Statutory Compliance

Human Resource Planning (HRP)- Gretis India

What is Human Resource Planning?

What is Human Resource Planning? This is a strategic plan for the human resources department that focuses on the allocation of resources to ensure that employees receive the right kind of compensation for their skills and talents. Basically it ensures that employees are fairly compensated for their efforts and there is no disparity in the rewards that they are entitled to receive based on their gender, age, contract with the company or other such factors. There are different types of employees such as managers, sales people, clerical workers and so on. The entire planning process basically ensures that employees are given the right kind of incentives to work hard.

The major function of human resource planning is to secure a stable labor supply by ensuring that there is a growth in the supply of labor force as well as creating a stable demand for labor in the current job market. Usually companies have their own plans regarding the allocation of resources so that they can reap maximum benefits. For example, a company that deals with providing housing and health care services to employees will have to ensure that there is a constant growth in the number of employees who want to avail of those services.

Understanding HRP

Understanding Human Resource Planning (HRP) makes it possible for organizations to understand the needs of their people, identify their strengths and build a workable strategy to use HRP to optimize workforce requirements. HRP is the constant interplay between human resources management (HMS), strategic and operational plans, and the actions needed to take an organizations capacity and working needs into a higher level. Human resource planning (hrp) helps to determine what employees of a company need, how they can be obtained efficiently, what roles and responsibilities they require, and how to best implement these to achieve maximum organizational effectiveness. HRP is one of the largest and most effective tools used by human resources departments in all companies around the world.

Human Resource Planning starts with understanding the relationship between labor demand and supply. It then follows that labor supply is directly related to the rise in productivity. Organizational growth should therefore be matched to an increase in human resource capabilities that increase the organizational value. Human resource planning helps to understand the needs of human capital, develop training and development programs directed at developing and retaining qualified, capable and trained human capital, and identify the sources of supply of labor.

Challenges of Human Resource Planning

Challenges of Human Resource Planning are as inevitable as the number of people in the workforce. A business with one employee has to deal with hundreds of others with varied career goals and skills. There are many different aspects that can affect the success or failure of HRP.

Labor supply

One of the biggest challenges of HRP is to cope with the changing labor supply. The U.S. has a large number of retirees. In addition, the aging of the baby boomers will create a labor shortage. As more Baby Boomers retire, they will not be replaced by competent, trained replacement labor, which limits human resource planning strategies.


Employment is also affected by changes in the economic structure. In addition to the baby boomers retiring, there will be an increase in the number of employees who take on part-time jobs to supplement their income. With the employment rate is increasing and the tightening of monetary policies, businesses are finding it difficult to attract and hire qualified, skilled workers. This means that human resource planning has to adapt to changing labor demands. Human resource planning may need to focus on developing new staffing strategies to meet increasing needs for skilled employees.

Human Resource professionals

Another challenge of human resource planning is that it may be difficult to determine whether the existing Human Resource professionals are skilled enough to meet the demands of the company. Many companies believe that having a human resource professional on staff will allow them to hire and keep the best human resources. However, a human resource professional can be expensive to hire, especially if the company is trying to replace another professional or a department head. Thus, the company may opt for an on-site expert, especially if the human resource professionals are not skilled enough to meet the current labor demand.

Smaller companies

Another challenge of human resource planning arises from the trend of smaller companies growing at a rapid rate. These companies often outsource positions to agencies like Human Resource One and fill those positions with qualified temporary employees. The agencies receive a percentage of the salary which the employee makes, but they do not provide any benefits or a retirement plan. Often, these temp employees become attached to the company because they feel more comfortable working at a familiar place. This leaves the human resource professional in a tough situation because they have an employee who is not being paid benefits and may not be trained in the latest methods of job search or development.


The other challenge of human resource planning arises from the type of employees that the company wants to hire. If the company wants to hire a number of employees for a number of positions, then it makes sense to interview each candidate to determine whether or not they would fit into the company. However, many companies only interview a few applicants and do not do a complete screening of the potential employees. Thus, the HR department must dedicate resources to doing a complete applicant screening, interviewing the potential candidates, evaluating the interviewers, and sending in the best possible applicant for the final position. If human resource planning is not completed properly, a company can lose a great employee to the depths of despair.


There are four primary steps to the process of human resource management (HRM). These include examining current labor supply, anticipating future labor needs, balancing anticipated labor demands against supply, and managing corporate goals. HRM also allows employers to remain both financially productive and socially productive. In order to manage this effectively, one must first understand what HRM is. In essence, it is about the management of the human resources aspects of a company.

1. Analyzing Labor Supply

The first step in human resource planning is analyzing the current labor supply. This includes assessing the number of employees that can be easily and cheaply replaced, the number of employees that are available for training or development, and the number of full-time employees required to support existing labor needs. Analysis of the current labor supply allows managers to pinpoint the locations in which labor is in greatest demand. Managers may then implement solutions that increase the supply of these key factors.

2. Forecasting Labor Demand

 The second step in human resource planning is the determination of future labor needs. Many businesses make the mistake of forecasting the number of new positions that they expect to create within their existing labor supply. The end result is that they do not fill all the positions that they anticipate creating, leaving an over abundance of available workers. The best way to address this issue is through the use of a skilled employee recruiting firm. A recruiter will be able to determine where the greatest unmet needs are, allowing businesses to target the individuals most in demand.

3. Balancing Labor Demand With Supply

 The third step to human resource planning is to balance the current labor supply against future labor needs. Many businesses, realizing the potential profitability of hiring additional workers, often underrate the importance of hiring additional skilled employees. As a result, they are not properly maintaining their labor force, while not adding to the overall supply of skilled workers. A skilled employee recruiter can help businesses determine the most pressing issues affecting their current labor force, as well as those that could arise in the near future. By doing so, a business can develop strategies that address the issues that are most likely to affect their employees.

4. Developing and Implementing a Plan

Finally, the fourth step to human resource planning is to implement strategies for addressing the identified issues. Often times, organizations utilize a generic or cookie cutter approach to their human resources plans, resulting in generic responses that do little to address an individual company’s unique future needs. By using a template designed for your company, you can ensure that all of your future HR needs are addressed with consistency. Furthermore, these templates have been tailored to meet the specific needs of your industry and business.

There are several benefits associated with the development of a strategic plan template. Although most companies view human resource planning as a time consuming process, it actually presents numerous opportunities for businesses to save money and increase profitability. By devising a strategic plan, you can ensure that your business is operating at maximum capacity. In addition, by incorporating accurate data and accurate information into your human resources plan , you will be able to accurately gauge the performance of your labor force, thereby improving overall efficiency. Finally, by creating an accurate and comprehensive human resources plan, you can effectively implement strategic policies that will address your company’s future needs.

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