The Challenges Of Human Resource Planning (2023)

Human Resource Planning Challenges And Payoffs

It's Hard, Almost An Impossible Task To Do Human Resource Planning Effectively

The Challenges And Value Of Human Resource Planning

By Robert Bacal

Human resource planning is about ensuring that the organization has the employees it will need in the future, in the right jobs, with the right skills, and it's one of the most challenging types of planning we cover on this site. In fact, it may be the most complex kind of planning a company can undertake. Why?

Consider the following points:

  • Human resource planning can only be as good as the ability of the company to predict what will happen OUTSIDE the company, economic trends, upturns, downturns, what competitors are doing, and a raft of other things the company has no control over. Often HR staff don't have the skills and background to predict these events with any success.
  • The pace of change is so quick in the workplace that it's hard to predict what skills (and therefore, what employees, will be needed in even the near future.
  • People make decisions about their own careers, whether to stay or go, and these days, there's much more movement of employees from company to company. No longer do employees expect to stay at the same company for decades, and often their "moves" occur without warning, and even with two weeks notice. When people are involved, prediction becomes much harder.
  • Company growth (or for that matter, contraction) is difficult to predictin today's world. Successful companies can crash and burn quickly, or lose revenue, resulting in a need to layoff staff in an uncontrolled and unplanned way. The flip side is that as companies succeed and expand, not only do they need more employees, but theskills they require will change.
  • Human resources planning needs to be linked to the overall strategic direction of the company, and HR needs to have a seat at the strategic table to both define that strategic direction, and to have information about corportate strategy. Unfortunately, HR is still seen as a nuts and bolts part of the organization rather than a strategic lever to make things happen. Not only is HR left "unheard", but the skills of HR staff are often not strategic in nature, but oriented towards the completion of short term tasks, like getting people hired, or more tactical functions.

What Needs To Change In HR

  • Companies need to shift HR's focus from nuts and bolts administration, to seeing HR as a strategic function that can have profound benefts on into the future. Having the right people at the right time, and the ability to create workforce stability (few layoffs) may eventually be a critical success factor. That's not the case yet, but HR has never been considered strategic.
  • HR staff need to have different skills and abilities to succeed in a dynamic and strategic HR world. No longer can we afford HR staff who are "administrators of programs", who have no ability to think strategically.
  • HR needs a seat at the executive table. CEO's need to both listen to, and include HR in the decision-making process, and that includes the strategic planning process.

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(Video) Top Challenges in Human Resource Management

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  • Updated On:25-Jul-2018 - 19:31:22


    What are the challenges of human resource planning? ›

    10 of Today's Common Human Resource Challenges
    • Job design and analysis.
    • Workforce planning.
    • Training and development.
    • Performance management.
    • Compensation and benefits.
    • Legal issues.

    What are three challenges facing human resources practices? ›

    HR deals with many issues, but probably the biggest challenges facing HR Departments today are Recruitment, Retention & Motivation, Leadership Development and Corporate Culture. As HR works to move to a more strategic role, addressing these issues has become a continual and time-consuming process.

    What are the 7 competitive challenges facing human resource management departments? ›

    7 Challenges Facing HR Departments today
    • #1. Battle for Top Talent. ...
    • #2. Effectively Handling Sexual Harassment Issues. ...
    • #3. C-Suite Suitable. ...
    • #4. Growing Cross-Functional and Cross-Generational Teams. ...
    • #5. An Increased Focus on Succession Management. ...
    • #6. Embracing and Managing Technology for HR. ...
    • #7.
    Jan 11, 2018

    What is human resources planning? ›

    Human resource planning (HRP) definition: Human resource planning is a technique company uses to balance its flow of employees and prevent situations such as team member shortages or surpluses. This also ensures that the business has the right people with the appropriate skills and ability to build a strong workforce.

    What is human resource planning process? ›

    Human resource planning (HRP) describes an ongoing, data-driven process in which a company systematically plans for the future in terms of human resources to ensure that available jobs are suited with appropriately skilled employees.

    What is the most challenging part of HR? ›

    Top 4 Challenges Faced by Human Resources Professionals
    1. Identifying and hiring candidates for open jobs. ...
    2. Conducting employee terminations or layoffs. ...
    3. Managing benefits and perks programs. ...
    4. Ensuring internal and external compensation equity.
    Sep 23, 2015

    What is the importance of human resource planning? ›

    Human resource planning (HRP) allows a business to better maintain and target the right kind of talent to employ — having the right technical and soft skills to optimize their function within the company. It also allows managers to better train and develop the skills needed amongst the workforce.

    What are challenges of management? ›

    The 12 Most Common Challenges Faced by New Managers
    • Motivating Others. ...
    • Managing Performance and Accountability. ...
    • Coaching, Developing, and Mentoring Others. ...
    • Communicating. ...
    • Delegating and Micromanaging. ...
    • Managing Conflict. ...
    • Working With a Range of Employees. ...
    • Doing More With Less.

    Why is it difficult to manage human resources? ›

    Increasing concerns of Job Security, Benefits and Services

    The risky jobholders need high benefits and services. The employees demand for salaries, benefits, services, less risky job, reduced workloads etc are having challenging to the human resource managers.

    What are the top most challenging issues facing human resources in 2020? ›

    To help you stay abreast of the changes, here is a closer look at the issues facing HR this year:
    • Finding And Landing High-Quality Talent. ...
    • The Revolving Door Of Talent. ...
    • Developing The Next Generation Of Leaders. ...
    • Finding Resources For Workforce Development. ...
    • Achieving Diversity With Inclusion.
    Apr 6, 2020

    What is a challenge that is facing the human resource managers of today quizlet? ›

    One challenge faced by today's human resource managers is the fact that workers overseas often work for lower wages and are subject to fewer laws and regulations.


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