Introduction
Workforce planning and talent planning skills are key demands for people professionals to ensure that the company has adequate workforce to cater for its present and future needs. The report below is about Sun Energy and how it can benefit from the two concepts.
AC 1.1 - Explain how organisations strategically position themselves in competitive labour markets.
Strategic positioning of a company in the labour market means setting itself as distinctive from its competitors to attract the right talent (Si et al., 2023). A labour market defined as competitive has both employers and employees competing for each other. On one side, the employers are competing for talent and on the other side, talented employees are competing for suitable positions in leading companies. Ways to position themselves include;
Companies Becoming Employer of Choice
Striving to become an employer of choice means that potential employees choose the company as the first option (Bou Hatoum and Nassereddine, 2025). This can be due to several factors, including the level of pay, benefits, and a proper working environment. Employers are distinguished in four main ways according to Higgs model. These include employer of churn (poor working environment and poor pay), employer of cash (poor working environment but sufficient pay), employer of value (less payment and good working environment), and employer of choice (fair pay and great working environment) (Hana, 2022). Sun Energy, therefore, can become an employer of choice through offering higher pay that is also equal and fair. In addition, the company needs a great working environment.
Companies Using Competitor Analysis to Make Informed People-Practice Decisions
Deciding on the strategies to use to attract and retain talent needs supportive information about what other companies are doing. This is the basis of competitor analysis to understand the advantages and challenges that leading companies in the industry face (Zhang et al., 2022). Sun Energy needs to understand what leading companies are doing, such as British Gas, EDF Energy, Shell, and global companies, including Saudi Aramco. The analysis should consider areas, such as the level of pay and how they offer a great working environment. This information is then used to develop effective approaches to attract and retain talent. The main challenge with a competitor analysis is that there are instances where meeting the competitors’ approaches can be challenging and costly.
Companies Branding and Building their Images
Branding means promoting a positive and remarkable identity and name. It is a crucial element in marketing and creating awareness about the firm (Kupper et al., 2021). In terms of attracting and retaining talent, one of the most effective branding approach is for Sun Energy to develop great values and share them through CSR activities and during advertisements. Other components of branding are sharing about offers, such as learning and development and a supportive working environment (Yang and Battocchio, 2021). The key demand for companies and the real costs are implementing these branding approaches, which are not only costly, but also require sufficient time.
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AC 1.2 - Explain the impact of changing labour conditions on resourcing decisions.
A labour market details how the demand and supply of labour are balanced. It outlines the available opportunities and employees (Domash and Summers, 2022). The labour market helps in understanding factors, such as unemployment. In a tight labour market, the demand for talent is higher than the available potential workforce, which is common in skilled areas. In a loose labour market, the demand for talent is lower than the supply, which is mostly common in outdated positions. Two changes in labour market conditions are;
Ageing and Young Workforce
In the current labour market, it consists of a mixture of young and ageing workforce. According to the International Labour Organization (ILO), the number of aged workforce has been growing and people are working longer (International Labour Organization, 2024). On the other hand, there is an emerging younger workforce consisting of generation Z. As Sun Energy intends to hire more individual, the workforce composition must be a major consideration. In the UK, statistics from the House of Commons shows that in 2024, there were 3.69 young people aged 16-24, which were fewer by 32,000 than previous year (Francis-Devine et al., 2025).
The impacts on resourcing decisions of this factor for Sun Energy is that it needs to consider different recruitment approaches. For example, reaching the ageing population requires the use of print media advertisements and the TV while targeting younger talent requires approaches, such as social media (Harfield et al., 2021). There is also need for companies to consider long-term planning to address issues and challenges, such as turnover.
The Shift to Flexible Working
In a flexible working arrangement, employees select their working patterns (Shifrin and Michel, 2022). In today’s working environment, there has been deviation from the standardised and traditional working time-frame of 9:00 Am to 5:00 Pm. Instead, companies and employees are not embracing a working model that is suitable to their needs, such as preferred starting and ending time of their working schedule and working from home.
As Sun Energy hires new individuals, it needs to consider the flexible working option to attract and retain talent. One of the key resourcing decisions, therefore, is to offer benefits to targeted employees, including flexible working (Franken et al., 2021). In addition, the company needs to consider altering its working method to remain accommodative to current trends. Additional elements, including learning and development should also be integrated in flexible working methods.
AC 2.1 - Analyse the impact of effective workforce planning.
Workforce planning is an important process that aligns the people strategies with dynamics firms’ needs (Hayden, 2024). It is among the key activities that the firm requires to ensure that has a balanced supply and demand of skills. The core objective of workforce planning is to use intelligence gathered from demand and supply analysis to inform people strategies, such as recruitment and selection, learning and development, and workforce retention. Figure 1 below involves the steps of workforce planning.
Figure 1: Stages of Workforce Planning (Hayden, 2024).
