Human Resource Planning is the process that connects the necessities of the organization to the strategic plan to make sure that there is an appropriate number of qualified and competent staff in order to achieve the organization's planned missions. HR Planning is very important for any organization to be able to visualize their short and long term goals, complete them, and maintain a competitive advantage while reducing turnover and improving retention rates.
Strategic HR planning is very important to strategic HR management because it links HR management directly to the strategic plan of an organization. A strategic plan helps guide companies into creating and meeting their goals. Routinely completing and monitoring financial plans in order to achieve organizational goals are also a major component to a company. Although workforce plans are not as common, they are just as important.
Organizations ranging in size from as little as 10 staff members to 500 should focus on strategic HR planning to guide decisions about the future. Based on the human resource planning, HR management decisions can affect the future direction of the organization. Especially due to factors such as the cost of recruitment and training, it is important to budget for it while organizing the operating finances.