Manpower Planning for Human Resource

Usually, HR carried out manpower planning at the end or the beginning of the year for the next one-year period. HR analyzes the company’s human resources (HR) and calculates the estimated new workforce needs to support business plans and organizational goals. This planning is a process that consists of several stages to ensure that the company obtains the right number of qualified workers, in the right roles/positions, with the types of skills and competencies required.

Manpower planning goal setting

Manpower planning is a part of organizational planning. This human resource planning does not stand alone, because HR needs arise because of the company’s business plan. Thus, the purpose of manpower planning adjusts and is in line with the company’s plan.

HR caters to the personnel’s needs to execute the plan. That’s why, the first step is to define what the purpose of workforce planning is, for example increasing production, increasing sales, using the latest technology, expanding business, and so on.

Company HR Mapping for Manpower Planning

The next stage is mapping the availability of manpower that the company has by analyzing demographic data, such as number, distribution, age (regarding pensions), roles and positions, and wages/salaries. The analysis also includes workforce metrics, such as performance, productivity, turnover, and employee retention.

HR also analyzes the skills and competencies of each workforce. For example, in the past year, what types of new skills or expertise have employees mastered?

Calculation of Manpower Planning

HR matches the availability of HR with future business plans: is the number and type of manpower available currently sufficient? If not, how many new personnel are needed? What types of skills should be present?

You can use several methods to calculating HR needs. Such as trend methods, ratios, regression, Delphi, work studies, managerial decisions, and others. This method provides results in the form of predictions or estimates of the need for new workers.

Determination of employment plan

After all managers in each department agree on a manpower requirement plan, HR sets a manpower plan for the next year, including compiling recruitment costs and salary costs taking into account wage increases every year.

This plan serves as a guide in filling roles and positions in the organization. For example, how many employees will be promoted to new positions? and how to fill vacant positions/roles left?

Recruitment and hiring

HR determines the most appropriate recruitment method by looking at several factors such as the type of work, skills, and experience required. HR also needs to understand labor market conditions, the availability of free candidates, and company competition in getting quality employees.

The best way to recruit is to combine several methods when using employee referrals, job portals, and headhunters. For example, when you need a strategic role with rare qualifications, it is more efficient and effective to use a headhunter.

Analyzing skill gaps

After the workforce needs are met, HR monitors the extent to which the skills mastered by each employee. This act help them in carrying out their roles. HR identifies skill gaps between outstanding employees and less skilled employees, then provides training.

Training and development

Employee training and development is aimed at bridging the skill gap between employees. As well as meeting the company’s need for new skills. In addition to having an impact on improving company performance, this method also helps employees to develop themselves.


In the last stage, HR evaluates manpower planning, what goes according to plan and what doesn’t. The most important evaluation is whether the implementation of the employment plan helps the achievement of the company’s business plan.

You can contact our manpower, here.

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