Human Resource Planning – Definition and Main Stages

Approximate reading time: 1m 26s

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

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

Human resource planning may seem like an easy process, but in reality it involves many obstacles, such as the attitudes of current employees, pressure to meet business goals, and overcoming the state of the labor market.

Human resource planning can provide the organization with the necessary human resources in the most cost-effective and timely way.

Stages of the Human Resource Planning Process

Human resource planning includes 4 main stages:

• Assessment of current human resources. This process includes studying the strengths of human resources in terms of skills, talent, competencies, qualifications, experience, age, compensation, bonuses, etc.. At this stage, human resources specialists should conduct interviews with managers in the company to understand the main HR issues and the capabilities of the current workforce.

• Analysis of future workforce requirements. Here all variables must be taken into account, such as retirement, layoffs, pre-arranged staff transfers, etc.. Unknown variables such as competition, resignations, dismissals, and the like should also be included.

• Demand forecasting. The next step is to connect the current workforce with the future human resource needs. The long-term business strategy and the set goals must be taken into account.

• Developing a plan. In the final 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 managers so that its implementation can proceed smoothly and efficiently.

As you can see, proper human resource planning helps organizations achieve 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.

If you want to ease the recruitment process – from receiving resumes to hiring/rejecting job candidates, you can rely on our distance learning systems. You can read more about their use in human resources departments HERE.