Labor Force Discussion / Managing Human Resources – Assignment Example
Having performed a labor force analysis and a turnover analysis, we are prepared to make certain suggestions to the General Manager. As director of HR, I hope these suggestions are heeded as sound recommendations.
To justify them, we recount some of the more profound findings of our research. We predict we will lose about 1,374 people per year each year to turnover. This will cost us over $5.5 million. Furthermore, we must consider that we will need to acquire over 3,800 applicants each year over the next 5 years to reach our hiring goals. This is a major undertaking for nearly any organization, but especially for one of our caliber. Demographic data suggests there are not enough eligible workers in a reasonable driving distance to fill our needs. These two points alone represent a major hiring challenge.
As such, we make our suggestions based on certain underlying trends. We have delineated such trends based on pay rate and commuting distance. People who make over $8 per hour and commute less than 20 miles or commute 31 to 40 miles have a significantly higher turnover rate. For jobs in the $8 per hour range, we should focus on applicants who commute 21 to 30 miles. Furthermore, people who earn less than $5 per hour are significantly more likely to turnover if they commute 21 to 40 miles. As such, for jobs paying under $5 per hour we should focus our hiring efforts on communities within a 20 mile radius. Moreover, because we have such a high rate of turnover (68%) for employees who have been with us less than 6 months, we should sweeten the deal as an incentive for people to remain with us longer. These could include bonuses, gifts, and pay hikes at quarterly or annual intervals as further analysis deems appropriate.