RESOURCING & TALENT PLANNING

DIPLOMA IN HR MANAGEMENT
MODULE 2 – 5RST
RESOURCING & TALENT PLANNING
Aim
• To explore modern approaches to Resourcing
that drives sustained performance, covering:
– Key aspects of resourcing from attraction,
retention to exit
• Focusing on the strategic approach that
organisations must take in order to:
– Meet their current and anticipated talent and skill
needs.
2
Learning Outcomes
1. Understand key contemporary labour market trends
and their significance for Workforce Planning
2. Be able to undertake Talent Planning and
Recruitment activities
3. Understand how to maximise Employee Retention
4. Know how to manage dismissal, redundancy and
retirement effectively and lawfully.
3
Overview of Unit 5RST
3 assignments needed:
• Assignment Part A:
Case Study – Group work and presentation
• Assignment Part B – written:
– Write-up on Case Study – Contemporary trends in strategic resourcing
(1,500 – 2,000 words)
• Assignment Part C – written:
– Write-up on Case Study – Talent planning and recruitment activities, and
managing dismissal, redundancy and retirement (1,500 – 2,000 words)
You will get a full briefing on these activities.
4
Case Study – 5RST Part A
PTP Soda Drinks is a drinks company based in the KSA.
• They currently have a team of 150 employees and an annual turnover of 28
million (Saudi Riyals).
• In the last few years the company has fallen on some difficult times. Market
conditions and a drive for healthier drinks have resulted in more consumers
rejecting fizzy drinks. The company has started to diversify its product offering
but, in the meantime, has been forced to downsize.
• The Managing Director (MD) of the company has requested that you act as a
consultant to the firm and help support the company in the following talent
planning issues and initiatives. The MD has requested that you prepare a report
to assist the organisation in moving forward with their talent planning strategy.
• You are a team of HR consultants who have been invited to pitch for
consultancy support to ‘PTP Soda Drinks.’
• The MD is keen to assess your level of understanding covering:
– the strategic resourcing issues involved, and the conclusions and recommendations you
might offer.
5
PTP Soda
Drinks
LO1: Understand key
contemporary labour market
trends and their significance
for workforce planning.
6
Key Terms?
What is meant by:
• Labour Market
– Internal
– External
• Resourcing
– Recruitment
– Selection
• Talent
– Talent Planning
7
Internal (Organisation) Labour
Market : +ve / -ve?
• “Growing it’s own”
• Internal labour market
– Level of investment in L&D
– Availability of career development
opportunities
– Priority given to employee retention
and engagement
– Positive psychological contract
– Job security
• What does your Organisation do?
8
External Labour Market : +ve / -ve?
• External supply / availability
– Potential pool of workers
• Local Regional National
International
• Dependent on?
– Industry sector
– Organisation’s activities
– Location, size, scope, extent of
competition.
9
‘Tight’ and ‘Loose’ Labour Markets
– Discussion
Law of Supply and Demand
1. Tight
– There is a high demand from
employers and a small supply of
professionals that fit.
– Where there are more jobs than
there are skilled people for those
jobs
2. Loose
– Where organisations have a large
pool of potential and available
labour / employees to hire from
– Where there is a plentiful source of
available labour to meet specific
organisational needs
*Assignment Question 10
• What are the
implications for:
– Your organisation?
– Your sector / industry?
– GCC?.

A tight labour market is a seller’s or jobseeker’s market, where organisations find it more difficult to
find and recruit employees due to high overall (national) employment levels.
When the labour market is ‘tight’ this basically means that unemployment is falling and there are few
job vacancies available – There is a high demand from employers and a small supply of professionals
that fit. The shortage in key talent / professionals creates a luxurious position for the key talent /
professionals as they can expect more regarding their terms of employment if they choose to look for
a new job opportunity.
• How do organisations in the current market approach this situation? When it comes to recruiting
key talent / professionals or rather keeping your current key talent / professionals, organisations
try to offer an attractive package of terms of employment. Most common strategies include salary
increase, improving the opportunity of development within the organisation or offer more
certainty with the use of a fixed contract.
• Besides the appealing terms, key talent / professionals also value ‘abstract’ factors (Psychological
contract). For example: A positive work environment, others might prefer a certain freedom while
doing their job or want to receive more personal attention from the managerial staff.
• The pressure is now on the employers to react to these new demands that are created by the
tension on the labour market.
A loose labour market is a buyer’s or employer’s market, where organisations have a large pool of
potential and available labour / employees to hire for positions, since jobs are scarce, with jobseekers
competing with many others for the same position.
• A loose labour market, with high unemployment rates, has significant effects on the recruitment of
staff, which include: a large number of people applying for each vacant position; wages can be
reduced; many of the people applying for scarce vacant positions are overqualified.
