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PESTEL Analysis of HR

PESTLE analysis is primarily aimed at looking at the external environment of an organization, many HER courses ask students to use the PEST or PESTLE analysis model to look at their own function. In this context we need to imagine that the department (HER) is an organization in its own right and look outside.

Factors to include in your analysis may include the following: Political What is the culture of the organization, How is the HER function viewed by other functions? Who are the political champions of HER (or its adversaries)? Shareholder views Economic What is the budgetary position of the department, Is more money available? Are our customers likely to spend more or less money on the services we offer? What is happening to the financial status of the organization Interest rates Inflation Salary trends in the sector Sociological Other departmental attitudes

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