Personnel Planning (4 Simple Steps)

Personnel planning is the first step you will undertake when hiring your first employees. Chances are when starting a business you will need to hire employees to help you in your day-to-day activities. It’s important to note that when you hire your first employees you are now regulated by the government on matters regarding employee management and relationships.

It’s important to consult with an account on matters relating to your employee’s payroll and your local employment development agency for matters relating to other regulations.

Hiring your employees, managing them, and firing them is regulated by employment law. Personnel planning involves conscious hiring as a thoughtful process of minimizing the risks involved in the process. The key to sustaining a healthy relationship with your employees lies in the personnel planning processes you will undertake.

What do you mean by personnel planning?

Personnel planning is the process of anticipating an organization’s future human resource requirements and deciding how the organization’s existing human resource capacity might be used to meet those requirements. As a result, it focuses on the fundamental economic notion of demand and supply in relation to the organization’s human resource capability.

It is the Personnel planning process that assists the organization’s management in fulfilling the organization’s future human resource demand by providing suitable people in the appropriate numbers at the appropriate time and place.

Furthermore, management may only begin the recruiting and selection process when a thorough analysis of the Personnel planning requirements has been completed. Personnel planning is also critical to the organization’s performance in accomplishing its strategy and objectives. Indeed, with the inclusion of strategies and long-term organizational objectives in human resource planning these days, Personnel planning has evolved into Strategic Personnel planning.

What are the objectives of personnel planning?

The goals of personnel planning differ based on the stages of a business, for example, an existing business might need to fill an existing gap left by an employee who has quit, and a start-up might require to supply new employees to start the business with.

Personnel planning

Successful personnel planning objectives include effective both personnel employment and successful utilization of business personnel to meet forecasted business objectives. Also used for personnel planning are salary lists that contain employee information relating to employee payments.

A personnel plan should strengthen employee relations, write administrative manuals, employ new management, and conduct reviews to ensure that all employees are meeting corporate goals and expectations. The major focus objectives of personnel planning are recruitment and formulating future plans relating to employees.

The following are some of the general basic personnel objectives:

  1. Personnel planning helps in analyzing business objectives.
  2. Personnel planning helps business owners understand the business’s manpower.
  3. Personnel planning helps forecast the supply and demand of manpower.
  4. Personnel planning helps estimate gaps in human resources.
  5. Personnel planning helps in the formation of the human resource action plan.
  6. Personnel planning monitor, control and get responses from human resource management.

Personnel Planning Steps.

Many factors must be addressed while creating a personnel plan. For example, a human resources shortage or excess in the organization? Is there a current plan in place for recruiting, hiring, training, educating, appraising, compensating, and reviewing employees? Is the present level of service adequate to address both current and future employees’ requirements?

There are some basic steps you can undertake that will minimize the risks of hiring the wrong employees, and increase the chances of hiring the best of employees by undertaking the right personnel planning process, they include:

1. Analyze Your Business Personality.

Every business has a business personality that is loved by the employees, customers, vendors, and management. Business personality is created by the day-to-day interaction of your business and the customers.

The first task in the personnel planning process is to identify the personality you would like your business to have, Business personality will help you hire the right candidate that will fit in the mix without causing trouble.

An example of a business employee’s client’s personality is that of a helpful problem-solving employee that helps customers in their interaction with the business. An employee who is knowledgeable of the products and services, and customer relationship is always helpful in realizing your business personality goals.

In order to plan for the right candidate, it’s important to have a forecast ready for the personnel planning process, this table will allow you to understand the current manpower, required manpower, and the level of experience you will need to attract.

A sample of a recruitment forecast is shown in the table below:

ApplicantsCurrent EmployeesTraining or New Hires
Fluent3810Not Needed
4 Years of Previous experience252New Hires
Experience in Leadership102New Hires
Sample personnel requirements

2. Write Your Staffing Schedule.

Start-up business hires their employees according to their current staffing requirements and add more staff as the business grows, small business hires employees on a weekly or monthly work schedule, it’s also common for start-up and small business to hire temporary employees.

It’s important to have a recruitment budget, that will help you estimate the salary expected, the number of employees to be hired, their experiences, and the recruitment expenses.

A sample of a recruitment budget is shown in the table below:

Years of ExperienceFresher0-4 Years5-7 years
Salary Budget (USD MM)4710
No of Employees to be Hired231
Total Recruitment Expenses41215
Recruitment Budget Sample

All the salaries of your employees are fixed expenses including the owner’s salary if you decide to pay yourself. As an employer, you are also required to pay 14% taxes for your employees to the federal government. It’s important to note taxes fluctuate and other taxes might be included based on your state, you might also be asked to pay workers’ compensation insurance – It’s important to consult with your local accountant for more information on your state taxes.

3. Write Job Descriptions.

The next step involves writing job descriptions for the employees you will hire, there are several things to include in a job description they include:

  • Job title.
  • Job duties.
  • Skills required
  • Education background
  • Manager
  • Wages.

4. Control and Evaluation.

The final part of the Personnel planning process is control and assessment. Budgets, objectives, and standards are all included in any Personnel plan. The organization’s progress will be assessed and tracked against the plan.

During this last phase, the organization will assess the number of individuals hired in comparison to the established (both those in post and those in pipeline) and the number of people recruited in comparison to the recruiting objectives.

In addition, the cost of employment is compared to the budget, as well as the amount of waste that has accrued, so that corrective action may be taken in the future.


Personnel planning is frequently regarded as a “necessary evil” that is undervalued since it is not a revenue-generating component of the company.

Personnel planning, on the other hand, is crucial for developing productive, happy workers and sustaining a workforce capable of meeting the company’s primary business objectives. Personnel planning helps to establish how workers services their respective organization’s requirements and how to scale those services amid expected future expansion.

What are the main steps of personnel planning?

Step 1: Identify the requirements for the job, including the person’s background, education, work experience, skills, and characteristics.
Step 2: Determine the duties, responsibilities, and working conditions.
Step 3: Develop the job offer.
Step 4: Present the job offer and negotiate with the applicant.

What are the objectives of personnel planning?

Personnel planning is a process of managing the organization’s needs and wants. It involves organizing people and resources to accomplish goals. It helps to determine the needs and wants of the organization and plans how to achieve them.

What are the activities involved in personnel planning?

Personnel planning analyzes how to effectively and efficiently manage the workforce during an organizational process. It is an important aspect of any organization and has the potential to make an organization more successful.

What are personnel planning and forecasting?

Personnel planning and forecasting is the process of estimating the future needs of your company. It includes identifying your requirements, anticipating future needs, and creating a plan for meeting your future needs. It is a process of determining how much staff you need to meet the demands of your business.

What are HRP and its process?

Human Resources Professionals are responsible for developing the entire HR team and its processes. They ensure that each member of the organization fulfils their responsibilities and that the policies and systems are in place. They also ensure that the processes are followed throughout the company.

How do you forecast personnel needs?

It’s easy: look at the current skillsets of your existing personnel. Who is overqualified or underqualified? Who has the right skills but needs to be trained? Who isn’t using their skills (and who needs to be trained)?

James Ndungu

James is a one-on-one business consultant who helps CEOs, executives, and solopreneurs build their personal and professional branding.

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