11
Factors affecting Supply & Demand
– Discussion
• What are some of the factors that affect:
– Labour Market Supply?
– Labour Market Demand?
• Possibly?
– Government initiatives?
– Wages?
– Economy?
– Work/Life balance?
– Stress of changing jobs?
– Geographic issues?
– Sector issues?
– Products / Services – will the customer buy?.
12
Role of industry in ensuring future
skills needs are met
• Sharing of knowledge/research (“co-opetition”)
• How else can industry ensure future skill needs are
met?
• STEM Learning is the UK’s largest provider of
education and careers support in Science, Technology,
Engineering and Mathematics (STEM)
• Supported by a unique partnership of Government,
charitable trusts and employers. They are dedicated
to raising young people’s engagement and
achievement in STEM subjects and careers
https://www.stem.org.uk/
13
Influence of the ‘Employer’ on
ensuring Future Skills needs met
Significance of:
• Employer Brand?
• Reward Strategy?
• Development Strategy?
• Psychological Contract?
• Career Planning?
• Retention Strategy?
14
Global HR / Talent Trends
• Putting human experience at the centre of HR and
hiring
– The 2020s will be all about putting people first
• 4 Trends changing the way organisations attract and
retain talent
15
• New ways to
cater to
employees
Employee
Experience
• Focus on
understanding
human
behaviour
People Analytics
• Focus on
advancing
people’s careers
from within
Internal
Recruiting
• Importance of
recognising,
celebrating &
integrating
everyone’s strengths
Multigenerational
Workforce
* 2020 Global Talent Trends, LinkedIn Talent Solutions, Page 4
Competitor Analysis – Discussion
• What are your key competitors Resourcing Strategy
– Their SWOT? What are you identifying and measuring?
• How do you compete against them
– What is your organisation’s Resourcing Strategy SWOT?
• What more can you do with your Resourcing Strategy
to become more competitive?
http://andrewwaleslod.co.uk/learning-resources-how-organisations-position-themselves-incompetitive-labour-markets/
16
Labour Market Trends – Practical*
Identify today’s Labour Market Trends in your
country and across GCC
• Research the trends (2015, 2020 & 2030)
– Explore the generational changes and %
– Particularly focus on GenZ
• What are the impacts (challenges /
opportunities) on Workforce Planning?
• Brainstorm what could be the impact on
Organisational Culture, Management Style and
working patterns (e.g. flexible, home-working,
cross-functional, team focus etc…)?
• What can HR / Leaders do to ensure its labour
needs are met?
– What else can they do to make sure the organisation
performs at it’s best?
*Assignment Question – PTP Soda Drinks
17
Labour Market Strategy*
18
Employer
of Choice
Employer
of Values
Employer
of Cash
Employer
of Churn
High Rewards Low Rewards
Low
Culture
High
Culture
• Excellent labour
market reputation
• Pays well and
treats well
• Employees paid
below benchmark
• Compensated by
being treated well
(better than a
competitor would)
• Payed near to
‘minimum wage’
• Treated as a
commodity not a
resource
• High turnover
• Employee Value Proposition is limited – “sink or
swim”
• Expected to work long hours
• Rewarded well for their performance
*Higgs’ Model (2004)
Employer Branding – Discussion*
1. What is Employee Brand?
1. What does an effective / good employer brand look
like?
2. How is it used?
3. How is it promoted?
2. What are your organisation’s Employee Brands?
1. What is it?
2. How effective is it?
3. Who is it aimed at?
4. How can you strengthen it?
*Assignment Question 19
Employee Branding – Defined
• Employee branding involves presenting the company in the best possible
light in front of employees, job candidates, internal and external
stakeholders, and customers.
Employee branding is the process by which employees internalize the
desired brand image and are motivated to project the image to customers
and other organizational constituents.
Kelley School of Business research paper
• In other words, it’s about getting employees on board with the values that
your organisation represents and the type of business your company
engages in.
• Employees express these externally, through word of mouth and social
advocacy.
• Organisations with a strong employee brand can turn their employees into
powerful brand ambassadors.
– They are also more likely to improve employee loyalty, contribute to
solid brand reputation management, increase employee motivation levels,
and attract and secure the right talent.
20
Employer Branding Framework
21
Job
Listings
Website
& Blogs
Culture &
Corporate
Values
Candidate
Comms
Career
Page
Things you
can control
Social
Media
Activity
Employee
Stories &
Advocacy
Company
Reviews
Things you can
directly influence
Public
View
Awards &
Accolades
Things you
can indirectly
influence
LO2: – Be able to
undertake talent
planning and
recruitment
activities.
