How to Downsize Successfully While Using HRP Fundamentals
A successful franchise owner of a prestigious sporting goods chain is feeling the effects of technology, with more and more online sales and less and less customers in the shops. Locally there are three stores, and typically each store needs the following positions staffed for optimum profitability and success: a store manager, an assistant manager, five department managers, and 20 customer service representatives, averaging $1 200 000 in annual revenue. However, there has been a trend of 20 percent sales decline in stores, with an increase of 30 percent sales online (last year the online revenue stream was $300 000). The franchise owner was able to handle all of the online sales with a team of five full-time remote workers (working from home) last year.
The owner wants each store to maintain their productivity, which he measures as the revenue per employee. He also thinks that there is potential to grow the online business.
Please help the owner by answering the following questions.
Using your HR planning expertise, forecast the demand of labour in the stores and the online environment over the next three years.
Assuming an annual 15 percent turnover level of in-store workers and a 30 percent turnover level of online-focused employees, determine HR supply estimates over the next three years.
Do you forecast a labour shortage or surplus? Develop a clear plan to help address the forecasted labour shortage or surplus.
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