PEST analysis 

A PEST analysis helps you to consider what external influences are important and the extent to which any changes are significant for the future of your organisation.

This simple model provides a summary of some of the questions to ask about key factors in the external environment.  It prompts you to ask:

  • What environmental factors are affecting the organisation?
  • Which of these are most important?
  • Which are likely to be most important to the organisation in the next few years?

Some of the influences you may want to consider are outlined below:

 PEST area  External influence Information sources 

Political (inc. legal)

  • Equality, diversity and human rights legislation
  • Improving Working Lives Standard
  • Standards for Better Health 
  • CQC reports

 Economic

  • Alternative employment opportunities
  • Cost of living  

 Social

  • Employment/unemployment levels
  • Population size and structure
  • Balancing work and social time
  • Attitudes towards harassment and bullying
  • Community involvement in clinical quality issues

Technological

  • Improving access to health related information
  • The IT capabilities of your organisation
  • The extent to which the organisation uses e-learning and e-technology

 See also NHS Employers Navigating Equality and Diversity Guidance for details on the broad guidance for the NHS.

Example of a PEST analysis

Political (incl. legal)

  • Employment legislation
  • Government directives
  • Financial policy

Economic

  • Interest rates / Inflation
  • Disposable income
  • Unemployment

Social

  • Population
  • demographics
  • Employment opportunities
  • Attitudes to work and leisure

Technological

  • Information technology
  • developments
  • New discoveries / developments
 

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