Manpower Planning Formula? - CiteHR
Prasad_raj325
Manager - Hr (generalist)
Gvishal
Hr & Admin
+3 Others

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Hi,
Is there any formula for calculation of manpower planning? for example if operation people requires 20 employees presence a day in a store how do we plan for week offs, leaves etc. and required manpower without any wastage/scarcity?
Dear all/seniors Pls. share the knowledge if any.
Regards,
Rajendra Prasad
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The primary function of Manpower planning is to analyze and evaluate the human resources available in the organization, and to determine how to obtain the kinds of personnel needed to staff positions ranging from assembly line workers to chief executives.
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Hi Rajendra,
For example 3 personnel are required in each shift, for three shifts i.e. A, B, C. you should have 10 personnel on roll (for leave and weekly off), if your absentism is high say 10% the 11 personnel are required for smooth functioning.
Senoirs please correct me if I am wrong.
Best Regards
Vishal
Dear Rajendra

Well...... , Manpower planning is long process to get number of requirements each year. It can be one of LRP or immediate requirement as per short-term goal of a company. There is no fix formula for finding out correct number of employees required each year but it can be predicted.

The objective of manpower planning is to find out positions to be filled & cost involved in such activity, for any financial year or for long term. Plus to find out required recruitment resources, Operation panel members for interviews, locations, concerned person for each position, JD for positions, compliance for recruitment process.

Method of Evaluation –

Manpower required for any financial year = last year carried forward positions + predicted attrition for last year + new positions wrt business plan for current year consultation with line managers & operation mgrs. Budgeting - It can be done in many ways, it depends upon company requirement(types & nature of requirements).



One way of doing it is - Lets assume that we have to do budgeting for a 100 Crore company with 200 employees, last year carry forward positions are 20. last year attirtion is 10 % means 25 emp may leave the company & we have plan for this year to grow by 20 %. Assuming same current productivity which is 50 lakhs/ emp.

We require = 200/100 * 20 = 40 new positions. So total requirement for this year is = 20 + 25 +40 = 85.

Lets assume 45 can be sourced from walkins( no paper ad) no external cost, 25 can be sourced from campus last year per campus recruitment cost was 5000 rs./student + 15 from lateral hiring last year lateral hiring cost was 100000 = 1500000. Total recruitment cost is 0 + 75000 + 1500000 = 1575000.

It will also include stationery cost, Ops mgr time cost, recruiters cost, bad recruitment cost & other resources like communication cost, travelling cost, staying cost etc. Required data would be available with accounts. It should be calculated monthly, quarterly, half yearly or yearly basis. There are other ways of doing this.



Regards

Sourabh Tiwari
Thanks Mr. Vishal, But I want formula, as you said which will depend on weekly offs, leaves, holidays etc. Dear Seniors Expecting answers from you pls. help me out. Regards, Rajendra
Second question requires data from your side as total number of employee in your store, your company policy in terms of leave & w-off.
I would suggest you to talk to your store manager & fix it as Line managers are best to tell you about it and come to a logical conclusion.
It is quite critical issue as you may not reduce or increase w-offs & leaves without prior consent with store manager. You should remember that it should not affect employees productivity plus harmony in relationship.
You may also suggest your store manager for time motion study to get productive time for each process and conclude it.
Regards
Sourabh.
Thank you Mr. Sourab Tiwari for sharing your valuable information actually ours is a retail outlet business so I want to know the formula to avoid shortage of manpower and to find right sized manpower. I got to know about the formula in my early days of joining in HR but I forgot, requesting the same from cite HR it may be useful for all of us.
Malik sir, where r u, Pls. reply.
With thanks & regards,
rajendra Prasad

Hi Rajender
As per your trail conversation, I just want to ask few things from you, what is the way of working is it 24*7 or normal day 9hrs shift of 6 days working in a week.
And as per your requirement 20 people should be present in a day and if the timing are only 9 hrs shift (day shift) than formula would be below mention.
20*(6/7)= 17.14 (Employee required in day)*(6/7)
20-17.14= 2.86
20+2.86 = 22.86 (After 1 week off)
22.86*10%= 2.29 (10% for shrinkage)
22.86+2.29= 25.14 ( After including 10% shrinkage)
You need total 25 to 26 peoples
e.g: 1) 5% to 10% for Shrinkage in day or any leave
2) 6/7 means how many days working required. If it is 5 days than 5/7
For any clarification please feel free to revert on
Thanks!
Rahul
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