Is there any formula for the calculation of manpower planning?

Hi, Is there any formula for the calculation of manpower planning? For example, if operational people require 20 employees present in a store each day, how do we plan for days off, leaves, etc., to ensure the required manpower without any wastage or scarcity?

Dear all/seniors, please share any knowledge you may have.

Regards, Rajendra Prasad

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 the roll (for leave and weekly off). If your absenteeism is high, let's say 10%, then 11 personnel are required for smooth functioning.

Seniors, please correct me if I am wrong.

Best Regards,
Vishal

Dear Rajendra,

Manpower planning is a lengthy process to determine the number of requirements each year. It can either be a part of Long Range Planning (LRP) or an immediate requirement based on the short-term goals of a company. There is no fixed formula for accurately determining the correct number of employees needed each year, but it can be predicted.

The objective of manpower planning is to identify the positions that need to be filled and the costs involved in such activities for a financial year or the long term. Additionally, it aims to identify the required recruitment resources, operational panel members for interviews, locations, the relevant person for each position, job descriptions for positions, and compliance for the recruitment process.

Method of Evaluation –

Manpower required for any financial year = last year's carried forward positions + predicted attrition from last year + new positions based on the business plan for the current year through consultation with line managers and operation managers. Budgeting can be done in various ways, depending on the company's requirements (types and nature of requirements).

One way to approach this is as follows: Let's assume we need to budget for a 100 Crore company with 200 employees. Last year's carried forward positions were 20, and the attrition rate was 10%, meaning 25 employees may leave the company. This year's growth plan is 20%, assuming the same current productivity of 50 lakhs per employee.

Therefore, we require 200/100 * 20 = 40 new positions. The total requirement for this year would be 20 + 25 + 40 = 85 positions. Assuming that 45 positions can be sourced from walk-ins (without paper ads incurring external costs), 25 from campus recruitment (last year's cost was 5000 rs./student), and 15 from lateral hiring (last year's cost was 100000), the total recruitment cost would be 0 + 75000 + 1500000 = 1575000.

This cost includes stationery, operational manager's time, recruiters' costs, costs associated with bad recruitment, and other resources like communication, travel, and accommodation expenses. The necessary data should be available with the accounts department and should be calculated on a monthly, quarterly, half-yearly, or yearly basis. There are other methods to perform this analysis.

Regards,

Sourabh Tiwari

Dear Mr. Vishal,

But I want the formula, as you said, which will depend on weekly offs, leaves, holidays, etc.

Dear Seniors, expecting answers from you please help me out.

Regards,
Rajendra

Second question requires data from your side as the total number of employees in your store, your company policy in terms of leave and w-off. I would suggest you talk to your store manager and fix it as line managers are the best to tell you about it and come to a logical conclusion.

It is quite a critical issue as you may not reduce or increase w-offs and leaves without prior consent from the store manager. You should remember that it should not affect employees' productivity and harmony in relationships.

You may also suggest to your store manager a time motion study to determine the 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 a few things from you. What is the way of working - is it 24/7 or a normal 9-hour shift for 6 days a week? According to your requirement, 20 people should be present each day. If the shift is only 9 hours (day shift), the formula would be as mentioned below:

20 * (6/7) = 17.14 (Employees required in a 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 a total of 25 to 26 people.

For example:
1) 5% to 10% for shrinkage during the day or any leave.
2) 6/7 means how many days of work are required. If it is 5 days, then 5/7.

For any clarification, please feel free to revert to [Login to view].

Thanks!
Rahul

Hi Rajender,

As per your trail conversation, I just want to ask a few things from you. What is the way of working: is it 24/7 or a normal 9-hour shift for 6 days a week? According to your requirement, 20 people should be present each day. If the timings are only a 9-hour shift (day shift), the formula would be as follows:
20 * (6/7) = 17.14 (Employees required in a 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 a total of 25 to 26 people. For example:
1) 5% to 10% for Shrinkage in a day or any leave
2) 6/7 means how many days of work are required. If it is 5 days, then it would be 5/7.

For any clarification, please feel free to revert.

Thanks!