HR Strategic Plan
Introduction to Strategic HR Planning
Strategic HR planning predicts the future HR needs of the organization after analyzing the organization's current human resources, the external labor market, and the future HR environment in which the organization will be operating.
A Strategic HR plan allows making HR management
decisions now, to support the organization's future direction.
Strategic HR planning is also important from a
budgetary point of view so that HR, can factor costs such as recruitment and
training into your organization's operating budget.
Through an HR plan, we can formally assess measurable, specific elements like staff turnover, the number of open positions, employee complaints, and employee satisfaction and dissatisfaction levels.
With an HR plan, you can formulate what is required of you to take care of your employees’ needs. It also keeps a check on morale and measures productivity and your employees’ sense of commitment.
The overall purpose of strategic HR planning is to:
- Make sure your
organization has enough human resources to accomplish its operational and
strategic plans, including the right individuals with the right talents at
the right time.
- Keep
up with social, economic, legislative, and technological trends impacting human resources in your area and the sector.
- Stay
adaptable so your organization can handle change if the future turns out
to be different than you had planned.
3
Key elements of the HR planning process.
- Forecasting the labor demand.
- Analyzing the present labor supply.
- Balancing projected labor demand and supply.
The basic questions to be answered for strategic planning are:
- Where are we going?
- How
will we develop HR strategies to successfully get there, given the
circumstances?
- What
skill sets do we need?
Benefits of having an HR strategic plan in an organization
- Identification of HR constraints and opportunities.
- Clearly stating the objective of the company.
- Encouraging proactive rather than reactive behavior.
- Identification of gaps between the current situation and future vision.
- Creation of common bonds.
- Stimulation of critical thinking and ongoing examination of assumptions.
- Encouragement of line managers' participation.
The Strategic HR Management Planning Process
- Assessing the current HR capacity - The knowledge, skills, and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee.
- Forecasting HR requirements -Forecast HR needs for the future based on the strategic goals of the organization.
- Gap
analysis -
- Developing HR strategies to support organizational strategies - Develop five HR strategies to meet the organization's needs.
Five HR Strategies
·
Training and development strategies.
·
Recruitment strategies.
·
Outsourcing strategies.
·
Collaboration strategies.
· Restructuring strategies.
Developing a Strategic HR Plan
Results-oriented goals broadly include the following: ·
- Correctly assessing staffing and skills needs and keeping training up to date.
- Developing and maintaining competitive pay and benefits.
- Managing performance and designing a rewards system that keeps employees motivated.
- Knowing what competitors are doing to recruit and retain talent.
- Providing training, including ethics, which reinforces corporate values.
Strategic Planning Process
Source: Planning and Managing Human Resources
Simplified Model of Strategic Planning for HR
Why is it important to link organizational plans and HR plans?
A linkage between the organization and the HR function thus refers to the process of tying them together or aligning them. This link helps ensure that the right numbers and right types of people are available with the right talents at the right times and in the right places to help achieve organizational goals. It also helps to address a pressing skill shortage that is hampering growth in many organizations (Greengard, 1998).
HR professionals have repeatedly been advised to work for close collaboration between their activities and strategic planners. There are valid justifications behind it. First, successful businesses across all industries are more likely than poor performers to approach HR strategically (Barney and Wright, 1998; Lam and White, 1998).
Second, top managers in many organizations, as a group, want HR professionals
who are capable of dealing proactively, anticipating rather than just reacting
to organizational needs, particularly needs for management talent consistent
with strategy requirements (Bennett, Ketchen, and Schultz, 1998). Third, the
career success of HR professionals depends increasingly on their ability to
think strategically and act decisively.
Modern HRP systems have an important trait known as the usage of HR data during the strategic business planning process. HRP can in reality be connected to strategic business planning, as well as the mission or goal of an organization.
Conclusion
Through
the strategic HR plan, an organization can utilize its resources more accurate
manner as well as able to take more accurate decisions which help to achieve
the overall organizational objectives and goals. Also, the HR team is able to
identify more resources in some areas than others and able to redeployment of
employees to the shortage area by providing the required training which leads
to minimizing the organization’s operational cost.
References
ADP
(November 03, 2022)
-HR Strategy: What is It and How
to Create One [online] Available: https://www.adp.com/resources/articles-and-insights/articles/h/hr-strategy.aspx#:~:text=What%20is%20an%20HR%20strategy,succession%20planning%20and%20corporate%20culture (Accessed: April 19,2023).
SemiColonWeb (2022) HR strategic plan template: Outline of HR strategy & benefits, Powerslides. [online] Available at: https://powerslides.com/powerpoint-industry/recruitment-templates/hr-strategic-plan/ (Accessed: April 19, 2023).
Strategic HR Planning | CCHRSC. [online] Available at: https://www.ccsc-cssge.ca/hr-resource-centre/hr-toolkit/hr-planning-infrastructure/strategic-hr-planning (Accessed: April 19, 2023).
WILLIAM J. ROTHWELL and H. C. KAZANAS: Planning & Managing Human Resources | Strategic Planning for Human Resource Management – 2nd Edition. [online] Available at: http://dspace.vnbrims.org:13000/jspui/bitstream/123456789/4165/1/Strategic%20Planning%20for%20Human%20Resources%20Management.pdf (Accessed: April 19, 2023).
Strategic HR planning should be done very intelligently. Otherwise, the company's future is unclear. Budgeting is also important from a point of view as expenses such as HR, recruitment and training greatly affect your organization's operating budget. And one of the factors that affects the personnel system is that employees with good attitude should be recruited during the selection process. There will be a need for human resources with a lot of practical knowledge. Through a human resource plan, the process of formally assessing specific aspects that we can measure such as staff turnover, number of open positions, employee complaints, and employee satisfaction and dissatisfaction levels is all management work.
ReplyDeleteAgreed with your comment Sineth.
DeleteThat's why I have included those highlighted areas in the introduction level. With an HR plan, you can formulate what is required of you to take care of your employees’ needs. It also keeps a check on morale and measures productivity and your employees’ sense of commitment.
A crucial element of a successful management and this is a revolusionised form of HRM.
ReplyDeleteA few trends have emerged in the field of Strategic Human Resource Management
(SHRM) over the past few years. First, and most obviously, has been the extensive effort to
demonstrate a link between HRM practices and organizational performance (Becker & Gerhart, 1996).
That's true Rifak.
DeleteA linkage between the organization and the HR function thus refers to the process of tying them together or aligning them. This link helps ensure that the right numbers and right types of people are available with the right talents at the right times and in the right places to help achieve organizational goals. It also helps to address a pressing skill shortage that is hampering growth in many organizations (Greengard, 1998).
I acknowledge that its important to link Human Resources with the company strategy. You have written a comprehensive article on the subject. Organizations make plans for the future but it is the people who need to execute them. As such HR requires a seat at the board room where these plans are discussed so that they can do the background work to see if we have the quantities, qualities and the competences within the organization. Methods to close the gaps found need t be planned out: external sourcing and internal development. These required intense and focused action on carefully identified timelines. There is so much more that should follow in order to make he strategy work and reap the desired results. So yes, i agree that it is a very important topic for any organization.
ReplyDelete