A well-executed hiring plan can be the difference between a company that reaches its strategic business goals and one that is outperformed by its rivals.
Just ask Marc Benioff, co-founder and CEO of tech giant Salesforce. “Acquiring the right talent is the most important key to growth,” says Benioff. “Hiring was – and still is – the most important thing we do.” And he should know. Having launched the business in 1999 from a one-bedroom apartment, Salesforce is now a juggernaut boasting best-in-class software for eleven straight years and a team of over 80,000 employees.
What’s the key to acquiring the right talent? It’s about so much more than simply filling vacancies. It’s strategically acquiring talent to fuel growth, innovation, and competitive advantage – and it all begins with a strategic hiring plan.
Contents
What is a hiring plan?
HR’s role in the hiring plan process
How to forecast hiring needs for the next year in 7 steps
Factors to consider when building a strategic recruiting plan
Startup hiring plan vs. established company hiring plan
How to create a hiring plan: best practices
Aligning hiring plans with company growth goals
Hiring plan example: AccounTech
What is a hiring plan?
A hiring plan is a detailed strategy that outlines your company’s recruitment needs for a specific period of time, typically one year. This plan helps ensure that your recruitment process is aligned with your company’s growth aspirations so it can meet its staffing needs. An effective hiring plan should include the following:
- The number of positions that need to be filled, factoring in new positions and replacements for employees leaving the company
- The timeline for when those positions should be filled to ensure your company has the right people in place to meet its business goals
- The specific skills and qualifications required for each role to help you attract the best candidates for each position
- The budget allocated for the recruitment process. This includes the hard costs of advertising job openings, paying recruitment agency fees, and the soft costs associated with administration, interviewing candidates, and onboarding new hires.
HR’s role in the hiring plan process
Human Resources is essential to any hiring strategy. HR professionals perform various roles, from identifying workforce needs to overseeing the recruitment process.
This means HR can greatly influence the success of a hiring plan and contribute to the overall growth and success of your company by effectively carrying out these responsibilities:
- Identifying workforce needs: For starters, work closely with division heads and executives of all company departments to identify current and future talent gaps. By analyzing workforce data and understanding the business’s specific objectives, HR can accurately determine the types of talent required to achieve strategic goals.
- Defining job descriptions and requirements: Crafting clear role scopes and job descriptions is crucial for attracting the right candidates. Ensure these descriptions capture the necessary skills, experience, and qualifications needed for each role.
- Managing recruitment budgets: HR is also responsible for allocating and managing recruitment budgets effectively. This involves making strategic decisions and trade-offs about where to invest resources for the best return, such as advertising, recruitment agency fees, and employee referral bonuses.
- Building your employer brand: You play a significant role in shaping your company’s employer brand. By creating a strong and positive employer brand, you can entice top talent and reduce time to hire.
- Ensuring legal compliance: Ensure all recruitment activities remain up-to-date with labor laws at the state and federal levels. This should ensure fair and equitable hiring processes and avoid any discriminatory practices.
- KPIs and performance management: You also play an essential role in setting key performance indicators (KPIs) for the hiring process, such as time to fill, cost per hire, and quality of hire. By tracking these metrics, you can identify weaker areas for improvement to optimize your hiring process.
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How to forecast hiring needs for the next year in 7 steps
The success of any plan relies on the accuracy of its underlying assumptions, and hiring plans are no different. By correctly forecasting your future talent requirements, you can take proactive steps to recruit top talent, allocate resources efficiently, and ensure business continuity and growth.
Here’s how you can help:
Step 1. Consult with department heads
It’s virtually impossible to forecast your organization’s hiring needs without consulting widely with department heads. Only once you have a firm grasp on their strategic goals, expansion plans, and potential challenges can you pinpoint areas where additional staffing may be required.
Maintaining ongoing communication and collaboration with division heads will also help ensure that your hiring plans remain on track and aligned with business objectives.
