Reading Time: 3 minutes

Workplaces change quickly. Random hiring processes aren’t enough. Businesses with no HR strategy find it difficult to move forward & have a long-term focus. Aligning human capital planning & managing talent. Giving their organisation a competitive advantage with the hr planning process.

Let’s look at the HR planning process in detail & why this is the foundation of effective HRM.

What is the HR Planning Process?

 This ensures you have the correct employees who are performing the right task at the right time. Thus eliminating the potential for both talent shortages & surpluses. 

HR planning enables your business to improve budgeting & planning & ensures your organisation runs more efficiently. 

Importance of the HR Planning Process

Why does it matter so much? Because strategic human resource planning builds workforce stability. The HR function needs to be armed to deal with retirements, promotions & unanticipated resignations. Companies without the HR planning process tend to be in a panic during transitions. The productivity is unhealthy.

Besides stability, the HR function ensures that most company functions are staffed optimally. And this is important in lean and agile environments.

Stages in the HR Planning Process

• Analysing Organisational Objectives

The first stage is analysing organisational objectives. Each aim, from opening a new store location to digitising certain aspects of the business. It requires a different kind of workforce. The HR function joins forces with the leadership team at this stage. Understanding an organisation’s business vision assists in planning accurate manpower requirements.

• Inventory of Current Human Resources

This includes evaluating the current employees’ capabilities, productivity, and advancement potential. This becomes the HR function gateway into a company’s talent strengths and weaknesses. It assists HR in identifying which employees can be moved into new positions & who need more education or support. It also assists HR in determining which employees align with its future objectives & which do not.

• Forecasting Future Demand and Supply

They examine things such as retirements, resignations, new initiatives, and anticipated expansion. And that is potentially ready to be promoted or upskilled. A data-driven approach is critical for precision.

• Determining Whether You Have Provided Enough Manpower

This is where HR works out how to close the gap. In doing so, they gather information to assist in the recruitment process. If HR determines they do not have enough people to support their future demand as planned. It will arrange a recruitment campaign. If the opposite is true, HR will look at reskilling, transferring, or redesigning roles. And that creates too much manpower. This element is crucial to ensuring no waste of resources occurs.

• HR Action Plans

At this point, action is required. HR will create and detail plans that are in accordance with its gap analysis. These action plans typically outline recruitment, upskilling, performance management, and succession planning. Good action plans will enhance the function of HR.

• Monitoring and Evaluation

No plan will be complete without some monitoring. Are the action plans still giving results? What needs to change? Monitoring should be done regularly to ensure the implementation remains relevant in a changing business environment. This is an important component to help companies remain dynamic in the hr management of their workforce.

 

Benefits of the HR Planning Process

• Ensures that human capital is being well deployed and used
• Facilitates employee retention
• Lower recruitment costs
• Provides a means of achieving organisational outcomes
• Improves overall workforce productivity
• Reduces reliance on last-minute recruitment.
• Reduces risks associated with the workforce

Conclusion

An effective HR planning process provides a framework for structure, strategy & foresight. It allows HR professionals to prepare, act, and react with conviction and confidence. Whether recruiting new talent, training new employees, or planning intern development, working ahead will make things easier. In a business climate where humility and equity are valued in society, the productivity from a strong HR plan can be such a value-added competitive advantage.

FAQs.

• How will HR planning allow a company to grow?

As companies are prepared for future efforts and challenges, they grow operationally. It provides structured hiring and retention while reducing turnover.

• Is HR planning only for large firms?

Absolutely not. HR planning can also be helpful to Start-Ups and SMEs with structured HR planning. As a means to shape their employees, their time, and what they will do with them. It’s all a part of the smart scaling (optimising the use of their resources).

• How frequently should a review be done of the HR planning cycle?

 Every quarter, under normal operating conditions but preferably on a periodic or at least an annual basis, to adjust to factors affecting business.

Ready to Simplify Your HR Planning?

Start planning smarter today with Savvy HRMS and automate all phases of your planning process. Track employee headcounts, forecasts, reports, and more.