22

• ‘Ensuring that the organisation is able to identify
and attract key people with the capability to
create competitive advantage, and that it
actively manages an appropriate balance of
resource to meet changing needs, fulfilling the
short and long term ambitions of the strategy.’
CIPD Profession Map
23
What does a good Workforce Plan
look like? Discussion
• Balance between Strategic longterm focus with a robust shortterm plan
– Sustained organisational
performance
• Current and future needs
• Agility (VUCA)
• Business alignment
• Use of appropriate tools
– Which ones do you use?
• Flexible for future planning.
24
Stages in Talent Planning
1. Forecasting future
demands for talent
2. Forecasting future
internal supply of
talent
3. Forecasting external
supply of talent
4. Formulating
responses to forecasts
25
Techniques for Forecasting – Discussion*
Workforce Planning Techniques
• Work Study Technique
– Analyses how a job is presently being done in order to improve
on it – includes time and motion study.
– Aim is to increase productivity by ensuring best possible use of
human, machine and material resources and to achieve best
quality product/service at minimum possible cost
– https://www.slideshare.net/JosephKonnully/work-study-methods-study
• Delphi Technique
– A method used to estimate the likelihood and outcome of future
events. A group of experts exchange views, and each
independently gives estimates and assumptions to a facilitator
who reviews the data and issues a summary report.
– They then discuss and review the summary report, and give
updated forecasts who again reviews the material and issues a
second report. This process continues until all participants reach
a consensus.
– https://www.projectsmart.co.uk/delphi-technique-a-step-by-step-guide.php
*Assignment Question 26
Succession Planning – Discussion
• What is Succession Planning?
• Why do we do it (advantages)?
• What do you do in your organisation?
– Features? Benefits? How can you improve it?
• What are the limitations / restrictions of
traditional approach to succession planning?
• What new approaches are there to succession
planning?
• Is Succession Planning becoming more or less
important?
– Why?
27
Career and Development Planning
• EMPLOYABILITY
How is Career Planning conducted in your
organisation?
• How effective is this?
• Is it fair / transparent?
• How does Individual Development Planning
(IDP) link to Career Planning?
28
Competencies – More than what you see
29
SKILLS
KNOWLEDGE
MOTIVATION
ATTITUDE
AIMS
Necessary for Top
Performance But
Not Sufficient
Characteristics
That Lead to
Longer Term
Success.
Building a Competency Framework
30
Identified through
scoping and
analysis
(competencymapping)
Defined in
Behavioural
Terms
Combinations of:
• Characteristics
• Knowledge
• Skills
• Behaviour.
Highlights ‘effective’
and ‘ineffective’
performance
Many employers have a competency framework in place for their organisation or are
planning to introduce one. A 2015 study by Deloitte showed that 89% of ‘best-in-class
organizations’ (organisations where staff and management achieve highly) had core
competencies defined for all roles, as opposed to 48% for all other companies.
Competency Categories
31

Discussion
Research
• Key legal considerations in recruitment
and selection
– Your country’s legal considerations?
• Influence of KSA initiative?
– Positives?
– Negatives?
32
Preparation for Recruitment –
Discussion
• Job analysis:
– Methods/tools?
– Importance?
• Purpose:
– Job description
– Person specification
– Accountability profile
– Competency frameworks
https://www.onetonline.org/
33
Recruitment & Selection Methods
– Practical*
Group 1
• Identify contemporary Recruitment methods
• https://harver.com/blog/innovative-recruitmentmethods/#GigEconomy
Group 2
• Identify contemporary Selection methods
• https://content.wisestep.com/employeeselection-methods/
Research – find out:
• Features & benefits – what happens?
• Latest thinking (research) into how these
methods fit with a strategic approach to
resourcing
• Any legal considerations.
• *Assignment Question 34
Best types of Interviews to predict
good hires
35
Topgrading Behavioural Interview
Structured
Competency Interview
Works Skills Test & Cognitive
/ Psychometric assessments
Structured Situational
Interview
Case / Puzzle
Interview
Unstructured
Situational
Interview
https://www.recruiter.com/i/the-best-type-of-interview-to-accurately-predict-good-hires-is/
LO3: Understand
how to maximise
employee retention.
36
Why staff leave & why some stay
Discussion
• Why do employees leave?
– What can HR do to manage
these to minimise organisational
disruption and maintain a
positive Employee Brand?
• Why do employees choose to
stay?
– What can HR do to manage
these to maximise long-term
organisational benefits and
build a positive Employee
Brand?
37
Not all Staff Turnover is bad!
38
Functional Turnover
* Removal of poor
performers and ‘dead wood’
* Movement to allow
progression of ‘new blood.’
