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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. Staying updated with industry trends using the LinkedIn People Directory can help achieve this.

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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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 September 19, 2022

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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A complete guide to effective HR strategy planning (& a free template!)

Businesses are beginning to recognize the strategic value of human resources. In fact, our State of People Enablement Report found that 79% of people ops leaders felt their C-suite saw them as important.* They no longer viewed HR as an administrative or supportive department, but as vital to the organization’s success.

As the role people teams play expands and grows in importance, taking a more systematic, data-driven approach is essential. Effective, intentional strategies ensure your human resources department stays aligned with overarching company goals while positively impacting the employee experience and making your organization a truly enjoyable place to work.

To that end, this article covers the essential steps you need to take for successful HR strategy planning. We’ve also included a best practice HR strategy template you can customize or use as inspiration for your own team.

* Leapsome’s State of People Enablement Report , 2023 ‍

🤿 Dive right into HR strategy development Our customizable HR strategy template includes all the essential stages and action points you need to structure and flesh out your ideas. 👉 Download template here

What is an HR strategy & why does it matter?

An HR strategy is a comprehensive plan that aligns team management with organizational goals. By integrating the two, companies can ensure that they recruit and retain the right talent to keep their initiatives and long-term objectives on track.

However, an HR strategy goes beyond hiring and keeping positions filled — it can help you engage, empower, and develop employees in a way that supports sustainable growth and fosters a positive work environment. 

When human resources plays a more strategic role, the company can also take a more proactive stance in its industry and build workplace resilience . People teams can forecast staffing needs and spot potential gaps and issues before they escalate into larger problems. For instance, you might anticipate turnover and escalate or adjust hiring efforts instead of scrambling to bring people on board as team members leave. ‍

💭 “In the future of HR, the People function continues to be a strategic partner to the business that is highly integrated into company performance and no longer seen as just a support and administrative function. Well-supported People functions and teams will result in better business results, deeper engagement, high employee enablement, and happy customers.” ‍ — Luck Dookchitra , VP People at Leapsome

Last, remember that while HR managers may take the lead, the best strategies are a collaborative effort between leaders, team leads, and team members. Including stakeholders from every area of your business gives you a more holistic perspective, ensuring that your plan will benefit the entire company. ‍

Free download: Our actionable HR strategy template

Human resources strategies aren’t one-size-fits-all. It’s best to tailor them to your company’s unique needs, goals, and culture rather than adopting a generic blueprint.

That said, having a detailed template can provide you with a structure and save you time on planning. You can check that you haven’t missed any essential steps and customize the strategy to suit your context. 

That’s why we’ve provided this free, downloadable template based on Leapsome’s own strategies and values. ‍

🏆 Create a winning HR strategy Streamline your HR planning processes with our comprehensive template that covers every step and checkpoint.  👉 Download template here

8 steps to creating an effective HR strategy plan

Whether you’re working off a template or starting from scratch, there are some essential steps that should go into the development of any great human resources strategy . Here’s everything you need to consider at each stage. ‍

1. Establish your HR strategy’s aims

Setting clear goals is essential as they will guide all the future decisions you make about your HR strategy. This step involves understanding your organization’s broad objectives and determining how you can support them, ensuring your plan contributes directly to the company’s aspirations and long-term success.

For example, your leadership team might clarify that their long-term objective is to enter the European market and establish a strong presence within the next two years. HR and the C-suite could collaboratively decide on the following aims:

• Hire 80% of the team for the new branch locally
• Relocate the remaining 20% of team members from existing branches

Speaking to other departments allows you to assess where your interests align and how you can support each other most effectively. In the example, HR might work alongside legal and accounting to find potential regulatory roadblocks to hiring in Europe.

When you’re developing cross-departmental aims and sharing them across the organization, tracking them can be challenging. Using goal-setting software like Leapsome allows you to establish complex objectives and track your progress toward them. Choose a platform that accommodates various methodologies, such as OKRs and SMART goals , so you can easily tailor your workflow to your company’s needs and preferences.

2. Review your industry

Staying up-to-date with industry happenings is essential to keeping your HR strategy relevant and competitive. You need to research the current state of recruitment, retention, and team management to understand what’s realistic before you develop any plans.

Going back to the example in step one, imagine you’re investigating the current European job market. You discover that there’s a talent shortage in your industry, which means that you may struggle to hire locally.

Look at official sites like Eurostat , the International Labor Organization (ILO), and the US Bureau of Labor Statistics (BLS) for the most recent information. HR thought leaders such as SHRM and the Harvard Business Review also report on job market trends.

Evaluating your position within the market can give you extra insights into developing a realistic strategy. You can see where you need to improve, where you already shine, and where competitors outmatch you. For instance, while looking into European expansion, you may notice that another company already has a strong foothold in the job market.

During your research, see where you can update your current HR tools and resources to support your strategizing. People enablement platforms like Leapsome can automate time-consuming parts of your workflow, such as distributing surveys, data collection, and scheduling meetings, so you can prioritize the planning itself. Automation also has the power to make you more adaptive to changes during the strategizing process — 63% of companies said it helped them to pivot. ‍

3. Analyze & check in with your team

Consider your team’s composition to evaluate the talent you’ve got and look for gaps. You might look into:

• Employee demographics
• Tenure and experience levels
• Job performance
• Salary and benefits

Let’s say you’re considering which team members would be ideal candidates to relocate to your new European branches. You might note that a high percentage of the team are digital nomads who are highly likely to be interested in traveling and living abroad.

To conduct an effective analysis, you need to go deeper than superficial numbers to uncover your team’s needs and wants. Running engagement surveys can help you measure employee sentiment about upcoming company initiatives. Use a flexible tool like Leapsome’s Surveys module so you can come up with questions that are specific to your organizational goals and strategy or customize a ready-to-implement template. Setting up an anonymous suggestion box also creates a space where employees can share concerns that you haven’t covered in your survey.

To keep employees at the forefront of your initiatives, use their feedback to create action points for your strategy. For example, you might discover that team members would be willing to relocate to head an expansion abroad if it meant they were getting a promotion. Tools like Leapsome’s AI-powered sentiment analysis can help you summarize written responses while our post-survey action plans can analyze them to give you quick suggestions. 

🎯 Put employees at the center of every plan Our engagement surveys can help you uncover your team’s concerns and align your strategies with their best interests. 👉 Learn more

4. Consider development opportunities 

Now that you’ve got a better understanding of your current team, see whether your company has the skills and expertise it needs to meet its objectives in-house. If not, determine how quickly you can fill any gaps through learning and development initiatives.

Start by conducting a skills gap analysis to compare the talent you need against your team’s current capabilities. Visualizing the knowledge and expertise you need for your company initiatives on a competency framework can help you spot areas for development. You’ll also see how many steps employees need to take to reach an optimal skill level. Leapsome’s AI-powered competency framework can help you get started — just input your department name, number of competencies, and number of levels to generate a framework in minutes.

Let’s say that you’re looking for employees to manage payroll for new branches in the United Kingdom. While no one in the existing accounting department is familiar with British regulations, one person has experience in international finance.

Once you’ve got a clearer idea of your talent needs, explore how effectively you can meet them by developing existing team members. For instance, you might:

• Ask managers to hold career development talks and report on which team members would be open to learning new, critical skills.
• Assess your current learning and development programs to see if you can adjust them to include the desired expertise.
• Research which training courses on the market cover the competencies you need.
• Explore the possibility of creating personalized courses to equip team members with the specific skills they need.

5. Explore pathways for career progression

As you develop your HR strategy, decide how roles should change to align with organizational goals and employee needs. You may need to create new positions if your current team structure doesn’t support your plans, especially if you’re growing or expanding.

Again, a competency or career progression framework could help you determine which employees can be upskilled or are ready to move into the positions you need. Leapsome’s Compensation and Reviews modules could save you time here by providing you with relevant data on all your internal candidates. You can also use the platform to collaborate with each employee’s team lead to make informed, well-rounded decisions.

For example, your company might need a sales manager to head a new branch in another country. After looking at your employee data, you might identify a salesperson who’s got experience heading a team, and a quick chat with their team lead may reveal that they’re eager to advance professionally. You can then see how to support them and upskill them to move into the new role.  ‍

6. Examine recruitment & turnover

Hiring and retention are often at the heart of human resources initiatives. For example, reducing turnover can help businesses maintain a knowledgeable and experienced team while they launch new ventures. A stable team is also vital to protecting employee well-being and company culture during changes. When colleagues are constantly coming and going, surveys show that team members are up to 25% more likely to resign .

Using the following steps, you can get clarity into how hiring and retention may play into your HR strategy:

• Measure your recruitment and turnover levels
• Filter the results by department and role
• Benchmark your results against the industry standard
• Review reasons for job offer rejections and resignations
• Consider whether you can expect these numbers to change
• Estimate how many positions you’ll need to fill

A people analytics tool like Leapsome can help you implement many of these steps. Our platform not only collects and analyzes your HR data, but gives you AI-driven actionable insights . For instance, Leapsome can sort your information to indicate the biggest impact drivers and filter out less relevant details. You can also benchmark this data against competitors and use predictive analysis to uncover future trends in turnover.

Ultimately, you can see how to solve potential turnover issues at the same time as you discover them, saving valuable time. ‍

7. Design HR initiatives & strategies

Now, you should be ready to translate all the aims and the insights you’ve collected into actionable steps. Write objectives that relate to both the overarching business goals and your team’s needs. If you’re using a cascading goal framework like OKRs, you can tie them directly to each of your company’s aims. 

If you find the OKR methodology tricky to implement correctly, consider using Leapsome’s AI-powered OKR generation feature: Simply provide a descriptive objective as a prompt, and allow the AI tool to generate key results and initiatives tailored to your overall goal. You can then refine your choices from the generated list by selecting the most suitable key results, and include relevant and realistic deadlines and metrics for your organization.

Let’s return to our example of the organization that’s looking to expand abroad. You might establish the following objectives and key results:

Company-level

• Objective: We operate in the EU within the next two years to diversify our market presence and increase our resilience. 
• Key result: We have five teams of 750 local hires and 250 relocated employees working across offices in London, Paris, Berlin, Madrid, and Rome.
• Objective: We have full teams with the best skills, experience, and culture add to run our European offices to ensure the success of our expansion.   ‍
• Key result: There are ten managers from our existing offices working in our new European ones who have successfully undergone our relocation program.  ‍
• ‍ Initiative: We arrange meetings to discuss career opportunities with the top 30 candidates.

Any key results should be measurable so you can track your progress and see whether you’re staying on course. For instance, the metrics in the examples above are the number of people hired and successful relocations.

Once you’ve written your objectives, finalize them with leadership, department heads, and employee representatives. You’ll need to double-check that everyone is aligned on the strategy. Returning to our example, perhaps the C-suite has agreed that ten managers can relocate and employees are on board, but department heads fear that it’ll leave them short-staffed. It’s essential to address these concerns: In this instance, you could consider implementing a transitional plan that outlines how the company will manage workload and resources during the relocation period. ‍

8. Monitor progress & review 

Your HR strategy plan doesn’t end with implementation — you need to decide how you’ll monitor how it’s going and potentially adjust your approach as your needs change and evolve. ‍

💭 “We’ve emphasized continuous improvement since our first HR strategy. Our approaches evolved as we gained insights from experiences and integrated more comprehensive training and development programs. We also honed our communication channels: Fostering transparent dialogues with staff proved essential in understanding their changing needs. By adopting the right technology, we’ve made HR processes more efficient and user-friendly. Our HR strategies have ensured we attract the right individuals who align with our company ethos and contribute meaningfully to our mission. We’ve seen significant benefits: increased productivity, improved teamwork, and a notable boost in our quality of service.” — Sarah Jeffries, Managing Director, First Aid Course Leicester

Using data analytics, you can continue to observe trends in:

• Recruitment and retention
• Onboarding, training, and development
• Engagement levels
• Punctuality and absenteeism

Looking at the data, you can determine whether you’re seeing the expected results. For example, if you’re expanding your organization abroad, you should see changes in recruitment levels and employee demographics. You might be interested in investigating your onboarding times if you’re hiring a lot of candidates to check that training is running smoothly.

You can also use the data to evaluate how well your company has managed the changes. Retention and engagement levels are often telltale signs — if the initiatives have improved job satisfaction, you can expect an increase in both.

You can run surveys to get a clearer idea of employee responses toward the initiatives. When you’re managing hundreds of people over different locations, reading every answer won’t be feasible. Instead, turn answers to Likert and multiple choice questions into data to gauge your team’s overall sentiment using data analytics.

If you ask open-ended questions, you could use a tool like Leapsome’s AI survey comment summaries . Our Natural Language Processor interprets qualitative survey results to give you a deep analysis of written responses.

How Leapsome enables HR professionals

‍ Human resource teams should be a vital part of any business’s big-picture strategies. With their input, organizations can strike an ideal balance between working toward ambitious company objectives and supporting team members.

To enable HR professionals to thrive as they take on more strategic roles within your organization, you need the right tools. Our people enablement platform is ideal for creating HR plans that are tailored to your specific business needs. We allow you to manage:

• Company-wide goals and OKRs
• Employee feedback and surveys
• Career advancement processes
• Onboarding, learning, and development
• People analytics

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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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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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Creating your strategic HR plan

What is an HR plan?

An HR plan provides a clear roadmap for HR professionals to deliver on their organization’s business goals. It encompasses the programs and plans around things like culture, tools, internal comms, hybrid/remote work, and benefits that the HR team owns. The introduction of an HR plan helps modern businesses prevent staffing shortages and surpluses—and ensures the best fit between employees and jobs.

HR plans consider your organization’s people today and forecast future work demands. With a clear HR plan, companies can remain productive and profitable. An HR plan supports the company’s business strategy for the coming year by ensuring a steady stream of skilled people is in place to keep everything on track.

Why is a strategic HR plan important?

Developing a strategic HR plan that connects your HR strategy with your broader business initiatives is invaluable. A strategic HR plan is a document that drives your business forward by evaluating where your workforce is at and comparing it to future needs. It sets out your organizational goals—and outlines how your HR team will help achieve them. 

