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8+ SAMPLE HR Department Plan in PDF

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• Hiring new personnel for the process.
• Automating operations to reduce employee count.
• Enhancing the knowledge and skill levels of existing employees.

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HR Business Plan Template: Everything You Need to Know

With an HR business plan template, you can help your company recruit new employees, retain existing employees, and guide the development of the workforce. 4 min read updated on February 01, 2023

With an HR business plan template, you can help your company recruit new employees, retain existing employees, and guide the development of the workforce so that you collectively meet your business objectives, regardless of any changes in the industry or economy.

When creating your HR business plan, you need to perform a needs analysis of your workplace to tailor the plan to your company's requirements. You'll also need to learn about the industry standards for your field to make sure you're competitive.

Without such a plan in place, your workers will feel unprepared and won't know how to work towards your company's overall goals.

Steps for Developing a Human Resources Department Business Plan

There are several steps to creating an HR business plan. They include:

• Clarify the requirements . While you might be tempted to create a detailed plan that encompasses the entire company's next 10 years, hold off. Always talk with your boss to see how much detail he or she would like in the plan. This will save you time and help streamline the process. However, there's no harm in creating your own personalized strategic plan for your specific department.
• Read through the HR job descriptions . The HR department typically has employees such as HR assistants, HR generalists, and an HR director . Read through the job descriptions for each worker in the department and see what kind of duties are missing. Brainstorm additional functions that each job role could provide to the company.
• Curate your list . Take the different functions you've brainstormed and compare them to what each member of the HR department is already doing. Are there functions you could add or subtract from each employee for more productivity? You don't have to go into detail here, but just think about how you could improve each role.
• Schedule a meeting with the executives . Before you make any changes, you'll obviously need to get input and approval from the company's executives. They may have more feedback on how the HR department can provide additional services and support the company's overall goals and mission.
• Create a feedback form . Come up with a list of questions to ask leadership about HR's role in the company and provide it to them in advance of the meeting so they have time to think it over and talk with their staff. You may even want to provide a rating and ranking format for the questions, as this will make their responses easy to understand and implement. Overall, this is a key process to understanding what management and employees want and need from the HR department.
• Look at external resources . While the internal information you're collecting is the most important, it also doesn't hurt to take a look at data from professional organizations and websites, such as the Society for Human Resource Management , The Balance , or HR Magazine . You can also ask colleagues from other local organizations for tips on creating your business plan.
• Use this information to make a plan . With your ideas, feedback from executives, and tips from external resources, you should have a clear idea of what your plan should look like. The things that are missing from the HR department should now be clear, and this should guide you on what to focus on to improve HR's contribution to the company.
• Identify goals for this year and next . While your plan can have long-term goals, keep the majority of them a little bit shorter in scope to see how things work out. This gives you the chance to reorganize and restructure if things aren't going right. Consider creating a list of accomplishments you can reach for the end of this year and into the next.

A Real Life Example

If you're seeking more guidance on how to create a successful HR business plan, look to Starbucks as an example.

As the world's largest coffee chain, Starbucks had $21.3 billion in sales in 2016.

Despite these massive numbers, Starbucks maintains the same approach to their human resources department. All of the HR planning is guided by the company's organizational strategy and brand.

Their strategy is to use specific interview techniques when hiring new employees. This lets them identify potential leaders and place them in a "New Partner Orientation and Immersion" training program. With this system, Starbucks has achieved the lowest employee turnover rate in the quick-service restaurant industry.

Starbucks also offers numerous employee perks and dedicates a lot of time to employee training through an online portal that teaches employees essential job skills.

If you need help with your HR business plan template, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Management and Human Resources Business Plans

The management portion of your business plan, the hr portion of your business plan, frequently asked questions (faqs).

As a startup, it’s never easy to come up with a business plan, let alone the management and human resources sections of a business plan. Despite that, it’s important that you start your business plan for human resources as soon as possible. Doing so gives your management goals a plan that will guide you and keep your business on track as it grows. 

The key components of your human resources business plan should include your organizational structure, the philosophy and needs of your HR department, the number of employees you want to hire, how you plan to manage them, and all the estimated costs related with personnel.

You’ll want to start your HR business plan by outlining your own managerial experience and skills as well as those of your team. Highlight the roles of each member of your team, and any particular areas of strength or deficiency in your personnel lineup. For example, your HR team may be strong in compliance and conflict resolution but weak in hiring. 

Don't worry if you don’t have a complete team in place when you write your HR business plan. Simply use this section to outline the organizational structure along with job descriptions, how you plan to recruit key team members, and what their responsibilities will be.

This section should look like a pyramid with you at the top and will likely have lateral positions. Be as specific as possible when defining an employee's responsibilities because this is what will drive your business.

Do You Need an HR Manager?

If you’re a solo practitioner, you may not think of including an HR manager in your management business plan. However, if you expect to hire non-managerial employees (such as salespeople or clerical workers), you should consider recruiting a human resources manager.

If hiring a human resources manager can’t be done, consider a human resources consultant. Human resource management requires an immense amount of time and paperwork, and an experienced HR consultant will be able to quickly get your payroll and benefits program up and running, affording you more time to concentrate on growing the business. Human resource responsibilities should include:

• Handling FICA and unemployment taxes and paperwork
• Ensuring compliance with the Family and Medical Leave Act
• Staying on top of IRS filings

There are plenty of companies that offer HR management platforms tailored to each business's needs. Research these companies and be sure to include their estimated cost in your HR business plan.

When you develop the HR portion of your business plan, begin by including a brief overview of your HR strategy. Investors may be curious about how your payroll will be handled and the associated costs of administering it, as well as the type of corporate culture you plan to create. Specific items to highlight in the HR section include:

• Payscale: Show the salaries for managers and non-managers based on the market for those jobs.
• Vacation time: Describe your vacation-time policy. How much time do employees get? How quickly does it accrue? Vacation time is not required by law, but most firms offer vacation time to stay competitive and keep employees refreshed. 
• Insurance: Health insurance is a common staple benefit, although skyrocketing prices have forced many firms to cut back on this benefit. If you can’t afford a health plan, look into subsidizing one with employees paying the rest. Alternatively, inquire if a professional insurance representative can help you get a bulk rate.
• Additional benefits: Other things to consider include life insurance, a 401(k) and matching funds, bereavement leave, religious and floating holidays, and a bonus structure, if applicable.

In addition to the key elements above, it helps to have a framework from which to build your HR business plan. Here’s a basic outline that can help you get started: 

• Figure out what your human resources department would need. 
• Determine a strategy for recruiting talent.
• Formulate your hiring process. 
• Develop a training program for new employees. 
• Determine how much you want to pay your team (this is a good spot for payscale info)
• Create performance standards

It may be overwhelming to contemplate these benefits and their costs in the early stages of setting up your business, but in a competitive labor market, your firm needs to offer enough to entice qualified people and, more importantly, to keep them happy.

Consider revisiting your management and HR business plans every couple of years to see if you need to create action steps to refine your processes.

What should be in an HR business plan?

An HR business plan should include a mix of the steps you plan to take to launch an effective HR department, as well as specifics about how you plan to handle time off, insurance, and other benefits you plan to offer.

How do I write a human resources plan?

It helps to start with a simple framework. Try to break the plan down into sections: HR needs, recruitment, hiring, training, pay, and performance reviews. From there, incorporate other aspects of HR, like benefits and promotions.

U.S. Chamber of Commerce. " Does Your Small Business Need an HR Department? "

 University of Minnesota. “ Human Resources Management: 2.2 Writing the HRM Plan .”

Mecklenburg County, North Carolina. “ FY 2020-2022 Strategic Business Plan: Human Resources .”

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Blog Human Resources 6 Steps to Create a Strategic HR Plan [With Templates]

6 Steps to Create a Strategic HR Plan [With Templates]

Written by: Jessie Strongitharm Aug 25, 2022

The backbone of any successful business is the people and processes behind it — that’s why creating a human resources (HR) plan is key. This strategic document drives your business forward by evaluating where your workforce is at, and comparing it to future needs. 

Without an HR plan, organizations can suffer from issues that would have otherwise been avoided. From productivity pitfalls to costly employee turnover, there’s no shortage of risks you can sidestep if you do human resource planning in advance. 

Not sure where to start? No worries. I’ve outlined six steps you can take to create an effective HR plan that ensures your organization is well-staffed and well-served. You’ll also find a variety of  HR templates  that you can customize in just a few clicks — no design expertise required. 

Click to jump ahead:

What is human resource planning?

• Assess employees’ current skill levels
• Forecast your labor needs based on available information
• Revisit your organizational design
• Outline how you will manage, motivate and retain talent 
• Align your workforce planning with your budget 
• Establish KPIs for your human resource planning objectives

Human resource planning is the process of considering the current and future “people needs” of an organization.

This involves evaluating an organization’s workforce structure and protocols to ensure operational goals are met, productivity stays high and future demands for labor and talent can be fulfilled. 

The result of this process is the creation of an HR plan, which typically takes the form of a written document sometimes autogenerated using HR software . These documents tend to follow a similar structure to most  strategic business plans  and are created on an annual basis, by HR managers or company leaders.

Check out the template below for an example. 

This eye-catching, one-page  HR Strategic Plan Template  offers a concise summary of your human resource planning efforts, so you can easily share info with colleagues. 

Just swap out the text and visual assets for those of your choosing in  Venngage’s editor , and you’re off to the races. 

6 steps to create a strategic HR plan

Ready to create a strategic plan for the human resources that power your business? Here are six steps to help you succeed at the human resource planning process.

1. Assess current employees’ skill levels

The first step to creating a future-forward HR plan is to assess employees’ current skill sets, and compare them to your operational needs moving forward. This will help you identify gaps and inform any hiring of new employees.

Employees’ skill levels can be assessed by reviewing their work history, hard and soft skills and professional growth over time. 

Using a matrix is a great way to understand where the skill gaps in your current workforce exist. Below is an example that describes the skills needed for different marketing roles. 

Don’t need it for marketing specifically? No worries — you can fully customize this template by swapping in your own text to examine any human resource gaps. 

