Factors Affecting Human Resources
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Government Regulations The introduction of new government workplace regulations is an external factor that requires human resources to make sure the company is in compliance. Regulations can influence how a company goes about hiring, training, compensating and even disciplining its workers, and a misstep could result in sanctions against the company or even lawsuits filed by employees, prospective employees, vendors and customers. An example is the Americans with Disabilities Act, which in many cases created the need for companies to modify their workplaces to accommodate workers with disabilities. Labor Force It costs money in relocation fees to bring in qualified employees from out of a company's immediate geographic location. Even transferring employees from other corporate offices can be expensive. The preference for human resources professional is to reduce costs by hiring candidates from the immediate geographic area. But when the talent pool in the local labor force does not match the needs of the company, that can cause human resources plans to change. Available Labor Pool A primary function of human resources departments is to maintain adequate staffing levels. An external factor which influences the ability to recruit qualified candidates is their availability. If the company needs to hire individuals with highly specialized skills, it may have difficulty locating and attracting suitable candidates, especially if the same skill sets are in demand throughout the entire industry. The company's geographic location may also be a factor, as it may need to focus its recruiting efforts outside the region if the labour pool is not large enough. Company Budgets The human resources department needs to work within the budgets of the various departments it is hiring for, and that can limit the kind of employees that can be hired. If the sales department needs a new vice president of sales in a field that averages $100,000 per year in compensation, but the budget only allows for $80,000 per year, then that limits the kind of employee the human resources group can hire. The sales department may have to accept a vice president who does not have all of the qualifications the company is looking for.
Bad Planning
The human resources department works with the managers of all of the other departments to create staffing plans that will sustain the company and allow for future growth. But when staffing projections are not accurate, the plans of the human resources department are affected. Bad planning by departmental managers, such as not projecting how many qualified engineers the production department will need in the coming year, can cause the human resources department to have to scramble to meet the company's needs. Competition Competition in the human resources field is different than almost any other department in the company. When it comes to finding the right talent, your company is competing with every other company in the area. If you need logistics people, then you are competing with any other company in the area with a warehouse, regardless of what the company sells. Level of Growth An internal factor that impacts human resources is the company's rate of current and project growth. Companies undergoing aggressive growth and rapid expansion may make it necessary for its human resources department to focus on recruitment and staffing. More stagnant companies may place a greater focus on efforts to retain current employees such as seeking ways to improve the company's culture and workplace environment or upgrading job descriptions and enhancing compensation and fringe benefits programs. Use of Technology Another internal factor is the willingness for the human resources department and company management to use technology to aid in certain key human resources functions can impact how the department allocates its time and resources. For example, companies that make greater use of tools such as online benefits management, where employees can make changes to their benefit plans on their own, provide human resources workers with more time to focus on other areas like recruiting or training.
Bad Planning
The human resources department works with the managers of all of the other departments to create staffing plans that will sustain the company and allow for future growth. But when staffing projections are not accurate, the plans of the human resources department are affected. Bad planning by departmental managers, such as not projecting how many qualified engineers the production department will need in the coming year, can cause the human resources department to have to scramble to meet the company's needs. Competition Competition in the human resources field is different than almost any other department in the company. When it comes to finding the right talent, your company is competing with every other company in the area. If you need logistics people, then you are competing with any other company in the area with a warehouse, regardless of what the company sells. Level of Growth An internal factor that impacts human resources is the company's rate of current and project growth. Companies undergoing aggressive growth and rapid expansion may make it necessary for its human resources department to focus on recruitment and staffing. More stagnant companies may place a greater focus on efforts to retain current employees such as seeking ways to improve the company's culture and workplace environment or upgrading job descriptions and enhancing compensation and fringe benefits programs. Use of Technology Another internal factor is the willingness for the human resources department and company management to use technology to aid in certain key human resources functions can impact how the department allocates its time and resources. For example, companies that make greater use of tools such as online benefits management, where employees can make changes to their benefit plans on their own, provide human resources workers with more time to focus on other areas like recruiting or training.
