What Is a HR Business Plan?

A HR business plan is a targeted and comprehensive plan that is geared towards achieving an organization’s human resource objectives. The broader plan may cover the more specific areas of HR. 

According to an article published by the University of Minnesota, a Human Resource Management (HRM) strategic plan must consist of six main parts. The plan must determine HR needs, establish a recruiting strategy, select employees, develop training plans, determine compensation, and conduct performance appraisals.

Areas of Human Resources

Human resources is often a core department in any company or organization. As a discipline, human resources covers several sub areas where each area plays a specific role in the servicing and development of a company’s workforce. The following are some of the most common areas in human resources. 

Compensation and Benefits: Salaries and wages are fundamental to any type of organization. Every company is expected to justly compensate a worker in exchange for the latter’s labor. Therefore, each company must always have an appointed HR practitioner in charge of the compensation and benefits of all the employees. How an organization conducts its payroll procedure is as basic as the need for human resources itself. In addition to wages, benefits is another key component. A lot of companies also extend healthcare or social security benefits to their workers as part of their employment package. Recruitment: Just like compensation, recruitment is another fundamental area in human resources. The very idea of human resources is grounded on tapping actual manpower to get particular jobs done within a professional environment. Without a recruitment channel, labor gaps cannot be filled or maximized. Recruitment and talent management are essential to a company’s growth and expansion. Hiring people most suited to a particular job is a critical task for human resources. Processes that involve applications, interviews, exams, and job offers of potential candidates are all categorized under the recruitment arm of human resources.Training and Development: Once employed under the company, workers need constant training and development to ensure that they stay competitive and motivated in the workplace. An important aspect of human resources is the development of skills and gaining of knowledge for all employees. Continuous education should always be promoted in the workplace. You may have the best and the brightest employees on your payroll, but even the best people need finetuning or training sometimes. Regular training can help your employees’ skills stay sharp and relevant. In a lot of cases, HR generalists with a background in organizational management or industrial psychology make great candidates for cascading developmental training to employees. Employee Engagement and Discipline: In addition to professional training, companies would do well to help their employees optimize their stay in the organization. Engaged employees make happy workers and disengaged workers make discontented employees. Employee engagement is a unique aspect of human resource management. It combines holistic development with collective and organization goals. Companies that strive to foster a sense of unity and solidarity within their organization are more likely to cultivate happier and more productive employees. A comprehensive and committed employee engagement strategy is key to achieving that. Whereas on the other side of the spectrum, HR is also tasked with enforcing discipline. Discipline is a serious and critical factor in making sure that workers contribute to a healthy, safe and decent work environment. Career Development: Although not all companies have comprehensive succession plans, the ones that do suggest that they truly value the career trajectory of their employees. Usually when departments conduct performance reviews or evaluations, the immediate head is tasked with assessing an employee’s work. The human resource departments then acts as a facilitator or mediator in these types of situations. Having a third party present is vital because it can help increase objective reasoning because an outsider’s perspective is present. Human resource’s role is to be that third party ‘voice of reason’. And aside from performance reviews, career development is another key aspect in providing employees support and direction. Actually sitting down with each employee and charting their professional path, or even just taking the time to counsel and mentor them, are valuable practices that will greatly serve the employee’s best interests in the long run.

Tips to Improve Human Resource Management 

Human resources can be a powerful channel and tool in promoting employee productivity and satisfaction. The following examples are simple tips that any human resource professional can put into practice to cultivate a more engaged and optimal workforce. 