A key element in workforce planning is doing a demand analysis, which comprises a detailed understanding of the company’s workforce requirements in the current and future (NIH, 2024). For example, Sun Energy needs to consider the underpinning drivers to the company’s workforce, the staff required for a project, such as shifting to renewable energies, and anticipated changes that will impact workforce demands, such as legal issues on working hours. In a supply analysis, workforce planning entails understanding the present workforce and projected changes with time due to issues, such as turnover. Consideration elements include the number of employees at various levels and departments, alignment between the workforce and the business strategy, and the impacts of turnover (Chiara et al., 2023). In a supply analysis, companies, such as Sun Energy can assess the internal supply, such as from existing employees or external, supply, including recruiting new individuals.
Workforce planning that covers demand and supply analysis is crucial in determining the existing gaps in the skills and knowledge according to the organisational strategy (Akl et al., 2022). For instance, Sun energy conducting a workforce plan will determine if it has the right workforce to support transitioning to renewable energy sources and the number of individuals that it requires. Analysing the benefits of workforce planning, the process helps in addressing labour costs, responding to global dynamics, including customer needs, identifying the right approaches to people development, and addressing inefficiencies at the firm (Akpan et al., 2023). However, the downsides of workforce planning is that aligning the demand and supply to organisational strategies require conducting sufficient information and collecting vast data to aid in making strategic choices. However, there are resources and time is of essence to ensure appropriate action at the right time. The negative impacts of misalignment between demand and supply analysis and intervention strategy is poor performance and loss of resources.
AC 2.2 - Evaluate the techniques used to support the process of workforce planning.
Workforce planning can be achieved through various techniques. They include;
Critical Incident Analysis
In a critical incident analysis, an individual or company uses situations and events as a learning tool (Lithoxoidou and Papadopoulou, 2024). Figure 2 below covers the key stages of critical incident analysis.
Figure 2: Critical Incident Analysis Approaches
In workforce planning, a company uses a situation or event and reflects on it to determine the missing knowledge and skills aligned with present and future needs (Hunt, 2023). For instance, Sun Energy can first simulate an event involving renewable energy processes to determine whether it has the appropriate workforce with the right skills for handling the requirements and activities. A reflection on this situation would then be applied in developing learning and development programs or recruitment of appropriate professionals.
The advantages of CIA include assisting in developing a risk and contingency planning measure, enhancing a company’s flexibility, and focusing on appropriate issues (Holzing et al., 2024). The disadvantages include dependence on the degree of appropriateness of captured data and events which are time consuming to collect and the planned future interventions may not address all issues as some are new.
Working Back From Costs
In this strategy, it requires one to determine the intervention based on prior identification of budget (Flyvbjerg, 2021). As Sun Energy moves to recruit new individuals, it has a budget to consider. For example, if it has set aside £1,000,000 for the shift to renewable energy sources, it means that there is a portion set aside for learning and development and recruitment. Based on this information, the company can then determine the total number of employees it can recruit or those that can undergo the training and development process.
Advantages of working back from costs include cost-efficient decision-making, identifying the right areas of optimizing spending, and ensuring that the decisions remain within the budget (Suwamo et al., 2023). Disadvantages include resulting in a neglect of key factors, such as demand for a certain aspect and limited budget means limited growth opportunities.
The judgement from the above evaluation is that to conduct an informed workforce planning process, companies need to consider several approaches and techniques to have a clear picture of its needs and how they can be met. Depending on one technique can be risky and ineffective.
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AC 2.3 - Evaluate the strengths and weaknesses of different methods of recruitment and selection to build effective workforces.
Recruitment and selection processes play an important role in a company performance. This is due to the company sourcing for the right people that will help achieve their goals.
Recruitment Methods
A current and widely used recruitment method is social media, which involves placing an advertisement on the social media, such as X, Facebook, and LinkedIn to attract potential candidates (Dube and Zhu, 2021). Sun Energy can use social media recruitment to reach a large audience. The pros of this method include reaching a large potential talent pool, less costly, and has integrated features, such as tracking applications. The cons include possibility of fake profiles and issues of cyber bullying.
Another recruitment approach is employment agencies, where Sun Energy can opt to use external recruitment companies to fill the positions (Abbas et al., 2021). The agencies conduct all activities, including placing advertisements and engaging candidates. The pros of employment agencies include saving time, exploiting the agencies’ expertise in the process, and costs saving. The cons include high costs and difficulty in ensuring cultural fit.
Selection Methods
An effective selection approach is interviews, which involve structured engagement with candidates to ask questions about the job and their fit into the company (Heimann et al., 2021). Sun Energy using interviews would provide an opportunity for gathering sufficient information and ensuring suitability for the job. Pros of interviews include collecting enough information about the individual and allowing the company the chance to understand other aspects, including the person’s communication skills. The cons include the possibility of recruiters having subjective bias and the interviews can take time.