Another way to assess skills is by giving employees a questionnaire they can fill out. This  Employee Competency Assessment Template  does just that.

Based on the information collected, you’ll get a sense of what positions best suit each individual, and whether any upskilling or hiring is required. 

2. Forecast your labor needs based on available information

Next in your strategic strategic HR management plan, you’ll want to consider the future. This involves accounting for any upcoming changes to your workforce, so operations can continue without error.

When forecasting labor needs, the following should be considered: 

• Planned promotions
• Upcoming retirements 
• Layoffs 
• Personnel transfers 
• Extended leaves of absence (i.e. maternity/paternity leave) 

Beyond those, it’s a good idea to assess the impact of external conditions on your labor needs during your human resource planning. For example, new technological developments may decrease the amount of employees you require to operate your business. 

3. Revisit your organizational design

Organizational design is the process of structuring the way a business operates so it can best achieve its goals. This is hugely important when it comes to your human resource planning process! 

With a clear understanding of your organization’s strategic objectives in mind, reviewing your organizational design allows you to understand the staffing requirements you’ll need to succeed at them. This means taking into account your  organizational structure  and chains of command, as well as how work gets done and the way information flows.

 From there, you’ll be able to see which departments need more team members so it can accomplish the organization’s objectives. 

An easy way to get started is by using an organizational flow chart. 

With its color coding and layout, even a new manager can quickly look at this chart to identify the people responsible for leading teams and making decisions. 

And if there are any changes, it’s easy to to reflect them in the chart itself. All you need to do is customize the text and visual assets in  Venngage’s Chart Maker  as desired. 

Not quite your style? There’s plenty of other  organizational chart templates  to choose from. 

Here’s an organizational chart that’s perfect for small businesses that have limited employees. One quick look, and you’re good to go. 

The bottom line is, no matter how big or small your business may be, you should always revisit your organizational design to optimize your workforce management and business operations. 

Related:  Types of Organizational Structure [+ Visualization Tips]

4. Outline how you will manage, motivate and retain talent 

In this day and age, it’s a known fact that companies must provide more than just a paycheque to attract and retain talent, and encourage growth. 

It’s true —  studies have shown  employees are more engaged in their work when they feel it is meaningful, fulfilling and slightly challenging. So your human resource plan should consider how to inspire such feelings, and what actions you can take to motivate employees to stay. (Hint: a strong HR training and development program is key.)  

The  talent management infographic template  below is a great way to begin. 

Using this  process chart , you can detail the steps you’ll take to retain the talent you have. Reference it as needed in your human resource planning.

 Another great way to keep staff motivated and geared towards their professional growth is by coming up with  ideas for employee development . Facilitating a company culture that champions continuous learning guarantees your team will feel supported and challenged in all the right ways.

The two employee development plan templates below will help you do just that. 

Though both templates are geared towards healthcare organizations, it’s easy to customize their content in Venngage to promote the continuous learning and development of employees in any industry.

 As a result, your employees will be able to reach their full potential, while simultaneously supporting the long-term goals of your organization. 

Related:  6 Employee Development Ideas for Efficient Training

5. Align your workforce planning with your budget 

 Let’s face it, human resources ain’t cheap.

 Meaning, if you struggle at organizing and monitoring your HR budget, you’re bound to overspend on your initiatives —and no financially savvy business wants that. 

That’s why I recommend including financial information in your HR planning process, so you can reference your budget and expenses as needed. This includes not only hiring and training costs but also the complexities of managing a global payroll for diverse teams.

Ensuring this allows you to stay within range as you work towards achieving your strategic goals for human capital . Plus, you don’t need to use one that contains walls of text and wack-loads numbers. Check out the clean and cheery option below — it’s as easy to fill out as it is to understand. 

And if you’re looking to compare a forecasted budget to previous annual spending when strategizing your HR budget, the  Budget Comparison Infographic Template  below will help. 

The bar graph is a great  data visualization  of annual expenses, organized by category. Just add (or import) any values to Venngage’s editor, swap out the text, and you’re ready to compare with ease. 

Related:  10+ Expense Report Templates You Can Edit Easily

6. Establish KPIs for your human resource planning objectives

Measurable results are important when it comes to your HR planning processes, because they indicate whether your strategy is working or not. 

Keeping those metrics in mind, your company can make adjustments and improve upon any future plans — AKA strategize for future success in business. That’s why your human resource plan should include info re: the specific key performance indicators (KPI) you’ll be measuring. 

KPIs are established to help determine if HR strategies and plans are working. Much like those used for evaluating the performance of  marketing  or  sales plan , KPIs for human resources are measurable results that indicate an organization’s success at achieving predetermined goals.

These may take the form of headcounts, turnover rates, demographic information, time to hire and employee satisfaction scores. 

Here’s one employee satisfaction survey you can use to understand your workforce better. 

When you’re ready to organize those HR KPIs in a document, the  recruiting template  below is perfect for keeping tabs at a glance. 

Related:  10+ Customizable HR Report Templates & Examples

How do I make an HR plan? 

After you’ve collected the data you need, you’ll want to convey this info in an engaging, professional manner for easy referencing and sharing amongst colleagues. Given this, using Venngage is the best route to go. 

Here are the simple steps to help you bring an actionable HR plan to life: 

• Outline the information you would like to include in your strategic hr plan
• Pick the human resource planning templates that best suits your needs 
• Customize the templates’ text and visual assets so they speak to your organization 
• Apply your company’s brand guidelines with a few clicks using Venngage’s automated branding feature,  My Brand Kit
• Download and share as desired

Note: sharing is available free-of-charge. However, the option to download your creations and access features like  My Brand Kit and Team Collaboration  are available with a  Business plan . 

FAQ about HR plans

How long should an hr plan be .

There are no hard and fast rules when it comes to the length of an HR plan. That being said, if you’re going to share it with colleagues, you probably don’t want to create a 20+ page document. One to five pages should suffice. 

Try to be as concise as possible when relaying the facts, and use  data visualizations  wherever possible to save room.

Do I need an HR contingency plan?

In the same way creating an HR plan is a proactive move that helps your organization account for future needs, it’s a good idea to devise an HR contingency plan. This ensures there’s a back-up plan in place should your initiatives not go as expected. 

For example, if you’ve identified that you need five new hires to keep up with consumer demand, but the talent pool is lacking, a contingency plan could house suggestions for restructuring your workforce to mitigate this. 

In other words, it’s best-practice to hope for the best, but prepare for the worst. 

Is an HR plan different from an employee development plan?

Yes. While an HR plan is a strategic document describing how an organization addresses its personnel-related needs at a high-level, an  employee development plan  outlines the processes needed to help an individual achieve their professional goals.

 Even though the human resource planning process may involve outlining some employee development tactics, it is not unique to each employee as in the case of an employee development plan.

Make your HR planning processes effortless 

You don’t need a crystal ball to feel confident about your people moving forward. With a solid HR plan and strategy in place, you’ll prime your workforce — and all business endeavors — to succeed in even the most competitive of markets. 

Just remember this: human resources planning, and creating strategic business plans in general, doesn’t have to be exhausting. 

With Venngage’s huge selection of  professionally-designed templates  and easy-to-use editor, all it takes is a few minutes to produce a polished document perfect for all your needs.  Sign up for free today ! 

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The HR Strategic Plan to Take Your Business to the Next Level

Chances are the past couple of years have meant major changes for your business. That’s why it’s more important than ever to take stock of your business’s changing needs and rethink how HR can contribute to the big picture. The best way to plan for the future? An HR strategic plan.

An HR strategic plan and an Annual HR plan both help you identify your organization’s long-term goals and then chart a path for achieving them . By definition, a good plan will strategically drive intentional decision-making, up employee engagement, and avoid wasted resources.

In this post, we’ll walk you through how to write an HR strategic plan of your own and even give you an  HR strategic plan template to help you get started. Who knows what 2024 may bring— we’ll make sure your HR strategic plan for 2024 covers everything.

TABLE OF CONTENTS

Benefits of an HR Strategic Plan Template for HR Strategic Plan Considerations When Designing an HR Strategic Plan How to Implement an HR Strategic Plan Boost your HR strategy with software ✅

Benefits of an HR Strategic Plan

Your HR team is nothing to sneeze at! They’ve done a great job supporting employees at every turn, from recruitment to the exit interview. So, why do you need an HR strategic plan?

A plan can help evaluate current HR and company policies and procedures to see if goals are aligned. Understanding where you are will help you understand where you need to go. This information means you can set specific goals to help your business reach new heights. And a good HR plan will set milestones to let you know you’re on the way.

The HR strategic planning process helps build team cohesion. Your HR staff will be primed to act in accordance with company goals even in situations that aren’t clearly outlined in the plan. Strong HR is vital to the success of any business. A strategic plan keeps everything shipshape and makes sure employees are supported, engaged, and productive.

Template for HR Strategic Plan

You get it; a plan is important. Now, how do you put one together?

There are four steps in our HR strategic plan template which can guide you as you create your own plan. We’ll include some strategic plan examples to show the types of goals to include.

Determine Guiding Principles

The first step is to determine your organization’s values or guiding principles. Ask yourself what is important to the business and be sure to consider the company’s mission statement and employee handbook . That is to say, what values does the HR department work to incorporate or reinforce? During this first step, don’t think about the plan. Just concentrate on what makes your organization great, different, or successful.

Values might include diversity, teamwork, respect, communication, integrity, innovation, leadership, transparency, employee well-being , or work-life balance. If you feel so moved, you can expand on these values with a sentence or two. Make sure to include the whole HR team in this process! It’s sure to be an interesting conversation starter.

Decide on Focus Areas for your HR Strategy

Next, use the guiding principles to zero in on where your organization needs to step up its game. For example, if you listed “diversity” as a guiding principle in the first section, in the second section you may want to list “recruitment” as a key focus area.

It may be time for a little SWOT analysis . SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Think about where your company shines and where it is falling short of the values you listed in the previous section.

Forecast how HR Requirements may change in the year ahead and take a look into change management practices. If your business is growing, focus on building employee engagement to make sure no one feels lost in the fray. If your business is tightening its belt (2020-21 have been tough!), concentrate on talent management to help employees make the most of available resources.

