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Human Resources Planning Guide for Executives

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The Clerk of the Privy Council
has made planning one of the four
priorities of public service renewal:
"While we have clearly made
essential progress in improving
human resources planning, the
challenge now for every institution
is to deliver on those plans in ways
that make a demonstrable
improvement to the business of the
organization and the working lives
of employees". Sixteenth Annual
Report to the Prime Minister on
the Public Service of Canada: Part II,
What was Accomplished in 2008.

For Executives

Human resources planning is central to a healthy organization that attracts and retains competent, committed and engaged employees. A sound human resources plan can help you secure the right people, build a supportive work environment and develop the capacity to ensure your organization's success.

Good human resources planning includes succession planning and management, which is a systematic approach to identifying, developing and retaining talent for key positions and functions in line with current and projected business objectives.

This guide will help you develop a rigorous human resources plan that is aligned with your organization's business objectives.


Table of Contents



Image displays the five-step process to Human Resources Planning

The five-step process

This process guides you through five steps to develop a successful human resources plan that is aligned with your organization's business objectives.



STEP 1 — Review your business goals

To assess whether there is sufficient capacity, including skills, competencies and human resources, to achieve your business objectives, you need to have a clear understanding of where the organization is headed.

In this step, you should:

Questions to consider



STEP 2 — Scan the environment

An environmental scan is a process by which you systematically examine and interpret external and internal events, factors and conditions likely to have an impact on your organization. A good understanding of these elements will also help to clarify how the organization will evolve in the future.

This step will help you to:

Factors to consider

External scan

The external scan consists of identifying the most important factors external to the organization that could affect your organization, either negatively or positively.

Key factors to consider are demographics, the economy and labour market, relevant legislative requirements, scientific or technological changes, and societal, environmental and cultural values.

Internal scan

Knowing your organization is essential to the planning process. You need a thorough understanding of the internal environment in which your organization operates.

The internal scan looks at factors that may affect your organization's human resources capacity to achieve its business goals, such as:



STEP 3 — Identify the gaps

This step helps you use what you learned during steps 1 and 2 to identify any gaps between what exists and what is needed, now and potentially in the future, to meet the organization's business goals and face the challenges of today's labour market (i.e. competition for talent, aging workforce).

Analyzing the gaps will help you identify areas that need attention and assign the appropriate priority to strategies in the next step of the planning process.

Analyzing the gap involves:

Questions to consider



STEP 4 — Develop your plan

This step involves setting priorities for human resources to help achieve business goals and developing overall human resources management strategies to close the gaps identified in Step 3.

In this step, you will:

The human resources plan you develop must include strategies for the workplace (e.g. values and ethics; workplace well-being; diversity and employment equity; learning, training and development) and the workforce (e.g. succession planning and management, employee engagement, recruitment, retention).

Roles and responsibilities

Questions to consider



STEP 5 — Measure your progress

You should periodically review and update your human resources plan. Monitoring the results of human resources performance is an essential part of evaluating the progress achieved in priority areas as well as in allowing the organization to improve its overall performance.

Your assessment of the results of your planning can help you to:

Roles and responsibilities

Questions to consider



Five essential steps to human resources planning

Human resources planning is the process of identifying current and future human resources needs. It involves securing the right people, building a supportive work environment and developing the capacity to ensure the organization's success and a confident future for the Public Service.

STEP 1. Review Your Business Goals

First you need to have a clear understanding of where your organization is headed.

STEP 2. Review Your Business Goals

Identify the external and internal factors that could affect your organization's capacity to meet its objectives.

External factors

Internal factors

STEP 3. Identify the Gaps

Based on Step 1 and Step 2, determine your organization's current and future human resources needs.

STEP 4. Develop Your Plan

Based on steps 1 to 3, determine the major human resources priorities and the strategies you will use
to achieve the desired outcomes.

STEP 5. Measure Your Progress

The human resources plan is an evergreen document. Key to successful implementation is constantly measuring, monitoring and reporting on progress, and responding to changing circumstances.



1. What is human resources planning?

Human resources planning is the process of identifying current and future human resources needs. When we talk about human resources planning, we are talking about how an organization identifies and deploys its human resources to achieve its business objectives, its mandate and high-level government priorities.

