sample human resource business plan

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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.

Hire the top business lawyers and save up to 60% on legal fees

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Management and Human Resources Business Plans

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

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

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

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

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

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

Do You Need an HR Manager?

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

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

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

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

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

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

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

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

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

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

What should be in an HR business plan?

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

How do I write a human resources plan?

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

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

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

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

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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• Sample Business Plans
• IT, Staffing & Customer Service

HR Consultancy Business Plan

Thinking about establishing your own HR consultancy business? Well, that’s a great idea!

Starting an HR consultancy can be a rewarding business venture as more and more organizations seek expert guidance to navigate the complexities of human resources.

But the first thing you’ll need is a well-written business plan to make it successful. It helps you set up and manage your services effectively, from strategic planning to talent management and employee relations.

Need help crafting your plan in order?

Not to worry. This HR consultancy business plan template will help you get started and guide you on what to include in a comprehensive plan.

Sounds good? Let’s dive right in!

Why Need a Business Plan for Your HR Consultancy

A strong business plan is not just a written document; it serves as a strategic tool for starting and growing an HR consultancy firm. It covers all the essential aspects of your business and aligns with the market needs & opportunities.

Here are several key reasons why you need a business plan for your HR consultancy business:

Clarity and direction

A business plan provides a clear roadmap and highlights your consultancy business’s mission, vision, goals, and strategies to achieve them. This will help you define the steps you need to take while establishing your business, navigating you to the right direction.

Raise funding

If you need capital investment or loans to get off the ground, you’ll need a well-crafted business plan in place. It provides a detailed analysis of the financial feasibility and sustainability of your business. This will help you demonstrate the profitability of your HR consultancy and gain the confidence of potential investors or banks.

Operational efficiency

A comprehensive business plan can help you provide valuable insights into the operational aspects of an HR consultancy company. This key element of a business plan allows you to manage resources effectively. Also, it helps in overall operational efficiency and ensures your business runs smoothly.

Risk management

With the help of a business plan, you can identify the potential risks and challenges that might affect your business. This understanding helps you develop risk mitigation strategies effectively and makes you prepare for unforeseen circumstances. Also, it ensures that your business can succeed over the long term.

Informed decision-making

An effective business plan helps you specify clear, measurable, and attainable goals for your HR consultancy business. It lets you assess the business performance and track the progress against the defined goals. This way, you can make well-informed decisions and revise the strategies as needed.

In short, having a business plan can greatly benefit you and effectively navigate the complexities of HR consulting practices.

Now that you understand the importance, let’s check out what are the key elements of an HR consulting business plan.

Key Elements of an HR Consultancy Business Plan

While writing an actionable business plan, you should consider including all the critical details you need to establish a successful HR consultancy business.

Here is a list of the most important sections for a comprehensive and compelling business plan:

1. Executive Summary

An executive summary is a quick, concise overview of the HR consultancy business plan, highlighting the most essential aspects of your HR consulting firm.

Though it is the first section, writing your plan summary would be more convenient at the end once the entire doc is ready. This is so because it summarizes all the key sections you mentioned in the rest of the plan.

So, this section is your chance to provide a clear and persuasive introduction to your business that can grab the reader’s attention. Also, make sure that you keep it short and simple.

You may consider including details like your business name, location, concept, core values, vision statement, services offered, market opportunities, target customers, competitive advantages, marketing efforts, and financial highlights.

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2. Company Overview

The company overview section provides a detailed description of your HR consultancy firm, giving an in-depth understanding of your business concept and nature.

You may describe every foundational element in this section, including the legal structure, specific niche, background & history, mission statement, company owners, short-term goals, and long-term objectives.

Moreover, explain what milestones you have achieved to date and clearly outline what sets your business apart from others.

In short, this section helps readers comprehend your company’s foundation, capabilities, and areas of specialty. So keep it impressive yet to the point.

3. Market Research

The market analysis section provides a thorough explanation of the industry and market in which your HR consulting business intends to operate.

To plan this section, you’ll need to conduct detailed market research for your HR consulting services and demonstrate its positioning within the market. Consider adding the following components:

• Industry size & growth potential using recent data and statistics
• Current trends in the human resources consulting practice
• Target market segments and client needs
• Direct & indirect competitors
• SWOT analysis to identify the internal & external factors
• Regulatory environment

You can even outline the market gaps and opportunities to ascribe your competitive advantages and USPs.

Here, you should note that this market analysis showcases your deep understanding of the HR consulting industry, so try to present research-backed data and charts to impress potential investors or partners.

4. Service Offerings

In this section, you may clearly define what type of services your business will offer and how these services will meet the potential client needs.

For example, give a brief description of each service, including employee recruitment, training & development programs, compliance consulting, performance management procedures, and strategic HR planning.

Apart from that, you may highlight pricing strategies, unique methodologies, or potential upselling opportunities(if any).

5. Marketing Strategy

A robust marketing strategy is vital if you want to establish a strong presence in a competitive industry. In fact, it involves the strategies you’ve decided to capture and maintain client interest that can promote business growth.

Your marketing plan should summarize the online and offline methods, sales tactics, or external promotional campaigns you will use to market or advertise your business.

For instance,

• Social media & content marketing to engage potential clients
• Search engine optimization (SEO) to enhance online visibility
• Networking at industry workshops or events to build relationships
• Cold calling, targeted email campaigns, and direct meetings for effective communication
• Loyalty programs or referral incentives to reward existing customers

Furthermore, you can discuss the customer journey from awareness to decision and integrate strategies for customer relationship management & personalized services.

6. Operations Plan

The operations plan outlines the day-to-day operations and activities required for smooth business functioning.

For an HR consulting company, you should describe your business operational details such as staffing needs, office layout, equipment & technology used, client engagement processes, and service delivery strategies.

Overall, a well-developed operations plan will not only help you draft how HR consulting services will be delivered but also ensure that your business operations are streamlined and effective.

7. Management Team

As the name suggests, you will introduce your management team in this section. And strong management is essential for your HR consultancy’s ultimate success.

You should provide a resume-styled summary or bios of the founder(s), key executives, the general manager, and the rest of the management team members, detailing their roles & responsibilities, experience, qualifications, and skills.

Also, explain how each member fits their role and how their expertise contributes to your business growth. Consider adding an organizational chart that shows your company’s hierarchical structure.

If applicable, you can mention details about compensation plans and any external support systems like advisory board members or consultants.

8. Financial Projections

To launch a successful business, you’ll need to craft a strong financial plan, along with realistic financial projections. This will help you map out the financial viability and sustainability of your business.

Generally, it covers several critical statements and financial reports for the next three to five years of operation, including detailed startup costs, financial needs, revenue forecasts, projected cash flow, profit & loss statements, and balance sheets.

Likewise, this section provides a break-even analysis, financial ratios, scenario analysis, and other metrics required for demonstrating your HR consultancy company’s financial health to potential investors or lenders.

9. Appendix

In the appendix section , you may attach any additional information or supporting documents that don’t fit into specific sections but support your plan. It includes

• Resumes of key personnel
• Market research data
• Legal documents
• Client contracts and testimonials
• Partnership agreements

Readers might use these documents or attachments for their reference as they provide additional depth to the information presented in the main text.

Download a Sample HR Consultancy Business Plan

Need a sample business plan to start drafting your plan? Well, here you go; download our free HR consultancy business plan pdf and get started now.

This advanced business plan template has been specifically designed for HR consulting businesses. With step-by-step instructions and examples, it assists you in developing your own plan. Simply import data into your editor and use it as a reference!

The Quickest Way to turn a Business Idea into a Business Plan

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With its easy-to-follow guides, 400+ sample business plans, and financial forecasting software, Upmetrics will make the entire business plan writing process a lot easier for you.

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Frequently asked questions, what are the essential financial projections i need in my hr consultancy business plan.

Following are some of the essential financial projections that you should include in your HR consultancy business plan:

• Startup costs
• Sales and revenue forecasts
• Profit and loss statement
• Cash flow projections
• Balance sheet
• Break-even analysis

How do I find and secure funding for my HR consultancy business?

If you want to find and secure funding for your HR consultancy business, consider these options:

• Self-funding
• Small business grants
• Angel investors
• Venture capital

While seeking funding, you’ll need to create an effective business plan backed by detailed financial documents. This will improve your chances of getting the expected capital.

What market analysis is necessary for an HR consultancy business plan?

While writing an HR consultancy business plan, you’ll need to conduct a thorough market analysis and focus on the following key areas:

• Explore HR consultancy industry size, trends, and growth rate
• Analyze and define the target market
• Assess the specific needs of potential clients
• Identify the top competitors and differentiate services
• Understand the legal and regulatory requirements

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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HR Strategy Template

What Is a Human Resources Strategy?

