Human resource planning is the process of systematically forecasting the future demands and supplies for employees as well as the deployment of their skills within the organization’s strategic objectives. Such high-level planning involves obtaining information from various departments and unit heads regarding their staff requirements, then incorporating that data into HR projections for ongoing submission to executive management for their use in strategic planning and setting organizational goals.
THE PURPOSE OF HR PLANNING
To Hire the Right People: Through proper planning, we are able to know the caliber of staff needed to fill a particular slot, thereby eliminating the incidence of having to act under pressure as a result of unplanned recruitment. In essence, this process avoids fitting square pegs into round holes.
To Hire at the Right Time: Human resource planning that is strategically planned will always align with the strategic vision of the overall organization. By so doing, firms are able to plan a more favorable time for recruiting and when there is no need to recruit at all.
Efficiency in Recruitment: Because people continuously exit organizations while others are promoted, the need to replace them, therefore, becomes inevitable. However, it must be done efficiently to conform to the strategic vision of the organization. HR planning makes it easy for adequate financial clearance and other logistical arrangements to be sought for these new employees even before they are recruited.
THE RELATIONSHIP BETWEEN ORGANIZATIONAL PLANNING AND HR PLANNING
The symbiotic relationship that exists between these two functions cannot be overemphasized; indeed, it is necessary to ensure the peaceful coexistence of all departments within an organization. To achieve well-laid-out and effective human resource planning, it’s important we begin with the organization planning that should act as the anchor for HR planning. In drafting the organizational planning, it should include the following ingredients:
- A clear statement of the company’s vision.
- A clear statement of the company’s purpose and plan.
- An action plan based on available resources.
As discussed in earlier paragraphs, human resource planning invariably depends on organizational planning. Therefore, in drafting HR planning as well, the following points should be taken into consideration:
- Ensure that the plan contributes something of significance to the overall strategic organizational plan.
- Ensure that human resource programs satisfy the top management.
- Convert business objectives into strategic HR objectives.
STRATEGICALLY LINKED HUMAN RESOURCE PLANNING
Because of the interdependent nature of HR planning, HR managers should know that it is an activity that cannot be executed solely by the HR outfit; it requires close collaboration between other unit heads as well such as the operations manager, finance manager, technical departments, and all other sectors of the organization that naturally interface with HR. It is also important that other department heads are open to delivering the necessary structures and support to the HR unit to enable them to carry out a successful planning exercise.
TIME FRAME FOR HUMAN RESOURCE PLANNING
The time frame for strategic human resource planning can be categorized into three categories:
Short Term:
These plans span a period from zero to two years. When projecting within this time frame, we look at the individual leave roaster, as this also gives us a sense of the number of staff who would be available to work and those who would be off during the period under review. The volume of work available and the business continuity plan for the next two years also serves as a guideline for determining the staff strength that would be needed and identifies the employees that deserve to be laid off. This practice is very common in the extractive sector where industry players are able to project the future prices of their traded commodities, which then guides them in staff rationalization.
Organizational planning that projects into the technological expansion of the company also helps human resource planners to strategically forecast the number of staff members that would be needed to affect it and the training needs present to execute it. Expected promotions are also factored into short-term HR planning; promotions typically come with financial implications, hence the need to collaborate with finance in making such a projection.
Intermediate:
Planning for intermediate periods takes between two to five years. During this period under review, major items captured in the planning include the expansion or review of budget plans for HR based on the overall strategic objective of the organization. Overall HR vacancies expected for the period are also taken into consideration. Within this time frame, employees can be strategically grouped into managers and supervisors to help with the development plan for the period, and this then tactically cascades into the number of workers, types of workers, dates when workers are needed, and then the level of these needs.
Long Range:
Obviously, any long-range plan that considers periods beyond five years automatically falls into the company’s long-term strategic objectives. Many companies tend to shy away from this approach due to its remote and capital-intensive nature. Under the long range of time, the focus is more on relying on research studies that forecast global shifts in certain industries and their likely impact on human capital. For instance, research by energy experts has projected a gradual shift away from the consumption of fossil fuels to renewable energy within the next fifty years; this clearly calls for a paradigm shift in planning long-term staff rationalization in such industries. It is also a well-known notion that artificial intelligence and robotics are poised to take over the world sooner than expected. To this end, countries like China are sponsoring many of their citizens to study this new technological phenomenon in the United States in order to boost their human capital requirement for such professionals. Long-range HR planning requires a lot of investment that might not yield immediate returns, but it is nevertheless important in the long run for the sustainability and ongoing concerns of the company.
Author:
Phidelia Johnson is a global Human Resources Practitioner with eighteen years of leadership success. With a focus on streamlining Human Resources administration, she’s well-equipped to find the right solution to a myriad of concerns. Her experience as a commercial business leader gives her a unique ability to advocate for both the employer and the employee.
In her down time, Phidelia is a master of her kitchen, creating wonderful dishes filled with passion and flavor. If she’s not cooking delicious food, she’s stretched out with a good book. She hopes to use her experience to help others, guide company leaders to best practices, and help build better professionals and stronger organizations.