Human resource planning is the process of directing a company’s human capital towards organizational goals. A human capital plan may be developed at a corporate level to assist in attracting talent, retaining employees, and managing the recruitment process. The steps discussed here are intended to help guide you through this process.
- Analyze Objectives
The first step of HR planning is to analyze the company’s current human resources, including job titles and responsibilities, skills, knowledge, and demographics. This information can help you determine where you are currently and where you need to go in order to meet your business objectives. Identify the critical success factors for your organization and determine what level of performance is needed to meet those objectives. When you have a clear picture of where you want to go, you can make more informed decisions about the steps needed to get there.
- Inventory current human resources
Once you have analyzed your current human resources requirements, it’s time to identify who makes up those assets. This step will help you determine what type of people are currently working at your company and how they perform their jobs on a day-to-day basis. It also allows you to identify any gaps in knowledge or experience that may be holding back your organization from achieving its goals and objectives. By understanding who your workforce is composed of and how they function within the organization, you can take steps toward improving performance while also reducing costs associated with hiring new employees or replacing ineffective ones — which could ultimately lead to increased profitability for your company.
- Forecast the demand and the supply of employees
One of the most important hrm functions is to forecast the demand and supply of employees. You need to predict what your company will be like in three years, five years, and ten years from now, and determine how many employees it needs at each level.
- Estimate Gaps
The next step is to estimate gaps between the number of people needed now and those needed in the future. If you plan for a 10% growth rate over the next three years, you’ll need more than twice as many people as you do today. This gap could be filled by either increasing the number of existing employees or hiring new ones.
- Formulate and implement a plan
The HR plan is a set of actions, goals and objectives that outline how you will achieve your organization’s HR goals. An extremely important step to create a solid HR plan is to identify the organizational needs. The second step is to develop a strategic approach to those needs by identifying opportunities and threats in the environment that can affect your organization’s ability to meet its strategic goals. The third step is to develop an action plan that outlines specific activities that will address those threats or opportunities.
- Monitor, Control and Feedback
The final step of human resources planning is monitoring performance and assessing results against expected results. This includes evaluating processes as they occur so that you can improve them if needed or adjust plans as necessary if there are changes in business conditions or other factors that have an impact on performance (e.g., new regulations or technology).