HR Planning

HR Planning

In this session we’ll cover The integration of HR strategy with

overall business strategy The importance of workforce

planning Methods of Demand Forecasting Methods of Supply Forecasting

What is HR Planning? “Human Resource Planning is the

systematic and continuing process of analysing an organisations human resource needs under changing conditions and integrating this with the development of personnel policies appropriate to meet those needs.” Robinson, I (2007)

What is HR Planning? “… a process by which the

management of an organisation determines its future human resource requirements and how the existing human resource can be effectively utilised to fulfil these requirements.” Jyoti and Venkatesh, (2008)

Integration of HR and Business Strategies An organization should have a clear

mission and vision statement(s) SWOT analyses for both organization

and HR Department should be conducted.

Key HR issues to enable organization to achieve its goals/objectives should be identified.

THE IMPORTANCE OF WORKFORCE PLANNING

To meet the future needs for the correct number of skilled employees

To aid HR to recognize resource constraints but still achieve goals

STEPS IN WORKFORCE PLANNING PROCESS:

Predicting demand for human resources Determining supply available, internally

and externally Compare projections to determine gaps Develop action plans to reconcile gaps Implement staffing plans Evaluation

Predicting Demand Judgmental in nature (usually forecasts from

experts within and outside of the organization Estimates based on similar organizations

(“benchmarking”) Scenario planning, based on several potential

outcomes of the new venture, can assist in identifying how many and what kind of employees may be needed as the business grows (or doesn’t!)

Nominal Group Technique Experts meet face to face

Delphi Technique Experts work independently

Predicting Demand Statistical in Nature

Ratio analysis If the organization knows it takes 10 employees

to produce 100 tennis racquets a day and the org. is forcasting an increase in demand to 150 tennis racquets a day, then 5 more employees need to be hired.

Regression analysis Statistically identifies historical predictors of

workforce size. Predicts HR demand with an equation.

REGRESSION ANALYSIS

# ofEmployeesNeeded

0

50

100

200 Y = .99 + 42(x) + .06(x) - .25(x)

Factors Affecting Human Resource Needs(Sales $, Unemployment Rate, $ Spent on Tech)

Determining HR Supply External analysis of workforce

Workforce composition takes into account the demographic and skill availability composition of the workforce in the relevant labor market (RLM)

Internal analysis of workforce Takes into account the likelihood of

retirements, turnover, potential training needs of current employees, and future staffing requirements

Factors Influencing External Supply

What environmental factors are affecting our available labor market? aging of labor force? fewer workers aged 16-24 available? more dual career couples? more working women?

INTERNAL SOURCES OF SUPPLY INFORMATION Skills Inventories are

just a hard or soft file on who can do what

Replacement Charts are organizational charts that also includes the person, his/her performance level, & promotion potential

Succession Planning is More sophisticated

than a replacement chart, and includes

When the position will be vacated

Who is promotable What training is

needed for that person

Action Planning Compare demand and supply

models to determine if there are gaps. Surplus? Shortage? Demand meets supply

Develop Action Plans to Close the Demand-Supply Gap Objectives of the Plan Specific Activities

Recruitment and Selection Training and Development Outsourcing and Contingency Staffing

Individuals Responsible Timetable for Completion Performance Indicators

Example of Workforce plan

Row Column Row Column

Promote 10 Senior Sales Manager Sales 31-12-2011

Promote 5 Staff Sales Senior Sales 31-12-2011

Hire 5 Staff Sales 13-12-2011

Transfer 9 Staff Project 1 Staff Project 3 15-01-2011

Lay off 4 Staff Project 2 15-01-2011

Example of a Staffing Plan

From To

Type of Action Number of staff

Evaluation Did the action plans achieve the

goals/objectives? This is a must that is often not

done very well.