Human Resource

Planning
Bautista | Echano | Rosillon
 HR Planning Example:
Consider an organization that is planning a large expansion into a new geographic
region where it expects it will need to employ around 500 employees. The HR function
for this organization would have a lot of planning to do.

The HR team would need to:

Understand the employment laws and regulations of this new jurisdiction and work with
1 department heads to identify staffing needs for the new location.

Get to know the local labor market and determine the most effective means of attracting
2 talent.

3 Plan for large-scale onboarding of new hires.

https://www.aihr.com/blog/human-resource-planning-process/
HR Planning Example:
Suppose a pharmaceutical manufacturing company needs an effective HR planning
process to optimize its workforce management. It will do the following in steps.

As a first step, the company will identify its goals and objectives at the level of department,
1 team, etc.
The next step is to examine the strength and weaknesses of the current workforce. The
2 company should also examine the skills and capabilities of the existing workforce.

The business should forecast the demand considering the organizational goals from Step 1
3 and the strength of the existing workforce analyzed in Step 4.
As a next step, the organization must work out an action plan. It should work out a hiring
4 plan if it requires more employees and consider educating and training the existing
workforce depending on the skill requirements.
The organization should collect regular feedback to ensure the action plan is updated.
5
 What is Human
Resource Planning?
Human Resource Planning
Human resource planning
(HRP) is the continuous
process of systematic Employees
planning to achieve
optimum use of an
organization's most Jobs
valuable asset—quality
employees.
Importance of Human
Resource Planning?
 Importance of HR Planning:
Key reasons why HRP is important:
1 Anticipating and Adapting to Change

2 Strategic Workforce Alignment

3 Efficient Talent Acquisition

4 Optimal Resource Utilization

5 Succession Planning and Leadership Development

6 Employee Engagement and Retention

7 Costs Savings

https://www.hirequotient.com/blog/what-is-the-importance-of-human-resource-planning
Importance of HR Planning:

1
Anticipating
and Adapting
to Change
Importance of HR Planning:

2
Strategic
Workforce
Alignment
Importance of HR Planning:

3
Efficient
Talent
Acquisition
Importance of HR Planning:

4
Optimal
Resource
Utilization
Importance of HR Planning:

Succession

5
Planning and
Leadership
Development
Importance of HR Planning:

6
Employee
Engagement
and Retention
Importance of HR Planning:

7
Costs Savings
 Human Resource Planning:
Advantages Disadvantages

Building Skills Expense

Increasing Retention Unpredictability
Predictability Illusion of Certainty

https://bizfluent.com/facts-7501716-limitations-crm.html
 Human Resource Planning:
Disadvantages of Having a Poor HR Planning

• High Turnover Rates

• Employee Requirement
• Inefficient Hiring
Mismatch
Process
• Impact on Bottom Line
• Low Morale
• Decrease Productivity
• Lost Business
• Dissatisfied Customer
• Legal Issues
https://www.tcgco.com/consequences-of-poor-human-resource-management/#:~:text=Low%20morale&text=Such%20negative%20impacts%20may%20include,negative%20situations%20will
%20not%20improve.
Who performs to create
the Human Resource
Planning?
 Human Resource Department
Roles and Responsibilities of Human Resource Planners:
1 Developing recruitment and retention strategies to attract and retain the best talent
Creating and managing employee development programs to enhance employee skills and
2 knowledge

3 Developing and managing compensation and benefits programs

4 Initiating a concrete plan for workforce development

5 Taking care of all the relevant employment laws and regulations

Monitoring and analyzing HR metrics to track the effectiveness of HR strategies
6

https://callhippo.com/blog/general/human-resource-planning#:~:text=An%20organization's%20HR%20department%20is,with%20that%20of%20resource%20allocation.
To whom is Human
Resource Planning
Relevant?
 Company or Organizations
Key benefits of HR Planning:
1 Talent Management
2 Training and Development
3 Manage Human Resource Costs
4 Promotes Employee Retention
5 Mitigates the Risks and Uncertainties
6 Gain a Competitive Advantage
7 Coping with External Changes
8 Conformity to Regional Compliance
9 Strategic Workforce Planning
0 Align the Human Capital with Business Goals
https://callhippo.com/blog/general/human-resource-planning#:~:text=An%20organization's%20HR%20department%20is,with%20that%20of%20resource%20allocation.
 Target Users of Human
Resource Planning

Employees
https://slideplayer.com/slide/10413217/#google_vignette
 Human Resource Planning:
Considerations Range Capacity

Skill Shortages
Tasks and Duties Productivity Levels
Employee Turnover
Current Skill Training
Competition
Inventory Development
Changes

https://slideplayer.com/slide/10413217/#google_vignette
Process of creating
Human Resource
Planning
 HR Planning Process

Analyze organizational objectives

Steps in and plans
Evaluate the current state of your

creating HR workforce and uncover gaps

Forecast future HR requirements
Develop and implement plan
Planning Monitor, review and reassess
your plan

https://www.aihr.com/blog/human-resource-planning-process/
Steps in creating HR Planning

Analyze Increase Employee Engagement

Reduce Employee Turnover
organizational Increase Workforce Agility and
Flexibility
objectives and Enhance Performance
Management
plans
Steps in creating HR Planning

• What is your total number of employees?

