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1. Human resource planning (or workforce planning) is a broad term used to describe the overall management of an
organization's workforce. It is a systematic process that assesses the current and future needs of an
organization’s workforce and sets out actions necessary to meet these human resource needs through
recruitment, training, financial and non-financial rewards, and organizational structures. Hence, HR planning is
an important aspect of the human resource management (HRM) function of any organization. Due to the evolving
workforce planning needs of an organization, human resource planning is an ongoing function of the HR
department of a business.
Workforce planning involves anticipating and addressing the organization’s current and future human resource
needs. This can be short-term or long-term, depending on the needs of the organization. Short-term workforce
planning is used to address the immediate needs of the organization, such as replacing workers who will go on
maternity leave, enter retirement, or have been suddenly dismissed. It also includes plans for covering absent
employees due to sickness (see Case Study 1). Long-term workforce planning is used to support the strategic
plan of the organization, e.g., the expansion of the business in new locations and different countries.

2. Internal factors that influence human resource planning (AO2)
Both internal and external factors influence human resource
planning. Internal factors are those within the control of the
organization, such as the remuneration (pay and benefits) to its staff.
Examples of such interrelated internal factors that influence human
resource planning include:
❖ Size of the organization – The larger the firm, the more
involved it needs to be in human resource planning. Not only
do larger firms need to recruit more workers, they are more
involved in training, appraisals and other related human
resource matters.
❖ Strategic direction of the organization – For example, if
growth is a priority, the organization will plan to recruit more
workers and internally promote some employees to senior
positions.
❖ Organizational structure – A clear organizational structure
helps workforce planning. For example, the HR manager can
identify vacant positions and jobs that are redundant, thus
can plan how best to address these gaps in the firm.
❖ Finances of the organization – Effective workforce
planning cannot happen without sufficient funding being
available. Growth enables the firm to gain more revenue,
which will provide it with the finances to hire and pay for
more workers. Training and professional development
opportunities for workers also require finance.
❖ Motivation in the workplace – The level of motivation in an
organization is an important internal factor affecting
workforce planning. The higher the level of motivation, the
more productive workers tend to be, and the lower the
labour turnover rate. The human resources department
needs to keep records of why people leave the organization
in order to retain their employees.
❖ Corporate culture of the organization – The culture of the
organization affects how the HR department operates. In
turn, this influences its approach to HR matters such as
working hours, flexitime, teamworking, appraisals, job
sharing (where two employees share a single job), training
and professional development opportunities, dismissal and
redundancies, outsourcing, and the internal promotion of
staff.
❖

3. External factors are those that are
beyond the control of the organization,
such as the legal minimum wage or
other employment legislation. These
external factors include:
1. Demographic change
2. Change in labour mobility
3. Immigration
4. Flexi-time
5. Gig economy
1. Demographic change
Demography is the study of population and
population trends. Demographic change
refers to variations in the structure of the
population that influence human resource
planning. This might include developments
and trends in the population, such as:
❖ The average age of the population
❖ Distribution of the population by
ethnicity
❖ Gender distribution
❖ Educational attainment levels, and
❖ Average household income
❖ Official retirement age in the country.

4. 2. Change in labour mobility
● Labour mobility measures the extent to which
workers have the ability and willingness to
move between geographical locations and/or
occupations for their employment. Increasing
and maintaining labour mobility ensures a
more efficient allocation of human resources.
There are two types of labour mobility: occupational
mobility and geographical mobility.
(i) Occupational mobility
Occupational mobility refers to the ability and
willingness of employees to do another job or
pursue a different career. Occupational mobility can
be improved if employees have the necessary
qualifications, experience and skills to move from
one job to another. Occupational immobility occurs
due to impediments such as rules and regulations.
(ii) Geographical mobility
● Geographical mobility refers to the ability
and willingness of employees to relocate
to another location or country for work
reasons. Some jobs require their
employees to travel long distances for
work purposes, such as delivery truck
(lorry) drivers, pilots, and sales
executives.
● Geographical immobility occurs due to
the unwillingness of workers to move to
another area. Such impediments to
geographical mobility include: family ties
to a geographic location, relocation costs,
lower wages and salaries, fewer benefits,
higher property prices, or higher costs of
living in the new location.