A Human Resources Strategy is an overall plan focused on managing human capital to align with the business's core activities, with the ultimate goal of achieving the business mission. This usually revolves around the members who make up the organization as the most important division of an organization, and the best practices to implement. 

What's Included In This Human Resources Strategy Template?

This template is pre-filled with examples, which you can use as inspiration for your own HR plan.  

Within seconds of setting up your template, you’ll get immediate access to:

• 4x Human Resources Focus Areas
• 12x Human Resources Objectives
• 16x Human Resources Projects
• 19x Human Resources KPIs

Once you have set your template, you can also create up to two dashboards for real-time performance monitoring. 

And yes - you get free access with no credit card required. ✅

Who Is This HR Strategy Template For?

The underlying definition of Human Resources (HR) is employee-oriented and focuses on the employment process all the way through to fair pay and ultimately managing your employees. Our simple HR strategy template can be applied to any industry and almost every organization within that industry. Line managers, human resource managers and other HR professionals, CEOs, department managers, team leaders, and unions are all examples of professionals who could use such a template.

You can use our HR strategic plan template to improve your company’s workforce management, achieve common business goals, and maximize your human capital.

How Is This Human Resources Strategy Template Relevant To Your Organization?

Human Resources is a holistic department that is part of every organization. A good HR strategic plan can help with not only the hiring process, but also in establishing the culture of the workforce and the types of people with whom your organization wants to be associated. This is why Human Resources is relevant to any and every organization, including yours.  At Cascade, we understand that every organization has a different way of leading, training, and recruiting its employees. This is why we believe that using this Human Resources strategy template will be useful for you to better understand your employees and identify what factors may be affecting your success rate in hiring and retaining your staff. It will help you increase employee satisfaction, decrease turnover rates, and provide a better overall company culture.

How To Use the HR Strategy Template?

1. define clear examples of your focus areas.

Focus areas are strategic ways of addressing an organization's targets. Begin thinking about what comes to mind for your organization when you think of Human Resources and note down some keywords, i.e. people, culture, fair work, retention, and loyalty. Now, reflecting on these words, they are both values and focus areas that your company is trying to identify and associate its organization with. Next, ask yourself, "Am I struggling to address any of these areas?" Those areas are usually the ones that you should focus on. An example of HR focus areas includes talent acquisition, culture, and employee efficiency.

2. Think about the objectives that could fall under that focus area

When coming up with a strategic objective, it is important to ensure they are SMART goals, i.e. Specific, Measurable, Attainable, Relevant, and Time-Bound. The main idea behind creating an objective is to have some form of direction and drive to strive toward. Within your HR strategy, these objectives will have to directly relate to the focus area of choice. Otherwise, there’s a huge chance that your strategic plan will fail.

Objective example: Develop a World-Class Employee Onboarding Program

The above objective would fall under the focus area of talent acquisition and is one target that needs to be met to address that focus area.

3. Set yourself measurable targets (KPIs) to tackle the objective

A KPI is a key performance indicator that is measurable and evaluates the success rate of an organization in relation to the task at hand. With reference to the Human Resources strategy template, organizations can use Key Performance Indicators as a way to track whether their key business objectives are on track, behind, ahead, or have been achieved. Need help on how to write KPIs? To assist you with this, Cascade has written 84 Key Performance Indicators that can be used within your HR strategy template.

Two example KPIs you can include in your HR plan to achieve the above objective are:

• Increase the percentage of 'Cherish & Retain' Employees
• Increase Internal to External Hiring Ratio

It is important to remember that under each objective, there will usually be more than one KPI to achieve that objective. This is because KPIs act as the building blocks in creating and reaching the Strategic Objective. Depending on the size of your organization, a time frame will also be required in order to measure the success rate and progress of the given target.

Check out a few other Human Resources KPIs written by Cascade that can also be incorporated into your HR strategy.

4. Implement related projects to achieve the KPIs

Creating effective projects will describe what you will do to accomplish your objectives. It is at this point in your strategic planning process that you will start to scope out exactly what actions you will take in order to achieve certain objectives. In relation to the Human Resources Strategy, these projects have to be directly related to achieving the KPIs. 

An example project for your Human Resources Strategy could be: Utilize the 9-Box Talent Grid for employee retention or 360-degree feedback communication exchange between employer and employee.

Both projects fall under talent acquisition and are directly related to how your organization can create the best environment for your employees while ensuring that the employees you recruit are people who want to work for your organization because of its reputation and brand image.

5. Utilize Cascade tools to track and visualize performance

Under Cascade, the creation of dashboards and snapshots is available. These visual tools, which mostly focus on dashboards, can help track the progress of KPIs and projects graphically. By adding a 'widget', you have the ability to graph out your measurable target and, more specifically, choose which target you want to focus on. Not all KPIs have to be tracked if they aren't of huge priority or relevance at the moment. This tool is a great way to keep your team accountable and on top of the tasks at hand.

Using dashboards in your Human Resources strategy will help your management team keep track of employee performance and gain a better understanding of what seems to attract employees to your organization and what changes could be made. For example, using a graphical table to track projects like 360-degree feedback and seeing how much of the project is implemented can allow employers to gain feedback as to whether or not the project is successful and boosts employee morale, efficiency, and productivity. This will prove to be a great way to make quick changes to your business's core activities relating to human resources strategy without having huge implications on your expenses.

HR Strategy Template FAQs

How do i start creating an hr strategy.

The main goal of an HR strategy is to maximize your human capital so you can achieve your overall business goals. That said, a good HR strategic plan starts with your “why”—the reason your business exists and what you want to achieve. From there, figure out where your HR strategy needs to fill in the gaps to help your business reach its goals. Use our template as a good starting point for creating your HR plan.

What are the important elements of an HR strategic plan?

Much like a strategic business plan, an HR strategic plan is composed of the following key elements:

• Goals and Objectives: Specific, measurable, and time-bound targets that the HR function aims to achieve to support the overall business goals.
• KPIs: This will help you keep track of whether or not you are achieving your goals.
• Budget: A detailed plan for allocating financial and other resources to support the HR function's strategies and action plans.

How often should we revisit or update the HR strategy?

Definitely not once a year. Executives, managers, and the HR department must ensure that HR goals are always aligned with business goals, which can change throughout the year. While reviewing your KPIs, revisit the entire strategic plan to see if it still makes sense in the current business environment.

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• 11 Successful HR Strategy Examples...

11 Successful HR Strategy Examples To Consider for 2024

What is an HR strategy?

• A thorough analysis of both the organization and its external surroundings
• The ability to allocate vital organizational resources such as finances, time, and personnel effectively
•  It’s numbers-driven and built on data-driven insights
• It’s subject to annual revisions
• It incorporates the insights and expertise of senior HR management
• It relies on and ultimately drives specific behaviors
• It’s a roadmap for how a business intends to manage its workforce.

7 Steps to creating an HR strategy

11 Successful HR strategy examples

Key HR actions Actions that Google’s HR team took include: Predictive modeling to address future people management challenges and opportunities Effective hiring algorithms to predict candidate success Using data to enhance workforce planning in a growing and changing firm.

2. Salesforce

Key HR actions Actions that the Salesforce HR team took include: Emphasizing family and community to employees, customers, and partners Linking the idea of Ohana with Salesforce’s core values Encouraging teamwork and support for employees’ well-being and engaging in philanthropic activities to strengthen the sense of togetherness.

Key HR actions Actively promoting and reinforcing alignment between mission and culture, making it a central part of the company’s identity Encouraging employees to identify and maximize their strengths  Supporting employees’ personal lives by helping them manage their responsibilities both inside and outside of work.

Key HR actions Strong emphasis on talent development and motivation, including skill enhancement, career growth, and personal development A geocentric approach ensures that the right talent is in the right place to drive efficient international operations A commitment to CSR by investing in education, community improvement, and promoting gender diversity within its workforce to grow its reputation as a socially responsible organization.

5. Microsoft

Key HR actions Clear alignment with core values provides a strong foundation for cultural change Authentic leadership to inspire and guide employees Technology to accelerate cultural change, monitor progress, and help employees to adapt to the evolving culture.

Key HR actions Hiring and retaining top-tier talent, even during challenging periods Emphasizing performance over seniority to create an agile workforce aligned with Netflix’s evolving needs Adopting a flexible holiday policy, allowing employees to take as much time off as they want.

7. Johnson & Johnson

Key HR actions Investing in leadership development programs, recognizing the pivotal role of strong leadership in the company’s success Creating a culture of inclusion and diversity where all employees feel valued and respected Ensuring that employees can maintain a healthy work-life balance and overall wellbeing. This commitment to employee welfare contributes to a motivated and engaged workforce.