A strategic HR plan requires your company’s HR department to act as a strategic rather than an administrative business function. And it demands HR’s active involvement in wider discussions throughout your business. In short, strategic planning for HR demonstrates how the HR function can support broad organizational initiatives and help your company thrive.

Planning your HR activity in this way and being proactive rather than reactive enables HR professionals to solve significant business challenges—from costly employee turnover to productivity pitfalls. And it helps to achieve organizational goals with strategic recruitment, compensation, talent management, and succession planning.

How to plan your HR strategy

Want to get HR a seat at the table? You need to be strategic. Set aside time to plan out your biggest goals for the year. This way, you can hit the ground running with all the facts, figures, and strategies you need to succeed.

Here’s a checklist to help you structure your strategic HR plan. You’ll need to block out some time to do this effectively, so make sure you allow yourself a few focused hours.

1. Ask the relevant questions

This first step is when you’ll define your priorities for creating an effective strategy that helps you reach your goals. Build a thorough overview of the organization’s challenges, opportunities, and capability gaps to plan how to overcome them during the year.

Ask yourself:

• What capabilities in the business need to be strengthened?
• Will these capabilities be improved through development or by hiring new talent?
• How does culture impact your HR goals ?
• What elements of your culture require bolstering?
• What tools, programs, comms, and strategies will be required to engage the organization at every level?

Gather as many facts and figures as you can, getting specific about teams, job roles, and territories

2. Do research

It’s also important to consider the world beyond your organization, including trends and factors to take into account when considering your strategic plan. This will involve some research via third-party organizations such as government, independent research bodies, and consultancies.

• Any new legal requirements or regulations to consider
• Demographic trends in your territories
• Social and technological changes in the short- and mid-term
• Political movements within your business footprint
• Salary expectations for business-critical roles

3. Plan your initiatives

Based on your priorities and the micro and macro trends, it’s now time to start planning what strategies, projects, and initiatives you’ll put into place to achieve your goals for the year:

• What hiring strategies, development , pipelining, training, and compensation will be required to achieve your goals?
• What external and internal resources will be required to implement your strategies and projects?
• What is the anticipated budget requirement?

4. Check-in with your stakeholders

Often you’ll need buy-in from different parts of the organization to achieve your goals. This means you need to represent to the C-suite what your team’s contributions will be to achieving business goals.

5. Measure and analyze

HR strategies live and die by their data and analytics, so it’s important to rigorously plan out how you intend to capture, measure, and analyze the effectiveness of your strategies to report back to stakeholders.

It could be useful to compare this data to any external data you can find from other organizations, for example, via case studies. Measurement metrics can be collected through the following steps:

• Identifying and measuring KPIs
• Determining the different kinds of data that will need and compare it with? to be gathered, such as qualitative, quantitative, and self-reported from employees and team leaders.
• Establishing how your statistics will be measured. What software or platforms will you gather, measure,and compare it with?

What are the benefits of strategic human resources planning?

Strategic planning for HR syncs your HR strategy with your broader business initiatives.

As an HR professional, taking a strategic approach to planning offers many benefits, like improving levels of engagement within your organization, attracting superior talent, and reducing turnover.

Strategic analysis helps you determine if your people have everything they need to be productive—and identify the need for added resources to enhance productivity where necessary.

Assessing your existing talent and auditing compensation , benefits, work environments, and levels of engagement helps you enact better policies and retain valued talent. And introducing development plans can further support people’s professional growth within your business.

Best practices for implementing an HR strategy

While there isn’t a right or wrong way to build a successful HR strategy, you can follow certain best practices when developing and implementing yours.

• Align your HR strategy to your business needs by activating your people and processes to reach the goals and growth outlined in your business strategy
• Know your budget and focus on strategic initiatives that fit within your organization’s budget
• Identify what success looks like, establish key performance indicators, and track progress against them over the year
• Focus on collaboration and involve your key stakeholders and other business partners across your organization to get their support, buy-in, and sign-off
• Drive engagement through communication and use multiple channels to encourage everyone in your organization to support your HR strategy 
• Measure your results in real-time and study what the data tells you to strengthen and reinforce your HR strategy with your stakeholders
• Monitor and adjust your HR strategy over time and revise it to achieve your desired results  

Your strategic HR plan template

Practical and actionable—HR professionals can use this strategic HR plan template to ensure their business is well-staffed and well-served.

1.   Look at your business—identify what you want to achieve

Start your strategic HR plan by establishing your current state, outlining what you’d like to achieve, and identifying the metrics to get you there. Focus on:

• Clarifying your overarching business strategy and goals
• Identifying the metrics related to your desired outcomes

2.   Look at your people—and identify their skill sets

Next, consider your people and their collective performance, productivity, and skill sets. Your HR plan will support your company’s business strategy for the coming year by ensuring a steady stream of skilled people is ready to keep everything on track.

3.   Do your people need anything?

A skills gap analysis will help you identify if your people could benefit from additional help, training, or resources to increase their productivity, knowledge, or abilities.

4.   Where do you shine?

Assess your work environments and levels of engagement and audit the compensation and benefits you offer. Understanding your current state of where you stand can help you retain the people you value—and compete for new talent in the job market.

5.   Grow your talent

Reviewing and understanding your current state allows HR professionals to look at their people, identify anyone ready to grow, and create a talent development plan.

6.   Leaving so soon?

Your HR plan supports your company’s business strategy by ensuring a steady stream of skilled people is ready to keep everything on track. If you’re seeing a high talent turnover, now’s the time to investigate what’s happening and why— finding out what’s causing people to leave and addressing the root cause of their unhappiness. 

7.   Looking ahead

  Succession planning can help HR professionals to reduce disruption. Identifying those people who could fill positions if they became vacant can smooth the way for people in the event of a sudden departure from the business.

8.   Make data-driven decisions

Use data and analytics to guide your strategic decision-making. You can access a wealth of information by analyzing your compensation history, turnover rates, levels of engagement, and other HR metrics.

9.   Where you’re going, why—and how

Developing mission and vision statements can help HR professionals stay on course as they implement a strategic HR plan. Refer to your mission and vision statements to check that you align with the broader business initiatives and connect with your strategic HR plan.

Documenting your strategic HR plan

HR strategy plans can be any length, but it’s helpful when thinking about writing an HR strategic plan to focus on clarity and simplicity so that HR leaders and the wider business can easily refer to the contents.

Try to be concise, relay the facts, and, where possible, use data visualizations to illustrate your point. By documenting your HR strategic plan, you also have a record of where you started and can course-correct where and when necessary as time passes.

Keep your mission and vision statements to hand as you deliver the organizational business goals outlined in your strategic HR plan. Referring to the statements often will ensure you align with the broader corporate strategy as you go.

What does a good HR strategy look like? 

While a business strategy outlines how a business will achieve its goals and growth, a good HR strategy creates the internal structures needed to activate people and processes to reach those goals. 

VaynerMedia

VaynerMedia is a mid-size marketing and advertising agency based in New York City, with additional offices in Los Angeles, London, Singapore, and Mexico City. The company’s strategy is all about people, putting human beings at the forefront of everything it does—ensuring its ideas and plans are culturally rich and consumer-led.

VaynerMedia approaches strategy with practicality, humility, and empathy and believes the most effective way to drive relevance and growth is by speaking specifically and differently to people based on who they are, by listening and understanding.

VaynerMedia is a perfect example of how an HR strategy can align seamlessly with a company’s broader business goals. Its people are not just its greatest asset—they’re a community. With an HRIS that manages the entire employee lifecycle, VaynerMedia puts its own people front and center and welcomes new hires into its positive culture and inclusive and friendly workplace.

Fiverr’s culture is built around its people-first perspective. The company’s mission is to change how the world works together, and it has fundamentally changed the way businesses and freelancers work with each other.

Fiverr prioritizes the individual members of its community and continuously strives to build an atmosphere of connection and inclusivity. The ‘people company’ loves its team members for who they are and celebrates their diverse backgrounds.

Fiverr’s HR strategy and mindset focus on the personal touch. With an HR team made up of 25 professionals, the company is dedicated to supporting its people. It sought a powerful HRIS to support its people throughout their entire employee lifecycle and provide a friendly and engaging way to communicate with its people worldwide.

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Following a period of growth in headcount and projects, Save the Children Italia decided to implement a modern HR platform to replace their spreadsheets and manual processes, modernize their performance management process, and create a sense of community for their people working remotely and in the field. They were passionate about moving from annual performance reviews to a continuous feedback model and replacing their top-down approach with 360-degree feedback for a more holistic and engaging experience.

At HiBob, we’ve built a modern HR platform designed for modern business needs—today and beyond.

An HR platform such as Bob offers a one-stop shop for all things HR. It sits at the center of your HR ecosystem, is fully customizable, and grows with your organization. 

For HR, it delivers automation of many common processes, allows greater oversight and visibility of the business, and centralizes all people data in a secure, user-friendly environment.

For managers, it provides access to data and insights to help them lead more effectively and streamline processes.

For employees, it’s the tools and information they need to connect, develop, and grow throughout their journey.  

In a short time, Bob can be deployed to enable communication, collaboration, and connectivity that drives stronger engagement, productivity, and business outcomes.

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Your HR Strategic Plan: Why You Need One and How to Create It

Aug 26, 2023 by The HR Team

An effective HR strategic plan is a necessity for organizations that want to thrive in today’s competitive environment.

Over the years, human resources (HR) has emerged as a critical strategic function, going far beyond traditional administrative tasks. Today’s HR department is the source for learning and development, talent acquisition, employee experience, organizational development, ethical conduct, and much more. As such, aligning human resources goals with business objectives has become critical for long-term business success in a competitive and ever-changing landscape.

In this article, we’ll explore the reasons your company needs an HR strategic plan , along with seven steps for creating an effective one.

A comprehensive, well-constructed hr plan offers robust benefits like these:.

• Business goals get a boost A strategic human resources plan aligns your human capital management efforts with your overall business objectives. It ensures that HR initiatives contribute directly to organizational growth, profitability, and sustainability. By integrating HR strategies with business strategies, it creates a powerful synergy that propels your company forward.
• Improved talent acquisition and retention In a talent-driven market, attracting and retaining top-tier employees is a paramount concern. An HR strategic plan outlines how to attract, hire, onboard, and retain the right people for your organization. It includes strategies for employer branding, recruitment, training, and development that help you build a strong, engaged workforce.
• Greater agility and nimbleness The business world is characterized by constant change, such as technological advancements, market fluctuations, and evolving customer preferences. An HR strategic plan equips your organization to adapt to these changes by fostering a culture of flexibility and innovation. It outlines how HR professionals will facilitate skill development, retraining, and reskilling efforts to keep your workforce informed and agile.
• A more engaged, productive workforce When team members are more involved and engaged with their work, their commitment, morale, and productivity are enhanced. An HR strategic plan includes initiatives that support employee engagement, such as performance management systems, feedback mechanisms, and wellness programs. These efforts contribute to a positive company culture and a more enjoyable work environment, which drives overall organizational success.
• Compliance and risk management are bolstered By integrating risk management and compliance considerations into HR strategies, businesses can proactively identify, mitigate, and address potential risks and ensure adherence to legal, ethical, and regulatory requirements. From contract management to data privacy and beyond, an HR strategic plan outlines how your company will adhere to labor laws and industry standards, reducing legal liabilities and reputational risks.

Creating Your HR Strategic Plan: Seven Steps for Success

• Conduct a comprehensive assessment Begin by evaluating your company’s current HR practices, strengths, weaknesses, opportunities, and threats. Gather data on employee demographics, performance metrics, turnover rates, and employee satisfaction. This assessment serves as the foundation for your strategic plan.  
• Define the objectives Based on your assessment, set clear and measurable HR objectives that align with your company’s goals. Whether it’s increasing employee retention rates, improving leadership development, or enhancing diversity and inclusion, ensure that your objectives are specific, achievable, and relevant.
• Develop strategies and initiatives For each objective, outline the strategies and initiatives you will undertake to achieve them. For example, if your goal is to enhance employee training and development, your initiatives might include creating a comprehensive training curriculum, investing in e-learning platforms, and implementing mentorship programs.
• Allocate resources Determine the budget, staffing, and technology requirements for each initiative. Adequate resource allocation is essential to ensure the successful execution of your HR strategic plan.
• Establish Key Performance Indicators (KPIs) Define KPIs that will help you measure the effectiveness of your initiatives. These metrics might include employee turnover rates, employee satisfaction scores, or how long it takes to fill open positions, for example.
• Implement and monitor Execute the HR initiatives according to your plan and closely monitor their progress. Regularly review your KPIs, gather feedback from employees and stakeholders, and make necessary adjustments to keep your plan on track.
• Review and fine-tune regularly The business landscape is ever-changing, so your HR strategic plan should not remain static. Conduct regular reviews of your plan’s effectiveness and modify it as needed to align with new business priorities and industry trends.

Throughout the development and execution of your plan, open communication across the entire organization is a necessity. Transparent communication builds buy-in from employees and leaders, fostering a positive, collaborative approach to achieving HR and business objectives.

Think of your HR strategic plan as a compass that guides your organization toward a prosperous future. By following the steps above, you can create an impactful plan that sets the stage for sustained growth and success.

The HR Team partners with organizations to develop smart HR strategic plans that drive positive outcomes. Contact us today to learn how we can help you craft a comprehensive strategic plan that responds to your unique needs.

  About The HR Team: Founded in 1996, The HR Team is a Maryland-based human resources outsourcing firm committed to developing strategic, customized solutions that respond to the unique needs and cultures of organizations of all types and sizes. Available as a one-source alternative to an in-house HR department or on an à la carte project basis, the company’s flexible service models address the full spectrum of HR needs that many organizations struggle to address. The HR Team helps clients achieve their highest level of success by providing value-driven human resources services that leave them time to focus on what they do best: directing business growth and profitability. H eadquartered in Columbia, Maryland, the firm serves all of Maryland, Washington, DC, and Virginia. To learn more about The HR Team, call 410.381.9700 or visit https://www.thehrteam.com/ .

