How Do I Create a Company HR Plan?

The Milestone Team February 5, 2024
How do I create a company HR plan

An HR strategic plan takes into account what you can currently accomplish, what your future goals are, and what changes you need to make to reach those goals. Outsourced HR for startups can help startups keep a lean organization while still creating and implementing plans that enable your most valuable resource—your people—to perform at their best. In this blog, we show you how.

What Are the Most Important Aspects of HR?

The most important aspect of HR is to make your back office functional, so your front office can shine; this includes managing the following:

  • Talent recruitment
  • Onboarding and Training
  • Professional Development
  • Compensation and Benefits
  • Employee Relations
  • Legal Compliance
  • Safety Procedures
  • Performance Evaluations

While these functions are critical for any business to get right, they can be especially challenging for startups to fulfill. Tight budgets, small teams, and rapidly changing market conditions can make investing in HR feel like an afterthought. But this line of thinking can be a trap. After all, HR manages and enables your revenue-generating team members to succeed. In fact, LinkedIn reports that 60% of businesses’ monthly budgets go towards employees who generate revenue, which means that HR manages your largest investment!

There’s a lot riding on your HR team’s success. If you need support fulfilling essential HR functions without straining your budget, give our team a call.   

What Should Be in an HR Strategic Plan?

An HR strategic plan in 2023 and beyond should focus on developing and optimizing your startup’s most valuable resource—your people. Therefore, an HR strategic plan should include one of the following initiatives:

  • Resolving conflict between employees and other personnel issues.
  • Recruiting new employees that have both a great talent and culture fit.
  • Maximizing your team’s skillsets through training and ongoing professional development.
  • Mapping paths for advancement to reward and incentivize employees.

What’s the point of these initiatives? They all work together to assemble the best employees, give them the tools they need to succeed, and provide incentives for your employees to consistently put forth their best efforts.

If your current HR strategy doesn’t include these plans, it’s time for a change. Get in touch to supercharge your HR team and accomplish employee-centered goals.

What Are the 3 Core Elements of an HR Plan?

The 3 core elements that an HR strategic plan template should contain are:

  • Forecasting Human Resource Needs
  • Evaluating Current Human Resource Capabilities
  • Bridging the Gap Between Current Capabilities and Future Needs

In other words, HR strategic planning looks at where you are, where you want to go, and what you need to do to get there.

What Are the 7 Steps in HR Planning?

As we delve deeper into the intricacies of Human Resources (HR) planning, it’s crucial to understand the foundational steps that underpin this strategic process. HR planning is not just about filling current vacancies; it’s a forward-looking approach aimed at aligning an organization’s workforce with its long-term business goals. This section will outline the seven essential steps in HR planning, providing a roadmap for HR professionals and business leaders alike. From understanding and aligning with business objectives to monitoring and adjusting strategies, these steps form the backbone of effective HR planning. Additionally, we’ll explore how integrating outsourced HR services can enhance these strategies, offering fresh perspectives and expert guidance. Whether you’re looking to refine your current HR practices or build a robust HR framework from the ground up, these insights will equip you with the knowledge to drive your organization forward.

  1. Understand and Align on Business Goals: This step involves thoroughly analyzing the organization’s strategic objectives. HR needs to understand where the business is headed and what it aims to achieve in the short and long term. This understanding enables HR to align its strategies and workforce planning with the company’s goals, ensuring that the human capital is geared towards fulfilling these objectives.
  2. Assess Current Performance: Here, HR evaluates the current workforce’s performance, identifying strengths, weaknesses, opportunities, and threats (SWOT analysis). This assessment covers individual and team performances, leadership effectiveness, and how well the current workforce meets the organization’s needs. Understanding these aspects helps in pinpointing areas for improvement and development.
  3. Forecast Demand: Forecasting demand involves predicting the future human resources needs of the organization based on its strategic goals. This includes assessing the types of skills, number of employees, and roles that will be required in the future. Demand forecasting is critical for proactive planning, helping to anticipate and meet the organization’s talent needs.
  4. Estimate Current Gaps: After forecasting the future demand for human resources, the next step is to identify the gap between the current workforce and future needs. This involves analyzing the differences in the skills, competencies, and number of employees currently available versus what will be needed to achieve business goals. Identifying these gaps early allows for timely planning to bridge them.
  5. Formulate a Plan: With a clear understanding of the workforce needs and current gaps, the next step is to develop a strategic HR plan. This plan outlines how to attract, develop, and retain the talent necessary to meet future demands. It includes strategies for recruitment, training and development, succession planning, and employee engagement initiatives.
  6. Execute the Plan: Execution involves putting the strategic HR plan into action. This step requires effective project management, resource allocation, and communication strategies to ensure the plan’s successful implementation. Execution may involve recruiting new talent, launching development programs, and implementing retention strategies, among other actions.
  7. Monitor the Plan’s Performance and Make Adjustments: The final step in the HR planning process is to monitor the plan’s effectiveness and make necessary adjustments continuously. This involves measuring performance against predetermined goals, gathering feedback, and analyzing data to identify areas for improvement. Adjustments may be needed to address unforeseen challenges or changes in the business environment.

Outsourcing certain HR functions can add significant value to the strategic planning process. Companies like Milestone offer expertise in partnering with businesses of various industries and growth stages, providing tailored solutions that support strategic initiatives. Outsourced HR services can help in areas such as talent acquisition, employee development, compliance, and HR technology, allowing the internal HR team to focus on strategic alignment and execution.

For more HR strategic plan examples, view our case studies. If you want to find out how your startup can see similar results, reach out to our team.

How Do I Create a Company HR Plan?

Company HR plans need to be future-facing and data-driven. To create a plan that moves your startup forward, start by collecting data that’s relevant to a particular initiative. For example, if you’re losing team members, start tracking turnover rates and how long the average employee stays with your company. From there, you can identify the key metrics you need to improve to reach future goals, such as reducing employee turnover. To support this goal, you can pursue initiatives like improving company culture and implementing professional development opportunities.

Plan for Success with Milestone

If your HR strategic plan template doc needs an overhaul, consider outsourced HR services. These services provide your team with an outside perspective that has worked with other startups to achieve the goals on your list. Not only can these services launch your team forward, they can even save your startup money. Contact us today to learn more. 

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