The term human capital management refers to the work done by the staff along with their capabilities and skills which is valuable to the business organization. Human Capital Management Planning helps organizations in hiring training and managing the employees with the available budget. It is essential for business organizations to know about the human capital planning process to be successful in the concerned business.
Organizational Planning and Human Capital Management
The first step in human capital management planning is the creation of organizational chart. This chart usually helps business organizations in determining what all positions are needed in the organization and the descriptions about the job along with hierarchy of current positions. Having a detailed job description helps in evaluating whether the current workers have the skills. Future needs are also considered while planning about the human capital utilization.
Budgeting and Human Capital Management Planning
Sometimes the cost employers spend for an employee go beyond the salary. The additional expenses employer spends for the employees include taxes, benefits, training expenditure, insurance etc which can be up to 25% of the salary. While planning a position inside the company the cost should be calculated taking into consideration about the additional figure that will be coming in the budget.
Recruiting and Human Capital Management Planning
After the need of the hour is calculated and set the budget organizations can think about recruiting new employees. While conducting recruitment it is essential to have guidelines for future employees. The procedures and best practices should also be in the plan to carry out the recruitment process easily. Having updated job descriptions and details about salaries helps in posting the job requirement and conduct interviews through the obtained resumes.