A business has a plethora of different, organizational objectives to meet. These goals are so vast in nature that they often necessitate a good amount of strategic planning to be conducted beforehand. This is extremely important when it comes to the HR planning process of the company.
As it pertains to the overall economic success of a company, a CEO will look to their employees to expedite that success. As such, a business needs to not only determine how to properly staff the company, but discover how their employees can meet their needs and match customer demands.
This is the human resource planning process, which has these six following steps:
1. Analyzing HR Goals
For any preparatory work in a business, an appropriate amount of HR planning needs to be done first. The first phase of the HR planning process involves analyzing which specific goals need to be achieved. For example, objectives in various fields such as production will be drawn up before any further action is taken.
Other important fields include marketing and sales, as each business has to financially succeed as it relates to their goals. All of these fields present a general idea about how to proceed in the company. Strategic planning usually proves to be effective in long-term forecasting.
2. Reviewing Inventory
As is the case with analyzing new organizational objectives, a holistic review of the current human resource system needs to be done. This involves making meticulous insights into just how the existing inventory system works. Areas such as the current number of employees, their performance, and their potential, is part of this process.
Reviewing the current human resource inventory also involves taking a look at future job requirements. In order to have these parts filled, internal and external organizational sources can be used to gauge how exactly they can be fulfilled. Gathering insight from every possible area allows for a more accurate assessment for human resource planning.
3. HR Forecasting
Once the initial preparation has been completed, the next step of the HR planning process is to predict the future. Using all available information gathered from HR software and resources, this part involves taking a look at how organizational goals will specifically be met. Human resource managers will look to a number of factors that will usually provide great insight.
For example, there may be specific market trends that can be capitalized on. However, it all comes down to being informed before attempting to meet organizational goals. Forecasting is a delicate procedure in the human resource planning process, and requires expert analysis first and foremost.
4. Estimating HR Gaps
All companies will eventually have to take a look at their manpower, for better or for worse. In regards to the human resource planning process, a business will have to compare and contrast the supply to the demand. When this is done, a company can analyze gaps through the determined human resource surplus or deficit.
The former describes a situation where employees need to be terminated, whereas the latter illustrates the number of people to be employed. Each business will have to estimate accordingly, as the manpower at each company varies. Some HR managers will keep their existing employees and invest in upgrading their skills. It all depends on the company’s goals!
5. HR Integration
Once all of the initial, strategic planning and forecasting has been completed, the HR planning process will need to be taken into action. As is the case with most of the human resource planning process, this action plan largely depends on the specific business goals. Some companies may have a deficit in manpower, for example, while others will have a surplus.
As such, these organizations will need to proceed accordingly. The action plan will also require a budget for the appropriate training to be implemented, if there are prospective employees. HR managers will usually communicate with other departments, in order to best actualize the new plan going forward.
6. Monitoring Progress & Feedback
After the integration of the action plan has been made, continual monitoring of the progress made will have to be reviewed. Since inventories can be updated as time goes by, identifying areas that can improve the plan’s integration will also need to be enacted.
Some HR managers will monitor the action plan in order to determine which action or path to take. Although the initial, preparatory steps are vital, constant reviewing of the new action plan’s integration into the company is just as critical.
Human resource planning is significant in more than just one way. Organizations opt to anticipate future needs, in order to better stabilize or improve their current organization structure. Above all else, it allows the employees, the most crucial part of the company, to receive the support they need in contributing to the company’s overall success.