business plan human resources section example

10+ SAMPLE HR Business Plan in PDF

Hr business plan, 10+ sample hr business plan, what is a hr business plan, areas of human resources, tips to improve human resource management , how to create a hr business plan, what is a hr business plan, how do you write a human resources business plan, what are the 7 major hr activities.

HR Business Plan And Budget

7 Steps for HR Business Plan

HR Secretariat Business Plan

HR Strategic Business Plan

Sample HR Business Plan

HR Business Plan Example

HR Department Business Plan

HR Approved Strategic Business Plan

HR Business Plan Summary

HR Budget and Business Plan

Step 1: establish the objectives, step 2: clarify the roles and job descriptions, step 3: assess the programs and resources, step 4: identify the strategies , share this post on your network, you may also like these articles.

In this comprehensive guide, we explore the essentials of creating an effective Floor Plan. Whether you are designing a new home, renovating an existing space, or planning an office…

Nursing Care Plan

In this comprehensive guide, we explore the essentials of creating an effective Nursing Care Plan. Whether you are a nursing student, a new graduate, or an experienced nurse, this…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

We use essential cookies to make Venngage work. By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Manage Cookies

Cookies and similar technologies collect certain information about how you’re using our website. Some of them are essential, and without them you wouldn’t be able to use Venngage. But others are optional, and you get to choose whether we use them or not.

Strictly Necessary Cookies

These cookies are always on, as they’re essential for making Venngage work, and making it safe. Without these cookies, services you’ve asked for can’t be provided.

Show cookie providers

• Google Login

Functionality Cookies

These cookies help us provide enhanced functionality and personalisation, and remember your settings. They may be set by us or by third party providers.

Performance Cookies

These cookies help us analyze how many people are using Venngage, where they come from and how they're using it. If you opt out of these cookies, we can’t get feedback to make Venngage better for you and all our users.

• Google Analytics

Targeting Cookies

These cookies are set by our advertising partners to track your activity and show you relevant Venngage ads on other sites as you browse the internet.

• Google Tag Manager
• Infographics
• Daily Infographics
• Popular Templates
• Accessibility
• Graphic Design
• Graphs and Charts
• Data Visualization
• Human Resources
• Beginner Guides

Blog Human Resources 6 Steps to Create a Strategic HR Plan [With Templates]

6 Steps to Create a Strategic HR Plan [With Templates]

Written by: Jessie Strongitharm Aug 25, 2022

The backbone of any successful business is the people and processes behind it — that’s why creating a human resources (HR) plan is key. This strategic document drives your business forward by evaluating where your workforce is at, and comparing it to future needs. 

Without an HR plan, organizations can suffer from issues that would have otherwise been avoided. From productivity pitfalls to costly employee turnover, there’s no shortage of risks you can sidestep if you do human resource planning in advance. 

Not sure where to start? No worries. I’ve outlined six steps you can take to create an effective HR plan that ensures your organization is well-staffed and well-served. You’ll also find a variety of  HR templates  that you can customize in just a few clicks — no design expertise required. 

Click to jump ahead:

What is human resource planning?

• Assess employees’ current skill levels
• Forecast your labor needs based on available information
• Revisit your organizational design
• Outline how you will manage, motivate and retain talent 
• Align your workforce planning with your budget 
• Establish KPIs for your human resource planning objectives

Human resource planning is the process of considering the current and future “people needs” of an organization.

This involves evaluating an organization’s workforce structure and protocols to ensure operational goals are met, productivity stays high and future demands for labor and talent can be fulfilled. Staying updated with industry trends using the LinkedIn People Directory can help achieve this.

The result of this process is the creation of an HR plan, which typically takes the form of a written document sometimes autogenerated using HR software . These documents tend to follow a similar structure to most  strategic business plans  and are created on an annual basis, by HR managers or company leaders.

Check out the template below for an example. 

This eye-catching, one-page  HR Strategic Plan Template  offers a concise summary of your human resource planning efforts, so you can easily share info with colleagues. 

Just swap out the text and visual assets for those of your choosing in  Venngage’s editor , and you’re off to the races. 

6 steps to create a strategic HR plan

Ready to create a strategic plan for the human resources that power your business? Here are six steps to help you succeed at the human resource planning process.

1. Assess current employees’ skill levels

The first step to creating a future-forward HR plan is to assess employees’ current skill sets, and compare them to your operational needs moving forward. This will help you identify gaps and inform any hiring of new employees.

Employees’ skill levels can be assessed by reviewing their work history, hard and soft skills and professional growth over time. 

Using a matrix is a great way to understand where the skill gaps in your current workforce exist. Below is an example that describes the skills needed for different marketing roles. 

Don’t need it for marketing specifically? No worries — you can fully customize this template by swapping in your own text to examine any human resource gaps. 

Another way to assess skills is by giving employees a questionnaire they can fill out. This  Employee Competency Assessment Template  does just that.

Based on the information collected, you’ll get a sense of what positions best suit each individual, and whether any upskilling or hiring is required. 

2. Forecast your labor needs based on available information

Next in your strategic strategic HR management plan, you’ll want to consider the future. This involves accounting for any upcoming changes to your workforce, so operations can continue without error.

When forecasting labor needs, the following should be considered: 

• Planned promotions
• Upcoming retirements 
• Layoffs 
• Personnel transfers 
• Extended leaves of absence (i.e. maternity/paternity leave) 

Beyond those, it’s a good idea to assess the impact of external conditions on your labor needs during your human resource planning. For example, new technological developments may decrease the amount of employees you require to operate your business. 

3. Revisit your organizational design

Organizational design is the process of structuring the way a business operates so it can best achieve its goals. This is hugely important when it comes to your human resource planning process! 

With a clear understanding of your organization’s strategic objectives in mind, reviewing your organizational design allows you to understand the staffing requirements you’ll need to succeed at them. This means taking into account your  organizational structure  and chains of command, as well as how work gets done and the way information flows.

 From there, you’ll be able to see which departments need more team members so it can accomplish the organization’s objectives. 

An easy way to get started is by using an organizational flow chart. 

With its color coding and layout, even a new manager can quickly look at this chart to identify the people responsible for leading teams and making decisions. 

And if there are any changes, it’s easy to to reflect them in the chart itself. All you need to do is customize the text and visual assets in  Venngage’s Chart Maker  as desired. 

Not quite your style? There’s plenty of other  organizational chart templates  to choose from. 

Here’s an organizational chart that’s perfect for small businesses that have limited employees. One quick look, and you’re good to go. 

The bottom line is, no matter how big or small your business may be, you should always revisit your organizational design to optimize your workforce management and business operations. 

Related:  Types of Organizational Structure [+ Visualization Tips]

4. Outline how you will manage, motivate and retain talent 

In this day and age, it’s a known fact that companies must provide more than just a paycheque to attract and retain talent, and encourage growth. 

It’s true —  studies have shown  employees are more engaged in their work when they feel it is meaningful, fulfilling and slightly challenging. So your human resource plan should consider how to inspire such feelings, and what actions you can take to motivate employees to stay. (Hint: a strong HR training and development program is key.)  

The  talent management infographic template  below is a great way to begin. 

Using this  process chart , you can detail the steps you’ll take to retain the talent you have. Reference it as needed in your human resource planning.

 Another great way to keep staff motivated and geared towards their professional growth is by coming up with  ideas for employee development . Facilitating a company culture that champions continuous learning guarantees your team will feel supported and challenged in all the right ways.

The two employee development plan templates below will help you do just that. 

Though both templates are geared towards healthcare organizations, it’s easy to customize their content in Venngage to promote the continuous learning and development of employees in any industry.

 As a result, your employees will be able to reach their full potential, while simultaneously supporting the long-term goals of your organization. 

Related:  6 Employee Development Ideas for Efficient Training

5. Align your workforce planning with your budget 

 Let’s face it, human resources ain’t cheap.

 Meaning, if you struggle at organizing and monitoring your HR budget, you’re bound to overspend on your initiatives —and no financially savvy business wants that. 

That’s why I recommend including financial information in your HR planning process, so you can reference your budget and expenses as needed. This includes not only hiring and training costs but also the complexities of managing a global payroll for diverse teams.

Ensuring this allows you to stay within range as you work towards achieving your strategic goals for human capital . Plus, you don’t need to use one that contains walls of text and wack-loads numbers. Check out the clean and cheery option below — it’s as easy to fill out as it is to understand. 

And if you’re looking to compare a forecasted budget to previous annual spending when strategizing your HR budget, the  Budget Comparison Infographic Template  below will help. 

The bar graph is a great  data visualization  of annual expenses, organized by category. Just add (or import) any values to Venngage’s editor, swap out the text, and you’re ready to compare with ease. 

Related:  10+ Expense Report Templates You Can Edit Easily

6. Establish KPIs for your human resource planning objectives

Measurable results are important when it comes to your HR planning processes, because they indicate whether your strategy is working or not. 

Keeping those metrics in mind, your company can make adjustments and improve upon any future plans — AKA strategize for future success in business. That’s why your human resource plan should include info re: the specific key performance indicators (KPI) you’ll be measuring. 

KPIs are established to help determine if HR strategies and plans are working. Much like those used for evaluating the performance of  marketing  or  sales plan , KPIs for human resources are measurable results that indicate an organization’s success at achieving predetermined goals.

These may take the form of headcounts, turnover rates, demographic information, time to hire and employee satisfaction scores. 

Here’s one employee satisfaction survey you can use to understand your workforce better. 

When you’re ready to organize those HR KPIs in a document, the  recruiting template  below is perfect for keeping tabs at a glance. 

Related:  10+ Customizable HR Report Templates & Examples

How do I make an HR plan? 

After you’ve collected the data you need, you’ll want to convey this info in an engaging, professional manner for easy referencing and sharing amongst colleagues. Given this, using Venngage is the best route to go. 

Here are the simple steps to help you bring an actionable HR plan to life: 

• Outline the information you would like to include in your strategic hr plan
• Pick the human resource planning templates that best suits your needs 
• Customize the templates’ text and visual assets so they speak to your organization 
• Apply your company’s brand guidelines with a few clicks using Venngage’s automated branding feature,  My Brand Kit
• Download and share as desired

Note: sharing is available free-of-charge. However, the option to download your creations and access features like  My Brand Kit and Team Collaboration  are available with a  Business plan . 

FAQ about HR plans

How long should an hr plan be .

There are no hard and fast rules when it comes to the length of an HR plan. That being said, if you’re going to share it with colleagues, you probably don’t want to create a 20+ page document. One to five pages should suffice. 

Try to be as concise as possible when relaying the facts, and use  data visualizations  wherever possible to save room.

Do I need an HR contingency plan?

In the same way creating an HR plan is a proactive move that helps your organization account for future needs, it’s a good idea to devise an HR contingency plan. This ensures there’s a back-up plan in place should your initiatives not go as expected. 

For example, if you’ve identified that you need five new hires to keep up with consumer demand, but the talent pool is lacking, a contingency plan could house suggestions for restructuring your workforce to mitigate this. 

In other words, it’s best-practice to hope for the best, but prepare for the worst. 

Is an HR plan different from an employee development plan?

Yes. While an HR plan is a strategic document describing how an organization addresses its personnel-related needs at a high-level, an  employee development plan  outlines the processes needed to help an individual achieve their professional goals.

 Even though the human resource planning process may involve outlining some employee development tactics, it is not unique to each employee as in the case of an employee development plan.

Make your HR planning processes effortless 

You don’t need a crystal ball to feel confident about your people moving forward. With a solid HR plan and strategy in place, you’ll prime your workforce — and all business endeavors — to succeed in even the most competitive of markets. 

Just remember this: human resources planning, and creating strategic business plans in general, doesn’t have to be exhausting. 

With Venngage’s huge selection of  professionally-designed templates  and easy-to-use editor, all it takes is a few minutes to produce a polished document perfect for all your needs.  Sign up for free today ! 

Discover popular designs

Infographic maker

Brochure maker

White paper online

Newsletter creator

Flyer maker

Timeline maker

Letterhead maker

Mind map maker

Ebook maker

HR Business Plan Template: Everything You Need to Know

With an HR business plan template, you can help your company recruit new employees, retain existing employees, and guide the development of the workforce. 4 min read updated on September 19, 2022

With an HR business plan template, you can help your company recruit new employees, retain existing employees, and guide the development of the workforce so that you collectively meet your business objectives, regardless of any changes in the industry or economy.

When creating your HR business plan, you need to perform a needs analysis of your workplace to tailor the plan to your company's requirements. You'll also need to learn about the industry standards for your field to make sure you're competitive.

Without such a plan in place, your workers will feel unprepared and won't know how to work towards your company's overall goals.

Steps for Developing a Human Resources Department Business Plan

There are several steps to creating an HR business plan. They include:

• Clarify the requirements . While you might be tempted to create a detailed plan that encompasses the entire company's next 10 years, hold off. Always talk with your boss to see how much detail he or she would like in the plan. This will save you time and help streamline the process. However, there's no harm in creating your own personalized strategic plan for your specific department.
• Read through the HR job descriptions . The HR department typically has employees such as HR assistants, HR generalists, and an HR director . Read through the job descriptions for each worker in the department and see what kind of duties are missing. Brainstorm additional functions that each job role could provide to the company.
• Curate your list . Take the different functions you've brainstormed and compare them to what each member of the HR department is already doing. Are there functions you could add or subtract from each employee for more productivity? You don't have to go into detail here, but just think about how you could improve each role.
• Schedule a meeting with the executives . Before you make any changes, you'll obviously need to get input and approval from the company's executives. They may have more feedback on how the HR department can provide additional services and support the company's overall goals and mission.
• Create a feedback form . Come up with a list of questions to ask leadership about HR's role in the company and provide it to them in advance of the meeting so they have time to think it over and talk with their staff. You may even want to provide a rating and ranking format for the questions, as this will make their responses easy to understand and implement. Overall, this is a key process to understanding what management and employees want and need from the HR department.
• Look at external resources . While the internal information you're collecting is the most important, it also doesn't hurt to take a look at data from professional organizations and websites, such as the Society for Human Resource Management , The Balance , or HR Magazine . You can also ask colleagues from other local organizations for tips on creating your business plan.
• Use this information to make a plan . With your ideas, feedback from executives, and tips from external resources, you should have a clear idea of what your plan should look like. The things that are missing from the HR department should now be clear, and this should guide you on what to focus on to improve HR's contribution to the company.
• Identify goals for this year and next . While your plan can have long-term goals, keep the majority of them a little bit shorter in scope to see how things work out. This gives you the chance to reorganize and restructure if things aren't going right. Consider creating a list of accomplishments you can reach for the end of this year and into the next.

