Objective: To perform a workforce planning activity.

Instructions:

$1.$ Use the Workforce Planning Framework $($pdf example$).$

$2.$ Apply the framework to the current state of the company.

$3.$ Establish actions for the resulting situation $($supply is lower, equal, or greater than demand$).$

$4.$ Submit a report with your analysis resulting from using the workforce planning framework.

Internal Considerations

Turnover

Employee movement

Productivity

Company performance

Strategic direction

External Considerations

Local labor market

Economic conditions

Industry trends

Labor Demand

Labor Supply

Labor Supply

equals

exceeds

exceeds

Labor Supply

Labor Demand

Labor Demand

Labor Demand

Labor Supply

Labor Shortage Tactics

Employee Overtime

Contingent Labor

Employee Retention

Promotions, Transfers

and Demotions

New HiresInternal Factors

$$ Turnover:

Voluntary and involuntary termination of employees.

$$ Employee movements:

Promotions, transfers, and demotions.

$$ Employee productivity.

$$ Company performance.

$$ Strategic direction:

Company evolution, mergers, and acquisitions.

Employee Movements

$$ Promotions:

Moving employees to higher level positions, which often are associated with

increased levels of responsibility and authority.

$$ Transfers:

Moving employees to other jobs with similar level of responsibility.

$$ Demotions:

Moving employees to lower level positions within the company.

External Factors

$$ Local Labor Market:

Size and composition of the local labor market.

$$ Economic Conditions:

Unemployment rate, growth of economy, etc.

$$ Industry Trends.

Labor Shortage Tactics

$$ Overtime:

Having employees work extra hours beyond their regular work schedule.

$$ Outsourcing and contingent labor:

Sending work to other companies $($payroll$,$ cafeteria, maintenance$).$

Hiring workers to work on a temporary or non$-$ standard basis.

$$ Retention:

Lowering turnover lowers a firm$$s costs of recruiting, selecting, and training

new employees.

Employee satisfaction is a key predictor of turnover.

Labor Shortage Tactics

$$ Promotion, transfers, and demotions:

Effective and fast way to deal with labor shortage.

$$ New hires.

Labor Surplus Tactics

$$ Layoffs:

Quickly reducing the number of workers employed.

$$ Attrition and hiring freezes:

Decision not to fill vacant positions.

Ban on all hiring for a period of time.

$$ Early retirement:

Financial incentive to have employees retire early $($can result in mass exodus$).$

$$ Employee promotions, transfers, demotions:

$$ Move people to other areas of the firm facing shortages.

Workforce Planning in Practice: Organizational Demands

$$ Strategy:

Required speed to deal with shortages and surpluses.

Criticality of employee groups.

$$ Company characteristics:

The relative impact of labor shortages and surpluses.

Who carries out workforce planning.

Workforce Planning in Practice: Organizational Demands

$$ Strategy:

Required speed to deal with shortages and surpluses.

Criticality of employee groups.

$$ Company characteristics:

The relative impact of labor shortages and surpluses.

Who carries out workforce planning.

Workforce Planning in Practice: Organizational Demands

$$ Culture:

Likelihood of using different tactics.

Employee reactions to workforce planning tactics.

$$ Employee concerns:

Employee stress and work$/$life balance issues.

Perceptions of procedural and distributive justice.

Workforce Planning in Practice: Environmental Influences

$$ Labor Force Trends:

Availability of internal and external workers.

Which tactics to use.

$$ Technology:

The number of employees needed.

The types of workers needed.

The quality of workforce planning forecasts.

$$ Globalization:

Where the workers are.

Which workforce planning tactics to use.

$$ Ethics:

Community reactions to workforce planning tactics.

How companies help employees cope.

Workforce Planning in Practice: Environmental Influences

$$ Globalization:

Where the workers are.

Which workforce planning tactics to use.

$$ Ethics:

Community reactions to workforce planning tactics.

How companies help employees cope.

Workforce Planning in Practice: Environmental Influences

Workforce Planning in Practice: Regulatory Issues

$$ Requirements for mass layoffs and plant closing: Worker Adjustment

and Retraining Notification Act $($WARN$,1988).$

Employers with $100+$ employees.

$60$ days in advance.

Plant closings and mass layoffs.

$$ Determining who is an employee versus an independent contractor.

Workforce Planning in Practice: Regulatory Issues

$$ Requirements for mass layoffs and plant closing: Worker Adjustment

and Retraining Notification Act $($WARN$,1988).$

Employers with $100+$ employees.

$60$ days in advance.

Plant closings and mass layoffs.

$$ Determining who is an employee versus an independent contractor.