BSBHRM513

Manage workforce planning report

Summative assignment 2

Identify and explain the importance aspects of workforce planning. Make sure
you explain how they contribute to the overall process of workforce planning
and the success of an organization. Discuss how workforce planning is
affected by range of internal and external factors and strategies for retaining
and attracting skilled labor. Outline the need for contingency plans and the
impact of industrial relations.

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TABLE OF CONTENTS

1) Forecasting & Assessment……………….. 3

2) Contingency Planning……………………... 7

3) Industrial Relations………………………… 8

4) Succession Planning………………………. 9

5) Recruitment…………………………………. 11

6) Recruitment Processes…………………… 13

7) Employee Retention………………………. 14

8) Training and Development………………. 16

9) Rewards…………………………………….. 17

10) Performance Management……………… 18

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Forecasting & Assessment:

Refers to one of the crucial aspects of workforce planning, helps the

enterprise to forecast the demand & supply for the future needs. One of the

basic outcomes which might be seen within this aspect of workforce planning

is to identify the potential problems or issues which might arise within the

organization. Analysing gaps involves using the results of workforce analysis

and forecasting to identify current and future gaps between the demand for

services and the supply of labour to meet those demands. A key element of

the gap analysis is the assessment of the characteristics, capacity and

capability of the workforce.

Forecasting refers to the process of assessing the past trends as well as

evaluates the present situations & future events. Forecasting would be

referred to as a process of planning as well as identifying expectations when

the goals or objectives are being planned or established. Forecasting has

been regarded as one of the crucial elements for the workforce towards

retirement.

Within the forecasting as well as the assessment phase the use of the gap

analysis shall be done. This will help in order to measure the gap as well as

use the various strategies in order to manage the future. This aspect will

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involve the identification of the developments which might result from the

supply analysis. The business elements will have different types of issues

which will identify the needs of the enterprise. The main goal of this is to

optimise the position within the enterprise. There are mainly 4 steps within the

forecasting phase.

The four different steps are:

• Identify the assumptions in workforce

• Validating assumptions

• Gap Analysis

• Scenario Building

There are mainly three questions which need to address the forecasting

process:

• Where are now? (workforce analysis)

• Where the business does wants to be? (utilise the various assumptions

in order to estimate the future demand)

• How will it reach there or measure the gaps between the demands?

(demand v/s supply)

The first step is to collect the appropriate data from the different sources and

to begin an analysis. It is an important to ensure that any assumptions

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describes the potential impact over the business by inheriting risk as well as

occurrence in the elements of culture.

The second step within any workforce assumptions would be to utilise the

focus groups by the use of different types of questionnaires or interviews

given by the leaders within the enterprise. Proper feedback would be provided

which will ensure that the gathered information or the assumptions are quite

valid & are based upon the data available.

The last step within the workforce assumptions is to utilise the various types

of assumptions within the scenario building. Scenarios are the way with which

various alternatives for the future which would be based upon the

combinations of facts, figures, trends & assumptions. These will help to meet

the forecasted goals, objectives, mission & vision for the enterprise.

Scenarios are generally a descriptive statement presenting a particular picture

of the future that includes comments on the probability of certain events

occurring. Moreover, scenarios are usually accompanied by qualitative or

quantitative information.

The final phase within forecasting refers to perform the Gap Analysis. Gap

Analysis refers to an analysis which would help to narrow down the where the

organization presently and where it wants to be. The current workforce & the

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future workforce along with its demands shall be analyzed. This will help the

organization to identify the gaps in terms of skills, knowledge, etc. It must be

taken into consideration that; demand is purely based upon the preferred

scenario & the competencies which would help in the fulfillment of the

demand requirements. The Gap Analysis will indicate the different types of

skills gap, surplus, recruitment issues as well as retention issues in order to

meet the demand for the same. This exercise shall be continued until

initiatives or strategies would be dealt to meet the requirements of the

organizational needs.

