Case Analysis Hr plan ( Human resources managementt and development) (1) (1)

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1 Labour Forecast and Turnover Analysis for a Sporting Goods Chain Yatin Gholetar 2021020017 Yorkville University Busi 2103 Nikki Sohaee December 18, 2023

2 Business Report: Labour Forecast and Turnover Analysis for a Sporting Goods Chain. Human Resources Planning The retail landscape is rapidly changing with the advent of technology and the shift towards online sales. This report presents an HR plan for a franchise owner of a prestigious sporting goods chain, who is grappling with these changes. The franchise comprises three local stores and an online sales platform. The aim is to maintain store productivity, measured as revenue per employee, while also growing the online business (Becker et al., 2023). It is projected that for a well-known retailer of sporting goods, there will be less need for in-store labor and more need for staff in the digital space. According to an average forecast provided by the company, over the next several years, its ecommerce revenue stream would increase by $300,000. This is wonderful news for the company as it gets ready to develop even further into online platforms. (Becker et al., 2023). Labour Demand Forecast The demand for labour in the stores is expected to decline due to the trend of decreasing in-store sales. Assuming a 20% annual decline in store sales, the labour demand in the stores could potentially decrease proportionally. On the other hand, the online environment is experiencing a surge in sales, with a 30% increase noted last year. Given this growth rate, it’s reasonable to expect the labour demand for the online environment to increase significantly over the next three years ( Topic: Sporting Goods Industry in the U.S. , 2023).

3 Labour Supply Estimates The supply of labour is influenced by the turnover levels in the organization. With an annual turnover of 15% for in-store workers and 30% for online-focused employees, the HR supply estimates over the next three years need to account for these attrition rates ( Topic: Sporting Goods Industry in the U.S. , 2023). Surplus or Shortages Based on the demand and supply estimates, the number of employees that will be surplus or shortages for each part of the business and for each year can be calculated. This will help in planning for recruitment, redeployment, or potential layoffs (Becker et al., 2021). Terminations and Outplacement Services In case of surplus employees, terminations may be unavoidable. In such cases, the organization should provide outplacement services to support the affected employees. This could include career counselling, job search assistance, and training for new skills (Becker et al., 2021). Labour Shortage or Surplus Plan Depending on whether the organization faces a labour shortage or surplus, different strategies need to be adopted. In case of a shortage, strategies could include aggressive recruitment campaigns, offering competitive compensation packages, and training programs to upskill existing employees. In case of a surplus, strategies could include voluntary redundancy programs,

4 redeployment to other parts of the business, and natural attrition without replacement ( 2022 Sports Industry Outlook , 2022). HR Strategies The HR plan will need to include strategies focusing on at least two areas of HR: Training, Career Development, Total Rewards, and Turnover Management. These strategies will be crucial in managing the changing labour demand and supply in the organization ( 2022 Sports Industry Outlook , 2022). An administrative assistant, five department heads, a shop owner, twenty customer service representatives, and a store owner appear to comprise the current workforce of 27. 15% of employees leave the company each year, which will result in fewer employees. As opposed to the online team, which employs more people and has a 30% yearly revenue with only five remote reps, the online team has more employees. STORE SALE The total expected income divided by the revenue per employee is the number of workers required over an extended period of time to maintain worker efficiency. First year: 960,000/ 44,444 = 21 employees Year 2 : 768,000/ 44,444 = 17 employees. Year 3: 614 400/ 44 444 = 13 employees

5 SALE VIA NETWORK Year 1 = 390,000 Year 2 = 507,000 Year 3 = 659,100 Over an extended duration, the number of workers required to sustain job productivity is equal to the total projected income divided by the revenue per worker. Year 1 employees = 390,000/60,000 = 7. Year 2 constitutes 507,000/60,000 = 9 employees. Year 3: 659,100/60,000 = 11 employees The previous projection makes it clear that there will be a reduction in the anticipated stock of human resources during the following three years. The quantitative analysis indicates that there is currently an annual decline in the stock of human resources. According to the HR prediction, the business will hire more people (Beadles, Aston, Lowery & Johns, 2015). In order to deal with surplus, the company needs to cut back on some of the extra staff and try to streamline tasks and places inside the business so that the best applicants may apply. Oversupply of Human Resources As a result of changing market dynamics and outside causes, a situation known as excess personnel commonly occurs in a commercial organization. There would undoubtedly be a significant overabundance of employees in the companies if the HR specialists neglected to

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