Internal and External Factors Influencing Human Resource Planning
- There's more to human resource planning (HRP) than just hiring more people.
- How do you hire the right people, with the right skills, at the right time?
- It involves:
- Assessing Current Workforce: Understanding the skills, capabilities, and demographics of your existing employees.
- Forecasting Future Needs: Predicting the number and types of employees required based on business objectives.
- Developing Strategies: Implementing recruitment, training, and retention plans to bridge any gaps.
Definition
Human resource planning (HRP)
Human Resource Planning (HRP) is the process of forecasting an organization's future workforce needs and developing strategies to meet those needs.
- HRP is a proactive process.
- It helps businesses prepare for changes rather than react to them.
Internal Factors Affecting HR Planning
1. Business Strategy & Objectives
- Business goals directly shape HR strategies.
- For example:
- A company focused on cost reduction might prioritize automation and streamlining its workforce.
- A business aiming for innovation may invest in training and recruiting top talent.
Amazon's rapid growth strategy led to a significant increase in its workforce, while Ryanair focuses on minimizing labor costs to offer competitive prices.
2. Organizational Culture
- Culture influences the type of employees a company attracts and retains.
- A collaborative culture might emphasize teamwork and flexibility, while a hierarchical culture may focus on clear roles and responsibilities.
Always link your proposed HR strategies with the company's culture to ensure a cohesive and motivated workforce.
3. Technology & Automation
- Automation and digital tools can reduce the need for certain roles while increasing demand for tech-savvy employees.
- HR plans must adapt to these changes by focusing on upskilling and reskilling.
Foxconn's use of robots in manufacturing reduced its reliance on manual labor, shifting its HR focus to hiring and training employees skilled in robotics and AI.
