{"id":37,"date":"2017-02-24T17:53:02","date_gmt":"2017-02-24T22:53:02","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/hrm1stcanadianedition\/?post_type=chapter&p=37"},"modified":"2017-06-13T14:38:27","modified_gmt":"2017-06-13T18:38:27","slug":"3-2-writing-the-hrm-plan","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/hrm1stcanadianedition\/chapter\/3-2-writing-the-hrm-plan\/","title":{"raw":"3.2\u00a0Writing the HR Plan","rendered":"3.2\u00a0Writing the HR Plan"},"content":{"raw":"
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Learning Objectives<\/h3>\r\nBy the end of this section, you will be able to\r\n
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  1. Describe the steps in the development of an HRM plan.<\/li>\r\n<\/ol>\r\n<\/div>\r\nAs addressed in\u00a0Section 3.1, \"Strategic Planning<\/a>,\" the writing of a human resource management (HRM) strategic plan should be based on the strategic plans of the organization and of the department. Once the strategic plan is written, the human resource (HR) professional can begin work on the HR plan. This is different from the strategic plan in that it is more detailed and more focused on the short term. The six parts described here are addressed in more detail in following chapters.\r\n
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    Compensation is a Touchy Subject<\/h3>\r\nHow would you handle this?\r\n\r\n \r\n\r\nAs the HR manager, you have access to sensitive data, such as pay information. As you are looking at pay for each employee in the marketing department, you notice that two employees with the same job title and performing the same job are earning different amounts of money. As you dig deeper, you notice the employee who has been with the company for the least amount of time is actually getting paid more than the person with longer tenure. A brief look at the performance evaluations shows they are both star performers. You determine that two different managers hired the employees, and one manager is no longer with the organization.\r\n\r\n<\/div>\r\n\r\n[caption id=\"attachment_194\" align=\"aligncenter\" width=\"450\"]\"\"<\/a> Figure 3.2 <\/strong>As you can see from this figure, the company strategic plan ties into the HRM strategic plan, and from the HRM strategic plan, the HR plan can be developed.[\/caption]\r\n\r\nThe six parts of the HR plan include the following:\r\n
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    1. Determine human resource needs<\/strong>.\u00a0This part is heavily involved with the strategic plan. What growth or decline is expected in the organization? How will this affect your workforce? What is the economic situation? What are your forecasted sales for next year?<\/li>\r\n \t
    2. Determine a recruitment strategy<\/strong>.\u00a0Once you have a plan in place, it\u2019s necessary to write down a strategy addressing how you will recruit the right people at the right time.<\/li>\r\n \t
    3. Select employees<\/strong>.\u00a0The selection process consists of the interviewing and hiring process.<\/li>\r\n \t
    4. Develop training<\/strong>.\u00a0Based on the strategic plan, what are your training needs? Is there new software that everyone must learn? Are there problems in handling conflict? Whatever the training topics are, the HR manager should address plans to offer training in the HR plan.<\/li>\r\n \t
    5. Determine compensation<\/strong>.\u00a0In this aspect of the HR plan, the manager must determine pay scales and other compensation such as health care, bonuses, and other perks.<\/li>\r\n \t
    6. Appraise performance<\/strong>. Develop sets of standards so you know how to rate the performance of your employees and continue with their development.<\/li>\r\n<\/ol>\r\nEach chapter of this text addresses one area of the HR plan, but the next sections provide some basic knowledge of planning for each area.\r\n

