Human Resource Planning – Definition

Cite this article as:"Human Resource Planning – Definition," in The Business Professor, updated September 17, 2019, last accessed October 19, 2020,


Human Resource Planning (HRP) Definition

Human Resource Planning (HRP) refers to a strategic and systematic planning of a company’s employee assets to meet the demands of the company in the future and present time. HRP is a continuous process of identifying what the human resource needs of a company are and how to get the best employees that fit those needs. It entails a systematic planning of the use of human capital to meet both current and future needs. There are four key processes in HRP, they are;

  • Analysis of present labor supply in a company.
  • Prediction of labor demand
  • Equating forecasted labor demand with labor supply.
  • Helping an organization achieve its goals.

A Little More on What is Human Resource Planning (HRP)

Human resource planning is k key for every organization that seeks to achieve its goals. Aside that HRP helps a company identify and analyse its future and current human resources needs, it aids adequate planning and future projection of a company’s workforce. HRP also ensures that best employees are recruited for available jobs in a company. Excesses and shortages in the supply of skilled employees is avoided.

Essentially, HRP allows an organization evaluate its needs in terms of employees and plan properly to meet the needs. The assessment of the current capacity of the human resources of a company is crucial to HRP.

Human resource planning is a continuous process because frequent changes occur in employees set-up, such as some employees being promoted, some changing jobs, some on sick leave and others. Despite the frequent changes in employees set-up or pool, HRP ensures that there is no shortage of surplus of employees, the best fit between workers and jobs are also achieved.

There are certain processes that help HR managers achieve their objectives through HRP, they include;

  • The discovery of skilled workers.
  • Selection, training and compensation for the best fit for the available jobs.
  • Resolving conflicts and dealing with absenteeism.
  • Promotion, remuneration, lay offs and sanction of employees.

Human resource planning entails four broad steps, they are:

  1. Identification of the current human resource supply in a company. This involves knowing the human capital available in a company and different roles and performance levels of employees.
  2. Forecasting the future of a company’s workforce. Future needs of a company pertaining to its workforce are outlined, these include promotion, remuneration, lay offs, retirements and transfers of employees.
  3. Predicting the employment demand. This involves knowing what the future needs of a company would be and preparing to meet such needs or demands.
  4. Integration of plans and strategies with the overall plan of the company. This is the phase where the HR seek the financial capacity to execute all its plans and strategies. Collaboration with other departments in a company is also required.


  • Human resource planning helps a company avoid the shortage of surplus of employee pool. Rather, a steady phase of qualified employees is retained.
  • Through HRP, a company is able to recruit the best fit for the available jobs. Skilled workers with unique experience are also attracted into the company.
  • A good HRP strategy enhance growth, productivity and profitability in a company.
  • HRP process involves four broad steps which are identification of current human resource supply, analysis of future workforce, forecasting future demands and balancing with supply and integration of plans.

References for “Human Resource Planning – HRP › Human Resource (HR)…/25935

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