External Planning Factors
These are the factors that influence the business from outside its direct control.
Supply of labour - What are the trends of the area the business is in? Is there any particular type of trade in that area? Nationally, the supply of labour is dependent on trends in unemployment and the types of skills that are needed by employers. What is the effect of Britain's membership of the EU?

Labour costs - The cost of labour, as a percentage of the other costs within a business, will depend on whether the business is capital or labour intensive, as well as the extent to which the skills needed by that organisation are available and accessible. In the UK, labour costs are also governed by the national minimum wage.

Workforce skills - Using published national statistics, organisations can see the types of skills that are available in their local area or region. Businesses need to consider their future needs and those of their competitors in order to make sure they attract the right people - this may mean extra incentives being offered.

Government policy - Government policy and changes to education policies can lead to gaps in skills, or gaps in skills being addressed.

Labour market competition - As a business plans its workforce needs for the future, so do other businesses within the same industry. There may not be enough skilled employees for each business, so you may need to offer more money to attract the right staff, however, you need to manage your funds well to make a profit.

Changing nature of work - 'A job for life' used to be a standard idea in the workplace, but now employees need a wider range of skills and be willing to change employer and job role in order to stay in work. Overnight working, flexible working hours and working from home are now commonplace in the workplace. Flat organisational structures mean employees may