      Determine Human Resource Needs<\/h2>\r\nThe first part of an HR plan will consist of determining how many people are needed. This step involves looking at company operations over the last year and asking a lot of questions:\r\n
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      1. Were enough people hired?<\/li>\r\n \t
      2. Did you have to scramble to hire people at the last minute?<\/li>\r\n \t
      3. What are the skills your current employees possess?<\/li>\r\n \t
      4. What skills do your employees need to develop to keep up with technology?<\/li>\r\n \t
      5. Who is retiring soon? Do you have someone to replace them?<\/li>\r\n \t
      6. What are the sales forecasts? How might this affect your hiring?<\/li>\r\n<\/ol>\r\nThese are the questions to answer in this first step of the HR plan development process. As you can imagine, this cannot be done alone. You will need to involve other departments, managers, and executives to obtain an accurate estimate of staffing needs for now and in the future.\r\n\r\nMany HR managers will prepare an inventory of all current employees, which includes their educational level and abilities. This gives the HR manager a big picture on what current employees can do. Knowing the skills and abilities of employees can help guide development opportunities. For example, by taking an inventory, you may find out that Richard is going to retire next year, but no one in his department has been identified or trained to take over his role. Keeping the inventory helps you know where gaps might exist and allows you to plan for these gaps.\r\n\r\nHR managers will also look closely at job components and analyze each job. This allows them to get a better picture of what kinds of skills are needed to perform a job successfully. Once the HR manager has performed the needs assessment and knows exactly how many people, and in what positions and time frame they need to be hired, the HR manager can get to work on recruiting, which is also called a staffing\u00a0plan.\r\n

        Recruit<\/h2>\r\nRecruitment is an important responsibility of the HR manager. Knowing how many people to hire, what skills they should possess, and hiring them when the time is right are major challenges in the area of recruiting. Hiring individuals who have not only the skills to do the job, but also the attitude, personality, and fit can be the biggest challenge in recruiting. Depending on the type of job you are hiring for, you might place traditional advertisements on the web or use social networking sites. Some companies offer bonuses to employees who refer friends. No matter where you decide to recruit, it is important to keep in mind that the recruiting process should be fair and equitable and diversity should be considered. We discuss diversity in greater detail in Chapter 4, \"Diversity and Multiculturalism<\/a>.\"\r\n\r\nDepending on availability and time, some companies may choose to outsource their recruiting processes. For some types of high-level positions, a head hunter will be used to recruit people nationally and internationally. A\u00a0head\u00a0hunter<\/strong>\u00a0is a person who specializes in matching jobs with people, and they usually work only with high-level positions. Another option is to use an agency that specializes in hiring people for a variety of positions, including temporary and permanent positions. Some companies decide to hire temporary employees because they anticipate only a short-term need, and it can be less expensive to hire someone for only a specified period of time.\r\n\r\nNo matter how it is done, recruitment is the process of obtaining the r\u00e9sum\u00e9s of people interested in the job. In our next step, we review those r\u00e9sum\u00e9s, interview, and select the best person for the job. We address recruitment is more depth in Chapter 5, \"Recruitment<\/a>.\"\r\n

        Select<\/h2>\r\nAfter you have reviewed r\u00e9sum\u00e9s for a position, it is time to work toward selecting the right person for the job. Although we discuss selection in great detail in Chapter 7, \"Compensation and Benefits<\/a>,\" it is worth a discussion here as well. Numerous studies have been done, and while they have various results, the majority of studies say it costs an average of $45,000 to hire a new manager.[footnote]Susan Herman, Hiring Right: A Practical Guide<\/em> (Thousand Oaks, CA: Sage, 1993), xv.[\/footnote] While this may seem exaggerated, consider the following items that contribute to the cost:\r\n
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        1. Time spent reviewing r\u00e9sum\u00e9s<\/li>\r\n \t
        2. Time spent interviewing candidates<\/li>\r\n \t
        3. Interview expenses for candidates<\/li>\r\n \t
        4. Possible travel expenses for new hire or recruiter<\/li>\r\n \t
        5. Possible relocation expenses for new hire<\/li>\r\n \t
        6. Additional bookkeeping, payroll, RRSPs and pension plans, and so forth<\/li>\r\n \t
        7. Additional record keeping for government agencies<\/li>\r\n \t
        8. Increased unemployment insurance costs<\/li>\r\n \t
        9. Costs related to lack of productivity while new employee gets up to speed<\/li>\r\n<\/ol>\r\nBecause it is so expensive to hire, it is important to do it right. First, r\u00e9sum\u00e9s are reviewed and people who closely match the right skills are selected for interviews. Many organizations perform phone interviews first so they can further narrow the field. The HR manager is generally responsible for setting up the interviews and determining the interview schedule for a particular candidate. Usually, the more senior the position is, the longer the interview process takes\u2014even up to eight weeks.[footnote]John Crant, \u201cHow Long Does an Interview Process Take?<\/a>\u201d Jobsinminneapolis.com<\/em>, December 2, 2009, accessed October 28, 2010, http:\/\/www.jobsinminneapolis.com\/articles\/title\/How-Long-Does-an-Interview-Process-Take\/3500\/422.[\/footnote] After the interviews are conducted, there may be reference checks, background checks, or testing that will need to be performed before an offer is made to the new employee. HR managers are generally responsible for this aspect. Once the applicant has met all criteria, the HR manager will offer the selected person the position. At this point, salary, benefits, and vacation time may be negotiated. Compensation is the next step in the HR plan.\r\n