Another selection method is using job referrals. When applying for a job, employees share contacts of referrals that can be used to validate their experiences and competence (Pieper et al., 2024). Sun Energy can engage them to learn more about the employee. The pros of job referrals include collecting additional information about the individual and validating their experiences and competence in the job. The cons of job referrals include making sure that the information provided is right and not manipulated and the risks of bias from the referral.
Judgement from the above evaluation is that it is essential for companies to apply different recruitment and selection processes to ensure strategic fit of the individual.
AC 3.1 - Discuss factors that influence why people choose to leave or remain in organisations.
An employee turnover is defined as the figure of individuals that leave the firm within a given period and as a percentage of the entire labour force (Lazzari et al., 2022). Employee turnover is important in determining the available job positions that are to be filled. Turnover can be voluntary where the employee leaves at will and can be involuntary where they leave as a result of consequences, such as gross misconduct.
Why People Choose to Leave
Leaving an organisation is mainly caused by high discontentment level. One of the main reasons is inequality and unfairness. This means that employees have been subjected to unfair and unequal treatment due to a difference, such as age or gender (Aliedan et al., 2022). For example, Sun Energy employees can feel unfairly or unequally treated during pay and benefits. When different genders or ages are working the same yet there is difference in the degree of pay and benefits without a material defence factor, employees choose to leave.
To address and prevent such an issue, it is important to have a working environment that promotes fairness and equality (Dooley et al., 2021). Sun energy should be driven by the values of equality and fairness. In addition, they should engage employees to understand whether they are being treated fairly and equally. Applying David Rock’s model, specifically the fairness dimensions, employees become motivated to stay in working environment that is fair.
Why People Choose to Remain
Remaining in an organisation is founded on the level of satisfaction and motivation of the employee. One of the key factors that causes employees to remain is when they are rewarded sufficiently according to their value and current trends. Through the right pay and various benefits, employees are highly motivated to remain at the firm. According to Lusardi and Messy (2023), financial wellbeing of employees is based on the degree of pay and benefits, which also promote the person’s engagement. At Sun Energy, causing employees to remain at the firm is a result of job evaluation and ensuring that the pay is competitive. There are however challenges to using pay and benefits, such as being costly yet the company may be performing poorly and the demand of ensuring that the pay is in tandem with other aspects, such as working environment and culture; otherwise, the employees will still leave even with high pay (Nanda and Banerjee, 2021).
AC 3.2 - Compare different approaches to retaining people.
Retaining employees means making talent stick in the company. A company with high retention means that it saves sufficient resources spent in recruiting their replacements. One of the approaches to promote employee retention is job enrichment. As described by Marta et al. (2021), job enrichment is how employers make the job more meaningful, rewarding, and interesting. At Sun Energy, for example, the company can give the workforce more responsibilities and autonomy. An example is allowing technicians to plan their entire work. The pros of job enrichment is that they enhance an individual’s engagement and motivation, which promote retention and also ensure growth (Tui et al., 2022). The cons include risk of more workload and the need to manage possible resistance to change.
Another approach to promote employees’ retention is training and development. According to Kishore and Fonceca (2023), training and development for employees involve developing programs that will ensure the individuals are equipped with appropriate knowledge and skills for their jobs. Training and development promotes retention through workforce motivation and engagement. For example, Sun Energy employees would have a feel that the company invests in their growth, which makes them want to stay. The pros of training and development include improved employee and company performance and high efficiency (Burhan Ismael et al., 2021). The cons of training and development include costs and ensuring that the learned content is right for the company’s present and future.
The similarities of the two approaches is that both methods inspire individual growth and development. In addition, job enrichment and training and development focus on the specific roles and responsibilities (Ahmed et al., 2023). The main difference is that training and development requires the company to invest various resources in equipping the employees with the right skills and competencies. However, job enrichment may not require resources. Instead, it is about adding challenges for the individual to complete. Another difference is that training and development requires the employees to build their skills and knowledge as directed by instructor (Bahl et al., 2022). However, job enrichment entails a wide variety of measures to inspire growth, including offering workforce autonomy and offering feedback to one’s progress and growth.
AC 3.3 - Explain the impact of dysfunctional employee turnover.
The level of skills and competencies of individuals leaving an organisation determines the type of turnover (Maertz et al., 2023). When it is the average or weaker individuals leaving, it is termed as functional since the company can use the opportunity to build its workforce through hiring the right and competent replacement. When the individuals leaving are the stronger and competent ones, this type of turnover is termed as dysfunctional. The term is attributed to the costs implications that those leaving have to the company.
