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Human Resources Strategic Planning

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Date : 02/11/2018

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Bhaskar

Uploaded by : Bhaskar
Uploaded on : 02/11/2018
Subject : Business Studies

Introduction

The success of a business is directly linked to the performance of those who work for that business. Underachievement can be a result of workplace failures. Because hiring the wrong people or failing to anticipate fluctuations in hiring needs can be costly, it is important that you put effort into human resource planning. Planning for HR needs will help to ensure your employees have the skills and competencies your business needs to succeed. An HR plan works hand in hand with your business plan to determine the resources you need to achieve the business s goals. It will better prepare you for staff turnover, recruitment, and strategic hiring and alleviate stress when you have emergency/last-minute hiring needs.

Forecast of Activity

The daily demands and hectic lifestyle of business owners and managers often has an unfortunate by-product: human resource planning gets placed on the bottom of the list of things to get done. Failure to anticipate potential changes in your workforce often leads to last minute or crisis mode decision-making. Needless to say, quick fixes are no solution to long-term issues. Taking the time to forecast future hiring needs today will save you time and money in the long-run. HR planning must be tied to the overall business plan. You can start the process by assessing the current conditions and future goals of the company.

The following three-step method is designed to help you determine whether or not you are ready to hire:

Identify Business Strategy and Needs

We consider the following internal and external opportunities and record how they may impact your business: [1]

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. Clarify your business strategy and direction

Describe what your business does in terms of key functions and tasks and then describe the changes that will come into play and the direction that the business will likely take in the next few years. 3 If you expect to increase sales by 50% over the next five years, consider what impact that will have on your hiring needs. If you are a start-up company, consider the different sorts of employees you will need at each stage of development.

[1] Monica Beauregard and Maureen Fitzgerald, Hiring, Managing and Keeping the Best: The Complete Canadian Guide for Employers (Toronto: McGraw-Hill Ryerson, 2000), 4. 3 Hiring, Managing and Keeping the Best, 4.

Conduct a Job Analysis and Write a Job Descri ption

If you decide that you need additional employees to fulfill your business strategy, it is recommended that you conduct a four-step job

Review your current workforce

Describe the employees you now have in terms of their knowledge, skills, and experience and describe how they function together to get work done. Map these onto your strategic plan and describe the skills and knowledge that you will need for the anticipated new work or function. At the same time, consider how the current work could be reorganized to make the best use of current and future employees.[1] Identify any skills and knowledge gaps

Note any gaps between the skills and abilities your current employees have and the skills and abilities that your workforce needs to meet your business objectives in the future. To ensure that you have considered the full scope of the new position from all different perspectives, ask the current employees what they think their position would involve.





After completing steps one and two, you can begin to draft a job descri ption. lt;/span>Although many small businesses do not take the time to draft job descri ptions, lt;/span>it is a worthwhile exercise. lt;/span>
Determine the Feasibility of Hiring:
Before you hire, you must understand (1) the costs of hiring, (2) the benefits of hiring, and (3) the risks of not hiring. lt;br>Remember: There should be a strong relationship between how many additional employees you hire and how much of an increase in sales, production, etc. that you can expect.

The above are the brief review of the outline strategy required for HR planning.

This resource was uploaded by: Bhaskar