          Determine Compensation<\/h2>\r\nWhat you decide to pay people is much more difficult than it seems. Pay systems must be developed that motivate employees and embody fairness to everyone working at the organization. However, organizations cannot offer every benefit and perk because budgets always have constraints. Even governmental agencies need to be concerned with compensation as part of their HR plan. For example, in 2011, Illinois State University gave salary increases of 3% to all faculty, despite state budget cuts in other areas. They reasoned that the pay increase was needed because of the competitive nature of hiring and retaining faculty and staff. The university president said, \u201cOur employees have had a very good year and hopefully this is a good shot in the arm that will keep our morale high.\u201d[footnote]Stephanie Pawlowski, \u201cIllinois State University to Get Salary Bump,\u201d WJBC Radio<\/em>, July 11, 2011, accessed July 11, 2011, http:\/\/wjbc.com\/illinois-state-university-faculty-to-get-salary-bump.[\/footnote]\r\n\r\nIn the process of determining the right pay for the right job, there can be many variables to consider, in addition to keeping morale high. First, as we have already discussed, the place of an organization in the organization life cycle can determine the pay strategy for the organization. The supply and demand of those skills in the market, the economy, and region or area in which the business is located are also determining factors in compensation strategy. For example, a company operating in Seattle may pay higher for the same job than their division in Missoula, Montana, because the cost of living is higher in Seattle. The HR manager is always researching to ensure the pay is fair and at market value. For many organizations, training is a perk. Employees can develop their skills while getting paid for it. Training is the next step in the HR planning process. In\u00a0Chapter 7, \"Compensation and Benefits<\/a>,\" we get into greater detail about the variety of pay systems, perks, and bonuses that can be offered.\r\n

          Develop Training<\/h2>\r\nOnce we have planned our staffing, recruited people, selected employees, and then compensated them, we want to make sure our new employees are successful. Training is covered in more detail in Chapter 9, \"Training and Development<\/a>.\" One way we can ensure success is by training our employees in three main areas:\r\n
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          1. Company culture.<\/strong>\u00a0A\u00a0company\u00a0culture<\/strong>\u00a0is an organization\u2019s way of doing things. Every company does things a bit differently, and by understanding the company culture, the employee will be set up for success. Usually this type of training is performed at orientation when an employee is first hired. Topics might include how to request time off, dress codes, and processes.<\/li>\r\n \t
          2. Skills needed for the job.<\/strong>\u00a0If you work for a retail store, your employees need to know how to use the register. If you have sales staff, they need to have product knowledge to do the job. If your company uses a particular software, training is needed in this area.<\/li>\r\n \t
          3. Human-relations skills.<\/strong>\u00a0These are non-job-specific skills your employees need not only to do their jobs, but also to make them all-around successful employees. Skills needed include communication skills and interviewing potential employees.<\/li>\r\n<\/ol>\r\n

            Perform a Performance Appraisal<\/h2>\r\nThe last thing an HR manager should plan is the performance appraisal. While we discuss performance appraisals in greater detail in\u00a0Chapter 12, \"Employee Assessment<\/a>,\" it is definitely worth a mention here, since it is part of the strategic plan. A performance\u00a0appraisal<\/strong>\u00a0is a method by which job performance is measured. The performance appraisal can be called many different things, such as the following:\r\n