Step 2. Leverage data analytics
Company data is another essential source of information for forecasting hiring needs.
By analyzing your historical hiring trends, turnover rates, and workforce demographics, you’ll be better equipped to identify patterns and predict future requirements. For instance, if a particular department has experienced high turnover in the past, HR can use this data to anticipate the need for additional hiring in that area.
Step 3. Align with business growth projections
Understanding your organization’s growth projections is a key factor in forecasting hiring needs.
If your company is experiencing rapid growth, HR will likely need to increase hiring to support this expansion. Conversely, if your business or industry is facing economic uncertainty or a slowdown, you’ll need to adjust your hiring plans accordingly.
Step 4. Plan for employee turnover
Employee turnover is a natural part of any business cycle. By analyzing historical turnover rates, identifying factors that contribute to turnover, and conducting stay interviews, HR can proactively anticipate future departures and plan for replacements.
Step 5. Consider the impact of tech advancements
Technological advancements, such as automation, artificial intelligence (AI), and other emerging technologies, can significantly alter workforce needs and require hiring for new skills and expertise.
Keep informed about general and industry-specific technological trends and their potential impact on your workforce.
Step 6. Assess skill gaps
Conducting skills gap analyses can help you identify areas where employees lack the relevant skills and knowledge they need to perform their roles effectively.
The analysis will also help to inform your future hiring decisions and training initiatives for existing staff.
Step 7. Incorporate succession planning
Be proactive about identifying and developing high-potential employees to fill key leadership positions. In considering succession planning needs, you can forecast these future hiring requirements and ensure smooth leadership transitions.
HR tip
Does your hiring plan account for the unexpected?
Consider various scenarios to ensure your hiring plan is adaptable. For example, an economic downturn could mean that a hiring freeze is necessary. Similarly, if the business’s strategic goal is to grow rapidly, then accelerated recruitment may be needed. By anticipating potential shifts, you can proactively build different strategies based on various scenarios. For example, you could pre-screen candidates for future needs or build a flexible budget to accommodate unexpected opportunities.
Factors to consider when building a strategic recruiting plan
A strategic hiring plan is key to successful talent acquisition. To ensure effectiveness, HR leaders should consider these six factors:
Company objectives
Does your hiring plan align with your company’s long-term goals? Are you planning a major product launch, market expansion, or scaling operations in the coming year?
These initiatives should guide your recruitment needs and the types of talent you seek. Avoid over-recruiting or under-recruiting to prevent unnecessary costs or challenges. Regular workforce planning helps maintain balance.
Budget constraints
Is your recruitment plan budget realistic?
Consider job posting costs, agency fees, referral bonuses, and ATS expenses. A clear budget helps prioritize efforts and allocate resources effectively. Invest in quality recruitment tools and technologies to improve efficiency and reduce long-term costs.
Labor market conditions
Understanding the labor market is crucial. Facing a talent shortage or high-demand skills?
Analyze labor market trends to adjust your recruitment strategy and attract top talent. Consider partnering with educational institutions to build a talent pipeline or hiring remote employees to fill skill gaps.
Technology
Are you using technology to streamline recruitment?
Applicant tracking systems help manage job postings, screen resumes, and schedule interviews. AI tools can automate tasks like resume screening and scheduling, reducing time to hire and improving efficiency. However, they must involve human judgment to ensure fairness and avoid biases.
Diversity and Inclusion
Are your recruitment practices equitable?
Actively seek candidates from diverse backgrounds. A diverse workforce brings varied perspectives and skills. Implement unconscious bias training for hiring managers and use blind hiring to ensure fair decisions.
Legal compliance
Is your company up-to-date with employment laws?
Review and update recruitment policies regularly to avoid legal issues. Consult legal counsel to ensure compliance with relevant laws, especially when hiring in multiple areas.
