The company needs to have enough workforces to secure its stable and sustainable growth. The HRM Function has to conduct regular analysis of the job market potential to make sure, the location of the company is not a limiting factor for the growth.
The HRM Function has a lot of information sources about the job market development and it has to invest its time to make a proper business analysis for the top management. The top management can make a decision about the move of the business to another location and the HRM Function will be responsible for the decision then.
The HRM Function can use following information sources for the job market potential analysis:
- Internal measurement from the recruitment and selection process
- Information from the recruitment agencies
- Local Universities Studies
- Statistical Office information
- Public surveys provided by the external companies
The HRM Function has to show its potential to work with a lot of different information sources and its ability to produce an report based on many sources and numbers, which shows a sharp opinion of the HRM Function. The top management has to see the interest of the HRM Function in detailed monitoring of the external world to help the organization to be more competitive on the market.
The HRM Function has to put the information to the context of the region and the skills required by the company. The job market potential analysis is important for the business decisions about the strategic shifts in the organization, which can lead to need for a different set of skills and competencies.
The HRM Function has to develop a good set of recruitment measures to have enough data to analyze. The HRM Function can do the nice job market potential analysis without numbers, but it will be just the internal opinion. Or the HRM Function will have to invite the external consultant to get some numbers and then the HRM Function will be seen as incompetent and unable to deliver sophisticated results. The HRM Function has to show, it can produce a nice report on its own.
