Introduction
Human resource management has been a concern for many enterprises globally since it helps the leadership within the organization determine the importance of having an identifiable number of employees. Businesses determine the need for having a specific number of employees by identifying every worker’s contribution to the final business turnover. Managers use the available information to analyze every individual’s influence on the business’s success or failure. The economic, technological, corporate value, and seasonal employment fluctuations are some major factors that affect the demand for employees in a business (Dessler & Chhinzer, 2020). The prestigious sporting goods company faces huge impacts due to embracing technological change. Increased online sales and reduced store sales significantly change the demand for online and physical laborers for the business to run its operations smoothly. Understanding the demand and supply of labor in the prestigious company is critical since it helps the company manage its finances by reallocating duties to employees, eliminating ones that have no positive financial impacts, and creating a synchronized customer care unit.
Main Body
Fig. a: The demand for labor in the stores and the online environment over the next three years
The firm experienced increased demand for online workers. An increase in sales per year leads to a heightened need for more employees to help ensure that all service rendering processes run smoothly. An increase in the technological upgrade within the business leads to high demand for more experts to communicate with the online buyers and ascertain that the speed of receiving and delivering orders from buyers is high. Thus, the online workers grew from 5 in the previous year to 7 in the current year and are expected by the management to increase to 9, 12, and 16 within the next 1,2, and 3 years respectively. An increase in the number of customers in the online sector leads to an increased demand for laborers.
On the other hand, the number of employees in the franchise stores decreases within the next three years from 22 in the current year to 17, 14, and 11 in years 1,2, and 3, respectively. The employees decrease in the physical stores due to a low customer turnover in the business. Reduced customer flow encourages the management to minimize the number of employees in the stores due to expected benefits. A high employee-to-customer ratio leads to loss85es since the worker’s potential is not fully maximized to obtain higher income. Instead, the employee increases the company’s expenses since they must be treated like any other laborer. Therefore, the business may fail to maximize its potential and, in such instances, sucking the worker is always the better option (Dessler & Chhinzer, 2020). The improvement in technology takes some roles from the worker. Thus, the laborer remains with fewer responsibilities requiring the business to seek more alternative ways to handle the instances.
Fig: Overall HR supply estimates over the next three years
The estimates for the turnover for the workers vary throughout the period. In last year the total turnover for the employees. The turnover ratio during the previous year was 32 workers in summation, where 27 workers were working from the franchise stores while the other five were working in the online market. In the current year, due to the increase in technological changes, the turnover reduced to 30 workers in both sectors, where 23 are working in the franchise stores and the remaining seven work on the online platform. The first-year projection is that the entire company will have a turnover of 26 workers, with the 19 and 9 people working in the stores and online markets for the first year and 14 and 12 working in the franchise stores and online markets, respectively. In the final projection for the third year, the turnover is 28 employees, which is an increase from the first two years since the demand for technical staff extends, making the population to become 12 and 16 people working for the franchise stores and online market in that sequence.
Fig. c (i): Number of employees that will be surplus or shortages for the franchise store for each year
From the quantitative analysis above (Fig c (i), the franchise stores never had a surplus or shortage of workers in the previous period, the first and second years. However, the company had an excess labor supply with one individual in the current and the third year. The surplus worker hence provides expenses for the company, and their potential is often underutilized in the organization’s running. The franchise’s manager must create a systematic arrangement and assignment of duties to ensure that this employee is not excluded from the business’s daily operations (Dessler & Chhinzer, 2020). The awareness of excess labor helps the manager determine what different roles the worker may perform, hence affirming that the business uses all the available human resources.
Fig. c (ii): Number of employees that will be surplus or shortages for the online department for each year
Fig c (ii), indicates that the firm did not have an excess or limited supply of labor during the previous, current, and the first periods. Nonetheless, in the second and third years, the business had an excess of one and two excess laborers in the online marketing sector. The projected number of employees in the sector is more than the market demands. The change in the form of technology the firm applies in its activities creates a high demand for more laborers in the online marketing sector. An increased number of workers creates an adequate flow of work since they provide a strong customer care service unit that responds to customers at a high frequency. However, the business must ensure that it provides an effective labor provision system that effectively deals with the customer’s demands. The managers should evaluate the roles of each employee towards the organizational success to ensure that all employees understand their roles and that there is no extra unutilized labor.
