HR SWOT Analysis

Companies conduct SWOT analysis so that they can better analyze their internal and external environment. Aside from SWOT analysis, companies also use PESTLE analysis and Porter’s five forces to have a better understanding of their environment (competitors, products, taxes, etc.). While some companies conduct SWOT analysis on a company-wide vantage point, some companies conduct SWOT analysis per department basis (sales, accounting, human resource, etc.).

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This article will specifically discuss how to create a human resource SWOT analysis. Examples in PDF format are also presented for you to use as a guide when you will be eventually creating your own analysis. You may also see personal SWOT analysis examples.

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SWOT Analysis: Definition and Uses

Before you create a SWOT analysis, you first need to understand the concept of a SWOT analysis and why companies use it to full effect. We also included the basic components of a SWOT analysis and how all components fit each other to form a single and unified analysis.

SWOT analysis is a strategic planning technique used by individuals and organizations to identify strengths and weaknesses (internal factors), as well as opportunities and threats (external factors). SWOT analysis is effective for short-term and long-term planning.

In regards to short-term planning, companies can have the option to modify their product lineup or completely change it based on the results of their SWOT analysis. They can also add employees having specific skills to increase their production, or they can outsource some of their business functions (payroll, job hiring, etc.) to lessen company costs. You may also like how to prepare SWOT analysis for business?

In terms of long-term planning, SWOT analysis helps small companies and large corporations make better business decisions through the revision of current company policies. Companies do not immediately change their policies just because of various external factors affecting their daily operations. If these external factors put businesses at risk (for example: competitors having a bigger market share, government implementing higher taxes, prices of raw materials increasing, etc.), then it is advisable for companies to restructure their policies as well as their organization and products.

One of the advantages of using SWOT analysis is that it lists down all the factors affecting the business from the inside as well as outside. It helps businesses create better short-term business decisions, but not exactly long-term. External factors can never be foretold, and operations become difficult if the company failed to identify a number of threats and opportunities that will eventually affect their daily operations. You may also check out why every business needs a good SWOT analysis.

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Creating an HR SWOT Analysis

Listed below is an example of a human resource SWOT analysis for a contact center outsourcing company. You may use some of the items listed below for your own company HR SWOT analysis.

1. Strengths

• Most company employees do not have absences or tardiness issues. About 80% of employees have a total combined of ten late and absences for the previous six months. You may also see statement analysis examples & samples.
• 70% of regular employees have been hitting the monthly quota, in which for May all of the employees hit an impressive 100%. The company’s monthly quota is for each employee to answer and resolve 100 customer service calls. You may also like what is an analysis?
• Of the company’s 23 teams across six departments, 17 already had successful team building activities. Most of the team building activities were conducted during the weekend, through beach overnights and mountain trekking. You may also check out business analysis examples & samples.
• As of today, computer units that needed to be overhauled were down to three, from 12 last month.
• No complaints are received after the company shifted from an Ubuntu operating system to Windows 10.

2. Weaknesses

• Despite most employees hitting their monthly quota (with all employees hitting 100% for May), revenues have not increased for the past six months. Revenue actually dipped for April, the lowest monthly revenue the company has recorded since it began operations on September 2013. You may also see critical analysis examples & samples.
• The company received 54 resignation letters the past year, also the most since the company opened in 2013. From 2013–2016, the company only saw 23 resignations combined.
• Even though most of the computer units were overhauled, it still affected operations as successful applicants were not hired due to some computer units being unavailable for use. You may also like process analysis examples & samples.
• Since 2013, job applicants have decreased although the number of applicants for 2017 increased from 2016.

3. Opportunities

• The company plans to open a satellite office and transfer 20% of the employees there. The company also plans to hire around 20 people for the satellite office. The expansion is a result of the company’s partnership with the local community to increase job opportunities within the area. Two other companies have also signed the said agreement with the local government and are planning to open satellite offices at the end of the year or early next year.
• The opportunity to hire new employees will be beneficial for the company as customer service transactions will be faster and more streamlined. The time period to resolve complaints will also decrease significantly. You may also see requirements analysis examples & samples.
• After implementing the Windows operating system for all computer units, the company is looking to continually update the operating system for the computer units to perform at maximum capacity. You may also like literary analysis examples & samples.
• To assist with the expansion activities, the company is looking at three private investors for the purchase of new high-speed office equipment. Profit sharing or equity will still be discussed between the parties involved.

4. Threats

• Since the company has partnered with the local community to provide jobs, there is a possibility that the company might not be able to find qualified candidates, thus resulting in applicants being hired from other locations. You may also check out company analysis examples & samples.
• The local partnership has also resulted in two other companies joining to provide job opportunities. There might not be enough vacant jobs for all applicants, or there might not be enough qualified applicants to fill the vacancies.
• Four other contact centers within the area have higher profits which should pose as a concern with the company already seeing a dip in revenues the past few months. You might be interested in sales analysis examples & samples.
• There have been rumors going around in which business renewal taxes will increase the next year to fund for city infrastructure projects (roads, health centers, government offices) under the new city administration.

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We hope you found this article to be informative and helpful when you will be creating your own human resource SWOT analysis. We also provided a sample of an HR SWOT analysis for you to use as a reference.