Human resource planning is the process of identifying the number of employees a company will need to achieve its business goals. It includes forecasting future demand for labor and determining the skills and experience required to fill those positions. The goal of human resource planning is to ensure that an organization has the right number and types of employees to meet its business needs.
The process of human resource planning begins with an analysis of the company’s business goals. This information is used to develop a forecast of future labor demand. This forecast is then used to identify the skills and experience required to fill those positions. The goal of human resource planning is to ensure that an organization has the right number and types of employees to meet its business needs.
Human resource planning is a critical component of any business. It ensures that companies have the necessary workforce to meet their future business goals. By identifying the skills and experience required to fill those positions, human resource planning helps companies to attract and retain the best employees.
- Analyzing Business Objectives and Policies.
- Study Existing Manpower Inventory.
- Forecasting Demand and Supply.
- Performing Gap Analysis.
- Formulating and Implementing HRP.
- Training and Development.
- Evaluation and Control.
Benefits of an HR planning process
Companies may gain the following advantages from implementing an HR planning process:
What is an HR planning process?
An HR planning process, also referred to as “workforce planning,” is the ongoing process of finding qualified workers who can improve business efficiency, produce high-quality work, and assist in achieving company goals. Businesses can implement a sound HR plan process to make sure that each department has the right number of employees with the right expertise by setting strong objectives and evaluating particular areas of the business. The business can then evaluate the strategy to determine whether there is still room for improvement or change.
How to develop an HR planning process
You can use the following six steps in your HR planning process:
1. Create HR objectives
Setting both company-wide and department-specific goals is crucial when developing HR objectives. The larger business objectives should be reflected in department goals, which should also reflect the duties and requirements of each department. You might be aware, for instance, that the marketing department needs at least three to four people for each project. Your company will require at least nine skilled workers for the business’ marketing department if it intends to work on three projects concurrently each year.
2. Analyze current workforce
Examining the abilities, backgrounds, and performance ratings of the current workforce allows you to assess the strength of your company. It can be helpful to consult department heads and managers at this stage to find out how they rate the performance of their staff and whether they require additional resources to carry out their duties. Giving employees self-assessments and questionnaires to gauge how they feel about their work performance and what they want from the new HR plan is also beneficial.
Consider making a spreadsheet or document that highlights each department’s skill set based on its employees once you have the data. This can assist you in identifying the key strengths of each department and any areas that could use improvement.
3. Determine HR supply and demand
Analyzing your data and information on current employees, evaluating the business’s current needs, and projecting future needs are all necessary steps in determining your company’s HR supply and demand. When reviewing data, determine whether your business has a surplus or shortage of employees by looking at salary costs as well as the quantity and quality of work performed by employees.
Your business might have a labor surplus, for instance, if salary costs are too high and workers are producing more than enough goods or services. Examine market trends and prospective technological developments when predicting future requirements to determine whether there are any areas that your business might automate in the next few years. This can help you decide whether you should invest resources in training now or wait for the new technology.
4. Create an action plan
Determine whether your business needs to transfer or renegotiate contracts, hire more employees, or put more emphasis on the skill-building of current employees before drafting an action plan. It’s crucial to identify the skills your company needs and the departments that most urgently require them if your company needs more employees. Instead, think about which employees might be close to retiring or whether other company facilities could benefit from their skills.
It can be useful to clarify which abilities or knowledge may need development and how to do so if some employees require additional training. For instance, if your business wants to increase sales but lacks the resources to do so, you might develop a training program to help your employees improve their sales skills.
5. Continue to train and develop
An organization should continue to train and develop its staff even after implementing its HR plan. Training programs can increase employees’ job-related skills and position them better for future advancement. Promoting workers who are already familiar with the company’s operations and IT infrastructure can help the business save time, money, and other crucial resources.
6. Evaluate the plan
Assess the HR strategy’s effectiveness following a period of testing with input from staff members and managers. Your business can determine if the plan has assisted in boosting productivity, increasing profits, and filling workforce gaps by looking at the plan’s goals and objectives. If your business didn’t meet all of its objectives, it can modify its HR strategy and identify areas for development.
For instance, your company’s marketing department may need to reassess its departmental skills and determine whether any employees still need to advance in certain areas if the amount of work hasn’t increased despite the hiring of more staff. Otherwise, there might be additional causes for the labor shortage, such as poor management or unclear individual responsibilities.
HR Basics: Human Resource Planning
FAQ
What are the five steps in human resource planning process?
- Analysis of Organizational Plans and Objectives. …
- Preparing a Human Resources Inventory. …
- Assessing Future Supply and Demand. …
- Matching Supply and Demand. …
- Establishing an Action Plan.
What is human resource planning HRP process?
The process of forecasting an organization’s future human resource needs and determining how to best use its current human resource capacity to meet those needs is known as human resource planning (HRP).
