TOPIC: Prepare the HR Planning for your job for Sept 2026
STEP 1: FORECAST
1. Forecast Labor Demand (LD) → How much labor will we need?
Factors affecting LD:
●​ Business expansion → LD ↑
●​ Production increase → LD ↑
●​ Competitive environment → LD ↑
●​ International factors (supply risk) → LD ↑
●​ Outsourcing → LD ↓
●​ Technology (ERP support) → LD↓
Conclusion: Labor Demand (LD) ↑
2. Forecast Labor Supply (LS) → How many laborers will we have?
Factors affecting LS:
●​ HR policies (slow hiring) → LS ↓
●​ Job requirements (high skill, experience) → LS ↓
●​ Internal workforce limitation → LS ↓
●​ Trade unions (limit overtime) → LS ↓
Conclusion: Labor Supply (LS ↓ / limited)
3. Compare LD vs LS
LD > LS → LABOR SHORTAGE
STEP 2: Options for reducing a labor shortage
1.​ Turnover Reduction
What is turnover reduction?
●​ Turnover reduction refers to strategies aimed at retaining existing employees
instead of replacing them.
●​ In this case, it is particularly important because Purchasing Executives require
experience, negotiation skills, and supplier knowledge that take time to
develop.​
Therefore, keeping current employees helps maintain stability and avoid the
loss of valuable expertise.
How fast is this solution?
●​ This solution is relatively slow because the company needs time to improve
compensation, benefits, and working conditions.
●​ Changes in HR policies cannot be implemented immediately, so it does not
address urgent shortages.
Who is affected?
●​ Employees benefit from better working conditions, leading to higher job
satisfaction and lower stress levels.
●​ The company retains experienced staff, reduces recruitment and training costs,
and maintains stable supplier relationships.​
Managers can plan more effectively due to a more stable workforce.
→ Overall, this is a sustainable long-term solution.
2.​ New External Hires
What are new external hires?
●​ New external hiring involves recruiting employees from outside the
organization to increase workforce capacity.​
●​ This is necessary because the Purchasing Executive role requires specific skills
and experience that cannot be quickly developed internally.​
●​ Hiring experienced candidates helps directly address the shortage of qualified
labor.
How fast is this solution?
●​ This solution is slow due to the time required for recruitment, selection, and
onboarding processes.​
●​ Additionally, new employees need time to adapt before reaching full
productivity.
Who is affected?
●​ Current employees benefit from reduced workload and less pressure compared
to overtime solutions.
●​ New employees may experience some initial difficulty adapting to the
company’s environment and processes.
●​ The company improves its workforce capacity and quality, although it must
bear recruitment and onboarding costs.
→ Overall, this is an effective long-term solution for building a skilled workforce.