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• Business Plans

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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Gary Tomlinson

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How to create an HR business plan that delivers

The word strategy comes from the Greek 'strategos' meaning generalship. In Greek mythology Athena the goddess of warfare and strategy is a guide leading people in the right direction.

The essence of strategy then is to provide a plan of direction to achieve the longer-term aims of the organisation.

So where does the new HRD begin with developing her HR strategy?

HR can help deliver better business performance

Five top tips for HR professionals

What do innovative HRDs have in common?

Step one: understanding the business

She must first know the terrain, resources, and current barriers if she is to develop a sustainable plan. Knowing the business as ever is key.

Sun Tzu in the Art of War , written 2,000 years ago, stated: "He will win who knows when to fight and when not to fight". The maxim encapsulating a profound lesson; before any action first know organisational strengths and weaknesses .

The HRD needs to look at all the data at their fingertips and that currently beyond her fingertips. This includes assessing factors such as workforce demographics, skills gaps, and employee engagement levels, plus big data insights or even simple coffee break chats- anything that tells them about the state the organisation is in.

For more clarity, a SWOT (strengths, weaknesses, opportunities and threats) analysis can provide structure and priority to the plethora of business data generated. The analysis should consider both internal and external factors such as the current workforce, organisational culture, market trends, and competition.

Step two: defining HR objectives

Dave Ulrich describes the purpose of strategic HR as being to turn business strategy into HR plans.

It does this by addressing the fundamental question: what are the major business goals HR must support?

To ensure alignment between HR plans and business objectives, it is important to involve key stakeholders in the planning process. Investing the time to conduct those discussions one-to-one will pay big dividends.

An appreciative nod here to McKinsey which refers to this approach as 'pre-wiring' i.e., conducting individual discussions before the group meeting to gain buy-in.

Providing the twin value of insights from the senior team and reducing the risk of adverse reactions later when presenting to the board.

Thereby (hopefully) avoiding hearing those pejorative words 'it’s an HR initiative'.

Step three: HR strategy

Between understanding the business state and agreeing collectively on HR objectives, exists the clear gap for potential improvement and how to achieve it.

So now the HRD can start to develop the strategic interventions to close that gap. These will differ depending on the organisation and the context. The initiatives can be divided into specific projects and resourcing teams to deliver those interventions.

Step four: communicating the 'why' of the strategy

It is also important to communicate the 'why' behind the plan to build support across the organisation. The HRD must articulate the reasons for implementing the plan and its benefits . By helping employees understand how the plan fits into the bigger picture to drive organisational success, she can build buy-in and support at all levels of the organisation.

Step five: implementation and monitoring

The strategy is implemented and now the plan meets reality. The HR plan that delivers must remain flexible at all times to feedback.

Lessons can be applied here from lean start up methodology on the 'minimal viable product' gaining maximum feedback from the least amount of effort.

Being sensitively acute to the feedback from all stakeholders on what is working and what needs a 'little tinkering' (or more) will ensure her plan truly delivers.

Gary Tomlinson is chief learning officer at Pando Training

Further reading

How to create a wellbeing strategy that works for all

Listen now: How to create an outcomes-based culture

Navigating talent management without clear strategies can be an opportunity

How to create a zero-waste office

How to create a diversity strategy that delivers

Stepping up: How to become an effective HR board director

How creating a culture that supports time-blindness can benefit your business

How to create a performance improvement plan fit for hybrid working and Gen Z

Use Human Resources Planning to Forecast for (Less) Risky Business

By Becky Simon | October 18, 2017 (updated July 21, 2021)

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No organization can afford the risk of a critical skills shortage. Human resource planning (HRP) helps to ensure that you have the right people on your team - those with the skills to compete, innovate, or grow your company.

How do you anticipate workforce needs in a business environment where the rate of change is increasing while the number of people with the right skills is shrinking? The answer is human resource planning. In this article, five experts share their perspectives on what’s needed to operate comfortably in rapidly changing times. While human resources (HR) forecasting isn’t an exact science, you’ll find ideas and processes, examples, and templates that you can use to forecast more confidently, manage operations, and take control to increase current and future profitability.

What Is the Meaning of Human Resource Planning?

Human resource planning, also known as workforce planning , helps organizations recruit, retain, and optimize the deployment of people needed to meet strategic business objectives and to respond to changes in the external environment. In order to proactively avoid talent shortages or surpluses and achieve a balance of talent based on need, effective human resource planning is an ongoing, systematic process.

Darrin Murriner is the author of Corporate Bravery , a field guide to eliminating fear-based decisions, and the Co-founder of Cloverleaf.me , a technology platform that helps business leaders and managers build thriving teams.

He says, “Human resource planning and organizational strategy connect at the hip. You can't deliver business strategy without making sure you have the right human capital you need in the right places for the task at hand.”

Smart companies get the human capital part right by implementing a tactical human resource plan that connects directly to organizational and human resource strategies.

Starbucks: Serving Up Human Resources Planning Derived from Mission and Strategy

Starbucks, the world’s largest coffee chain, recorded $21.3 billion in sales for 2016, ranking it at 131 on the 2017 Fortune 500. The company projects that it will reach $35 billion in sales by 2021 by opening 12,000 stores over the next five years , the majority of them in China. How do you plan human resources with such a massive growth goal? For Starbucks, their approach remains the same no matter where stores are located. Their human resource planning flows from its organizational strategy and its brand. People are Starbucks’ primary resource, as their mission clearly states: "Our mission: to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time." 

An important aspect of Starbucks’ human resource planning is its selection process, which uses specific interview techniques to determine if potential employees are ‘on brand’ and evaluate their skill sets. The company identifies capable company leaders and hires them using a program called "New Partner Orientation and Immersion." This human resources planning approach has led to the lowest employee turnover rate among quick-service restaurants. While most quick-serve restaurants range between 150 to 400 percent turnover, Starbucks’ rate is 65 percent . The company is always on the lookout for new employee perks and focuses energy on employee training, which includes an elaborate online portal that offers an instruction program imparting the necessary job knowledge.

The Difference Between Strategic Human Resources Planning and Human Resources Planning

“The war for talent around the world continues to grow.” says Matthew Burr, Moderator of the Upstate HR Podcast and Principal at Burr Consulting, LLC , a human resource consulting firm focused on small and medium organizations. To win the human capital competition, companies should use a strategic human resource plan as a roadmap to achieve three- to five-year goals. Strategic plans influence the development of tactical resource planning (Starbucks being a prime example). For example, a human resources strategic plan may include long-term aims to recruit and retain an excellent staff with a high-level of technical expertise. The tactical plan would include detailed action plans with completion due dates. For the strategic recruitment goals, the tactical program might consist of short-term goals, such as benchmarking salaries via survey data, or creating a social media campaign to identify and recruit technical professionals. The plan may also target filling IT positions through international recruiting.   

Both strategic and tactical human resource plans support the overall organizational strategy. To learn more about strategic human resources management, read Welcome to the HR Revolution: Strategic Human Resources Management .

Why Is It Important to Plan Human Resources?

Our world is increasingly one of swift technological change, constant product innovation, economic globalization, and generational and cultural shifts. Correspondingly, the life cycles of business designs and products are shortening. Companies must adapt. More than physical or financial capital, human capital efficiently adapts to this new reality. Simultaneously, human capital is at most significant risk of depreciation or obsolescence within a business — and that’s a risk that organizations can’t afford if they’re going to survive and thrive. In fact, only 12% of firms that were on the Fortune 500 list in 1955 remain on the list in 2016.

​“Talented people will always have options; Knowing succession plans, training, leadership development will be a tremendous asset to a growing firm,” adds Burr. “HR planning is critical to organizational strategy: We need subject matter experts and leaders to drive the strategy forward in evolving industries. HR planning plays a significant part in supporting strategy, as human resources are the biggest investment for any organization. Evolving laws and regulations also impact strategy internationally.  Staffing levels, recruitment and retention programs support scalability of any firm or organization.” 

Handrick says it’s all about planning for future growth. “Small businesses that are planning to open a physical or second location also need to think through their HR strategy. Most small businesses begin as sole proprietorships. They need to know when it makes sense to bring on staff, where that staff will work, their compensation, and how to offer benefits, perhaps by partnering with a professional employer organization (PEO).” 

• Improving Company Operations: Human capital management and resource planning is a driver for improved company operations and value creation. In July 2017, a group of institutional investors petitioned the Securities and Exchange Commission to disclose policies, practices, and performance of public companies’ human resources management . The petition signifies a move to use workforce analytics to measure the value of an organization’s most valuable asset in a knowledge-based economy .

“You need to work systemically,” says Adler. “Part of the operating plan has to be a workforce plan. HR has to make sure they have a place at the strategy and decision-making table. In my experience, I’ve seen that HR usually doesn’t get involved until it’s late. In this environment, you need to be moving at the speed of light and not the speed of sound.”

• The Talent Shortage and Demographic Change: In its 2016/2017 Talent Shortage Survey , the ManpowerGroup reported the highest worldwide talent shortage since 2007. Forty percent of employers are having difficulty filling positions, up from 38 percent in 2015. The Harvard Business Review article, Employers Aren’t Just Whining - the “Skills Gap” Is Real , states that “New technologies frequently require specific new skills that schools don’t teach and that labor markets don’t supply.”  At the same time, there’s a demographic change. In most developed economies, the ‘silver tsunami’ - the group of aging individuals that results from ebbing birth rates and graying baby boomers - is surging. The percentage of the U.S. workforce between the ages of 55 and 64 is growing faster than any other age group.
• Technological Change and The New Generation: Millennials now make up more than 50 percent of the current workforce — and will be 75 percent of the global workforce by 2020 . Human resources need to ride this rising tide and learn to welcome technological advancements to meet talent’s expectations and business requirements. Talent and workplace analytics will become customary, and organizations using the data will be far more competitive.
• Organizational Change: With technology driving change everywhere, organizations need to be nimble and often make significant changes in the way they do business. They also need to make changes with care. Research shows that change initiatives are more likely to fail because of poor communication, employee resistance, and failure to adequately prepare. Human resources are an integral part of change management , which is a systematic approach that applies tools, knowledge, and resources to deal with business transformation. The primary goal of change management is to successfully implement new processes, products, and business strategies while minimizing adverse outcomes. Effective change management includes and also goes beyond project management and involves leading the "people side" of the change equation. 
• Government/Legislative Changes: Each state has regulations that affect everything from employee criminal records checks, labor relations, records retention, and mileage reimbursements. Additional federal laws impact human resource management, too. Consequently, human resource professionals need to be conversant in dynamic employment law to minimize company liability. Not being on top of legislation can pose a significant risk to companies and expose them to expensive lawsuits or damage their brand, which can also be off-putting for potential hires.

Seven Steps to Human Resource Planning

There are seven different steps in the human resource planning process, but the pivot point is forecasting demand. That means that today’s human resources professionals need to have a well-rounded picture of their own company and a grasp of multiple factors to put together a plan. “Understanding the three- to five-year business strategy provides what HR must have to forecast workforce needs within the firm,” says Burr. “But there’s also a need to understand the global economy and potential growth options, laws, and regulations to add value to any HR strategy and forecast.”  

The seven steps to creating a human resource plan provide a roadmap for companies, but one size does not fit all. The amount of detail and which factors to include are different for every organization. Startup sole proprietorships working in a single geographic area will need to create an entirely different plan than a multinational enterprise. 

Step One: Analyze Organizational Objectives

Aligning HR practices to strategic objectives is fundamental to an effective human resources plan. In a perfect world, human resources management works hand in hand with other top managers so there is a clear understanding of ultimate goals, and then they focus on the human capital needed to meet them. It’s vital that the human resources plan encompasses every part of the company from product development to sales and expansion plans. 

HR Strategic Plan Template

If your company hasn’t written a strategic human resource plan, this template will help you get started. Modify the template to suit your specific needs or to focus on target areas such as benefits or retirement. Stakeholders will appreciate the basic design when they want to review important aspects of your plan.

‌ ‌Download HR Strategic Plan Template

Need more strategic planning templates to clarify goals for your organization? You can find more free strategic planning templates here . 

Step Two: Inventory Current Human Resources

If you have one, use the updated human resource information storage (HRIS) sys­tem to analyze the number of people you currently employ, along with their skills, perfor­mance, and potential. Once you determine which jobs need to be filled based on your forecast, you can then decide whether you have enough internal candidates to fill the job requirements or if you need to go to external sources or strategies to add staff. 

Employee Evaluation Template

If you don’t have an HRIS system, you can use this performance evaluation template for performance reviews and as a first step in referencing your current human resource inventory.  Adapt this easy-to-use form to gain a better understanding of the duties for each position by identifying gaps in performance and staffing when you review information in the aggregate. This template documents performance against set goals, employee evaluation, and professional development plans for the upcoming year.

Download Employee Evaluation Excel Template

Excel | Smartsheet

Step Three: Forecast Demand

Forecasting human resource demand involves estimating the number of future employees of the right quality and quantity, with a view to the company’s strategic plan over a given period of time. Forecasting demand is the most crucial part of human resource planning and the most daunting. It’s challenging for many reasons, and even more so because there are no absolute answers on how to accomplish it. 

There are two categories of forecasting methods: quantitative and qualitative. You can use both methods to track the work performance of the workforce as a whole, individuals, or business units. Qualitative reports contain anecdotal observations, while quantitative data is statistical or more data-driven. Select the methods that make the most sense in your environment. For example, in a non-manufacturing company, the work-study method which calculates the necessary working hours to produce units may not make sense. By gathering both quantitative and qualitative information, you can identify issues that are impacting your business's productivity, and then develop a well-rounded forecast to increase the company's efficiency, ensure you’re not over or understaffed, and understand future needs.

SWOT Matrix Template

The classic SWOT layout provides a clear view of your compiled findings as they relate to your human resources plan. The template also includes a column for rating the importance of each item by category so you can have a clear understanding of how the analysis elements compare and which will need the most attention. You can add Excel worksheets to hold supporting data and clarify the basis of your findings. 