Key HR actions Implementing a philosophy that promotes a culture of continuous improvement among the workforce Selecting top-tier talent and empowering them to improve their skills continually Granting leaders the autonomy to build their teams and maintaining transparent salary scales.

 Key HR actions Instilling a culture of exceptional discipline throughout the organization Providing training and skill development opportunities for employees Prioritizing data and discipline over emotion to ensure efficient decision-making.

10. Marks & Spencer

Key HR actions Prioritizing communication and actively involving employees in decision-making processes Maintaining positive employee relations and treating the workforce with respect Ensuring that employees are well-informed and engaged in the company’s operations.

11. Mayo Clinic

Key HR actions Compensation to attract outstanding talent Promoting teamwork that contributes to the organization’s success Instilling trust and confidence among employees to create a positive and supportive work environment.

Key takeaways

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The Easy Guide to Human Resource Planning with Tools & Templates

Updated on: 23 June 2022

It’s no secret that the key to the continued smooth operation of an organization is its employees – well, the right kind of skillful employees doing their job right. And the way to get that kind of employee working in your organization can only be made possible through proper human resource planning software . 

In this post, we have simplified the human resource process for you by breaking it down into four steps and providing you with ready-made templates to immediately execute those tasks.

What is Human Resource Planning 

Human resource planning is the process by which organizations assess the current human resources, forecast future requirements or necessities, identify the gaps and come up with a plan to fill them. 

Basically, human resource planning, also known as workforce planning and manpower planning, helps you ensure that you have the right number of people with relevant skills in the right kind of job position at the right time.   

Importance of human resource planning 

Human resource planning plays a major role in making sure that the necessary skills are made available to the organization whenever needed to meet its strategic goals. In addition, there are several more important reasons why human resource planning is crucial to an organization. 

• It helps make sure that the existing manpower is being used optimally 
• It supports achieving the organization’s strategic goals and objectives by ensuring that the right kind of people are hired to fulfill the demand for labor in a timely manner
• It provides information necessary to carry out other HR functions such as recruitment, selection, promotion, training and development , etc. and define HR policies
• It helps the organization adapt to the changes in the environment caused by competition, technology, government policies, etc. that may result in a need for new employees, new skills, etc.  
• It helps identify labor requirements needed to successfully implement expansion and diversification plans 
• It also assists with anticipating deficiencies or surpluses in manpower and take the necessary steps to handle the situation   
• It helps develop career plans for individual employees and determine the training and development they need

4 Steps in the Human Resource Planning Process 

There are 4 broad steps involved in the human resource planning process. 

Step 1: Identify the current supply of human resources   

The planning process starts by analyzing the current labor pool. Identify the strengths and weaknesses of your organization with regard to the number of employees, their skills, experiences, qualifications, positions, performance levels, age, benefits, salary levels, languages spoken, prior employment, etc. 

There are several ways you can go about this step. 

• Refer to the past performance reviews
• Gather data from your human resource information system
• Talk to the department heads to get an idea about the employees working under them
• Ask the employees themselves with a questionnaire 
• Get employees to do a self-evaluation of themselves with a SWOT analysis

Once you have collected an abundance of information on current employees, transfer them to a skills inventory report . A visual template for a skills inventory that is easier to refer to and understand is given below.

Step 2: Forecast future demand for human resources

This step requires you to understand the future goals of the organization first, as they would have a significant impact on the future human resource demands. 

Prior to determining the future needs, you also need to consider factors such as employee turnover rates, market or industry trends, technological advances that will help automate processes, retirements, promotions, layoffs, etc. 

Step 3: Analyze the gap between supply and demand for labor

Now that you have clarified what skills are available in your inventory and which you will need for the future, you can clearly see the gaps that exist.

Can the current supply of employees in the organization help fulfill future requirements?

Will you have to offer training and development programs to upgrade the current employees to meet company objectives?

If this is not sufficient, then you will have to recruit new employees with relevant skill sets to match the demand for manpower in the future. 

It’s important that you maintain the balance between demand and supply in human resource planning. 

Step 4: Develop and implement the plan to meet the gaps 

Then comes developing an action plan .

If there’s a deficit of employees, you can spend your efforts on hiring new employees, training existing ones, outsourcing or interdepartmental transfers.

On the other hand, if there’s a surplus of employees, you may need to consider layoff, voluntary retirement schemes, transfers, etc. 

Once a plan is devised, it should be integrated with the overall strategy of the organization. And it’s important to monitor the plan and evaluate its effectiveness throughout time.

Human Resource Planning Tools

You can use these tools throughout the different steps of the workforce planning process. They can assist you in analyzing the capability of your current staff, and determine future needs. The templates provided are editable online; simply click on the template to edit it online. 

SWOT Analysis 

SWOT stands for strengths, weaknesses, opportunities, and threats. It can be used as a tool for self-evaluation by individual employees, or as a strategic tool to assess the current state of the organization. 

Strengths and weaknesses are the factors that are internal. For example, a strength of your organization could be the presence of skilled employees, but a weakness could be the insufficient numbers of skilled employees. 

Opportunities and threats are external factors. For example, the availability of skilled employees in the market could be a great opportunity for you if you are hiring. On the other hand, your competitor poaching your employees with better salaries could pose a threat to you.  

 The SWOT analysis is one of the most popular tools used during a situation analysis. Some other situation analysis tools you can use with manpower planning are described in our guide to situation analysis . 

Organizational Chart 

An organizational chart is a visual representation of the hierarchy/ structure of an organization. It also highlights reporting relationships between employees, their roles and responsibilities. In human resource planning, it can be used in a number of ways,

• To record information about current employee roles, responsibilities, skills, experiences, etc. You can also add additional information such as their educational qualifications, and demographical data. This will help you quickly identify the right personnel for the job. 
• To create a roadmap of the staffing needs. You can mark labor deficiencies and surplusses on your company organizational chart as well.

RACI Matrix 

This is a chart, project managers use to assign roles and responsibilities to tasks in a project. It highlights who should be responsible, accountable, consulted and informed during a project.

9 Box Grid 

The 9 box grid, also known as the performance-potential matrix, is widely used in employee development and succession planning. It helps evaluate your existing employees against their current performance and their future potential performance.  

Rating your employees with the help of the 9 box grid helps you identify strong employees and those who are falling behind.

Scenario Planning 

There are many scenarios, like technological advancements, natural disasters, political or economic changes that could drastically alter the future direction of your company. Ordinarily, you may not see them coming or plan for them. 

By incorporating scenario planning in your strategic planning process, you can identify these different future scenarios, discuss how they will affect your organization and take precautionary measures.

You can incorporate scenario planning with human resource planning by examining scenarios that involve your changing future labor requirements. 

Refer to our resource on scenario planning to learn about this tool in more detail. 

Replacement Chart

This is a diagram that is similar to the organizational chart . It is used to identify potential candidates who can replace an employee who is retiring, transferring, etc. Individual replacement charts can be developed for each significant position in a company along with potential replacements.

Any Tips for Improving Manpower Planning? 

In this post, we’ve basically covered everything you need to know about human resource planning , especially if you are a newbie. And we believe the templates provided will help you kickstart your project. 

Already an expert in workforce planning? Do share the tips on tools and processes you swear by in the comments section below.

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Human Resources Consulting Business Plan

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Human Capital Maximizers

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

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

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

1.1 Keys to Success

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

1.2 Mission

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

1.3 Objectives

The objectives for the first three years of operation include:

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

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

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

2.1 Company Ownership

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

2.2 Start-up Summary

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

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

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

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

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

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

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

Emerging companies will be the target market for several reasons:

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

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

4.1 Market Segmentation

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

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

4.2 Target Market Segment Strategy

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

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

Strategy and Implementation Summary

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

5.1 Milestones

Human Capital Maximizers will have several milestones early on:

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

5.2 Sales Strategy

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

5.2.1 Sales Forecast

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

5.3 Competitive Edge

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

Web Plan Summary

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

6.1 Website Marketing Strategy

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

6.2 Development Requirements

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

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

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

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

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

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

7.1 Personnel Plan

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

Financial Plan investor-ready personnel plan .">

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

8.1 Important Assumptions

The following table details important financial assumptions.

8.2 Break-even Analysis

The Break-even Analysis is shown below.

8.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

8.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

8.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

8.6 Business Ratios

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

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HR Strategic Plan

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

HR Strategic Plan Example

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HR Planning Model Example

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HR Warn Decision Matrix Example

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The Importance of a Human Resource Department

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

Tips for Creating an HR Strategic Plan

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

Tip 1: Always Think of Your Future Needs

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

Tip 2: Consider What Your Company is Presently Capable of

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

Tip 3: Lay Out Specific Plans

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

Tip 4: Re-evaluate as Often as Needed

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

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

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

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

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

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

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

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

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Prepare Your Annual HR Plan for 2024

Each year, it is important to create an annual HR plan to guide your people team or human resources department. However, in 2024, it is even more important for HR departments to take into account recent changes , and develop a sound hr strategic plan to take their teams to the next level.

