Definition: human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals.
Simply, we try to answer the question “how many workers do we need?”.
For example: This year we need 44 salesman and 4 managers, next year we need 50 salesman and 5 manager and so on.
This year | Next year | |
Salesman | 44 | 50 |
Manager | 4 | 5 |
There are so many methods to calculate current and future human resources needs. Some people calculate based on worker output and marketing plan. Others calculate based on chronological data.
1. Calculate based on worker output and marketing plan
To measure the human resources needs, we can calculate the ratio of business demand to worker output (labor is assumed to be homogenous). The human resource need equal the business demand divide the worker output.
For example:
– Business demand: This year, we want to sell 660 millions.
– Worker output: Each worker can sale average 15 millions
– The human resource needs equal 660/ 15 = 44.
– The human resource need: 44 workers.
Marketing plan shows us the business demand over the years, so we can calculate the worker demands each year.
From marketing plan, we can predict future human resources needs.
Year | 1 | 2 | 3 | 4 | 5 |
Business demand | 660 | 759 | 986 | 1973 | 2565 |
Salesman | 44 | 50 | 66 | 132 | 171 |
2. Calculate based on chronological data.
We use regression to predict time series. By using a statistical model, we can estimate worker demand.
Year | Worker |
2012 | 7210 |
2013 | 7287 |
2014 | 7291 |
2015 | 7312 |
2016 | 7348 |
From the data table above, we can find the association between labor demand and time. The equation (y = 30.1x – 53332) predict the labour demand each year.
