Strategic HR planning links HR management directly to the strategic plan of your organization. Show
Most mid- to large-sized organizations have a strategic plan that guides them in successfully meeting their missions. Organizations routinely complete financial plans to ensure they achieve organizational goals. While workforce plans are not as common, they are just as important. Even a small organization can develop a strategic plan to guide decisions about the future. Based on its overall strategic plan, your organization can develop a strategic HR plan that will allow you to make HR management decisions now to support the future direction of the organization. Strategic HR planning is also important from a budgetary point of view so that you can factor costs such as recruitment and training into your organization's operating budget.
Part of strategic planning is defining your organization's mission, vision and values. Andrew Fleck Child Care Services has provided their Mission, Vision and Values as an example: Mission – We support children and their families through high quality, inclusive services that meet their diverse developmental, early learning and child care needs Vision – Working with the Ottawa community to build accessible multi-service support, early learning opportunities and child care for every child Values –
Your strategic HR plan should be aligned with your Mission, Vision and Values. In this section:
Introduction to strategic HR planningThe overall purpose of strategic HR planning is to:
Strategic HR planning predicts the future HR needs of the organization after analyzing the organization's current human resources, the external labour market and the future HR environment that the organization will be operating in. The analysis of HR management issues external to the organization and developing scenarios about the future are what distinguishes strategic planning from operational planning. The basic questions to be answered for strategic planning are:
The strategic HR management planning process
1. Assessing the current HR capacityBased on the organization's strategic plan, the first step in the strategic HR planning process is to assess the current HR capacity of the organization. The knowledge, skills and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee. The skills inventory should go beyond the skills needed for the particular position. List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included. An employee's performance assessment form can be reviewed to determine if the person is ready and willing to take on more responsibility and to look at the employee's current development plans. 2. Forecasting HR requirementsThe next step is to forecast HR needs for the future based on the strategic goals of the organization. Realistic forecasting of human resources involves estimating both demand and supply. Questions to be answered include:
When forecasting demands for HR, you must also assess the challenges that you will have in meeting your staffing need based on the external environment.
3. Gap analysisThe next step is to determine the gap between where your organization wants to be in the future and where you are now. The gap analysis includes identifying the number of staff and the skills and abilities required in the future in comparison to the current situation. You should also look at all your organization's HR management practices to identify those that could be improved or new practices needed to support the organization's capacity to move forward. Questions to be answered include:
4. Developing HR strategies to support organizational strategies
1. Training and development strategiesThese strategies include:
Training and development needs can be met in a variety of ways. One approach is for the employer to pay for employees to upgrade their skills. This may involve sending the employee to take courses or certificates, or it may be accomplished through on-the-job training. Many training and development needs can be met through cost effective techniques. 2. Recruitment strategiesThese strategies include:
Each time you recruit you should be looking at the requirements from a strategic perspective. For example, if your organization has several supervisors that are nearing retirement age, your recruitment strategy should include recruiting staff with the ability to assume a supervisory role in the near future. 3. Outsourcing strategiesThese strategies include:
Many organizations look outside their own staff pool and contract for certain skills. This is particularly helpful for accomplishing specific, specialized tasks that don't require ongoing full-time work. Some organizations outsource HR activities, project work or bookkeeping. For example, payroll may be done by an external organization rather than a staff person, a short-term project may be done using a consultant, or specific expertise such as legal advice may be purchased from an outside source. When deciding to outsource to an individual, ensure you are not mistakenly calling an employee a consultant. This is illegal and can have serious financial implications for your organization. To understand the differences between employees and self-employed people, visit the Canada Revenue Agency's website. Each outsourcing decision has implications for meeting the organization's goals and should therefore be carefully assessed. 4. Collaboration strategiesThe strategic HR planning process may lead to indirect strategies that go beyond your organization. By collaborating with other organizations you may have better success at dealing with a shortage of certain skills. Examples of collaboration include:
5. Restructuring strategiesIf your assessment indicates that there is an oversupply of skills, there are a variety of options open to assist in the adjustment. These strategies include:
Termination of workers gives immediate results. Generally, there will be costs associated with this approach depending on your employment agreements. Notice periods are guaranteed in all provinces. Be sure to review the Employment and Labour Standards in your province or territory to ensure that you are compliant with the legislation. Termination packages are governed by case law as well as by employment standards legislation (which only states the bare minimum to be paid). Consult with a lawyer to determine the best approach to termination packages.
It is important to consider current labour market trends (e.g., the looming skills shortage as baby boomers begin to retire) because there may be longer-term consequences if you let staff go. Sometimes existing workers may be willing to voluntarily reduce their hours, especially if the situation is temporary. Job sharing may be another option. The key to success is to ensure that employees are satisfied with the arrangement, that they confirm agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a prerequisite for success. Your analysis may tell you that your organization may have more resources in some areas than others. This calls for a redeployment of workers to the area of shortage. The training needs of the transferred workers need to be taken into account. Documenting the strategic HR planOnce the strategies for HR in your organization have been developed they should be documented in an HR plan. This is a brief document that states the key assumptions and the resulting strategies along with who has responsibility for the strategies and the timelines for implementation. Implementing the strategic HR planOnce the HR strategic plan is complete the next step is to implement it. Agreement with the planEnsure that the board chair, executive director and senior managers agree with the strategic HR plan. It may seem like a redundant step if everyone has been involved all the way along, but it's always good to get final confirmation. CommunicationThe strategic HR plan needs to be communicated throughout the organization. Your communication should include:
It is impossible to communicate too much (but all too easy to communicate too little), especially when changes involve people. However, the amount of detail should vary depending upon the audience. Legislation and mandateEnsure that the actions you are considering are compliant with existing laws, regulations and the constitution and bylaws of your organization. To review laws relating to employment, visit the HR Toolkit section on Employment Legislation and Standards. Organizational needsWhether you are increasing or reducing the number of employees, there are implications for space and equipment, as well as existing resources such as payroll and benefit plans. EvaluationHR plans need to be updated on a regular basis. You will need to establish the information necessary to evaluate the success of the new plan. Benchmarks need to be selected and measured over time to determine if the plan is successful in achieving the desired objectives. What are the components of strategic HR planning?The strategic HR management planning process has four steps:
Assessing the current HR capacity. Forecasting HR requirements. Gap analysis. Developing HR strategies to support organizational strategies.
What is the process of strategic human resource management?7 steps to Strategic Human Resource Management. Identify company objectives. ... . Evaluate existing HR capabilities. ... . Analyze existing HR capabilities. ... . Forecast company's HR requirements. ... . Determine tools for employees for effective performance. ... . Implement the Human Resource Management Strategy. ... . Evaluation and Correction.. How are strategic plans associated with the strategic HR management process?Strategic planning is the process of figuring out why the organization is in business and what long-term goals it wants to achieve with its available resources. Human talent is one of those resources, so there's a direct link between strategic and human resources planning – neither one can exist without the other.
What are the 5 steps of strategic HR management?Your Strategic HR Plan will be built upon the foundation of this strategic business plan.. Step 1: Identify Future HR Needs. ... . Step 2: Consider Present HR Capabilities. ... . Step 3: Identify Gaps Between Future Needs & Present Capability. ... . Step 4: Formulate Gap Strategies. ... . Step 5: Share & Monitor The Plan.. |