Be creative here! This part of the plan is for thinking big. You can adjust always adjust your goals later.

Set Concrete, Strategic HR Goals

Here is where we get into the nitty-gritty. Guiding principles? Check. Focus areas? Check. You know where you need to go. How will you get there? In this part of the plan, you need to set key objectives. For example, if you listed “diversity” as a core value in section one and “recruitment” as a focus area in section two, now it is time to think about how you can your HR team can build a diverse workforce through recruitment.

How do you reach a more diverse pool of applicants? Perhaps HR can launch a social media campaign or adjust company branding to tap into new demographics. Maybe they can promote alternative work plans, such as fellowships, internships, or flexible work schedules . Some of these questions may take time and research to answer. It can be a part of the HR strategic plan to “create a plan.”

Remember that the goals in your HR strategic plan need to be measurable. How else will you know that you’ve succeeded? For inspiration, you can check out successful HR strategies examples. For example, in 2015, Twitter publicly established “credible and achievable” goals . They wanted to increase the number of women and underrepresented minorities in tech jobs and leadership goals by about 1%. Think about what numbers make sense for your organization.

Communicate your HR Strategic Plan

Considerations When Designing an HR Strategic Plan

Some questions may arise while developing the plan but we are here to help you through them.

Is a strategic plan the same as a business plan; if not, how does it differ?

Business plans are very important for uniting workers toward a common goal when an organization is just getting started. An HR department business plan provides a structure for ideas in order to initially define the business. A strategic plan, however, is used to provide focus, direction, and actionable steps in order to move the organization forward. Use strategic plans in order to unite the major objectives the organization hopes to achieve with the steps it actions it will take to achieve them.

What are some HR Strategic Plan Examples?

Each organization’s HR strategic plan should be specifically tailored to the goals and needs of that business. Although no two plans should look alike, there are some general standards to keep in mind.  Consider statistics like the HR management to HR employee ratio while developing strategic hiring goals. With that said, different industries will have different priorities when it comes to setting goals.

For example, the finance industry regularly undergoes massive transformations as new technologies (“fintech”) reshape the field. An HR team in this sector will need to be agile, ready to manage organizational development or re-train employees to meet the demands of an ever-changing industry.

For retail businesses that see a lot of turnover, HR teams may want to focus on the recruitment of quality candidates. Improving training for new employees and offering strong talent management will ensure the knowledgeable and hard-working employees stick around.

How to Implement an HR Strategic Plan

The key to implementing an HR Strategic plan is communication! Make sure your HR staff gets a say in determining values, priorities, and goals for the coming year. Then, regularly check in to see how things are going. Be sure to set milestones for the coming year so that you can track progress.

If you follow our HR strategic plan template, your HR department will be in an ideal position to support your business in 2024, whatever arises. Though your 2024 HR strategic plan won’t cover all the situations which might arise, it will help your department to better understand and internalize compy goals.

Develop your HR Strategic Plan with the help of real-time people analytics data.

Written by: Valerie Slaughter

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Hi, This is Harsha I am working in healthcare as an HR, wanted some inputs of the employee engagement which is unique and doable for Healthcare staff.

Hi Harsha, I hope some of the rest of our posts on employee engagement can help- https://factorialhr.com/blog/nurturing-employee-experience/

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Develop a Successful Human Resources Department Business Plan

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Susan Heathfield is an HR and management consultant with an MS degree. She has decades of experience writing about human resources.

If you’re a department leader, your boss will likely one day ask this question: “What is your business plan for your department?” As the leader of the Human Resources function, you can use these steps to answer that question.

A frequently asked question at this website, it’s a difficult question to answer in a generic fashion because the needs of every company for the contribution of the HR department can differ widely. You can, however, use these steps as a guide as you develop your own HR business plan.

Your Human Resources department business plan depends on your needs analysis of your own workplace. Your Human Resources department business plan also depends on learning about and benchmarking industry standards outside of your organization.

But, the fundamental question you need to answer, to reply to your boss’s question, is, “What does your workplace need from the HR function?” Here’s how you can find the answer.

Steps to Develop a Human Resources Department Business Plan

• Start your Human Resources department business plan by clarifying exactly what your boss needs and wants from you and in how much detail. You don’t want to spend hours and hours developing information or a detailed plan that the boss doesn’t need or want. That said, for your own clear purpose and direction, your own strategic plan for your department, this approach will yield great value.
• Read through the detailed job descriptions that have been developed for the HR Director/VP , HR Generalist , and HR Assistant . Are there functions listed in these job descriptions that you are not performing that you could perform that would add value to your organization? Start a function list. You can also use a commercially developed Human Resources department audit book/program or an occasional free Human Resources department audit plan list.
• Take a look at this list, plus add to the list, the functions that your Human Resources department is already performing and functions that you know you want to add—or subtract. Minute detail is not required until you are ready to put together your Human Resources department business plan when you complete these steps.
• Meet with your fellow executives to obtain an assessment of their current satisfaction with your services, additional services they’d like you to add, and their ideas about how HR can best support your organization’s mission , vision , and goals. Supply the questions to your key colleagues in advance of your meeting. Inform them that you have distributed the questions in advance so that they can solicit feedback from their staff, too. If you have effectively gathered the above internal and external information, you may be able to present the choices in a rating and ranking format. This is the key step within your organization for assessing what the line management and the employees want from the HR function. Of course, there are administrative and counseling functions that they might never consider asking you to provide that you will continue to provide as part of a professional HR function. The purpose of asking is to find the offerings that your customers think they need most.
• You are developing a great deal of internal information about your company’s HR needs. You might also look at recent journals from professional associations such as the Society for Human Resource Management (SHRM). Talk with colleagues in any local associations you attend. Take a look at literature available such as HR Magazine . The articles from this section of TheBalance.com are particularly useful for planning the priorities and scope of the HR department business plan.
• Once you have gathered all of this information, or even, just enough—your executives’ priorities may give you extremely clear direction, for example—you can make a plan. You can see what you are missing in your HR department, what you might expand, what you need to focus on strategically to build your department’s contribution, and what you may currently offer that is not needed.
• From these identified missions, prioritize and make a plan, based on resources and your preferred method of presentation or accomplishment, of what you can accomplish this year and next. Some solutions may be HRIS-based needs ; others may have to do with HR office offerings; others may require a strategic change in direction or the addition of a major function. You won’t know until you study and ask.

Now, at last, you can answer your boss’s question: What is your business plan for your HR department?

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HR Business Plan: What Is It And What Are Its Steps?

Every company that has an HR department needs an HR business plan. Without it, you will have inconsistencies when you deal with your employees.

Human resources manage the relationship between your company and its employees. Due to this, it is only natural for human resources to have their own plan of approach to their tasks.

Key Takeaways:

An HR business plan is the strategic approach of the human resources department.

The HR business plan should clarify responsibilities, organize its processes, and create performance standards in which to gauge its success.

First assess the current HR situation, then establish goals and strategies to enact those goals for the HR department.

Make sure your HR strategies comply with legal requirements.

What Is A HR Business Plan?

An HR business plan is a strategic approach your human resource department will follow to accomplish its goals.

Like all business plans, an HR business plan needs to define its objectives, organize systems of measured success, and incorporate a flexible framework. A robust plan can adapt to new scenarios and still focus on its long-term aims.

Though this will vary by company, in general, every HR business plan will want to:

Clarify roles and responsibilities. Focus on the roles and responsibilities of the department and its members. You want to understand the job descriptions of each member of the human resource department. Then decide what the overall purpose of the department is and connect it back to each member. Be aware of any conflicting or contradictory agendas and seek to streamline.

Design and organize processes. Human resources helps hire, train, onboard, and terminate staff. There should be well-detailed plans for each process that keeps the human resources department prepared for any scenario.

Address compensation and benefits. Human resources manages the implementation of benefits and compensation. Therefore, the department’s plan must discuss how this will be handled.

Comply with legal requirements. The human resource department needs to be well-versed in the legal requirements and protections of the employees. The plan should provide a clear compliance with the law.

Create performance standards. A business plan is useless unless it can be evaluated against measures of success. It helps to provide metrics with results to be more objective in analysis.

Tie in to overall business plan. The HR business plan needs to complement the overarching business plan of the company. Avoid any policies or procedures that conflict with the overall business plan.

A human resource business plan will develop these points into a coherent strategy.

Steps To Develop A HR Business Plan

Assess current human resource situation. Before a plan is made, the human resources department and the company executives need to know what they have already. Your company should evaluate the roles and responsibilities of its human resource staff. You will want to see if anything is missing or if there is anything that is expendable.

Establish goals for human resource department. Now that you know what you’re working with, it is time now to think about what you want the human resource department to accomplish. Use the roles and responsibilities you just clarified to arrange practical benchmarks you want the department to make. Make sure goals do not interfere with one another but build toward an overall objective.

Create strategies to enact goals. Once you have your goals in place, it is time to build strategies to accomplish those goals. These strategies should work in tandem, so make sure each one has a logical progression. Like the goals, you do not want your strategies to interfere with one another but instead build towards an overall objective.

Evaluate business plan. Once you enact the plan, you need to make sure you accomplish your goals. Have a feedback system put in place where you can measure the success and failures of your plan. Come up with contingency plans in case your initial plans need to be re-evaluated.

Why Have A Human Resource Business Plan

An HR business plan is needed to establish long-term success with your employees.

Your plan gives focuses on the roles and responsibilities of the department. Human resources play a critical role in the hiring, training, and retention of staff. A business plan will clarify these procedures.

A HR business plan also provides consistency in the implementation of benefits and managing the welfare of the employees.

The human resource business plan empowers the department to perform at its best. In turn, it will help employees be equipped and compensated to perform at their best.

Without a HR business plan, your company is at risk conflicted and contradictory procedures that impede growth and success.

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Conor McMahon is a writer for Zippia, with previous experience in the nonprofit, customer service, and technical support industries. He has a degree in Music Industry from Northeastern University and in his free time he plays guitar with his friends. Conor enjoys creative writing between his work doing professional content creation and technical documentation.

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8 Actionable Long-term HR Strategy Plan Examples

Failing to plan is the same as planning to fail when it comes to managing your people. here are five essential reasons why you need to think strategically about human resources..