More important than the details of the plan itself is to make sure the company’s mission and vision are reflected within your annual HR plan for 2024. Without clear objectives and a path to achieve them, you may fall short in reaching your company’s goals.

A highly focused and clearly communicated annual HR plan helps to guarantee your HR objectives will be met.

In this article, we will cover the ins and outs of yearly HR planning and provide the key steps to reach your HR goals.

Table of Contents

What is Meant by HR Planning ?

The purpose of a human resources plan is to analyze and evaluate all the elements related to the human resources policy for the coming year.

Everything from staff dynamics, organizational structure , and working conditions to the hiring process and onboarding of new employees .

As there are many aspects of an HR annual work plan, it’s important to first understand the company environment within which you work, as this will greatly affect the HR plan you create. Once you evaluate the company environment, you can then move forward with creating a successful HR plan of action.

Prepare your annual business plan for HR in 2024 and reach all of your objectives.

Map Out Your Annual HR Plan: Evaluate the Company Environment

At the beginning of the year, companies establish a strategic plan, dependent heavily on the human resources department, where the key annual objectives are set.  In order to develop a successful annual HR plan, it’s important to take into consideration the company’s policies and procedures , as well as the employee handbook . That way, you can rest assured that the goals and plans of the company are aligned with those of HR.

To reach your HR objectives, you must first know the answers to the following questions:

What Can We Improve on From Last Year’s Annual HR Planning?

Success is simply the result of many failures and tried attempts, all put together. Identifying past struggles and using them as fuel to propel you forward is what leads to success and improvement.

What Expected Challenges Can I Include in My Yearly HR Plan?

When you know what’s coming, you can better adapt and take advantage of the changes, rather than let them take advantage of you. Consider learning about change management techniques to stay in control through the ups and downs. Analyzing the potential challenges is fundamental for preparing your team for what’s ahead. Also, knowing which changes, events and activities are taking place in the coming months, and how they will likely influence your team, allows you to better manage what lies ahead.

What Areas Within the Company Should I Plan to Improve?

Constant evaluation of the state of the company and its staff is crucial to coming up with solutions to improve. With Factorial, for example, you can create human resources reports that display a graphical vision of the company, outlining the required areas of improvement. If used correctly, these charts can also allow you to make visual conclusions about things such as the turnover rate or employee motivation.

Identifying key areas of improvement is one of the stepping stones to a successful large or small business HR plan.

As a result, reaching your yearly objectives is easy when you take the proper steps to first analyze the company’s environment and what you are working with . Clear communication between the human resources department and the company’s management is vital to creating a solid base for your annual human resources plan.

Define Your Annual HR Plan Goals & Objectives

The objectives of the company’s strategic plan are called long-term objectives . These types of objectives help measure the reach and success of the human resources plan.  Generally speaking, they can be divided into two categories:

• Explicit Objectives : Focus on attracting and retaining talent, employee motivation, and improving employee engagement. To set explicit objectives in your annual HR operating plan you have to consider employee experience, the onboarding process, career plans, etc.
• Implicit Objectives: Follow the company’s philosophy and help form the company culture. They show the power of the HR department and how it can help improve productivity. In addition, these objectives focus on the work environment and quality of life for the employees while maintaining all labor regulations.

Organize Your Annual HR Planning: Set Team Responsibilities

Once the objectives are clear, both for the company and for the human resources department, it’s time to create your HR plan by reviewing the team responsibilities. Keep in mind, a thorough analysis of what each department will do in order to contribute to achieving the 2024 HR goals is necessary before moving forward.

Following this, the first step in the HR action plan 2024, is to assign a person who will be in charge of creating and implementing the HR plan . For smaller companies, this person will probably be the CEO. In slightly larger businesses, the person responsible is normally the same one who handles all of the human resources-related tasks. Medium-sized companies will look to their HR team; with every member delegated to a specific task, each corresponding with a goal.

Human resources organizational charts are a great way to visually see who is responsible for what, and who reports to who in the company. Using this type of chart is incredibly helpful for your staff planning.  They can be also useful to ensure that the HR management to HR employee ratio is in check. Try using a free organizational chart template to have a clear picture of your company’s structure.

These charts are great for displaying the following:

• The structural hierarchy of the company : Directors, managers, intermediate profiles, employees, etc.
• The departments within the company : Marketing, sales, product, human resources, etc.
• Positions to fill : If there are any gaps in the company structure, the organizational chart will make them clear.

Annual HR Staff Planning: Identify Open Positions

Thanks to the organizational chart you can clearly see how many people you need to hire and for which positions. If you want to achieve your objectives for the coming year, you’ll need to have the right team in place.

In your HR plan you will define:

• Which positions are open – Write a detailed description of all the positions to be filled, including the corresponding department, responsibilities, functions, where they fit in the hierarchy, and their workload.
• Define the ideal profile – Here you’ll have to specify the profile of the candidate you are interested in hiring. Clearly outline the level of education you are looking for, the experience level, and the skills required. Based on this, you can decide whether to recruit from within the company if there is an employee that fits the desired profile.

Clearly defining the above details, are important steps to take in your HR plan. Therefore, allow yourself the time to study and analyze your company at each stage of the HR plan creation process.

Start Planning with a Defined HR Policy

Your updated human resources policy must meet the standards and demands of the general HR and strategic plan. The hr policy will also include guides for the HR department, including, but not limited to:

Hiring Guide

The main purpose of the hiring guide is to assist the HR manager in hiring and onboarding. This guide serves to outline the roles and responsibilities of the employees you are looking to hire. It should contain information on the types of contracts for each position as well. Also, including an HR annual training plan template in your hiring guide is beneficial.

Note: As an HR manager, you will need to decide whether the hiring process will be outsourced or handled within the company. If hiring is done from inside the company , a strategic onboarding process must be established to ensure successful recruitment and retention.

Compensation Guide

With every new contract you plan on offering, you need to state the details of each. For example, the salary amount, benefits, and economic bonuses. Make sure that what is offered in your compensation guide is in line with your overall Human Resources budget.

Workplace Satisfaction Guide Personal

Taking care of new hires is important, but don’t forget about your veteran employees. Long-term employees need to feel continually valued and supported as well. In your HR plan, you should invest part of your budget for the personal and professional development of each employee in the team.

Investing in employee wellbeing creates greater workplace satisfaction. Providing employees with the right personal development tools for success is key. Employees that feel supported display greater motivation for achieving their own goals and career aspirations.

Company Guide

Inside the HR policy, you should think about including a practical guide from the company. Contained in this guide, would be the company vision and mission, proper conduct guides, and conflict resolution codes

Build Your Annual HR Plan 2024

Now that you’ve gone through all the previous steps, you’re ready to build the best HR plan for 2024.

As you can see, creating the ideal HR plan for 2024 takes time and effort to compile . Unfortunately, a high percentage of small and medium-sized businesses simply don’t have the personnel to create a dynamic HR plan.

Save time creating your Annual HR plan with Factorial!

A solid HR plan is fundamental to achieving company goals. If you don’t have the correct tools to do the job, you’ll end up exhausting yourself creating a plan that will miss the mark in the end.

With Factorial, you can create your human resources plan for 2024 with ease. Build your organizational chart , fast and easy, and see who is in charge of what at a glance. Decide which departments need more assistance or restructuring.

Furthermore, Factorial gives you access to all kinds of human resources reports. These reports help you analyze the state of your company, allowing you to more effectively create the most successful HR plan for the coming year!

Are you looking for a little extra support to streamline your HR processes?

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“Unfortunately, a high percentage of small and medium-sized businesses simply don’t have the personal to create a dynamic HR plan.”

‘personal’ should be ‘personnel’, unless I am mistaken?

A great article otherwise!

Thanks Trudy!

Post more! Seriously, I am really digging what you have written so far. I’ve scanned your blog right now for more things to read.

Thanks , this piece was indeed very useful.

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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.  

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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?

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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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With every business, there’s always going to be a common goal that everyone will be working towards. However, how everyone will go about in achieving them might differ and that could highly affect the business’s success. For those in human resources , there has to be some sort of sample plan in order for them to figure out exactly what and who it is the business will need in order to attain success.

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HR Strategic Plan Template

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How to Create an HR Strategic Plan

1. determine the human resource needs.

• Are the number of employees hired enough?
• Is there are a need to hire more?
• Is the hiring process tedious and is it difficult to find the employees needed?
• What are the different skills that your current employees possess?
• What skills and knowledge will the employees need in order to live up to expectations?
• Is there anyone who plans on retiring or resigning soon? Do you already have replacements ready for when they do?
• What are the sales forecast and how will they affect your business’s recruitment strategies ?