Dysfunctional Turnover
* Departures that have a
negative effect on the
organisation
* Loss of key skills / knowledge
/ customer insights etc…
* Negative effect on colleagues
(Survivor Syndrome)
Costs of Turnover
• HR administration
• Costs of advertising
• Recruitment and Selection
• Selection expenses
• Costs of cover during
recruitment – overtime etc.
• New starter costs
• Induction
• Basic training
Direct Costs
• Loss of production –
leaver
• New employee – starter
• Loss of morale
• Client relationships?
• Waste of investment
from previous L&D
• Competitor advantage –
leaver
• Company reputation.
Indirect Costs
39
Employee Retention Strategies
Some retention strategies
•Job Enrichment and flexible working
•Improving organisational internal communication
strategies
•Creating an L&D strategy to enhance performance
(learning organisation?)
•Focus on improving Employer Brand – making the
organisation an attractive place to work
•Focus on Employee Value Proposition (EVP) for
the same reason
•Strategies linked to raising levels of employee
engagement
40
LO4: Know how to
manage dismissal,
redundancy and
retirement
effectively and
lawfully.
41
Managing dismissal, redundancy &
retirement effectively & lawfully
FAIR DISMISSAL (UK LEGISLATION)
• Advisory, Conciliation and Arbitration Service (www.acas.org.uk)
• Must follow a fair procedure (ACAS ‘Codes of Practice’ 2015)
• Must have a fair reason:
1. Conduct – breaking company rules
2. Performance/Capability – inability to do the job (competence or
health)
3. Legal reason
4. Redundancy
5. Some of substantial reason.
42
Principles of Fairness
• Promptness: issues should be dealt with promptly,
without delay
• Consistency: Employers and employees should act
consistently
• Thorough investigation: Employers should carry out
investigations to establish the facts of the case
• Inform: Employers should inform employees of the
basis of the problem
• Right to be accompanied: employees allowed to be
accompanied at any formal disciplinary or grievance
meeting
• Right of appeal: employees have the right to appeal
against any formal decision made.
43
Redundancy – Discussion
• What are valid redundancy
situations?
• How can HR reduce the
‘redundancy pool’?
– Keep the number of ‘forced’
redundancies to a minimum
• Key steps in the redundancy
process?
44
Planning a downsizing programme
– Discussion *
• What is it and why do it?
• What are the key considerations in
conducting a down-sizing exercise?
• What are the negative implications?
• How might you overcome these?
• What is the specific role of HR in
contributing to a down-sizing
strategy?
*Assignment Question
45
Structured Downsizing Model
• Preparation
– Getting people and the business
ready
• Involvement
– Staff, customers and suppliers
• Leadership
– Positive vision
• Communication to everyone
• Support
– For leavers and survivors
• Measurement
– Inputs as well as outputs
• Implementation
– Transparent and fair. 46
Retirement – Discussion
• What Saudi legislation covers Redundancy and
what does it state?
• In the EU there is a ‘flexible’ approach
• Companies cannot compulsorily retire employees
because of age – unless there is another genuine
reason
• Options include:
– Moving from full-time to part-time
– “Stepping down” to a lesser role
– Moving from full-time to a Consultant role
– Gradually reducing hours – “winding down”.
47
Presentation – Assignment A
48
1. Current labour Market Trends in KSA and GCC and how they impact Workforce
Planning
2. How ‘tight’ and ‘loose’ labour markets affect an organisation’s recruitment &
reward strategy
3. What role does employers / industry and Government play in talent planning
initiatives?
4. What can PTP Soda do to attract top skills and talent in the future? Refer to Higgs
Model and provide some practical examples
5. Summarise the key principles of effective workforce planning (in respect of
downsizing at PTP Soda)
6. What are PTP Soda’s options in respect of succession and career plans for its
existing and future workforce? Refer to importance of workforce planning, looking
to the future and uncertainty (VUCA) meaning PTP needs to constantly review and
update
7. Summary of KSA’s legal requirements for recruitment and selection
8. The importance of having a fair and transparent recruitment and selection
process by using competency frameworks, job and person specifications
9. Retention Strategy – what can PTP soda do to make sure it keeps its key employees
and all employees feel positive about the future (survivor syndrome)?
10. Costs associated with ‘dysfunctional turnover’
11. Downsizing process PTP Soda
Drinks
Assignment B
Written Assignment Part B:
Write-up of Case Study – ‘Contemporary Strategic
Resourcing.’
49
Assignment C
50
Written Assignment Part C:
Write-up of Case Study:
• Talent planning and recruitment activities
• Managing dismissal, redundancy and retirement
effectively and lawfully