In any organisation, large or small, three fundamental systems of record form the business backbone; accounting and finance, customer relationship management and HR and employee management.

Many businesses now take a strategic approach to managing these key areas by using cloud technologies to run their accounting and finance processes in real-time, as well as manage their customer relationships.

However, many businesses continue to persist with a more reactive approach to HR. That’s why it’s time to start building your own human resources strategic plan (otherwise known as an HR strategy). Failing to plan is the same as planning to fail when it comes to managing your people.

What is a Human Resources Strategy plan?

An HR department in every business is responsible for finding and training employees. Besides that, they also help with conflict resolution, employee benefits, employee retention and development. A human resource strategy plan is taking those responsibilities and making sure they meet the goals, mission and future needs of the company.

What are the benefits of creating HR strategies?

We all know that the role of human resources and people management is changing . By implementing strategic human resources management, you’ll have a crystal clear vision of your goals and how to achieve them.

Read on to find out the benefits of having an HR strategy in place.

1. Forecasting talent requirements

Being able to develop realistic forecasts of your people’s needs now and in the future is essential if you’re going to win the war on talent. On a day-to-day level, being able to optimise shift allocation will help you achieve efficiencies and reduce your wage bill.

Also, if you know how many staff you require to achieve the future strategic goals of the business and what jobs need to be filled, you can get an early start on finding the right talent.

2. Non-compliance costs

Everything from payroll to onboarding, performance management and employee data management comes with a huge amount of compliance and paperwork. Using spreadsheets and manual processes is not only time-consuming, but they are also prone to human error. And this means business risk.

By using strategic planning, you can identify any possible compliance gaps and keep your business in line with employment legislation.

3. Happy employees are more productive

Beyond hiring the right candidate, a good HR strategy plays an important role in promoting employee engagement and satisfaction. These areas are crucial to developing a happy, productive workforce who become great ambassadors for your business.

With an HR strategic plan, you can formulate what is required of you to take care of your employees’ needs. It also keeps a check on morale, measures productivity and your employees’ sense of commitment.

4. Retention

Employee engagement goes hand in hand with retention. Once you’ve built a team of great people, you need to keep hold of them. So a big part of the overall business strategy needs to be focused on what you can do to retain employees. This includes ways to build your employees careers through formal recognition programs and career development pathways.

5. Continuous improvement

Everyone knows that you can’t improve what you don’t measure. Without a strategic HR plan, how can you possibly understand what’s working and what’s not?

Through HR strategies, you can formally evaluate specific and measurable factors such as; employee turnover, the number of vacant positions, employee grievances, as well as satisfaction and dissatisfaction levels.

If you periodically gather and report data on what’s working, you’re much more likely to make consistent and accurate decisions.

Read more: All you need to know about HR management

Intro to HR Management

8 things to implement for a successful HR strategy

Taking a proactive approach to managing your people will put your business on the front foot— ready to identify and solve HR issues. By developing an HR strategic plan, you can reflect on the successes and failures of previous quarters. Doing so will help you effectively plan for attracting and retaining the right talent, which is key to your business achieving success.

Here are some HR strategy examples you can implement to gain a competitive advantage through your HR department.

1. Conduct regular HR audits

The beginning of the year is the perfect time to conduct a review of your HR processes and compliance. While these should continually be reviewed, it’s important to assess them at the start of each calendar year.

Human resources audits are an effective way to perform a gap analysis and review your current people management processes and obligations. By conducting an audit, you will be able to update any legalities and also see where improvements can be made, which can be included in your new HR strategy.

Common areas to complete an HR audit include:

• Record keeping
• Remuneration
• Performance reviews
• Policies and procedures
• Health and Safety

Read more: The future of HR automation

2. Set goals aligning with your business strategy

If you’re looking for information on how to introduce a goal-setting framework so you (and your entire team) can plan your goals effectively, we suggest giving thought to OKRs (Objectives and Key Results) .

While OKRs are not as well known as their popular counterpart, key performance indicators (KPI), OKRs are a great tool to complement your company’s HR strategy.

They’re a transparent way to keep your team accountable and motivated whilst ensuring that your goals are 100% aligned at an individual, team and company level. If you’re looking for an all-in-one HR software that includes a visual OKR feature, get in touch with us today .

We can walk you through how Employment Hero can help simplify and align your company goals, so you continue to create a team of engaged, high performers.

3. Design the employee experience

When it comes to business, your employees are everything. They keep the wheels turning and are the heart and soul of everything you do. But have you ever thought about the experience they have as an employee?

From acquisition to onboarding, training and recognition, there are so many pieces to the employee experience puzzle that can set your workplace above the rest. When designing the employee experience, it’s crucial you map out every stage of the employee lifecycle and visualise your ideal scenario.

This allows you to create the perfect recipe for your employee experience.

Read more: How to empower employees with employee self service

An example of a designed employee experience

1. Attraction : Work with marketing to have a strong employer branding presence across social. Using social media and employee advocacy to recruit top talent to your business is a great way to keep your candidate funnel full.

2. Recruitment : Having a set interview process that ensures you hire the right person. This may include candidates having to complete a task or assignment.

3. Onboarding : Ensuring that the onboarding process includes information about their specific role and the wider organisation. It might also see you start new employees in a cohort instead of scattered days so they can complete induction together. Beyond the more technical parts of onboarding, consider ‘surprise and delight’ elements such as branded company merch and organising a special lunch with the hiring manager.

4. Development : Encouraging your employees to access online training and attend industry events that will improve their skills. Setting up an annual self-learning fund for each employee could be a good way to do this.

5. Retention : Creating professional development plans for your employees and rewarding them for great work. Using a goal-setting framework like OKRs and a well-thought-out career plan can make all the difference.

6. Separation : Create a way to support your employees through the exit process. This could be by a formal exit interview so you can improve and learn from experiences.

4. Improve your Employee Value Proposition (EVP)

If you’re not sure what an EVP is , it’s the balance of rewards, benefits and culture that the company can offer in return for amazing employee performance. In saying this, it’s important to remember that your employee value proposition extends beyond perks and benefits.

Why should you care about improving your EVP?

It’s an important piece of attracting top talent to your business. If you present well to a potential star candidate, they’re going to want to work for you. This in return, helps the human resources department recruit candidates a whole lot easier.

You might also even find that your time to fill roles decreases significantly. According to a study by People Scout , “when organisations live up to their marketed EVP, new employees arrive with a higher level of commitment at 38%, compared to organisations that don’t live up to their marketed EVP, which are at just 9%”.

When you get your EVP right and have star talent in your business, you can expect greater business growth as they’ll be more engaged in their role.

Read more: Emerging HR trends in the job market

5. Implement HR systems

If you’re looking to reduce the amount of time you spend on manual admin tasks and get strategic in your day-to-day, an HRIS can help you. By implementing an HR tech system like Employment Hero, you can reduce the amount of time you spend on admin tasks by up to 80%.

Just imagine no longer having to manually onboard an employee or keep employee files in dusty old filing cabinets! It’s also a great piece of tech to add to your long-term HR strategy!

6. Provide professional development plans for employees

According to LinkedIn’s 2018 Learning Report , a massive 93% of employees said they would stay at a job longer if the company invested in their learning and development. This is a sign that the majority of employees place this as a top factor when determining whether or not to jump ship. But the benefits aren’t just for the employee.

Creating a professional development plan for your employees is a two-way street and a vital piece of your long-term HR strategy. When you have acquired top talent and develop their skills even further, you’ll have star employees that will be just as invested in your company as much as you’re invested in them!

You’ll also save money in the long run, as you won’t face the hidden costs of recruitment associated with employee turnover.

Saving costs, developing your team and giving your employees what they want? It sounds like a great strategic HR move to us!

7. Improve employee advocacy

Your employees are your best cheerleaders, so it makes sense to use them to leverage your brand. Whether it’s by incorporating employee advocacy into your HR strategy or getting your teams’ LinkedIn profiles up to speed (hello branded cover images and profile pictures!), there are many ways you can leverage your employees’ professional networks.

Social media is one of the most cost-effective places to reach new and potential customers, so we say this is something you might want to get on board with, and pronto! While employee advocacy strategies are a fairly new concept, they’re beginning to gain momentum.

With this being said, those who take advantage of employee advocacy will be the ones reaping the rewards!

What are the benefits of employee advocacy?

• Improves the company’s social media reach
• Attracts new business and potential clients
• Improves company culture and office buzz
• Improves retention rates

8. Gen Z talent acquisition and retention strategy

Gen Z is beginning to enter the workforce, so it’s important you have a long-term HR strategy in place to attract them. Born between 1995 and 2015, Gen Z’ers are different from previous generations that have entered the job market.

Why is it important to have an acquisition strategy for Gen Z?

While Millennials have been in the spotlight for many years, we’re beginning to investigate the traits of Gen Z. With Gen Z entering by the masses, it’s important you know how to hire and retain them.

Gen Z has grown up around digital technology and are naturally tech-savvy compared to their older counterparts. This alone changes how you should recruit Gen Z.

According to our recent Gen Z at work report , Gen Z characteristics are:

• Risk adverse
• Independent
• Competitive
• Open minded

As Gen Z are naturally tech-savvy and connected on social media, we would suggest advertising job ads with social media first approach. We could even see Tik Tok become the ‘it’ place to recruit top talent from Gen Z!

The wrap-up

This is the perfect time of year to start looking into long-term HR strategy. From implementing an HR automation system like Employment Hero, to getting prepared for the influx of Gen Z candidates you’ll be recruiting for in the future, now’s the time to get planning.

If you need help demonstrating the value of implementing HR software as part of your HR strategy, read our blog on building a business case for HR software here.

To learn more about you can improve HR strategy and achieve your HR goals, get in touch and one of our small business HR experts to show you how today!

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Human Resources Consulting Business Plan

Start your own human resources consulting business plan

Human Capital Maximizers

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Human Capital Maximizers (HCM) is a human resource consulting company located in Portland, Oregon.  HCM has expertise in a wide range of HR areas and is targeting the emerging company market.  HCM will offer this market the ability to compensate client’s employees with stock options from their company.  This will be especially appealing to many start-up companies that find capital scarce. 

