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To do that, it’s important to know what the internal and external factors can consist of.

Competition The extent of competition in your industry affects your company’s ability to recruit qualified workers. Industry giants find that candidates seek them out. There is no need to spend money advertising each recruitment in such a case, because candidates will visit the company website of their own accord. Small businesses typically don’t have the same branding power or company reputation, though, and need to actively seek qualified candidates for critical positions.In such a scenario, a human resources department will need to focus on developing recruitment materials and attending job fairs to promote he company and attract applicants. Similarly, HER should develop programs and incentives to retain key employees.

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Compensation Labor supply drives the amount of compensation a business must offer to attract employees. In an overeducated market, when unemployment is high and many more qualified candidates exist than job opportunities, the amount of compensation you must provide is less than when a shortage of candidates exists and you are competing against multiple other companies to recruit employees.HER must continually evaluate the compensation structure by inducting industry- and location-specific salary surveys to ensure wages remain competitive enough to attract and retain key staff members but low enough that the business remains financially competitive. HER must also ensure that the internal compensation structure is fair for example, experienced workers with specialized qualifications should earn more than recent college graduates performing the same tasks.

Legislation Legislation impacts all HER activities.Federal and state legislation typically dictate how long a business must retain personnel records and other employee data, what can be stored, and how. For example, the Health Insurance Portability and Accountability Act, Americans with Disabilities Act and the Genetic Information Nondiscrimination Act all place obligations on employers to safeguard the confidentiality Of employee medical information and to make sure company managers operate within the confines of law. HER professionals must stay abreast of legislation and train managers on their responsibilities. Employee Relations Internal policies and procedures impact HER activities.For example, if the many is committed to promoting from within, HER must ensure employees receive appropriate training and development to be ready for promotion when the time comes. HER should monitor the number of employees eligible for retirement and ensure potential replacements or other staff members are trained to avoid a sudden departure of business knowledge.

If the company is unionized, HER must engage in collective bargaining with the union on matters of representation. External influences, political factors and organizational culture all influence the amount of grievances and complaints HER must respond to.

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