Download Basic SWOT Matrix Template

If you’re looking for different formats in Excel, PowerPoint, or Word, you can find free SWOT templates here . 

Step Four: Estimate Gaps

With your forecast completed, you’ll have an understanding of future needs and if you will need to fill them with external workers hired full-time, part-time, or as contractors. If you have the right number of employees that don’t have the right skills, you can use training and development to upgrade employee skills to fill the gaps, or you may need to deploy workers in another role.

Employee Training Plan Template

Training is relevant for both employee success and team member retention. Though training takes time and effort, it's essential to have a plan in place to ensure a productive ramp-up period for new employees or existing employees who are learning the tasks and responsibilities of a new role. With this adaptable employee training schedule template, you can create training activities lists, add details about which team members need help to complete each task, track status, and provide a way for the manager and employee to enter feedback.  

Download Employee Training Template

Transition Plan Template

Moving team members to fill different roles can be the ideal solution to filling workforce gaps. When making these changes, ensure that you maintain the information and knowledge the employee had in the initial role. An employee transition plan keeps the information accessible and easy to share. You can also use this transition plan template to assist the person previously in the role train any new team members. Input every aspect of the role that will be useful in the present and future.

Download Transition Plan Excel Template

Step Five: Formulate the Human Resource Action Plan

The human resource plan relies on identifying deficits or surplus in the company. You’ll need to determine if you need to begin recruiting or training, transition, or develop voluntary retirement processes and redeployment in case of a surplus. Include priorities and critical planning issues in your plan.

Action Plan Template

This action plan template provides sections for goals, but you can add more sections to customize it to complete your human resources plan. Goals are translated into actionable steps that you can track to check progress. Assign start and end dates for each action, and take notes about each part of the plan. 

Download Action Plan Template

Word  | Smartsheet

Step Six: Integrating/Implementing the Plan

This is the most challenging aspect of any human resources plan. The organization often invests time and money on plans that are shelved and not utilized. Company executives need to grant buy-in, embrace the plan, and bring the organization on board. Overcome any potential employee resistance to the process by rolling in one aspect of the plan at a time to help employees acclimate to changes.    Staffing or Recruiting Plan Recruitment is one of the top responsibilities of any human resources team. Searching for, vetting, and finding the right talent to join your team are all crucial steps to ensure the success of your organization. Having a staffing plan in place makes your team aware of the available recruitment sources, hiring goals, and budget. Use this staffing plan to organize all staffing details with columns for budgets, hiring goals, status, and comments. 

‌ ‌Download Staffing Plan Excel Template

Candidate Screening Tracker

If you don’t have an automated system, you can track and manage applicants’ cover letters,  resumes, applications, and details about job openings. Tracking this information can be a lot of work depending on the size of the company and current hiring plan. Use this candidate tracker template to organize candidate documentation and details, and ensure that you provide a positive experience for candidates and people involved in the interview process. Track candidate contact information, phone interview questions and answers, status, comments, next steps, and more using this template.

Download Candidate Tracker Excel Template

Onboarding Plan Template

Onboarding ensures proper training and enculturation for new team members, and is also a powerful retention tool for any organization. Develop your own onboarding plan by using this template to plan activities at each stage of the process. Since a full year of onboarding is a best human resources practice, this spreadsheet shows tasks assigned to individual contacts over a twelve-month period. Add or remove columns to create a comprehensive onboarding plan.

Download Onboarding Plan Template

For more best practice information and free templates to support your human resources planning, read Top Excel Templates for Human Resources . 

Step Seven: Monitoring, Control, and Feedback

Strictly monitoring progress helps identify sticking points in your plan and helps you avoid making changes too quickly. It’s essential to compare actions to how the plan is being implemented to ensure fidelity. The human resource plan is an evergreen document that takes changing circumstances into account. Ongoing measurement, reporting, and continuous improvement efforts will keep the company moving towards its stated strategic goals. 

Project Management Dashboard Template

Monitoring all the changes you need to while executing a complicated human resources plan can be time consuming. With this customizable project management dashboard, you can compile every aspect of the process, share status information with management and other team members, and view the big picture at a glance.

‌ Download Excel Project Management Dashboard

Forecasting Is an Ongoing Process

“HRP plans should be reviewed annually, just after the business completes its strategic planning and forecasting for the year,” says Handrick. “For example, if the business plans to open an additional manufacturing location, or offer additional services requiring tech skills not currently in place, then HR will come along and provide estimates as to how many FTEs, what roles, and what kind of skills will be needed. HRP helps with the budgeting for the next fiscal year, and once approved can get to work filling those roles. In a fast-moving environment, HRP may need to be updated with every major change. For example, let's say your organization is project based and you just won a huge contract. Right away your HRP team will need to work with project managers to estimate staffing needs, whether temp or permanent, contract or hire.”

Human Resource Planning Round-Up: Best Practices and Expert Insights

Our experts share their thoughts on some additional issues to keep in mind as you develop your own plan:

• The Importance of Policy Planning: Company policy supports your human resources plan. Policies such as employment classification, benefits, compensation, performance, and improvement are designed to target not only the selection, training, and support of team members, but also to provide guidelines for conduct in and out of the work environment and many other aspects of employment.
• Social Media as Friend and Foe: Social media sites like LinkedIn and Twitter can be powerful recruiting platforms and a friendly, fun way to communicate with team members. However, they can also potentially be an issue when disgruntled employees or competitors get into negative commentary. It’s important to be alert to your company’s social media profile and to take corrective action when the buzz may not be favorable to your goals. 

Sharon Margules, MA, CPC, ACC and CEO of Margules Leadership Consulting says, “The ability of a business to achieve its strategy is largely based on the talent it has to execute. While market and competitive forces can significantly impact the capacity of an organization’s pursuit of its strategy, the explicit capabilities of those doing the work will determine if the result is a success or failure.”

• The “New” Human Resources Professional: “Ultimately, a good HR person is a good business person,” says Adler. “The best HR professionals are system and integration project managers who understand deadlines and highly complex projects. A great candidate has business experience in something other than HR. In my consulting work, I’ve told CEOs that they should look for HR managers with a business background. I think it’s an important consideration, particularly for large firms.”
• More About Markov Predictive Analysis Modeling: One of the most difficult analyses to execute and potentially one of the most valuable tools in forecasting is the Markov model. It’s not a quick fix, but for most mid-to-large companies, it’s worth the time investment to learn how to execute it. For a detailed explanation, read A Markov Model for Human Resources Supply Forecast Dividing the HR System into Subgroups . 
• Leadership and Succession Planning: “HR plays a critical role in enabling leadership, in mature or scaling organizations, to anticipate and understand the talent capabilities that will be necessary to meet their strategic objectives,” says Margules. She lists four items: 
• HR should have a seat at the table when the strategy is being conceived to align on what capabilities are needed, and by when, to realize the strategy.
• HR needs to influence progressive and aggressive budgeting for resource acquisition, training, coaching, and development every year.
• HR must institutionalize effective succession and talent planning practices at all levels, and build an adaptive organization that can flex its structure to optimize performance.
• HR must use far-reaching ideas to retain its key talent and sustain a highly-engaged workforce in a diverse and driven culture. 
• Plan Implementation: “HR plans should align with business strategy and annual plans and should be adaptive to a volatile and uncertain business climate,” says Margules. “While many organizations take a reactive, in-service approach to HR planning and determine their priorities and plans largely in support of annual plans, the most effective organizations are proactive: They anticipate needs and build plans that achieve short term and long term objectives. They adopt progressive practices such as allocating a portion of the staffing budget and resources to recruit and hire key talent for future-focused work. And, they have enough foresight to invest in high potential programs at multiple levels, entry-level accelerated development programs and coaching to build pools of qualified talent for future growth plans.”
• Buy HR Planning Tools or Do It Yourself? “The problem with traditional human resource planning is that it often hasn't supported the scalability of a growing business,” says Burr. “This is precisely why we have to consider new models for talent management, organizational design, and learning and development to ensure that our human resource planning processes can be flexible to meet the scaling needs of the business. This is part of the reason why you have seen an explosion of people analytics tools in the HR marketplace. It is to fill the demand for flexible and scalable models that provide the needed tools for business leaders to plan their people needs as the business grows.”  Adler concurs and says: “I think a spreadsheet can often do a better job. Workforce planning has been around a long time. I think the main point is to be proactive and less reactive in the planning process.”

Five Challenges to Human Resources Planning and Implementation

“People are naturally change- and-risk-averse. Planning and proper support by HR and the people they hire need to happen 100 percent of the time,” says Adler. More often than not, there are some challenges involved in human resources planning and implementation. Here are the five main hurdles:

• Forecasting Is an Imperfect Art: Human resource planning relies on forecasting and supply, which can never be a 100 percent accurate process. 
• Resistant Workforce: Employees may feel that their workload will increase, so they resist the process, or they may be uncomfortable altering familiar patterns in their work life and tasks.
• Ambiguity and Rapid Change: Uncertainties such as labor absenteeism, employee turnover, seasonal employment, technological changes and market fluctuations all affect planning.
• Inefficient Information Systems: Human resource information systems need to be reliable, comprehensive, and up to date. It makes it difficult to plan without good data about current employees.
• Cost and Time Factors: With all of the work hours involved in completing and repeating the seven steps, human resource planning is a time consuming and expensive process, so companies sometimes avoid it altogether, despite the benefits. 

A Look to the Future of Human Resources Planning

Here are some of the themes experts think will influence human resources professionals, their companies, and the people they hire in the near future:

• Going Global: Globalization, the export of U.S. jobs and the import of non-U.S. employees are already underway, as is offshoring (basing services or processes in different countries). “Globally planning can be complex for any HR professional,” says Burr. “It can be a stressful situation for offshoring and outsourcing of jobs within a firm. HR planning should involve a detailed assessment of the new location globally, the workforce demographics, industry competitors, laws and regulations and the potential impact on U.S. jobs. How do we communicate? How do we train? This will all vary by organization, but a strategic HR plan that communicates the information can lessen the impact. With a sound and detailed HR plan, recruiting, retaining and growing talent within the organization will be much easier.”   “Expect more offshore jobs, outsourcing and contract hiring because frankly they’re cheaper, and in many disciplines like finance, IT, marketing, can do the same work for less,” says Handrick. “Other than providing training for supervisors to manage off-site work teams, there's really no difference for HRP except where the line item goes on the plan. For instance, if you know you'll need 12 FTEs next year, and can get four of them offshore, that line item goes to 'expenses' rather than to 'salary' for the remaining eight.”
• More Technology: Social media will likely be in higher use to reach potential workers, particularly millennials who use Twitter, LinkedIn, and Facebook in their job hunts. Telecommuting and the use of social collaboration tools and video conferencing apps will keep people working and in touch with company culture. Emerging platforms will further streamline basic human resources functions to make onboarding and professional development more cost-effective and accessible from anywhere in the world for a virtual workforce.
• Big Data: Metrics and in-depth analysis of processes and people will become increasingly important in human resources as they are in other functional areas. Data- driven decision making is the future, as are metrics to show ROI in people and technology.  
• Security Issues: All this new technology brings up security concerns for employers and employee. Data breaches are a fact of life, and the threat to personal data security, company security, and supply chain risks will likely continue. 
• Health Care Costs: Costs are likely to continue increasing, since they have been rising steadily in the last several decades. New legislation will perhaps slow the costs of health care. In the meantime, strategies to lower employee healthcare costs will likely take the form of initiatives to improve employee health, and taking advantage of health reimbursement accounts (HRAs) that are consumer-driven or health savings accounts (HSAs).

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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HR Consulting Business Plan Template

Written by Dave Lavinsky

Human Resources Consulting Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their human resources consulting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an HR consulting business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an HR Consulting Business Plan?

A business plan provides a snapshot of your human resources consulting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an HR Consulting Firm

If you’re looking to start an HR consulting business or grow your existing business, you need to write your own business plan. A business plan will help you raise funding, if needed, and plan out the growth of your HR consulting business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Human Resources Consulting Businesses

With regards to funding, the main sources of funding for a human resources consulting business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the most common form of funding for a human resources consulting business. Personal savings and bank loans are the most common funding paths for HR consulting businesses.

Finish Your Business Plan Today!

If you want to start an HR consulting business or expand your current one, you need a business plan. Below we detail what should be included in your own business plan for an HR consulting firm.

Executive Summary

Your executive summary provides an introduction to your own business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of HR consulting business you are operating and its status. For example, are you a startup, do you have an HR consulting firm that you would like to grow, or are you operating human resources consulting firms in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the HR consulting industry. Discuss the type of HR consulting business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of HR consulting business you are operating.

For example, you might operate one of the following types of human resources consulting businesses:

• Human Capital Strategy : this type of business focuses on strategic matters such as corporate culture, diversity, and organization design.
• Compensation & Benefits: this type of business involves analyzing and consulting on all aspects of employee compensation, from base pay to secondary benefits, as well as pension and retirement.
• Talent Management: this type of business focuses primarily on recruitment and retention of talent, as well as on talent development.
• Professional Development: this type of business offers services ranging from leadership coaching and development to developing learning management systems.

In addition to explaining the type of HR consulting business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of websites launched, the types of sites developed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the HR industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the HR industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your HR consulting business plan:

• How big is the human resources industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your human resources consulting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your HR consulting business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: financial services companies, government entities, healthcare institutions, and technology companies.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of human resource consulting business you operate. Clearly, government entities would respond to different marketing promotions than technology companies, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most HR consulting businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

Finish Your HR Consulting Business Plan in 1 Day!

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other human resource consulting firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes more generalized management consultants or dedicated in-house HR teams.

