The paper “ Strategic Human Resource Planning - Labor Supply and Demand” is an outstanding example of a literature review on Human resource planning that continues to experience changes in national and global industry environments concerning effective and efficient human resource functions. (Nankervis et al. 2008). The federal government of Australia is looking for a long-term skills requirement plan based on industry assessments and demographic-economic modeling of higher quality to envelop and inspire the government training and education policies (Stone, 2008). Nevertheless, estimation of Australia’ s long-term labor demand is unreliable owing to a wide range of variability hence unlikely to provide better planning with the estimates (Freyens, 2010).
It also remains a challenge for the Australian government to balance domestic training and education for overseas labor supply and satisfying the internal labor demand. Environmental scanning and strategic human resource planning intertwine to engender interplay of labor markets with comprehensive skills, competencies, and practices that promote organizational growth (Nankervis et al. 2008, p. 133). Using a wider range of models has heightened the attempt to provide more accurate predictions of labor demand and supply than arithmetic estimations based on short-term cohort data.
This essay will assess the factors that influence demand and supply of labor based on certain models and data in Australia. Labor supplyCentre for Labor Market Research (2008) defines labor supply as the total number of hours that employees or workers are willing to work for a given wage rate. When wages are on the rise, employees tend to get incented and attracted to work for more hours (Hamermesh, 1996). Werner and Desimone (2012, p. 298) observe that strategic organizational planning takes into consideration the future changes in the supply of labor that is supportive of employees while increasing their morale, job satisfaction, levels of productivity, and staff turnover.
David Jones (2009, p. 17) predicts in The Weekend Australian that Australia in the coming few years will have five percent of its population leaving the workforce. This implies that there will be skills shortage as well as quality candidates irrespective of the level of the economy. According to Friends (2010, p. 85), the Australian organizational environment has been altered to a point where HR specialists and senior managers have had to integrate strategic plans and human resources to tap into the skills, competencies, and quality of the workforce.
For example, the mining and infrastructure industry that is experiencing a boom operates with a competitive platform and rapid technological change. Luoma (2000, p. 34) concurs that a country’ s capacity to take advantage of the present and future opportunities in productivity is threatened without this investment. Consequently, the government has had to relax its immigration laws and allow in more foreign workers with huge requirements for additional training and education. Nankervis et al.
(2008, p. 122) argue that the scarcity of skills has a huge impact on job performance and organizational growth. In support of this argument, Palmer (2007) notes that demand forecasting has often been used to determine the supply of skills into the labor market. The author decries that there has been more emphasis on the needs of the employers during planning for training at the expense of candidates’ preferences. This implies that it is possible to measure qualifications and not skills. For example, an Information Technology (IT) firm requires qualified IT professionals, and obviously, and there are more IT professionals looking for IT work.
Most job seekers fail to acquire such jobs because employers are not only looking for qualifications but also splendid experience in the IT sector. Computable Equilibrium (CGE) models and the Australian Bureau of Statistics have been inaccurate in workforce planning that have necessitated the use of skills inventories to capture employee skills and competencies comprehensively (D’ Annunzio-Green et al. 2004). Obtaining employees with advanced job aptitudes and skills is difficult as positions such as technical specialists, managers, and executives need to be filled by candidates with qualities of adaptation, innovation, flexibility, and specific job skills and competencies (Nankervis et al.
2008). It will be important to conduct the SWOT (strengths, weaknesses, opportunities, and threats) and PESTLE (political, economic, socio-cultural, technological, legal and environmental) analysis of an organization. This will help in understanding the future changes in labor supply and take advantage of opportunities in legislation and international cooperation for the exchange of skills and competencies.