Manpower Planning

Manpower planning

Preparing a human resource plan:

1. Audit present human resource levels: survey skills present in the workforce and compare them with future needs to identify possible shortages or surpluses.
2. Forecast future human resource needs of the business: staff levels can rise or fall due to business expansion or introduction of new technology. A sufficient level of skilled staff is needed at all times, and businesses must forecast recruitment needs.

3. Monitor the level of labour turnover: Labour turnover refers to the rate at which employees leave a firm.
4. Prepare a HR plan: ensure the business has the correct number of staff with the right skills when they are needed. Managers can achieve this by:

• Training: upskill existing staff.
• Recruitment: hire new employees from outside the business.
• Promotion: promote employees to more senior positions.
• Downsizing: reduce the number of employees in the business through natural wastage or redundancies.