1. H UMAN R ESOURCE S TRATEGIES D EVELOPING AND I MPLEMENTING W ORKFORCE P LANS “If you are planning for one year plant rice. If you are planning for ten years plant trees. If you are planning for 100 years plant people.” Indian proverb. Anon “Develop the business around the people; build it don’t buy it; and, then, be the best.” Richard Branson BUSS3.17 Workforce Plans

2. D EVELOPING AND I MPLEMENTING W ORKFORCE P LANS I N THIS TOPIC YOU WILL LEARN ABOUT : Components of workforce plans Assessing internal and external influences on workforce plans The value of using workforce plans BUSS3.17 Workforce Plans

3. W ORKFORCE P LANNING The process of assessing current and future staffing needs Allows management to be proactive and plan for any changes in the future size or nature of the workforce BUSS3.17 Workforce Plans Current workforce: Size and skills Future workforce: Size and skills How? What steps can a business take in preparation? Where are we now? Where do we want to be in the future? How are we going to get there?

4. W ORKFORCE P LANS A detailed plan of the strategies that the HR department will undertake to ensure that future workforce needs are met Remember future workforce needs may be more or less than the current provision Strategies may include Training Redeployment Internal promotion External recruitment Natural wastage Relocation Restructuring BUSS3.17 Workforce Plans

5. C OMPONENTS OF WORKFORCE PLANS S TEP 1 A NALYSING THE CURRENT SITUATION Internal staff audit Skills audit Existing skills Under utilisation Personnel performance indicators Recap AS : Labour turnover Nature of workforce Age Ambitions Labour market trends Number and skills of entrants Qualifications Skills shortages Changing demographics Net migration Ageing population EU directives and UK legislation Working time directive Age discrimination BUSS3.17 Workforce Plans

6. C OMPONENTS OF WORKFORCE PLANS S TEP 2 P REDICTING LIKELY FUTURE CHANGES Impact of internal and external audits and trends Are existing staff likely to leave? Who will be available in the market? Review of corporate and functional objectives What staff will be needed to achieve these? Will staff cuts help achieve these? Analysis of future requirements Detailed plan of what staff will be needed in the future How many? What skills? Where? BUSS3.17 Workforce Plans

7. C OMPONENTS OF WORKFORCE PLANS S TEP 3 W HAT STEPS WILL BE TAKEN ? Having gone through the process of working out what will be needed in the future the business can now decide on the strategies needed to make the transition as smooth as possible What strategies should be taken: to ensure existing workforce meet future needs? to ensure any additional requirements can be fulfilled? BUSS3.17 Workforce Plans

8. I NTERNAL AND EXTERNAL INFLUENCES ON WORKFORCE PLANS Financial Objectives Cost minimisation HR budgets Training budget Maximising shareholder returns Operational Objectives New technology Innovation Lean production Kaizen groups Team work Marketing Objectives Market growth Market development Low cost strategy BUSS3.17 Workforce Plans Discuss how each of these functional objectives could impact upon future staffing needs.

9. I NTERNAL AND EXTERNAL INFLUENCES ON WORKFORCE PLANS Legislation Minimum Wage Health and Safety at Work Paternity rights Discrimination acts Labour market trends Demographics EU expansion Education BUSS3.17 Workforce Plans You will need access to the internet to watch this clip Bill to expose gender pay gap You will need access to the internet to watch this clip What impact will this have on workforce planning?

10. I SSUES IN IMPLEMENTING WORKFORCE PLANS Employer/employee relations How are plans communicated with the workforce? How will staff be affected? Training Redeployment Promotion opportunities Redundancy Are employees involved in decision making? Are employees fairly represented? Employee representation will be looked at in more detail in BUSS3.19 Effective Employer/Employee Relations BUSS3.17 Workforce Plans

11. I SSUES IN IMPLEMENTING WORKFORCE PLANS Cost Recruitment, selection and training Reducing labour turnover Relocation Redundancy payments Potentially high short term cost to achieve long term savings Corporate image Media attention Redundancies Relocation Staff bonuses BUSS3.17 Workforce Plans You will need access to the internet to watch this clip What evidence is there of workforce planning at Rolls Royce?

12. I SSUES IN IMPLEMENTING WORKFORCE PLANS Training Motivation Market failure Having invested in training and development might the business’ employees seek better positions elsewhere? With the competition! Opportunity cost Financial cost BUSS3.17 Workforce Plans Each of these issues can have positive and negative effects

13. P OSITIVE AND NEGATIVE EFFECTS W ORK IN PAIRS TO COMPLETE THE GRID BELOW Positive EffectsNegative Effects Employer/Employee Relations Cost Corporate Image Training BUSS3.17 Workforce Plans

14. V ALUE OF USING W ORKFORCE P LANS Informs decision making Managers know how functional objectives will influence future workforce needs Adopt suitable HR strategies Natural Wastage Can save future redundancy costs Respond to changing nature of the labour market Sufficient staff with the right skills to allow the business to run efficiently BUSS3.17 Workforce Plans

15. A CTIVITY W ORKFORCE PLANS / S UCCESSION P LANNING Read the case study – Fly High Kites Questions 1. What is meant by the term “succession planning”? 2. Analyse the possible reasons why Amir wants to share his reading of the article from “Management Today” with the managers of other functional areas. 3. To what extent do you think the advice offered in the article will help Amir in his position as HR manager? Justify your answer. BUSS3.17 Workforce Plans