Human Resource Planning is a continuous process which helps organizations to predict its current and future workforce needs in order to achieve its goals. Human Resource Planning comprises of six stages:
Identify the Goal:
To sort any management issue, a unique process is carried out in order to achieve an organizational goal. Similarly, when it comes to human resource planning, the company first needs to identify the particular goal that is to be achieved in future like increasing production, sales promotion or market share etc.
Assessing Current Humans Resources:
At this stage, the current inventory of human resources is analyzed by the company while keeping in mind the aim to accomplish. The company collects all the relevant information about the employees such as the current number of employee, their skills and performances.
Forecasting Demand and Supply:
After getting an understanding on the available workforce, the amount of work is estimated which employees are needed to accomplish in the near future. Once the picture of workforce demand is clear, we start to predict the supply by analyzing the internal and external sources of recruitment. The internal sources of recruitment can be transfer, promotion, job enrichment, referrals etc and the external sources of recruitment can be job portals, job consultancies, social media, advertisement in newspaper etc.
Identify the Gap:
When we have the figures of future demand and supply, the gap in manpower is identified by comparing the figures. Accordingly, in case of employee shortage, the company starts hiring employees and in case of excess manpower, the company starts terminating employees depending on their performances.
Now as the gap is identified in the previous stage, the company gets a clear idea on its need to hire or terminate to achieve its goals. Depending on the gap, the action plan is focused on HR activities like recruitment process or terminating process. The common hiring HR practices include transfer, promotion and recruitment through consultancies. The common termination HR practices include letter requesting resignation, voluntary retirement schemes etc.
Monitoring and Control:
At this stage, the action plan of human resource planning is implemented and is monitored at regular intervals. If any need for change is found then the plan can be improved accordingly.