In order to perform gap analysis, the following questions shall be addressed:

• What are the potential sources for the new staff that will be required?

• What attrition and recruitment can be expected in the years?

• Implications of succession planning?

• Competitive Sourcing solutions?

• Will & how training or re-training will be of help?

• Impact of budget decisions on any mission critical occupations?

• Will the attrition make it easier to achieve workforce objectives?

• Are new hires going to be required, and if so are they going to replace

current employees or go into newly established positions?

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 • What kind of positions will need to be filed?

• Any redeployment concerns or issues with current staff?

Contingency Planning:

When developing a workforce plan it would be prudent for any business to

formulate a contingency plan. A business plan that only considers the best-

case scenario for a business isn't likely to last long. Anticipating risks to your

company, including seasonal drops in revenue and new competitor products

entering the market succession or Industrial action, it is crucial to ensure an

overall business strategy has the wide vision necessary to keep the business

from being caught off-guard by foreseeable events. The more risks your

business can anticipate, the better the company is at meeting the many

challenges that can arise for a business in any industry. Contingency planning

and risk management are only as good as the strategies developed to help

mitigate the potential financial damage to your company. Mitigation strategies

may include a variety of methods for limiting the effects of future problems to

your business, including storing capital for revenue shortfalls as well as

making improvements to facilities to reduce the chances of employee injury or

in case of an industrial dispute. These strategies provide your small business

with a plan of action in the event of a problem. This allows your company to

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devote more time to solving a problem in the moment without having to first sit

down and develop a plan of action.

Industrial Relations:

All industrial relations implementation plans need to include contingency plans

should negotiations with employees over proposed changes break down.

Before entering into any negotiation, you need to assess the potential risks

and benefits associated with the negotiation. The contingency plan should

identify these potential risks, and plan methods to reduce their impact on the

organisation, its customers and other employees not involved. It is vital that

the plan and its aims are clearly communicated to all employees. They need

to know what it contains and how it will directly affect them and the work they

do. They also need to know the benefits that they will receive by committing to

the implementation of the plan (eg greater flexibility in work hours, incentives

such as bonuses for increased productivity, and greater career opportunities

through access to training and development). The ideal industrial relations

situation is a strong corporate culture that actively supports the development

of its employees. It is vital that management recognises the importance of its

workforce. When the management team develops an implementation plan for

the organisation’s industrial relations strategies and policies, it is important

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that the culture of the organisation is considered, culture being defined as the

shared values and beliefs of the employees within that workplace. To

successfully implement industrial relations changes, the management team

needs to have the cooperation and support of the employees. In addition, it is

essential that an implementation plan provides employees with the

opportunity to access training and development to allow them to more easily

adapt to the new policies.

Succession Planning:

Mentioned as one of the critical components of strategic planning within

workforce planning. Succession planning would be referred to as a process of

analysing as well as identifying the need for the availability of the human

resources in order to meet the organizational goals, mission, objectives, etc.

The succession analysis shall be prepared which would help to forecast the

supply of people which would be required to fill in the various positions. The

succession plans shall be such which would help to identify the personnel

changes in order to select the candidates & keep an attack of attrition. The

external supply of the candidates will also be influenced by the various factors

such as development of the technology,

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A succession analysis should be prepared that forecasts the supply of people

for certain positions. Succession plans should be used to identify potential

personnel changes, to select back-up candidates, and to keep track of attrition.

The external supply of candidates is also influenced by a variety of factors,

including developments in technology, the actions of competing employers,

geographic location and government regulations.

Workforce succession planning will make major attempts to match the available

supply of labor with the forecasted demand in light of the strategic plan of the

organization. A gap analysis is the process of comparing the workforce demand

forecast with the workforce supply projection. The expected result is the

identification of gaps and surpluses in staffing levels and competencies needed

to carry out future functional requirements of the organization. A gap occurs

when the projected supply is less than the forecasted demand. It indicates a

future shortage of needed employees. Strategies such as recruitment, training

and succession planning will need to be developed and implemented. A surplus

is when the projected supply is greater than forecasted demand. This indicates

future excess in some categories of employees that may also require action to

be taken. The surplus data may represent occupations or skill sets that will no

longer be needed in the future or at least not to the same degree. Retraining,

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transfers or separation incentives may need to be implemented to address

surplus situations.

