Based on the transition matrix for SBI, which positions are experiencing a labor

surplus or a labor shortage?

What tactics would you use to address the labor shortages? Why?

What tactics would you use to address the labor surpluses? Why?

When you look at the overall pattern of employee movement, do you see any

areas that are of particular concern?

What plan would you recommend for the future to prevent SBI from having

excess surpluses and shortages?

CASE STUDY: WORKFORCE PLANNING AT

STATEWIDE INSURANCE BROKERS

Rodrigo Fernandez is one of the three new assistant regional managers at Statewide

Insurance Brokers $($SBI$).$ His position was recently created to provide oversight and

advice for the regional manager in charge of the eastern region of the state, Wui

Sono. In their first meeting as a team, Rodrigo and the two other assistant regional

managers met with Wui to discuss areas throughout their region that might be

addressed in order to lower costs and raise profitability. Each of the assistant

managers was given different aspects to emphasize, and Rodrigo was asked to focus

on ways to reduce labor costs, increase labor productivity among employees, or

both throughout the four regions. In part, this request was a response to feedback

from the region regarding an increase in recruitment and training expenses as well

as a decrease in employee morale.

Rodrigo's first course of action was to evaluate some direct and indirect labor

costs related to turnover and retention. He also was concerned with labor surpluses

through the eastern region. Based on his analysis, Rodrigo arrived at some basic

points of information for the offices in his region. First, the eastern region of SBI is

organized into several areas throughout the region.

Each area has six offices. Each office consists of five primary jobs: insurance broker, office manager, assistant office manager, underwriter, and support personnel.

On average, each office has three insurance brokers, one office manager, two assistant managers, two underwriters, and eight support personnel.

Beyond the staffing levels, Rodrigo also was able to gather some information regarding the movement of employees within and out of the offices.