It may seem that the concepts of HR Supply and HR Demand come from an almost clinical approach. This is most evident when we look at these concepts through a human capital lens and try to apply formulas to predict the ebb and flow of human resources supply and demand.
Predicting the patterns of potential employee movements are not isolated exercises – They are all connected and part of bigger picture circumstances.
For example, the overall economic situation in Alberta provides us with an excellent opportunity to consider how individual employees will be impacted by the changing economy.
As we read in this article, Alberta was once the province offering an abundance of HR demand. There were lots of jobs and lots of opportunity. Now, Alberta is the province facing the very real impact of too much HR supply – Increasingly fewer jobs and much less opportunity. HR’s role will be critical in determining how this oversupply will be managed and, most importantly, how the individual employee will be impacted as a result.
We cannot forget that any HR supply and demand analysis is about people. Analysis and formulaic approaches help us with planning predictions; however, we must remember that the implementation of these plans will have an impact on our fellow humans as we all move into a challenging and unpredictable future.
- What types of compensation strategies would lessen the need for layoffs in Alberta?
- If you had to accept a wage reduction in order to have your work colleagues keep their jobs, what would you do?
- Identify three critical steps that the HR professional should be taking when considering staffing reductions due to economic indicators.
- What would be the biggest challenge for you when preparing an HR plan that includes staffing reductions?