Printable HR Strategic Plan

Standard Human Resources Strategic Plan

Human Resources Strategic Workplan

HR Department Strategic Plan

2. Recruitment

3. selection.

• The amount of time it will take for you to go through the many different resumes
• The amount of time it will take to interview every single candidate
• The number of expenses it will take to interview every applicant
• The possible travel expenses for a new hire or a recruiter
• The possible relocation expenses for a new hire
• The cost of training these new hires to get up-to-date with what needs to be done

4. Determine Compensation

Example of hr strategic plan.

HR Strategic Action Plan

Division of Human Resources Strategic Plan

Strategic Plan for Human Resource Management

5. Develop the Appropriate Training

6. performance appraisal.

• Career development review
• Performance review
• Employee appraisals

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FREE 10+ Human Resources Development Plan Samples [ Manager, Career, Individual ]

Human resources is an essential department in any company. An organization’s, business sector’s, industry’s, or economy’s workforce is made up of employees who make up this department. Human capital is a more specific term that refers to an individual’s knowledge and abilities. One of this department’s responsibilities is developing the skills and knowledge of the workforce. As with any task to fulfill, you need a well-thought out and comprehensive plan. Look no further! In this article, we provide you with free and ready-to-use samples of Human Resources Development Plan that is available to use for Human Resource Managers to improve all careers. Keep on reading to find out more!

Human Resources Development Plan

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Human Resource Development plans are future-oriented action plans or strategies. Such plans specify how resources will be distributed, as well as which activities will be supported, promoted, and implemented in order to meet the goals for people’s development. It allows companies to fulfill their present and future talent demands by allowing human resource managers to predict and develop the talents that are most important to a company, as well as offering the best balance of employees in terms of available skill sets and people numbers.

The ideal Strategic HR Development Plan describes how the gaps between current and future skills will be bridged, allowing companies to achieve their objectives more efficiently. A template can help you with providing a framework that you could utilize to ensure that you have a well-written HR Development Plan. You can choose one of our excellent templates listed above instead of starting one from scratch. Other than that, should you want to write on your own, follow these steps below to guide you:

The human resources planning process begins with the identification of the organization’s various departments’ objectives. Each department, such as management, marketing, production , finance, and sales, for example, may have distinct goals and expectations in terms of human resources. Recruiting new people for the process, decreasing the number of employees by automating procedures, or enhancing the knowledge and skill levels of current employees are all possible aims.

The Human Resources Planning team may predict employee demand based on the objectives of the various divisions of the business and the inventory of available resources. Aside from that, the supply of personnel should be anticipated depending on the organization’s availability and the employee market.

Following the estimation of employment gaps, the Human Resources planning team should design a strategy for employee recruitment , training, and development, termination, interdepartmental transfers, promotion , or early retirement depending on the organization’s needs. The employment strategy might change depending on the forecasted shortfall or excess in the demand and supply phases.

Once the human resources strategy is in place, it should be evaluated on a regular basis to ensure that it is aligned with the departments’ goals. The required controls should be established, and feedback should be gathered at each level to measure any flaws in the executed human resources plan. In order to make the human resources strategy a success, the appropriate modifications should be performed based on input collected throughout the current process.

Human resource planning allows companies to fulfill their present and future talent demands by helping human resource managers to predict and develop the talents that are most important to an organization, as well as providing the company with the best balance of skill sets and people numbers.

Human resource planning’s purpose is to keep and enhance the organization’s capacity to fulfill its objectives by devising strategies that result in the most efficient use of human resources.

Human resources has three major responsibilities: administrative, change management, and people management. Administrative responsibilities include hiring and overseeing employees, managing wages and benefits, and creating policies and standards.

To keep projects on budget, resource planning helps teams manage resource usage and track resource capacity. Resource planning is essential because it allows you to arrange your team so that they know what they need to work on and when they need to work on it. Get started by downloading our easily customizable and comprehensive samples of Human Resource Development Plan today!

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Career development plan template for HR professionals

As an HR professional, you know how important it is to support your employees’ career growth and development to boost satisfaction and retention. However, creating personalized career development plans from scratch can be time-consuming and challenging. On top of that come the challenges of ensuring team members’ development goals align with your organizational needs. 

Fortunately, a well-designed career development plan template streamlines this process. This allows you to quickly assess their current situation, goals, and development needs. 

In this post, we’ll outline what a career development plan template is, how it benefits you and your employees, and how to implement it. We’ll also provide you with a free, downloadable template you can customize to suit your preferences. ‍

🛣️ Get a structured roadmap for career development Leapsome’s career development plan template helps employees stay on track. 👉 Download the template

What is a career development plan template?

A career development plan template is a structured document that outlines an employee’s professional goals and the steps they need to take to reach them. 

Career development plan templates provide a framework to reflect on a team member’s current situation, set realistic targets, and create a structured employee development program to achieve them. It also helps employers understand employees’ career aspirations and build strategies to support them.  

Template development plans for employees can be tailored to fit individual needs and organizational requirements. They serve as a valuable tool for team members and leaders to work together to create a personalized career development plan that benefits both parties. Let’s explore how.  ‍

Why career development planning is important

Career development planning benefits both employees and organizations. As Career and Business Coach Cynthia Orduñ a says , “For employees, it fosters a sense of empowerment, motivation, and job satisfaction… From an organizational perspective, prioritizing career development leads to a more skilled and versatile workforce.” 

Let’s look at this in more detail. ‍

Benefits of career development planning for employees 

Professional development plan templates for employees provide structured direction as team members work toward achieving their goals. 

Here’s how:

• Provides a structured roadmap — A career development plan template for employees helps them clarify their goals and the path they should take toward achieving them. This puts them in a better position to work toward success in a structured way. It enables them to make informed decisions about their professional development rather than just “going with the flow” or taking a direction that’s unsuitable for them. For instance, moving up to management is a natural career step for many people, but it’s not for everyone. A career development plan can help identify this. 
• Drives skills development — A progression plan template enables employees to identify their strengths and weaknesses. This lets them work on developing the skills they need to progress, which makes them more well-rounded and puts them in a better position to take advantage of opportunities that arise along the way. For example, if a UX designer takes a course on website development, they could gain valuable on-the-job experience if the company website needs a redesign.  
• Motivates and engages — Without a clear plan, milestones, or accountability, it’s easy for employees to stray from their career development path. By contrast, clear goals can motivate them to push themselves personally and professionally as they progress toward their targets.

Now, let’s take a look at how career development planning benefits employers. ‍

Benefits of career development planning for organizations  

• Balance individual and organizational needs — Career planning helps align employees’ career aspirations with your strategic organizational objectives. It also ensures you have the necessary skills and talent to adapt to changing market conditions and stay competitive. 
• Talent management — Talent development plan templates help you manage your internal resources by identifying and developing the employees and skills that are critical to your organization’s success. This helps you put the right people in the right roles.  
• Succession planning and leadership development — Effective career development planning allows you to identify and prepare your future leaders for internal promotion . This helps ensure continuity in key roles, makes succession planning easier, and reduces the risk of leadership gaps. 
• Create a culture of continuous learning — Working with employees on their learning and development plan template helps create a culture of continuous learning and growth within your organization.
• Improve your employer brand — Investing in career development planning demonstrates your commitment to employee growth. This helps attract and retain top talent and sets you apart from competitors. 
• Happier, more engaged, and more committed team members — Career growth positively impacts employee engagement and commitment , and providing team members with intentional support only adds to that. According to Gartner, proactively working with employees on their career growth can have up to a 45% positive impact on how supported they feel, compared to just 8% when you only try to meet their expectations. Team members with access to development opportunities also have 34% higher retention rates . 
• Data-driven decision making — Career development planning involves tracking progress and performance. This provides valuable insights that you can use to make decisions, optimize your talent strategies, and make informed choices about how to support employee development . 

Sample career development plan

Career development planning has many benefits, but to realize them, you need to take a structured approach. To that end, we’ve created a sample career development plan you can download and use.

​🚀 Help team members fulfill their potential Download our free career development plan template to help employees understand the steps they need to take for meaningful growth. 👉 Download the template

Employee development plan template

Download this free employee development template and work with your employee to fill it in, answering the career development questions posed in the next section.

