Factors Affecting Staffing

Staffing is basically a dynamic process and it is affected by various external and internal factors.

External Factors:

There are various external factors that affect the staffing process and organization has no control over these factors.

• Nature of competition for Human Resources: - In India there is a cut throat competition among organization for hiring managerial talents both fresh and experienced, computer professionals etc. Companies are making campus recruitments and students from reputed institutes like IIMs are being placed on very high packages. Companies are amending changes to retain their good employees and offering a good working environment and salaries.
• Legal factors: - There are various legal provisions which affect the staffing policies of an organization. Various acts which provide restrictions to free recruitment are Child Labour Act 1986, Employment Exchange (compulsory notification of vacancies) Act 1959and Mines Act 1952. Also some provisions regarding compulsory employment of certain categories like OBC, SC/ST affects the staffing policies of an organization.
• Socio-culture Factors: - Various socio-culture factors affect the staffing process due to which certain jobs are to be given to certain categories of people like our culture prevent the women to be employed on in manufacturing operations involving physical exertion.
• External influences:- There are various other elements which exert pressure on organization like political pressure to employ local people or pressure from business contacts.

Internal Factors: -

• Size of Organization: - Small organization cannot have same staffing practices which a large organization may have; it may not be able to attract highly talented staff. Even if it tries to do so it may increase the staffing cost.
• Organizational Business Plan: - Organizational business plan directly affect the staffing function because it determines the type of personal that may be required in future. On the basis of business plan growing organization may need more staff in the future and declining organization will have to shunt out its staff and stagnating organization will work for retaining its staff. Staffing strategies may be different for these organizations.
• Organizational Image: - organization image also affects the staffing practices. Organizational image depends upon facilities to staff for training and development promotional policies, working conditions and compensation incentives etc. if all these factors are positive then organization will attract more candidates.