Human Resource Planning

 Human Resource Planning

Figure 01: Human Resource Planning (https://content.wisestep.com/benefits-human-resource-planning/) 

What is Human Resource Planning?

Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining how to properly staff to meet business needs and customer demands. The Main purpose of HRP is to identify and ensure that the company has the right set of people within the organization. It further helps to identify the areas which lack in terms of employment and strategic steps required in order to achieve talented employees in the organization. AS per Reilly (1996) HRP is a process where an organization tries to forecast the demand for the worker and evaluate the size, nature, and sources of supply that will be required to fulfill the demand

What are the steps of Human Resource Planning (HRP)?

There are 4 main stages in HRM. Each step needs to be followed in order to get the expected outcome of the organization. This will also help to identify and retain talented employees in the organization.

1. Analyzing human resource capacity

2. Forecast HR Requirements 

3. Develop talent strategies

4. Review and evaluate the HR plan

1. Analyzing human resource capacity

The first step in Human resource planning is to analyze your current labor force. Before going for new recruitments, it is necessary to study the current employees.

It includes a comprehensive study of the human resource strength of the organization in terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures, performance ratings, designations, grades, compensations, benefits, etc. 

2. Forecast HR Requirements 

Once analyzing your staff next step is to plan the future needs. Whether the company needs to increase its workforce or maintain and enhance the productivity of the current staff. The HR department can consider certain issues like promotions, retirements, layoffs, and transfers—anything that factors into the future needs of a company.

1. Demand Forecasting

Check the current supply with the future demand for Human resources and create a demand forecast. It is very important to understand the objectives and the business strategy in the long run hence the workforce demand forecast will be aligned with the organization's goals.

2. Supply Forecasting

Supply forecast reflects the current workforce available in order to meet the demand. By analyzing the previous inventory and the current workforce available to meet the demand. Organizations will look into outside options for bringing in new people to fulfill the demand.

3. Matching demand and supply

Once you identify the organization's demand and the required workforce to accomplish the task. Next organization works on hiring new employees, training the existing employees, or combining the two approaches. 

3. Develop talent strategies

Talent development is a crucial part of the strategic human resources management process. This stage covers the below areas. 

1. Recruitment 

2. Selection

3. Hiring

4. Training and Development

5. Remuneration and benefits

6. Performance management

7. Employee relations

Figure 02: Talent Development Process (https://www.lucidchart.com/blog/what-is-the-human-resources-planning-process) 

4. Review and evaluate

Once the HRP process is implemented and after a considerable period, an organization can evaluate whether the process is a success in terms of production, profit, employee retention, and employee satisfaction. Depending on the evaluation the organization can continue the process or change according to the situation. 

References

Figure one - https://content.wisestep.com/benefits-human-resource-planning/ 

Figure two - https://www.lucidchart.com/blog/what-is-the-human-resources-planning-process

Peter Reilly (1996), Human Resource Planning: An introduction. Great Britain: Microgen