Once you’ve completed their professional development template and know what they’re planning to work toward, you can schedule regular reviews and connect them with the people and resources they need to get started.  ‍

Career development plan template for employees

Current career status

• Current position: Software Engineer
• Responsibilities: Developing and maintaining software applications and troubleshooting technical issues.
• Previous experience: 3 years in software development, proficient in programming languages such as Java and Python.
• Strengths: Strong problem-solving skills, ability to work as part of a team, experience with agile methodologies.
• Areas for improvement: Enhancing knowledge in cloud computing, improving skills in cybersecurity. ‍

Career vision and long-term goals

• Career vision: Becoming a Senior Software Engineer who leads innovative projects.
• Purpose and passion: Passion for creating efficient and secure software solutions.
• Long-term goals: Lead a team in developing cutting-edge software applications.

Development gaps

• Key competencies for desired role: Leadership, advanced programming skills, knowledge of cloud technologies.
• Skills/knowledge to acquire: Cloud computing, cybersecurity best practices.
• Current gaps: Limited experience in leading projects, lack of expertise in cloud security.
• Training/experience needed: Courses in cloud computing, cybersecurity workshops, mentorship from senior engineers. ‍

Short-term goals

• Action steps: Enroll in an online course, allocate study time weekly.
• Action steps: Propose project idea, coordinate with team members, oversee project execution.

Action plan

• Learning objectives: Enhance cloud computing knowledge, develop leadership skills.
• Resources needed: Access to online courses, mentorship from Senior Software Engineers.
• Opportunities: Lead a project during a team sprint, shadow a Senior Engineer in a cloud project.
• Barriers: Balancing project responsibilities with upskilling efforts.
• Timelines: Milestones for certification progress, project completion.
• Success criteria: Feedback from team members, project success metrics.

Progress evaluation 

• Progress tracking methods: Self-assessment, feedback from team members and managers.
• Review frequency: Monthly check-ins with manager, quarterly progress reviews.
• Adjustment criteria: Reassess goals based on project outcomes and certification progress.
• Celebrations: Recognize milestones achieved, provide positive feedback and encouragement.
• Current position: [Position Title]
• Responsibilities: [List key responsibilities]
• Previous experience: [Relevant experience and skills]
• Strengths: [List top 3-5 strengths]
• Areas for improvement: [List 2-3 areas]

Career vision and long-term goals  

• Career vision: [Describe ideal future role and work environment]
• Purpose and passion: [Explain purpose and what you enjoy most]
• Long-term goals: [List 2-3 long-term goals]
• Key competencies for desired role: [List 3-5 competencies]
• Skills/Knowledge to acquire: [List 2-3 skills/knowledge areas]
• Current gaps: [List 2-3 gaps to address]
• Training/Experience needed: [Specify training, courses, experience]
• Short-term goal 1: [Specific, measurable goal] 
• Action steps to achieve goal: [List 2-3 action steps]
• Short-term goal 2: [Specific, measurable goal] 
• Learning objectives: [List 2-3 objectives]
• Resources needed: [List resources, support, opportunities]
• Potential barriers: [List 1-2 barriers and mitigation plans]
• Milestones: [List 2-3 milestones with target dates]

Progress tracking and evaluation 

• Progress tracking methods: [List tools, feedback, self-assessment]
• Review frequency: [Monthly, quarterly, annually]
• Adjustment criteria: [Specify when to adjust goals/plan]
• Celebration of milestones: [How to celebrate achievements] ‍

Key elements of a career development plan

Each individual career development template is different, but here are the key elements we included in ours. ‍

1. Assess current career status

The first step in creating a career development plan is to take stock of your employee’s current situation. This might involve conducting a SWOT analysis, asking them to complete a self-assessment form, or gathering feedback from coworkers, managers, and mentors. 

The aim is to evaluate factors like their skills and knowledge, interests, challenges, and areas for improvement. This will give you a clear picture of where they are now and what they need to work on. 

Think about these factors:

• Where are they in their career now? What are their responsibilities in their current position?  
• What previous experience do they have, and what did they bring from those roles? 
• What are their strengths and skills? What valuable knowledge do they possess?
• What are their weaknesses, and where could they improve? What would they need to do that? 

Once you know the answers to these questions, you can work on defining their career vision and goals.  ‍

2. Define career vision & long-term goals 

The next step is to determine where the employee wants to go in the future. Having a clear vision and set of goals will guide the career development plan and help you both stay focused on what’s important.

To do this, you’ll need to identify their purpose, passion, and priorities. Get them to think about what their dream career or job looks like. What do they enjoy doing in their current role, and what do they want to do more of? By contrast, what don’t they enjoy and would like to move away from?  

Remember that an employee’s career vision should also reflect their personal aspirations, values, and priorities. Encourage them to think about what’s important to them and what kind of work environment and culture they thrive in. For example, maybe they’re a marketer but are strongly driven by a concern for the environment. If so, they might want to move into a position that involves reporting on your environmental social governance (ESG) plan or your commitment to reducing the carbon footprint caused by your data storage needs.  ‍

3. Identify development gaps

Next, pinpoint the employee’s development needs by evaluating the gap between where they are now and where they want to be, as well as considering what’s stopping them from moving forward. For example, in the case of the marketer we talked about before, perhaps they have passion and commitment but need to benefit from employee training and resources on communicating about sustainability issues. 

To identify someone’s development needs, look at sources like industry trends and job descriptions for their desired role. Compare these to their current job description, recent performance reviews , or manager feedback to see where they need to gain skills or experience. 

Consider the following questions:

• What are the key competencies required for their desired role?
• What skills or knowledge must they acquire to achieve their career goals?
• What are the gaps in their current skills or knowledge that they need to address?
• What training, education, or experience will they need to fill those gaps? Will they need to take a course, or could they learn on the job? 

Pro tip 💡 ‍ Leapsome’s Competency Frameworks allow you to define the specific skills your employee needs to develop so you can measure their performance and track development over time. Work with your report to set clear expectations and define what they need to work on for each skill at each level.

💥 Set tangible targets for skills development Leapsome’s Competency Frameworks provide a structured roadmap for career development.  👉 Take a 5-minute product tour

4. Determine short-term goals 

Once you know what they want to achieve in the long term — and what they need to do — you can work on breaking the overall vision down into short-term goals that’ll move them closer to achieving their objective. As well as providing a roadmap for how to move forward, this prevents long-term objectives from seeming too distant or abstract, which can lead to them losing motivation. 

Goals should be specific, measurable, achievable, relevant, and time-bound ( SMART ). For example, if the employee wants to move from graphic to UX design and needs to take a course, they should be specific about their plan to do so. For example, they can identify a course that teaches the skills they need, ensure they’ll be able to complete it within a certain time frame, and know how to measure the skills they gain.

Remember that a person’s goals may change as they gain more experience and perspective. Therefore, you should revisit the development action plan template regularly to account for this and adjust.  ‍

5. Create & execute the action plan 

Now that you’ve defined the vision, gaps, and goals you’re working with, you can create your action plan. To do this, outline the specific steps and resources they’ll need to close their developmental gaps and achieve their career goals. 

Your action plan may include: 

• Learning objectives, activities, and the specific actions they need to take to achieve their short and long-term goals.
• The resources and support that are available to them. Perhaps you offer a mentoring or development program or have a situation in mind where they can shadow another team member.  
• Any opportunities that are available to them and details about how they can take advantage of them. Perhaps another team member is going on maternity leave, so your employee could take on some of their responsibilities in the meantime to get a feel for the role.
• Any potential barriers and risks that may affect their ability to reach their goals. For example, combining study with full-time work can be challenging. This can lead to delays and loss of motivation, so you need to think about how to overcome these potential obstacles. One possibility is to integrate development into someone’s daily responsibilities and workload. For example, if they want to move into a project management role, you could give them the opportunity to lead a small team project.
• The timelines and milestones associated with their development trajectory.
• Their success criteria and details about how they’ll track and measure progress.
• Any adjustments they’ll make if they’re not achieving their goals in the specified timeframes.  ‍

5. Track & evaluate progress

As the employee puts their action plan into effect, they should track and measure progress along the way. This might involve measuring skills, knowledge acquisition, or professional growth. At the start of the process, they may want to use tools like self-assessment , peer-to-peer or manager feedback, or quizzes.

Regularly monitoring and evaluating progress fosters accountability and helps team members stay on track. It also allows you to adjust the employee’s career development plan template so it remains relevant to their goals and needs. 

Be sure to build in regular check-ins and include accountability tools in their plan, such as meetings with line managers or progress reports. Along with performance reviews, these offer valuable data-driven insights into employee growth and show where they have made meaningful forward movement.

Professional development can take a lot of time and effort, so encourage your report to reward themselves whenever they hit a milestone. You can also provide encouragement and recognition. For example, by shouting them out in a dedicated “wins” channel on Slack or by recognizing them on a Praise Wall . ‍

Pro tip 💡 ‍ Use a Competency Framework as the basis for performance reviews, 360° evaluations, and feedback. With Leapsome, you can even connect your feedback with specific skills and company values, making it more tangible and actionable.

