As you’ve learned, the staffing function is continuous—it’s constantly taking place within the business or organization. The reason for this is that human resources needs are always changing. These changes don’t occur just when someone quits or transfers to another position. There are actually a number of different indicators that managers look for to know when a change in human resources is needed. They include:

Organizational growth or expansion. Whether a business needs to add one more customer service representative to handle increased sales or needs to staff an entire new facility set to open in a few months, any sort of organizational growth will require additional human resources.

A changing economy. During prosperous economic times, a business may enjoy increased sales volume and profits, allowing it to hire extra employees to keep up with higher production levels. In a sluggish economy, however, production may decrease, and businesses may have to cut back on human resources to stay profitable. Either way, economic conditions have a clear impact on the staffing function.
Competitive pressures. Competition can influence the staffing function in several ways. If, for instance, a competitor is offering superior wages and benefits to employees, a business may have to reevaluate its own compensation plan if it wants to attract top talent. Or, consider the intense level of competition in the technology industry. It certainly drives managers to make sure they have the smartest, most capable employees in place to create, innovate, and stay on the cutting edge of new advances.

New management. Ownership and top-level management doesn’t change as often as the employees in lower level job positions do, but it does happen. With new management often comes a new management style or philosophy. Perhaps a business’s new owners want to switch from paying sales associates a set salary to a more commission-based approach. This is certainly an issue that must be addressed within the staffing function.

Changes in government regulations. A great number of laws and regulations govern how businesses and nonprofit organizations operate. A change in those regulations can affect the staffing function. For example, the Federal Motor Carrier Safety Administration may change the maximum drive-time limit for interstate truck drivers from 11 hours to 10 hours. This may mean that a shipping company has to reconfigure some of its routes or move drivers to different shifts.
Need for new types of skills or experience. The business world is dynamic—always evolving. New technology is introduced. Old products become obsolete as fresh innovations arrive on the scene. Modern job “specialties” such as IT or social media management pop up—these positions didn’t even exist a couple of decades ago! As times change, businesses need employees with new types of skills, experience, interests, and talents. The staffing function should help an organization keep pace with these needs.
Need for process improvement. Many times, businesses undergo changes to improve their operating processes and to become more efficient. Perhaps managers learn that the shipping department is overstaffed, while the manufacturing line is understaffed. That kind of situation could certainly slow down an organization’s productivity. Improving processes often results in changes in human resources.

Change happens whether it’s welcomed or not. Businesses that can adapt quickly and effectively to change are the ones that survive and thrive. The staffing function plays a key role in an organization’s ability to ride the tide of change.