1. Developing and Implementing Workforce Plans Workforce plans: detailed plans of how the business will implement its HR strategies Workforce planning aims to get the right number of people with the right skills in the right jobs at the right time 2 lessons covering Components of workforce plans Internal and external influences on workforce plans Issues in implementing workforce plans The value of using workforce plans teacher copy

2. Before the plan Before drawing up a plan, a business needs to: Assess the skills of the workforce – a skills audit – what skills/abilities/qualifications does the workforce have Determine the number and quality of workers required – From corporate objectives, and based on market research and sales forecasts, what output is forecast – Based on technology and other influences and thus productivity, estimate workforce size – Determine the skills required Gather data on labour market and workforce – Demographics of the labour markets such as number of graduates each year, or number of immigrants – Data on labour turnover and wage rates Understand laws and regulations on workforce teacher copy

3. Components of a workforce plan -1 Recruitment requirements – How many staff are needed and with what skills – Draw up the process for recruitment Job descriptions, person specifications Recruitment plan – how (eg advert and/or recruitment agency, interview process, testing), what cost, how long Training and professional development – What induction training is needed for new joiners – Training for existing staff to acquire the new skills necessary for the future – Training and development for existing staff to upgrade general skills, eg for promotion teacher copy

4. Components of a workforce plan - 2 Redeployment – Relocation/expansion to new location may require employees to relocate or be redeployed. May require retraining. Reduction in workforce – Closing down of a facility (eg office or factory), or of a business may require a reduction in the size of the workforce. Can be by – Natural wastage. If the reduction is small or over a long period of time, it may be possible with redeployment and natural labour turnover (eg retirement) – Redundancy Ask for volunteers, and offer a redundancy package Compulsory – the firm makes staff redundant (may select staff) teacher copy

5. Influences on workforce plans Internal influences. Same as for objectives – Corporate objectives Growth means more staff, increasing profits may mean fewer layers of management – Marketing objectives Think Ansoff – new markets (new staff, redeployment), new products (new and different staff, training) – Production New technology (training, perhaps redeployment if resource mix changes), lean production or QA (training and teamwork structure) – Finance Can the firm afford the workforce plan? In particular can the firm afford training? What redundancy package is needed teacher copy

6. Influences on workforce plans External influences - 1 – Many feed into the corporate objectives and through the other functions (eg new product, new market) – Laws and regulations There have been many changes in laws and regulations on the workforce including minimum wage, working hours, change in retirement age, need to offer pensions, paternity leave, equal opportunities etc – Labour market trends Availability of skilled labour, unemployment rates, wage inflation, new entrants to labour force, immigrants from Eastern Europe (more availability), using older workers teacher copy

7. Influences on workforce plans Pace of change in technology – Often need to retrain: New production techniques requires retraining Online retail needs customer service rather than sales staff Trade Unions – If employees are union members, trade unions will need to be involved in workforce plans – Trade Unions will represent the interests of the workforce when management proposes: Change in wages Redundancy and redeployment Training teacher copy

8. Implementing workforce plans Plans which require change can be unsettling Can consider the positive and negative effects of workforce plans on various aspects of a firm – Employer/employee relations – Cost – Image – Training teacher copy

9. Implementing workforce plans – employer/employee relations Positive – Improved communication since management needs to discuss and negotiate with staff – Workforce audit may mean staff feel more valued and part of the decision making – Flexible working can be very popular – Applies particularly with soft HR approach Negative – Can cause fear and unrest if there is the possibility of redundancy – Communication may not be clear and adequate – Threats to jobs may be resisted by unions leading to industrial unrest eg strikes teacher copy

10. Implementing workforce plans – cost Positive If well executed, plans can mean: – Reduced labour costs as the size of the workforce is appropriate – Better motivated labour force with higher productivity and lower turnover, both reducing costs Negative Costs of the plans: – Training is expensive and often resisted by senior management – Redundancies, redeployment can be expensive – HR often seen as a servant to operations/marketing and finance teacher copy

11. Implementing workforce plans – Corporate Image Positive – Carefully constructed plans which demonstrate appreciation of the workforce can mean: Better customer service, which improves image It is easier to attract high calibre applicants Negative – Poorly constructed plans, or those which lead to downsizing or redundancies may harm image: Redundancies can be a signal of a failing company, leading to negative publicity. This may make it harder to attract high quality staff teacher copy

12. Implementing workforce plans – Training Positive – Overwhelming evidence on the positive aspects of training on improving skills and motivation – Improved skills and motivation means higher productivity, lower staff turnover and absenteeism, and so lower costs – Better skilled workforce can adapt better to change Negative – Training is expensive. Time is lost when being trained, and trainers need to be paid – Trained staff may expect to be paid more – Trained staff may move to other companies teacher copy

13. The value of workforce plans Can companies achieve their objectives without workforce plans? teacher copy