Evaluate the • How many employees are in each

department?
• How many employees hold each position?
current state of • What are the education, skills,
competencies, and qualifications of your

your workforce employees?

• How do employees rank in the
performance evaluation data?
and uncover gaps • What are the ages of your employees?
(How many are approaching retirement?)
Steps in creating HR Planning
• Meet with managers and
department heads for their
Evaluate the judgment of their employees’
abilities and where there is room
current state of for improvement.
• Conduct employee self-
your workforce evaluations.
• Analyze HRIS data.
and uncover gaps • Look at past performance
reviews.
Steps in creating HR Planning

Evaluate the Road Map Tools

current state of Organization Chart in a Mid-Sized
Organization
your workforce Replacement Chart
Skills Inventory
and uncover gaps
Steps in creating HR Planning
Organization Chart in a
Mid-Sized Organization
Evaluate the
current state of
your workforce
and uncover gaps
Steps in creating HR Planning
Replacement Chart

Evaluate the
current state of
your workforce
and uncover gaps
Steps in creating HR Planning
Skills Inventory

Evaluate the
current state of
your workforce
and uncover gaps
Steps in creating HR Planning
• New products or services on
the horizon
• Prospective mergers or
acquisitions
Forecast future • Labor costs
• Projected employee
HR requirements retirements/vacancies and
turnover rates
• Technological advances and
automation
Steps in creating HR Planning
Scenario Planning

Forecast future
HR requirements
 Scenario Planning

https://hrforecast.com/a-guide-to-scenario-planning-examples-techniques-and-best-practices/
 Scenario Planning

• Quantitative
Types of scenario • Operational
planning • Normative
• Strategic
https://hrforecast.com/a-guide-to-scenario-planning-examples-techniques-and-best-practices/
 Scenario Planning

• Getting ready for quick decisions.

Shell used scenario planning in
response to the 1973 oil shock.
Scenario planning They had a plan in place that
they could execute if the scenario
examples came to pass. As a result, there
was a rapid growth in downsizing
the workforce.

https://hrforecast.com/a-guide-to-scenario-planning-examples-techniques-and-best-practices/
 Scenario Planning
• Building resilience or adaptation and
effectiveness. Another classic scenario
planning move is to create a scenario-
resilient organization. For example,

Scenario planning healthcare, education, grocery, public

works, transportation, and some
manufacturing entities focused on
examples protecting workers during COVID-19.
They implemented precautions that
physically isolated workers from each
other and took measures such as health
checks.
https://hrforecast.com/a-guide-to-scenario-planning-examples-techniques-and-best-practices/
Steps in creating HR Planning
Gap Analysis
• Recognizing the current
workforce status.
Forecast future • Ascertaining what the ideal
situation looks like.
HR requirements • Identifying where the current
lapses exist.
Steps in creating HR Planning
SWOT Analysis

Forecast future
HR requirements
Steps in creating HR Planning
• Do we need to add more employees for
new roles? If so, where from? How
many? Full-time or part-time?
• Does the market have an adequate
supply of potential employees?
Forecast future • Do we need to train and develop our
existing employees for reallocation?
HR requirements Which ones?
• Are we drawing on the expertise of
current employees sufficiently?
• Do we need to adapt any of our HR
policies or practices to accommodate
future human resources needs?
Steps in creating HR Planning
Action Plan

Develop and
implement plan
 Action Plan

https://www.wrike.com/blog/what-is-an-action-plan-with-example/#:~:text=It's%20all%20about%20putting%20down,a%20localized%20multimedia%20marketing%20campaign.
 Action Plan
1 Action Plan Objectives

2 Action Plan Steps

3 Action Plan Items

Components of an 4 Action Plan Timeline

action plan 5 Action Plan Resources

6 Action Plan Matrix

7 Action Plan Report

8 Action Plan Assignments

https://www.wrike.com/blog/what-is-an-action-plan-with-example/#:~:text=It's%20all%20about%20putting%20down,a%20localized%20multimedia%20marketing%20campaign.
 Action Plan

1 Define your Goal

2 Lists Tasks

Key steps of an 3 Identify Critical Tasks

action plan 4 Assign Tasks

5 Assess and Improve

https://www.wrike.com/blog/what-is-an-action-plan-with-example/#:~:text=It's%20all%20about%20putting%20down,a%20localized%20multimedia%20marketing%20campaign.
Steps in creating HR Planning

Monitor, review
and reassess your
plan
 Challenges in
Human Resource
Planning
Human Resource Planning

• Finding a Skilled
Labor Force
Challenges in • Inaccurate Demand
Human Resource Forecasts
• Technological
Planning Advancements
• Time Horizon
Human Resource
Planning
THANK YOU!