Startup hiring plan vs. established company hiring plan
How to create a hiring plan: Best practices
Creating your own hiring plan need not be complex; just follow these steps:
1. Assess your organizational needs
The first step in building a hiring plan is assessing your current workforce and identifying the positions that need to be filled in the short, medium, and long term. This involves:
- Conducting a workforce analysis: Look at your current employees to determine gaps in skills or experience.
- Consulting with leadership and department heads: Meet with senior management and team leaders to understand their upcoming projects, staff expansion needs, and the roles necessary to support those initiatives.
- Considering growth projections: Collaborate with finance or business development teams to assess company growth forecasts. If your company is aiming to expand into new regions, product lines, or markets, you’ll need to plan for hiring staff who can support that growth.
HR’s role
HR is responsible for gathering and analyzing workforce data and coordinating with department heads to assess staffing needs. This includes:
- Compiling reports on current headcount, turnover rates, and future staffing needs
- Conducting skills gaps analyses
- Providing workforce analytics to leadership.
Strategic questions to ask
- What roles are critical for achieving the company’s strategic goals?
- Which departments are experiencing the most growth or strain due to understaffing?
- Are there internal candidates who can be promoted or retrained to fill upcoming roles?
- What is the projected headcount needed for the next 12 months?
- Should we consider a mix of full-time, part-time, and contract employment types to match evolving growth needs?
2. Define HR roles and responsibilities
Once you’ve identified your hiring needs, it’s crucial to define the specific roles within your HR team that will be responsible for executing the hiring plan. This might include:
- HR Business Partner: This role works closely with department heads to understand their talent needs and provide strategic HR advice. They will play a key role in aligning hiring initiatives with the company’s overall business objectives.
- HR recruitment specialist: This role focuses specifically on talent acquisition, sourcing candidates, conducting interviews, and managing the hiring process. They will be responsible for attracting top talent and filling vacancies efficiently.
- HR day-to-day execution lead: This HR Generalist role oversees a wide range of HR functions, including recruitment, onboarding, and employee relations. They will be instrumental in implementing the hiring plan day to day.
HR’s role
- Assign HR team members to key roles to support your recruitment requirements and the implementation of your hiring plan
- Define the specific needs and expectations for each HR role.
Strategic questions to ask
- Have we allocated our HR team members effectively to execute the hiring plan?
- Do we have sufficient HR resources to execute the plan within the stipulated timeframes?
3. Develop job descriptions
Clear and concise job descriptions are essential for attracting qualified candidates who match the role requirements. When creating job descriptions, consider the following:
- Core responsibilities: Clearly outline the primary duties and responsibilities of the position.
- Required skills and experience: Specify the qualifications, certifications, and technical skills.
- Desired skills and experience: List any additional skills or experience that would be beneficial but not strictly required.
- Cultural fit: Highlight the company’s values and work culture to attract candidates who align with the organization’s mission and vision.
HR’s role
- Build a powerful employer brand that resonates with top talent in your industry to differentiate you from your competitors
- Write compelling job descriptions that highlight the unique selling points of the role and the company
- Incorporate relevant keywords to optimize job postings for search engines and applicant tracking systems
- Regularly review and update job descriptions to reflect changing job requirements and industry trends.
Strategic questions to ask
- How is our employer brand perceived by ideal candidates?
- How can we improve our job descriptions to attract top talent?
- How can we use multimedia to enhance our job postings?
- What are the most effective channels for distributing job ads?
- How can we measure the effectiveness of our job postings?
4. Determine recruitment strategies
To attract top talent, you’ll need to implement a multi-faceted recruitment strategy. Consider the following approaches:
- Job boards: Post job openings on popular job boards to reach a wide audience.
- Social media: Utilize social media platforms like LinkedIn to connect with passive candidates and build your employer brand.
- Recruitment agencies: Partner with recruitment agencies to source specialized talent or expedite the hiring process.
- Employee referrals: Incentivize current employees to refer qualified candidates.
