The Crucial Link Between Business Planning and Human Resources: Why It Matters?
Business planning is the process of creating a comprehensive roadmap for the long-term success of a company. This means defining the vision, identifying the objectives, and charting out the strategies that can help achieve them. While the process may seem intimidating, it is necessary for the success of any business.
However, what is often overlooked in business planning is the human element. This is where human resources (HR) come in. HR is responsible for managing the most valuable asset of any business- its workforce. The link between business planning and HR is crucial to a company’s success.
What is the relationship between business planning and HR?
The relationship between business planning and HR is symbiotic. Organizations cannot achieve success in their long-term plans without effective HR policies and practices. Business planning helps identify the direction and desired outcomes of a company, which in turn shapes HR policies. HR policies then provide the foundation for attracting, retaining, and developing a high-performing workforce that supports those business objectives.
HR management requires a deep understanding of the long-term needs of the organization. A company’s workforce needs to be aligned with the goals and objectives of the company. This requires careful planning and consideration of the organization’s future growth, talent acquisition, retention, and development strategies.
Why is it important to integrate HR into business planning?
The integration of HR into business planning ensures that the most valuable asset – the workforce – is aligned with the organization’s long-term objectives. By having HR management at the table during the business planning process, a company can ensure that the workforce required to achieve the planned objectives is in place.
HR ensures that the right people are in the right roles, with the right skills, and the right mindset. HR policies and practices can help identify and attract the best talent, retain valuable employees, and create a culture of continuous learning and development.
The importance of integrating HR into business planning is demonstrated by the example of Netflix. In 2010, Netflix shifted from on-site DVD rentals to a streaming platform. However, this shift meant a loss of nearly two-thirds of its workforce – meaning HR was critical to ensuring that Netflix still achieved its long-term objectives. They anticipated the skill sets that would be required in the future and began preparing for that, while also retaining existing employees who were integral to the new direction.
Conclusion
In conclusion, the crucial link between business planning and HR cannot be overemphasized. Business planning provides the long-term direction of a company, while HR ensures the workforce is aligned with those goals. Integrating HR into business planning ensures that an organization has the right workforce, with the right skills, knowledge, and attitude, to achieve its long-term objectives.
By recognizing the symbiotic relationship between business planning and HR, companies can gain a competitive edge by being proactive and future-ready. Effective HR policies and practices can help organizations attract, retain, develop, and engage a high-performing workforce while enabling the achievement of long-term business objectives.