A Real Life Example

If you're seeking more guidance on how to create a successful HR business plan, look to Starbucks as an example.

As the world's largest coffee chain, Starbucks had $21.3 billion in sales in 2016.

Despite these massive numbers, Starbucks maintains the same approach to their human resources department. All of the HR planning is guided by the company's organizational strategy and brand.

Their strategy is to use specific interview techniques when hiring new employees. This lets them identify potential leaders and place them in a "New Partner Orientation and Immersion" training program. With this system, Starbucks has achieved the lowest employee turnover rate in the quick-service restaurant industry.

Starbucks also offers numerous employee perks and dedicates a lot of time to employee training through an online portal that teaches employees essential job skills.

If you need help with your HR business plan template, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• HR Compliance
• SPHR Certification
• Human Resources Management
• LLC Business Plan Template
• Details of a Business Plan
• Business Plan Management Structure: What You Need to Know
• CCP Certification
• Service Business Plan
• Creating a Business Plan

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner
• Business Plans

How To Write the Management Section of a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Ownership Structure

Internal management team, external management resources, human resources, frequently asked questions (faqs).

When developing a business plan , the 'management section' describes your management team, staff, resources, and how your business ownership is structured. This section should not only describe who's on your management team but how each person's skill set will contribute to your bottom line. In this article, we will detail exactly how to compose and best highlight your management team.

Key Takeaways

• The management section of a business plan helps show how your management team and company are structured.
• The first section shows the ownership structure, which might be a sole proprietorship, partnership, or corporation.
• The internal management section shows the department heads, including sales, marketing, administration, and production.
• The external management resources help back up your internal management and include an advisory board and consultants.
• The human resources section contains staffing requirements—part-time or full-time—skills needed for employees and the costs.

This section outlines the legal structure of your business. It may only be a single sentence if your business is a sole proprietorship. If your business is a partnership or a corporation, it can be longer. You want to be sure you explain who holds what percentage of ownership in the company.

The internal management section should describe the business management categories relevant to your business, identify who will have responsibility for each category, and then include a short profile highlighting each person's skills.

The primary business categories of sales, marketing , administration, and production usually work for many small businesses. If your business has employees, you will also need a human resources section. You may also find that your company needs additional management categories to fit your unique circumstances.

It's not necessary to have a different person in charge of each category; some key management people often fill more than one role. Identify the key managers in your business and explain what functions and experience each team member will serve. You may wish to present this as an organizational chart in your business plan, although the list format is also appropriate.

Along with this section, you should include the complete resumés of each management team member (including your own). Follow this with an explanation of how each member will be compensated and their benefits package, and describe any profit-sharing plans that may apply.

If there are any contracts that relate directly to your management team members, such as work contracts or non-competition agreements, you should include them in an Appendix to your business plan.

While external management resources are often overlooked when writing a business plan , using these resources effectively can make the difference between the success or failure of your managers. Think of these external resources as your internal management team's backup. They give your business credibility and an additional pool of expertise.

Advisory Board

An Advisory Board can increase consumer and investor confidence, attract talented employees by showing a commitment to company growth and bring a diversity of contributions. If you choose to have an Advisory Board , list all the board members in this section, and include a bio and all relevant specializations. If you choose your board members carefully, the group can compensate for the niche forms of expertise that your internal managers lack.

When selecting your board members, look for people who are genuinely interested in seeing your business do well and have the patience and time to provide sound advice.

Recently retired executives or managers, other successful entrepreneurs, and/or vendors would be good choices for an Advisory Board.

Professional Services

Professional Services should also be highlighted in the external management resources section. Describe all the external professional advisors that your business will use, such as accountants, bankers, lawyers, IT consultants, business consultants, and/or business coaches. These professionals provide a web of advice and support outside your internal management team that can be invaluable in making management decisions and your new business a success .

The last point you should address in the management section of your business plan is your human resources needs. The trick to writing about human resources is to be specific. To simply write, "We'll need more people once we get up and running," isn't sufficient. Follow this list:

• Detail how many employees your business will need at each stage and what they will cost.
• Describe exactly how your business's human resources needs can be met. Will it be best to have employees, or should you operate with contract workers or freelancers ? Do you need full-time or part-time staff or a mix of both?
• Outline your staffing requirements, including a description of the specific skills that the people working for you will need to possess.
• Calculate your labor costs. Decide the number of employees you will need and how many customers each employee can serve. For example, if it takes one employee to serve 150 customers, and you forecast 1,500 customers in your first year, your business will need 10 employees.
• Determine how much each employee will receive and total the salary cost for all your employees.
• Add to this the cost of  Workers' Compensation Insurance  (mandatory for most businesses) and the cost of any other employee benefits, such as company-sponsored medical and dental plans.

After you've listed the points above, describe how you will find the staff your business needs and how you will train them. Your description of staff recruitment should explain whether or not sufficient local labor is available and how you will recruit staff.

When you're writing about staff training, you'll want to include as many specifics as possible. What specific training will your staff undergo? What ongoing training opportunities will you provide your employees?

Even if the plan for your business is to start as a sole proprietorship, you should include a section on potential human resources demands as a way to demonstrate that you've thought about the staffing your business may require as it grows.

Business plans are about the future and the hypothetical challenges and successes that await. It's worth visualizing and documenting the details of your business so that the materials and network around your dream can begin to take shape.

What is the management section of a business plan?

The 'management section' describes your management team, staff, resources, and how your business ownership is structured.

What are the 5 sections of a business plan?

A business plan provides a road map showing your company's goals and how you'll achieve them. The five sections of a business plan are as follows:

• The  market analysis  outlines the demand for your product or service.
• The  competitive analysis  section shows your competition's strengths and weaknesses and your strategy for gaining market share.
• The management plan outlines your ownership structure, the management team, and staffing requirements.
• The  operating plan  details your business location and the facilities, equipment, and supplies needed to operate.
• The  financial plan  shows the map to financial success and the sources of funding, such as bank loans or investors.

SCORE. " Why Small Businesses Should Consider Workers’ Comp Insurance ."

How to Develop a Human Resources Department Business Plan

What Is Management Plan in a Business Plan?

The management plan section of your business plan will give more focus on defining your management team, as well as your staff and business ownership. This section highlights the individual skill of your team and their contributions to your business and simple business plans .

Fundamentals of Human Resources Strategic Planning

• Setting the vision statement and mission statement of the company, as well as the business goals and objectives.
• Learning the executive summary of the business plan.
• Know and understand the business strategies and how these strategies can develop a company.
• Establishing the objective statement of the human resource strategic planning.

How to Create a Human Resource Department Annual Strategic Plan?

The human resource strategic plan, if organized well and properly will be the key element to the success of any business, small or big. This strategic plan should focus on how it can increase the proficiency of this area and not harming the best interest of the company and the employees.

The human resource strategic plan has four functions:

• Selection and training.  It involves finding applicants and hiring the most qualified individual for the position.
• Training and development.  Improving the skills of the employee and meeting the employee’s need.
• Benefits administration.  Providing benefits package to the employees can increase the chance of retaining them
• Employee relations.  The human resource strategic plan should focus on the maintaining safety and work-friendly environment.

How to Design and Implement an HR Strategy?

Many companies may not know this but establishing, designing, implementing an HR strategy will ensure that your company will run smoothly and efficiently. Here are the steps:

• Define the company’s vision statement.  The company’s vision statement will serve as a guide on how the HR can help the company in reaching the smart goals .
• Establish the HR department’s role.  The role of HR in the company is countless. The company must set what specific role an HR must do.
• Implement the plan.  After the strategy has been developed, the implementation plan is now ready to implement. With the help of the HR strategy, the plan can be developed to help the business improve.
• Measure the success.  The success of the strategy must be measured to make the HR strategy more effective.

Steps to Develop a Human Resources Department Business Plan

Here are the steps in developing a human resources department business plan in pdf .

• Understand what your boss needs and wants from you.  It will be painful for you to have developed a plan that the boss didn’t want or need.
• Create a list of job descriptions.  Find out if there are job descriptions your department is not performing but would value to the company if it is performed.
• Add to the list the functions that your human resources department is already performing.  You can also add those functions that you want to add or subtract.
• Consult with your fellow executives.  Get an assessment plan of their satisfaction with your services.

The Link Between Strategic Planning and Human Resource Planning

All companies have three critical resources that must be used effectively to achieve the success of the quality plan of business. These three resources are:

• The technologies used in manufacturing and producing a product
• The finances in the financial statement that is used to pay what the expense report of a company.
• And the people with skills and talents that are used achieve the work that is crucial.

With that, the company must have a business and strategic plan to manage and utilize these resources.

Text prompt

• Instructive
• Professional

Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

HR Consulting Business Plan Template

Written by Dave Lavinsky

Human Resources Consulting Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their human resources consulting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an HR consulting business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an HR Consulting Business Plan?

A business plan provides a snapshot of your human resources consulting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an HR Consulting Firm

If you’re looking to start an HR consulting business or grow your existing business, you need to write your own business plan. A business plan will help you raise funding, if needed, and plan out the growth of your HR consulting business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Human Resources Consulting Businesses

With regards to funding, the main sources of funding for a human resources consulting business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the most common form of funding for a human resources consulting business. Personal savings and bank loans are the most common funding paths for HR consulting businesses.

Finish Your Business Plan Today!

If you want to start an HR consulting business or expand your current one, you need a business plan. Below we detail what should be included in your own business plan for an HR consulting firm.

Executive Summary

Your executive summary provides an introduction to your own business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of HR consulting business you are operating and its status. For example, are you a startup, do you have an HR consulting firm that you would like to grow, or are you operating human resources consulting firms in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the HR consulting industry. Discuss the type of HR consulting business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of HR consulting business you are operating.

For example, you might operate one of the following types of human resources consulting businesses:

• Human Capital Strategy : this type of business focuses on strategic matters such as corporate culture, diversity, and organization design.
• Compensation & Benefits: this type of business involves analyzing and consulting on all aspects of employee compensation, from base pay to secondary benefits, as well as pension and retirement.
• Talent Management: this type of business focuses primarily on recruitment and retention of talent, as well as on talent development.
• Professional Development: this type of business offers services ranging from leadership coaching and development to developing learning management systems.

In addition to explaining the type of HR consulting business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of websites launched, the types of sites developed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the HR industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the HR industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your HR consulting business plan:

• How big is the human resources industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your human resources consulting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your HR consulting business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: financial services companies, government entities, healthcare institutions, and technology companies.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of human resource consulting business you operate. Clearly, government entities would respond to different marketing promotions than technology companies, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most HR consulting businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

Finish Your HR Consulting Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other human resource consulting firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes more generalized management consultants or dedicated in-house HR teams.

With regards to direct competition, you want to describe the other HR consulting businesses with which you compete. Most likely, your direct competitors will be human resource consulting businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• Do they specialize in specific industries (i.e. healthcare, technology, etc.)?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide either a wider range or more specialized range of services?
• Will you offer virtual service options?
• Will you provide superior customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an human resource consulting business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of HR consulting company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to strategic consulting, will your HR consulting business provide compliance consulting?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your company. Document your location and mention how the location will impact your success. For example, will you operate from a physical office, or will you primarily interact with clients online and/or at their place of business? In this section, discuss how your location will affect the demand for your services.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Signs and billboards
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your HR consulting business, including marketing, providing consultations, building analytics processes, developing and presenting recommendations, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 50 th consulting contract, or when you hope to reach $X in revenue. It could also be when you expect to open an HR consulting business in a new location.  

Management Team

To demonstrate your HR consulting business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow your business.

Ideally you and/or your team members have direct experience in human resources and/or managing HR consulting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in Human Resources, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

In developing your income statement, you need to devise assumptions. For example, will you focus on one client at a time, or will you have teams working on multiple projects at once? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an hr consulting business:

• Office build-out
• Cost of buying or leasing a company vehicle
• Cost of office supplies such as computers and software
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office lease, any notable clients you’ve served, or an overview of the services you offer.  

Putting together a business plan for your HR consulting business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert HR consulting business plan; download it to PDF to show banks and investors. You will really understand the HR industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful HR consulting business.  

Don’t you wish there was a faster, easier way to finish your HR Consulting business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing service .

Other Helpful Business Plan Articles & Templates

HR Consulting Business plan Template

Written by Dave Lavinsky

HR Consulting Business Plan

You’ve come to the right place to create your Human Resources Consulting business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their HR Consulting businesses.

Below is a template to help you create each section of your Human Resource business plan.

Executive Summary

Business overview.

HR Solutions is a startup human resources company located in Spokane, Washington. The company is founded by Tremaine Jackson, a former human resources manager in a large retail company. Tremaine led a team of twenty human resources employees in overseeing all aspects of human resources for the employer and developed a unique application that he has decided to introduce in his new company, HR Solutions.

HR Solutions will be the comprehensive leader in human resource training, management, negotiations, and solutions-finding company in the state of Washington. They will provide everything human resource personnel need to hire and effectively onboard new employees, as well as everything needed to maintain proper records, effectively cover communication and employee relations, and become proactive about potential conflicts.

Product Offering

The following are the services that HR Solutions will provide:

• Proprietary app that creates comprehensive HR management plans
• Training to maximize personnel potential
• Assistance in compliance with laws and regulations
• Curated HR solutions to solve employee issues
• Assistance in establishing productive work environments
• Onboarding from A to Z
• “Support Cadre” for HR management personnel
• Recruitment and talent acquisition training
• Organizational process-and-procedure manual

Customer Focus

HR Solutions will target small-to-large businesses in the Spokane, Washington region. HR Solutions will also target Washington state with select online training programs and sales of the proprietary HR app. HR Solutions will target C-suite executives in Spokane.