Major Adversity, the founder and owner will be leveraging his past and current personal/professional relationships to generate business for Human Capital Maximizers.  Major will be the sole employee until month six when he will be hiring a human resource specialist/manager to help out with the consulting.  Human Capital Maximizers will show increasing profitability over the next three years.

1.1 Keys to Success

The keys to success are to provide a needed service while providing a flexible means of compensation.

1.2 Mission

Human Capital Maximizers’ mission is to provide human resource consulting for emerging companies.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

1.3 Objectives

The objectives for the first three years of operation include:

• To create a service-based company whose primary goal is to exceed customer’s expectations.
• To increase our number of clients served by 20% per year through superior performance and word-of-mouth referrals.
• To develop a sustainable start-up consultancy firm that can survive off its own cash flow and has significant equity holdings in emerging companies.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Human Capital Maximizers is a HR consultancy firm serving the Portland area market. HCM will be set up as an Oregon Corporation owned by Major Adversity and will focus on emerging companies.

2.1 Company Ownership

Human Capital Maximizers is a privately held Oregon corporation founded and owned by Major Adversity.

2.2 Start-up Summary

Human Capital Maximizers will incur the following start-up expenses:

• Two desks, two chairs, and two lockable file cabinets.
• Two computer systems including a CD-RW, printer and a third computer to serve as a server.
• DSL router and DSL connections.
• Two telephones, fax machine, and copier.

Please note that the following items which are considered assets to be used for more than a year will labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market.   Human Capital Maximizers will charge a below market rate and take stock options in the company.  Human Capital Maximizers will  provide consulting for the following service areas:

• Human resource management.
• Organizational management.
• Professional development.
• Employee relations.
• Labor relations.
• Benefits and compensation.
• HR policy and procedure.
• Executive search.
• Sexual harassment.
• Position classification.
• Personnel management systems.
• Performance evaluations.

The pricing structure will either be an hourly rate or a per project fee.  These options will be settled on in negotiation with the client.  In general, Human Capital Maximizers is willing to be as flexible as possible.

Market Analysis Summary how to do a market analysis for your business plan.">

Emerging companies will be the target market for several reasons:

• They are in need of HR services as they are growing rapidly.
• They often do not have a large enough in-house solution as they are increasing in size.
• Capital is a scarce resource for emerging companies so the ability to accept stock options in replace of cash is appealing.

The emerging company market can be further broken down into two categories, technology and non-technology.  The significance of the breakdown is not that significant because many of the networking activities are occurring in settings that do not differentiate between technology and non-technology.

4.1 Market Segmentation

Human Capital Maximizers market can be segmented into two different groups, emerging high-tech companies and emerging non-high tech companies.  The emerging high-tech companies are going to be the larger of the two segments.  Even with the Internet bubble bursting within the last year, there are still many different emerging high-tech companies proliferating.  This is evidenced by the Business Journal of Portland which in their annual list of fastest growing companies for this year, 18 of the top 25 were technology companies.

There are also non-technology companies that are emerging in the Portland area and Human Capital Maximizers will be able to serve them as well.

4.2 Target Market Segment Strategy

Human Capital Maximizers’ two markets will be primarily targeted through networking activities.  Some networking will be conducted through the Oregon Entrepreneur Association, an association that supports entrepreneurial ventures in the local area.   This organization has monthly meetings that are in round-table format, allowing members to socialize.

Human Capital Maximizers will also be networking from personal/professional contacts that Major has developed professionally in the last five years in the HR/start-up industry.  HCM will also be relying on word of mouth to grow its customer base.

Strategy and Implementation Summary

Human Capital Maximizers will use their competitive edge of compensation flexibility to attract emerging companies.  This competitive advantage is especially valuable to emerging companies who are typically struggling to find enough capital to grow their business.  Accepting stock options as compensation is useful because equity is one thing these companies have lots of (that is of course if they haven’t given it all away to the Venture Capitalists).

5.1 Milestones

Human Capital Maximizers will have several milestones early on:

• Business plan completion.  This will be done as a roadmap for the organization.  This will be an indispensable tool for the ongoing performance and improvement of the company.
• Set up office.
• HCM’s first five customers.
• Profitability.

5.2 Sales Strategy

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Major will also be able to speak about Human Capital Maximizers ability to accept options in lieu of cash.  This will be appealing to companies, particularly in the current capital market which is quite scarce.  Since capital is more difficult to come by now than in the last few years, emerging companies will be excited about this option.

5.2.1 Sales Forecast

The first month will be used to set up the office.  Additionally, during the first month Major will be working hard on developing contracts. The second month will see some activity, but it will not be until month six when business will be picking up at a higher rate.  Sales will continue to grow through year three.

5.3 Competitive Edge

Human Capital Maximizers competitive edge is their flexibility for compensation.  Most or all other companies require compensation to be in the form of cash, for them cash is king.  Human Capital Maximizers is able to take stock options in lieu of some cash.  While Human Capital Maximizers needs some cash to float the business, it can take up to 75% of its fees in equity.  Human Capital Maximizers is able to do this because they have secured an office space that is low in cost, helping them reduce their overhead.  In addition, Major’s wife contributes a significant portion of money to the household so Major is not in need of a lot of monthly compensation.  This allows him to accept options as payment in hopes of an upside to come several years for now. (Please note the the HR industry, unlike law firms and accounting firms do not run into conflict of interests situations regarding receiving equity as compensation.)

Web Plan Summary

The website will be used as a resource that prospective companies can view to gain more information about the company.  In essence it is Human Capital Maximizers’ brochure.  On the site there will be information about the management of the company and corresponding bios indicating all of their experience.  Also on the website will be a list of present and past clients and information regarding Human Capital Maximizers’ fee structure and willingness to accept stakes of option.

6.1 Website Marketing Strategy

The marketing of the website will consist of submitting it to the popular search engines.  The website will be used more as a information tool that prospective companies can be sent to for more information about Human Capital Maximizers as opposed to marketing the website in order for the website to develop new leads.

6.2 Development Requirements

The development requirements will entail hiring an individual (preferably a student for cost saving purposes) to develop and produce the site.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Major Adversity, the founder and owner received his undergraduate degree in marketing from Reed College.  After completing college Major recognized that he would eventually need to go to graduate school but was not ready to yet. 

Major worked in a large bicycle store for four years after college.  Major started out as a mechanic but quickly moved up to manager where he was responsible for much of the operation.  Some of the new responsibilities that Major enjoyed was the interviewing, selection & hiring, compensation, and employee relations.  After fours years in the bike shop Major was looking for a new challenge so he entered the University of Portland to pursue his MBA. 

Major received his MBA within two years and went to work for Nike out of school in their HR department.  After a year and half Major left Nike to work for a HR consultancy boutique that worked primarily with technology companies, many of them start ups.  Major enjoyed this thoroughly because of the dynamic environment that his clients worked in.  Major stayed with this firm for a total of four years.  

Toward the end of Major’s four years he got married and his wife, as a professional, was contributing large amounts of salary to the household.  This led Major to consider opening his own HR consultancy because he would be able to undertake some risk since the household was supported to a large degree by his wife.  Additionally, Major was could consider taking equity as compensation because a monthly salary was not a necessity.

7.1 Personnel Plan

Major will work full time for Human Capital Maximizers.  By month six Major will have developed more work than he will be able to manage himself and he will hire an additional HR consultant to help him out.  The employee will receive a straight salary and will have no future equity options in the client’s companies.  This employee will be given HR projects and will do the research and sometimes present the findings to the client, other times will allow Major to present to the client.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information. Please note that the stock options granted in lieu of compensation are not entered into the financial plan as they are not yet of value.  Upon exercising the options there will be tax consequences (because one of the realizing events has occurred) as well as assets to be accounted for.

8.1 Important Assumptions

The following table details important financial assumptions.

8.2 Break-even Analysis

The Break-even Analysis is shown below.

8.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

8.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

8.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

8.6 Business Ratios

The following table outlines some of the more important ratios from the Management Consulting Resources industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 8742.

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Human Resources Department

MESSAGE FROM THE DIRECTOR – ROCIO KIRYCZUN

I am pleased to present you with the FY 2020-2024 Human Resources (HR) Department’s Strategic Plan. The development of this five-year plan was a collaborative process involving employees and stakeholders, including our customer-departments. This plan provides general information about the services we provide and the strategies we will undertake to address current and future workforce needs. Key areas of focus during the next five years will include:

• DRIVING HR EXCELLENCE AND INNOVATION that leads to successful outcomes and moves the organization forward while leveraging HR technology and remaining a financial steward; 
• DEPLOYING RECRUITMENT AND RETENTION STRATEGIES including marketing and communication to attract and retain qualified and diverse individuals to the organization;
• INVESTING IN OUR EMPLOYEES’ DEVELOPMENT and expanding our succession management programs that reinforce our strategy of “growing our own”; and
• ENHANCING THE EMPLOYEE EXPERIENCE through a culture of employee engagement, wellness, diversity and inclusion, that leads to overall employee well-being, productivity and retention.

The plan aligns with the direction of the County’s Shared Vision 2025, specifically contributing to the Collaborative Community outcome. The HR Team is excited about the future and we are committed to serving our employees, customer-departments, and the public with excellence!

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2.2 Writing the HRM Plan

Learning objective.

• Describe the steps in the development of an HRM plan.

As addressed in Section 2.1 “Strategic Planning” , the writing of an HRM strategic plan should be based on the strategic plans of the organization and of the department. Once the strategic plan is written, the HR professional can begin work on the HR plan. This is different from the strategic plan in that it is more detailed and more focused on the short term. The six parts described here are addressed in more detail in Chapter 4 “Recruitment” , Chapter 5 “Selection” , Chapter 6 “Compensation and Benefits” , Chapter 7 “Retention and Motivation” , Chapter 8 “Training and Development” , Chapter 9 “Successful Employee Communication” , Chapter 10 “Managing Employee Performance” , and Chapter 11 “Employee Assessment” .

How Would You Handle This?

