Human Resource Planning (HRP) is the process of
forecasting and systematically managing an organization’s
future human resource needs to ensure that the right
number of people, with the right skills, are available at the
right time.
It involves:
Analyzing current workforce – checking existing
employees’ skills, performance, and positions.
Forecasting future needs – predicting how many
employees and what kinds of skills will be needed based
on business goals.
Identifying gaps – comparing current workforce with
future needs to see shortages or surpluses.
Developing strategies – planning recruitment, training,
promotion, retention, or downsizing to address gaps.
Scenario:
Samsung Electronics realized that their
production line employees struggled with new
robotics-based assembly. Instead of firing
them, the company created a continuous
learning system where employees rotated
between jobs, received hands-on robotics
training, and attended workshops on
troubleshooting.
Tactic:
Job rotation and continuous training kept
employees adaptable and increased productivity.
Scenario:
Meralco prepared for massive retirements of
experienced electricians in the next five years. To
prevent skill gaps, they launched a succession
planning program—pairing senior electricians with
young apprentices. This way, knowledge and skills were
passed on before senior staff retired.
Tactic:
Succession planning and apprenticeship
ensured that critical technical skills were
retained in the organization.
Scenario:
Toyota Motors noticed a shortage of skilled
automotive technicians when demand for hybrid
cars increased. Instead of waiting to lose
customers, the company partnered with technical
schools and set up a Toyota Technical Education
Program (T-TEP). Students were trained in hybrid
technology and later absorbed into the company
after graduation.
Tactic:
Industry–academe partnership and training programs
ensured a steady pipeline of skilled workers.
Scenario:
An engineering consultancy in Makati faced
delays because new hires lacked advanced CAD
skills. To address this, they introduced a
mentorship program where senior drafters
trained juniors in real projects. They also paid for
certification courses in AutoCAD and Revit.
Tactic:
Upskilling through certifications and mentorship
guaranteed high-quality outputs and reduced project
errors.
Retrench means reducing the workforce of an
organization due to business reasons such as cost-
cutting, restructuring, downsizing, automation, or decline
in demand.
It is not caused by employee fault or misconduct, but by
management’s decision to lessen manpower to align with
the company’s financial or operational needs.
Example: A manufacturing company facing reduced
product demand may retrench some workers to cut costs
and sustain operations.
Outplacement is a service provided by an organization to
support employees who are leaving the company, usually
due to retrenchment, downsizing, or redundancy.
It helps affected employees transition smoothly to new
jobs or careers by offering services such as:
• Career counseling
• Resume writing and interview coaching
• Job search assistance
• Networking opportunities and skills training
Example: A bank that automates its processes and
reduces staff may provide outplacement services to help
displaced employees find new work in other companies or
industries.
Layoff is the temporary or permanent separation of
an employee from the company due to business-
related reasons—not because of the worker’s fault.
A layoff can be temporary (employees may be
recalled when business improves) or permanent
(similar to retrenchment if there’s no chance of
rehire).
Example: A construction firm may lay off workers
during the rainy season when projects are paused,
but rehire them when work resumes.
Loaning is a method of dealing with surplus
manpower by temporarily assigning employees to
another organization, department, or project where
their skills are needed.
Instead of retrenching or laying off, the company
“loans” workers so they remain employed, continue
to earn, and gain additional experience.
Example: A manufacturing firm with excess machine
operators may loan some of them to a partner
company during peak production season.
Attrition is a natural method of reducing surplus
manpower by not replacing employees who leave the
organization through resignation, retirement, or
death.
Unlike retrenchment or layoff, attrition is a passive
approach—the workforce gradually decreases
without forcing employees out. Natural and gradual
reduction of staff. No new hiring for vacated positions
Less disruptive and avoids legal/employee-relations
issues.
Example: If a bank has 10 tellers and 2 resign, the
management may decide not to hire replacements,
thereby reducing manpower through attrition.