In order to implement the workforce succession planning it is very important for

human resource management (HRM) to expand their scope as well as go

beyond the traditional tasks of HRM functions. This will help the managers &

employees to enter into partnerships. Working together with the employees as

well as the managers will provide better understanding regarding the HRM

issues. HRM staff will become more informed regarding the needs of the

employees & the different departments.

. Working together provides managers and employees with a better

understanding of HRM issues. Likewise, HRM staff becomes more informed

about the needs of the employees and departments.

Recruitment:

Employee recruitment & retention of the same have been referred to as the

main challenge for the employers today. Employers need to spend as well as

implement various types of techniques which would help in order to compete

within the marketplace.

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Nevertheless, organisations have the option of attracting and choosing their

employees for its recruitment process from two different sources: internal and

external.

A business can recruit in two different ways:

Internal recruitment is when the business looks to fill the vacancy from within

its existing workforce

External recruitment is when the business looks to fill the vacancy from any

suitable applicant outside the business

Of course, the option to use BOTH internal and external recruitment can be

used. This is often the case for senior management appointments.

Internal recruitment

Advantages:

1) Cheaper and quicker to recruit

2) People already familiar with the business and how it operates

3) Provides opportunities for promotion/succession with in the business

4) Can be motivating

5) Business already knows the strengths and weaknesses of candidates

Disadvantages:

1) Limits the number of potential applicants

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 2) No new ideas can be introduced from outside

3) May cause resentment amongst candidates not appointed

4) Creates another vacancy which needs to be filled

External recruitment

Advantages:

1) Outside people bring in new ideas

2) Larger pool of workers from which to find the best candidate

3) People have a wider range of experience

Disadvantages:

1) Longer process

2) More expensive process due to advertising and interviews required

3) Selection process may not be effective enough to reveal the best

candidate

Recruitment Processes:

A recruitment process is an organization-specific model of candidate sourcing

for the purpose of finding and hiring new employees. Typically, the ownership

of the recruitment process resides within the Human Resources function,

although companies also use third-party recruiting firms. Ownership can vary

depending upon the specific organisational structure of the company carrying

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out the process. As a general rule successful recruitment begins with a

creation of recruitment policies followed by an analysis of current and future

needs and requirements of the organization. The five steps involved in

recruitment process are as follows:

(i) Recruitment Planning

(ii) (ii) Strategy Development

(iii) (iii) Searching

(iv) (iv) Screening

(v) (v) Evaluation and Control.

Retention:

No matter the size or stage your business is currently at, having employees

leave is just bad for business. As the Wall Street Journal notes, a high

employee turnover rate can cost “twice an employee’s salary to find and train

a replacement.” Not only are there financial repercussions, a high turnover

rate can also lower the knowledge base in your company and decrease

performance and morale. Retention begins with effective recruitment

strategies and good selection of candidates. Employee retention, especially of

the most desirable employees, is a key challenge. As if that were not enough,

good HR system needs to supplement the organizational goals in order to be

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successful in the international arena. Vertical integration is a good strategy for

increasing employees’ retention since it is creating a relationship with the

employee. The top down approach gives HR managers the opportunity to look

after the staff, to train and motivate them with aligning the activities to

organizational goals with the main focus on developing skills required to

perform the job. A learning-focused organisation doesn’t just hold periodic

learning events or workshops separate from the day-to-day work. Instead,

learning is integrated in every project or task. A commitment to training is

seen by employee’s as an investment in their worth and a powerful incentive

to stay at the company,

The need for new skill sets and evolving roles are in demand at rapidly

growing rate, so putting someone on a career path that doesn’t have any

room to develop is not only a career-limiting move for the employee, but a

business-limiting move for the company.

