Download - HR Planning, Staffing & Separations SHRM
HR Planning, Staffing & Separations – SHRM
Tulasi S [email protected]@yahoo.com
Planning
HR Planning - SHRM•A proactive process & is aligned to business needs•Anticipates developments in internal and external
environment & addresses them before they happen•These assumptions will need to be written down •Particularly important during turbulent times•Such a planning has to be flexible & evolving•Goes far beyond simple hiring & firing•Focus on deployment of HR Capital in the most
efficient & effective manner• Includes reassignment, training & development,
outsourcing, partial employment, temporary help etc
Some examples – Dell Computers
•HR professionals have dual reporting relationship to VP (HR) & VP ( Business unit)
•They are internal consultants in business meetings•Anticipate growth, map key job openings & source
talent both from inside & outside in advance•Analyze existing high performers to spot their keys
to success & identify competencies and skills required by new employees
•Line managers function as “rotational recruiters”•During slower recruitment seasons, HR staff move
to sales, customer service etc
Key objectives of HR Planning
•Prevent overstaffing and understaffing•Ensure the Organization has right
employees with right skills in right places at right times
•Ensure Organization is responsive to changes in the environment
•Provide direction and coherence to all HR activities and systems
•Unite the perspectives of line and staff managers
Types of HR Planning •Aggregate Planning -Mathematical models such as linear
programming -Unit forecasting ( bottom up planning ) - Assets allocation ( Top down forecasting ) - Markov Analysis ( Transition probability )• Succession Planning -Identifying key positions that can not remain
vacant -Replacement charts / Skills inventory
A Sample Transition MatrixPart A: Personnel Supply
Estimated Personnel Classification in Year T + 1 (%)
Classifications in Year T P M S Sr A Exit
Partner .70 .30Manager .10 .80 .10Supervisor .12 .60 .28Senior .20 .55 .25Accountant .15 .65 .20
Part B. Staffing LevelsEstimated Personnel Availabilities in Year T + 1 (nos)
BeginningClassifications in Year T Levels P M S Sr A ExitPartner 10 7 3Manager 30 3 24 3Supervisor 50 6 30 14Senior 100 20 55 25Accountant 200 30 130 40
10 30 50 85 130
Pros & Cons of disclosing Succession Planning
Disadvantages Advantages
Succession Planning – Some innovations•K Havanian enterprises –A large US homebuilder •Acquired seven other such companies in 3 years•Adopted a unique Succession technique - Feedback collected from 12 to 14 direct reports,
colleagues and other senior managers to assess leadership ability and potential
- Identified candidates were asked to create a plan for personal development
- Results indicated 100% elevation of employees who completed the programme while those hired from outside had a success rate of only 50 percent.
CEO Succession Planning – GE Way • Jack Welch,–A legendary CEO’s retirement did not
cause concern among stake holders •He planned his succession for over six years-
Jeffrey Immelt succeeded him and two other GE executives moved to 3M and Home Depot as chief executives.
•Executives are rotated from job to job every 3 yrs•Each assignment planned to build new skills•A specific set of goals and expectations must be
met to ensure further advancement •The model is relatively simple but takes
tremendous amount of time, energy and commitment
Strategies for managing shortages & surpluses
Recruit new permanent
employees
Increase retirement age
Rehire retirees part time
Attempt to reduce attrition
Let the current staff work
overtime
Subcontract work out
Hire temporary employees
Redesign the job processes so
that fewer employees are
needed
Managing shortages Managing surpluses
Hiring freeze
Do not replace those who leave
Offer early retirement incentives
Reduce work hours
VRS, Leaves of absence
Across the board pay cut
Lay off
Reduce / discontinue outsourced
work
Switch to variable pay plan
Expand operations/Employee
training
Staffing
Staffing – SHRM innovative methods•Kroger – Computer based, self administered
employee selection system ; Survey of customers to identify Knowledge, skills and competencies that provide outstanding customer service & built in to a measurable scale
•St.Peter’s health care – Started a bidding process as it suffered from severe shortage of qualified nurses. Nurses bid for open shifts for a certain pay rate per hour and those rejected can rebid
•Kellogg – well known cereal manufacturer outsourced recruiting function through a vendor
•Microsoft – College recruiting via internships
Separation incl retention
Employee separation – SHRM
•Stable domestic economic landscape no longer exists
•Technology and increasing skill obsolescence•Competitive Organizations need to be flexible
and responsive to environments•Faster growth-Organic / Mergers / Acquisitions•Size inhibits attention to individuals •Employees are less committed to employers
and vice versa / No more life time employment •Organizations should develop appropriate
strategies to deal with issues of ‘separation’.
IT Employee retention – Kraft foods
• CIO partnered with HR to help HR understand the unique challenges faced by IT & develop holistic plans
• Employees pursue one of two career tracks – technical or managerial through intranet tutorials – self development
• Ten working days an year exclusively to such pursuits• Tuition reimbursement for outside study programmes• Managers provide ongoing feedback & developmental
sessions• Unique ‘IT Leadership programme’ with executive mentors• A special sense of family is found at work• Ideas are solicited and accepted from every level, besides
flexi hours, telecommuting, part-time work options, casual dress code, company stores and on site health club etc.
Employee retention – Sprint PCS
• Sprint – A provider of consumer cellular telephone services identified that high performing employees were leaving not because of pay but because managers did not understand them
• Sprint designed ten retention competencies to be imparted for managers such as trust builder, esteem builder, climate builder, communicator, talent developer etc and identified gaps for each manager through 360 degree survey
• Each manager received a plan that identified at least four competencies to be developed through e learning modules
• Managers were encouraged to share specific best practices relative to retention with each other
• Lower attrition proved the effectiveness of this process
Ten mistakes to avoid while restructuring• Failure to be clear about long term and short
term goals• Use of down sizing as first resort• Use of non selective down sizing• Failure to change the way work is done• Failure to involve the stakeholders in the
process• Failure to communicate openly & honestly• Inept handling of those who lose jobs• Failure to manage survivors effectively• Ignoring the effect on other stake holders • Failure to evaluate results and learn from
mistakes
Performance – Replaceability strategy matrix-Martin& Bartol
Difficult to replaceHighly dysfunctional attritionRetain / Invest in employee :Develop back up
Easy to replace Dysfunctional attritionRetain / Invest in employee
Easy to replace Functional ( beneficial ) attritionImprove performance or terminate
Easy to replaceDysfunctional if replacement costs are highRetain / Performance incentive ?
Difficult to replaceShort term dysfunctional but long term functional attritionImprove performance or terminate / Develop back up
Difficult to replaceDysfunctional (problematic) attritionRetain / Performance incentive?Develop back up
Difficult EasyReplaceability
Any questions please !