Effective Human Resource Planning Process
Human Resource planning is the process by which companies determine the personal support they need to meet the needs of companies and customers. Various factors influence this planning, including retirements and future transitions, the availability of employees with specific skills and changes in the environment that may require the training of current employees.
Personnel planning consists of four main phases. First, the collection and analysis of expected demand information based on the company’s future plans and the provision and availability of personnel, internal and external, to meet these requirements. Second, companies need to define their specific workforce objectives, which may include decisions on whether candidates are promoted internally or hired externally, whether the work of employees who are part of the workforce is outsourced or performed, and whether the company prefers to hire overcapacity or adopt a streamlined workforce approach. The third phase of planning is the design and implementation of programmes that are aligned with the company’s objectives. These programs include performance programs to meet employees’ needs and influence their ability to retain employees, and training programs to ensure that employees are prepared for current and future needs. Finally, the fourth phase of planning will include monitoring and evaluating the effectiveness of the HR plan and implementing changes as appropriate.
Human resources planning is important and is ongoing due to internal and external environmental changes; internally, companies are affected by fluctuation and retirements; externally, companies are affected by technological changes, changes in the economy, and changes in the industry and consumer demand that may require skills not currently available in the company. All of these impacts affect the type and number of employees the company needs to remain successful.
An important but challenging element of personnel planning is forecasting the demand for certain types of skills and positions. For example, at the beginning of the 21st century, the Internet and social media skills were in increasing demand. Nursing has long been in demand in the health sector. Each industry is different and is influenced by different factors. Mastering changes in industry, regulation, government, and business can help companies improve their ability to forecast labor demand and create a labor force plan.
Succession planning is the process by which company managers and HR managers identify key positions within the company and develop plans to fill these positions with internal or external employees. Succession planning is closely linked to executive development, that is, the training process and on-the-job experience to prepare internal employees for entry into vacant positions. Succession planning is an essential element of human resource planning.
The late 20th and early 21st centuries were marked by a series of changes that indicate changes in the nature of work in the future. These include the increasing use of external workers (people who may be hired for certain tasks but are not employed in the enterprise), virtual workers (those who work for the enterprise or not, but are not physically located on the premises of the enterprise) and the increasing influence of technology on the demand for certain types of personnel, leading to increased demand in some areas and a decrease in demand in others.