The Human Resource department has to collaborate with other departments in the company to determine the staffing plans. This sometimes is met with resistance as other departments are working on other projects. Human Resources cannot make the decision alone as the staffing plans MUST reflect the current needs and project the anticipate needs or requirements in the future. The H.R team must lead the strategic planning in determining the staffing requirements of the company going forward. This planning requires input from the other departments to analyse the state of the economy, financial state of the company and the project growth and or decline in the industry.
When you are involved in the staffing process, public opinion plays a critical role in the staffing process. For example, if you are in an industry that is perceived as not being a solid opportunity for employees, you may not have many applicants to choose from. Most employees want to be an industry that is growing and on the way up. E.g.. Most employees or prospective employees look forward to working for a company that is recognized for being a leader in their field mainly because those types of companies are perceived as ones who treat their employees better both from an ethic and financial stance.
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Regardless of the industry, education has a large impact on the staffing process. In some cases, applicants must go through years of training before they can be hired. If fewer people choose to go through this educational path, it can lessen the talent pool. For example, if you need employees in a highly technological field, you might only be able to hire people with a specific degree in college. This could make it hard to find enough qualified applicants from which to choose. E.g. Slot technicians, even though they possess their degrees, they still have to be trained by Supreme Ventures before they are able to perform any technical work.
In some cases, the economy can also play a large role in the staffing process for your company. For example, if the economy is poor and many other companies have laid off employees, you might have a larger-than-normal talent pool to choose from. When this happens, you may have to spend more resources than normal making sure you find the right person. You may need to have many more interviews than normal. Conversely when the economy is doing well and there is a lower unemployment rate and employees are secure in their jobs, there are fewer people to choose from to fill vacancies, unless the compensation package is significantly greater.
The introduction of new government workplace regulations is an external factor that requires human resources to make sure the company is in compliance. Regulations can influence how a company goes about hiring, training, compensating and even disciplining its workers, and a misstep could result in sanctions against the company or even lawsuits filed by employees, prospective employees, vendors and customers. E.g. The safety act, The Docks Regulations, implemented in 1968, is the oldest safety regulations protecting the safety, health and welfare of Jamaican workers. This creates the need for companies to be on the ball constantly in order to be in compliance. There is also a new occupational and safety act being debated in parliament by the Ministry of Labor and Social Security that will significantly affect the way all companies are operating in Jamaica. The adverse effect of this is that H.R will be face with new challenges when hiring.
The culture of a business is the norms that have been practiced since inception or that were implemented after inception and practiced over the years. If the business culture is to hire from a more mature audience then it poses a problem for human resources. E.g. the business culture has been to hire persons in the thirty to thirty five age groups; however the position being hired for (entertainer), presently calls for a younger person. This puts a damper on H.R's plans and they have to return to the drawing board.
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It costs money in relocation fees to bring in qualified employees from out of a company's immediate geographic location. Even transferring employees from other corporate offices can be expensive. The preference for human resources professional is to reduce costs by hiring candidates from the immediate geographic area. But when the talent pool in the local labor force does not match the needs of the company, that can cause human resources plans to change.
Available Labor Pool
A primary function of human resources departments is to maintain adequate staffing levels. An external factor which influences the ability to recruit qualified candidates is their availability. If the company needs to hire individuals with highly specialized skills, it may have difficulty locating and attracting suitable candidates, especially if the same skill sets are in demand throughout the entire industry.
The budgets of the various departments being hired for must be taken into consideration by the human resources group. This sometimes affects the type and quality of employee that is hired in the end. For example: A new manager of sales and promotions must be hired, a position that government policies dictates must possess a masters degree and the acceptable compensation is One point five million per annum, however the department's budget is only one million dollars. In the end they hire a college graduate with no experience and only a bachelor's degree, who is willing to take the job just because it's an income.
The type of competition that the human resource department faces is in many ways very different when compared with the type of competition faced by other departments. In order to locate the right people for the job, human resources are competing with the human resource department of every other company, because, everybody wants to employ the cream of the crop.
Human Resources are the lifeblood of all organizations and the proper selection, hiring, retention and management of the employees can singlehandedly determine the future of the company.
As we have already seen, there are many factors affecting the operations of the department. The state of the economy, the education of the workforce, the reputation of the company in the industry as well as the perceived value and compensation being offered in the industry all affect the manner in which the HR department endeavors to meet and exceed the objectives as determined by the board of directors.