Human resource planning is defined as a managerial function that ensures the manpower requirements of an organization are met at the right time with the right people. It is a process to analyze human resources, forecast future needs, identify gaps, and implement a plan to fill the gaps.
Objectives of Human resource planning
The human resource planning objectives are as follows-
- Ensure the availability of lead time to train additional human resources
- Maintain the quality and quantity of human resources
- Foresee manpower requirements in the organization
- Meeting the needs of the organization in times of diversification and expansion
- Making predictions about employee turnover and trying to minimize its impact by filling the gap with the existing pool of resources
- Manage existing human resources in the organization
- Forecast any technological change on human resources
- Evaluate the surplus or shortage of human resources
- Ensure correct use of current human resource in the organization
- Ensure a regular supply of human resource in times of need
- Estimate the cost of human assets
What is the importance of human resource planning?
The human resource planning importance is as follows
- Makes sure that the company can handle any changes in the human resource market
- Achieve a competitive advantage with the help of new markets or new products
- Prepare the human resource department for changing needs and requirements of the organization
- Helps to adapt to the use of advanced technologies quickly
- Anticipate the demand for critical skills
- Boosting the skills and knowledge of current human assets and becoming proactive
- Strike a balance between demand and supply of human resources
- Developing an effective career and succession plan for all the employees
What are the Five Steps in the human resource planning process?
The steps in strategic human resource planning are as follows
1. Assess the current capacity of human assets
If you are looking for steps in the human resource planning model, then assess the current capacity of human assets. Identify and analyze the strength of human capital in your company based on factors like the number, age, qualifications, skills, and experience, etc.
Look at their performance ratings and compensations to know their worth in your organization. This is the time to talk to the superior level authorities like managers to get real feedback about the employees working under them.
This valuable insight will prove a blessing in making proper assessments, understanding the issues they are facing, and the specific areas where change is imminent for the growth of the company.
2. Forecast future needs of human assets
You now have a good idea about the current human resource capacity in your organization. This is the time to look at the future. If you are looking for steps in human resource planning, then forecast the future needs of human assets.
The HR manager is in a perfect position to understand how human resources will have to be used to meet future organizational goals. Look at new technologies that can automate specific processes. Sectoral trends and industry analysis can help to gauge future requirements quite effectively.
Factors that can have an important impact on HRP are layoffs, attrition, promotions, retirements, and vacancies, etc. Go through the goals of your organization and then answer questions like are you going to launch a product or service, are you thinking of entering a new market or thinking about expansion plans.
This will give you the necessary clarity to take the next steps. Remember forecasting HR demands is not an easy task but being informed helps in making viable projections
3. Identify the human resource gaps
This is the stage where you have information about current estimations and future HR needs. Now is the time to consider everything and get a clear picture of any discrepancies.
If you are looking for steps in human resource planning, then identify the human resource gaps that exist. Is there a skills gap, knowledge gap, or any other specific area that has to be filled by a qualified employee? Answering these questions will help to identify the gap so that you can fill it later on.
4. Human resource sourcing strategy
This is the stage where the human resource plan is developed so that it can fill the existing gaps. If you are looking for steps in human resource planning, then pay attention to the human resource sourcing strategy.
It includes proper communication with existing employees, talent acquisition, relocation, outsourcing, recruitment, revision of existing policies, coaching, training, and talent management. Make sure that all legal and regulatory compliances are followed to save yourself from any problems later on.
5. Integrate the plan with the overall plan of the company
You have all the cards in your hand and now is the time to integrate the plan with your existing organizational strategy for effective implementation if you are looking for steps in human resource planning. There should be a proper budget to fill the gaps.
Benefits of human resource planning
The benefits of HRP are as follows
- HRP is considered beneficial as it helps to know about surplus or shortage of manpower and rectify the gap. This proves cost-effective for the organization.
- The benefits of HRP is that it helps an organization in forecasting future human resources needs and anticipating the need for vacancies in the future
- HRP assist in better planning and boosting the growth and development of the employees.
- HRP helps to make the training programs more effective, and this is why it is considered beneficial for a company
- HRP is considered beneficial as it helps to make critical strategic decisions regarding layoff, termination, hiring and training in an adequate manner
- HRP is considered beneficial as it helps to evaluate the strengths and weakness of employees and take remedial measures to rectify it
- The benefits of HRP is that it helps in anticipating the cost of human assets and formulate HR budgets
- HRP is considered beneficial as it helps to meet the individual needs of the employees concerning benefits, promotions, and transfer
Limitations of human resource planning
The HRP limitations are as follows
- The HRP process is dependent on human resource forecasting, which not an exact process. The chances of going wrong are too much
- The employees believe that the planning process increases their workload and hence they are against its implementation in the organization
- There are numerous uncertainties in the process related to technological changes, seasonal employment, labor turnover, etc. and this limits its scope to a higher degree
- It is a time-consuming process, and many organizations are not in favor of wasting time, energy and effort on it
- A failure in HRP will lead to longer work hours, reduced job efficiency, stress and burnout
The workforce of a company is its most valuable resource that is, in most cases, irreplaceable even with so much advancement in science and technology. Human resource planning has become an integral part of every company so that it can manage to fit the best person for the job for better growth and development.