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