HUMAN RESOURCE PLANNING

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - 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.

 It improves the utilisation of human resources by helping the management forecast the recruitment needs in terms of both numbers as well as the types of skills required and develop ways to avoid or correct problems before they become serious and disrupt operations. It helps focus the recruitment efforts on the most likely sources of supply. This will cut down total costs or hiring and training personnel and reduce costs associated with hiring mistakes

 It makes provisions for replacement or backup staff from either inside or outside the organisation wherever the need arises either on a temporary or permanent basis. It helps achieve an integration of personnel plans with other operating as well' as strategic plans by making available the personnel management information base to other organisational activities.

 Consider some of the following questions: What are the companys goals and objectives? Do these goals call for expansion into new markets? Are new product lines planned? Are changes in technology necessary to stay competitive? Will new skills and/or training be required to meet the companys goals and objectives?

 Consider the following internal and external opportunities and record how they may impact your business: Competition: Often businesses will feel pressure to expand and hire more workers in order to remain competitive in a particular market. Technology: Technological advancements may increase the demand for employees in certain industries or professions. Increased customer demand: An increased demand for products or services may require more resources to help produce or deliver services.

 Economics: Growth of the economy or lower interest rates cause increased spending, and often increased business opportunities. Changes in the labour market impact your ability to find and keep employees. Workforce changes: These include resignations,terminations, leave of absences, death, change in employment status, and retirement.

Determine the Feasibility of Hiring

Before we hire, we must understand (1) the costs of hiring, (2)the benefits of hiring, and (3) the risks of not hiring. (1) When calculating the full cost of hiring a new employee we must consider: Labour costs, such as salary and benefits Recruiting costs, which may include advertising in addition to time spent on recruiting activities, orientation and training.

 Weigh the costs of hiring against the value of having an employee contributing to the business. The potential risks associated with choosing not to hire. Loss of revenues because of an inability to keep up with demand . Loss of employees because they are unwilling to continue being overworked or to do the work of a departed employee . No new ideas or knowledge brought in through new employees

 Forecasting External HR Supply : There are multiple levels at which external HR supply can be predicted, including global, national, provincial, regional, and local. Information that will help develop an understanding of external HR supply includes: Supply and demand of jobs or skills Compensation patterns based on experience, education, or occupation Immigration and emigration patterns within an area Educational attainment levels within a region Forecasts of economic growth or decline Competition for talent Industry or occupational expected growth levels

 Public policy, government, and legal changes Trends in labour force participation (including entry and exit) Technological development patterns

 Internal supply forecasting can be estimated based on the following: (a) Current Staffing Level (b) Projected Outflows This Year (c) Projected Inflows This Year