Management Team

HR Solutions will be owned and operated by Tremaine Jackson. He recruited his former administrative assistant, Sharlene Harris, to be his Administrative Manager in HR Solutions, where she will provide oversight of all personnel and HR responsibilities within the company itself. He also recruited Mason Wright, a former associate and HR manager, to be the Senior HR Advisor within the startup; he will lead the other HR managers in their roles as client-focused solution providers.

Tremaine Jackson is a graduate of the University of Washington in Seattle, where he majored in Human Resource Development. He has been a human resources manager in a large retail company, where he led a team of twenty human resources employees in overseeing all aspects of human resources for his employer and he developed a unique application that he has decided to introduce in his new company, HR Solutions. Former clients and associates have indicated they will follow him when he establishes HR Solutions.

Sharlene Harris holds a bachelor’s degree in Business Administration from Spokane College. She has been Tremaine’s administrative assistant for ten years and her new role will be the Administrative Manager in HR Solutions. She will provide oversight of all personnel and HR responsibilities within the company itself.

Mason Wright, a former associate and HR manager, developed a large following of loyal clients. He will be the Senior HR Advisor within the startup; he will lead the other HR managers in their roles as client-focused solution providers. His clients have indicated that they will follow him into the startup business.

Success Factors

HR Solutions will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of HR Solutions

Financial Highlights

HR Solutions is seeking $200,000 in debt financing to launch HR Solutions. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for HR Solutions.

Company Overview

Who is hr solutions.

HR Solutions is a newly established, full-service human resource company in Spokane, Washington. HR Solutions will be the most reliable, cost-effective, and effective choice for HR managers and leaders in Spokane. Certain online programs and the proprietary app will also be the most effective and productive options for HR personnel throughout the state of Washington. HR Solutions will provide a comprehensive menu of training, recruitment, personnel, solution-finding services for any company to utilize. Their full-service approach includes a comprehensive set of training, management, and solution options.

  HR Solutions will be able to provide superior HR support and solutions to every business. The team of professionals are highly qualified and experienced in onboarding, training and creating solutions for every human resource quandary. HR Solutions removes all headaches and issues of the human resource personnel and ensures clients find the best answers to all their HR needs with the outstanding customer service found at HR Solutions.

HR Solutions History

HR Solutions is owned and operated by Tremaine Jackson. Tremaine Jackson is a graduate of the University of Washington in Seattle, where he majored in Human Resource Development. He has been a human resources manager in a large retail company, where he led a team of twenty human resources employees in overseeing all aspects of human resources for his employer and he developed a unique application that he has decided to introduce in his new company, HR Solutions. Former clients and associates have indicated they will follow him when he establishes HR Solutions.

Since incorporation, HR Solutions has achieved the following milestones:

• Registered HR Solutions, LLC to transact business in the state of Washington.
• Has a contract in place for a 20,000 square foot office space within a downtown Spokane building.
• Reached out to numerous former clients and contacts to include those who will refer and recommend HR Solutions.
• Began recruiting a staff of ten HR managers and three office personnel to work at HR Solutions.

HR Solutions Services

The following will be the services HR Solutions will provide:

Industry Analysis

The human resources industry is expected to grow during the next five years to over $35 billion. The growth will be driven by an increased number of young employees who require extensive training and onboarding. The growth will be driven by an increased need for employees as the older demographic employee retires. The growth will be driven by an increase in the number of employees who are new to the U.S. and require assistance in onboarding and training. The growth will be driven by new technological advances that are not yet known. Costs will likely be reduced as new applications, such as the one created by HR Solutions, are created and introduced into the industry.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

HR Solutions will primarily target the following customer profiles:

• Small-to-large businesses in the Spokane region
• Small-to-large businesses throughout Washington (select programs/app)
• C-suite executives in Spokane

Competitive Analysis

Direct and indirect competitors.

HR Solutions will face competition from other companies with similar business profiles. A description of each competitor company is below.

Human Resource RX

Human Resource RX was founded in 2005 by Reme and Janette Choux. As former human resource negotiators within a large firm, they developed distinctive programs that can help HR managers reduce conflicts in the workplace. In addition, the programs assist personnel in recuperating from workplace trauma and other difficulties or issues that arise in the office.

Human Resource RX, headquartered in Spokane, claims to be the “Best HR Prescription” for companies that require assistance in the form of management and oversight in trauma or difficulty. Human Resource RX also assists in compliance issues within the state of Washington, bringing expert advice into thorny issues that can potentially lead to litigation. The company has three offices throughout Washington, each with a staff of twelve “HR managers” who service local businesses. The company has maintained a good standing within the state of Washington, although there have been two separate issues of incorrect legal advice offered to clients. The matters were both brought by former clients to the court system and eventually resolved.

Premier Human Resource Associates

Premier Human Resource Associates is owned and operated by Tami Watson, an HR executive with over thirty years of experience. She is joined in the company by her daughter, Reyna Watson, a recent graduate of Spokane College, where she earned a bachelor’s degree in Communication. Premier Human Resource Associates is located in Spokane and offers an extensive onboarding and training program to support HR managers within local hospitals and medical clinics.

The bulk of services provided to HR managers includes various specific onboarding and training needs of nurses, LVNs, and other care providers. Attention is given in particular to the processes of sanitation and hygienic practices, along with the methods of communication used within these specific businesses. To date, the company has assisted in successfully onboarding over 5,000 nurses and other caregivers.

Transport HR Training

Transport HR Training was started in 1997 as a result of multiple difficult issues within the truck driving industry in Washington. In the decades since, Transport HR Training has established the full spectrum of services and products for HR associates in the long-haul and short-transport businesses. Specific practices and procedures relating to, in particular, medical issues of drivers, have been developed to smooth the HR process and align truck drivers with services they need. Transport HR Training offers a comprehensive package of services that includes negotiation in conflict, onboarding specifics, driver training, legal procedures and processes, and other truck driver-specific conditions.

Competitive Advantage

HR Solutions will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

HR Solutions will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for HR Solutions is as follows:

Word of Mouth/Referrals

HR Solutions has built up an extensive list of clients and contacts over the years by providing exceptional service and expertise to their clients. Associates will follow them to their new company and help spread the word of HR Solutions.

Professional Associations and Networking

HR Solutions will extensively network throughout HR association and industry events. They will take an active role in leadership wherever invited to do so and will work to support the efforts of all associates or members.

Website/SEO Marketing

HR Solutions will fully utilize their website. The website will be well organized, informative, and list all the services that HR Solutions provides. The website will also list their contact information and list their available times to make reservations during the week. This will allow HR managers to speak with HR Solutions when most beneficial to the client. The website presence will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Human Resources company” or “HR near me”, HR Solutions will be listed at the top of the search results.

The pricing of HR Solutions will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for HR Solutions. Operation Functions:

• Tremaine Jackson will be the Owner and President of the company. He will oversee all staff and manage client relations. He has spent the past year recruiting the following staff:

Milestones:

HR Solutions will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the HR Solutions
• 6/1/202X – Finalize contracts for new HR Solutions clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into HR Solutions office
• 7/1/202X – HR Solutions opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for HR Solutions are the fees they will charge to clients for their services, online training and proprietary app.

The cost drivers will be the overhead costs required in order to staff HR Solutions. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

HR Solutions is seeking $200,000 in debt financing to launch its human resources company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 40
• Average Revenue per Month: $80,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Human Resource Business Plan FAQs

What is a human resource business plan.

A human resource business plan is a plan to start and/or grow your human resource business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Human Resource business plan using our Human Resource Business Plan Template here .

What are the Main Types of Human Resource Businesses? 

There are a number of different kinds of human resource businesses , some examples include: Human Capital Strategy, Compensation & Benefits, Talent Management, and Professional Development.

How Do You Get Funding for Your Human Resource Business Plan?

Human Resource businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Human Resource Business?

Starting a human resource business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Human Resource Business Plan - The first step in starting a business is to create a detailed human resource business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your human resource business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your human resource business is in compliance with local laws.

3. Register Your Human Resource Business - Once you have chosen a legal structure, the next step is to register your human resource business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your human resource business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Human Resource Equipment & Supplies - In order to start your human resource business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your human resource business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

NEW: Run stress-free performance reviews that work your way - find out more

Download : Free HR business plan template

Every success story starts with a plan. Using this template, you can help flesh out a business plan for your HR function with: 

Best practices for HR business partnerships 

A helpful template to realise your people team’s goals

Tangible ways to action and activate an HR strategy

Download for free here

• By Job Titles
• By College Majors
• By Companies
• By Location
• Job Search Advice

HR Business Plan: What Is It And What Are Its Steps?

Every company that has an HR department needs an HR business plan. Without it, you will have inconsistencies when you deal with your employees.

Human resources manage the relationship between your company and its employees. Due to this, it is only natural for human resources to have their own plan of approach to their tasks.

Key Takeaways:

An HR business plan is the strategic approach of the human resources department.

The HR business plan should clarify responsibilities, organize its processes, and create performance standards in which to gauge its success.

First assess the current HR situation, then establish goals and strategies to enact those goals for the HR department.

Make sure your HR strategies comply with legal requirements.

What Is A HR Business Plan?

An HR business plan is a strategic approach your human resource department will follow to accomplish its goals.

Like all business plans, an HR business plan needs to define its objectives, organize systems of measured success, and incorporate a flexible framework. A robust plan can adapt to new scenarios and still focus on its long-term aims.

Though this will vary by company, in general, every HR business plan will want to:

Clarify roles and responsibilities. Focus on the roles and responsibilities of the department and its members. You want to understand the job descriptions of each member of the human resource department. Then decide what the overall purpose of the department is and connect it back to each member. Be aware of any conflicting or contradictory agendas and seek to streamline.

Design and organize processes. Human resources helps hire, train, onboard, and terminate staff. There should be well-detailed plans for each process that keeps the human resources department prepared for any scenario.

Address compensation and benefits. Human resources manages the implementation of benefits and compensation. Therefore, the department’s plan must discuss how this will be handled.

Comply with legal requirements. The human resource department needs to be well-versed in the legal requirements and protections of the employees. The plan should provide a clear compliance with the law.

Create performance standards. A business plan is useless unless it can be evaluated against measures of success. It helps to provide metrics with results to be more objective in analysis.

Tie in to overall business plan. The HR business plan needs to complement the overarching business plan of the company. Avoid any policies or procedures that conflict with the overall business plan.

A human resource business plan will develop these points into a coherent strategy.

Steps To Develop A HR Business Plan

Assess current human resource situation. Before a plan is made, the human resources department and the company executives need to know what they have already. Your company should evaluate the roles and responsibilities of its human resource staff. You will want to see if anything is missing or if there is anything that is expendable.

Establish goals for human resource department. Now that you know what you’re working with, it is time now to think about what you want the human resource department to accomplish. Use the roles and responsibilities you just clarified to arrange practical benchmarks you want the department to make. Make sure goals do not interfere with one another but build toward an overall objective.

Create strategies to enact goals. Once you have your goals in place, it is time to build strategies to accomplish those goals. These strategies should work in tandem, so make sure each one has a logical progression. Like the goals, you do not want your strategies to interfere with one another but instead build towards an overall objective.

Evaluate business plan. Once you enact the plan, you need to make sure you accomplish your goals. Have a feedback system put in place where you can measure the success and failures of your plan. Come up with contingency plans in case your initial plans need to be re-evaluated.

Why Have A Human Resource Business Plan

An HR business plan is needed to establish long-term success with your employees.

Your plan gives focuses on the roles and responsibilities of the department. Human resources play a critical role in the hiring, training, and retention of staff. A business plan will clarify these procedures.

A HR business plan also provides consistency in the implementation of benefits and managing the welfare of the employees.

The human resource business plan empowers the department to perform at its best. In turn, it will help employees be equipped and compensated to perform at their best.

Without a HR business plan, your company is at risk conflicted and contradictory procedures that impede growth and success.

• Guide to Customer Retention
• Management Abbreviations
• Innovation in the Workplace
• Zappos Hiring Case Study
• Why a Clean Workspace Is Good for Business
• Tips for HR Magement Success
• How to Achieve Better Results With Your Team
• Working With a New Client
• What Is Market Mapping
• Managing Unprofessional Online Behavior
• Morale-Boosting Activities
• Understanding Your Team
• Signs of a Bad Hire
• How to Spot Leadership Potential
• Quality Management Implementation
• Goal Setting Tips for Business Owners
• How To Create An Effective HR Business Plan
• How To Avoid Nepotism
• Safeguarding Procedures For HR Managers
• How To Create A Productive Workplace
• The Power Of Strategic Partnerships
• Advice From Successful Business Leaders
• Why You Should Network
• How To Manage Up
• Corporate Retreat Ideas
• What Is An Employee ID?
• What Is Employee Self-Service?
• The 4 Ps Of The Marketing Mix
• How To Be Flexible At Work
• What Is Greenwashing?
• What Does A Chamber Of Commerce Do For Businesses
• How To Write A Sales Introduction Email
• A Guide To The Critical Path Method
• What Is A Change Agent?
• How To Build Your Employer Brand
• How To Have Effective Meetings

Conor McMahon is a writer for Zippia, with previous experience in the nonprofit, customer service, and technical support industries. He has a degree in Music Industry from Northeastern University and in his free time he plays guitar with his friends. Conor enjoys creative writing between his work doing professional content creation and technical documentation.

Find Your Next Hire Out Of Over 5 Million Candidates

Get connected with quality candidates whose resumes on Zippia best fit your job description.

Related posts

7 Safeguarding Procedures for HR Managers

10 Fun-filled Activities to Help Boost Team Morale

How To Understand Your Team

8 Ways to Bring Innovation Into Your Organization

• Zippia For Employers >
• Hiring Hub >
• Life At Work >
• Become A Better Manager >
• 5 Steps To Creating An Effective Hr Business Plan

Item added to your cart

Here is a free business plan sample for a hr consulting practice.

Embarking on the journey to become a human resources consultant can be both exciting and daunting.

