2.1 Human Resources Planning and Strategy

HR Planning is a strategic process that helps companies plan for future human resources that are needed to support the growth, or downsizing of production demands. It allows companies to predict the future, analyze the needs of the company, decide the market availability of candidates for specific jobs, and make decisions when and how to adapt and use human resources (people.)

In today’s rapidly changing workplace, companies need to respond quickly to the market trends and changes. The HR Plan helps them to respond efficiently. It is often coined that companies need to have “the right people in the right place at the right time.” To compliment this saying, it is also important for companies to have a plan, practices and policies.

An example is a company that needs to update its technology, and is growing in the field of visual imaging. The employees do not want change, have not had upgrading in their skills in visual imaging for 3 years, and do not trust that the company will be able to expand and survive. It is the HR department’s responsibility to develop a plan that attracts and hires skilled new employees, and at the same time upgrades the existing employee’s skills. As well, there needs to be a plan to build trust and loyalty with the existing employees so they feel secure in their jobs.

The strategic plan is developed by internal and external forces that help with success. When developing the HR Plan it is important that it aligns with the strategic plan, and bring the two together with a focus on the longer term success of the company.

HR departments begin an HR Plan by predicting or anticipating the number of employees they will need with the expansion, and what skills the new employees will need to possess.