Employees are the backbone of every organization, but companies can’t always control every aspect of the staffing process. Internal factors impact staffing needs at each company, but external issues also play a major role. Companies typically have little or no control over external factors, forcing them to make adjustments as needed.
Many companies require candidates to have extensive technology training. For example, a candidate must have extensive training to enter the aerospace or robotics field. If there is a shortage of talent with these skills, staffing will be impacted, as companies will not have enough qualified applicants to choose from. Additionally, technological advances may impact staffing by automating a number of processes previously completed by humans, decreasing the number of employees needed.
Certain career paths require extensive education to prepare for work in the field. If the number of people pursuing this career path decreases, the talent pool shrinks. For example, prior to applying for a medical doctor position, a student must complete years of classroom education and residency programs to gain the required knowledge to successfully hold the job.
Government regulations may also impact the staffing process of an organization. Companies are required to adhere to certain labor laws regarding issues such as hiring, firing, compensation, work hours and health insurance. Failure to follow these guidelines can result in hefty fines and can even force the company out of business. (Ref. three)
The level of external economic activity can impact hiring. When the economy is going through a recession, many workers are laid off from their jobs, causing companies still hiring new employees to receive a higher volume of applications from qualified candidates. A larger talent pool may allow an organization to be more selective when choosing a candidate.
Industries experiencing above-average growth levels must hire additional staff at rapid pace. For example, the U.S. Bureau of Labor Statistics cites home health care services and individual and family services as the fastest growing fields, as of 2013. Employers in these fields are in direct competition with one another for the top candidates.