5. ➔ Migrant workers are people who move to other
locations or countries in search of job opportunities.
For example, many people from rural areas move to
the cities in search of employment opportunities as
well as better-paid jobs.
The influx of migrant workers from overseas can provide
many business opportunities, such as:
➔ Easing of skills shortages - Hiring skilled migrants has two
advantages to a business. First, they take on the jobs that
cannot be filled by domestic workers, perhaps due to a lack
of willingness or skills (ability). Secondly, since a skills
shortage is prevented, the pool of migrant workers helps to
keep wage costs down.
➔ Flexible work structures - Businesses are able to open for
longer hours due to workforce flexibility. Migrants add to the
supply of staff willing to work part-time or shift work. This is
good news for businesses which have outlets that open
24-hours a day, such as 7-Eleven convenience stores,
bars, petrol (gasoline) stations, and hotels.
❖ Marketing opportunities - Migrant workers are likely to
have different habits and tastes from the mass
population. This can provide niche marketing
opportunities, such as the provision of cultural goods
and services..
❖ Personnel opportunities - The supply of migrant workers
allows a business to employ a more flexible and
dynamic workforce. They may bring new ideas,
experiences and ways of thinking. Skilled migrants can
pose a threat to less-skilled workers in the country. This
form of competition can raise the standard of skills in an
economy as domestic workers update their skills to
retain their own jobs.
❖ Net social benefits - The majority of migrants are of
working age. This means they are likely to pay income
tax (good news for the government and the general
public). It also means that they have income to spend
on goods and services (good news for marketers).

8. 4. Flexi-time
Flexi-time is a form of flexible work practice that
enables employees to work a set number of core hours
per week, often at the office during peak periods of the
day and/or week. The employees then have the
flexibility to choose when they work during the rest of
the week; so long as their work gets completed.
Flexitime empowers workers as they have the
autonomy to complete their work in their own time,
when it best suits them. It also creates flexibility in their
personal schedule, allowing parents to raise their
young children, for example. Hence, flexitime can help
to improve morale and labour productivity.
➔ However, flexitime suffers from similar
disadvantages to teleworking, such as the
potential lack of accountability and productivity.
There are also costs implications if managers
have to check and approve the hours flexitime
staff claim to have worked.
➔ Flexitime is not a new concept, but has been an
increasingly common practice, allowing people to
have greater work-life balance, especially for
those with young children.

9. ATL Activity 6 (Thinking skills) - Is
Working From Home (WFH) the new
flexi-time?
The COVID-19 pandemic accelerated a
shift towards working from home (or
remote working). This could affect not just
people’s working lives, but the shape of
cities, gender equality, and even how we
measure work hours and time. Watch this
video from The Economist that discusses
these points and whether working from
home is now the new form of flexi-time.
Watch the video answer the questions below:
1. What are the main impacts that remote
working / teleworking have on businesses in
the future?
2. What are the HR planning implications from
the impacts you identified in Question 1?

10. 5. The gig economy ➢ The gig economy (sometimes referred
to as the on-demand economy) refers
to labour markets in which workers are
given short-term or one-off contracts,
such as freelance work, rather than
long-term or permanent jobs.
➢ Gig workers (sometime referred to as
platform workers) are on-call,
independent contractors who enter into
formal agreements with on-demand
businesses to provide certain services
to the firm's customers.

11. Watch this short introductory video that explains what a gig
economy is

13. Key concept - Ethics
This 8-minute video exams whether the gig economy really provides flexible freedoms for workers or whether it is modern slavery. There are lots of ethical
questions that are raised in the video.
Consider whether you feel, overall, that businesses gain more than workers in the gig economy. Be prepared to justify your answer.