy
The bussiness’s goals, objectives, and long-term plans influence the required workforce skills, competencies and size
E.g. Entering a new market may require changes to be made to the number and type of employees required
UK cafe chain Prêt à Manger plans to double the size of its business by expanding into five new markets which will require the recruitment of at least 3,000 Team Members and Baristas by the end of 2023
financial situation
Budget constraints may influence decisions related to hiring, training, pay and benefits
Businesses in financial difficulty may struggle to offer attractive packages to attract employees
To raise their salary offer, they may have to reduce spending on training and development
Alphabet plans to make significant savings as a result of slowing sales growth by reducing its global workforce by 12,000 and changing how often equipment - such as laptops used by workers - is replaced
organisational structure
The structure of the organisation including its hierarchy, reporting relationships and departmental divisions
Changes in the organisational structure may require changes to workforce planning such as redeployment, redundancy or additional recruitment
For example, Consumer goods company Unilever announced its intention in January 2022 to cut 1,500 jobs as part of a restructure of its global operations
labour relations
The relationship between managers and workers, and whether workers are members of trade unions can have a significant impact upon the workforce planning process
Where worker organisation is strong, human resources are more likely to meet the demands of employees with regards to pay and conditions
In 2022 unionised workers at the Port of Felixstowe who had engaged in a series of disruptive strikes were rewarded with a pay increase of 15.5 per cent over two years
Where there is little or no worker organisation, human resources are likely to have more flexibility over these changes
organisational structure
The organisational culture may include a strong work life balance resulting in a higher likelihood that additional workers will be recruited when the demand is there
A recent study by TalentLMS of U.S. tech industry employees revealed that 45% of employees who experience a toxic work environment plan to quit their job because of it
