HR planning is the systematic and ongoing process of preparing the organization for future changes to its most valuable asset – its human resources. HR planning affects the organization because it prepares the organization by analyzing current labor trends and needs, by forecasting labor demand to avoid employee surpluses or shortages, and by delicately balancing projected labor needs and supply.
Done well, HR planning is integrated into other aspects of the business by forecasting different needs of different departments for different scenarios. For example, in retail the busiest time of the year is the holiday season. A good HRM will plan for additional labor by starting the hiring process early so new employees can be trained by the time they are needed. If this planning process is not completed and implemented timely, the retail location could face a shortage of employees, thus putting a strain on current employees and on already cranky customers. Wal-Mart is a prime example. Every holiday season Wal-Mart hires thousands of temporary workers in its stores to meet the demand for stocking, shelving, cashiering, customer service, etc. throughout the store. Without these temporary employees Wal-Mart could not meet the demand by customers during this season. If Wal-Mart HR over estimates the need for temporary employees, the company could also face a surplus of employees. The delicate balance must be made to ensure Wal-Mart helps its customers and does not over-spend on employee costs.
Does your company have proper HR planning, or is there an imbalance?