More than 70% of CEOs firmly believe that employees are critical to an organisation’s economic success. Hence, one can simply understand the importance of strategic human resource planning process. Before delving into the steps, one should be clear about what human resource planning is.
What is human resource planning?
It refers to a process which identifies human resources’ current as well as future requirement which would help an organisation to accomplish its objectives. This strategic planning serves as a connection between a company’s complete strategic plan and human resource management.
Now let’s take a look at the steps involved human resource planning process.
- Assessing HR capacity
Evaluating current staff in HR team is the primary step in planning procedure. Before hiring new talent, it is essential to understand the employees at one’s disposal. First, create each current worker’s skills inventory by self-evaluation individuals with a form or questionnaire, going through performance reviews of past and present or using an approach which combines both these. Also, one can utilise a template chart for visualising skill-set.
- Forecasting different HR requirements
After having the resources’ full inventory at an individual’s disposal, comes the forecasting process. Here one needs to answer whether a firm needs to increase their human resource or should it stick to the number of current stuff? Or just merely improving productivity by implementing training would be enough?
Measuring an organisation’s qualified employees’ demand and supplying people within or outside the company is vital. Carefully managing this demand and supply is crucial. Three factors to check here are:
- Company demand forecasting
It refers to a detailed procedure which determines future requirement regarding quality and quantity which would fulfil organisations demand.
- Supply prediction
Prediction of supply shows whether it will accomplish current demand.
- Matching demand with supply
This is the tricky part of hiring resources, and it is where human resources planning process comes together. Here one requires developing a strategy for linking company’s demand for quality recruits. An individual can hire recruits or train existing employees or simply combine both steps.
- Improving Talent Strategies
After determining staffing requirement of a firm through assessment of current capacity and anticipating demand and supply, comes the time to start procedure for adding and developing talents. Hence, improving new talent is a critical part of strategic human resource planning and management. The steps include:
- Search of potential talents
- Adequate training and progress of an employee
- Performance review
- Employee health and safety
- Evaluation of the plan
After the process plan is in motion for some time, one can easily check whether it aided in the company’s growth by achieving the goals regarding certain aspects such as profit, production, employee satisfaction and retention. If this implemented procedure runs smoothly then a business can carry on using this plan. However, if obstacles arrive then changing a few factors that suits the company ideally will help in gaining the desired outcome.
Hence, one should always be well aware of these strategic human resource planning steps. It will help a firm to prosper in the long run.