1. Human Resource Planning
Assumes a strategic perspective to staffing dilemmas by anticipating HR supply and demand
1. Environmental scanning
2. Forecasting HR requirements
3. Forecasting HR availabilities
4. Gap Analysis
5. Institute action plans
6. Control & evaluation
1. Environmental scanning
- comparing business plan with HR supply
- pressures of technology, culture
legal regulations, competition
2. Labor demand forecast (project how business needs affect labor demand)
3. Labor supply forecast (project availability of internal/external sources)
4. Gap Analysis (reconcile supply/demand; make plans)
5. Action plans (institute plans)
6. Control and evaluation (cost, turnover, performance, compliance/AAP) PV

2. 1. Environmental scanning
Understanding macro-labor & economic conditions & how they impact business aims and strategy
Product & Labor Market Data
labor demand: industry & employment growth
labor statistics: unemployment and cost
Inflation and interest rates
Capital improvements & labor costs
Government and Licensing Regulations
Affordable Care Act PV

3. 2. Forecasting HR requirements
Employee Flows within an organization
Attrition
Voluntary
Involuntary
Upward
Lateral
Acquisition
Expansion or replacement from external labor market PV

4. Methods of Forecasting Demand
Need to define unit of employment
Full time equivalent - FTE
Benefit entitlement & other costs for FTE
Ratio Analysis: FTE to Sales is common
Nurse-Patient ratio or # beds; Food service employees to diners; sale units to salespeople
Regression Analysis: Sales and season as common predictors: Ý = a + b1x1 + error
Hospital Pharmacists
Limitations include:
projects past into future (assumes stability)
third variable problem
differential unit effects (different/greater competencies) PV

5. 3. Forecasting HR Availabilities
Internal and External Resource Scans
Current internal inventory of KSAO availability
Talent inventories
promotions, transfers, recalls, retraining, overtime scheduling, subcontracting, temporary hires/assignments, vacation and holiday buy-backs
Anticipating staffing needs
employee attitude surveys
absenteeism, accidents rates, performance, voluntary and involuntary turnover
External inventory of KSAO availability
BLS site data & O*Net, information networks (think tanks, universities), conferences, government publications, consortiums PV

6. An Empirical Method to Forecast Availabilities
Markov Analysis
Advantages
powerful method for estimating transition probabilities across a matrix of jobs representing an internal labor market
Disadvantages
based again on ‘static environment’
does not reflect multiple movements in same period
assumes each employee has equal probability of movement
requires 20+ in each job category for reasonable estimation PV

7. Example Markov Analysis
JOB
Staffing Levels
2017 S M A
Exit
Supervisors (S) 30
.75
.20
.05
Machinists (M) 80
.10
.80
.00
Assemblers (A)
250
.15
.70
Supervisors (S) 22 6 2
Machinists (M) 8 64
Assemblers (A) 37
175 38
Numbers are rounded
Staffing Levels
2018 30
108
183
Exit PV

8. 4. Gap Analysis
Scrutinizing shortfalls and surplus stemming from requirement-availability discrepancies
A process of identifying discrepancies
Serves as catalyst for developing action plans to address the gap(s) PV

9. 5. Institute action plans
Define Purpose/objectives
Control movement
increase (reduce) labor supply?
assure higher success or retention?
Develop & Execute Strategy
tentative strategies may be developed and their feasibility assessed
Adjust promotion rate: increase or reduce requirements for promotion – seniority, training, certification
increases in base pay to influence job attraction
adopt a vesting policy for tenure or promotion eligibility
provide recruitment incentives
to recruiters, for referrals, new hire signing bonuses PV

10. Less Traditional Alternatives
Temporary help agencies (40-50% markup)
Independent contractors (project vs. hours; ‘firm’ & ‘contractor’ relationship)
Part-time employment (benefit cost containment; lower loyalty)
More limited applications
Flextime
Compressed workweek
Flexplace / Telecommuting PV

11. 6. Control & evaluation Time-lapse data as index of efficiency
posting to hire latency in days
offer to acceptance in days
Compliance
EEO legislation and AAPs
‘utilization analysis’ is determining whether current labor force representation is similar to local population demographics
Utilization involves qualified employees
Yield ratios: # at stage t + k / # at stage t
Exhibits: Utilization Analysis & Other HR Stats PV

12. Yield Ratio Examples Other data points to use?
Recruitment Source
Applications
Qualified
Interviewed
Offered Job
Accepted Offer
Walk-ins 20 6 2 1
Referrals 30 24 15 10 8
Newspaper
150 50 5 3
Website
125 75 40 12
Other data points to use?
Successful probationary period?
Performance? Promotions?
Length of service measures?
Cost basis per applicant – hire – acceptance of offer?

13. Environmental scanning
HRP Process Summary
Requirements Analysis Availability Analysis
Business Plans
Environmental scanning
Current Workforce
Forecasted HR Requirements
Forecasted HR Availabilities
Gap Analysis
Action Plans
Other HR Activities
Staffing Activities PV