Module 2: Workforce Planning

and Employment

© SHRM 2-1
 Internal Workforce Planning

• Identifies human • Organization analyzes

capital needs. its workforce and
• Provides qualified prepares for future
individuals for jobs needs.
in the organization. • Forecasts future
conditions and
identifies gaps
between current and
future staff.

Workforce
Staffing
planning
© SHRM 2-2
 Trend and Ratio Analysis

Determines the relationship between two variables.

Year Business Factor Labor Productivity HR Demand

(sales in millions) (annual sales per (number of employees)
employee)
1 $3.613 $11,120 325
2 $3.748 $11,120 337
3 $3.880 $12,520 310
4 $4.095 $12,520 327
5 $4.283 $12,520 342
6 $4.446 $12,520 355

© SHRM 2-4
 Trend Analysis

Plots the number of employees for the last six years

and projects the trend out for two more years.
380

370

360

350

Number of 340
Employees 330

320

310

1 2 3 4 5 6 7 8
Years
© SHRM 2-5
 Turnover Analysis

• Most often expressed using an annualized

formula.
• Calculated by dividing the number of separations
per year by the average number of employees per
month.
• 65 separations per year ÷ 225 average employees
per month = 28.9% turnover.
• May also be calculated quarterly and used to
project the annual turnover.

© SHRM 2-6
 Flow Analysis

Projects future movement.

Inflow Current Outflow

Staff

Promotions 5
Resignations 13
Transfers 5 Demotions 0
Promotions 4 Retirements 4
New hires 15 Terminations 3
Recalls 10 Layoffs 15

Total 34 Total 40
© SHRM 2-7
 Demand Analysis Techniques
SPHR only
Project the number of employees and the types of
skills needed for the future.

• Managerial estimates
Judgmental
• Delphi technique
forecasts
• Nominal group technique

Statistical • Regression analysis

forecasts • Simulations

© SHRM 2-8
 Job Analysis and Employee Jobs

Job description

Job Employee
analysis Job specifications job

Job competencies

© SHRM 2-9
 Job Analysis Uses

Career paths/
succession
Recruiting planning Organizational
design

Affirmative action
plan Performance
standards
Job
analysis Performance
Legal defense
appraisals

Time
Compensation
management/
administration
Training goal setting

© SHRM 2-12
 Internal Recruitment Sources

Job Job
posting bidding

Skill banks
and skill Employee
tracking referrals
systems

© SHRM 2-16
 External Recruitment Sources

Labor unions and

Former employees, third-party sources
previous applicants, Trade and professional
and walk-ins associations

Nontraditional labor
pools The Internet

Minority recruiting Media advertising

Employee databases Educational recruiting

School-to-work programs
© SHRM 2-17
 Recruitment Effectiveness

• Short-term • Long-term
– Time to recruit – Performance of hires
applicants – Turnover
– Selection and – Absenteeism per hire
acceptance rates – Training costs
– Cost per applicant
hired
– Quantity and quality
of applicants
– EEO implications

© SHRM 2-19
 Selection Process

Selection

Step 1: Analyzing application forms

Step 2: Interviewing

Step 3: Testing and background investigation

Step 4: Contingent job offer

Step 5:
Employment
offer

© SHRM 2-23
 Employment Contracts

• Agreement between employer and employee

that explains the employment relationship.
– Express contract is based on oral or written
words.
– Implied contract results from actions or
conduct.
• Employment-at-will is presumed if a written
employment contract does not exist.

© SHRM 2-33
 Retention

• Provide clear and consistent job

expectations.

• Provide clear and fair supervision.

• Provide training and growth

opportunities.

• Respect and recognize employees.

• Reward employees fairly.

© SHRM 2-34
 Organizational Exit

• Manages the way people • Management should

leave an organization. document the criteria
• Layoffs are based on: used to make layoff
– Skills. decisions.
– Work record. • Separation should be
– Seniority. considered a termination
if there is no chance of a
– Disparate impact
implications. recall.
– Legal considerations.

© SHRM 2-35
 Exit Interviews

• Gain candid • Exit form may be

information from used to collect
departing employees. information.
• Are conducted most • Comments are
often when typically kept
terminations are confidential.
voluntary. • Assurance may be
• Are conducted by a given that remarks
neutral party. will not be shared
with a supervisor.
© SHRM 2-36