These are importance points to address in terms of planning the management of your business. An employee who serves in a position may have the most intimate knowledge of the position and can have valuable feedback for job analysis, while a manager brings an entirely different perspective about how the job integrates with others in his sphere of influence. The different parties work to determine the current state of a position, and to determine if the position should change over time, taking on different responsibilities or being combined with similar positions.
Forecasting your staffing needs
As forces in the economy or culture change, the supply of labour changes as well. There are several ways to forecast your business needs, in order to predict how many employees you need to run your business and which roles these employees need to fill. The HR planning model seeks to manage these changes pro-actively. Some factors to consider include the situation of the economy, internal business finances, the demand for your products or services, and the growth expectations for your business. The model helps human resources managers predict whether there will be a shortage or surplus of workers to fill the various positions within the company. Predicting these changes may be done by different departments giving feedback about their own predictions for the future, by top-level managers predicting labour market changes or by computer models making predictions. Take a look at your existing staff and see which current employees are likely to transition into new positions and estimate the turnover rate of employees for your business.
Evaluating Supply
Not only does the HR planning model take into account changes in the labour supply outside of a company but it also analyses the labour supply available inside the company. Evaluating the supply of employees includes a two-prong process: evaluating internal staff (which will occur as you are forecasting your staffing needs) as well as external staff. Externally, you need to evaluate the demographics of the workforce that is available. This can include factors such as education, mobility, the unemployment rate and state and federal government laws and regulations that can affect your industry, your business, existing and potential employees. Evaluating all of these factors helps you determine if you have access to the number and types of employees you need to fill your staffing forecasts. Ultimately, this is done by managers who take inventory of current employees' skills, education, and abilities and how they pertain to the company's operations. By using human resources files on employees along with the inventories taken by the employees' managers to determine if some employees could be promoted to higher positions in the company or moved to other positions or departments.
Balancing Supply and Demand
The final element of the human resources planning model is to determine how you are going to balance the demand you have for employees with the supply of employees available. If you have a shortage of employees, this will determine what type of recruiting efforts your business participates in order to fill the needs of the company. It also requires you to balance your full-time and part-time needs. If you have a surplus of employees, this requires you to consider more factors such as potentially laying off employees to reduce costs, retirement packages, and dealing with situations where employees may need to be demoted or moved into a lateral position (rather than receiving a promotion).
Performing job analysis as part of HR planning can provide many other benefits to a company. Having an accurate analysis of a position allows human resources workers to accurately describe the qualifications needed by applicants for a certain position, saving the company from interviewing and even hiring people who are not able to fulfil the position's duties. Analysing different positions in the company also helps management decide if certain positions should receive greater pay or other benefits, since management has a more accurate picture of what certain positions demand of workers.
Small businesses may engage in a number of planning methods to help deal with market challenges and changes, which could include using the HR planning model to help streamline management. The HR planning model deals specifically with people working in a company, a resource some managers overlook to hastily when the company's future in under consideration.