2 Planning Process

Human resources planning is an essential function that, if done properly, can result in the increased effectiveness, efficiency, and profitability of your business. The planning process aims to look ahead and forecast future HR requirements and determine how the different HR functions will be employed to ensure sufficient human resources are available.

The first and most important step in the planning process is understanding the needs of your business. To do this, you must identify your business’s values, mission, goals, and objectives and aim to align your plans with these. The mission and values are the foundation of what you are trying to achieve, and they provide direction for decision making and problem solving. The goals and objectives should have both a short- and long-term perspective. Short-term goals and objectives are usually established annually and support your business to achieve the long-term goals.

Whether you manage a small breakfast café or operate a 200-seat high-volume restaurant, you need the right employees with the right combination of attitude, skills, knowledge, and abilities for your business. The right employees will complement your existing business culture and positively impact your bottom line. This is another example of how the needs of your business provide direction for decision making, as the business culture is a product of the business’s values and mission.

The consequences of poor hiring practices and planning are profound. Employees who are not the right fit for your business are unlikely to stay long and can negatively impact your business in the long-term. Staff turnover is expensive and results in lost customer service, increased training time, low productivity, poor team morale, and the expenditure of valuable time and resources spent searching and interviewing to fill vacant positions. Making poor hiring decisions can cost you the equivalent of 6 to 18 months of a new employee’s annual salary.

Whether vacancies arise from the departure of staff or newly created positions that are required to meet business demands, determining the need for new employees is just the beginning of the process. The secret to successful hiring is being continually prepared for the hiring process.

Both short-term and long-term planning are essential for hiring. Asking yourself the following six questions before hiring can help with the process. Your answers will increase your success rate, save you valuable time and resources, and provide you with employees who can quickly fit well into your company.

1. How many new employees do I need?
2. How much should I budget for a new employee? What dollar amount do you need to allow for salary, training, and benefits?
3. What type of employee do I need? Do you require full-time, part-time, long-term, or seasonal employees? What skills do they need? What level/length of previous experience is important for the employees to have? Should they have supervisory experience?
4. What do I need my new employee to do? What specific duties will employees be responsible for? Are there any responsibilities outside the role?
5. When do I need the employee to start?
6. Where can I find my ideal candidate? What resources to find candidates have you used or do you know of? Who can you ask to learn about new resources?