With regards to direct competition, you want to describe the other HR consulting businesses with which you compete. Most likely, your direct competitors will be human resource consulting businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• Do they specialize in specific industries (i.e. healthcare, technology, etc.)?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide either a wider range or more specialized range of services?
• Will you offer virtual service options?
• Will you provide superior customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an human resource consulting business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of HR consulting company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to strategic consulting, will your HR consulting business provide compliance consulting?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your company. Document your location and mention how the location will impact your success. For example, will you operate from a physical office, or will you primarily interact with clients online and/or at their place of business? In this section, discuss how your location will affect the demand for your services.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Signs and billboards
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your HR consulting business, including marketing, providing consultations, building analytics processes, developing and presenting recommendations, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 50 th consulting contract, or when you hope to reach $X in revenue. It could also be when you expect to open an HR consulting business in a new location.  

Management Team

To demonstrate your HR consulting business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow your business.

Ideally you and/or your team members have direct experience in human resources and/or managing HR consulting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in Human Resources, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

In developing your income statement, you need to devise assumptions. For example, will you focus on one client at a time, or will you have teams working on multiple projects at once? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an hr consulting business:

• Office build-out
• Cost of buying or leasing a company vehicle
• Cost of office supplies such as computers and software
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office lease, any notable clients you’ve served, or an overview of the services you offer.  

Putting together a business plan for your HR consulting business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert HR consulting business plan; download it to PDF to show banks and investors. You will really understand the HR industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful HR consulting business.  

Don’t you wish there was a faster, easier way to finish your HR Consulting business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing service .

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5 Steps To Developing A Strategic HR Plan

by Amy Letke | Apr 18, 2018 | Blog

Amy Newbanks Letke, SPHR, GPHR, is the Founder of Integrity HR, Inc. Amy provides workplace solutions to improve performance, reduce liability and increase profits. She is passionate about helping other entrepreneurs and business owners achieve success. Contact us for more insights - 502-753-0970 or [email protected]

You’ve heard it before, and you’ll hear it again – every business needs a strategic plan.

The most successful companies develop and implement an effective strategic plan to help them pursue their organizational goals. But, even the best strategic plan won’t be very effective if the human resources function isn’t in alignment with it.

A Strategic HR Plan is a tool to help businesses align their organizational goals with their HR capabilities , and every business should have one in place to support the growth outlined in their strategic plan.

If you haven’t developed a Strategic HR Plan for your business (or if you’re still not quite sure what it is!), don’t worry!

Below we share our 5 Steps To Developing A Strategic HR Plan to help you effectively support and achieve your organization’s strategic goals.

If you’re interested in learning more about developing a  Strategic HR Plan  or a Strategic Plan for your business, schedule an appointment with one of our HR professionals or give us a call at 877-753-0970 .

What is a Strategic HR Plan?

A Strategic HR Plan helps organizations to align human resources to corporate strategy. It is an essential planning document built upon the corporate mission, vision, values, and goals established in the strategic business plan.

It provides information on how the HR function will support the goals and strategies of the organization, while also ensuring that HR planning and practices are consistent.

The ideal Strategic HR Plan outlines how the gaps between present and future capabilities will be addressed, enabling businesses to effectively pursue their company goals.

Why develop a Strategic HR Plan?

In most organizations, managers have a responsibility to fulfill expectations in the areas of corporate governance, transparency of policies, accountability, and economic efficiency.

For your business to be successful in these areas, you need to have the right people, with the right skills, in the right place, at the right time to carry out the strategy.

A comprehensive Strategic HR Plan will ensure that you have the capacity to deliver on strategy and the ability to monitor progress towards your organization’s goals. It should also establish:

• HR practices that are consistent across the organization
• Training and skill development policies that are linked to strategy
• Succession planning processes that identify and minimize capability risks

How do you create a Strategic HR Plan?

The process for developing a Strategic HR Plan begins by identifying where your organization is now in the life-cycle of an enterprise: the start-up stage, the growth stage, the mature stage, or the decline stage.

Once you’ve decided where your company is today, formulate a clear picture of your company’s future along with ways to get there. Your Strategic HR Plan will be built upon the foundation of this strategic business plan.

Step 1: Identify Future HR Needs

Using your business’ strategic plan as a guide, identify the future HR needs of the organization. Ask questions like:

• What is the nature of our work?
• What type of culture will support productivity?
• What skills do we need to deliver results?
• Where are those skills and how are we tapping into them?
• How large is our organization?
• What systems and processes do we need?
• How are we making sure peoples’ skills match our needs?
• What risks are associated with this future?

Step 2: Consider Present HR Capabilities

Now consider your company’s present HR situation by asking questions like:

• With the future in mind, what is our current capability?
• How are we doing against benchmarks?
• What are our strengths and weaknesses?
• Are there legislative requirements we need to consider?
• What are we doing well now, that we need to do more of in the future?
• Where do the risks lie?
• What HR issues may prevent us from getting to the future?
• What current systems will support or hinder our progress?

Step 3: Identify Gaps Between Future Needs & Present Capability

Compare your future HR needs from step 1 with your present HR capabilities from step 2, and identify any significant gaps that appear.

Gaps can develop in a number of areas including policies and procedures, capability, and resource allocation. Start with these questions:

• Where do significant gaps appear between the present and future?
• How can these gaps be classified?

Step 4: Formulate Gap Strategies

Next, work to develop strategies that will address the gaps you identified in Step 3. These gap strategies may affect:

• Job/Work Design
• Selection/Staffing
• Performance Management
• Compensation/Rewards
• Training/Development
• Employee Relations
• Safety and Health
• Workforce Diversity

Not all gaps will be of the same strategic importance, so you will need to set priorities for addressing them.

For example, imagine you discovered a need to update your HR information system. Investing in a new system would provide you with employee progress data that you deemed essential for your future company goals.

The need for an upgraded HR information system should be prioritized as urgent because it’s necessary to succeed in your long-term strategic plan.

Questions you can ask to help you determine the priority of your needs include:

• What are the top priorities?
• Where can we experience rapid progress?
• How do these strategies work with our budgets?
• What is the degree of change needed?

Step 5:  Share & Monitor The Plan

Sharing the Strategic HR Plan with your senior leadership and those connected to the HR function of your organization is a crucial component of its success. The more your team understands and supports the plan, the more empowered they will be to help the company achieve its goals.

It’s also important to monitor the progress of the Strategic HR Plan you develop and to communicate successes or modifications to your team.

At the very least, you should review the plan on an annual basis to verify that the goals on which the plan was based are still accurate and to make adjustments as needed.

Developing Your Plan

Developing a comprehensive Strategic HR Plan is an essential investment in helping your company achieve its goals.

A Strategic HR Plan aligns your corporate mission with your business plan, ensuring you have the capacity to deliver on strategy as you pursue your organization’s goals.

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Human Resource Planning Guide and Templates Every HR Team Needs

Posted 21 October, 2021 in Human Resources , Strategy

Businesses will demand more and more of Human Resources teams this year. It’s a big challenge – and opportunity – for HR Managers.

The face of the workplace has changed. Today's new normal is a hybrid workforce, operating a mixture of centralized and remote work. But more change is still to come.

Strategic priorities such as change management require dedicated focus, but key areas like employee engagement can’t be neglected. Managing the needs of the business as well as those of staff will call for careful balancing.

To juggle these conflicting demands, HR managers need a plan. Effective Human Resource planning charts the course for the year ahead. It makes it easier for organizations to recruit, retain and reinforce the strong workforce needed to achieve business goals.

In this article, we summarize the top things Human Resource Managers should focus on this year, outline the steps to creating an effective HR Plan, and share planning templates that are free for you to download.

Jump ahead:

The key HR priorities this year

How to create an effective hr plan, download human resource plan templates, 1. development and training.

The biggest priority for HR Managers, according to Gartner , is building critical skills and competencies. This is how successful organizations maximize workplace performance and maintain competitive advantage.

It’s an area where digital can really drive HR . Skills gaps and training needs can be readily identified, and customized development programs delivered – avoiding those stuffy meeting rooms and ‘one size fits all’ training.

2. Employee engagement

Engagement relies on connecting with employees. That’s why so many organizations have seen drops in engagement during times of remote work .

Staff isolated by geography experience disconnection with the company. The absence of regular in-person contact causes employees to feel more removed from their team, their managers, and the company.

Recent HR research proves using multiple communication channels to be more effective in engaging different groups of staff.

3. Change communications

Gartner reports that organizational design and change management is the second-highest priority for HR Managers. This has the potential to further destabilize already uncertain employees. Managing and communicating this is critical.

Managers and HR teams are flooded with questions from employees on the nature of these changes and how their role is affected. Strong, visible leadership is essential to maintain morale, ensure business continuity and protect the brand.

4. Recruiting and onboarding

Recruitment hasn’t ceased just because we’re working remotely. Far from it. But effective onboarding is more critical than ever.

With in-person onboarding, new hires would be welcomed to the organization with a tour of the facilities, introductions with key personnel, and shared social occasions, all designed to integrate them and make them feel comfortable.

Today’s online onboarding must replicate the benefits of in-person onboarding, but leverage the opportunities of the digital environment to create a richer, more immersive experience.

5. Health and wellbeing

Work is stressful, even under normal conditions. That’s why one million workers in the United States miss work every day due to stress. But combine this with the demands of remote working and restrictions of social isolation, and the impact on employee wellbeing is amplified.

Employees find themselves spending high amounts of screen time, taking fewer breaks, and neglecting exercise and nutrition. Left unresolved, these can seriously affect both physical wellness and psychological health.

6. Workplace culture

The importance of positive company culture is well understood. Companies with strong cultures saw a 400% increase in revenue growth. But how can strong company culture be fostered digitally?

Shared social and team-building experiences, the traditional foundation of workplace culture, are no longer possible. Without the personal touch of centralized workplaces, relationships require more effort to maintain.

There are three key stages to successfully preparing, creating, and executing your HR strategy: Plan, Implement, Track. Each stage includes information to gather and things to prepare from initial scoping through launching to staff to assessing performance.

While they can seem overwhelming at first, they are important to improve HR communication and ensure your plan achieves its objectives. A summary of these is shown here - and included in the downloadable planning checklist below.

Situation analysis – defining the current state of the business and the desired future state

HR objectives – confirming key Human Resources priorities with SMART goals

Strategic alignment – ensuring HR objectives support overall company goals

Resource requirements – summarizing what is available now and what is required to deliver to HR objectives (this could be people, capabilities, systems, or support)

Budget requirements – establishing funding requirements for additional resources in line with objectives

2. Implement

Timeline of activities – specifying the timeframe for goal achievements and setting major milestones to be met along the way

Communication plan – defining key messages to be delivered, audiences to be targeted and channels to be employed

Content creation – identifying any new process, policies, or training materials required

Plan B – confirming a contingency in the event of poor results or change in circumstances

Feedback mechanisms – introducing a way to track campaign performance, gauge employee sentiment, and identify focus areas for improvement

Regular reporting – setting a schedule to provide performance updates for staff and management

With so much for Human Resources Managers to consider when creating their plans, we've prepared some free downloadable templates to help. Access these through the form below and share them with your HR team. You'll receive:

Strategy guide   - Details on the 6 things your plan needs to succeed this year

Planning checklist   - Make sure your plan covers everything it needs to (including a plan B)

Activity schedule template   - Track all your goals and initiatives in this editable project management tool that works alongside the annual HR calendar

To get your free copy of each of these valuable resources, simply complete this form.

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More blogs by Michael Hartland

Michael Hartland is Content Marketing Manager at SnapComms - the market-leading provider of digital employee engagement solutions. Michael's most happy when writing. The beauty of language and the power of communication are his passions.

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• Start thinking about HR as a product
• Employee recognition and appreciation programs

1. Progression: The only way isn’t necessarily up

• A technical track, which is a very common thing for engineers;
• A managerial track, for employees who aspire to become managers;
• An entrepreneurial track, for people with more of a product mindset that get their energy from, for instance, creating efficiencies, automating things, or making a team more effective.   

2. Text-to-apply

3. Introducing platforms for collaborative work

4. hybrid workplace design.

• When employees come into the office, it’s to collaborate with colleagues.
• Meetings with clients or partners are another reason for people to come in.
• Surprisingly, the opposite is true too; employees also want to come to the office to do work that requires a deep focus. 
• The budget available. 
• The technology . Check if your company’s Wifi, laptops, cloud systems, video conferencing tools and other tools employees use are flexible and efficient enough or if they need an upgrade.
• Heating , lighting, and ventilation needs.
• Policy change. Shifting from a full-time in-office model to a hybrid way of working involves a change in existing work policies and, by extension, requires various official policy changes. 

5. HR Coaching

6. personalized, on-the-go learning through technology, 7. developing future-proof hr skills.

• Business acumen
• Data literacy
• Digital proficiency
• People advocacy
• Partner with data teams to find relevant data
• Strengthen their Excel skills
• Give them opportunities to share data in team meetings

8. VR for bias and soft skills training

• VR for bias training
• VR for soft skills training

9. Resilience training

10. start thinking about hr as a product.

11. Employee recognition and appreciation programs

• better employee relationships,
• lasting engagement,
• increased trust,
• productivity and performance,
• and tons of other positive things. 

On a final note   

Neelie Verlinden

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HR Business Plan: What Is It and Why Do You Need It?

As a business owner, it is not enough to only have a business plan in place. In order to have a business run smoothly from top to bottom, every department must have a business plan. One of the first departments to focus on is the Human Resources (HR) department. This is because many of the compliance functions and hiring decisions are made from this department. It is the heart of any business in many ways and, as such, it should be treated with importance.

Table of Contents

Why does every business need an hr business plan, why is your standard business plan not enough, steps to take to develop your hr business plan, the importance of examination and revision of your plan.

Just like a business needs a plan for success , so does the HR department. Real success for a business comes in the form of ensuring that all of the departments are working toward a common goal. The common goal is something that is outlined in the overall business plan. The department plan will look different for every department because they should all be working toward different goals, but at the end of the day, they should all still be working toward the ultimate goal of bringing the business together and making it better. Every business is different, and the HR business plan that is developed for one business may not be the exact same as it is for another business. As part of this process, it is important to analyze the needs of the specific business at hand. Another key component of this is that the Human Resources department should benchmark industry standards and requirements. Due to the heavy compliance requirements, this department is a bit different than many others within a business.

