Human resource planning

An overview of human resource planning

This post will discuss Human Resource Planning: Meaning, Importance, benefits and Process.

Let’s look at each section in more detail: 

What is human resource planning?

Human resource planning helps companies determine their existing and future workforce needs in relation to their overall goals and objectives. It is the process of setting up HR requirements and initiatives to ensure they are in line with the company’s strategic plan.

Most employees communicate with HR mainly during the hiring, onboarding, and termination processes. In the meantime, they may go years without directly contacting HR.

However, human resource planning has a direct impact on every employee. As a result, understanding this aspect of the organisation is important for everyone involved.

Importance of HRP

Human resource planning is mandatory for achieving organisational goals. It works as a foundation for HR tasks such as recruitment, onboarding, and performance reviews.
Its most important features include:

1. Increasing Productivity:

HR planning focuses on increasing productivity by efficiently using resources and avoiding waste. Employees improve their skills, motivation, and productivity through training, performance appraisals, and fair compensation.

2. Implementing Managerial Activities:

Effective HR planning ensures that the correct people are in the correct positions, which is important for planning, organising, directing, and controlling. Having the right staff members is important for company operations to run successfully.

3. Motivating Employees:

Beyond hiring, HR planning includes involving employees through incentives. These programs encourage engagement and retention, ensuring staff stay committed and give their best effort.

4. Improving Employee Relations:

Strong relationships between employees are essential for long-term stability. HR planning improves this by focusing on training and development, encouraging open communication, and building strong leadership. This creates a positive work atmosphere where employees work together and interact productively.

5. Coping with Change:

HR planning helps companies to adjust to changes in the external environment. It includes creating methods for improving employee and organisational performance.

6. Evaluating Demand and Supply of Resources:

HR planning ensures that the correct number of employees are available to meet the company’s requirements, avoiding overstaffing or understaffing. It maintains a balance that allows for efficient operations with no extra costs or gaps.

7. Increasing Quality of Hire:

HR planning increases the quality of applications by describing the necessary qualities and skills.

8. Growing a Competitive Advantage:

Organisations that engage in HR planning can identify and develop exceptional talent. Having talented employees in the correct positions gives a company a competitive advantage, allowing for faster adaptability to changes, innovation, and improved service or product delivery. HR planning enables companies to stay ahead by ensuring they have the people to tackle challenges and realise opportunities.

Benefits of Human Resource Planning

Effective human resource planning is important for an organisation’s success because it connects human capital with business goals and objectives.
Here are the main benefits:

1.Talent Management

HR planning helps the company in managing its talent. It identifies top performers and gives possibilities for growth, benefiting both the organisation and the individual employee.

2.Training and Development

 It identifies skill gaps and provides appropriate training to boost productivity and employee engagement.

3. Manage Human Resource Costs

HR planning reduces talent management costs by offering insights into the proper staff size, resulting in savings.

4. Promotes Employee Retention

Effective HR planning promotes a pleasant work environment and culture, which boosts job satisfaction and employee retention.

5. Mitigate Risks and Uncertainties

 It helps organisations anticipate and manage hiring and workforce allocation risks, preparing them for external disruptions like labour shortages or changes in labour laws.

6. Gain a Competitive Advantage

 Efficient HR management saves costs, allowing investments in other business areas or giving cost savings to consumers, thus increasing competitiveness.

7. Coping with External Changes

HR planning helps companies respond to changes in technology, market conditions, and pricing, strengthening the organisation.

8. Conformity to Regional Compliance

It ensures that the company follows regional labour regulations, which are often updated, by assessing and updating HR policies accordingly.

9. Strategic Workforce Planning

HR planning helps support strategic succession and promotion strategies and manage internal issues caused by employee retirements or leave.

10. Align Human Capital with Business Goals

It links the workforce with the company’s goals, vision, and objectives, allowing the team to achieve them more effectively.

Human Resource Planning Process

Human Resource Planning (HRP) is a systematic procedure for ensuring the most effective management of human resources, often known as manpower planning.
This organised method includes careful examination, forecasting, and strategically allocating personnel resources. Businesses that follow the HRP process can ensure that their workforce remains a valuable asset for long-term success.

Step 1: Analysing the Environment

The first phase in human resource planning is environmental analysis. It involves examining external and internal factors to identify difficulties, dangers, and opportunities that may affect the organisation’s strategy.

  • External Environment: Competitors, Legal factors
  • Internal Environment: Company Strategy, Technology

Step 2: Predicting Labour Demands

Predicting labour demands helps to avoid shortages, which may prevent business growth. There are two primary methods:

  • Qualitative Methods: Experts use techniques such as Delphi and nominal group methods to create forecasts through debate and idea sharing.
  • Quantitative Methods: Techniques like trend analysis use historical data to predict future workforce needs. They involve steps such as selecting business factors, plotting historical data, and making adjustments for future projections.

Step 3: Assessing Labor Supply

Assessing labour supply considers internal (current workforce) and external (possible recruitment) resources to determine current and future needs.

  • Internal Supply: Using data from the HR Information System (HRIS), project trends for current employees and job roles.
  • External Supply: Potential recruits from the larger labour market, which may be local, national, or worldwide, depending on the job skills required.

Step 4: Bridging Gaps

Gap analysis compares labour demand and supply to predict skill shortages or surpluses. This enables HR planners to connect the organisation’s workforce capabilities with its business objectives.

Step 5: Implementation Planning

Implementation planning details the steps required to implement the chosen solutions, ensuring that earlier decisions are carried out correctly.

Step 6: Oversight and Evaluation

Oversight and evaluation determine the effectiveness of HR plans. This step involves identifying deviations from the goals, taking corrective steps as needed, and using feedback to determine HR objectives.

Our blog post on Human Resource Planning is now finished. In the comments section, let us know if you have any other questions or issues.


1. Which factors influence human resource planning?

Ans: External elements influencing human resource planning include government regulation, technological improvements, and the business environment. Internal factors include company policy, organisational culture, and the demand for particular skills. These elements define workforce planning strategies and ensure they are in line with organisational goals.

2.How does human resource planning contribute to organisational success?

Ans: Human resource planning helps organisations succeed by improving employee experiences. Proper orientation programs, for example, help employees understand the organisation’s values, resulting in improved productivity and overall effectiveness.

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