Human resource

management (HRM)
Internal & external factors influencing HR planning
Both internal and external factors
influence human resource planning.

Internal factors are those within the

control of the organization, such as
the remuneration to its staff.
Internal factors
influencing HR planning
 Size of the - More recruitment

organization -
-
More training
More redundancies
- More appraisals etc.
Larger firms= Larger HR planning
 Strategic
direction of the - Plan to recruit more workers
organization - Internal promotion to seniors
- Performance management etc.
Growth = More people needed
 - A clear organizational structure
Organizational helps workforce planning.

structure - For example: HR manager can

Hierarchy = Faster planning identify vacant positions and
directly address these gaps
Finances of the - New employees= new salaries
organization - Training and development
requires finances
More finances = Better planning
 - Higher productivity enables less
amount of workforce

Motivation
- Motivation in employees
HIgher productivity
decreases labour turnover
Corporate - Working hours

culture -
-
Flexitime
Teamworking
- Job sharing
Working atmosphere
External factors
influencing HR planning
External factors are those that are
beyond the control of the
organization, such as the legal
minimum wage or other
employment legislation.
External factors
- Demographic change
- Change in labour mobility
- Immigration
- Flexi-time
- Gig economy
 Demographic
change -
-
Average age of the population
Gender distribution
Population trends - Educational levels
Demography is the study of population and
population trends. Demographic change - Average household income
refers to variations in the structure of the
population that influence human resource - Official retirement age
planning. This might include developments
and trends in the population, such as:
In many high income countries, there
has been both a lower birth rate and
lower death rate, along with increased
longevity.

Labour mobility and labour productivity

may both fall, as younger workers tend
to be more mobile whilst elderly
workers may be less productive.
 Labour mobility measures the extent

Labour
to which workers have the ability
and willingness to move:

- between geographical locations

mobility - and/or occupations for their

employment
Geographical mobility
- Geographical mobility refers to the ability and willingness of employees to relocate to
another location or country for work reasons. Some jobs require their employees to
travel long distances for work purposes, such as delivery truck (lorry) drivers, pilots, and
sales executives.

- Geographical immobility occurs due to the unwillingness of workers to move to another

area. Such impediments to geographical mobility include: family ties to a geographic
location, relocation costs, lower wages and salaries, fewer benefits, higher property
prices, or higher costs of living in the new location.

- Labour mobility is important for organizations and economies. In general, greater labour
mobility means that workers are able to find better paying jobs in order to improve
people’s standards of living. Businesses also benefit because labour productivity should
improve as a result of improved morale and motivation.
Occupational mobility
- Occupational mobility refers to the ability and willingness of employees to do another
job or pursue a different career. Occupational mobility can be improved if employees
have the necessary qualifications, experience and skills to move from one job to
another. Occupational immobility occurs due to impediments such as rules and
regulations.

- All professional careers have their own standards, such as education requirements
and training. For example, the supply of doctors, accountants, and lawyers is very
limited due to the specialized training and licensing requirements in order to work in
these professions. Teachers need a Post-graduate Diploma in Education (PGDE),
degree in education, or other similar qualification in order to work in schools.
 Immigration - In an increasingly globalized
world, it is not uncommon for
Migrant workers are people who move citizens of one country to
to other locations or countries in
temporarily work in another
search of job opportunities. For
example, many people from rural country. These citizens, known
areas move to the cities in search of as "expatriates", may be
employment opportunities as well as attracted by higher salaries or
better-paid jobs. favourable working conditions
in overseas countries.
The influx of migrant workers from overseas
can provide many business opportunities:
- Easing of skills shortages - Hiring skilled migrants has two advantages to a business. First, they take on the jobs that cannot be
filled by domestic workers, perhaps due to a lack of willingness or skills (ability). Secondly, since a skills shortage is prevented,
the pool of migrant workers helps to keep wage costs down.

- Flexible work structures - Businesses are able to open for longer hours due to workforce flexibility. Migrants add to the supply
of staff willing to work part-time or shift work. This is good news for businesses which have outlets that open 24-hours a day,
such as 7-Eleven convenience stores, bars, petrol (gasoline) stations, and hotels.

- Marketing opportunities - Migrant workers are likely to have different habits and tastes from the mass population. This can
provide niche marketing opportunities, such as the provision of cultural goods and services. Examples are as varied as Polish
beer being sold in Britain, to Malaysian spicy noodles in Finland, or Chinese 'dim sum' cuisine in Denmark.

