Human Resource Planning 10step Process: Delphi

Technique for annual budgeting(Cost per headcount)

A: Forecasting for the next business year(FTEs)
1. Number of Skills/workers required as per the KPI =
2. Seasonal Requirement during the year(temporary)=
3. Total requirement during the year=1+2
------------------------------------------------------------------------
B: Actual Inventory (Rt.sized)
4. No. permanent/confirmed employees available during
the last year financial Year=
5. Additions during the year= Temporary/permanent
{Staff-Promotions, Transfers-in, Deputations, Replacements, Laterals}

6. Deletions during the year {Natural reasons,

Terminations, Retirements, Consider av. Rate of
absenteeism} =
7a. Total headcount budget needed for the next
year=4+5+6
7b.Total headcount available at the end of the year:(4-6)+5
8. Deficit/Surplus=3-7b
9. Current losses/attrition =
 10. Total requirement if deficit=8+9
Explanation of step no.4 & 7
The above Headcount is needed for the following reasons:
1. Skill forecasting.
2. Headcount and Skill Inventory balance.
3. Budgeting for the Manpower Deficit of the last Financial Year.
4. Investment Budgeting for the next Financial Year.

Step 4: Step 4 figure (eg.100) represents actual confirmed

employees, who are right-sized in the ratio 0f 1:2:5.
-That is the base figure (100) needed for the Organisation as
per the requirement of headcount for the Job Requirements.
This figure is a constant.
-Irrespective of Attrition or Turnover the vacancies (20) need
to be imperatively filled up internally/ externally, and the
Jobs need to be completed (100=80+20).
-So we assume the base figure as it is and do not subtract the
deletions, because this right-sized figure needs to be the base
for the next year Manpower requirement. However
-Thedeletions are actual vacancies (20) of the past financial year.
Essentially these vacancies are to replaced, which need to be
budgeted for. So in step no.4, the base figure is inclusive of actual
employees present plus the no. of separated employees, which are
actual vacancies.-Breakup, can be shown.
-The Step no.6 constitutes deletions/vacancies which also
reflect the past attrition/absenteeism rate and (future)
predictive attrition/absenteeism rate (PAR).So the deletions
are added.
-This PAR will help us to budget the vacancies for the next
year.
-So deletions included in the base figure constitutes actual
vacancies -1,ie 20 which would be filled immediately, while
the deletions added constitute PAR which are vacancies-2,ie
20 which may arise due to Separations in the next Financial
Year. Both need to be budgeted. So total vacancies are
budgeted for.
-Remember using the Delphi Technique, the Senior
Management allots sanctions and disburses the Budget,
based on the attrition and need basis. Generally budgets
increase by 15% every year*subject to many factors.
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STRATEGIES TO HANDLE DEFICIT

Internal Recruitment (IJPs)
Laterals Verticals
 Transfers Promotions
 Relocation Deputation
 Deputation Expatriates
 Re-skilling-re-deployment Career-plang.
Multi-skilling-deployment
 Training-Behavioral &Tech.
 Job designing
 Job enlargement
 Job Simplication
 Job rotation
 Job enrichment