What Are The Importance Of Human Resource Planning In HRM [PDF]

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Importance Of Human Resource Planning

In modern days business models and organisations need to be more strategic in managing their resources and especially their human capital. Human Resource Planning is a vital process that helps to optimise workforce plans for the future of the organisation.

For the sake of clarification some of the most important advantages, benefits or importance of Human Resource Planning are discussed below; they are,

Maximise Human Capital

Human Resource Planning identifies the current and future workforce needs of an organisation by analysing workforce data and forecasting future trends. It helps organisations to maximise their human capital by ensuring the right man in the right job with the right position.

Improves Recruitment & Retention

HRP also helps business organisations to improve the recruitment and retention efforts of the employee by anticipating future workforce needs and identifying skill gaps. It provides career development and training opportunities to its employees to reduce turnover cost and enhance organisational culture and employee engagement.

Reduce Labour Costs

HRP also helps the business organisation to reduce their labour costs by analysing labour market trends and forecasting future workforce needs. It optimises their workforce deployment and scheduling for business to minimise labour inefficiencies and optimise productivity. This approach not only reduces the labour cost but also improves the overall business performance and profitability.

Manage Risks

Human Resource Planning also helps businesses to manage Risks related to workforce management. By analysing workforce data and identifying skill gaps business can develop training and development programmes to mitigate talent shortages and succession risks.

To manage employee turnover

The regular employee turnover affects the working of the organisation and goodwill of the firm. The effective human resource planning enables an organisation to avoid employee turnover and adjust workforce in different situations.

Creating highly talented personnel

Human Resource Planning also helps in increasing the efficiency of employees working in an organisation. It also provides them better training for the development of skill in order to produce highly talented personnel.

Increasing investment In Human Resource

Another Importance of HR Planning is to increase investment in human resources in order to increase their skill, experience, knowledge and ability. Nowadays human resource is considered as the most valuable asset for an organisation who is responsible for both short term and long term performance.

Succession Planning

Human Resource Planning is always meant to prepare people for future challenges. It enables its employees to take the responsibilities and position of their seniors when required. It is only possible through providing proper and effective training to employees continuously.

Future Personnel Needs

Human Resource Planning also helps to estimate future Personnel requirements accurately. It enables an organisation to avoid the situation of surplus or deficiency in staff strengths. It also ensures the preparation of good succession planning.

To manage global & technological changes

The technology is changing rapidly within a short period, which forces employees to change their skills and working style. Therefore effective HR Planning is very much essential for the healthy future of the organisation. It enables an organisation to adjust with such changes for its smooth running.

To Identify shortage and surplus of Workforce

Another importance of HR Planning is to identify the areas of shortage and surplus in the workforce. It indirectly helps to employ or deploy employees in the organisation as per demand of the situation.

Foundation for personnel function

Human Resource Planning also provides various information to the organisation such information is very much essential for designing and implementing personnel functions like recruitment, selection, training etc effectively.

It also encourages its employees for better performance through the provision of transfer and promotion of its employees.

Other Importance

Human Resource Planning has its own importance rather than above. It is also helpful for organisation in different ground such as:

  • Judging the effectiveness of manpower policies and programmes.
  • Developing ourness on effective utilisation of human resources.
  • Facilitating in selection and training of employees.
  • Encouraging to review and modify human resources.

Tips For Effective Human Resource Planning

To achieve the business goal organisations adopt a structured and systematic approach of Human Resource Planning.

Here are some of the important tips for the effective Human Resource Planning are pointed below:

  1. Identify Key Business Drivers like Customer Needs.

2. Competitive Pressures and growth objective.

3. Analyse Workforce data.

4. Forecast future workforce needs.Develop contingency plans.

5. Monitor and adjust the workforce trends and plans.

Common Misconceptions About Human Resource Planning (HRP)

Some of the common misconceptions about Human Resource Planning are highlighted below:

Human Resource Planning is only for a large type of organisation.

Human Resource Planning is too time consuming.

HRP is too predictive.

HRP is separate from business strategy.


In modern days business model Human Resource Planning is very much essential for business enterprises to achieve their goal and objectives.

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