5 Ways Strategic Human Resource Planning Can Help Your Business Grow

March 18, 2019

Most employers would agree that a company’s greatest resource is its employees. More than any raw material, your employees are vital to ensuring that your daily operations are completed with excellence. Because of this, haphazard human resources planning can be seriously detrimental to your company’s most important assets.

Human resources planning is the process of projecting the upcoming personnel needs of your company. It involves not only projecting new hires, but developing and retaining your current talent. Human resources planning is one of the greatest HR solutions your company can implement, so don’t let it fall to the wayside. Here are five ways that strategic human resource planning can help your business grow.

1. Identifying Trouble-Spots

Making a concerted effort to improve your human resources planning requires that you put the current state of your business under the microscope.

Generally, strategic human resources plans involve taking inventory of your current HR capacity. This critical observation presents an opportunity for your human resources professionals to realistically analyze their current performance and pinpoint areas that need more development.

An HR department without strategic methods may lack the foresight to approach trouble spots in their early stages. Without this foresight, these trouble spots can become full-blown issues before you know it.

2. Identifying Strengths

While examining HR capacity can reveal the inefficient practices of your HR department, it can also illuminate the current strategies that are helping your small business thrive.

Eliminating problems is vital for helping a business stay afloat and avoid disaster, but investing in effective strategies will take a business from good to great. For example, perhaps some of your HR professionals have a special certification that has them with an extra advantage on the job. Awareness of this may lead you to offer the same training to the rest of your HR staff.

Adopting a strategic approach to human resources can help your business identify what works well and where to invest more time and resources to promote growth.

3. Clarifying Expectations

The second common step in strategic human resources planning is forecasting HR requirements. Depending the type of growth you seek, it’s important to assess your aspirations for growth in light of your staff’s current capabilities.

What sort of training will your employees need? Will more staff need to be hired? Will scheduling requirements need to be adjusted?

Forecasting requirements for your HR staff clarifies your expectations for their performance and encourages them to help your business move toward growth.  

4. Direct Implementation

The final two common steps of strategic human resources planning are gap analysis and development of HR strategies.

These last steps require that you critically analyze where your company is situated in comparison to where your would like to be. Observing this gap necessitates the development of strategies to actively work toward growing your business via strategic human resources planning.  

Far too often, business owners focus on strategic planning of direct output of goods or services, while letting HR operations run unobserved. Strategic human resources planning encourages employers and HR teams to take an active approach to HR strategies and to strive for growth.

5. Observable Results

Tracking the efficacy of your HR department can be tricky. There is no direct profit or product output and it can seem as if there is no quantifiable way to measure the department’s success. However, the implementation of strategic human resources planning develops a set of measurable and observable goals that you can track directly as they are implemented.

Because people are not machines, human resources development may be a process of trial and error. Nevertheless, some strategic human resources planning provides a more objective method of measuring whether or not your attempts are effective. In doing so, it can set your small business on a trajectory for growth.
If your human resources practices have been lacking the efficacy you seek, a strategic approach may be just what you need. For help in taking your next steps toward strategic human resources planning, contact the HR experts at Commonwealth Payroll & HR. Call us today at (978) 599-1500.

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