In the following paragraphs, we will present you with a comprehensive business plan outline tailored for a human resources consulting firm.

As an aspiring consultant, you're likely aware that a robust business plan is crucial for laying the foundation of your consulting practice. It serves as a roadmap, guiding you through setting objectives, developing strategies, and establishing a clear plan of action.

To streamline your planning process, feel free to utilize our human resources consulting business plan template. Our team is also on standby to provide a complimentary review and fine-tuning of your plan.

How to draft a great business plan for your human resources consulting practice?

A good business plan for a human resources consultancy must reflect the unique aspects of the HR services industry.

To start, it is crucial to provide a comprehensive overview of the HR consultancy market. This includes current statistics and the identification of emerging trends within the industry, as illustrated in our human resources consultancy business plan template .

Your business plan should articulate your vision clearly, define your target market (such as small to medium-sized enterprises, large corporations, or startups), and establish your consultancy's unique value proposition (specialization in certain industries, bespoke HR solutions, legal compliance, etc.).

Market analysis is a key component. This requires a thorough understanding of the competitive landscape, industry trends, and the specific HR needs of potential clients.

For an HR consultancy, it is important to detail the services you intend to offer. These might include recruitment, training and development, performance management, employee relations, compliance, and strategic HR consulting. Explain how these services will address the needs and challenges of your clients.

The operational plan should outline your consultancy's structure, including the location, the team's expertise, the technology and tools you will use, and your approach to client projects.

Quality of service is paramount in HR consultancy. Emphasize your commitment to ethical standards, confidentiality, and continuous professional development to stay abreast of HR best practices and legal requirements.

Discuss your marketing and sales strategy next. How will you build your client base and maintain long-term relationships? Consider networking, partnerships, content marketing, and the role of professional associations.

Incorporating digital strategies, such as a professional website, online content, and a social media presence, is also vital in the modern marketplace.

The financial plan is another critical element. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.

In an HR consultancy, it's essential to understand your service pricing structure and to manage cash flow effectively. For assistance with this, you can refer to our financial forecast for an HR consultancy .

Compared to other business plans, an HR consultancy's plan must pay special attention to professional qualifications, industry accreditation, and the development of intellectual property, such as proprietary training programs or HR tools.

A well-crafted business plan will not only help you clarify your strategy and approach but also attract clients and secure financing or investment.

Lenders and investors are looking for a solid understanding of the HR services market, realistic financial projections, and a clear plan for delivering high-quality services.

By presenting a detailed and substantiated business plan, you demonstrate your expertise and dedication to the success of your HR consultancy.

To achieve these goals while saving time, you can simply fill out our human resources consultancy business plan template .

A free example of business plan for a HR consulting practice

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a human resources consultant .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Industry overview and dynamics.

The human resources (HR) consulting industry plays a pivotal role in the modern business landscape, offering expertise in talent management, organizational development, employee relations, and compliance with labor laws.

As of recent estimates, the global HR consulting market size is valued at several billion dollars and is expected to grow steadily. This growth is driven by the increasing complexity of labor legislation, the need for talent optimization, and the strategic importance of human capital in achieving business objectives.

In the United States, there are thousands of HR consulting firms, ranging from large, multinational corporations to small, specialized boutiques, contributing significantly to the economy and employment.

The data underscores the critical function of HR consultants in supporting businesses to navigate the ever-evolving workforce landscape.

Emerging Trends

The HR consulting sector is witnessing several emerging trends that are reshaping the industry.

There is a growing emphasis on data analytics and artificial intelligence to inform talent acquisition strategies, predict employee turnover, and enhance performance management.

Diversity, equity, and inclusion (DEI) initiatives are becoming central to organizational strategies, with consultants playing a key role in implementing effective DEI programs.

The rise of remote and hybrid work models has prompted a need for new HR policies and practices to manage distributed teams effectively.

Employee well-being and mental health are also gaining prominence, with businesses seeking expert advice on creating supportive work environments.

Moreover, the gig economy and the rise of freelance work are creating new challenges and opportunities in talent management that HR consultants are uniquely positioned to address.

These trends highlight the dynamic nature of the HR consulting industry and its responsiveness to the changing needs of the workforce and businesses.

Key Success Factors

Several factors contribute to the success of an HR consulting firm.

Expertise and specialization in specific HR domains can set a consultancy apart, allowing it to offer tailored solutions and deep insights.

Building strong client relationships is essential, as trust and understanding form the foundation of effective HR advisory services.

Staying abreast of legal changes and compliance requirements ensures that clients receive up-to-date advice, protecting them from potential liabilities.

Adopting technology to streamline processes and deliver data-driven insights can enhance the value proposition of HR consultants.

Finally, the ability to adapt to industry shifts, such as changes in workforce dynamics or emerging HR technologies, is crucial for long-term sustainability and growth.

These success factors are integral to the development and prosperity of HR consulting firms in a competitive and fast-changing business environment.

The Project

Project presentation.

Our human resources consultancy project is designed to address the critical needs of businesses in managing their most valuable asset: their people. Situated in a business district or operating virtually to cater to a global clientele, this consultancy will offer a comprehensive suite of HR services, from talent acquisition and management to employee engagement, training, and development. Our services will be tailored to the unique needs of each client, ensuring that they are equipped with the best strategies and practices to manage their workforce effectively.

We will focus on delivering personalized, strategic HR solutions that enhance organizational performance and employee satisfaction.

Our consultancy aims to become a trusted partner for businesses, guiding them through the complexities of human resources management and helping them to foster a productive and positive work environment.

Value Proposition

The value proposition of our human resources consultancy is centered on providing expert, tailored HR solutions that drive business success. We understand the challenges that companies face in attracting, retaining, and developing talent in a competitive market.

Our commitment to delivering strategic HR services is designed to enhance organizational capabilities, improve employee engagement, and ensure compliance with employment laws and regulations.

We are dedicated to fostering a culture of continuous improvement and innovation in HR practices, enabling our clients to focus on their core business activities while we manage their human resources needs.

As a pillar of support for businesses, we strive to be more than just consultants; we aim to be partners in our clients' growth, contributing to the development of their human capital and the overall success of their organization.

Project Owner

The project owner is a seasoned human resources professional with a wealth of experience in various industries. With a strong background in strategic HR management and a passion for organizational development, they are well-equipped to lead a consultancy that provides effective solutions to complex HR challenges.

Armed with a deep understanding of labor laws, best practices in talent management, and employee relations, the project owner is committed to helping businesses achieve their objectives through effective people management.

With a vision of empowering businesses to maximize their human capital, the project owner is dedicated to providing innovative HR strategies and fostering a culture of excellence within the consultancy and its client organizations.

Their commitment to professional integrity and a results-driven approach makes them the driving force behind this project, aiming to elevate the standard of human resources management for businesses seeking to thrive in today's competitive landscape.

The Market Study

Market segments.

The market segments for a human resources consultancy are diverse and multifaceted.

Firstly, there are small to medium-sized enterprises (SMEs) that may not have in-house HR capabilities and require external expertise to manage their workforce effectively.

Secondly, large corporations seeking specialized HR services such as leadership development, change management, or talent acquisition strategies form another significant segment.

Startups and fast-growing companies also represent a market segment, as they often need assistance with scaling their teams and establishing robust HR processes.

Lastly, individual professionals seeking career coaching, resume building, and personal branding services can be targeted as a niche segment within the broader market.

SWOT Analysis

A SWOT analysis of the human resources consultancy business reveals several key points.

Strengths include a deep understanding of HR laws and best practices, a network of industry contacts, and the ability to offer personalized services tailored to each client's needs.

Weaknesses might encompass the challenge of staying updated with constantly evolving HR regulations and the potential for high client dependency.

Opportunities can be found in the growing trend of outsourcing HR functions, the increasing complexity of employment legislation, and the rising focus on employee well-being and development.

Threats may include intense competition from other HR consultancies and the possibility of economic downturns affecting clients' budgets for consultancy services.

Competitor Analysis

Competitor analysis in the human resources consultancy space indicates a market with both large, established firms and smaller, niche consultancies.

Direct competitors include other HR consulting firms offering a similar range of services, as well as online platforms providing automated HR solutions.

These competitors vie for clients by showcasing their expertise, client testimonials, and success stories.

Potential competitive advantages for our consultancy could be specialized knowledge in certain industries, a personalized approach to client service, and innovative solutions to HR challenges.

Understanding the unique selling propositions and weaknesses of competitors is crucial for carving out a distinct market position and ensuring client loyalty.

Competitive Advantages

Our human resources consultancy stands out due to our comprehensive approach to HR management and our commitment to delivering measurable results.

We offer a suite of services that includes not only traditional HR functions but also cutting-edge solutions like data-driven talent analytics and employee engagement strategies.

Our dedication to staying ahead of HR trends and investing in continuous professional development means that we can provide our clients with the most current and effective advice.

Moreover, our personalized service model ensures that each client receives attention tailored to their specific challenges and goals, fostering strong, long-term partnerships.

You can also read our articles about: - how to start an HR consulting practice: a complete guide - the customer segments of a HR consulting practice - the competition study for a HR consulting practice

The Strategy

Development plan.

Our three-year development plan for the human resources consultancy is designed to establish us as a leader in the HR solutions industry.

In the first year, we will concentrate on building a robust client portfolio by offering bespoke HR services and solutions tailored to the specific needs of businesses.

The second year will be focused on expanding our services to include online HR tools and resources, as well as developing training programs for HR professionals and management.

In the third year, we aim to broaden our reach by forming strategic alliances with industry associations and expanding our team to include specialized consultants in areas such as diversity and inclusion, talent acquisition, and employee wellness programs.

Throughout this period, we will uphold our dedication to excellence, client satisfaction, and staying ahead of HR trends to serve our clients effectively.

Business Model Canvas

The Business Model Canvas for our human resources consultancy targets small to medium-sized enterprises in need of professional HR services and larger corporations seeking specialized HR projects or training.

Our value proposition is delivering expert HR advice, compliance, employee development, and performance management to enhance our clients' workforce and operations.

We offer our services through direct consultancy, online platforms, and interactive workshops, utilizing our key resources such as our experienced HR professionals and our network of industry experts.

Key activities include HR audits, policy development, employee training, and legal compliance checks.

Our revenue streams are derived from consultancy fees, subscription-based online resources, and training program enrollments, while our costs are mainly associated with professional staff, marketing, and technology investments.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on demonstrating the tangible benefits of professional HR services.

We aim to educate potential clients on the importance of effective HR management and the value it adds to their business. Our approach includes targeted LinkedIn campaigns, HR workshops, and thought leadership articles.

We will also establish partnerships with business networks to gain referrals and credibility.

Additionally, we plan to leverage testimonials and case studies from satisfied clients to showcase our expertise and results.

Risk Policy

The risk policy for our human resources consultancy focuses on mitigating risks associated with regulatory compliance, client confidentiality, and service quality.

We adhere to strict confidentiality agreements and data protection laws to safeguard client information. Our consultants are well-versed in employment law and stay updated on legislative changes to ensure compliance.

We maintain high service quality through continuous training and professional development of our consultants. We also have a financial management strategy to ensure stability and growth.

Professional indemnity insurance is in place to protect against potential legal claims, ensuring we can provide top-tier HR services with confidence.

Why Our Project is Viable

We are committed to establishing a human resources consultancy that addresses the evolving challenges faced by businesses in managing their human capital.

With our expertise in HR practices, dedication to client success, and adaptive service offerings, we are poised to make a significant impact in the market.

We are enthusiastic about the opportunity to enhance the operational efficiency of our clients' businesses and are prepared to adapt our strategies to meet their changing needs.

We are optimistic about the future of our human resources consultancy and the value it will bring to our clients and the industry as a whole.

You can also read our articles about: - the Business Model Canvas of a HR consulting practice - the marketing strategy for a HR consulting practice

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a human resources consultant and our financial plan for a human resources consultant .

Initial expenses for our human resources consultancy include setting up a professional office environment, investing in HR-specific software and technology, legal and compliance costs, developing a strong online presence, and engaging in networking events to establish connections with potential clients. Additionally, costs will be incurred for branding, website development, and targeted marketing strategies to reach our intended market.

Our revenue assumptions are based on a thorough market analysis of the demand for HR consulting services, taking into account the increasing complexity of employment laws and the need for specialized HR expertise among small and medium-sized enterprises (SMEs).

We anticipate a gradual increase in client acquisition, starting conservatively and expanding as our reputation as a trusted HR advisor grows.

The projected income statement reflects expected revenues from our consulting services, direct costs (such as salaries of consultants and administrative staff), and operating expenses (office rent, marketing, professional development, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our consultancy.

The projected balance sheet presents assets unique to our consultancy, such as office equipment, software licenses, and liabilities including any loans and anticipated operational costs.

It provides a snapshot of the financial standing of our human resources consultancy at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs at any point. This is crucial for maintaining a healthy cash balance and steering clear of liquidity issues.

The projected financing plan outlines the specific sources of funding we intend to tap into to cover our initial costs.

The working capital requirement for our consultancy will be diligently tracked to ensure we have sufficient funds to support our day-to-day activities, such as paying for office utilities, consultant salaries, and other recurring expenses.

The break-even analysis for our venture will show the level of service engagement necessary to cover all our costs, including the initial investments, and to begin generating profits.

It will signal the point at which our consultancy becomes financially sustainable.

Key performance indicators we will monitor include the client retention rate, the average revenue per consultant, the profitability margin on our services, and the return on investment to gauge the efficiency of the capital we have deployed into the business.

These metrics will assist us in measuring the financial health and overall success of our human resources consultancy.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a HR consulting practice .

• Choosing a selection results in a full page refresh.
• Opens in a new window.

Develop a Successful Human Resources Department Business Plan

Plan to Chart Your Business Course for Success and Contribution

• Management Careers
• Job Search Resources
• Hiring Best Practices
• Employment Law
• Employee Motivation
• Employee Management
• Management & Leadership
• Employee Benefits

Susan Heathfield is an HR and management consultant with an MS degree. She has decades of experience writing about human resources.

If you’re a department leader, your boss will likely one day ask this question: “What is your business plan for your department?” As the leader of the Human Resources function, you can use these steps to answer that question.