The number of employees to be terminated in the next three years of the franchise operations are 1, 1, and 3, respectively. In the first year, the business needs to reduce the employees working in the franchise store by an individual. If the individual is not sucked, the company will reduce its profits since there is less value obtained from the individual for the business. In the second year, the business will have to reduce employees from the online service providers team. However, in the third year, the firm must regulate employees in both sectors, one in the franchise stores and two from the inline marketing team. Employee management plays a vital role in the business since it minimizes the extra cost that the company incurs to ensure an adequate flow of income. Reducing the number of employees helps every member identify their roles and stick to them, allowing the business to attain its objectives appropriately. Hence the firm maximizes its revenues while minimizing expenditure, increasing the profit margin in the long run.
There are different reasons the human resource department must scrutinize the amount of labor available at their exposure. Often, the firm must recall some employees when there is an excess labor supply. Conversely, if the amount of work available exceeds the number of workers present, the human resource department must work effortlessly to ensure that they obtain more employees. Another demand for human resource management is predicting the future flow of labor. The administration seeks more subordinates when it projects an influx of work in the foreseeable future (Rana & Sharma, 2019). It may recall some workers when the discharge of duties indicates a decline soon. Prior preparations help the organization settle down in advance in the wait for the coming periods. Therefore, the organization has a successive flow of assignments from one individual or team to another. Human resource managers may use different primary sources and strategies to internally and externally determine the labor supply.
Internal candidates supply labor for the firm through transfers, referrals from employees, and promotion of the internal workers. A human resource transfer is the reallocation of duties for the current employees. It involves shifting them from one department to another to reduce congestion and increase productivity in the new zone. On the other hand, promotion indulges improving the state of an individual or a team from junior to senior workers. Promoting workers relies on how well a person performs at their current level before being upgraded to a higher rank. The human resource may conduct interviews to determine which employees deserve a promotion. Hence, promoting employees may exceptionally work as a motivating factor (Dessler & Chhinzer, 2020).
Another internal process of gaining information regarding the supply of labor is by inquiring for referrals from the current or the retiring employees. The process involves providing links to where the business may gain more influential workers that are easy to manage. Promoting employees ensures that their careers undergo development since they gain experience to operate at different ranks in the organization (Zaid et al., 2018). Internal sources are cheap and consume less time since the management already knows the individuals to trust with the new vacancies.
Additionally, the prestigious franchise sporting goods company may rely on external information to gain labor supply. It involves listing the vacant offices in the public domain to attract qualified people for the positions (Gölgeci & Kuivalainen, 2020). The selection process in the human resource appointment is the most vital aspect since it helps the management to identify suitable candidates for the posts. In addition, the process equips the management with information on how it may use the available skills to upgrade its production and sales. The first external strategy is by interviewing the job seekers to ensure that they possess the quality desired to run the operations within the business. Those that qualify but lack some of the qualities the company desires will require the human resource department to take them through some training to equip them with the appropriate skills.
Conclusion
Human resource management is critical for businesses since it helps them identify and relate with the current and future supply and demand for labor. Organizations must analyze the impact each employee has on their profitability. Understanding the scope of the market and supply of employees and work helps the human resource departments distribute duties to different people, hence recalling those that do not positively impact the business progress. Some of the means the business may use to locate the trends of the supply and demand for labor include internal and external sources. When the need for more employees arises, the management uses the internal and external candidates to fill the underlying gaps. Companies must identify the importance of clearly understanding the flow of labor in the market to estimate and manage their profit ratios.
References
Dessler, G., & Chhinzer, N. (2020). Human resources management in Canada (14th Canadian ed.). Pearson Canada Inc.
Gölgeci, I., & Kuivalainen, O. (2020). Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment. Industrial Marketing Management, 84, 63-74. Web.
Rana, G., & Sharma, R. (2019). Emerging human resource management practices in Industry 4.0. Strategic HR Review. Web.
Zaid, A. A., Jaaron, A. A., & Bon, A. T. (2018). The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of cleaner production, 204, 965-979. Web.