Strategic Human Resource Planning
Strategic Human Resource Planning is an integral component of the HR department of any organization. HRP refers to the careful planning of all the Human Resource Management processes with the aim of ensuring that their outcomes are aligned with the overall organizational goals and objectives. BHP Billiton is a mining company that is located in Australia. The company has in the past two decades enjoyed an increase in its performance and productivity and this is majorly attributed to factors such as strategic HRM, ability to meet the tastes and preferences of consumers and reduced costs of production. Some of the BHP’s products include petroleum, gold, natural gas, and uranium among others. In this paper, an assessment of labor demand and forecasting, labor supply and analysis and balancing supply and demand for BHP Billiton Company is highlighted.
Body
Labor demand forecasting
Labor demand forecasting entails finding the right number of employees, at the right time and with excellent skills and qualifications. Usually, organizations try to avoid a surplus of workers or gaps in their staff that end u lowering their performance and productivity (Prasch 2008, p.56). BHP Billiton has in the past fifteen years adopted suitable strategies aimed at promoting the productivity of its workforce. According to Yeates (2011), BHP Billiton claimed that it needed an extra 170,000 employees in five years’ time. Currently, the company has a total of 65,000 employees and this number of workers is expected to increase by 2.5% in the coming three years. By relying on labor demand forecasting, the company has in the past decade implemented an efficient organizational structure that encourages collaboration among its workers.
The Human Resource for BHP
The Human Resource for BHP, through Human Resource Planning, identifies gaps or surplus in its workforce and integrates suitable measures aimed at dealing with the issues. Skills shortage is a major challenge that most HR’s in Australia’s mining industry are grappling with. After the merger that led to the formation of BHP Billiton, the company repositioned itself in the mining sector. Based on labor demand forecast, the company concluded in 2003 that it needed more workers, both temporary and permanent. An increase in labor implied that the firm would enjoy an enhancement in its operational efficiencies and mining activities. Skills and qualifications are some of the elements that the company has over the years focused on when hiring its workers. By 2019, as a part of its expansion, BHP plans to hire estimated 5400 workers in Western Australia and Queensland.
BHP Billiton focuses on skills and qualification
BHP Billiton focuses on skills and qualification when hiring its employees. According to the company’s CEO, a skilled workforce contributes to an increase in its financial performance and productivity. Through managerial judgment, the company has in the past decade found it easy to predict its labor demand and at the same time effectively address labor shortages. According to The Conversation (2012), shortages of skilled labor in the Australian mining industry have, however, on several occasions hurt its quest for enhanced operational efficiencies.
Labor supply analysis
Labor supply is termed to as the number of hours that workers in a given organization are willing to work for a specified wage rate. It may also be referred to as the availability of an able workforce within a labor market. An increase in the supply of employees in an industry comes along with both benefits and drawbacks. Some of the advantages include efficiency in task handling and the ability for an organization to meet its set goals within the shortest time span. However, an increase in labor supply leads to high costs of productions that negatively affect the financial performance of a firm. Human Resource Planning relies on forecasts on product and service demand as well as the information on labor fluctuations within a company in the measurement of labor supply. In the event of failures of a workforce to match up with current needs and infrastructure, an organization will find it easy to pinpoint issues of labor shortage or surplus.
In the past fifteen years
In the past fifteen years, BHP Billiton Corporation has incorporated labor supply as a part of its Human Resource Planning and this has been critical in the enhancement of the productivity of its workforce. The Human Resource department for the organization, in 2005, implemented inclusivity as a part of the corporate culture. According to the strategy, the company was supposed to ensure that it promoted diversity in its workforce and this has over the year been attainable. Marin-Guzman (2018), states that BHP hires employees from different cultural and ethnic backgrounds. Subsequently, this has played a major role in the enhancement of its productivity. That aside, the company relies on internal metrics such as employee retention rates, satisfaction levels of the workers and the efficiency of the staff members in handling various tasks in determining its labor supply.