- Campus recruitment: Target recent graduates and interns from universities and colleges.
HR’s role
- Develop a schedule for each stage of the hiring process, including sourcing, screening, interviewing, and onboarding.
- Set realistic, achievable deadlines for each step to ensure a timely hiring process.
- Regularly track progress against the timeline and make adjustments as needed.
Strategic questions to ask
- What are the most effective recruitment channels for our target audience?
- How can we leverage social media to attract passive candidates?
- How can we measure the effectiveness of our recruitment strategies?
5. Establish a hiring timeline
A well-defined hiring timeline will help you track progress and ensure your positions are filled efficiently and within deadlines. Key milestones to consider include:
- Job posting: Determine the optimal posting duration and target audience.
- Screening resumes: Establish a timeline for reviewing resumes and shortlisting candidates.
- Scheduling interviews: Coordinate interviews with hiring managers and potential candidates.
- Making offers: Set a deadline for extending offers to selected candidates.
- Onboarding: Plan the onboarding process, including paperwork, orientation, and training.
HR’s role
- Develop a schedule for each stage of the hiring process, including sourcing, screening, interviewing, and onboarding.
- Set realistic, achievable deadlines for each step to ensure a timely hiring process.
- Regularly track progress against the timeline and make adjustments as needed.
Strategic questions to ask
- What are the critical milestones in the hiring process?
- How can we expedite the hiring process without compromising the quality of hires?
6. Allocate budget
You’ll need to allocate a sufficient budget to execute your hiring plan effectively. Consider the following costs:
- Job posting fees: Fees associated with posting jobs on job boards and other recruitment platforms.
- Recruitment agency fees: Costs incurred when using recruitment agencies to source talent.
- Background checks: Fees for conducting background checks on potential hires.
- Onboarding costs: Expenses related to onboarding new hires, such as training materials and equipment.
HR’s role
- Allocate a budget for recruitment expenses, including job postings, agency fees, and travel costs if applicable.
- Prioritize your hiring based on the highest-impact roles on the business and allocate resources accordingly.
- Regularly monitor your spending and make adjustments as needed.
Strategic questions to ask
- How much of the budget is required to fill each role?
- What are the most cost-effective recruitment strategies we can use without compromising top-talent hires?
- How can we maximize the return on investment for our recruitment efforts?
7. Implement an onboarding process
A robust onboarding process can help new hires feel welcome and productive from day one. Key components of an effective onboarding process include:
- Preboarding: Make a good impression by sending a welcome email and providing essential information about the company and the role.
- Orientation: Conduct a comprehensive orientation program to introduce new hires to the company culture, values, and policies.
- Role-specific training: Provide training on the specific skills and knowledge required for the job.
- Mentorship: Assign a mentor to guide new hires and answer their questions.
- Regular check-ins: Schedule regular check-ins with new hires to assess their progress and address any concerns.
HR’s role
- Create a structured onboarding plan that includes orientation, training, and mentorship.
- Assign experienced employees to mentor new hires and help them integrate into the company culture.
- Monitor new hires’ progress and provide ongoing support.
Strategic questions to ask
- How can we ensure a smooth and efficient onboarding process?
- What kind of training and development opportunities must we provide to new hires?
- Do we have mentors we can assign to new recruits?
- How can we measure the effectiveness of our onboarding program?
HR tip
Embrace inclusive hiring practices
To build a truly inclusive workplace, begin by reimagining your hiring process.
- Expand your talent pool: Partner with organizations supporting underrepresented groups, utilize diverse job boards and explore non-traditional recruitment channels.
- Enhance your interview process: Train your interviewers to ask unbiased questions, actively listen, create a welcoming environment, and implement structured interviews with standardized scoring to minimize bias.
- Assemble diverse interview panels: Consider factors like gender, race, ethnicity, age, ability, and sexual orientation when forming your panels. This helps to support varied perspectives, reduce bias, and signals your organization’s commitment to inclusion.