Put simply, it involves securing the right people, building a supportive work environment and developing the capacity to ensure your organization's success and a confident future for the Public Service.

Human resources planning is an important building block in continuously improving and building your organization's capacity to deliver services to Canadians. It is an essential element of integrated planning, which also involves finance, information management and technology, procurement, accommodations, communications and other components.

Organizations have differing needs. Therefore, a one-size-fits-all approach to human resources planning is not appropriate. Organizations have to take into account their particular business and human resources realities to develop an appropriate plan.

To manage human resources strategically, start by integrating human resources with business planning. Several key principles can help you tap into the advantages of a rigorous human resources plan incorporated into your organization's business objectives.



2. Key principles

Planning takes place at all levels: For the best results, human resources planning is integrated into business planning at all levels of an organization.

Planning is information-driven: Decisions are based on factual and timely information about current and future needs (e.g. environmental scans, employee feedback).

Planning identifies risks and challenges: Challenges and key risks to delivering on priorities are identified, and options to mitigate critical issues are outlined.

Planning is well communicated: Both the process to develop the plan and the plan itself are shared with all employees and stakeholders to foster dialogue in a manner that is transparent, open and respectful of diverse values.

Regular reporting occurs: Planning efforts and results are reported annually.

Planning efforts are measured, monitored and evaluated: Processes are established to monitor performance and progress in achieving the objectives outlined in the plan.

Planning is for the long term: Good human resources planning includes succession planning and management, which is a systematic approach to identifying, developing and retaining talent for key positions and functions in line with current and projected business objectives.



3. Advantages

What's in it for you?

What's in it for the Public Service?



4. Legislative Base and Other Authorities of Human Resources Planning

The following chart illustrates the legislation and other authorities that underpin human resources planning in the Public Service.

Figure 2: The Legislative Base

Figure 2: Legislation and other authorities in human resources planning in the Public Service

Figure 2: The Legislative Base – Text version



5. Integrating human resources with business planning

Human resources planning is an essential element of an organization's overall planning. Decisions about people have to be combined with decisions about the results an organization is trying to obtain. Other elements of an integrated plan include finance, information management and technology, procurement, accommodations and communications.

Integration of human resources and business planning is achieved when:

Two tools are widely recognized within the Public Service as keys to successful integration: the planning cycle and the five-step process.

These tools reflect national and international research into the practices of leading public and private sector employers. They have been validated in the Public Service through extensive consultation with stakeholders.



6. Roles and responsibilities for human resources planning



7. Planning cycle

This approach guides you through the four phases of aligning your organization's human resources planning with its business objectives (see below) so that adequate resources, both human and financial, are available for program and service delivery. Timeframes are suggested for each of the four phases; they can be adapted to your organization's planning cycle.

The figure shown below illustrates how the four phases of the planning cycle relate to the five steps of the human resources planning process described in this guide.

Based on a three-year planning cycle, the phases described below would be completed in the first year. In the second year, the focus is on implementing and monitoring the human resources plan, and the third year involves activities such as reporting on the previous fiscal year, implementing the second-year plan and preparing to begin a new planning cycle.

Figure 3: Planning Cycle

Figure 3: Overview of human resources planning process and the planning cycle

Figure 3: Planning Cycle – Text version



Lexicon

Accountability

The obligation to demonstrate and take responsibility both for the means used and the results achieved in light of agreed expectations.

Source: Treasury Board of Canada Secretariat—Results-Based Management Lexicon

Activity

An activity is a short- or medium-term initiative (1 to 3 years) at the operational level that supports implementation of strategies aimed at achieving business objectives. Activities focus on the what, how, when and who.

See also: Strategies

References:
Manzini, A., Didley, J.D., Integrating Human Resources and Strategic Business Planning, Amacom: New York, 1986.

Treasury Board of Canada Secretariat—Results-Based Management

Canada School of Public Service — Human Resources Planning (P702) Course

An activity is an operation or work process internal to an organization, intended to produce specific outputs (e.g. products or services). Activities are the primary link in the chain through which outcomes are achieved.