A frequently asked question at this website, it’s a difficult question to answer in a generic fashion because the needs of every company for the contribution of the HR department can differ widely. You can, however, use these steps as a guide as you develop your own HR business plan.

Your Human Resources department business plan depends on your needs analysis of your own workplace. Your Human Resources department business plan also depends on learning about and benchmarking industry standards outside of your organization.

But, the fundamental question you need to answer, to reply to your boss’s question, is, “What does your workplace need from the HR function?” Here’s how you can find the answer.

Steps to Develop a Human Resources Department Business Plan

• Start your Human Resources department business plan by clarifying exactly what your boss needs and wants from you and in how much detail. You don’t want to spend hours and hours developing information or a detailed plan that the boss doesn’t need or want. That said, for your own clear purpose and direction, your own strategic plan for your department, this approach will yield great value.
• Read through the detailed job descriptions that have been developed for the HR Director/VP , HR Generalist , and HR Assistant . Are there functions listed in these job descriptions that you are not performing that you could perform that would add value to your organization? Start a function list. You can also use a commercially developed Human Resources department audit book/program or an occasional free Human Resources department audit plan list.
• Take a look at this list, plus add to the list, the functions that your Human Resources department is already performing and functions that you know you want to add—or subtract. Minute detail is not required until you are ready to put together your Human Resources department business plan when you complete these steps.
• Meet with your fellow executives to obtain an assessment of their current satisfaction with your services, additional services they’d like you to add, and their ideas about how HR can best support your organization’s mission , vision , and goals. Supply the questions to your key colleagues in advance of your meeting. Inform them that you have distributed the questions in advance so that they can solicit feedback from their staff, too. If you have effectively gathered the above internal and external information, you may be able to present the choices in a rating and ranking format. This is the key step within your organization for assessing what the line management and the employees want from the HR function. Of course, there are administrative and counseling functions that they might never consider asking you to provide that you will continue to provide as part of a professional HR function. The purpose of asking is to find the offerings that your customers think they need most.
• You are developing a great deal of internal information about your company’s HR needs. You might also look at recent journals from professional associations such as the Society for Human Resource Management (SHRM). Talk with colleagues in any local associations you attend. Take a look at literature available such as HR Magazine . The articles from this section of TheBalance.com are particularly useful for planning the priorities and scope of the HR department business plan.
• Once you have gathered all of this information, or even, just enough—your executives’ priorities may give you extremely clear direction, for example—you can make a plan. You can see what you are missing in your HR department, what you might expand, what you need to focus on strategically to build your department’s contribution, and what you may currently offer that is not needed.
• From these identified missions, prioritize and make a plan, based on resources and your preferred method of presentation or accomplishment, of what you can accomplish this year and next. Some solutions may be HRIS-based needs ; others may have to do with HR office offerings; others may require a strategic change in direction or the addition of a major function. You won’t know until you study and ask.

Now, at last, you can answer your boss’s question: What is your business plan for your HR department?

• How to Do Human Resources Strategic Planning
• Create Value With Human Resources Measures
• Human Resource Management Basics
• What Is Personnel Management?
• Human Resources Management Fundamentals in Hiring Employees
• How to Develop a Job Description
• Training and Preparing for a Human Resources Job
• What Is Human Resource Development?
• Build a Strategic Framework Through Strategic Planning
• The 3 New Roles of the Human Resources Professional
• 10 Things You Should Never Tell HR
• Why Human Resources Management Is So Important
• Human Resources Job Titles
• What Does a Human Resources (HR) Recruiter Do?
• Performance Development Planning (PDP)
• Most Popular Topics in the Human Resources Content

Prefer a self-guided tour?

In just 5 minutes (no strings attached!), learn how market leaders use Leapsome to build high-performing teams, enable managers and retain their best talent.

A complete guide to effective HR strategy planning (& a free template!)

Businesses are beginning to recognize the strategic value of human resources. In fact, our State of People Enablement Report found that 79% of people ops leaders felt their C-suite saw them as important.* They no longer viewed HR as an administrative or supportive department, but as vital to the organization’s success.

As the role people teams play expands and grows in importance, taking a more systematic, data-driven approach is essential. Effective, intentional strategies ensure your human resources department stays aligned with overarching company goals while positively impacting the employee experience and making your organization a truly enjoyable place to work.

To that end, this article covers the essential steps you need to take for successful HR strategy planning. We’ve also included a best practice HR strategy template you can customize or use as inspiration for your own team.

* Leapsome’s State of People Enablement Report , 2023 ‍

🤿 Dive right into HR strategy development Our customizable HR strategy template includes all the essential stages and action points you need to structure and flesh out your ideas. 👉 Download template here

What is an HR strategy & why does it matter?

An HR strategy is a comprehensive plan that aligns team management with organizational goals. By integrating the two, companies can ensure that they recruit and retain the right talent to keep their initiatives and long-term objectives on track.

However, an HR strategy goes beyond hiring and keeping positions filled — it can help you engage, empower, and develop employees in a way that supports sustainable growth and fosters a positive work environment. 

When human resources plays a more strategic role, the company can also take a more proactive stance in its industry and build workplace resilience . People teams can forecast staffing needs and spot potential gaps and issues before they escalate into larger problems. For instance, you might anticipate turnover and escalate or adjust hiring efforts instead of scrambling to bring people on board as team members leave. ‍

💭 “In the future of HR, the People function continues to be a strategic partner to the business that is highly integrated into company performance and no longer seen as just a support and administrative function. Well-supported People functions and teams will result in better business results, deeper engagement, high employee enablement, and happy customers.” ‍ — Luck Dookchitra , VP People at Leapsome

Last, remember that while HR managers may take the lead, the best strategies are a collaborative effort between leaders, team leads, and team members. Including stakeholders from every area of your business gives you a more holistic perspective, ensuring that your plan will benefit the entire company. ‍

Free download: Our actionable HR strategy template

Human resources strategies aren’t one-size-fits-all. It’s best to tailor them to your company’s unique needs, goals, and culture rather than adopting a generic blueprint.

That said, having a detailed template can provide you with a structure and save you time on planning. You can check that you haven’t missed any essential steps and customize the strategy to suit your context. 

That’s why we’ve provided this free, downloadable template based on Leapsome’s own strategies and values. ‍

🏆 Create a winning HR strategy Streamline your HR planning processes with our comprehensive template that covers every step and checkpoint.  👉 Download template here

8 steps to creating an effective HR strategy plan

Whether you’re working off a template or starting from scratch, there are some essential steps that should go into the development of any great human resources strategy . Here’s everything you need to consider at each stage. ‍

1. Establish your HR strategy’s aims

Setting clear goals is essential as they will guide all the future decisions you make about your HR strategy. This step involves understanding your organization’s broad objectives and determining how you can support them, ensuring your plan contributes directly to the company’s aspirations and long-term success.

For example, your leadership team might clarify that their long-term objective is to enter the European market and establish a strong presence within the next two years. HR and the C-suite could collaboratively decide on the following aims:

• Hire 80% of the team for the new branch locally
• Relocate the remaining 20% of team members from existing branches

Speaking to other departments allows you to assess where your interests align and how you can support each other most effectively. In the example, HR might work alongside legal and accounting to find potential regulatory roadblocks to hiring in Europe.

When you’re developing cross-departmental aims and sharing them across the organization, tracking them can be challenging. Using goal-setting software like Leapsome allows you to establish complex objectives and track your progress toward them. Choose a platform that accommodates various methodologies, such as OKRs and SMART goals , so you can easily tailor your workflow to your company’s needs and preferences.

2. Review your industry

Staying up-to-date with industry happenings is essential to keeping your HR strategy relevant and competitive. You need to research the current state of recruitment, retention, and team management to understand what’s realistic before you develop any plans.

Going back to the example in step one, imagine you’re investigating the current European job market. You discover that there’s a talent shortage in your industry, which means that you may struggle to hire locally.

Look at official sites like Eurostat , the International Labor Organization (ILO), and the US Bureau of Labor Statistics (BLS) for the most recent information. HR thought leaders such as SHRM and the Harvard Business Review also report on job market trends.

Evaluating your position within the market can give you extra insights into developing a realistic strategy. You can see where you need to improve, where you already shine, and where competitors outmatch you. For instance, while looking into European expansion, you may notice that another company already has a strong foothold in the job market.

During your research, see where you can update your current HR tools and resources to support your strategizing. People enablement platforms like Leapsome can automate time-consuming parts of your workflow, such as distributing surveys, data collection, and scheduling meetings, so you can prioritize the planning itself. Automation also has the power to make you more adaptive to changes during the strategizing process — 63% of companies said it helped them to pivot. ‍

3. Analyze & check in with your team

Consider your team’s composition to evaluate the talent you’ve got and look for gaps. You might look into:

• Employee demographics
• Tenure and experience levels
• Job performance
• Salary and benefits

Let’s say you’re considering which team members would be ideal candidates to relocate to your new European branches. You might note that a high percentage of the team are digital nomads who are highly likely to be interested in traveling and living abroad.

To conduct an effective analysis, you need to go deeper than superficial numbers to uncover your team’s needs and wants. Running engagement surveys can help you measure employee sentiment about upcoming company initiatives. Use a flexible tool like Leapsome’s Surveys module so you can come up with questions that are specific to your organizational goals and strategy or customize a ready-to-implement template. Setting up an anonymous suggestion box also creates a space where employees can share concerns that you haven’t covered in your survey.

To keep employees at the forefront of your initiatives, use their feedback to create action points for your strategy. For example, you might discover that team members would be willing to relocate to head an expansion abroad if it meant they were getting a promotion. Tools like Leapsome’s AI-powered sentiment analysis can help you summarize written responses while our post-survey action plans can analyze them to give you quick suggestions. 

🎯 Put employees at the center of every plan Our engagement surveys can help you uncover your team’s concerns and align your strategies with their best interests. 👉 Learn more

4. Consider development opportunities 

Now that you’ve got a better understanding of your current team, see whether your company has the skills and expertise it needs to meet its objectives in-house. If not, determine how quickly you can fill any gaps through learning and development initiatives.

Start by conducting a skills gap analysis to compare the talent you need against your team’s current capabilities. Visualizing the knowledge and expertise you need for your company initiatives on a competency framework can help you spot areas for development. You’ll also see how many steps employees need to take to reach an optimal skill level. Leapsome’s AI-powered competency framework can help you get started — just input your department name, number of competencies, and number of levels to generate a framework in minutes.

Let’s say that you’re looking for employees to manage payroll for new branches in the United Kingdom. While no one in the existing accounting department is familiar with British regulations, one person has experience in international finance.

Once you’ve got a clearer idea of your talent needs, explore how effectively you can meet them by developing existing team members. For instance, you might:

• Ask managers to hold career development talks and report on which team members would be open to learning new, critical skills.
• Assess your current learning and development programs to see if you can adjust them to include the desired expertise.
• Research which training courses on the market cover the competencies you need.
• Explore the possibility of creating personalized courses to equip team members with the specific skills they need.

5. Explore pathways for career progression

As you develop your HR strategy, decide how roles should change to align with organizational goals and employee needs. You may need to create new positions if your current team structure doesn’t support your plans, especially if you’re growing or expanding.

Again, a competency or career progression framework could help you determine which employees can be upskilled or are ready to move into the positions you need. Leapsome’s Compensation and Reviews modules could save you time here by providing you with relevant data on all your internal candidates. You can also use the platform to collaborate with each employee’s team lead to make informed, well-rounded decisions.

For example, your company might need a sales manager to head a new branch in another country. After looking at your employee data, you might identify a salesperson who’s got experience heading a team, and a quick chat with their team lead may reveal that they’re eager to advance professionally. You can then see how to support them and upskill them to move into the new role.  ‍

6. Examine recruitment & turnover

Hiring and retention are often at the heart of human resources initiatives. For example, reducing turnover can help businesses maintain a knowledgeable and experienced team while they launch new ventures. A stable team is also vital to protecting employee well-being and company culture during changes. When colleagues are constantly coming and going, surveys show that team members are up to 25% more likely to resign .

Using the following steps, you can get clarity into how hiring and retention may play into your HR strategy:

• Measure your recruitment and turnover levels
• Filter the results by department and role
• Benchmark your results against the industry standard
• Review reasons for job offer rejections and resignations
• Consider whether you can expect these numbers to change
• Estimate how many positions you’ll need to fill

A people analytics tool like Leapsome can help you implement many of these steps. Our platform not only collects and analyzes your HR data, but gives you AI-driven actionable insights . For instance, Leapsome can sort your information to indicate the biggest impact drivers and filter out less relevant details. You can also benchmark this data against competitors and use predictive analysis to uncover future trends in turnover.

Ultimately, you can see how to solve potential turnover issues at the same time as you discover them, saving valuable time. ‍

7. Design HR initiatives & strategies

Now, you should be ready to translate all the aims and the insights you’ve collected into actionable steps. Write objectives that relate to both the overarching business goals and your team’s needs. If you’re using a cascading goal framework like OKRs, you can tie them directly to each of your company’s aims. 

If you find the OKR methodology tricky to implement correctly, consider using Leapsome’s AI-powered OKR generation feature: Simply provide a descriptive objective as a prompt, and allow the AI tool to generate key results and initiatives tailored to your overall goal. You can then refine your choices from the generated list by selecting the most suitable key results, and include relevant and realistic deadlines and metrics for your organization.

Let’s return to our example of the organization that’s looking to expand abroad. You might establish the following objectives and key results:

Company-level

• Objective: We operate in the EU within the next two years to diversify our market presence and increase our resilience. 
• Key result: We have five teams of 750 local hires and 250 relocated employees working across offices in London, Paris, Berlin, Madrid, and Rome.
• Objective: We have full teams with the best skills, experience, and culture add to run our European offices to ensure the success of our expansion.   ‍
• Key result: There are ten managers from our existing offices working in our new European ones who have successfully undergone our relocation program.  ‍
• ‍ Initiative: We arrange meetings to discuss career opportunities with the top 30 candidates.

