Good to know Helping you understand the principles of workforce management Workforce Management is all the activities needed to maintain a productive workforce. It is about having the right employees with the right skills to the right job at the right time to meet demand while optimising the scheduling of staff. What do Human Resources (HR) DO? Human resources work with, advise, guide and support other business functions in achieving the organisation s goals through effective workforce management: Consistently applying human resources policies and proceedures Human Resources support other business functions Complying with emploment and labour laws Maximising employee performance It does this by helping other business functions with: 1
Institute of Leadership and & Management Workforce Planning There purpose of Workforce Planning is to plan for the future by asking: How many people are leaving? How much will the organisation grow/contract? What changes will happen type of work, technology? What knowledge, skills, behaviours, experience will be needed? How many people with which capabilities will be needed and when? How can we obtain them? HR is also responsible for: HR person responsible Jointly responsible Line manager responsible HR Policies and Procedures Addressing employee grievances Employee Pay role Disciplinary action Training and Development Employee welfare Labour management relations Job discription Performance appraisal Adherance to and advice on HR legislation Recuitment and selection Dismissal and redundancy Motivation Performance Management Process Induction of new staff Manpower planning Dealing with underperformance Contracts of employment Conflict resolution Exit interviews Staff coaching 2
Institute of Leadership and & Management HR work together with line managers, for example, in measuring and improving employee performance. They also give advice where needed such as when creating job descriptions. These describe job duties and responsibilities, including qualifications required and reporting relationships. As well as supporting line managers, HR also takes the role of employee advocate where needed. Employment contracts There are now several contract types to suit the changing needs of organisations, such as customer pressure to provide products and services at all times and increased flexibility. Employees also have changing needs such as balancing work and personal life commitments. Different types of employment contracts have implications for employees job security and including paid holiday, paid sick leave, maternity, paternity and adoption pay and leave. Advantages and disadvantages of different contract types Contract type Advantages for employers Disadvantages for employers Advantages for employees Disadvantages for employees Full time - Continuity of staff - Easy to plan staff availability - Staff commitment - Costly overhead - Inflexible - Contributes to head count - Subject to - Reliable pay - Full - Employer loyalty - Rigid - Work-life balance - Pressure of work - Long working hours - Less free time Part time - Meet peak time need - Less inflexible - Lower cost - Job handover - Subject to - More free time - Proportionate - Less pay 3
Zero hours - Highly flexible - Meets the need for varying resource (type and amount) - Low cost - Staff do not expect long term relationship - No labour surplus - Can be highly skilled - Savings in tax and long term compensation costs - May be lack of loyalty - Staff leave for more stability - High turnover - Security risk - Difficult to integrate - Staff morale due to varying terms - Disturbs core morale and culture - May not be highly skilled - Subject to some - Better than no work - Helps transition to full time work - Opportunity to keep up skills - Lots of variety - Fits with personal needs - Flexible - Can be far less total pay and - Insecurity - Unpredictable Fixed term - Appropriate for project work or unscheduled workload - Risk of loss of resource if project over-runs - Varied work experience - Risk of no work when contract ends Freelancers, consultants, contractors - Can be more productive (less beaurocracy) - Responsive to need - No overhead costs (office, training) - Experienced resource - Not subject to - Immediate access to expertise - Savings in tax and long term compensation costs - Hourly rate is high - Loyalty split with other clients - Unknown resource - Less easy to control work style - Working from home - No office beaurocracy or politics - Can be too much work or too little - Loneliness - Lack of team to work with 4
Manage personal performance and development 3 L2ML1LO2 Employment law The purpose of Employment Law is to provide legal protection to employers and employees. It is frequently updated and HR makes sure to keep up to date with the latest regulations. Recent legislation includes: The Working Time Directive, 1999 Guaranteed all employees a maximum 48 hours working week, and a four week holiday. Employees can choose to opt out of the Working Time requirement and agree to work longer hours if they wish. The Employment Relations Act, 1999 Governs Employer s relationships with Trade Unions. The National Minimum Wage Act, 1998 The Disability Discrimination Act, 1995 The Minimum Wage is increased each year in line with the rise in the cost of living. The Act defines discrimination in relation to disability as when a disabled person is treated less favourably by the discriminator than he or she would treat others. The Race Relations Act, 1976 Makes discrimination on grounds of race illegal. The Sex Discrimination Act, 1975 Protects employees against discrimination on the grounds of gender. The Equal Pay Act of 1970 Sets out that women and men should receive the same pay for doing the same type of work. References Hart, J. (2011) Social Learning Handbook, C4LPT.co.uk Civil Service Guide to Learning at Work accessed at: https://civilservicelearning.civilservice.gov.uk/static/files/wpl-guide-a5_v1-200112.pdf Copyright The Institute of Leadership and Management 2014. ILM is a registered trade mark of The City and Guilds of London Institute. These materials may not, in whole or part, be copied, reproduced, communicated, or otherwise distributed without the prior written permission of ILM. 5