Source: Treasury Board of Canada Secretariat — Evaluation Guidebook for Small Agencies

Business Planning / Business Plan

In the Government of Canada, the business plan is a concise statement of the strategy of a department or agency that focuses on how the organization will achieve its objectives within budget constraints. The strategy normally outlines commitments to perform major tasks and to achieve specified levels of service.

See also: Strategies

Source: Treasury Board of Canada Secretariat—A Review of Business Planning —Number 2

Commitment

A specific, simple and attainable statement, expressed in active language, of the results an executive commits to achieve, and whereby the executive declares individual accountability.

Source: Treasury Board of Canada Secretariat — Performance Management Program, Annex E: Glossary of terms

Competencies and competency profiles

Many organizations define a competency as any knowledge, skill, or ability, demonstrated through behaviour, that results in superior job performance. Some definitions include personal qualities, values, or traits as competencies. Examples of competencies include interpersonal effectiveness, teamwork, technical capability, and reliability.

A competency profile is a set of competencies typically applied to groups of positions such as occupational groups (e.g. executives) or that are function-specific (e.g. IT, finance). Some organizations also identify a set of core competencies that are aligned with their organizations mission and values and that apply to all employees in the organization. Competency profiles facilitate the integration of HR activities, such as succession planning aligned with recruitment, learning, performance evaluation, etc. through a common language and framework.

Source: Treasury Board of Canada Secretariat — Succession planning and management guide

Competencies

Competencies are also defined as the characteristics of an individual that underlie performance or behaviour at work.

Human resources management competencies include:
team building which includes mentoring, motivating staff, staff relations, selection, promotion and development of people, encouraging participation, developing talent, providing feedback on performance, valuing diversity.

Leadership competencies include:
positioning, organizational development, managing transitions, strategic orientation, developing a vision, planning the future, mastering change, promoting a healthy workplace.

Source: Public Service Commission of Canada — Competencies

Key leadership competencies include:

Source: Treasury Board of Canada Secretariat — Key Leadership Competencies

Departmental Staffing Accountability Report

A periodic report organizations provide to the Public Service Commission concerning the management and results of departmental/agency staffing. The departmental staffing accountability report (DSAR) is provided in response to questions from the Commission, which are based on the Staffing Management Accountability Framework and appointment values.

See also: Staffing Management Accountability Framework

Source: Public Service Commission of Canada — Glossary

Employee

Employee means a person employed in the Public Service of Canada, as defined in the Public Service Labour Relations Act.

For more information visit: Department of Justice Canada — Public Service Labour Relations Act

Source: Treasury Board of Canada Secretariat — Glossary of terms and definitions

Governance / Governance structure

The processes and structures through which decision-making authority is exercised; e.g. an effective governance structure ensures individuals or groups of individuals are responsible for setting policy directions and priorities, making investment decisions, re-allocating resources and designing programs.

Source: Treasury Board of Canada Secretariat — Management, Resources, and Results Structure Policy

Impact

Impact is a synonym for outcome, and is somewhat more direct than an effect. All terms are commonly used, but neither is a technical term. The Treasury Board of Canada Secretariat recommends that result be used instead of impact.

Source: Treasury Board of Canada Secretariat — Evaluation Guidebook for Small Agencies

Labour market

The market that determines wages and the number of jobs based on the supply of and demand for workers.

Source: Department of Finance Canada — Glossary

The labour market is the forum where buyers of labour (i.e. employers) and sellers of labour (i.e. employees) meet to satisfy job requirements within the Canadian economy or marketplace.

Source: Working in Canada — Glossary

Management Accountability Framework

A set of ten statements summarizing the Treasury Board of Canada Secretariat's and the Canada Public Service Agency's expectations for modern public service management. It was developed to provide Public Service managers, especially deputy heads, with a clear list of management expectations within an overall framework for high organizational performance.

Source: Treasury Board of Canada Secretariat — Performance Reporting: Good Practices Handbook

The Management Accountability Framework (MAF) defines and clarifies expectations for modern Public Service management.

