Read Part 1 of Strategic Human Resource Planning here
In selecting and maintaining the ideal personnel for the organization, it is wise for the HR management to consider deciding on which IT systems that will, according to a set criteria, select the best matching applicants who will spearhead the development of the company’s competitive advantage.
This may also assist the company in determining the potential employee turnover rate each year. Even though companies need to aim at avoiding high turnover rates for the sake of their reputation and skill loss, turnover each year is inevitable due to retirement, structural adjustment issues, maternity issues, just to name a few.
However, for management to appreciate the value of low employee turnover rates, and thus plan strategies to prevent this, they need to thoroughly understand the HR process, and how it contributes to the development of the organization. The 5-P model may be used to understand the operations of the organization, and how to improve the human resource function. In so doing, HRM can become more efficient in formulating strategies that will recruit the best employees to tailor-fit the organization’s purpose.
When considering employee turnover rates, management must find out why skilled personnel constantly leave the company, what is causing employees to lose motivation and interest in their jobs, who is likely to retire or take maternity leave in the coming year, what is the cost: benefit of developing and cross training employees as opposed to hiring over qualified and experienced new hires. Formulating answers to such questions will assist in developing the ideal strategy and policies that will minimize mistakes and reduce high employee turnover rates.
Employees need to be compensated for what they are worth in order to discourage them from leaving the organization voluntarily. However, due to the fact that employees are not likely to produce 100% productivity rates, it is strongly suggested that compensations that are generally lower than an employee’s potential input to balance out the deficit in productivity levels. This knowledge will ensure that, during the planning phase, management considers the balance that needs to be struck between relevant employee hires and the stipulated budget applied to payroll.
To justify the consideration of lower salaries and benefits, HRM needs to plan in advance how the organization intends on motivating the employee to avoid low morale and to keep optimum operational levels despite the fact that the workers may never actually produce 100% productivity. Such considerations will enable HR to plan the structure of hiring tools, best assess the personalities and aptitudes of the new hire, and determine whether they will fit in with the culture of the HR process and organization.
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Kleiman, L., S. (2011). Human resources information systems. Encyclopedia of Business. 2nd. ed. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Gov-Inc/Human-
Kleiman, L., S. (2011). Human resources planning. Encyclopedia of Business. 2nd. ed. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Gov-Inc/Human-Resource-Management-HRM.html
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development: Strategies for Small Businesses. Retrieved from http:// sbaer.uca.edu/research/asbe/2004-fall/08.pdf
Guest : Linda Chingosho
This article was written by Linda Chingosho, an Independent Business and Management Consultant based in Pretoria, South Africa. Linda is an MBA (Project Management) final year student with Walden University (Online) and also possesses an HND in Computer Studies (Management of Information Systems). She has lived and worked in 3 continents, successfully applying her management, scholarly, and training skills to promote various industries and individuals across the globe.
Linda can be contacted on 0843217443, or by email to firstname.lastname@example.org.