WHAT IS A PERSONNEL PLAN?
A personnel management plan is a portion of a business plan that details how a new
business intends to hire, compensate, and utilize its potential employees. There are
several different types of information found in this plan, including the number of
employees that a company will need, the role of each employee, and
the organizational structure of the business.
A personnel management plan also includes information regarding how much each
position will pay and the type of benefits that will be provided or made available to
the employees by the company.
Oftentimes, this type of plan will also lay out ideas or policies as to how a company
plans to recruit the employees needed for operation, and how those employees will be
managed.
Things included in a personnel plan:
Description of the team. You should describe your team in your personnel plan. In
this section of your business plan, you will typically include an overview of the key
positions in your company and the background of the people who will be in those
critical roles. Usually, you’ll highlight each of the management positions in your
company and then speak more generally about other departments and teams.
You don’t need to include full resumes for each team member—a quick summary of
why each person is qualified to do the job is enough. Describe each person’s skills
and experience and what they will be doing for the company.
Emphasize your team’s strengths. How do they make your team stronger? What
specific expertise and experience do they have in your (or a related) industry?
Assuming your market research identified a great opportunity, why are you the right
team to capitalize on it?
For potential investors, this section helps qualify why each team member is necessary
for the success of the business. It acts as a justification for their salary and equity
share if they are part owners of the company.
The organizational structure. The organizational structure of your company is
frequently represented as a chart that shows who reports to whom and who is
responsible for what. Though description through text is also enough.
Is authority adequately distributed among the team? Do you have the resources to get
everything done that you need to grow your company?
You’ll also want to mention the various teams your company is going to have in the
future. These might include sales, customer service, product development, marketing,
manufacturing, and so on.
Organizational structures are important because they help businesses implement
efficient decision-making processes. By assigning specialized roles to employees,
businesses can make better decisions faster.
Recruitment Plan. This part should identify type of employees do you have and how
many you will need in the foreseeable future. What are the jobs and skills you require
for each type of employee should also be clear.
You should also identify how you will recruit to get employees for your company.
You could utilize employment agencies, associations or the internet .
When assessing a potential employee, you can also implement methods to see
whether they are qualified or not by requiring portfolios or skill tests through
questionnaires.
Salary Amount. The salaries of each employee can be made clear through a
compensation plan. A compensation plan includes all the components of your
employee compensation packages. This includes a direct form of compensation such
as hourly wages, salaries, commissions, and bonuses, as well as employee benefits,
and other types of incentives.
In accordance with the personnel plan,
A fair compensation plan is based on job descriptions, job analysis, and job
evaluation. It provides both internal and external equity:
Internal equity — the employee’s perception of how their pay stacks up when
compared to the pay their colleagues receive.
External equity — the employee’s perception of how the pay in your company stacks
up when compared to the pay other companies offer for the same or similar positions.