The MAF aims to:

The MAF will be used in the following ways:

For more information visit: Treasury Board of Canada Secretariat – TB Management Accountability Framework

Source: Treasury Board of Canada Secretariat — Evaluation Guidebook for Small Agencies

Management Resources and Results Structure

The Management Resources and Results Structure (MRRS) replaces the Planning, Reporting and Accountability Structure. In accordance with the Management Accountability Framework, the MRRS supports governance and strategic direction, accountabilities, results and performance. The MRRS is directed to the organizational level and encourages the alignment of programs, resources and management practices with expected results.

It includes the Program Activity Architecture (PAA), which comprises

  • clearly defined and appropriate strategic outcomes; and
  • a complete program inventory that links all department/agency programs and program activities so that they lead up to achievement of strategic outcomes.

Over time, an integrated MRRS should also include:

  • performance measures for each level of the organization's PAA; and
  • a governance structure that defines decision making and accountability bystrategic outcome and by program.

In addition, the Expenditure Management Information System will provide a common framework that aligns information on plans, priorities, actual expenditures and results.

See also: Expected results, Program Activity Architecture and Strategic outcome

Source: Treasury Board of Canada Secretariat — Evaluation Guidebook for Small Agencies

Objective

A specification of what is to be accomplished, the timeframe in which it is to be accomplished and by whom.

Source: Society for Human Resource Management — Glossary of Human Resources Terms (English only)

People Component of the Management Accountability Framework

The People Component of the Management Accountability Framework (PCMAF) is a general statement of expectations for good human resources management. The PCMAF is a useful resource to consult when writing ongoing commitments related to human resources. It is a component of the broader Management Accountability Framework.

For more information visit: Treasury Board of Canada Secretariat - The People Component of the Management Accountability Framework

Source: Treasury Board of Canada Secretariat — Performance Management Program — Annex E: Glossary of terms

Performance

How well an organization, policy, program or initiative is achieving its planned results, measured against targets, standards or criteria. In results-based management, performance is measured and assessed, reported on and used as a basis for decision making by executives and managers.

Source: Treasury Board of Canada Secretariat — Guide for the Development of Results-based Management and Accountability Frameworks

Performance agreement

The performance agreement is essentially a contract between an executive and his or her superior and is the documentary foundation of the Performance Management. A performance agreement contains the following basic parts:

Source: Treasury Board of Canada Secretariat — Performance Management Program — Annex E: Glossary of terms

Performance indicator

Performance indicators are a direct or indirect measure of an event or condition showing change over time. Indicators are often quantitative (i.e., based on numbers or objective information) but can also be qualitative (i.e., narrative or subjective information). The performance indicator is a means to compare planned results with actual results. There are many ways to think about performance indicators:

The criteria for selecting performance indicators are as follows:

Source: Treasury Board of Canada Secretariat — Evaluation Guidebook for Small Agencies

Priorities

Specific areas that an organization has chosen to focus on and report on during the planning period. Priorities are the most important activitiesthat must be done to support achievement of strategic outcome(s).

Source: Treasury Board of Canada Secretariat — Results-Based Management Lexicon

Program

A group of related activities designed and managed to meet a specific public need and often treated as a budgetary unit.

Source: Treasury Board of Canada Secretariat — Results-Based Management Lexicon

Results for Canadians

Results for Canadians: A Management Framework for the Government of Canada, published in 2000, introduced the concept of modernizing government management to respond to Canadians' changing expectations and priorities.

Source: Treasury Board of Canada Secretariat — Results for Canadians: A Management Framework for the Government of Canada

Risk

Risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives. Risk in this sense is the probability that a future event either good or bad will occur.

At a minimum, some form of quantitative or qualitative analysis is required for making decisions concerning major risks or threats to the achievement of an organization's objectives. For each risk, two calculations are required: its likelihood or probability of occurring, and the extent of the impact or consequences if it does occur.

The Privy Council Office refers to risk as "a function of the probability (chance, likelihood) of an adverse or unwanted event, and the severity or magnitude of the consequences of that event." Although this definition refers to the negative aspect of risk, the Privy Council Office acknowledges that positive opportunities can also arise from responsible risk-taking, and that innovation and risk frequently co-exist.

Source: Treasury Board of Canada Secretariat — Integrated Risk Management Framework

Staffing Management Accountability Framework

A mechanism to support deputy heads' accountability for the way they exercise their delegated staffing authorities. The Staffing Management Accountability Framework sets out indicators that specify the Public Service Commission's expectations for a well-managed appointment system.