Compensation Is a Touchy Subject

As the HR manager, you have access to sensitive data, such as pay information. As you are looking at pay for each employee in the marketing department, you notice that two employees with the same job title and performing the same job are earning different amounts of money. As you dig deeper, you notice the employee who has been with the company for the least amount of time is actually getting paid more than the person with longer tenure. A brief look at the performance evaluations shows they are both star performers. You determine that two different managers hired the employees, and one manager is no longer with the organization. How would you handle this?

As you can see from this figure, the company strategic plan ties into the HRM strategic plan, and from the HRM strategic plan, the HR plan can be developed.

The six parts of the HRM plan include the following:

• Determine human resource needs. This part is heavily involved with the strategic plan. What growth or decline is expected in the organization? How will this impact your workforce? What is the economic situation? What are your forecasted sales for next year?
• Determine recruiting strategy. Once you have a plan in place, it’s necessary to write down a strategy addressing how you will recruit the right people at the right time.
• Select employees. The selection process consists of the interviewing and hiring process.
• Develop training. Based on the strategic plan, what training needs are arising? Is there new software that everyone must learn? Are there problems in handling conflict? Whatever the training topics are, the HR manager should address plans to offer training in the HRM plan.
• Determine compensation. In this aspect of the HRM plan, the manager must determine pay scales and other compensation such as health care, bonuses, and other perks.
• Appraise performance. Sets of standards need to be developed so you know how to rate the performance of your employees and continue with their development.

Each chapter of this text addresses one area of the HR plan, but the next sections provide some basic knowledge of planning for each area.

Determine Human Resource Needs

The first part of an HR plan will consist of determining how many people are needed. This step involves looking at company operations over the last year and asking a lot of questions:

• Were enough people hired?
• Did you have to scramble to hire people at the last minute?
• What are the skills your current employees possess?
• What skills do your employees need to gain to keep up with technology?
• Who is retiring soon? Do you have someone to replace them?
• What are the sales forecasts? How might this affect your hiring?

These are the questions to answer in this first step of the HR plan process. As you can imagine, this cannot be done alone. Involvement of other departments, managers, and executives should take place to obtain an accurate estimate of staffing needs for now and in the future. We discuss staffing in greater detail in Chapter 4 “Recruitment” .

Many HR managers will prepare an inventory of all current employees, which includes their educational level and abilities. This gives the HR manager the big picture on what current employees can do. It can serve as a tool to develop employees’ skills and abilities, if you know where they are currently in their development. For example, by taking an inventory, you may find out that Richard is going to retire next year, but no one in his department has been identified or trained to take over his role. Keeping the inventory helps you know where gaps might exist and allows you to plan for these gaps. This topic is addressed further in Chapter 4 “Recruitment” .

HR managers will also look closely at all job components and will analyze each job. By doing this analysis, they can get a better picture of what kinds of skills are needed to perform a job successfully. Once the HR manager has performed the needs assessment and knows exactly how many people, and in what positions and time frame they need to be hired, he or she can get to work on recruiting, which is also called a staffing plan . This is addressed further in Chapter 4 “Recruitment” .

Recruitment is an important job of the HR manager. More detail is provided in Chapter 4 “Recruitment” . Knowing how many people to hire, what skills they should possess, and hiring them when the time is right are major challenges in the area of recruiting. Hiring individuals who have not only the skills to do the job but also the attitude, personality, and fit can be the biggest challenge in recruiting. Depending on the type of job you are hiring for, you might place traditional advertisements on the web or use social networking sites as an avenue. Some companies offer bonuses to employees who refer friends. No matter where you decide to recruit, it is important to keep in mind that the recruiting process should be fair and equitable and diversity should be considered. We discuss diversity in greater detail in Chapter 3 “Diversity and Multiculturalism” .

Depending on availability and time, some companies may choose to outsource their recruiting processes. For some types of high-level positions, a head hunter will be used to recruit people nationally and internationally. A head hunter is a person who specializes in matching jobs with people, and they usually work only with high-level positions. Another option is to use an agency that specializes in hiring people for a variety of positions, including temporary and permanent positions. Some companies decide to hire temporary employees because they anticipate only a short-term need, and it can be less expensive to hire someone for only a specified period of time.

No matter how it is done, recruitment is the process of obtaining résumés of people interested in the job. In our next step, we review those résumés, interview, and select the best person for the job.

After you have reviewed résumés for a position, now is the time to work toward selecting the right person for the job. Although we discuss selection in great detail in Chapter 6 “Compensation and Benefits” , it is worth a discussion here as well. Numerous studies have been done, and while they have various results, the majority of studies say it costs an average of $45,000 to hire a new manager (Herman, 1993). While this may seem exaggerated, consider the following items that contribute to the cost:

• Time to review résumés
• Time to interview candidates
• Interview expenses for candidates
• Possible travel expenses for new hire or recruiter
• Possible relocation expenses for new hire
• Additional bookkeeping, payroll, 401(k), and so forth
• Additional record keeping for government agencies
• Increased unemployment insurance costs
• Costs related to lack of productivity while new employee gets up to speed

Because it is so expensive to hire, it is important to do it right. First, résumés are reviewed and people who closely match the right skills are selected for interviews. Many organizations perform phone interviews first so they can further narrow the field. The HR manager is generally responsible for setting up the interviews and determining the interview schedule for a particular candidate. Usually, the more senior the position is, the longer the interview process takes, even up to eight weeks (Crant, 2009). After the interviews are conducted, there may be reference checks, background checks, or testing that will need to be performed before an offer is made to the new employee. HR managers are generally responsible for this aspect. Once the applicant has met all criteria, the HR manager will offer the selected person the position. At this point, salary, benefits, and vacation time may be negotiated. Compensation is the next step in HR management.

Determine Compensation

What you decide to pay people is much more difficult than it seems. This issue is covered in greater detail in Chapter 6 “Compensation and Benefits” . Pay systems must be developed that motivate employees and embody fairness to everyone working at the organization. However, organizations cannot offer every benefit and perk because budgets always have constraints. Even governmental agencies need to be concerned with compensation as part of their HR plan. For example, in 2011, Illinois State University gave salary increases of 3 percent to all faculty, despite state budget cuts in other areas. They reasoned that the pay increase was needed because of the competitive nature of hiring and retaining faculty and staff. The university president said, “Our employees have had a very good year and hopefully this is a good shot in the arm that will keep our morale high” (Pawlowski, 2011).

Determination of compensation systems is a balancing act. Compensation should be high enough to motivate current employees and attract new ones but not so high that it breaks the budget.

Nathan Rupert – Venice Beach Tightrope Walker – CC BY-NC-ND 2.0.

The process in determining the right pay for the right job can have many variables, in addition to keeping morale high. First, as we have already discussed, the organization life cycle can determine the pay strategy for the organization. The supply and demand of those skills in the market, economy, region, or area in which the business is located is a determining factor in compensation strategy. For example, a company operating in Seattle may pay higher for the same job than their division in Missoula, Montana, because the cost of living is higher in Seattle. The HR manager is always researching to ensure the pay is fair and at market value. In Chapter 6 “Compensation and Benefits” , we get into greater detail about the variety of pay systems, perks, and bonuses that can be offered. For many organizations, training is a perk. Employees can develop their skills while getting paid for it. Training is the next step in the HR planning process.

Develop Training

Once we have planned our staffing, recruited people, selected employees, and then compensated them, we want to make sure our new employees are successful. Training is covered in more detail in Chapter 8. One way we can ensure success is by training our employees in three main areas:

• Company culture. A company culture is the organization’s way of doing things. Every company does things a bit differently, and by understanding the corporate culture, the employee will be set up for success. Usually this type of training is performed at an orientation, when an employee is first hired. Topics might include how to request time off, dress codes, and processes.
• Skills needed for the job. If you work for a retail store, your employees need to know how to use the register. If you have sales staff, they need to have product knowledge to do the job. If your company uses particular software, training is needed in this area.
• Human relations skills. These are non-job-specific skills your employees need not only to do their jobs but also to make them all-around successful employees. Skills needed include communication skills and interviewing potential employees.

Perform a Performance Appraisal

The last thing an HR manager should plan is the performance appraisal. While we discuss performance appraisals in greater detail in Chapter 11 “Employee Assessment” , it is definitely worth a mention here, since it is part of the strategic plan. A performance appraisal is a method by which job performance is measured. The performance appraisal can be called many different things, such as the following:

• Employee appraisal
• Performance review
• Career development review

No matter what the name, these appraisals can be very beneficial in motivating and rewarding employees. The performance evaluation includes metrics on which the employee is measured. These metrics should be based on the job description, both of which the HR manager develops. Various types of rating systems can be used, and it’s usually up to the HR manager to develop these as well as employee evaluation forms. The HR manager also usually ensures that every manager in the organization is trained on how to fill out the evaluation forms, but more importantly, how to discuss job performance with the employee. Then the HR manager tracks the due dates of performance appraisals and sends out e-mails to those managers letting them know it is almost time to write an evaluation.

Human Resource Recall

Have you ever been given a performance evaluation? What was the process and the outcome?

Communication Is Key in Performance Evaluations

(click to see video)

Communication is imperative in any workplace, but especially when giving and receiving a performance evaluation.

Key Takeaways

• Human resource planning is a process that is part of the strategic plan. It involves addressing specific needs within the organization, based on the company’s strategic direction.
• The first step in HR planning is determining current and future human resource needs. In this step, current employees, available employees in the market, and future needs are all analyzed and developed.
• In the second step of the process, once we know how many people we will need to hire, we can begin to determine the best methods for recruiting the people we need. Sometimes an organization will use head hunters to find the best person for the job.
• After the recruiting process is finished, the HR manager will begin the selection process. This involves setting up interviews and selecting the right person for the job. This can be an expensive process, so we always want to hire the right person from the beginning.
• HR managers also need to work through compensation plans, including salary, bonus, and other benefits, such as health care. This aspect is important, since most organizations want to use compensation to attract and retain the best employees.
• The HR manager also develops training programs to ensure the people hired have the tools to be able to do their jobs successfully.
• Of the parts of HR planning, which do you think is most difficult, and why? Which would you enjoy the most, and why?
• Why is it important to plan your staffing before you start to hire people?
• What is the significance of training? Why do we need it in organizations?