 

Reading Time: 3 minutes

In every successful organization, there is often a well-functioning team. How do we build one? It all starts with the recruitment process in HRM. Let us explore how the recruitment process works and why it matters for human resource management nowadays.

What is the Recruitment Process in HRM?

The recruitment process in HRM is a series of steps that HR takes to promote, identify, and hire talent. This process can also shape your organization into the productive environment you want it to be. Getting hiring right will result in fewer staffing-related problems later.

Why Does It Matter? 

The recruitment process in HRM is not aimed at simply filling roles. It’s about planning, precision, and performance.

The recruitment process in HRM will help companies avoid mismatches in job hiring. It potentially offers the building blocks of a great workplace culture. And, it will also help with workforce planning and help HR to anticipate future organizational needs.

The Recruitment Process in HRM: Pointers to Be Seen

Let’s now break down the basic phases of recruitment:

Workforce Planning

Before we start the hiring process, HR will assess what talent is needed for the overall plan. What skills are currently missing? What positions need to be filled?

Here is where HR planning and budgeting aspects will come into play.

Job Description and Specification

Next is the creation of clear job descriptions. Job descriptions outline responsibilities and what skills are expected. Knowing the expectations will contribute to a better quality of candidates.

Sourcing Talent

Now, HR teams are sourcing candidates. They should utilize job portals, referral sources, LinkedIn,  and even internal resources.

In this step must be strategic to obtain the best resources available.

Application Screening

HR will be completed with the resumes. They will have other information to look for educational background, required skills, and experience the candidates have attained through prior education, training, and previous work experience. 

Interview Process

After application screening has occurred, HR will conduct its interviews. They are looking to test the candidate’s hard and soft skills.

Selection and Offer

Hr offers a firm to the candidate. They outline salary, benefits, and company policies clearly.

The clarity in a firm offer helps minimize ambiguity down the road.

Background Check

Companies inadvertently protect themselves, employees, and customers by completing due diligence. They will review previous employment history, criminal court records, and education records.

Completing the check in this first step holds accountability against candidates.

Onboarding in the recruitment process in hrm

Hiring does not end with the offer. Onboarding assists employees in transitioning into their roles and increases retention and engagement rates. 

This step is important for successful employee management.

Follow-Up and Feedback in the recruitment process in hrm

Following the onboarding, HR follows up. Follow-up includes obtaining feedback on the experience and checking the fit of the new hire into their position and with their peers.

Ongoing improvements to the recruitment process help maintain a sustainable HRM strategy.

Utilizing Technology to Improve the Recruitment Process and HRM

Today, many HR teams are using software to help make their hiring quicker and better. Savvy HRMS is an ATS, and is one way HR teams can use technology to recruit better.

 

ATSs have automated these tasks: screening resumes and applications, managing job postings on external job sites, and managing applicants throughout the hiring process. Overall, ATSs help to save time when hiring and decrease the likelihood of error.

Conclusion

In this day and age of HR teams, the expectation is relatively high.  HR needs to hire fast, hire smart, and hire right.

Posting jobs for people to find isn’t enough to master the recruitment process. Fortunately, tools like Savvy HRMS can simplify the process and automate the tasks that accompany recruitment, so HR can invest its time in what matters, which is the people!

FAQs

• What is the recruitment process in HRM?

The recruitment process in HRM is a series of steps that HR takes to promote, identify, and hire talent.

• Why is recruitment important in Human Resource Management?

Recruitment is important in HR because it can help to reduce turnover, improve productivity, and provide a solid and effective workforce.

• What tools can be used for recruitment in HR?

HR Software like Savvy HRMS can be the best solution to make screening, shortlisting, and onboarding very simple.

• What role does recruitment play in HR planning?

Recruitment aligns the business goals, workforce needs, and future plans with the recruitment. 

Do you want to take some of the stress out of your recruitment process in HRM?

Let Savvy HRMS take care of the heavy lifting for you when it comes to recruiting.

You will be able to do everything, from screening to onboarding, on one smart platform!