In the face of additional labor needs
In the face of additional labor needs within the BHP, the HR, through Human Resource Planning has in the past decade maintained its culture of hiring temporary but skilled workers in all its operational bases. The firm also outsources experts that provide professional help in various departments within the company. In so doing, the company enjoys an enhancement in its workplace productivity. In 2015, the company was faced with a significant increase in its costs and it ended up cutting down estimated 17,000 contractors and employee jobs in Australia (Lowry, Molloy & Tan 2006, p.42).
Balancing supply and demand
Balancing supply and demand of a workforce is essential in that it results in a productive labor force. Through Human Resource Planning, the HR for an organization has to find out and meet the needs of its employees. The HRP is vital in that it helps companies to forecast their current and future staffing needs, thus limiting a company’s exposure to labor shortages and surplus. Managers need to anticipate the movement of workers into and out of a company. Additionally, they are tasked with the role of implementing processes and activities that are essential for the promotion of employee competencies and satisfaction levels (Amason 2011, p.78). The HR, based on various internal factors, makes an assessment on the expense that it will incur in hiring new workers and at the same time strengthening its retention rates.
The Australian mining industry
The Australian mining industry, according to Turner (2012), was faced with labor crisis in 2012 as a result of shortages of skilled labor and BHP was directly impacted. BHP Billion, through its strategic Human Resource Planning, has in the past fifteen years implemented various strategies that are essential in the enhancement of its labor force. The Human Resource department, for instance, has put in place a variety of training programs that enrich its workers with skills from different fields. Subsequently, the platforms have been critical in bolstering its workplace performance. BHP, through its compensation packages and recognition systems, has been critical in improving its staff members’ retention rates.
The company also assesses the levels of skills
The company also assesses the levels of skills that are required in the firm by analyzing task handling by its workers before hiring new employees. Recruitment of new workers tends to be more expensive compared to sharpening the existing skills, thus the reason behind its strong incentive for fostering increased productivity internally through training programs. In the event of an increase in the costs of production such as in the year ending 2015, BHP has always been left with the option of downsizing its workforce. A balanced workforce within the company is thus made possible through strategies such as high retention rates, enhancing skills of the workforce rather than hiring new employees and sacking some of its employees in the event of labor surplus.
Conclusion
The success of an organization is dependent on the strategies that it adopts. BHP Billiton, through its Human Resource Planning, has in the past fifteen years found it easy to effectively balance its workforce demand and supply. The company focuses on internal factors such as employee retention rates, satisfaction levels of the workers and operational efficiencies in the determination of its labor needs. Through labor supply analysis, for instance, the company has on several occasions met the needs of its workforce, thus contributing to an increase in their productivity. The Human Resource Department, for the company, has in the past decade implemented various training programs that are instrumental in the sharpening of skills for its employees. Additionally, the BHP Billiton depends on labor demand forecasting in hiring skilled employees and at the same time dealing with challenges of shortages among the workers. As a part of its expansionary process, the company has predicted that it will open more operational base around Australia and this will call for an increase in its workforce. Hiring more employees will help deal with the issue of labor shortage. An organization that effectively deals with issues of labor surplus and shortages will always enjoy enhanced market sustainability.
Bibliography
Amason, A 2011, Strategic management. New York: Routledge. .
Lowry, D, Molloy, S " Tan, Y 2006, 'The Labor Force Outlook in the Mineral Sector 2005 to 2015’, National Institute for Labor Studies, pp. 1-64. .
Marin-Guzman 2018, 'All union Christmases come at once': Business balk at landmark labour hire regulation. Financial Review, Viewed 21April 2018 .
Prasch, R 2008, How markets work. Cheltenham, UK: Edward Elgar. .
The Conversation 2012, In the mining industry, skilled local labour remains an untapped resource, The Conversation. Viewed 21 April 2018, .
Turner, J 2012, Supply and demand: Australia's mining labour crisis - Mining Technology, Mining Technology. Viewed 21 April 2018, .
Yeates 2011, We'll need 170,000 workers, says BHP, The Sydney Morning Herald, Viewed 21 April 2018, .