Any key results should be measurable so you can track your progress and see whether you’re staying on course. For instance, the metrics in the examples above are the number of people hired and successful relocations.

Once you’ve written your objectives, finalize them with leadership, department heads, and employee representatives. You’ll need to double-check that everyone is aligned on the strategy. Returning to our example, perhaps the C-suite has agreed that ten managers can relocate and employees are on board, but department heads fear that it’ll leave them short-staffed. It’s essential to address these concerns: In this instance, you could consider implementing a transitional plan that outlines how the company will manage workload and resources during the relocation period. ‍

8. Monitor progress & review 

Your HR strategy plan doesn’t end with implementation — you need to decide how you’ll monitor how it’s going and potentially adjust your approach as your needs change and evolve. ‍

💭 “We’ve emphasized continuous improvement since our first HR strategy. Our approaches evolved as we gained insights from experiences and integrated more comprehensive training and development programs. We also honed our communication channels: Fostering transparent dialogues with staff proved essential in understanding their changing needs. By adopting the right technology, we’ve made HR processes more efficient and user-friendly. Our HR strategies have ensured we attract the right individuals who align with our company ethos and contribute meaningfully to our mission. We’ve seen significant benefits: increased productivity, improved teamwork, and a notable boost in our quality of service.” — Sarah Jeffries, Managing Director, First Aid Course Leicester

Using data analytics, you can continue to observe trends in:

• Recruitment and retention
• Onboarding, training, and development
• Engagement levels
• Punctuality and absenteeism

Looking at the data, you can determine whether you’re seeing the expected results. For example, if you’re expanding your organization abroad, you should see changes in recruitment levels and employee demographics. You might be interested in investigating your onboarding times if you’re hiring a lot of candidates to check that training is running smoothly.

You can also use the data to evaluate how well your company has managed the changes. Retention and engagement levels are often telltale signs — if the initiatives have improved job satisfaction, you can expect an increase in both.

You can run surveys to get a clearer idea of employee responses toward the initiatives. When you’re managing hundreds of people over different locations, reading every answer won’t be feasible. Instead, turn answers to Likert and multiple choice questions into data to gauge your team’s overall sentiment using data analytics.

If you ask open-ended questions, you could use a tool like Leapsome’s AI survey comment summaries . Our Natural Language Processor interprets qualitative survey results to give you a deep analysis of written responses.

How Leapsome enables HR professionals

‍ Human resource teams should be a vital part of any business’s big-picture strategies. With their input, organizations can strike an ideal balance between working toward ambitious company objectives and supporting team members.

To enable HR professionals to thrive as they take on more strategic roles within your organization, you need the right tools. Our people enablement platform is ideal for creating HR plans that are tailored to your specific business needs. We allow you to manage:

• Company-wide goals and OKRs
• Employee feedback and surveys
• Career advancement processes
• Onboarding, learning, and development
• People analytics

With Leapsome, you can easily collaborate on any human resources strategy and get data-driven insights to make the best possible decisions for your organization’s future.  ‍

🖼️ Focus on the big picture, not the fine print Leapsome automates data collection, survey distribution, and review cycles so you’re free to strategize. 👉 Book a demo

Leapsome Team

Related articles

The HR professional’s guide to leveraging AI in 2023 and beyond

Human Resources in the AI era: Prospects and Challenges

People Over Perks podcast ep. 6 – Jennifer Samreny, HR Business Partner at Pinterest

Ready to upgrade your people enablement strategy.

Explore our performance reviews, goals & OKRs, engagement surveys, onboarding and more.

The #1-rated HR platform for people enablement

Schedule a demo to find out why leading companies choose Leapsome — the intelligent HR platform that empowers managers to develop, align, and engage their teams.

• Get AI-powered recommendations 🪄
• Save countless hours with automations ⏱️
• Learn from industry best practices and benchmarks 📊

1,600+ forward-thinking companies choose Leapsome

Schedule a demo

Our friendly team will be in touch right away!

Mitarbeiter entwickeln mit Leapsome

Stärken Sie Mitarbeiter-Engagement und Erfolg Ihres Unternehmens - wie andere führende Marken.

Interesse an Leapsome?

Unsere Produktexperten zeigen Ihnen gerne unsere Plattform oder eröffnen einen Account.

• Sample Business Plans
• IT, Staffing & Customer Service

HR Consultancy Business Plan

Thinking about establishing your own HR consultancy business? Well, that’s a great idea!

Starting an HR consultancy can be a rewarding business venture as more and more organizations seek expert guidance to navigate the complexities of human resources.

But the first thing you’ll need is a well-written business plan to make it successful. It helps you set up and manage your services effectively, from strategic planning to talent management and employee relations.

Need help crafting your plan in order?

Not to worry. This HR consultancy business plan template will help you get started and guide you on what to include in a comprehensive plan.

Sounds good? Let’s dive right in!

Why Need a Business Plan for Your HR Consultancy

A strong business plan is not just a written document; it serves as a strategic tool for starting and growing an HR consultancy firm. It covers all the essential aspects of your business and aligns with the market needs & opportunities.

Here are several key reasons why you need a business plan for your HR consultancy business:

Clarity and direction

A business plan provides a clear roadmap and highlights your consultancy business’s mission, vision, goals, and strategies to achieve them. This will help you define the steps you need to take while establishing your business, navigating you to the right direction.

Raise funding

If you need capital investment or loans to get off the ground, you’ll need a well-crafted business plan in place. It provides a detailed analysis of the financial feasibility and sustainability of your business. This will help you demonstrate the profitability of your HR consultancy and gain the confidence of potential investors or banks.

Operational efficiency

A comprehensive business plan can help you provide valuable insights into the operational aspects of an HR consultancy company. This key element of a business plan allows you to manage resources effectively. Also, it helps in overall operational efficiency and ensures your business runs smoothly.

Risk management

With the help of a business plan, you can identify the potential risks and challenges that might affect your business. This understanding helps you develop risk mitigation strategies effectively and makes you prepare for unforeseen circumstances. Also, it ensures that your business can succeed over the long term.

Informed decision-making

An effective business plan helps you specify clear, measurable, and attainable goals for your HR consultancy business. It lets you assess the business performance and track the progress against the defined goals. This way, you can make well-informed decisions and revise the strategies as needed.

In short, having a business plan can greatly benefit you and effectively navigate the complexities of HR consulting practices.

Now that you understand the importance, let’s check out what are the key elements of an HR consulting business plan.

Key Elements of an HR Consultancy Business Plan

While writing an actionable business plan, you should consider including all the critical details you need to establish a successful HR consultancy business.

Here is a list of the most important sections for a comprehensive and compelling business plan:

1. Executive Summary

An executive summary is a quick, concise overview of the HR consultancy business plan, highlighting the most essential aspects of your HR consulting firm.

Though it is the first section, writing your plan summary would be more convenient at the end once the entire doc is ready. This is so because it summarizes all the key sections you mentioned in the rest of the plan.

So, this section is your chance to provide a clear and persuasive introduction to your business that can grab the reader’s attention. Also, make sure that you keep it short and simple.

You may consider including details like your business name, location, concept, core values, vision statement, services offered, market opportunities, target customers, competitive advantages, marketing efforts, and financial highlights.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Company Overview

The company overview section provides a detailed description of your HR consultancy firm, giving an in-depth understanding of your business concept and nature.

You may describe every foundational element in this section, including the legal structure, specific niche, background & history, mission statement, company owners, short-term goals, and long-term objectives.

Moreover, explain what milestones you have achieved to date and clearly outline what sets your business apart from others.

In short, this section helps readers comprehend your company’s foundation, capabilities, and areas of specialty. So keep it impressive yet to the point.

3. Market Research

The market analysis section provides a thorough explanation of the industry and market in which your HR consulting business intends to operate.

To plan this section, you’ll need to conduct detailed market research for your HR consulting services and demonstrate its positioning within the market. Consider adding the following components:

• Industry size & growth potential using recent data and statistics
• Current trends in the human resources consulting practice
• Target market segments and client needs
• Direct & indirect competitors
• SWOT analysis to identify the internal & external factors
• Regulatory environment

You can even outline the market gaps and opportunities to ascribe your competitive advantages and USPs.

Here, you should note that this market analysis showcases your deep understanding of the HR consulting industry, so try to present research-backed data and charts to impress potential investors or partners.

4. Service Offerings

In this section, you may clearly define what type of services your business will offer and how these services will meet the potential client needs.

For example, give a brief description of each service, including employee recruitment, training & development programs, compliance consulting, performance management procedures, and strategic HR planning.

Apart from that, you may highlight pricing strategies, unique methodologies, or potential upselling opportunities(if any).

5. Marketing Strategy

A robust marketing strategy is vital if you want to establish a strong presence in a competitive industry. In fact, it involves the strategies you’ve decided to capture and maintain client interest that can promote business growth.

Your marketing plan should summarize the online and offline methods, sales tactics, or external promotional campaigns you will use to market or advertise your business.

For instance,

• Social media & content marketing to engage potential clients
• Search engine optimization (SEO) to enhance online visibility
• Networking at industry workshops or events to build relationships
• Cold calling, targeted email campaigns, and direct meetings for effective communication
• Loyalty programs or referral incentives to reward existing customers

Furthermore, you can discuss the customer journey from awareness to decision and integrate strategies for customer relationship management & personalized services.

6. Operations Plan

The operations plan outlines the day-to-day operations and activities required for smooth business functioning.

For an HR consulting company, you should describe your business operational details such as staffing needs, office layout, equipment & technology used, client engagement processes, and service delivery strategies.

Overall, a well-developed operations plan will not only help you draft how HR consulting services will be delivered but also ensure that your business operations are streamlined and effective.

7. Management Team

As the name suggests, you will introduce your management team in this section. And strong management is essential for your HR consultancy’s ultimate success.

You should provide a resume-styled summary or bios of the founder(s), key executives, the general manager, and the rest of the management team members, detailing their roles & responsibilities, experience, qualifications, and skills.

Also, explain how each member fits their role and how their expertise contributes to your business growth. Consider adding an organizational chart that shows your company’s hierarchical structure.

If applicable, you can mention details about compensation plans and any external support systems like advisory board members or consultants.

8. Financial Projections

To launch a successful business, you’ll need to craft a strong financial plan, along with realistic financial projections. This will help you map out the financial viability and sustainability of your business.

Generally, it covers several critical statements and financial reports for the next three to five years of operation, including detailed startup costs, financial needs, revenue forecasts, projected cash flow, profit & loss statements, and balance sheets.

Likewise, this section provides a break-even analysis, financial ratios, scenario analysis, and other metrics required for demonstrating your HR consultancy company’s financial health to potential investors or lenders.

9. Appendix

In the appendix section , you may attach any additional information or supporting documents that don’t fit into specific sections but support your plan. It includes

• Resumes of key personnel
• Market research data
• Legal documents
• Client contracts and testimonials
• Partnership agreements

Readers might use these documents or attachments for their reference as they provide additional depth to the information presented in the main text.

Download a Sample HR Consultancy Business Plan

Need a sample business plan to start drafting your plan? Well, here you go; download our free HR consultancy business plan pdf and get started now.

This advanced business plan template has been specifically designed for HR consulting businesses. With step-by-step instructions and examples, it assists you in developing your own plan. Simply import data into your editor and use it as a reference!

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start Creating Your Business Plan with AI

Drafting a comprehensive business plan from scratch can be a daunting and intimidating task, right? But not to worry; Upmetrics could be a great help here!

It is a modern AI business plan generator that supports small business owners and new-age entrepreneurs to create investment-ready plans in minutes.

With its easy-to-follow guides, 400+ sample business plans, and financial forecasting software, Upmetrics will make the entire business plan writing process a lot easier for you.

So, wait no longer; start planning now !

Related Posts

IT Consulting Business Plan

Staffing Agency Business Plan

Operation Plan Writing Guide

Guide to Writing a Business Plan

Frequently Asked Questions

What are the essential financial projections i need in my hr consultancy business plan.

Following are some of the essential financial projections that you should include in your HR consultancy business plan:

• Startup costs
• Sales and revenue forecasts
• Profit and loss statement
• Cash flow projections
• Balance sheet
• Break-even analysis

How do I find and secure funding for my HR consultancy business?

If you want to find and secure funding for your HR consultancy business, consider these options:

• Self-funding
• Small business grants
• Angel investors
• Venture capital

While seeking funding, you’ll need to create an effective business plan backed by detailed financial documents. This will improve your chances of getting the expected capital.

What market analysis is necessary for an HR consultancy business plan?

While writing an HR consultancy business plan, you’ll need to conduct a thorough market analysis and focus on the following key areas:

• Explore HR consultancy industry size, trends, and growth rate
• Analyze and define the target market
• Assess the specific needs of potential clients
• Identify the top competitors and differentiate services
• Understand the legal and regulatory requirements

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

• HR Most Influential
• HR Excellence Awards
• Advertising

Search menu

Gary Tomlinson

View articles

How to create an HR business plan that delivers

The word strategy comes from the Greek 'strategos' meaning generalship. In Greek mythology Athena the goddess of warfare and strategy is a guide leading people in the right direction.

The essence of strategy then is to provide a plan of direction to achieve the longer-term aims of the organisation.

So where does the new HRD begin with developing her HR strategy?

HR can help deliver better business performance

Five top tips for HR professionals

What do innovative HRDs have in common?

Step one: understanding the business

She must first know the terrain, resources, and current barriers if she is to develop a sustainable plan. Knowing the business as ever is key.

Sun Tzu in the Art of War , written 2,000 years ago, stated: "He will win who knows when to fight and when not to fight". The maxim encapsulating a profound lesson; before any action first know organisational strengths and weaknesses .

The HRD needs to look at all the data at their fingertips and that currently beyond her fingertips. This includes assessing factors such as workforce demographics, skills gaps, and employee engagement levels, plus big data insights or even simple coffee break chats- anything that tells them about the state the organisation is in.

For more clarity, a SWOT (strengths, weaknesses, opportunities and threats) analysis can provide structure and priority to the plethora of business data generated. The analysis should consider both internal and external factors such as the current workforce, organisational culture, market trends, and competition.