 

Reading Time: 3 minutes

A human resource manager might be involved in the hiring-side activities, such as employing new people or sitting in interviews. But the involvement one has expands far beyond these activities. The responsibility of an HR manager is across all departments and affects every employee. Ranging from payroll to internal disputes.

In a digital workplace, human resource management is not just about people. It is about strategy, analytics, compliance, and, lastly, the technological dimension. Let’s deep dive into what truly makes HR the pillar of a functioning organisation.

Recruitment and Selection

The first responsibility of an HR Manager is to identify & select the appropriate talent. JD writing, job postings, screening, and interviews are all procedures that are undertaken. An HR Manager will interact with other departments to ascertain that the job roles align well with company objectives.

Why it matters: The right talent lessens the time to employee and increases productivity.

Payroll Management

Payroll management is an important responsibility of an HR manager. The HR team calculates gross and net salaries and distributes payslips to employees. There are automated solutions, such as Savvy HRMS, that make this process easier.

Why it matters: The errors can corrode employee trust.

Performance Management

They establish the KPIs, detail the appraisals, boomerangs, and generally establish quotas. Managers will positively assist employees. And then recognise low and high performers.

Why it is important: Monitoring performance can highlight areas for improvement or efficiency.

Onboarding in the Responsibility of HR Manager

They outline policies, detail basic tools, outline mentors, and share the policies. All this is outlined in the employee handbook.

Why it is important: Positive onboarding drives engagement early.

Compensation and Benefits

A large part of the responsibility of hr manager is managing pay structures. HR professionals establish wage payments to hourly workers. Hence, determines bonus schemes for employees and the management of leave policies.

Policy Development and Compliance

HR managers develop internal policies. HR creates policies that are compliant with the organization’s goals & legal obligations. 

Why it is important: Good policies create trust and predictability.

Conflict Resolution in the Responsibility of HR Manager

Conflict is inevitable & when these conflicts arise, HR serves as a neutral third party. Then, it gets the parties to agree on a solution or offers a fair solution on behalf of both parties. 

Why it is important: Timely conflict resolution keeps teams happy and productive.

Employee Engagement in the Responsibility of HR Manager

Keeping employees happy and engaged is one of the most important tasks of an HR manager. HR managers research & plan activities such as team-building events, surveys, wellness programs & campaigns. HR Managers also promote and solicit employee feedback. 

Why it is important: Happy and engaged employees want to work harder and are likely to be more loyal. 

Conclusion

The role of an HR manager has changed. It is about developing systems that facilitate and support people and processes. If you have strong HR in place, teams will succeed, and organizations will ultimately grow. If HR strategically uses tools like Savvy HRMS, it can do more with less effort. 

Are you an HR professional looking for simplified processes in your daily routines? Would you like to support people while reducing manual labour and improving accuracy? Check out Savvy HRMS; your all-in-one resource for everything. From payroll, data, recruitment, to HRMS, scheduling, and many more resources. 

Do not wait any longer to update your HR Department today!

FAQs

Q1. As an HR manager, what are your daily responsibilities?

 They have to manage recruitment, help employees, payroll, compliance, and team-engagement ventures.

 

Q2. Why is onboarding important (HR wise)?

 Onboarding gives new hires a sense of welcome and allows them to increase productivity as quickly as possible.

 

Q3. How does HR handle conflict?

They stay impartial, in which they gather both perspectives on the conflict and implementing fair solutions.

 

Q4. Why is data management important to HR?

Having accurate data is important to know how employees perform, operate, and make decisions based on data.

 

Q5. Can HR software be that good?

 Yes, platforms such as Savvy HRMS reduce paper & provide consistency. Automate, manage similarities and differences, Operationalize timeliness in multiple ways, and provide more time to a manager in hr software.

 

Reading Time: 3 minutes

Have you ever thought about how much your employees are worth, not just by what they produce, but also by being an asset on paper? If you agree, it’s Human Resource Accounting (HRA). 

