External influences on HR objectives


Market/economic changes

If a recession is forecast, the plan might be to reduce the workforce by either natural wastage or voluntary redundancy. If buying habits of consumers change, for example more internet purchasing, the sales force could be reduced in size and more technical support staff employed

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Technological change

Impact on the skills required by employees at all levels within an organisation. Consideration should also be given to the impact of new technology on the motivation of workforce and how the HR function can address this issue

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Competition for skilled employees

May cause problems of staff retention. In many sectors, there are sever shortages of suitably qualified workers so a company may have to consider improving financial and non-financial incentives

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Population changes

As the UK population ages, there are fewer school leavers to fill vacancies, which can lead to higher wage costs

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Both national and European, can have an influence on th HR objectives. EU directives covering a wide range of HR issues have to be incorporated into UK law and become custom and practice in UK organisations

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