HR planning defines the process that involves forecasting and determining strategies to fulfill the demand and supply of manpower for current and future purposes. According to Charles Spinelli, it’s an essential course of action that ensures an employer has the appropriate workforce with the matching skillsets in the team for its optimal business growth. Human resource planning also helps in implementing and managing the challenges that the organization faces in this process to alleviate business risks. To know more about HR planning keep on reading.
Noteworthy, when it comes to HR planning, it has no one-size-fits-all strategy. The HR manager needs to customize and devise their business-specific strategic procedures to reach their goal efficiently and cost-consciously. Typically it involves five stages as stated below
Defining Its Goal
The HR practices should align with its business goals at all stages. The goal must be well-defined, objective-based, properly planned, and reliable. Put simply, when it comes to a recruitment plan, it may involve strategies including
Formulating an attention-grabbing employee benefit plan
Fostering a positive work culture
Promoting and encouraging employee relation
According to Charles Spinelli developing a SWOT analysis to determine the employee capability can be beneficial to map HR Planning and management of a business.
Analysis of HR Supply
The first step of effective HR Planning involves analyzing and assessing the prevailing availability of manpower and its potentiality. It should undergo a comprehensive study of the business’s human resources in terms of their qualifications, skills, experience, tenure, age, performance, positions, compensation, benefits, etc.
Projection of HR Demand
Analyzing the manpower requirement for the future business is a vital step in the course of HR planning. Accordingly, it can develop a projection of HR demand based on factors like future development, lay-offs, promotions, retirement, etc. However, factors like resignations, sudden transfers, and other issues may impact the employee retention rate. So, it is a major subject of concern, which needs to be examined backed by the scope of analysis.
HR Planning Strategy and Its Implementation
On assessment of the gaps amid the demand and supply, the HR manager needs to develop a constructive plan of action to ensure meeting its forecasts. They need to determine whether to hire, outsource, train, or manage surplus according to the objective. For example, to deal with surplus manpower, the HR cell can consider internal transfer, redeployment, voluntary retirement, etc.
In reality, the implementation of any strategy from planning to practicality is not only a monumental task but equally challenging as well. Failure in the execution is quite common in the corporate world. In this regard, Charles Spinelli suggests breaking up every phase of the plan and following them step by step to handle possible challenges or resistance that a company may experience from staff. Consider slow and ongoing conditioning during the execution phase so that employees can get accustomed to such changes.
Evaluation, Reaction, and Control
HR planning is an ongoing process. This is why, it is the key to review the success rate against the plan and change the strategy as required to meet the objective successfully. Therefore the HR team should monitor the progress of their plan routinely to lessen the risks of failure.
HR needs to avoid talent shortages proactively and handle surpluses to grow a highly productive talent pool in a systematic process. Any major alteration in the functionality of the business to explore new project require re-aligning the planning of HR.