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Human resource planning - definition and milestones

An important part of your development strategy

What is the HR planning process? Human resource planning is the process of forecasting the future human resource requirements of an organization.

Approximate reading time: 1m 21s

It also includes determining how current human resources can be used in the context of these requirements. Focuses on the basic economic concept of supply and demand in the context of an organization's human resource capacity. 

Human resource planning helps an organization's management meet the organization's future demand for human resources by finding the right people in the right numbers at the right time and place. Finding and selecting HR can be done only after proper analysis of HR requirements.

Human resource planning may seem to be an easy process, but in reality many hurdles are involved such as the attitude of the current employees, pressure to meet business goals and beating the labor market condition.

Human resource planning can provide the organization with the required human resources in the cheapest and timely manner.

Stages of the human resource planning process

Human resource planning involves 4 main stages:

  • Assessment of current human resources. This process involves studying the strengths of human resources in terms of skills, talent, competencies, qualifications, experience, years, compensation, bonuses, etc. At this stage, human resource professionals should conduct interviews with managers in the company to understand the major HR issues and capabilities of the current workforce.
  • Analyze future workforce requirements. This should take into account all variables such as retirements, layoffs, pre-set staff transfers, etc. Unknown variables such as competition, resignations, layoffs, etc. should also be included.
  • Demand forecasting. The next step is to relate the current workforce to future human resource needs. The long-term business strategy and set goals should be taken into account.
  • Develop a plan. In the last stage, the human resource development plan is created. It may include employee transfers, finding new talent, outsourcing, talent management, training, coaching, revision of current policies, etc. The plan should be discussed with the managers so that its implementation goes smoothly and efficiently.

As you can see, proper HR planning helps organizations meet their goals on time and with the right HR force in action.

Source: http://smallbusiness.chron.com/internal-factors-consider-human-resource-planning-60960.html.

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