For more information visit: Public Service Commission of Canada — Staffing Management Accountability Framework

See also: Departmental Staffing Accountability Reports

Source: Public Service Commission of Canada — Glossary

Stakeholders

Stakeholders are individuals, groups or organizations that have an interest or share in an undertaking or relationship and its outcome — they may be affected by it, or may in turn affect or influence it, or in some way be accountable for it.

See also: Outcome/Result

Source: Treasury Board of Canada Secretariat — Glossary

Strategies

The means through which a vision/mission is translated into practice. They typically provide information on the mid to long-term priorities (typically 3 to 5 years) and associated results, including high-level decisions on allocating the necessary inputs. Strategies usually comprise several activities and outputs.

See also: Activities

References:
Manzini, A., Didley, J.D., Integrating Human Resources and Strategic Business Planning, Amacom: New York, 1986.

Treasury Board of Canada Secretariat — Results-Based Management

Canada School of Public Service — Human Resources Planning (P702) Course

Succession planning and management

Succession planning and management involves an integrated, systematic approach to identify, develop, and retain talent for key positions and areas in line with current and projected business objectives.

For more information visit: Treasury Board of Canada Secretariat — Succession planning and management guide

Source: Treasury Board of Canada Secretariat — Succession planning and management guide

Technological change

Technical progress in industrial methods; for example, the introduction of labour-saving machinery, hardware or software, or new production techniques. Such change can result in reductions or increase in workforce.

Source: Treasury Board of Canada Secretariat — Demographic Analysis of the Federal Public Service Workforce — HR Concepts and Definitions

Trend

A general tendency or pattern.

Source: Statistics Canada — Glossary for lesson plans

Workforce

Workforce analysis

Workforce analysis compares two sets of data:

  • the internal representation of designated groups in each occupational category, occupational group and geographic location within a department or agency; and.
  • the workforce availability of members of each designated group in the Canadian workforce or those segments of the Canadian workforce from which the employer may reasonably be expected to draw employees.
Every department or agency subject to the Employment Equity Act must conduct a workforce analysis to determine representativeness for each of the four groups designated by the Act (i.e. women, Aboriginal peoples, persons with disabilities and visible minorities).

Shortfalls detected through this comparison triggers the requirement that employers review their employment systems, policies and practices as part of an Employment systems review to determine possible causes of the under-representation.

See also: Representation data

Source: Workforce Analysis: A Guide and Workbook for the Federal Public Service, Ottawa: Treasury Board of Canada Secretariat, 2002

Representation data

The Employment Equity Act requires that employers departments and agencies covered by the Act conduct a workforce survey to determine internal representation of designated groups. The Act recognizes four designated groups for employment equity purposes: Women, Aboriginal Peoples, Persons with Disabilities and members of Visible Minorities. Information on gender is collected as part of the pay-and-benefits documentation process and thus the data on women are more reliable than data for the other three groups, which are dependent on self-identification.

Self-identification is voluntary: “Only those employees who identify themselves to an employer, or agree to be identified . . . are to be counted as members of those designated groups for employment equity purposes” (section 9). It is also confidential information. In the federal public service, self-identification is ongoing; that is, at any time in their career, employees may identify themselves as a member of a designated group. In addition, departments offer newly appointed employees an opportunity to self-identify as part of the orientation process.

Internal representation data are compiled by occupational category, occupational group and region. The results are then compared with external data on workforce availability to conduct the workforce analysis. An exception is the Executive group, which is compared to availability in the executive feeder groups

See also: Workfoce analysis

Source: Treasury Board of Canada Secretariat - Workforce Analysis: A Guide and Workbook for the Federal Public Service, Ottawa: Treasury Board of Canada Secretariat, 2002

Workplace flexibility

Workplace flexibility provides employees with options regarding when and where they work (through annualized hours, a compressed work week, flextime and telework), as well as providing the ability to address unanticipated family and personal needs as they arise.

Source: Society for Human Resource Management — Glossary of Human Resources Terms (English only)

Human Resources and Social Development Canada — Workplace Flexibility


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