Crant, J., “How Long Does an Interview Process Take?” Jobsinminneapolis.com, December 2, 2009, accessed October 28, 2010, http://www.jobsinminneapolis.com/articles/title/How-Long-Does-an-Interview-Process-Take/3500/422 .

Herman, S., Hiring Right: A Practical Guide (Thousand Oaks, CA: Sage, 1993), xv.

Pawlowski, S., “Illinois State University to Get Salary Bump,” WJBC Radio, July 11, 2011, accessed July 11, 2011, http://wjbc.com/illinois-state-university-faculty-to-get-salary-bump .

Human Resource Management Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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FREE 10+ HR Department Plan Samples [ Development, Annual, Work ]

The process for establishing a human resource department varies depending on whether the company is fresh new or has been in existence for some time and is only now adding an HR department. Furthermore, the existing size and planned expansion of the business, the level of support and infrastructure already in place, the industry, and the organizational vision and culture all influence the difficulties and concerns of establishing an HR department. This article provides a comprehensive overview of areas and challenges that a company should think about when starting a new HR department.

Hr Department Plan

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Depending on regulatory concerns, existing HR rules, and what is driving the desire to establish a formal HR department, the stages to developing an HR department for an existing firm may overlap with the processes to creating the function from start. An assessment of the current condition of HR-related activities is the first stage in developing an HR department in an existing organization. This evaluation, often known as an HR audit , aids in determining a proper prioritizing and action plan .

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What is an HR department plan? It aids in the alignment of human resources with company strategy. It’s a crucial planning document that builds on the strategic business plan ‘s corporate purpose, vision, values, and goals. It explains how the HR function will contribute to the organization’s goals and strategies while also ensuring that HR planning and practices are consistent. The ideal HR Plan defines how the gaps between current and future skills will be bridged, allowing firms to achieve their objectives more efficiently.

• Assess the current HR capacity – Assessing your current workforce is the first stage in the human resource planning process. It’s critical to recognize the talent you already have before making any decisions about hiring additional personnel for your company. Create a list of abilities for each of your present employees. You can accomplish this in a variety of methods, including asking employees to self-evaluate using a questionnaire, reviewing previous performance reports, or combining the two.
• Forecast HR requirements – It’s time to start projecting future demands when you’ve completed a detailed inventory of the resources you already have. Will your company’s human resources require expansion? Will you need to keep your current employees yet increase their production by improving their efficiency or providing new skill training? Is there a pool of possible personnel in the market? It’s critical to evaluate both your company’s demand for skilled people and the supply of those employees, whether from within or outside the business. You’ll have to keep an eye on supply and demand.
• Develop talent strategies – It’s time to start growing and adding talent after identifying your company’s staffing needs by assessing your current HR capacity and estimating supply and demand. Talent development is an essential component of effective human resource management.
• Review and evaluate – After some time has passed, you may assess whether your human resource management process strategy has aided the organization in achieving its objectives in areas such as production, profit, staff retention, and employee happiness. Continue with the plan if everything is going well, but if there are any problems, you can always alter things around to better meet your company’s demands.

It includes HR staffing plan, HR budget, tax obligations, payroll system, companywide staffing plan, job descriptions, pay structure, benefits plan, employee handbook, safety procedures, employment posters, hiring processes, personnel files, and performance evaluation process.

It includes demand forecasting, supply forecasting, and matching demand and supply.

It involves recruitment, selection, hiring, training and development, employee remuneration and benefits administration, performance management, and employee relations.

If you want to see more samples and formats, check out some HR department plan samples and templates provided in the article for your reference.

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HR Strategic Plan

There are many aspects of business that you have to get right consistently. Due to the number of people that will be involved in your company, human resources should be among the top of those aspects. Flip through almost any corporate magazine and you should see successful HR strategies examples clear as day. They may not always spell it out, but read between the lines and you should find them. With that said, any company can make good use of a HR strategic plan. If you want to get your own sample of HR strategic plan templates and learn more, you best scroll on.

HR Strategic Plan Example

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HR Strategy Plan Template

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HR Strategic Communications Plan Template

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HR Strategic Business Plan Template

Human Resource Strategic Implementation Plan Example

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Basic Human Resource Strategic Plan Example

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The Importance of a Human Resource Department

There are various reasons why a human resource department is important to a company’s success and survival. First, there’s its responsibility as far as recruitment is concerned. This is the most basic task of any individual working in a human resource department. Anybody looking to find and edit an HR strategic plan template should always keep recruitment policies in mind. Another important function of a HR department is employee engagement . Together with management, HR officers formulate policies to keep employees motivated and productive. Lastly, there is counseling. HR departments must also aim to create a positive working environment for all employees in the company. To achieve this, HR people do counseling and discuss with employees their issues or other problems being encountered in the office.

Tips for Creating an HR Strategic Plan

Acquiring an HR strategy template or a downloadable HR strategic plan PDF sample is easy. Coming up with your own strategic plan from scratch is hard. However, it doesn’t have to be too difficult. Below are some tips that are bound to come in handy down the line.

Tip 1: Always Think of Your Future Needs

Being proactive and thinking of the future is often the right way to go whenever you develop any kind of strategic plan. The same goes for HR-related issues. When planning, ask yourself specific questions like ‘what skills will we require in the future?’ or ‘how large do we want our company to be?’

Tip 2: Consider What Your Company is Presently Capable of

Although thinking of the future is a must, you must also not neglect to look into what your present needs and capabilities are. You can even perform a SWOT analysis of your overall workforce to determine your strengths and weaknesses. Consider the risks and look for where your future opportunities are realistically. In learning both your present and future needs, you can better bridge the gap.

Tip 3: Lay Out Specific Plans

Having assessed what you need and what you are capable of, the next thing we can advise you to do is to lay out your specific plans. Keep them as detailed and realistic as possible. This should be easier for you to do now that you are better aware of your present capabilities. Another tip would be to keep the SMART acronym in mind: make sure everything is specific, measurable, achievable, relevant, and timely.

Tip 4: Re-evaluate as Often as Needed

Even when you think you already have the most well-thought-out plan, there may be parts of it that still require tinkering in the future. Or perhaps new developments will arise that make your plans less than ideal. Since no action plan can be accurately called foolproof, then you must prepare to adapt to any new circumstances that you and your company find yourselves in.

What are the essential components of a human resource strategic plan?

A developed vision-mission statement for your company is one. Without that component, your strategies won’t be guided in a proper manner. Then there is the intimate knowledge of what your HR department has at its disposal.

What role does HR play in a company’s overall planning process?

HR professionals often contribute to a company’s plans in various ways. One, they often formulate tactics designed to encourage greater interaction within the company. Their recruitment tasks also lead to the right people entering into the company’s plans as those professionals get slotted into key roles in the organization.

What are the two types of strategies employed by HR departments?

HR departments often employ two general kinds of strategies: one is called overarching strategies and the other is called specific strategies. The latter hones in on particular HR strategies and tactics while the latter branches off and involve the other departments of the company.

Any human resource strategic plan sample is always going to be better than having no plan at all. HR is a nuanced department with several pitfalls to navigate away from. Do it right and you set your company on the path of greater success. Do it wrong, and you should see yourself riddled with excruciating problems to solve. Which situation do you prefer? Take what you’ve learned from this article, along with any human resource strategic plan template or human resource strategic plan sample, and act on them today!

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Develop a project timeline for a middle school science fair.

SWOT Analysis of a Human Resources (HR) department 

A Human Resources (HR) department manages an organization’s workforce and fosters a positive work environment. Here’s an overview of the primary functions and responsibilities of an HR department:

Core Functions of HR:

• Recruitment and Staffing : HR is responsible for attracting, hiring, and onboarding new employees. This includes crafting job descriptions, posting job openings, screening candidates, conducting interviews, and selecting the best candidates for the organization.
• Training and Development : HR departments manage employee development programs to enhance skills, improve performance, and ensure employees are equipped to meet their job requirements. This includes organizing training sessions, workshops, and continuing education opportunities.
• Compensation and Benefits : HR determines appropriate compensation structures and packages that align with industry standards and organizational goals. This includes salary, health insurance, retirement plans, and other perks that help attract and retain talent.
• Performance Management : HR oversees employee performance evaluation, working with managers to assess and manage worker productivity and setting performance standards and goals. This function is crucial for identifying high performers, providing feedback, and addressing areas where employees may need improvement.
• Employee Relations : HR plays a key role in maintaining a healthy, ethical, and productive workplace. They handle employee grievances, mediate disputes, and ensure a fair and respectful working environment. This also involves developing and enforcing company policies that comply with legal standards.
• Compliance with Laws and Regulations : HR ensures that the organization complies with all relevant employment laws and regulations, which can vary widely from one jurisdiction to another. This includes employment standards, health and safety issues, and anti-discrimination laws.
• Workforce Planning and Retention : HR departments are involved in strategic planning to ensure the organization has the right mix of skills and staffing levels to meet current and future business needs. This involves succession planning, turnover management, and workforce analytics.
• Diversity and Inclusion : Many HR departments lead initiatives to promote diversity and inclusion within the workplace. This includes developing policies that promote equal opportunities and creating programs that enhance cultural competency within the team.

Strategic Role of HR:

Increasingly, HR is seen as a strategic partner in the organization rather than just an administrative or support function. This strategic role involves aligning HR policies and practices with the overall business strategy to improve performance, productivity, and profitability. HR professionals are expected to provide insights and data that support business decisions, help manage change, and foster organizational culture.

In summary, an HR department is integral to nurturing a company’s human capital, aligning employee goals with organizational objectives, and ensuring compliance with laws and regulations. The effectiveness of HR can significantly impact an organization’s overall success.

Here is the SWOT analysis for  Human Resources (HR) department 

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of the Human Resources (HR) department.

