Three Key Elements Of The Human Resources Planning Model

We handpick every product we feature. We may be compensated or earn commission from the links on this page.Small Business|Human Resources|Human Resource PlansThree Key Elements of the Human Resources Planning ModelBy Kristie Lorette, Contributor

The human resources planning model is a method is used to make sure a business has enough employees and the right employees to carry out the various functions of the business. Done properly, it can help to ensure that a business has the right talent coming through the pipeline to meet the company's current and future needs.

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The human resources planning model encompasses three key elements: predicting the number of workers your company needs, analyzing if the supply of potential employees meets your demand and learning to balance the supply and demand cycles.

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Forecasting Staffing Needs

There are several ways to forecast your business needs in order to predict how many workers you need to run your business and which roles these employees need to fill. Some of the factors to consider include the situation of the economy, both local, regional and national, the internal business finances, the demand for your products or services and the short- and long-term growth expectations for your business.

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To forecast staffing needs, take a look at your existing staff and see which current employees are likely to transition into new position within the company. Also consider how many of your employees may leave in search of outside opportunities.

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Evaluating Supply

Evaluating the supply of employees includes a two-prong process: evaluating internal staff, which will occur as you are forecasting your staffing needs, as well as external staff. Externally, you need to evaluate the demographics of the workforce that is available. This can include factors such as education, mobility, the unemployment rate and state and federal government laws and regulations that can affect your industry, your business, existing and potential employees. Evaluating all of these factors helps you determine if you have access to the number and types of employees you need to fill your staffing forecasts.

If your small business does not have the resources to conduct an external evaluation, contact a local community college, university, workforce development program or economic planning group. Many of these entities use state or federal dollars to compile statistics on the local workforce in an effort to recruit new businesses and expand local enterprises.

Balance Supply and Demand

The final element of the human resources planning model is to determine how you are going to balance the demand you have for employees with the supply of employees available. If you have a shortage of employees, this will determine what type of recruiting efforts your business will participate in to attract the employees it needs to fill needs within the company. It also requires you to balance your full-time and part-time needs.

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If you have a surplus of employees, this requires you to consider employee layoffs, retirements and situations where employees may need to be demoted or moved into a lateral position rather than receiving a promotion.

References

• Southeastern Oklahoma State University: Strategy and Human Resources Planning
• Investopedia: Human Resource Planning

Kristie LoretteContributor

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.