Another reason why it is so important to have an HR business plan is because every business wants to ensure compliance in all areas that require attention. The importance of this is that if this does not happen, the business could have a lot more trouble later on in the form of government fines or other penalties. Compliance is a big part of any business and HR department. If there is not a plan in place for things such as verifying that employees can legally work in the United States, minimum wage rules are met, and more, the business will be open to a lot of potential for risk. One way or another it will find you, and you will have to deal with it as a business if it is not kept up with from the beginning. By failing to take into account both the business and the regulatory needs of the department, you could be setting yourself up for failure before you even begin making your business profitable and successful. Do not make this mistake, like many other businesses have done, as it could end up costing you your business.

A common question during the process is, why is there a need for a separate plan for the HR department? A business plan is designed to outline the goals and processes for the business as a whole. It does not take into account how things should be managed by various departments. It is still important to have a business plan , but it should be understood that it is not a document that can take into account all of these other factors that are important to the growth of the business. If you take a look at your business plan, you will find that, most likely, aspects such as compliance requirements and regulations have not been included. There are many different parts of HR that need to be a priority for the department, and there should also be a plan in place to determine how the department will serve the business and the employees. This should not be included in the overall business plan because it would be out of place and it would not be directly tied to the department and the goals of that department. This is why it makes the most sense to ensure the two are separate with ties that bind them, and that the HR department has ownership of their plan.

Once the business plan is created, it is time to develop the HR business plan. To do this, it is important to ensure that all areas are examined and that the goals of the business plan are in line with the business. Use these steps to develop your own HR business plan for your business:

• Step One: Determine what is needed for the business from the HR department – It is imperative to know exactly what should come from the HR department. The following considerations should be outlined in your plan: the hiring needs for your employees, such as how many employees are needed at capacity and when to hire more people; onboarding schedules and orientation days to ensure employees are set up for success; employee performance reviews to document how employees are doing and when it is time to terminate (if applicable); payroll so everyone gets paid accurately and on time; and terminations. This is a good idea because there should not be a lot of time spent developing a plan for things that will not be handled by the HR department. As part of this process, it may be beneficial to develop a clear purpose and direction for the department. As part of the plan, there should be an outline for current requirements as well as a plan for future years and goals to work toward.
• Step Two: Understand and review all of the detailed job descriptions that are in place for employees in this department – Whatever the staff make-up is for the department, like an HR Assistant or an HR Manager, it is best to line up their job descriptions with the expectations of the department. As part of this examination process, if there are components of their job descriptions that are not being performed or are being underperformed that would add value to your company, they should be included in the HR business plan. Put it in writing that these are the goals of the roles and the department. It is also important to detail why they should be a part of the process. To ensure that there is nothing missing from this component of your HR business plan, it is also smart to review an HR department audit book or program.
• Step Three: Define specific HR functions – As part of this process, there may be some functions or action items that should be delegated to other departments because they make more sense. There may even be some that need to be added. Creating the right list of delegations within the department and the business helps to ensure that all departments are functioning to the best of their ability. If you have your HR department focusing on things such as providing the employee feedback, then you may want to delegate it to the department that makes more sense, such as management. There should not be any functions on the list that do not serve the needs of the business and the department.
• Step Four: Determine how other departments view the HR department – HR is the heart of a business and, as such, there should be a desire to gain an honest assessment of satisfaction of the department. This information can be gathered from other executives in the company as well as other employees. Find out what their experience has been with the department and how they perceive the actions of the department. As part of this feedback, there could be some services that are wanted by employees that are not currently offered by the department. Try to find out how the HR department can better support the mission, vision, and goals of the business. Develop some questions to go in a survey to all employees and then hold a meeting to discuss the results and encourage open and honest feedback. This feedback from the outside looking in can be very valuable to the department and will provide the added perspective needed to truly grow the company as well as the department simultaneously.
• Step Five: Get advice from other professionals in the field – While getting internal information and feedback is key, it can also be very beneficial to discuss the requirements of an HR department with other professionals in the field. There are entire organizations dedicated to HR and it can be easy to find recent published information from professional organizations in the field such as the Society for Human Resource Management (SHRM). Consider going to some local association meetings and talking to other professionals if you do not have connections with any in the area already. By looking at these things, it should be easy to develop a good scope of what the HR department should look like in terms of what the norms are in the field and assist with developing planning priorities.
• Step Six: Use the internal and external information to create an HR business plan that works for the business – Develop a list of priorities for the department and go into depth on some of these items. With everything laid out, the department can determine exactly what is a priority, what may need to be expanded in the department, and how to focus the efforts. With all of this information available there should be a lot to work with, but it is important to prioritize things so the plan is well organized and formulated. List the major functions, outline what is missing, and then go into detail. As part of the HR business plan, it is important to be very thorough in this process because there needs to be clear direction in all things that should be completed within the department.
• Step Seven: Re-delegate tasks – Now you have your HR business plan in place, re-delegate tasks to all members of the team to ensure that all components are captured and that you are moving in the right direction. It may take some time to get all of this down to a science in the department, but you will be on the right path in terms of how you want to run the department and the direction that you plan to go in over the next few years.

Once there is an HR business plan in place, the work is not over. Just like with a business plan, it is important to continue to revisit the HR business plan on a regular basis. As the business grows and as goals are met, there will be some components of the HR business plan that will need to be updated. The plan should outline how things will be run for a successful HR department, but it is not meant to be a static document. It is one that will grow with the company, meaning that it will need to be examined at least every two years. Sometimes there may be no need to make any changes while other times a lot of changes will need to be made. It will depend on a variety of factors such as whether or not the department has implemented new technology, whether or not employment laws have changed, and even how much the business has grown. As there are many factors that can play into this, it is important to ensure it remains a living document that is updated as needed.

Click here to create your human resources documents now .

More From Forbes

13 essential hr tactics to improve strategic management planning.

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Successful HR executives from Forbes Human Resources Council offer leadership and management insights.

Human resources departments must ensure that employees meet the needs of a business before they hire them. It's more than just determining if they're qualified — HR departments deal with ensuring those employees bring skills to the table that will improve the business. Because of this, HR departments have a crucial role in ensuring the company meets its obligations in the strategic management planning process. 

It's only through a combined effort where all stakeholders are aligned that a company can achieve its goals. Thirteen professionals from Forbes Human Resources Council touch on the essential approaches that HR departments can leverage to ensure that all parties are focused on the same goals.

Members explain how HR leaders can improve their strategic management planning.

1. Operationalize Workforce Planning

Use market research to identify which skills you may need, then operationalize that within your company. If you're planning an IT transformation project in two years, you should pipeline talent now, so you’re ready to hire before it starts. Talent pipelines will give you consistent access to qualified candidates who are ready to join when immediate needs arise. - Kim Pope , WilsonHCG

2. Understand The Primary Objectives

Understanding the three primary objectives of the organization's strategies matters. Identifying the key priorities will naturally drive alignment among talent, strategic objectives and results. Often, HR professionals overlook the importance of focusing on the key issues that the organization would like the talent to solve. - William Ng , Bed Bath & Beyond

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3. Solidify Buy-In From Decision-Makers

Once the strategic management plan is designed, ensure the decision-makers are ready for the implementation. Change is difficult. On the surface, the CEO may be supportive, but when things no longer work the way they used to, will your strategy genuinely be supported? Recognize that new strategies will have potholes here and there. Ensure that decision-makers are committed. - Patricia Sharkey , IMI People

Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?

4. Tie It To The Overarching Business Strategy

Just as human capital strategy needs to be aligned to the business strategy, so, too, the strategic workforce planning must be linked to that overarching business strategy. Talent (along with finance and marketing) are the three legs of the stool necessary for successful operations. Processes must project future needs, and hiring must seek the skills and capabilities of tomorrow. - Russell Klosk , Accenture

5. Review Your Interviewing Process

Review the overall interviewing process as a team so that every interaction with the candidate brings new insights and educates the candidate about the company. Developing a feedback-based interview framework will ensure a consistent interviewing process — assess candidates from multiple perspectives and determine how the candidates can contribute to the culture of cohesiveness and inclusion. - Rachel Lyubovitzky , EverythingBenefits

6. Ensure Diversity Of Thought

Processes of any type can benefit from a diversity of thought. If everyone starts off aligned from the beginning, this should be a red flag that there may not be room for dissenting views. Encourage those who are sometimes hesitant to speak up and share. - Sherrie Suski , Tricon American Homes

7. Get The Voice Of The Employee

It is important to ensure in your strategic planning process that not all the participants voice only the management's view. Getting the voice of the people who are at the ground zero of where work happens and are closer to your customers, included in the management planning process can ensure that it does not devolve into just planning for dollars and cents. - Srikant Chellappa , Engagedly | Mentoring Complete

8. Future-Proof Your Plan

There's no question that companies will have immediate needs to fill in any given year; however, any strategic planning process should incorporate future-proofing your workforce by hiring candidates who will meet the future demands of the business. Employers can do this in many different ways, but one of my favorites is to consider partnering with an educational institution focused on next-gen talent. - Dr. Timothy J. Giardino , BMC Software

9. Conduct A SWOT Analysis

A SWOT analysis is an important tool for HR to consider when setting up or improving the strategic management process to include the entire workforce. The process must begin with an insight of the overall strategic initiatives to assess the current workforce and future workforce competencies to identify gaps, develop and implement talent plans, and continually evaluate and monitor for agility to pivot. - Sherry Martin , Colorado Department of Human Services (CDHS)

10. Clarify The Mission And Vision

Invest the time upfront to gather and analyze all pertinent information before setting strategic planning goals and implementing strategy. Do not move forward until all stakeholders have bought into the plan. No evaluation and control tools will be able to save you if you're executing a strategy that does not align the mission and vision of the business. - Bryan Passman , Hunter + Esquire

11. Slow Down To Go Fast

Slow your hiring managers down. All too often, managers and leaders will throw bodies at a problem, rather than thinking it through. Take a step back, work with them to craft a thoughtful business and organizational plan, and then carefully consider what skill sets are truly needed to get the job done. And then take the time to hire the best! - Tracy Cote , Zenefits

12. Keep Employees Engaged

As HR develops and plans the company’s business strategy, it’s important to keep employees engaged as to what the strategy will be and how it should be implemented. By soliciting employee feedback, ideas and suggestions, HR can get a better feel for what will work and what won’t from those who will ultimately execute the strategy, as well as how best to lead and communicate changes. - John Feldmann , Insperity

13. Use Experienced Recruiters

Despite an MBA, marketing skills and being very familiar with my product, I admittedly have poor skills in sensing who upon an interview makes a good salesperson or programmer. It wasn't until I hired experienced senior executives in these areas, who in turn used assessments they trusted to verify aptitudes and knowledge, did we have a consistent record of successful hires. - Eric Friedman , eSkill

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Home › Insights › Creating a People Plan for 2023

NEWS & RESOURCES

• January 18, 2023
• | Health & Wellbeing , Performance , Strategic HR

Creating a People Plan for 2023

Creating a detailed people plan is integral to business success. It’s crucial for businesses to regularly review and update their business and people plans to ensure they remain aligned with current goals and challenges.

In this article, we explore how to create an effective people plan that drives success through your employees.

Responding to new challenges and opportunities

Although economic challenges like rising inflation and the threat of a recession can create uncertainty, they also present opportunities that can positively impact your organisation.

Having a business strategy that addresses both challenges and opportunities will be key, and from this, setting out how you will achieve success through your people will be essential.

Business Plan

For many businesses, the focus continues to be on rebuilding and becoming stronger after periods of disruption. While business plans may have been clearly articulated in previous years, ongoing uncertainty and changing conditions make it essential to regularly review and update these plans to stay resilient and adaptable.

We also continue to see more focus and attention being given to climate change and the need for organisations to work greener and sustainably. Business plans should therefore be reviewed and updated and reflect how businesses operate in an economic, social and environmental way.

People Plan

You cannot have a business plan without a people plan and vice versa; they go hand in hand. Having a clearly articulated people plan will have a positive and direct impact on how the company delivers and achieves its goals. A clearly defined people plan will ensure you have the right structure, resource, and skills in place to be able to deliver on the business plan.

If the business plan is reviewed and updated, then so should the people plan .

When creating a people plan, the priority is to fully understand the needs of the business for the year ahead and the goals that have been set. Examining the strengths and weaknesses from a human resource perspective is necessary before considering where the opportunities and threats lie.

From there, taking the whole employment lifecycle will be a good approach to methodically identifying how you can achieve success through people.

We have seen since 2020, how hybrid working and being more environmentally aware has become higher on the agenda; both for employers and employees. These two issues are likely to continue to be a focus moving forward and are likely to be worth addressing in the people plan.

Organisational Structure

Here’s the evergreen version of the content:

Covid-19 led to significant changes in customer needs and reinforced the need for businesses to operate differently, with a greater focus on technology. To ensure continued success, it’s crucial to have a deep understanding of whether your organisation’s structure is fit for purpose in light of ongoing external challenges.

So, having your business goals in mind; consider the following questions regarding your people:

• Is your existing structure financially viable?
• Are there any roles in the current structure that carry out activities better suited elsewhere?
• Are any of the roles over stretched and/or are there roles underutilized?
• Do you have enough resource to be able to accomplish the work or are you over resourced?
• Do existing reporting lines ensure efficient ways of working or are there any roles better suited under the responsibility elsewhere in the business?
• Do you have the right skills in the right job roles?
• Do you have sufficient flexibility within the workforce to be able to adapt quickly?
• Are there any skill gaps in the existing structure? If so, to what extent is the gap?
• Have you considered what roles you will need in the future and what may be needed by way of succession planning?
• Are there any functions that could be brought in from outside?
• Do you anticipate recruiting from outside the UK?

Possible actions available:

• Restructuring the business to ensure it is aligned to business needs, challenges, and opportunities ahead. Restructuring may or may not include a need for carrying out redundancies.
• Outsourcing to make cost efficiencies and to buy in expertise.
• Upskilling existing workforce.
• Adopting a temporary 4-day operating week.
• Review job descriptions and competencies.
• Conduct performance reviews to identify untapped skills.
• Identify roles and the extent to which they may be worked flexibly, or remotely on a more permanent basis.
• Identify clear development paths within the structure that enables growth from within as well as act as a tool for employee engagement.

