Human Resource Planning
Human Resource Planning
This domain tests how an organisation matches future people needs to future supply. Exam questions often ask for the process, forecasting techniques and a gap calculation.
Core process
- Link HRP to strategy and output targets.
- Forecast demand using judgement, ratio analysis, work-study, Delphi or regression.
- Forecast supply from skills inventories, succession plans, attrition and external labour market data.
- Compare demand and supply to identify shortage or surplus; then plan recruitment, training, redeployment, retention or redundancy.
- Monitor and revise the plan.
Worked example
A firm has 25 sales staff, each handling 50 clients, so capacity is 1,250 clients. The target is 1,500 clients. Demand requires 1,500 ÷ 50 = 30 staff. The current gap is 5. If annual attrition is 10% of 25, expected losses are 2.5, rounded to 3. The recruitment plan should therefore cover 5 growth posts plus 3 replacements, or 8 hires, unless training raises productivity. This shows why HRP is more than a headcount.
Traps
Do not treat HRP as recruitment only. Do not confuse demand forecast with supply forecast. Do not ignore attrition, transfers or productivity change. A gap without an action plan is not planning.