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
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.
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].
Two main important areas of HRM have been discussed in the article. Planning for human resources is a continual, methodical process that aims to make the best possible use of a company's employees and the retaining the recruited employees in order to keep a low staff turnover ratio is retention. These two topics have been discussed as a summary in the article while addressing important points.
ReplyDeleteAgreed!HR retention may be achieved by a variety of methods such as delivering incentives, improving the working environment, rewarding staff, and so on.
ReplyDeleteHaving a sound employee retention strategy is a must in Human Resource Management (HRM).
ReplyDeleteAgreed, employee retention is an ongoing effort that requires continuous evaluation and improvement
ReplyDeleteIn HR planning, an organization must consider the availability and allocation of people to jobs over long periods of time, not just for the next month or even the next year.
ReplyDeleteWhile mentioning the benefits of employee retention, provide data or statistics to demonstrate how effective retention strategies can directly impact cost reduction, productivity, revenue increase, and other measurable outcomes.
ReplyDelete