Human Resource Management plays a vital role in an organization. Its major responsibility is to deliver commitment towards the organization, such as motivating employees, deriving higher performance, maintaining a healthy atmosphere, and so on.
The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset is its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply. The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term.
For most businesses, HR concerns can be challenging. As a business owner, you may be confused by a variety of factors. This can result in poor decisions and a slowdown in operations. Your organization must have current and effective human resource planning systems in place to avoid these problems. Here are the steps needed for the HR planning process in your company:
1: Assess your current human resource capacity
Start by looking at your current human resources state of play. This will involve analyzing the HR strength of your organization across factors including employee numbers, skills, qualifications, experience, age, contracts, performance ratings, titles, and compensations. During this phase, it’s a good idea to gather insight from your managers who can provide real-world feedback on the human resource issues they face, as well as areas in which they think changes are necessary.
2: Forecast future HR requirements
You will then need to look at the future HR needs of your organization and how human resources will be applied to meet these organizational goals. HR managers will typically look at the market or sectoral trends, new technologies that could automate certain processes, as well as industry analysis in order to gauge future requirements. Of course, there are a number of factors affecting human resource planning such as natural employee attrition, layoffs, likely vacancies, retirements, promotions, and end of contract terms. Above all of this, you will need to understand the goals of the organization: are you entering a new market, launching new products or services, expanding into new areas. Forecasting HR demand is a complex task based on several dynamics. Being informed and having a seat, or at least an ear, at the boardroom level is essential if you are to make accurate HR projections.
3: Identify HR gaps
An effective human resource plan walks the fine line between supply and demand. By assessing the current HR capacity and projecting future requirements you should have a clear picture of any gaps that exist. Using your HR forecast you can better judge if there will be a skills gap, for example. Should you up-skill existing employees or recruit employees who are already qualified in specific areas? Are all current employees being utilized in the right areas or would their skills be better suited to different roles?
4: Integrate the plan with your organization’s overall strategy
After you’ve assessed your current human resources capacity projected future HR demands and identified the gaps, the final step is to integrate your human resources plan with your organizational strategy. On a practical level, you will need a dedicated budget for human resources recruiting, training or redundancies, and you will also need management buy-in across the business. You will need cooperation and the necessary finances in order to implement the plan and a collaborative approach from all departments to put it into practice.
Human resource planning encompasses a wide range of corporate functions. Without these procedures in place, the HR department may get overburdened, resulting in confusion and inconsistency. HR planning strategies assist businesses to improve business activities, make work easier, and reduce disputes.
Nepal Realistic Solution (NRS) is a Management consultancy firm that specializes in Human Resource Services, including influential research, analytic, and industry insights to assist in the design and implementation of critical programs ranging from business-driven HR to innovative talent, leadership, and change programs.
If you want our assistance you can call us at 01-4106579, 9801175050, or simply reach us at info@nrsnepal.com.