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Human Resource Management | HR Staffing | Managing labor demand and supply gap of a firm

The next step in workforce planning process is to resolve the gaps between demand and supply in staffing. A comparison is performed to meet the forecasted supply in terms of skills, quality and quantity that takes care of the future staffing needs. Developing an action plan is required to proactively address the situation of labor shortage during high demands. Action plans should be consistent with the firm’s business strategy, talent philosophy and human resources strategy. For example Motorola Inc developed an action plan to identify the likely career path and skills the supply chain professional of the future needs to get the top job. When changes are observed I labor market conditions, it is important to try to assess whether the change represents a labor market trend that is likely to continue or whether it is a short term fluctuation.

5.4.1  Managing Temporary Talent Shortage

Temporary talent shortages are handled by offering retention bonuses consisting of stock options or cash paid to employees who have successfully worked with the company for a certain period of time. There are situations like, when companies find difficulty in hiring on a tight labor market. In such times, they often look for other options that are mostly expensive as in recruiting by advertisements, manpower agencies, etc.

The above two methods can produce unwanted consequences and not reliable in the long run. One solution might be to recruit people currently working for the company, and some positions can be filled by new hires. The action plan should address the root cause of high turnover that led to the shortage. HR plays a major role by conducting employee surveys, discussing with managers in the company by understanding the reasons for shortage and developing methods to overcome the shortage situation.

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