Recruitment and Attraction

If you have identified the need for additional resource, then you should factor into your planning the opportunities and challenges that may be relevant to your business, especially as recruitment has been impacted significantly with the UK leaving the EU.

Whilst the country is back to hiring levels pre pandemic and there are a record number of job vacancies there does remain skill shortages leading to recruitment struggles. We are not seeing enough applications for the volume of vacancies and so it is very much a tough labour market.

Your recruitment and attraction strategy is therefore vital:

• Utilising social media, such as LinkedIn to attract new recruits; this can be cost effective as well as enabling you to act quickly when you need to respond fast in the pandemic.
• Because of the tough labour market and lower levels of job applicants, you will want to focus on candidate attraction so considering the Employee Value Proposition (EVP) that your organisation can offer will be really important.
• Your EVP is the unique set of benefits that an employee receives in return for the skills, capabilities and experiences they bring to the organisation. The ability to accurately define your own organisations’ EVP can enable you to effectively attract the best talent but also help you to retain the best.
• Now could be the opportunity to seek new recruits on flexible arrangements, enabling you to operate in a more agile. For instance, consider not only how the hours for the vacant role are to be worked, but also, what is the best type of contract to use for your business.
• Using fixed term contracts help if you are unable to commit to longer term work. Annualised contracts help if you can predict quiet and busy periods for the business and therefore have resource in place at the right time. Using term time contracts will give you access to more candidates by widening the recruitment pool encouraging working parents and disabled applicants to apply. It will also encourage the workplace to become more diverse.
• It costs to recruit; and recruitment costs will increase even more so if you recruit from outside the UK as all employers must now become a Home Office sponsor to be able to recruit from the EU as well as the rest of the world.
• Budgeting costs will be important as well as review recruitment processes.

Retaining employees will be key. Employee retention leads to greater employee knowledge, skills and experience and provides stability. All of which will help drive the business forward and rebuild.

If you anticipate a need to recruit, then consider whether your current induction and onboarding processes are fit for purpose. Research carried out by CV-Library reported that 22% of new recruits left a job during or at the end of their probation period, with the main reason due to the role not being as expected.

Remember too, that with a tough labour market and low level applicant numbers, making sure you hold on to those who are new is vital and the onboarding plan will help you achieve this.

Having clear job descriptions and a clear onboarding plan with a clear overview of what is expected of your new starter in their role is essential for their level of engagement as well as keeping them challenged. All of which will ultimately lead to job satisfaction.

Employee Development

Training and investing in your workforce may feel like an unnecessary expense when the UK is in a recession, but it will be essential to boosting productivity and retaining loyal employees and rebuilding your business.

Effective training and continued professional development (CPD) lead to effective performance and a workforce that can take on new challenges and changes. Training and development can also act as a great motivator, helping reduce staff turnover, which again will be key this year, as well as being a good attraction offering when recruiting.

Furthermore, by having clear development paths and succession planning in place, it can help your workforce to grow and develop and drive employee engagement.

For training to be effective and add value, it must align to the overall business plan. When reviewing your  training needs, consider:

• Will there be any new products or services launched?
• Do you want to enter new markets or seek new clients?
• Are you introducing new technology, equipment or working practices?
• Is there any legislation coming in that affects your industry or employment in general?
• Do you need to recruit more people, or do you anticipate a need to reduce headcount?
• Is your business regulated and therefore do you need to upskill to maintain compliance to any business standards?

Once you have considered the direction your business is heading in, consider how training will be delivered.

• How can you make best use of e-learning, will e-learning work on its own or will you need to supplement it with other types of training?
• How can you deliver classroom training virtually?

As part of your planning, you will also need to consider how you can bridge the development gap that will have materialised since the start of the pandemic.

Employee Pay and Reward

Pay and reward is an essential part of the employment relationship. In your people planning, consider whether your pay and reward structure is appropriate and fit for purpose.

Having the right reward package helps to attract, retain, and motivate the right calibre of employee.

Retaining your employees is going to be key for rebuilding your business as you need stability as well as benefiting from having a workforce that holds a great amount of business knowledge and experience.

If you are anticipating recruitment, then it will be important to be aware of what your competitors offer. Benchmarking is an excellent way of evaluating your reward package to see how you compare with other organisations.

This data can then be helpful in reviewing what you currently offer.

In terms of employee benefits, we expect benefits such as income protection, health insurance, life insurance and increased holiday, to be sought after. The psychological impact of Covid-19 has been significant and perhaps the last year and a half has reminded people of the importance and need to safeguard their future and finances for themselves and their family.

Building a benefit offering that includes these benefits is therefore likely to lead to a high impact on morale, help retain your staff as well as prove to be a selling point when recruiting.

Employee Relations

Employee relations is about the relationship between employer and employee. This can be either individual workplace relationships between an employee and the employer or a collective workplace relationship, typically derived from a unionised environment or one which has information and consultation forums.

How you communicate with and involve employees in work matters is key for maintaining good work relationships. Poor relations lead to conflict, which in turn can lead to grievances and even resignations and employment tribunals, so maintaining a healthy employee relations environment is vital to ensuring business success.

For employees, there are the challenges that come from caring responsibilities, increased work demands as well as the psychological impact the that the pandemic has on families, individuals, and mental health. It therefore makes it even more so important to consult and communicate with employees regularly, to ensure that people’s views are taken on board.

If you identify that the employee relations environment needs to be part of your People Plan, then consideration could be given to:

• Offer multiple, confidential reporting channels to your employees.
• Facilitate a trustworthy open-door approach.
• Give your employees access to anonymous reporting.
• Consider whether introducing, or re-drawing attention to, an Employee Assistance Programme can help drive a better employee relations environment.
• Consider team dynamics and where there are challenges, look at team building measures to improve and develop the team and alleviate any conflict.

Looking after your people

Given the past three years and continued anxiety surrounding the pandemic, looking after your people should continue to be core to your people plan. According to Mind, the charity for mental health, they report that some of the feelings people have reported to them during the pandemic include feelings of isolation, unsupported, scared, tired, and low.

For employers, it is important to recognise that these feelings are serious and real to the individual and having a range of support measures will help them to regain an effective work life balance and provide reassurances about returning/remaining in the workplace. Having an engaged and well supported workforce will help the business to move forward and rebuild.

Build into your people plan how you will focus on the wellbeing of your employees, because even though there is optimism with now having a vaccine, it will continue to be very difficult for people whilst the programme is rolled out. Some things to consider:

• Introducing mental health first aiders in the workplace.
• Reviewing your existing Employee Assistance Programme to ensure it remains fit for purpose/or if no provision in place, consider implementing.
• Look at the way in which your organisation communicates with its employees and adapt as necessary, ensuring regular open communication is at the heart of any communication strategy.
• Review your current offering in terms of sick pay and associated benefits, such as income protection schemes.

New ways of working

We have seen that the world of work has changed. We have already needed to change the physical set up of our workspace, but what do we need to do more broadly to retain competitive advantage and come out of this unprecedented period more successful?

Whilst many people are still employed in traditional full-time jobs with one employer, exploring how the business can utilise technology and create a more atypical form of workplace may allow businesses to continue re-building in a way that means they can become more competitive and successful.

It’s likely that we will continue to see new ways of working being adopted. Consideration could therefore be given to:

• Carry out a job analysis in which to gather information about the organisations job roles to be able to identify refining roles making them more efficient and how they can utilise technology further. Job analysis collects information about duties, responsibilities, necessary skills, outcomes and looks at the work environment.
• Undertake a review of how the organisation can become more flexible through its people by reviewing the types of contracts of employment in use and whether you can become a more flexible environment for existing staff by encouraging and welcoming flexible working applications.
• Types of contracts that could be considered include fixed term, for work where you are unable to commit long term, annualised hours for those roles where the work is sporadic throughout the year and you want a more efficient way of managing your resource, part time working including term time enabling you to have set periods of cover during the year.
• Consider whether the organisation will benefit from cross training the workforce to make it more adaptable and flexible to respond to challenging and changing customer needs. Not only will it make you quicker to adapt to current external challenges, but it can build better collaboration, improve efficiency and lead to improved employee motivation.

The impact of work on the environment

COP26 was all about how every nation could meet the Paris agreement of ensuring global temperatures do not rise more than 1.5°, but how can employers carry out their part in tackling climate change?

Well, employers can help tackle climate change by developing greener working practices and policies that form a key part of the employment relationship. Such as:

• Introduce a corporate social responsibility policy.
• Introduce an Environmental policy.
• Look at whether you can offer electric company cars, and have onsite charge points.
• Examine your commuting and business travel policies.
• Whether your health and safety systems can be more efficient.
• Look at your own procurement practices.

Diversity and Inclusion

Examining your working practices to allow it to become more flexible also presents an opportunity for the organisation to become more diverse and inclusive. Having a more diverse workforce not only enables you to have more diverse views and ideas amongst the workforce, but it can lead to increased creativity and productivity.

A report by the Equality Commission (Is Britain Fairer) found that only 1 in 10 FTSE 100 executive directors is a woman and that around 42% of women in employment are part time compared with just 13% of men.

So, apart from the legal case for managing a flexible workforce and recruiting for more flexible roles, the company can not only avoid discrimination claims, but there is also the moral case of ensuring the organisation builds a diverse and inclusive workplace for all, regardless of gender.

Ways in which you could build a more diverse and inclusive workforce:

• Review recruitment practices to ensure that any bias or discrimination can be eliminated. This could include blind screening of applications, so the application is based purely on skills and experience, standardise recruitment processes and structured skill-based interviewing questions.
• Review your recruitment sources to ensure you advertise in a wide range of mediums to reach out to a diverse group as possible. Mandatory diversity training for everyone who is involved in your organisation’s recruitment.

Leaving Employment

If retaining employees is a challenge either for your sector, or your business itself, then exit interviews are a valuable tool to help an organisation to understand more about the reasons for why people leave.

The data that comes from the exit interview provides an insight from the employee’s perspective, about what works well in the business, and where there may be challenges.

Formulating a People Plan

A people plan focuses on setting out your vision for the organisation and its people for the year ahead to address the company’s most pressing challenges. It is important that it integrates with the organisation’s business plan.

For example, if you have relied heavily on the past on recruiting EU nationals, then with the changes to recruitment practices following Brexit, this will no doubt be high on the agenda for how the company addresses this challenge.

As we continue in the pandemic and continue to work remotely, it may be the business needs to explore further opportunities to make working processes more efficient through technology.

In this case, not only will the business have to manage the practical implementation, but from a people perspective the HR function will need to consider what training is required; which roles are affected; and whether the introduction of new technology and skill sets leads to a business case for reviewing pay.

You can download a people plan template to map out key people activities from our HR Document Shop .

We’re here to help

If you need guidance on crafting a robust people plan or assistance with your HR needs, contact us on 0844 324 5840 or get in touch with us through our contact form.

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25 HR Video Ideas to Help You Recruit and Retain Employees

Hiring & People

(Updated 09-05-2024)

The Video Advantage: Trends & Strategies for Content Marketers 2024

Whether you’re a seasoned marketer or just starting out, staying ahead of the curve is crucial. This ebook is designed to help you take advantage of the biggest content and video trends this year.

Imagine if every great job candidate you wanted to hire received five offers from competing companies.

The competition for top talent is fierce — and this is only one of the key struggles that your HR team is facing today.

Not only are they responsible for recruitment, onboarding & training, and building an amazing employer brand, but also engaging your employees. Even for large HR teams, each of these areas is becoming more challenging by the day:

• 74% of recruiters out there faced hiring competition in recent years, according to Jobvite.
• When it comes to onboarding , as much as 20% of staff turnover occurs within the first 45 days of employment because of ineffective employee integration.
• More than half of employees are becoming disengaged at work, highlighting that there’s an internal communication problem.

HR teams need a simple solution that can help them streamline their communication to different audiences, in a dynamic and engaging way.

That solution is video.

HR videos help improve recruitment, onboarding, and communication processes effectively

Hands down, video is the most effective, engaging, and enticing way to present information. In fact, audiences retain up to 95% of what they learn this way, compared to just 10% from reading text.

That makes it an incredible tool to help improve processes like recruitment, employee onboarding , or internal communication. The goal of these processes is to get people up to speed on knowledge of a new job or retain new information, which means the better you can engage them, the more effective your message will get across.

With video, you can get your employees and new hires in the loop, engaged, and excited much more quickly than with dull, traditional onboarding documents and packages.

What’s more, video is Millennials’ and Gen Z’s preferred type of content . By prioritizing video, you’re able to deliver messages in their favorite format, making your audience more likely to take notice.

But if you’re new to making human resources videos, even deciding where to begin can feel overwhelming. Tools like PlayPlay make producing videos fast and easy, but what if you’re not sure what you actually want to say?

That’s why we’ve rounded up the best video ideas for your human resources team to try out. From recruiting to talent management to workforce planning, we’ve included a video for every stage of the employee journey, such as:

• Company Culture Videos
• ‘Meet the Team’ Videos
• ‘Meet the CEO’ Videos
• Company Tour or Day-in-the-life Videos
• ‘You’re Hired’ Videos
• Corporate Presentation Videos
• ‘How to Set Up Your Work Tools’ Videos
• Key Training Videos
• Company Policy Videos
• Company Event Promotion Videos
• Tips Videos
• Internal Job Postings
• Employee Testimonials
• Employee Wellness Videos
• ‘What is…?’ Videos
• Employee Appreciation videos
• Company Event Recaps
• Company Perks Videos
• ‘Happy Holidays’ videos
• Company FAQ Videos
• Software and Hardware Tutorials
• Company Values Videos
• Onboarding Videos

Keep reading to see 25 of our best HR video ideas, along with real, stellar examples to get you inspired . You’ll have top-notch employee engagement, organizational development, and employer branding social media content ideas in no time!