Aligning hiring plans with company growth goals
To stay competitive in the talent market, HR needs to align hiring plans with the company’s growth goals. Here’s how:
- Encourage innovation: Find candidates with unique skills and new ideas to support the company’s goals for diversification and innovation. This includes identifying trends, attending industry events, and partnering with educational institutions to attract top talent.
- Build talent pipelines: Develop strong talent pipelines. Keeping in touch with potential candidates and actively seeking talent helps fill roles quickly as the company expands, reducing hiring time and minimizing disruptions.
- Focus on key hires: Collaborate with leadership to identify crucial roles vital for the company’s success. Prioritizing these positions speeds up growth and helps achieve strategic objectives.
- Plan for different scenarios: Since the future is unpredictable, scenario planning is important. Consider different types of employment, like part-time workers, contractors, or freelancers, to adapt to changing needs such as high growth or downturns.
Hiring plan example: AccounTech
Now that we’re familiar with the steps and considerations required to build a recruitment plan, let’s examine an example of what your hiring plan may actually look like. In this example, AccountTech, an accounting software firm, needs to hire additional staff to develop, market, and sell an upgraded software application.
1: Organizational needs
- Workforce analysis: The software development team lacks the necessary headcount to build out new product features within the given timeframe. In addition, the current marketing and sales team lacks sufficient expertise to drive growth.
- Leadership consultation: Marketing and sales teams need additional staff to handle increased lead generation, customer acquisition, and account management. The software development team needs to fill additional seats.
- Growth projections: The company aims to expand into new markets and launch a new product line, requiring additional development resources to achieve its 20% growth target in the upcoming year.
2: HR roles and responsibilities
- HR Business Partner: Collaborates with department heads to understand their talent needs and provide strategic HR support.
- Recruitment Specialist: Focuses on sourcing and screening candidates for marketing, sales, and development roles.
- HR Generalist: Oversees recruitment, interview scheduling, onboarding, and general HR tasks.
3: Job descriptions
- Software developer: Designs, develops, and tests new accounting software features and applications.
- Marketing manager: Oversees marketing strategy, content creation, and digital marketing campaigns.
- Sales representative: Generates and qualifies new leads, closes deals, and manages customer relationships.
4: Recruitment strategies
- Job boards: Post on LinkedIn, Indeed, and specialized tech job boards.
- Social media: Leverage LinkedIn and X to target passive candidates.
- Recruitment agencies: Partner with agencies specializing in tech and sales recruitment.
- Employee referrals: Incentivise current employees to refer qualified candidates.
5: Hiring timeline
- Q1 2025: Hire three software developers to develop new product features.
- Q2 2025: Hire one marketing manager and two marketing specialists to work on the product relaunch.
- Q3 2025: Hire two additional sales representatives to sell the product.
6: Hiring budget
- Recruitment costs: Allocate budget for job postings, recruitment agency fees, background checks, and employee referral incentives.
- Onboarding costs: Budget for training materials, equipment, and onboarding programs.
7: Onboarding process
- Preboarding: Send welcome emails with essential information and paperwork.
- Orientation: Conduct a general company orientation and introduce new hires to the team.
- Role-specific training: Provide tailored training for development, marketing, sales, and roles.
- Mentorship: Assign experienced team members to mentor new hires.
- Regular check-ins: Schedule meetings at regular intervals to assess progress and address any concerns.
To sum up
Legendary business author Jim Collins’ adage, “Great vision without great people is irrelevant,” underscores the critical role of talent in achieving organizational goals and the immense importance of building strategic hiring plans.
Without a well-executed, aligned hiring plan, attracting the right talent to drive innovation and fuel long-term business growth is virtually impossible.
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Nicole Lombard is an award-winning business editor and publisher with over two decades of experience developing content for blue-chip companies, magazines and online platforms.