Forecasts in HR Planning

Forecasting
Supply of
Inside
Candidates
Forecasts in HR Planning
Forecasting
Supply of Inside
Candidates
Determining staffing
needs satisfies only half
the staffing equation.
Estimating the likely
supply of both inside
and outside candidates
is second half of the
equation.
Forecasts in HR Planning

Forecasting
Supply of Inside
Candidates
The main task is
determining which
current employees
might be qualified
for the projected job
openings.
Forecasts in HR Planning

Qualifications (or
skills) inventories
Inventories are records
listing employees
unique data to be used
in determining inside
candidates for
promotion.
Forecasts in HR Planning

Types of
Qualifications (or
skills) inventories
There are two types
of inventories:-
• Manual System
• Computerized
Records
Forecasts in HR Planning

Manual System
Department
managers or owners
of smaller firms often
use manual system to
track employee
qualifications and
skills.
Forecasts in HR Planning

Manual System
The manual system
has personnel
inventory and
development record
form compiles basic
professional
information of each
employee.
Forecasts in HR Planning

Manual System
The Professional
information includes
education, company
sponsor course taken,
career interest,
language, desired
assignment and
skills.
Forecasts in HR Planning

Personnel
Replacement
Charts
Company records
showing present
performance and
promotability of
inside candidates for
the most important
positions.
Forecasts in HR Planning

Position
Replacement
card
A card prepared for
each position in a
company to show
possible replacement
candidates and their
qualifications
Forecasts in HR Planning

Computerized
Skills
Inventories
Forecasts in HR Planning

Computerized
Skills Inventories
Larger firms
obviously can’t track
the qualifications of
hundreds or
thousands of
employees manually.
Forecasts in HR Planning

Computerized
Skills Inventories
Larger employers
therefore computerize
employee’s
information, using
various packaged
software systems
Forecasts in HR Planning

Computerized
Skills Inventories
Such softwares help
management to
anticipate the human
resource shortages,
and facilitate making
HR, recruitment and
training plans
Forecasts in HR Planning

Computerized
Skills Inventories
Increasingly, the
organizations also
link computerized
skills inventories
with their other
human resources
information systems
Forecasts in HR Planning
Computerized
Skills Inventories
The usual process is
for the employee,
supervisor & human
resource manager to
enter information about
the employees
background,
qualifications,
experience, and skills
via the system
Forecasts in HR Planning
Computerized
Skills Inventories
Data include items:-
Qualification
Work experience
Certifications
Targets achieved
Product knowledge
Level of familiarity
with the employer’s
product lines or
services etc.
Forecasts in HR Planning

Computerized
Skills Inventories
When a manager
needs a person for a
position, he or she
uses “key words” to
describe the position
specifications
Forecasts in HR Planning

Computerized
Skills Inventories
The computerized
system then produces
a list of qualified
candidates having
matching skills based
on given key words.
Forecasts in HR Planning

Forecasting the
Supply of
Outside
Candidates
Forecasts in HR Planning

Forecasting the
Supply of Outside
Candidates
If there won’t be
enough inside
candidates to fill the
anticipated openings (or
you want to go outside
for another reason), you
will turn to outside
candidates
Forecasts in HR Planning

Forecasting the
Supply of Outside
Candidates
Forecasting HR supply
depends first on the
manager’s own sense
of what’s
happening in his or her
industry and locale
market.
Forecasts in HR Planning

Forecasting the
Supply of Outside
Candidates
Then, they will
supplement their
observations and
data with more
formal labor market
analyses.
Forecasts in HR Planning

Forecasting the
Supply of Outside
Candidates
Identify PESTEL
factors:-
Political
Economic
Social
Technological
Environmental
Legal
Forecasts in HR Planning
Forecasting the
Supply of Outside
Candidates
Use environmental
analysis data:-
-Census, SBS
-Employer’s
associations
-Trade journals
-Research media
-Information on
competitors
Forecasts in HR Planning
Talent Management
and Predictive
Workforce
Monitoring
Applying a talent
management
philosophy to HR
planning requires being
more proactive. It
requires paying
continuous attention to
HR planning issues.
Forecasts in HR Planning
Intel Corporation
Example
Intel conducts
semiannual
Organization
Capability
Assessments. The
staffing department
works with the firms
business heads twice a
year to assess
workforce needs both
immediate and up to 2
years in the future.
Action Plan in HR Planning

Developing an
Action Plan to
Match Projected
Labor Supply
and Demand
Action Plan in HR Planning

Developing an
Action Plan
Action plan can be
developed in order to
match projected labor
supply and demand.
HR planning should
logically conclude in
a workforce action
plan.
Action Plan in HR Planning

Developing an
Action Plan
This lays out:-
Employer’s projected
HR supply-demand gaps
&
Staffing plans
for filling necessary
positions.
The staffing plan should
identify the positions to
be filled.
Action Plan in HR Planning

Resources for
Developing an
Action Plan
Action plan will need
resources that may need
to implement the
staffing plan.
Action Plan in HR Planning

Resources for
Developing an
Action Plan
Resources might
include:-
Advertising costs
Employment agency
Recruiter fees,
Relocation costs Travel
expenses Interview
expenses
Action Plan in HR Planning

The Recruitment
Yield Pyramid
The arithmetic
relationships
between recruitment
leads and invitees,
invitees and interviews,
interviews and offers
made, and offers made
and offers accepted.
Action Plan in HR Planning
The Recruiting
Yield Pyramid
The arithmetic
relationships between
-Recruitment leads
and invitees
-Invitees and
interviews
-Interviews and offers
made
-Offers made and
offers accepted.
Action Plan in HR Planning

The Recruiting
Yield Pyramid
1-The ratio of offers
made to actual new
hires is 2:1

2-The ratio of
candidates interviewed
to offer made is 3 to 2
Action Plan in HR Planning

The Recruiting
Yield Pyramid

3- The ratio of
candidates invited for
interviews to
candidates
interviewed is about
4 to 3
Action Plan in HR Planning
The Recruiting
Yield Pyramid
4- Finally, the firm
knows that of six
leads that come in
from all its recruiting
sources, it typically
invites only one
applicant for an
interview a 6-to-1
ratio.