Step two: defining HR objectives

Dave Ulrich describes the purpose of strategic HR as being to turn business strategy into HR plans.

It does this by addressing the fundamental question: what are the major business goals HR must support?

To ensure alignment between HR plans and business objectives, it is important to involve key stakeholders in the planning process. Investing the time to conduct those discussions one-to-one will pay big dividends.

An appreciative nod here to McKinsey which refers to this approach as 'pre-wiring' i.e., conducting individual discussions before the group meeting to gain buy-in.

Providing the twin value of insights from the senior team and reducing the risk of adverse reactions later when presenting to the board.

Thereby (hopefully) avoiding hearing those pejorative words 'it’s an HR initiative'.

Step three: HR strategy

Between understanding the business state and agreeing collectively on HR objectives, exists the clear gap for potential improvement and how to achieve it.

So now the HRD can start to develop the strategic interventions to close that gap. These will differ depending on the organisation and the context. The initiatives can be divided into specific projects and resourcing teams to deliver those interventions.

Step four: communicating the 'why' of the strategy

It is also important to communicate the 'why' behind the plan to build support across the organisation. The HRD must articulate the reasons for implementing the plan and its benefits . By helping employees understand how the plan fits into the bigger picture to drive organisational success, she can build buy-in and support at all levels of the organisation.

Step five: implementation and monitoring

The strategy is implemented and now the plan meets reality. The HR plan that delivers must remain flexible at all times to feedback.

Lessons can be applied here from lean start up methodology on the 'minimal viable product' gaining maximum feedback from the least amount of effort.

Being sensitively acute to the feedback from all stakeholders on what is working and what needs a 'little tinkering' (or more) will ensure her plan truly delivers.

Gary Tomlinson is chief learning officer at Pando Training

Further reading

How to create a wellbeing strategy that works for all

Listen now: How to create an outcomes-based culture

Navigating talent management without clear strategies can be an opportunity

How to create a zero-waste office

How to create a diversity strategy that delivers

Stepping up: How to become an effective HR board director

How to create a performance improvement plan fit for hybrid working and Gen Z

How creating a culture that supports time-blindness can benefit your business

Schedule Meeting

iLearn Blog

• 5 Steps To Creating An Effective HR Business Plan

5 steps to creating an effective HR business plan May 3, 2018

5 steps to creating an effective HR business plan

A basic business plan will involve creating goals to start a business, expand an existing business or implement a project, and developing ways to achieve the goals. Human resources generally refers to an internal department that handles the hiring, training and paying of employees. Without adequate staff, in terms of quantity and quality, a business will be unprepared to execute its plan.

Small business owners often face setbacks without a written HR business plan, such as, costly employee turnover, procedural bottlenecks and inconsistent productivity. A HR plan is a practical and tactical tool that can help you determine exactly where you're going and drive your business forward.

Here are five critical steps to creating an effective HR plan for your company:

Assess current hr capacity.

The first step in the human resources planning process is to assess your current staff. Before making any moves to hire new employees for your company, it’s important to understand the talent you already have at your disposal.

Develop a skills inventory for each of your current employees. You can do this in a number of ways, such as asking employees to self-evaluate with a questionnaire, looking over past performance reviews, or using an approach that combines the two.

Have a Succession Plan 

Eventually your business will face changes in management; this is an unavoidable part of the natural growth of any organisation. Managers will come and go and positions will be created and dissolved as you continue to expand and re-organise.

You'll want to be ready for this when it happens by having a succession plan already in place. It will be up to you whether you want to include your employees in the creation of this succession plan or not. Either way, be aware of their career goals and what their plans are for the future - don’t hesitate to inform them when changes are taking place.

By doing this you’ll be aware of what the most important positions in your company are and who may have the skills to fill those positions.

Outline how you will motivate and retain employees

You need the right people to stay on board to take your company further. A HR plan will outline your key strategies to motivate employees and maintain their loyalty.

Being creative with employee perks, rewards and compensation is one of the first steps. For example, your HR plan can clearly address motivational strategies such as profit-sharing or short-term rewards that involve personal or family life, such as entertainment vouchers.

Matching demand and supply

Matching the demand and supply is where the hiring process gets tricky—and where the rest of the human resources management planning process comes into place. You’ll develop a plan to link your organization’s demand for quality staff with the supply available in the market. You can achieve this by training current employees, hiring new employees, or combining the two approaches.

Conduct a Gap Analysis

A gap analysis is a formal study comparing the resources your company currently has to what they may need as they grow and develop in the future. If your HR services are outdated, or in danger of becoming outdated, a gap analysis will reveal this and allow you to make the necessary improvements to keep your company going strong for years to come.

HR planning is an ongoing process. Your strategy should be reviewed regularly and updated as your organisation changes.

Looking for HR management courses to help with your HR business plan? Read about our HR courses and contact us for information on the human resources courses we can offer you.

Find Out More With Our

Course Categories

• Human Resources and Training

Related articles

Our Clients

• Training Courses
• Engineering, Maintenance and Production
• Information Technology (IT)
• Law and Insurance
• Marketing Sales and Customer Services
• Leadership Management
• All Courses
• Project Management

Learning Solution

• About Our Solutions
• In-House Learning
• Short Courses
• Book A Trainer
• Bespoke Learning
• Executive Coaching
• Online Courses
• About London TFE
• Terms and Conditions
• Where We Operate
• Associations
• Privacy Policy
• 2023 Directory

© 2024 London Training for Excellence is a trading name of Laykas Group LTD. Laykas Group LTD is a company registered in England and Wales, Company number 08459761. VAT Registered: GB 197499824 Londontfe is a registered trademark of Laykas Group LTD

Hello. I'm looking for

• conferences

• Conferences

Free Download

Human Resources Consulting Business Plan Template

Download this free human resources consulting business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Create a Business Plan Presentation

How to Start a Business With No Money

How to Write a Business Plan for Investors

How to Write a Business Plan

10 Qualities of a Good Business Plan

Simple Business Plan Outline

Industry Business Planning Guides

Business Plan Template

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Human Resource Management Plan Template [Free Download]

Editorial Team

Download this free Human Resource Management Plan template and use it for your new project. Scroll down to the bottom of the page for the download link.

1          Introduction

Effective human resource management is a critical component of any project.  The Human Resource Plan explains how project processes will be used to make the most effective use of the people assigned to the project.

This section of the Human Resource Plan should provide a general description of what the plan includes and explains how the project manager and project team can use the plan to help manage project resources effectively.

The purpose of the  Human Resource Plan is to achieve project success by ensuring the appropriate human resources with the necessary skills are acquired, resources are trained if any gaps in skills are identified, team building strategies are clearly defined, and team activities are effectively managed. If used effectively, this plan will serve as a tool to aid in the management of human resource activities throughout the  until closure.

This plan includes information regarding the following topics:

• Roles and responsibilities of team members throughout the project
• Project organization charts
• How resources will be acquired
• Timeline for resources/skill sets
• Training required to develop skills
• How performance reviews will be conducted
• Recognition and rewards system

2          Roles and Responsibilities

The roles and responsibilities of team members and stakeholders must be clearly defined in any project.  Depending on the organizational structure, project team members may represent many different groups/departments and may have varying degrees of authority and responsibility.  In these circumstances, it is common for multiple roles to be assigned to the same position.  For this reason, this section is not meant to contain job descriptions, but rather a summary of responsibilities for each role.  When listing roles and responsibilities, the following should be included:

• Role – description of the portion of the project for which the member is accountable
• Description – detail of duties and definition of the roles, as they relate to the project
• Responsibility – the work a team member must perform
• Name – the name of the specific individual holding the project role

2.1                 Project Team Roles and Responsibilities

Listed below are the roles and responsibilities for the  project team:

Senior Project Director

• Plans, directs and oversees the project, and ensures that deliverables and functionality are achieved as defined in the Project Charter, funding documentation, and subsequent project plans
• Maintains accountability for the management of all resources assigned to the project
• Serves as the primary liaison between the project and the Project Sponsor and the Steering Committee

Quality Manager

• Manages both product and process quality activities for the project
• Maintains the requirements management traceability matrix
• Provides insight into project health by reviewing process and product activities for adherence to standards and plans

Technical Lead

• Manages day-to-day activities of technical staff who are engaged in the technical management aspects of the project
• Leads in the technical disciplines of the project, unlike the Senior Project Director and Project Manager who will focus on the overall project management of the project
• Partners with other IT areas to acquire appropriate technical assistance for such areas as enterprise architecture, database, software development, security, testing, configuration management, change management , release management, and other technical areas of the new system
• Provides leadership and support to technical staff that are augmented to the project throughout the project life cycle
• Provides technical support to the Senior Project Director, Project Manager, and to Enterprise Architecture to establish and execute technical policies, processes, and procedures 

   Implementation Lead

• Manages for the implementation portion of the project
• Provides implementation management leadership through planning, organizing, coordinating, and monitoring implementation activities
• Effectively manages all information technology resources assigned by the project manager
• Interfaces directly with contractors to ensure technical obligations satisfy all objectives and expectations

Application Support Lead

• Oversees and coordinates the change request process for installed software and for ensuring the change requests adhere to specified quality and configuration standards
• Manages application design sessions and walkthroughs, application change management processes and acceptance testing of application changes
• Monitors consultant performance of application support and ensures that the consultant maintains quality control
• Coordinates the testing of the new system
• Works with the Quality Management staff to design test cases and data that will best represent “real-life” scenarios for the system
• Coordinates interface tests with other organizations (county, state, federal) as needed
• Plans, monitors, and evaluates consultant and agency test plans, problem reporting, and resolution process

Configuration Lead

• Supports the Technical Lead by administering the Configuration Management process
• Coordinates the control of all non-product related configuration items
• Manages and coordinates the product related configuration items
• Conducts configuration audits
• Works with Change and Release Management teams for approval to release programs and configuration modifications into the production environment

Operations Lead

• Coordinates and oversees the operations of the new system
• Monitors contractor management of operations and resolution of operations support problems

2.2                 Project Stakeholders Roles & Responsibilities

Listed below are the roles and responsibilities for the  project stakeholders:

Project Sponsor

• Provides vision, direction, and policy leadership for the project
• Assists in removing barriers and supports change management initiatives
• Participates in the Steering Committee, and provides support to this group as needed
• Has overall authority for the project 
• Responsible for ensuring that deliverables and functionality are achieved as defined in the Project Charter and subsequent project plans

Steering Committee

• Acts as the Project stakeholders group
• Ensures that the deliverables and functionality of the project are achieved as defined in the project initiation documents and subsequent project management plans
• Provides high-level project direction, receives project status updates, and addresses and resolves issues, risks, or change requests

Independent Verification and Validation (IV&V)

• Provides independent, technical review and verification of project deliverables, as well as independent testing and auditing of project deliverables against requirements
• Performs deliverable quality assurance and information security control reviews

Department of Finance & Administration Representative

• Provides oversight and approval of funding for state planned IT projects

3          Project Organizational Charts

This section should provide a graphic display of the project tasks and team members.  The purpose of this information is to illustrate the reporting structure and responsibilities of team members as they relate to the project tasks. 

Tools such as the Responsible/Accountable/Consulted/Informed (RACI) matrix or Responsibility Assignment Matrix (RAM) may be used to aid in communicating roles and responsibilities for the project team.  Additionally, organizational or resource breakdown structures may be used to show how responsibilities are assigned by department or by type of resource respectively.  The level of detail may vary depending on project complexity.

The graphic below provides a representation of the reporting structure for .

Table 1: Reporting structure

The following RACI chart shows the relationship between project tasks and team members.  Any proposed changes to project responsibilities must be reviewed and approved by the Project Manager.  Changes will be proposed in accordance with the project’s change control process.  As changes are made, all project documents will be updated and redistributed accordingly.

Table 2: RACI chart

R – Responsible for completing the work

A – Accountable for ensuring task completion/sign off

C – Consulted before any decisions are made

I – Informed of when an action/decision has been made

4          Staffing Management

Staffing management relates to all of the reasons staffing is needed, timing of adding and releasing staff as well as training and gap assessment of current staff.  This section should contain samples of the following: how human resources will be acquired; the timeline for resource additions and releases; training solutions for any resources with identified skill gaps; how performance reviews will be performed; rewards and recognition systems to be used.  It is important to note that, depending on the scope of the project, there may be other circumstances to consider such as government and/or regulatory compliance issues, organizational health and safety, etc. 

Day-to-day management of the project staff for  is the responsibility of the Senior Project Director and designated functional managers.  Performance evaluations, performance issues and recognition, promotions, and disciplinary actions are the responsibility of the state staff respective organizational chain of command.

Staff Acquisition

The Senior Project Director, with support from the Executive Sponsor, will negotiate with functional and department managers to identify and assign resources in accordance with the project organizational structure approved in the project charter.  This plan shall also identify various external sourcing mechanisms to hire new project resources.  All resources and their anticipated project assignment timeframe must be approved by the appropriate functional/department manager before the resource may begin any project work.  The project team must be co-located at the  site.

Resource Calendars 

The  Project will last for {insert timeline}.  The chart below provides an estimate of the number of resources required per month for the project.

Figure 1: Resource calendar

Vendor/State Partnering Approach

For  the team will implement a model in which the agency project team is expected to work side by side with the vendor to deliver the project.  This partnership will facilitate the training & knowledge transfer process to prepare the agency project team to operationalize and own the solution after the solution implementation. 

Though vendors are important and are used to implement project products, the State has responsibility for overall review and approval for work produced by vendors.  Additionally, knowledge transfer of vendor expertise to State staff is required on all projects throughout the project lifecycle, rather than waiting to transition information at the end of a project.

5          Project Team Training

This section should highlight training needs specific to this project, and should include a high-level project team training plan.  If applicable, this section may also include information such as training topics and delivery mechanisms, schedule, cost, expectations, etc.