25 HR Video Inspirations to Help You Communicate Better

1. company culture videos help you stand out.

What is your company all about? What values does it stand for? What do you believe makes a great workplace, and what steps are you taking to create it? If your company was introducing itself at a party, what would it say?

That’s essentially what a company culture video is — a quick, entertaining first look into what makes your company a wonderful place to work . Include your employees to show real people speaking authentically about their experience, making sure the interviews don't sound stiff or overly scripted.

Company culture videos have many possible uses, but they’re particularly useful for recruitment. In just a few minutes, candidates will get a sense of what your company cares about, and whether they’d be a good fit. That helps you work towards lower turnover, better hiring processes, and retaining your best people.

In this Hubspot video, we see employees interacting in a relaxed, collaborative way at their offices. By bringing together workplace footage with voiceovers and employee testimonials, Hubspot shows candidates what it would be like to be part of their company culture and how to make a recruitment video .

2. ‘Meet the team’ videos to help break the ice

When you feel more at ease during your onboarding, it’s much easier to collaborate with your new team members. That’s where Meet The Team videos come in! Imagine if you could begin your next position already knowing who you’d be working with — how much more comfortable and reassured would you feel?

A video introducing people’s names, skills, and responsibilities might not sound very exciting, but these videos are at their best when they’re relaxed, real, and unfiltered. Try letting your employees speak naturally about themselves and their day-to-day lives. Then, you can pick out the most charming parts and edit them into one engaging video.

In this example, we get to meet senior Canva employees through authentic interviews and learn about their company, their roles, and what they love about the workplace,

3. ‘Meet the CEO’ videos can inspire candidates and stakeholders

The CEO is the big decision-maker, who keeps things ticking at your company. No matter how friendly and approachable they are, all that influence can be a little intimidating! But they can also be highly inspirational figures.

That’s why video is such a great way to help your team, stakeholders, or prospective employees get to know the CEO . By building up some rapport through video, collaborating will be easier, more comfortable, and more productive when it’s needed, either in person or virtually. Also, your CEO helps personify the visions and missions of your company, which can inspire new candidates for recruitment .

And there’s no need for your CEO to go on and on about themselves (unless they want to, that is). Having your CEO discuss a topic they’re passionate about can provide just as much of a window into their personality and expertise.

4. Show off your company with a tour or ‘day-in-the-life-of’ videos

Sometimes, the best way to get to know a company is to actually see them at work. Why not take your viewers along with you on an actual tour of your company ?

This can work especially well if you have an interesting or unique facility, such as the motor manufacturing plant in this video from Hyundai. You can go further than showing viewers around your space — why not walk them through what a day hard at work actually looks like in your world?

Company tour videos are a great way to pull back the curtain, highlight the cool stuff, and show your people what really goes on behind the scenes at your company.

5. Use ‘You’re hired’ videos to create excitement

A job candidate can always get cold feet and change their minds, even if you’ve told them that they’re perfect for the job.

Alongside your email offer, you can create personalized ‘congratulations’ videos with your team members to show the candidate how excited you all are that they are joining you . Highlight each member of your team and how they are unique. Ask each team member to explain why they’re excited about the new team member arriving.

With such a cool, personalized video to butter the candidate up, how can they not be excited to show up on their first day?

6. Use corporate presentation videos to make information easy to retain

When you’re delivering a presentation at work, your goal is to share information in a way that’s as compelling, interesting, and efficient as possible. You want your message to stick with your audience long after they walk away — so ditch the yawn-inducing PowerPoint and have some fun creating a video presentation that’s as entertaining as it is visually appealing!

There are as many types of corporate presentations as there are companies (a lot)! But no matter what you’re trying to say, video is your ticket to making your presentation as clear, memorable, and interesting as possible.

7. ‘How to set up your work tools’ videos can make onboarding scalable

A key challenge of any HR department is to help new employees make sense of the myriad of systems, tools, and platforms that your company relies on to get things done!

Video helps streamline this process through self-guided educational resources that can be referred to whenever needed . These videos don’t need to be fancy — even a recorded screen-share or Zoom call will go a long way towards helping your new hires get ready to work.

8. Key training videos help scale your onboarding

Employee training matters. It’s so important that you must deliver it in the most effective way possible — and, of course, that’s video. If your employees aren’t aware of safety standards, key HR policies, and codes of conduct , you’re putting your entire company at risk.

Set yourself up for success and make engaging, educational videos a part of your training on important topics. In this satirical, yet excellent example, fictional villain Gus Fring (from the series Breaking Bad ) guides his employees through his fundamental work principles.

9. Company policy videos ensure everyone is on the same page

How many employees will read an employee handbook from cover to cover? Not a lot, probably. Company policies are super important — they just often aren’t that interesting to learn about. But they are necessary to ensure the safety of your employees and the health of your organization.

Whether your company policies are concerned with safety, compliance, or office romance, video can make them as engaging as a new episode of, well… The Office !

What’s great about the example video is that they envisioned the ‘worst case scenarios’ in a fun, entertaining, but understandable way.

If you’re looking for ways to spice up your company policy video, try upbeat music, motion graphics, and even stylish animation.

10. Event promotion videos to get more attendance

With all the time and energy that companies put into planning amazing events, you’ll want to make sure your employees actually attend.

Build hype and interest with a slick, intriguing event promo video for your next webinar, conference or company mixer .

This is your chance to broadcast the value your event offers and induce serious FOMO! Create a cool video with testimonials from past attendees, and captivating footage from the previous edition.

In this example, PlayPlay zooms in on its employees’ preparation for an upcoming marathon to get more staff donations for its chosen charity organization.

11.‘ Tips’ videos to share knowledge quickly and effectively

We’ve covered a lot of different HR videos in this list. But really, video is the ultimate tool for teaching your employees pretty much anything .

‘Tips’ videos are not quite the same as ‘training videos’. This type of content provides employees with quick and easy tips to help them improve a specific skill or process — instead of giving an in-depth tutorial.

Create these types of videos to help scale efficiency at your company, whether it helps employees submit expense reports, write more professional emails, or create better social media posts.

12. Internal job postings to seek out your company’s existing talent

In some cases, you won’t have to look far to find the best candidate for your new opening — they may be sitting at the next desk!

Internal job posting videos are very similar to other recruitment videos. The main difference is they’re designed to seek out any suitable candidates already working at your company.

Make sure to highlight the role’s main responsibilities and any key details about when and where to apply. Don’t forget to put your employee’s stories at the center of your content and add catchy soundtrack!

13. Employee testimonials boost employer branding

Your people are the best ambassadors for your brand. Whether you’re aiming to hire new recruits or highlight employee achievements, testimonial videos are a great way to put your people front and center.  

Find willing volunteers within your company who’d be happy to speak on camera. Dig into their daily work lives: what are their biggest achievements? What keeps them motivated from one day to the next? Why would they recommend your company to candidates? Remember, authenticity is key!

This employee testimonial by Dental Monitoring is a good example. The interviewee speaks naturally, makes jokes, and explains why her company is a great place to work. She’s an excellent brand ambassador!

14. Employee wellness videos to take care of your people

For HR departments, employee wellness is crucial to keeping a workforce engaged and motivated. Afterall, a happy and healthy team is the key to any company’s success!

You need to provide your people with the resources and means of communication they need to take care of their mental health, seek help, and thrive. But first, it's crucial to nurture an environment in which employee wellness is a priority.

Employee wellness videos add a much-needed human touch to your HR communications, letting people know you’re always there to help.

This excellent example by the Icahn School of Medicine at Mount Sinai, titled How We Heal, was created in honor of the National Day of Racial Healing. Featuring poignant interviews with staff members, the video encourages other employees and students to reach out with their own stories of healing.

15 ‘What is…?’ videos explain your business to new employees

‘What is…?’  or ‘Discover’ videos help to summarize your business in a short, snappy video.

Although they’re mainly used for marketing purposes, ‘What is…?’ videos are also perfect for onboarding a new employee. Get new recruits up to speed with your company’s mission and value proposition in an engaging, bite-sized format.

This ‘What is…?’ video by Slack uses eye-catching animations and a voice-over to introduce its product as a guided walkthrough.

16. Employee appreciation videos boost staff morale

Everyone loves a little appreciation, and your employees are no different.

Whether it’s been a tough quarter or there have been some outstanding achievements, employee appreciation videos show your people how much you value them.

Expressing appreciation for your people will make them feel valued, proud of their efforts, and motivated for the challenges ahead. And it’s not all about the KPIs! Maybe there’s one colleague who always brings in snacks to share, or another who organizes birthday gifts. As a HR rep, it’s important  to recognize any positive contribution to company life — no matter how small.

In this excellent example by Actimo, employees write notes to express what they appreciate about each other. Their reactions are filmed on camera and the results are heartwarming — a great initiative to boost morale and employee retention, and fun for everyone!

17. Company event recaps to relive the best moments

Just had an unforgettable company retreat? Or organized the best office party ever? Keep the fun alive and create an event recap video!

Recap videos highlight all the fun and key takeaways from your company events. Employees will be able to relive the experience, refresh any learning outcomes, and feel even keener to sign up for the next one!

Whether your CEO gave a great speech or that quiet tech guy revealed a killer range of dance moves, create a recap full of clips and photos of the memorable moments, all to the sound of a catchy beat. Fun for employees to watch, and great content for your employer brand strategy!

In this example by PlayPlay, we get a peek at the ‘top 5 moments’ of the company retreat in mallorca.

18. Company perks videos to highlight added benefits

From flexible working hours and dental plans, to free gym memberships and mental health support, employee perks can help you attract the top talent. But sometimes, current employees aren’t even aware of the many benefits they’re entitled to!

With information overload being a problem for many employees, it’s all too easy to miss a company memo or email. By sharing this information in an engaging video, it’s less likely to fall between the cracks and employees can make full use of the perks that they deserve.

This video by Nestlé Purin presents a guided tour of the company headquarters, highlighting the perks and benefits employees can enjoy at the office.

19 ‘Happy Holidays’ videos to wish your employees a restful break

After a year’s hard work, it’s important to send employees off on their holidays feeling appreciated and valued.

‘Happy holidays’ videos will leave a smile on your customers and employee’s faces and encourage them to take the restful break they deserve.

Whether you go for a simple video-recorded message from senior staff, or a creative video like in this example, it’s the time of year to spread some joy!

20. Company FAQ videos inform employees about key information

As a HR professional, do you feel like you spend too much time answering the same questions from staff, over and over? You’re not alone.

Many company employees will repeatedly ask similar, if not the same, questions. And that’s normal! But what if you could get ahead of the game and answer staff’s most common questions in an FAQ video?

Hosting these videos on your intranet will save you time and keep employees well-informed, allowing them to quickly access information whenever they need.

This fun FAQ video by JDIMI is a humorous take on the format, with questions like “who is always on time to work” or “who calls Helpdesk the most?” A great way to onboard new employees with a very human touch.

21. Company news videos keep employees informed

Most companies evolve a lot, so it’s essential that your employees stay updated on any important changes to your business.

Whether you’ve released new features, changed your prices, opened a new office, or are welcoming a new senior staff member — it will be relevant and useful information for most employees.

Think of these videos like an internal newsletter, only in a shareable, engaging format that your people will actually notice!

Although this video by PlayPlay was created for its customers, it was also shared internally to update staff on awesome feature releases on the platform!

22. Software and hardware tutorials to help employees with tricky tools

Learning how to use new software or an unfamiliar device can be tricky. That’s why user manuals exist, of course!

These days, new users are far more likely to watch a tutorial video to learn about a product. Video tutorials often include screen recordings and a voice-over to guide users through the learning process, step by step.

Video learning is ideal because it immerses viewers in the process, making full use of visual and audio aids . This helps employees to quickly learn how to use new software or hardware and adopt it in their daily work lives. In addition, they can quickly revisit the tutorial video if they ever need a refresh on a specific element.

23. Quarterly recap videos

A business quarter can be over in a flash — especially if your employees have been busy making things happen. These recap videos offer a refresh of your company’s recent activity in a bite-sized, engaging format that’s perfect for sharing internally.

Remind your employees of what each team has been working on, highlight any achievements, and get everyone pumped for the next quarter.

24. Company values videos

Company values express what the organization stands for, its mission, and its way of working.

Pasting flashy abstract nouns on the office wall won’t cut it — you need to show the world how your company actually embodies those values.

And who embodies these values better than anyone? Your people! Getting your employees on camera to discuss your company’s values — and what they mean to staff on a concrete, practical level — is the best way to make them come to life .

This video by Netflix is an excellent example; employees are handed the microphone to discuss how “freedom and responsibility” guide their daily work.

25. Onboarding videos to welcome new employees

When new employees first arrive, you want to help them feel as welcome and valued as possible.

Onboarding videos are a fantastic way to introduce new hires to the whole company — their names, what they’ll be doing, where they’re from, etc. Breaking the ice is so important for new employees to settle in, and introductory videos will make those initial conversations much smoother.

PlayPlay welcomes its new recruits with a monthly intro video, featuring funny poses, photos and key details about who they are. A great icebreaker and a fun activity for everyone!

Take your HR team’s efficiency to the next level with video

Video makes crucial information about policies, workplace tools, and company culture more engaging, entertaining and easier to remember.

With video, you’re able to create a sense of belonging in every area of your HR process, from recruitment to retirement. If you use it well, it can help you scale recruitment, communication, and onboarding in a big way.

But once you’ve got that A+ video idea, you’re only just getting started. Next, you’ll need to think about writing your script, creating the best possible filming set-up, and making your video sparkle in post-production. We’ve got resources to help you along the way. And when it’s time to edit your new HR video, try out PlayPlay. Whether you’re already a whiz or experimenting with video for the first time, PlayPlay has an extensive range of HR video templates to inspire you and ramp up your production. Try it out for yourself, for free, right now!

Louise Antonas

Head of Recrutment

With 12 years' experience in recruitment for major French groups. At PlayPlay, Louise is responsible for a team of 5 people, covering an international scope to recruit from our offices in Paris, New York and Berlin.

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