Direct Costs
Dysfunctional turnover has a significant impact in the company’s financial health since it has to find a suitable replacement, which requires vast resources. To hire a new employee, companies spend about 33% of the individual’s annual salary according to Hall (2019). This means that turnover has an ability to affect the business’ performance and sustainability. This also makes the company less engaging to others. Losing a competent and strong employee also means that the organisation will need more resources and time to process new employees and those that are departing. For example, there is need to have interviews and interaction with those leaving the company to understand more about their reasons for departure and areas of improvement (Gan and Voon, 2021). There is also time lost in processing the starting individual through activities, such as onboarding. Another important cost-related area due to dysfunctional turnover is the resources required for training and development of the individual. A sum of these resources may affect the company in a major way, resulting in reduced profitability.
Indirect Costs
Indirectly, stronger employees leaving means that the productivity process is significantly affected. This is due to the person leaving having an impact on the company’s team working process. This means that when a strong employee leaves, the remaining team members may lack the level of enthusiasm that they had before when working with the person (Khumalo, 2022). As a result, this creates more discontent in the company and one of the key risks is that the remaining employees and team members may also resolve to leave the company, thus damaging the company’s reputation (Sainju et al., 2021). Another indirect cost involves the company losing the investments that it had prior made for the leaving individual.
AC 4.1 - Assess suitable types of contractual arrangements dependent on specific workforce need.
Contractual arrangements provide a guide of how the relationship between an employee and the employer exists and is managed (Nayak et al., 2021). The arrangement also provides details of what each party should do and their responsibilities. The choice of a contractual arrangement is based on various factors, including the specific need. Two contractual arrangements include;
Contractor Contracts
In this arrangement, it involves an independent party or individual delivering services to a company in exchange of compensation (McKeown and Pichault, 2021). The person or company is engaged under specific terms and time-frame to offer their specialized services. For example, Sun Energy intends to move from the traditional sources of energy to new ones and among the key factors to consider is a company or individual that will offer the specific skills and knowledge. For instance, there will be installations, which can be done using a contractor.
The workforce needs influencing this contractual arrangement is the possibility of accessing specific professional skills that would be expensive to get in the long-term basis and limiting recurrent costs and other issues, such as getting specific machines for the task. The advantages of contractor contracts include independence and flexibility of the contractor and the company accessing specific and enhanced skills (Wisely and Pertiwi, 2024). The disadvantages of contractor contracts are high costs in the short-run for the company and to the contractor, there is inconsistency in jobs and fewer benefits.
Zero Hour Contracts
In this contractual arrangement, the company does not have the obligation to provide the minimum work hours to an employee who on the other hand does not have to accept the job (Dolado et al., 2024). These contracts are common in jobs that are inconsistent in availability. An example of such a contract is when Sun Energy needs to do a project and needs workforce, such as projects involving renewable energies.
Workforce needs influencing this arrangement are jobs not available all the time and in cases where the company is avoiding recurrent expenses for permanent employment with a fluctuating job requirement (Vadean and Allan, 2021). The advantages of zero-hour contracts include the individual being flexible and the company avoiding recurrent costs and expenses. The disadvantages of zero-hour contracts are inability by an individual to plan themselves in the long-term due to fluctuating jobs and for the company, there is a challenge in recruitment to attract quality candidates.
AC 4.2 - Explain the benefits of effective onboarding.
Employee onboarding is described as how new hired employees are oriented into the company and their jobs (Ibrahim et al., 2022). During the onboarding process, the new employees are introduced to the company including its culture, structure, history, other employees, and any additional information or details that they need to know. Important components of the onboarding process are clarity in the roles and responsibilities, socialisation, performance management, and ensuring that the newly recruited individuals have the right form of support for their job.
Benefits of Onboarding
Employee onboarding ensures that the newly recruited employee is effective in the role hired. During the onboarding process, there are several activities related to the job that go on (Ritz et al., 2023). These include clarifying the expected roles and responsibilities and ensuring that the person has all the relevant support for the job. For example, Sun Energy recruiting a solar and wind professional will have to specify its objectives and expectations from the individual. In addition, the company focuses on ensuring that the employee has all the support for the job, including protective equipment and tools for the job. As a result, the person can effectively do their roles and responsibilities to the optimum level (Frogeli et al., 2023). Failure to orient the person and ensure that they have all the support and information results in poor performance and time-taking process to settle down and show their effectiveness in the job.
Another benefit of onboarding is to prevent turnover of the newly recruited employee. One of the key elements of onboarding is to ensure that the person has settled well at the firm and that they have all the support that they need (Sani et al., 2023). They are also introduced to the entire company, including the management and those in their department. By implementing these components, the newly resourced employee becomes committed to the company, motivated, and shows high level of engagement. This makes them stick to the company and have no intention to leave (Jeske and Olson, 2022). Poor onboarding and induction of employees into the company results in dissatisfaction, conflicts, and time-taking process to settle at the company. Poor initial experience at the company is one of the leading factors of attrition.
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