- Personnel opportunities - The supply of migrant workers allows a business to employ a more flexible and dynamic workforce.
They may bring new ideas, experiences and ways of thinking. Skilled migrants can pose a threat to less-skilled workers in the
country. This form of competition can raise the standard of skills in an economy as domestic workers update their skills to retain
their own jobs.

- Net social benefits - The majority of migrants are of working age. This means they are likely to pay income tax (good news for
the government and the general public). It also means that they have income to spend on goods and services (good news for
marketers).
 - Flexitime empowers workers as
Flexi-time they have the autonomy to
Flexi-time is a form of flexible work practice that
complete their work in their
enables employees to work a set number of core own time, when it best suits
hours per week, often at the office during peak
periods of the day and/or week. The employees then them. It also creates flexibility in
have the flexibility to choose when they work during their personal schedule,
the rest of the week; so long as their work gets
completed. allowing parents to raise their
young children, for example.
Many organizations encourage their employees to Hence, flexitime can help to
maintain a work-life balance. The belief is that
supporting the well-being of the workforce has direct improve morale and labour
benefits to the employer in the long run. To do this, a productivity.
commonly used human resource strategy is to allow
employees to adopt a variable work schedule so they
can have greater control over when they begin and
end work.
 Examples of gig workers include:

The gig economy -

-
Accountants
Babysitting and child minding services
- Cleaners
- Couriers / drivers (e.g., DPD, DHL, FedEx)
The gig economy (sometimes referred to as the
- Food delivery (e.g., Uber Eats, Deliveroo)
on-demand economy) refers to labour markets in
- Gardeners and landscapers
which workers are given short-term or one-off
contracts, such as freelance work, rather than
- Management consultants
long-term or permanent jobs. Gig workers (sometime
- Massage therapists
referred to as platform workers) are on-call, - Mechanics (car repairs and maintenance)
independent contractors who enter into formal - Painters and decorators
agreements with on-demand businesses to provide - Personal shopper
certain services to the firm's customers. This is - Pet carers, such as dog walkers
usually done through an online platform or mobile - Photographers
app. Gig workers are paid for each individual job (or - Plumbers
"gig") they do, instead of traditional payment methods - Translation services
such as wages per hour or salaries per month. - Taxi drivers (e.g., Uber, Bolt, Lyft)
Essentially, workers in the gig economy are more like - Tutors
entrepreneurs (self-employed) than traditional - Website designers
employees of a business.
 Advantages and disadvantages of the gig
economy
Advantages of the gig economy

- Workers enjoy freedom and flexibility as they can choose which jobs they want, as well as when and how long to work for. This is ideal for people who
prefer part-time employment.
- There is the potential to earn a significant amount of income as gig workers often work for multiple businesses on a job-by-job basis.
- The flexibility also enables some people to have a better work-life balance, such as working parents of young children.
- Businesses can gain from reduced costs of production as they do not need to hire so many full-time workers (along with the pay and benefits
associated with full-time employment) and office space.
- The lower costs of production for businesses mean they can provide more price-competitive goods and services to customers.

Disadvantages of the gig economy

- A gig economy reduces the need for full-time workers in the traditional economy, possibly limiting people's potential for career development.
- Gig workers do not have fixed employment contracts, so may lack job security and a stable income. This could mean that without sufficient
jobs/projects, gig workers are not guaranteed to earn even the national minimum wage. There is also pressure for gig workers to continually look for
the next job especially as competition for gigs has increased.
- As self-employed people, gig workers have set-up costs of their own, such as the need to purchase their own bicyles or motor vehicles for
delivery-related services.
- The lack of a full-time employment contract also means gig workers may miss out on employee rights and benefits, such as paid sick leave, holiday
pay, redundancy pay, and maternity leave. They also often miss out on the social aspects of traditional work with colleagues, managers, and customers.
- Workers and customers who are not tech-savvy or who do not use online services, such as mobile apps, may be left out despite the potential benefits
of the gig economy.
 - Workforce planning needs to
consider the employment
legislation of the country, such
Top Tip! as equal opportunities,
minimum wage legislation, and
In addition to all factors.. the storage of employee data
Laws.. and personal records.
Reading and reflection task

London receptionist 'sent home for not wearing heels'

Should anti-tattoo discrimination be illegal?

Is it legal to force women to wear high heels at work?