Workforce Planning and Building Your Business

Learning about the national and local job markets--and the factors that influence them--will help you develop your workforce plan. Key data points to watch include:

• The local unemployment rate: A large pool of highly skilled employees looking for work in your region may allow you to hire great candidates for mid- and high-level positions. 
• Community demographics: College graduates coming into the market in your area may be able to fill entry-level slots.
• Competitors: To attract the best candidates, be aware of your competition, and offer compensation and benefits packages in line with your industry. 
• Social, technological, and economic trends: A recession, for example, may allow you to attract highly skilled employees with ease. A booming economy, on the other hand, may make finding such employees more difficult, and increase the importance of retaining your valued employees. 
• Political and legislative trends: Changes in federal, state, or local laws may affect your industry, hiring ability, or the kinds of benefits you can offer your employees. 
  

Sources such as the U.S. Department of Labor, the U.S. Bureau of Labor Statistics, employer associations, local and national news reports, and competitors’ annual reports are good places to look for the information described above.