Final answer:
A firm's strategic plan should guide its employment planning, shaping its need for specific skills and competencies, thereby influencing hiring practices and employee retention.
Step-by-step explanation:
A firm's strategic plan should guide employment planning and determine the types of skills and competencies the firm needs. Observations, surveys, and interviews are crucial in conducting job analysis, which is essential to understanding what makes an employee best suited for a given job. Industrial psychologists often explore these dynamics to enhance hiring practices and employee retention.
Measures to increase human capital, such as encouraging education and apprenticeships, can be part of a strategic plan. Furthermore, economic policy may be designed to help workers whose skills are no longer in demand through retraining, improving their employability.