all of topic 2 : HR (SME)

• Effective human resource management

  • Ensures that the organisation has the right people in the right roles with the right support and with opportunities to succeed as well as a positive work environment
  • Leads to higher productivity, improved efficiency and a competitive advantage
• Staff as an asset

  Staff bring knowledge, skills, and expertise to the business
• Staff as a cost

  Hiring and training workers<|>Managing workers as managers have to be hired<|>Paying the salaries and wages staff<|>Additional benefits, such as company cars, pensions, healthcare etc<|>Letting workers go often requires (redundancy payments)
• Human resource planning focuses on identifying how many and what kind of employees are needed
• How employees will be

  • Recruited and deployed (used)
  • Developed and trained
  • Motivated, managed and led
• Careful planning and objective monitoring of employee performance is a key element of effective financial and operational control
• Human Resources Metrics that are Useful to a Business

  • Labour Productivity
  • Labour Turnover
  • Labour Retention
  • Absenteeism
• Labour Productivity


  A measure of output per employee over a specified period of time
• Labour Turnover


  Measures the proportion of employees leaving a business during a specific time period
• Labour Retention


  Measures the proportion of employees remaining with a business during a specific time period
• Absenteeism


  A measure of the proportion of staff absent from work during a specific period of time (e.g. a day, week or month)
• Factors Within a Business which may Impact Human Resources Planning


  • Business Objectives & Strategy
  • Financial Situation
  • Organisational Structure
  • Labour Relations
  • Organisational Culture
• Business Objectives & Strategy


  The business's goals, objectives, and long-term plans influence the required workforce skills, competencies and size
• Financial Situation


  Budget constraints may influence decisions related to hiring, training, pay and benefits
• Organisational Structure


  Changes in the organisational structure may require changes to workforce planning such as redeployment, redundancy or additional recruitment
• Labour Relations


  The relationship between managers and workers, and whether workers are members of trade unions can have a significant impact upon the workforce planning process
• Organisational Culture


  The organisational culture may include a strong work life balance resulting in a higher likelihood that additional workers will be recruited when the demand is there
• External Factors that Influence Human Resource Planning

  • Economic conditions
  • Labour market
  • Technological advancements
  • Legal and regulatory environment
  • Social and cultural factors
  • Political factors
  • Industry-specific factors
  • Competitive landscape
• Economic conditions


  The state of the economy, including factors such as economic growth, inflation, and unemployment rates
• Labour market


  The supply of suitable employees and the impact of factors such as skills shortages, labour mobility and immigration
• Technological advancements


  Rapid technological change can disrupt industries and job roles, affecting HR planning
• Legal and regulatory environment

  Laws and regulations related to employment, labour relations, health and safety, immigration
• Social and cultural factors


  Social and cultural factors such as societal values and demographic trends
• Political factors


  Changes in government policies, political stability and geopolitical factors
• Industry-specific factors


  Different industries may face unique external factors
• Competitive landscape


  The environment in which a business competes for labour and the actions and strategies of competitors influence workforce planning
• Recent changes in the working environment
• Recent Trends in Workplace Change

  • Remote, Hybrid and Flexible Working
  • Gig Economy and Freelancing
  • Emphasis on Work-Life Balance
• Remote, Hybrid and Flexible Working

  During the Covid pandemic many organisations moved to remote work setups to ensure business continuity and the safety of employees<|>Employees worked from home and many continue to do so<|>Flexible work arrangements including flextime and compressed workweeks have also become more common<|>Many companies have adopted hybrid work models
• Gig Economy and Freelancing


  More individuals are opting for freelance or contract work<|>Digital platforms have made it easier for people to find freelance opportunities and connect with clients<|>Workers have flexibility and autonomy in choosing projects and working hours
• Emphasis on Work-Life Balance

  Employees are seeking more flexible work arrangements to better balance their work and personal lives
• Reasons for Changes in Working Patterns

  • Remote, Hybrid and Flexible Working
  • Gig Economy and Freelancing
  • Emphasis on Work-Life Balance
  • Changes in occupations
• Remote, Hybrid and Flexible Working

  1. During the Covid pandemic many organisations moved to remote work setups

  2. Employees worked from home and many continue to do so

  3. Flexible work arrangements including flextime and compressed workweeks have also become more common

  4. Employees have greater control over their schedules

  5. Many companies have adopted hybrid work models
• Emphasis on Work-Life Balance

  Employees are seeking more flexible work arrangements to better integrate their personal and professional lives<|>Employers have implemented policies that support work-life balance, such as wellness initiatives, family-friendly policies and mental health resources
• Changes in occupations


  • Rapid technological change has meant that some jobs have experienced significant reductions in demand
  • There is an increasing demand for software programmers and digital marketers
• Changes in Working Preferences

  • Workers are increasingly moving away from the traditional pattern of a full time, continuous career with the same employer
  • There are numerous ways in which employees are making changes to their working patterns
• Job sharing


  Two or more employees work at different times to complete the tasks required for one job<|>Work is typically shared on a weekly basis, with job sharers communicating regularly to ensure tasks are not missed<|>This provides employees with flexibility whilst the employer benefits from the task being completed
• Career break


  Employees decide to stop working for a period of time before returning to work in the same career<|>New parents often take career breaks until children are old enough to commence formal education
• Sabbatical


  A formalised career break, frequently used by employees to study or engage in other developmental activity such as travel
• Downshifting


  A senior employee relinquishing their position to move to a lower-paid position with fewer responsibilities<|>Downshifting may occur when individuals change career or as workers approach retirement