Human resource management helps to maintain sufficient staff levels for current productivity and projected company growth. A human resources department often makes decisions based on the projected financial return of hiring a candidate, according to the Cornell University School of Industrial and Labor Relations website. But there are other factors affecting human resource plans that should also be taken into consideration.
It costs money in relocation fees to bring in qualified employees from out of a company's immediate geographic location. Even transferring employees from other corporate offices can be expensive. The preference for a human resources professional is to reduce costs by hiring candidates from the immediate geographic area. But when the talent pool in the local labour force does not match the needs of the company, that can cause human resources plans to change.
The human resources department needs to work within the budgets of the various departments it is hiring for, and that can limit the kind of employees that can be hired. If the sales department needs a new vice president of sales in a field that averages £65,000 per year in compensation, but the budget only allows for £52,000 per year, then that limits the kind of employee the human resources group can hire. The sales department may have to accept a vice president who does not have all of the qualifications the company is looking for.
The human resources department works with the managers of all of the other departments to create staffing plans that will sustain the company and allow for future growth. But when staffing projections are not accurate, the plans of the human resources department are affected. Bad planning by departmental managers, such as not projecting how many qualified engineers the production department will need in the coming year, can cause the human resources department to have to scramble to meet the company's needs.
Competition in the human resources field is different than almost any other department in the company. When it comes to finding the right talent, your company is competing with every other company in the area. If you need logistics people, then you are competing with any other company in the area with a warehouse, regardless of what the company sells.