Strategic HR planning links management and business plans to ensure adequate human resources for achieving company goals. The process includes situational analysis, assessing HR capacity, forecasting demand, and developing an action plan.
Strategic human resource (HR) planning is the link between management and the strategic business plan. The purpose of strategic HR planning is to ensure that a company has adequate human resources for it to achieve its goals. The strategic HR planning process includes conducting a situational analysis, assessing a business’s human resource capacity, forecasting demand, and developing an action plan.
The main objective of strategic HR planning is to meet the future needs of the organization. For this department to achieve its objective, it needs to clearly understand the current situation and what the plan calls for. If the company wants to develop new products, reach new markets or expand operations, it may need additional human capital to meet its objectives. The human resources department may have to hire additional staff, provide additional benefits to those who will have more responsibilities, or shift employees to different locations.
Conducting a situational analysis is typically the first stage of HR strategic planning. This situational analysis takes into account the strategic plan of the business and its competitive environment. The human resources department will need to understand the business objectives along with timelines, benchmarks and specific needs. If the company invents a product for a new market to be released in a year, for example, it may need to hire an expert for that market in the coming months to support the company’s objectives. The analysis should also include information about the company’s competitors, such as workforce size, education levels, advanced skills, and employee performance expectations.
Assessing its human resource capacity helps a company understand any current limitations in executing its strategic plan. It will be necessary to create a list of employees along with their skills, abilities, experience and education. Including performance appraisal results can also be helpful in understanding each employee’s capabilities. This list can help the human resources department in their strategic HR planning to determine if additional staff are needed or if someone can be promoted, moved or given additional responsibilities.
Forecasting a company’s demand for employees is necessary in HR strategic planning to create an action plan. By using the company’s strategic plan as a guide, he can determine the types of work and skill sets needed to achieve his goals, as well as how many employees will be needed for each position. This forecast should include a timeline for when these additional employees will need to be hired or whether current employees will need to undergo special training, especially if the company expects these employees to be ready by a specific time in the future.
Writing the action plan is the final step in HR strategic planning. This action plan includes the objectives of a business, situational analysis, human resource capacity and forecasts. He also discusses the difference in the number of employees he currently has and the anticipated number. This action plan should also outline any constraints on achieving the objectives, such as if the office can only accommodate 30 additional staff when 50 are needed.
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