Ch 5: Forecasting and planning Flashcards
What is workforce planning?
The process of predicting employee needs, assessing current labour force and market, and identifying the gaps between skills needed and skills available
What are the steps of the workforce process?
Identify Business strategy
Define the firm’s talent philosophy and strategic staffing goals
Forecast Labour Demand and Supply
Identify Gaps (Projected surplus or shortage)
Develop action plans for gaps
Monitor, evaluate ad revise forecasts and action plans
What major factors (6) affect forecasting labour demand (external factors?
Seasonal Forecasts
Interest Rates Forecasts
Currency Exchange rate Forecasts
Competition-Based Forecasts
Industry and Economic Forecasts- GDP, consumer confidence
Legal Factors
Internal Forecasting tools
Ratio Analysis- uses staffing ratio- workers:output
Trend Analysis
Scatter plot- showing how variables are related- revenue, staffing number
What is judgement analysis?
Using experience and knowledge to predict employement needs
Return on Investment Analysis
estimates the ROI from adding a new position based on the costs and outcomes resulting from that new hire
What are the internal factors affecting labour supply
Losses due to promotions, demotions,transfers, resignation, retirements
Gains from promotions, demotions, transfers
What is the transition analysis?
quantitative technique used to analyse internal labour markets and forecast internal labour supply
What are 4 internal labour market forcasting methods?
Judgement
talent inventories
Replacement charts
Employee surveys
What are two methods used in forecasting the external Labour Market
Observations and experience
Labour market Stats
How do you resolve labour shortages?
Temp: fill with contingency workers, give incentives to hire- stock options, bonus after working for period of time
Permanent: Reduce demand- resort to automation, increase amount of qualification (not ideal)
How to resolve labour surpluses?
Temp: Let go of contingent workers, salary cuts and hour reduction
Permanent: Retraining employees to fill other jobs
What are the 3 questionns to be answered in staff planning?
How many should we recruit: staffing yields, hiring yields
What resources do we need: workload-driven and staffing efficiency forecasting
How much time it will take: continuous hiring, batch recruiting
What make up external hiring costs
Advertising expenses
Agency and search firm fees
Recruiter and applicant ravel costs
Internal costs
Internal advertising
Relocation
Internal recruiter costs
