Week 2 Discussion

South University

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HR Planning The supply and demand in the labor market is a dynamic environment and over the next few decades will certainly create a mismatch between jobs and workers. Prior to the 2009 recession, the concern was over a low supply of skilled workers impacting economic growth. As the economy recovers, the same concern exists that the lack of skilled workers to fill jobs may slow recovery. The challenge is having an adequate number of skilled workers with the right mix of skills to meet the changes in the labor market.

Census data indicate that Millennials entering the labor market exceed the number of Baby Boomers exiting the workforce. By 2020, the trend is projected to reverse as those entering the labor market will be smaller by 15 percent than those retiring. In addition, geographic shifts in population are generating concerns over having a sufficient number and level of skilled workers located where the job market is in high demand.

Trends in the labor market are changing, but one example that underscores the need for HR effective forecasting is the great benefits of forecasting. It reduces HR costs, improves organizational flexibility, provides input to the Macro Business Forecasting Process, and ensures a proper focus that organizational demand for labor can be met by supply both today and tomorrow. Therefore, it is reasonable to conclude that HR forecasting is a major focus for the HR planning process.

HR planning process includes three forecasting activities.

The first activity is Transaction-based forecasting where an organization initiates an internal change that would require tracking the change.

The second activity is Event-based forecasting which is focused on changes within the external environment.

The third activity is Process-based forecasting which is focused on the flow or sequencing of several work activities such as inventory efficiencies.

Additional Materials

From your course textbook, Managing Employee Performance and Reward (2nd ed.), read the following chapters:

Shaping Behaviour

Reviewing and developing employee performance

Base pay purpose, structures and options

South University

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Developing position-based base pay systems

From the Internet, read the following articles:

Fry, R. (2016). Millennials overtake baby boomers as America’s largest generation. Pew Research Center. Retrieved from http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/

Modestino, S. A. (2010). Mismatch in the labor market: measuring the supply of and demand for skilled labor in New England. New England Public Policy Center. Retrieved from https://www.bostonfed.org/- /media/Documents/Workingpapers/PDF/neppcrr1002.pdf