Communication is key. Like most areas, communication is a key ingredient in making anything work. The human resource department serves as a central link and facilitator for the complex interconnectedness of an organization. Whether an employee is struggling or thriving, effective communication is needed on the part of the human resource department to properly convey the message- whether that message be of support or reprimand. Without communication, misinformation and misunderstandings will be much more commonplace. Encourage fraternity and team building. Human resource departments would do well to promote activities and initiatives that foster camaraderie and solidarity in the workplace. Through various team building programs, employees can get to know each other and build better relationships. Healthy interpersonal relationships can greatly improve professional relationships as well. Human resource personnel are tasked with the unique function of ensuring that the work environment is conducive not just to employees’ safety and well-being; but in that they are able to contribute to a positive company culture.Focus on the employee’s strengths. If you want to maximize your employees’ talent, the best thing to do is build and focus on their natural strengths. A good HR business plan chooses to focus on each employee’s strength and takes the necessary steps to further the development of these gifts or qualities. Another reason why it is important to highlight the strong points and assets of employees is because this allows them to feel empowered and valued by their employer. People need positive affirmation and if all the focus is on the individual’s weaknesses, it could damper the worker’s potential. Knowing how to bring out an individual’s untapped strengths and positive qualities takes a degree of expertise. So it is essential that those in the practice of human resources ought to have a healthy and extensive idea of human behavior and psychology. Aim for holistic development. Of course professional development and work output is the top priority; however, it is important to remember that professionals are people too. Not only is physical health vital for employees to function properly. The mental and emotional wellness of workers can also determine the effectiveness of his or her performance in the workplace. It is for this reason that human resource practitioners ought to concern themselves with the overall well-being of the employees. A lot of companies implement wellness programs to help their people balance the demands of work. Initiatives that focus on the holistic growth of employees are bound to produce long-term results that will benefit the whole organization. Conduct regular training. One of the main functions of a human resources department is to ensure that employees have constant growth in their professional life. In order to develop your company’s employees, the organization should heavily invest in the right skills training. This will help keep your employees’ knowledge and skills sharp and relevant. If you want your HR plan to be as targeted and specific as possible, make sure to include strategies that address employee skills and training.

How to Create a HR Business Plan

Crafting a HR business plan can be pretty lengthy and time-consuming. However, using existing templates that you can easily edit and customize will save you a lot of energy and time. Browse the different sample templates above and simply keep in mind these following steps: 

Step 1: Establish the Objectives

The first step in any business plan is identifying your objectives. What is your target with your HR business plan? What outcomes do you expect to come out of the plan? It is best to keep your objectives brief, specific, and straight to the point. In human resources, manpower is the primary concern. The overarching goal is the proper management of the workforce. It is absolutely critical that the entire HR team or department come together to properly align their objectives. All areas of HR should be represented when crafting the business plan objectives.   

Step 2: Clarify the Roles and Job Descriptions

Human resources as a discipline covers multiple roles. The next important step in creating your HR business plan is to clearly define the roles and responsibilities of each area in HR. Whether it is recruitment or payroll or employee engagement, each area of HR is equally important. Therefore, job descriptions and role assignments should be outlined in the business plan. Do not neglect to include the name of the HR practitioner responsible as this will promote accountability within the team. Lastly, you also might want to indicate the success indicators or measures of performance specific to each HR role.  

Step 3: Assess the Programs and Resources

The next step is to conduct a realistic and fair assessment of your organization’s HR practices. Have they been effective thus far? Or do you need to modify existing policies and improve them? In addition to doing this, you need to survey the existing resources and tools your department has at its disposal. You need a clear assessment of these so that you and your team will be better equipped to construct a more targeted business plan based on these important facts. Being able to assess and compare past programs with the present can serve as good progress tracking tools as well. It will enable you to effectively monitor what works well and what does not.    

Step 4: Identify the Strategies 

A business plan needs implementable strategies that will target the objectives. After identifying the roles and assessing the resources, you need to outline a detailed action plan that will allow you to address your goals and objectives. These action items must be attainable and measurable as much as possible. The more specific these actions are, the better. You also want to present these strategies in an organized manner, so a good format is key. You do not want to make the mistake of employing a messy and unsystematic format for your business plan. If you are unsure of the best format for your HR plan, feel free to browse the templates above for ideas.   


What is a HR business plan?

A HR business plan is a detailed plan that outlines the different tools and strategies needed to implement effective HR policies in a company or organization. This can cover a broad range of areas specific to human resources, including talent management and compensation. As much as possible, HR business plans need to be updated or modified as often as required depending on the needs of the company.

How do you write a human resources business plan?

To write a human resources business plan, you need to make sure your goals and objectives as a department are aligned and consistent. Start by identifying your departmental goals and the roles and responsibilities of each member. Once you have established these two major items, proceed to evaluating your company’s existing HR policies, practices, and resources; then outlining various strategies to accomplish the objectives you identified.

What are the 7 major HR activities?

According to Your Article Library, the seven major functions under human resource management are job analysis and design; recruitment; training and development; performance management; compensation and benefits; labor relations; and managerial relations.

A functioning human resources department is essential in any organization. Manpower is the driving force behind any successful company and without effective management of this key resource, a company cannot truly attain high levels of success. Create your own HR business plan with the help of any of the predesigned sample templates above.