HR Planning: a key part in the company’s growth plan
- Outline the company mission statement.
- Identify the purpose of business.
- Establish clear goals and objectives.
- Plans for the long-term period / targets to achieve.
- Assess the current human resources.
- Profile of current employees including existing skills and ones that can be developed.
- Estimate the labor supply and demand.
- Assess and analyze the HR needs of the organization.
- Match labor demand with supply.
- Satisfy current HR needs or recruit and attract potential candidates.
The planning process starts with the mission statement of the organization.
Organizations need to know what the purpose of the business is before taking any further steps in planning all the other strategic parts of the long-term plan.
Once a mission statement is outlined and developed the company determines the business they want to be leader in and what are the action that will help reach this aimed goal. The importance of a mission statement is paramount, because is the pillar of every decision being made.
The next step is to establish the goals and objectives of the company, because it usually outlines the plans over the long period.
This step also establishes goals the company wishes to achieve with assigned timelines to achieve them.
From an HR planning perspective this is important because the planning process becomes more detailed when the goals and objectives are defined and the tools, investment and resources needed can be identified with more accuracy.
HR will then analyze the human resource part of the company structure to move on to the next step in the planning process.
Assessing the current HR situation, means profiling the current employees of the company, the HR management team will then have an idea of the skills the company has at their disposal, and which talents can be developed to match the needs of the company’s growth plan.
This step will give HR an idea of the skills available compared to what is needed to achieve the organizational goals.
HR will at this stage, continue the planning process to align with the strategic plans of the organization.
Estimating the supply and demand of labor is the next step in the planning process for the HR department, after assessing the current human capital, the future needs of HR will be estimated.
Employees may not have the mandatory skills and competencies to fulfill the company’s strategic plan, therefore this step is crucial to know what skills are needed, and need either to be developed within current employees with tailored development plans or recruited externally in respect of the strategic plans.
HR must know trough an accurate forecast the specific skills and the number of employees needed to keep the company’s plans and objectives on track.
Matching labor demand and supply is also important because the company needs to know the timeframe, the specific targets, and the measurable metrics that is needed to achieve organizational goals as they are highlighted in the growth plan for the company.
The Company may have too many or too little of the needed skills, in this case assessing the current situation and forecasting is necessary because if specific skill sets are needed in the future, HR must estimate the company’s human resources to match the demand and supply for labor in respect to the organization’s goals or implement changes that may need to take place to keep the company’s goals on track.