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HR Glossary

HR terms frequently used by HR professionals.

HC planning (Headcount planning)

What is HC planning (Headcount planning)?

HC planning or headcount planning is the strategic process of hiring employees to meet the organization’s short- and long-term goals.

Why is HC planning (Headcount planning) important?

HC planning (Headcount planning) helps management understand the incurred labor costs or employee salaries necessary to ensure the organization’s stability in the future. Additionally, headcount planning offers a better understanding of productivity, labor costs, organizational structure, and human resources management if the organization plans on raising funds in the future.

What is the difference between HC planning (Headcount planning) and workforce planning?

HC planning (Headcount planning) focuses only on ensuring that the organization has the right employees with the right skills and positions in respective departments. On the other hand, workforce planning includes planning for new hires beforehand, forecasting changes in the workforce, helping employees with skill development, and sustaining existing employees to stay competitive.

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