Decisions made at this stage have long-term consequences for productivity, costs, morale and turnover. Poor acquisition often leads to underperformance, increased training costs, and workplace conflict later in the cycle.

1) Staffing needs and workforce planning

Short-term workforce planning

• focuses on immediate needs such as busy periods, staff absences, or short projects
• often addressed through casual employees, overtime, labour hire or short-term contracts

Long-term workforce planning

• linked to growth, expansion, retirements, technology change, or new services
• often addressed through permanent recruitment, apprenticeships and training pipelines

Example: A hospitality venue in Perth may hire additional casual staff before summer and major events, while a construction business may plan long-term by recruiting apprentices because projects are secured for the next 12–18 months.

2) Job analysis and job design

Before recruitment begins, businesses must understand what the role involves and how the work should be structured.

Job analysis

Job analysis is the process of examining a role to identify:

• key tasks and responsibilities
• required skills, knowledge and qualifications
• level of responsibility and decision-making authority
• working conditions, including physical or safety demands
• who the employee reports to within the organisation

Job analysis ensures the business knows exactly what needs to be done and what type of employee is required.

Job design

Job design refers to how tasks and responsibilities are organised within a role to improve:

• efficiency
• motivation
• job satisfaction
• productivity

Job design decisions include:

• how varied the tasks are
• how much autonomy and responsibility the employee has
• whether work is repetitive or skill-based
• how much teamwork is involved

Poor job design can lead to boredom, stress and high turnover, even if the employee is well-qualified.

3) Job descriptions

4) Recruitment

Recruitment is the process of attracting a pool of suitable applicants for a vacant position.

Internal recruitment

Internal recruitment involves filling vacancies by promoting or transferring existing employees within the business.

External recruitment

External recruitment involves attracting applicants from outside the business.

5) Selection

Selection is the process of systematically assessing applicants to identify the candidate who best matches the job requirements and the organisation’s needs.

The purpose of selection is to minimise poor hiring decisions and reduce future training, supervision and turnover costs.

Selection process

6) Indicators of effective acquisition

Successful acquisition is reflected in:

• lower staff turnover
• fewer performance issues during probation
• faster time to reach expected productivity
• reduced training and supervision costs
• positive feedback from managers, colleagues and customers

Effective development improves productivity, safety, motivation and retention, while poor development can lead to mistakes, low morale and high staff turnover.

What happens during induction training?

Induction typically includes:

• introduction to workplace policies and procedures
• explanation of job duties and performance expectations
• workplace health and safety training
• introduction to supervisors, team members and reporting lines
• explanation of hours, pay systems and workplace rules
• familiarisation with equipment, systems or software

Example: A new employee at a Perth construction site would complete safety inductions before starting work, while a retail employee in a shopping centre may receive customer service, POS system and store policy training.

What is training?

Training is the process of developing employee skills and knowledge so they can perform their job effectively now and in the future. Unlike induction, training is ongoing and occurs throughout an employee’s time with the business.

Training may be provided:

• when employees start a new role
• when technology or processes change
• when employees are promoted
• to improve performance or safety

Objectives and benefits of training

What is mentoring?

Mentoring is a form of development where a more experienced employee supports and guides a less experienced employee over time.

Mentoring helps employees:

• build confidence
• develop problem-solving skills
• understand workplace culture
• prepare for future roles

Mentoring is commonly used in:

• apprenticeships
• graduate programs
• leadership development

Example: An experienced tradesperson mentoring an apprentice on a building site, or a senior nurse mentoring a graduate nurse in a Perth hospital.

What is on-the-job training?

On-the-job training occurs when employees learn by doing the job itself, usually while being supervised or coached by a manager or experienced colleague.

This type of training takes place in the actual work environment using real equipment and tasks.

What is off-the-job training?

Off-the-job training occurs away from the normal workplace and focuses on learning rather than performing the job.

Examples include:

• external courses and workshops
• TAFE or university programs
• online training modules
• simulations and role-plays

Why development matters overall

Businesses that invest in effective induction and training are more likely to:

• reduce staff turnover
• improve safety and compliance
• increase productivity and service quality
• develop future leaders internally

In contrast, businesses that neglect development often face higher costs, more errors, and lower employee morale.

Effective maintenance reduces staff turnover, absenteeism and conflict, while poor maintenance often leads to disengagement, underperformance and costly employee exits.

Businesses maintain employees primarily through rewards and recognition, appraisal, and performance management.

Rewards and Recognition

Rewards and recognition are used to motivate employees, reinforce positive behaviour, and encourage high performance. They signal what the business values and help align employee behaviour with business goals.

Appraisal

Performance Management

Performance management is an ongoing process used to ensure employee performance supports the business’s overall objectives. It goes beyond appraisals by continuously linking what employees do each day to what the business is trying to achieve.

Linking business targets to employee targets (the key idea)

For performance management to be effective:

• the business sets clear organisational goals
• these are broken down into departmental targets
• individual employees are given measurable performance targets that contribute to those goals

This alignment ensures everyone is working toward the same outcomes.

If employee targets are unclear or unrelated to business goals, effort is wasted and motivation falls.

Why performance management matters

Example: A logistics company may link delivery-time targets set by head office to driver performance metrics, ensuring individual performance directly impacts overall business efficiency.

How separation is handled affects staff morale, business reputation, legal risk, and future recruitment.

Poorly managed separation can result in disputes, unfair dismissal claims and damage to the employer’s brand.

Voluntary vs involuntary separation

Types of separation

3) Retrenchment / Redundancy (involuntary)

Retrenchment, also known as redundancy, occurs when a job role is no longer required by the business — not because of the employee’s performance or behaviour.

Key point for students: ➡️ The role becomes redundant, not the person.

Common causes of redundancy:

• economic downturn or reduced demand
• restructuring or downsizing
• automation or technology replacing tasks
• business closure or relocation

In genuine redundancy situations, employers may be required to provide:

• redundancy pay
• notice or pay in lieu of notice
• consultation with employees
• assistance with transition where available

Example: A construction company retrenches workers after a major project finishes and no new contracts are secured.

Why this must be handled carefully:

• redundancy must be genuine and justified
• poor handling can lead to unfair dismissal claims
• morale of remaining employees can be affected

4) Dismissal (involuntary)

Dismissal occurs when an employer terminates an employee’s contract due to misconduct, underperformance or breach of workplace rules.

Key point for students: ➡️ The employee is at fault.

Dismissal can occur in two main ways:

• summary dismissal (immediate termination for serious misconduct)
• dismissal after warnings (for ongoing poor performance or minor misconduct)

Dismissal procedure

Summary dismissal may bypass some steps if misconduct is severe (e.g. theft, violence, serious safety breaches).

Why separation procedures matter