Human Resource Planning and Retention

 

             Human Resource Planning and Retention

What is Human Resource Planning ?

The need for human resources that an organization will need in the present and in the future to accomplish its goals is identified through human resource planning. It seeks to serve as a bridge between human resource administration and a company's broad strategic plan. 

It transforms the organization's goals and plans into an anticipated workforce needed to accomplish those objectives. The first step in the human resource process involves estimating how much and what kind of workers the company will require over the next months. Businesses who invest in training their personnel will experience an increase in the size of their staff. Businesses employ the human resource planning concept to maintain a steady supply of skilled personnel while avoiding staff shortages or surpluses. A solid plan can boost a business' productivity and profitability. The planning process typically entails four steps: evaluating the current employee supply, workforce forecasting, balancing labor supply and demand, and developing plans that support the company's goals.

Planning includes determining the organization's existing needs for human resources and how to hire them. The existing state of the workforce and anticipated future needs for human resources are outlined in strategic human resource planning.

Such planning links a company's overall human resource management to its operations plan. The acquisition and utilization of human resources in the fire strategy will determine the needs for human resource planning. Human resource planning refers to the coordination of all aspects of an organization's human resources, including recruitment, evaluation, compensation, training, job design, and establishment of performance criteria. The human resources division of the company is in charge of organizing the hiring procedure and planning the organization's human resources. The planning process helps the company identify the types of talent it needs and which areas would benefit from bringing in new people. Employing the right kind of qualified employees is essential to maintaining a company's profit and productivity levels (Wallstreetmojo Team, 2023). 

Key steps involved in HRP :-

a-       Forecasting demand

b-      Forecasting supply

c-       Gap analysis

d-      Developing strategies

e-      Implementations 

HRP lowers turnover costs, ensuring that personnel have the skills and competences necessary to support the company's objectives, and assists companies in avoiding employee shortages or surpluses.

What is human resource Retention? 

Businesses must understand why some employees leave and others stay in an increasingly competitive and dynamic labor market in order to increase profits and keep top talent. Strategic advantages include knowing what employees value, monitoring the financial effects of retention and turnover, and controlling and enhancing staff retention. Employee turnover, or the gradual loss of organizational talent, is a major problem for most businesses. In 2019, more than 42 million Americans left their employment willingly. By 2023, more than one-third of workers will willingly leave their jobs, if the current trend holds.

The ability of a business to reduce employee turnover, or the amount of employees who quit their jobs either freely or involuntarily, is known as employee retention. The performance and success of a corporation are directly impacted by staff retention rates.

Leading HR firms today place a high focus on employee retention. The best employee retention plans retain top achievers on staff while lowering overall turnover. The high costs of hiring new staff are decreased by a planned and thorough employee retention strategy. Employers who are aware of the cues that an employee may depart have a higher chance of finding solutions to keep them. For an organization to succeed, its top personnel must be retained. Retention of employees aims to achieve this. Employee retention refers to the plans a business makes to reduce the likelihood of employee turnover and the procedures it implements to keep its most valuable employees. Employee retention is currently a major concern for businesses and HR departments. People quit their jobs for a variety of reasons. Others are forced, like being laid off, while some are choice, like changing jobs. Instead of the loss of a poor performer, employee retention methods largely concentrate on voluntary turnover that is harmful to the company. It also emphasizes turnover that may be prevented, such as when a person quits their job to relocate out-of-state. (holiday, 2023). 

Benefits of employee retention: -

a-       Cost reduction

b-      Recruitment and training efficiency

c-       Increased productivity

d-      Improved employee morale 

e-      Experienced employees

f-        Better customer experience

g-       Improved employee satisfaction and experience

h-      Stronger corporate culture

i-        Increased revenue 

In conclusion, good HRP enables firms to match their personnel with their strategic objectives, while retention tactics are designed to foster a work environment where people are motivated to commit and engage over the long term. These techniques work together to create a productive and solid workforce.

References

holiday, M., 2023. Oracle / NetSuite. [Online]
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml
[Accessed 26 July 2023].

Wallstreetmojo Team, 2023. Human Resource Planning. [Online]
Available at: https://www.wallstreetmojo.com/human-resource-planning/#human-resource-planning-process-explained
[Accessed 26 July 2023].