Assisting employees gain skills they can both apply in their current role, or

build on to work towards getting a promotion, you're keeping them engaged,

excited and invested in your company. This process for retention has made

Rolls Royce an employer of choice. Rolls-Royce was ranked second in the

2014 Randstad Award UK survey, with more than 60% of respondents

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indicating they would want to work for the company. Rolls-Royce was the first

choice for the 18-29 age group, who are more interested in career

opportunities and working for a global company and less concerned about pay

and job security than older workers. Competitive salary and job security were

the two most important factors for respondents.

Training:

Training is representing the key for vertical integration. Rolls Royce continue

to incorporate diversity and inclusion into everything they do. Diversity is

critical to achieving a high performance culture and is a key enabler of

innovation. They actively seek to embed diversity and inclusion in our

employee training, communications and cultural change program. The

commitment to nurturing talent is reflected in the fact that around 30% of

senior management started out as apprentices in its facilities. An effective

employee retention program many concerns, but it also goes beyond the

basics. The training and support provided from Day One sets the tone for the

employee’s tenure at the company and boosts job satisfaction. They

encourage our employees to improve their knowledge and enhance their

careers by providing them meaningful training and development. In 2016, they

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invested over £32m in employee learning, delivering over one million hours of

training.

Rewards:

Rolls Royce is known for paying above average wages. Also the company’s

benefits program is one of the most attractive in the retails industry. Along

with a competitive salary and bonus scheme, we offer an outstanding benefits

package. A generous workplace pension, 27 days’ annual leave, childcare

vouchers, occupational health services, an exclusive employee discounts

scheme and a Rolls-Royce wedding car are just some of the benefits

available to all permanent employees. Sharing the success with all employees

leads to a high level of motivation and commitment, resulting in a high

performance culture. Employees respond to appreciation at work, especially

when it’s expressed through recognition of their efforts because it confirms

their work is valued. Improving the benefits package and investing in the

offering will show employees that the company is investing in them. Improving

the benefits on offer will keep employees loyal, and as a result of this loyalty,

they will work harder. The better employees perform, the better the company

performs.

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Performance Management:

An important component of developing employees is a comprehensive and

well executed performance management system incorporating elements such

as regular one-to-one meetings, through to performance appraisals and

processes to manage underperformance.

Performance management is a well-established, all-encompassing term used

to describe the practice that drives decisions about performance,

remuneration, promotions, disciplinary procedures, terminations, transfers and

development needs within an organisation.

Performance management is a much broader concept than performance

appraisal or a disciplinary process. It aims to improve organisational,

functional, team and individual performances. Effective performance

management measures the progress being made towards the achievement of

the organisation's business objectives. It does so by planning, establishing,

monitoring, reviewing and evaluating organisational, functional, team and

individual performance.

Holistically, performance management may incorporate job design,

recruitment and selection, training and development, disciplinary procedures

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and counselling, career planning, compensation and benefits and

performance appraisals.

The components of the performance management system provide the

framework within which managers and employees operate.

A successful performance management system should:

1) incorporate performance improvement, development of teams and

individuals, and behaviour management to ensure productive working

relationships

2) have structures which support the effective functioning of the

performance management system. Ie. a performance management

policy as well as performance appraisal and disciplinary processes and

procedures

3) ensure that employees:

4) know and understand what is expected of them in their job role (i.e.

performance objectives and performance standards)

5) have the skills and knowledge required to deliver on these expectations

through implementing development plans and learning and

development activities

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6) are given feedback and an opportunity to discuss their work

performance

7) are rewarded for their performance through a reward and remuneration

strategy

8) are counselled for underperformance and/or behaviour which is out of

alignment with organisational values and/or inconsistent with

achievement of organisational goals

9) are supported by the organisation to achieve optimum performance.

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