Career development plan templates: Your roadmap to employee success 

Career development is a vital aspect of professional growth, both for employees and organizations. It benefits team members by providing a clear path for growth and benefits you by aligning their goals with your strategic objectives. 

Embracing career development planning can lead to a more skilled, engaged, and motivated workforce, fostering a culture of continuous learning and growth within your organization.

To create a career development strategy, you need to understand your employee’s current status, define their vision and goals, identify development gaps, set short and long-term goals, and build an action plan. 

Leapsome’s Competency Framework and career development plan template come together to provide a structured growth roadmap that’ll guide you both toward a successful professional future.

🤌 Align employee development with your organizational needs Leapsome lets you create and track tailored learning paths so employees can develop within your organization.  👉 Book a demo

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How to create an employee development plan [With real-life examples]

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Investing in a structured employee development plan can unlock your team’s full potential and propel your organization to new heights. This comprehensive guide will equip you with a step-by-step framework and real-life employee development plan examples to cultivate a culture of continuous learning to propel your business forward.

Introduction to employee development plans

An employee development plan is a structured program that outlines the steps for an employee to enhance their skills, knowledge, and overall performance. It is a collaborative effort between the employee and their manager, focusing on aligning individual aspirations with organizational goals.

Companies can foster a more engaged and productive workforce by providing employees with opportunities to grow. Development plans can encompass various learning methods, including on-the-job training, mentoring programs, online courses, workshops, and formal education.

The benefits of implementing employee development plans

A culture of continuous learning and development is not just beneficial – it’s essential for survival.  Implementing robust employee development plans is a strategic imperative for organizations aiming to thrive in the face of constant change and fierce competition. Let’s explore the multifaceted benefits that underscore the importance of prioritizing employee growth.

A well-structured employee development plan acts as a powerful retention tool .  When employees perceive a genuine investment in their career trajectories, their loyalty strengthens significantly.

In fact, research indicates that retention is 34% higher among employees who have opportunities for professional development .

By nurturing talent from within, organizations can cultivate a highly engaged workforce that’s less likely to seek opportunities elsewhere. This directly translates to reduced recruitment and onboarding costs, ensuring the retention of valuable institutional knowledge.

Furthermore, development plans empower employees to acquire new skills and enhance existing ones. This continuous upskilling not only elevates individual performance but also feeds directly into organizational growth. As employees become more adept in their roles and expand their skill sets, they contribute to increased productivity, efficiency, and innovation across the board. This internal capacity building enables companies to navigate industry shifts confidently, adopt emerging technologies, and maintain a competitive edge.

Investing in employee development also fosters a culture of learning and ambition. When employees see a clear path for advancement and skill development, they are more likely to be engaged and motivated. This, in turn, creates a positive work environment where individuals feel valued, challenged, and empowered to reach their full potential.  A compelling 94% of employees stated they would stay longer at a company that invests in their careers, highlighting the profound impact of development initiatives on loyalty and engagement.

By addressing skill gaps and nurturing future leaders, organizations can proactively prepare for future workforce needs.  Succession planning , facilitated by robust development programs, ensures a pipeline of qualified individuals ready to step into leadership roles. This strategic foresight minimizes disruption during transitions and ensures continuity in leadership, maintaining organizational stability and long-term success.

Comprehensive guide to creating an employee development plan

A well-structured employee development plan serves as a roadmap for both the employee and the organization to achieve shared goals. Here’s a step-by-step guide to crafting an effective plan:

Identifying business and individual goals

The first step in creating a development plan example is aligning individual aspirations with organizational objectives. Begin by identifying key business goals. Determine the skills, knowledge, and competencies required to achieve these goals. Simultaneously, encourage employees to reflect on their career aspirations, strengths, and areas they wish to develop. This collaborative approach ensures that individual growth contributes to overall business success.

Conducting a skills gap analysis

A skills gap analysis helps pinpoint the discrepancies between the current skill set of your workforce and the competencies needed to meet future demands. This analysis should encompass both hard and soft skills . For instance, if your business aims to implement a new software system, evaluate whether your team possesses the necessary technical expertise. Similarly, assess if your team has the communication and collaboration skills needed to work effectively on cross-functional projects.

Setting clear, achievable objectives

Once you’ve identified the skills gaps, establish clear, measurable, achievable, relevant, and time-bound (SMART) objectives for employee development. For example, instead of a vague objective like “improve communication skills,” a SMART objective could be “attend a public speaking workshop within the next quarter and deliver a presentation to the team by the end of the fiscal year.” This level of specificity provides employees with a tangible target to strive for.

Designing action plans tailored to individual needs

Each employee’s development plan should be unique, catering to their specific roles, career goals, and identified skill gaps. This is where having diverse development plan examples for employees can be very beneficial. A combination of on-the-job training, mentoring programs, online courses, workshops, and conferences can be incorporated.

For someone looking to enhance leadership skills, enrolling in a leadership development program could be beneficial. Whereas, for an employee aiming to specialize in a particular technical area, pursuing a relevant certification would be more appropriate.

Involving managers and mentors for support

Managers and mentors play a crucial role in supporting employee development. They can provide guidance, resources, and opportunities for employees to practice new skills. Regular check-ins and coaching sessions can help employees stay on track with their development planning example and make necessary adjustments along the way. This collaborative approach fosters a culture of continuous learning and development within the organization.

Monitoring progress and providing feedback

Employee development is an ongoing process, not a one-time event. Regular monitoring of progress and providing constructive feedback are essential for its success. Utilize performance reviews, one-on-one meetings, and 360-degree feedback to track progress and identify areas for improvement.

Recognizing and celebrating achievements along the way can boost employee morale and motivation.  Remember, feedback should be specific, timely, and actionable, empowering employees to continue growing and developing their skills.

Types of employee development plans with examples

Navigating the landscape of employee development requires a tailored approach, recognizing that one size does not fit all.  Let’s explore some prominent types of employee development plan examples, each addressing specific needs and objectives:

Goal-based development plans

As the name suggests, goal-based development plans center around achieving specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals are often tied to an employee’s role, department objectives, or overall company strategic goals.

Example: A marketing assistant aiming to step into a content writing role might have a goal-based development plan focusing on enhancing their writing skills. Their plan could include completing online content writing courses, attending industry workshops, and shadowing senior content creators.

Skill-based development plans

Skill-based development plans prioritize bridging the gap between an employee’s current skills and the competencies needed for future roles or enhanced performance. These plans often leverage training programs, workshops, or online courses.

Example: A customer service representative struggling to effectively handle challenging customer interactions could benefit from a skill-based development plan.  This plan might incorporate training on conflict resolution, active listening skills, and empathy building.

Leadership and succession planning

Investing in leadership and succession planning is crucial for the long-term health and sustainability of any organization. These development plans focus on identifying and nurturing high-potential employees, preparing them to assume leadership roles within the company.

Example: High-impact leadership organizations spend up to three times more on management development than their peers.

Leadership training has been shown to increase participants’ capacity for learning by 25% and their performance by 20% .  A company might create a leadership development plan for a high-performing individual contributor, enrolling them in leadership training, assigning them mentorship opportunities with senior leaders, and providing them with opportunities to lead projects and teams.

Career pathing and role transition plans

Career pathing and role transition plans support employees in navigating their career journeys within the organization. These plans provide a clear roadmap outlining potential career progressions and the skills, experiences, and development opportunities needed to achieve their career aspirations.

Example: An employee expressing a desire to move from sales to marketing could work with their manager to create a career pathing plan. This plan would identify the necessary skills and experience for a marketing role and outline the steps the employee can take, such as cross-functional projects or relevant training, to make a successful transition.

Innovative examples from industry leaders

Leading companies continuously seek innovative approaches to employee development .  These examples showcase the power of creative and forward-thinking development initiatives:

• Mentorship programs with a twist : Some companies are moving beyond traditional mentorship models to create reverse mentoring programs, pairing junior employees with senior leaders to foster knowledge sharing and diverse perspectives.
• Gamified learning platforms :  Introducing elements of gamification, such as points, badges, and leaderboards, into online learning platforms can increase employee engagement and motivation.
• Personalized learning journeys : Leveraging technology and data analytics, companies can now curate personalized learning journeys for employees, recommending relevant courses, articles, and resources based on their skills, interests, and career goals.