Staff Training

When new staff joins the project, the Senior Project Director (or delegated project staff) will provide a project orientation.  The orientation should include discussions related to the following topics:

• Background of the Project
• Current Status of the Project
• Specific Job Duties and Expectations
• Introduction to the Staff and Consultants
• Overview of the Facility and Infrastructure
• Overview of the Project Processes, including time reporting, attendance, and status meetings

Performance Reviews

The functional manager will review each team member’s assigned work activities at the onset of the project and communicate all expectations of work to be performed.  The functional manager will then evaluate each team member throughout the project to evaluate their performance and how effectively they are completing their assigned work. Prior to releasing project resources, the project manager will meet with the appropriate functional manager and provide feedback on employee project performance. The functional managers will then perform a formal performance review on each team member.

Recognition and Rewards

Although the scope of this project does not allow for monetary rewards, there are several planned recognition and reward items for project team members.  The Senior Project Director will work with appropriate agency executive staff to identify potential opportunities and tools for creative recognition and rewards.

Suggested Rewards:

• Upon successful completion of the Project, celebration of the success of each team member
• Upon successful completion of the project, any team member who satisfactorily completed all assigned work packages on time will receive a certificate of thanks from the Executive Sponsor
• Team members who successfully complete all of their assigned tasks will have their photo taken for inclusion in the company newsletter

Click  here  to download Human Resource Management Plan template.

• Project Proposal Template [Free Download]
• Requirements Management Plan Template [Free Download]
• System Design Document Template [Free Download]
• Sample Anti Virus Policy [Free Download]

© 2024 Copyright ProjectPractical.com

Access to 13 certificate programs,
courses and all future releases

Personal Coaching and Career Guidance

Community and live events

Resource and template library

• 11 Successful HR Strategy Examples...

11 Successful HR Strategy Examples To Consider for 2024

What is an HR strategy?

• A thorough analysis of both the organization and its external surroundings
• The ability to allocate vital organizational resources such as finances, time, and personnel effectively
•  It’s numbers-driven and built on data-driven insights
• It’s subject to annual revisions
• It incorporates the insights and expertise of senior HR management
• It relies on and ultimately drives specific behaviors
• It’s a roadmap for how a business intends to manage its workforce.

7 Steps to creating an HR strategy

11 Successful HR strategy examples

Key HR actions Actions that Google’s HR team took include: Predictive modeling to address future people management challenges and opportunities Effective hiring algorithms to predict candidate success Using data to enhance workforce planning in a growing and changing firm.

2. Salesforce

Key HR actions Actions that the Salesforce HR team took include: Emphasizing family and community to employees, customers, and partners Linking the idea of Ohana with Salesforce’s core values Encouraging teamwork and support for employees’ well-being and engaging in philanthropic activities to strengthen the sense of togetherness.

Key HR actions Actively promoting and reinforcing alignment between mission and culture, making it a central part of the company’s identity Encouraging employees to identify and maximize their strengths  Supporting employees’ personal lives by helping them manage their responsibilities both inside and outside of work.

Key HR actions Strong emphasis on talent development and motivation, including skill enhancement, career growth, and personal development A geocentric approach ensures that the right talent is in the right place to drive efficient international operations A commitment to CSR by investing in education, community improvement, and promoting gender diversity within its workforce to grow its reputation as a socially responsible organization.

5. Microsoft

Key HR actions Clear alignment with core values provides a strong foundation for cultural change Authentic leadership to inspire and guide employees Technology to accelerate cultural change, monitor progress, and help employees to adapt to the evolving culture.

Key HR actions Hiring and retaining top-tier talent, even during challenging periods Emphasizing performance over seniority to create an agile workforce aligned with Netflix’s evolving needs Adopting a flexible holiday policy, allowing employees to take as much time off as they want.

7. Johnson & Johnson

Key HR actions Investing in leadership development programs, recognizing the pivotal role of strong leadership in the company’s success Creating a culture of inclusion and diversity where all employees feel valued and respected Ensuring that employees can maintain a healthy work-life balance and overall wellbeing. This commitment to employee welfare contributes to a motivated and engaged workforce.

Key HR actions Implementing a philosophy that promotes a culture of continuous improvement among the workforce Selecting top-tier talent and empowering them to improve their skills continually Granting leaders the autonomy to build their teams and maintaining transparent salary scales.

 Key HR actions Instilling a culture of exceptional discipline throughout the organization Providing training and skill development opportunities for employees Prioritizing data and discipline over emotion to ensure efficient decision-making.

10. Marks & Spencer

Key HR actions Prioritizing communication and actively involving employees in decision-making processes Maintaining positive employee relations and treating the workforce with respect Ensuring that employees are well-informed and engaged in the company’s operations.

11. Mayo Clinic

Key HR actions Compensation to attract outstanding talent Promoting teamwork that contributes to the organization’s success Instilling trust and confidence among employees to create a positive and supportive work environment.

Key takeaways

Monique Verduyn

Related articles.

HR SOP Template & Guide for HR Leaders

HR Technology Strategy: How HR Leaders Can Succeed

When To Implement an HRBP Model: 5 Signs You’re Ready 

New articles.

CEO Succession Planning: Your 2024 Comprehensive Guide (+Free Template)

33 Interview Questions for Diversity and Inclusion Managers

27 Key Drivers of Employee Engagement To Benefit Your Workforce 

Subscribe to our weekly newsletter, are you ready for the future of hr.

Learn modern and relevant HR skills, online

Strategic Human Resource Management (2024 Guide)

Updated: Jun 8, 2024, 9:04am

Table of Contents

What is strategic human resources, why strategic human resources is important, 5 steps to strategic human resources, bottom line, frequently asked questions (faqs).

Strategic human resource management (SHRM) is a process that organizations use to manage their employees. It is a way to ensure that the organization’s HR are used in a way that supports the organization’s goals. Think of it as a bridge connecting human resources and the goals of the company. With SHRM, businesses can more effectively manage employee performance and development, as well as create programs and policies that support the company’s overall strategy.

Featured Partners

$40 per month + $6 per user

On OnPay's Website

SurePayroll

$29.99/mo plus $5 per employee

On SurePayroll's Website

$40 per month plus $6 per user

On Gusto's Website

$35/month plus $8 PEPM

On Rippling's Website

$50/month + $8/user

On Justworks' Website

The goal of SHRM is to create policies and programs that align with the company’s business strategy. The main difference between human resources and strategic human resources is that human resources focus on the day-to-day management of employees, while strategic human resources focus on how employees can achieve the company’s overall goals. This means that SHRM must first understand the company’s business goals and then create programs and policies that support those goals.

Some common examples of SHRM programs and policies include:

• Performance management: Creating systems to track and improve employee performance
• Training and development: Identifying employees’ development needs and providing training and resources to help them improve
• Compensation and benefits: Designing compensation and benefits programs that attract and retain employees
• Employee relations: Managing employee relations to create a positive work environment

These are just a few examples of the types of programs and policies that can be part of SHRM. The specific programs and policies will vary depending on the company’s goals and the needs of its employees.

SHRM is important because it helps businesses achieve their goals. By aligning HR programs and policies with the company’s business strategy, SHRM can help businesses improve employee performance, develop the workforce and create a positive work environment. SHRM can also help businesses save money by reducing turnover and improving productivity.

• Improve employee performance: SHRM can help businesses improve employee performance by creating systems to track and improve performance.
• Develop the workforce: SHRM can help businesses develop the workforce by identifying employees’ development needs and providing training and resources to help them improve.
• Create a positive work environment: SHRM can help businesses create a positive work environment by managing employee relations.
• Reduce turnover: SHRM can help businesses reduce turnover by designing compensation and benefits programs that attract and retain employees.
• Improve productivity: SHRM can help businesses improve productivity by improving employee performance and creating a positive work environment.

Now that you know what SHRM is and why it’s important, you may wonder how to get started. The process involves knowing the goals of your company, its abilities, future needs and resources. From there, you put your plan into action, then reassess and pivot if necessary.

Here are the five steps to strategic human resources plan:

1. Know your company’s goals and abilities

The first step to SHRM is understanding your company’s goals and abilities. When you know your company goals and can articulate them, you’ll have an easier time creating programs and policies that support those goals. You’ll also be able to more effectively measure the success of your SHRM programs and make changes as needed.

Consider the following questions:

• What are your company’s long-term goals?
• What are your company’s strengths and weaknesses?
• What resources does your company have now?
• What skills does your workforce currently have?
• Are there any gaps in talent or skills?

Answering these questions will help you understand your company’s goals and abilities, and how SHRM can help you achieve those goals.

2. Forecast future needs

Now that you have an idea of your company’s goals and abilities, you need to forecast future needs. In order to ensure your company’s future success, you need to predict how many employees with the required skills will be necessary and measure it against your company’s current workforce. This will help you determine what skills your company will need in the future and how to develop those skills in your workforce.

• What skills will your company need in the future?
• How many employees with those skills will you need?
• How does that compare to your current workforce?

By answering these questions, you will be able to comprehend what abilities your company will need in the future and how to cultivate a workforce with those required skills.

3. Determine the resources needed to achieve company goals

After you know your company’s goals and have forecasted future needs, you need to determine the resources needed to achieve those goals. This includes identifying the financial resources, human resources and physical resources required.

• What financial resources will you need to achieve your company’s goals?
• What human resources will you need to achieve your company’s goals?
• What physical resources will you need to achieve your company’s goals?

To determine these, you’ve got to conduct an audit of both your internal and external resources. This will give you a sense of what types of resources you have available to achieve your goals and where you may need to supplement.

For example, if you’re looking to expand your workforce, you may need to invest in recruiting programs. Or, after conducting a needs assessment, you may find that your current workforce doesn’t have the necessary skills to achieve your company’s goals, so you’ll need to invest in training programs.

Another example is if you’re looking to launch a new product. In this case, you’ll need to consider the financial resources required to develop and market the product, as well as the physical resources required to produce it. You’ve also got to consider talent and skill set when launching a new product. Do you have the right people in place to bring your product to market? And do they have the necessary skills to do so?

4. Execute your plan

Now that you’ve set your company’s goals, forecasted its future needs and gathered the resources required to achieve those goals, it’s time to put your SHRM plan into action. Most companies start by recruiting the right candidates, training and development and then performance management. However, this will vary depending on your company’s specific needs.

If you already have a large talent pool to choose from, you may be better off cultivating skills of current employees before recruiting outside talent. After you’ve satisfied that resource, you may find you still need to hire. If so, you’ll need to have clear expectations and skill requirements before recruiting.

Once you’ve hired talent, it’s imperative to have a proper onboarding process. This will help ensure that your new hires are set up for success and understand what’s expected of them. After you’ve brought new talent into the fold, you need to focus on development. This includes training programs as well as opportunities for professional growth. By offering these opportunities, you’ll be able to retain top talent and keep them engaged in their work.

Last but not least is performance management. This includes setting clear expectations, providing feedback and conducting performance reviews. Performance management is a key part of SHRM as it helps ensure that your workforce is meeting expectations and contributing to your company’s bottom line.

Here are a few things to keep in mind when executing your SHRM plan:

• Set realistic goals and timelines. Trying to accomplish too much in a short period of time can be overwhelming and lead to mistakes.
• Get buy-in from upper management. If those at the top aren’t on board with your SHRM plan, it’s going to be difficult to get everyone else on board.
• Communicate with your employees. Employees should be aware of the goals of the SHRM plan and how it will affect them. This will help get them on board and ensure that they’re working towards the same goals.
• Be prepared to adjust your plan. As with any plan, things may not go as expected. Be prepared to make adjustments to ensure that you’re still on track to achieve your company’s goals. We’ll discuss this in detail in the next section.

5. Assess and pivot

After you’ve executed your SHRM plan, it’s important to assess how things are going. This includes looking at what’s working and what’s not. Based on your assessment, you may need to make adjustments to your plan. For example, if you’re not seeing the results you want, you may need to change your recruiting strategy. Or, if you’re finding that your training programs aren’t effective, you may need to make changes to those as well.

It’s also important to keep in mind that your SHRM plan is not a one-time thing. As your company grows and changes, so too will your SHRM needs. As such, it’s important to revisit your SHRM plan on a regular basis to ensure that it’s still relevant and effective.

Strategic human resource management is a process that helps companies achieve their goals by better managing their workforce. By taking the time to develop a SHRM plan, companies can ensure that they have the right people in place to achieve their goals. While developing a SHRM plan can be time-consuming, the benefits outweigh the costs. Not only will a well-executed SHRM plan help you achieve your company’s goals, but it will also help you retain top talent and keep your employees engaged in their work.

What is strategic human resource management (SHRM)?

Strategic human resource management is a process that helps companies manage their workforce in a way that aligns with their company’s goals.

Why is SHRM important?

SHRM is important because it helps companies ensure that they have the right people in place to achieve their company’s goals. Additionally, SHRM can help companies retain top talent and keep their employees engaged in their work.

What's the difference between human resources and strategic human resource management?

The difference between human resources and strategic human resource management is that human resources focuses on the day-to-day management of employees while SHRM takes a more strategic approach.

• Best HR Software
• Best HCM Software
• Best HRIS Systems
• Best Employee Management Software
• Best Onboarding Software
• Best Talent Management Software
• Best HR Outsourcing Services
• Best Workforce Management Software
• Best Time And Attendance Software
• Best Employee Scheduling Software
• Best Employee Time Tracking Apps
• Best Free Time Tracking Apps
• Best Employee Training Software
• Best Employee Monitoring Software
• Best Enterprise Learning Management Systems
• Best Time Clock Software
• Best ERP Systems
• Zenefits Review
• Oracle HCM Review
• UKG Pro Review
• IntelliHR Review
• ADP Workforce Now Review
• ADP TotalSource Review
• SuccessFactors Review
• Connecteam Review
• What is Human Resources?
• Employee Benefits Guide
• What is Workforce Management?
• What is a PEO?
• What is Human Capital Management?
• HR Compliance Guide
• Onboarding Checklist
• Benefits Administration Guide
• What Is Employee Training?
• Employee Development Plan
• 30-60-90 Day Plan Guide
• How To Calculate Overtime
• What Is Outplacement?
• New Hire Orientation Checklist
• HR Analytics Guide

Next Up In Business

• Justworks Pricing
• Calendly Review
• 10 Management Styles Of Effective Leaders
• Contact Center Workforce Management
• What Is A Background Check?
• What Is Lattice Software?

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.