HRA is critical because many companies have no problems measuring their assets. They know the value of physical assets, such as buildings, and digital assets. But many organisations don’t realise that the biggest investment they have is. People can and should be accounted for. 

Let’s examine it in detail, including how it works & why it is important for HR departments. 

What is Human Resource Accounting?

In simplified terms, it refers to valuing employees as financial assets. 

This is not about turning people into numbers—rather, it’s understanding people’s value. To make smarter business decisions. Businesses spend huge sums of money on acquiring, training, & retaining talent, so why not account for it?

Why Human Resource Accounting is Important

Conventional accounting does not account for employee costs/values. However, every HR function has a cost or time value (recruit, onboard, or train…)

 

• HRA provides this pervasive ROI.
• It allows companies to visualize their real return on their talent investments.
• It generates accuracy in financial statements & everyone appreciates transparent accounts.
• It generates strategic planning from HR expenditure.

To recap, human resource accounting develops an alignment of HR Practices with financial performance. 

Advantages of Human Resource Accounting

If you’re still not convinced as to why Human Resource Accounting deserves your attention. 

1. Better Talent Management

 HR will be able to see how well they are doing and measure both cost and value. 

2. Better Financial Reports

Stating what facets strengthen the business.

3. Enhanced Employee Value Propositions

When organisations understand the value of their people, they can establish better employee retention strategies. 

Basic Elements of Human Resource Accounting

Let’s examine the fundamental aspects of the concept.

1. Cost Approach

This approach captures & documents the costs incurred in hiring, training & retaining people. This approach provides the most direct evidence of value. 

Why it’s important: This allows organizations to evaluate the cost of their hr practices.

2. Value Method

This method focuses not only on costs, it evaluates the future value! What people have to give to the company is generally measured by an employee’s productivity. Possible promotions and potential long-term contribution.

Why this matters: It reflects the actual capabilities of a company.

Difficulties with Human Resource Accounting

Of course, there are challenges.

 

• It is difficult to put a number on human potential.
• Not all models will get to the same number.
• There is no consistent method being used around the world. 
• It is difficult to measure emotional intelligence, creativity, and leadership capability. 

 

Yet even given the challenges, many HR professionals feel it is better to try to measure human capital instead of ignoring it altogether.

How Savvy HRMS Makes Human Resource Accounting Easy

Savvy HRMS Cost Centre feature allows you to track the cost of each employee to your business. You can keep a record of it daily, weekly, or monthly.

If you have an employee working in two departments, no worries. The system can easily split and show how much cost is allocated to each employee. You will always be aware of where the money is going and to whom.

This transparency allows you to plan, budget, and manage teams in full knowledge of costs.

How does it relate to HRMS?

This is where it gets interesting.

An HRMS, such as Savvy HRMS, can track training costs, appraisals, leaves & payroll. All this for an accurate piece of organised data needed for human resource accounting!

HRMS automates the process, reduces the risk of errors & promotes informed decision-making.

Conclusion

It is about a change in mindset as organizations become more human-centered. It is time to begin to think about employees as assets. Integrating this idea into your HR functions, you can gain insight that goes far beyond employee counts and salary tracking. Begin treating them as your most valuable assets. 

Are you ready to put Human Resource Accounting into action in your organization?

Savvy HRMS was built to assist in every HR function. Allow your HR staff to do their jobs better with enhanced data-driven decision-making.

You will be amazed at how Savvy HRMS can make your human capital an indicator of your business value!

FAQs

Q1. Is HR Accounting available for organizations to use?

Not everywhere, yet. Many very large organizations use it, but small businesses are still trying to use it & see the benefit.

 

Q2. Is Human Resource Accounting making the old-fashioned accounting method obsolete?

No. Human Resource Accounting is ancillary to old-fashioned accounting. By using HRA, users can show the value of human capital on financial reports. 

 

Q3. Is It legally binding?

Not in most countries, but it is gaining acceptance in progressive HR practices & financial planning. 

 

Q4. Can software products assist in Human Resource Accounting?

Sure. HRMS platforms like Savvy HRMS have very easy styles for tracking data needed for HRA.