As the new year unfolds, many employers are looking to amp up hiring for the coming year. As you plan for this process, you need to effectively prioritize and create your human resources business plan. This is a multi-step process that may seem daunting at first, but if you take it one step at a time, you’ll find you greatly improve the effectiveness of your HR department in terms of vision and performance. Here’s a look at the process of creating your HR business plan.
The HR business plan is vital for laying out the operations of your human resources department. There are four priorities that must be clarified during this process. The first of these, obviously, is to create the business plan itself. Within the business plan you need to finalize how your HR department will be organized, provide a solid basis for analytics and act as a role model to the rest of your company.
The seven steps in creating your business plan are:
- Define the context of your business
- Clarify and list your vision for HR
- Define the outcomes and deliverables
- Invest in HR practices
- Create a structure and governance for your HR department
- Define a plan of action
- Ensure the meeting of competencies
Defining the Context
As you begin your HR business plan, make sure to have a solid definition of your business environment, which recognizes and defines the expectations you have for key stakeholders and helps you to master your company’s business strategy.
The preferred outcomes of this step are that you have a greater understanding of your challenges and of the expectations of stakeholders as well as the strategies you need to undertake to meet these expectations and challenges.
Articulating the Vision
Ask the who, what and why of your HR vision. How do you act in the capacity of an HR department? Are you a guide? Are you a partner? A leader or architect? What do you do in this capacity—do you focus on hiring, training, building partnerships or expanding capabilities? Why do you do what you do? Is it to improve your own work force, are you seeking to be more competitive in the market or is it a combination of several factors?
In this step you are looking to define the function of your human resource department to both engage clients and build excitement among other HR professionals and within the company as a whole.
Deliverables and Outcomes
In this step you’re looking to be concrete and specific. What tangible benefits should come from your vision and function as an HR department? The plan should contain up to five concrete outcomes and deliverables that you guarantee the organization will gain.
In general, such deliverables improve your competitiveness in the industry and are very specific and measurable so you can evaluate your success as you go.
HR Investment Practices
Now, create a list of the practices your HR department must adopt to reach the deliverables listed. Include a list of alternative approaches in case your primary practices don’t work out or are not possible. Prioritize this list based on the most critical approaches and perform a cost-benefit analysis to make the right investment choices.
The goal in this step is clear: you need an understanding of what practices and approaches you have to implement to accomplish your goals.
Structure and Governance
Who does the work of your HR department, and what are the specific responsibilities of each? A specific responsibility outline is vital to effective functioning. If nobody knows where their job starts and stops, the department will function in chaos. With effective descriptions, on the other hand, you will have clear accountability and expectations for the work of your HR department.
The Action Plan
Once you have your visions, goals, practices and structure clearly outlined, you must define a plan of action to achieve these goals. You should once again turn to the who, what, when and where of your priorities and specific steps to accomplish these goals within the framework you have now defined.
This action plan will detail the responsibilities, resources, time frame and tasks that must be accomplished. It functions as a sort of project management for your HR department in the coming year.
Finally, make sure that you identify the critical competencies you need to have in place to meet the plan. This means assessing the current competencies in place and plans for how to improve them. Taking this final step will enable your HR professionals to achieve the specific goals of your business plan.
If you would like an evaluation of your HR policies, take a look at our HR services page and call us for an evaluation today!