January 14, 2019

3 Reasons HR Planning Needs to Be Part of Business Planning

Organizational Effectiveness, Strategy & Delivery

While human resources may not be the first department you think of when determining your monthly or annual business goals and objectives, the department needs a chair at the planning table. This is becoming more commonly understood in business today. In fact, a 2018 survey CareerBuilder reports that 65% of CEOs believe the opinions of HR leaders matter more to senior management than ever before. Is your company keeping up with this trend?

If not, you should be. Your HR leaders understand company culture and the day-to-day process of building a workforce that will optimize your human capital. Overlooking the importance of human resources while creating business goals can be detrimental to their success. Here are a few reasons why.


1. Strategic HR planning fills skill Gaps

Finding qualified talent to fill skilled roles within your company is one of the biggest issues facing organizations today. The right people are out there, but finding and acquiring that ideal candidate can be difficult. That’s where HR comes in. This is part of their job on a regular basis. They know which skills your company lacks or needs, what talents you need the most and what level of experience you have the most of. With that knowledge, HR can be a boon to both short and long-term strategic planning. You can plan ahead together regarding how to fill skill shortages or amp up talent needed before it becomes a crisis. You can work talent development, tempting benefit plans, and appealing cultural changes into your workforce in plenty of time for that mid-year hiring rush.


2. The role of human resources in employee engagement

The perception of employee engagement has adapted over the years, but HR leaders have always had their fingers on this pulse. They know which people and which departments are most engaged. They can predict where there will be the most employee turnover—a costly expense that no company wants to worry about. Including HR in your business planning can keep this concern on the table for all relevant goals and create the appropriate contingency plans. HR leaders also know what kind of programs keep employees happy, like career pathing, training, succession planning and mentorship. They know what works to retain productive and engaged employees. When these programs are planned out ahead of time and included in overall goal planning, it contributes to a smoother year with fewer surprises. This in turn makes it easier to attract new talent as everyone is looking for a collaborative and beneficial workplace culture.


3. HR can pave the way for growth

If you plan to increase your sales or production over the next year, or several years, you might need to hire more employees. If HR is included from the start with a preview of the direction the company is heading, they can plan ahead for growth. According to Forbes, a Data Engineer job can take on average 154.5 days to fill, while a Sales Engineer can take an average 119.7 days. Does your company have almost half a year to leave these positions unfilled? Incorporating HR in early planning can help shorten that hiring time. They can begin the work before the need is there and have the job filled right as it is needed.

Lost time and revenue from job vacancies is one of the most frustrating efficiency and cost holes. In addition to filling the role quickly, an HR rep can help ensure that all the right tools and tech needed for the jobs are ready and waiting for the right candidate. HR leaders can also help fill open positions in-house, with proper time and planning they can help groom employees to be promoted into positions where they are happier and more valuable.


How Aspirant Can Help

Adopting this comprehensive approach to planning has its challenges, but it is a critical component to reliably achieving strategic goals. Aspirant's Organizational Effectiveness and Strategy experts can help your leadership team develop a cohesive plan that takes all relevant dynamics into consideration. Use the form below to schedule a casual discussion about how we can better position your company for success.


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Judy partners with executives and leadership teams to engage and inspire employees in a way that delivers sustainable strategic results. She brings deep expertise and creative ideas to solve organizational effectiveness issues and closely collaborates in a way that builds internal capabilities. Judy has spent over 25 years consulting in a variety of industries, bringing her expertise in behavior to a wide range of organizational issues including organizational behavior change, leadership, change management, culture and engagement.

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