Key components of an effective development plan

A well-structured employee development plan is crucial for its success. Here’s a breakdown of key components:

• Clear objectives : Begin by defining specific, measurable, achievable, relevant, and time-bound (SMART) objectives. These objectives should align with both the employee’s career aspirations and the organization’s strategic goals. For instance, if an employee aims to become a team leader, their development plan might include objectives related to improving communication, delegation, and conflict-resolution skills.
• Personalized learning paths : Each employee has unique strengths and areas for improvement. Tailor development plans to address these individual needs. This personalization might involve a combination of on-the-job training, mentoring, online courses, workshops, or conferences. For example, a software developer looking to enhance their coding abilities could benefit from a learning path that includes online coding courses and participation in hackathons.
• Timeline and milestones : Establish a clear timeline for achieving each objective, breaking down large goals into smaller, manageable milestones. This approach provides employees with a roadmap for their development journey and allows for regular progress checks. Suppose an employee aims to become proficient in data analysis. The timeline could include milestones such as completing a data analysis course within three months, applying those skills to a work project within six months, and independently leading a data analysis project within a year.
• Regular feedback and evaluation : Continuous feedback is essential to keep employees motivated and on track. Incorporate regular check-ins with managers or mentors to discuss progress, provide constructive criticism, and make any necessary adjustments to the plan. Performance reviews can also serve as opportunities to formally evaluate progress and set new goals. Using DevSkiller TalentBoost’s manager assessment feature, managers can gain detailed insights into their team’s skills, making these conversations much more data-driven and objective.
• Flexibility and adaptability : Recognize that individual circumstances and career goals can evolve over time. Build flexibility into the development plan to accommodate these changes. Be open to revisiting and revising objectives and learning paths as needed to ensure the plan remains relevant and engaging for the employee. For instance, if an employee discovers a passion for a different area within the company, the development plan should be adaptable enough to explore new opportunities and adjust career goals accordingly.

Employee development plan examples

Don’t reinvent the wheel when you can learn from the best! Streamlining your HR processes becomes significantly easier with well-structured templates. To help you get started with creating your own employee development plans, I have provided two development plan examples.

Template 1: Simple employee development plan examples

This first template offers a simple, straightforward approach, ideal for organizations just beginning to implement formal development plans.

Employee Name: [Employee Name]

Job Title: [Job Title]

Department: [Department]

Date: [Date]

Development Goal: [Clearly state the specific skill, knowledge, or competency the employee aims to develop].

Example: Improve presentation skills to deliver engaging and informative presentations to clients.

Action Steps: [List 3-5 concrete actions the employee will take to achieve the development goal].

1. Attend a workshop on effective presentation techniques.

2. Practice delivering presentations to colleagues and gather feedback.

3. Shadow a senior team member during client presentations.

Resources: [Identify resources available to support the employee, such as training programs, mentorship, online courses, or budget for external workshops].

• Company-sponsored training on presentation skills.
• Mentorship from the Marketing Manager.
• Access to online resources like Coursera for public speaking courses.

Timeline: [Establish a clear timeframe for achieving the development goal, including deadlines for each action step].

• Complete presentation skills workshop within the next quarter.
• Practice and deliver a presentation to colleagues within two months.
• Shadow the Marketing Manager during client presentations for the next two quarters.

Measurement: [Define how the employee’s progress and the success of the development plan will be evaluated].

• Improvement in presentation skills assessed through feedback from colleagues and the Marketing Manager.
• Successful delivery of a client presentation (evaluated based on client satisfaction and project outcomes).

Template 2: Comprehensive development plan example

This comprehensive sample of employee development plans provides a more detailed framework, suitable for organizations seeking a robust system to foster employee growth.

Employee Information

• Employee Name:
• Department:

Development Goals

• Goal 1: [Clearly state the development goal].
• Description: [Provide a concise explanation of the goal].
• Metrics for success: [Define how progress and achievement will be measured].
• Action plan: [Outline specific steps, timelines, and resources].
• Goal 2: [Repeat for each development goal].

Competency Development

• Core competencies: [List the core competencies required for the employee’s current role and their current proficiency level].
• Target competencies: [Identify areas for improvement and set target proficiency levels].
• Development activities: [List specific activities to bridge the competency gap, including training courses, on-the-job experiences, mentoring, etc.].

Career aspirations

• Short-term goals: [State the employee’s short-term career goals (e.g., within 1-2 years)].
• Long-term goals: [State the employee’s long-term career goals (e.g., beyond 2 years)].
• Potential career paths: [Explore potential career paths within the organization aligned with the employee’s aspirations].

Support and resources

• Manager/supervisor support: [Outline how the manager will support the employee’s development].
• Mentorship opportunities: [Identify potential mentors within the organization].
• Training and development Budget: [Specify the allocated budget for the employee’s development activities].

Review and evaluation

• Review schedule: [Establish regular check-in points to review progress, provide feedback, and make adjustments to the plan].
• Performance evaluation: [Link the development plan to the employee’s performance evaluation process].

By providing your employees with development plan examples like these, you provide a clear roadmap for success, paving the way for both individual and organizational growth.

Employee Development Platforms: Enhancing the Learning Experience

In today’s rapidly evolving business landscape, embracing technology isn’t just an option—it’s an imperative.

This rings especially true for employee development .  As companies strive to foster a culture of continuous learning and upskilling, integrating a dedicated employee development platform can be transformative. But what exactly do these platforms offer, and how do they elevate the learning experience?

An employee development platform like DevSkiller provides a centralized hub for all development activities. Forget about disjointed spreadsheets and manual tracking. These platforms streamline the entire process, from identifying skill gaps and recommending relevant training to monitoring progress and measuring the impact of learning initiatives.

Let’s consider the impact of such a platform. Imagine accessing a comprehensive library of learning resources tailored to specific roles and skills, all within a single platform. DevSkiller, for example, leverages state-of-the-art skills ontologies to map over 4000 digital and IT skills. This empowers employees to acquire new knowledge and skills at their own pace, facilitated by personalized learning paths and engaging content formats.

Maintaining momentum: Following up on development plans

Creating a stellar employee development plan is a significant first step. However, the real magic happens when you prioritize consistent follow-up and evaluation. Without these elements, even the most meticulously crafted plans can lose their impact. Think of it like embarking on a road trip with a GPS but never bothering to check the directions – you might eventually reach your destination, but it will likely be a longer, less efficient journey.

Regular check-ins are crucial to ensure employees are on track to meet their objectives. These can be informal one-on-one meetings, quick progress reports, or even leveraging technology for digital check-ins. The frequency can vary depending on the plan’s complexity and the individual’s learning pace. Remember, the goal is to provide support, address roadblocks, and celebrate milestones, not to micromanage.

Feedback is another critical component of successful follow-up.  It’s not enough to simply ask, “How’s it going?” Instead, encourage open and honest conversations about what’s working well and where adjustments might be needed.  Remember, feedback is a two-way street. Encourage employees to share their insights and perspectives, fostering a collaborative approach to development.

By embedding a culture of continuous learning and development into the fabric of your organization, you’re not just investing in your employees’ futures – you’re investing in the future of your business.

Frequently asked questions about employee development plans

Navigating the terrain of employee development plans often brings up a few common questions. Let’s address these head-ons, providing clarity and practical insights.

What is the ideal duration for an employee development plan?

There’s no one-size-fits-all answer, as the timeframe should align with the specific goals, individual learning pace, and organizational context. However, a good starting point is to consider a plan spanning 6 to 12 months. This duration offers a balance between short-term achievements and long-term growth. For instance, a plan focused on acquiring a specific technical skill might have a shorter timeframe, while one geared towards leadership development could extend over a year or more.

How frequently should employee development plans be reviewed and updated?

Regular check-ins are crucial to keep the development journey on track.  A best practice is to schedule quarterly reviews as a starting point. These sessions provide a structured opportunity to discuss progress, address challenges, and make adjustments based on evolving needs or priorities.

How can I measure the effectiveness of our employee development program?

Measuring the impact of your development initiatives is essential to demonstrate their value. Consider employing a blend of qualitative and quantitative metrics. Track factors such as:

• Employee engagement and retention rates: Are employees more engaged and likely to stay with the organization after participating in development programs?
• Performance improvement:  Have you observed tangible improvements in individual or team performance metrics after implementing development plans?
• Goal attainment:  What percentage of employees successfully achieved the objectives outlined in their development plans?
• Feedback and surveys: Gather feedback from both employees and their managers to assess the perceived value and impact of the development initiatives.

By analyzing this data, you gain insights into the effectiveness of your program and identify areas for continuous improvement.

Concluding remarks: The future of employee development

Employee development plans are no longer optional but essential for navigating this dynamic environment. Organizations that prioritize investing in their employees’ growth will be best positioned to adapt and thrive in the future.

This forward-thinking approach requires embracing innovative learning methods, leveraging technology, and fostering a culture of continuous feedback and improvement.  By empowering employees to reach their full potential, businesses pave the way for both individual and organizational success. The future of work belongs to those who prioritize continuous learning and development. Get in touch with DevSkiller and learn more about how to develop and manage development plans or watch our 5-min demo .

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