examining the legal Environment

Running head: STAFFING 1

STAFFING 6

Planning an Organization’s Staffing

Khanh K. Nguyen

Capella University

September 30, 2019

From: HR Manager

To: CapraTek CEO

Date: September 30, 2019

Subject: Workforce Planning

Introduction

The future of any organization depends largely on its talents, that is, having the right number of employees to perform various organizational tasks. This calls for effective and appropriate workforce planning by the HR department in order to determine the organization’s talent requirements and how to acquire them. Workforce planning can be defined as “the process used by organizations to analyze the organizational talents needs and determine the steps required to prepare for future requirements” (Momin & Mishra, 2015). However, workforce planning is not an easy task due to numerous demographic changes witnessed in the current American labor force –something that calls for deep analysis of the labor market by the HR department.

Demographic Changes

CapraTek is one of the fastest growing companies in the American manufacturing sector. Currently, the company is planning to open a new manufacturing plant in New Jersey in its constant bid to expand the market share. However, the company’s HR department has a huge task of workforce planning in order to address the organization’s talent needs and requirements. Notably, the HR department at CapraTek is required to engage in the best recruiting and selection practices in the bid to identify quality of employees required to perform organizational tasks over a period of time. This will include hiring, training, and development of competent personnel to run the daily activities of the new manufacturing plant located in Jersey City, New Jersey.

The personnel HR department at CapraTek need to be aware of various factors affecting the labor force not only in New Jersey state but in the U.S. at large. Notably, in the efforts to plan on how to meet the company’s labor demands, the HR department should be able to analyze both the state’s labor market and statistical information impacting on recruitment and selection of employees to work for the new plant. Notably, multiple demographic changes have impacted on the American labor force and hence the need to address its various aspects and how it may affect the efforts to address the company’s talent needs (Krueger, 2017).

According to Dao, Furceri & Loungani (2014), New Jersey’s population growth rate is estimated to grow at 0.45% per annum to reach 9,380,200 people by 2028. This is way below the country’s target population growth rate of 8.2 percent. This means that there is a risk of decline in labor workforce due to declining fertility and aging workforce. The element of fertility rate in the state of New Jersey is declining meaning that there will be low labor force in the next 10 years. Age is also a demographic factor that determines the future of labor force in the state of New Jersey. According to Krueger (2017), “New Jersey has had slower growth rate than any other state in the U.S.” This means that the current labor force is aging –something that might be a challenge for CapraTek to acquire the required talent in future. However, the education level in the state have gone up by over 12 percent meaning that we still have skilled labor force. Finally, the number of female employees has gone up but the state laws are against children employment. Generally, this information should help the company to recruit and retain employees so as to address the projected shortage in labor force within the next 10 years.

Culture

The declining growth of labor force in New Jersey and United States at large presents a major challenge to employers. Notably, employers should strive as much as possible to make themselves as attractive to employees. This can be achieved by ensuring that there is a conducive working environment for workers. Hence, CapraTek should strive to develop a culture that will make the company the best employer –something that crucial in attracting and retaining employees. Fair treatment of employees is crucial where everyone enjoys equal opportunities within the organization. Proper communication and employee involvement is crucial to ensure that all employees are consulted when making major organizational decisions. Employee motivation is crucial in improving employee productivity and satisfaction. The company should recognize employee performance and reward them accordingly. Employee support is crucial in making the company attractive for employees since workers are shown care and compassion hence motivating to improve their performance (Wambugu, 2014). Finally, an attractive organizational culture should support learning –something that ensures employee professional growth and enhancement of their skills.

Production Workers

The approach used to estimate the number of production employees required by CapraTek in the next one year is as follows:

· Currently, the company has 200 production workers. The demand for our products are estimated to grow by 20 percent. Then the number of additional production employees required is 200*0.2=40. Notably, 20 production workers are expected to retire by next year and there is 10% percent turnover rate in the next one year. This means that the total number of production employees to leave the company is 200*10=20 workers. During training 5 percent of candidates might not be able to complete the training. That is 0.05*80=4 employees. Thus, the total number of production employees to be recruited and hired is 40+20+20+4= 84.

References

Dao, M., Furceri, D., & Loungani, M. P. (2014). Regional labor market adjustments in the United States (No. 14-211). International Monetary Fund.

Krueger, A. B. (2017). Where have all the workers gone? An inquiry into the decline of the US labor force participation rate. Brookings papers on economic activity, 2017(2), 1.

Momin, W. Y. M., & Mishra, K. (2015). HR analytics as a strategic workforce planning. International Journal of Applied Research, 1(4), 258-260.

Wambugu, L. W. (2014). Effects of Organizational Culture on Employee Performance (Case Study of Wartsila-Kipevu Ii Power Plant). European Journal of Business and Management, 6(32).