The development of a human resources department will generally start with two people, the business owner and your human resources expert. Strategic human resources planning as you grow will depend on the size of your business, the industry you’re in and the breadth of knowledge possessed by candidates you select to staff the department. Understanding the challenges of manpower planning in advance will help you be ready for them well before they need to be implemented.
Human Resources Costs
Human resources is not a revenue-producing department. Consequently, budgeting for human resources functions should be carefully considered given other start-up costs and expenses for your business, according to the Society of Human Resource Management. The return on investment for your human resources department may not be measurable for quite some time; this means you might need to do more research to get certain programs, such as a new employee wellness initiative or morale-building program.
These programs often have a measurable impact on reducing health care costs and worker attrition, but you might be asked to show numbers to prove this. As your business matures and your human resources department contributes to the dynamics of your workforce, you will realize the return on your investment.
Educating Company Management
Today, the human resources field has evolved to demand a seat in the C-suite as a member of executive leadership. One of the problems of HR planning is a lack of understanding by other departments of this function. Everything a company plans must be carried out by competent people, so it’s important that HR weigh in on new initiatives to let management know the human capital that will be needed. This can also include spending money on training current employees or hiring new ones.
Building a reliable, proficient workforce is going to be the approach you need to watch your business flourish. The inclusion of human resources at the board table may meet with resistance from traditional executives who do not yet understand the value of a human resources expert being involved in the strategic planning of your company.
Employee Perception of HR
For many years, human resources departments have been equated as the business version of the principal’s office; where employees are invited only to receive disciplinary action or coaching. A human resources department that works to strengthen the employer-employee relationship is one that employees value and respect. Human resources staff interaction with the remainder of the workforce is vital to the success of your business overall, and in particular, the usefulness of the department.
Long-Term Staffing Issues
One of the challenges in human resource planning you are sure to encounter with staffing is the decision to hire human resources generalists experienced in all areas of human resources or to invest in specialists for each area, explains Indeed.com. For example, generalists focus on tasks such as hiring, training, wellness and benefits. At a small business just starting out, a generalist with a great deal of experience will probably be best until your company grows to the point where you require additional staff.
