What is human resources planning?

Human resources planning is a systematic approach to HR in which a company recruits and selects enough quality workers to meet future production and performance needs. In addition to hiring practices, an effective HR plan outlines training and development needs to help workers meet job, department and organizational goals.

A human resources plan should align with the strategic goals of an organization. If a company wants to expand its personal selling emphasis, for instance, the HR plan may outline the number of salespeople and identify the requisite competencies necessary to meet the new sales goals. HR plans also protect against the huge expense of hiring the wrong people, which leads to a high turnover rate.