HR MANAGEMENT - Factors Affecting Manpower

Factors Affecting Manpower

by Chris Joseph, Demand Media

Be sure to plan your workforce needs adequately.

Having adequate manpower on hand is an important component in the success of your small business. Manpower shortages can result in production shortfalls or the inability to meet the needs of your customers. Too large of a staff can leave you with unwanted expenses due to a bloated payroll. A number of factors can affect the manpower needs of your business.

Organizational Structure

The nature of your organizational structure will help determine your manpower needs. For example, if you organize by departments, you may decide that you need one person to man each department. If you organize by function, such as sales, shipping or accounting, you will have to assess each function to determine the number of workers needed to staff it.

Location

Your business location will play a key role in your manpower situation. If you're located in an area where unemployment is low, you may have difficulty finding enough qualified applicants to fill your open positions. If your open jobs require a high degree of specialized skills, you may need to expand your recruiting efforts outside of your geographic region by implementing methods like online recruiting.

Expansion

Your business may be small now, but you might have plans for future expansion. If so, you need to assess your future needs and determine what types of new positions you will need to create. Also consider whether current workers possess management potential and how you will groom them for that development.

Outsourcing

Consider which functions need to be performed in-house and which you can outsource. For example, if your business is project-oriented, such as an Internet marketing service, it may be more cost-effective to outsource copy writing jobs as opposed to hiring a full-time copywriter. If you are not in a position where you can afford to offer fringe benefits, you may need to outsource, since it may be difficult to attract regular full-time workers.

Business Conditions

Economic factors and general business conditions will help determine your manpower needs as well. If your business is struggling or experiencing a downturn, taking on additional staff may not be an option. A new competitor in town may also attempt to lure your employees by offering them higher wages and better benefits, resulting in the need to hire replacements.

Employee Retention

Your ability to keep employees will affect the size and condition of your workforce. According to Retention Naukrihub, key components to employee retention include areas such as training and development opportunities, as well as the overall level of communication within your organization.