Human Resource Planning (HRP) refers to a strategic and systematic planning of a company’s employee assets to meet the demands of the company in the future and present time.

HRP is a continuous process of identifying what the human resource needs of a company are and how to get the best employees that fit those needs. It entails a systematic planning of the use of human capital to meet both current and future needs.

There are four key processes in HRP are:

• Analysis of present labor supply in a company

Identification of the current human resource supply in a company. This involves knowing the human capital available in a company and different roles and performance levels of employees.

• Prediction of labor demand

This entails forecasting the future of a company’s workforce. Future needs of a company pertains to its workforce, which includes promotion, remuneration, lay offs, retirements and transfers of employees.

• Equating forecasted labor demand with labor supply

Predicting the employment demand. This involves knowing what the future needs of a company would be and preparing to meet such needs or demands.

• Helping an organization achieve its goals

This entails integration of plans and strategies with the overall plan of the company. This is the phase where the HR seek the financial capacity to execute all its plans and strategies. Collaboration with other departments in a company is also required.