What Is the Importance of HR Planning?

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  • Written By: Whitney Leigh White
  • Edited By: C. Wilborn
  • Last Modified Date: 20 October 2019
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The most important reason to implement HR planning is that it helps entities meet organizational goals. This type of planning links the management of human resources to the actual operational processes of an organization. Many businesses have discovered through HR planning that they can define what goals are to be accomplished within certain time periods, while at the same time aligning what human resources will be needed to achieve these goals. Some of the most vital reasons to implement this type of planning are to counteract uncertainty and change, to maximize career development and employee retaining methods, and to stimulate innovative thinking within an organization. The importance of HR planning is also felt when downsizing methods must be implemented.

Many businesses endure the uncertainty that surrounds change before realizing the importance of HR planning. Change can be a struggle for all types of organizations, especially those that are undergoing expansion or which stay in operation for a long time. HR planning has the ability to counteract or manage this uncertainty because it prepares for the maximum amount of change possible, lining up the proper amount of human resources to deal with it. Having the right resources at the right place at the right time can make change easier to handle, and show the clear importance of HR planning.


Maximizing career development within an organization, along with improving employee retention, are other important reasons to use this type of planning. HR planning has helped many companies pinpoint which lower-level employees have the potential to be future organizational leaders. This is a critical step to take, so that essential positions within a company can be filled when they become open. Employee retention is also often improved through HR planning because it allows management to identify productive workers and provide them with the motivation to continue their hard working practices.

The importance of HR planning for many businesses is mainly felt through the innovative thinking they gain. This type of thinking is obtained when issues arise between decision making methods and available resources; by being prepared and looking forward, management know if they have the resources to implement new projects. Many businesses find that, by improving their thinking processes, great ideas are developed. Many times, these ideas have led to small businesses becoming huge corporations.

Even when businesses are not expanding, the importance of HR planning is still felt; this is especially true during times of downsizing. HR planning helps organizations cut the appropriate employees in the most painless manner possible, while at the same time shielding the company from enduring detrimental effects. By identifying which employees need to be retrained, let-go, or transferred, downsizing can take place more efficiently.


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