Personnel Planning: The Importance of the Labour Market

Abstract

Employing organisations cannot isolate themselves from their external environment. Many of the techniques and approaches currently used by personnel planners, however, focus specifically on the internal management of human resources. This paper illustrates some of the main ways that the external labour market can impact on the organisation, and suggests the need for personnel planners to better understand such interactions. It goes on to identify the main information needs for personnel planners to do this and the sources of the relevant data. It concludes by recommending that personnel planners widen their perspective and planning processes to take account of the growing importance of the external labour market.