What Is Included in a Personnel Management Plan?

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  • Written By: Amanda R. Bell
  • Edited By: E. E. Hubbard
  • Last Modified Date: 23 October 2019
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A personnel management plan is a portion of a business plan that details how a new business intends to hire, compensate, and utilize its potential employees. There are several different types of information found in this plan, including the number of employees that a company will need, the role of each employee, and the organizational structure of the business. A personnel management plan also includes information regarding how much each position will pay and the type of benefits that will be provided or made available to the employees by the company. Oftentimes, this type of plan will also lay out ideas or policies as to how a company plans to recruit the employees needed for operation, and how those employees will be managed.

The basic outline of a personnel management plan includes a breakdown of how many employees a company needs and what positions those employees will fill. Depending on the type of business, this may include the basic amount of employees and positions needed to start the business, as well as the projected amount of employees needed once the business is in good standing. In this portion of the personnel management plan, there will also typically be a breakdown of the organizational structure of the employees, including which positions will be responsible for other positions.


After the amount and types of positions are laid out, each position will be given a pay scale. This typically includes a range between a starting salary or hourly wage and the maximum amount that an employee can earn in that position. The personnel management plan will also break down the types of benefits that will be made available to each person depending on the position that he or she holds within the company. This can include insurance and retirement plans, as well as vacation and sick time. Oftentimes, not all positions will be eligible for all benefits, or the benefits may vary based on the position that an employee has; this information will also typically be indicated in a personnel management plan.

Whether the plan is being used to garner investments or simply as an internal strategy for the company to follow, the personnel management plan will typically include information as to how a company plans to recruit the employees needed to operate the business. This will contain information regarding where the business owner intends to advertise for employees and whether or not the company plans to use a temporary employment agency to fill positions. If the new business intends to hold a job fair or participate in one, this will also often be indicated in the personnel management plan.

Although the primary purpose of a personnel management document is to lay out how a company anticipates finding, utilizing, and compensating its workforce, it may also include information as to how the company will manage its employees. This often comes in the form of a potential employee handbook, which lays out the rules and expectations of employees of the company, and how promotions, layoffs, and potential firings may be handled. The employee handbook will also often describe what the employees can expect from the company itself as well as their supervisors.


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