SWOT Analysis: Meaning, Importance, and Examples

• Expertise in Recruitment and Talent Management : HR is central to attracting and retaining top talent. A strong HR department excels in designing recruitment strategies that fill positions quickly and ensure a good fit between the candidates and the company culture. This helps in building a skilled and committed workforce.
• Employee Development and Training : HR departments often lead the way in employee development, providing training programs that enhance skill sets and increase productivity. By investing in employee growth, HR can directly impact the organization’s efficiency and effectiveness.
• Enhanced Employee Satisfaction and Engagement : HR plays a crucial role in employee relations by ensuring a positive work environment, addressing grievances effectively, and maintaining high levels of employee engagement. This can lead to lower turnover rates, higher job satisfaction, and a more motivated workforce.
• Strategic Workforce Planning : HR’s ability to forecast and plan for future workforce needs based on the organization’s strategic direction is invaluable. By aligning the workforce strategy with organizational goals, HR can ensure that the company has the right people in the right roles at the right time.
• Regulatory Compliance and Risk Management : HR helps the organization comply with labor laws and employment standards, reducing legal risks and protecting the organization from potential lawsuits and regulatory sanctions.
• Cultural Stewardship : HR is often seen as the guardian of company culture, promoting core values and ensuring they are integrated into every aspect of the organization. A strong company culture can enhance employee morale and productivity and differentiate the company in the market.
• Cost Management : Through effective benefits management, salary structure design, and control over labor costs, HR can contribute to the financial health of the organization, making it a key player in overall business success.
• Resource Constraints : HR departments are often required to manage a wide range of responsibilities with limited resources. Budget constraints can lead to understaffing in HR teams, which may result in delays and inefficiencies in handling employee needs, recruitment, and training programs.
• Resistance to Change : HR departments can sometimes be slow to adapt to changes in the business environment or advances in HR technology. This resistance can hinder the implementation of more efficient systems and processes that could benefit the organization.
• Lack of Strategic Integration : HR may not be fully integrated into the strategic planning process in some organizations. This can lead to a disconnect between the company’s business goals and HR strategies, potentially affecting the overall alignment and effectiveness of the organization.
• Overemphasis on Administration : HR departments can sometimes become too focused on administrative functions such as processing payroll and managing employee records. While these tasks are important, overemphasizing them can divert attention from more strategic HR functions like talent management and employee development.
• Compliance and Legal Challenges : Navigating the complex landscape of employment law can be challenging for HR professionals. A lack of expertise or up-to-date knowledge on legal matters can expose the organization to risks of non-compliance and potential legal issues.
• Ineffective Communication : Poor communication within the HR department and with other departments can lead to misunderstandings and misalignment of goals. Ineffective communication can also impact employee satisfaction if employees feel their concerns are not addressed properly.
• Data Management Issues : With data becoming increasingly important in HR decision-making, a lack of proper systems to handle data can be a significant weakness. Inadequate data management can make tracking employee performance, forecasting workforce needs, and analyzing HR metrics difficult.

Opportunities

• Technology Integration : Adopting advanced HR technologies like AI-driven analytics, machine learning for data processing, and automated systems for routine tasks can greatly enhance efficiency. These tools can help in better talent management, predictive analytics for turnover rates, and more personalized employee engagement strategies.
• Strategic Leadership Role : HR can expand its influence by taking on a more strategic role in organizational planning. This involves participating in high-level decision-making processes, aligning HR strategies with business goals, and contributing to the company’s overall direction.
• Employee Wellness Programs : With increasing awareness of the importance of mental health, HR departments can implement comprehensive wellness programs that support employees’ physical, mental, and emotional health. This can improve employee satisfaction, reduce absenteeism, and create a more productive workforce.
• Talent Development and Lifelong Learning : HR can create employee growth and development opportunities through continuous learning and development programs. This could include career development plans, upskilling courses, and leadership training, which help retain top talent and prepare employees for future organizational roles.
• Diversity and Inclusion Initiatives : There is a growing need for workplaces to be more inclusive and diverse. HR departments can lead the way in crafting policies and practices that promote diversity, equity, and inclusion. These initiatives can enhance the company’s image, attract a diverse workforce, and improve employee engagement and innovation.
• Global Talent Acquisition : As businesses expand globally, HR departments can look to broaden their recruitment efforts to include international talent. This fills skills gaps and brings new perspectives and ideas to the organization, enhancing creativity and problem-solving.
• Enhancing Employee Engagement : HR can leverage data and employee feedback to develop more effective engagement strategies. This might involve tailored benefits, flexible working conditions, and recognition programs that directly address the desires and needs of the workforce.
• Compliance and Risk Management : As regulations evolve, particularly in areas like data protection (GDPR) and labor laws, HR departments can strengthen their role in compliance management. Being proactive in this area can prevent legal issues and ensure the organization operates within the law.
• Technological Disruption : Advances in AI and automation technologies are reshaping many traditional HR functions. Automation of routine tasks like payroll, benefits administration, and initial recruitment phases can threaten HR roles, pushing the department to evolve and adopt new skills focused more on strategic planning and employee engagement.
• Economic Uncertainty : Economic downturns and budget cuts can significantly impact HR operations, forcing the department to do more with fewer resources. These conditions can lead to layoffs, reduced training and development opportunities, and decreased employee engagement and morale.
• Compliance and Regulatory Changes : HR departments must stay current with labor laws and employment regulations, which can vary widely by region and change frequently. Non-compliance can result in fines, legal issues, and damage to the company’s reputation.
• Data Security Risks : With HR departments managing a significant amount of sensitive employee data, they are a prime target for cyber threats. A breach can lead to severe data loss, compromising employee privacy and leading to legal repercussions.
• Talent Management Challenges : In a highly competitive job market, retaining top talent and recruiting skilled workers are constant challenges for HR. The inability to effectively manage talent can lead to a skills gap in the organization, affecting overall productivity and innovation.
• Changing Workforce Demographics and Expectations : As workforce demographics shift and employee expectations change, HR must adapt its policies and strategies to meet these new demands. This includes managing a multi-generational workforce, accommodating flexible work arrangements, and implementing diversity and inclusion initiatives.
• Remote Work Dynamics : The rise of remote work has created new challenges for HR regarding engagement, performance management, and maintaining company culture. Adapting to these changes while ensuring seamless communication and collaboration is crucial.

Check out the SWOT Analysis of Global Businesses

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Employee Onboarding Guide

Onboarding definition & overview.

Last updated: May 15th, 2024

Quality onboarding is crucial for new employees' long-term success and organizational productivity. Learn why a solid employee onboarding process can make a significant impact on employee experience and retention, plus innovative ideas to approaching welcoming new staff.

Onboarding Guide Navigation

> Definition & Overview

What Is Onboarding?

Onboarding is the process of integrating new employees into an organization. It includes the orientation process and opportunities for new hires to learn about the organization's structure, culture, vision, mission and values. Onboarding can span one or two days of activities at some companies; others offer a more extensive series of activities spanning months. 

Onboarding is often confused with orientation. While orientation is necessary for completing paperwork and other routine tasks, onboarding is a comprehensive process involving management and other employees and can last up to 12 months. 

Why Is It Important to Get Onboarding Right?

All new employees are onboarded—but the quality of the onboarding makes a difference. Too often, onboarding consists of handing a new employee a pile of forms and having a supervisor or HR professional walk the employee around the premises, making introductions on an ad hoc basis. When onboarding is done well, however, it lays a foundation for long-term success for the employee and the employer. It can improve productivity, build loyalty and engagement, and help employees become successful early in their careers with the new organization.

A study by  Gallup  showed that while only 12 percent of employees felt their company did a great job with onboarding, those employees were nearly three times as likely to say they have the best possible job. Overall, only 29 percent of new hires felt they were prepared and supported to excel in their new role. This leaves a lot of room for improvement.

Other studies consistently show a positive correlation between engaged employees and a company's profitability, turnover rate, safety record, absenteeism, product quality and customer ratings. An effective onboarding plan offers an ideal opportunity to boost employee engagement by, for example, fostering a supportive relationship between new hires and management, reinforcing the company's commitment to helping employees' professional growth and proving that management recognizes the employees' talent.   For further reading learn  how to optimize the onboarding process  and the importance of good onboarding . 

Relatedly, an  employee value proposition  (EVP) defines the value employees will get from working for a particular organization. It embodies the promises made during recruitment and is lived out every day through company culture. Onboarding gives employees their first look at how an organization's EVP may or may not be realized.

Onboarding Process Summary

While there are many ways to design an onboarding program, some components are integral to the process:

1. Preboarding

Consider inviting new employees to tour the facility, sending informational material, providing care packages, and assigning a buddy to help them integrate before their official start date.

2. Orientation

Introduce employees to the organization's structure, vision, mission, and values; review employee handbook and major policies; complete paperwork; cover administrative procedures; and provide other mandatory training.

3. Foundation Building

Ensure the onboarding process consistently embodies an organization's culture, mission, employee value proposition, brand, and other foundational elements, recognizing that assimilating these values takes time.

4. Mentoring and Buddy Systems

In partnership with hiring managers, enlist mentors or buddies to provide new employees with guidance, assistance, and insights into organizational nuances.

View our full guide on onboarding process steps.

Innovative Approaches to Onboarding

Various components of an onboarding program can be delivered using different approaches and methodologies combined to suit the organization and available resources.

Some employers are using innovative practices, such as games, video, and team-building exercises, to get new hires excited about joining the company. They're also working to make sure people can hit the ground running with functional workstations and equipment. Some examples of this include: 

Facebook has its "45-minute rule," which means all new employees can begin to work within 45 minutes of arriving because all of their systems and devices have been set up before they report for their first day.

Leaders at Suffolk Construction, a national construction firm based in Boston, invite entry-level hires to participate in a variety of team-building exercises, including rowing the Charles River. 

New employees at Bedgear, a Farmingdale, N.Y.-based manufacturer of performance bedding, take a walking tour of downtown Manhattan to visit other retailers that sell customized products, including Warby Parker and Samsung.

View more  original onboarding options, shared from 4 HR leaders . 

Continue Learning About Onboarding

Additional resources:.

• Checklist for Developing Onboarding/New Hire Practices
• New Hire Orientation Checklist
• New-Hire Orientation Process
• New Hire Survey
• New Hire Survey – Remote Employee
• Onboarding Companies and Vendors in the SHRM Vendor Directory  
• SHRM Store resources on  Onboarding

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