Political from a shift in local public opinion to a

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Political From a shift in local public opinion to a change in government or even a new industrial world superpower entering the market, politics influence how much funding is available, how much tax must be paid, minimum wage rates, how markets are controlled and the quality and quantity of staff available for hire. When planning ahead, you need to consider likely changes to markets, budgets and availability of suitable applicants as a result of recent or anticipated political influences. For example, if a change of government is possible in the coming year, understand the new administration’s priorities in relation to markets, industries and businesses. Economic How much money is available for salaries, training and equipment is the most immediate concern in human resource planning. However, external economics plays an equally critical role. For example, people don’t have as much money to spend in an economic downturn and tend to be much more selective in what they buy or services they use. This means some industries, such as those producing luxury items or non-essential services, sell less and may even have to lay off some staff. This, in turn, makes the local economy even more difficult. Building economic factors into the human resources plan helps to predict how many employees you will need and you can pay. Social Several social factors may influence your HR planning, but you need to take into account equalities and diversity in particular. Where there is a clear discrepancy of one social group, it’s
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a good idea to build in ways of opening up new opportunities. For example, if there are few minority groups in the company compared to numbers in the wider community, determine why this is the case and what can be done to redress the balance. Technological New technology brings new skills requirements, so companies always need to be aware of proficiencies and training needs when planning human resources. New products and services also may require recruiting highly skilled employees or training existing employees to meet the need. Make sure HR managers are aware of new equipment or knowledge be needed so they can build the required skills, and most likely salary enhancements, into the plan. Legal Employment law is the most significant sector of the legal system that affects human resource planning, and it changes all the time. In most cases, there is plenty of time to implement changes to policy, as the law can take awhile to take effect. Keep the organization up to date, and have an employment law specialist available to consult if necessary. Employment law changes must be reflected in company policy and implemented on the ground by supervisors and managers, so the organization may need to incorporate another training need into the human resources plan. Environmental Environmental factors might include where the business is located in relation to finding sufficient appropriate staff or changes to the environment that mean a need for more or fewer employees. A simple example of environmental factors affecting human resource planning is the consideration of how the employees get to work safely during extreme weather; the plan may need to include the possibility of telecommuting in order to keep everything going.
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